far from here is cautious optimism coming into 2025, across companies, across industries and resilient consumer. we're going to have interviews tomorrow with planet fitness ceo, so more insights on this show tomorrow, yon. >> yeah. a lot depending on as 2025 goes. well, that's going to do it for "overtime." "fast money" starts now. live from the nasdaq marketsite in the heart of new york city's times square, this is "fast money." pause or pullback? some of last year's hottest trades dropping sharply from recent records. is this the rally taking a breather? and the obesity drug space front and center at this year's jpmorgan health care conference. the latest about what we might be hearing about potential deal making. >> kb on solid ground, and why the hedge fund is looking to take over howard hughes.

>> we're live from studio b. on the desk tonight, key seymour, and guy adami. we start off with major moves in the most popular names. apple spending most of the day in correction territory, ending down a percent, and now more than $25 off its post-christmas high. nvidia, bitcoin and tesla down double percentages as the treasury yield hits a 14-month high after last week's blowout jobs report. as chances of a rate cut lessen, the dollar index on the move. and don't look now, but a huge slate of earnings is upon us. jpmorgan, goldman sachs, wells fargo and citi kicks things off on wednesday. followed by reports from taiwan semi, united health and many more. is this just a temporary pause on the road higher for stocks, or are we nearing a major inflection point for this market? >> that's an interesting setup. here you go, i'll give you my sort of two cents. an optimist will say great

reversal off the lows, that was impressive. the vix backed off, we're going higher from here. pessimists will say that's a feeble bounce. >> is that you? >> you know where i stand. i'm not trying to bury anything here. off what was a miserable day on friday. i'll say this, i think right now as we're sitting here, yields are firmly above 480, that's the story. so the market in this environment, our economy and our stock market is not set up to have yields trade higher in the manner they have over the last couple of months. >> which camp are you in, karen? >> i'm not a pessimist. i'm always long, so you have to be optimistic. i am concerned about the rate thing. we're off a good at least 5% since the december peak, whenever that was. so, you know, we'll see -- i like to know what earnings are and understand what are the fundamentals. so i would like to hear from banks, because not only do we

get their fundamentals, but they have such a good look on the economy at large. and i think we're going to see good earnings. so i am long, staying long. >> interday, at one point the s&p was below the 50-day moving average and it hadn't been there since august 4th or 5th when we had a growth scare. we have the opposite, a bit of a rate scare. the question, is this move orderly? and i think 120 basis points in the ten-year from almost the moment the fed started hiking rates is reasonably orderly. what's happening in japan doesn't feel orderly, and i think if you look around the world, there's places where those bond markets aren't acting orderly at all. and i think there's an glut that's coming and i think we're seeing it in other parts of the world. and in terms of the administration coming in, we know there's a growth first, debt second kind of approach. back to equities, it's an interesting day because that reversal is very important. it's not just the s&p, but semiconductors, if you look at the smh, clinging to 200, bouncing along there.

finished positively. but getting back to the leadership of whether you do have the mag seven and the outperformance of a couple to each other is very interesting. meta up almost 11% to apple year-to-date. but i think equities came into this year with uber complacency, cash levels uber low, no expectation that the job market was going to be quite this strong, and i think it's a reaction. i think that's something, volatility will come with that, but my glass is half full. >> i'm neutral and i'm in karen's camp. i want to wait for q4 earnings and q1 guidance, if there's anything we can glean into the year. expectations per earnings growth are still 12%, 13% or so, and i don't know how you get there for large multinationals who are dealing with a dollar trading at multi-year highs. you have yields trading near multi-year highs. i'm looking at crude oil. today you saw the airlines were down four something percent. the headlines, we saw some earnings last week.

it was crude oil trading at 79 bucks is what i suspect here. so when i think about this, it's got to come from the leadership, that fateful eight. if you look at the names we saw today, you're talking about a big reversal in tesla. apple did stay down on the day. it had a fundamental reason to stay down. when i think about what happened, there was a lot of pull forward over the last month and a half or so, so now we have to wait for earnings, we have to wait for this inauguration. one thing that's important, some of these big moves we saw after november 6th, you have these kind of run-away trades, they've given a lot back. as expectations of maybe a different regulatory environment, now we get to the confirmation phase of all these folks that are going to be -- you know, that were nominated for these roles. this is the back and forth you get on policy and this might shift sectors. we've had a really nice run. some have given a lot back. i think earnings and the confirmation period is going to be important for regulation. >> that brings into light the

faithful eight being the biggest stocks. just in case people haven't really grasped the term yet. >> the acronym. >> clarify, karen. >> i was going to say. >> but that sort of underscores just how this market is built and the market is built on the market cap of these socks. you mentioned apple being down. nvidia is down for another fundamental reason, the fear of further export control. there are certain things that some of the biggest stocks are grappling with, and it's not just positioning here. it's actual fundamental issues which might affect their business. >> each have their own, without question. and i think we're at a point where ten stocks, so 2% of the s&p 500 are 40% of the weighting of the s&p 500, which is remarkable. i've got to believe that's some sort of record. but it speaks to the top heaviness of the record and maybe it's not as broad-based as

we thought. each of these names have their own issues. the one i think is interesting, the move in apple seemingly came out of nowhere. there have been some negative headlines along the way but we've seen that before and the stock didn't seem to care. i encourage you to go back and look at where we topped out in july, through the summer, it was $232 or so. that was a prior all-time high, and that's where we seemingly are stopping on the downside. >> it seems like it's become en vogue to criticize apple and there's no reason to upgrade, people don't want a future-proof their purchase of thn iphone, buying an advanced version in anticipation of those ai sort of features, because apple hasn't shown any proof of those ai features. at some point this becomes consensus. >> that's fine, it's not in the stock. the stock, now that it's given back some of this move, the stock is effectively up 10% in two and a half years in one of

the greatest bull markets of all time. this is one of the best on the market in terms of giving back cash and the services business isn't 30% plus, but solidly 20s and has a margin that allows it to trade at a higher number. should it trade at 33 times forward? probably not. but i just go back to apple and say this is a company i feel comfortable owning in this environment relative to some of its peers. fateful eight. >> i think you've got a dynamic where it really is -- i would take all that negativity and say that's right and it's in the price. >> i would say if you're looking for fateful eight that are really, i think, value, to me, meta and alphabet are far more compelling and multiple is much closer to a market multiple than 32 odd whatever it is. >> was that a movie with denzel? >> was that a remake? >> it was the hateful eight. >> a play on words.

>> is it denzel? >> the fact that we have to explain this and spend that much time -- >> he's watching right now. >> we're not spending a lot of time talking about amazon, which i think is interesting because there's a lot of leverage. we think about some of the stuff, we saw lulu guide up, saying some pretty decent things about holiday sales. we know obviously that's not a huge margin contribution. but some of the stuff out of aws the last year and a half or so, coming off of a bottom, that's one to keep an eye on. i agree with karen on the alphabet. this has been fairly underappreciated. i think the underappreciation as it relates to microsoft has more to do with the early leap they had as far as their relationship with openai, but also when you think about this company, they're not getting a lot of uptake with the copilots, which is what this openai technology was powering. >> evercore bracing for further market weakness. the firm's senior managing director joins us on set.

julian, great to see you. how much more weakness are you thinking of? >> probably not a lot more. so, we came in -- essentially december the 18th, the fmoc changed the outlook on how to think about volatility. and we finally get this idea where, yes, there's damage being done by virtue of higher yields, and, yes, what was then 25 times trailing earnings, markets are going to be vulnerable to less than perfect news. and we've had a lot of less than perfect news over the last several weeks. when we think of the manic swings in sentiment we've seen in just, frankly, since the beginning of the year, and you superimpose that on the fact that earnings season is starting wednesday, you're going to get a cpi report on wednesday, and you're going to get a new president inaugurated on monday, even if some of the information there is less than perfect for markets, you're going to have

resolution of uncertainty to a certain degree. to us, we think you possibly test 5700 on the downside. if things get incrementally more ugly, maybe down to 5520. for us, the bigger picture is we think you're going to 6800 by the end of the year. >> so thanks for being here. so, if you were to get to that 6800, what do you think -- what makes up that perfect environment in terms of unemployment, inflation, i mean, financial conditions? what's the perfect brew there? >> the most important thing is that the ten-year yield remains in check. >> what's check? >> check is basically -- call it 450, you could nudge toward 5%. if you look back at the market toward october of 2022, stocks have had difficulty, as they are

now when you get above 4.75% and you've only spent one day at 5% in that time, and that was the end of the biggest correction we've had this entire cycle. to us, that is the thing. because the fed -- i don't care what anyone says, the fed is not hiking rates this year. let's put that aside. and we don't think there's a recession. what you're left is, how effective the bond vigilantes are going to be in dictating what the limits of policy and dictating where multiples can go. >> are you waerd worried about ? look at copper prices. i realize there's news around the oil market. i don't think so much in copper. a lot of people, the fed funds rate means nothing to what they pay for their mortgage, their houses, corporate borrowing. i think inflation is going higher and i think leaving the fed aside, how does that play into the equity market? >> look, over the long term,

inflation in manageable dollops tends to be a positive. i think you have to think about it within the context of what the intent is this year. when you look at the fed, they're likely going to tolerate inflation being a little bit stickier. the same way they did last year in the spring, simply because their read right now is that the longer-term ten-year yield moving up the way it was is likely going to moderate financial conditions from overheating. >> after being inverted for the longest time in history, the yield curve is as steep as it's been in four or five years-ish. good or bad? >> net good, okay. i think this entire cycle, going back to post-pandemic, the return of, quote, unquote, normal price of money and normal term premiums, we both know that in our careers this is still very low in terms of where the

yield curve is. and you could go a lot higher. our concern is that it happens in a more disorderly way, if there's a reaction to policy as it evolves over the next several months. but we don't expect that as our base case. >> julian, great to see you. thank you for stopping by. julian emmanuel. it's good for banks, we're going to hear from them. >> jpmorgan traded great today. what's the read on the consumer, how is business activity going, and we're going to get all of that by the end of this week. when i think about it -- and tim just mentioned going back to july and august, there was a growth scare. this is a perfect ingredient in my opinion where aluations are in stocks here. the concentration of this index. we also have two years that have been powering the secular shift as far as generative ai. if there is a digestion phase, if capex starts coming down, if you do not see the use cases for this technology and return on investments, you put that together with the potential for an economy here, but also

overseas, that is going to start to feel the effect of just dollar yields. and then the last thing is the deflation in china, i don't know if that's fixed this year. if that is exported around the world or at least in the emerging world, that will weigh on our u.s. multinational. >> i think the one thing to come out of the banks will be consumer strength. and i think we've had brief sell-off in discretionary names and i think it's an interesting opportunity. let's get to an earnings alert on kb homes. cnbc's diana ol ek has more. >> the big concern was mortgage rates which dropped to a recent low in september. at the time, the ceo said in the previous earnings release that q4 demand was coming in strong. but rates shot up after that. apparently it didn't matter. they still saw net orders up 40% year-over-year in q4. he said buyers continued to demonstrate a desire for home ownership and housing market conditions improved relative to

last year despite ongoing interest rate headwinds. the average selling was up 3%, and gross margin ever so slightly, right around $500,000, so in the middle for new builds. home deliveries were up 17% year-over-year. i was just listening to the conference call and mets kerr was saying that they were seeing a soft start to this quarter of q1 and that's likely due to mortgage rates. he says he hopes to make it up in the upcoming spring season. >> diana, thank you. that's assuming mortgage rates come down. if they're higher more longer -- >> this was an $89 stock almost a year ago. i think this is a bit of a relief rally. i'll say again, if you think interest rates are going higher, i do. if you think the unemployment

rate will go higher, i think the home builders are a hard buy right now. >> i take the other side of that, we've talked about this a number of times. the phenomenon of stranded homes that aren't on the market because mortgages were too cheap. that is a bigger threat to home builders and this environment is good for them. so i kind of like this space. >> coming up, keep your friends close and your rivals closer. why cleveland-cliffs and nucor may make a bid for u.s. steel. we're continuing to monitor the devastation from the deadly wildfires in california. the latest on the damage as firefighters brace for more dangerous winds. don't go anywhere. "fast money" is back in two. this is "fast money," with lia le rhteronnbmesse,ig he cc.

pull fast, not hard. don't be afraid of the birds they're just as scared of you. can i ask you about some financial stuff? you know i hate giving out advice. talk to a financial professional today. feel comfortable about tomorrow. massmutual. (vo) what does it mean to be rich? feel comfortable maybe rich is less about reaching a magic number... and more about discovering magic.

♪ ♪ with so much great entertainment out there... wouldn't it be easier if you could find what you want, all in one place? my favorites. get xfinity streamsaver with netflix, apple tv+, and peacock included, for only $15 a month. welcome back to "fast money." firefighting efforts continue in southern california as dangerous winds and dry weather hinder efforts. at least 24 people have died and evacuation have extended to 92,000 l.a. residents. wells fargo estimates insured

losses of about $30 billion as of this afternoon. for more on the damages, let's bring in contessa brewer there in the midst of it. contessa? >> reporter: yeah, i'm in the pacific palisades this evening, melissa. we've seen a massive jump on the estimate of economic ranges, from the high end range of $150 billion to this afternoon $275 billion, and when you're out here and you see the damage in these neighborhoods, you're just looking at house by house on every street, and, to me, it just seems apocalyptic. recovery.lacounty.gov gives homeowners who have been forced to evacuate confirmation that maybe their home is gone. or by miracle, maybe it's still standing. but this website is far from updated. insurers have said they're relying on aerial imagery to try to get a sense of where their

policies may come into play. many of the homeowners in this neighborhood would have bought coverage through california's last resort insurer, the fair plan that we were talking about, melissa. today it sent out a notice saying it's way too soon to put a dollar figure on its expected claims, that it's too soon to say whether it will have to tap other funding sources, which basically means make all the other insurers pay, even if they haven't been collecting premiums on these neighborhoods, and it warned it operates on a cash in, cash out basis in paying those claims. as i previously reported, it doesn't have a lot of cash on hand. so that could mean a delay in getting money into the hands of the people who held those policies. and as of right now, we've seen red flag warnings in effect, those santa ana winds returning, they're expected to pick up and be very strong tomorrow. and this is a neighborhood, a town, a city, really, that is on edge. >> contessa, in terms of the fair plan and what it has in

reserves, how does that compare to what is now the estimated insured losses of about $30 billion? >> reporter: well, remember, we were talking about pacific palisades, and how as of last year -- and we're months behind on updated numbers, but it had some $6 billion in exposure in the pacific palisades. now, that doesn't mean $6 billion worth of homes that have burned, because as i said, there are some still standing. but it had hundreds of millions of dollars statewide in reserves. so how that plays out, there's just so much damage. melissa, i have not seen damage like this since i covered the aftermath of hurricane katrina, and i have never een it from a fire, ever. >> wow. contessa, thank you. contessa brewer bringing us the latest from california. how should we start thinking about this -- i mean, the impact to lives, which means economic

impact, is almost unfathomable at this point, guy. >> yeah, and remember, i don't think any of us want to be deemed to look at being insensitive, that's not the case at all. but in terms of the show and purview, if california was a country, depending on the day, it would either be the fifth or sixth largest economy in the world for perspective. when you look at what's going on and you start to connect the dots, almost by definition, this is going to create a bit of a slowdown. it's horrific, and contessa just said it really well. in terms of the economic impact, i think the market is going to start to come to grips with it soon. >> insurers didn't go down today, but that doesn't mean they bounced in any fashion off of the loss they saw yesterday. there are a lot of questions in terms of the insurance market, how this is structured and why there can be such vast, you know, tracks of homes that can be left to the last insurer, basically. >> well, and if you look at -- again, as guy is saying, this is

just trying to assess the insurance market and not in any way comment on the devastation, because it's been extraordinary. if you look at the insurance etf kie, which gives you some sense and it runs across not just property, casualty, but a number of other different dynamics, you can see this was already off about 15% coming into this. and we had not only the tornados and the hurricane season that was devastating, also, on the east coast and in the caribbean, but what's clear is that a lot of these insurance companies were already assessing risks well before this. in fact, as we know, both in terms of the price premium significantly higher over the last couple of years, in some sense the risk management teams were hard at work. and i know this is a very controversial area. but a lot of these folks were already cut loose and that's part of it here. a whole class of middle people have seen their life savings and homes wiped out. >> there's a lot more "fast

money" to come. here is what's coming up next. >> forging ahead, unlikely partners coming together to make a bid for u.s. steel as the deal with nippon hangs in the balance. what it all means for the u.s. industrial giant. plus, a huge day for health care, as some big pharma names make bigger stock moves. the sounds and sights from jpmorgan's health care conference ahead. you're watching "fast money" live from the naaq mkee sdartsit in times square. we're back right after this.

it all started with a small business idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?! and when thrown a curveball... arrggghh! ahhhh! [crashing sounds] we had everything we needed. is the internet out? don't worry, we have at&t internet back-up. the next level network for small business. ♪♪ i sold a pillow! carl: believe me, when it comes to investing, you'll love carl's way. take a left here please. driver: but there's a... carl's way is the best way. client: is it? at schwab, how i choose to invest is up to me. driver: exactly! i can invest and trade on my own... client: yes, and let them manage some investments for me too. let's move on, shall we? no can do. client: i'll get out here. where are you going?? schwab. schwab! schwab. a modern approach to wealth management.

welcome back to "fast money." a new deal for u.s. steel could be in the works. sources telling david faber that cleveland-cliffs and nucor on partnering for an offer for the company after the white house blocked nippon steel's takeover bid earlier this month. the offer is said to be in the high $30 share change, later spinning off the big river steel unit to nucor. this is an interesting development, two u.s. companies coming together. it sounds like the deal could happen then. >> it's clear that cliffs could not have done this by themselves and that's why they found a partner with a better balance sheet. cliffs has had a tough time refurbishing their own stock. this has been about nippon steel

coming in and actually spending money on infrastructure, maybe $6.6 billion, maybe more, keeping people employed. so is it better that two u.s. companies are coming together here? i don't think so. but ultimately bad for shareholders where the bid was, and i think it's about 40. >> i think there's still a deal in place, a valid deal in place. >> and both parties still want to pursue that deal. >> and both parties want to pursue that. i'm unclear how, first of all, i don't think they could come up -- maybe they could, i think it's unlikely when they talk about a high 30s deal to come up with as much. so i think that -- i mean, they can try, but i think for a couple of months there's still no clarity here. >> what do you think? >> the timing is interesting. again, it seems to me, though, somebody had a phone call saying, hey, we have to make this happen, figure it out, cleveland-cliffs/nucor, because the optics are bad. and i dhink that's probably what's going on.

quite frankly, i don't think either companies are thrilled with the idea, but i think something happens. along the way -- it's not going to be a straight line to 40. there's going to be a day where headlines come out and it's back to 32. >> you hope it's not going to be with cliff stock, by the way. that's a stock that's trading essentially at two-year lows, even near five-year lows. this is not a company that has a lot of resources and a share price to use as currency. we have very exciting news to share about a big event coming for all you diehard "fast money" fans. today we're announcing what we're calling "fast money" live, an event that will take place here at the nasdaq on february 27th. it is your chance to see the show in real life in times square at the nasdaq marketsite. after the show you'll stay for a q&a session with me and all the traders on the desk tonight. you'll raise a glass at an exclusive cocktail hour and be able to visit the set and take pictures on your way out. we'll give you a special

commemorative memento only to folks attending and you'll get a six-month subscription to cnbc pro. tickets are limited. there's only 100 of them. go to the qr code or go to cnbc events for more information. these guys will be on their best behavior. >> no, absolutely not. >> what about your behavior? >> i'm always on my best behavior. >> so, first of all, we've done live events before and they're some of the best we've ever done. and we enjoy this as much as the crowd does. i'm psyched. >> i'm thinking of taking off scanning the qr code and becoming a member. people say, how can we be part of the show? we so want to hang out with you guys and gals. here is your opportunity on a silver platter. and i promise you, it's going to be a lot of fun. because the stuff that goes on during the breaks and after the show is worth the price of administration. >> what happens when it gets to stubhub? >> on the secondary market, who

knows? >> not a lot of supply out there. >> you've got to go now and buy your own tickets. coming up, major moves in pharma and biotech as jpmorgan's health care conference is under way. the m&a heating up the space and weight loss kicking into higher gear. all of that when "fast money" returns. missed a moment of fast? catch us any time on the go. followhefa t "st money" podcast. we're back right after this. - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh. that's a commitment. [glass knocked] hey bud! whaddaya think? you know, people can see you out here. ha ha ha ha, yeah, yeah, right, right, ha ha. love you, too. agentforce helps retailers prevent fashion fails. it's what ai was meant to be. ♪♪ business.

it's not a nine-to-five w proposition.e. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.

welcome back to "fast money." stocks mixed to kick off. the dow jumping more than 350 points, the nasdaq posting a loss down 0.4%. chipotle lower, that stock hasn't seen a positive day in 2025, it's worst start to the day after. shares of medicare advantage players, planning to hike payments to the plans by an average of more than 4% next year. we saw gains across the space, including elevance. >> this was a positive surprise, when they are not used to

positive surprises. that was really good. the whole space has been beaten down, so i think it's a little bit of maybe there's life there. >> some more big moves, as jpmorgan health care conference sets off a flurry of announcements. moderna sinking 17% after slashing 2025 revenue guidance by a billion. back at lows last seen in the early days of the pandemic. intracellular soared 34% after johnson & johnson agreed to acquire the company. that would be the biggest pharma deal in almost two years. and gilead fractionally higher developing a small molecule pill treating diseases. we're joined from the conference in san francisco, where jillian has been speaking with leaders in the obesity space. >> that's right, this year it's not just about weight loss anymore. we talked to two up-and-comers about how the appetite is

already changing. and structure therapeutics ceo ray stevens sees pills as one way to reach millions more people than you can with inject ibles. everybody keeps trying to get the biggest number. it's really about the patient experience. so i think first, obviously you have to have efficacy, you have to have weight loss. but tollerable erating it is ju important and another category we think is important is accessibility. >> squee land's ceo says it is resonating with prospective pharma partners. >> if you get into this space, you want to get into a space where you have two giants that are dominating, would you rather invest in what looks to be, you can say, a standalone new category with the potential to

be a foundational therapy. it's super exciting to come in and lead in a new category, than to compete in one that is established. >> reporter: they're all there looking for partners to bring their drugs to the market so, we'll have to see exactly what they're able to come up with. >> in terms of what analysts are saying are the likely partners, what are some of the names? >> reporter: you know, at this point we don't have exact names. we tried to ask, but we don't have exact ones on their target list. but i think of some of the companies that are out there that haven't gotten into the space but haven't totally ruled it out. merck did a smaller deal. then you have a company , where they're not saying they're out of it, but they don't want to be in the obesity 1.0. they're already looking at what's the next thing. >> angelica, thank you. very busy jpmorgan health care conference. i think the point that ray

stevens was making about the experience, it has to be effective, but if it's going to be 23% on an injectable versus a 20% on a pill, patients might opt for the 20% because that's effective, or even 18%, but it's a lot easier. >> what are people willing to sacrifice? >> for ease and cost. >> i'll say this, she had an interview earlier from dave from gilead, they were the victim of their own success for a long time. but now, making acquisitions, making investments. i think gilead looks interesting. >> moderna is such a sad story and when you think about today's losses, going back to five-year lows. this is a company that has a lot of cash. they're losing so much money. they're doing a little over $3 billion in revenue and losing more than $3 billion in net income. you say to yourself, how much longer is that cash going to stick around?

i don't know what their ips were. if you're losing money that quickly, such a sad story. >> it is about $1 billion every quarter. they've already cut back, announced more cost cutting, cut back on r&d, which is probably where you don't want to hear them cutting back on. >> just remember in the depths of covid the stock traded near $500. insiders did a very good job of selling the stock, which i know it was sort of unexpected, a windfall, crazy amount. god, i wouldn't -- i still wouldn't touch it here. it doesn't matter. >> dan is bringing up a great point. $13 billion in market cap after this ove and roughly $9 billion in cash or short-term receivables. but that money is going fast. you look even at the money that pfizer threw, almost $30 billion to take the next step after covid.

moderna doesn't really even have that. so be careful. >> be sure to tune into mad mon tonight. catch the interviews top of the hour on cnbc. new year, new acronyms. the traders are laying out their 2025 picks and the words they hope will carry them to "fast money" glory. tim and dan's stock picks next. "fast money" is back in two.

welcome back to "fast money." it is time to reveal this year's "fast money" trader acronyms. we've been asking traders to make an acronym to watch for the year. the 2024 acronym, of course, was blicep, ali baba, lyft, idvo, chevron, estee lauder, paypal. if you left the l out, you would be up almost 3%. you would still be in ninth place. >> and there's only eight of us.

>> nice job there, by the way. >> which acronym do you have for 2025? >> so this is banned, okay, this is going to be a super group, much like to to or traveling wilburys. this is a dream team. these are companies that are all, i think you're not taking a flyer on a company like lyft or whatnot that might be great. these are all great companies. the question is, are they going to get back to glory? boeing, the cash flow is not going to come in 2025, but if we get a sniff it will come in 2026, it will move higher. a distant second, but when you talk about the pipeline, major catalysts for a company that underperformed their peers in 2024, and that's part of my rationale. i want underperformers and companies that i think, again, a little bit of move higher takes them a lot higher. n is nike, five-year lows. we know a ceo, it's not going to

be fixed overnight. i think the valuation is starting to make some sense. diageo, we've done this around headlines around alcohol, there's no question in a world of spirits companies, this is a blue chip. this is one of he best, trades 25% to its historical. this is band on the run, guy. >> that's a great song. actually, you don't like that song. >> no, i don't. >> thank you for abiding by the rules for once. >> i'm one of the few. i may have come in last place for the last five years but i play by the rules. >> let's get to dan. 2024's acronym was zebra. you ended in last place. down 2%. zoom, electronic arts, alibaba, rivian, applied materials. you're going to keep betting on a couple. you've got some rolling over into 2025. >> tim said the band is a bunch

of great companies. this is a bunch of crap companies. this is a game. >> the biggest percentage moves. >> i'm just playing a game. so mine is gen-ai and if you think it has legs, it's going to take the crap, so maybe that's this year. global founder, the ugly red-headed stepchild. >> you can't do that. >> really? there's no redheads hurt in this acronym. taiwan semi, ea, i think a company that's going to integrate generative ai technology into their offering, and the semi company that has not done particularly well, in the industrial space. we're talking about how they're going to use this technology. amat, i'm taking because this is trading near 52-week lows. if we're going to see the buildout of the data centers, there will be more chip making. and then lastly, intel, i don't really to say anything here.

ultimately maybe they'll get something right. it's a game. let's see. >> it sounds like he's already kind of come up with excuses. >> what am i going to do? this is the acronym game. >> you're calling the game. >> i just called it. you would be kind of a moron if you picked five stocks at an all-time high. >> we're going to talk acronym. >> i have a great one this year. >> that's a tease. >> okay, well, i totally get what you're doing, which is what i did with the stocks, a shameless plug for the great player on the liberty. go big, levered, crappy and hope for the best. in the acronym, what's a portfolio that could work, not -- you know, you could end up with zero. so am i off in the understanding of it? >> just as long as you play it the right way, karen. >> that's right, that's the most important thing. i know already she has not done.

that's another tease. >> she's allowed. >> that's right. a special dispensation. coming up, the headlines that had macy's and howard hughes heading in different direction. more "fast money" in two. make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley.

and stay on top for all those making it big out there... ...shouldn't your mobile service be able to keep up with you? get wifi speeds up to a gig at home and on the go. introducing powerboost, only from xfinity mobile. now that's big.

welcome back to "fast money." shares of macy's plunging on a weekend holiday shopping forecast, the company saying it expects net sales for the fourth quarter to be near or below the low end of its previous guidance range. comp sales just about flat. the company announcing the closure of over 60 more stores. time to check out of this one, guy? >> no, i think it's time to go through the front door. traded at two times normal volume, the lowest we've seen in quite some time. i don't think that's necessarily the story. there are other stories around this. and i do think at some point maybe somebody steps up to the plate. so i wouldn't be running too far from macy's here. >> it all depends on where you think the valuation is based upon this guide. based upon the business they've had for the last year, this is a really cheap company. if you think about the assets and private equity, it's an option worth having. i would love to see what guy would buy if he went into macy's. >> this seems like a parade of

misexecution here. private equity, a $4 billion market cap and in debt? >> i always find the shrinking problematic, right? >> of course. >> it is inexpensive and the balance sheet has been cleaned up a lot. that's in the plus column. nordstrom is doing it. >> from a drop to a pop, take a look at shares of howard hughes, the stock soaring nearly 10%, taking the company private for $85 a share. that's an 18% premium. ackman said they would create a new entity that would merge and they own about 38% or so of the company. he wants to create a berkshire hathaway. i think that's interesting, that notion. >> it is interesting. he's been in this for a long time. he's had some enormous hits. he's allowing people to roll in to be with him if they want to.

that's sort of interesting. i haven't bought it, though. >> what do you think of it? >> i think it's an interesting thought by him. this gives him an opportunity -- i don't want to say a shell, but a vehicle to sort of build something. he's still young enough to do it. i think it's an interesting play by him. >> berkshire or this new entity? >> i think we have to go apples and oranges here, as i'm sure we would be implying. but i think berkshire. if you look at a year where the energy assets in this -- in berkshire really underperformed on some level, i think it's a year where energy will outperform, valuations, free cash flow, some of the acquisitions and layering deeper into the trades is what he's been doing. i like that. >> up next, finatresl ad. next -- >> you own a stock with ai in the name, you could be in trouble. you need to ring a register tomorrow. they've come too far, too fast

for technology. it can take over a decade to deploy. >> mad money, next cnbc. ♪♪ ♪♪ at state street, we know everyone's trying to get somewhere. ♪♪ take the next step toward your future, by investing in the s&p 500 with spy. getting there starts here.

t-mobile's 5g network connects a hundred thousand delta employees so they can make every customer feel like they've arrived before they've left the ground. this is how business goes further with t-mobile for business. ♪♪ only servicenow connects every corner of your business, putting ai to work for people. pfft ... every corner? every corner, nick. ow! so kate in hr ... hey kate. can focus on people, not process. oh actually, i have a question ... keep up, nick. do you have to be sick to take a sick day? patty in it is using ai agents to deal with the small stuff, so she can work on the big stuff. agents like secret agents? secret agents i control. with your mind? you know ... i played a secret agent once. - we know. - oh gosh ...

i liked it. over here, ai gives tina the info she needs to get the job done. nick, what did we say about touching? no touching. good. ai helps jim solve customer problems before they're problems. for reals? for reals. for reals. servicenow is the only platform that connects every corner of your business, putting ai to work for people. oh, so we all work better, together! my work here is done. excuse me, which way back? uh, follow him.

another reminder, do not forget to sign up for "fast money" live, an exclusive chance to see the show in person at the nasdaq marketsite on february 27th, including a q&a session with me, the traders and exclusive cocktail hour. six months of cnbc pro, and much more. tickets are limited. click on the qr code or go to cnbcevents.com. we're hearing some people are having trouble, there's a technical issue. please try again. tickets are on sale. >> time for the final trade. tim? >> much like the "fast money" event, band is going to be rocking this year and i think this is the story. look at those names. boom. >> dan? >> genai, i wouldn't buy it. it's going to be important from

a sentiment standpoint. if these stocks work, we're going to be in a full-on mania. >> gigantic sell-off on what i think was news that would not warrant that. i actually bought some. >> in savannah, georgia, barbara never misses a show, celebrating her birthday. my mission is simple to make you money. i am here to level the playing field for all investors. there is always a market somewhere and i promise to help you find it. mad money starts now. hey, i am kramer and welcome in from san francisco. i am just trying to make you money. to educate and teach you. call me at 800-743-cnbc or tweet me at jim cramer.