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tv   Fast Money  CNBC  December 10, 2012 5:00pm-6:00pm EST

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disappointed over the weekend. tomorrow, we get philippines trade day and then we get the u.s. trade balance and we'll be looking for that import line to see if exports from emerging markets into the u.s. have been slowing down materially. other than that, we'll be looking at the survey of business optimism coming out of europe and lastly we have a monetary policy decision from indonesia that we don't expect any change. >> very good. >> thank you so much. >> thank you all very much. that does it for "fast money." thank you for joining us. >> thank you. any time. >> see you later. >> "fast money" starts right now. from the cliff to china. investors finally get some positive news. >> atmospherics are getting so much better. we kind of gotten out of a kabuki theater and we've gone to dancing the tango with those two guys and any time you start to tango, you got a chance. >> but the mixed messages don't stop there. >> apple, to me, is a trading sardine. not an eating or investing sardine for the next few months.
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there are no clear short-term positive catalysts that i can see. >> i think apple has become a casino. i think it's problematic. >> oh. and there's always europe. >> well, you don't have to be einstein to work out that there's a problem. >> fasten your seat belts. there's lot to trade. this is "fast money." i'm melissa lee. here are tonight's top three trades. lucky 2013. why you should be looking past the cliff with confidence. picks for the new year. plus, pinching pennies. why the friends and family sales are more bad news. and spin cycle. o your old washing machine. president obama and speaker john boehner met at the white house on sunday to discuss the impending fiscal cliff. neither offered details about the discussion, but both said the lines of communication
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remain open. is the fiscal cliff end game finally approaching? joining us now is ben white, politico's chief economic correspondent. ben, maybe it's good news they didn't come out and say, we're so far apart. >> it's a good sign. any time that boehner doesn't come out and say, we're nowhere, that's good. these things are going to get done in private. both sides need to leap off a bridge here. the republicans need to some how figure out how they're going to let the top rates go up. democrats need to swallow some changes to entitlement programs, raising the retirement age or changes. the less we hear, the better, in the next few days on the negotiations. as soon as you hear leaks saying these guys are too far apart, that's the problem. if we hear nothing, that's actually pretty good. >> are we starting to see the beginning of the gop move into the center with the comments over the weekend from senator corker and this morning, letting the tax rates go higher so the shift can be, the time shift can be spent on entitlements. >> the republicans some how want democrats to say what they want to cut on entitlements first,
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that's not going to happen. republicans need to ask for that. corker has always been a little bit more moderate. it's not that surprising to hear it from him. it would be more encouraging to hear it from more conservative members of the house. they are still adamant that no tax rates going up. but i think it's moving that direction. they see the polls. 60% say they're fine with it. they're not ignore rat of those numbers. >> take a second and describe how you think both democrats and republicans are going to describe the deal to their constituents. >> right. i think republicans have to be able to say, look, we allows these top rates to go up, it wasn't our best idea. we would prefer to see low taxes, but in return for that, we got significant spending cuts. we got 600 to a trillion in spending cuts. somewhere in there. and we did what's best for the economy. we got the best deal we could with this president and you're going to see a lot of spending cuts and some trims to social programs and real entitlement cuts. democrats need to say, we fought hardest on our number one issue,
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letting the top tax rates go up, and they're going to go up. the wealthy are going to pay a little bit more. we had to agree to sensible changes in entitlement programs that will make them solvent. they'll say, this is better in the long run, but the rich are paying a little bit more. >> so, it seems like of the two parties, through this process, the republicans have become the most fractured. so, is the party beyond repair and as we go to 2013, do we need concerned that nothing can be done because you really don't have another party, you maybe have a tea party spoiler? >> i don't think it's beyond repair. they do have some issues regarding tax policy and a lot of pressure from the tea party on the right not to allow tax increases as part of a deal. once we get past this first agreement and we avoid the fiscal cliff, we get into next year, there will be a debt limit fight, that might be less intense if they can get through this one. and the republicans will come up with a new way to talk about big spending cuts in return for some
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entithe entitlement changes. >> ben, thank you for stopping by. >> thank you. >> this morning, i was thinking to myself, self, if we get a deal, what would the market reaction be to a deal? >> that isn't -- >> because you can really make the case for either way, a selloff or a rally. >> i think the way the market sets up right now, the fact that we continue to sort of push towards this 14 and a quarter level leads me to believe that people are believing there's a deal that's some what imminent and we're going to rachet our way up. but my push-back would be, i mean, a deal, it's not buy their. my sense is, u.s. going forward, whatever deal is made there are going to be serious cuts to serious things. though a deal -- a deal that comes out in terms of the media, it's going to be positive for the market. the aftermath, it won't be as positive. >> i would look at the foreign markets, too. that's really where the growth is right now. you look at the u.s. next year, you are looking at a fractured political system, potentially austerity, on the edge of recession.
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where else do you want to be? china great numbers there. maybe in europe. those are the areas that might be better to invest in than the u.s. after a deal. >> all right, let's talk stocks, if we do, in fact, get a deal on the fiscal cliff. scott nations, where would you go first? >> i would short gold because gold feasts on certainty and if we have a deal, then there's no uncertainty and some of the things coming out of gold from, say, thanksgiving is going to continue. in addition, if you are going to sell something to finance purchases, gold is perfect. >> what do you do? >> i would go to the defense sector. i think the way it sets up, technically, it looks good here. if you do get a deal, lockheed martin is the way to go. >> i'm in that camp. i would go to boeing. look at them. it's had a tremendous year, the stock is around a 52-week high, sort of sideways, i think any
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certainty in terms of the economy going forward is going to be well for boeing. a lot of pent up demand for airplanes, basically just more efficient. boeing could really win. >> and are these binary trades, though? >> yes, i think in the short-term they are, but all three of the names we're going to mention, i'm mentioning general dynamics are long-term good. in the chance of general dynamics, you have a 10% forward free cash flow and it's trading at ten times forward earnings. a 50% market share in the large cabin private aircraft space and the best brand, that would be gulfstream. so, these stollings will do well with or without the cliff. i do think we get a resolution, these will do well quickly. >> pete? >> if we start to get ourselves into some sort of position, the housing recovery has already started. i think that's why the financials really are one of the airs i'd see the most explosive upside. bank of america trades half times book. they are very leveraged.
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if they can get past a few more hurdles, and they can actually at some point implement a dividend yield, suddenly the stock gets a lot more attractive to just about everybody. warren buffett's in it, i'm in it. >> but is a dividend yield the only -- >> no. >> i see lending being okay, but the spreads aren't that great. do you want to lend for 30-year-olds on a mortgage. where is the growth going to come from? >> take a look at what their cash, right now, what their generation is, just unbelievable. these are money making machines right now. if the government gets out of their way and they can continue this and continue with the housing improvements that we're seeing, some of the refinancing. they were talking about how they want to adjust, make some of the deals a little easier for people to get through. i think for all those reasons, that's why i think this is an explosive jpmorgan, citi, i like that. >> let's talk about hewlett-packard. unconfirmed report that carl icon may have an interest in the
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company. are shares are down 44%. so, could this be a turn around for the stock? now, david reported earlier today that the company is not aware, if icahn is in the stock. they have no knowledge. it sounds like perhaps this could be just a trading rumor that is sort of out there. these rumors have been out there for a long time. an activist, like maybe a ralph whitworth woucould push for cha. >> we've gotten to know carl over the years, this seems to be right up his alley. i would say, where there's smoke, there's fire. is it a katkatalyst? potentially one of the many we've spoken about. the biggest is that november 20th. two back to me, that was a bottom. we talked about it in the ensuing days. the stock has traded really well sense on what's been a flat take. i think that's interesting. there are other reasons to own it. the company might be broken. the stock is actually
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interesting. >> there you see the marker where the autonomy alleged fraud story came out. i hate to say it's a win-win situation, but could it be seventhing up as win-win, given the stock is pummeled, basically, so far this year? and either meg whitman accomplishes change and there's an improvement or she's out or combination of management changes such as an activist coming in, forcing a change? so, either/or, you've got some sort of change happening. >> well, in the options market, i saw nothing to the upside that would indicate the options market anticipates carl's in here. the stock early on got to the highs of the day then settled off. i think it's a very interesting possibility that this name is finally ready to start turning around. meg whitman, when she first laid out the process of how hewlett-packard was going to succeed, she gave us a very long-term look and everybody started waiting for each individual quarter. i think you're finally starting
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to get out to the points where meg can finally show what she's been able to do with the company and the direction they're going. at this level, you're down side is very, very limited. >> remember, too, that last year, they hired goldman saks to fight off activists. >> pete is right. there was huge call buy, but giving options got 8% more expensive today, somebody's taking a different point of view. they like the name but they want to sell. and, selling is a great way to either get long in a stock at a discount or make money if it goes sideways or up a little bit. we saw a giant seller, january of 2014, $13 puts. they sold those for a buck 85. and that means they're break even is $11.15. expect hp to be at or above $11.15 at that january of 2014 expiration. interesting thing here, you know what, that's just about the 52-week low and they're saying, you know what?
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that's where we're happy to get long. >> just quickly, gun to the head, dell or hewlett-packard? >> hp. you have a floor in the stock. i look at it like a yahoo! right now. maybe it goes sideways, but you have the potential that an activist comes in. i like that selling puts on this. coming up next, is it too little too late for j cpennejcp? one analyst will tell you. plus, deal or no deal for best buy? separating fact from fiction. and why a washer and dryer could help the country's economy. we'll dive in deeper. stick around.
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♪ that's that adele. she is great. >> appropriate for the weather we are seeing here in times square. >> what's that weather? >> rain. >> she's very melancholy, that adele. >> let's check in with kayla. >> watches shears of limited brands. the company announcing after the bell today it will issue a special dividend of $3 a share. of course, this is just the latest company, in accordance with the recent trend of special dividends ahead of that fiscal cliff. interestingly, stock up a percent and a half but the bears were out for limited today. really heavy action in the december strike puts it 48 bucks. interesting, stock jumping today. good for those long only shareholders. >> thank you, kayla. fact or fiction. there will be no deal for best buy. bank of america moving best buy back to an underperform from
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having no rating on the stock. saying it's back to trading on fundamentals rather than buyout potential. best buy's founder offered to buy out the company back in august. but the board refused to sell. he is set to meet with the board again and could make an build later this month, but bank of america expects any potential offer will be well below his original price. so, fast or fiction? no deal will materialize for best buy? pete, what do you think? >> i'm convinced that there's probably not a deal. i mean, i wouldn't be buying the stock based upon whether or not this is going to get a deal. mr. schultz is excited about the potential of doing this, but i don't know if he can convince the rest of the folks to get the money up there to get through the bidding process with the lbo. i think this's a possibility, however, because of that, i hope some upside calls. continue to see upside call activity based upon the people that buy into the rumors that come up. but i don't think it's really going to happen. i still got to have my foot in the water. >> anthony? >> it comes down to financing.
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if you look at the numbers and you look at where deals are getting financed, it's not going to happen based on that. i would bet against it. i think it's a fiction. >> all right. >> bottom line, right. exactly. let's move onto another beleaguered retailer. what is jcpenney's strategy. loyal customers and wall street alike wondering. ron johnson's initial approach was to lift sales to every day low prices and not through special promotions. but in december alone, the company has rolled out two special deals offering big discounts. the question now, is ron johnson's new strategy too little too late? let's welcome jpmorgan's senior retail analyst. matthew, great to see you. >> thank you. >> is this a switch in strategy or is this just desperation to get rid of inventory that's built up? >> i think it's a little bit of both, so, you know, i think that the moves that we've seen, you know, five pricing changes over the last 60 days, i think is more a result of sales trends
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that are clearly below as well as building inventory. but i think there's flexibility on johnson's part, heading into next year. i think the customers clearly voted that without sales, jcpenney is not their top destination. and so i think as you head into next year, jcpenney potentially is considering more of a hybrid model of sales, maybe more on basics, but trying to keep full price in some of their more contemporary and fast fashion brands. >> hey, matt, brian kelly. the whole jcpenney story is on the fact that some day, ron johnson will be able to have every store out there, the way he wants it to look. if, for some reason, he had a magic wand overnight, every store could be transformed, jcpenney be a screaming buy then? >> i mean, that's obviously the million dollar question. you know, i go back to a dinner that i did with ron here in new york back in may and, you know, ron outlined that the enabler for better brands in the store, longer term, was pricing.
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and so, you know, these changes are concerning to me, in that, you know, they may be able to salvage some sales near term and, you know, maybe bring customers back in by returning to the jcpenney of old promot n promotionally. but going back to that direct quote from ron, that pricing was the enabler for change on the brand side, i think a clear communication to the vender community about exactly what's going on, as well as a reset of expectations heading into next year, you know, given that the expectations fell so short this year -- i think there's a lot of work to be done and a lot of convincing to the vendors and the customers heading into next year, before i would potentially call this a success or get more constructive on it here. >> matt, i think -- it's important to know who you are competing against. from where i sit, at least, jcpenney seems to be sort of in this zone of not knowing who their competitors are. they are sort of in this land of, in the middle of nowhere. does that make sense? are they sort of competing
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against themselves right now, because they don't seem to have a competitor that's sort of going after right now. >> no, i mean, you're absolutely right. they're trying to fit -- the game plan is to try to fill the white space between macy's and nord strorm. they're not moving as high end as a nordstrom or a saks and trying to move a bit away from the promotional model that a macy's has today. the problem is, is, as they strayed from that promotional model, the customer found other places to shop. i think the reality is, their customer was a lot sicker than they believed to begin with. and so, you know, where they lost some of these customers was to places like sears, walmart, to ross and tjmaxx. regaining that customer back is going to be difficult, as we head into next year and beyond. you know, i do think some semblance of the long-term vision that ron laid out back in january can potentially be here
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longer term but i just don't know how many pieces of that pie are going to be intact. >> all right, matthew, thank you for your time. matthew over at jpmorgan. where do you stand, pete, on jcpenney and what do you see in terms of befting either way? >> on jcpenney, the paper is constant in there and everybody is trying to pick bottoms and being wrong. and the stock continues to break down. credit to stephen weiss, who has been all over this. he mentioned, actually, he was talking about sears holdings taking away some of that, and that becomes an interesting story. because if sears can reinvent themselves and maybe they're being able to do it quicker than jcpenney, that could be a turnaround story that's well worth watching opposed to jcp -- >> you think sears is turning around in fashion -- >> i don't know if they're turning it around but they are starting to turn some around, and they are stealing customers for sure. >> macy's, of course, one of the biggest beneficiaries of j jcpenney going downhill --
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>> they seem to have their act together. karen's liked macy's for awhile. if you had to pick between the two, i would rather own m right now than jcp, understanding there could be a huge short covering rally at some point, but if that's what you're betting against, i would just frankly ride on macy's. coming up, shaking off if fiscal cliff fears and getting bullish for 2013. and find out what sectors he's betting on. and then, our traders are telling you how to stack in your favors. that's coming up next. to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future.
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or visit ♪ ♪ i want a new drug ♪ one that won't hurt my head >> welcome back to "fast money." i want to look at shares of aig. into the red, after hours, on an announcement from the u.s. treasury saying they will launch a tender offer for a 234 million shares, underwritten offer, by the treasury. this is the remainder of the
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treasury's stake in aig. a 16% stake of roughly $8 billion. quite a coup for the treasury and for aig alike. but when you issue new shares, of course, you're going to see that stock go down. melissa? >> kayla, thank you. pete, your long aig -- had to have been expected. >> right. sooner or later, we expected to see some of this. if the stock doesn't get hit too hard tomorrow. one thing i'd keep in mind is, the upside call buying in this name has been absolutely spectacular. so, folks definitely betting on the idea that some point, aig is going to get going. by the way, the buying has really put more in january than in the short-term. if we start to see that bounce, there's plenty of time to see the options perform. >> the countdown to the fiscal cliff continues and markets remain in cliff hanger mode. should you be getting bullish on 2013? joining us now, ed. >> thank you. >> i'm curious what your take is, if a deal is announced tomorrow, what would the market be? >> 1465 in a heart beat. get to a new high.
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i don't think we'll take out the all-time record high but that could happen early next year, so -- i think all the focus has been on all the bad things that might happen if we go over the cliff. if we avert it, i think it's very stimulative. >> in your most recent note, you said, i think half jokingly that december 16th could be a line in the sand. that's the day is president is scheduled to go to his hawaii vacation, which will cost taxpayers $4 million. >> according to the hawaii reporter. >> the other bookmark is his inauguration. you don't want these things to go through the inauguration, either. so, that gives us a very tight window. >> look, politicians have a long track record of kicking the can down the road. they could certainly do it again. but i've characterized this bull market as sort of the rodney dangerfield of bull markets. absolutely no respect. and it just keeps climbing this wall of worry, as the old adage goes. >> talk a little bit about earnings and the things you are covering, health care, financials. >> certainly.
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>> how do you think earnings are going to shape up for 2013? >> i'm optimistic. we could see $110 for the s&p 500. the multiple right now is about 12 1/2. we get down to 12, 13 seems to be unlucky. we can't seem to break through that. but if we get through this cliff issue, and we will, one way or another, even if we go over the cliff, there will be some resolution afterwards. i think earnings are going to hang in there pretty well. they are only triggered by the global economy and china still looks pretty good. europe is probably going to be hitting a bottom next year. the u.s. is actually going to surprise. there's a lot of underlying strength. government and gdp and the company growing 3% since 2010. not bad at all. >> so, the revenue growth, i just don't see where it's coming from, frankly. >> yeah. >> people think we've troughed. may or may not be true. the revenue growth just isn't there. is that going to pick up? >> that's a great point, a key
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point, because i'm not going to make the argument that profit margins can go up. i don't think they're going to go down. i don't think they're going to go up. earnings are going to grow at the same pace as revenues. revenues are generated for s&p 500 companies, actually for a lot of companies, doing more business on a global basis, and i think on a global basis, nominal terms, revenues can go 5% to 7%. right now, they're zero. but that's a cyclical bottom rather than going negative. >> no time left, ed, but i want a sector pick. for 2013, you have outperformers, but in terms of, you know, consumer discretion, health care financials, industry gases, specialty chemicals, which will provide the most upside in 2013? >> i think health care, at this point. the area is still pretty cheap. we do have a pretty good idea of what the health care system is going to look like under obama care. companies are going to generate good earnings. >> okay, ed, thank you.
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>> thank you. >> ed yardeni. let's hit pops and drops, big movers of the day. kick it off with a drop here for apple. down 1%. anthony? >> mutual fund rebalancing going on, year end, and so apple is falling and i would stay away from it right now. but going into 2013, they have pretty good fundamentals. >> nexen, a pop. b.k.? >> they got the deal done. i would look for more canadian, buying of canadian assets on this, canadian government paid an overture that they are open for business, just not completely for sale. >> drop for smith and wesson. >> interesting day on friday. the stock traded over 11 bucks, closed around 9 and change. technically a very bad day. i think the stock is going to be a buy. no one-day events, which means it probably goes down tomorrow. buy it now. >> eastman chemical, a pop today. the move, 1%. pete? >> not only a pop, but new
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52-week highs. ed just mentioned the chemicals, i love this space. eastman chemical today, keep an eye on this. 65 strike calls extremely active in march, romming up from 62 1/2, looking for the 65 to perform. keep an eye on this. >> pop for fedex. up 1%. scott? >> company expects today will be its busiest of the year. they expect to ship 19 million packages. and given the e-commerce spending, they think this year's busiest day is 10% busier than last year's busiest day. >> and, we have a pop here for meggings. the clear sign of a mayan doomsday yet. a new and unfortunate fashion statement. meggings, or male leggings are suddenly all the rare. celebrities from justin bieber to lenny kravitz peeling on the skin tight pants. big name stores carry tights for men, we all know who is way ahead of the fashion.
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>> there you go. you're wearing them right now. >> i'm wearing them right now. i'd stand up, but i'm scared they might rip. you don't want -- live tv. >> we don't want an fcc fine. >> pete and i -- >> don't put me in there! >> giddy up. >> no. coming up, the next big boost to the u.s. economy could come have an unlikely source. stick around and find out why your hoch's kitchen or laundry room may take on a new importance of pushing america forward. stick around.
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could dying appliances help to revive the u.s. economy? on friday, asked jeff feddig about that. >> if you look at the u.s. data for demand, the bubble, so to speak, really occurred between 2003 and 2006, so, beginning next year, we'll start the ten-year beginning cycle of replacement. we will get a catalyst from both housing and the replacement cycle over the next three to five years. >> in fact, you can see the boom here. housing starts peaking nearly a decade ago. look at the average life span of your appliances.
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10 to 14 years is the average range. we're going to break down the replacement cycle and the impact. neil, great to have you with us. >> thanks for having me on. >> there's a boomerang effect, but how much could this actually fuel demand? >> well, i think this is really the next leg in the housing story for the u.s. economy. i think right now, quite frankly, there's nothing but cyclical upside to the u.s. economy. if you look at cyclical components of gdp, things like durable goods consumption, refrigerators, ranges, microwaves, relative, even cars, relative to their share of gpd, historically, we haven't really had a recovery. even though we've technically been in one for three years. to me, only a matter of time. right now, the average age of a consumer durable good is five years. that's the highest since the 1950s. so, to me, it's just really a matter of time. we know that househood balance sheets are improving.
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really the only drag right now, i think, is this fiscal cliff and the uncertainty around it. >> right. >> and how that's having an effect on household decisions right now. but beyond that, as i said, i said it again and i'll say it again, nothing but cyclical upside to the u.s. economy. >> if you've done -- i don't know if you did a back of the envelope calculation, just bring up consumption of durable goods to the norm, what we've seen it in the past, how much would that be in terms of, you know, new washers and dryers and so on? >> we're talking about 3.5% by this time next year. there is no reason to think that the u.s. economy is relegated to 1.5% gdp growth in perpetuity. so, i think 3.5% growth this time next year, that's what we're talking about. >> so, neil, we know all the cycles about the washers and all that, but the one thing that's different this time is that we've gone through a new leverages cycle. the consumer behavior over the next year may not look like it's looked over the last 50 years. what gives you the confidence
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when they've gone through this cycle and might have to deleverage more? >> nobody is saying they're going to go back to the hay days of the boom era. just talking about a normalization. a modest normalization. >> what's normal? what's normalization? >> i think people underappreciate just how weak the recovery has been and just how depressed the economy is. the household deleveraging story, it's true it probably continues into next year. it's not accelerating. net worth to income ratios, the fact that home prices are beginning to rise. >> you be it's barely come down from the peak levels, i mean, we had a two standard deviation move and credit in household debt and we barely have come back to trend line. i mean, i would think there's a heck of a lot more deleveraging to do. >> i'm not so sure i agree with that. i think right now, the personal savings rate is 3%, 4%. likely to go up to 5% this time by the second half of next year. and then, we're coming to an end
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of the upward adjustment of the household savings rate. debt income ratios are back to levels we haven see since the early 2000s. really, it's about a household's desire to be levered. not what their debt to income ratio is. and consumers are more willing to take on debt. >> neil, thank you for stopping by. there aren't too many pure play appliance companies -- >> well, let's look at the obvious one, and i think he makes a compelling argument. but the question is, is it reflected in the stocks? and whirlpool was a 50 handle in july, now that stock is trading either side of 100 bucks now. it's been a monster move. i would be cautious here, only from a technical reason. looks like we're putting in a bit of a double top. i know a lot of people plan this on the short side. whirlpool i'd be cautious right here. >> a lot of these appliance stocks have this built into it, the macro factor.
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i'm more in brian's camp. i think people are poorer than we'd like to see them and we can't look at past trends and identify this as our future, so, more over, these appliances that were made in the last five years are actually pretty good and people can go out a few more years. we'll see what happens. that's what makes a market. let's move on here. big political news out of italy. the prime minister says he will resign after his party pulled its support from the government last week. former prime minister silvio beryl coney says he is considering a come back. what will this all mean for the euro? let's bring in amelia boar dowe. we saw the cracks in terms of lack of support last week. we saw the reaction today. >> right. you know, it seems things stabilize and a new comment introduces uncertainty once again. what's happening is, you know, market investors are pretty concerned about beryl coney, because he is so anti-austerity. and italy is one of the
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countries that's been targeted by investors as perhaps needing a bailout in the future. teetering on the edge of needing one. we did see ten-year bond yields rise in italy and also in spain, because people tend to think of spain and italy together. so, there is a contagion factor here, as well. so -- >> walk us through the trade that you got. >> sure, so, i'd like to short the euro, but not against the dollar, because i think the dollar will stay weak until the fed meeting. i'm going to short it against the yen. i enter at 106.50, the current level it's trading. a target down at 104 and my stop is up at 107.50. >> all right, amelia, thank you. see you on friday. >> thank you. let's check in with jane, see what's she's looking at next. jane? >> next, melissa, you have to ask yourself, how much do you love starbucks? do you really love it? and also, who should play john mcafee? preferably, someone who is living.
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we'll have some ideas when we come back. let's give thanks -
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for an idea. a grand idea called america. the idea that if you work hard, if you have a dream, if you work with your neighbors... you can do most anything. this led to other ideas like liberty
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and rock 'n' roll. to free markets, free enterprise, and free refills. it put a man on the moon and a phone in your pocket. our country's gone through a lot over the centuries and a half. but this idea isn't fragile. when times get tough, it rallies us as one. every day, more people believe in the american idea and when they do, the dream comes true. we're grateful to be a part of it. welcome back to "fast money." we're watching shares of urban
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outfitters popping after hours about the company disclosed it actually had single digit growth in same store sales for its fiscal 2013 fourth quarter. analysts expected those same store sales to be flat, but a filing coming out after hours today, actually saying those sales will be better than expected. they are actually expecting quarter over quarter gorowth. you can see that's a material disclosure, guys. good thing urban outfitters didn't disclose that on its facebook page. >> kayla, thank you. from mobile devices to medical marijuana, we've got you covered. jane is with us now. jane? >> hi, melissa. starbucks shares are up 4% since announcing the limited release of a $400 stainless steel gift card. but the gift card has appreciated by 150%, after receiving out quickly, the secondary market is testing how much a cup of nonfat two pump no foam mocha is worth. the highest bid i've seen so far is $1,000. the one seller says you can buy
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it now for three grand. i say buy me an ipad and some dunkin coffee. >> the whole notion of the $450 gift card, which only has $400 worth of credit on it, because it costs $50 to etch it -- >> crazy. >> with your name on it -- >> don't lie. i saw it in the green room. >> they have a special pocket in your tights for that card. >> meggings. >> all right. next, we get all -- we're going to get all googly, because if you violate my kids' privacy, apparently there's an app for that. the ftc is investigating for potentially violating privacy of children by quietly collecting information about them and selling it. speaking of google's android, goodle has opened a campus in tel aviv, where it plans to help promising startups in the promised land and maybe they can explain why g-mail went down today.
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folks took to twitter with advice, like, g-mail is down. go and have lunch with somebody you care about. melissa? >> g-mail and drive was done, apparently. what's the trade on google, pete? >> i like google, but i still think when you look at yahoo!, one of this things we talked about recently is, how yahoo! is actually starting to steal back some of that search. who are they stealing it from? they are taking some of it from google. i like this yahoo! story right now. i think you have more upside. >> amen. >> all right. >> we talk about it for awhile now. >> we have. we have. >> jane? >> all right, finally, this john mcafee story is right out of hollywood. we need to start casting the movie. one likely candidate is vladic sheybal who played dr. boogalow. but i found the late, great roy shader, seen as bob fossey in "all that jazz." unfortunately, they are both dead.
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so, casting remains open. i see on the set one person with facial hair and i think -- if pete had a really, really, really hard weekend, monday morning, he could play john mcafee. >> i had a rough one this weekend, as a matter of fact. boy, that was tough. >> little extra time with tequila mocking bird. >> meggings were too tight? >> no meggings here. >> have you heard of meggings, jane? >> have i heard of what? >> meggings. male leggings. >> oh -- you know -- not where i live. not the part of town where i live. real men live in my neighborhood. if i see that, i'm going to go out and slap him. >> good for you, jane. that's why we like you. >> i'm looking forward to that, then. >> all right. jane, see you tomorrow. coming up next, barnes & nobles, one of barron's top t k picks. should it be yours? and we head to the twitter
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♪ let's go to unusual mover
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that has been trending today on twitter. >> that's right. barnes & noble catching the attention after being named one of the top ten favorite stock ideas for 2013. riding that, the nook division is losing money but that reflects a market share grab as they seek to get it e-readers into the hands of as many consumers as possible. but the traders on twitter, not so convinced. jh tweets, i like barnes & noble, but still skeptical of the brick and mortar segment and key is not sure about the stock, but will surely buy their products. and ticker tutor says, i can't believe i'm saying this. buy and sell shares of apple. with today's move, with one involved the bulls moving in, it does have a short interest of 36%. that was a big question on twitter today. >> and of course, today, they announced the reduction in price of the simple nook e-reader to $79, from $99. which really magnifies this notion of losing money on this device in order to make money on the content side of things.
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>> that's the only way they have to compete. for me, barnes & noble is a no touch. it's a broken business model. >> yeah, i think that's what rallied the stock today. doesn't mean it can't rally. but every rally in the stock for the last year has been an opportunity to sell it again and my instinct is it's going to be the same thing this time. >> you can see value in barnes & noble here at this point? if an activist came in, break up value, anything like that? >> well, yes, if you are going to break the entire thing up. but what will typically happen, your management will run it into the ground before it gets broken up. i'm a book lover. i want to see the stock thrive. there are so many things going against this company right now. this could be a classic value strap. >> all right, thank you for coming by. joining us with some tweets. we mentioned barnes & noble. one of the ten stocks named in 2013. the list, published over the weekend, runs the gamut of sectors. interesting picks in here. apple, jpmorgan, viacomm to name
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a few. let's go to what intrigues us. oh, look, gd. >> smart move, that anthony, sometimes. >> out of the names that are there, people's talked about this health care sector. it's still underloved. and dare i say underowned. if i had to go to one of those names, novartis for me. >> and viacom, as well. i would look to viacom if you want a long-term 2013 pick. >> i get some of these but i don't get others. barnes & noble seems to be a head scratcher. western digital, pete, seems to be a head scratcher. >> we talk about it all the time. we look at the evaluations, but you just wonder, how long are they going to be able to continue, to compete. i'm looking at jpmorgan. i love that stock. i think next year is going to be a big year for them. and there's a couple other ones that stuck out for me. marathon, by far -- i love that
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space, i like the refiners. i think marathon, phillips 66, we see activity in there all the time. they're going to go higher. >> scott, your pick on the top picks list? >> i like jpmorgan a lot. but it's the safe name in the space, if you really want to go a little bit further out on the risk profile, then who you can still go to bank of america or citi. >> all right, coming up on "mad money," coming up next, claimer has three ceo exclusives tonight. on the bio-tech front. that's all coming up, top of the hour, jam packed hour, you don't want to miss it. we have your first move tomorrow when we come right back. stay tuned. [ male announcer ] feeling like a shadow of your former self? c'mon, michael! get in the game! [ male announcer ] don't have the hops for hoops with your buddies?
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time for the final trade. let's go around the horn. scott? >> i agree about deleverages. when your washington machine dies, all you care about is how quickly you can get another one. i like whirlpool. >> b.k. does wash his clothes. >> you always smell fresh as a daydy. >> i actually like the material sector here. you get a china play out of that, you get the chemicals in there. i buy xlb. >> he smells like snuggle. l


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