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tv   Fast Money  CNBC  December 11, 2013 5:00pm-6:01pm EST

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>> thanks for joining me. we have plenty ahead this week. "fast money" coming up in just a few seconds. are you talking macro. >> yes, i knew this would warm the cockells of your heart but we are going to tell you the one chart, the one chart that is the most accurate economic forecasting tool. any guesss? >> i might say like the new orders index or the pmi. >> way too geeky. you will have to tune in to find out what it is. >> over to you guys. >> at the edge of your seat. >> "fast money" starts right now in new york city's times square i'm melissa lee. tonight's lineup. the internet stock bucking the trend but how long will it last and pandora's shares falling like a lead balloon. it's not because of apple itunes but with led zeppelin. we'll explain, plus which stock will announce a buyback next? our traders have a few ideas which could take a page from
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mastercard's. dan nathan. josh brian, brian kelly and steven. let's get to our top story. the late day sell-off, the s&p and nasdaq falling more than 1%. if you read the interweb, brian kelly, it will say because there are worries about taper. >> i think the interweb is wrong on that. if you're really right today discovering, oh, my god they might taper next week and you're selling today you're probably doing the wrong thing. the market has been up tremendously. it got a little scary today let's call it, 1786 on the s&p 500 was my very short-term line in the sand. now looks like we'll have to go down and test 1750 and see what happens from there. but it was indiscriminate today. >> i don't buy what the interweb tells me either in general although i will push back and say now that we have a budget deal isn't it more likely the fed will taper sooner? it's more of a higher probability at this point so -- >> i think everyone has been so wrong on whether or not -- when
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they're going to taper that it's just to me you have to push it off the desk right now. you have to worry about going to year-end, rotating into stocks thaw think have better growth or the seasonality of december quite frankly so at this point you stay long, things you love. i'm staying long what i love. yahoo! twitter, hewlett-packard. i'm not in love with hewlett-packard but staying long, a bunch of my longs knowing i can't pick the bottom. >> i actually think the interweb has got it right and really the taper discussion was not what we were talking about today. on all the top finance sites and top blogs and even in the mainstream media discussion was all about those aaii sentiment numbers. they were off the charts. i called them embarrassing on my blog today. it was the highest read since 2004 and each time we've seen a read like this, has been something on the order of a 5% correction. last 12 instances so i think that that's what got the chattering classes to talking. you might think the internet is
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separate from the market but you would be incorrect because a lot of the guys putting out trading notes throughout the day are consuming this very content so i think the web nailed it this morning that number came out. it was absolutely ludicrous off the charts and people looked at their portfolio and said do i really want to be this long with bulls outnumbering bears 4-1. >> bullishness is the reason why people -- this contrarian indicator, dan, nathan, you're a skeptic. >> i am. i saw josh's post and saw it get whipped an the web so it's more of the same. i don't think the number because it hit this new high is that impactful in and of itself to me i think we sold off because we could. i think that it speaks to the sentiment and speaks to no one thinks there's any downside europe is going down. look at the euro stocks 50, down 5% offer the recent highs, not even 2%. when you think about it here this is going to be a mild pullback if we even get anything
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more -- >> we're not talking about the diplomat of the pullback but the suddenness of it. we just finished recovering from last week. all of a sudden today the proximate cause had to be that because there was nothing else -- >> it's also rates too. rates have held in there enastarted to tick up. that has a lot to do. it was an auction but the ten-year behaved. >> but the risk to the market it gets everything it wants, the economy is everything that we've been pricing in for the last year actually happens so it's -- >> that's what we saw the russell down 1.6 and nasdaq down 1.4%. >> look at how tough it's been for hedge funds. why can't the it be as simple as year end and want to lock in whatever it is that they're -- >> call it even. >> call it even. >> one last point, costco, they missed their november -- the lowest since september 2009 this. is a really interesting economic tidbit. we had disappointing results from joy global so as the macro appears to be better, numbers
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look better and see head wind as baiting in washington, some of the stuff on the micro level is not great right now. >> we mentioned the depths of the sell-off when it comes to the small caps as well as technology. first and forecast, twitter, teflon twitter actually manages to close in the green and this is after a week or a month of outperforming -- strong outperformance in the market. what do you think. >> twitter is the new safe haven trade. sell all your gold and get into twitter. it's a store of value. it could just be as simple as when the market goes down a lot are tweeting and maybe that's good for ads. >> you also have -- >> no correlation i could draw that's any causation. >> you had that utopia where you could start receiving data feeds on your phone that's not a smartphone that is huge for emerging markets, almost a feeder fund for twitter. once you eventually get that smartphone you already know what twitter is about. already customized to you. >> some will say --
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>> i don't like the way you just -- >> okay. some people -- i mean -- >> go back to -- >> steven grasso. >> how much is buying into the print. buying into earnings, people have no idea what them look like and so if you're thinking they'll knock the cover off the ball you want to cover, maybe you want to squeeze a little bit. >> i got to tell you, i'm long in the stock so this will sound counterintuitive. >> no exla nation for a 22% jump over the past month. i mean honestly. >> chase this stock after ten points going into a weakening tape, you're smoking crack. i don't see any justification for this based -- >> facebook, why was there a jump, it was facebook. people are so worried about buying in ipo they -- >> they let it report the quarter before they ran -- >> when you looked at facebook, facebook was evident. it started losing value immediately. that chart was immediately broken. people were worried about buying into twitter and then when it didn't happen and held that $40
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level they said, oh, my god, i better start carrying the stock. maybe it's not giving me that low 30 -- >> this is a different company than facebook when it came public. facebook had that aha moment. almost a year after it went public, okay, so twitter here all of a sudden is a much more immature company. right out of the gate, keep reading this on the internet that -- you guys got me messed up here that they're all of a sudden active use remembers seeing a lot more ads. they want to put up a big print for q4 reported in late january and a lot know, scarcity of value, not a big float. shorts, 22% short interest so maybe people are using it as a trading vehicle and know they can get some bait -- >> up 22%. >> what do you do? >> don't chase a tomorrow. it could go higher but 45 was a consolidation rank. if it gets back to the $45 level that's where you start. 40 is your ultimate support. bounced off that. don't go tomorrow buying twitter hand over fist.
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>> it was apple buying topsy at the beginning of the month and targeted audience later. still a massive run since then. you are own twitter. taken any profit. >> no, i'm an investor in the name. i was actually rooting for it to go the other way. i don't have a full position on and if it ran to 100, frankly, my gain would be a rounding error so i'm not that excited it's take off and between the lockup and first earnings. >> reporter: where they set the tone and hopefully set it conservatively there will be a better opportunity. i don't think it's running right to 100. >> to the other bright side we saw in tech today. this is the call of the day. wells fargo upgrading groupon, senior analyst trisha dill joins us. trisha, great to have you on the program. >> great. >> what's the primary driver behind the upgrade? >> sure, so, you know, we think groupon has only scratched the surface here in the enormous local commerce market and think their market leadership was number two living social is
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widening and bullish on their transition to a marketplace of searchable deals away from their daily deals legacy which is more relying on e-mail although the daily deal is certainly not dead. we found out in our survey work that about 93% of daily deals customers plan to actually continue purchasing deals going forward. >> your survey is probably the underpinning of a lot of this note, trisha. survey of 2400 adults, 75% you found think that groupon is the best plate to purchase a deal, 62% have searched for a deal and this is just random survey or is this of groupon users? >> these are 2400 adults internet users and about 42% of those have actually purchased a daily deal in the past. so of those, 42%, 75% say groupon is the best place to buy a deal. >> trish, i've always worried about barriers to entry. why can't amazon do this? why can't google do this or a host of other people do it?
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for me i think it's always groupon is my last choice and i've avoided it but tell me why i'm wrong about barriers to entry? >> sure, you know, we rory what bigger companies like google, amazon and facebook may do in the space. you know, google and amazon are already in the space, although our survey work tells us that, you know, not very many customers are actually, you know, choosing those companies over groupon so, you know, i think groupon already has a really sizable subscriber base and customer base and really made themselves known for providing great deals. that said, i think that competition is a key risk to this story here but luckily, the addressable market in local is just huge and there's room for more than one winner. >> trisha, we'll leave it there. thanks for your time. trisha dill of wells fargo outperforming them to an upgrade. would you be a buyer of it or too easy to dislocate them.
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>> this is a small market cap. one that should work in the right markets. i do think that the competition of the daily dees will be a real problem and hate the fact they want to go head to head selling direct goods which will be 50% of their sales very soon competing with the likes of costco and amazon, i don't think is this si long-term hold. the stock acts decent, banging around between $11 and $8 over the last couple of months so better get your entry correct. >> you know what else is banging around, the former ceo, andrew mason. this is what he tweeted. did you see this? i know you're active on the twitterfear. >> i don't follow him. just woik from crime. where i was back at groupon and the stock was -- >> he want the glory and the money? not how it works. >> and the stock was down because i had a spaghetti strainer on my head and couldn't get it off." >> andrew, if you're listen, smile. you are a very wealthy.
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back at hq for a news alert. >> just want to draw your attention to imgold ticker. suspending future dividend payments until further notice because of the price of gold right now, of course, if has taken a pretty big hit. the company's ceo saying that he is long-term opt mystic on gold prices but for now this will help them preserve the balance sheet and help them conserve cash and maintain some flexibility watching that stock in the after hours down more than 3%. back to you. >> thanks a lot, jackie deangelis and certainly we'll watch a lot of the other gold stocks because a lot of analysts have said at $1200 we could start seeing dividend suspensions further rollbacks -- >> yeah, if you're a gold bull you actually want to see this happening. you want to see some of the -- >> capacity get taken out. >> absolutely. >> why don't they pay the dividend in gold instead of dollars. they seem to have too much. >> one companies that hair dividend pegged gold.
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>> bear gold. >> or newmont. continue to watch. if you get dizzy looking at economic data trying to figure out what next will bring listen up someone who says today's chart of the day is the best economic forecaster out there. i'll explain why next. we've got ceo of a medical device company using technology in a way that could help more than 25 million people in the stock return so far aren't bad either. almost double. that's coming up on "fast." dreo way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪
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♪ it's been a long time since i rock 'n' rolled ♪ ♪ it's been a long time since i did the stroll ♪ >> time for today's top trades. first up pan door rat you heard led zeppelin playing the zep. shares getting rocked on news that spotify got an exclusive deal with them and free mobile service to android and ios adding to their weakness. what else. >> this was interesting. stock is up 200% year to date and took off after ios 7 came out and iradio did not put a big dent this their users this. has 24 million registered use attorneys pandora's 200 million. you wouldn't think it would make
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such an impact but the quality. people like the spotify product. they don't like iradio. try it out. i don't like it. so, you know, to me the stock got nailed down 7% today. it broke that 50-day moving average at full disclosure i am long. looking for a move back to 5 but probably a good spot to cover shorts. >> home depot holding its conference today. the company saying it expects to meet a profitability goal a year earlier than planned on rising home prices. so the stock had a nice day. >> we liked it on the deskment best way to play home i have promment. home values start to escalate. operating margin also expand to 12% by the year ending january 15th. that says it all. >> we saw an uptick in mortgage applications which have been down for the last couple of months so maybe it's starting to normalize out there and people are starting to come back to the home buyer market. >> and we should note, be sure
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to catch frank blake on "mad money" and little dash of cash is king following $3.5 billion share buyback late yesterday. rbc saying banks are the next to return more cash to shareholders. you agree. which one? >> so it's like jpmorgan and wells fargoen have their buybacks well under way for a couple of years but citi and bank of america have been left behind. had to get approval from regulators and demonstrate strength in their capital ratios, rbc can saying bank of america talking my book long in the stock has aggregate potential of up to $25 billion and that's with keeping a 15%, you know, ratio and i think what you want to focus on here is mott only can the dividend be raised but can start buying back a ton of stock. have not yet done so. a huge catalyst for 2014 and the company could be a lot more profitable thanks to the rising yield spread, as well.
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>> dan, where would you go? >> i like bankamerica too. goldman is one, i got to tell you. anyone will figure out to get around the voelker rule it'll be them going up against 170 and may break out early in january and go straight to 180, 190. >> still in financials but xl capital, those companies that can financially engineer a buyback. high free cash flow, low average cost of debt, issue debt, buyback stock. that's the game that's being played here. xl, pfg, allstate, all those look good. >> facebook is joining the s&p 100 as well as the s&p 500 so facebook, take a look at the shares in the after-hours session popping on this news no surprise up 4.5%. remember a couple weeks ago we thought that it might be facebook and it ended up being a legion i believe so facebook joining, does that change your thesis -- >> no, i mean, listen, you know, it's good for the facebook holders, don't go buying it tomorrow because it's in the s&p
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500. this is a one-time pop. if you're in it, you're happy. if you're not then leave it be. >> but the other thing, who is using facebook these days? older people are using. who is using twitter? >> younger people. >> there you go. >> move on to the next subject. >> the younger, the sweet demographic is using snapchat which by the way is -- >> the kids love instagram. my kids have instagram and love that. they have to figure out how to monetize that. >> facebook, would you be a buyer? >> i'm in twitter and don't feel the need to add both. if i would add a second i would look for a dip in linkedin. it's not that anything is wrong with it but you only have so much room in the portfolio. >> we thought the day they would join the s&p 500 it was also a pop of this -- almost the same magnitude at these levels so i don't know if that means that the market believes that is worth all of the incremental funds buying. >> it happens with every one of these.
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this is the pop. this is going to be it. >> you're not going to see more than this tomorrow. >> all right. let's move on. coming up next, bk. >> that's me. >> bought the bitcoin. you know that. holding teddy. why does he prefer the hot virtual currency over google any day of the week. plus, chasing high flyers, why the facebooks of the world could provide the retail investor of more of a wild goose chase, the president of td ameritrade is here on set to weigh in. stay tuned. ♪ i want to spread a little love this year ♪
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hour. let's bring in mark mahaney who joins on the fast lane who covers facebook. buy rating of $60. >> hey, melissa. >> does this pop we're seeing in the after hours account for all of the index fund, incremental buying that will take place because it's being added to the index. >> hard to do that math right off the top of my head. three catalysts we were waiting for. this was one. we may get the second tomorrow which is this instagram event and third the growing monetization of video advertisement on facebook shares. we like the stock because of these kind of catalysts. here's the addition to the s&p 500. it's a positive one? so based on tomorrow's instagram event you could see another jump in the stock. what would you want to see? >> well, look, instagram is an asset that this company acquired for 1 billion at the time, it looked expensive. in hindsight it doesn't. completely unmonetized but almost 20% the usage of facebook. no particular reason why it
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wouldn't monetize as well as facebook currently. it's going to take time but you're talking about at least a 10% incremental boost to revenue and profits, the question is the timing. two year organization one year. if it is a monetization announcement maybe a year. >> we've got two -- almost two of the three of your catalysts, we're getting fairly close to your pierice target. at 60 is that where we sell it? >> you know, we'll see. one a name like this that's still relatively early stage i think street estimates are still too low on this name and also, similar to the way we think about twitter too. we still have early stage assets. great mobile boosts behind them and social network something proving out with advertisers. i don't think you're looking to pull the trigger right at 60. >> mark, it's dan. you and i talk these names back in the turn of the century when the bubble burst, okay, back then it was all about advertising to banner ads. to me, why did facebook sell off
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when they reported their q3 and sold off because the company said they were going to limit the amount of advertising. they understand the fact why the previous bubble burst is that users got annoyed by all those ads. do you think that they're ever going to be able to find a happy medium between what users are willing to accept on the advertising front and what something that justifies their valuation. >> yeah, dan, you know you're right to point out the risk and, look, this stock did trade off last quarter. we had, you know, as much as a 20% correction from the high in the aftermarket to where it bottomed out. i felt strongly, we have felt strongly that was an inaccurate move and wanted to buy that correction because the two debates about teenage angst or teenage disengagement has been way overstated and plenty of ways this company can hedge against that in part through building out the instagram asset and second had to do with the ads load issue that you just mentioned. if the ads on facebook get more relevant over the next two or three years they'll increase them. if they get more relevant i'd
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make a strong bet they will they'll be able to charge more for those ads so still a double barrel growth opportunity. more ads and higher revenue and they're going to be ultra careful about not overdoing the ad loads. i trust the company is going to be cautious on that so i think -- i don't think that's going to be a fundamental risk. >> mark, thanks for phoning in. >> thanks, melissa. >> price target, 60 bucks a year. let's go back to headquarters and check in with jackie. >> that's exactly right. obviously facebook, the big headline there that you guys just covered but some other companies making the jump, as well. we're got s&p midcap 400 constituents alliance data systems ticker ads and mohawk industries, ticker mhk replacing abercrombie & fitch and jds uniphase. they will move to the s&p midcap 400. back to you. >> all right. thanks, jackie. mohawk industries, which, of course, makes carpet, flooring, et cetera, beating to the
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home -- >> this is one i like in general but look at the other side of this actually because these are more interesting. abercrombie & fitch, a & f is probably going to be down on this news. i'd be a buyer of that just as a trader on this. >> why? >> just as a trade. when you look at it. what happens when they get pulled out of the index they generally overreact to the downside. >> actually some statistic data backing that where they tend to outperform the s&p on average. >> so would you buy teradyne? >> i don't know teradyne well. i don't love capital equipment siegel is not yet come around in chips. i have no idea when that will materialize. not a bad idea to look for names that could be aggressively sold on an index. you'll be surprised. >> the chart of the day. forget the jobs report, forget the taper time line. all in the garbage. this is the only chart you need to see to forecast the economy. take a look at the yield spread between the ten-year yield and two-year yield and this is at a
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two-year high. we'll bring in the man who thinks this is the way to go when it comes to forecasting the economy after this break. stay tuned. my mantra? family first. but with less energy, moodiness, and a low sex drive, i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women especially those who are or who may become pregnant
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our chart of the day. as we told you before the break someone says this chart is the only one you'll need to forecast the economy and this, of course, the yield spread between the ten and two-year, this is at a two-year high. eddie joins us to explain why this chart is so important. eddie, gait to have you on the show. >> great to be here. >> so what does this chart tell us at this point? >> it's looking good for the economy. you know, there are a lot of people on wall street are paid a lot of money to predict the economy. and a lot of them don't have very good track records. one of the best is one of the cheapest. we take the difference between the two and the ten and it's been going up over the last few weeks and it's now at a two-year high. >> eddy, i see in the chart you're sewing we had a false start towards the start of 2010 and know how that worked out for momentum stocks and lickically cals ever since then. anything in your reading of this or elsewhere that could tell you that quote/unquote this time is
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different than that false start in 2010 when we were all faked out? >> absolutely. i think there are two good confirmations. one would be the ism report we got for november which was also a two-year high. exact same time frame as the 210 spread and another one would be if we look terrell tiff strength of the cyclical index, the cyc that is also at a two-year high. it's confirming these trends almost perfectly. >> were you surprised actually that you had these other two indicators confirm this trend given the fed has been essent l essentially manipulating the yield curve for so long. >> the difference is we saw earlier in this year when the 210 spread got wider, a different underlying trends driving it because the middle part of the yield curve was driving up. that was the fear of taper. this time it's very different because the middle part really hasn't moved much at all. in fact, the two-year part is
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lower than where it was around labor day. the real driver of the growing steepness of the spread has been on the ten-year and that's driven -- we're about 260 basis points wide right now. >> all right, eddy, we're going to leave it there. eddy elfenbein, out there for a very long time. long track record. >> if you're not reading eddy, the guy is a legend. very bright. >> today's sell-off might have had people asking is now the time to buy on the dip? with stocks on a tear so far are retail investors on a wild goose chase to catch up? on set with us is one of the kings of the retail investor td ameritrade ceo fred tomczyk. >> these have had monster performances talking about twitter at the beginning of the show, apple had a nice burst towards the year-end. are you seeing it play out in
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the retail investor as they are cycling out of bonds looking for that return? >> generally speaking, yes. i think, you know, our clients have been fully invested through this bull market here so they've done well and low levels of cash. are more active investors, you can see that in our investor movement index which has been -- just published 5.42 which is the second highest reading ever for that index so that says they're being increased and bullish and see it in our flows and buys and sells that basically the retail investor is still skittish and coming in slowly but increasingly they're moving into the equity market. >> the barometer you would look at to believe that the retail investors actually are willing to take on risk. is it still margin, for instance? >> well, i think the investor movement index is the best metric because it tells you not what they say they're going to do, tells what you they're actually doing. we have a large base of retail clients and that's a statistic
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that weights across different asset classes and options and futures. beta weights it so it is a real good measure of measure of bullishness. >> fred, you said something that is really important. not what the investor says they will do but what they actually do being the key. every time we get these surveys that seem to be an extreme reading and tend to back off when the market pulls back, but is that just the survey response meaning are they buying positions and sticking with them even if they're telling a pollster that, oh, wait a minute, i'm a little nervous i lost 1%. >> ours isn't a poll. ours is actually do in their portfolio so based on all of our retail clients that actually execute a trade during a month. >> so do you see them sticking around or do you see them behaving as skittishly as they might say they are. >> we've seen a general uptick here for probably 15, 16 months, maybe the odd pullback but back to our active investors or active traders, they will just
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as you are talking earlier basically on a weakness, they will buy. on a big day they'll sell so they always have -- they're a bit contrarian in daily trading patterns but they're consistent. >> any seasonality? we're going into year end. with the retail investors anything you've seen year after year whether it be a sector, whether it be the retail population that starts to buy in going to year end or do they sell taxable year-end stuff. anything you can see that's tradeable? >> we haven't really seen much right thousand although they're moving the cash into the market a little bit more right now which would expect given the run, the s&p 500 is up 26% year to date after 12% last year. but you know, typically around the end of the year you will see some tax selling. >> fred, i'm curious. what percentage of transactions at this point happen on a mobile device versus pc and what is your profitable on that? we talk about twitter and facebook and mobile monetization so what is it for a firm like
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yours? i imagine more and more people are trading using these things. >> i think between the, you know, the phone and the tablets it's been an increasing perjury of our market. we get like over 2500 people sign up download our mobile apps every day right now and so it's growing quite nicely. it's right now the most recent month about 11%, 12% of our trade volume to give you a number on twitter. the day the ipo for twitter, 30% of our trades on that stock were through mobile devices. >> and is your ad rate the same as on a pc versus on a mobile device? >> oh, yeah, the basically the commission rates are the same. we find that people that use mobile we get about an extra trade per month. they just -- they can trade at any time. >> makes sense. great to see you. thanks for your time, fred tomczyk for td ameritrade. down day for the market. can you pretext yourself from further losses? dan nathan has today's options action. >> interesting segue from retail
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trading to institutional trading. couple options or a few that caught my eye today. you know, specifically with the market down, one of the worst days in a couple weeks there was a buyer of the february spy, that's the etf on the spx, 170, 162 put spread paying 8 acents for that 35,000 times. not a small trade, people, it breaks even down 5.5% on february expiration. the second was in the vix. it's coming off the lows approaching two-month highs. a trader bought 30,000 of the january 1630 call spreads paying a dollar for that. okay, that thing is a very interesting trade to me because the high of the year you can see it on this chart is 22 bucks. we haven't been above that. that breaks even, you know, well above the highs and i guess the last trade was in the xlf, a sector has been very much in favor of the finances looking for a breakout. a buyer of 140,000 of the january 20 puts.
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that buyer was closing a bullish trade so all of these trades when you think about it are speaking to caution in the market on a down day. >> bk, you were in that activity in terms of buying put activity. >> i did buy some puts today. puts on the spy just because it got a little disorderly toss. short-term type of thing. long spy futures. >> more options action every friday 5:30 eastern time check out our website. coming up next, b.k. gives us an update on his bitcoin trade. is he looking to buy more. later on nearly 10% of americans are diagnosed with diabetes and one company has found a way to revolutionize a way people can take control of the disease. we talk to the ceo behind the life-changing device next on "fast." ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪
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to be this awesome. and from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. welcome back. in case you missed some of today's top moments on cnbc, a rapid-fire recap of tonight's executive edge. >> 20 was not needed. didn't do anything at all. so they have to be careful about how they start to withdraw.
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you know, the real issue is not the taper. the real issue is when they start raises interest rates. >> a whole new very substantial regulatory regimen on the backs of the financial institutions of the united states that have to have a bottom line to compete abroad and in the united states so that's worrisome but it's going to be worked through. >> the unemployment rate is still 7%. productivity is keeping up with wage increases so labor costs are essentially flat. you probably won't see inflation until the economy gets closer to full employment or until global economic growth picks up substantially from where we are. >> the things that i've been doing lately is more, you know, more on the back end sort of thing, percentage in ownership in companies and that's amazing for me being a competitor to now owner in companies. >> but it really is a fundamental question about inequality and about mercy and what we owe to the least among us as he would put it and
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ultimately we felt that that conversation is so crucial in so many parts of the world that he -- that pope francis ended up being our pick this year. >> i thought that commentary about inequality was interesting. you know, there's all this discussion about what's really holding back the economy and then we get that flow of funds report from the fed yesterday that just confirms it, 80% of the stock market, 10% of the houses so that's driving things. >> let's get to a tradeup date from our very own b.k. who blouth because you're all "fast money" watchers bought bitcoin last week and this week he's holding steady. >> disclaimer. it's not for client, it's highly speculative. it is a binary trade, either go to zero or multiples of where it is now. i understand that but ernst & young had an interesting report. they talked about bitcoin being a payment system a lot more like paypal and real quick back of
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the envelope. what would it be worth if it took a paypal's market share. market cap 67 billion so you get -- you have 21 million bitcoins that is the max that can be out there. you get a bitcoin value of $1400 roughly which is a 59% increase from today's prices and if you look at something like google, average price target is 1100, that gives you 2%. >> hold on. >> every penny. >> stop people from using it as payment and negate that whole thesis -- if bitcoin prices went up 30% next month why in my right mind if i think it's going to keep doing that would i sell them to -- >> it's not a right mind trade. if you're listening -- it is not. i am completely betting on human psychology. >> this analysis is like all nice on paper. all fun to do but it's really just garbage is what you're saying because you're -- >> no, hobbsly because he's saying it's a momentum trade. just a momentum trade.
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so i don't care. 59% upside. i mean, come on. >> what posts bitcoin on the ncse. >> run by the hot dog stand. >> any greater fools out there give brian a call. he's got something to sell you. >> absolutely. >> there's -- that assumes it takes every penny of paypal's business which is very grand. >> he needs to put it on paper to make it right but did say it's his own money. it's not for investors, that's the big -- >> highly, highly speculative so -- >> good -- >> i couldn't -- >> good for an i.r.a. or -- >> exactly. >> can i bottom line this for you, b.k., this is the money you would take to atlantic city or las vegas. >> burn this your backyard. >> yes. >> absolutely. >> that's what people need to understand. you can wake up tomorrow and it's gone. >> i was just joking the garbage part. >> i know you were serious. it hurt. >> i was kind of serious. >> i know he's going to be a bitcoin millionaire. all right. >> exactly and i'm not sharing
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any with you. >> whatever. coming up next, not holding my breath. the battle against diabetes. we will hear from the ceo of one company that's going the extra mile by using sensors instead of the whole finger prick method. ♪
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it's where technology and health care collide. dexcom and wirelessly monitor blood sugar levels. joining us, terry greg, the ceo of dexcom. >> thanks for having me. >> most people out there know somebody who has diabetes. they may have diabetes. tell us how this works. >> well, it's very simple. this is a handheld receiver that actually receives the information from a body worn sensor. we actually transmit on a five-minute basis so roughly 300 measurements every 24 hours and along with that comes a set of alerts and alarms, notifications that a patient will be notified well before they run into a particular trouble zone either elevated glucose or more importantly very low levels of glue coast which can have
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cognitive impairment, coma, unconsciousness. >> i would think one huge advantage of this it's continuous so therefore you have all the data points and can track what your glucose levels are doing in response to various meals throughout the day as opposed to just a finger prick at one point in time. >> that's a challenge. a fingerprick is only a stack measu measurement. you don't know what you were an hour ago, 250 or 125 and so with continuous glucose monitoring you get that ability to see realtime. it's like liking at two or three frames avenue movie and trying to determine the plot. you can't. with this you see the whole movie. >> you're holding up the g4 platinum -- >> october of last year. >> and a lot of analysts saying that is driving the results. what's the next catalyst? is it pediatric labeling so that kids can also use this? >> we're on the cusp of that, yes. we're currently with pma pedestrianing before the agency.
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hopeful within the next several weeks it will receive that approval. right on the heels of that is a new product called share in which we put this into a cradle. that cradle communicates with a smartphone and then reports to the cloud and a controlled server what is important there is that allows a push notification to go to five followers. >> so a doctor, for instance. >> or even more importantly. >> a caregiver. >> if you had a child that was at a friend's party so they can actually now do a sleepover you can monitor them remotely or at class. >> right. >> if you have a loved one who is traveling and you want to be able to -- >> help them protect themselves from hypo gglycemia you can mo monitor them as well. >> up 140% so far this year alone. in the past month around 231,000 shares have been sold by insiders including yourself, the cfo, cto, senior vice presidents, et cetera. you yourself reduced your stake
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by 64,000 shares between november 13th and december 5th. a period in which the stock actually hit a new high. can you address this -- why reduce your stake by 6.2% if you so strongly believe in the company. >> first, let's set the basis. i own 2.7 million shares so 64,000 on 2.7 is de minimis and i have advised as the stock has gone up and you look at all our executives they're getting too heavily weighted for a stock of that nature so the bulk of their net worth is in a single stock. >> i would question your judgment if you didn't take some off the table. i mean you've got your whole life tied up in it. it's a smart decision from a life planning standpoint. i'm with you on that. don't sell any more, though. >> and in terms of what's inside one of those things, is it a qualcomm chip? what's -- >> not yet. obviously we're partners with qualcomm, qualcomm life and future generation as we look at
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open connectivity involves that partnership with qualcomm and including all of the chip sets that they as well as bluetooth. >> terry, thanks for stopping by. fascinating stuff. ter terry gregg. first move coming right back. stay tuned. there's a saying around here, you stand behind what you say. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. anncr vo: introducing the schwab accountability guarantee.
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final check here on facebook. it is up by 3.7% being added to the s&p 500 in the after-hours session replacing teradyne. time for the final trade. let's go around the horn. dan? >> walmart playing for a move, 76. >> josh brown. >> i like gm anywhere near the vicinity of 40 i'd be a buyer. >> brian. >> i'm short gold and i think that you could sell some more here. dollar started to get stronger today. i like the short gold trade here. >> steve. >> i own twitter but only 50% of what i want to own so josh and i are basically in the same camp. didn't get to buy it on a dip but i do believe it is going to rally probably another 10% going into earnings. i'm not sure what it does on the print though. >> are you in the same camp, steve and how does that feel. >> i want the stock -- i want it to go down and it feels great. >> really. >> really. >> t-shirts made up. >> it's -- >> two pros. >> besties.
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hoodies. >> i'm melissa lee. see you back here tomorrow. meantime, "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. what? the market can go down, too? i mean, the market can get really hammered? with the dow dropping 130 points, s&p 500 declining


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