tv Fast Money CNBC February 14, 2017 5:00pm-6:01pm EST
subjects. he was asked about trump-onomics. tim cook when i last spoke to him, all for cash repatriation. >> thank you. josh will thlipton. that does it for "closing bell" today. "fast money" begins right now. >> "fast money" started right now. new york city's times square. tonight on "fast," one group of stocks are signalling there could be trouble ahead for trump's tax plan. plus, warren buffett just added a boat load the his portfolio. but there was another group of stocks as well. we will have those names. plus, shares of proctor and gamble surging. what does had pelts have
planned? first we start with the grand slam for the markets for a second day in a row. all four hitting record highs. the move started with these comments from fed chair janet yellen. >> at our upcoming meetings, the committee will evaluate whether employment and inflation continuing to evolve in line with these expectations. in which case, a further adjustment of the federal funds rate would likely be the appropriate. >> the committee's view that gradual increases in the federal funds rate will likely be appropriate. >> a hawkish tone from the feds on rate likes the year sent the financial stocks soaring, leading at more than 1%. is this hot trade about to get even hotter? is it time to jump back on the bank bandwagon? >> wshlell, i'm long on banks.
stay on them if you are. at this point you're going to have a point where you'll the want to take some profits so be nimble with the trade if you just started. the federal reserve is clearly trying to tell you that they may want to raise rates sooner and faster than in the past. it moved the bond market today. isn't that a fine ♪ ♪ if they have to have might faster than we think, that could detrail financial recovery. >> she didn't take march off the table or put it on the table. xlf is up 3%. i would call this the dan tarullo trade. this is where we can get into this whole argument. is trump really doing anything or not? i think you're at a place with the banks. on some level it doesn't matter. i think the bull's-eye has been taken off the bank. the higher banks, bank of
america ask citibank have the most operating leverage in this environment. >> dan, dan, dan, what do you say? >> bank and citi, those are the two i wouldn't go after. jpmorgan is breaking away. just stick with that. just think about what the year could bring with tax reform. go with morgan stanley or something. goldman sachs is making a new all time high. that's the one i would go to. it seals like citi and bank. >> you're not will having to me. the environment will is the environment where they'll perform. >> they the haven't performed a relative basis at the bottom. why would you expect that? >> people have not believed in this rally. >> actually, the deregulation happened. who has the biggest bull's-eye on their back in terms
regulation? they're going after bank of america. wells fargo has its own little problem. >> they almost brought down the financial system as we know it seven years ago. >> they're not going to buy financial regulation, should financial deregulation boost them the most? >> if you want to look at another one. look at wells fargo. they got themselves in trouble in the last couple years in a perld of unprecedented regulation. massive banks, we can't figure out how they length, what they do. >> how about the smaller banks? the kre had the biggest gain and janet yellen specifically talked about dodd frank and helping regional banks. >> it's not a smaller bank but u.s. bank tens to make all time highs. can i go back to these banks quickly? i'm with timmy and bk on this one. i hate to not side with my
friend. he took san francisco on the red eye to be with us here. this stock can trade. in the heyday, they traded the close to three times tangible book. i don't think we're going back there but i think it is a real good chance we get to 1.8 times. what does that mean? tangible book bank of america, $16.95. to tim's point. 1.$1.8 times. it is a 30 stock. jpmorgan is right around 1.8. & the highest quality. goldman sachs is the other one and we're right at that level. october 31 high, we said we would trade to there and we did. we came right back to bk's point. 172.60 gets to you a $3.10
stock. >> if one starts to wonder about trump's ability to act at this point, should we be xernld part of trade falls off. that these banks fall down. >> certainly. you had a tremendous run here. we price in the almost every regulation coming off. that there would be thought trading. >> they're going -- >> why? >> i said at the beginning. at some opponent in the relatively near future, you are going to want to take your profits and be nimble. we are pricing in an awful lot of good news. >> you've taken away the folks with the biggest bank within the government and the fed. people that have been going after banks for eight years. if you think about removal of that, that's a positive. the trends in loan growth. they picked up before the election. so they had some tail winds.
you don't to have remove deregulation. i think this is where dan was going. i don't want them to be cut loose. i think there's some regulation. very, very important. we've been left with banks with amazing balance sheets that need to use this. the loan growth will be important and profitable. >> that's the question, the loan growth. you're starting to see a loan demand. if consumers are attempted out, we know the credit is very high. there are some things out there. some potholes to watch out for. >> let's move to another hot stock. warren buffett making a big bet on the tech giant. >> thanks. we've been parsing through latest quarterly numbers on berkshire hathaway's holdings and we have two words to focus on. apple and airlines. are more than tripling its position in apple, now holding
57 million slayerhares. that's today. but in today's prices it would be north almost $8 million. in some cases more than triple down. berkshire buying 24 million shares. 24 million more this united and 54 million had in delta. we knew last quarter they had invest in the southwest but we didn't know how much. today we learned that berkshire holds 43 million shares in southwest. we are digging through more of these holdings and others and will come back swoon more details. >> thank you very much. leslie is pouring through the filings here. what does that tell you? in the laugh quarter, apple's range. any place you pick it, it is a profit. what do you do? >> i don't think you initiate a new position. i think this story will be for the whole year. it is ball the iphone 8 coming in september.
so you'll get a chamnce. don't buy just because you heard buffett bought it. >> especially with you're listening to a guy like warren buffett has done. he's long term picture. he's not a trader, he's an investor. apple has had big move. i'm not sure he is expecting that move in the quarter. with airlines, i think he was making a call that these are companies much better run at the start of the quarter. they were trading in quarters and are less profitable. >> now would you rather. >> i leak this game so much. i have to close my eyes. >> goldman sachs or apple? >> goldman sachs. and i'll tell why you. for the reasons i outlined in terms of where they trade the tangible book. i think the first time will for apple against that may 2015 high, i think that's when they
traded, will fail. i have to say true to what i said last night. the discipline this apple suggests take some money off the table of i think will apple pulls back before goldman does. >> can i play devil's advocate? >> why not? that's what this show is. >> we're back there the highs in april 2015. and the stock has risen will 50%. it is interesting to go back ask look. in 2012 in september, it went down 45% over the next year or so. that's when had karl icon started calling the shock. it rose 140% until it topped out in april. so 2012, it topped out. 2013 it bottomed. up for two years straight. that's a pretty dramatic rise. i guess the point that i'm trying to play devil's advocate with myself. we're back to those all time highs. and it looks like an easy one to take profits.
but at the ends of the day, the last time it went through prior highs, it continued to go and go. >> what are you saying? >> you can spend an eternity trying to talk about positioning. it is probably too high and positioning is probably too long. i think it is fair to take some profits off the table. this is a company that he have one is counting on. they weren't counting on the iphone 7. >> and it is a little early. that's the only thing with timing and. we're back at this max euphoria. the stock is back for the all time high. if we have to hear about the next thing for the i-phone 8 or 10 for the next six months, it will be a long six months. >> when you said eat ternlt, i thought of the great hall and oates song. she's gone. >> give dana a hug please.
>> no. >> can i say -- >> very nice. >> special. >> would you rather gs or apple? >> neither. >> you read my valentines. thank you. a big story in the post. shares of proctor and gamble surging after news broke that nelson peltz has taken a significant stake in the consumer giant. what does peltz have planned? plus, stocks have soared. are und tuf bu iwrk ireinio comp,
had you will see a small position about, 6.4 million shares if i'm reading it on my phone. that position has gotten a lot larger. roughly $3.5 billion worth of stock at this point. so far larger than the 13 f would show which only recorded the share earnings at the end of the year. it is a big position. the largest one i can remember that they have ever had. the question is what are they going to do? sources indicate there has been no conversation as yet between tryian and gt probtprokt octor they might be working on a new position. when i interviewed nelson peltz and he dropped this hint. we have a new position. we've started buying about two
weeks ago. we of course can't announce it now. we've got quite a bit of stock and quite a bit to buy. and i hope that we will be able to talk in confidence with management and the board. >> and of course, they've been buying it ever since. i'm told they may have moved up from where they wanted to buy it so on they're not as active in the market as it might have been. now we get to our 13 f that clearly shows this is the new name in their portfolio. and we know basically some reporting that it is far larger, have been, now. the question is when they do to go p & g, if you follow trian, they have a long treat it is they would like the see the company do. whether there will be some division among their view over the company. it is a relatively new if ceo
who took over not that long ago. the nominating window is a ways away. it doesn't close until the middle of june, opens in the middle of may. there's time to figure out where it stands. the activism, he'd been in the stock a number of years back. thinking long and hard now. it moves to a certain stwenlt the gdp. probably not that much down side. the question will be, what's the plan here? the company having reported 2% organic sales growth for the last quarter and has been under pressure to cut costs. ? has been doing that to a certain extent. cost was a big issue. had when they went after dupond,
a nasty fight. cost was a key issue. mainly taking it out of the business. potentially the activism world. >> as you point out, the sales have been slowing. the stock pricing has been pretty good since about 2015 and it is interesting to hear that they've been building up the stake and possibly the funds in order to build up the stake over many, many many months. this has been in the works for quite some time. >> as you've heard, that was december 5. over two months ago. and starting to build the position prior to that. that's typically how it works. they build a position over a long period of time. and then trian often owns the position for a long period of time. one of the things they like the say, they're in and out of the stock quickly.
they've tried on redefine themselves. not as an activist but an investor that management teams want to bring in. it will confer the strategy and bring in other investors who want to zpol believe that trian has a good play book. so we'll see. nothing says that it will necessarily go down a hostile path. >> joining us from 30 rock this afternoon. is there a reason in your view to be in this stock right now? >> i look at the p & e right now. there's nothing there. you talk about 66 to 90. i think the creation of value is something that is relatively undisputed at other stocks. i would rather own kimberly clark. i look at the core brands. three out of the five segments. they're actually losing share.
nothing going on here. i don't need own it. >> i wouldn't buy it here. you know that peltz said at these levels, these are the levels he didn't want to buy it at. so probably in the mid 80s, where he probably bought it in the last couple months. that's where i might take another stab at it. >> i would say, you talk about north america. they have declined year over year the last few years. so it is cost. i think if you're a shareholder, there's no reason to sell it. i would add one more point. it could be really interesting. one of the competitors. >> that was breaking the business up. >> there are opportunities to
reconsider the way that you're selling. what you're selling to different outlets. different channels. clearly thinking of doing that with the acquisition. i think we're entering into a brand new world when it comes to selling with the likes of amazon and big box retailers and the retreat. so who knows? one other point about valuation. the s&p 500 is trading 21 times. there's a dividend yield. >> except no eps growth. it was this time of year, 2015, doing the show. nelson peltz discloses the stock position in dupont. the stock was trading around $80 i encourage you to had see what did it in the next few months. it fwrenwent from $80 to $50. his timing was an abomination.
and this looks hauntingly foom me. this is an expensive stock, proctor and gamble. i think you use this as an opportunity to take money off the table. >> we have another news alert. this time on merck. >> more bad news in the alzheimer's case coming from merck. they're stopping a late stage study in mild to moderate alzheimer's patients because they didn't see any effect. satisfying a committee looked at the trial and found virtual floy chance of finding a positive clinical look at the drug. they looked at safety and it looked okay to have another trial. so they are still testing this drug in the early stage patients. that's expected this about two years but this sent merck down about a percent. we saw a big disappointment at the end of the last year.
this will perhaps cause more doubts for the plaque in the brain. >> and aseide from the alzheimer's drug, he is expected to be blockbustered all the way through. >> things going well for merck and the drug cancer space. testing a number of combinations to see how they can optimize it. things going well there. on the alzheimer's space, they are continuing their commitment. >> all right. thank you. with the news on merck which is down a percent in the afterhour session cox this be an opportunity? >> for merck, probably not. >> if you think about what's going on, it was probably a yearer on so ago when biotech was hitting its high. maybe longer than that. when everything started going wrong. every day you hear about it. what do i do?
of. >> i have to look at m & a and that's where nasdaq sgooms play. throws the smaller company. wasn't it just yesterday that you did an options action from gilead from san francisco? >> yeah. obviously they've had their share of problems. had had sales are expected to climb 10%. after we talked about it, there needs to be m & a. really interesting though. you had gilead just last week after 52-week lows. merck was just trading at a 52-week high. with the stock like merck, when you have the wind at your back, this doesn't seem to be a head wind. this is what you want to buy on weakness. there is growth there. >> the numbers are good. there's a lot of upside. i would own it. >> still ahead, the stock up
more than 200%. we have the details. you're watching cnbc first in business worldwide. in the mahinmi, here's what else is coming up on "fast." ♪ heaven >> that's how they feel of but he have one smising a key point and it could have a big impact. he'll be here to explain. plus, facebook is making its biggest move yet. augh well iavof f oi'i' gotleof. 's? , augh
won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. and if you have more than one liberty mutual policy, you qualify for a multi-policy discount, saving you money on your car and home coverage. call for a free quote today. liberty stands with you™. liberty mutual insurance.
ma'amics. janet yellen hinted at rate likes. mald moinl jim cramer sit do you know with john ledger today. and cramer will join with us a sneak peek. facebook is coming to your tv. the company announcing that it is releasing an apple for apple tv. and that's just one of the new innovations come. first, we turn to trump and mr. flynn. key orders of the tax plan is drawing scrutiny. >> while the forced resignation of michael flynn captures the headlines, another step tomorrow
in the development of the trump administration's economic plan. big retailers like target, best buy, jcpenney are all coming to washington a strong message for the president. while they want a tax adjustment, the border tax would hurt them and their consumers. and here's where it creates problem for the white house. they said the border adjustment stax necessary to lower rates for under corporate tax reform. senate republicans, some of them, agree with the retailers and it will take strong push for the president to make this happen. the border adjustment tax is in difficulty. turmoil in the white house makes it all that much harder for the nigs decide on a clear direction one way or the other which will kick off the legislative process. all right. thank you very much. john. so tomorrow, with the news,
we'll see him exit the white house. what will be strg if president trump says anything definitive on where he stands on a border adjustment tax which we don't know yet. >> this will come out wrong. we don't know because i'm not sure he knows. there's probably a lot of truth to that. it doesn't help you trade stocks. do you know what helps you? if the retailers all got beat up on the back of this. a name like nordstrom's. for all the reasons we talked about. to me i think it will continue to rally in earnings only because of the large short interests and only because the stock bottomed out on the back of those headlines. i think this is an opportunity to be low on retailers. >> i think it comes at the heart of what we're talking about.
i think some of the strength that we're talking about, it is be just the border adjustment. what if there's a total repeal of the aca. health care, and tens of millions of people lose sxhark they end up losing a lot more. a lot of things to have come together to justify it. by the first month, and this is a-political. it is not giving us a lot of confidence. >> zack will come on and talk about what has gotten done and what hasn't. you can't tell me a change if an administration, a fundamentally diametrically different view on how to approach business and the economy isn't good just in and of itself. ten-year highs. you can't tell me even with or
without change that things have not changed. >> the s&p 500 is up almost 5%. people are feeling a lot better about this. >> these guys are going to spend money if they have confidence. of he's been zpauk there's been nothing done. we've got more on the border tax. news loert apple of the cfo making comments moments ago. let's get on josh. >> on a day where apple stock keeps making records, the cfo was here. he field told questions about a range of issues. he talked trump no, ma'er trump. no surprise there. saying that would give his company greater, in his words, flexibility when it comes to capital return. he also made his opposition very well known.
>> it is very hard to be mad. because it is a tax, burdening the consumer, and because the idea that the dollar very significantly. it is already too strong. of course, the stocks are moving higher here as they place bets ahead of the new iphone in the fall. saying in his opinion, there is plenty of invacation left in the iphone franchise when it comes to displays, sensors. he also reiterated the goal of double ting the services busine. he said it could suggest that plam introduce new service offerings or make a very sizable acquisition. >> all right. thank you very much.
a border adjustment tax could be a bigger problem if it kills corporate tax reform because it is an all or nothing had prom significance. >> and so these the risks with a market that is absolutely screamed since the election. it is priced in everything. working out perfectly. what i thought was interesting, temd doll he said the dollar is already too strong. mabel they're seeing some issues there with a strong dollar. >> people can't make up their mind. the dollar is up will nine of ten days. it has been very, very sick. if you look at i, it has been flat. >> not for a company like apple. they've had to raise home run the prices because of dollar strength.
>> it has had a rally. >> really? >> okay. over the last 20 months. whatever. but the problem is the dollar has had a massive run. so apple, where are they getting their growth from going forward? overseas. i think we've already discounted china growth. you've been on the show correctly pointing out, and china is falling flat on their face and apple has fallen a new notches. >> in homes of the tax and regulatory reform. our next guest says he is missing a key point. >> i'm disappointed we didn't get welcome back cotter music. >> there's still time. what are virlinvestors missing?
i think between sentiment and action, or words and action. so i had the pleasure of reading every single one of the 45 executive memorandum and executive orders and it, except for one or two others, clearly investors have been putting a lot of stock, pun intended in these oods words becoming action. and there is a lot of noise but there's very little this white house has actually done. they've been in office 29 days or so? 30 days. >> if you look at the markets, the way people are trading. and you look at the commentary. >> their own commentary. >> supporters say, look at everything he is doing. detractors say oh, my god. look at everything he is doing. it is very little. it is a lot of recall in
statements of intent. it is not like the fundamentals have any of it have changed, nor do we know that it will. >> did we ever expect had something in the first 30 days in office had, would get done? don't these executive orders set the tone of the agenda? >> but others were much more like the travel ban. it was the middle of a crisis. but 2009, obama comes in by february, 787 billion stimulus bill. very different time. it's not true that things don't happen. there is a real split between the message. >> so are the markets a sell? >> we'll never know. we don't get to replay the tape of history. markets could have done just as market if clinton had won. there's been growth on companies
which are not trump companies. >> i'm qufl the markets for the markets. i don't think thanks trump trade as much as we're labeling it as such. >> so there is nothing priced to the markets because of what trump has done. you're saying if someone says, corporate tax reform is dead. d.o.a. never going to happen. >> i think industrials clearly did well. i've heard very bill will an actual plan. those stocks have not sold off. there's a global element there. health care, who knows? no one knows. there's no rumors of a restructure of obamacare gets to you was drug pricing going to be? how is that going to help? so they could this based on he have day's uncertainty.
so it is not like there are a few sectors pricing this in. i'm not clear on where those sectors are other than some of the industrials. >> real quick. for years we talked about the industrial reserve. this scenario, fed raises rates in march. the stock market sells off. could you will envision, because i can. a tweet from president trump. looking at the corrupt xed. raising rates under my watch which leads to a number of different things happening which potentially on the animus had could derail the markets. >> a much bigger stock market risk. had i think it is a much greater risk within the bond market. >> thank you. still ahead, look out below. this one trader is betting big bet the stocks could take a plunge. plus, mad"mad money" coming up.
i think they need more. in terms of what's going on with spectrum. john ledger is having too good of a time and i think the german who's own the stake, i think they love the guy. there's no reason for them to sell. if anything they're a buyer. >> let's turn to tonight's show. what is it had to you in. >> take a listen to what al kelly said. >> we want to have ourselves
integrated into every form factor and every device that ultimately is the internet of things take over. we want to be the payment solution. >> dominant. a dominant company that we don't talk enough about here. >> we will catch that whole thing. looking forward to it. thank you. >> thank you for having me. >> one and only jim cramer. you can catch the full interview. the visa ceo. "mad money." >> as he great promoter. it hasn't stopped it from going up. out of the interview there, jim cramer says we don't talk enough about it. he's probably right. but we do talk about visa for the last half dozen or so years and people will say 23 times
forward earnings, too expensive. i would say visa, mastercard, transaction oriented. if visa wants to be in the forefront. i look at pay pal. maybe they even pick them up. pay pal is at the forefront. they have venmo going on. >> you've been to pay pal before. >> i have. and i agree. i think it is something that google needs. they need on merge with it their ability and i have to give jim some credit. the guy is a monster. you see the ceos parading in and out of there to speak to him. it was pretty impressive. so shout out to jim. >> in terms of the news yesterday about verizon, it may be yesterday's newses but we talk about these companies going vertical and integrated. i think verizon will pay one price. it's not something that he should put into the valuation
we'rst going ton w gono inmorvte vte!? alad o ouadmigh.. c! ve tsw m me chine stov yrent..a c. th cnge, the le oe'te yyle alwi la din iorti. wh iofs,ishehaers? th cnge, the le oe'te yyle alwi la thstes din iorti. ur fute.,ishehaers? ho shie, the le oe'te yyle alwi la thstyon' irvises gos anfoune an dnsigern perso ha
we've got a news alert on what big investors are buying. >> thank you. david tepper makesome bigs bets on pharmaceuticals. buying 5 million shares on teva and more on pfizer. it is also clear, hedge funds like banks. big banks and if we can be more specific, they like bank of america. we saw more capital tiger management and third point all adding more than a million shares each in b of a. we saw some funds taking stakes in other banks such as citigroup and jpmorgan. they are first since the election and it is clear that investors believe bank there's benefit from both higher races and looser regulation. tech was an interesting play this quarter. we mentioned earlier, berkshire hathaway tripled its position in
apple but other funds were less specific. tepper cut his in half. we saw a lot of sales in amazon, facebook and microsoft. back to you. >> we want to talk about had karl icon. he is down 12% versus the prior position of 104%. would you agree with that by staying long, you are an active decision to be in the stock. the news is that they're indonesian. the second largest mine in the world. their mine is undergoing a strike. they are not collecting revenues every day this happens and
there's a lot of expectation this could go on for some time. they've sold off some assets. the copy is less profitable by nature than they used to be. >> tepper is selling part of his stake xheenls he is holding on to the other part. >> he solder half of it last quarter. these guys who take the long term positions. david tepper, that's what he does. i would put more weight in that than i did, than i would if buffett bought it. >>er the stock has been on a tear but the options traders are betting the run is done. >> sure thing.
possibly because icahn sold his stock. we did see 2.5 times. over 32,000 trade. opening buyers, 15 cents. that's betting that it could be below 13.85 by the expiration. >> weren't we bullish on this on friday? on apgss actioptions action? >> yes, we were. given karl could be selling his had stake. >> all right. thanks. check out the full show fridays at 5:30 eastern time. still ahead, in honor of valentine's day. didn't forget. the traders give you the four stocks they love. hegau dog? connecting bra wn arg
>> it is a stock that the market is falling in love with. tesla. happy 75th birthday to my dad today. >> apple. you love it so i love it. >> nothing says panera my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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. on the west coast, that is. we're highlighting iconic american companies defining the future. other people want to make friends, i'm trying to make you money. my job to entertain and educate. call me