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tv   Fast Money  CNBC  January 24, 2020 5:00pm-5:31pm EST

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>> better the rest of the world. >> s&p up 2% year to date and the year is only a few weeks old. i think the market is on alert to see ifs in a shakeout but well within the range of a normal back slide. >> out of time here that does it for "closing bell" today. >> "fast money" begins right now. live from the nasdaq market site over looking new york city's times square this is "fast money" i'm courtney reagan for melissa lee. traders are tim seymour carolyn finerman steven grasso and guy adami. tonight on fast investors on edge as the deadly coronavirus spreads. a second case confirmed in the u.s. how wall street reacts to the outbreak also ahead we're gearing up for the busiest week of the earnings season we break down key names need to be on your radar later our chart of the week. why in mystery name stood out to one of our traders we begin with a big move higher for boeing the stock erasing near all of the early losses as the fa
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a tells airlines the grounded 737 max plane could get recertified by mid-year. moments ago though, boeing delaying the test flight of the newest plane the triple 7 x fill lebeau who never sleeps it covering it from washington hi, phil. >> hi, kourtney the 777 x test flight the first flight of the 777 x didn't happen because too windy. they didn't have the optimal conditions they are trying tomorrow again lets talk about the 737 max story. as you mentioned the big reversal in shares for boeing happened midday after word got out that the head of the faa steve dixon got on the phone with the executives for three airlines with the 737 max and said look there is good progress made by boeing when it comes to taking care of all the issues that need to be taken care of in order to recertificate the max he also said there is the potential that this plane could be ungrounded by the middle of the year process if not sooner
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provided there are no surprising coming up. nothing that further delays the progress that he is seeing made. this is important for in reason. and this is why you see the stock moving higher. steve dixon has been reserved, cautious, somebody who has been very careful not to say anything that might be misinterpreted as too optimistic and that is the reason why when you look at shares of boeing investors believe perhaps, perhaps there is a little bit of light at the end of the tumble when -- tunnel 737 max it has the recertification flight, a number of other key moments that need to happen. but this is the first time that we heard from the head of the faa in a positive manner, speaks to the change at the top of boeing and in the relationship between boeing and the faa and we certainly have noticed that the last couple weeks.
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>> phil, of course that's the big headline everyone watching what happens with the 737 max. what about the dream liner though and the changes that mae be made with production there? >> right right. well earlier today there was a report that boeing might be considering a reduction, a further reduction in 787 dream liner production we talked with our sources they say yes, boeing is considering this right now they built fourteen 787s per month down to 12, a announced change in the third quarter that they are making the change now considering a further reduction. boeing we asked if they have a comment. they are saying look, the standard comment is if we have to adjust production in the future due to market conditions we will. no confirmation from the company at this point. having said that, courtney, if they go down to 11 or 10 per month, well no company likes to cut production that's not a huge drop that's not something the market
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looks at and say that's not good news here. far different situation than with the 737 max but, again, that's something that boeing is considering and that's because you look at the wide body market and how the softness might be developing a bit as you look out a few years, not a huge dropoff n they are adjusting production accordingly and could easily bring it back up if they do a further rate reduction. >> thank you very much, phil a lot to get your hands around all right, guy we saw the big reversal midday. phil says because it's steven dixon but he came out sand look maybe we recertify this year. >> there is potential the giants draft me in april. >> i like those chances better. >> i do as well. >> you have good hands. >> you know, i did at one point. i'm trying to get back. >> and we are done. >> we are done listen i don't think that's the only catalyst for boeing
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they report wednesday. plus brian sufficiently mentions a lot. just because they are back in the air doesn't mean people will be encouraged to get on them that's a big problem i think in the printing and summer. although they had a decent day on the lousy tape i mean not ready to say all clear. >> when you heard trump talk about gdp and in davos and maybe a phone call to the faa. >> conspiracy around the white house? come on. >> i just think it's a little too early to jump back into boeing right now 302 is the level to watch on the downside that's what it held recently. >> because it was 320 wasn't it and then below that now at 323. >> 294 was the level you had a hold stopped short at 30 recently this week. that's the new level to watch in case you get in little bounce, starts to be a little longer lived on monday, tuesday, wednesday. watch that level it's no longer the 294 because we break the 302, 294 doesn't
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have the same relevance it did before in. >> i think the -- and the technical haves important in the stock as we talked about if actually outperforming during periods. hard to explain why the stock was holding a range. the things bring going through the bom bottom end of the range and steve outlined well all the news has been about sentiment, nothing specific related to the balance sheet. basically the company getting out themselves seeing things, seeming exceedingly pen tent getting the the positive response from the faa. united talking about damage control for themselves was a driver down for the stock. not flying through the summer. of course they tell you that everyone is doing damage control. to me the headlines are as they should be which is the faa -- we didn't expect this but the faa can't look prenl disagainst them either david calhoun, larry kellner have done everything right since being put in the roles while the numbers around boeings
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earnings aren't going to be great and we know they are borrowing more money this is boeing at a time when interest rates are zero the wide body deliveries q4 were better than expected one more 737 two more 767 this is a mix margin positive for the company. >> what do you think of this karen, calhoun was talking with journalists assauge fears where he could, give all the information he could now maybe positive movement from the faa. that seems positive. >> it definitely is positive the best thing that could happen for boeing is certainty. it doesn't matter when if they had a date certain, i think that would be the ultimate this is a big turn around, $14 from the low to high that's a big move. >> huge. >> you can see why people are optimistic about the faa used to be boeing would be in charge of the commentary and then clearly that didn't work out well at all. so i think they should -- as tim
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said, they were doing a better job. >> charm offensive. >> and why not just leave it. >> why put themselves in a box in any way. >> now you set it up for as quick as the stock went up for there to be pressure on it if -- whatever reason, the faa steps back off that statement or if it takes a bit longer along the process. i didn't think there was a reason. >> maybe the faa doesn't care about the stock. all they care about. >> looking at mid-year, why say there is a possibility it could be earlier than mid-year zbra because they think it is i don't know. >> but the faa is talking to airlines, leaders in the industry trying to give guidance where they are at. >> what i'm saying didn't they know they were speaking to them last week. what was the upside a week. >> a lot of the ceos this week were frustrated with what was happening at least in the sbrfs phil was doing at least on the earnings calls
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maybe they needed the certaintity. >> i agree with all that although southwest ceo was on the network yesterday. and he said david calhoun is the right man for the job. they said we're going to entertain competitive offers and obviously you have to do what's best for the shareholders and customers. but i think the airlines don't have a lot of choice but i think boeing has done everything they can do since the crisis turned into a change of c suite, not necessarily from the outset of the crisis to begin to recertifies the sentiment against them. >> we're leaving this here and turn now to the latest developments on the deadly coronavirus. 39 cases confirmed worldwide including two here in the u.s. 26 deaths are being blamed on the outbreak companies across the globe are scrambling to contain the fallout from the virus lets get to meg tyrrell, back at headquarters with more on what we know at this hour meg this kins to change. what's the latest? >> rapidly courtney. the virus continues across the globe with the first two cases
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in europe confirmed this afternoon. and france and the second case in the united states also confirmed by the cdc today. a chicago resident who had traveled back from wuhan china last week. overall the cdc 63 potential cases have been vekted in 22 states with 11 found negative for the two confirmed cases. public health official ohs are tracking close contacts and monitoring for symptoms. they say they expect potentially more cases in the united states. but say right now they believe the immediate risk to the general public here is low while noting the situation is evolving quickly. and we see that in the numbers from china with totals there in a nearby countries topping 900, up from 650 yesterday. there have been 26 confirmed deaths china also expanded travel restrictions now to 16 cities, overall covering 46 million people that's more than live in the entire state of california now pharmaceutical companies confirmed they are working quickly on potential treatments
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and vaccines for the novel virus though it can take time. gilead and jenner on and another are looking at drugs ma derna therapeutics says it's working with the nih to develop a vaccine. but these are months or years in the making. >> where is the w.h.o. in how they classify what's going on with the spread of the virus. >> right now they have not declared this a global public health emergency however they have received some criticism from that from many corners of the world and said they are going to meet again within ten days. and so we could see them reverse that decision and make that declaration. >> meg, thank you very much. >> thanks. check out the reaction today on wall street stocks falling as we got the new numbers on the deadly outbreak how much of in is weighing on investor sentiment tim it feels like more of a sentiment situation. looking back to some of the comparisons, say with the sars, that happened in 2003 after we were coming out of a bear market
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so things probably a bit more fragile than now but still it seems to be weighing on the market. >> look no further than the bond market really which is giving clues. yield curve flattening, the treasury trade down to 1.66 today. all that flos from that. and financials under pressure. but anything related to a reflationary industrial environments transports are getting hit hard the last couple days leaving aside idiosyncratic direct exposure in travel you have anything that resembles -- all we do is talk about sentiment. this type of a pullback. >> it looked like the market was looking for a reason to pull back this morning. i thought about liquid eighting things as well if you look at the mortality rate on in is 3% sars was 15% i don't think this is a huge -- i don't want to belittle the deaths.
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>> of course. >> but i don't think this is a are reason to sell the mechanic. i think it's looking for a reason to be sold. >> what about the stocks, karen when you look at casino names selling off, entertainment names. we know in china they are quarantining 46 million people closing down shanghai disney, the movie theaters, transportation when doesn't it have a ripple effect or is it an zblunt i think it's an opportunity i think they are being aggressive how they quarantine this working to their benefit because i think this blows over quickly. i don't think it turns into a worldwide contagion at all yesterday i bought yummy china today ibought more i think it's down 11%. and i don't believe the value of in business has been hit by 11% from this. so there is other -- i do think probably the -- some of the gaming names as well i think are overdone so i mean it's a little scary and doesn't feel great to buy into a virus. >> of course.
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>> but i do think the market has overreacted. i agree with steve, the market has been straight up for i don't know how many weeks now. and so this is a tiny blip of a pullback and i agree the market was sort of looking for an excuse really weren't even down much considering the run we have had been extraordinary. >> guy what do you make of casino stocks, wynn down 12% in a week a big move. >> from 105 up to 150 was a huge move over a short period in that vacuum it's a big move but i think it has further room to the downside. i don't think there is a reason to get in front of erwin in earnings at this point in the market it doesn't make sense i'll say this. i don't know maybe it blows over. you hope it does but i'll say, consumer confidence is a very delicate tenuous things and you see people with masks on you wonder when does it change behavior and people stop going out to the movies and the economy is it 73% driven
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by the consumer. it's tenuous as davos you had people telling you how everything was contained. nothing now in four or five states. >> i totally hear you. but the more you get exposed to the knowledge of this, like ebola was frightening for me that was a freightening episode. we seem to go over that speed bump. >> 907% mortality rate with ebola. >> anyway we are following in obviously having ripple effects for the market everybody wash hands >> i did. >> it's an earnings extravaganza with 150 companies reporting next woke. we dig into the top names you should watch later the magical mystery chart of the week. we tell you why one trader flags this big move. live from times square in new york city. teth more "fast money" right afr is
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word of unfortunately of 15 additional deaths. >> thank you very much now that we have 15 more deaths and seems more serious, does this change everything for you grasso. >> no, i mean you have to get to the point. we'll have more deaths and more cases. i think for the large part of this it's going to be contained. i think that as long as you stay around that 4% mortality rate i think the markets will not get spooked. if it climbs to that and cases run rampant everywhere and you look in new york and cases and the mortality rate grows, then i think it's a bigger concern for ete market but not y. >> stick with us more "fast money" back right after this when it comes to your customers' expectations,
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i'm justin rose. we are morgan stanley. ♪ (announcer) treating others like we'd like to be treated... has always been our guiding principle. welcome back to "fast money. check out the huge week of
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earnings coming up big names in tech, health care a industrials all reports as we gear up for the busiest week of the season what is the one name that you are most closely watching going into next week, grasso you have a lot on your plate. >> i wish i could only watch one. i'm long apple, superconcerned with that to see if the hype when the rubber meets the road to see what they perform at. i'm looking for services to continue to outperform looking for 46 billion to be growing. i think the apple tv plus, the streaming arm of that d has a bunch of tailwinds they already surpassed hulu and disney ranked third in streaming. that's coming out of no where. >> guy what are you look at. >> amazon on thursday is fascinating. topped out a little above 2,000. flush in october down to 1700 or so got half back. not there yet. amazon on thursday is a really important quarter for the stock.
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and aws growth if it declines you might see the re-test at 1700. >> if you think about aws and cloud from the big boys and girls out there, the competitive landscape is changing. having said that, amazon which was langing and a fang component holding back, the expectations into the number are well slated. if you look at other numbers next week, energy sector sbig integrated oils reporting late in the week, that sector has been under onslaught as we have seen global pullback finally, tesla not surprisingly something i'm watching something i do think the earnings should be telling us what the balance sheet looks like we get insight whether they get to the 360 to 400,000 in deliveries. >> tesla has been so parabolic still a crazy chart you think it mar room to run or do you think it's capped out. >> our talking to someone courtney that had it went too
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far $200 ago. >> yeah, yeah. >> it does come down to free cash flow, profitability of the company. there's been an incredible array of news headlines i don't think i've had detail. lets get detail on the balance street. >> ones running into earnings tesla couldn't be a better example. apple as well those have a harder time even with great numbers because already so baked in whereas amazon hasn't had near the run. to me facebook is the most important i'm watching google doesn't report until the following week but for facebook i think much of that negative sentiment is gone, right, going back to cambridge annual it ka and a giant cash forward which will grow we'll see how much when they report. but is my favorite name. i think the upside mostly there. >> what about starbucks, thinking about consumer and china, that could be
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potentially -- >> it's gotten hit on china, right. >> yeah. >> given i think -- any china discount i think will end up going away i think starbucks is probably interesting. >> how about a name like mcdonald's with steve easter brook leaving. it was under pressure immediately on his departure now up 14% since his departure so it seems as though -- then the negative headline today they were closing stores. so all in all i still think you are okay buying mcdonald's where everyone thought it had a bloated, expanded multiple and you couldn't be a buyer here but the laggard is cater pillar for melets see where it is down 5% and quickly year to date lets see where it goes. >> it's friday, you know what that means at this time for the chart of the week. so karen, what are you flagging here this is -- >> what i'm flag something the volatility index, the vix. the vix has been practically flat lining for i don't know how long now i always like to buy protection
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particular le when the vix is low. today obviously the market down but coronavirus fears, the vix started to spike, hitting close to 16. i think 16 is not the time to buy the vix. it's not the time. i wouldn't be jumping in now i wouldn't be surprised if we see a vix spike again monday probably a seller of volatility into that. >> well it's time for the final trades that was such a fast show. tim you start. >> it was a fast show. great to have you courtney i'm going with the airlines which have been on onslaught because of the coronavirus delta is best of breed i think a great trading range stock but around 58 a good level of support. >> coronavirus, name caught in the crass hairs. disney. >> grasso. >> so much uncharted territory impeachment, election coming up, health scarce, gdx gold miners you can have a couple more days
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with where it outperforms. >> tim used the show in penitent new month mining higher. >> that does it for "fast money. "options action" is coming up next ♪ ♪ ♪ ♪
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♪ ♪ don't get mad. get e*trade, dawg. well happy friday "options action"s fans we have a great show ♪ it'als l right. ♪ ♪ well it's all right ♪
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happy friday, "options action" fans we have a big show lined up tonight here is what's on tap. >> announcer: forget bond. it's really about. >> q, q. >> carter worth spies with his little eye something lurking in the shadows of the nasdaq. >> i think he got the point. >> then. >> are you familiar with the ge oefen. >> tony zhang thinks something is cooking at general electric and he has the options recipe. and sticking with all things electric. >> i've come


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