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tv   Fast Money  CNBC  February 16, 2021 5:00pm-6:00pm EST

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>> the other thing of note, keeping an eye on the dollar, which has restarted its weakening tread of late. gold was weak today, mike, but oil continues its surge. >> oil, of course there's fundamental reasons, weather reasons for that we'll see if the rest of the market is getting to the point where some of these trades are getting stale. people are very short bonds right now. >> that does it for us, thank you for being one of the many people who watch us. "closing bell," "fast money" now. >> r. tonight's trader line of guy adami, and technology permitting brian kelly. tonight on "fast," a new record for the dow, a year since hitting prepandemic highs. the benchmark index seems unstoppable. could there be a threat lurking in the wings why you might want to be wary of the dreaded i word and later five-time nba all star chris weber has a new project that could light up one red hot industry.
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plus, we've got a bonus hour coming your way at 6:00 p.m. eastern time tune in for a "fast money" special report on the new american investor from reddit to s spacs and everything in between. we start off tonight with the reflation trade. the ten-year yield hitting a one-year high, 1.3%. does that mean the economy is staging a healthy recovery or that inflation is making a comeback sooner than we all thought? what could that mean for the markets? guy. why don't you open it for us tonight. >> first of all, i mean, where's bitcoin? it's like 50,000 bk's having technology problems. he should have better technology than bill gates. he gets no pass from me. i will offer him no quarter, number one number two, it means that the market is clearly anticipating this economy opening up in a major way in the second half of the year, and that's a great thing for the economy. it might not be such a great thing for the stock market although the market seemingly
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likes rates rising right now we're at a point in that curve where it no longer does. my sense is it's about that 1.5% you've talked about a ten-year yield that went from 53 basis points in august to north of 1 1.25 now in a seemingly short period of time that's a tremendous move i just think it's getting started. banks are going to like it inflation is here. make no mistake. you heard it from kraft heinz. it's right in front of us. the fed thinks they can control it good luck with that. >> lumber prices also a record according to all different -- i mean, across species, the lumber comes in species, different uses for yellow pine and ponderosa pine and all that all at record highs, and kraft heinz those comments, items like mayonnaise, tim, mayonnaise experiencing pricing pressures at this point. >> yeah, i'm not a huge fan of mayo for what it's worth, big
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fan of zack mayo, and guy brought the lumber there, but i think you've got a case here wherehigher inflation is something to pay attention to. let's not forget about bondholders. we talk all about the impact on equity players how about all of those funds that have been forced to push out the curve and are that much more underweight -- excuse me, under water in terms of negative yielding assets. if you look at that empire manufacturing number, not a household economic indicator of sorts, but ten-year highs on prices paid, any slash in the services industry is gone and demand is moving higher. on some level this is the market anticipating a pent-up demand dynamic. on some level this is the market remember, we talk about the fed all the time that can control the short end of the curve but has no criminal over the long end and effectively the long end, there's been a 75 basis point hike i think this is a very good time for banks. remember how much we said banks
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were operational leverage exposure into not only recovery and main street coming back online, but then the interest rate dynamic, and yes, i mean, look at the move in steel companies today. look at bhp. look at rio tinto up 7.5% i think on rio you have huge moves on commodities. i'm going to make the argument we're at the beginning of a commodity supercycle. >> at what point do the markets care at what point does that assent to 1.3% or 1.5% matter if the economy is, in fact, reopening very sharply >> then it's not going to care so i think -- so you have to put this in perspective. this is the whole rotation into value trade. you have five-year inflation break evens at ten-year highs. you have ten-year inflation break evens at seven-year highs. if you look at the iwm from november 1st, it's up 50%
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against triple q's up 27%, against the s&p up 25% so this has been the value rotation or the rotation into value. i don't think the market is going to care until we get to at least 2% you're going to have some blips. you're going to have some selloffs, but i don't think it's really going to get in the way of the overall market until 2% before the pandemic, we're at 1.93 i think we could handle 2. >> i mean, the argument is that as long as jerome powell and company are there for the markets, the markets will be aok, guy, and powell has made it clear that inflation would have to be sustained for a period of time and not just sort of a spike in inflation for the fed to change what they're doing in the market. >> yeah, i get what he's saying, and good for him you know, he can say what he wants to say sustained for a period of time, at what rate, though my point all along has been embedded in that statement is the fact that they somehow think
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it can get to a level and then taper off let's say 3, 3.5%. what i'm saying is they better hope that's the case i think it's going to be well north of 5% before they bat an eye, and then what are they going to do? then they're going to say it's a transitory thing it's going to get away from them in a major way and if you're paying attention, which i know you do and our viewers do, it's headed that way. it's in all the wrong places right now, and they can't stop it they can talk about allowing it to stay hot for a period of time, but again, embedded in that statement is staying hot somewhere around 3, 3.5% they better hope it stays there because i think it's well north of there in the foreseeable future -- in foreseeable future, probably in the back half of this year. >> let's say inflation does go higher, what are the implications for the tech trade, tim? >> well, that's been one of the dynamics that you could see a lot of people not only rotating. there was some dynamic that the other part of this whole tech
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headwind that we started to see in the fourth quarter with some expectation you could see a change in the tax regime, which would see a lot of people at least looking to lock in some profits at lower capital gains dynamics but yeah, no question, i think mega cap tech has been growth at a reasonable price, has been a huge beneficiary of a low growth environment. and look, for equity shareholders right now, as much as we appropriately point out the risks that the fed has put underneath the economy and arguably the -- you know, the globe, for equities right now, i don't see what gets in the way of fed policy. steve pointed this out the fed has to err on being very reflexive on the upside of inflation as they were on the downside therefore equities shareholders are going to be the benef beneficiaries of that continued reach for yield and leverage for higher rates >> that also tells me, though,
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if the fed, and let's throw treasury in there as well because we know janet yellen and jerome powell are kindred spirits on the side of ering on the side of being too generous, that inflation could in fact get out of control a little bit, go higher than anticipated because their reluctant to pull back on the stimulus we industrial still have stimuli the system this is an interesting argument by bill dudly. he said there are a host of reasons why the fed could in fact pull back monetary stimulus one reason is that households have a lot of cash, and there's still stimulus coming. so there is a lot of cash waiting to be spent, steve grasso, and that could really spur an uptick in economic activity as well as inflation. >> you know, just a couple of weeks ago we were worried about -- or let's even go back we've been worried about a
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deflationary death spiral when we don't have that right now we haven't had any whiff or sniff of any inflation for the longest time now we finally do. so i think they're going to let it run a little bit hotter as all of us have said and, yes, it could to guy's point, it could get out of control, but we're going to watch the next four years of unprecedented stimulus. we've seen the first 2 trillion tranche. we've talked about the number that's been hinted that we could see 10 trillion in stimulus. but let's not forget this. if you would have sold this market 900 handles ago on the s&p s&p that would have seemed like an intelligent thing to do and you would have missed this rally that has been so aggressive to the upside so although we're all waiting for the bottom to fall out, we're just riding the course right now, and i think you have a little more time to do that. >> so that's the rub, guy. even as a believer in -- you
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know, in potentially 5% inflation, how does that translate into your market strategy because as steve grasso points out, you know, we would have all sold too early. >> no, i'm one of those people without question there's no doubt about it. i mean, what i'm specifically trying to do -- and i don't want to speak for everybody else -- but i think trying to point out what can go wrong. i'm not suggesting anybody's doing that i think you have to put it out there, and i do think that at a certain point the market's going to care. and to the fact -- listen, inflation is absolutely there. it's going to benefit some stock z that we have talked about as well throw caterpillar in that mix. we talked about in i want to say spring of last year, that $135 handle that stock's probably going to continue to grind higher and you're going to have to see analysts raise higher. there's going to be some winners absolutely on the back of this the fact -- what i'm most upset by is when they make comments like we're going to let this run hotter for a longer period of
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time i mean, what they're basically telling you is that they somehow can control it, and they absolutely can't control it, and i'll bring kerry strug back. let's see them kerry strug this landing because i don't think it's happening. >> so stick to the landing for all those out there who may not be familiar with terry strug >> thank you >> google it go to your google machine. >> yeah, we're trying to reach every viewer out there. our next guest says inflation is his number one concern this year. jim bianca is president of bianca research. great to see you it's going to be a problem but in the back half of the year what does the fed do, if anything let it go? >> yeah, it's going to be in the back half of the year because i agree with a lot of the comments before that inflation is percolating but we got the built-in excuse that economists call the base effect because we're going to drop off the big fall in prices in april and in may so everybody's going to look past it. but once they get sticky in the back half of the year, i think
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that's going to be a problem what's the fed do? the fed is going to do what they did the last two cycles. they're going to give a bunch of wonky speeches that says we're going to let it run hotder, hotters, hotter, and then the market's going to throw a fit, and then they're going to be forced to respond. that's what happened in 120 2018 a year ago they said we're going to stay at 1.5 forever the market tanked on pandemic, and within ten days it cut 50 basis points that's what will happen this time rates will keep going up, up, and up and ewe'll get to a point where the market throws a fit and the fed will be forced to respond no matter what they say this is how it seems to be working lately. >> okay. so that means that you believe that inflation will, in fact, go hotter than expected because the fed will be painted into a corner into not acting am i understanding that right?
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>> yeah, absolutely. the fed is not going to act. we're going to look past it right now and sayreflation, andg to keep going and going and then in the second half of the year i think it will probably be a problem. it's not an immediate problem for the markets. i don't think that rising rates, you know, this week, next week into the summer is going to necessarily be a problem for the market they'll find a way to look past it but as we continue on and that base effect that everybody's looking for doesn't go away, and that's what i think happens, then i think it becomes a problem after that >> hey, jim, so what about the credit side of this story? because junk bonds and junk issuance and the concerns we had about essentially a triple b minus tranche two years ago taking the world into a credit crisis is now only more of a bubble is this part of the same sequence of events that just doesn't really have to be an issue until we get into the fourth quarter
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or is this something that actually could be a risk, and there could be some type of a tri trigger before then? >> you know, back in the spring last year, the word that everybody used was co-invest with the fed the fed had back stopped the high yield market. they were buying high yield bonds, they were buying high yield etfs you can't go wrong buying what the fed's buying they stopped doing it, but everybody expects that that backstop is still there. so as long as you still don't have inflation, the corporate market is going to keep running because everybody thinks that they've got a protection on the downside it's only when you get inflation that kind of forces the fed's hand to not be aggressive in throwing money at these markets that there will be a rethink high yield is under 4% right now. double pi yield is approaching, you know, the low 3s at this point. it's incredible these yields we used to call it high yield. we have to find a new name for it right now, but this will continue because of that perceived fed backed stock. >> jim, just a follow on that
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thought. you know, a year ago we were talking about fallen angels, and this year we might be looking at the fastest upgrades from junk status to investment grade status that we've seen in credit history, and i'm wondering what you think the impact of that is because the flip side to heating up economy is that companies are in better shape, their business is theoretically better and they could actually see upgrades and that could change how investors view junk, that could change how investors view investment grade. >> you're right. we are seeing that because these companies have been given a lifeline that they're being able to issue debt, and they've been able to get enough cash to kind of get over the other side of the pandemic but don't forget on the other side we've got a lot of zombie companies that are still alive that shouldn't be alive right now that are kind of hanging on as well, too so we've got a lot of companies that are in the pipeline that when we get a turn in the credit cycle, there can be problems with these zombie companies and
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these other companies that have issued money, you know, i'm thinking like the theme parks that have issued money and are basically burning cash waiting for them to open the theme parks. they could run into trouble on the other side if the credit cycle turns before the reopening happens. >> okay. jim, great to see you. thanks for your thought, jim bianco. the illustrious brian kelly has harnessed his bitcoin power and has joined us. what do you think -- >> that's right. taking up too much energy. >> apparently. what do you think of this little problem or potential problem known as inflation here in the markets? >> yeah, so i mean, i think, one, you're going to have a hit pe ratios of valuations at some point in time. i don't think it's today i would agree with everybody else i think it's the back half of the year, but the other problem you have is the federal reserve thinks they have the ability to control inflation. they do have the ability to control some inflation, but not
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cost inflation that's caused by supply chain issues. because i don't care how muc you raise interest rates if your supply chain is broken and you can't get goods to market but everybody wants that same product, that price is going up, and that's the real danger here. so my view is, you know, until that -- you have that problem, you stay as close to the spigot as possible. you buy hyg, high yield, anything with yield, and then you wait until there's going to be a problem but mark my words, there will be a problem. >> supply chain issues, guy. you're nodding your head when bk was saying that. >> bk's speaking my language you know, he's clearly more of the economist than any of us on this panel, and good for him and he's 100% right. you know, again, it comes down to the hue bres of these fed officials. they've done a magnificent job
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of convincing the populous that they can at a certain point somebody's going to wake up and say wait a second, the genie's out of the bottle i'm of a belief that it's closer than we think but maybe jim bianco and others are right, this is not a problem until this time next year or later than that. >> last comment, tim >> look, i don't expect the simone biles by the fed here, but i don't think we need that and i think you've got a case where actually sticking the landing for equity investors right now is rotating into the best sectors where you actually have balance sheets and you have valuations that's banks for sure, and again, i think the -- if you rook at resource companies, the way these companies have rebuilt balance sheets and adjusted capex, opex to meet demand when in fact demand may be starting to peak again, hthose are your plays here, and that's how you stick the landing. coming up, energize gains, the long bean down oil in gas getting another boon today, and we saw one trade in the options
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pick to suggest more to come >>bioi> tcn may seem unstoppable. there may be some other crypto plays that may pay off even more you want to be in those trades, we'll have that coming up right after this break with ultra... low... lag! stop blaming the network and start becoming the best gamers in the ga-- that escalated quickly. (sam) 5g ultra wideband, now in parts of many cities. this is 5g built right. only from verizon. incomparable design makes it beautiful. state of the art technology, makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $359 a month for thirty six months. experience amazing at your lexus dealer. for thirty six months. sometimes, you want speedy but reliable. state-of-the-art but dependable. in other words, you want a hybrid. so do telcos. that's why they're going hybrid with ibm.
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welcome back to "fast money. check out bitcoin, it cracked the 50,000 mark for the first time ever this morning before taking a little bit of a breather as hot as that trade has been, there have been some other players in the crypto space that, can you believe it, are doing even better. check out some of these companies. ride blockchain is up nearly 150% over the past six months. microstrategy, that soared nearly 600 %, while bitcoin has only gained a measly 300%. so let's hand it over to our very own bk baller, brian kelly, bk, what do you -- i mean, we've seen in the gold market, for instance, minors having more leverage than the actual commodity. so is this the katscase here fo bitcoin? >> i personally don't think so i mean, the problem with the mining sector at this point, i think at some point in the future they may. the problem with mining right now is you have massive sunk
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costs. you constantly have to be updating your equipment, and you're effectively making the same bet that bitcoin is going to go up you're going to do well if bitcoin goes up. i'm sure the ceo will tell us, well, we can make money even in a flat market. i get that, but to me, it's a very capital intensive business, and i'd rather just buy bitcoin, even though bitcoin has been the slacker, apparently, on returns at 300%. >> only 300% over six months c grasso, would you agree? i guess there is a case in theory that maybe some people are not institutions, namely are not allowed to buy bitcoin for whatever reason they are allowed to buy listed stocks instead so maybe this is their way to have exposure to bitcoin, but still 1500%. >> i think all of those reasons you just stated make a ton of sense. i think for the most part i bet
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you bk has been asked on a daily basis if not hourly basis how do you play this bitcoin move without buying bitcoin the mind of a trader is you never want to buy something for $50,000 right now. you want to get a cheaper way of doing that another name is marathon patent, mara this stock was a $2 in november. it's up 1,800%, the same way the stocks you stated on the entry coming on in i think you bring up a valid point, but to bk's point, if the bottom falls out in bitcoin, all of these come crashing down a lot more. >> leverage to the upside, lever to the downside as well. i feel like we need to do a more you know kind of thing, tim, right? i mean, you buy something for $50, it doesn't mean that it's cheaper than buying bitcoin. you could buy a fraction of a bitcoin by the way >> you're buying fractional
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shares you're buying slivers, and the more you know was so great music, by the way, one of the best things we do. i think the point we're making is that also getting some other residual ancillary exposure sometimes is not only a way to actually get exposure when you might not otherwise have access, but often these are trades, and these are important trades that on some level are going to do outsized performance and add lever to a move like bitcoin i think it's absurd that you buy a company and have it go up ten times when bitcoin's gone up three times. i think, again, it's not even one to one leverage there. the other side of this trade, folks, take a look at gold, in the early part of the summer, everything we talked about with the fed and their inability to do a mary lou retton, gold's down 13% since august. i think a lot of those fundamentals, and i don't think gold's replaced by bitcoin therefore, i do think this is a
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trade, it's a trade that makes a lot of sense in an inflationary book drop. >> and i am surprise that had no one mentioned gold in our ininflation conversation, gold that finished the day lower today, guy, what's up with that? >> listen, without question, if you had told me all the scenarios that would play out by vaid and asked me where gold would be at, here we are sort of floundering around 1,800 i'm not sure i think part of it is the fact that bitcoin has taken so much of the fanfare away from the gold market. listen, i still think gold's going to be a trade here inthe dollar's going to get torched and i think at some point the gold market is going to wake up i don't think gold and bitcoin are attached at the hip. i don't think bk believes that aert i think both can work ask at a certain point both will. for more on the crypto, we will be joined by jason les
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we are just getting started here on fast. here's what's coming up next. the energy sector getting fueled up today as freak storms hit the heart of america's energy industry, but can the trade keep powering through? and don't forget, a "fast money" special report on the new american iesr.nvto what the rented revolution has meant for the retail trader. that's at 6:00 p.m. eastern only on "fast."
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welcome back to fast money president bide en declaring a state of emergency as a winter storm leaves people without power across texas energy prices have shot through the rioof amid heightened demand marathon oil, occidental
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petroleum, jumped as crude oil crossed above 60 bucks a barrel for the first time in more than a year guy, is this investable here we were just talking about inflation and the reflation trade. maybe this is just extra juice to that trade? >> yeah, i think so. i think tim would agree. for a while we've talked about some of these levered oil names, philips 66 is a name we mentioned for a whiechlt look at the huge move off that buy we talked about in the fall i think, and where it is now i think it potentially trades up to the june, last june's high of about 90 bucks i think it's close to 79 now same thing with the exxon mobil. again, are very similar, that 31 double bottom held, probably trades up to the 54 level, which was the high again back in june. i still think there's room in these trades i don't think enough people are talking about them, and unfortunately when they start, it's probably going to be too late >> by the way, we just learned tonight that berkshire hathaway bought a $4.1 billion stake in
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chevron as of the most recent filing obviously we don't know his position currently exactly, but he tends to be a longer term investor do you see value in some of these integrated name? >> i think you can if you thinkoil is going to go higher, which i tend to be in that camp. we have shut down a lot of oil production in the u.s. i think that the integrated names could do well. obviously they're going to get hurt from the electrification of the grid here, but you know, in the meantime, you still need to have that dependable base load, right? and that's where oil comes in on this is that you can't have -- what happened down in texas, you had the wind freeze up you had natural gas plants freeze up. you need to have this base load, so one oil is part of that mix, and i'd also look toward nuclear. that could be a really interesting trade over the next couple of years. >> yeah. steve gras sew, with what is going on in texas, does that underscore -- these are two
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separate questions i guess -- it underscores the need for perhaps investment in infrastructure, but does that help the baiden administration get that farther, get that effort further? >> yeah, i think it does not that they need any help because they're owning all the branches of government, so they can't exactly pass what ever they want, but there's a huge push the xl lead, the etf for energy hasn't done anything in five years. to your point, it's all part of that reflation trade overlay the ten-year on the xle. it's in lock step. it's correlated. so when you look at what's going to be passing, we were just talking about that major headwind for the energy space is esg investing. that seems to have gone by the wayside, and it's all about inflation. all the news and all the headlines that you did in the entry point of this spot, of this block, that's exacerbating it, but this is all about
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inflation and it's moving higher and it's taking energy with it >> some might argue that esg is actually helping our friend paul sankey of sankey research, the harder you make it for drillers to drill, the harder it is to get oil out of the ground, the higher the price goes. >> yeah, i was just going to point out the great irony in biden's approach to ev and energy policy is great for oil prices so don't forget that, folks. and i think the dynamic there, also when you layer in opec, i tell you what, every time you think they're about to imemploimplode, and i'm talking opec and opec plus, which includes russia, that's been the dynamic to watch between the saudis and the russians they came away in the last quarter with more solidarity than we've seen in a long time, and i think in the short run, look, the biggest problem for commodities is higher commodity prices that brings out a lot more supply, and that's in every underlying commodity but for now it's $63 brent
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this is almost the sweet spot, and i think therefore we get to 75. >> one name in the energy space saw a lot of bullish options mike, what'd you see >> yeah, so we're taking a look at inter roe resources, this denver, colorado, based company isn't one of the ones that we talk about all the time. it saw three times the average daily call volume today. calls outpaced puts by 9 to 1. stock was up about 6% on the day. the most active options were the march 10 calls the buyers were paying about $0.92 a contract, which essentially means they're betting the stock is going to be above $11 by march expiration. that would be an increase of over 15% from where the stock closed today already up quite sharply. >> for more options action, tune in to the full show, friday 5:30 p.m. eastern time. coming up, a palantir plunge the retail favored stock sinking today after its earnings report said all the air has been let
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out of this once red hot name. and chris weber making a major announcement in the world of cannabis, what he is hoping to bring to the industry when "fast money" returns options action is sponsored by think or swim by td ameritrade esting goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit ♪ ready to shine from the inside out? try nature's bounty hair, skin and nails gummies. the number one brand to support beautiful hair, glowing skin,
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welcome back shares of palantir under pressure falling double-digits after the data analytics company reported disappointing revenue forecast for 2021 in its earning results. despite today's selloff, shares still up almost 300% since making its direct listing on the new york stock exchange back in september. for more on today's results, what it means for the stock, let's bring in brent thal of jeffrey spring >> in terms of the forecast, did it justnot live up to expectations >> that's all it is. fundamentals were alive. revenue and ebitda beat. they gave basically a forecast up to 25, standard to grow over 30%. the stock had had a huge move as you mentioned, melissa i think ultimately you have just expectations were too high they delivered great fundamentals, and i think ultimately there's a concern of the share lockup coming from the
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ipo that will be settling in here recently. we have to get through the lockup and then i think you secondarily have to get through ken pallen tire they serviced over 140 of the largest companies on the planet including governments and commercial they have to prove similar to what tesla did when the car came out that they can take a very hyped piece of hardware or software in this case, and then appeal to the mass market, and that is going to take some time. that is their vision we think they can scale down, but again, it's going to take -- it's going to take several years to go into that model. >> hey, brent, it's bk so i'm glad you brought up the fact that -- i mean, corporate's a small part of the business they've struggled there. in 2017, they did try to revamp it, break apart so you didn't have to buy the whole software package, but what signs should we look for as we get this, you
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know, ipo or as we get these shares unlocked, what fundamental signs should we look for that says, you know what, palantir has actually turned it around, and they are actually going to be able to sell to corporate. right now this is basically a government story >> the government business did really well, but it is a two engine coin. the government business did well giving covid, and now they're finding new use cases for governments across the globe commercial was a weak spot in the quarter. it did very well for the full year ultimately, i think what happens for commercial going forward, they are stepping on the gas, hiring at triple digit growth rates. secondarily they have ibm. if you're an ibm sales rep, you can expire quota on palantir the customer case studies, the case studies we've done with customers continues to just, you know, take, for example, ferrari. they took a four-minute decision and brought it to seconds. that is the type of power of big
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data on the analytics side of palantir that they can go after, and i think, again, being able to prove not only that the largest companies in the world, but the mass market can use their software and again, that's going to take time that is not going to happen all in '21 for long-term shareholders, i think we've seen this movie before we think they'll come downstream, short-term, no question, wasn't good nough. you've got the lock up, and the stocks are going to take time to settle into that >> brent, when you look at what you just said, big data analytics, it seems like that is what this environment is all about with the pandemic and with the government right now trying to analyze everything from every spending package to how to help meet the -- close that gap between the ultra rich and the people that are just making it by why is growth slowing so early in this story in such a
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compelling story with all the analytics that's needed to run every business across the globe? >> i think you're looking at this story again, 40% plus growth they guided for 2025 at 30% clip ultimately i think that will be conservative the guidance is ahead of that already in the first quarter so effect lively and i think wht you're seeing is a story that, again, has to broaden away from these big mega contracts and get volume and not just land the elephants. as we say in software, landing antelopes and landing a lot of them and that moetion takes time to pick up. i don't believe that the growth is decelerating, that's their guide. they beat the quarter in q4 relative to where they were at on the top and bottom line they were way more profitable than anyone thought. so again, i don't think -- this is not a snowflake like growth
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story, if you want to compare it to others we cover certainly there are faster growing software companies but i think as they say, they solved the world's biggest problems that others can't and again, the customer reference checks, you know, support that. >> brian, great to speak with you, thank you for your time >> thank you >> brent thill of jeffries guy, as i recall, your acronym for the year was hope with the p for palantir it wasn't hose, it wasn't hose with an s for snowflake, it was hope with a p for palantir so what do you think of the stock now? >> because hose would have been a very odd one for 2021. i mean, what do i think? i think if you go back and look from november, from thanksgiving until new year's the stock basically went sideways between 25 and 27. i think that's probably where we're going to settle back into and make the next link higher. had a huge move up to 38 a couple times, failed
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the back and fill makes sense. if palantir needs to hunt antelope, they can come sit on my deck. they can go nuts for a couple of days i'm sure they'd have a field day with some of the wildlife i got going on back there. i don't think hunting, you know, the big game hunting, i think that's a thing of the past by the way. >> coming up, a budding opportunity, nba all star richs webber joins us on how he is digging into the pot space to give back. don't go anywhere, much more "fast money" right after this. ♪bagpipes♪ ♪bagpipes♪ even the plumbers couldn't help us. nope. at least geico makes bundling our home and car insurance easy. which saves us a ton. for bundling made easy, go to good morning!
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. welcome back to "fast money. wanted to take a quick check on the markets before we head to our next guest in the cannabis space. we had very little change on the dow, s&p and the nasdaq. markets continue to hang on to record highs we had the philadelphia semiconductor index up by about 6/10 of a percent. we're tracking that closely because of the ongoing chip shortage across the country and the world here record high for the markets as the ten-year yield notches another record, the highest level since last march, 1.31%. bk, what did you make of that climb to 1.31% today did you think that that would have taken the markets down?
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>> yeah, i would have thought that this morning when i saw bonds at -- particularly a 30-year bond falling as much as it did, 30-year bond futures were down quite a bit before the open. i thought ultimately that would hit earnings i think what the market and what equity investors are pricing in is that the fed's not going to let this go too far, so i would say, you know, i'd even go so far as to say, if we hit -- let's call it 2.5% on the 30, maybe 2% on the ten-year, i wouldn't be surprised if the fed pegs rates there for the next couple of years. they did it in the '50s, and i think that might be what equity investors are anticipating. let's move on here as cannabis continues on its path to legalization in the united states, many are looking for ways to dig into the business our next guests are helping to create a new generation of entrepreneurs. let's bring in five-time nba all star and entrepreneur himself chris webber and jason wild president of jw asset management jw asset management is one of the largest institutional investors in the cannabis space.
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gentlemen, welcome to you both great to have you with us. >> thank you for having us. >> thank you for having me. >> chris, i will start off with you. you wanted to help underrepresented entrepreneurs, why the cannabis industry in particular >> well, i believe that it's a market that is just now getting started, and the potential is just exciting there. and then having a partner i have to acknowledge jason because as an industry leader in cannabis, him making the commitment to change the culture, to be inclusive, and diversity is our strength, so i just thought, i mean, what a wonderful opportunity not only to be able to help create change but to be able to have a business mind like jason behind that, i feel that that's just wonderful infrastructure. >> chris, it's great having you. this is tim, by the way. and you'll be happy to know that before the show, mel said she was sad to see that the greek freak passed you in all time triple-doubles a couple of days ago. she's pumped about that. talk about cannabis --
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>> i didn't know that. >> -- in professional sports leagues. yeah and the complexity of this issue, but the nba is a very progressive league, and how they are handling this issue, and as a former player and still very much part of that community, how you see this relationship with cannabis progressing. >> well, i think it's the voice of the youth, and i think that youth understand they aren't held to the same label maybe in my generation where you would to take certain pills that would cause ulcers or other things or you needed other things for sleep aids, that this helps, recoup time it helps also and swelling and other things that we've seen. and so as kind of players have embraced it in all sports, not just basketball from, you know, my friends in hockey, nfl and other things, i think these leagues are going to have to change and embrace their best stars and biggest and brightest
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stars as well. >> chris, i think it's amazing what you're doing, both you guys -- oh, i'm sorry, bk. >> no, go ahead, guy >> no, i was going to ask you -- and i apologize, chris, what i was going to say is can you believe it's 30 years ago that you entered that freshman class at michigan. my question to you is basketball related, do you think that's one of the top three stories in college basketball history because you can go back and look at those videos and to me that's something you can watch for hours if they're back on >> i wouldn't say it's one of the top three only because you have to include the teams that came through us whether it was are the great korean teams or even in recent as that time unlv or other teams that we took inspiration from, and then kind of the legacy we left and how the younger kids have taken it on, so at that time we didn't know what we were doing. we were just embracing the moment, so i definitely think it's -- you know, we really didn't know what was going on at that time, but i tell you what, now understanding the impact we
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had is wonderful, and hopefully we can have the same impact with this endeavor as well. >> jason, this is a private equity fund that you're launching and so what do you foresee as sort of the end game for you in this? do you think some of these companies will go public eventually, be rolled up into a bigger company >> yeah, so i think that we -- first of all, we want to level the playing field. the black and -- the people of color in the united states have been disproportionately incarcerated over cannabis, and today while there are many legal state level programs, about 80% of them are run and owned by white people and only 10% of them are owned by people of color. so part of the goal of this is to really even the playing field and give -- give other people and other entrepreneurs a chance to succeed in this industry.
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we're going to do that not only through money, which is obviously helpful, but also chris and i have committed to really helping these entrepreneurs and really setting them up for success and working with them hand in hand there's lots of -- once we helped all these successful companies, there's lots of ways that these businesses could be monetized. some of them are the ability to go public or to sell to other companies, but we're really -- i look -- generally when we look at businesses that we're investing in that we're trying to help, we really focus on making sure that they have the best chance of success, and we worry about the exit later because if we build the business that's sustainable and profitable, then everything else sort of takes care of itself. >> best of luck to you both. it's a great idea. chris and jason, thanks so much for joining us we appreciate it >> thank you for having us
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>> thank you >> thanks for having us. >> jim, how do you think this could help the industry? tim is obviously frozen. so -- >> that's the best part. >> brian kelly, i'll go to you on this. >> i think any type of, you know, chris hit it right on the head is that the nba is going to have to change because the younger generation is demanding this so you think about this, this is not for the boomers. this is the millennials and the zoomers. if you think about one of these mega trends, cannabis and can cannabis as medical cannabis, i think is one of those mega trends, and if you can get a celebrity like this to endorse it, it changes the view on this because the boomers certainly have their own view on what cannabis can and cannot be guy certainly remembers a lot of the woodstock days that's not cannabis these days. >> although, there is an argument that cannabis these days is also a big boomer component because it is used for
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pain relief, back pain relief, for instance, joint pain relief. tim, i know you can speak to this you're the cannabis king, so you're back. you're not frozen. >> i'm back. i'm nodding. look, i think this is what chris was going to get to. i mean, i think culturally, again, cannabis has been used as an otc, you know, aid for a lot of -- if it wasn't otc, but i think the point is perceptions have changed so much, the ability to change some of the social equity dynamics within this industry at a time when this is a generational opportunity, and this is a sophisticated consumer product group that i think is going to offer tremendous opportunities if handled again, this is a development fund that i think is going to be focused straight on helping those communities. so great for these guys for doing it, full disclosure, i work with jason and the team at jw, so i know a lot about the background of this fund, and i think i've seen this industry progress, and i think there's a lot of good here that's legit.
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>> in terms of the younger folks and the zoomers as bk called them, steve, we've certainly seen the interest in sort of this retail trading community of late with a lot of these stocks just going haywire. >> yeah, if you look at the election, we added four more states where the legalization of marijuana has come on board, so i believe it's about 15 states that are legalized for recreational, about 35 that are legalized for medicinal, so this is definitely a rising tide is lifting all boats, so i think this is a spot where everyone should stay focused on for your returns and your outsized performance. >> time for the final trade. it is that time, tim seymour, kick it off. >> yeah, i think this story in palantir, you mentioned robinhood and some of the reddit trades i think a lot of this move down was taking it down there i buy this week palantir. >> steve grasso.
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>> wpf was abused in the last couple of weeks. buy it both hands, wpf. >> brian kelly. >> i think you stick with gold here, gld, really like that one on this week. >> guy. >> caterpillar breaking out to the upside, melissa. >> all right, guy, that does it for us this hour do not go anywhere we've got a fast money special report on a new american investor that is coming up right after this break at 6:00 p.m. eastern time only on cnbc. stay tuned final trade is sponsored by interactive brokers, minimize your cost to maximize your return
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welcome to a "fast special report." i'm melissa lee. jim cramer is off tonight. we have a big hourthis time we'll break it down with some of the best in the bit coin biz then, electric vehicle


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