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tv   Fast Money  CNBC  November 5, 2021 5:00pm-5:30pm EDT

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excitement about the ford stock. >> super strong first week of november >> next week we will get a read on inflation still expect it to be high same story, short-term things look a little hot, but longer term pretty firm trend >> four record closes today. have a great weekend that's going to do it for us on closing bell "fast money" comes on now. >> this is "fast money," i'm melissa lee. tonight on fast, lighting up in the last half hour of trading as one republican lawmaker makes moves towards decriminalization. plus shares ending 2.5% down one market is saying they may be
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making the wrong bet and one stock capping off its best run in two years. stocks with another set of record highs pfizer announcing its covid pills cuts risk of hospitalization by nearly 90%. >> the end of the pandemic is in sight given all of the tools we have >> reopening stocks seem to agree that the pandemic sight is in end cruise lines and airlines rallying this was a green light is this why we were able to set another set of records ahead of the weekend, guy >> they are only grown lights f -- green lights for the market.
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things that make me go hmm, we had all of the rhetoric out of the fed, fantastic job numbers and this news out of pfizer. if you had told me that two days ago i would have said the yield would be 145 if not higher you buy the banks on weakness, particularly citi. i think lds has a lot of room to the upside, but moving the bond market off everything we have heard this week was fascinating. >> jeff smmills, i think this ia prediction no one would have made given the week. >> with the data, i think it's inconsistent with what we are seeing elsewhere i agree with guy, that
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ultimately powell gets renominated. i think him being in that seat continues to perpetuate some of the dove-ishness over the past couple months. we have had job growths and seeing consumer spending going up discretionary versus staple. small caps breaking out of a nine-cap range this is a market telling us the economy will continue to grow. we are past this growth scare from the second to third quarter. and big names will benefit on that we have have spending on goods above trend and below trend. i think pfizer will be a good thing for those services to recover. live nation, this is a stock
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where supply is not an artist. when you talk about demand and supply not being able to meet that, this is an industry where that is not a problem. expedia had good numbers that will be the trade for a while. i mentioned i think there is a shot clock on that trade, but i don't think it is until 2022 >> karen finerman has been in that a long time nadine, what gives it doesn't make sense. if we are going through this rapid expansion and growth, et cetera, everything coming up roses, then why are we at 145. >> when things go up, things come down. energy up and softens a bit. you got some gifts heading into today you saw a premium on crude oil look at the uso at over 47%.
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when you look at that, people are buying protection. if you think the world is reopening, if you think expedia will be hot and cruise line and going to disney sites, you want that and treasury, you know they cannot stay that low if the economy will be heating up, look at live nation, all of the things they are talking about, a lot of positive reports. i looked at it as more of a gift on a day when you could be trimming things, you also hopefully can also find opportunities to add to the long side or short side, and we found some of those today. >> so the translation i come away with is that the bond market is actually wrong steve grasso, would you be in that camp as well? >> never say the market is wrong. whenever you say investors got
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this wrong, you always are sort of barking up the wrong tree i think what the outcome that we have all seen to start to become familiar with is that positioning in the bond market has made it so that rates are going nowhere. what i mean by that is guys were short treasury, so they have to cover now. if they cover, that puts a lid onto the race scene. this has been a problem much we shouldn't be so perplexed. we are more like japan than we like to admit we are it's a global environment. once china comes back on the scene, it's very hard to have any sort of inflation because we ship it back and forth overseas.
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so i think -- kudos so tom lee i thought it was going to be cyclicals in value, but it will be everything going to year end and then some. >> positioning is offside. guy, that's why you are saying financials in theory the long end should go higher, the yield curve should steepen and be beneficial to financials >> i hear what steve is saying he is not wavering on this i was just shocked it made no sense to me i am sort of in nadine's camp with this one much the banks are too cheap. i thought citi would trade up. when it trades down 85% or soish, it's a tangible level the sell-off off this bond move is very interesting much
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a news alert rivian boosting its price range to 72 to 75 per share, up from 63 to 65 shares are expected to start trading sometime next week amazon and ford are major investors. amazon and some other major holders have expressed interest in increasing their stake at ipo prices it is beyond hot to bump yourself up from that range. >> no question about it. we talk about it constantly on the show gm, tesla. this will have tremendous growth any company that shows investors they are going to be able to capitalize and be a player is going to do well and gather attention. the question is what is the right valuation for companies at the early stage here in an industry where competition is
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very hot that is a question mark. i don't know whether that is the right price or not much i know the growth opportunity is huge i think that's what investors are seeing >> nadine, unlike some other companies that have come to market, it has an order book and capital for the manufacturing. how much of tesla's valuation should it have >> i think that's hard to say. instead we prefer to look at things that are a little under the radar. if people are in love with these companies, maybe go for renault. or maybe even japanese much but are strong on the labor front. there are labor challenges as well but not getting the market
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multiples. they can met up, but we like a little more symmetry in the return so we look at taking a different position in robotic type technology. >> up 10% for tesla, up 7% for neo. what are we looking for for rivian what are the source of funds guy, sorry >> the source of funds could be in the form of tesla we thought tesla would trade up and beat that all-timehigh in earnings that happened. on that day i thought it would go back to the prior high of 900. i still think that although it has been wrong i think the source of funds could come from tesla. we have been talking about ford
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for a while, just how cheap it was in terms of valuation and how $19 for a lot of different reasons made sense i still think ford can go higher, especially off this news >> steve >> i don't think they have to be a source of fund a lot of people thought they missed tesla and those are the peep people that will buy this. bay bezos is going to give a book on rivian my prediction is that this thing is trading over 100 on the first day of trading >> let's look at stocks. in the last hour, they jumped. a republican lawmaker.
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tim, what's going on >> cannabis rallied 10% in the last hour on news that republicans, not democrats, are bringing a bill to counter the push of the schumer bill which many believed was dead on arrival and it has proven to be. you have a freshman republican senator from south carolina who is bringing for the something called the states reform act the bottom line for the cannabis industry is we are talking about decriminalization, about keeping the power within the states to do a lot of the regulation and keeping a lot of the messiness of the federal government out of the way. it is passable a lot of people didn't think it would be passable. footnote to brady cobb who has been on top of this and gave me a lot of this information, this is an industry that we know the
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growth is there, demographics are there, consumption is there. we reported two days ago that the industry is under pressure because so many can't access this trade because of federal restrictions the news today is that the federal restrictions may not be as difficult to override in the short to medium term and the political dynamics of washington are also at work republicans see a way to steal a democratic issue that would be game changing for the industry >> tim, does this widen the chasm between u.s. operators versus canadian operators? the gates have opened specifically for u.s. operators? >> it is a great call because it happened on a day when the largest company in canada had disappointing numbers. the u.s. market is by far the
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most interesting, largest cannabis market in the world that chasm has been as much about canadian stocks that can lift on u.s. stock exchanges and u.s. stocks that have to go to canada be careful because i still think some of the canadian ones are investable but federal decriminalization doesn't happen tomorrow. i think some of the companies will trade well on this news this is a u.s. story and u.s. legislation that would be game changing for u.s. cannabis investments. >> tim, thanks for calling in. nadine, where are you in this trade >> well, we have owned some and are sticking with our guns we are supportive of with and all his knowledge on cannabis m the irony was earlier this week
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big banks said they can't hold it much you saw a lot of names trade down when liquidity comes back, then you will see it pop. not only legislation but liquidity in names is important. right now you are looking at multiples that are so cheap it's ridiculous stocks don't just trade on fundamentals the technicals have to be there, too. >> coming up, a surge in semis which names should you be adding to your portfolio. plus, you have to know when to hold them. shares of draftkings are down. but the general says don't fold on this trade.
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welcome back qualcomm rising almost 23% since monday, posting its best week since april, 2019. it kept rising 18% this week, the best week since february what do you make of this astronomical run, guy? >> i finally figured it out. qualcomm couldn't get out of
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their own way for a long time. it held at 125 a couple of times. all of a sudden the fundamentals are kicking in that quarter was ridiculous in a good way a value stock that has room for growth these are real companies in the right spot to quote an almond brothers album which was lousy, win, place or show, i am going to give you my win, place or show how is that? >> how is that, jeff mills >> i look at semis like biotech. i like spreading our chips around much we try to look at semi, thinking about exposure, wireless devices
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taiwan semi, even kla. i agree with guy it's a nice value play even after the move, pretty cheap. leader in 5g leader in revenue growth in 2022 we can't talk about chips or anything related to the metaverse without mentioning it. it is said the metaverse could lead to a $12 billion opportunity for nvidia in the next 5 or 10 years there is a lot of upside nvidi sar nvidia starting to become a co commonly mentioned stock >> grasso? >> i have loved nvidia since the
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day we uttered its name on air with the connected home and even the connected car. but if you look at it on a strength index, it's overbought, registering about 88 and overbought is 70 or above. so is amd and so is qualcomm i think you have to sell the spike higher if i was going to bet on one, i would go with intel. i think it could rally quickly and the others will flatten out. >> draftkings, one of our traders says the market is getting it wrong later, on a special "options action," guy is getting in on a fun laying down a stk oche says should rule them all wow, we're crunching tons of polygons here!
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welcome back down after earnings. it raised its guidance for the year jeff, you like this report why? >> with a stock like this, there has been a ton of hype you are talking about a stock trading at 70 times sales at one point last year. it is not going to happen all at once you are talking about a story in the first or second inning it's not cheap but i think justifiable based on the
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potential growth you are talking about 43% growth in 2022. user growth is good, revenue peruser growth is good the general story hasn't changed. you are talking of a global online gambling market of $112 billion by 2025. mobile sports betting is only live in 13 states right now. talk about ar, vr, metaverse, these are all areas where draft king is going to play in the future we talk about $4 billion for revenue for draftkings in 2025, i think that's reasonable and leaves plenty of upside for the stock. now we are back to the 2020 high at 43.70 and that has been good support for the stock, but i think it's a reasonable entry point. >> i am not a betting person in
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any shape or form. but the house lost a bunch of nfl bets to their customer and that was the reason. should one be concerned that they don't have the algorithm or whatever it is to figure that out in advance or in a better way? or no? >> you know they will be figuring it out soon, mel. but that's one part of the story. also people are looking for greater profitability. there were also some issues around the partner i do believe from a technical standpoint it is oversold. not to say fundamentally you have to throw this out but there are challenges it is a bit of prove and show me from a technical standpoint we are seeing about 12% upside.
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you can still buy this >> around the horn steve? >> final trade last night was up about 9% has more room to run >> jeff? >> -- i think there continues to be upside. >> rdsa. >> guy >> expedia >> that does it for us do not go anywhere "options action" with guy will start after this break it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next.
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welcome to "options action." tonight lessons to navigate what could be the most fraught time to short stocks. we have a special bonus appearance by guy adame. carter worth takes us on a


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