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tv   Fast Money  CNBC  December 1, 2021 5:00pm-6:00pm EST

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to friday or monday rally, which was really halfhearted, you did get evidence of fear entering the market. >> down 1.2% on the s&p, brutal end of day sell-off. thanks for watching. "fast money" starts right north. tonight's trader lineup, and tonight on fast we are all over the late-day sell-off. stocks plunging into the close what is next for your money? we're breaking it down plus shares of lyft hiding skids as covid fear says return. we'll speak to john zimmer about the real risk of ohm chrome variants and we're dealing into the world of cathie woods. we start off with the major market reversally, sending
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stocks into the red giving up a 1.9% gain. the dow swinging nearly 1,000 points, all of this as news broke out that the new covid variant is here in the united states meg as the latest. >> we've heard from press conferences in california, the state and san francisco, about the first case that was confirmed there. there was a traveler who returned from south africa november 22nd, tested positive on november 29th, this person was fully vaccinated we heard they received the moderna vaccine, but they were not yet six months out from the second shot, so wouldn't yet eligible to the booster. they would mild symptoms and hats recovered they said all close contacts have tested negative as of this point. the united states is now is the
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two dozenth country to have a case of omicron. we will likely see more cases, but the word from officials is not that anything needs to change, we should just adhere to the public health guidance of getting vaccinated, boosted, wearing masks when appropriate we are hearing from the cdc and from dr. fauci, theo saying the u.s. is likely to require a negative test result within 24 hours for international travel that starts from three days now. all of this to try to keep tabs and track it if it comes in bigger numbers. >> thank you, meg. so now that there's a confirmed case here, guy, it makes it all
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the more real, and then you add to that, of course, the jerome powell factor. >> yeah, it's interesting. i think it was a forgone conclusion -- i'm not trying to be glib. everybody realized at? point -- i was surprised the anowment did what it did this reversal is meaningful. you can't discount it when this magnitude, they will take note you talked about it. 1,000-point swing in the dow, and the iwm is something i've tried to get focused on. tim's talked about this correctly. i think everybody will talk about it now two ten spreads meaningfully below 100 basis points is something market participants talk about dan talks about this as well,
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these big valuation names are giving it up in a major way. when you start to see things like that. it's just a matter of time. >> zoom out, dan, for us, take us back to the day after thanksgiving right now we're at lower lows. when you look at the pattern of the markets, not just today, not just yesterday, what do you make of this action >> yeah, well, the market crashed, mel if you think about the participation of most of the names, i think according to last night, 50% was down more than 10%. that number has grown dramatically in the last day or so so day could have been so much worse. if you look at microsoft and apple, that maybe up over $5 trillion in market cap, they were both basically unchanged on the day. they're 22% of the nasdaq 100. that is probably the next shoe
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to drop, those names go south in the same way so that would be the final confirmation the s&p is down about 5% from the recent highs i think the delta peak to trough climb is about 6%. guy says it all the time investors have learned how to deal with this stuff it won't be another pandemic, but another wave here. it's probably an opportunity for those to buy what they want. think really haven't shown any fear yet >> we had lived through other bouts of uncertainty, but at the same time the markets have come so far since then. so the context of this understanding certainty, in terms of the uncertainty powell
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lays out with interest rate hikes, it's a bit different. i hate that expression, but it is a bit different this time around because of the timing and the backdrop >> right i think that the -- the case found here, which as guy said, is a surprise to absolutely no one it would be found here, is kind of an execution to continue selling on the powell news if we could have gotten after with the whole powell expeditin the tightening with the minedish loss, that's still not a huge am of damage for a significant change now that it seems to be happening and there was no
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backtracking, to me that's the more important thing, that's sort of -- i like days like today. i felt in the morse like, well, you know, now i mentioned it, and then it started to pick up speed to you down side there a chance to buy stuff well i think yes, there is. i want to be buying things tomorrow it may not be the bottom, but i want to be buys things, like what >> like a bank stock, you know, that's been terrible if the ted is tightening, it's just the math that can't support multiples when rates are higher. so i want to buy the low multiple names
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a viacom it seems to be at death as door and then goes lower. those are -- blood on the streets. no question, but i'm much more excited. >> you think in the two tens came in a lot yesterday, look at today, tim to karen's point in terms of this being an execute to continue the movement put into place by jerome powell's hawkishness, that seems to be the evident of that. it's being we can debate all we want, but it is clear the market really moved on that headline that we have all just said is something we expected to get, so why did it move? >> powell has been with us consistently now for three days.
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on some levels the markets responded to the encroachment of fresh covid headwinds. i think what everybody is saying, vix at 33, you were back to jan of this year, vix highs a pullback, we've all talked about the lack of breadth, so when you look at the surface, you have so many stocks, 40% to 60% that are not even just storied stocks anyway, you have a dynamic here where i think we are in a place where think about fed policy, think about how much policy was thrown at this very early in covid. they were saying, hey, such extraordinary policy follow-through, there's no policy left. that may be what's going on here what has to be mountain back up people's minds is december of
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2018 when the fed was seemingly too far ahead of the curve you know, essentially it went down 20%, because the fed was more aggressive than they should have been. now we have a fed that seems, no matter what, they're predisposed to something as just yesterday, or really four days ago, they were predisposed to something, no matter what the headlines today were covid variants, which took down the markets, but i think the powell problem is the powell problem. let's get more about this powell problem and the impact of the markets, and bridge in our next guest, adam parker of trivariate good to have you with us. >> good to see you. >> you were the chief u.s. securities analyst, and congrats on your new gig.
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what's your take in. >> it's about the path foe interest rates and the fed it's about the virus you know, i remain pretty optimistic about u.s. equities, because you think corporate earnings will be higher next year, and i think ultimately that's what hears. you were talking about some of the tech companies as a small business owner, i say i pay microsoft azure, no matter what happens i pay salesforce no matters what happens, i pay unitedhealth no matter what happens. so there's companies that won't be -- businesses can be resilient with pricing power >> what fascinated me is the fed
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wouldn't be in this market three years at this point. why do you think 2024, 2025 could be the first rate hike >> what i know for sure is nobody knows i worked for years where everyone tried to call the fed -- what you learned is they don't know anything. why start with the premise that all the experts you have on all the time, they're usually wrong and don't know it, because it's unknowable the fed is smart they can look at what's in the market what's priced in is a five-years fight, low to mid two, so maybe that's what people -- i think the fed is focused on their dual mandate. what have we seen? we've seen limber down 50% we know a lot of commodities will roll over we knee the labor participation is weak. in the face of that is the fed going to move? i don't think so
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i don't think tapering and expanding the balance sheet at a less rapid rate is the same as raising the front end. we have inflation, we all feel it, but personally and professionally, but i think you try to figure out where is the inplace -- there's plenty of pricing opportunities we're at 6%. >> i understand some part goes down a little, but we are so far outside the 2%-ish, it doesn't need to be symmetrical, i don't think the fed has room to ignore inflation. how do you get comfortable with inflation and no raising from the fed until '23 or '24
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>> if you're thinking about what really changes to cause inflation to be different, you probably have some deglobalization. semiconductors used to do that are testing and packaging in asia, now they do it in u.s. you think all the stimulus is over on the fiscal side? probably you have some rolling fiscal still his i still think you're look -- i think you're going to see some cyclical downturns in areas that were hot limber is probably the most recent example so the question is, when you get the commodity rollover next year, and when you see the consumer starting to maybe, you know, find it harder to pay gas at the pump. they have record low
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delinquencies, you're starting to see some of that raise a bit, maybe they'll wade for more normalization. i don't know, but they always end up being wrong. >> well, if you are right when it comes to your forecast for oil, adam, the fed may feel more of a need to move. you're seeing $450 to -- >> i think it's possible. >> does the economy support that the consumer is paying 50% more on the gas bill than a year ago. so if we go to 150 or 200, you know, that obviously would be more pain. >> yeah, i try to keep it simple i look at this year, what we have done, we're bullish on u.s. equities and our number one pick has been energy, there's weeks, days, hours of intraday reversals, but plot the market and plot energy if you have any
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horizon, that's still the case going forward. for me, i just look at energy and think i have this triple crown of awesomeness cheap valuation, upward revision the sentiment is avril if i look at whose priced in, probably oil 20 to 30 below where it trades now, so i like the stocks and i'll own them and the cheap once 230 the next six, 12 months. that's my mentality if i look forward, but but when there's a risk-off trade, we know what happens, but i kind of agree with the sentiment of adding to markets, you know, when you get indiscriminate sell-off. there's lots and lots of money that are rung in pods, where the analyst's job is to generate a
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net market zero, 4% alpha per year, and run up like 1,000 gross. so you get a degrossing that happens, and that causes, you know, an exacerbated sell-off at times like this. when you see that, when it reverses, the money piles back in so i don't want to panic on a short term sell-off personally. >> adam parker, good to see you. >> always good to see you. guy adami, what do you make of this trade? >> i love adam parker. >> i know you do. >> i love his work by the way, i did as well. i thought we would see triple-digit oil by the end of the year, but i would submit by definition the fed will have to do something, because the one thing i think the energy add -- but that's another story i do like oil. i guess it makes sense given the
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meaningful sell jot, but i think oil is still a place you want to be we've got an after-hours alert on square, ripping a page out of facebook's playbook it's changing its name to block. the company say the new name, quote, creates room for further growth the changes take effect next friday. they have a lot of businesses until the umbrella of this new corporate name, karen. i floe you've liked square in the past, though not the valuation. what do you make of this >> right well, we all know how competitive jack is to crypto currencies the spiral part i don't bite get. the block part i get
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i don't know if they're looking to go another dimension, i don't know, but the whole sector has come in a lot. i don't know if changing the name for block will make a difference but i mean, it's starting to get interesting. paypal, the whole space, they're all getting crushed i'm sort of intrigued, not because it's named block. >> it is symbolic, but it shows jack's commitment to blockchain. >> his profile, all it says is # crypto juror has made no progress in a year when you think about expectations for 2022, eps --
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sales growth high single digits, trading about 100 times -- that's challenging i want to say this we're very fortunate the one expert that came on cnbc that actually knows everything, and he just told us that he's constructive on equities i would say the one thing we didn't talk about in that conversation was valuation. john zimmer will join us exclusively ahead, but first an earnings alert on snowflakes we'll break down the details when facebook returns.
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julia boorstin has been digging into the numbers snowflake shares are up about 12.5% after the stock ended the market day down 8.5% revenue and guidance beat expectations, reporting $334 million in revenue versus the $306 million that analysts had anticipated. the company's fourth quarter guidance for product revenue, the majority but not all of the total revenue number is above the consensus range for the entire revenue estimate for the fourth quarter gross margins were also higher than expected. some momentum accelerated with particular strength in the europe, middle east and africa region with 174% revenue growth there, and in asia pacific and jaap their revenue was up 219% we also noted they recently launched in three new countries. the ceo saying, our vertical
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industry focus is an important evolution of our selling motion, and snowflake continues to be broad industry adoption. they have two new data clouds, one for financial services company. they also talked the media data cloud for media and also advertising companies, saying it enables them to crate their own new collaborative environments, noting that disney is a partner there. he says that the growth is a diverse group -- among the fortune 500. data has become the beating heart of the modern enterprise melissa? all-ia, thank you. tim, what you do you make of this one >> that is the new oil look, for snowflake down 30 or so percent coming into this, you know, the momentum was certainly
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working against us, though over the last couple days, saying their china checks said the same trends at they look to the infrastructure pipeline, also the competitive environment in some of these data, analytics and cloud is more benign than it was. they talk about being where they are vertical and what that means in terms of margin so i think the fact that the customer bay is growing, it's not just the sales number, but it is the size of the enter price customer, and these guys seem very well positioned in a space that i think is very competitive. it doesn't make a ton of sense, obviously, but the growth here is what you want to see on a stock like this. >> it is amazing the decline they have seen for the year. it's been underperforming its peers as well as the overall ma market. >> i think it has to do with what tim said.
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sales are expected to grow over 50%. he's the man he pry sided over service now in the last decade. that company did ultimately end up growing into its valuation. and it trades about 16 times sales. ultimately it is a valuation situation right now. it's great their margins are doing better it could be down 50 bucks right now, so i think investors have to contemplate expected growth versus higher valuation in what might be a higher rate environment, which is a big impetus as far as revalues some of the those stories. >> i'm going to quickly go to salesforce that's the one you probably want to talk about, but in the context of a place, salesforce is a tenth of the price to sales of snowflake. >> right, but who has more potential for growth, right? >> right. >> to me, what the market is saying is salesforce is a mature
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company, maybe the growth days are behind them. that's what the street is trying to figure out. to tim's point snowflake probably increased customers by 10% they were expecting minus 7%, came in at plus 2.5%, so obviously running the business more efficiently that's really the number i think people are cometic to grips with i don't think you have to own the stock here i think it probably will continue to be choppy. to answer your question, yes, i think crm is cheaper, but probably cheaper for a reason, because their growth days are probably behind them we're just getting started here's what's coming up next. >> announcer: would or would not, that is the question, but should you be buys the traders are diving into
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cat cathie wood's topics we're back right after this. today, your customers want it all. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm. ♪ ♪ well would you look at that? ♪ ♪ jerry, you've got to see this. seen it. trust me, after 15 walks ...it gets a little old. ugh. i really should be retired by now. wish i'd invested when i had the chance... to the moon! [thud] [clunk]
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shares of lyft fall today, down more than 22% this year, as new covid headlines continue to come in, how will the outlook for the rideshare be affected? have you seen any changes in how they're booking their rides or the pace at which they're
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booking? >> we have not seen any negative data as well as going up last year >> what are the sort of precautions or lockdown measures that you hear that makes you think it will be a slowdown. shutdowns or more -- >> absolutely. she talked about -- i think there's still a general trend toward people coming back, being safe we have the means to require
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masks inside the car for driver and rider. more and more people are getting their vaccines we'll have eyes open, but so far that hasn't shown up in the data you guys were on-board are more drivers, riders were coming back, the pricing was really stable i just heard what you had to say. i think you'll be moving back. it's these sorts of trends that you expect to build in 2022 going forward, despite covid. >> we do i'm confident in the outlook, as well as what we will see if the full calendar year next year both reality and the narrative,
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but overall, people are coming back, wasn'ting to go out and find safe ways to do so. we'll keep looking and listening to make sure everything is possible. >> when you look out to next year, john, what are you anticipating, frachting in terms of the cost to bring on new driver, the cost to keep them in your margins >> yeah, so we look at drivers actu actually our drivers to the retail sector. it's happening we are seeing increasing return of drivers, activation of drivers in q3 was 60% greater year over year and those trends
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have continued in a positive way. >> when you report i think it's november 2nd, i thought it was a remarkable quarter for all the metrics you talked about it was a record quarter in terms of rider i thought the stock was easily headed north of 60 bucks here we are at $38, and quite frankly the stock has been a disappointment since the spring. i'm not looking to play stock market here, but when you look at what you're doing and the stock price, does it make sense to you >> no. i think it's a big opportunity to get in right now at the value. we have -- before it was expected we have adjusted ebit dat profitability. we grew that in q3 prior to the pandemic happening
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that lever an will get better and better as well as next year have an even faster growing revenue here we're fired up about what we're doing. we're excited about the numbers we're putting up, and we are confidence the stock will follow but we'll be patient and keep our heads down, grinding away on the business. >> it's not often you get an executive say the stock price is too low. they often say no comment, so we appreciate your honesty and openness thank you very much. john zimmer of lyft. >> thank you. karen, would you agree >> would you agree we don't get often someone to come on and say it's a buy >> yes >> it's an opportunity here. >> it's interesting.
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i like him it's not like there aren't wildly overpromised/underdelivered. so that's interesting to me. i think that -- i'm always preferred lyft to uber, but they've done what they said they would do that deserves something. i think it's interesting i would probably be a buyer here i don't own it currently. >> tim, with the uncertainty of omicron and covid in general, it's usually buy the revumor, sl the news long term is a service
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we've always said, nothing like a good crisis to get a company to run better. we know, obviously getting to a normalize the number is still some time away, but it's a question of when, not if a better run business, i think it's the big debate, not whether transportation and rideshare as a service is something that people are going to continue to pile into. it's a question of what is the better business model? uber fans will tell you they want that super-app dynamic, and they think this will be -- that's impressive. >> the stock is up after hours dan, do you like it here >> we were just talking about valuations this has $11.5 billion enterprise value they have a ton of cash on their balance sheet.
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i think they're taking the step to focus on north american ridehair we didn't even get to the where they -- and they're not in that business anymore, but that's a great partnership, something that i think should be per effected, once they start rolling that out in cities like miami and austin i just think it's a cheap stock, and i think they're doing some things right they think it's cheep at these levels the to be is up 2% on the back of that. coming up, we're diving into some of the cathie wood's topics. and len noor with a big
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oil back to "fast money.
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cathie woods joined cnbc for a protalk earlier today. we like -- we also love a twitter's positioning. we think that's going to become huge with nfts the verification is what it will make nfts valuable this got us thinking how should you trade we are playing a game would or would not sew we kick things
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oof wood or would not? >> absolutely. i would have said wood $10 ago you have elliott management not kicking the tires, but making the comments there's a lot -- and they do report in early february i think the stock has gotten too cheap. i think it was an uninspired choice >> karen, how about you? wood or wood not twitter >> wood not, but to be fair -- they have this other thought of interest rates going higher, high multiple things going lower. i would rather facebook. i notice, i just snuck that in there. >> yeah, and.
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next up cathie wood. so dan, wood or wood nod >> i wood not. i don't disagree with what she's saying i just don't find what they're doing right now to be particularly compelling. mel, i don't know if you saw some of those amc, the gamestop, they got absolutely creamed here today. a lot of the stocks, they haven't been through a correction just yet, and that could really weigh on their assets under manage. so i think this thing need to probably have a capitulation, and then i would at some point
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though -- >> i wood robinhood, and i think they have the capitulation you can't tell me this stock hasn't been taken down hard. i think you have a case here, cathie talks about the digital wallet dynamic, how about how sticky it is, how popular it is, and i think, yes, the amc/reddit crowd is often seen as robinhood crowd, and obvious they're not distinguishable. sometimes they shouldn't be. i think this is an i was testing my wood on the way in. some bucks higher, and although, again, limited down side. >> testing your would?
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you mean robinhood >> i just said -- you tell me, mel. i've just said i would, so i was testing my would >> i'm going to move on. cath wreck wood say it's going to so wood or wood you not buy this one >> i think this is a data play this is obviously in some sense where we've seen other companies try to fail. the valuation not terribly interesting. this is a long-term play i'm not typically one that chases the growth multiple, but this is very well positions in space. i mean, this is a sick lars trend very much in their favor >> guy, wood or wood not >> i would change the sound effects to wood not.
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this is a money losing machine now for quite some time. growth is slowing. it's been taken out to the wood shed wood not. just a reminder, you can find the full talk on demand, just go to cnbc.com/pro. shares of lennar up, one options trader sees even more gains ahead. we'll brawn down the actions we'll brawn down the actions when "fast money" returns.fiden. this is my granddaughter... she's cute like her grandpa. voya doesn't just help me get to retirement they're with me all the way through it. come on, grandpa! later. got grandpa things to do. aw, grandpas are the best! well planned. well invested. well protected.
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welcome back to "fast money. the stock rallies more than 3% on the black of a bullish note, upgrading the stock to a buy karen, do you like lennar? >> i do. i like the space in general. i like that it was an interesting piece, spinning off some of their noncore assets, having they largest communities. they think they can lower the sg & a
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i look the whole space i do own home depot and lowe's as more of a related play, but i like this call. coming up. apple games this week has caught apple games this week has caught e eye of some options trader at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integas asset managers andices intfiduciaries, to outserve,s.. with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.
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welcome back here's a sneak peek. jim cramer is talking to the ceo of unity don't forget, you can have cramer delivered right to your inbox. sign up now with the info on your screen. check out apple dipping into the red in the close to close out today's session off, but still outperforming the broader sector belting more than a million dollars that apple is headed higher tony joins us to break down the action. >> that's exactly right. apple was active today, more than three times the average daily volume 3,042 contracts, 167 in the were
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purchased for about to put that trade into context, that is about a $1.3 million in premium being put on the line to bet that apple will be above $172 by next friday. that's a fairly bold short-term bet here for apple in what is arguably a challenging market. tune into the full show on friday up next, final trades. ♪♪ ♪♪ ♪♪
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time for the final trade tim? >> walgreens being treated like a covid sufferer here, less than ten times earnings, stock's very inexpensive. i like it. >> karen >> i loved mr. zimmer. i liked lyft it's down 14 of the last 15 days come on! lyft. >> it's at 40 right now. dan? >> come on, mel, american express. 190 to 150, it's buy week.
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come on. it's a little overdone guy? >> given the thematic of the show, my final trade should be pfizer, but it's not bristol-myers was up today bmy day two. thanks for watching "fast money" meantime, don't "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i want to help people save some money. my job is not just to entertain you, it's to educate, train, call me 1-800-743-cnbc you have tbe

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