Retail Rises As Holiday Shopping Intensifies… And President-Elect Trump’s FDA Pick Impact 11/25/24

Summary

CNBC's "Fast Money" Podcast Summary Episode: Retail Rises As Holiday Shopping Intensifies… And President-Elect Trump’s FDA Pick Impact
Release Date: November 25, 2024
Host: Melissa Lee
Location: NASDAQ Market Site, Times Square, New York City

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1. Retail Sector and Holiday Shopping Surge

As the holiday shopping season kicks off, the retail sector is experiencing significant gains. The Retail ETF (XRT) surged over 3.5% today, tallying a 12% increase this month. Key drivers include robust earnings reports from companies like Bath & Body Works, which surpassed expectations and raised guidance, as well as strong performances from Dollar Tree, Target, Kohl's, Best Buy, Nordstrom, and Dixons.

Tim Seymour ([02:21]):
"The overall sentiment around discretionary spending has remarkably changed... Post-election, there will be both relief for consumers and the expectation of more tax cuts. The market is betting on that."

Karen Feinerman ([03:30]):
"Valuations are so low that as this market rallies, people are looking for where there is still any kind of value."

This optimistic outlook is bolstered by the anticipation of holiday sales, with XRT having risen nearly 10% over the last three sessions. The panelists discuss whether this momentum will sustain through the year-end period, emphasizing the cyclical nature of retail performance during this season.

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2. Market Reaches Record Highs Amid Treasury Secretary Appointment

The broader market is celebrating record-breaking performances, with the Dow Jones Industrial Average closing 440 points higher, and both the S&P 500 and NASDAQ reaching new all-time highs. The Russell 2000 also hit an all-time high, up nearly 1.5%, marking its first record since 2021.

A significant catalyst for this surge is President-elect Trump's appointment of Scott Besant as the new Treasury Secretary. Besant, a hedge fund manager and founder of Key Square Group, is perceived as a moderating voice on fiscal policy, balancing potential tax cuts with deficit control.

Melissa Lee ([08:39]):
"The market seemingly rallying around President-elect Trump's decision for Treasury Secretary Scott Besant."

Tim Seymour ([09:25]):
"This headline is fantastic for markets at times when there's some fiscal calm. It suggests stability and potentially accommodative policies if the labor market weakens."

Stuart Kaiser ([12:47]):
"He's viewed as a market-friendly individual who understands macroeconomics and is likely less aggressive on tariffs."

The panelists agree that Besant's appointment is fostering a positive sentiment, potentially propelling the markets higher through the year's end.

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3. Interest Yields and Monetary Policy Implications

Interest yields have seen sharp movements, with the 10-year Treasury yield dropping over 14 basis points to 4.26%, partially attributed to Besant's nomination. This decline has significant implications for various sectors, particularly housing and homebuilders, which have benefited from lower borrowing costs.

Dan Nathan ([10:06]):
"You have high valuations and a relatively high EPS target. Despite this, sentiment remains pretty positive, making it a tough flow to fight against."

Steve Grasso ([07:31]):
"Scott Besant doesn't change the dynamic in the short run, but his appointment adds policy certainty that markets appreciate."

The discussion highlights how lower yields can stimulate economic activity by reducing borrowing costs, thereby supporting sectors sensitive to interest rates.

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4. Zoom’s Strong Performance and Potential Acquisition

Zoom Communications reported a robust Q3 Fiscal 2025 with earnings that beat both top and bottom line expectations. The company also raised its full-year guidance, citing strong enterprise customer revenue growth and increased operating margins. CEO Eric Wan emphasized Zoom's advancements in AI, positioning the platform as an "AI-first work platform."

Dan Nathan ([22:26]):
"With a quarter point of its market cap in cash and no debt, Zoom is an attractive takeover target. Its high gross margins combined with steady earnings growth make it a prime candidate for acquisition."

The panelists speculate that Zoom's strong financial position and strategic advancements could make it a target for larger tech acquisitions, drawing parallels to the Salesforce acquisition of Slack.

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5. Nvidia Faces Competition from Amazon in AI Chip Market

Shares of Nvidia experienced a significant drop of over 4%, its largest decline in nearly a month, following reports that Amazon is intensifying its efforts to compete in the AI chip market. Amazon aims to release a new chip approximately every 8 to 18 months, challenging Nvidia's dominant position.

Melissa Lee ([23:58]):
"Shares of Nvidia dropping more than 4% today, while Amazon is bringing new chips like Trainium to market, signaling increased competition."

Steve Grasso ([25:42]):
"Amazon, Microsoft, and Google, who are also significant customers for Nvidia, are turning into competitors by developing their own chips, potentially eroding Nvidia's revenue base."

The panelists discuss the implications of major clients becoming competitors, questioning whether Nvidia can maintain its pricing power and market dominance in the face of such developments.

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6. Housing Sector Boosted by Lower Yields and Treasury Pick

The housing sector is enjoying a day of strong gains as yields on the 10-year Treasury note fall, influenced by the appointment of Scott Besant. Homebuilders such as KB Home, Toll Brothers, D.R. Horton, and Lennar saw significant surges, along with home adjacent companies like Sherwin Williams, RH, Whirlpool, Williams-Sonoma, and Wayfair.

Steve Grasso ([28:44]):
"Toll Brothers has the best chart in the home builder space because their clients can pay cash, making them less sensitive to interest rate fluctuations."

Karen Feinerman ([29:18]):
"It's amazing how much this sector moves on a 20 basis point move in the 10-year Treasury yield, demonstrating the sensitivity of housing stocks to interest rates."

The discussion highlights the direct relationship between interest rates and housing demand, with lower yields making mortgages more affordable and stimulating home sales and construction.

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7. Health Care Sector and Trump's FDA Commissioner Pick

President-elect Trump's selection of Dr. Marty Makary as the new FDA Commissioner has provided a boost to the health care sector, particularly telehealth companies like hims and hers, which surged over 20% following the announcement.

Angelica Peebles ([31:35]):
"Makary is seen as a pro-science individual who supports innovation, which is positive for companies in the telehealth space."

Jared Holz ([32:55]):
"The selloff in health care was overdone. While there's uncertainty regarding compounded GLP1 products, overall sentiment should improve as Makary supports scientific advancement."

Panels discuss the implications of this appointment on biotech firms, compounded medication providers, and the broader health care landscape, suggesting potential policy shifts that could favor innovation and regulatory support.

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8. Airline Sector Thrives on Increased Europe Travel

The airline industry is experiencing heightened activity, especially with increased transatlantic travel. United Airlines is hitting fresh all-time highs, driven by expanded capacity to European destinations such as Palermo, Venice, and Nice. Industry demand is expected to reach unprecedented levels during the holiday season.

Phil LeBeau ([38:52]):
"Transatlantic seat numbers are surpassing those of 2018, and United is capitalizing on underserved markets to meet growing demand."

Tim Seymour ([41:19]):
"The consumer demand for overseas travel, along with competitive pricing, is benefiting airlines like Delta and United, which are offering more revenue per available seat mile than ever before."

The panel highlights how increased travel demand, particularly to Europe, is driving stock performance in major airlines, with Delta Air Lines and American Airlines also positioned to benefit despite some capacity reductions.

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9. Tesla’s Stock Under Scrutiny Following UBS Report

Tesla is under pressure as UBS reiterates its sell call, citing a substantial 40% rally since the election and concerns over the removal of federal EV tax credits. Despite this, UBS has raised Tesla's price target from $197 to $226, suggesting mixed sentiments.

Karen Feinerman ([43:31]):
"It's surprising that UBS continues to hold a bearish stance on Tesla despite the stock's performance."

Steve Grasso ([44:37]):
"UBS has never been positive on Tesla since 2014. Personally, I'd rather buy Tesla on dips than follow their sell recommendation."

Dan Nathan ([25:45]):
"Tesla's path to full self-driving remains technically challenging, and regulatory influences remain uncertain despite Elon Musk's ongoing innovations."

The discussion reflects skepticism towards UBS's bearish outlook, with panelists debating Tesla's valuation, growth prospects, and regulatory environment, ultimately suggesting a cautious but opportunistic approach to the stock.

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10. Final Trades and Market Sentiments

In the concluding segment, panelists share their individual trades and market outlooks:

• Tim Seymour ([45:56]): Endorses the Russell 2000 (IWM), highlighting its all-time high and favorable positioning.

• Dan Nathan ([46:12]): Advocates for Amazon, noting its recent pullback as a buying opportunity before potential price increases.

• Steve Grasso ([46:18]): Remains bullish on Applied Digital despite Nvidia's challenges, citing strong fundamentals.

Overall, the panel maintains an optimistic view of market momentum, driven by strong retail performance, beneficial policy appointments, and sector-specific gains, while acknowledging potential headwinds from increasing competition and regulatory uncertainties.

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Conclusion

The episode of CNBC's "Fast Money" provides a comprehensive analysis of current market dynamics, highlighting the resilience and growth opportunities within the retail, housing, health care, and airline sectors amidst favorable policy developments and strong consumer sentiment. However, it also underscores challenges such as intensified competition in the AI chip market and regulatory uncertainties in the health care and automotive industries. Viewers are advised to consider these multifaceted factors when making investment decisions as the markets approach year-end highs.

Notable Quotes:

• Tim Seymour ([02:21]): "The market is betting on that [consumer relief and tax cuts]."

• Dan Nathan ([22:26]): "Zoom is an attractive takeover target...making it a prime candidate for acquisition."

• Karen Feinerman ([43:31]): "UBS has never been positive on Tesla since 2014."

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For more insights and detailed analysis, visit CNBC's Fast Money at fastmoney.cnbc.com.

Transcript

[Melissa Lee]

This episode is brought to you by Merrill with a dedicated Merrill Advisor. You get a personalized plan for your financial goals and when plans change, Merrill's with you every step of the way. Go to ML.combullish to learn more. Merrill, a Bank of America company What would you like the power to do Investing Involves Risk Merrill Lynch, Pierce, Fenner and Smith Inc. Registered Broker Dealer Registered Investment Advisor Member.

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[Melissa Lee]

Live in the NASDAQ market site in the heart of New York City's Times Square. This is fast money. Here's what's on tap tonight. Record breaking rally, the Dow closing on new records. The S and P and Russell hitting new highs today too. We'll break down what is driving the slow grind upward and ask the traders how long the good vibes could last. Plus building gains, home builders and everything that goes into your home having a day as yields move sharply lower. Is this a rebound you can believe or is is it just smoke and mirrors? We will debate that and later. Airlines fly high. Is there a new driver fueling their climb? A speed bump for Tesla charged up move over the last month and why the president elects pick to have the FDA got the blood pumping in shares of hims. We'll explain that. Yes we will. I'm Melissa Lee county live from Studio B at the nasdaq. On the desk tonight, Tim Seymour, Karen Feinerman, Dan Nathan and Steve Grasso. We'll get to the market's record breaking day in just a moment. We want to start off with some major moves in retail just ahead of Black Friday and the kickoff to the holiday shopping season. Check out shares of the XRT, the retail ETF up over three and a half percent today, more than 12% already this month. Look at the moves today in Bath and Body works on an earnings beat and raise guidance. A host of other beaten down names also posting strong gains. The dollar stores five below even Target. And with a host of names, Kohl's, Best Buy, Nordstrom and Dix set to report. Is the sector set to finish out the year on a high note? Is a consumer going to show up.

[Tim Seymour]

The consumer showing up and the consumer showing up relative to what we thought the consumer was going to do. And I for one, was negative on discretionary for a while. And part of the breakout that we're seeing is really the XLI versus the XR team. You're seeing some outperformance even in some of the discretionary stuff. I think the expectations for a lot of names that we talk about regularly on the show, we've talked about the obvious ones like a Nike and a Lulu that have maybe some issues that these companies are dealing with. But the overall sentiment around discretionary spending, I think has remarkably changed. It's changed not only as the labor market has, I think, reinforced its strength and its stability, but also there are some sense that, you know, post election there will be both relief for consumers, there will be more tax cuts. Whether they happen or not. The market is betting on that. And I think as we look to this holiday season, there's no question that for the last really week to two weeks, I mean, that XRT move is almost 10% over the last three sessions. So I think it's going to continue. We all know the seasonal dynamics for the market that almost begins today and kind of goes to the day before New Year's. It's, you know, everyone's got these stats. So I do think it's a case where buying retail, buying the parts of the economy that show cyclicality are places to be.

[Karen Feinerman]

So I think a few things happen in retail. One, I think, remember these, these numbers are just for the quarter that's likely ended October 31st. Right. So I think there's even more good news to come because we've had the. Regardless of how you felt about the election, it's over.

[Melissa Lee]

Yeah.

[Karen Feinerman]

So there's certainty there. That is a good thing. The stock market is up and so you have people feeling wealthier. And so I think that the valuations are so low that as this market rallies, people are looking for where is there still any kind of value? And so that's sort of another thing driving it. On the flip side, though, I do think that what happened to Target with this issue of how do we get more goods in? Because we don't know what we're going to have to pay for them next year. That, to me is sort of one fly in the ointment.

[Melissa Lee]

Right. But Oppenheimer is making the case that, you know, you look through that and that the valuation for Target at this point is so compelling. Target, Target.

[Karen Feinerman]

The Target Walmart dichotomy divergence rather. And I realize, you know, Walmart has just been crushing it and it's vastly bigger and has all kinds of advantages and food and all of that. However, at 14 times versus 35 times, I don't think it has been this wide in at least five years.

[Dan Nathan]

Yeah, I'd say Amazon is kind of interesting to me. They have that Black Friday NFL game. They obviously have NBA. I just think that's a really like interesting way to kind of program a little bit live programming. It's on Friday. A lot of people go to the malls or go to you know like the bricks and mortar sort of stores. And if you love football and you like the idea of not waiting in lines and elbowing people for, you know, whatever Beanie Babies and the like, you know, you could sit there on your.

[Steve Grasso]

Phone and just dated yourself slightly.

[Dan Nathan]

So when you think about, when you think about after earnings, stock had a big gap. It kept on going. Retail is doing well. AWS had kind of inflected a little bit off the lows. And I just think that this was one that might power into year end. I think that's how you set it up a little bit. And so the stock got up to about 215. It came back to $200. I'll bet you see this thing making new highs at some point next week.

[Steve Grasso]

I don't like the catch up trade obviously. Target sort of gave us that catch up trade summary that you can't really buy something just because it's underperformed. So to rip through these charts, Wal Mart, Costco, tjx, Burlington, jw, those are the charts that are worth buying. Those are the most consistent charts if you want to buy.

[Melissa Lee]

Consistent in what way? I mean you can. We just showed a chart of Wal Mart. Here's Costco. They look consistent to me.

[Steve Grasso]

Yes, I saw. Yeah, those are, those are the ones I would buy. I would buy, I would buy.

[Melissa Lee]

The winners are just going higher.

[Steve Grasso]

The ones that have proven that they have efficiency, they can handle the supply.

[Melissa Lee]

Despite valuation.

[Steve Grasso]

Despite valuation. At this point you can get the once off bounce. Like we said today at the opening, Target had a bounce. But look at where Target came from and fell into the abyss. So you probably will die a lot by trying for a one day bounce.

[Tim Seymour]

What's interesting is if you look at the crosscurrents today of the news around the new Treasury Secretary and or at least the, the appointment of a new treasury secretary along with just the reality of what stocks have been working and what stocks have not been working. So dollar stores Five below anything related to a place where more, more tariffs on China would be certainly destructive and detrimental to already beleaguered franchises that were suffering under the weight of inflation. If you look at the retail sales number numbers we got about 10 days ago, you had weakness in furniture sales, you had weakness across some parts of the apparel, but you had a lot of strength in places like electronics. So a Best Buy, which I think will continue to go higher, that read into this holiday season, it's not even about a refresh of iPhone. So I think there are pockets in here. It's a combination of the things that I think were really left for dead. And then there are even the names like Diageo or Estee Lauder or even Ulta where people have questioned whether certain parts of the either, whether it's that beauty trade, whether it's the China relationship to the beauty trade. I just think there are opportunities in places that continue to get knocked down time after time on the same news and what had already been priced in.

[Dan Nathan]

You know it's interesting to me that you mentioned Best Buy. That one is probably like the kind of one that has got everything tied into it, right. When you think about tariffs, like that would be one that would be really bad. If you think about last quarter, the Stock gapped up 14% after its results. It filled in the entire gap. It came all the way back in. So when you say you think it should continue to go higher, it has to get over the sentiment in and around tariffs. Right. And then you need a very healthy consumer to be buying this sort of high dollar consumer electronics. So that one to me is like the most interesting about what they have to say about the consumer. And they're already a month into this kind of holiday selling season.

[Steve Grasso]

If you look at Wal Mart though, can leverage, leverage the China trade better than Wal Mart?

[Dan Nathan]

No.

[Steve Grasso]

1 because they have China eat that side of the equation, they can keep their prices low and their suppliers are so reliant on them that they have the leverage.

[Karen Feinerman]

It bodes well for Amazon even though we don't really think about it as much. We always talk about the cloud business and that retail business which had really started to show some real margin improvement. That's is it the hidden gem of Amazon, the giant retail business? Maybe not so hidden, but I think it's interesting.

[Melissa Lee]

Now let's get to the record setting day for stocks. The Dow closing at a new high, up 440 points today. Meantime, the S and P set an all time high during today's session. The Nasdaq picking up 51 points is now just under 2% from its all time high. Small caps also seeing a milestone. The Russell 2000 hitting an all time high today, up almost 6% in just the last week. The index setting its first record high since 2021. The market seemingly rallying around President elect Trump's decision for Treasury Secretary hedge fund manager Scott Besant. He is the founder of Key Square Group and has a strong reputation on Wall Street. So is today's move in part because Trump made a conventional pick for Treasury? Should this be another trigger to keep markets grinding higher through year end? He is seen as a moderating voice when it comes to spending. When it comes to China tariffs as you had mentioned.

[Tim Seymour]

I think so. I think that's what the market did today because I also see some of the parts of the where investors have been playing defense, whether it's gold or bitcoin, whether they've been selling yields. I mean Scott Besson doesn't change the dynamic and the trajectory of the deficit right now. Excuse me, in the short run, but I do think that's that type of a headline is fantastic for markets at times when you know that there's some, you sense that there's some fiscal comment, you know that the Fed is largely sidelined and if anything will be ready to do something if labor markets truly weaken. So this headline was very important for the global macro, was a bigger move today and I would be, as folks know, I think you're buying this weakness in gold. I don't think there's any, any, anything that can change in the short to medium term with that.

[Dan Nathan]

Yeah, I think the most interesting thing that happened today was actually yields moving back. You saw the 210 spread re invert and it's kind of interesting. So is the 10 year reflective of future growth? You know, you just mentioned the potential for weakness in the jobs market. That would be the one thing we can all agree, especially as expectations for cuts has been pulled back a little bit. What is the 10 year telling us versus what the two year is? Right. So the two year much more closely tied to Fed funds. We have another Fed meeting, you know, in a couple of weeks, I guess about a month or so. And so to me it seems like the jury is still out on what the Fed's going to do and then how this new treasury is going to work with and I know they're not supposed to exactly, but how does Besson work with a Fed chair Powell and what does that mean for monetary policy for 2025?

[Steve Grasso]

He's going to be the shadow Fed chair.

[Karen Feinerman]

Yeah.

[Steve Grasso]

So that's that we know where he's going ultimately. So he's pro crypto, he's actually pro tariffs. So when you look at that, a lot of the moderating talk, he's actually was the, was at the forefront of tariffs.

[Melissa Lee]

So he said that he wants to layer tariffs in, that it's not going to be full throttle and there'll be, this is a maximalist position, bargaining position, not exact quote, but roughly.

[Steve Grasso]

And he wants, he wants offsets that no one has talked about. We've talked about inflation and we've talked about lowering taxes or keeping them low, but we haven't talking about, we haven't spoken about the offsets of the tariffs, what they'll, what they'll prove to be.

[Karen Feinerman]

So to me, the harder the shadow Fed, which I don't like the idea of that is if the economy does improve and you know, starts really heating up, it's really going to be hard for the Fed under Powell to be in a, in an easing cycle.

[Stuart Kaiser]

Right.

[Karen Feinerman]

Why do you need to do that? And so there's sort of the rub. But I think to me the 10 year represents inflationary fears and some of a better economy.

[Tim Seymour]

What are we talking about? Shadow Fed? Can someone explain this?

[Steve Grasso]

That he's eventually going to be the Fed chair, so they're putting him in as treasury and then when Powell steps down or when he's done with his term, that's going to be the Fed chair?

[Tim Seymour]

Well, maybe again, I think there's a lot to be and there's a lot of discussion that happens to be the conversation that was going around today. But I think, I think Scott Bessett did a great job on his first chance to job on the market. I give him an A plus. In other words, everything he said was, hey, we can see some tax cuts and yet at the same time we can be focused on the deficit like he said, everything. And I think that's easier said than done. But I think the market needs to be careful about assuming that some of the same hazards that were out there are not still, still out there.

[Melissa Lee]

Right. Let's bring in Stuart Kaiser, Citi's head of Equity trading strategy, for his take on all of this. Stu, great to have you with us. Great to see you in person. What do you make of this pick? Does it change your calculus in terms of how you view the markets?

[Stuart Kaiser]

I don't think it changes your base case that much. You know, I think to all your point, the benefit from him is he's viewed as a little more mainstream, you know, little kind of right down the middle. If you look at the Trump appointments to date, you know, it was when the markets didn't like it. It was when things like the Attorney General nomination were kind of a little bit, a little bit outside of the center lane. So, you know, we'll see what the ultimate policy ends up being. But I think he's viewed as a market friendly, B really understands macroeconomics and see probably a little less aggressive on tariffs than kind of the worst, you know, worst outcome. So. So, you know, if markets like it, so I'm a markets guy, I guess it's the right choice.

[Melissa Lee]

What are we seeing here in terms of the markets grind higher? I mean, is this a pull forward of seasonality or is this going to continue through the next year? I mean, we have the highest, the Highest S&P 500 target is 7,000 for next year. Not bad.

[Stuart Kaiser]

It's a big number. You know, look, is it a pull forward of seasonality? Maybe a bit. I think, I think markets want to go higher here. I mean, if you think of, you know, Fed is in cutting mode, you know, jobs data holding in fairly well, earnings season was okay, you know, not bad, not good. I think, you know, big picture there, markets do want to rally into year end and I think if you take the hurdles or roadblocks out of the way, they're going to do that. And I think that's kind of what you saw last week and then into early this week. It's going to be also a pretty low liquidity week as well. So probably momentum rules the day, at least tactically.

[Steve Grasso]

So, Stuart, the first term that we had with, with Trump back in 2016, everyone thought energy was going to run. Energy sold off. So it was counterintuitive. Are there any sectors that are counterintuitive right now that you think are the dark horse to actually run?

[Stuart Kaiser]

Well, look, I think, you know, energy and health care, I think coming into the election were the two that we would have said are kind of more of a mixed bag. You know, I think a lot of folks thought, oh, Democrats are good for health care, Trump is good for energy. But to your point, you know, if you want to drill, you're pushing oil prices down and that can be bad for the diversified. So I think you have to go below the sector level in energy. I think the same is probably true in health care as well. I mean, people are really struggling with the health care sector right now. You know, how do you deal with The RFK nomination vis a vis also potentially an M and A cycle which kind of hits, hits biotech and mid cap. So I think those are the two sectors right now where there's the most at play. The cleanest sector has been banks. You know, clearly we just have to go beyond that. I think if there's one sector maybe people a little bit concerned about from a tariff perspective, maybe more your retailers and those folks. So if you got maybe less negative tariff headlines, maybe you get a little bit of a bid in there. We'll see. I mean our analysts did a lot of surveying around the holiday season. They think it'd be a pretty strong holiday season to begin with. So yeah, again health care and energy to me are the two biggest wild cards from a sector perspective in terms.

[Melissa Lee]

Of those wildcards though, I mean, does it offer the most reward to the upside at least? I mean it has perhaps the greatest risks, but are the rewards seem to be there?

[Stuart Kaiser]

Yeah, I mean health care has been such a challenge, you know, for the last 12 to 18 months, but that is clearly from a sector perspective where the most negative views are right now. So yeah, I think if you were to get, you know, a little bit of M and A in the space, you can kind of add a little bit of evaluation premium into the SMID part of health care and perhaps if the outcomes at the top level are a little bit, you know, better than expected, you know, that is an area that should work. But look, we were wrong on health care earlier this year when you had mid teens earnings growth and a nice ozempic on the theme going on as well. I think that's an area where expectations are low and you could get the most sentiment relief based on a place on policy.

[Karen Feinerman]

So start going back to tariffs for a minute. What would be, is 30% sort of an acceptable amount? Where, where do we hope to get.

[Stuart Kaiser]

To, you know, acceptable amounts of tough one? I think probably the base case right now, if you asked an economist, they're probably at least putting a 10% tariff across the board as like a baseline or a baseline scenario. So look, anything above that I guess is probably going to be a little bit incrementally negative for the growth forecast. You know this, it's tough, especially for Fed watchers right now. The Fed has been very explicit. We're not going to include those in our forecast unless they're announced and implemented. That might not happen till mid next year. The Fed's going to release a new ACP in December which is not going to reflect any tariff Outlook. So I think it adds a lot of policy uncertainty. But Look, I think 10% is probably the baseline for most people. Above that, you know, beyond that, probably incrementally negative. The question is, what do they do with China? You know, I've heard numbers in the 50 to 60, 60% range there. So look, I think 10% baseline, anything above that, probably incrementally negative.

[Tim Seymour]

So based on this, markets complacent. I mean, it's. I don't hear anything other than China risk and tariffs getting too big to stop you from getting to your 7,000 at some point. But positioning right now tells me people are also underweight and complacency is very low.

[Stuart Kaiser]

Yeah, I would say. Look, I think valuation is quite high. I think the 2025 EPS bogey is pretty extended, you could argue. I think people will defend that EPS number by saying Trump is a positive growth impulse. So we'll kind of leave it there. But look, you have high valuation, you have a relatively high bogey on eps. And to your point, sentiment is pretty positive. So although set up for, you know, a bit of a tricky risk reward environment, we've seen a lot of inflows into mutual funds and ETFs, which suggest to me retail is also kind of getting involved here in the market. That is a really tough flow to fight, a flow to fight against. So, you know, for that reason, I think tactically to your end, you have to respect the momentum of it. I think, you know, the election had three phases. It was the election itself. Now we're talking about policy. Next year's about policy implementation. And I think that's when a lot of these kind of real challenges will come up. But I think we're hopefully pretty clear into January.

[Melissa Lee]

Stuart, thanks. Good to see you. Happy Thanksgiving. Stuart Kaiser. Volatility is low too, though.

[Dan Nathan]

Yeah, 15. I mean, one of the things, and Tim just mentioned complacency, you could take that side of it. And then I go back to 1995 through 1999, and we had a whole host of ingredients that are not too different than right now. You had this kind of technology that no one knew what it was going to do, but it infected the stock market. We had five consecutive years of probably 25% gains. So here we are. Right now, we have two consecutive years with 25% gains. If this, you know, AI trade starts to spread out a little bit, I suspect that the next part of the trade is how it works. What are the use cases with other industries? Right. Not just with the picks and shovels the semiconductors and some of the names that are doing the models and the hyperscalers, that sort of thing. So if you start realizing greater use cases and more productivity, that will cause the multiple and the S and P outside of the Mag 7 to grow. And maybe that's how you continue to go. I'm not saying that's exactly my view, but I keep hearing that.

[Melissa Lee]

All right, coming up, we're watching Zoom after our shares on the move after reporting results in numbers from that quarter next and shares of Nvidia getting hit today as a new player gets into the chip space, the powerhouse name giving the semi giant a run for its money ahead. Don't go anywhere. More fast money into slowing growth, geopolitical uncertainty, shareholder unrest in an increasingly complex world, today's business leaders must consider their strategy from every dimension. Creating long term value requires ambitious and achievable strategies enabled by the right experience, tools and capabilities to prepare for the journey ahead. Powered by 10,000 strategists, EY Parthenon works with you to see opportunities from every angle and execute on that vision. Learn [e-mail] us ey Parthenon Every day, thousands of Comcast engineers and technologists put people at the heart of everything they create.

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To approach work differently after becoming a father with two teenage boys at home, Kunle thinks about the generation that he is building technology for. This continues to inspire him and his team to build a fast and reliable in home wi fi solution for millions of families like his so everyone can work, learn and play together under one roof. Learn [e-mail] waiting for dinner? Spice things up with Golden Nugget Online Casino. With hundreds of the hottest games, Golden Nugget lets you live it up in your downtime on classics like Cleopatra or exclusive games only found on Golden Nugget Online Casino. Forget about waiting. Golden Nugget keeps the action rolling while your dinner simmers. New players can get $50 instantly in casino credits. All you have to do is Sign up with code FAST MONEY and deposit just $5 to get 50 in casino credits. Make any moment golden gambling problem. Call 1-800-GAMBLER or in West Virginia. Visit www.1-800gambler.net Please play responsibly 21 + physically present in Michigan, New Jersey, Pennsylvania and West Virginia Only void in Ontario 1 per new customer minimum $5 deposit max 50 do issued in non withdrawable casino credits that expire in 168 hours. See [e-mail] welcome. Welcome back to Fast Money. Zoom volatile in the after hours session on its Q3 report, the video platform beating street estimates. The conference call kicked off at the top of the hour. CNBC's Julia Boorson's got all the details. Hey, Julia. Melissa. Zooms Fiscal Q3 2025 Earnings beating expectations on the top and bottom lines on stronger enterprise customer revenues than anticipated and a higher operating margin than expected. The company also raising its guidance for full fiscal 2025, projecting strong demand as it expands its product portfolio and has struck some new enterprise deals. The company CEO Eric Wan saying the company this quarter announced major milestones around AI, including AI customization for different industries, all of which he thinks will help turn Zoom into an AI first work platform. The company also increasing its stock repurchase authorization by 1.2 billion, which means there's an approximately $2 billion worth remaining to be repurchased. And there's also a name change, a small one. Now instead of being called Zoom Video Communications, it's just Zoom Communications. Melissa, stop the presses. All right, Julia, thank you. Julia Boorstin. Gotta go to Dan on this. Zoom is the Z in his zebra trade. Of course, everybody knows that.

[Dan Nathan]

Well, it's the Z and the zebra trade for a couple of reasons. The main one is that a quarter percent of its market cap is in cash. They have no debt to me, under a different regulatory environment, this stock, this company is going to get taken over. Okay. When you think about it, you know, it's a 77% gross margin company that's not growing earnings or sales low single digits. You bolt this on to another product or set of services and then all of a sudden you see a more profitable sort of company. You take a whole host of cost out of that thing, especially if they're adding on some, you know, AI capabilities. I had a zoom I2 zooms today. I don't know how many of you guys. I still have Zooms and they're actually adding a bunch of functionality. So it kind of reminds me a little bit of slack when that thing got taken out by Salesforce. I think there's no shortage of bidders for this, this asset and especially when you consider all that cash in the balance.

[Melissa Lee]

Are you telling me about financial advisors who use Zoom? They have a meeting with a client and then deliver and then it delivers.

[Dan Nathan]

Josh Brown told me this. They are using this sort of technology and it's saving their advisors a lot of time. I thought it was really interesting.

[Tim Seymour]

Yeah, yeah, that's true. It is, it is, I think the platform of choice. It is a case where teams at times had some issues. And I think it really just gets back to what do you want to pay for this company? Because, yeah, going into these numbers and they have outperformed the IGV since their last numbers back in July and it's had a big run. But this is a company that's growing its top line 3 to 4%. What do you want to pay for it? Right now you can see those numbers on the forward. It's probably 16 times, but that. And what's going on with Meme stocks? It kind of feels like it's 2021 again.

[Melissa Lee]

All right. Shares of Nvidia dropping more than 4% today, its biggest drop in almost a month, while Amazon closed up more than 2%. This comes after Bloomberg reported that Amazon is coming after Nvidia's dominance as a leading AI chip maker. The report noting that Amazon aims to bring a new chip to market every 8, 18 months. It's not exactly new, but the Bloomberg report did have a lot of details about Trainium, had a lot about who is the head of train. I mean, just a lot of details saying that all of these guys, Google, Microsoft, they're all working on their own chips. Sort of just underscoring this notion that, you know, the moat is not as big as you think for Nvidia.

[Karen Feinerman]

Well, this was interesting because this was out, I don't know, early this morning or late last night. And so the stock opened down a little, but then just continue to trade down the rest of the day. And it seemed like, I don't know, it was a bit of a rotation out of some of the mag seven actually. Right. You saw Netflix and I think Meta did very meh or meh meh meh as you would say it. So I think it was sort of that. We've known that for a while, as you said. I think it's just sort of a rotation way even named like Dell, which you think wouldn't necessarily be negatively affected down. It was started up looking up two or three bucks and opened down. So I don't know what to make of it, but I don't think the story has changed dramatically.

[Steve Grasso]

Well, this is the problem because when you think about the biggest competition, you think amd, you think the other chip companies. And then when you look at Amazon, Microsoft, Google, they're 40% of Nvidia's revenue. So you have your largest clients as your largest competitors. It's theirs to lose. It seems like it's being chipped away at. Is this as good as it gets? Is this, is this as good as it gets?

[Tim Seymour]

Do you mean possibly?

[Dan Nathan]

I didn't. Okay.

[Steve Grasso]

It was nice though, right?

[Melissa Lee]

Just comedy, right?

[Steve Grasso]

That's the difference. It happens fast. That's organic, Right.

[Dan Nathan]

I think this coupled with the guidance that they gave it was a perfectly good quarter, last quarter and the guidance and that sort of thing. I just think that when you start having a second source, which they don't really have with amd, but to Steve's point, you have all these customers and we've been talking about this for months and months and months, but then you start thinking about, okay, what's the transition to Blackwell look like? What are the margins going to be? Because they had this crazy pricing pressure like they own the market. So if some of their big customers are developing their own, it's just going to give them less pricing power. I know you're looking at me currently.

[Karen Feinerman]

Well, I don't know what you're referring. If you're referring to the black margins being down, what I'm telling you is.

[Dan Nathan]

That we already talked about the margin. The transition is going to slower them, but then the margin going to go down if their own customers are developing their own chips because they're not going to be able to charge as much to the other customers because they're all doing the same sort of thing. So to me, that's why the story has the potential to underperform relative to some of these other stories. You know, I mean, so, you know, I've been saying that for a few.

[Tim Seymour]

Quarters, but I feel like we're getting a half at it right there a little bit.

[Dan Nathan]

But I will tell you this. If you looked at a log chart and you want to go back six years, this thing is sitting on this long term uptrend. And from a purely technical standpoint, that could also be what's going on with the coming up.

[Melissa Lee]

Housing getting hyped, builders in the green. As investors digest President elect Trump's pick for next treasury secretary. How the rate move is impacting that trade and all the names linked to your home. And speaking of the new administration, biotech getting a bump as investors digest Trump's pick for FDA commissioner. Our pharma and health care will hold up. That's ahead. You're watching Fast Money live from the NASDAQ market site in Times Square. Back right after this.

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[Melissa Lee]

Welcome back to Fast Money. The yield in the 10 year dropping over 14 basis points, falling to 4.26%. The drop being attributed in part to President elect Trump picking Scott Besant to be the next Treasury Secretary. He's thought to be focused on lowering taxes and lowering the deficit. Housing stocks getting a big boost today. Homebuilders like KB Home, Toll Brothers, Dear Horton and Lennar all surging the home adjacent names also catching a bid. Names like Sherwin Williams, RH Whirlpool, Williams, Sonoma, Wayfair, all big winners as well today. Steve, what do you make of this move?

[Steve Grasso]

Well, everyone's hoping that these interest rates eventually come down to a point where we can sell some existing homes instead of new homes. But when you look at Toll Brothers, that chart is the best chart in the, in the home builder space. And think about why. Because that client can pay cash. If you could pay cash, you don't care where the 30 years. So you'll outlay the money and you'll figure it out somewhere down the line or refinance it. But you could get bounces in all the other ones. If you look at that singular chart, it's the best looking chart in the space in my opinion.

[Melissa Lee]

Opinion it is amazing how much this sector, the subsector whips around on a 20 basis point move in the 10 year treasury yield.

[Karen Feinerman]

I know we saw that happen before briefly and before you knew it, that whole, you know, I guess it was a 50 basis point cut. Very shortly after rates were right back up. So I feel like this was a, we need to see a little more sustained for, I mean, months. Yeah, I think to really start to get existing supply coming back in the market.

[Tim Seymour]

But there are places that, that I don't think were just about Scott Besson today. I mean look at Home Depot. All time highs, all time highs at Home Depot quietly. And this is where we're not necessarily getting an avalanche of HELOC issuance, etc. Etc. So it speaks to the consumer, it speaks to markets at all time highs. It speaks to the wealth effect from the housing sector and I think it goes higher.

[Melissa Lee]

Coming up, hims and her surging today as investors digest Trump's pick to run the fda. Why the new chief background could mean big things for the telehealth stock. Mizzou host Jared Holtz joins us next to dig into the details. And if it could mean even more outsized moves for the sector, don't go anywhere. Back into welcome back to FAST MONEY Stocks starting the week in the green, The Dow jumping 440 points, the S&P 500 and NASDAQ both up about 3.10of a percent. The S&P now on a six day winning streak in the Russell 2000 hitting an all time high, up nearly one and a half percent. Energy getting hit today. Crude falling more than 3%. The XLE the worst performing sector in the S and P down 2%. Shares of Supermicro surging nearly 16% today. Still trying to bounce back from the huge sell off following its announcement earlier this month that its auditor resigned. UnitedHealth the biggest contributor to the Dow's rally today, the insurer scoring a win in court over the Centers for Medicare and Medicaid Services arguing regulators unfairly ding their Medicare Advantage star ratings over one customer support phone call. Humana and cvs. Also higher on that news, the IBB Biotech ETF seeing its best day since the election with investors seemingly cheering on President elect Trump's pick for FDA commissioner, Dr. Marty Makari. Telehealth provider hims and hers also jumping more than 20% to an all time high on this nomination. Angelica Peebles is here to explain.

[Angelica Peebles]

Angelica yeah, Melissa McCary is seen as a safe choice. Yes, he's been seen as critical of the FDA and some of the pandemic policies, but he's also a respected surgeon at Johns Hopkins and he's seen as someone who supports science. And even though he did oppose COVID vaccine mandates and widespread use of boosters, he's not broadly against immunization, Moderna, Pfizer and other vaccine makers. That took a hit after RFK Jr. S nomination for HHS secretary gaining today. And it's somewhat surprising to see those moves because Trump's pick to lead the CDC physician and former Florida Congressman Dave Weldon is much more skeptical of vaccines. Now one area to watch will be how Makary approaches compounding of GLP ones, of course, that if he's confirmed. Makary is the chief medical officer at Sesame. That's a telehealth company that sells compounded semaglutide, similar to companies like HIMSS and Life md. The FDA hasn't been all that aggressive against the booming industry so far and it looked like that would change once Tirzepatide came off the shortage list. That's already a question mark, remember, if with the FDA in court over that issue and now potentially an ally at the fda.

[Melissa Lee]

Melissa Angelica, thank you. Angelica Peebles. Let's get more with Jared Holz, health care strategist at Mizuho. Jared, great to see you in person. Does this change anything when it comes to your view of compounded GLP1?

[Jared Holz]

Not really. I still think this is going to be a push pull for a number of years, whether it's, you know, administrative additions that we're seeing on a daily basis or whether it's, you know, what comes out of Lilianovo with respect to manufacturing and the supply chain, things of that nature. So it doesn't change it a lot. But I'm, I don't think we should be surprised at the volatility as it relates to who's appointed in the administration, who's in and who's out because it's having such a profound impact on all these stocks.

[Melissa Lee]

So we have a much fuller picture now of who's where within HHS and its various agencies for the stocks. Can you now say, can we now say that the selloff was overdone? Was it warranted? Where do you stand?

[Jared Holz]

Yes, I think it was overdone for sure. There's a lot we don't know about exactly what practices are going to be put in place by whom and when. It does seem that there was a lot of shooting first as far as what we initially thought with respect to, you know, the various nominees that we heard last week. But now I think we can kind of breathe a sigh of relief that there are, you know, some of the personnel changes that are going to be taking place are more pro science, pro innovation. I think big picture. When we look at the Doge team, even though they're looking to reduce costs across the board, at least they've got Vivek in there who, you know, made his fortune off of biotech, which I think when you take a step back and, you know, consider everything, that's a big win.

[Dan Nathan]

Jared, you just talked about the sell offs being overdone. So it's Lilly, it's Nova. Why do you think Novo acts so poorly relative To Lilly. Lilly's still up 30% of the year. Novos round trip the entire move. No, a little cheaper but lower growth.

[Jared Holz]

Yeah, totally. It's been a fascinating stock. It's basically flat on the year, right? I think two things. One, they're kind of alluding to teens growth for next year and I think the street was looking for 20 or above. So I think the reality is they're not going to be growing as fast as we thought. Maybe that's conservative, maybe not. But a sub 20% growth number for next year I think is a big deal just in light of how well the stock had performed to date. And then secondly, they've dropped the ball on the oral, I think as investors look at it now. I think if you talk to the company, they're probably more positive behind the scenes. But you need an oral GLP or an oral weight loss drug, I think in order to compete big picture. And it doesn't seem like they have the best option. So I think those two reasons, Jared.

[Tim Seymour]

To strip away the elections. And I think we've all said one way or the other that there was an extreme move and we have to reassess. And you can already see that in the IBP it's 6% off of after a 12% straight down. But imagine it's before elections, before we knew any of this. As you're looking at either the vaccine makers or you're looking at traditional biotech, or you're looking at, call it the, the fully integrated kind of big cap pharma names. Where do you want to be? Because we were starting to see laggards like Bristol Myers really start to outperform. We're starting to see Novo and Lilly really pull back. Are these trends alive and well still now that we strip all this away?

[Jared Holz]

I think you've got to look at Lily Novo first as big winners that have really come in, I think on two things. One, the quarters weren't great.

[Stuart Kaiser]

Right.

[Jared Holz]

You need to blow people away in order for the stocks to go up. They did not do that. And now we've got this uncertainty politically. I think at the end of the day it's going to be fine. The demand curve is still pretty amazing and they'll do well. I like commercial biotech companies that are either close to market or on market with assets that pharma may be interested in at some point. I think the M and A trade in this space is very, very alive.

[Tim Seymour]

And well in a couple of days.

[Jared Holz]

Alive and well and will probably pick up. And I think a Lot of investors are very keen to it. I think those are where I would go first. And then you can kind of go down the cap structure probably into next year.

[Karen Feinerman]

Viking Therapeutics, is that solidly in there, exactly what you just described. I mean it's had since the election a pretty difficult go. Do you think things have changed?

[Jared Holz]

Yeah, this GLP1 trade has been really fascinating. Right. It went from euphoric and now no one wants to touch it because of what RFK and others might want to do in terms of preventative medicine and some of the rhetoric along the lines of being not so pro this space, I think we have to take that into consideration. I think the issue with Viking I think is pretty simple. I think most investors believe the only way that they can be successful is if they are acquired. That the business is too difficult, too expensive to run alone. So unless you get that headline that they are taken out, it's going to be a difficult run. That being said, there is going to be data through the next year or so that could, you know, kind of reinvigorate it a bit.

[Melissa Lee]

I like the comment that you made in one of your notes recently about all these appointees being anti GLP one that you know, you can't just change nutrition and America will not be obese anymore. I mean it doesn't happen like that. It has never happened like that and it won't.

[Jared Holz]

I think they've tried. I mean, I mean the entire world is organic food, this, that and you know, obviously every day the obesity numbers get higher. So I feel like that's a long road.

[Melissa Lee]

Yeah. Jared, good to see you. Thank you. Jared Holtz.

[Jared Holz]

Thank you.

[Melissa Lee]

Where do you find value in health?

[Steve Grasso]

Well, when you most people are not don't have the wealth of knowledge that Jared has. So when you look at the xpi, the small cap biotech index year to date is up over 9%. When you look at the IBI, the larger cap biotech index, it's up 3%, 3 to 1 outperformance. I stay with the XPI.

[Melissa Lee]

Coming up, Tesla losing charge as one Wall street firm doubles down on its call to sell the stock. But upping their price target on the name. We'll discuss that ahead. But first going to Europe airline. Sure hope you are what the big boost in overseas travel means for the sector. Back in two. Welcome back to Fast Money Booking holdings and United Airlines hitting fresh all time highs as the holiday travel season heats up with big demand for a new choice destination Europe. Our Phil Lebow is here now with the travel Trade. Hey, Phil.

[J]

Hey, Melissa. You know, Europe is key to the growth that United has experienced over the last year and is expecting in the fourth quarter. Lake, take a look at this. These are the numbers of seats for all airlines, not just the US Airlines, but European airlines as well. We are now above the levels that we saw in terms of transatlantic seats back in 2018. Yes, fractionally lower compared to last year. But this year it's going to be over 6.5 million. And when you look at United, its capacity on Transatlantic flights up 4.9% compared to last year by targeting markets like Palermo, Venice, Nice, underserved to a certain extent and realizing there's great demand for those markets. By the way, United says this will be the busiest holiday season it has ever experienced. And really this is going to be the busiest Thanksgiving that we've seen in the United States ever. In terms of the number of people flying. It is expected that 31 million people will be flying during Thanksgiving week. And that's basically November 22nd to December 2nd. And by the way, we are on pace as an industry in the United States to eclipse the average daily number of passengers for in 2024. That will pass what we saw last year in 2023. Now, there are a few airlines that have trimmed or outright cut their capacity to Europe. Delta has trimmed it a little bit. American, we know, we've talked about the capacity issues there for some time. They needed to do this. They're down 15% year over year. And JetBlue, they've not only got some issues reworking their routes, but they've also got issues with geared turbofan engines and aircraft supply. Put that all together. As you take a look at these stocks and you say to yourself, okay, will there be some growth for these guys? Will they start adding Europe in the future? Ed Bastian has been very clear, Melissa. He will go and add more routes to Europe when he believes it's the right time. He's comfortable with where they're at right now. But there's no doubt transatlantic travel has been a real boon for United Airlines last year and this year and they plan to ride that out here for some time.

[Melissa Lee]

All right, Phil, thank you. Phil LeBeau, what else is helping the demand for Europe? The Euro, it actually rallied today, but it hit a two year low against the dollar just on Friday. So the calls for parity against the dollar are growing louder and louder. As Rebecca Patterson mentioned last week, Tim, you know firsthand the pain associated with wanting to go to Europe.

[Tim Seymour]

Yeah, I won't. You know, my Family doesn't watch the show anyway. So I'll just say this. I'm not psyched to be going to Europe, but there's everyone else in my house is. And if you look at what the hotel and lodging looks like, it doesn't look so bad. When you look at what you're flying to go to Switzerland, you're actually shocked because it's not the ultra first class that you're getting for what seems like ultra first class money. So that's great for Delta Airlines, that's great for United, that's great for those carriers. Remember when we were talking about both front of the bus and business travel? We're talking about international, I'm talking about COVID We're at a place now where the airlines are now starting to be valued, normalized on where I think they were in 2017, 2018. And I think they're going through that because again, these are companies that are getting more revenue per available seat miles than they ever have. Delta right now is growing 15% EPS at a 10 time multiple. That's a better PEG ratio than Google. And I realize they're apples and oranges, but people are looking for companies that have decent growth at a decent price.

[Steve Grasso]

And also look at the, look at the hotel names as well.

[Stuart Kaiser]

Right.

[Steve Grasso]

But when you, when you think about Europe, you think about international. The most lever to that success is United. And then the second most levered is American. But American has too much debt, so Delta slips in on that one. But look at the hotel names as well.

[Melissa Lee]

Off the charts coming up, staying unplugged. Why? Analysts at one Wall street firm are doubling down on their bearish Tesla call. And if you should change lanes on that trade, more fast money into. Welcome back to Fast Money. Time to sell Tesla. Analysts at UBS think so. The firm reiterating its sell call on the EV maker, citing the 40% rally since the election saying the removal of the EV tax credit could hurt Tesla more than expected. UBS also upping their price target from 197 to 226. The thinking had always been that it's going to hurt competitors a lot more to Tesla. So on a relative basis, Tesla will win, but it's also going to lose the income stream from selling those regulatory credits. So it's hard to suss this one out.

[Karen Feinerman]

Well, I'm a little bit confused that I thought it was Tesla only excluded. This is just California I'm talking about. Is that what you're talking about or no tax credits?

[Melissa Lee]

No, just the federal tax credits.

[Karen Feinerman]

Okay, well, I was talking about the. I thought that the California ones are having some difference here and that made no sense to me. In the end though, I do, I can see the sort of comparative advantage of no tax credits and then them being in a better spot. I mean, already. So the other ones are so far.

[Steve Grasso]

Behind regulatory as well. So the big push is going to be Robo eventually. I know that, I know that we're throwing out Robo, but it's a regulatory front where he's best friends with the president right now. He's going to have the tailwinds. So to Karen's point, everyone else, I think it's a disadvantage to them. I get it, they can't sell the credits. But UBS has never been positive on Tesla since they initiated back in 2014. So I'm going to take this with a grain of salt. I'd rather be a buyer of Tesla on dips than a seller.

[Melissa Lee]

In terms of Muslim Musk's influence, though, the choice of Besant may prove that he doesn't have as much influence as one might have thought prior since he's going on X saying hey followers, what do you think of Besant? Do you want Lutnick instead? I mean that was his pick. So maybe this shows that there are some cracks in that relationship.

[Dan Nathan]

I mean, this one's going to play out. I suspect it plays out not too different than a lot of these sorts of relationships in the first administration. And I think that Elon's actually doing a lot of very innovative things. I think we can all agree on that. And it has never been really dependent on regulatory. You can make the argument that if he goes in there and he gets rid of some of these regulations, he gets to full self driving, you know, faster than people expect. But that is pulled forward in the stock right here. Right. And so the path to Robo Taxi doesn't really change much for me because of him sitting in Mar a Lago or in the White House all day long. I mean, I think that's going to be a real technical challenge.

[Karen Feinerman]

That good for Weimar, you would think?

[Melissa Lee]

Could be.

[Karen Feinerman]

Unless there's some uneven distribution of who gets gets further approval, which I mean, who knows, but you would think it'd be better for women.

[Melissa Lee]

Yeah. Up next, final trades. Time for the final trade. Let's go around the horn. Tim Seymour, you know that scene in.

[Tim Seymour]

European Vacation which Chevy Chase is wearing the like the later hose and. Yeah, it's going to be me.

[Melissa Lee]

Good luck.

[Tim Seymour]

All time high.

[Karen Feinerman]

I don't see the connection but yes, iwm I know it hit an all time high but I still like it still staying long. So it's if I bought it right here.

[Dan Nathan]

Dan yeah, Amazon had a nice pullback over the last week and a half or so. I think it goes back towards those prior highs of the next few weeks.

[Steve Grasso]

Steve Grasso Applied Digital Ever since Nvidia disclosed that they gave them $160 million, the validity that it gave this name, it's been off to the races. Still continues. I'm still long.

[Melissa Lee]

You just said Lederhosen because he wanted to say it, right?

[Tim Seymour]

Who doesn't Jim did you just want to bet he doesn't want to say it? Who doesn't want to wear them?

[Melissa Lee]

Thanks for watching. Fast Mad Money with Jim Kramer starts right now.

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