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CNBC's "Fast Money"

The Eight Words That Sank Tech Stocks

CNBC's "Fast Money"

CNBC

Investing, News, Business

3.91.3K Ratings

🗓️ 13 January 2022

⏱️ 43 minutes

🧾️ Download transcript

Summary

Markets had been nice and calm to start Thursday, but then Fed Vice Chair nominee said the central bank was ready to raise rates several times this year. That sent stocks into a tailspin and helped the Nasdaq lose 2%. Is that the nail in the coffin for the tech trade, or is there hope ahead? Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0

Tonight, we are talking fast money and fast cars, Ford flooring it, the stock hitting its highest level since July of 2001.

0:09.0

This rally, the Ford Tupper is a time to pump the brakes plus, cleared for takeoff, delta soaring on strong results, a company CEO speaking exclusively to us.

0:18.0

What he said about the future, that as investors betting on the not-so-friendly skies and later on, rotten calls, Wall Street analysts laying out some of their top picks for the year.

0:29.0

Some are working out, but there are definitely a few bad apples so far in the bunch.

0:34.0

We'll find out of any. Might be worth a second look with your harder and dull.

0:39.0

Alright, everybody, welcome to Fast Money, I'm Brian Sullivan.

0:42.0

And once again, from Melissa Lee, great to have you with us on a big show tonight, and your trader lineup is ready to take it on.

0:48.0

Guy Adam, Tim Seymour, Karen Feynman, and Pete Najarian, co-founder of MarketRebellion.com.

0:54.0

We have got a lot for to get through, and some really interesting single-stock stories for you, but we have to begin here with the back-row markets and your money because, in many ways, it was a brutal day for many big-name stocks.

1:08.0

Now, it all started kind of okay. I mean, the NASDAQ was down a little bit right until about lunchtime in the East Coast, and then Fed Vice Chair nominee, Lail Brainerd, said this.

1:20.0

We have projected several increases this year.

1:26.0

Hear that? The S-word. Several potential rate hikes this year, and many big-name tech stocks selling off immediately.

1:36.0

The NASDAQ dropping more than 100 points in just a matter of minutes, and closing the day down 2.5% out.

1:44.0

Now, semiconductors would have been up nearly 3%, they reversed course fast. It would deepen to the red.

1:51.0

Alphabet, Microsoft, Amazon, and others, also reversing early gains in a big way.

1:57.0

The question is, Guy Adami, is this kind of the potential nail in any coffin for hopes of a near-term tech turnaround in 2022, he said?

2:12.0

I'm not pulling the hammer out to put that final nail in the coffin just about yet, but I find it interesting, and Tim Seymour says this all the time, and I'll absolutely let him speak to this.

2:22.0

But he says, and he's been saying that more Fed means more volatility, and if you're looking for proof positive, you saw it today.

2:30.0

Now, I don't think any of the comments out of Lail Brainerd should have come as a surprise.

2:34.0

With that said, she's probably the most dovish Fed member out there, and this is the same Lail Brainerd, by the way, that a year ago was talking about looking for the tools to boost inflation, and now magically she's concerned about it, as she should be, by the way.

2:49.0

So, it's interesting to see. I don't think the tech trade is over, but I think what you're seeing, and we've been talking about it now for the last few weeks, is this move from high valuation, high growth gains, and the names that people can wrap their head around a little bit better on the valuation front.

3:03.0

So, the aforementioned Tim Seymour, maybe not the nail in the coffin, but as always, Guy, hit the nail on the head, because Lail Brainerd, thud up.

...

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