really selling off today. for ism services, priced paid, that's key on monday on what was just a rough day and a rough week for the major averages here. >> and what's moving, some of these stocks. i mean, aws did well for amazon, but amazon, the stock didn't do so well. >> yeah. fed speak will be the other thing to watch starting with goolsbee. that does it for us. "fast money" starts now. in the heart of new york city's time square this is "fast money." here's what's on top tonight. a major market selloff. stocks limp into the weekend as the dow falls over 600 points and rates tumble. the ten-year falling to 3.8%. will this friday fade continue into next week? we'll debate that. plus, a freefall at intel. shares crater down 26% today as the chipmaker cuts its workforce, halts its dividends and gives the street a grim forecast. how did they go from chip pioneer to industry

after-thought? a bruising day after earnings for amazon and a surprising number of bright spots in an otherwise awful day for your money. i'm melissa lee coming to you from the nasdaq. join us on the desk. markets closing off their worst levels of the session with the nasdaq sinking 2.5%. it is now down more than 10% from the all-time high hit just three weeks ago. the s&p down 2% while the dow shed 611 points. the biggest point drop since february 2023. the small cap russell 2000 index leading the losses down more than 3.5%. it is now -- has nearly erased all gains since the great rotation started last month. the consumer discretionary sector, the biggest laggard today with amazon leading those losses after it gave weak guidance for the current quarter. financials and energy stocks also falling. take a look at the move in rates. the ten-year yield sinking to its low level of the year.

it is down almost 100 basis points from recent highs. the latest moves come after a disappointing jobs report. payroll in july grew by 114,000. well below expectations. the unemployment rate hit its highest level in nearly three years. that might have changed the calculus for the fed. markets pricing in a 70% chance of 50 basis point cut at the september meeting compared to 22% chance yesterday. with both sides worried about the dual mandate equation, where do we go from here? let's bring in steve liesman for some answers? steve, was it really that bad? >> well, certainly the market took it this way and what happened, as you just described, melissa, the jobs report dramatically changing the outlook for fed rate cuts. raising the question as to whether the market may be moving faster than policymakers are likely to alter their own view on the economy and how much policy medicine might be required here.

as melissa just said, i have a slightly different look on it, same idea. before the jobs report we were 31%, now 73%. chief economist at snb writes, given the fact the fed was super dovish before the extremely disappointing july employment results, monetary policymakers are likely to err on the side of doing more not less. 126 basis points of cuss, that's 126 bip cuts and eight cuts in total. we've been here before. that would bring the funds rate down to 330 or so by june or just a bit above the neutral rate. as of fed fed chair powell and the fed committee saw continued strength in the economy. i think they'll be more reluctant to change that view on a single jobs report to say the market looks aggressively priced here longer term based on the data we have now.

but of course, melissa, there's a lot of data between now and that september meeting. >> there are. and i keep going back to that statement that fed powell made which is, data dependent, not data point dependent. this is data point dependent. michael ferroli at jpmorgan saying there may be a strong case to act before the september meeting. what happens before the september meeting is jackson hole. do you think the fed could open the door to a bigger rate cut potential in september? >> well, here's the thing. i had not seen that comment by mike, whose analysis i follow carefully and whose opinion i take seriously, but i really do think you would to have a serious deterioration in the data. i don't think it's there. if we hover at 250 on jobless claims, i think the fed would be very reluctant to cut earlier than the september meeting. and i think that you want to watch the jobless claims. watch the consumer numbers. that's a place the fed, if they do tank and tank seriously, that

will alter the gdp outlook, suggesting either a stalling or contraction in the economy. that would move the fed. but your point is really important, melissa. you talked about this idea that the fed will have tolerance on either side of the mandate. a little more inflation is not going to stop it from cutting and a little bit more weakness is not going to keep it -- it not going to make it all that concerned about there being an imminent recession. >> steve, it's karen. thanks for being on. in those most aggressive cuts that are getting priced in, what do you think they assume for both inflation and employment? >> there would be no inflation in that context. and i think -- i really think as i said, karen, that the market is pricing in an imminent recession and a pretty pronounced one. it looks to me like those are the kinds of moves, if you put that chart back up that shows how much is expected over the next four months and over the next year. those are the kind of numbers the fed -- or the kind of cuts

the fed would make if it feared a recession. it would get back down to neutral very quickly. heck, why not even go further. why not go below neutral to try to stimulate the economy. and i just don't know that the data supports that kind of imminent -- ready to make a call for recession. i will point out, though, on the other side, citi just putting out a report suggesting that we -- a recession may have already begun. again, i have not seen that in the data yet. >> it does go back to the notion of the long and variable lags which chair powell said he believes you're already seeing in the economy and whether or not, you know, what we're seeing and what we will continue to see are those long and variable lags and that will impact the jobs market even more harshly than we're seeing it in this most recent jobs report. are you surprised that wall street, you know, on one report was so willing to change its forecast, almost completely, in terms of cuts? >> well, i'll let the -- the

smarter people than i am about the stock market talk about this. but i think this is leg three of a series of things. the first thing was, we started to question the valuations of some of those high-flying a.i. stocks out there. where's the profit? two is, i don't think that the revenue and the earnings numbers came in commensurate with the overall valuation of the stock market. now this ends up being the third leg of that. so, i don't think it's fair to say it's just one jobs report. i think it's all a question of valuation on the equity side. on the -- >> but, yeah. >> i agree with you. it's a long way to go on a single jobs report. >> all right. steve, great to see you. thank you. >> my pleasure. >> steve liesman. so, what's your take here on what happened today? >> well, i think basically the employment data we're seeing kind of confirms -- is kind of like confirmation of some of the worst fears i think some people may have had.

we've had a lot of data that's come out that isn't necessarily all that positive. employment data was basically -- it wasn't sending any alarm bells. when we look at consumer data, we do see some. when we see business sentiment, we do see some. of course, we've had other leading economic indicators that have tipped in the favor of indicating that we might be getting a recession. when you start to see this, i think be we talked about this before, that employment will be a lagging number. i think this is sort of that confirmation. we're getting numbers that are woerts than the survey. we've obviously seen some big increases in auto delinquencies, credit balances are up, savings are down, we see business surveys that are indicating that there's not a lot of confidence. and this is just one more thing. we never know what the tipping point is going to be but this clearly indicated this is going to be one of those. the vix, too. >> for an economist kind of guy, steve, had it spot on in items of, this is the culmination of a number of things we saw in the stock market and this just

underscores the notion that perhaps things are much weaker than we think. we've seen delinquencies rise. we've seen income levels, all cohorts of income, express difficulty in terms of buying and weathering price increases. weaver seen the earnings come in light. we've seen questions around the a.i. spend. no more blank checks for these companies. then we get the jobs report and it's like, bam, there it is. proof that things are slowing. >> i tend to agree in large part with the narrative, however some price action pushes back against that. we saw whatever we want to call it, rotation, into small caps. that flies into the face of what you mentioned -- >> since the beginning of july. >> in terms of this being a confluence of data starting to confirm, perhaps, worst case scenario. s. i think there's been a dichotomy between the first and second quarter -- sorry, the first and

second half of the year. you've seen a lot of contradictory data there. what i'm saying is that the unemployment -- sorry, the employment number today really pushed people over the edge because just prior to that, you were seeing a massive rotation. i'm with you in terms of the a.i. spend, capex spend, concerns about that. you're seeing a massive rotation into more speculative from a credit quality standpoint in the market. perhaps you would argue that was a trade down. you had to think the economy was still chugging along at a decent clip if you were willing to take the inherent risk that comes from investing in those type of companies. the reversal to me suggests that narrative is now being called into question. >> you know, we always hear, don't fight the fed. since wednesday, i guess it's only 48 hours ago, don't fight the fed. boy, they're really fighting the fed. i would think that -- i think monday we probably sell off

again and i would look to be buying things on tuesday. i understand the a.i. story and is that overhyped. okay, i get that. then you have a lot of other companies that the valuations are come in a lot. they have great balance sheets. so, to me, i think the back drop of fed cutting is not bad. could things go down more? yes, of course. i also think that this -- the magnitude of this swing, right, what would it take, probably not a lot, one data point of better employment to have everyone just calm down a little bit. >> then do these economists reverse their calls for 50 -- i mean, there are a number that went up a lot in terms of the number of cuts for the rest of the year. a couple of them did two 50-basis point cuts between now and the end of the year. >> we're being -- >> on one data point. would it be shocking to see that data point come in a little different? no, really not. so, you know, things seem to

get -- i don't know, don't panic, i feel is really the message. >> should we panic based on the charts? for the week it's not been too terrible. it's felt awful. >> when it comes -- that's right. it hasn't been that bad to mink the market itself from its peak down 6.4%. it's much worse than other aggravation. the q's down 12, tech sector down 15. the s&p down 6.5 is not that much. the irony, of course, is the -- since april when the s&p was trading below 5,000 hit 1700. rates went from 4.75 to 4.1, 4.2. now if we should continue that premise, now they're 3.8, we should rip this market because people know it's not that lower yields hee quaul higher prices

like some sacrosanct perfect formula. what we're looking at is collapse of industrial commodities, copper, zinc, aluminum, and the rates plunging -- soft landing narrative is almost preposterous. >> what do you see for rates? i saw even -- we dipped below 3.8. we're in the 3.7s for some time. where do we go, carter? where's the support? >> there really isn't. i guess the question is the implications of all of this. let's talk about the selloff. you started with this. it's not that bad so far. 6.5%. so, consider this, all instances where the s&p 500 is dropping more than 5% since 1929, since its inception going back, and there are a lot of good data and the reason we use 5%, you go up 2%, down 3% or down 1%, that's noise. once you go down 5, whether

because of stop losses are trigger the or people's comfort level, typically you go down more. there have been 23 instances going back to the inception of the s&p where it's dropped 5% plus. now, of those the average decline is 11.8% and the median is 8.25%. this is 6.5%. it's nowhere near the median or average decline, somewhere between 8 and 11. interestingly, it's identical to what we saw in april. on april 1st, three weeks later we were down 5.9%. just happened. and that was a shallow one but it was the 5% plus. this was 6.5%, that was 5.9%. this is identical in items of the april selloff that was 14 sessions. this is 13 sessions. but the shallow ones are not as likely. usually you go down more, somewhere between 8 and 12. i would have that in my mind as i approach the market on monday. >> for more on the markets and the bond markets, let's bring in

chief investment officer and ceo andy. why do you think the equity markets are more worried about the jobs picture than the fed seems to be earlier this week? >> i'm not sure the equity market is that worried. as carter mentioned, we're down 6% from the all-time highs. and earnings expectations are still 11% growth and the pe multiple is just shy of one. equities seem to be fairly blase about what's happening in the bond market. what's happening in the bond market, steve said a lot about it. we went from a june sep to where we started pricing in normalization cuts to the last week when the two-year note and short-term interest rate markets prooeg priced in significant

accommodation cuts that look like -- well, that are the sort of cuts one would expect if an imminent slowdown was going to occur. and so my question that i'm thinking about is, the fed hasn't done anything, right? they haven't cut at all. the market has done the cutting. it's already at these extremely low yields relative to the conditions. the question i have is why. and i look to the last month as a major deleveraging. you saw the rotation, which was a deleveraging of positions of short russell may be and long mag 7. we've now seen a 15 handle move in the japanese yen, which is a financing currency that has caused margin calls on the carry trade. so, i think assets are selling

off globally, risky assets are selling off. and when that deleveraging happens, money is paid back to people or people go to cash and now they don't have to put -- they are to put their cash somewhere and paying up a dime or even a quarter of a point for a two-year note seems like nothing, even though it's 50 or 100 basis points of yield change. so, i'm cautious about the two-year change in yield being a forecast for the fed's activities. >> in other words, you're doubtful it actually reflects what the fed is going to do so, therefore, you are short two years? >> yes. today i went short something that looks like a two-year note. i saw the market participants, all the ones you mentioned, now following the pricing and

changing their estimates to cuts of 50 basis points in september, 125 basis points, et cetera. that's people following the market price which may not actually have a lot to do with market expectations of the fed's actions and may have a fair amount to do with a rush to a safe asset in a deleveraging. >> so, andy, it's karen. thanks for being on. i know you are -- read the spring report, which is excellent, by the way. you have talked about being short twos and spws. i get what you're saying on the twos part, a lot of the cutting is already priced in. where would you look to unwind that trade? relative to each other. >> i'm glad knowing you for as long as i have, i'm glad you know what spoos are. the s&p futures contract. it's what us old -- at least one old person calls the s&p -- >> we're the same age, andy.

>> that's true, karen. and what i'm saying on that is for the two-year note to appreciate, we have to have an even more deeper and severe recession than is currently priced. those aren't going to go anywhere. those aren't going to go up. unless we have severe recession. in a severe recession, we have 11% earnings growth in earnings estimate and 21 multiple. even if you assume the multiple gets cut by 5% and the earnings expectations fall 5% in terms of -- in absolute sense, you can see easily for just a garden variety, meaning what's priced in the two-year already, 10% selloff in equities. that may not happen because the two-year may be the part that's rich. but they both can't be where they are. so, i'm short them both. >> andy, we have to leave it

there. it's always great to get your take on things. andy of dan spring. mike, what do you think of andy's trade? how are you feeling about a further decline on monday? >> i think it's possible for multiple things to be true. i think karen's sentiment that some things are starting to get cheap might be prompted by the fact that whenever you get an accelerated selloff, when you see the vix get above 20 that oftentimes you start to see short-term returns. what's the s&p 500 going to do over the next 30 calendar days, higher or lower? if so, by how much? it is true that when you start seeing things like implied volatility at higher levels that 30-day returns for the s&p can be higher. the thing is it matters from where you came. carter can be right, and andy, too. if we're going to expect some kind of correction, 10%, 12% would be a reasonable number to target. when the vix goes from where it was, a relatively complacent place and shoots higher, we're

in a 1% area for what the vix did today and over the last couple of days. it's up over 15% from 30-day moving average prior to that. that's about a 1% event over the course of the vix history, which goes back to earliest days of 1990. the s&p returns over the next 30 days are typically not that good when that happens. we're looking at 80 basis points on average long term and since 1990, but when you get to the kind of price action we've had in the vix over this week, it's actually negative. that's pretty rare. >> mike, it's karen. i know you're not a guest, we're panelists. i've seen this friday summer selloff and a monday selloff and a tuesday morning down. that big woosh down is the short-term bottom. do you see that happening here? >> yeah, i mean, look, i think that if you get three really negative days, you know, oftentimes you can catch -- look, you can get a bear market rally. i'm not saying this is a bear

market. it's not even a corrections. not even a correction yet. if you get a lot of pressure, if we get 1.5 down, 2 down, like we got 2 plus today, a couple more days like that, typically you would expect to get a bounce. things don't go straight down typically. we all know that, we've been at this long enough. but i think it's important to understand where we are coming from. we're coming from a pretty complacent market, a very complacent narrative. this no landing narrative. i think there's some evidence that's not true. >> do not miss a cnbc special, today's market sell-off. kelly evans will host that right after "fast money," 6:00 p.m. eastern time. coming up, much more on today's weakness. how apple bucked the trend. details on the names next. it wasn't just apple. staple stocks, a bright spot in today's red. should you ride out the storm in this group? more "fast money" in to. (♪♪) car, this isn't the way home. that's right james, it isn't.

car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com (grandpa) i'm the richest guy in the world. investment objectives, ri(man 1)arges, expenses i have time to give. (man 2) i have people i can count on. (grandma) and a million stories to share. (vo) the key to being rich is knowing what counts. awkward question... is there going to be anything... -left over? -yeah. oh, absolutely. (inner monologue) my kids don't know what they want. you know who knows what she wants?

me! with empower, we get all of our financial questions answered. so you don't have to worry. empower. what's next.

team usa is back! let's see that enhanced 4k from xfinity. wow. everything you'd want is right here when you say... “olympics” so, what if your favorite athlete is... "grant hollowa”" nice. or you can't get enough... “swimming” definitely adding that to favorites. now let's check... “medal coun”" and when is gymnastics on? “olympic schedule” it's that easy. find it, see it, count on it with the best seat in the house. get the fastest connection to paris with xfinity. welcome back to "fast money." apple and amazon heading in different directions after yesterday's reports the iphone maker managing to pull off a gain today though it had been up more than 3.3% at its highs. amazon, meantime, sank 9%, lost nearly $170 billion in market

cap today, second one-day loss. guidance saying consumers were distracted by world events. what do you make for this huge decline in amazon and the fact that apple was able to hold? >> i think it's -- on the apple side i think it's a perception of safety. they have not had the a.i. spend, the capex low we've seen from the other hyperscalers and large mag 7. i think that's being called into question now and they're executing on what's perceived to be the right side of the fence on that. on the amazon side i feel like the aws numbers were completely ignored, completely pushed to the side. and to an extent you started to see it it in the price action. this morning it was down double digits. by the end of the day i missed the scoop the low. people are trying to wrap their minds around, what's going to be the long-term engine of growth? we know the consumer is under pressure. that's new news.

we tend to think markets are efficient and going to get to ee quill liequilibrium, i was surprised to see how far it had fallen. >> carter, what did you make of that amazon drop? >> yeah, so, it has two -- the drop is bad, let's start with that. heavy bottom drop and gap news related. to some extent versus the qs, versus the iwn, versus the spy and so many others, it shook off intraday, the preponderance of weakness while still having dropped at gaap, so still at the high. it felt that high will hold versus other highs, that won't. >> i look at walmart, down 2%. if we use that as a proxy for the rest of amazon's business

and try to interpolate a multiple, i agree to your point that aws was ignored, which was a really good number. within this cloud of, how does one monetize a.i.? one monetizes selling compute power on the cloud, that's one way. but i understand that. i just think that this was kind of an overreaction as well, so could it go down more? of course. but i think that it just sort of got caught up in the tide. >> coming up, a few names weathering today's big selloff. the staple stocks that could be a safe haven and a massive drop in intel. its worst day in nearly half a century. the entire chip space is feeling the blow. you're watching "fast money" live from nasdaq market site in times square.

♪ring jingle♪ -whasssssup. -greetings happen. yeah, that's not good happens. huge things happen. home happens. -woo hoo! -be there with ring. learn more at ring.com. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

welcome back to "fast money." clorox surging, best day in the year after cutting its forecast. kellanova hitting fresh highs. p&g, campbell's soup and coca-cola shares hit an all-time high. you stick with these gains in

these names? karen, kellanova, your favorite. >> yes, kellanova. i don't know if we have a visual of why kellanova probably did well, but it's -- you know, names like pringles and cheez-its. it's only half u.s. story, half outside the u.s. they put up a very good quarter. it's a nice place to high. this was so down and out, it was south of 50. now it's sort of started to get expensive. it does have a nice yield. i think i do not want to ride out the storm in the kellanova fox hole probably. >> are there other fox holes in the staples group you might want to snack on at this point in this sell-off? carter, you walked us through yesterday a basket -- a half basket, right. i'm wondering in the staples side of things when you take a look at big gains, big swings, do they still look good on an

individual basis? >> sure. yesterday's basket was 50% utilities, 50% reits. staples do their job. what i mean by that, if you look at -- let's take the 2000-2002 dotcom market crash. staples dropped 40%. you're not immune from weakness but dropping 40 versus 51 is really good. the '07 peak to '09 financial crisis low. the s&p dropped 57, staples dropped 35. people know this, right, because these are -- people still need toothpaste. long only, large mutual fund complexes, they rotate. it's a money flow thing. they know this, that alpha, meaning losing less will be at hand. now, are these exciting businesses? of course not. do they have growth? very little. and are many of them fully priced and rich, with the exception of a ketchup trade

such as karen's, but proctor, coke, these are not -- i'm with you, karen, in the sense -- this is hiding just for the purpose of hiding but it's not the way forward. coming up, intel's massive drop sending ripples through the entire tech space. we'll dig into the chip space next. financials the worst performing sector. what the chart master is seeing in technicals. "fast money" is back in two. missed a moment of "fast"? catch us on the go. follow the "fast money" podcast.

(♪♪) (♪♪) sandals rhythm and blues caribbean sale is now on. visit sandals.com or call 1-800-sandals. ♪ something amazing is happening here. data is bringing creativity to life. that's because cdw showed animation studios new ways to maximize their infrastructure, then built a flexible dell technologies data solution. more automation led to greater efficiency, which means creativity stays the star of the show.

make amazing happen. dell technologies and cdw. with fidelity income planning, a dedicated advisor can help you grow and protect your wealth. they'll help you create a flexible strategy designed to balance growth and guaranteed income so you can enjoy the life you've created. that's the planning effect. welcome to the now way to network... they switched to juniper's ai-native network. so they can take their game to a whole new level... that's the now way to network at work— with real ai— letting you rise above it all.

welcome back to "fast money." stocks selling off but finishing well off loes. dow falling 611 points, biggest drop since february 2023. the nasdaq leading the losses, down nearly 2.5% entering a technical correction just three weeks after hitting an all-time high. intel, the biggest laggard in the dow today, dropping 26% for its worst day in 50 years. hitting its lowest level in over a decade after a disappointing earnings report last night. it said it was the spendiest

dividend and would lay off 15% of employees. the chipmaker has been grappling with a pullback in traditional data center demand and turns its foek cause -- as it turns its focus to a.i. processors. here's what pat gelsinger told jon fortt today. >> the story is still one where the data center and the cloud is driven by the a.i. investments as the primary ones. we're seeing some good, early signs of customers there. we do see some benefits, but fundamentally we're not yet getting the full benefits of that in our business. >> other semi stocks pressured today in sympathy. nvidia, taiwan, among those. let's bring in ben, great to have you with us. things changed for you on this earnings report. you downgraded intel to a hold. so what specifically is it and have you basically given up on this turn-around story? >> well, it was like a do or die

kind of report for them. and they obviously missed it. in the second half we have several companies that are doing well and going to do well. so, in terms of the impact on the space, i see a lot of opportunity. i see them giving opportunity to amd, obviously. if there's a sell-off in names like broadcom and nvidia, i think you can take advantage of it. i think there's intel-specific stuff going on. when you start talking about cutting dividends and, hey, we got the cash flow break even at best and then they startguiding for an above seasonal q4 when you haven't hit a quarter in a while, it's tough. you got to step away. and it's settling out around book value and then we'll have to see if there is more money. >> when you hear pat gelsinger talk about the opportunity in the second half sets up because baud of the gaudi release and participate in the a.i. spend more thoroughly and building foundry and data centers in the

future, do you believe him at this point? he's been in the job for 3 1/2 years and it feels like and i believe he has given forecasts, many forecasts that have not come to fruition and there's a real credibility issue at this point. >> well, there is. i think the street is shooting first and asking questions later. i think there are some long-term targets they have that everybody has thrown out the window. you have to put up a number. it's been one thing after another, moving production around, a packaging issue. you know, people are voting with their wallets and saying, you know, the dog ate my homework isn't working and we have to put up a number. until they really put up a number, maybe a string of numbers, it doesn't get going. like i said, i see a lot of opportunity elsewhere. there is still a chance they can turn this around, but the problem with intel is they're doing so many things at once. they're trying to be fabulous and compete with nvidia in the data center and then, you know, put on all these new nodes and

all that. and now they've taken government money and they're probably getting a call from gina, hey, what's going on with my money. there's a lot going on there. so, you know, it's always been a complicated story. and when there's liquidity issue or potential liquidity issues, it gets more complicated. >> ben, appreciate you joining us. you just mentioned liquidity issue and we were speaking earlier today about how exacerbated the moves have been today. drilling down on intel specifically, for those that are inclined to buy dips, has the paradigm really shifted in this name in terms of it going from being a turn-around story to actually real concerns or about it continuing as a growing concern? >> thegoing concern, right now, is a little premature but people are going to go there. you have no choice because of some of the things they've done. what i think really is -- it's

settling around book value because no one knows what's going on. they don't know, so how do we know? that's what's going on. talking to people today, you see it settling around that book value, the tangible book value. it's a little bit of a rule of thumb when you don't know what's going on. but from here, the issue is, and the reason that you got to kind of step aside is that share losses actually have been picking up to amd. now they could really accelerate. niece are the kind of things daye i've been through these in tech, going back to xerox 20 years ago, when these things happen and you're on the front page of "the wall street journal," or the virtual page now, it starts to hit customers, it starts to hit the i.t. people. you say, hey, is this an intel chip, this or that? it doesn't happen overnight. but over a two-year period, amd could gain another ten points a share. we don't know. they have to stop the bleeding on share, on losses in their

foundry and all these things. and you just don't know. so for me to tell you we know would be wrong. so, you step aside, see if they can stop the bleeding and turn it around. >> you mentioned secretary raimondo calling intel, saying, what's going on with my investment? is it possible the u.s. claws back its money or says we're not going to write another check? what would that do to intel's prospects at that point? >> that wouldn't be good. but, you know, look, pat's a smart guy. he's got take good relationship with those folks. they do like each other. i think there's a genuine view that intel is a national champion. the question is, is it boeing or is it the old intel? can it get back? and the jury's still out. i'm sure there's some concerned calls or some concerned people. you don't want good money chasing bad. however, the u.s. does need

somebody to be making chips here and they need somebody to be doing it well. and you would prefer it be intel, a great american company. and we'll see. we'll see. but i'm sure there's some concerned folks and i'm sure they're going to try to work with them to try to turn it around. >> ben, thank you. >> you're welcome. >> ben, thank you. mike, what do you think of intel's prospects? i thought it was interesting that ben mentioned boeing. boeing or intel? >> yeah, i mean, slightly different situation and somewhat similar in both cases. you have basically both businesses ended up getting run by business people instead of engineers. i think that was a little problem. in boeing's case their problem goes back to the single aisle aircraft. i think they might actually find their way up. they don't have that much competition. airbus, essentially, to a lesser extent. i think boeing is eventually going to see the light at the

end of the tunnel. intel it's a little messier. they've had $30 billion of negative free cash flow over the last ten years and most of that has happened in the last, i don't know, 30 months or so. you know, so they do have enough cash on the balance sheet to try to right the ship but you do need to regain customer confidence to do that and they need to focus on product. >> coming up, banks getting hit hard today. it is one of the worst performing sectors in today's selloff. where they're headed next when "fast money"etns rur. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

welcome back to "fast." the second worst performer in the s&p with roegional and mone center seeing losses. kbr down 10%. so, where do these names go from here? got to ask the chart master. where, carter? >> well, of course, this is what data is all about. these are the high fliers of the past three, seven weeks and now a bit of a give-back. let's go to the charts and figure out together. so, first the kre, the rally after the sort of crisis of october of 2023 carried the kre

back to level what you consider overhead supply. we probed it and it hit aggressively. i think lower and i think this is, again, this is the epicenter of risk on/risk off. so, i'm a seller. now, bkx, different. but similar circumstance. we can move to the next chart and you'll see the bkx. what we have here is the same, really aggressive rerating of an area of the market. that's fine but when you go up that aggressively, that much more than the general averages, you have the give back risk and you're seeing it now. but let me end with this. this is an important final chart. are these good investments? this is an all data chart going back to the part of dick's sector data of 1989. this is the rating of all financials, berkshire, met life, aflac and everything else. the sector's relative

performance to the s&p. we're still below the '09 financial crisis low. these are cyclical businesses. up and down and they're trading tables. with the exception of a few, they are not good long-term investments. >> karen, you own a lot of banks. >> the exceptions that are few. >> are any of them on your shopping list? i know you've got a shopping list for tuesday, next week. >> yeah, i bought a little bit of citibank today. would have more to buy. i like jpmorgan still. this isn't just a bank business. there's so many other parts of the business, right? i think interestingly, this move in bonds is actually good for bank of america, which -- because of their bond portfolio that has long duration. so, i don't know, it seems a little overdone to me here as well. not that it can't go lower, they can. but we'll see. coming up, hedging against more volatility. how you can protect your portfolio heading into next week. the professor lays out some strategies. "fast money" is back in two.

(reporters) over here. kev! kev! (reporter 1) any response to the trade rumors, we keep hearing about? (kev) we talkin' about moving? not the trade, not the trade, we talking about movin'. no thank you. (reporter 2) you could use opendoor. sell your house directly to them, it's easy. (kev) ... i guess we're movin'. (♪♪) (♪♪) sandals rhythm and blues caribbean sale is now on. visit sandals.com or call 1-800-sandals.

lyles will need a good leg here. can he deliver? visit sandals.com here comes the pass! look at this kid! coming in tight on the line. team usa, what a run! it's gold for team usa. noah lyles with another gold medal. in case there was any doubt, who was the breakout star of these world championships. welcome back to "fast money." another busy week of earnings ahead.

palantir, ee li lily and caterpillar a few names reporting. the options market expecting moves between 5% and 12%. if you're looking for a way to protect yourself from more volatility, mike may have a way. volatility is up so people might be kicking themselves. you've got a solution here. >> yeah, i mean, at the beginning of julie talked about buying the 53/50 puts in the s&p outright and midmonth we talked about doing something similar in the russell. now you're dealing with two dynamics. the market is down 6% over a couple of days and the vix, which is a good proxy for the price of 30 delta puts on an index is up more than 50% over the 30-day moving average. when you have this situation, you want to get a tighter strike to where things are and reduce the cost. these are the circumstances where you want to use a put spread. i was looking at spy as the market proxy for the s&p going out to the end of september, so that's the september 30th month-ending options and looking

at something like a 525, 480 or 390 put spread. usually we try to get this for 25% distance between the strikes. i think you want a tighter strike and spread it to reduce the cost. >> i agree, you have to spread it. you can't pay into what's been a massive runup in the vix. i'm curious, would you consider also selling an upside call spread? >> you know, one of the reasons i probably wouldn't do that, we're sort of seeing steepening in the skew. that is the relative price of lower strike options versus those higher ones. i was actually noticing some call spreads are probably setting up well for the bounce back that karen is looking for. probably not monday, maybe not tuesday. whenever you can see those upside call spreads trade cheap, 25% of the distance between the strike, that's probably a good way to play for a rebound without risking too much capital. >> mike, let me ask you on that put spread, do you look to trade

around that more likely than not as opposed to holding it to expiration? >> yeah, so one of the things about a put spread, you don't want to buy those long data because they won't get monetized that quickly. out to the 30th of september, you know, that's probably at the longer end, close to 60 days of what i would normally take a look for. i would more frequently trade around a single long leg option or anything where i'm just buying volatility products. that's probably where you want to be more dynamic. here you can buy this and sit against it, keep long equities on and not worry too much because you have some protection then. up next, final tras.de

♪♪ [inner monologue] in this gig... you get comfortable being uncomfortable. ♪♪ the enemy is always adapting... deepfake: hey handsome. ♪♪ [inner monologue] ...always iterating. ♪♪

(intercom) t minus 10... (janet) so much space! that open kitchen! (tanya) ...definitely the one! (ethan) but how can you sell your house when we're stuck on a space station for months???!!!

(brian) opendoor gives you the flexibility to sell and buy on your timeline. (janet) nice! (intercom) flightdeck, see you at the house warming.

final trade time. >> berkshire hathaway. >> mike. >> the best hedge is a good business. i like amazon. >> karen? >> yes, quick, happy birthday to my talented sister, >> thanks for watching. cnbc special starts right now. thank you, melissa. live from studio a at cnbc headquarters, this is a cnbc special on the major market selloff on wall street. i kelly evans. the dow closing down 600 points while selling off nearly 1000 intraday. the nasdaq down 10% from recent highs and the s&p dropping 2%. over the next hour we will look