the fact that the market has gone up about 20 points in the s&p. why? because people need protection. they're not fully in belief f right now of this rally. >> let me ask you guys this. goldman sachs came out midsession saying that they forecast a drop of 250,000 jobs versus its prior forecast of 300,000 jobs. the market barely moved. what do you make of that? -- >> it's disbelief it's going to be better than expected. >> >> what i make of it, i heard d four words today i didn't want to hear. you've got stock down. that's what happened to me all day. jpmorgan, morgan stanley, that's been the strong sector over the last two or three days. today, those stocks came out real strong. goldman sachs opened up above 170. jpmorgan came out above 42. wells was strong. morgan was strong. morgan stanley was strong as well. what happened, melissa? early strength was met with selling. they all rolled over and the s&ps went down with it. >> or is it just the fact the financials are bumping up against pre-lehman brothers levels?

jpmorgan was approaching that level and then it pulls back. it just can't get beyond that. >> some of the ammunition for financials this week has come because not only have we gotten great numbers on housing, but we're starting to see -- you know, mbi announced today that a billion dollars of bad loans may be coming back into them. the point is if housing prices are stabilizing and going up, normalized earnings could be a whole lot better. that's why tomorrow's payroll number has big implications for the financials, i think. we already have seen -- not good for same store sales, but already priced in. the auto data, not great but getting better. this is why you need to not pay too much attention. >> if the money center financials that continue to be the leader right now. goldman sachs and morgan, they surged, pulled back. look at citi. in five days, citi has gone from $3 to nearly $4. incredible volume out there. today in the options world, 15 million contracts again.

unbelievable activity. look at wells fargo, though. this is one of the banks that has not paid back the t.a.r.p. there is nine who have. they're not one of them. goldman sachs and morgan stanley, by the way -- >> the problem with the financials in terms of a leadership group, great data, but also we need new leadership grouped. we need groups other than the financials, other than technology and materials to lead us higher. >> but wait a second. >> i'm not sure. >> we have been sharing leadership along the way. back in may after the stress test, it was the financials. at one point it was energy. then it was all about technology. so we're sharing leadership as we march higher. right now i don't know necessarily if you need one individual sector. you just always need someone to carry the baton.n. >> two weeks ago it was technology. then the financials. that's been our leadership.. now potentially maybe the commodities start to step in. be careful with wells fargo. a lot of puts being bought on n wells fargo today. september 26th puts, traded 30,000 of those. then you look into august, an enormous number of puts there. maybe there's a secondary. do they have to raise money to pay -- >> your trade was wells fargo o

today. as joe said, traded up above 29. these were the levels we saw when they priced that a few months ago when the stock was priced at 22.25. ran up to 29. we told you to get out that day. trade sets up easily for me. that 29.50 level is your stop. >> and a great point, real quick. you make a great point on these stocks going back to the pre-lehman levels. what's there? there's a tremendous amount of inventory, supply. everyone wants to sell because that's the break-even level. that's the level where you say get me out and i'll never do it again. you have all of that supply sitting overhead in a lot of these stocks. >> let's look at technology here. take a look at this midday mover. cisco systems, this is one of these examples of you see the opportunity and you go en. mid-day here it swung into positive territory. it finished the day higher, even though it started the day with a downturn -h. what do you make of this? is that that kind of technical -- >> maybe we get that -- yes. i think people are waiting for opportunities. they feel they've missed it in cisco. today there's an opportunity. stock is down a dollar. great opportunity to look at

cisco. stock never looked as low as it did last night when we looked at the news out. that news wasn't all that bad.d. a lot of people were saying how awful it was. mr. chambers came out this morning and reiterated what he said last night. which was not necessarily negative. he needs to see a couple more quarters before he's ready to say, hey, let's look back. that was the bottom. but you look at microsoft, you look at these names. microsoft ran into the earnings. microsoft is right where it was two days before its earnings. it's not like microsoft is suddenly just falling off a cliff. this is a stock just like cisco that ran into earnings, gave back a little and that's why people are looking for those opportunities. >> july 23rd when it traded up to 19.r58 on huge volume. july 22nd when it traded up to 19.28 on similar volume. the stock had a lot of trouble around that 19.50 level. did not participate in the rally the last week and a half. now it's trading 18.75. valuation, that's rich. i think it goes down. on the other side of the coin, look at western digital, a name we mentioned for a long time.

look at what that stock did in a benign day, up 1.5%. trading close to 52-week highs. they just reported a ridiculous quarter. raised guidance. that still works, but if the market does go down, that will pull back. that's the real story, though. >> semiconductors in the tech rally has been the leader all day. is that concerning in terms of the ability of technology to continue its run? >> it's interesting. we'll talk about the video here. navidia reported pretty good quarter. surprising earnings beat the -- you know, revenue guided higher. >> after hours, we'll pull up that chart. >> check it out. last i looked it was trading 13.75. huge short interest in this stock. you'll probably see a trade up to 14.12 which was the august 20th high of last year. it's hard for me to love it here, but you make a good point that chips seem to be doing well. >> but you get rotation here.. chambers is always very conservative. today he gave us the insight that the first quarter was

probably the low point, although he's cautious on the third quarter. the internet switching space has probably never been any more important. if we're getting any leadership out of these guys, this is very bullish, i think. we saw an upgrade. bank of america upgraded these guys today. a couple of guys reaffirmed. i think you take a lot of positive out of cisco. you take a lot of positive out cisco can take the -- >> what do you guys think of that "wall street journal" article highlighting the fact that this guy has all of these committees to launch these products, products like big, giant screen tvs -- >> that sounded scary. >> it sounds like low-margin projects and they're trying to jump start their business because they're too big to grow now. >> they're going into other businesses because they have a lot of cash to spend. that concerns me because i think they're a big company. i think their knitting is a very strong place. despite the fact it was down 11%. >> sort of like jumping the -- >> i think one of the things that's adding to nvidia this quarter is the fact they got into the scientific computing as well as oil and gas.

as far as they are no longer just a gaming stock. because of that, they're becoming more diverse as well. using those products to go into other areas to succeed. this stock had a hard time getting through 12, broke through 12. now it's unbelievable run.n. look for a pull-back, though.. this is another name, you probably don't need to chase it. you look over the last week and a half this stock is up a lot. >> the bottom line in technology right now is the fundamentals of the supply chain have risen. they have improved. however, valuations have risen as well to meet that. now it becomes a question of what is the fundamental catalyst to take it higher. >> let's move on. time for your "earnings edge." after posting better than expected profit last night, what does 99 cent only stores see for the american consumer? the stock has been breaking out, approaching 52-week highs. ceo eric schiffer joins us now from l.a. great to have you with us. >> thank you for having me. >> i want to focus on your announcement that you're not exiting the texas market. what does that tell us about whether or not there's strength in texas or just your ability to contain costs there? >> well, i think we announced

same-store sales of over 20%, 23.6% actually for the quarter. and we're seeing tremendous growth in sales. we're seeing a tremendous growth in the transaction count. which means number of people coming to the stores.. when the economy took a turn for the worse, i think word of mouth really spread like fire about our stores. we went from a situation back in september of 2008 where we had announced we would probably exit the texas market to reconsidering it back in february. in fact, this week we made the decision to stay in the texas market. we're very excited about it. and over 999 jobs were saved. >> what happens when the economy turns up? does that trade down -- do they go away from 99 cent only stores? >> well, we definitely feel in this economy, people aren't trading down coming to our store. the toughest thing has always been to get an upscale, affluent customer to try our store for

the first time. but our company's best store has been our store on wilshire boulevard next to beverly hills. out of 272 stores. so we've always had folks shop our stores who are up-scale. when you're telling toilet paper and soda and -- and watermelons for 99 cents, i don't think people will -- i think they skoef our store. i think people will come back. i don't see why they wouldn't come back. >> how sticky are these customers going to be? i don't see why customers wouldn't come back. you never know.. if the economy does turn like e everybody thinks it might, they might go back to buying at the stores they used to buy. it's hard to tell. this stock has been on a huge e run. if you think the world is getting better, this is one i'd get out of. >> it plays into the whole foods we talked about the other night. if, you know, dollar tree, you look at the dollar-type stores. >> they're spending $7 for a box of crackers. >> are they really rotating out of some of that cheaper stuff, out of walmart and the downward slope? are they going back into the

whole foods? >> and i think although this hurts walmart's margins, this is great for walmart. it's not going to change. this is a trend that's going to be tough to break. once you realize you can shop there, you will continue. >> eric, pleasure to have you. hope you'll come back to "fast money" your next earnings release. >> thank you for having me. >> ceo of 99 cent only stores. next next trade, aig, fannie mae surging between 40% and 100% this week alone.e. these stocks were left for dead. for some of these stocks it's been a short squeeze that's really pushed it higher. >> let's talk about aig first. ten analysts out there. nine analysts have a hold on the stock. one has a sell. no one has a buy. that gives you an indication that everyone is playing aig from the short side. into earnings tomorrow, what are you looking for? what's the possible upside? the possible upside could be that the value of these toxic assets that were written down so aggressively over the last couple of quarters will begin to modestly rise. that's your upside in aig. other than that, i don't understand why people are getting so hopped up. >> you might also be getting a

slight exaggerated move, too. when you look at the names, i'm talking about options that are unbelievable. aig by noon today traded over 300,000. cit, fannie, freddie, hartford. they started buying the august calls. today they bought over 25,000 of the august 20 calls. so people are -- you've got to do a hedge. if you're a market-maker standing on the trading floor and selling these calls in aig and the rest of it, you have to do a hedge. your hedge is going to be stocks. that's the only hedge that's left. that's pushing these stocks as well. >> the other thing that people don't realize, fannie and freddie, mortgage yields are at two-month highs right now. if you get a bad payroll number tomorrow, see mortgage defaultings begin again, the securities will go way down. the other thing with these guys, huge dilution in these shares. no one knows what the fair value of the shares should be. if they're trying to value them, they're not even close. >> you look at the company like hartford financial, look at the day it had today and look at

their earnings release a week ago. they're going to make money this year. they're due to make $3.91 next year. just dot valuations on this. this could easily trade back to october levels of 33 and still be relatively inexpensive' i'm not saying it's going there, but at 18 bucks -- >> as long as we're concerned about commercial real estate, shouldn't we be concerned about some of these insurers? like lincoln national, et cetera. they have portfolios. >> absolutely. 100% absolutely. they are fully exposed and you have to be concerned about that. >> let's move on here. shares of morgan stanley lower today. not only has it lagged rival goldman sachs, but it's trailed broader financials. as management looked to pair back risks. in the process, possibly missed out on this decade's greatest trading opportunities. investors are wondering if john mack's cautious moves could cause him to get the knife himself. for the latest, let's go off the record with the man who is known to put ketchup on just about everything he eats, including chicken. >> not spaghetti, though. >> charley gasparino.

>> well, spaghetti already has tomato sauce on it. that would be redundant. >> that's right. >> what are you hearing? >> it's pretty simple. john mack is turning 65. it's kind of a -- it's not really a mandatory retirement age if you're john mack. he's the ceo of morgan stanley. but there is talk inside morgan stanley -- and, you know, not at the water cooler level, at the top level, that john is likely, and i say likely because who knows what's going to happen, to turn over the ceo role this year, announce it this year, be effective next year and then the question is who will he turn it over to? the likely candidate, an internal candidate, a guy named james gorman, the head of the brokerage department, president of the firm. long-time mckenzie consultant, was an mckenzie -- was merrill lynch's mckenzie consultant, if you can figure that out. left to join morgan stanley. when it joined the rein of stan

o'neill. basically now running the biggest brokers department on wall street. bigger than merrill's. remember when they combined the smith barney with the dean whiter, mortgage brokers? i think he got 18, 20,000 brokers right now. he's the leading candidate. it's not a done deal, but from what i hear, and people pretty high up in the firm are telling me he's the likely -- >> he wants to get in, charlie. >> i heard you talking before that you were at least inferring -- they weren't taking enough risk and they were bringing in a guy -- >> i didn't -- i didn't -- i didn't infer that. what i said was the problem that john mack has, he had a pretty tough three years. >> yeah. >> he changed -- in 2005, he changed the business model from an advisory model, right, where they basically made money advising on mergers and acquisitions on the brokerage department. it was run by phil persell. when he got thrown out, mack came in. and changed it to a proprietary model, taking risks on trades, taig taking risks on whatever

you do. hedge funds, whatever -- whatever risk-taking you can do. morgan stanley tried to do it, and they lost a lot of money. he came back and after the financial crisis, came back and went full boar back to the agency model. so he did a 180. and he missed out a lot of people say on this amazing trading opportunity where even citigroup, i believe, made money during this period. >> right. >> charley -- >> goldman sachs made a lot of money. >> when you look at goldman sachs and morgan stanley stock performancewise, morgan stanley has been keeping up fairly close. they're lagging goldman sachs because of the fact they didn't take as much risk over the last couple of months, but they're doing things right. doesn't it seem like john mack has the ship going in the right direction at this point? >> you're asking my opinion. i'm telling you what -- if you're asking my opinion, yes, i do. and i think it's unfortunate if he's being held accountable for this because, you see, they're doing something right. at least according to what the -- i mean, they are not returning to the model -- they're not using the tax -- sort of the -- the sort of -- the government sort of taxpayer inspired --

>> they're doing something right by the standard of government but not by the standard of shareholders. >> let me finish what i'm saying. >> all right. >> they're not using the -- the basically the hand-outs that the government is giving people to take risks, unlike goldman sachs, which i think is a scandal in and of itself. so they're doing things right. but the problem is they -- they lost money last quarter. in a quarter like -- if you blinked you made money. >> again, by shareholder standards, they're not doing right. charley, got to leave it there. charley gasparino. >> the bottom line on this da. >> see you later. >> if you look at morgan stanley, the trade has been to buy every dip this year. why? because the stock moves higher on every dip subsequent to when the bad news comes out. morgan stanley is up 70% on the year. they've done a phenomenal job navigating their way from significant mortgage security losses, they've changed the model, they're now focused on m&a activity. folks, let's not forget the jv, the so-called jv that they've got going ob. they basically stole smith barney. morgan stanley has been a buy y all year, and it remains a buy.

>> all right. >> they absolutely stole. absolutely stole. let's see what was going on on the trading floors today. forget the iphone. the buzz out of the mobile industry today is all about the corn phone. corn, yes. the vegetable. samsung and sprint's reclaim is made from bioplastic material derived from corn. sprint says it offers environmentally conscious customers everything you newitht exceptioning sacrificing features. you get a discount if you buy a prius also. >> all right. coming up next, rupert murdock is trying to save his newspaper from extinction by charging for online content, but will that plan backfire? the $100 cream. flabbergasted when we creamed the $700 cream! for under $30 regenerist micro-sculpting cream hydrates better than 32 of the world's most expensive creams. fantastic. phenomenal.

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we do think that the new bull market has begun. it may prove that it began in march of this year. clearly many people were looking for better signs on the economy. and we're now getting them. not every sign is positive. but we've seen an upturn in things including business equipment, the labor news is better, it's still not good, but

it's better than it was. >> ar ab judge joe cohen isn't the only person to think that the bull is here to stay, but the speed and strength of this rally means there are plenty of non-believers. time to play our fun little game, bull market or bs. our guest thinks we may be in the midst of the mother of all bear market rallies. david joins us as usual from toronto. david, great to see you. >> great to be back. >> one thing to be concerned about is pe. what are you seeing now? >> well, what i'm seeing now is an s&p 500 that is de facto priced in over $70 of operating earnings for next year. i think that we'll be lucky to see $50 this year. so the market is basically pricing in 30% to 40% profit growth for next year. and also pricing in 4% real gdp growth. so, you know, at the lows, it was a show-me situation for the bears. we were, i guess, arguably priced for armageddon. we didn't get armageddon and now

we're priced for nirvana. i'm not so sure we'll get nirvana. i think it's in between. >> david, it's refreshing that you've kept your stripes. you are still the bear. we knew you at merrill. when i look around at synchronized global pmis and see that you've seen stabilization in housing prices, i'm wondering why we have to go back down. i know you're very cynical on the government's spending here, but i don't even think that's what this has been about. >> well, i mean, you focus on the pmis. you know, if i remember correctly, in the opening months of 2002, under similar -- not the same, but similar circumstances, which was an inventory build -- an inventory build that we know in 2002 was never backed up by a consumer demand, which is why gdp growth at the end of 2002 was zero and the stock market hit it's lows. the reality is that we could see it go above 50. i have no problem with that. the key is going to be the sustainability. and if we don't get consumer

demand back on an upward trajectory, all bets are off over the sustainability. so it's not just about the pmis. we'll get this inventory build. production is coming back. no question about that. that's what's going to support u.s. gdp in the third quarter. the question is, where's the consumer? where is the consumer? in the second quarter -- let me give you an example. we're throwing the rat in the laboratory, running the experiments. when you take a look at the benefits, the tax reductions, the government spending, and the second quarter came to a $300 billion annual rate and consumer spending was negative -- >> david, when we see the consumer jump in, cash for clunkers buying the autos, is cash for clunkers a good thing or are we kicking the can down the road in terms of dealing with perhaps the auto industry has too much capacity and is not able to really sell cars unless they're willing to give money back? >> well, is cash for clunkers a good thing? it's not a good thing or a bad thing. it's basically just going to borrow from consumption in the future. unless you're going to tell me

that these people trading in their clunkers were never going to buy another car in, say, the next 6 or 12 months, all this does is spring forward auto consumption that would have taken place in the fourth quarter of this year or the first quarter of next year, maybe the second quarter. once again, let's go back to october 2001. didn't we have 0% financing? didn't we have auto sales surge to 21 million units? >> right. >> hello, we never -- >> let me just -- i want to finish. we never -- >> david, real quick. >> we never saw that number again. we never saw that number again. >> i'm going to go with you on this one. we sell off, impending corrections, down 10%. real quick, what do i do? do i buy it down 10% or avoid it? >> well, i think if we're going down 10%, we're going to go down another 10%. >> okay. >> if you want to get paid -- look, there's more than the equity market out there. corporate bonds are still priced for basically -- >> so there's a lot more to a -- >> if you like the cyclicality,

go for bwa credit. it's priced much better now. >> david, always a pleasure to have you. david rosenberg. >> thank you. >> cash for clunkers. we said this yesterday -- >> look, there's no arguing with david. i'm not going to get in the way of that. i will say on the cash for clunker, i think we've had pent-up demand on the auto side that this is just feeding. we didn't sell cars -- >> pent-up demand? you think people were waiting for -- >> yeah, i do. i think people -- there was no credit and people -- there was a heart attack in this country. people stopped buying cars. i think what we've seen -- it's given them an access point to bring them out. i'm not saying they're bag at a $16 million but not at a $7 million pace. >> i think they needed some major incentive like this to get them in there to buy. clearly this is working to that extent. >> all right. let's move on. next trade, it is time for our "fast money" street fight. last night, rupert murdock announced newscorp will charge for access to all the company's online news properties which include "the wall street journal" and the new york post.

will this move prove prosperous for the strengthen media analyst? joining us with his call, david joyce. david, great to have you with us. what do you say? once you let the genie out of the bottle, can you put it back in? will you pay for the content? >> well, if you don't get consumers used to paying for useful content again, you're not going to have any useful content. that's the bottom line. that's why newscorp is really taking the lead here. the whole newspaper industry has been trying to rally around this, but really trying to get people to realize they need to pay for it. they got used to paying for paper delivery. now they've got to get used to internet delivery. >> in that period where people are getting used to paying, will we see a hit? >> i do think -- yeah, i do think there will be a short-term hit on advertising revenue that is based on the number of people using those websites. that's the thing that those content owners, newspaper owners, have loved is that the

people -- there are a lot of people going to the internet is reading their content. you will have some short-term dip from the advertisers, not having the eyeballs, you know, to point to. >> right. but david, didn't they probably get used to getting everything free so it's going to be a difficult transition to get them to pay for this content now? >> if they -- if they don't pay one paper's website, they're going to maybe look where they can get the other content for free. but that quality would keep getting lower and lower because they can't be paying for quality reporters, per se. so at the end of the day, if the consumer really needs to get quality content, they're going to have capitulate and pay for it. >> david joyce, thanks for being with us. are we buyers of any of the newspaper stocks? >> i don't see -- i don't see how it works. you let the genie out of the bottle. i'll pay for the "wall street journal" potentially online. but, i mean, i get the "post" for free now. the new york post. there's no way i'm going to start paying for -- >> how do you get it for free? >> go to the internet, girl. absolutely getting it for free.

>> oh, okay. >> that's my point. if i'm going to start paying for it, i won't do it. i don't know how you can go from giving people content for free and then making them pay. >> there's a generation of people that have learned you can get anything free on the internet. it's going to be hard to retrain them. >> those gen-xers stealing music. >> i forgot about that. let's move on. tonight's question is will paid prescriptions save those media stocks? a, yes, that's the only way they can survive or, b, no, you can't put the genie back in the bottle. log on right now and cast your vote. let us know what you think. let's move on. "fast money" is putting away the red bull and the double mid-cafes for pety down there. taking it easy, just for this one week. you will find the trades for the long haul. yes, "fast money" is about to become -- actually it's --

>> it is. it is. it's not you. >> all right. pete, what is your slow money trade? >> we've got to be quick because we've got to get through this segment, but joy global. if you look forward, it's not just a stock that's been moving recently, but it has plenty of room still to the upside over the long term. made a big move recently on a lot of great news that's come out. you look at the stimulus package that won't really start to kick here, but also look over to china. they have great global exposure. when people have their resource demands start to really, truly pick up, you're talking about iron ore, coal, copper, that's are all the name these guys are feeding into. that's the first line and that's why you have to look at joy global going down the line. i love joy global. >> that was your -- >> slow money. >> that's really good. all right. coming up next, the economists have had their day. now we turn to the traders for a reading on tomorrow's big jobs report. and why the stocks that bottom of your screen were on your list of "pops and drops." stay tuned. on tonight's trader radar we

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on the trader radar, the owner of chile's and macaroni grill was the most active on the nysd today. welcome back to "fast money." here's a look at what we've got coming up for you. think media companies are dead money? we've got a movie stock that is up 100% this year alone. and is buffett back, baby? berkshire earnings are tomorrow after the bell. we've got your setup tonight. plus, why options traders were bringing on put production today. we'll tell you what they were worried about. but first, the fate of the rally after tomorrow's jobs reported. will the number confirm or deny the market's recent strength? joining us on what he's seen from the pit, the pit bull himself, rick san tell hely. himself, rick santelli.

rick, we've got a lot of -- goldman sachs coming out more bullish. adp coming out better than expected, but that doesn't reflect the government layoffs. that we've seen in the past month. where do you fall? >> the whisper numbers are getting silly. every guy at that desk has heard the same thing. these numbers are getting into the low 200s. having said that, let's look at the facts. 18 straight months of job losses starting in january of '08. my opinion is is that the traders in general do not believe you're going to see a shocking number to the upside. however, as we head from trim tabs today, even though there's a big story, i think the biggest story of the week was the huge drop in personal income, down 1.3%. the feeling is that income, jobs, the assumption side, that's key. this report, anything with a one handle is going to be perceived as hugely bullish. my call is 350. i think you'll see a 0.2 uptic in the unemployment rate. but the key, guys, i think you're going to see two months

of downward revisions to may and june. how do you deal with that, in your opinion? >> we don't care. we're already seeing that the consumer is stabilizing. we're seeing credit card delinquencies are stabilizing. if these numbers are worse than they told us, we don't care. the other data is very supportive -- >> you're looking at the rate of change argument. it doesn't matter what the revisions are this point moving forward. well, let me swing another one by. pete, what do you think if we see, as expected, let's say we see down 300,000 jobs but an uptick to 9.7% on the unemployment rate. do you think stocks will sell off on that? >> the textbooks tell you it's a lagging indicator. these days i say it's a leading indicator because people are watching. if people feel like they're losing their jobs, people will stop spending money. >> they're focused on that, and that's why i still pound the table. you put it on last night as well, rick, when you talked about how cheap the volatility is. that's why i think you're seeing so much protection. being put into this market right now because people do have concerns. they want to be in, but they

want they want to have protection. >> rick, it's joe. let me toss one out at you. one of the greatest traders around said today he thinks it's a bear market rally. where we sit right now, s&p value 1,000. do you think hedge funds are looking for the entry door or the exit door? >> i think they're looking for entry, something to sell. obviously selling in the strength in this prozac pricing hasn't worked. i think you're going to see something we haven't seen in a while. i know everybody says they're buyers waiting in the wings for dips, but i think a dip of more than 3% or 4%, they're going to sell into weakness. >> rick, got to leave it there, pit bull. thanks a lot for your time. your screen saver -- >> good lord. >> he's a legend. >> he is. he is. i just like the way you said -- >> all right. and a great philanthropist. let's move on. time for today's edition of "pops and drops." canadian solar was up 7%. pete?

>> revenues are up 131%, canadian solar. they were negative, now they're positive. everything is going right right now. >> it was up 13%. >> much like the gap, comps were lousy but better than expected. thank you for that photo right there. and inventory is down. 6% on a cost basis. they're doing things right. gap is doing things right. but you know what? i'd be taking profits. >> the video is over. let's move on. american express was up once again, up 3%. >> let's get that same footage up. this is a boring topic. it is improving. i say it again, it's the best trend they've had in 18 months. this is reason not to be bullish, but to be confident that things are better. >> we've got a drop here for sunoco. joe? >> can we tie in the victoria's secret footage with sunoco? >> there's got to be a way. >> it's been a hot trade over the last couple of weeks. pulled back today. sunoco, you want to buy this one around 23.50. win problem with refiners, keep this in mind, hurricane season

is not going to be as early as anticipated. >> we've got a pop here for our own david faber. the 23-year-old actor will star in the sequel to the hit "wall street." he was caught carrying the book and then the roof caved in around the streets of new york. >> wow. >> why are you laughing? it's a fantastic read. good beach reading, by the way. >> it's a great catch by the photographer. >> it is. >> pop here for sears holdings. up 3%. >> the only thing i could find on this whole thing is potentially maybe the stocks broke through technical levels. there wasn't a lot of news out there. but look at that stock. it's bursting to the upside. >> we've got a drop here for camel. >> huh? >> what kind? >> not the cigarette. >> joe? >> a saudi arabian company was marketing chocolate made from camel's milk. you remember that story. we told you that right here on the desk. now australians are looking to the mammal as a source of protein. they will begin to eat camel to

combat the creature's exploding population. meat apparently tastes just like chicken. no, just like beef and with less cholesterol. would you try it? >> hell no. are you crazy? >> i would eat that up with a little tabaskco. >> tastes great. coming up next, the stock that doubled this year thanks to "harry potter" and "transformers 2." the ceo of imax explains why 3-d movies are causing his stock to leap off the chart. undefeated professional boxer floyd "money" mayweather

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welcome back to "fast money." we're live in new york city. want to take a check on shares of cvs. coming in ahead of expectations. revenues slightly off. here is the highlights here on the conference call. the company is sticking by its full year guidance. you can see that swing higher in the after hours session. any buyers of cbs? >> no. >> ad revenues too scary? >> it feels like they're covering a short rally. if you asked analysts, they'd say the stocks are still going lower. i'm not going to -- >> they've had a lot of activity, though. in the previous couple of weeks, you've seen a lot of activity. people expecting something good out of this. >> but that chart told you why you don't want to jump into this. there's too much uncertainty.

on ad revenue and that stock's had a huge run. >> time now for an earnings edge. imax making a huge comeback this year. more than 110%, procepelled by summer 3-d hits. the summer starts to cool off. what can we expect to see? richard is the ceo of imax. he joins us. richard, it's a pleasure to have you with us. >> great to be here. >> you're in the midst of a multi-year turn-around. what is clicking this year that is sending the stock higher? the loosening of the credit markets, the theaters finally having the ability to lay out the cash for your technologies? >> it's the network effect. if you have more screens, you can get more movies. if you can get more movies and better movies, you can get higher revenues per screen. the closest analogy would be an hbo. it has a fixed cost of revenues and as they get more subscribers, it becomes more profitable. we finally have enough theaters where we can get the really good movies and the really good movies are playing well at the

theaters. >> in the second quarter, you signed seven deals. then you signed another eight. how sticky are those deals? in other words, if the economy takes a downturn, if the theaters see demand cool off, are they able to cancel those deals with you? >> they're not. but as a practical matter, our backlog is over 150 theaters, some are joint ventures, some are deals where they put the cash up. so the backlog is -- is pretty much good. >> your backlog was 246 this time last year. it's down to 171. can that rate continue? do you see that slowing down? >> we think our growth can continue. we signed 100 theater deals about a year ago. we're rolling that out very quickly. our backlog is still high. by-cal standards but we're opening two to three theatres a week right now. whereas we used to open about 20 in a year, 20 or 30. so that kind of sustained growth is bound to challenge your backlog if a short period of time. >> you talked about the economy, the more you get, the more screens you're at. i notice your revenues are stuck around 60% in terms of the u.s. markets. why aren't you growing globally? when i lived in moscow, when viacom came there, it was the

most popular thing in moscow. these guys everywhere else around the world seemed to be growing. would are you somewhat stagnant? >> in the last two years we've really grown in north america. before that two-third of our growth was international. it's more like a see-saw. we just announced in china that we're taking chinese films and turning them into imax films. we just signed a deal in taiwan last week for six theaters. china is a huge growth market for us. russia is a good market. so i think it's just a snapshot in time. >> richard, melissa is going to give me a hard time about having to talk to you about this. your quarter ended june 30th, correct? >> that's correct. >> that means we've only and you've only had one week worth of the benefit of megan fox's movie, right? >> every other -- >> no, no, in your earnings how many weeks of make an fox in 3-d did you actually have? >> she was in 2-d, hate to disappoint you. she looked okay in 2-d.

we had one week and -- >> only one week? >> and there were four more weeks after that. >> richard, a pleasure to have you. hope you'll come back. >> thanks very much. >> the ceo of imax. coming up next, one of today's most popular trades. why traders are getting defensive in the pits when we go "trading after dark." ♪ ♪

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welcome back to "fast money." we're live in new york city's times square. want to check a check of nvidia. it is rising after hours. it beat the street in turps of its earnings. it raises forecasts for the years. it is up, by the way, some 62%. so far this year. so you see the action in the after hours. okay. let's move on here. cue music. >> there we go. oh, yeah, baby. ooh, yeah. >> that's a little x-rated, tim. >> all right. you know that music. it's time for "trading after dark." the g-rated version. jared levy has his own hedging plan. he joins us from the cme. what are you doing to hedge yourself? >> just setting the mood. melissa, what's going on? as we move higher here, the thing that most investors do is

buy puts. as you progress higher, you buy the puts because that provides absolute protection. one thing traders need to be looking at where we've seen a lot of bullish action is in the slv. that's the silver atf. it's trading around $14.34 a share. it's highly correlated to gold. if you're a gold fan, you can use silver as a proxy. it's cheaper, it's slightly more volatile, and believe it or not, it's performed better this year than gold. the other effect silver seems to have is an adverse effect to the dollar. if you think the dollar will weaken, silver is a good investment for that. you buy silver if you feel the dollar is going weaker from here. obviously with the bank of england making its move this morning, that puts pressure on our dollar, sending silver lower. that might provide a good buying opportunity. >> jared, got to leave it there. thanks so much. "final trade" right after this.

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all right. you see there sonia sotomayor leaving the new york courthouse where she works. of course this is after historic confirmation as the first hispanic justice on the supreme court. the third woman ever to sit on that court. >> very exciting. time now to reveal who lost the most money today. hank greenberg doled out a whopping $15 million to settle fraud charges with the sec. don't feel too bad for old hank. he still has plenty of cash lying around.

well, all right. "final trade" here, timmy. >> if you are concerned about oil prices, petro is in a lot of trouble down in brazil. >> look what it did today, traded up $18.10. >> how could you not buy imax understanding -- just understand this for a second. meagan fox was in those earnings. >> if i had a dollar for every time you said meagan fox on this show, i'd be a rich woman. >> chase after that dividend yield. these guys are giving you almost 5%. you've got to like ppl. that's our show for tonight. i'm melissa lee. we'll see you tomorrow at 12:45 for "the halftime report" and tomorrow at 5:00 p.m. and midnight for more "fast money" here on cnbc. here on cnbc. have a terrific night. announcer: the following is

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