what it should do. >> and the things that were weak were strong. the dollar gained 70 basis points at end of the day and what joe said about the fed statement, i agree. and i think that's the turnaround. in other words, they began to till the timetable for taking away some of the stimulus. they began to tell you even though they extended the mortgage maturity through the end of the first quarter that they'll be buying back they're keeping the level the same. i think the market's reaction is that things are better. and i think you take away some of that stimulus, some of that crack pipe, pardon the expression, but the market has gotten used to this. when they take that back -- >> crack pipe? >> i grew up in the rough streets of westchester county. i mean, what can i tell you? >> so when they take that away, tim. sorry to interrupt. >> i think this is the trade. and i agree with pete. no panic here. volatility did return. but 20% above the 20 moving day, not the 10 moving day on the s&p. that's the reason for this thing to pull back and i don't think this is a big surprise or a reason to think this rally's over. >> karen, how did you interpret the fed statement? i know you watched that. you parse the words very carefully. >> i do. i didn't think there were any

surprises in there at all. they said we're going to continue to keep rates low for -- they didn't give a date. we didn't really expect one. but they did seem open-ended, which i don't know how long that was. i expect them to be a little more optimistic on the economy, which they were. and then they told us a little, team mentioned about when they would phase out bond sales. we knew already treasuries, that that would be ending. so no surprises. and i think of all the fed meetings in the last year really nothing so eventful came out of this. i don't view a lot into the sell-off. >> in keeping the rates low does that make you more optimistic about the u.s. consumer? they have low mortgage rates to stick around, low credit card rates to stick around, low auto loan rates to stick around for that matter and more money to spend at the end of the day. >> at the end of the day what the fed is doing is trying to revive lending, consumer lending specifically, and then you also have an unemployment rate that continues to rise and economists will tell you it will continue to rise throughout 2010. you're not going to raise rates until that unemployment rate

actually peaks out. at that point you can think about moving rates higher. >> it was a milquetoast report. we got something that was pretty dull, got that little move to the up side. it remains a trader's environment. i think long-term it still looks bum bullish. as karen just alluded to, basically they're talking about we're starting to see this little bit of a recovery, starting to see these various things, savings rate, the capabilities of people, but what it comes down to right now people are looking at this market, they're taking the opportunities, when they get the opportunities they are very fast to react. >> your outlook for the market and your investment thesis, has it changed in the past 24 hours? prefed versus right now. >> here's the other side. for people who don't believe this rally has real legitimacy if you remove the stimulus, the fed is probably -- certainly the bid for the mortgage market that's coming from the fed you can measure it here. 70 to 80 basis points in terms of mortgage rates. that's very important here. if you take mortgage rates back close to 6%, i think you do hurt the consumer. i think you do hurt the reifies. that's cash flow per month even for people who have adjustable

rates. i think the consumer is in a rough place. i'll take the inside of this even though i'm generally long-term bullish. the consumer gets hurt by today's fed comments and that maybe changes if you think the fed has to rush to change this policy. >> let's move to the next right here. crude clobbered today, oil sliding below 69 bucks a barrel on those inventory data. the inventory build. oil services stocks hit the hardest. joe, what's your thesis here in terms it of crude oil? >> i think you look at the entire commodity space today. there was significant weakness. also dollar related with the strength. and i think energy, i think oil itself is what stands out to everyone right now. oil is an investable theme. everybody wants to know energy. when you look at the energy space you have to own the question do you want to own oil or natural gas? what is there more potential for in terms of up side? and i truly believe we have seen some stability in natural gas prices and natural gas might be the actual trade moving forward. just a quick trade on oil, if we did not have the significant lower tape at the end of the day, i probably would have come on here today and said this is a

true testament to how strong the he equities market is that it can finally disconnect with the relationship between oil. oil does not have to continue to move higher for the equities market, the s&ps to move higher. and i think that's important to understand the underlying shape of the overall market. >> there's a balancing act, though, because the markets do want to see oil go up to a certain degree but then once it hits a certain level then that's a negative, that's a headwind. there's a range at which that's a sweet spot for the equity market. >> absolutely. and the opposite of that is you don't want to see oil decline significantly. there are some ominous forecasts for oil to go to 25 bucks before the end of the day. you don't want to see something like that. >> oil broke some pretty heavy trend lines today. i think this is where you start to look at your thesis. oil stocks outperforming the underlying commodity. i think you can still get that but i think you've got a couple more days of this. i look at total with a 5% dividend yield. they'll have some announcements tomorrow. prudent inviting some of the oil companies to russia tomorrow to maybe begin to let foreign oil

access back to russia. watch that. it's going to be very positive for total. but that stock was off roughly 2 1/2% today. i think these guys are all trading near their tops and as much as i think oil stocks can outperform here i think you've got a couple days of this and i would not run in there right now. >> it's been a grind. oil is basically up $2, down $2. trading something near 70. we pulled back significantly today but yesterday we popped significantly. each and every day i'd like to say oil sort of grind right here. long ago we talked about $80 oil that's going to hit the pocketbooks because that will start hitting people at the gas station. $70 oil, that's acceptable. we're willing to pay 3ds at the pump or somewhere near that level. $4 oil that's unacceptable. that's what hurts the consumer. >> natural gas is interesting. natural gas itself higher and then the ung again underperforming. that divergence has actually widened a fair amount in the last two or three weeks. all technicals related to the ung etf? >> it's technicals related to

the ung etf. also the massive contango that exists in the marketplace right now. and ung is respective of the spot contract itself. that's where you see the most bearish fundamentals. that's why you want to get your arms around an xto, an apache, an eog resources, a real company exposed to natural gas pricing but longer term. >> at the same time, joe, those stocks have been outperforming the commodities, the ung for the last six months. if you take a look at for instance chesapeake versus the ung because that's a retail investor's option into natural gas, chessspeak outperforming by a wide margin here. >> look at you with that chart ready. >> it's like i was thinking it and it came up on tv. >> i think it has been outperforming by a wide margin and i think it will continue to outperform by a wide margin, specifically if we get the cold winter we're anticipating. speaking of a cold winter -- sorry, pete. >> every time you see coal start to back off, and you got a big

backoff today in a lot of those names, that's the time to start looking at them. maria and a couple of the folks were talking with these folks at the summit today. and i'll tell you the arch coal ceo he put it very clearly. he said 80% is still coming from fossil fuel, yes we're trying to get more efficient, build coal fired plants everywhere, germany is leading europe right now, but i'll tell you what, 80%, that does not switch overnight, suddenly to sole, suddenly to wind, suddenly everything else. he estimated at least a decade for those -- >> some might argue it's a national security concern as well to use coal, to keep that into the mix, because we are the saudi arabia of coal in the united states. >> absolutely. >> as the coal ceos tell me. but it's an interesting argument. but karen, for chesapeake energy, that's a name that you have begrudgingly recommended because of the pay package of its ceo. at the same time fray valuation perspective at this time with a run-up -- >> you don't want to be in the ung because of some of the technical issues, but you do want to have exposure to natural gas.

that is the way to do it. >> let's move on to what was popping the tape today. technology. apple, google, palm, hitting new 52-week intraday highs. rimm getting ready for its earnings report tomorrow. amazon getting an upgrade from bernstein. that upgrade from bernstein very interesting. bernstein citing video game sales as the reason why amazon will be a good bet in the future. and i thought that was interesting given the dim outlook for video game sales for the rest of the year. >>ling it's certainly a sector there's a lot of competition in. there's competition from the online gamers and the various forms of hardware coming out of china for that matter. as i look to that and i look to some of the comments out of google which is people are having trouble finding ways to have growth. so the companies with the greater cash and the balance sheet with the ability to make acquisitions are not going to buy growth. that's a little concerning for google when you get those kind of kornlths even though that should be coming in some sense from a sense of strength because that's where their balance sheet is. >> i think you're still going to

see this pc upgrade psych many driven by strong corporate balance sheet. technology clearly has been an outperformer and it should be in a deflationary environment, you're looking at a sector that has the best balance sheets, they're going to be the ones that can survive, if you look at the smartphone trade, the chipmakers, whatever you want to look at, going forward these are the names you want to be in. >> and mr. otellini addressed that as well -- >> paul otellini. paul otellini. >> the embedded chip. he talked about cell phone, the growth there. we know how well they're doing in the netbooks area. but they've got growth. they've done a lot of it through acquisition. they've done plenty of acquisition over the last two years or so. so they're finding ways to grow. over 20 today. didn't close over 20. guy adami's been talking about this for a long time. i still like the stock. i still think it's ready to move. but it was disappointing at the end of the day that they could not hold above 20 for intel. >> let's take a look at the chart day of the and show you how strong tech has been in this market. in fact, tech became the first s&p sector to actually close above its prelehman levels intraday. it had reached those levels.

but today the official close above those prelehman levels. what does it mean now? it seems like it was the first to run higher so maybe it's the first area where people will take profits. >> absolutely not. no way. that does not happen in the tech sector. >> had to throw that out there. >> the fundamentals of technology are so strong. it's where you want to be. it's the opposite of what other sectors' balance sheets look like. technology, whether it be -- look at the amount of cash that they have to do the acquisition that's timmy points out. look at the exposure they have into asia pacific. they have the international exposure 37 they have tex exposu exposure. and you are going to see growth -- >> you continue to see people raising their outlook, continue to see the margin expansion. so yes, they had to do some cutbacks. yes, they're a little more efficient. but in some cases revenues are higher than they were a year ago. in some cases sales were higher than he they were a year ago. this isn't like everything else where they're just beating a low bar. these guys are exceeding last year. look at xilinx today, what they're projecting to be their

quarter. everything looks like it's moving right forward right now for most of the technologies. >> and also the inventories. they've managed the inventories phenomenally. >> and the capital markets bid is something that's going to be a big part of the fourth quarter again. look at what google's doing, microsoft, ibm. these guys are all consolidating, getting into each other's face, getting into the crowd computing. the guys not there are gettinging into software. the guys that are not there are getting into the online services. so this is where i think you get excited because all the big boys want to get bigger. >> rimm is going to be i aclincher tomorrow after the bell. there's high expectations for this stock. one of the stocks that today managed to finish sharply higher. any options activity -- >> there's no doubt they've been coming for the calls for quite a while but this stock has been moving long before day and long before this week. it's continued to move higher. we know the analysts on the street continue to move up -- rbc's got a 150 price target. we are talking about extreme levels for some of these names. research in motion, it's going strong but this stock has made a

huge move in front of the earnings. right now the volatility starting to escalate in the front month. tomorrow will be the day where you're going to see will there be enough of a diskrepgs where you can do one of these trades, play one month against the other looking for that volatility exposure. >> just a programming note we will be talking to a top-ranked rimm analyst jim seaver later on to get your setup. take a time out and check on some after-hours action. software maker red hat posting its earnings a beat better than expected second quarter results and we do see a spike in the after-hours trade. we will talk to the red hat ceo in tomorrow's program. so that thb interesting to get sort of the colors behind those numbers tomorrow. let's talk a little more options action because this was one that was really getting us to scratch our heads here. the ertz attention. all 20 calls very heavy activity today. >> this is a stock that's well lagged. when you look at the nasdaq and it's up 35% in the last couple informs r months, completely underperform. look at the balance sheet.

strayeded 250,000 options by the end of the day. average has been 16,000. most of the targeting october. i'll tell you what, though, melissa it was another one of these trading environments. the stock moved an extreme amount today. as it was moving those options moved as well. look at that chart. those are the oc 20 calls. >> sort of like a virtuous circle. >> you could see it during the day, people taking off some of these trades because in many cases today the options doubled today. why wait? you could see people trying to take some of this off. a lot of this is a tax to various rumors. all the rest of it. who knows what the truth is there? we faux do know they've underperformed, got unbelievable cash, almost no debt, but they've been really struggling to show any kind of profits and growth. >> and just to be clear we are reporting this because it is moving the equities and it has been reported in the press and microsoft is reported to be an actual acquirer of erts. we called mieshlth and they said they do not comment on rumors.

>> it's a reality it is moving the stock price and therefore it is news. >> exactly. legs move on to the next trade. the reversal that followed the rally after the fed's decision. here to help us decide why the bears took over and what the fed did wrong if it did anything wrong is dennis gartman of the gartman letter dennis always a pleasure to speak with you. >> good to be here. >> did the markets turn around because of anything the fed said in the statement? >> i think what ended up happening was we took a look and after previous fed statement for the past year or so the market has gotten strong, people bought it again today. after the sustained rally, the first sign of weakness, somebody said uh-oh, this main be the same thing that we've seen before. down it went. was there any major change in the fed statement? no. and that's exactly what the fed should have said. nothing really different. no real change. >> so your perception of the markets and the trades that you are putting on, have they changed from 24 hours ago before this fed statement was released? >> for the money we run, yes, a little bit. we were actually slightly, and the operative word here is

slightly net long. by the end of the day we went home slightly net short just because you had an outside reversal day and i pay attention to outside reversal days. >> hey, dennis, i'm curious on copper because we see the dollar showed a little strength today. what's your opinion now on copar? copper now seems to be pulling back a little bit. do you still like freeport-mcmoran? do you still think there's up side there? do you think the dollar is a one day and done, it's going to pull right back? or what's your opinion there? >> i think copper has a problem here, doesn't it? freeport still probably six months from now it's still a good company. but copper itself, very bad performance in the copper futures in the past two days. looks to me like copper's breaking down. so freeport's going to have a couple weeks of problematic trading. if you're long, you might want to be somewhat less long. >> but let's not confuse what's going on with copper -- the dollar's strength today was a reaction to the fed and again a reaction to the stronger markets, i believe. therefore, i don't think this weak dollar trade is over, and i think this is a lot of guys who came into this number, were

nervous as hell. the short dollar trade was the most crowded trade on the street. i'm curious, dennis, what your view is then not on today's reaction but on tomorrow's because is the dollar going it continue this path higher? i think the street right now is very confused and that was why we traded violently toward the end of the day. >> again, tim, i think it's a matter of where do you think the dollar's going to be in a month as xhcompared to where it's goi to be tomorrow. tomorrow the dollar might get strong again, not dramatically. a month from now, two months from now the dollar's going to be demonstrably weaker than it is now. in the next 48 hours wouldn't be surprised if it's slightly stronger. when it does get slightly stronger, finally they'll take the people late to the party. everyone you know has been selling the dollar. that ship has listed heavily to one side. a few people are going to get taken out of their trades. when they do you want to sell drarz. right now it's a little oversold. >> dennis, it's karen. what did you think of the action in gold today? kind of a volatile last two hours. >> sure was, wasn't it?

you got up as high as what, 1,017. traded down to 1,003. gold's stuck right here. somebody, someone whoever it is is trying to keep gold below 1,030. i'm paying more attention to what gold's doing in terms of the other currencies. it got up to 700 pound sterling per ounce. a breakthrough 700 pound sterling per ounce to me would be very bullish. someone's trying to keep it down below 1030. they're going to succeed for a while. >> dennis, always a pleasure. >> thanks. >> dennis gartman of the "gartman letter." don't go anywhere. more word on the street coming up. can the company that brought us the model t dominate in exotic lands with dangerous competition? ford's laying the groundwork. but is the ambassador buying it? ♪ i've got the power and he's in charge of california's biggest utility. with energy demands growing, he'll tell us why banking on

green energy is in america's and the market's best interests. plus, will strong sales from rimm tomorrow raise the stakes in the ever-escalating smartphone wars? the top analyst settles the score. when america's post-market show continues.

david, it is nice to speak with you. in terms of what you're listening to for out of the g-20 me meeting, what is the main thing you'll be listening for and the trade that goes along with it? >> sure, a couple of things. first of all, a weaker dollar. you're going to see that happen. it has to happen for u.s. exports and for the health of the global economy. that's a big initiative for the administration. so watch those gold plays, which will be good. watch out for food and fuel price inflation around the world, which a little bit of inflation can be good but if you have a weaker dollar you're going to get a lot more headline inflation, which could be scary. also watch for -- yeah, go ahead. >> weaker dollar. when is it going to be at the expense of the chinese yuan, which we really need to revalue a little bit?

ways to play that, by the way, the cyb. how do people start to feel about that move? >> well, if you think about what the chinese want to accomplish and what the u.s. wants to accomplish. the chinese want to have more consumption going on domestically. the u.s. wants to have more exports and less imports. so you're going to see exactly that. a weaker dollar and a stronger yuan. play it through chinese real estate. the chinese love love to buy gold and love to buy real estate in times of inflation. buy hong kong real estate. especially residential. >> i know you're very built up in brazil on the consumer story, as am i. what's the best way to do that? >> you know, i love the credit card processors. they're a little hard to get. you've got to buy them locally. you can buy cbd, which is the adr for one of the retailers there. or the bank. icub. we've talked about it before. it's a great way to play that emerging consumer, not just in brazil because cross latin america. >> david, i'm going to try to talk a little faster than you if i possibly can. i don't think i can but i'll try anyway. the obama regulation plan, should i be concerned about china itself and the growth being restricted? >> no, you should not. what you should be concerned about there is if obama can't

get something done the europeans are going to do something harsher. the reality is the chinese are irritated with the developed world because we haven't done anything a year into this crisis do change the compensation packages and regulation of wall street and the financial world. that's what they're focused on. obama better get something done or the europeans are going to do something harsher. >> hey, david, how about some of these engineering plays? it's an area i move to when i'm trying to play this weaker dollar because of all the growth globally and you're still getting the energy play as well. do you like some of these names in the space? >> couple things i would do right there, swiss giant abb, the infrastructure company, does a lot of these buildings around the world in infrastructure. also buy vale, buy the iron ore producer because there's a lot of steel going into those ports and airports and dams and utility structures around the world. >> tim, what are your trades? >> i know david is also a big fan on kind of the global food trade and there's a couple companies that are rising up that are -- brazil foods, we've talked about this. this is now the world's largest food company. pda. completed their merger this

week. this is essentially i think stealing the mantle from tice-upon and another name for pork and and beef in china which is what people know what they are eating. a company with the ticker hogs. these guys are appropriately enough the guys you want to play if you're buying pork, beef-f you're buying increase in the demographic protein content and the living standards out in china. >> those are also your picks, david. specifically on hogs it's had a fresh run-up. would you commit fresh capital to this name? >> i would. i'd do it today and tomorrow. it's a great name. you've got to buy the chinese consumer and tlnz too many ways to play it, certainly not ways that are high quality like hogs. >> and in valuation some people would think emerging markets are expensive. hogs is actually trading at a discount to tyson. david's right on with his trades, right on with his view globally, and obviously -- >> right on. >> right on, david. way to go, buddy. >> don't confuse it with hog, which is harley-davidson. >> right. completely -- >> a man that gets a lot done in a short period of time.

>> david riedel, always nice to talk thank you wu. shares of ford up 5% today after ceo alan mulally saided the company plans to expand its cavity in emerging markets like china and india and unveiled a new car today, the figo. it also talked about its forecast for the united states, saying that auto sales in the u.s. should hit 14 1/2 million units in two years. it will also be profitable in about two years. that's the best estimate right now for ford. >> and they're far more bullish on the u.s. market than anyone else. and that's very good because i think they're in the best position to test the pulse. mulally's going to be not only in india but he's going to china later in the week be. they're opening a plant there. china and india are the two car markets that are going to revolutionize the industry. and the guys that are best positioned there, the guys that are really going to be the places to buy going forward. >> do you know what figo means? >> sorry? >> do you know what figo means? >> no, i don't. >> it's italian. >> where's guy adami when you need him? >> i know. >> come on, guy, why are you

taking this day off? >> you know italian too. >> i have no clue what it means. you know what it means? it means ford's going higher. >> it means cool in colloquial italian. >> it's ford for four-door hatchback that's going to be their main model that takes over asia pacific. mulally is putting his stock in a market where you're going to see 3 million units sold probably in four or five years, which is essentially doubling where they are right now. they're very well positioned. watch tata motors. >> the international story for ford is obviously phenomenal. a lot of potential there. but also look domestically. alan mulally, he has just done a phenomenal job navigating through this crisis. ford clearly, when everyone went underwater, ford was the one that was able to hold their breath the longest. i think now where ford sits, where it's slightly north of seven bucks, this is probably where you've got to step in and buy it again. >> if mulally's forecast in 2011 comes true, karen, does that make the automakers attractive in your view?

>> they've had a huge run up. if that were to happen, yeah, it's like borg warner would move higher. but that is a big move from where we are right now. not that it can't happen. it could happen. i think we've just pulled some sales closer with cash for clunkers that maybe aren't initial -- that aren't incremental demand. >> you're factoring in quite a time frame there. if you're looking at ford, by the way, the option there's dirt cheap right now. the opportunities are there. if you believe in this story, if you believe even going out six months, nine months, the options go all the way out into the leap options which go out multiple years. gives you an opportunity to get involved with -- >> real quickly, and on their balance sheet, that which was -- you know, what you were vilifying these auto companies for, ford increased their cash position by 3 billion in the last quarter, they're knocking down debt, their cost basis suddenly fantastically cheaper not only because they've improved with their unions but they've restructured a lot of get. >> and mulally told us all this when the stock was trading 4. that was the opportunity. that's when we were all looking at ford it was attractive. it's a little less attractive up at these levels.

>> and they've got to be gaining market share if you look at the u.s. market. >> let's heads to our prop desk now and take a look at all the secondaries hitting the market. certainly a lot of them in the past couple of days. tom e trade u.s. air three companies today alone raising cash with more stock offerings. so we couldn't help but ask what does this signal for the u.s. markets? because you've got to think if companies are rushing to get out there with their offerings it's got to mean something for the markets. take a look at this chart courtesy of trimtabs and charles bidd bidderman showing stock offerings in terms of ipos or convertibles they do tend to correspond with market tops which mean trouble for this market. is that the sort of leap you make as well? >> for some of the ones that were really indebted like the reit space and they were able to issue billions upon billions of equity it's a positive because they have life now. very short-term maturities that they were afraid how are they going to refinance, now they have life. i don't read it as so much of a short-term -- i think we're going to see more and more. >> i think it's a sign of an

improvement in credit and equities market. i could see if this was a 1999 environment we're basically coming from armageddon. it's a good thing we're able to have these offerings and they're successful. >> heidelberg cement in jernl and cemex restructured a billion and a half in debt here. that's very bullish not only for the balance sheet in cemex but it's telling you something about what their business is looking like, the ability of investors to come in there we've also heard about on the credit side a lot of new debt. there's actually a hlavac high-grade paper for guys to y buy -- >> in the case of the cemex 130 million shares. this stock was four bucks and now it's 13 and they priced it at 12.75, i believe, tim. >> yep. >> they're taking advantage of this big run and certainly as they flood the market yes, it's a good sign. yes, it's going to improve balance sheets in some cases the banks and all the rest of it. but it's telling you something. >> exactly. go get it while the getting's good. >> exactly right. >> get the smart trade ahead of

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welcome back to "fast money." before we get to rimm and the preview there, let's go to some breaking news. we've got the news that the s.e.c. is in fact charging a perot systems employee with insider trading. remember we flagged to you the heavy call activity in perot systems prior to the deal being made with dell on monday. we saw that activity on friday. we talked about it on the desk, pete. so it's not entirely -- >> it's not newsville. the only reason it stuck out at all, and i know john and mike ko i believe were talking about is this thing trades nothing, i mean, virtually nothing. and suddenly it trades -- >> which is why, karen, this was incredibly -- >> it's unbelievable how stupid it is. i mean, as far as like the plan goes, this is idiotic. they had to own the oc 20s right then? >> on friday. >> on friday. >> going into a weekend. i mean, that's the -- >> and they work at -- >> for $8.6 million. was it worth it? >> maybe he's related to bernie

madoff. >> but that's real money that he made. >> let's move on here. time to take a position in blackberry. research in motion reports second quarter earnings tomorrow. smartphone trade has been topping the tape this year with rimm, paul, apple all enjoying triple-digit runs but will rimm be able to keep its streak going? jim, you're in the wall street camp that believes that rimm will have a very bullish report tomorrow, bullish forecast. how bull ssh your expectation? >> well, we actually think the stock could easily move to $100 in the next 12 months. and as we think about this, the company is growing unit sales by 35% year over year during a recession. what happens when the economy improves? we think with smart becoming average that growth will accelerate into a higher gear once the economy improves, but right now 35% year over year that's pretty impressive. >> jim, what's going on with the margins? that's obviously what people are watching. they've been outsourcing a fair amount as well. your forecast on that, because

third quarter really i think is what takes this stock which is already near its highs to the next one. >> smart question. margins is what really tripped rimm up last year. the big trip was they lost several products at one time. right now the newer products are big enhancements but not completely new from scratch and they're using the ems, or contract manufacturers to help sh shift the ris ak way from rimm on to the ems companies. we don't think that trip and stumble's going to happen this year. >> hey, jim, it's joe, how about the ebbett-printerprise demand, market share? do they still have a grip on that? >> we've off a lot of people. currently it doesn't sound like there's more layoffs going on. enterprise i think is starting to stabilize but a lot of rimm's growth is coming from the consumer. buy one get one free, all these promotions. we're not building in a rebound to enterprise. when that comes, look out, this is going higher. >> all right, jim, last question

here. if rimm does in fact come out with those bullish forecasts that everybody's anticipating, would you get more bullish and constructive on flextronics, the names you had upgraded in august on the back of rim? >> great derivative play off that. very smart. when we think about who builds for research in motion, absolutely, you named the key players as a derivative play that many people forget about. indeed, strong results from rimm is a positive for flextronics, jabil, and celestica. >> jim, thanks so much for your time. we appreciate it. guys on the desk, what's your play here on rimm if there is any play? maybe it's another play altogether. >> it's not only palm, not only the iphone, but i think motorola is getting back in. these guys were the leaders long ago and have been completely lost. now they're back in the competition world now. i think they've got to hold on to it, but they obviously rule the space still and they're stilt leader. >> and the palm stumble, does

that scare about rim? there are so many expectations coming out about palm they came out and disappointed. >> they disappointed but their unit sales were impressive. there were some interesting numbers that came out of palm. i think expectations just continue to get a little bit ahead of themselves as far as palm's concerned. maybe they are with research in motion with some of the numbers that are being thrown out in front of us right now. this stock has really performed already. >> let's move on to the next trade. ahead of tomorrow's g-20 summit in pittsburgh a group of protesters made headlines as they dangled from a bridge attached tie sign that read "danger: climate destruction ahead." in an attempt to call leaders' attention to global warming. a similar but more subtle protest was made for our next guest, the ceo of power utility pg&e. in a letter to the u.s. chamber of commerce he wrote, "we found it dismayed that the chamber ignores the indisputable facts that a majority of he experts have said the data on global warming are compelling and point to a threat that cannot be ignored op our fundamental differences over the issues have grown so significant that we will not renew pg&e's chamber

membership." with us now the ceo of the conditioner peter darbee. good to have you with us. >> happy to be here. >> on the heels of that withdrawal from membership of the u.s. chamber of commerce, have you gone to any other companies that have said to you, hey, peter, good job, we're with you, we're also withdrawing our membership? >> no, melissa, not yet. what i have received is an overwhelming number of e-mails from a variety of people saying we agree with you, we applaud your courage, and we really respect what you did. >> is it not just -- i mean, you are a natural gas player, and so it's beneficial to you to obviously have natural gas be the -- over fossil fuel be the energy choice. is that really -- some would say that colored your opinion over this conflict with the chamber. >> well, we don't develop natural gas. we only use natural gas. so in fact, it's not clear that it's to our advantage necessarily to move to cleaner

alternatives. in fact, it could drive up the cost of natural gas, which would be disadvantageous for us. >> well, peter, then can you least then explain from your vantage point because you have a great view on why natural gas isn't the energy of choice at a time when there's this type of pressure and this type of concern, this type of abundance of natural gas. i don't think this makes sense to a lot of people who are not following this closely. >> the key issue is what's the situation on climate change? and what scientists are saying is it could have a catastrophic effect on the earth unless addressed. and addressing it will require a number of decades to accomplish. so the sooner we start working on this problem, the easier it will be to make the transition and the cheaper it will be for all of us as consumers. >> so why not nat gas now? in other words, why is nat gas not being that vehicle that people are going toward cleaner energy? >> natural gas is a good transition from coal to natural gas. it has half the carbon of coal. in terms of transition it's the place to go. ultimately we want to use energy

efficient and renewables and nuclear power and clean coal if we can develop the technology -- >> peter, just quickly, look out five years or so, what do you think the mix will be in terms of renewable energy versus old fossil fuel energy? >> i think particularly if we don't have a cap and trade bill the fallback position will be more renewables and an r.e.s. approach across the entire united states. that will push more renewables and more energy efficiency. so you're going to have more of that. you're going to also have more natural gas because people are not going to build the big expensive coal plants that are dirty. they're going to shift in the interim to natural gas-fired plants. >> peter, unfortunately we've got to leave it here but we hope you'll come back to the show. >> great. thank you very much. >> peter darbee, the ceo of pg&e. coming up next, the trains, planes and automobiles edition of "pops and drops." transport stocks. like autozone and even royal caribbean on the move today. we will tell you why and what to do next. let's ask. when you're trading a stock, every penny counts.

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tame for the day's edition of "pops and drops." pop for royal caribbean up 2%. joe. >> cruise lines got updrad today. better fuel costs. looks like summer bookings are better. but you know, what not for me, just can't get on the cruise. nope. sell them. >> big drop for u.s. airways down 14%.

pete. >> the airlines have been absolutely scorching and flying and of course what do they do? they start selling a little bit of stock. 23 million shares. that pushed the stock down, a little pressure on the stock today. >> moody's with a drop today 8% was the move. >> it's a drop a lot of days, actually. the bad news just piling on. now looks like a whistleblower. that was in today's "wall street journal." and one wonders if one should keep selling or not. >> tipoff favorite is a drop today. walter energy. >> guy's been talking about it. couple of downgrades today. can't fight the wave that is guy adami and pete najarian. >> don't fight it. can only hope to contain it. >> drop here for the donald. donald trump, that is. despite sweetening a deal with scottish homeowners, residents are unwilling to sell their land to the real estate mogul. trump has been trying to buy out property owners as he looks to extend a luxury housing and golf development. he began a year ago on the meany estate north of aberdeen. i don't know if i said that correctly. >> sounds like the beginning of a bad day for the donald.

>> beginning. >> the beginning. >> don't know why it's just the beginning. pop here for lowe's, up 2%, joe. >> still recovering from the august 17th sell-off. i like home depot much better. >> also got a pop here for aig. up 2%. pete. >> this stock's up one day, down the next day. you want volatility this is the place to go but i tell you what, it's awfully scary out there for aig. >> all right, here's a drop for the donald again. >> it will get worse. >> second time, in fact. as his effort to break up a union representing dealers at his trump plaza hotel and casino in atlantic city failed. the national labor relations board says it will reject a petition submitted by about a third of the employees to dissolve the union as trump resorts has a legal obligation to bargain with the group. poor donald. >> is his day getting any better? >> i don't think so. drop here for auto zone down 7%. karen. >> fourth quarter earnings say miss. and i wonder if people are trading in their clunkers. that's bad for autozone because they don't get those do-it-yourselfers. >> drop for massey energy, down

8%. tim. >> big downgrade by mcquery. this is a name that's run so far so fast. the stock was overbought. >> we've got a drop here for the donald. again. donald, i really -- >> yeah. >> i kind of feel for him. i kind of do. state officials are halting the-u credit of a giant bedouin style tent on his white plains, new york property because no permits were sought. the tent was meant to house libyan leader moammar gadhafi during his visit to the u.n. general assembly. meanwhile he's stale staying at the waldorf. >> you know, donald, look on the bright side, you've got a wonderful family, beautiful wife. be happy. >> poor donald. if you're watching, donald, you can e-mail us at fastmoney.cnbc.com. tell us what you think about your three drops consecutively. the three banks "fast money" viewers think is the worst trade among the wall street survivors. we find out why you're bearish on a stock that just hit a 52-week high today. right after this. ♪

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whoooa, heyyy ! see, the terms require that you keep the bike within this pre-determined space. if you want to take the bike out, i'm going to have to charge you a penalty. i can't really ride in this little space. you can't ride very far. even kids know an offer shouldn't come ha, ha, ha... with ridiculous conditions. why don't banks ? at ally bank our 9-month no penalty cd gives you a great rate with no fees for early withdrawal. it's just the right thing to do. welcome back to "fast money." although financials have more than doubled since the march bottom, they've still got a long way to go to get back to their prelehman levels. 37%, to be exact. can tonight's street survivor help the sector make a full recovery? it was a market moment dominated by fear and hysteria. unthinkable carnage taking down some of wall street's most storied firms. morgan stanley standing strong since 1935 was itself a near

casualty. but once the dust settled ceo john mack wasn't taking any chances. as words like leverage and risk became dirty words, mack played it safe. while his rivals at goldman went right back to the high-stakes trading table. as it turned out, better safe than sorry was the wrong playbook. as morgan missed out on the market rally of a lifetime. while the goldman guys were celebrating a record trading profit downtown, mack posted his third straight quarterly loss, later announcing he's leaving the ceo post. now at the helm, heir apparent james gorman. and while some approved, other wall street watchers aren't sold. >> the one concern i have with him, and i don't think this is a new concern-s he really does lack experience on kind of the institutional side of the business. the non-retail trading of some of the investment banking and kind of that side of it. >> can morgan stanley's new captain turn this ship around, or is this street survivor still

adrift at sea? >> it is interesting to note that in today's session morgan stanley had a new 52-week high, but you our viewers when we asked you to vote on our favorite street survivor stock only 2% of you, 1.79% to be exact, took morgan stanley. at the bottom of the heap. what is the feeling -- >> i think the street has been very critical of morgan stanley. you have to understand something. in terms of the mortgage security market, morgan stanley was way overexposed relative to goldman sachs. so you really can't make the comparison there. however, you can respect morgan stanley for being able to stand as a whole entity and having such exposure. other -- lehman, bear stearns, they're not here anymore. at least morgan stanley is. >> i just don't think that people are estimating the ability of morgan stanley ton only normalize earnings but also to be able to compete with goldman sachs in the capital markets business. they always have. in fact, many times people would argue they've been much stronger than goldman sachs. i don't think you've got a world where goldman sachs is that much

farther head of them at the core business they're all-n which is sales and trading, capital markets. morgan stanley does it as well as anybody. >> we've got to leave it there. final trade right after this.

the newest documentary, "the new age of walmart." again, 9:00 p.m. eastern time. do not miss that one. should be a good one. final trade now, tim. >> it would be a shallow pullback but it will be a pullback. petrobras in the low 40s. >> j.t.

>> buy gilead. >> bdx. >> keep an eye on ebay right now. those stocks are hot. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00 p.m. eastern time for more "fast money." and a quick reminder, a replay of "fast money" tonight 1:00 a.m. so stay tuned for that one. have a great night, everybody. >> announcer: tomorrow, this distressed financial is a street survivor. the negotiator has the trade you might bank on. and get the earnings edge. the red hat ceo knows what computes for "fast money." 5:00 p.m. eastern on cnbc, first in business worldwide.

i'm jim cramer, and welcome to my world. >> you need to get in the game! >> firms are going to go out of business, and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere. and i promise -- >> "mad money." you can't afford to miss it. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i just don't like these nasty sell-offs. my job is not just to entertain but to educate. so call me at 1-800-743-cnbc. people refuse to connect the do dots. to connect the dots to figure out what's working and what will continue to work regardless of what the federal reserve does or the mortgage market does or the dollar or gold, the yen cross, i don't care. everything else we're told is important. unfortunately, including the dow

and the s&p. both of which got clobbered at the end of the day. that's just so you know. i don't blame anyone for feeling or being dispirited after a day like today. when we lost more than 150 dow points, peak to trough. those days always drove me crazy when i was a professional money manager. just think. dow 10,000. so tantalizingly close at one point. now seems so out of reach after this kind of shellacking. and i don't think the shellac's over. we are, i believe, at the start of one of these again. 3% to 5% garden variety declines that we get now and then since the march bottom. here's the difference, though. the difference between me and the worrywarts out there. over the next 24 hours there are going to be a lot of people who try to scare you into submission, telling you they've seen the top for the year, and for them it's katie, bar the door on the down side. me? i say what a break. finally. let me tell you what you should be doing. you should be thinking about what to buy if and