what joe said about the ted statement, i agree and i think that's the turnaround. they began to tell you the timetable for taking away some of the stimulus, they began to tell you even though they extended mortgage security they'll be buying back, keeping the levels the same. i think the market's reaction is things are better. i think you take away some of that stimulus, some of that crack pipe, pardon the expression, the market has gotten used to this. >> crack pipe? >> i grew up on the rough streets of westchester county, what can i tell you? >> when they take that away -- >> i think this is the trade and i agree with pete. no ponick here. volatility did return. 20% above the 200 moving day on the s&p. that's reason enough for this thing to pull back. and i don't think this is a big surprise. or a reason to think this rally is over. >> karen, how did you interpret the fed statement in parsed the words very carefully. >> i didn't think there was any surprises in there at all. i mean, they said we were going

to continue to keep very low for -- didn't give a date, we didn't expect one. it did seem open-end which had i don't know how long that is. i expected them to be more optimistic on the economy, which they were. then they told us about when they would phase out bond sales. we knew already that would be ending. so no surprises. 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 -- i don't read a lot into this sell-off. >> in keeping rates low does that make you feel more optimistic about the u.s. consumer? they have low mortgage rates, credit card rates, auto loan rates and more money at the end of the day. >> what the fed is doing to trying to revive lending, consumer lending specifically. also an unemployment rate that continues to rise and economists will tell you is going to continue to rise throughout 2010. you're not going to raise rates until that unemployment rate peaks out.

at that point you can think about moving rates higher. >> it was a milquetoast report. something that was dull, got that bit moved to the upside, it remains a trader's environment. long-term it looks bullish as karen alluded to. basically they're talking about, we're starting to see this bit of recovery, starting to see these various things. savings rate, all the rest of it, spending capabilities. what it really comes down to right now is people are looking at this market, taking opportunities, when they get the opportunities they are very fast to react. your outlook for the market, has it changed the past 24 hours pre-fed versus right now if. >> for people that don't believe this rally has legitimacy if you remove the stimulus, the fed is probably certainly the bid to the mortgage market coming from the fed, you can measure it here. 70 to 80 basis points in terms of mortgage rate, very important. you take rates back close to 6%, you hurt the consumer, you hurt the refys. that cash flow per month, even for people with adjustable rates. i think the consumer is in a

tough place. i'll take the other side of this. the consumer gets hurt by today's fed comments. then that maybe changes if you think the fed has to rush to change this policy. >> let's move to the next strike here. a crude clobber. oil sliding below $69 on inventory data. the inventory build. oil services stocks hit the hardest. joe, what's your thesis here in terms of crude oil? >> i think if you look at the entire commodities base there was significant weakness, also dollar related with the strength. energy, i think oil itself stands out to everyone right now. oiling investable, everyone wants to own energy. you look attner gy, do you want to own oil or do you want to own natural gas? what is there more potential for in terms of upside? i believe we have seen some stability in natural gas prices and natural gas might be the actual trade moving forward. if we didn't have this significant take i would have

probably said this is a testament to how strong the equities market is that it can disconnect with the relationship between oil. oil does not have to continue to keep moving higher for the equities and s&ps to move higher, important to understand the underlying shape. >> there's a balancing act. while the markets want to see oil go up to a certain degree, once it hits a certain oil that's a negative, that's a head wind. there's a range where that's a sweet spot. >> the opposite is you don't want to see oil itself decline significantly. there are ominous forecasts for oil to go to $25 before the end of the year. you don't want to see something like that. >> pretty heavy trend lines today broken. this is where you start to look at your thesis. oil stocks outperforming underlying commodity. you can get that but you've got a couple more days of this. i look at total, 5% dividend yield, they'll have announcements tomorrow. putin inviting some of the oil companies to maybe begin to let foreign oil back into russia.

watch that. the stock was off roughly 2.5%. i think they're trading near their tops. i think you've got a couple of days of this and i would not run in there right now. >> look at oil, basically up $2, down $2, trading near $70. yes, we pulled back significantly today. yesterday we popped significantly. i'd like to see oil just grind right here. long ago we talked about $80 oil. that's going to hit pocketbooks. hit people at the gas station. $70 oil is acceptable. we're willing to pay $3 at the pump or somewhere near that level. $4 is unacceptable, hurts the consumer. >> one thing i noted, natural gas is interesting. natural gas higher and the ung, again, underperforming. that divergence has widened a fair amount in the last two or three weeks. i mean, to me joe's probably said this better, why has it happened to all technicals? >> it's technicals related to the ungtf, also the tangle that

exists in the marketplace. ung is reflective of the stock contract itself. that's where you see the most bearish fundamentals. that's why you want to get your arms around xto, apooacheapache >> at the same time those stocks have been outperforming the commodities. the uung the past six months. if you take a look at for instance chesapeake versus ung. that's the retail investor's option into natural gas. chesapeake is actually outperforming by a wide margin. >> look at you with that chart ready. >> i was thinking it and it came up on tv, that's the way it works around here. >> 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 that we're anticipating. >> don't forget you still want to lean -- every time you see coal start to back off and you got a big back off today, that's

the time to start looking at them again. maria and folks were talking with folks at the summit today. the arch coal ceo put it clearly, saying 80% is coming from fossil fuel. yes, we're trying to get more efficient. yes, they're building coal fired plants everywhere. 80%, that does not switch overnight. suddenly to solar, suddenly to wind, suddenly to everything else. he estimated another decade for those types of things. i might argue it's a national security concern as well to use coal. we are the saudi arabia of coal in the united states. >> we are, absolutely. >> as the coal ceos tell me. but it's an interesting argument. karen, for chesapeake energy, that's a name you have begrudgingly recommended here. because of the pay package of the ceo. at the same time, from a valuation perspective at this point it's a run-up. if you don't want to be in ung because of technical issues but you want exposure to natural gas, that is the way to do it. >> what was topping the tape

today. technology. all your favorites. apple, google, palm, hitting 52-week highs. amazon getting upgrade from bernstein. this upgrade very interesting. bernstein citing video game sales 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. >> it certainly is a sector i think there's a lot of competition in. competition for the online gamers and the various forms of hard care coming out of china for that matter. as i look to that, i look to even some of the comments out of google which is that people are having trouble finding ways to find growth. it's the companies with the greater cash and the ability to make acquisitions that are going to have to buy growth. that's a little concerning for google, i think, when you get those kind of comments. even though that should be coming in some sense from a sense of strength because that's where their balance sheet is. >> when you look at the technology space you see this pc upgrade cycle driven by strong

corporate balance sheet. technology has been an outperformer and it should be in a deflationary environment, looking at a sector that has the best balance sheet, the ones that can survive. smart phone, chipmakers, whatever you want to look at going forward those are names you want to be in. >> he talked about -- >> paul odilini. >> the embedded chip, talked about cell phone, the gross there. we know how well they're doing in the netbooks area. they've done plenty of acquisition the last two years or so. they're finding ways to grow. it was over 20 today. didn't close over 20. been talking about this a long time, i still like the stock, think it's ready to move. it was disappointing they could not hold above 20 for intel. >> take a look at how strong tech has been in this market. tech became the first s&p to close, reached levels of today, the official close above

prelehman levels. the first to run higher, maybe the first area people will take profits? >> absolutely not, no way, that does not happen in the tech sector. you look at 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, look at the amount of cash that they have to do the acquisitions to meet points out. look at the exposure they have. asia pacific. they have the international exposure. they have the cash. you are going to see growth coming from the technology sector. >> across the industry it continued to see people raising their outlook, continued to see the margin expansion. yes, they're a little more efficient. in some cases revenues are higher than a year ago. in some cases sales are higher than a year ago. this isn't like everything else where they're beating a low bar. they're exceeding last year. xylinx, very impressive, everything looks like it's moving forward right now for

most of the technologies. >> inventories are at historical lows. they've managed inventories phenomenally. >> the capital markets' bid is going to be a big part of fourth quarter. look at google, microsoft, ibm. all consolidating, all getting in each other's facing all getting into the cloud computer, software, the guys that are not there are getting into online services. so this is where i think you get excited. because all the bill boys want to get bigger. >> after the bell it reports earnings, high expectations for this stock. one of the stocks today that managed to finish sharply higher. any sort of activity -- >> no doubt they've been coming for quite a while now. this stock has been moving long before today and long before this week. it's just been continued to move higher. we know the analysts continue to move up -- rbc's get a 150 bright target, moved up from 100 to 150. we're 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.

volatility starting to escalate in the front months. tomorrow will be the day where you're going to see, will there be enough of a discrepancy where you can do one of these trades where you play one month against the other, looking for volatility exposure? >> we'll be talking about to an analyst from citi later on in the program to get your setup. stay tuned for that. a time out, check on after-hours action. we're watching red hat after posting earnings. better than expected second quarter results. we should note we will talk to the red hat ceo in tomorrow's program. so that should be interesting to get sort of the color behind those numbers tomorrow. let's talk a little bit more options action. this was one that was scratching -- getting us to scratch our heads here. very, very activity today. >> a stock that's really well-lagged. when you look at the nasdaq and it's up 35% over the last couple of months, six months or so, you start to look at erts, completely underperformed. look at the balance sheet,

incredible, traded 250,000 options by the end of the day. average about 16,000. most of it targeting october. it was another one of these trading environments. the stock moved in extreme amounts today. as it was moving those options moved as well. look at that chart. >> virtuous circle. >> as they move you could see it during the day, people taking off some of these trades. in many cases the options doubled today. why wait? you could see people trying to take some of this off. a lot of this is attached to various rumors. who knows what the truth is there. we know the stocks underperform, great balance sheet, unbelievable cash. almost no debt. but they've been really struggling to show any kind of profit, any kind of growth. >> to be clear we are reporting this because it is moving the equities. it has been reported in the press. microsoft is rumored to be a potential acquirer of erts. microsoft said they do not comment on rule mors to set that straight. >> it's a reality it is moving the stock price, therefore it is

news. >> let's move on to the next trade. more on the story of the day, the reversal that followed the ral i rally after the feds' decision. dennis, always a pleasure to speak with you. did the markets turn around because of anything that the fed said in the statement? >> what happened was we've looked and found out after every previous go ahead statement for the past year the market has gotten strong, people bought it again today. after a sustained rally, first sign of weakness somebody said, oh-oh, this might not be same thing, down it went. was there any major change in the feds' statement? no. that's exactly what the fed should have said. nothing different. no real change. >> so your perception of the markets and trade you were putting on, have they changed from 24 hours ago before the fed statement was released? >> for the money we run, yes, a little bit. we were actually slightly, the operative word is slightly net long. by the end of the day we went

home slightly net short. just because you have an outside reversal day and i pay attention to that. >> with copper, i'm curious. the dollar showed a little bit of strength today. what's your opinion on copper? copper seems to be pulling back a little bit. do you still think there's upside, there do you think the dollar is a one day and done, it's going to pull back? what's your opinion there? >> copper has a problem here. freeport is probably still six months from now, probably still a good company. copper itself, very bad performance in the copper futures in the past two days. looks like copper's breaking down. freeport's going to have a couple of weeks of problematic trading. i know you're not confused but copper is really an inventory thing. the dollar's strength today was a reaction to the fed and a reaction to the stronger markets, i believe. therefore, i don't think this weak dollar trade is over. in fact, i think this was a lot of guys who came into this number, were nervous as hell,

the short dollar trade, with the most crowded trade on the street. i'm curious what your view is not on today's action but tomorrow's. is the dollar going to 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, i think it's a matter of where do you think the dollar's going to be in a month, as compared to tomorrow. tomorrow the dollar might get strong again. not dramatically. a month from now, two months ago, the dollar's going to be weaker than right now. where can it be the next 48 hours? wouldn't be surprised if it were slightly stronger. when it does get slightly stronger, finally they'll take a few of the people who have been late to the party. everybody you know has been selling the dollar. that ship is listing rather heavily to one side. it's going to tip. a few people are going to get taken out of their trades. when when they do you want to sell dollars. right now it's a little oversold. >> what do you think of the reaction in gold today? kind of a volatile last few hours. >> sure was. 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 attention to gold in terms of other currencies. it got up to 700 pound sterling per ounce, a break-through 700 pounds sterling would be bullish. i'm bullish of gold. but somebody's trying to keep it down below $1,030, they'll succeed for a while. >> always a pleasure. don't go anywhere. ford's laying the groundwork, is the ambassador buying it? he's in charge of california's biggest utility. why banking on green energy is in america's, and the market's, best interests.

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we're live at the nasdaq market site. lots of issues as the g-20 gets under way tomorrow in pittsburgh. all could affect your international play. here to trade around the globe, david, it is nice to speak with you. in terms of what you're listening to for out of the g-20 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 but across 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 to 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 the largest food company in the world. completed their share merger

this week. this is essentially i think stealing the mantle from tyson. 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, if you're buying the increase in demographic protein content and the living standards out in china. >> those are also your picks, david. specifically on hogs it's had a nice run-up. would you commit fresh capital to this name? >> i would. i'd do it today and tomorrow. it's a great name. what's happening is you've got to buy the chinese consumer and there's not 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 hogg, which is harley-davidson. >> right. completely different. >> a man that gets a lot done in a short period of time. >> he fits in nicely, that's for

sure. david riegel, always nice to talk with you. shares of ford up 5% today after ceo alan mulally said 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 temporary.5 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 on in the week. 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. they're there right now. ttm. i think they have a lot of growth. >> 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 the forecast of 14.5 units 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. they are very, very cheap. 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 debt. >> 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. still has upside. >> and they've got to be gaining

market share if you look at the u.s. market. >> absolutely. >> it has to be. >> let's head 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 bidderman showing stock offerings in terms of ipos or secondaries or convertibles. they do tend to correspond with market tops which mean trouble for this market. karen, that is the sort of leap that you make as well? >> well, i don't know. for some of the ones that were really indebted, like the reit space, they were able to issue billions upon billions of equity. i think for them it's actually a positive because they have life thousand, where they had 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

improving 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. >> three of the biggest deals this week were in the cement sector. heidelberg cement in germany 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 lack of 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. >> somewhere in that level there. 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 tomorrow's big smartphone event.

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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 a surprise. >> 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. i mean, what do you think, they had to own the oc 20s right then? >> on friday. >> on friday. >> going into a weekend. i mean, that's the -- >> exactly. >> and they work at perot -- i mean, you can't -- >> 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, palm, apple all enjoying triple-digit runs but will rimm be able to keep its streak going? joining us, top-ranked citi analyst. jim, you're in the wall street camp that believes that rimm will have a very bullish report tomorrow, bullish forecast. how bullish are your expectations? >> 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 launched 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 shift the risk away from rimm onto 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 enterprise demand, the market share? do they still have a grip on that? >> enterprise, let's be honest. here where i work we've laid 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 rimm? >> 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. >> they still have a threat. i think it's not only palm, it's not only the iphone, i think motorola is finally 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 still the leader. >> and the palm stumble, does that scare you about rimm?

there's so much hoopla and expectations surrounding palm. they came out, they 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 to a 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 find it dispaying 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. 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 letter, on the heels of the 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

efficiency and renewbles 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. tame for the day's edition (announcer) when you buy a car

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time for the day's edition of "pops and drops." pop for royal caribbean up 2%. joe. >> cruise lines got upgraded 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. >> bad news just piling on. looks like a whistle blower that was in today's "wall street journal." one wonders if they'll keep selling or not. >> energy. down 8%. a couple of downgrades today. can't fight the wave -- >> continue fight it, only hope to contape 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. beginning of a bad day. >> 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. >> hm. >> 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. they're talking about chinese demand dying. yoingds. i don't think so. the stock was overbought. >> we've got a drop here for the donald. again.

>> huh. >> donald, i really -- >> yeah. >> i kind of feel for him. i kind of do. state officials are halting the construction 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. moammar probably staying at the waldorf instead. >> 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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[ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check thanks. for the difference. except for you -- you didn't book with orbitz, so you're not getting a check. well, i think we've all learned a valuable lesson today. good day, gentlemen. thanks a lot. thank you. introducing hotel price assurance, where if another orbitz customer books the same hotel for less, we send you a check for the difference, automatically. 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, is 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 to not 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 ahead of them at the core business they're all in, which is sales and trading, capital marks. morgan stanley does it as well as anybody. >> we've got to leave it there. final trade right after this. ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points

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final trade now. >> 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. have a great night, everybody. ( whooshing )

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