compute the yield curve in my head. >> that does it for the closing bell. "fast money" starts right now. >> see you tomorrow. >> the heat is on exit's not just the weather. >> it's going to be a dangerous week. >> the street is getting more bearish. >> today's ism in its entirety is really changing the perspective from half full to maybe not nearly half full.

>> fresh from the trading floor, this is fast money. >> this week getting more bearish with goldman sachs. >> this plays into your beliefs of the market. >> that 12.50 number that goldman says, that was a huge

level last year. it served as a big support level. i have a feeling that if a lot of economists. to me, when you think about last year and you think about what's going on this year, to me this is very much a u.s. story. now that we have some of the european issues out of the way. >> you have to believe in multiple contraction because that is what will have to get it there. you're going to have to see negative earnings growth not just in the upcoming quarter. i don't think we're really giving credit to the decline in energy prices and the earnings

potential power of contribution. >> you may not believe that the s&p 500 can go down to 1250 at the same time. this is just one example. prior to any forward-looking fed action. to me it doesn't matter right now. if i look at earnings next month or week.

i would stay tuned. we already know this stuff. so now you have the hope rally. you have the hope of qe and china stimulus. >> i agree with you. >> here is the answer. >> no one really cares. >> things start going 1250. i could give a rip. i trade the markets. i looked at the 1315 about a week and a half ago. the market did nothing but scream higher sense. if you want to hold on to

positions, look at the volatility index. >> i want to get back to the notion that things are priced into nike after a tremendous drop in the shares. people were not pricing it in at all before. leading up to the earnings report. >> do you believe that the s&p 500 could go down? >> i think sit most certainly going down this year.

>> it's still pricing in. futures are pricing in a lot of fear. don't be complacent. >> and an x ploesive letter today, questioning the timing of certain stocks. this is what we wrote. you sold your stock was fully disclosed. to other less fortunate shareholders. so how far will icon take this by how much. in a fast money exclusive. it's always a pleasure to speak to you. you already said you are commencing litigation about plans for a successment on this

point, how far will you take this? >> well, we believe that >> they knew that one drug they had was going off a cliff. i don't know that they was fully understand.

$50 million over this fallen company's stock. there is he had a lot of options again and hopefully swing for the fences. they have 3 billion in cash. i am very concerned about it. they may get one or two solid compounds coming up. i think this is one where you need real good corporate governess. >> have you gotten a response

specifically on the point of his stock sales. >> i said look at our record. if kbrou look at the four or five companies that we have done, it just came out only two and a half year ace go, three years ago. we got on the board there. we got on it was 2 o. and you said why can't we get on here. how the held can you say that? this seems to be where it is.

i would like to avoid a hike. >> what do you want to happen as far as labs, though? do you see the best outcome being an outright sale of the company? >> not at this point. you have to get the mansionment moving. and also, another great irony, i never met the son, but he has got only ten years experience is in charge of corporate development and strategy. and this -- i wanted this to happen. we shouldn't have fwoen public. made himself $500 million. the board just permits it. >> is there a legal basis for suing the board? suing the company for information about discussion plans? we have seen so many examples of

companies out there. the succession plan is known internally but not broadcast internally. >> you generally get that. gone for a meeting. we want information concerning the plans. i think we will get there. >> you are active because you want them to improve corporate govern ans. >> 20.

>> who is bought half of the valuezs glooinchtsds i have a lot of people working for me. you if the stock goes over 47 while you're on the board, i will motivate you to really be a good director. >> i'm going motivate you.

>> they lower the value of your options as the stock goes down. it is the opposite of what i am talking about. we have a real problem. just look at the results we have had. in biotech alone, look at the results. how about motorola when we got in. motorola was down to three. i think the guys on the board would say that we were somewhat responsible for getting the company split up. >> i want to move on to chesapeake because that could be probably another example of a cr ceo getting paid for shady practices. it seems unclear as to what you

want to happen to the company. >> chesapeake, we have done this a number of times. it is a much different story, i think, as far as -- i think it will be -- it's a very bright guy. he has put a lot of great things together. the problem is that they could not afford to buy some of it. they gambled so much buying them and you have this cash gap. you have to cut expenses drastically there. i don't think, you know, wall street says oh my god. they have got this big gap in income. and expenses. they can't need it. i think they definitely could need it. now you basically have a new board. i think the board's job was to hold the management accountable. they did it and they failed. the good thing you could say is before someone realized that and

as you know, mason put on the directors. i put on one. whether the company makes it, you have to have help. >> it sounds, carl, like you think your work is done at chesapeake. sounds like it's an opportunity to exit at this point. >> not at all. i will tell you this. i don't generally talk about my plans for selling or buying stock. but i think just a little bit reminiscent that we have had. we own that stock around 35 and somebody bought it at 70.

>> it will go quite a bit higher. and chesapeake will be there to take advantage of it. i hope that you will see a much higher price in chesapeake. i would not sell it at all. >> carl, we're going to leave it there. >> good talking to you melissa. >> legendary activist investor. >> there were great opportunities there. the stock is a little slippery. you can put on a call spread for

minimal amounts of risk with great reward strategy. there are great opportunities for names like chesapeake. i think it already broke. i think we are on that slide to the upside. >> coming up, is america teetering on the brink of recession? what the number really means and later the trade of the day. that is the real thing. stay tuned. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank,

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the >> the index fell to its lowest level since 2009, signalling a contraction. let's bring it in on the fast line. joe, bullish as usual. and yet the new orders component which is the forward-looking

indicator fell 12.3%. why are you able to look through this. >> a lot of the numbers are sentiment oriented. new orders are very sensitive to that. really a europe based report the fact that you are looking past this number. the fact that people were missing today's construction data spending. very solid on the residential side. >> joe, it's brian kelly.

>> what indicators did you look at? the housing recovery might be stalling, not going down but stalling and that would lead us into a recession. >> brian, i mean, you have new and existing home sales are up. you have pending home sales are up. you have housing affordability still very high. almost at an all time record. you have all the major home price indexes turning up. both the new and median home prices as well. you probably have to have a real roll over in the labor market. i think it's all a seasonal story. claims it has to get up. i really start to get worried.

looking at the spread, it is still positive. you don't get sustained contraction of manufacturing. >> really, secondarily, do you agree with the downgrade made at the last meeting. >> i don't. i think the fed. i don't think last week's move was warranted. i think if anything it hurts market sentiment.

the fed has shone itself to be very dovish. >> joe, we're going leave it there. >> what's the trade here? is there still a belief out here? >> probably most likely. but i think in terms of market kons kwens, we have talked about this before. i don't think it matters.

>> all right. let's hit pops and drops and movers you might have missed in the session. >> ford was down on friday. a whole heck of a lot. they have guided down based on weakness in europe. there was data in the housing sector saying there is an oversupply. >> the tlt was up 1%. >> this was probably one of the better trades out there. >> global down 4%? >> back for a bad reminder for me. got out at 69. terrible trade. trading 54 now.

i still don't think you can buy it when you look at machinery orders. down 55% year on year. >> mike was a pop today. mu moved up 3%. >> then you also got an investment of 24%. memory play here. i like the option action. >> this was a drop today. the move 2%. >> that's right. >> a team at the x games in los angeles scheduled a world record on a life sized hot wheels track. the course included the real life toy cars at -- but the sun was not just child's play.

subjected to seven g's of crushing force. >> coming up next. giving one analyst more confidence in the stock.

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with >> with the second quarter in the books, it's time to move on and preview what to expect from the third quarter. the scoop on the technology sector. >> here is what to watch for in the quarter ahead. in a consumer space, back-to-school is a major driver. for inventory adjustments and guidance hints including apple, kwal come and more. just because of the

productivity. i'm john. >> all right. so what are we watching here on the desk in terms of the tech space? any activity to indicate that people are using the seasonal weakness? >> absolutely. today we're absolutely on fire all the way up into the 600s. a lot of people expected to see something strong coming out of apple. over the next 40 or 50 days. i would keep an eye, actually. sandisk had an incredible amount of activity. >> stocks that have heavy european exposure. >> we saw a big buyer of the december 23, 28 put spread.

paid $1.09 for the whole spread. they expect it to go lower. they bought this in size. about 8,000 in spreads. >> are you a bear in oracle? >> they just reported last month. let's say in europe they have over 35% of the exposure. >> catch more options action every friday. follow us on twitter to get constant trade updates. apple told walter that he would wage thermo nuclear war on an droid because it had stolen apple products. apple won two junctions against

the galaxy nexus. brian, great to speak with you. when you take a look at these legal battles, you wonder what is motivating apple. do they think sit a true competitive threat to bother go after samsung? >> good afternoon. when you look at what sam sung has been able odo, they are the global smart phone leader in the world with idc with 29% share. but when you look at the relationship, sam sung has been a supplier to apple and increasingly a competitor. a lot of their products have their look and feel of an iphone. as you mentioned. he is going to go thermo

nuclear. sam sung is the most important player in the eco-system. this particular case against the nexus which is the first smart phone they brought this against in the u.s. has four patents they feel were violated and one patent around unified search, patent 604 is really what the judge here decided would block the nexus from entering the united states. >> in regard to apple on the other side, how about as far as china is concerned, how do you read that right now.

>> does he need a return over theresome. >> you know, i think, the apple, you know, they are under the mike scope and they are now the biggest technology company in the world. they have been very, very successful. they use china labor more than maybe some other companies and they have had some issues because they are dealing with an enormous company. i think that is something they will have to continue to work through. but i will tell you, looking at what apple doze, i feel like they are treating the employes.s >> let me explain what he just talked about. nike last week told us that future orders in china are down significantly. apple and the last earnings,

they spoke about the strength in china. do we need to be concerned if we are long apple? >> i wouldn't be concerned. obviously china's economy is slowing. i think you have got a phenomenon over there for apple that is very unique. the penetration rate is very, very small today. and the company really came into vogue, i would call it 2010. this is the status symbol of status symbols. i think we are still very, very early in this process. just remember the mobile internet now. we have about 167 million 3g subscribers and over a billion mobile subscribers and apple has a tiny piece of that subscriber

base. very early. much more to go. >> i was in hong kong and very interesting there were more blue shirts, more apple employees. that is just one store but probably one of their most popular busy stores. they might have picked a lot of the low hanging fruit in china for now. they don't have 4g phones yet. an droid, they already have all the 4g phones. it is a great growth opportunity in china. >> stick around to find out which bellwether stocks are up against difficulty. plus we continue to give you a complete strategy by making money in the second half. we will tell you how you should be positioning in oil, gold, and grains. up next. 5

5. >> goldman sachs reiterated

their statements. 12.50 would be the target there. a new report from china showing the country's manufacturing index hitting a seven month low in june. what do you see for young. >> young is in a short term down trend. if you look at the stock, we started to see increasing signs. but it's important to note that this is short term in nature. the stock is starting to pull back. the stock on a longer term basis maintained a great uptrend. i liked buying the stock and thinking over the next six to eight months the stock quality will get back. >> and nike is another one of

these to raise concerns about international growth. a lot of people might want to step in there. >> intermediate terms. my thinking is i don't necessarily want to be long nike here. 5. >> given the fact that you are looking at it, and it does look terrible the way it drops amazingly fast. maybe you would change your thesis? it seems like it has really been overdone.

>> the momentum has been so strong. it is getting to show a lot more signs of stablization. not only on a daily and weekly. i want to see the stock bounce. really when it comes down down to own and. operator: and really start to move and. operator: the new weekly highs. for the time being, a lot of pressure is throwing the stock to the downside and that will continue over the next few months. >> how about walmart. we're almost at the 1999, 2000 highs. maybe it breaks out, maybe it doesn't. what would you look for besides price action, obviously, to say this is about to break out and this will make a new high? >> you really need to see a lot of acceleration.

the stock is nearing $70. the fact that it hit that almost a decade ago it should prove to be important. i want to see a pull back down into the mid 60s, down near 64, 65 dollars. really high volume and breath. >> we're going to leave it there. thanks for coming by. joe, you actually stepped in and bought nike. >> we talked about buying it. it's a phenomenal company. i think what you saw in china. this is a phenomenal company.

5. >> i think the whole china thing as far as nike is concerned. it's not really a luxury. i like nike a lot. >> the commodities king. dennis gives us his play book for the second half. stick around. choose control. introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day. it's just another way you'll be traveling at the speed of hertz. we asked total strangers to watch it for us. thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger,

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>> we >> we are not surprised by the theatrical display of self-serving rhetoric. forest has always been willing to license to the shareholders suggestions. we believe that the shareholders support to build value continues to advance the pipeline and is well positioned for the future. that was the response issued just moments ago.

we are higher today by about two and a quarter percent. big news for hot commodities. crude pairing earlier losses. still closing below 84 bucks a barrel. got brains with corn jumping more than 3%. what should you expect from commodities from q3 and beyond? let's bring in the commodities king on gold grains and oil. dennis? always good to speak with you. >> in the last two weeks, we have taken a corn crop that looked like it would be about 14.7 billion bushels. you had no rain upon that corn crop and suddenly you are taking a billion bushels out of it. they may go up even more.

depends on what happens on the next ten days. >> in terms of oil, will we remain this low for the second half. >> i'm afraid that oil prices could continue to deteriorate. the amount that we are finding, the amount of energy that we are finding because of new technologies is simply going to be overwhelming. and then you have a new friend on our side who are so opposed to what is going on in iran which and will do anything to put downward pressure. supply is large. it's going to continue be large.

that argues for lower prices. any bounces that you get and friday was that kind of a bounce. >> we have a 9% move in that. >> the quarter end of month positioning. >>. the terribly oversold season. it gave him up a bit today. we will see what happens. two and three dollar rally. given the supply that is coming at us. >> good to see you. >> always good to be seen. thanks for having me on. >> international leaders. >> this is not the only big event for currency traders this

week. >> they all kick off on the same day. and they obviously want to get the greek program back on track. it will create risk event for the hero. from that point we will have the ecb meeting. we have to see if the ecb will surprise us or more. repo operations are cutting the deposit rate. it could be positive for the euro and if they don't lit be euro negative. >> you're looking to not go into the euro. you're looking to sell steriling and kiwee? >> that's right.

kwh is going to weigh on the currency. so i would like to short sterling. i think all this easing is going to support commodity currencies. i look for a target down at 190. i will put a stop up at 197.70 for the short. >> be sure to catch more currency strategies 5:30 p.m. eastern time. i think we will take a break here. we are bubbling with excitement. bubbling with excitement. that was a hint. behind this curtain is one of the best trading ideas. one that is sure to put a smile on your face. we will reveal what it is in

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>> trade of the day. scott? >> red white and you're blue? f you short it.