we're hear all week. >> watch the diamond rush tonight at:00 p.m. to see how much that beautiful diamond costs. stew tuned because fast money starts right now. >> there is a storm a brewing. >> another storm on a tear may be apple. >> if you're google, you're looking at hardware partners. this kra drama is far from over. >> as for the stock market, hide the children. >> you described this as the kiddy land roller coster. >> ups and downs but more suited for a five or 7-year-old than a

teenager. >> live from new york's time square. melissa getting a well deserved week off. let us get right now to the big story of the day. all eyes on ben bernanke. >> we are doomeded. will that be a call for further stimulus? let's check in with the man. rescue me, john. will there be qe 3 announceded in jackson hole? >> i think we got to wait until friday to hear that. the title of his speech is monetary policy. he is going to be talking in

great depth about it. they could act fairly soon. in their statement, it was suggested they are moving in this trex. there is other things they can do in this policy. >> one more question before you get to the traders. bernanke is not going say i'm going to to announce qe 3. what kind of language should we listen for for the greatest clues? >> so that means that he supports a policy like this.

and whether the fed and whether he is seeing unemployment fall at a satisfactory rate and inflation you know, any signs of problems on the inflation front. >> it's tim. you have done a great job of outlining what the perceived costs are. i'm not sure i agree but i'm not going after your premise. i see effect tiffly the government taking us down to negative real interest rates. >> going into this week where expectations have been so high, especially when you see that the s&p is up 35% since the last time he did that, why target the stock market.

>> a couple of things. one, i think that the fed would say they are not targeting the stock market. they want to see unemployment come down faster. if they could get the market up higher, would that help to bring down unemployment faster. this idea about the cost of i looked at three areas. >> four years later since the fed pumped money into these financial systems. the dollar is pretty stable. i think financial stability is an important area that has not gotten enough attention. if there is a ris tok what the fed is doing, by pushing long

term interest rates down so much, they are possibly sewing the seeds for crisis a few years down the road. >> john, it's joe. let me expand for a second here. you have got a wealth effect that i think the federal reserve is trying to create here. asset prices are recovering. if you look at unemployment and you say well, maybe at this point it's structural and it's really not anything that bernanke can control in a lot of this testimony.

>> the people at the fed who don't want to do more say this is mostly structural. there is another group of people who say it's cyclical. so then it comes down to where does bernanke stand on this. they will all admit that there is some structural. they are asking themselves what can they do to work on that problem? what can they do to create more demand. i'm trying to explain their thinking. what they they do to create more demand. >> we just try to make money on what they're thinking. >> somebody can make money in this lower turn environment. >> it's not that bad.

>> it's not that bad. you're getting nothing on treasury bonds. >> stock market -- the stock market, it has been a good summer. it's been a good summer if you played the names that continue to work. what has worked will continue to work. the doomsdayers, i disagree with. >> maybe i'm not a doomsdayer. unless we do a massive qe, which the economy does not warrant that. you're not going to fix the problems. companies are not going to hire more. >> to joe's point, how long do

we talk about it. >> i think you guys are right. don't think he isn't. without inflation and with an unemployment problem, it gives them all the reason to do what he's doing. >> you look at the home

builders. q1 was a great quarter. i think the question here is how do we end the year. i believe that bernanke should stay on the sidelines. there is a lot of support out there. >> let me bottom line it. we will all try to decipher today. today we have got warm up. is the china slow down the biggest risk right now?

>> you got to the nasdaq way too early today. who cares about china mobile. i care about the policy coming out of china. there is plenty of room for them to ease further. >> they are. >> if you look at global equity index, to me it matters most this quarter is the dax, german equities leading the markets higher. >> here is my view on china. we invest there. >> the bottom line is there is blenty of policy. they do not want a 2008 and 2009 property rebuttal. they need to target progressive policy. people that are concerned about china like beaks have a fair

argument here. i do not think that the chinese economy is resting solely on what the chinese policymakers do. if it was they could do whatever they wanted to do. >> i want to atress the weather here. >> you see the headline? you see the headlines at the bottom of the screen? some breaking news on tropical storm isaac. not the kind of news that the people wanted to hear. according to the national hurricane center, tropical storm isaac will become a hurricane and it will become a category 2 hurricane possibly by tomorrow night. isaac could strike new orleans seven years to the day after hurricane katrina. >> isaac? ike? get the heck out of there.

>> brian, today, we're looking at ewy. the shares shout korea etf and it's a different play on samsung. you can see the ishares is down just about one and a half percent. the largest single component of the etf. brian? >> all right. thank you very much. >> the emerging market index, it's 22%. emerging markets fwot knocked down. i think the samsung move, i know we will talk about this. this is overdone. >> we have got the low down on

the next move. should you be setting up for an rnc rally? and a black book for stocks. stay tuned to find out what move she says you have to make under penalty of flogging. coming up on fast money right after the break. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start.

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s. >> all right. many potential catalysts ahead for the market. something called the presidential election. and the year end fiscal cliff.

>> i apologize. >> were you advising your clients to do right now with stocks? >> right now with stocks? the s&p is actually approaching what we think is kind of an appropriate year end target. our year end target is 14.50. we're almost there. we think it makes sense to make downside protection. i think gien the limiteded upside and risk for downside. >> it sounds like you believe that the run for stocks this year is over? >> it is largely over. i mean, i think there could be a couple of percentage points to gain. but active managers should probably try to lock in some

hard fought gains for the year. as you mentioned, the fiscal cliff, which is something that we don't necessarily think has really permeated the consciousness of the average investor. >> i agree with you as far as the vix being down low. you can buy protection to protect you to the downside. >> exactly. >> now looking as we set up for q 3, q 4. i think we will get to it. i think technically, the market gets higher. >> a higher market? >> i am obvious mitt tick for the long haul. i think it will be tricky. we have seen it before. the fact that nobody is talking

about the fiscal cliff? we were going through company transfers looking for mentions corporations getting ready for this. it's not really in the atmosphere. i think that is something that might be a little bit of a blind side to investors as we head into the election. there is 750 billion on the table here. it's a pretty big number that nobody is addressing. >> the mdx would be the landmark. do you see concerns about the waitings in apple across the board? risk to the market? this is a place where i think markets are vulnerable.

>> we can't price in anything better. they are dominating the field. there is nothing left to do. this is a major technical problem for the market. >> i think that tech stocks look good at this point. not to speak specifically about apple. it has morphed into a high quality sector. it's gotten a lower volatility of earnings. it's actually got companies that are giving off cash which is the second reason that i love technology. it has a potential to return cash. you know, as we head into the next few months of the year, i think that cash return might be the name of the game for investors to focus on. >> does it matter who wins the

presidential election? >> for the overall market it might not matter as much. i think the winners and losers might be the sectors. it's a relative gain among sectors. >> 15% stays? >> that's the trade. >> the 15% tax ralt will stay. >> i think under obama, health care does look okay under romney. i think the winners and losers will be sectors rather than the overall market. >> you added class to this joint.

>> how do the lsh to the republican party platform? we do not have larry kudlow yet? i am hearing that in my ear. there is a lot going on. satellites and storm. i'm sure we will get larry up in just a moment. are they really at risk. >> he looks there. >> dividend have worked. let's look t at cisco for instance. i think they will have a lot of money coming into it. yes, dividends have been working. something we don't talk a lot is slow money. a lot of mortgage rates are yielding better than 10% tifd

ends. >> i got to go kay laand get a market flash. >> we are watching shares afterhours. msd capital partners increased holdings very recently. also have omega advisors. so a lot of hedge fund guys seeing big gains today. >> of course the host of the kudlow report. he joins us now live. a lot of different agendas there. number one is the storm. can you take us inside the building? what's the mood? what's going to happen. >> they're okay.

>> i think the problem is going to be the rest of the western gulf. it may be new orleans. here there is hardly any rain at all. there is no rain here at all in the tampa convention hall. >> is it game on as normal as of now? >> game on. today is a little bit of nothing. game on tomorrow. there will be a lot of speakers and they will walk through barack obama's failed promises as i understand it. then they will walk through if you build your own business you get credit for that.

>> if you are advising the rnc about the tone, about any kind of change in tone in message because of the storm, because of the threat to new orleans, if somebody said we want to avoid the split screen which is the speech and cheering over here and the other side is new orleans getting whal lopped, what would you advise them to do different if anything? >> let's see what happens. i wouldn't fwif the rnc any advice. second of all, let's see what happens. who knows what may happen. they may postpone the whole thing. they may have no trouble getting all the news in.

you have got chris kristy speaking. you have nikki haley speaking. mitt romney will give the most important political speech of his life. up to 70 million people may watch this. 5 romney is closing the gap nationwide. he may get a large bump if he can get it done thursday night. that's what we will be covering. it will be very exciting. >> is there any concern regarding the agenda itself when we begin to introduce mainstream and independent voters. you are you concerned that the independent voter is scared

away? >> i don't think that's going to to be much of an issue. i favored the commission. we had one back in 1981, 1982. it never went anywhere. i am perfectly happy to have a sound money commission. it doesn't mean anything yet. it would have to be legislative. it's not going to mean anything here. why is the employment situation so bad? and most importantly, the growth message which will be carried by paul ryan and more importantly by mitt romney. they have got tax cut reform and proposal. spending reform proposal. actually favor paul ryan's medicare reform.

as much as i prefer a golden dollar, and i think you know all about that, i do not regrettably think there will be a lot of time on that. but it is in the platform. it is absolutely platform. >> appreciate it. and as you heard from larry, it is game on, full steam ahead for the rnc for their agenda. you have got to join larry all week. a big show tonight. a number of governors. sounds like oba big show all we. that is good news. now we have to worry about new orleans. >> one stock that kept on trucking.

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>> time now for pops and drops. the movers that you may have missed today. tim? >> makes a take over. probably capped out.

>> ron? consider running with better banks? certainly. >> not a huge pop here. >> opened up real strong this morning. be careful here. they still need to find the real ceo. >> and a weird day for the home builder today. >> and the. >> that stores dropping 1%. >> no interest. walmart target that's the trade. i am projecting something new to pop drops. >> it's a free flowing show. the other pop is vlo. popping 5%.

scott nations with us. scott? >> that's right. a huge drn fires across the south part of the united states will add huge pricing power. >> all right. we will see you in just a minute. thank you. and a pop for snooki. she is now a mom. giving birth to a baby boy. her son, lorenzo, born to the pint size star. already has a nickname, meat ball. >> very sad commentary made yesterday morning. that was breaking news? >> that was breaking news seaside. it will never be the a same. you have aol popping about 2%. >> and a 5.15 dollar per share

special bid. popping 70%. >> dollar thrifty has been going on, finally bought out by hertz. it's almost doubled the price. perts is very interesting. i think it goes higher from here. >> a lot of things i don't understand and this next story is one of them. missed earnings, missed sales and the stock popped 7%. >> they asked me the same question, here's what happened. they actually cut their estimates letss than what analysts expected. i still do not think this is a name you want. >> just not as bad as people thought? >> i don't know.

all right. >> it can get a lot worse. you don't are you bidding for best buy. >> i do not like the company. but they did a 180. i don't know how you tell a guy that he can't look at the books. >> earlier we heard from kudlow. he will be speaking with governor scott walker from wisconsin. governor bob mcdonald of virginia, which also is sort of many play and the governor of oklahoma. key people from important swing

states. it's too important to miss. 7:00 p.m. eastern time. >> apple not the only winner in its patent battle against samsung. find out how currency traders are setting up. all energy development comes with some risk, but proven technologies allow natural gas producers

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>> and welcome back to fast money. as always live coming to you from the nasdaq market site in the middle of time square. winning a major victory over samsung. my next guest counts it as part of steve job's venn deta against an droid. brian, yet another new high for apple. >> i think it should be. this is a very, very sweet

victory for apple. what it does the test opportunity matter. just over a million bucks really enhances their brand as an innovator. >> you believe a 20-year-old will walk into a cell phone store and say i'm not going to get the gal laxcy. do you think it's a real possibility? >> i think it definitely puts a dent in the brand. think they there could be implications for them. i think there is a very, very important point.

ultimately that will play into your market share. i have no doubt. this was part of what steve jobs called, you know, a nuclear war against an droid. because what it will end up doinging, apple can't go directly against an droid on this. already seeing -- suing htc over them. t it will have an impact on the device makers which will slow down the eco system for sure. >> tim, listen, he's a smart guy. i just don't know if it will change people's minding when they go to make a consumer decision. >> talk to the japanese and toyota. i think that's what samsung is doing. technology is moving so fast that the next phase and this does not affect any of the new

models. people that think that samsung is dead in the water should be very careful. over reaction. there is obviously beneficiaries today. they're going to be announcing a new phone september tenth. if they include windows 8, it gets people in line. microsoft and apple have cross license and agreements. sam sung news is overdone and making it better leads to more sales. >> do you agree with what tim just said? and could rim be a beneficiary? >> no. it's just the way it's going to be. i think the interesting thing is know kia.

your 20-year-old who is not going to buy a samsung because of this is really not going to buy any windows 8 based phone. so i think that the pop we saw is short lived. >> is there any derivative play off of this besides buy apple, sell samsung if you can short samsung? >> i don't know if you can. >> i don't know why you have to over think it. how about some of the component makers that go into apple products. >> i disagree. >> this is it. >> please. >> i am glad i was not around when texting was a part of

dating. thank god. >> european central bank is set to speak on saturday. what effect will their words and other catalysts have on the euro. >> we don't know the exact timing. we know more specific timing for the ecb. importantly at the end of july, gave a famous speech. whatever i can do. all i can to to preserve the euro. we do know that bond buying is coming from the ecb. they may not do it at their

release detail s s. >> i'm putting a stop down at 123.75. i think that would be the level it would break down and that is where my stop is. >> nice and clear. we like the levels. see you soon. >> thank you. >> and crow can be sure to catch more currency strategies every friday at 5:30:00. this week we will be hosted by my capable co-host. i think it's the all female edition of "money in motion." >> that's the rumor on the

street. i can't confirm or deny that. >> smarter show. >> much smarter than -- we are bringing you up to the minute news on tropical storm isaac. should you believe the bounce in oil? it's a scary storm. we will talk about it coming up. this country was built by working people. the economy needs manufacturing. machines, tools, people making stuff.

companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪

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>> we continue to monitor tropical storm from every angle. let us welcome inned to to the weather channel. we ran some banners a moment ago. what can you tell us? >> the latest from the national hurricane center. we are all expecting that it may have jumped to hurricane strength as well. early tonight or early tomorrow morning. that is a very high end trop kwal storm and it has a massive

wind field. as far as the latest