>> welcome back. before we go i want to show you google and microsoft falling sharply after hours on the disappointing earnings. record high for the dow and the s&p. have a great night, everybody. i'll see you tomorrow. "fast money" begins right now. live from the nasdaq market site in new york city i'm melissa lee. let's get straight to the big story. fast is following tonight tech rek in the after hours session. in the wake of intel yesterday

two high fly tech stocks, google and microsoft are dropping for a combined loss of $30 billion in market cap between the two. google missing in both the top and bottom lines, down four and a half percent. microsoft seeing a decline of 4 and a half percent as well. big miss on the revenue line here. guy adami? >> let's talk about the trade. 850 was resistance on the way up back in march. it was support a couple times on the way down that we bounce from. 850 to me is your bogey. i know bk is going to talk about having the bear suit zipped up. if you are looking at google maybe $18, $19 on the risk side. we've seen this story before in google where the stock goes down five, six, seven percent and starts its ascension again. 850 is your number. >> were you trading?

>> i was longing. >> trimming the position? >> no, i wasn't. obviously i could have bought it a lot cheaper now. i probably would look to buy more. this has happened a couple times. the cpc miss wasn't good but some of the other stuff was kind of noisy in that expenses were up, tax rate higher than expected. the miss did not appear as big as it is headline miss. down 50 bucks, still kind of a bummer. >> in terms of the trading pattern from open to close the next day regardless of whether or not google beats or misses on eps, it trades down 59% the next day. >> when google came out early and nasdaq tank tanked the next day. nobody knew what was going on. this is a brood market

indicator. now you're starting to see a pattern of revenue misses throughout the whole earnings season. that's just not great news going forward. >> it's not only not great news but really troubling. when you see two of the biggest market cap companies in the world down five percent in after hours, google has a tendency to be volatility. on average that stock moved six percent on earnings. that is a massive amount for such a large company. they don't usually give a lot of guidance so you have to take their quarter at face value. this cost per click thing is kind of important here. they're talking about getting less money for mobile clicks. facebook has struggled with this, microsoft. monetizing mobile, i know that sounds 2012. this is a secular headwind for some of these guys. >> let's play devil's advocate because that's what we do.

revenue misses, we've been talking about this for at least 150 s&p points probably the last six to nine months. is it different this time? >> this is a day where we have new highs. >> google is up 20% since its last earnings release. you have to think that anything that isn't perfect or better than expected -- >> that is the problem because we're starting to price in this revenue growth, earnings growth of four to six percent. we're looking at something like a nine percent growth in book value in the next nine months. we haven't that since the last half of 2009 when you had all kinds of tail winds. news like this where you see revenue declining, they can't deleverage, that's not much more valuation here. >> if you look at microsoft it's the same situation but it's positioned poorly in a secular

declining industry. >> microsoft is way different. the story of microsoft when we had rick cheryl on a week ago and i think what was going on a lot of people are saying restructuring, they're getting into the cloud, business looks better, the stock got ahead of itself. >> for anybody out there who saw the gart ner data, everyone knows that at a disaster and how poorly positioned they are. the cloud thing is so necessary. >> the surface marking it down the huge inventory. >> they are not succeeding at innovation. this company is a utility. they're buying stock hand over fist that's massaging their earnings. if you went into this report up 30% in the year, the company has gained 70% and you weren't cautious, shame on you. >> do you have the zoom? >> i do.

>> it will be interesting to see the read through tomorrow off of google, facebook obviously, this can't be great for them and for microsoft, hp, i wonder if it has any implication for the dell deal. you can't be that psyched about pcs. >> let's get the latest from google conference call and check in with julia borsen who has been on it. >> the google earnings call, there's been a lot of talk about the success of an droids. ceo larry page saying over 9 million devices have been activated and an additional 1 million are activated every day. the success of chrome has over 7 million users worldwide. ceo talking about a huge opportunity of the transition

and google's cost per click declining six percent from a year ago. that's more than double the decline wall street expected. also declined two percent from the prior quarter. s&p, talking about how the company was trying to evolve to a cross platform service. the tone on the call is very, very positive but obviously, melissa, investors don't seem to feel so good. >> julia, keep us posted. you'll be on the conference call in half-an-hour's time. in terms of impact on broader technology in the after hours session we are seeing the impact of of course google and microsoft there. let's get some more on this microsoft miss and bring in dan niles, co cio of alpha one capital. dan, if one would inclined and skep tall of the story, would you say it would be a good short right now?

>> we are already negatively positioned in the name so, yeah, i mean, i look at it this way. i hear a lot of the talking about the stock. a couple of things you have to remember so everybody is acting as though microsoft and google missing revenues is a big surprise. this is google's 7th miss in a row on the top line. microsoft has missed four of the last five quarters in revenue. so the only thing different now is that we don't have a federal reserve that's told us it's going to keep stimulating no matter what. the only reason the stocks have done as well as they have is because the multiples have expanded not because they're beating earnings. people are having to focus on fundamentals. google, we have an negative position on that. the 7th quarter in a row that their cost per click has gone down. the switch to mobile is going

on. more smart phones are being used and pc units have declined ten percent. it's the same with microsoft. you can say, look at office 365 is a $1.5 billion annual run rate. the last time i checked the company did 20 million dollar in revenues. they came in light on windows and windows live. they missed servers and tools. they missed online. they missed business and they missed entertainment and devices. they missed all five segments of their revenue strain. >> we can rick on about a week or so ago and he talked about the restructuring. we discussed the cloud although i'm not as sold as other people. at what point does it become interesting again just in terms of a price level? sub 30? >> it doesn't become interesting. here's why.

how many times have you had people on the show saying when does rem become interesting, nokia become interesting. all the companies that are on the wrong side of business transitions. it's not to say you can't make money or you get lucky and somebody buys them out like google did with motorola but the pc market, when lee pman brothers collapsed, the pc market grew. if you look this year it's going to shrink even more, close to ten percent. you're going to have more tablets sold in the fourth quarter of this year than computers. you saw microsoft having to write down their tablet business. people are getting comfortable with tablets that don't have microsoft on it and smart phones that don't have microsoft on it. that's the real problem. i'm not saying the dividend isn't nice and it's great having restructuring but you can keep

restructuring as the stock goes down. it's a great company but they're on the wrong side of the market. that's the problem. >> dan, when you started talking you were talking about rim and you're negatively positioned in this. are you negatively positioned in this for a five or ten percent move or do you think microsoft over the next three to five years is going to look something like a rim? >> quarter to quarter who knows. you get steve ballmer getting replaced the stock will be up the next day. you get some good quarter mixed in here or there and it will do fine. until they figure out how to have a viable, strong presence in smart phones which are growing and in tablets which are growing, they're on the wrong side of a business transition and that is very hard to make the case other than maybe you get lucky and you trade it because all the analysts like it into the quarter because of

whatever its enterprise and you got to love the cloud. the cloud by the way, that doesn't even make any sense. you're saying you're going to get people to pay more money for microsoft software for the cloud when the reason you moved to the cloud is to be more efficient and spend less money. net, net, it's not that much of a positive for microsoft. >> i have a really important question to you. you're telling me that you have a three to five year outlook for a position for microsoft. when you think about this balance sheet they have and $75 billion in cash. you mentioned nokia and blackberry. they had monopolies and went to cash level. their core businesses left for dead. do you think microsoft could be in the same position five years from now? are the secular headwinds so severe that we could be looking at them with a $75 billion cap

in five years? >> who knows. five years from now we'll probably have different jobs by then. but here's the way to think about it. somebody remarked earlier on the program about google. we have a negative position in that as well. but the difference with google is they're in a good spot. they may miss a quarter -- they missed 7 so it's not good but eventually this mobile transition will have run its course. we're going to be searching, using their products. they're on the right side of this even though they missed 7 quarters in a row. eventually that will change. for microsoft you need stabilization in the pc market. maybe that's two years from now and we're selling whatever the right number is, 250 million units a year instead of the 300 million plus we're selling now. at that point you can go back to think about it but as long as the pc market is shrinking, it's not a viable investment. so if we get to a point two, three years from now and it's flattened out then maybe you

look at the stock again. until then you're fighting a big headwind and i don't know why you want to do it. >> lastly, amd was one of your top picks. it's down in the after hours session on its earnings. what is your position? >> we're still long. we sold some day because our feelings is people didn't under the margin story. tomorrow we'll probably buy some of it back. we to go through all the notes on it but i love amd. i think the company with this move into the game market, if you think about it, who here is using a 7 to 8-year-old smart phone or pc? the answer is nobody but you have new game systems from microsoft and sony coming out in the fourth quarter. that can be a $2 billion revenue business for them. the company only does $4 billion run rate in their pc business. this quarter you have to transition. they guided gross margins to

36%. i don't know if you noticed that. for whatever reason the analysts -- well, i know why. the analysts weren't doing the work. so they didn't model in the fact that you have got the game business at 20 something% gross margins. the estimates are going to go up tomorrow but you're going to have to go through a adjustment period and the stock is continue to work up and has a good chance of doubling over the next two to three years. >> dan, thanks to have you with us. thanks for your time. dan niles. just to recap, dan negatively positioned on both microsoft and google both trading lower by more than 4% in the after hours session. weighing on the nasdaq. still sticking by amd, loves it and will buy more tomorrow. tomorrow i'm at home. i missed the run on microsoft and google, do i go in tomorrow? >> 850 is your bogey. that's the number you're trading around. microsoft, to dan's point, i

think colin said 31, i think 31 and a half it gets interesting again, always in the context of a trade. i don't have the foresight two years out but to look where things to be shorted. i think it comes at 850 in goingle, 31 and a half microsoft. >> both the dow and s&p hitting record highs in today's trade but bk is clinging with both hands to his bear suit to keep it tight and zipped up. listen to what he's had to say in the past few weeks. >> i'm neutral to the u.s. stock market. i don't think this is over. i don't want to buy anything. you're starting to see the money coming from the perfectry. it's not that far and it doesn't take much for the markets to dislocate. when i look around the world there are a lot of things that could bring the stock market down. >> we'll find out if he's holding onto his ground and bear suit. from chipotle and surgical we

are trading. we'll bring you all the latest headlines. stay tuned. rade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." f-f-f-f-f-f-f. lac-lac-lac. he's an actor who's known for his voice. but his accident took that away. thankfully, he's got aflac. they're gonna give him cash to help pay his bills so he can just focus on getting better. we're taking it one day at a time. one day at a time. [ male announcer ] see how the duck's lessons are going at aflac.com

>> welcome back to "fast money." i'm josh lipton. we are catching chip on the lay

jumping in the after hours, the burrito making beat on the top and bottom lines, better than expected. also boosted its full year same sales forecast up more than 4 percent in the after hours, up more than 30% this this year. melissa back to you. >> let's go to mike khouw for the trade. there were concerns that gas prices would eat its way into some of these casual restaurants. >> that's true. that's a concern i have did despite these results. a lot of the gas price spike has happened only recently. >> they raised their forecast for the year. why are you concerned? >> on the basis of valuation. this stock has had a heck of a run. of all the casual dining it's not as much as maybe a dri and maybe cake or one of those names which i dislike much more than this one. on this rally i don't think people should take this as -- okay news, up five percent. i'd fade this for sure.

>> thank you very much for that, mike. let's get back to the tech rock that is happening right here in the after hour session for google and microsoft. joining us is dan morgan, dan, great to have you with us. >> hi. >> just broadly speaking, these are two stocks that seem to be firing on all cylinders when it comes to price action going into these earnings. are investors going to recalibrate in terms of how we view these stocks and the valuation for which they are paying? >> yeah. it's not just microsoft and google. you look at the whole slate of technology companies that made a big run here in the last couple months and, you know, obviously after these earnings reports we'll have to take a hard look at does it commence rate the move that we've seen. a lot of the excitement about microsoft and google in terms of share pricing but obviously these reports were both huge misses and i'm sure we're going to have to reset the dial here

on the share prices going forward. >> google is one of your top picks. at this point what's your best guess in terms of what you'll do tomorrow to manage this position? >> google is a high flier. you have to remember most of the stocks that we hold in the technology sector would be construed dividend plays at this point where google is a high multi-le, high data type of stock. it's not appropriate for everybody but certainly portfolio couple handle that aggressive price action. in the long run google is still a growth company. you were talking to a previous guest and a lot of these old line tech companies really aren't growth companies, they're cyclical. google you have to put in that category as that kind of company. i didn't have to chance to dissect the numbers on the way to the studio but i'll take a hard look at it tomorrow. >> dan, to me google is an interesting one. we always hear it's never different this time. but when you think about google

being the beneficiary of all that money, the hundreds of billions of dollars that have come out of apple since september, to me you had a concentrated trade here, a similar sort of group thing going on for the last couple weeks on this program it's been guest after guest talking about how that stock is going to touch 1,000. it still could but they've missed earnings now 7 quarters in a row. to me this is what happened with apple last summer. they had a string of earnings misses that people just kind of faded a little bit. they just can't really care. they thought there was something better coming. is this the sort of thing that could happen with google again? >> i don't know if you can put it in that category. apple hit a brick road in terms of unit growth on their iphones. you know their story. i still city google is in growth mode where apple is not in the growth mode that it was before. there are opportunities out there and i'm sure you guys have talked about it in terms of mobile and tablets and smart phones in terms of advertising.

they have so many things that they're doing. eventually one of these things will get going even though 87% of their revenues are from advertising. >> you're dismissive about something that's important. you said apple hit a wall as far as unit growth or profitability. isn't that what's going on with google? why are they missing earnings? the cost per click are less. they're not monetizing mobile search the way they were on desktop. >> they're still growing though. the thing with apple is they stopped growing this year. they had touch tremendous growth in the past where google to me, i'd have to look at the comparisons on their segments but they're still growing numbers but not growing as as far as as wall street wanted them to. it's a little bit of a different story. you have your opinion in terms of relating it directly to apple. >> give me the bottom line when it comes to google and

microsoft. in terms of seeing the big declines we are seeing in the after hours session, are you inclined, do you think to add to your position tomorrow on either of these stocks? >> i think microsoft, again, is to us really more of a dividend play. we agree with the guest you had on before. it's not the growth stock that it was ten years ago. it's a cyclical growth play. pc unit volume, we all know the story. google, it may create opportunities in terms of the stock is finally getting knocked back after its made a tremendous move with the tech sector as a whole and money coming out of apple. that's something to look at to see if there's an opportunity on a price basis. >> dan, good to speak with you. thank you. let's hit today's top trades. morgan stanley announcing a $500

million stock buy back program. a 52 week high for them. >> here's a sector that's obviously working. that buy back, that signals to investors that ultimately the federal reserve is comfortable with that. you could see dividend increases. these guys were in equity trading. i think you do have to be careful. some of these banks probably have more room to grow on a relative volumes basis morgan stanley is supposed to grow earnings double budget percent. this one is probably going to continue to work. >> united health raising the lower end of a 2013 profit forecast, karen? >> this was great news for them. a lot of good things happening. revenue growth, improve in mlr. they had fewer expenses to pay

out. this is a really good thing. they talked about medicare advantage. people were afraid of that. they think it's going to be okay. across the board it was great for well point and sig na and everything in this space. >> dupont, shares rising after nelson peltz taking a big stake in the name. listen to what he said yesterday at the alpha conference. >> i have learned that you have just amassed and continuing to amass a very big stake in dupont. can you comment on that? >> you asked me in the green room about ten minutes ago, if you say dupont what comes to mind? do you remember what i told you? i said paint. >> paint. >> so, yeah, there are a lot of theories here. he can force the breakup of businesses or dye vest tour of certain businesses. >> two times normal volume, 52 week high. the valuation is a stretch.

13 and a half is not unreasonable but lets look at last quarter. i would sort of stay away from this name given the move it had, wait until they report next week and see what they say about emerging markets, europe, the weather which i guarantee will come up in that conference call and look to buy it cheaper. i don't pile it on the back of the peltz comments. >> one theory is they devest in the whitening substance of paint. anyway, still ahead bk may be polishing his bear claws, sharpening but could the technicals be pointing to another leg higher. bk strap on the safety belt. plus john paulson, the man who made over a billion dollars in housing. plus we're keeping an eye on all the movers. the microsoft conference is

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>> welcome back to "fast money." i'm josh lipton. we are keeping a close eye on intuitive surgical here as we're sure herb greenberg who has been all over this one. it misses on both the top and bomb lines. what's causing the shares to really drop after hours, the ceos comments on the call. the company saying it got a warning letter from the fda concerning a prior inspection of its facilities. also requesting more information on design elements relating to a, quote, particular product. the ceo predicting increasing pressure in the u.s. saying negative press impacted the

quarter. company now expects revenue growth somewhere between flat and 7 percent versus the 14 percent estimates. melissa, back to you. >> keep in mind it already said that hospitals are pairing back on spending and now they're saying that that are other factors as well that will be headwinds to sails. >> we're at levels we saw in mid 2010. this is the deep end of the pool, folks but something worth mentioning you would think a name like that would have a monster short interest. it doesn't. what does that mean? maybe some folks will feel empowered to push it on the short side tomorrow. 370ish basically where we're trading now. was a prior high in 2010. that would be short term support. unless you have a jones to trade, i wouldn't. that's a trading term. >> next trade. another record setting day on the street both the dow and the

s&p 500 closing an all high times. why is bk always sticking by the negative stance. the stable is all yours. >> we had that little montage and i sounded so negative over the last couple of weeks. let me lay out what i'm looking at, being the resident bear is a dangerous game. i'm not trying to call a top or bottom. there's only one top and in between that infinite prices. i do think that the market here is overvalued. one of the things that i'm looking about is the fact that price volatility is greater than earnings volatility. i always look to see extreme cases. here's a chart that i brought which is the s&p 500 pe ratio and you can see the line in the middle. that's a regression channel. basically the red line says that's your average expansion that we've seen. there are four circles on there.

two standard deviations away from the mean. when you look at the past three circles we had a ten percent decline, 15 percent increase, 20 percent increase and the last circle which came may 22nd we hit that level. we had a 7 and a half percent decline. today we're back at those levels. when we get to extremes which i define as a two standard deviation move, you have to lighten up. i tend to sell and look for something short. you can look at warren buffett's mesh which is market cap to gdp. today it hit an all time high. that ratio is at 118%. the last time it was over 100% was 1999 and 2007. these are extreme valuation scenarios. it could go on forever or be in

a bubble abut be aware this is not a cheap market. >> $15 trillion was the total market cap today for the first time ever. >> that was brilliant, bk. i did like that. serious stuff. . listen, i'm with bk. i've been really wrong here. karen and i had a little dustup a few weeks ago and she bought that dip. there's going to be a dip soon that's not the one to buy. to bks point, in the 13 years we had two peek to top drawdowns. it's coming again. it could be from 1750 or 1800. we don't even have two percent gdp growth. unemployment was at 4.6%. what would ben bernanke be happy with? 7, 6.5.

>> you guys are like two peas in a bear suit. >> can't you look at that as a positive? >> no. can i tell you why? for it to work we need to see decoupling from what's going on in the global economy and i don't believe that can happen. >> jc parrots joins us. why are these guys wrong? >> when we're looking at the s&p 500 we really want to ask ourselves what's your time frame. we want to look at it from a secular perspective and i think the market is fine. we exceeded the 2000 highs, the 2007 highs. as long as we remain above those highs, from a secular perspective we're fine. financials are hitting new 52

week highs. industrials are taking out the 07 highs. technology is not where it was in 2000 but above where we were in 2007. >> can we define highs. when we traded down to 1560, 2000, 2007 was resistance and this time we blew through. what is intact until we break x? >> we tested it successfully last month. we corrected it. retested the previous highs. from a secular perspective that's healthy. in the shorter term i got to jump in with these guys. we rallied back up to the highs. now is probably a good time to be selling, fading the highs. if you are looking at individual stocks, stay out of the biotechs, the financials of the

world, the industrials and stay away from those that failed to see those highs. >> we had this discussion with ralph last week and he was saying things it's just going to below through, go out there and buy everything. what jc is saying, you cannot go out there and be buying the top of this market. >> in the context of what we learned in the after hours session, a name like microsoft which did go through its previous highs, is that a name that you say stick by? is that an example of one of these tech names that will continue to work? >> i think tech and -- they showed it today. you saw what intel was doing. semis down all day with the market at the highs. semis tried to exceed the main highs, failed, nice false breakout there. definitely bearish. more reason to fade the recent strength in the short term. know your time frame really. >> longer term overall you're

bullish? >> if you look at the s&p 500 it's hard not to like that. >> guy, this is not an official street fight but we want to get a verdict? >> i have been in the bk camp for a long time. my premise is always the market can stay crazy longer than you can stay solvent. the headwinds are out there. the market amassed a lot of the ills in the economy. this microsoft, google, intel yesterday, it's a good enough start for me. >> jc, thanks for joining us. i appreciate it. coming up next the latest from the microsoft conference call, about ten mifs in right now. plus should you bet the house on flipping. diana olic explains. >> it was very in and very out and now it's very in again. we'll tell you why flipping is flourishing coming up next on "fast money."

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lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. in a clinical study, over 80% of treated men had their t levels restored to normal. talk to your doctor about all your symptoms. get the blood tests. change your number. turn it up. androgel 1.62%. >> welcome back to "fast money." i'm scott cohn in the cnbc news room we're following a major

development, the city of detroit filing for chapter nine bankruptcy today or at least asking a federal judge for permission to go into chapter nine bankruptcy protection, the city $20 billion in debt, an emergency manager appointed by the governor to deal with detroit's long simmering fiscal woes, tried to reach an agreement, was unable to do so and this is the biggest bankruptcy filing by a municipality in history. detroit which once had 1$1.8 million people struggles. this could have major implicationed for city, the organized labor and the bond market. >> thank you very much. >> the man who made billions betting against housing is now a big housing bull. john paulson, take a listen to what he had to say at yesterday's alpha conference.

>> the best thing for an investor if they don't own a home is to buy a home. if they own a home and have extra cash it's not a bad idea to think about owning a second home as well. >> apparently a lot of investors are already doing this, they are flipping. that was hot during the housing bubble and it is now making a come back. diana olick has been following this growing trend. >> that's right, melissa. it's all about surging home prices and a lot of cash on the side lines. while it had been buy, hold and rent, suddenly flipping is back and the profits are bigger than ever. over 136,000 single family homes were flipped in the first half of this year, that according to a report out tomorrow from realty track. that's up 74% from the first half of 2011. flipping defined as a home bought and sold within six months. returns are bigger. flippers made an average gross profit of $18,000 per flip in the first half of this year.

that's up 246% from a year ago. the average gross return, nine percent on the initial purchase price. of course flippers will put money into the homes for rehab. what are the top flipping markets. florida, omaha, nebraska and pittsburgh, pennsylvania. this surge appears to be largely individual investors, many of them flipping to the hedge funds that are buying to hold and rent. it's the new middle man. >> i would imagine that there are more flipping going on than the study reveals if you include those private equity firms out there that are buying homes and flipping them for the longer term? >> i talked to a bunch of them. the big time investors saying they're not flipping so much because their game again is to buy, hold and take advantage of rents. what's interesting is the flippers are flipping to the hedge funds so the hedge funds don't have to do the work on the homes. >> that seems like a whole lot

of work. >> it does. the whole business model is how many trance,s are there and what is the price of the transactions. if you have a lot of flipping trade volume is good for realty. that's great for them if they can flip the same house twice, double the commission. >> worked out so well the first time. >> don't forget there's sizable cost to getting in and out. i think it's not a great idea for people to say, i was going to put 150 grand into the stock market. i may go buy a second home. >> let's go to mike khouw. you're seeing heavy options activity in shares of sherwin williams, the maker of paints that might be used to flip houses. >> they reported results they were disappointing. also mexico's anti-trust regulator rejected their bid to buy co max. that hit the stock heavily

today. it ended up finishing close to low. we saw a lot of activity in the puts but that was sellers, people who previously made bearish bets taking the money and run which suggests that probably a lot of the bad news. normally when a stock falls iowa say wait a couple days before you get in. you can talk to guy about that but the options market seems to think the worst is over and the people who made bearish better taking their profits. >> which names should you hold and which ones should you fold? our traders lay it out for you. that is next. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550

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>> sometimes it's tough to buy the losers. let's play hold 'em or fold hem. first up pepsico soaring to all time high after nelson peltz said they should acquire mondelez. >> i should play for the yankees. huge move today, big volume day. pepsi should move the way it's moved over the last month and a half two months. 19 times forward earnings make it rich. to answer your question, fold 'em. >> next up, united technologists hitting a record high, investors looking for yield have been flocking to this stock for three% difs. hold 'em or fold 'em. >> netflix spiking a two year high after scoring 14 emmy nominations. the stock is the best performing stock in the s&p 500 up almost 200%. mike khouw? >> i would fold 'em. we had followed carter

bronxton's advice but i started to think this seemed rich. you can follow carl icahn but remember this guy is lower the stock. start exiting. >> breaking news. josh? >> breaking news here on boeing. let me give you the headlines. a japan 787 dreamliner that left logan heading to tokyo is now returning to logan. the plane received a maintenance message error indicating a mechanical issue. the plane is returning as a precautionary reason. no info on how many people are on board. the plane anticipated to land between 6:00 and 6:30. >> we got your first move tomorrow when we come back. stay tuned. she's always been able to brighten your day.

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>> boeing getting lit in the after hour session. >> less than a week after that fire in heathrow. that stock sold out 7% then. i do not think you buy this dip.

i think it goes lower. below 100. >> final trade here bk. >> i want to sell dhr. >> karen? >> i actually agree with bk in the bear suit. >> guy? >> tlt in a similar camp. you should see a bounce in the next couple see you tomorrow. "mad money" starts right now. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job is not just to entertain you, but to educate you call me at 1-800-743-cnbc. you know what i like to be mixed? no, not mixed drinks. if i own