welcome back. blackberry today plunging after announcing it expects to post a loss of nearly $1 billion next week. blackberry planning to cut 40% of its global work force, that's 4500 people, the stock down 17% at end of the day. that does it for closing bell, the market down 185 points. join us for the weekend show. fast money begins now. have a great weekend. live from the nasdaq market, our traders are tim seymour and john woods, presidents of j.j. woods associates. a firm specializing in energy trading. let's kick it off with the developing story we're tracking on two big tech names, blackberry getting crushed after warning of a massive loss in revenues, far below the

expectations. this as we await apple's numbers on iphone 5 c and 5 s sales. we have the latest on these two big stories. john. >> yeah, melissa, $950 million loss is what it looks like. maybe a little more than that, when the street was expecting less than $200 million. not good news at all on the blackberry front, particularly you see they are cutting 4500 people by the end of the year. about 40% of the staff. this clearly looks like a company, that's trying to stay moderately profitable. keep from completely going under. hopefully, they will explain, if that's not the case. and they're going from six devices in their portfolio to four. looks like they will focus on enterprise and cut out the cheaper models, which were supposed to be for market expansion into emerging markets. now, one of the options that's clearly on the table is not doing hardware any more.

focusing on services and software. you have to think that the people who are looking at taking out this company and possibly the company itself, if it doesn't get taken out, they are looking at perhaps not being a hardware company any more. you have to think that. i know that's been talked about inside the company. but now, you know, microsoft isn't around as a potential white knight. these results are not going to look good at all. >> right. and john, could you give us the number to look for on monday, when it comes to the apple sales? >> well, for apple, gene munster said between 5 million and 6 million units. a year ago, the number of 5 million. here's the problem, though. apple clearly supply constrained with the 5-s. just about everybody in line in palo alto and at the fifth avenue store was looking for the 5-s. we heard from courtney reagan on the ground at fifth avenue, that they ran out of 5-s supply at around -- by 2:00 eastern time. they were almost out of it here

in palo alto right around the same time pacific time. last year, it was saturday, midday, before they ran out of supply all together. so it seems like they are stocking out sooner. munster said if they run out of supply by saturday midday that means we are closer to the 5 million number. >> thanks for. that to the blackberry story here at this point. because in this session, blackberry lost a billion dollars in market cap. does this speed up the process of them being a buyer for the whole business -- >> steve and karen had a street fight, september 3rd, i think. steve made great points about how, just the fact that there is takeover talk out there, chatter, that stock could spike. and the exacts next day, that's exactly what happened. stocks went from 10.14 up to 11 and change. steve wound up being right. karen looked at it as an opportunity to get short. we talked about it the next day. that's what woe said, that every rally in the stock is a selling opportunity, which is exactly what took place. what do you do?

do you buy? no. i don't think -- you can't short it here on monday either. but it's definitely a no touch here until this thing shakes out. it's going to take a while. >> i'm still holding it. nobody buy its for hardware. everyone wants to see that be trimmed off. you are buying it for secure networks, for enterprise software. you're buying it for the enterprise business. when you look at it, they have no debt. you're buying it based on the fact -- you're buying it for an event driven market. >> what do you do at this point? you held it, it was down double digit percentages. >> nobody expects blackberry to trade up on earnings or fundamentals. what we expect -- >> earnings next week. >> we expect it to trade up on the facts that there's going to be an event where they break off, hopefully the hardware business, and their competitors actually become clients. >> what's the events that has you trade out of this? what is it that says -- >> the event is a nokia event. hopefully, when we saw that

after that administrate fight, they said they would push it up. they might have an answer or deal by november. this five person panel, that was put in charge, to try to speed up some type of a deal for blackberry. that's my event. that's what i'm holding on to. >> do you add to the position with the tremendous decline? >> no. this is not a position, that you think is a long term hold. this is a tradeable position, if you're trading -- you can trade it short term. and you could have sold it that next day. but my point is, you don't add to a position that is your risky position. that's a trade school. when you are buying something for an event driven headline. there's no need to put more money into something, if you feel like it's highly speculative, and i think i always said that about blackberry. >> dollar cost averaging. i don't know. >> there has never been a line out there for the new blackberry. is it a coincidence? >> would you short it right now. >> yeah. you have to. >> that's irresponsible, because

guys that were shorting nokia right up until that microsoft, what were they doing? they were carried out on it. that's what you're looking for. >> that is so old. blackberry is not new. nobody is waiting in line for a new blackberry. >> blackberry has the most secure network everyone turns to. >> it's not a coincidence, this stock took a nose dive when apple comes up. people see this is it. >> that's old news. >> it's going to happen next year. blackberry will have the same scenario. >> can the stock pop going into november? >> here's what i would say on blackberry, one of the places people are jumping in on the stock, they look at sum of the parts basis. if you feel the hardware is off the table, what is the bottom for the enterprise? what's the value of that business? where will the stock find a buyer that thinks it's worthwhile? i would not be jumping in here on this, having said that, there are definitely people circling the wagons. >> would you buy blackberry? >> it's not a cop out. i think you have to let it shake out. >> you don't get shorted here. >> you can't short it here, my opinion. >> let's turn to the broader markets here, wild week for

stocks after the fund no taper shocker including today's selloff, the s & p erased most of its federally. what are we doing next week? some big events. >> dot same things, you hopefully thought about doing after that spike up. which is you buy weakness in the dollar. bonds to me are -- you take the rally and sell it. bullard came out today and threw cold water on what the had to do this week has everything to do with what will not happen in washington. in other words, monetary policy once again trying to support fiscal policy. the fed believing they cannot taper right now, but nonetheless, we're at the place where they're going to do this. if you thought this suddenly changed the calculus in gold, in the dollar, and in rates, i think you should think again. i think you should go back to where you were on tuesday, before they made this move. >> you made an interesting point earlier today. september even though historically it has been a bad month for stocks. there actually are many september, you had some pretty decent gains. where are we right now? we're at the period perhaps we

back off those gains. >> september has been a great month, four out of the last five years, most of that goodness has been seen through the 20th. i expect consolidation into month end. we'll see if we have a langover on monday. i expect we will. that coupled with what we got out of the fed today, which was a bit of a retrace on what they said the other day. >> from stocks to interest rates, let's go off the charts. bring in lieu ease one of the wall street's most respected technicians, and a fast money friend. louise, good to see you. >> thank you. pleasure to be here. >> walk us through the s & p 500, what we should expect at this point. >> well, first of all, if we look at it from a positive, the up trend is intact. there's no question about it. we would argue that the june low would be the level that would be of concern. if that were broken. and that comes in around 15 point 75. we have an up trend there. and a little bit of backing and filling would not be untoward. however, there are some momentum

divergences developing, which have developed prior to each of the other pullbacks in this area. back in 2010, it was about four months here, it was about six months, six months again from here to here. and we're about four months with some negative momentum divergences, which is definitely worth watching, because divergences can stay in plate from four to six to nine months prior to a market pullback. >> so four to six to nine months divergence will stay in place, 1507 is your line in the sand. given the trend line, where does this thing sort of rise off into the sunset? i remember months ago you said -- what was that saying? open space. >> the longer the base, the higher in space. come on, guys. >> stay away from me, please, guy. >> so where is the space now, louise? >> right now we had a five year advance in the markets. you haven't had that since the

1990s. and it's usually been contingent with a structural bull market, which when we lift through the 2007 peaks we felt was coming into play. whether or not it's the fed that has created that or not is open to question. but nevertheless, we've had a very impressive progression. and there are a lot of stocks that probably could consolidate here some more. and move higher, but remember, we also talked about many of the dow stocks having come out of ten year bases back in 2012, consolidate the home depots, the walmarts, the disneys of the world. and perhaps advance higher. that consolidation period could take us into a trading range into the end of the year. >> so the rally looks good at this point. what's the backdrop in terms of bonds and rates? >> okay. interest rates cycles historically ran from 22 to 37 years. we are 32 years into our falling

into rate cycle. and for the first time, we have something here that looks like a base, approximately two years in the making. you have penetrated a seven year down trend. and i think the concept of pullbacks here, it's impressive the 10 and the 30 really didn't respond to the fed's decision as much as the five. and i think you could pull back to the breakout level, which is around 2.4. you could come a little bit under it, 2.3, into this area. and do some backing and filling sideways. the one interesting thing historically is that interest rates cycles from falling rates, transitioning to rising rates have been very slow, multiyear, saucer like affairs, because there have been deflationary pressures in place. 1946 was the last rising rate cycle beginning. and that was 14 years after the

bear market low in equities. so i think that we're beginning it here. the 30 year actually has a four year base in place. and over time, we're looking for a rising rate cycle, none of you have ever lived through a rising rate cycle. so i think that it's important. >> that's not true. >> none of you are old enough to have lived through it. >> all right. louise, good to see you. thanks for stopping by. >> thank you. >> guy is kind of old. coming up next, we're talking shutdown showdown. the house passing a bill eliminating funding for president obama's health care act. as the bill heads to the senate, what's the trade on the hmo stock? plus a big week for housing ahead. reports, we'll give you the playbook right after this. by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below...

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welcome back. top moments on cnbc, here's a rapid-fire recap in the executive edge. new fed chairman with fed experience, for something he or she will not do, like take sides in fiscal matters. larry, on the other hand, has no institutional loyalty to the fed, has plenty of institutional loyalty to the treasury and the

white house. >> this line has been growing really throughout the morning, yesterday there were about 30 people in line, in the afternoon the firsthand full have been here for two weeks. >> i just chased down tim cook before he drove off in his audi. here's what he told me. he said, hey, the europe and asia launches thus far for the iphone today have been phenomenal. >> probably -- we don't see bargains around. but we don't think things are way overvalued either. >> republicans have passed 218 votes they need to pass their extension of government funding, with the defunding of obama care. >> it's time for us to say, no. it's time to stop this before it causes any more damage to american families and american businesses. >> they are focused on politics, they are focused on trying to mess with me. they are not focused on you.

>> look at the battle that is brewing there in d.c. we're watching the hmo stocks whip around this week based on every headline that comes out on either side. >> you know, these health exchanges we talked about last night. if they push them back a bit, they have done it once, if they do it again, that's the perception, that's very weak, i should say that's a huge head wind for hmos, now, hmos are at a crucial point. i would wait just a little longer. i'd rather buy them on momentum than catch them here. >> hospitals, you know, i think -- sort of off the beaten path. thc had a huge run, it's pulled back lately. i think actually, for the first time in a while looks like it ramp back to the upside. i think it held this 40 level a few times. if you want to trade the hospital space, tenant health care. >> tim. >> the trade on apple to me, you wait for 440, that's the level, where again, i was a seller four

months ago on that. i don't think there's anything we'll get until the new ipad comes out in the late fall. until then this stock has seen it's icon move. don't chase this higher. i think you find the level 440. >> let's look ahead to next week. big events on the calendar. home builders, these stocks soared but gave up some gains as rates have crept higher. >> i'm worried about next week. not to say they can't spike. the trade was buy all these names, when they were at their trough. to get out of them this week. i stay away. as a matter of fact, if they doraly next week, i'd try to get them short. >> german election sunday. angle and merckle seeking third term. >> she'll get it, it will require a coalition, it will require a grand coalition, not the coalition she has which is the csu and fdp. what does that mean? europe needs a strong and unifiesed germany to stay the

case, which i think they will. >> so in terms of a trade or what we should watch for. >> it's -- i would be long the dollar in this. it bodes well for being long dollar europe. >> still ahead, your pops and drops for the week. stay tuned. >> fast money means trading. everybody has to bring their best information each and every night. the entire trading day is the preparation for the show that night. >> it's idea generation, it's all about giving you a framework for how to look at the market. the world has changed, our show has evolved. i am guy adami. i am fast money. >> i am pete, i am fast money. >> are you fast money? go to the nbc universal store, and order your fast money t. run with the big dogs. ♪

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hopefully this is the clammer for me. i made money but the last time. there's no competition. tesla. >> stocks screaming since the battery crisis, anybody that was buying new fleets, with an $11 billion order, they are putting in orders for the 777 x that hasn't been made yet. air flight. beauing is going higher. >> fed ex up 9% this week. >> didn't we do one of those street fights on that thing? sure. earnings, the whole thing. i lost. >> did you bring graphics? >> i didn't. >> that's why you lost. >> but i won, the market told me that i won. so here now, you got to be taking profits. this is where you sell it. >> nicely done. >> i lost, and i'm still a winner. crude oil down 3% this week. john. >> you got to buy it. you still have to buy it. until they decide what's going on in syria and also the iranians, well, you know what, we'll come around. you got to buy it here. because you know what, one bull

story, we're back up to 107, 108. this is the lowest it's been since we popped above 100 bucks beginning of july. >> all right. pop here for driverless cars. high tech traffic. and jimmy the robot. >> we know jimmy. >> you're just not used to seeing the steering wheel move by itself. >> you test drove. then i actually made a graphic. i went home and put this graphic together. >> with a crayon? >> you need a graphic, tim. >> no graphic. >> no graphics, buddy. no graphics. >> his name is jimmy. and he's making his way to the fast money desk. >> when does he start mouthing off? >> jimmy -- sorry, brian. how is jimmy doing? >> we have the same hair. >> was jimmy in that thing?

>> jimmy was not. maybe in a future one. he'll rise. >> no graphics, either. >> no graphics. no hands driving. huntsman. oops, sorry. >> what a great week. right? a great week. jimmy looks fantastic by the way. >> he's the best. >> he'll come back in november. >> in a week. >> tweets here. you tweet it, we trade it. my puts on goldman sachs, raking it in today, how far will it fall. >> that sucker closed higher on the day. maybe my machine google machine is down. >> it was down four bucks last time i checked. >> i don't know. >> go with the graphics. >> i like gs. >> look at the graphics. >> look at that. there you go. wise guy. that was our crack staff, lydia, fast money lydia. good job. >> tim, what is the better plan fundamentals, reynolds, american or lorillard. >> i like lorilard. and that to me is a fledgling

market, that will be -- i think ten times it's size, especially when i look at emerging markets. i like lorilard, i like the yield, i like it, effectively 10% cheaper than five year average. stay with it. >> will the u.s. ten year -- treasury get to 3.25 by march? yields. >> yeah. how much further could we go down. it's just a matter of just that little rebound we're waiting for. it's around the corner. >> yeah. all right. it's time for final trade. >> it sure is. >> what a slow. tim seymour. >> you know who else is looking at auto pilot cars? tesla. tesla. >> say it. >> tesla. >> signs, signs. >> i'm looking at bp. you got to buy it. it's just a matter of time until it breaks out above 50 bucks. a solid company. >> is that like sunday afternoon during the giants game. >> set your machine.

dvr. >> ghost in the machine. a great documentary. my final trade is lions gate, their cfo resigned. overdone says guy in the third person. lgf. >> that does it for us. catch more fast on monday at 5:00. don't go anywhere, options action begins after this break. (vo) you are a business pro. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national.

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this is options action, tonight, holy ship. ♪ >> shipping stocks are riding high. could their rally signal smooth sailing for the market? we have a special report. plus, it's an early christmas for iphone lovers. >> santa! >> what do early sales figures mean for key apple suppliers? we'll break it down. and fade to black. blackberry shares get gutted, but could someone bid for the company? the action begins right now. >> the nasdaq market in times square. these are the traders here on the desk, so much for that tape. stocks getting whacked and concerns of the dreaded t word could be on sooner than