>> market closed off of the highs of the day of 26 on the dou i want to thank everybody here for having us and congrats on the new digs. that will do it for the closing bell. i will see you tomorrow right here same time. i hope you will follow me on twitter. have a great night, everybody. but wait, stay right there, "fast money" begins right now on cnbc. good night. live in the nasdaq for a while. here is the break down. we will play a little buyer beware with abc's mark mahaney. the feeling is not mutual.

so what's next? we will hear from a hedge fund activist. and who wants to be a millionaire? fast money rejis is here with huge gains. rr shut down day nine. the market still skittish as there is still no deal out of dc. one under the radar area showing some distress. rising to the highest level since 2008 and fidelity has reportedly sold out of its treasury holdings. as the clock ticks on a possible default, should you be playing defense right now. it's continuing into today's session. >> if that makes you worried,

then no worries here. i think the market is vulnerable here. whatever headline comes out that we deem appropriate, we reached an agreement, that type of thing, the interesting thing is the magnitude of the bounce, probably 20, 25 from the levels we are currently trading out. i think it doesn't last that long and i think they do sell into it. and i think 1620 comes into play. we will bounce. june low. and then we will see it from there. i think we see the earnings coming out have not been great. talk about ruby tuesday, i don't think that's a bellwether but it goes with a lot of the restaurants we have been saying. >> the house leaders met today and there was hope that there would actually be some. >> yeah. >> i think it's important to have a little.

in august or spent, we raised quite a bit of cash. i think they are doing great things, really pricing power. very spotty. they have a great quarter. so there are some places where you can pick and choose. i think the big tell will be banks and they are already down 10%. i like that, too. >> yes, going into this. i think having protection in your portfolio is hitting the highs in the s&p. i think the u.s. dollar is to be bought here. the euro is way oversold. if you look at the us trustry market, i realized if you look

at the short bill market, there is no question that we have seen it unprecedented. you see a move that should not be happening. that was a scary time. but great ten year options if you consider where we are. continuity at the fed. i see an environment where u.s. assets will be a lot more interesting. >> karen, you're obviously buying u.s. stocks and playing recovery. >> i'm just as optimistic on the u.s. i feel like if i knew today exactly when it would come to a deal, i don't know what the market would do on that day. >> so it could be a sell the news event? >> it could be like august 11 or december of 12. both of those ended up being excellent buying opportunities.

i'm trying not to guess too hard because i knew i wouldn't do it right. >> he has got more on the fidelity short term. >> this is an interesting development here. maybe the first we have seen relative to the coming debt ceiling breach which is expected sometime after. do not own any that matured in late october or early november. fidelity saying it is confident that the congress will raise the debt. for now it is stress testing before it is getting out of the way of it. apparently the only ones to be doing this.

people are trying to get out of the way of this. take a look at the treasury schedule that is coming up. what they have is a bunch of matureties. you have got -- i'm sorry about that. last one not november 1. get out of the way of it. we don't want to break the buck. and that's really what the concern is. you see their eight day paper up. you get beyond that. it's down to 24 basis points. it's really something that they are really concerned about. 6 hold on to the one dollar of its money market. >> so steve, i have a technical question. let's say you actually own that bill that has come due during the debt ceiling fiasco. what happens when that deadline is passed? what happens to the value of that bill? >> melissa, as i'm sure the traders around will tell you is

that extraordinarily technical series of discussions that are happening. if you own that bill and want to get your none back you would be paid by the treasury. that assumes the treasury would roll its paper. the concern is that the treasury may not be able to roll it. what fidelity is saying is for ten basis or 20, it's not worth the hassel. >> it's karen, let me ask you is there any cure or grace period in a treasury bill? >> i'm sure there is. there are all right discussions right now about segregating out paper here and whether or not some of the paper can be seen for a short term not performing but again, they are very worried about the technicality at the big houses that deal with all of this paper. >> thanks for your time. the question now is will all the

firms follow fidelity's lead? what does this mean? will other firms do what fidelity is doing? and those two audiences have drastically differed. so people in the money space, money market funds, they are not allowed to take credit on this. they are just not allowed. so when credit risk comes into play, they just have to get out of the way. i expect more asset managers that are in that space to potentially step out of the way. they probably -- we feel acg and my partner, we feel there will be a deal on the debt ceiling. but these guys are getting out of the way. >> you would think that if all of these are going to dump bills that there would be an opportunity for those who don't -- that can embrace some credit risk. the deal will get done.

>> like the u.s. treasury. >> talk about buying your stuff back. >> you can have a fun family where the money funds are. i see this as being a technical problem. you think about wall street. wall street provides a plumbing for the economy. the money market funds provide the plumbing for wall street. this is the inner workings of what is really working behipd the scenes and it's really important. >> some of the other funds were not doing anything. how about your pan in china? these are the big questions for everybody. china has made noises. they made them back in 2008 or 2011 when we got downgraded. what's your expectation on those guys on the long enld? >> keep in mind, june and july, the foreign buyers were down 60, 70%. there is really been a buyer's

strike in the treasury market from ford anyway. i expect a little bit more of. that it will create more stresses for the treasury market or maybe towards the end of the year. for right now i think they are really just testing, sending a message. just like we all have had. >> what do those initials stand for? >> you know exactly. doesn't it stand to reason that god forbit something does happen and you're the one group that didn't do it, it will be a catastrophe? >> it is a high convexity trade. >> the downside is substantial. i still think that people will come in. but i do see other followers.

somebody got the tap on the shoulder and somebody is getting the tap on the shoulder. >> at putnam and wherever else. >> i expect that to happen. also by the middle of next week we should see inner workings of a deal start to appear. that will calm some of this down. >> thanks for coming to us. does it make you nervous? >> not terribly. washington makes me very disappointed and upset but when i look at the treasury market and i look at places where people have huge systemic risks and today's ten year option, they came in right around the bid to cover ratios that we have seen for the last two years. and ultimately the treasury market is acting like this is an inconvenience. >> switch gears. it has been a rough week. does a sell off represent a new internet bubble? mark mahaney joins us now.

break downs that you would buy and break downs that you would be ware of. let's start with you would be ware of. a lot of these are smaller cap stocks that have seen crazy run ups. >> i don't think it's a buying point here. you have yelp, the truly is that we are running too fast, too far with the local mobile social themes. we would not be buyers. we would, however look at utility names. i refer to the online retail utility. that is google video utility. some of those names i think are presenting attractive opportunities. i don't think they are aggressive but they are more aggressive than others. we particularly think there is is a lot of valuations. google and price line. >> what is the catalyst of names

that you like? is it going to be earnings? what stems the decline in your view? >> some of these, we like them specifically because of the new catalyst. facebook as you already know, the s&p 500 in the fourth quarter, so clear identifiable catalyst. >> but wait a second. that's a couple of months away. or a couple of weeks away. so i'm just wondering if there is anything in your view that will stem the tide? >> yeah. at this point, the next two or three weeks we're right in the middle of earnings season. where we think there is probably the least risk or the most upside. probably facebook and price line is the safest stock in this group. priceline woebt give you a report for another month and a half. so there is good room there. >> we're going to leave it

there. your connection is not that great. thanks for your time. what he sees as buys, facebook, amazon, netflix and google. >> you own it into earnings. you get out ahead of earnings. you come out and they scorch it, you miss whatever upside that you have. i think they have to knock the cover off of the ball. that was getting ahead of itself. maybe take a look again to get a long stock ahead of earnings. >> google is down, i don't know, 60 bucks since the last earnings? >> i'm long. >> mark said it is more of a utility stock. there is incredible competition.

says great. the nods raised the profile. we know they are trying to grow internationally. that is one. >> stephanie you sounded skeptical that there could be more downside. could you step away and ride it out? >> it's hard to step in right here. we own facebook and it has been painful. in the near term, i am concerned. that stock actually the valuation. >> are they still in business? >> they are doing quite well. so that one the valuation is interesting. >> and still ahead, he is the

hedge fund activist that pushed for joseph a. bank to unlock shareholder value. >> we need to grow fromthere. we think buying back their own stock is the best thing. >> find out how he feels about the company's bid for men's warehouse right after this break. plus here is is a million dollar question. which fast money celebrity guests correctly called the run up in sirius and micro technology? the answer coming up. get paid to do somethinged d you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love?

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>> welcome back. let's get a market flash. >> melissa, shares of ruby tuesday. ruby red in the aftermarket. shares also fell -- the sales really fell short of estimates. shares in ruby tuesdays are taking a beating. they said that comparable store sells fell by over 11%. it really anticipates the same store sales in the current quarter to be down high single

digits. so melissa, you can see those shares really taking a hit in the aftermarket. >> thank you. guy is this a ruby tuesday problem or is this a consumer spending problem? >> i think it's the latter. paer panera was awful. >> chipotle was okay. >> but yum in china? okay. i think it's endemocratic of what's going on with the consumer. i think the consumer is strapped. this was a big valuation going into this. don't be trying to buy this. >> do you extrapolate to the retail space? >> i think that the competition in restaurants is fierce right now. i think that's really more of the issue. i do think that the consumer is

choosey. they are buying home related things to healthy foods. >> likes the way men's warehouse is skreeping at us. shares he has been advocating for change at joseph a. bank. and you said the last time that you thought it could be worth $70 a share and that it has a lot of cash. you know what it's going to do with the cash. are you worried about them overpaying? >> when we wrote our letter, we were concerned that they were stockpiling cash and that they could use that poorly. the company does not communicate well.

our concern was therefore we had no idea what the cash was going to be used for. >> that was very scary. this deal makes a tremendous amount of sense. i think it's improbable that it happens in the way that it's currently con figured. it's hard for a smaller company to buy a company twice its size. you will have to have these companies have real discussions in order to make something happen. >> so you don't think it's going to happen but you feel better because they are on the right track? >> if the markets fear that they could buy lucky brands, that alleviates that fear quite a bit. not giving them a huge amount of time before the next shareholder meeting to do something else. it's also, i think today you have got a few pieces of information. golden gate who is incredibly

well respected. retail is making a an investment in this business. they are a believer in the value. that is great. additionally the company will now be very levered if they do this deal. if you were to lever them up, take that cash and go three times levered. that would reduce their share count 70%. so we think they could make $6, which is great. cash is earning nothing. it's 250% acreative instead of 60%. >> so one thing that is interesting and ed and i actually talked about this.

>> i have never seen a pack man defense. i just heard of one. >> it's in the books? >> the cool names. >> what it is -- >> of course when pacman was something that people knew about. >> right. what it is is when the predator actually becomes the prey. >> for all those out there who have never seen packman -- >> tipped around and they become the prey. and joseph banks said we would be open to a similar deal with the same kind of premium that we offered to them. men's warehouse actually could do it. half of their board is up. i think they could do without a shareholder vote. you would be creating value ether way.

>> we will see about that. compact that. we think there is probably $150 million of synergies. their stores are right across the street from each other. they run the same advertisements. so adding 30 to 40% of the enterprise value is something that is rare and very attractive. >> have you changed your position at all? >> we haven't. >> okay. >> we are hoping it would react. >> ed, thanks for coming by. >> last block we asked you. >> if you said c, final answer, you were correct.

>> i think it is headed to 18, maybe to 20. >> regis, the man himself, coming back to fast to talk about the great calls and maybe, just maybe, he will give us another name. just a few. and later on a slew of big name ceos talking about the government shut down but one claims right now is the name of the market. jackie: there are plenty of things i prefer to do on my own.

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so you want to drive more safely? of smart. stop eating. take deep breaths. avoid bad weather. [ whispers ] get eight hours. ♪ [ shouts over music ] turn it down! and, of course, talk to farmers. hi. hi. ♪ we are farmers bum - pa - dum, bum - bum - bum - bum ♪ >> another market flash.

this time he is watching citrix systems. >> those shares are getting clog and ip solutions company. current water results would fall short of prior forecasts. other stocks are being done in sympathy. just a couple moving down as well on the heels of that citrix report. >> where do you go in this space? w would you pick up the space? >> it's in the space. they are so small people leave in the second half of the year or into next year, you can be kicking at some of the names. i would just call out.

they did a survey and it said that the quarter looked soft. they still like it so i agree. >> the mothership has really sold off and 12 times looks like a steal. >> it always seems like it's cheap. they bought sun micro. >> it's a free cash flow at this point. >> you get the vm wear and that's the leader in the space. and i like their cash flow st y story. >> pick it up down 7%. >> third quarter. comps weren't great. when you chalk it up to china and china is the holy mecca for you, around $69 there was good support. it fell through that.

i think it is well priced in. >> pop for alcoa? >> they beat expectations. i like the commentary that they talked about in terms of auto and truck and even in china. those are encouraging. >> drop for murphy oil? >> the eia data showing that crude inventory built more than expected to $3.70. that's almost 9%. inventories hit the whole space. >> a pop of darden? >> it has been active here saying he would like the company to split. i guess what is it? red lobster? -- exactly. it's interesting. >> all you can eat bread sticks.

>> we had fun that night. you had salads and soups. >> no idea what you're talking about. >> bottomless iced tea. >> i think you could trade all the way down to 40 bucks. >> graded the fizzy lemon lime beverage as a best cure for a hangover. 57 other beverages when it came to sprite. good news if you're looking to watch your calories. plain club soda. >> sprite is being positioned in a very different way. it attracts pretty girls. >> who is in our control room?

that is gratuitous footage of people. what are they even doing? >> i don't know. where they twerking? >> fast money is about a lot of things but it's not about gratuitous -- >> coming up next, hp getting a nice bounce today after meg whitman says she expects revenue to save lives in 2014. we're brak. yeah, i'm married. does it matter? you'd do that for me? really? yeah, i'd like that. who are you talking to? uh, it's jake from state farm. sounds like a really good deal. jake from state farm at three in the morning. who is this? it's jake from state farm. what are you wearing, jake from state farm? [ jake ] uh... khakis. she sounds hideous. well she's a guy, so... [ male announcer ] another reason more people stay with state farm. get to a better state.

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>> you were elected to lead the country on all issues. all of the people in the country. not just your constituents. >> we need to basically listen to the will of the people. we need to stop fighting yesterday's elections and move on to solving tomorrow's problems. >> it is something for anybody in business where you make mistakes the end of the game. will you put the whole institution at risk. it's just absurd and frankly, shame on congress. >> thank god i never got in politics. that is the worst business that you could possibly get involved in.

>> i totally agree. some of the nation's top ceos expressing frustration over the government shut down. they believe if you don't get in right now you could regret it great to see you. >> the vix which dipically has fear. so you are oversold here. people thinking it is going to be short term resolution. they are going to be shaken out. i think it's going to be a good opportunity. a great level. >> so that is a particular trigger for you.

that level as opposed to an event. >> you can put a probability on a black swan event coming in out of the weekend. you have a really oversold sentiment. you have volatility and fear. if you are looking to short term a week or two from now, you will see some really good games. >> really good chances that we have -- what are the chances that they actually disappoint? some of the pre-anounouncements have been great. any chance that happens? >> i think the bigger fear is that a lot of money management looking at into q4. and really looking in fear of missing out. because yes it is up 16%.

we're one headline away from a short term resolution and you get a real gap up in the market. do you still hold on to the stock? >> you hold on to it this morning. we kind of made this call last week. i think the biggest thing here is if you look on a chart, hp oversold being 30 and overbought being 70. on the last july quarter call, spoke of revenues declining in 2014. today what got the stock up is eps is going up next year. it's a big sentiment change and

you had a gap today. but i think it's short term players and long term players. >> thanks for coming by. >> there are other stocks i would rather own. do you like technology as a whole or stock specific companies like hp? that's more of the question that i would have. >> i think free cash flow is kind of disappointing. i think the fix and rebuild strategy is working but it's working very slowly and this is more than priced in. >> crude oil settled in a three month low mike has got the options trade for today. which companies are you looking at? >> we saw a lot of call activity. sort of how you are highlighting it. it was pretty surprising to see

these bullish bets but a lot of the stocks have been hit pretty hard over the course of the last couple of months. >> so which trade stuck out to you? >> probably the one in exxon. it is the largest integrated oil company. they basically are big reserve crude players. i thought that was particularly interesting. this was alts a low volatility stock. people were buying the november 78.5 calls. that represents only a little over 1%. it's a cheap way to bet that maybe they get a little bit of a rebound. >> forced to choose. apache? cheverolet? exxon. >> the only reason you're buying this is because it's trading down the january lows.

>> they would be selling puts. this is is a company that i do think guys are owning at that level. that xto purchase to me two years ago, three days ago looks genius. >> they are getting it there and i don't think this company who is developing free cash flow needs that. >> you can catch more options action every friday and also check out our website options action.cnbc.com. coming up neck the man you have all been waiting for, regis philben joins us live. find out after this break. [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪

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like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. >> regis is not just a tv icon, he's also a pretty savvy trader. both stocks have been high fliers in 2013. up more than 175% so far this year.

can the momentum continue? taking position ahead of earnings tomorrow, is the man himself the one and only regis philben. >> these introductions you make. please. i love them. >> i know you're blushing out there, regis. when it comes to micron, i'm guessing you're still holding on? >> i'm so happy that it bounced back over 18 and it still looks strong. i tried to tell guy who never listened to me in their entire lives and careers that it's going to go over 20. i don't know how high it's going to go. but it's got the pizaz. >> talk to me. what is your average cost on this stock? is it a little higher than that? >> my average cost? it's a lot lower. >> okay. i knew you were a long time

holder. >> you have it there on the record? >> what is the next driver for this company for you? >> well, what do you mean? where does it go? i think it goes to 20 or maybe more. >> if it gets -- if they blow out numbers tomorrow. put your trader hat on and take that stupid notre dame hat off. >> i don't like guy. let me at him right now. >> he's making that funny face, too. >> are you pulling the rip cord or letting it roll? >> the market always takes the beating. always takes the dip. i always wait until halloween. regis takes another look at what we have been at halloween and then he swings into action. but this is where the stocks get hit. you know that. every year we take a beating there. >> he is making that face gen.

>> -- >> i involved in facebook now. it could go lower. at the end of the month, the halloween effect goes in. i don't see face book going much lower but i see it going much higher. >> okay. so the halloween effect, it's coming. what's on your buying list right now? >> i am looking very definitely at ibm. you know that stock is going to be around 220 in the next six months. and i finally am going to tell you something and i know this will get a lot of laughs from the wise guys. but i have been buying hp now since may of of this year. >> you're rocking and rolling another stock? >> it is going to come back. >> that's what i said. i just feel it.

a nice move today. everything is going to be bounced around until the halloween effect. >> have you talked to meg whitman? do you like her leadership? do you have any personal relationship with her? >> i have met her. i think she is a terrific lady. she gets a lot done. i am kind of disappointed in hewlitt packard. i know they have had problems but i see them coming out. >> you're still long sirius? >> yeah. >> that was a good

>> welcome back. in case you missed anything on cnbc today, here is a rapid fire recap of the top moments in tonight's executive edge. >> i want to make sure that she doesn't view herself as an enabler of bad policy within the congress itself. so look this ought to be an interesting hearing. i look forward to learning what her views are. >> we should have a negotiation on the budget. let's put aside the clubs of shut down and default and let's have that budget negotiation. >> if the group was cash constrained, i know what i would do. i would say this one don't pay that one. the treasury has made no effort to set up -- >> you know that to be the case?

>> yes. >> men's warehouse rejecting that bid. >> they don't like the way that bid looks. had to do that. >> the federal reserve engaging in a heated debate over whether or not to taper. you have heard some of that pubically but now we are learning this will happen in the meeting. >> i thank you for taking on this new assignment. i urge the senate to confirm janet without delay. i am confident she will be an exceptional chair. >> i pledge to do my outmost to keep that trust and meet the great responsibilities that congress has entrusted to the federal reserve. >> so this is a good thing for the markets. we were widely anticipating a different pick. >> the policy will stay the same. maybe it gets easier if we need it. maybe we won't need it. i think it's good news.

>> slightly different style than big ben behind the podium. the fed minutes today were much more important than anything we just saw. so that was the most important thing. ultimately the fed does have to do what they didn't do. and people are not prepared for this. raids are going higher. >> they didn't like the way the bid looked. >> i liked the guy from bonanza was on. >> that was a good pool. >> quite the lid. >> your first move tomorrow when we come back. stay tuned. americans take care of business.

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>> time for the final trade. mike? >> you know, with volatility rising here a little bit and also the fakct that crude is getting hit, i think you might look into getting puts in. >> interesting. i think you look at what's going on in the refining space and the mood this company has had. >> stephanie? >> i like dollar general. i think the results are far

superior. >> karen? >> joseph banks. i actually think it's interesting if they take over or get taken over. >> cost. >> thanks >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00 for more "fast." meantime, "mad money" with jim cramer starts now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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 trying to save you a little money. my job is not just to entertain you, but to put it all in context. so call me 1-800-743-cnbc. the stock market craves certainty, confidence. it hates uncertainty, waffling, and the unknown. so when president obama acts