the president meeting with gop leadership right now with the white house. 83 points higher. we will have the very latest. tomorrow, more coverage on the short term deal and what happens next. that will do it for us. have a great night and i will see you tomorrow. fast money begins right now. ♪ >> this is fast money and i'm melissa lee. there is only one story that matters today and that is washington d.c. the market is on fire today. the dow, the s&p, and the nasdaq posting their second biggest gains of the year. the spotlight ahead of earnings that led the gains today.

let's get the latest out of dc. >> the president wanted to see all of the house republicans but the president decided better to send a smaller group. the chairman who is here is paul ryan. that will be an interesting one. he is obviously a huge player. nationally we will see if he plays a role in this meeting or not. the white house wants a debt limit extension and they want the u.s. government reopened. house republicans saying we will give you a six week debt extension. what about that? we should get more intelligence

a little later on. >> keep us posted in dc for us. let's break this all down. the question at this point is are we really out of the woods? and key to this is whether or not you truly believe there is a deal in the works right now. tim? >> yeah there is a deal in the works but save the champagne. where are we going to be in a month? this is a bit scarry. you have seen the s&p take back basically where we were before we shut down the government without bringing the government back on. ultimately all of this is a distraction. i don't think this is a distraction. i think that the government shut down unless this lasts two and a half years and not two and a half weeks it is not the issue that people are making it out to be. this is continuity. this is why markets are back. this is back to where the fed was after the no taper.

>> if you take a look at t-bills. the due dates all the way to january second, those went up. the risk is being shoved out. >> you could have said that. >> anything that has caused uncertainty has been pushed off. but the main question is, is it going to be a default? the answer is no. i add it to my bank and my tez la. these are buying opportunities. >> we're back at the levels where you were. are you still chasing this thing? >> i shouldn't say i chased it. today is not a day where i was buying stocks. you looked and you want to see where the good news really levels out. >> today's action. we saw some at the young.

we saw it out of costco. there is going to be a lot of reasons for some of the disappointments but going forwards. >> it is lame. there is a lot of expectations. if we don't see that in the guidance. today's action could be a great selling opportunity to take profits in my mind. >> we're basically flat. >> basically we needed 34 to take back those first couple days of losses. it was a positive move today and it was very positive for the politics. the visual to see the republicans willing to meet with

the president. to see the president not spit on that olive branch, to actually see both sides willing to act like adults. that was a positive. and i think everybody was listening to that. they had already made up their mind to do this before that. >> the vix really never got going. the sell off was really orderly. itd really notched its way down. to me, i think there is an opportunity here. take some profits here. downside, who the heck knows.

>> in the skeptic bucket here you also have the kerps the lingering effects the shut down could have on the u.s. economy here. we have a market trading slightly above it if you have something that could potentially be slowing the economy such as the shut down. i don't see why you don't look at this and say this is is a gift. this seems like a great opportunity to hedge. >> are you more apt to take profits at this point or hedge what you own? >> i am more inclined to hedge what i own but there are times

when i would take it off. why is that possible? has everybody forgotten the reason they fell down in the first place. we can see the market moves a lot of speed. i can't fathom why you would stay in there. >> tim, i want to ask you the question, is a risk to the up side or the downsidt this point? are you more scared to not be in the markets? >> no. no. markets have to digest. it gave you a quick spike. look at gold. if you thought gold could not hold any rally, there is always a place to sell any rally these days. >> fast trade is in. >> okay. to me, i made the same exact argument. it couldn't rally. what the heck is going to happen? we just moved back to what

really has been the norm over the last six months. >> going on right now. that upside, when you say what's the risk, the risk is to the upside. people sold them. they also covered them today. >> you, too? >> i added today, we will talk about it later. i added two emerging markets because i think we are six months out at least on the ramp. that was a break out to me. >> all right. let's bring in another voice on the discussion. it's always good to see you. you wrote in your latest note that the base case is at a solution that be reached by october 17. does that include the short term

olive branch that boehner is extending? >> yeah. i think the possibility. if you look at what happened earlier this week, the t-bill market going crazy, if we can can push this tail risk out of an actual default, that is massively helpful to the market. >> you have got this pe verse thing where the long end of the curve actually sells off. you think in an environment with devault. you have raised the debt ceiling. the dollar has rallied. >> obviously there is the fed. the fed has been -- that makes it hard for the dollar to rally hard.

the risk premium that was being billed is going to come out. >> i think that has potentially much further to run. >> till november 22 and then you are looking for that risk premium to be included in these assets as we approach. >> depends on the hard follow we get in the meantime. i think what's going to happen is if we get a short term solution now, the markets are going to be less concerned the next time around. >> so, we have a long.

>> what about when taper spooked the heck out of the emerging markets markets when people got flushed out of that utilities trade. all of the high interest trades. isn't that a. >> no one anticipated the taper word. don't think we will be as detrimental. the other thing that i would say is that emerging market currencies are relatively liquid. >> as far as time healing all wounds, where we are coming from was 1.6 in the tenure. now we are coming from 2.7. it's a lot easier for the emerging markets to deal with a move from 2.7 to 3.3 or wherever it goes over the next year and a

half or whatever rather than the massive jump from 1.6 all the way up to 3. >> we have got to leave it there. thank you for your time. let's get some breaking news. kay la? >> melissa, suntrust is a top ten bank hit with a slew of fine s s. >> the company said it will shave off 33 cents from earnings. that's roughly half of consensus.

the fed wants suntrust to put the bulk of that to consumers and pay the resk of that. but calls this an important point of progress for suntrust which of course is one of the leading mortgage originators in the southeast as well. >> kay la, thanks for that. >> if you're the best dough performers, unite d. >> coming up next it has been a wild ride for high flying stocks today. they were hot today. we will find out why the next stock will be if you have the stomach for it. don't pop the champagne just yet. you will find out what you should expect from earnings

reports tomorrow. that and much more coming up next. geoff: i'm the kind of guy who doesn't like being sold to. the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients. that's why i stopped working at my old brokerage and became a financial consultant with charles schwab. avo: what kind of financial consultant are you looking for? talk to us today.

>> a huge day on the street tonight in the nasdaq 100 today. >> you have got to be on top of your game or a very patient trader. the same momentum stocks that got hammered. tesla, like you said up 2.5%. then there is of course groupon, the online daily deal site up 9%. and then even semi conductor maker has been on a tear. so micron holding steady here. back over to you. >> thank you very much.

>> although it was the lower on the back of its earnings report. >> a price target of $30. people loved the name. i could tell you holders that have been holding for a while waiting to be right are not ready to sell it. >> we had one on the show, added to his longs ahead of this report, which takes guts. >> they have their problem with their chip in china, which leaves open the market for micron. >> it is one of the most cyclical companies in the entire year. you catch it on an up cycle.

you do not want to be the last guy. >> you ride the momentum? >> i wouldn't because i am basically a seller of all of the high fliers. i think facebook is off the charts. i think netflix is off the charts and i wouldn't want to hold any of them. >> let's move on. we also got a big bounce today in the big banks. hours joining us now, senior analyst, charles always good to see you. big rally today. >> i would be selling into it. but i had been all summer. and you are seeing interesting divergences.

>> when you get that kind of performance and insurance, it's telling you there is a weak economy. >> it seems. >> going to be smaller, the trading is very light. how are we. >> one is the litigation risk. that's putting a cap on the stocks. people would look through that. the other is reserve release. he will start to fade. people are willing to look through that as well. you get down to the core businesses and there is no revenue growth. so there is no core revenue. and then i think the cap is going be very limbed.

maybe one or two percent buy back. maybe they don't know the full extent of it but they think it will not be as bad. >> i think you are looking at four quarters. >> so the next year? >> yeah. >> you say they know it. maybe that is why the bank has underperformed. >> what would happen tomorrow that could change it. >> could wells fargo pull something out of a hat to go forward and say that we're going to be going in this space? >> i think both morgan and wells will have some of the better earnings of the big banks but you will not see strength in fixed income or mortgage

banking. the branch system is going to start to see margin impairment there. it is seen in seeing eye demand. there is no pricing. >> that is citi. over all for the entire industry, you are expecking declining earnings for the next year or so. does that make city a short at this point in your view? >> i would short it. they are experiencing the most rapid rise in their litigation costs. >> short.

>> they are, to me, the greatest. they actually are regaining the global franchises. it is a place that is very interesting. >> because they have the currency risk in these countries, they also have the growth risk. the growth is not there strong enough. >> i don't believe the currency risk is where you do. >> the intercontinental exchange and neilson. and after this break, the markets having their second best day of the year. then a slew of heavy hitters are buying apple. but is it good for you?

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invested in the world. bny mellon. >> small caps getting a big boost along with a broader rally. >> melissa, small cap stocks which had been riding the way higher.

some of the biggest movers of the day, internet phone company vonage up 16%. american pacific surged. and acadia pharmaceuticals are down 20% from the highs back on october 3. >> all right. thank you. revealing some of his top ideas earlier today during a guest host appearance. >> how long have you been up apple? >> of course, carl icahn says he

is still short hewlitt packard. it was a massive move for the nasdaq. >> i love this name. i think it's the number one retailer in the world. >> they sell more than anybody on earth this is the play going on to the holiday season. because of the 5s, because of the 5c, because of the new ipads -- >> the 5 c that is way overpriced? they are not hitting the segment they want to hit. >> they want to price the phone for the bottom end. they want to keep the margins. >> they are number four in china. >> ladies, i would tell you that all of the whales in line, they don't care about the 5c or the i pod 8 that is coming out.

>> you don't believe in a financial engineering trade. >> has it worked? >> i totally agree. >> technically the stock cannot break 505. >> it's up 17% in the quarter. >> what was it down the previous two quarters? of course it's up 17. >> guys, hold on a second this is fast money, okay? >> at 5 -- or 4.89 right here we had a 42 close in 2012.

>> going after the stuff that was beat p down. >> heavily subsidize that phone and you have a reason to buy this stock. >> i don't think you have to have that. you have to have that to get to 600. >> one last point, and we have to move on. >> i'm telling you, the reason why apple are dumping into icahn. >> steve has a very nice red case on his apple. >> very stylish. >> i don't understand why the dl colored phone. everyone puts a case on it. i have always had a colored iphone. >> very defensive. >> time for pops and drops.

big movers of the day. pop for best buy. >> if you look at earnings, you have to go back to 2012. so for me i think the lid is on the name. it has had an incredible run. i think you would be buying it for maybe $5. >> did you buy that red case at best buy? >> i don't think i did. >> when they came outd with the disappointing earnings, stock was down 9. finish is down 8. it's no bounce at all today. i think you wait until after tomorrow to buy it. >> up 6%. >> high flier stick. because of the success rate. the stock probably goes higher on that news. >> mike?

disappointed significantly. the only good news is that their same store sales are not falling as fast as they were. >> you have got that dream liner. you have got 10% earnings growth for probably the rest of the world. >> so you don't think there is any tail winds? you don't think there is any t jet. >> norway's public broadcasting network has announced plans to air five straight hours to knitting.

>> it is better for you. >> it is like watching that yule log. >> it is soothing to watch knitting. all right. we are talking about the vix gains. take look. these are the winners there in that index. liberty interactive and it's a street fight. netflix is on a tare. we have got both sides coming up and you will decide the winner. that and much more coming up on fast.

>> welcome back to fast money, let's get back to domonic. a couple of names moving in the afterhour session. >> let's look at what's happening. that company again showing some

signs here really of what is happening overall with the grocery stores. showing some same store sales declines that didn't match up to estimates. safe way showing some estimates. -- back over to you. >> now with afterhours access. i think this is a no touch here. i think they have missed it two months in a year. if they do have a forced showing in the holiday season, the thing

goes back to 35. >> can the momentum continue? time for a good old fashioned street fight. tim is the bear. kick it off. >> now it's part of liberty media. >> and they are on more platforms than anybody else. i think this is the one to buy, not sell. >> that's called saturation. you're in a place where it will be very tough to grow. going into an earnings season, the implied volume is 15%. as you go into the october 21

numbers. with the stock at these levels. do you want to own it? the chart is broken. it's going to go to 225. this is a place where they commend netflix. we know they deserve kudos. can they really afford to develop and deliver new content going forward? can they grow internationally? can they keep away the competition. that's how they grow internationally. >> they have done nothing internationally. >> they look very top heavy in the states do you want to own this thing at 45 times valuation. >> for a trade, i think this goes to 340.

>> it is five dollars away. $10 away to the highs. >> you basically said both sides are right. >> it's 30 bucks. >> there is 10% upside possibly to the highs. >> i done care what dan wants to drum into the conversation. >> all you people out there using hash tag bull or bear. three big insurance names trading. one savvy trader betting they may have hit their top.

>> in hig, it's very interesting to see the significant call volume in these things. all are up substantially so far this year. >> they are welling to exit the stock around the 33 $. >> financials. it is a tough space to be in for growth. i think people have bet so much against financials base d. >> and check out our website.

stocks love what they heard from dc today. but commodities could be in trouble. we go down on the farm with jane wells. nd stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪

>> we are still awaiting news from the white house where president obama is meeting with republican leadership right now. we will bring you all of the up to the minute headlines as they happen. jane wells joins us now with the details. jane? >> hey, melissa. the report that was supposed to come out tomorrow is really important. it would be reflecting this year's harvest. >> we're going to seek out

private information that we're ultimately going to have to pay for. it will come to us as an added cost. >> he says for a farm that produces 100,000 bushels, private pricing data could cost 20,000. that's 20 cents per bushel. that's almost 5% there. that's a lot. >> you have a little bit of skepticism as to whether the markets are telling you the right picture. >> volume has been returning as traders get used to life without the usda. and one analyst they create volatile trading.

>> he says unfortunately. everybody else wants the usda to get back to work. >> let's start negotiating directly. old school, melissa. >> truly old school. thanks for that. >> so what's a commodities trade there. >> symposium. it's great to see you. >> in terms of this vacuum of data, there are private sources of crop data. so what does a trade here.

>> farmers have to sell, but again they have plenty of storage on the farm right now and they have got crop insurance so we think they will put away a good share of their corn crop and look to sell next year. >> so you're a buyer of corn at this point? >> not right now. during harvest lows, we think that for the next few months it will probably not go down much further because a farmer won't sell at these prices, which is below the cost of production. >> let's talk about nat gas. it is up about 6%. >> we think that we might end up with a little bit of a colder november.

maybe towards the last half. so we would still be short term holders. and we believe that value is really in the front end in the 14 strip. >> various reasons and not really for the traditional reason that janet is going to come in and she is dovish. but because we think that the dollar itself with the economy moving away from a consumptive based economy that we have to devalue the dollar. we think that the other currencies, we think the euro could be a little bit of a surprise on the upside. >> let's talk about the symposium. that's why you're there.

you have got one of the traders there, brian kelly. you're focusing, what are some of the highlights as i sit surrounded tonight by male traders. 4. >> coupled with that is behavi r behaviorbehavio behavioral finance. it's a really cutting edge science. the neuroscience of trading.

the hour between the dog and the wolf. it's not just females and males but it's the fizzolophysiology. women trade less women do statistically outperform males. we can learn from what men do really well. >> very interesting stuff. women trade less. it does not presume that they are trading better. it just means they are trading less.

>> i can't agree to that. it has more to do with the potash cartelecoming back than it does with the farm reports. >> see green across the board. take another look at the s&p 500. back in two. it's as simple as this. at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing.

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>> take a look at afterhours. we have got the headline. cutting its stake down from 7.5%. first move tomorrow after today's huge rally is next. ♪ ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh

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>> who won the street fight? the bull. taking home the trophy tonight. >> thank you. >> i was hoping for tim. >> obviously. some cheating going on. >> how is that possible in netflix? you have an opportunity now to hedge your portfolio. it's less expensive today and that is exactly what i would do. >> good for them. there is room for this one to go. >> you have to look at what has worked in this market. both of those names have growth. >> what has not worked is gold. i'm shorted today through december puts. i think it's a tough press. i think you could see 1200.

>> shipping. absf. arkansas's best. i'm in this name on the long side and i didn't vote for tim. and mike, i disagree with you completely. i will be right on netflix. end of story. >> we are jon. >> we're still awaiting word from the white house as the president meets with republicans. meantime, "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 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 just trying to make you a little money. my job is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc. the debate changed and so did the coloration of the market. instead of talking about the woes of the bondholders from wall street, president obama and his people began to talk about