39.65. 1782 even. that will do it for us. thanks so much for joining us. >> we start tonight with breaking news. the woman expected to be the next head. she says a strong recovery will enable the fed to reduce its monetary accommodation and unreliance on asset tools. to start, we have our trading panel. tim, i want to pass it over to you.

>> rumors that it was going to come in dovish. people were looking for something to trade against. the fed has been very clear. we all know that participation rate is why unemployment has been falling. i'm not going to say deflation. i don't see sign of inflation. but that's what i would watch. >> do you think that is -- >> we -- in the summer, just want to see what the reaction in the market is going to be. i don't think they had any intention of tapering all along and i think that proved to be somewhat correct.

so, here is the real reason, if rates stay where they are, how the economy deals with that. at some point they will be tapering. if we get data that does support tapering, that's a sign that the economy is growing and i think they will taper. >> we are hearing more and more about people wanting to short the bond market. weekly treasury survey, when they survey, more and more of their clients are saying -- active clients are saying they are shorting treasuries at this point. the bond market is much more powerful. up 10%. if you look at emerging market, we have given up 10%, we're back

to five year lows where the last point took you to a rally in emerging markets. i think this is a place that you nibble and trade. we talk about treasuries and risk assets. this is where the market wants to do the work for the fed and they always will. >> so just one push, the impr e improving economy. there is only one me trick that makes it any different. you just said that real unemployment is probably closer to 12. i think it's probably closer to 16 or 17. what's going to make them hire now? i think it's a structural change. they one of the great come backs.

they laid off a bunch of folks. these are because of productivity. >> just released its guidance. john? >> that would have been up 4%. guided down eight to 10%, down more than 7% now after hours. it had been more in the down 3% range also. saying that part of the reason for that is this revenue of uncertainty, a number of things that they went through on the call. revenue down 25%.

lost share at the low end of edge, routing also set top boxes. they have left some deals that they said were low margin. down 14%. a lot of trouble in emerging markets. china continues to be a trouble spot as chambers told maria in closing bell. all right. thank you very much. this, of course, in the afterhours session. you pointed out aptly on the phone call that cisco, the stock has not gone anywhere. >> this revenue guidance, down eight to 10%.

at a business that is in decline. they're not going to hire anybody. what they can do with their money is buy more stock. sis co-is not the only one. that was a level we bounced from in the spring and the level we're trading at as we speak. >> i think it's a buy. he just nailed the range. they actually missed the revenue number. >> they have some problem with legacy issues. they have been cutting. it had two consecutive beats and now two consecutive messes here. >> that revenue miss, that is gigantic.

you would step in here you wouldn't let it settle out? >> again, two consecutive revenue classes, they obviously have some issues to deal with. i think the stock will get bought, 22 to 26 has been the range. the options market was implying about a 6, 7% move. that's what we have right here. >> the implied one day move is about six%. you look at this move here. turned out to be a buying or selling environment. the following day and something that is worst trading. >> john, great to have you with us. >> thanks for having me. >> what stands out to you?

seriously trying to play down any implications of her testimony tomorrow. i think that's really where the news is going to be. she is keen to get the policies going a little further. >> i don't think so. you i have v to think about the settings there. she is not there to deliver a policy signal. she is not trying to deliver a policy center. what i'm going to be interested in is how does she answer questions to the extent that she gets them about low inflation, how worried is she about low

inflation. are the benefits still outweighing the costs? she is not there to deliver a policy signal. >> hey, john, it's tim. i think it's going to be politically constructive structural risk. how much does that risk to and a dovish bigger government involvement in this recovery? >> you know, the other line the there. i believe supporting the recovery today is the issuest path to returning to a more monetary policy. she is trying to return to both sides of the ail there.

we want to be back to more normal policy. she's playing to our audience. it's the guys in the big seats. >> you know, yesterday, a lot of attention was grabbed by this guy who was a former federal reserve employee. >> a little misty. >> i guess i could be brought up from the senate. this guy was an executor of the policy. not a guy who made the policy. so i don't know if he's the one to be apologizing. we saw it when she gave her

statement after she was nominated by the president. she thinks that what the fed is doing is a good thing. she thinks its for the good and fed officials like to say the benefits outweigh the costs. you have to remember, she has been arguing with the committee for years about this. >> great to have you with us. let's talk about the consumer now and the break out day for macy's. and to all time highs. but will macy's magic extend to the rest of the season. joining us now is managing partner of the high land consumer fund. great to have you with us. >> thanks for having me.

>> what macy's said is a stronger october. we heard similar guidance from the likes in recent times. are we seeing a better than expected october across the board for the retailers? >> let's frame macy's. sears had a a gash in the boat for a long time. it's easy to look like you may win the division. but he is not going to, you know, it's not representative of the retail segment as a whole. so the consumer has a little

more money but the consumer does not have confidence. consumers not knowing how much it will cost them in their wallet, they are cautious. now the holiday time is is a time when people open up their wallets to the extent we see normalization and we will see it then. this is is a lousy calendar for retailers. that does not set up well. would i will buying the retail sector as a whole? absolutely not. >> i hear what you're saying abmacy's but i think macy's is a combination of being the best and the cheapest. you still wouldn't find macy's attractive?

it's in a secular downturn. more and more activities going to the internet and retailers so the department store as a vehicle is is a declining vehicle. it's just not a great field to play in. we just said all time highs here as well as kohl's. it is not possible that you are declining vehicles. >> i think in the near term without question, if you had to play somebody in the retailing sector, given who they are competing against you got bet on macy's i agree. >> we talked about this stock for years. since then it's going slightly lower to sideways.

>> he is really worked on the fundamentals. i think there is a lot of runway left here. and americans are spending money on capital goods. they are spending money on their homes and cars. and i think those tail winds will benefit home depot. they will benefit lowe's and specialty players as well. >> thanks for your time. >> thanks for having me. >> coming up next, friend request denied. we will tell you about a company that turned down an offer for facebook. >> fuelling up with natural gas. next on fast.

>> take a look at the cisco systems valuing. this of course on the back of a

disappointment in the revenue. the eps guidance coming in much lighter than expected and it is the sales growth. throughout the hour. an industrial accident reported in california. st t stock did react. phil? >> melissa, it was a wild last hour. take a look at what happened to shares once there was a report of fire trucks at the tesla plan. then it did come back once it was clear that this was an industrial accident. what exactly happened? there were three workers that were injured when hot metal in a

casting press got on to workers and they got burned. tesla is gradually increasing model s production. they currently build 550 model s vehicles a week. i don't have to tell you guys that with a momentum stock like tesla these days you're going to see a quick reaction. the stock trading now under $140 a share. this was not a fire today guys. >> phil lebeau, thanks so much for that. we were talking about this just yesterday. how the stock was setting up and you get a snip of another fire. >> tim has been spot on. what's the trade here against yesterday's low and i don't have it in front of me. 140 was online. you hope you get the bounce.

the mistake most people make, don't be disciplined. >> let the today's top trades here battle in the cloud. a preview of a new product called warp space. parts of a new service could potentially compete. >> that's the problem here. they also dro deuce a product called the app stream. here is the problem with amazon. they compete on price. they want to take market share and it is going right after their competitors. so to me, this is is a company that they missed when they reported a quarter ago. i thought they had a great trade in here and i'm out. no touch. >> facebook getting rejected today.

>> i think snapchat was valued at a third of that. at a certain point i think this deal gets done. this is tl is is a price for everything. 46.5 we said it had a hold. >> it's ironic that you can see that the stock goes up. >> all day long. >> you did not snap chat me. >> this shows you i think facebook looks desperate there. you're old, okay? >> you're a little younger but you're still old. they're really worried that the kids will not be on facebook in a year or two from now. snap chat is is a piece of junk. this is crazy.

>> nice. time now for pops and drops. a drop here. down 22%. >> new issue. i mean, here is one it's not snap chat. this is one i think you want to avoid. >> we had the ceo on a few days from now. it's pulled back. i think that 188, 190 level held. price is expensive, valuation is not. >> mike? >> downgrade from coach from a buy to a neutral. this thing buying in the puts. >> general motors and sneaky news. the government sold a billion two worth of stock. so, a nice day for general

motors. >> and a pop to move 3% in? ultimately starbucks getting fined. i'm long both of these names. the names you have to worry about here are craft. >> and you have got a pop here for bling. a super rare pink diamond sold for more than $83 million. that is the highest price ever paid for a diamond. the 59.6 carat star is not the only huge diamond. >> if you're the sucker that bought that, it's some rich dude and plans on proposing to somebody and she says no what to you do with it? you're totally screwed. >> i think that's a stone you buy when you're digging yourself

out of trouble with your wife. >> now is the time to short the sector. telling you where it's lights out for the solar trade. that's next. back in two. i'm beth...

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>> not so fast. not so bright. one of our traders is calling himself out for a trade that he made right here on fast. >> because of the chinese government support, the debt support that these companies are getting, i think numbers are going to look good. it's hard for us to say this, but we would actually be buying the stock. >> sounds like you're flip-flopping. >> thanks for having me. specific chinese solars. what changed is you had two earnings reports. they lowered q3 numbers and lowered guidance. they came out and their debt was actually down the most it has been ever in the history of the company. so our assumption that the chinese government was

supporting all of the chinese solar sectors with debt was not happening. >> so if it negatively impacts, is that positive for u.s. based solars? >> we think they are kind of disaggregated from all of this. two companies that have not reported earnings, we think lit be hit by this negativity. >> at what point does it matter? we have seen oil come down a lot here in the last month or so? >> that's a great point. i think it's more important to look at natural gas. natural gas prices are low. if they stay here that negatively impacts projects. so as interest rates go up, that's going to be negative for solar projects. >> everything you're saying is

the government -- if i look at what pricing and margins are doing for these guys, that has turned for these guys. if it was a year ago you would be right on to reversing and would not have been where you were next week. >> i'm obviously talking my book. >> costing you a lot on that one. prices are down. the last two weeks, module prices are down. so a lot of that upside is priced in. csiq just got margins. guiding q4 margins to 13. so if they come out and disappoint slightly you will get negative moves. >> so even for the solars that you do like, at this point, at

these valuations given the runs would you say take profits? >> no, no, no. >> so continue buying them. >> be long exposure to projects. it pains me to say this. you want to be very cautious into earnings. >> gordon, thanks. getting a boost today. news of a partnership. the two private ups fuelling stations, and will also open three throughout the loan star state. >> thanks for having me. >> will this be acreative to earnings? >> yes. we built those stations and when you are able to load them up with this type of volume, it's earnings. absolutely. >> what kind of pressure are you

feeling? they like what you're doing but they are concerned about your cash burn. they are concerned that there could be a need for more cash. can you address that? >> i'm sure. melissa, really from an operations perspective, we had adjusted ebitda of about $4 million. we're about essentially break even. when we look out at the build that is going to be required. . and even beyond. i'm not worried about the cash position. >> obviously the stock, i'm sure you take a look at it. does that help your cause

because it brings the whole clean energy space? or does it hurt your cause? >> i want all alternative fuels to do well. for the certain range, certain passenger cars, tesla is great. i congratulate them. i think you know. trucks that are using 80,000 pounds. we're a long way from having it. we're saving these guys $150 a gallon and you're just not there for electric and that space. >> when do you think you get to the tipping point where you have enough stations that you can see lots of big companies, not just these one offs making the switch? >> so until recently in this mark, 60% of every trash truck bought in america is natural

gas. so they had a good engine a couple of years ago and that industry is moving. this is a big market. use about 25 to 30 billion gallons annually. and so, they needed the right engine. that's why you're seeing the option go up. this year is the first offering of that engine. 2500 trucks will hit the road. if it does the same thing that trash has done. this year is 5,000 every single oem making engines now in the world has a natural gas offering.

>> the ceo of clean energy. nice pop in today's session. it's not just ups. it' lowe's. if i look at clean energies, this stock has plenty of room to run. >> let's move on here. on 3d presenting company. it is moving. shares are taking a bit of a hit. unexpected hit on losses that narrowly missed estimates. sales are going to be to the lower end of prior guidance. and separately, the cfo of the company did step down. >> thank you very much for that. that seems like a bomb was dropped when you said the cfo.

>> it's said for family reasons. >> so it makes it okay? >> look at that. >> i'm just saying i think this stock gets down in the low 50s it's a buy. >> profoundly. the apple ipad may be cooler than microsoft surface but with stock, microsoft could have more power. we will explain why, next. ou lo. ou lo. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis.

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>> welcome back to fast. we are watching shares of cisco now at its afterhour session low. the company issuing very great guidance. let's bring in. great to have you with us. >> what do you do with cisco at this point? >> we have a neutral rating. i think ultimately, to put it bluntly, this was an eggly quarter. talking 8 to 10%. street was expecting about 4% growth.

i would say they are preserving their margins pretty well. they are guiding operating margins to be about 28% more. >> is this a read through to the likes of a juniper or an f 5? >> if you look at the -- we had terrible results from ibm. we had praety weak results from emc. i think this is a big company selling boxes today, that's a challenging market. having a very difficult. >> zero growth. clearly speaks to that.

why don't they take a shot. >> totally agree, guy. we wrote a. we talk about a potential acquisition. weren't that bad. it reportedly gets them into a $50 billion market. at the end of the day, sis co-has got to look at inorganic revenue growth tubts. >> he has been obviously the ceo of cisco for over 20 years. he has done a great job of navigating so i don't think it would be -- i don't think, you know, that would be a positive catalyst if he stepped down.

>> the revenue is bad. this is what you probably want to see. >> i don't know, guy, the one day rule? the two day rule? you let it get washed out. >> like your lacrosse career. there are no one day event in tradings. >> he called you old. >> all up 6% or more. the best is yet to come. >> so we definitely saw some above average activity in the options side.

the old favorite stock right there. >> it was micron, really. there was a lot of call volume as i just talked about. those are guys that are obviously speculating that the stock could be above 1920 for the week. that suggests that we might be taking a look at profit taking and looking deeper into the options activity. >> all right. >> that is a sizzling jacket right there. >> still to come. it took one big name to catch on to what our own guy has been

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>> welcome back. in case you missed some of today's top moments, here is a rapid fire recap in tonight's executive edge. >> what we learned just a few weeks ago is it did get to the 11th hour. there was a broad bipartisan consensus by the united states to be where the united states has always been. >> we really haven't caught up with the economy's po ten shs. the inflation rate has come down and that's why we have got to focus on growth. >> people have been predicting the burst of this bubble for years. the mark has proceeded unabated

when it sort of began to pick up steam. >> that's very important. we really have not had a robust economy ever without a recovery in the housing industry. >> recovery in housing? >> we have never had interest rates here or money this free. that, to me, is alarming. when someone tells me that, these are unique circumstances that tell you that the housing market could only be strong because of what the fed is doing. >> all right. coming up, cramer is playing hunger games. he has got the ceos of yum brands, that stock up today. all that and much more. top of the hour of mad money. and one big firm finally catching up to what our man of steel has been staying for months. we have got the details next. i am today by luck.

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>> time for a trade update. u.s. steel triding higher today.

our own guy has been all over this since june. >> now might be the time to get interested again. >> u.s. steel seems to be finally off of that 17, $18 flr. >> that is exactly what is happening. they are finally playing catch up. >> now if you had listened to guy you would have cashed in on that trade. u.s. steel is up 52% since that first call back in june. >> tim was saying it too. everybody hated steel over the summer. these things were going to zero. now is the time where could u.s. steel go to $30? maybe. but it's a lot later in the trade. >> great call. and look at the correlation. it's a similar chart but steel is the place you have the most skeptical true demand.

i think that was the opportunity. might be about to end. it is having the most negative impact. and companies impact is based on the performance. shares of apple are down about 2%. it's a heated race for the top spot this year. google and microsoft are neck and neck. each adding 10 points to the index so far. should you be investing in one of the next kings or betting on the underdog at this point? dan nathan. >> i think apple is the one here. we just don't know what they're going to do. they still make some of the best electronic products out there. this is the one where we had this earnings clip this year but they're going to get back to growth.

this is the one you want to be in. >> i thought the new ceo was going to be a catalyst. >> i'm not a fan of that. i think anybody internally would be a massive disappointment. i think you see the stock down 5, 7% on a candidate that investors just don't like. >> i have been clear on apple. they quietly announced some kind of a release today. this normally would be time for a very big fanfare. i think their holiday sales are going to be pressured. they have turned themselves into the largest company in the world. they have shoalen thunder across a bigger spectrum and goog sl the company that is not fighting

a game with samsung and some of the other hardware manufacturers. >> forced to choose. >> at current prices. >> forced to choose, yes. >> i'm -- in the apple camp here. forced to choose. when apple reported, here we are doing nothing. microsoft has gotten ahead of its case. forced to choose, apple. >> google. that's any book. agree. (vo) you are a business pro. maestro of project management.

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what if you didn't know that posting your travel plans online may attract burglars? [woman] off to hawaii! what if you didn't know that as the price of gold rises, so should the coverage on your jewelry? [prospector] ahh! what if you didn't know that kitty litter can help you out of a slippery situation? the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum - bum♪ >> and let's take a check on cisco. in terms of the quarterly reporting as well as eps for the current quarter, well below what wall street had expected. the stock is down 10.75%. >> not a lot of cheap stocks with the market having run as much as it has. i look looking at baxter. >> you should be trading the eem and a much more dovish testimony. >> cisco on the lookout for

february calls. >> i like uri. >> office furniture space? >> all right. thanks for watching. see you back here tomorrow at 5. in the 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. just trying to save you a little money. my job is not just to entertain but to educate and teach and coach, so call me at 1-800-743-cnbc. right now, right at this very moment, this red hot minute, it feels like the old days are back in the stock market.