well. >> i know. john brown. >> well, a lot of news, a lot of moving parts today. thanks for sticking with us on the closing bell. thanks to michelle for being with us all show as well. thanks to our panel. >> good the see you again. >> "fast money" starts right now. by the way, happy birthday, too. [ music playing ] >> welcome to "fast money." we start with breaking news out of israel and russia t. dow, s&p and nasdaq all getting hit with the small cap, russell 2,000 the volatility index often referred to as a fear gate, it jumped more than 30% in a single session. news breaking in the last hour of trading that israeli forces have launched a ground offensive into gaza, after news break that a malaysian plane was shut down over ukraine. plus, we are watching google and ibm. they have reported stocks are moving and those conference

calls are going on right now. our traders tonight. let's go straight to eamon javers with breaking news from the white house. >> reporter: hi, melissa. we just heard from the vice president of the united states. he is speaking if detroit at a political conference. but he offered his first reactions here to the downing of that malaysian airline plane. there's vice president just within the last half hour. >> i say apparently because i don't have, we don't have all detail i want to be sure of what i say apparently have been shot down. shot down, not an action blown out of the sky. we see reports that there may have been american citizens on board and, obviously, that's our first concern. we are now working every minute to try to confirm those reports as i speak. >> the vice president went on to call this a grave situation and,

obviously, the white house and u.s. intelligence are monitoring the situation and just within the past hour, melissa, we did get that confirmation from u.s. intelligence that, in fact, they believe a surface-to-air missile took down that malaysian airline plane over the ukraine. there seals to be some dispute within the intelligence community or some further work to do investigatively to figure out who fired that missile and why it was fired. was this an intentional strike or an accidental misfire. obviously, there is a lot of heavy machinery, heavy military equipment in that area. could this be a deliberate strike by one side or the other or an accidental misfire. that's the first reaction we have from the vice president of the united states, melissa. >> thank you very much, eamon javers, these two stories, a lot of moving parts. let's get the latest from michelle cabrera-russo. >> let's start with israel launching a large scale ground offensive in the gaza strip. it happened late in the session.

we watched it unfold on international television. it was one of the reasons the markets took a lick down and pushed yields to lows that we haven't seen in several months when it comes to the ten-year invasion, escalating a ten-day military operation to destroy the weapons arsenal israel says is buried in tunnels near the borders. the rocket firing ability firing missiles into the border with israel. it was the first major ground offensive in years, it came after they tried to get under the gaza tunnel but were stopped by israel. we will give you an update t. dow jones now saying in the last few minutes, malaysian airlines executive, that mh17 had 280 people. we are getting more on the

citizenry and the plane. >> thank you. let's get to the market reaction today. there is a lot to trade, whether it be the typical staif safe haven trade. in the sell-off and the momentum areas, such as biocaps, biotechs as well as the russell 2,000. what was your first move today, bk is this. >> this morning it was to boy bonds, the 30-year bond. that was on that weak houdzing number. coming in tonight, i thought the russian sanctions for me weren't that big of a deal. even though the market was down a lot, i thought that was silly. now we have a situation where it seems to be escalating. you probably will have to have more sanctions or at least something else going on and in terms of the market, the market will probably price in the worst case is scenario. that's why i think bonds are the buy here. >> part of the week, of course, tomorrow is friday. i don't know with all this brewing if traders will want to be long, equities or perceived as rick going into the week. >> i think your point is valid. i thought the most interesting

and you talk about it at the top of the show was the russell. you will start hearing a lot of people come out with charts of a potential double chop here in the russell. the iwm. we topped out around 120 in march. we had that precipitous sell-off into the spring, rallied back. went to the exact same level. this 120 level earlier in the month. now we're selling off. 108 in my opinion is critical support. that what we talked about in the spring. things get very interesting. then does the russell lead to the transports and the transports lead to the broader market? >> it's being because geopolitical doesn't have the ability to knock this thing down. it did today, obviously. 1952 was the s&p low in the cash last week. we flirted. we didn't get there yet. >> for me, utilities, gold,

gdx,town southern smpl ompl, that's where you want to be just in case this thing spirals a little more out of control. we den know yet. we don't have any of the answers we really need in this market. >> we touched on the vix, up 32% in a single session. in context, this is still relatively low if you wanted to buy protection going into the weekend? >> you certainly could, in particular, the malaysian air 17, that disaster caused the vix to spike from an 11 close last night to right around 12cist just shy of 13. we weren't even able to hold it. at halftime we to the we could break down below 12. then we start to get late in the session as michelle said, the gaza invasion. and as that happened the spike carried us over 15, through 14, all the way to 1538. the highest level since april of this year. we came back down as you said about 75 vents e cents to the mid-14s right after that. so there was a panic that hit

because people didn't know, was white house being locked down? steven grasso can speak about the new york stock exchange and trading, when people were hearing that, along with the invasion in gaza, they figured, maybe i better get a little more protection. that's when the panic hit. it subsided into the close, however. >> what was there panic? was there panic or orderly selling? >> they couldn't get their heads around what had actually happened on the first, obviously, there was three clear sell-offs. there was first the malaysian airline. then it went to bullard and as john said gaza, if you look at the chart on the daily, those are those three things. people said after the first one, sell, we'll ask questions later, after the second one, they saidlet get the hell out. >> i'm not sure this was all malaysia and gaza. if you look at the sectors the sentiment. the ibb the social media stocks. for three days they have been

selling off. so this is something that certainly exacerbated it. what i'm saying is there is more to this than what happened geopolitically today. >> with more, let's bring in thomas pickering, former u.s. ambassador to russia and israel. he joins us on the "fast" line. when you take look at these two situations we have on our hasn't, which one concerns you both. >> they both concern me. it's hard to sort them out given tear freshness on the scene, but it is very clear that something terribly tragic has already happened in ukraine. it doesn't, i think point point to the separatists but the putin remarks are certainly very defensive on this particular issue. you wonder why, in fact the airline was flying in that particular corridor when it was opened, if, favenlth, active air combat or ground air combat was going on. we know, in fact the ukrainians

have been shooting at aircraft, perhaps the russians, too. so it's not a place for a civil airliner to be. another tragedy from a malaysian airlines, particularly the family. in gaza, we have been expecting this for some time. this time it appears as the they're going in, if large measure stimulated by the continuing crescendo of rocks coming into israel and landing on them and their effort to do what they can to produce a defense. i, frankly, am not sure given the idf experience in 2004 with hezbollah whether, in fact, this will be the co lco colossal victory. i find it hard to believe, fact, that in the end this particular ground attack is both going to solve the rob in a military sphere. i think that there is going to

have to be further political development. they were close two days ago at the hamas people tells us because they feel their constituency has to be given something more than they were going to get out of this. they will produce that, but it will have to come politically, not militarily. >> what unfols for the u.s. to become directly involved in what's going on with russia and ukraine? i mean, that's the biggest concern right now. >> well, i think we are wage involved in many ways, the president talked to putin two days ago, i think. i think we have to weigh in now very heavily on this kind of activity from wherever it took place, hopefully, our intelligence can give us better pfgs from where the shot came as they weigh and are beginning to pinpoint who was responsible. i think we need to try to hold those responsible, if there are russian active military or ukrainian active military, then

this borders on the crime of war. in the past, as you remember, a number of years ago the ukrainians shot down i think an armenian airliner over the black sea and it was chalked up to some kind of error of equipment or some kind of error of launch, but this is a serious enough issue to want to hold those responsible, maybe before the international criminal court if it comes to that, but that's a long way down the road. >> all right. >> but i think that it's another reason, it's the kind of multiple factor of the tragedy of the four young kids killed on the beach that led to a short cease-fire today. maybe this is bad enough that it will bring some sanity to the people who are seemingly engaged in eastern ukraine and trying to separate it all and bring that to some conclusion. >> mr. ambassador, with eappreciate your time and analysis of the situation,

thomas pickering u.s. ambassador to israel as well as russia. we want to go to you, tim seymour, ambassador, from one ambassador to another what do you make in terms of today's u.s. markets and a move throughout the day, not only it was hit by sanctions but widening of sanctions last night but of course further to put pressure on the index. >> steve brought this up. it is interesting to me in the last three months, geopolitics have not under mined the fundamentals and the feds. today you started to feel that. we had a move of more than 1% in the s&p. this is stifkt. we haven't seen this in 51 days. as i look at it as an emerging markets players, some markets, even though they were trading at the same time of these unfolding events, brazil which has its own political faument going on, that's a positive. today they're escalating the acquisition. russia was down 7 percent on the rsx by the end of the day.

russia was down 3% before any of this started on the malaysian plain. so it basically doubled its loss on the backdrop here. if you look at where russian stocks, are they had been under some pressure. you talked about the market under pressure for a week. this was something that had arguably begun. it's pretty interesting. >> we all have very limited information and everything is moving. it can develop overnight. at the same time you are a trader. you have to position yourself tomorrow based on what we have right now. how do you view the situation right now? >> i think tomorrow is going to be worse than today. i actually think when i look at russia and the reaction today, we were somewhat i think flat coming into today. we have positions in some of the peripheral names, the technology names that i think are better insulated. if you look at something like mbt, this stock is actually up 10% since russia first invaded ukraine. still somewhat defensive, but i sense tomorrow is going to be a bigger day.

we're all waiting for a response. we all know that no matter what, russian military arms will use this, whether it's the ukrainians, whether it was the russians, themselves, the insurgents. i will not speculate who did what, but there is much more to answer here. i think you have as to watch that. >> we should note we will have a live report from gaza coming up. plus, we are following all the earnings, we have the latest on the goggles and the ibm calls. that's next. . did you remember to pay the dog sitter?

yeah, citi mobile. and deposit that check? citi mobile. pack your bathing suit? wearing it. niiice bank from almost anywhere with the citi mobile app.

. now for the latest on israel's ground offensive in gaza. we go right to gaza with richard engel. richard. >> reporter: melissa, i am in gaza city right now and we have been hearing a pretty steady stream of israeli exploeks around the outskirts of this city. we have also been seeing israeli illumination flares over the city. we are watching the tracer around flying. we have a little more information about what israel says it's objective is for this ground offensive. it says it wants to target tunnels that militants, particularly hamas have been using to infiltrate into the

gaza strip into israel. the israeli military has called on palestinians to stay away from areas that are close to the israeli border. it is unclear how long this military offensive could last. some israeli officials earlier today had suggested perhaps it could last up to two weeks. but the way these operations tend to go, once you have troops on the ground, it is very difficult to calculate what will happen next. we can also hear but not see israeli drones flying overgaza city. you can hear them quite loudly, in fact, if you go outside, very few people are on the streets right now. they are pretty much abandoned. the offensive so far, this ground offensive, does appear to be in the areas just in the border town around the gaza strip. the edges of the gaza strip that those areas where the hamas could be digging tunnels or may have already dug tunnels. >> richard engel, our thanks to you, reporting live from gaza,

still ahead, we have the impact of the geopolitical impact on gold and what it means for your portfolio. the google earnings calls, much more "fast" straight ahead. chocolate is very individual. white chocolate lovers don't like dark chocolate. milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow the consumer to customize their chocolate. we needed a scalable cloud solution allowing them to select what they are looking for. now there is endless opportunity to indulge.

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. >> here's a reporting earnings moment, the stocks are repeating higher, analyst from suntrust, he covers google. he has a buy call. bob, what's the latest? >> thanks, melissa, a couple things. one, we had a management change.

their business officer will be leaving, someone has been there 15 years, he has been running sales for a long time, top lines, they beat slightly. margins in line. we got as far as incremental data, the rest of the world is strong. it's the first quarter we got click through rates as well as cpcs broken down, google has grown 33%, network remains strong around 9%. on the cpc side, declineing is getting better and better. each quarter down 7%. that's a good thing to say. >> i want to go to the traders, see how we are trading this. grasso, you wanted to get into google you finally did. >> i got shook out. i have been wanting to back in. you actually made me get back in. you asked me why i didn't own it yes. i was waiting for a pullback.

i thought i'd be embarrassed and get that pullback. it slammed in my face. exactly. so i bought half a position and i'll see where this smoke clears, you can buy the other half lower, higher. thank you again for the trade. >> you are welcome so far. it's down slightly, despite posting better than opposing items. back at headquarters with the details, dom. >> ibm said its second quarter earnings did climb, helped along by restructuring efforts. it reported its ninth consecutive order of lowering sales, that has some investors worried. big blue affirming its earnings outlook for the 84 him $18 for the full year. the chief financial officer martin schroeder says on the conference call, he sees consistent revenue coming from the country's cloud business and signings with other companies, interesting enough and overall,

he did say some interesting things. >> when wing will at the revenue streams for services, again, we expect them to be consistent with what we've seen to date. i think we feel as though the yeeltd we're getting out of the in period revenue is a bit better tan what you would normally do if you ran it mathematically. we are getting a better yield. two, we have outside of the backlog you see, we have content, transactional content like our cloud business which continues to grow. third, we will, as i mentioned, get additional third quarter signings of growth that will deliver the rest of that pretty modest 1% growth on an adjusted basis. but that's the best as you are going forward. >> okay, the debate raises whether ibm's future is that bright. they expect revenues to pick up. you have stan druggenmiller

warning warren buffet. >> the decline in the after hours context is during the regular session, the stock did hold pretty strong today. >> i think a lot was intel quarter. i think a lot was the apple announcement. and until today, they had the broader market has been working for them as well. he mentioned buffet and his staff. i have been in the camp. he talked about stan druggenmiller, that's how ibm is getting by. they are buying back stock. that's how they're making or getting to the numbers they're getting past. you can't look past nine lousy quarters in a row. that's a trend, it will work against them. they have been the benefit of a stronger, broader market, which in my opinion is the only reason the stock is 190. >> the latest on the developing stories from the malaysia jet to the ground offensive in gaza and

how to protect your portfolio. that's next. .

. welcome back to "fast money."

a number of stories we are following, first breaking news at the end of the trading day, israeli forces have launched a grounds offensive in gaza, sources have confirmed a malaysia plane was shut down. the dow, s&p and nasdaq all closing in the red. the small cap russell 2,000 seeing the biggest losses. plus, we are still watching goggle and ibp earnings him we bought the the updates for you a little later on in the show. meantime, we start with the malaysian jet crash and ground forces in gaza. we will bring back tim seymour. i was watching the oil stocks today, particularly the ones tied up if russia, ooetder through bp's 19% stake or toll which said the bulk of oil and gas by 2020 is going to be russia. >> i think this is you are buying weakness here, i think oil is going higher.

i think you look at brent. i think this is a global brand, you have a great mile. i think a lot of guys around hedgeed.n i think brent in the medium term can go to 115, it's a global demand. we have had tremendous data out of china. we had industrial growth around the world. i think oil goes higher and russian oil stocks, nova tech, one of the best companies to trade in russia i would not be buying that here. >> i was surprised by the move, i would have thought the brent move would have been more pronounced. >> yeah, you would have thought that. i would have covered it before all this news came out primarily because it had been down so much. i mean, you took out probably five to $7 of the geopolitical premium in it. it looks like we will put that back in. so with tim, i think 1 13w507b surprise there. >> slumberge reported after the bell, it boat revenues, which is

encouraging. obviously the stock is selling off. a lot is doing with the broader market. in fact the stock may have gotten ahead of itself. if slumberge can trade down, i think it gets really interesting really quick. that's a name you want to put on your radar screen. >> to me, you mentioned it, it's a state owned oil company. we are making a lot out of what could be nothing. so i would be a seller of the overall oil space but i'd be a buyer and in the services area, they have the most exposure there and they didn't get slammed today. >> it's interesting to see the different oil stocks and how they move an exxon mobile integrated and russia didn't do so well, if you look at the ones that focus on the bakken, they were slated as well. >> you talked to the man yesterday, your interview with paulsen, right? john paulsen when he was talking

about, of course, coddiac, but also oasis, a stock that i love, emes, another stock i would boy here, crr, those are all fracking play, flotek. just what tim said, that's not going to end over there. the way it's going to push prices up over here because of demand cut off out of russia to western europe i think plays right into our hand here, tim, as far as these fracking plays. >> i agree, the difference between present and wti is clear. a lot of the issues, supply dropped. you had technical factors before all of these events some of the intig i big innovative names have been fading this big energy move. i talked about chevron, i like the play on the production growth and the dividend yields. i would take weakness and total and chevron and be buying this. >> another, gold up more than doctor 20 today.

let's bring in the president and features contributor. anthony, good to see you. where does gold go from here in. >> i can see it higher. one thing i noticed ability gold i talked to the traders and the hedge funds, you didn't see a lot of new buying, what you did see what a lot of short covering. shorts have accumulated over the last couple weeks and few days when janet yellin started about the qe in april. the gold was looking like a decent short play up until this morning, up until last night. so i didn't see a whole lot of new buyers come in certainlily that can change. >> hey, anthony, it's bk. if you came in this morning and somebody told you there was going to be a gaza offensive, a plane shut down, how high would you say gold would be? would you say up 17 to $20 was the right price? >> absolutely. i would, i'm almost looking to

fade this rally here. it doesn't matter so much as the gold market goes. let face it, the israelis and gaza, we have done this dance before. we have seen it over the last five years certainly the downing of the plane crash makes a lot of difference. can you see this open $10 lower tomorrow if there wassome other reason it crashed if there wasn't some kind of military action. >> i think i would have thought it would be up anywhere from 75 to $80. >> i don't think so, as i said, this is a very orderly move, it was more shorts covering the market. >> it burned over the last couple years, thinking the dow are crashing. this is why you got to have gold. >> what brian was saying, forget that as an orderly market. gold should be rallying.

what does it have to rally on? >> and gold has been down doctor 50 in the last two days. so to me, i came in a day short. right. so i'm clearly having a bad day in gold. but i would have thought this was up at least $50. >> i understand your point. i understand the point of $50 higher and i'm surprised at that, myself. that's why i'm kind of looking at a place to fade this move. i think, yes, gold has lost its luster as far as a safe haven trade or geopolitical. look at annex crimea, gold didn't move as well. so if gold is not the safety trade here, what the heck is? dr. j., what do you say? >> well, what i'd say is what pete has been pounding the table for for the last i don't know couple months that the vix has been bouncing between 11 and 12, buy the vix.

buy some vix calls, have that protection in your portfolio. you don't feed that much. the reason is, you get moves like today. you don't always get a 30% move. i'll grant you that, mel. you do get 15 and 20% moves out of one asset class. >> that makes umm u up on a $100,000 portfolio, you only have to have a ten lot on to make up for a 2% drop. have those vix calls on both, even at 14-and-a-half have a vix call spread on but like i say, i didn't buyeen any into the bell. i think the vix goes lower army. >> you reach for utilities? >> i do. i have owned s. only for a while. it used to be either or. you owned the utility. i own so, it's up over 9%. if you look at the s&p, it's up 6% year-to-date. i get the yield the exposure to equities and a quasi-safety net.

>> i will go in the metal space, not gold, platinum. i think there are other sanctions. >> how do you play platinum, though in. >> swc, one of the only u.s. platinum producers. i bought that today. russia is one of the world largest platinum producers. if there are more sanction, these guys will benefit. >> it used to be owned by the russian, they sold it off. >> i'd be remiss if i didn't give a show out to fulsome prison, who we are doing the show for tonight. >> men in black. >> men in black. >> whatever. >> one more button, johnny. come on. >> one more button. >> safety trade. >> well, will is no safety is there. but there is safety. i have been saying this, i still think ritz are headed significantly lower, this tlt continues to go higher. this was working before the geopolitical stuff came into the frey. i think tld goes higher.

>> safety to me is this escalation. i would be buying volatility and puts on the dax. the contagion to western europe to russia, specific to germany, also at a time when the dax has been selling at 10,000 for two months, this is a good time to be selling the dax. >> it's a perfect day to have you on set. coming up, the latest from the malaysian airlines crash right after this break. plus, we are still monitoring google and ibp. those calls going on now. the stocks are moving int in the-after hour sexes. we will get to the headlines after the reports next. in the-after hour sexes. we will get to the headlines after the reports next. in the-after hour sexes. we will get to the headlines after the reports next. in the-after hour sexes. we will get to the headlines after the reports next. in the-after hour sexes. we will get to the headlines after the reports next. n the-after hour sexes. we will get to the headlines after the reports next. tdd#: 1-800-345-2550 there are trading opportunities

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tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. welcome back to "fast money." shares of microdevices are plummeting. they're down 16% in the after hours session. it's second quarter profits came in one cent, shy of estimates this quarter below wall street views. it's interesting only because you can see that stock trading down. melissa, year-to-date it's up 18% and 24 hour% over the past four months.

they are causing this revaluation in the after market. over to you. >> over the past six straight quarters, it met or beat expectations. >> i think this illustrates how strong the quarter was for intel. i think there will be the chance to buy amd. yesterday we talked about it. two days we said after the intel quarter when the stack was trading in the after hours, we said take profits, yet a huge volume day the quarter was great. i think you will see the stock trade lower. this quarter mae suck it down a little more t. trade will be amd around 3-and-a-half bucks. >> let's get the latest from cnbc's fill lebeau. phil. >> melissa, you reported and others have reported within the last hour, the u.s. government says this is a case of mh17 shot down by a surface-to-air missile. they are still trying to determine more details in terms

of what happened in the final moments before the missile hit the plane. a couple things we do know, first of all, intelligence says it's not clear who fired the missiles the russians the ukrainians? who exactly fired the missile. this is not an accident. it was blown out of the sky t. debris field spread over 10 miles to give you some sense of the area that the debris field covers. here is the prime minister of malaysia talking within the last two hours about this incident and the need to get more information and evidence from the scene. >> just now i received a call from president obama. he and i both agree that the investigation must not be hindered in anyway. and his national team must have full access to the crash site.

>> following this incident, nearly every major airline said that they are keeping their pilots and their crews away from the airspace, the faa issued a statement saying the faa was in contact with u.s. carriers following the crash of malaysian air flight 17. the agency confirms that carriers have voluntarily agreed not to operate in the airspace fear the russian ukraine border. so what we're seeing, guys, a case where everybody will stay clear of flying near that space for the foreseeable future. there have been some speculation about whether or not this might weigh on air travel following this incident. i don't think, i don't see that happening. i think people will look at this and say, a one time incident, a horrific incident, a one time incident and whether not keep people from flying international. >> phil, i want to do what phil said at the very end, the impact on air trouble the knee jerk reaction was to sell the reaction. we saw big moves, american, for

instance, down 4%. >> yep, i who you would think that these are buys. i have said it on every dip and every dip they've gone higher and ratcheting higher. you take advantage of some fear like this, in particular in those names. >> all right. goggle, ibm moving in the after hours session. we will break down both conference calls after this break. .

. >> welcome back to "fast money." i'm josh lipton. the google conference call just wrapping up a few minutes ago. the search giant reported 6 1k0e7b8.9 billion. it was a miss on the bottom. the paid clicks up 25%. that was basically inline with what the street was looking for. cpcs down 6%. inline with what the forecast is. the management changes in the nikesh aurora, he is stepping down to become vice chairman of

the soft bed. on the call, analysts also asked about google's spending, those moon shots, they do cost money. so an a lifts asked the company cfo, how does he think of those moon shots in terms of businesses? here's what he had to say. >> we set up our kind of governance around a model where we have funding and, you know, the project i have that are more software based will have much shorter lifetimes before we expect returns. the project fundamental also will have a much longer life, time lines for funding. >> so bottom line the company cfo telling the street's analysts, looking, we are responsible with all that spending. melissa. back to you. >> let's go to suntrust. bob, what do you tell clients tomorrow? >> this company is growing

north. entwt% they are reassessing profits, what josh is talking there. it's 12 times ebitda and earnings. >> again this is supposed to be a seasonally weak period. >> particularly around the mar genocide. investors are way too concerned. we are hiring and seeing that margin deterioriate. they are being prudent on that cost control is there thank you for joining us this hour. we appreciate it. lots of breaking news, book pack, what do you do tomorrow morning with shares of google? >> if i were in google, which i'm not right now, i like the numbers, i saw the paid clicks up 25% year over year that bob talked about, although the amount they're being paid down

6% him. i'm not so worried about that. i love the international exposure up 58% of revenue, approaching 10 billion on the quarter. >> i think if we get through that, we have to wade through some of the negative market sentiment. for google, i think you are off to the races. i have to see a close tomorrow. >> what do you do? >> i'm going to hold onto it. 597 is the resistance here. 600 is that mental level that you want to breach? i'll add to it 585 or 600. >> shares of im trading lower. let's bring in capital managing director joseph parisi on the fast line. he has been listening to the call. what is your call and why the stock is trading lower right

now? >> i would say the numbers are better than expected? i think what you see into the print they are getting better than selected markets. >> the majority of the business is still declining and they have been pretty consistent in producing underwelling rules. so i think they showed a little better tan what was expected out there. but the business is still declining, the fundamentals aren't there. >> what did we see in their big growth margin, china, declined year on year double digit declines? >> yes, china was down. chosen is a very important part of this story, emerging markets is where ibm is getting some of its profitability. most profitable deals that wall wraps into their 2015 plan. coin got a really better this quarter. it's down 4% year over year,

that's an earnings. we go over a low bar, better than low expectations, but certainly a little concerning given the fact that they've got this plan out there that is very much dependent on the merging markets. >> what's the multiple in decline for nine quarters? i think it should be an aforward multiple. i think you should say it should be more than that. what should it be? >> bearly more than an 12k3w4r8 you are in a 150-something along with he in terms of stock price. >> we are not that low. we roll forward into the next year. i think you soul go anywhere between 8 and 10. i don't think you deserve a 12 here. until those fundamental also change, i don't think you will get it. >> why is it a future tral, not a sell? >> it is a fair discussion. i bim has a lot of key factors in its business. it has a lot of i.p. it is a global company.

i think that eventually returns back to growth. we've had a long air patch here we have to wade through before we get there. so ultimately i think that we do get there, there is just not enough in the presence in the fundamental also to get us excited one way or another. >> joe, thanks a lot for joining us. on ibm, it sounds like he is essentially accelerating him i'm not going to put a rating on top of his rating. that's what it sounds like when he talks about a barely 8 multiple. >> i was surprised he said 8. he is probably looking at a 19, $20 earnings going forward. >>, i think it's a multiple stock. >> this is old tech. it's up 2% year-to-date. if you look back, hewlett packard up 3%. ibp cannot turn their ship around the way that a microsoft can turn their ship aroundch they can't get exposure to enough cloud space that will move the needle for them.

it's old tech. it should be thrown out tech. it's not going to be a buy here. >> they pitched the servers over to lenovo. that should free them up and give them an excuse sadly i think they do that next month. >> in the short run, they have a cash flow problem. i think he's selling. >> stay tuned. [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim,

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time for the final trade, johnny cash. >> srpt, i'm buy tack one tonight. >> grasso. >> google, i hope bob peck's price is a magnet. >> i think it stakes a profit in micro. so i did it today. i think the ride is over for the time being. a nice high. >> obviously, for jay. >> look at summer, that's slw. boeks in a a silver kank i'm in the playing camp. >> we will have a special report

tonight wrapping up all the geopolitical headlines from the latest in gaza. you will want to watch this to get ready for the markets tomorrow. it could be a big day. i'm melissa lee. see you tomorrow for more "fast" at 5:00. my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. 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 make you a little money. my job isn't just to entertain i'm trying to put this whole in context, teach and coach you. call me at 1-800-743-cnbc. or tweet me @jim cramer. we had a terrible tragedy today, a