on a different note, next week, federal reserve. we have to mention the fact, we don't have a policy meeting. but we will hear from people in new york, perhaps will move the market. >> thank you for watching this hour. "fast money" is coming up, with mandy sitting in for melissa lee. indeed, "fast money" is starting now. our traders tonight, good to have you with us, guys. our top story, the headline-driven rally. the s&p and dow turning positive for the week. word that russia's military exercises near the border have

eased. and the moves in the bond market, hitting an 18-month high and then reversing. every single day, we're lurching from headline to headline, russia, gaza, ukraine. >> well, it tells you how directionalized markets are. coming out of a bull market, it tells you that things are a little tired. and we've put in a bottom, around 7:15 a.m., we got the word that russia is going to de-escalate. a day after significant retaliatory sanctions. but markets were oversold.

relative strength indicator -- >> not just germany. different european markets, in correction territory. >> and the risk of being short going into a weekend where you could have positive headlines, too. it's about flattening out your book. >> you had a market that wanted to rally anyways. once we had the news, you had to cover. it's been driving the market, and you saw every other market follow. the bonds, a new high and reversed. i took a little bit of bonds off, but took off the levered part of them. >> well -- i'm taking the smugness here from you guys. we are down about 3% on the s&p

only. and if we want to talk about how it's impacting the stock market, we're not seeing the really good earnings reports we would normally see. >> well, suddenly, with all the geopolitical problems, we closed down on the volatility. still two points above the average. and we don't know what's going to happen on monday. talking about cleaning out your books, i think a lot of people are in that camp. still two points above the volatility, like i said. very, very late sellers. and this is a opportunity for people trying to dip themselves

into the market, get some of those. but there's still a opportunity with the volatility of the levels. >> and the headlines, 1950, i understand we overshot on the downside. but this 1950 on the s&p, we traded back to it on the upside. we saw the acceleration. look at the mcdonald's chart, it's eerily similar to the s&p chart. the news was awful, but the chart looks good on the long side. >> and the real bad number came from asia.

>> china and japan. >> you would expect that to turn. the same-store sales were atrocious. but that stock never got hammered. not down two points. that's a sign of something about the market and the appetite. >> and two rounds of u.s. air strikes beginning today in iraq. president obama launching a new air campaign three years after leaving the country. hampton pearson has the news. >> well, after 10:00 a.m., a remotely piloted aircraft, a drone to you and me, struck a site. moments later, they were attacked and eliminated. and minutes later, planes struck

a convoy near erbil. and news that two jets operating from an aircraft carrier in the gulf had dropped bombs on mobile artillery used by isis. and the white house says that president obama has not established a specific end date for the air strikes inside iraq. and there's the humanitarian crisis. u.s. dropping supplies, food and water. for the tens of thousands of religious minorities who fled, fearing their lives. and rocket attacks in the gaza

strip have resumed now that the three-day cease-fire has ended. talks have hit a deadlock. israel has responded to the rocket attacks with air strikes. mandy, back to you. >> thank you. so, how will this impact the oil markets? john kingston? >> well, there's really no chance for a supply shock. a sudden amount of crude being taken off the market. they're essentially baked into the price. at the worst, $200,000 barrels a

day in kurdistan. they lost the services of the pipeline to turkey, they had become less of a factor in the market. and the oil from the south of iraq continues to go at a pretty decent rate. >> so, if iraq isn't something we should worry about, libya? do we think we're going to get supply disruption there? >> well, they could drop back to 150,000. they're still unstable but

they're back up to about 500,000 a day. >> well, you tell me what the balance story is. china, people want to meet the incremental demand. >> well, they were putting in a strategic reserve themselves. oil growth has been running on average, about 2% to 3%. a couple of years ago, 11% or 12%. >> well, a lot of people think the brent ti spread, one goes higher, one goes lower -- >> well, today, the exact opposite.

and you look at the physical product markets around the world, brent should reflect more of that. they're weak. brent is taking that hit. you're not seeing that in wti, where the u.s. market is a little stronger. so, now, what happened today is reflective of some fundamentals. >> okay, thank you, let's trade this. what do we do this as a result? >> well, devin energy, sold off. i liked the name for a long time. just hitting a downside after nothing but an upside run. look for names that were hit, bp is another one. underneath $48 a share, it's been slammed. some great opportunities out

there. >> and i'm long to think that $105 is a decent spot. >> and i would go back to what pete said. totale, destroyed because of russia, but they have a 6% dividend yield. >> so, russia doesn't matter? >> well, it does, but that is not a reason to sell these companies down. >> and the exxon, xom below 1$ 0 $100, going a make a push to $110. and mcdonald's, it's worst

july in ten years. and pete spotting some very unusual activity in the housing space. later on, a big move. good poin. grab an edge. look there's two guys on the state farm borrow better banking sign. nope for real there's two dudes on the state farm borrow better banking sign. [ reporter ] breaking news from the state farm borrow better banking sign... we're seeing two men that have climbed the borrow better banking sign gentlemen please get down from the state farm borrow better banking sign. phil get the hose. okay he's getting the hose. alright, let's go. [ male announcer ] talk to a state farm agent about car loans that can save you hundreds. that's borrowing better.

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♪ not the best of days for mcdonald's today. but it's kicking off our top trades today. july, its worst performance of the last ten years. and some safety issues with its supplier. >> well, they were expecting -- the problem is not asia, which everyone expected to be bad. it was u.s. sales. and so, august 7th same-store

sales come out. what they're doing with the bacon cheeseburger. but you're not buying mcdonald's because of topline growth. it's not chipotle. this is a 3.5% dividend, starting at $16.50. >> you obviously aren't eating as many bacon cheeseburgers as you used to, as a triathlete. >> and $16 -- >> well, the problem is growth. anytime in the market right now, people want to see growth. if not, they better have a heck of a dividend.

but zero growth. >> and they need to focus more on the bacon cheeseburgers. you don't go there for a salad. they're trying to be way too healthy. i hate getting a happy meal and getting apple slices. they need to get back to their core. >> are you getting a kids' happy meal? or is there an adult version? with that figure, the way you're bringing it together -- >> oh! >> well, there's a lot of different ways people are looking at chipotle, pollo loco. 15 times, 45 times, apples and oranges. this is a total conservative play, mcdonald's.

there you go. coming up next, tekmira soaring after word that the u.s. government approved their ebola treatment. >> well, this is a name that is absolutely on fire. you want to be looking at it. but the limited use by the fda, everybody excited about it. and another company out there, bio crisp as well. and you do have options. if you're going to get involved, options have limited risk.

know exactly what it is. >> if it goes to zero, what else is there? >> well, they've had some funding from the u.s. defense department, too. and sotheby's, falling with high expenses. >> well, you have to own the stock. anything else is a fool's errand. i would be surprised if you don't hear something next week that will take it back up to $42. >> but what is that going to be? >> i don't think it's over on the activist front.

one of the properties that any number of people can get involved in. carl icahn, perhaps. >> and risk-reward, $35 going back to october 2012. >> pete, spotting some monster activity in the housing space. and the biggest movers and shakers of the day. that's next. i'm only in my 60's.

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>> what are we talking about? >> are you guys getting back together? >> you have to be sensitive to that. someone is going through a painful time right now. >> time for pops and drops. monster beverage. a pop. >> well, they beat the earnings. this company continues to fight against a lot of people saying this is unhealthy. the stock is going even higher. >> and another pop, nvidia, great second quarter. >> well, the growth margins were unbelievable. >> if you want a pop, this is a pop. mercadolibre. >> this is the ebay and amazon of latin america.

so, with everything going on there, people thinking the company is in trouble. but no, they beat the topline revenue growth. >> and a couple of drops. solarcity. >> well, i think this is a tough one at this point. no earnings, i think you sell this one. >> and pop pollution. a group of medical marijuana patients filing a lawsuit about air pollution. now, the medical marijuana enthusiasts trying to weed out the air polluters.

>> we don't fire up the marijuana cigarettes. we talk against it all the time on the show. >> you absolutely do, guy. i believe you. and unusual activity, some weird activity. >> well, the november 13 calls today, bought in a big way compared to november trades. this is an interesting spot considering what the housing stocks have done. >> and the final trade? >> emerging stocks -- >> american airline, i think it's going back up. >> hong kong, i think it's one of the best trades out there.

>> and lionsgate. i think it makes a push towards $40. >> thanks, that does it for us on "fast money." but on "options action," a secret indicator can give us some clues. see you next week. >> burger time. when you run a business, you can't settle for slow. that's why i always choose the fastest intern. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator.

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♪ this is "options action." tonight -- from russia with love. investors around the world are freaking out about russia, but could the russian stock market be your best bet? and we'll tell you how to protect yourself. and what does new york's most famous