we'll see season volatility. >> my thanks to everybody. now it's time for "fast money" coming up with michelle cabrera caruso in for melissa lee. >> so much news after the bell. >> such a busy session. there is a lot to get to. we will hand it right over to you guys. >> thanks, so much. "fast money" starts right now. we are live in new york's time's square. our traders tonight are tim seymour, brian kelly, karen feinerman and guy adami. coca-cola is moving higher on the news along with monster beverage which is soaring after hours. if coke is moving higher, clearly, those shareholders leak this idea. >> this is the story of the market. we talked about why the market keeps going up. you might have mediocre news, these large companies have to go out and buy that growth.

so for bold companies, i think it's great. what you do need to think about is what's pepsi going to have to do now? are they going to by growth and from whom? >> who do they buy? >> pepsi has been much more aggressive in the snacks and emerging markets. i think i spend time on this desk defending coke and their sluggish lean where they missed on marketing. this is a smart deal. what is different about this, brian talks about the mna activity or these types of deals by multinationals or big cap companies. this is not necessarily coke using an inflated stock as currency to buy something now on the tech space. you have to applaud the deal. they are clearly finding places where they can partner with people, use their niche and carve out brand recognition, let's face it, who has the best brand recognition in the world? coke might be top five if not number one. >> tim's point, a great company. they have underperform pepsi, the last few years, coke has

underperformed. does it force pepsi to do anything? i don't necessarily think so. i think they dominate the snacks. who is left out there? i will go back after the news came out how far many months ago that was. we talked about soda stream. it was initially lower, then spiked higher. with the short interest that soda has close to 30%, market cap of less than $700 million, you wonder if somebody out there might take a shot at soda. >> everybody else is wondering, too, when you look at after hours trading, soda stream for sure. there is speculation they could be in play as well. one interesting, there is two directors coke has the right to put on the board now. we haven't seen 13 d-filing yet. it will be interesting to see whether coke is buying more shares. >> does anybody define coke or monster because of this deal? >> i tell you what, the nice thing about coke, you are not chasing the company, they had decent second quarter number, people are looking for a decent

inflexion point in the stock we will talk about the yield environment, people are reaching outior field, it's plummeting. it's a great dividend stock. i think it's an interesting play. >> let's bring from the rbc capital markets, he has an outperform rating on both coca-cola and monster beverage. what do you think of the steel, why don't they buy the whole thing outright? do you like this structure better or should they have gone the other way? >> i think coke is tipping their toe in the water. they want to make sure they can test and understand how monster's brand resonates internationally. remember, coke doesn't distribute monster in every market. i think it gives tell an opportunity to test how strong the market brand is. it all suggests the brand transcends not only subsegments but geography. i think this is a great structure of coke. >> do you still buy the stock to rate after this or does this make you more convinced?

>> with coke, the one thing that's very clear here is they are listening and that's positive. in the end that leaves the supply chain and a healthy supply chain is what will create value in the overall coca-cola system. that's number one. mormonster, this is a huge, huge development. you think of them distributeing through multiple different parties. now they distribute through one party, you guys mentioned earlier is one of the global distributions in the world. so this is incredibly positive for monster? >> is coca-cola done or is there more in terms of purchases? >> certainly, their stated mission is to be number one in every beverage segment non-alcoholic beverage segment that matters. energy drinks clearly have become a very important segment. you think about tea. you think object juice, coffee, for instance, what they did with keurig. i think coke is lining up their chips.

i would not be surprised if we see activity going forward? >> do you think pepsi needs to do anything if response to this or they're doing fine as they are? >> look, i think pepsi has a set of different pressures they are dealing with, with activism. they are fundamentally trying to prepare. in the energy drink category, i'm not sure what else they can do. really, monster was the only plan. i don't think red bulls will fail. it's the other major player in the energy segment. so i really don't think this will have a big play for pepsi. at least on the energy drink side. >> all right. good to have you, we really appreciate it, mr. mody. >> thank you for having me. >> other big stories after the bell, j.c. penney and nordstrom's out with earnings. courtney. >> michelle, another surprise in j.c. penney this time to the upside. the struggling department store showing signs of life, reporting a loss of 75 cents. that's better than the expected 93 cent loss.

revenues 2.8 billion. slightly better tan forecast. same store sales of 6%. albeit easy to compare. still the retailer improving gross margins to 36% and growing online sales to nearly 17%. j.c. penney re-affirming the full year saying gross margin will improve significantly over 2014. cash, not a problem. expect it to be in excess of 2.1 billion by year end. cash flow positive $76 million. that's a huge improvement year over year. the ceo mike goldman is not on a call. the ceo said he is recovering from a surgical procedure. record did share encouraging news, though, we're back to school. take a listen. >> we are very pleased with our back-to-school performance. i tell you week 26, which is the last week of the quarter is the second largest week of the spring season for us, second only to easter and we ended on double digit comps.

so we feel really good as we head into august about back to school. >> reporter: higher end in order strom beating the bottom line on ebitda revenue. same store sales growth of 3.3%. >> that department store up ending the guidance. the revenue guidance a little light. that conference call is also now just getting under way, if there is news, we'll bring it to you. michelle, back to you. >> thank you so much, courtney. let's trade retail. what do you think? >> we have been on the short side before and then it kind of got to no man's land. you know, it's not in the death spiral anymore. so that's a good thing. the balance sheet seems to be getting that in good shape. however the metrics of it, it's not trading cheaply. you are paying for a lot of good things to continue to happen. a lot of gross margins for them to get anywhere near where some of these other guys are. >> j.c. penney is up a lot because of the surprise. i don't think you have to rush out tomorrow morning and buy j.c. penney.

i think 12 is the top on this thing. it's a wait and see thing again. it was nost as bad as expected. >> it's another example. it's proof when things looked so, so bad, if you have the stomach at the right moment when we didn't know if they were going to get that credit line, whether or not and now look at the run it's had. >> you are taking advantage of the pessimism in the market. karen and her guys did a great job on the short side. it doesn't take a lot to change sentiment. these guys. we've seen this over and over the last couple years, back to the future both with a ceo and a company, a megacap company or a big cap in their space, depending on in retail where there's something to be said about the modz el, the infrastructure and the grand quality. it isn't going to go to zero overnight. i think this is name you can kick around. this is the time. you can't call eight turn around, you can call this stopping the bleeding and showing cash flow. that's why karen was betting against it. it was a bankruptcy on some levels. >> can we talk about nordstroms

for a second? they revealed the price of trunk club $350 million. it will be diluted for several years. it sounds like a small transaction, yet a big impact. is that crazy? >> you might be crazy which might have nothing to do with it. it seemed very expensive. the multiple of sales was high. it is that odd to be that diluted. four-and-a-half times sales i think they said. it's an interesting concept. i go es the street didn't like that. also i think because of the share buyback, them raising the guidance on the eps looked a little better just because lower share count. so maybe the actual earnings dollar amount wasn't higher. >> did you buy clothes in the mail? >> i never did in my life. >> i think north stroms had such a huge run. they had to say everything exactly right this quarter. this opportunity to buy, it's probably going to take place 63-and-a-half, 64. macy's, we said yesterday, it

turned out to be correct in the short term had a nice bounce today. the levels it traded down to yesterday were levels they had before. i think macy's given the bounce today is the most interesting stock on the board. >> all righty. new signs of weakness in europe and asia today. has the u.s. become the safety trade? that's next. plus, as investors searched ford yields, should dividend stocks be in play again, kevin o'leary is coming back to battle your own guy adami over whether dividend stocks are the way to go. that's coming up. it's going to be blood in the streets, my friend, rates are going up. you will never convince me to buy a stock that doesn't have yield. >> there is a chance the equity goes lower, there is that chance. >> okay, chicken little. >> okay, chicken little. can take you in many directions. .

>> there is a chance the equity

the 13 f filings are out. let's get a news alert on warren buffet. >> buffet, let's get through the headlines. buffet takes a new stake in charter communications. we will watch those shares. also warren buffet berkshire hathaway in stars networks, also

boosting tear steaks in both verizon and general motors and decreasing stakes in directv and conoco philips as well as philips 66. there are decent size moves here, notably, a new position in charter communications. certainly, one of those companies we will watch on the heels of this report. back to you. >> that's interesting. he increased his stake on the distribution platform and the content, which seems almost contradictory to what everyone else is doing. >> maybe this isn't buffet. maybe this is wexler, maybe this is again combs, so his leiutenants may be doing nieves, you never know. >> to me, it's a stock that's so bombed out. this is a man that takes a long-term view on good companies. gm is proving this is a global brand reborn in terms of efficiencies. yes, we all know the recalls and the regulatory overhang is something that says this is not, this may not be a "fast money" trade. it's a name on valuation.

it's probably the cheapest of the majors. it's a name that warren buffet is right up his alley. >> it's old school. a business you can understand so easily. >> i like it with jim. i've owned it. in and out. it's, when we talk about buying something when the news is really baaed. >> and not caring about tomorrow. >> what about the position in conoco. >> he's also been in exxon mobile. he's been in this whole energy space. it's interesting given what oil is doing. again, with conoco philips, you are betting a lot on the u.s. crude, i'm not sure i want to be in it for the shorter term trades, again this could be warren buffet or the leiutenants getting interest, it's a much warmer time frame. >> did he reduce conoco? >> i thought he got it. >> is that correct? did i read it right? i thought he reduced it 10 million shares to a million-and-a-half shares.

he did decrease. that's interesting, that's warren buffet the trader. here's a stock floundering after a psx senoff. did nothing, it subsequently rallied to get to where. >> should warren buffet be a trader? >> that is a trade, in the way i look at i. that's a pretty good trade, it's one we mentioned on the show a number of times. >> now, what's he doing with exxon mobile, right? that's the next question. i'm withle on are you sure we should take this billboard down?

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welcome back. we start with late breaking news oncoka cola. coke moving higher on the news and monster beverage is soaring. joining us now is john who was here in political. is it as you expected john jannarone. >> the main thing is growth. look at the big picture numbers. coke is seeing volume declines, down 2%. monster is down 8%. they promise investors they will be doubling revenue between 2010 and 2020. they can't do that on their own. >> back to the net worth that coca-cola has from all over the place? >> another thing that's important to remember here, there is a risk somebody else will come in and sweep this out under them. they have a big deal with

monster. they generate 15% of their operating costs from that operating agreement. so pepsi and bid came in, they'd be in real trouble. >> is coca-cola done? >> it's hard to say. it looks like they are focused on this. they've swapped some of their own products with monster, so they said this is their specialized energy bet. >> so the stream is rising sharply in after hours on expectations it's one of the few left standing here? >> yeah. well, i think this was a more obvious target. my guess would be they're more likely to be buying more of this. again they have this deal. >> somebody else goes in. >> it could be. i mean, it seems like a good deal every two days here. >> that would be a self prediction at this point. all right. >> another thing that's fun in addition, i was talking to a hedge fund manager i spoke to in april. he said he got frustrated the volume growth started slow at monster. it was kind of like, well, this might happen.

i can't wait two years. even if you were betting on this, it doesn't seem like you made out. >> crawlss on a good call. >> we don't have the song. usually we have an intro song. >> exactly. >> that's a good song. >> those are the lead-ups to this. >> you know what's interesting on this deal. is the structure of it? could it be used for other companies, i don't know, i'm saying somebody like a haines, they got a big -- >> a tea company? >> husseini foods. >> okhain foods, i wonder if th can sign a distribution deal with somebody else? that's where i would start to look because of the way the deal was structured. >> all right. so that's one way to trade this is a derivative play. >> all right. thank you, guys. thank you, j.j. time now for pops and drops, the big movers of the day, cisco. >> guy, this feels like a

reverse wall for cisco. >> the quarter wasn't bad. the margins concerned some people. the revenue growth wasn't there. if you look at the chart the mover we had into this august is the last move we had. it's the last august we failed to 26. i'm in the camp, i would probably trade down to 22-and-a-half. you take another look at it on the long side. >> a drop of dang dang down 11%. tim see more. >> dang. all right. this is b to c in chosen. this is a stock with a big valuation. i think a little growth and something you should look at. >> power, 4%. bk. >> great earnings, they are here at the nasdaq, the dow celebrating good growth. all these alternative stocks have been doing well. it looks like a space with good momentum. stay with this one. >> a pop of 4% in iraq space. karen. >> that was likely on the third point filing.

good for a nice pop, actually. >> kevin o'leary versus guy adami. it's the change of the century, maybe somebody won't walk away. >> get your tablets, phones and laptops ready. get ready to vote for who you think is winning the debate. all the action starts right after this break. so don't move, more "fast money" up next. did you know a ten-second test could help your business avoid hours of delay caused by slow internet from the phone company? .

. >> welcome back to "fast money." we got some more 13 f filings. the time it's paulsen. they have added new stakes in allergan, allied financial and directv and co vidian and resolving, getting rid of steaks in general motors and american airlines. headlines out of paulsen. one of the other investors are taking a steak in allied financial. back to you, michelle. >> it's on the warren buffet trade, dom. >> that's what makes a market, buyers and sellers. >> what do you think of this position? >> gm trade is to play for the long term. i think there is so much this. i saw paulsen last night. >> of course, you did. >> you weren't there. >> surprising, i wasn't there. >> so all right, guy adami, kevin o'leary, head-to-head on dividend stocks. plus one trader making bupish bets ones tee es tee lauder.

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not long ago "shark tank's kwets kevin o'leary went head-to-head with guy adami over a safe play. we will bring in the shark,

himself, kevin o'leary back for a rematch. this is important. it's your time to get in on the action. log on to cnbc.com to log in your vote, chigen, kevin called him that or the shark kevin o'leary. let's open up the vote now. guy, you go first. >> kevin is a brilliant guy and has become a friend. the only safety in dividend stocks is the dividend they pay, in other words, if the market goes down 5%, you have a 3% dividend yield. that's your safety right there. it doesn't insulate them from the broader market. kevin will start talking about great dividend plays. if you bought a dividend pick, i can cherry pick like anybody else. look a couple months ago the stock went from 20 to 10. they bought it for the growth and got obliterated on it. a company like conedison, it has

not participated in the broader market over the last three years. >> kevin. >> go ahead. >> guy, listen to me here, grasshopper. you will learn something. wait. way. over the last 40 years, i don't want to pick a name. i will give you the market stats. it will humble you. you will become a disciple of dip-ins. 73% of the s&p returns in the last 30 years came from dividends, not capital depreciation. i need you to come to capital boot camp and in 30 days you will not buy stock that will pay the dividend again. you are letting the ceo and chairman of the board to not get your pre-cash every quarter when you don't get a dividend. >> that is a bad outcome, my friend, the stats of history tell you you are wrong. >> let's talk about the stocks. you have a number of stocks here, i'll baccarat el them off, mckesson, union pacific, emc,

haliburton and comcast. the biggest is union pacific at 1.8% yield. mckesson and halliburton, they have a yield, it's not significant enough to say i bought these stocks for the dividend. you bought them because they're fantastic companies that happen to have a dividend. is that not true? >> no, grasshopper, no, there is increasing cash flow every single quarter. i know with certainty, their board and shareholders will increase the cash payout in the quarters ahead. i don't buy dead companies, guys, you know this with certainty the only thing with certainty is free cash flow, you know what it is. >> fair enough. >> cash matters. >> and this got started just so we can help the viewers a little bit. i was talking about bond yields the first time we had this discussion. i was under the impression. i am still of the belief that yields are going lower. i think one of the things you said is why would you want to be in a ten-year treasury, we can

be in stocks that have yield my point to you then was i think the bond market is trying to tell us something. yields have gone lower, ail be it the markets have gone up as well. >> if we can find the conversation to lower stocks. come on, are you kidding? we're talking about stocks. >> that's how this all started. >> kevin, you have a were ka, i'm coming. >> it's fantastic. the ween is good. you walk around like a zombie saying i will never buy stock dividend again. thank goodness we met. >> you can see how the voting went. guy, it looks like you are the winner with 56%. >> come on. >> grasshopper. >> wait. i wanted to wipe on, wipe off. wax on, wax off. >> do it right meagi. >> the one thing on kevin's stats are absolutely right. but 40 years?

who is playing this over 40 years? i mean, the point is he brought up. >> that's the slow money show. >> think there is a lot of room to take the stock higher. >> we have to go to breaking news, sarah eisen just got off the conference call on coke. sarah. . >> on the question of what the $2 billion investment means in monster energy, monster beverage. they have the option of increasing the stakes, they're not under u under an obligation. >> that, of course, leads to speculation that this could be a bigger investment down the road. they were asked by many journalists, the ceo of whether coke would buy the monster beverage out right. he would not comment on that. that's not relevant. it's not important. what is important is that these two companies, long-term interest is aligned together. there is an exchange of product as you guys have been talking

about. monster before annual under coke's portfolio or the energy beverages going to monster's portfolio, so, obviously, this is a close alliance, but for the comment on whether coca-cola is going to buy monster outright. worth noting this follows coca-cola's recent strategy. they have a 15% stake they have increased over time in green mountain. they are increasingly looking to new technologies and new hot beverages to meet the consumers, the colas and the diet colas continue to decline while energy drink is the fastest growth category. i asked mr. kent about this on the call. he says he continues to see growth opportunities in this category and also raised the fact that internationallily is in emerging markets, the energy category is going to grow. >> did they give you any indication of how much more with their increased help with distribution that they could actually increase the sales of monster. they already helped with their distribution, right? >> they do help. they've had this program in place for a long time.

they are exploring, broadening that out. no announcement on distribution. this will give monster access to bottleing distributions, which they have them in place and they will discuss that out beyond the u.s. and canada territories that are already in place. >> thank you so much, sarah. karen. >> we are looking at if we did the math, they paid in the mid-60s per share. with the stock at 86 or 87, i mean, you are paying a huge premium for -- >> you are talking about people buying after hours right now? you better expect very big things by either the distribution agreement or bought out. >> and relatively soon. >> shares of cosmetic giant estee lauder are trading at all time highs. people are showing the company's earnings tomorrow morning. mike khouw is at the board. >> 13-and-a-half times the average daily put volume. what we saw were buyers of the

72-and-a-half puts. that's the best the stock could drop by the end of the week. if we take a look at how the stock has performed over the last five years, with see obviously up here that might be a part of the reason. short interest is not the last time we saw a swoon in the stock. on the good side, this is a stock making 80 cents a share down there. up here it's about $3.20. >> thank you so much. we will be watching that one tomorrow for sure. you can catch more options action tomorrow at 5:30 p.m. check out our website. all right, coming up next hour on "mad money," cramer cooled off when he took the a.l.s. ice bucket challenge today. tonight on the show, he will heat things up. he's got a ranging of the top restaurant chains serving food south of the border. that's coming right up. .

all right. take a look here, icons, carl icahn, of course, looking to split up the company, the latest

13-d filing. as you can see, stock is moving after hours as you might expect. it's time for the final trade, let's go around the horn. >> tim. >> balloony fxc short. >> that would be the canadian? >> of course. bk. >> this isn't so looney i don't think. ewz had a weakness yesterday on the tragic death in brazil. i think you still own this one here. >> wow, that's interesting, karen. >> macy's, do not silt on earnings yesterday. i thought they were fine, a tiny bit disappointing, if you look at it versus jwn. it's very attractive. >> guy. >> it's fun, you know, it's good energy. >> thanks, kevin o'leary is a gentleman, right? >> he is. we are arguing different points, it's fun. >> you are right, grasshopper. >> "fast money" high. i think the rates are going low, a 52-week high basically 116 and change.

i think that sucker is going to 2%. >> tlt totally long treasuries. >> look at you. >> i'm michelle caruso-cabrera. catch "fast money" tomorrow. don't move, though, "mad money" with jim cramer begins rights now! my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a work somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money". welcome to cramerica. my job is not just to entertain you but to educate and teach. so why did you call? 4 call me at