out what the whole global story is. but carol roth jon fortt, that does it for us on "closing bell." "fast money" coming up in just a few moments. what are you guys watching? >> kyle bass the hedge fund manager is taking on one biotech in particular. we will name names in our weekly segment "stock therapy" with ms. meg tirrell. >> here we go again. over to you guys. >> thanks kelly. "fast money" starts right now. live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee. our traders on the desk are tim seymour, dan nathan brian kelly, and guy adami. tonight on "fast" the man who called the dollar rally is back and this time he's got a much scarier prediction that could send stocks into freefall. we'll tell you what that is. alibaba hitting an all-time low and dragging yahoo! down with it. is there any reason left to own yahoo!? a top analyst with a bold call will be here. but first to the market reversal we saw today. the dow down a whopping 277 points at its low only toned the day in positive territory. beth the s&p and nasdaq staging key reversals as well. so tonight the question is simple. is the selling over? and should you buy the bounce?

brian kelly, what do you say? >> i think for the time being it is. i think -- >> really? >> yeah. this is for the shorter term trade. i covered a lot of the shorts that i had coming into today. i covered them earlier this afternoon. but i think what you have here is we have the big shock that came out of china and overnight you had the band widen even more. that's in the longer run somewhat good for china because their money supply should expand. that's a positive. the market should have seen that. technically we blasted through the 200 day and everybody started covering. you saw that in the u.s. you saw that in europe. to me this may be a short covering rally, may not be based on fundamentals but i do not think you go tomorrow morning and start shorting stocks again. >> we are talking in our midday conference call about some of the reversals that seemed to be hang as we were speaking. apple of course being a major one. >> apple had been first. the bond market happened at 11:00 this morning eastern time. on big volume i thought 105:00 got down to 109 and change. i don't know if it's over but at least you have something to

trade against for the first time in a long time. s&p happened. that reversed later around 1:00 or so but yesterday we talked about 2054 or so in the s&p being key resistance, traded at 2052 and reversed. is the selling over? to beak's point in the short term yeah. but the bulls have to prove themselves and in the form of getting through 2135 on the up side. and i think nasdaq is the one that's shown the most resilience if you're looking at the majored sooez. and i think that's the one people should be going after. it's not just a reversal today but in the last few sessions energy has been the best performing sector. it's been rallying even before china news was rallying. what's interesting is you're starting to see some oversold conditions pull themselves out. great charts in integrateds. even the drillers and oil service names start to look very good. also the miners have a three-day rally working for them not just gold miners but the big integrated guys. do you buy? we'll talk a lot of technical things with rich ross but the dollar index is now below its 50.

i'm not sure what happened to the dollar bulls out there but they're gone. and you this think the dollar can stay lower these rallies can continue. >> i would mention what you just said about gold miners and also energy stocks. they became really bad presses. they were down so much for so long here it became a consensus short trade. and i think when you're thinking about this and f. you're looking at the russell 2000 that has been in a down trend since it made all-time highs in june and we saw obviously what's happened to the dow jones industrial. these have been trending lower. the s&p 500 again, rich is going to talk about it has been in this seven-month range here and it's really going to be the last one that ultimately breaks if we are going to get a severe correction but i think it's really important to remember that it's hard to press these shorts that are getting overdone a little bit. i think you have to wait for these countertrend rallies. you've got one in apple. it's probably becoming pretty good entry on the short side. it's going to at the time that 100 level. >> with hindsight what do we make of what happened with chien sna no big deal? do we -- >> i'm not of the cam than it's no big deal.

it's what they needed to do to save their economy and it will weaken further. i'm still in that camp. i'm still short the rmb. i still think there's a major problem. i'm just saying in the short term all of this has been digested you have short covering. for the time being you've got to step away from the short side and if you want to dip your toe in on the long side you can. >> well as we mentioned the s&p 500 breaking through key support earlier today only to sharply bounce back. for more on what the charts are telling us let's check in with ever evercore isi's rich ross. what did you see on the s&p chart today? >> i liked everything that i saw today. this is exactly how you order it up if you're bullish on stocks. we know about this well-defined seven-month trading range. and today this 200-day moving average. we break below it and we're staring into the abyss of a collapse beneath 2040 which we've identified as our protective stop on the trade. but we get an heroic textbook reversal. that's a classic hammer. once again you can't draw it up any better than this. this has set the stage for a late summer surge into the high

end of this range up here around 2130. our contention has been and continues to be that we break out above this range and trade 2180 in the short to medium term with up side to 2220. here the story gets even better when we look at the nasdaq. the ndx 100. what's not to like here? we're talking about the best of large cap profitable high-quality tech and biotech. that's exactly where you want to be in this market. you see an up trend, a very well-defined trend channel in contrast to the sideways trading range in the s&p. this is the 150-day, the purple line, in contrast to the 200. it tells you in that nice relative strength. and finally we get this countertrend channel or a bullish flag. that's a continuation pattern. it tells us the next move is higher out of this channel. this is where you want to be. and of course no conversation about the ndx is complete without the big boy here apple. a lot of talk about the break below the 200-day but we closed the gap at 112. we hold that day and once again put in a similarly bullish

hammer. at the very least it gets k baup to the 200-day at 122. new iphones september 6th. china fears subsiding to a certain degree. we actually like china. both of which should provide a bullish tailwind for apple, for the broader market. once again, melissa, like everything i see here i'd be a buyer tomorrow for the rest of the summer. >> what did you make of the action in the ivb? it had a very nice reversal in today session. biotechs in general important to the health care trade which has been a top performing sector. >> once again fantastic acts today. earlier in the day as the broader market was sliding you saw nice relative outperformance by the high beta biotechs. that's telling you that the risk appetite was still there. they were not selling those biotechs en masse. that longser term up trend is still intact. this is the group that a lot of people want to see crack and it just keeps going. we like those large cap profitable biotechs. celgenes, regeneral ronns, amgen, biogen even after the 20% pullback is still a buy. a lot to get your arms around in biotech and the broader market.

as tim alluded to finally getting a little help from the beleaguered energy and materials complex with that weaker dollar stronger euro today. >> rich thank you. rich ross evercore isi. to call him mr. bullish would be an understatement i think. >> he's got the parade music going. and i tell you what. technically as he says it looks great. watch japan. probably the highest conviction overreach market starting to break last night. obviously we'll watch the china peg one more time. but europe, the dax down almost 6% in two days. can the euro stay where it is and can german stocks rally? german autos, that's the key. >> coming up next cisco out with a big beat and the stock is moving higher in the after hours. latest from the conference call with the new ceo at the helm. plus kyle bass's biotech beat. what is the hedge fund titan up in arms over? one name in the space. and what it could mean for the stock in the long term. and later forget about today's bounce because according to one widely followed wall street insider we're getting perilously, yes, perilously close to recession. he'll be here to explain what it is that has him so worried. much more "fast money" straight

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welcome back to "fast money." shares of cisco moving higher in

the after-hours session. let's get to mary thompson for the details. >> hey there melissa. the networking giant delivering solid results thanks to its modest growth in sales of routerers and switchers while total revenue was 4% the company highlighting strong gheith in deferred revenue up 20% in the growth. geographically the americas were the drivers revenue up in the region 7% offsetting flat results in asia pacific and europe. the middle east as well as africa. now, on the conference call the firm's new ceo chuck robbins saying he believes he is stepping into the role at an incredible time for the company. >> cisco is in a very strong position. our results reflect the work we've done over the last several years transforming cisco in today's rapidly changing market. when i think about our strategy i look at the huge market opportunity that exists as businesses and governments use technology to drive their growth and operationa efficiency. >> of course robbins talking about cisco's opportunity in providing the equipment and services these clients will need as they move toward digital and embrace the cloud. the company also saying it will look for the red acquisitions to

drive the strategy in the months ahead. robbins also highlighting the company's securities business. it had a very strong quarter stronger than expected revenue there. he says clients are accelerating their shift to hardware -- or from hardware to software and are adopting cisco's subscription-based model. he says it will be a focus for the company going forward. when asked about the emerging markets robbins said brazil and russia remain tough but in chienate firm had its best results in a few quarters with india and mexico also being bright spots. lastly for the current quarter cisco is forecasting earnings of 55 to 57 cents a share. revenue expected to grow in line with expectations. melissa back to you. >> mary thompson, thank you for the details. dan nathan you making a comment about the guidance and how that might signal change here. >> chambers is still the chairman of the company. i guess he's going to be his wing man. listen, this company has been in a multiyear transformation here. robbins just rejiggered the

entire c-level suite here. here's the thing. there were no surprises here. the quarter was decent and the guidance was in line. the one thing i would just say is obviously the americas was very good sales up 7% asia was flattish. but those are potential head winds. this is a company that gets 40% of their sales from outside north america. to me i think with the stock up a dollar in a market where people are shooting first and asking questions later they didn't give many reasons to do that. i think the stock is cheap. i think you're going tief stock that's between 26 and 30 for some time until we get some more macro clarity. >> real quick on cisco. >> i think it goes higher wp we're in this defined up trend since milled of 2012. 12 1/2 times forward earnings operating margins closing on 30%. i think it goes through 30 bucks. >> now into tell. big day of gains going higher by just under 2% helping to boost the dow in its turnaround also spreading love to the rest of the chip stocks micron texas instruments, broadcom all ending the day higher. dan there was an interesting note from northland securities about intel's gains in the new

iphone. >> and this shouldn't be a huge surprise. we know qualcomm's had some issues. they were designed out at least in their modeum of the samsung galaxy 6 that came out earlier in the spring here and there's been talk about this for a while. listen, the stock is down 15%, the semiconductor index from the all-time highs made in june here. the stock intel in particular one of the largest components or the largest component was kind of getting oversold here. a lot of bad news in the stock. it's a cheap stock. i don't think you buy it. i don't think you chase it here. i think the stock goes lower over the next few months. >> sector reversal was interesting especially micron ahead of its analysts day on friday really showing some nice -- >> but as dan said the bottom's so low for these guys i don't know -- you really do need to see something out of them. i think technically also if you look at the stocks if you look at intel it has to get through 31 it's been a key level. i thought it was going to hold that. that is resistance. we'll see. >> next up the gold miners. take a look at the moves in bear kinross, newmont, goldcorp. this as gold prices hit a five-week high in today's session. beakers. >> and we're up almost 18% off the lows that we were not even a

couple weeks ago. it's been a tremendous trade. really what's happened is you have the long dollar trade become the consensus trade so upon any type of weakness which we got today and particularly you get gold miners and gold rallying. gold miners tend to rally their countertrend rallies are very aggressive. they tend to rally a lot harder and faster than underlying gold. i was long gdx call spread coming in, actually took that off today. just to take profits. maybe it goes higher but it will go higher without b.k. >> a couple weeks ago we talked about gold 1044 was the price. india bought 200 tons from the imf in 2009. effectively that's where it held. tim talking about the dollar potential continued weakness in the dollar which should theeshtically be bullish for gold. i think it nz to go higher from here. >> next up alibaba hitting a new all-time low after a big revenue miss this morning. earlier on cnbc ceo daniel zhang had this to say about china's impact on the company. >> we closely monitor the chinese economy and the impact on our chinese consumers' behavior, but what we observed

that consumers still coming to our retail platforms to do the shopping because of the lifestyle change. so we are confident for our long-term growth. >> baba's pain dragging down shares of yahoo! which owns a big stake in the giant. bob peck is suntrust managing director. today without the red phone but still bob peck. so bob -- >> just in red in yaw ah's underlying stock. >> red in yahoo! red in bah baba. let's first deal with the baba question because that's integral to whether or not you want to own yahoo!. how bad was this quarter? because it sounds like you don't think it was that bad. >> we thought it was an okay quarter. slightly missed msgm slightly missed revenues. still talking about a platform that's growing 30% as far as their users, 30% in gmv, 30% as far as revenues. >> the lower take rate wasn't a concern for you? >> actually the great part about that was the mobile take rate was up 50 bips year over year and that's their future in the growth and that's more than 50%

of the gmv right now. we actually liked it here. thought it was a solid quarter. it's only trading around 18 times earnings or so when you adjust out their cash and investments. 30% bottom line. that's less than a peg of one if you put a 25 on it you're talking a $125 stock. >> that's the fundamental case in baba and you heard daniel zhang talk about the chinese economy, how people are still buying on the platform. but there is the perception that china is slowing and that is going to be a proob for all chinese stocks. particularly chinese growth stocks. >> won't that sort of kidnap the trade? >> it could, actually. if the chinese market gets worse or the stock markets get worse there it would be an overriding theme and by the way would also have impacts on the u.s. stocks as well. obviously. considering we can't necessarily call that we'll look at the fundamentals. what we like is they're also diversifying away from china. they're investing in india, 234i69ing in the u.s. growing cloud. you've seen what amazon's done with aws.

large opportunities there betting against here which we don't think are being captured in the stock. >> were you saying the other night not to own yahoo!? >> i said 34 1/2 was -- we talked about the level 2014 bottomed out in the middle of the year around this time of year at 34 1/2 and that's basically where we closed today. did not trade well clearly. baba didn't trade well. but if you're look for an entry point we flagged 34 1/2. i know it trended lower today but here's your level. >> you said own it. >> the interesting part is when you take out their shares of yahoo! japan, their share of alibaba and their cash, right now that stock is trading at a network core value. a negative multiple on ebidta. the stock market is not giving them any value for the core. we think the core is challenged and the stock market's r50i9 to be a little concern there. we did a detailed note on the three year review of marissa mayer. we gave her a c. declining ebidta declining revenue. it's something that needs to be turned around but it's something more than negative. if the public markets don't fix that we think the private markets will after the spin. >> would you rather yahoo! or baba if you had to own one? >> we'd own baba because we

believe in that big story there but also i'd say getting a core for free i like that in yahoo!. >> bob-g to see you. bob peck suntrust. coming up hedge fund heavyweight kyle bass embroiled in a battle royal over one hot biotech stock. a look at what it could mean for the name and whether you can get in on the action. you're watching cnbc, first in business world wilde. in the meantime here's what's coming up on northwest.50. >> man who called the dollar rally is with an even greater prediction. >> oh, no. not again. >> and it could spell doom for stocks. we'll tell you what that is. plus -- ♪ "fast" is going west. in search of the best investment opportunities in america. from stocks to real estate to cars we're headed to the hottest city to find you the hottest trades. "fast" goes west. tomorrow at 5:00 p.m. on cnbc.

one biotech stock could see massive moves later this month thanks to the meddling of hedge fund heavyweight hitter kyle bass. sounds like it's time for some much-needed stock therapy with our resident biotech stock therapist meg tirrell. what's happening? >> you remember earlier this year when kyle bass and heyman capital said they were going to challenge all the patents

underlying a lot of the biggest drugs at biotech companies. they started and they've actually attacked eight companies now. the patents underneath eight companies. 15 different ipr changz. so we have a list of those companies. encourta which started in february to big companies like celgene and biogene. this is really spanning again. they have impacted stocks quite a bit. if you look at accorda which they filed their first challenge on in february, and that stock has declined quite a bit this year and came down 10% since the initial challenge. the reason accorda has been hit so hard is because they're challenging the matents underlying their main source of revenue. more than 90% of their revenue tied up in this multiple sclerosis drug and folks say if this decision comes out negatively for accorda that could really cause some consternation among sharltds. so the important thing to watch here is going to be later this month. the patent office decides whether or not to even review this petition underlying the patents here. that should come by august 26th. banks are basically pricing in more up side than down side

because most folks think the patent office is going to choose to review this petition. 80% of these ipr challenges historically have been taken up by the patent office. folks think it may be different because now it's a hedge fund doing this potentially for financial sort of ideas. and they say 20% up side if it's not taken up by the patent office and 10% to 12% down side if it's not. august 26th. there is a second challenge which will be decided on in september whether to review or not. >> so far you mentioned eight companies have basically been his targets including akorda. what has happened to these stocks since kyle bass has put them in his crosshairs? >> acorda is definitely the hardest hit of the eight. others like celgene are doing pretty well. they've had some m&a activity. akorda because 90 prs of their revenues is tied up in this one drug. >> you look at the quarter they reported july 30th. it was actually a very good second quarter but doesn't matter. now, i submit and i've said this before, i think kyle bass went after the big names to sort of

lump them all together. i think his real targets are names like this. that he could whack. 22% short interest feels like it wants to break 30 bucks. you don't go after celgene, there's no reason, to other than to have them in the pool let's just say to make it look as if you're altruistic. which i don't believe that he is. makes sense? >> yep. totes. >> somewhat. >> thank you for stopping by meg tirrell. >> this is a small company. 1.3 billion market cap. and it would also leave these guys very exposed on a short squeeze. there's bigger risks for these guys going after these guys if they do fail. to the overall biotech space, again, this is the part of the market i think we really should be watching. this along with the nasdaq. because these are the places where the first signs of break are going to run a lot of amateurs. the tourists and investors in these sectors. >> i can't agree with tim more. and that brian's an amateur. but the xbi -- >> i don't think he said that. >> oh he didn't.

so the xbi to me say real problem. rich ross was talking about these up trends. this one broke. this is a broken chart right now. i think this is a thing. it's obviously a lot of small caps. you can go after this thing, short it on rallies. >> you're not -- >> no. actually, the reason i don't really trade? n. biotech thatch, for me i'm not as smart as dan is obviously. i think that's fairly clear. >> obviously. >> so i can't -- i don't have an edge in this sector at all. i trade ibb or xbi technically and to me the reversal today is at least something to say it's notable and maybe we get some kind of sideways action here. >> don't we have regis philbin talking about dan? >> dan knows a lot, doesn't he? >> there you go. >> up next one widely followed investor says we're on the a matter of days away from a recession right here in the u.s. we'll show you exactly what he's looking at. and later one media stock that's bucking the mayhem in the space. we'll tell you what that is and why it's rallying so much. more "fast" straight ahead.

welcome back to "fast money." markets staging a major reversal today with the dow sinking 277 points at its low before ending basically flat. meanwhile the s&p briefly erasing its gains from the year before bouncing back and ending

the day positive. here's what's coming up in the second half of "fast money" with the market in turmoil, dan nathan here explains how you can profit from protection in your portfolio in a very special "options action." plus cisco is moving higher in the after-hours session, the company just rapping up its conference call. weet we'll get to the latest headlines straight from ceo chuck robbins later this hour. we'll start with china, the government stepping up and make waves in the global markets. adam bakhtiar in singapore with the very latest. >> hi melissa. if anything we've learned in the last couple days it's that allowing market forces to determine asset prices can be a fairly dangerous thing and i think the authorities in china got sort of a wake-up call with that yesterday and it was really interesting because the mid-point set in the yuan was set slightly weaker than the previous day's close and that unleashed a wave of selling across all of the asset classes obviously with the chinese yuan which at one point dropped 4% during the trading session in the spot market and that sparked a lot of worries with the authority makers.

and according to authorities familiar with the big state banks that operate for the chinese central bank they said they were instructed 15 minutes before the market closed to step into the market to rein in the selling in the chinese yuan that brought it back all the way to these levels. take a look at what's happening with the non-deliverable forward because that is a looking glass telescope so to speak as to where the yuan might be head be in the next few weeks and months indeed. and you can see here the market is already priced and you could see substantial weakness in the chinese currency versus the u.s. dollar. now of course the big move by the markets and the policy makers and the selling across all the other asset classes and it's interesting because obviously this move is to help shore up the world's second largest economy and accept support the exporting sector but we didn't see anything across any of the china markets. we saw a deep dive across all of these markets, the market and

the, in which is the h share index. we'll be watching very closely to see what exactly the central bank is going to do in setting the mid-point because according to all the experts we spoke to on cnbc yesterday here in asia the very fact they set the mid-point yesterday weaker than the stock market was sort of sending a very negative message to the rest of the investors out there that they were willing to tolerate a more weaker yuan in order to shore up the world's number 2 economy and of course as a result of that we saw big selling across all of the markets in the region here today. sought the traders, the investors, the authorities the regulators are going to be watching the mid-point very closely today. and that happens at quarter past nine in the morning here which is evening your time melissa. back to you in new york. >> adam bakhtiar in singapore for us. thank you, adam. about four hours away from that by the way. china surprise move sending shock waves across the market and one man that has been out front of the global volatility trade raoul paul of the global macro investment also real vision tv has been worried about a slowdown in worldwide growth for some time and has even said a recession could be coming in the u.s. as early as

this year. raoul joins us on the fast line. always great to speak with you. >> hi melissa. >> the u.s. markets basically told us you know, what don't be so afraid of what's going on in china. you say that's not right. what should we be concerned about at this point? >> i think we should be concerned about the knock-on effects. people haven't really digested what this all means and it's been part of the global micro picture i've been discussing with you every time i've appeared on the show about the strength of the dollar the weakness in china, the knockon effects of the commodity market what's happening to global export growth because japan devalues its currency so much. all of these ramifications of the macro world are making themselves felt elsewhere, which is why the markets all around the world are getting dicey. now, the u.s. is the better market and the most plekted from this but it doesn't mean it's entirely protected and you can see how the s&p trades. you start to see people not understanding okay what does this mean for earnings, should i

lower my risk because i don't understand what's going on in the world. and i think that's a very logical response to what's going on because the risk is the knockon effect is a slower u.s. economy and therefore a weaker stock market. obviously i think the rest of the world probably suffers worse than the u.s. would. >> raoul, why don't you connect the dots for us in terms of what is going on in china right now and your belief that the u.s. is headed for a recession sometime this year? what happens in between to what markets and how does it hit us here? >> it's a bit of a story. the first thing that happened was japan devalued its currency against virtually every other currency. that is the world's second largest exporter nation. that upsets the apple cart. all the other asian economy stocks are trying to lower their currency. the u.s. dollar stocks going up and china pegged to the dollar has a very expensive currency. so the chinese currency -- chinese economy starts getting worse because it can't export because its currency's less competitive. so this whole thing starts. china's economy slows.

oil prices fall because demand has fallen and the dollar keeps going up and up and up. and that's creating the issues. and what's happening is as world growth slows u.s. export growth has collapsed as well. so what we're seeing is it's knocking on to everywhere around the world. this is very typical of what happens in vulnerable markets back in the early '80s and the late '90s. >> so which spot should we be looking at first? because obviously we've already seen a collapse in emerging markets, we've seen a collapse in oil prices. how much worse can these things get-k these trades get, or the dax for that matter? you came on the last time talking about how everybody is consensus long this and already we're here in correction territory. >> yes, that's right. so i think you know if i were to say okay where's the next shoe to fall in this global macro picture because these kind of big macro things take maybe 18 months to two years to play out and maybe we're six months into that already. so then i think we need to be

concerned about the u.s. market. hedges are cheap. the vix is cheap. that's not a bad thing, to hedge your risk. just an intelligent thing to dort time being. and i think it's relatively easy to buy bonds with commodity prices falling, global growth slowing, uncertainty everywhere. pretty straightforward easy trade glp but you still see down side raoul for us. you still see down side to oil. we haven't seen the lows for oil in the year the lows for dax and we haven't seen the lows for emerging markets? >> no. as i've said before and i've been saying for some time i think the net results, all of this is a global recession. we don't know how big and how severe but that does mean with the dollar rising that the oil prices still come down to the 20s. i think copper prices can fall from here and stock markets can suffer quite severely if economies get much worse. >> all right. raoul, we've got to leave it there. thanks so much for phoning in. always great to get your analysis. >> thanks very much. >> raoul pal, global macro investor and also real vision tv which is an online platform. >> once again did a great job telling the story. he's also saying it's going to take a long time to play out.

in the short run i think the play is the dollar's oversold, treasury yields are too compressed and they're going higher. january japan, korea, indonesia, those markets got destroyed over two days. this is a trade. ultimately the macro setup he said is absolutely right. whether it's going to be as nasty as he says i don't know but again, it's not going there tomorrow. >> the key to this whole thing is watching the dollar. it all starts with a strong dollar. if you're concerned about anything just look at uup on any given day. you see that going higher then you start to worry. >> coming up another crazy day for the markets with nearly 300-point swing in the dow. we'll explain why it might not be too late to buy protection as raoul had mention ford your portfolio. we'll show you exactly how to do that. plus check out shares of cisco, jumping in the after-hours session 4%. that conference call just wrapping up. we'll hear directly from the new ceo. back after this.

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wow. using unused data for all sorts of uploads. my constituents love... to... watch...me talk. today's leftover data means a brighter future tomorrow america. write that down. right now, get $300 credit for every line you switch to at&t when you buy any iphone for $0 down with an eligible smartphone trade- in. welcome back to "fast money." i'm mary thompson. an update on cisco's conference call just concluded and the company's new ceo chuck robbins striking a confident tone on his first conference call telling investors they can expect him to be straightforward and transparent as he takes over

what he described as an incredible time for the company. >> we've only begun to scratch the surface on how we can take advantage of our scale and relevance in this digital transition and how we can deliver our technology to our customers. the strategic role cisco is playing, that the center of the digital transition today and in the future and that's why i strongly believe cisco's best years are ahead of us. >> now, in the years ahead robbins says the firm's small but growing security business where clients are adopting its subscription-based service will be a focus as will acquisitions that will drive this business and other key elements of the new strategy. as for last quarter's results, highlights include growth in sales of its routers and switchers. these produce products have struggled with competition from software-based viechbltzly. deferred revenue growth jumped a healthy 21%. and in china where cisco's been struggling robbins says it was the best quarter in the past several quarters. melissa, back to you. >> all right. mary thompson, thanks so much. interesting they talked up the security aspect of the business

and also the willingness to make acquisitions to grow specifically this part of the business which will probably ignite rumors once again in the space. >> that's always the case here. it's interesting to hear that china is better. this is one of the big thematic plays in the internet. for people playing the mega caps. they are in services. they are in security. they are in data. and i think that's how you want to play this. the inflection in their earnings, though i don't think comes immediately. to me this is a story that's better and there's no real surprises. >> yeah. which means you're not going to get hurt that bad in this. you're probably not going to make a fortune on it but unusual going to get hurt. you've got a dividend. support. $27 was a big, big number for it. i think you're safe staying in it. if you want juice this probably isn't the place to be. >> today's gut-churning volatility had some investors wishing they had protection. so how exactly do you buy protection on your portfolio? dan's breaking it down. >> it's a really great question. and i get it a lot because people don't exactly know how to use options to protect holdings that they have. they know how to buy puts and calls in the underlying stock but they don't exactly know how

to do it in an index. and when you think about it we've seen almost every other major risk asset move around a lot over the last year or so. commodities, fixed income and currencies. and now we're starting to see volatility and equity indexes. tim mentioned the dax is down 6% in the last couple days. we know what's going on in china. but the s&p 500 as we talked about earlier has been locked in this 4 1/2% range for about seven months here. it sells off at resistance and it gets support down at 2050. so here's the thing. we've gone over the charts here. options can be used tactically to actually help protect your holdings, help you sleep better at night. when you think about it right now, the spy, that tracks the s&p 500. it's trading about 2.08 today. you could look down at that 2050. that's 2.05 in the spy. and the october 2.05 put costs about $4 when the stock was 2.08 today. that's about 2% of the underlying stock price. that $4 in premium is your max risk.

it gives you protection below $201 in the spy and you have unlimited protection below that. between 201 and 205 you would have losses of up to $4. and above 205 you have those $4. and i just want to show you on a chart what aim looking at, why did i choose the 205 mark. this is the level we bounced off today. and if you look at this we have some support down near 200 but there's a massive air pocket down to 1900. so if you're trying to hold on to some of your large cap u.s. multinationals looking at spy options out a few months is one reason to have you sleep at night and have protection on your portfolio. >> for more "options action" check out the full show friday 5:30 p.m. eastern time. coming up next as media companies get hit, lionsgate is bucking that down trend. the stock is up 18% this year. we're talking to vice chairman michael burns about how it's staying on top next. you're watching cnbc. we're first in business worldwide. much more "fast money" straight ahead. here at td ameritrade, they work hard. wow, that was random. random? no it's

all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. we're not rich but we want to be able to enjoy our retirement.

futureadvisor has identified 9 best practices to help you retire sooner and with more money! i was leaving a lot of money on the table. futureadvisor uses award-winning technology to give you investment insights once only available to millionaires. just link your accounts and futureadvisor will show you how you're doing and where to improve. it's like our own team of financial advisors 24-7. we finally have a plan we feel good about. get an instant assessment of your portfolio and a plan to fix it for free at futureadvisor.com. news corp. is out with earnings. cnbc's julia boorstin is live in l.a. with the latest. julia. >> well, melissa, news corp. shares are trading about 4% higher in after-hours trading.

the company's board of directors has declared its first semi-annual cash dividend of 10 cents per share. the company announced it's initiated a strategic review of its struggling digital education segment saying the change in amplified strategy and outlook resulted in reduction in expected future cash flows recording an impairment charge. we're sure to hear plenty of questions about that strategy in the earnings call which is coming up at 6:00 p.m. eastern. the publishing company beat earnings estimates reporting 7 cents per share, two pennies better than expected while news corp.'s revenue of $2.14 billion fell just short of estimates. responsible for that miss seems to be the book publishing division. its revenue came in $45 million lower than expected. though with harper lee's "go set a watchman" setting records we should expect that book to boost the current quarter. we'll be listening for details about that and guidance on the book's i am why pact coming up on the earnings call. >> julia boorstin thank you for that. remember of course i don't need to remind anybody but news corp.

is the older businesses. >> the publishing businesses. >> i'm sorry i'm looking at you when i said, that guy. but i knew you were going to give us a trade. >> it's an expensive stock, close to 30 times forward earnings. the stock has not traded well now since its inception. i say this is a relief rally that you're more inclined to sell into. >> although there's some excitement around the digital side of their business. getting some digital revs. wall street journal revs. this stock's already traded down as guy said from 18 down to 13 1/2. i think you can go neutral to positive here. >> media stocks the entire sector has been hit particularly hard in the latest sell-off that is, except for one name shares of lionsgate up more than 15% on the year. trading just shy of all-time highs but with exposure to china and the shifting media landscape can lionsgate's run continue? michael burns is the chairman and he's with us. welcome. >> thank you for having me

again. >> what seems to be the theme in a lot of the media earnings we've had so far difficult transition zlirks from things like netflix, whether netflix is friend or foe. you actually distribute through netflix with "orange is the new black" as well as some other outlets like broadcast and cable. when you look into the future what sort of mix do you think you're going to have? >> if you characterize them as neither friend or foe i would tell you we love the people at netflix. but i would categorize them as customer. so as we said in our call and jon said over and over again whether it's a skinny bundle or fat bundle or over the top or pay per view we're agnostic. we are providing somebody described this recently as a benevolent arms dealer. that really is who we are from a standpoint of we're selling to all of these different cable operators. it could be that the digital players. it could be the over the top. again, we're selling to every single one of them. >> what do you think landscape

looks like? because you have the ability to be agnostic because you don't own any of the channels. what do you think it's going to like like five or ten years down the line? because obviously this secular change is happening as we're speaking. >> it's the crystal ball question again. we talked about the cord cutting and i think again not to pick on the media but everybody says the sky is falling, the sky is falling. you're talking about less than half of 1% of cord cutters. i think there are going to be some cord cutters. i think they're going to be over time. but i think traditional cable and satellite and telco they're going to be around for a long time. i think they're going to be big bundles and skeiny bundles. i think espn is going to be in skinny bundles and big bundles. i don't think it's going to change dramatically from our standpoint of being able to license content to awful them. >> michael'll, i'm a shareholder and one of the things i've been concerned about is just that the multiples that are being attached to the pure content plays of which you are absolutely that as you just said is particularly high because the

cable companies have been able to pay and have had this revenue stream that may be changing. so in a world war as you say either way these guys are customers. whoever the conduit is to get your content to the public. is there a medium that's changing, that's becoming more exciting for you? because tv production is becoming a place where you guys clearly are putting potentially new tent pole franchise and i know it's an exciting part what you have guys talked about in your first quarter numbers. >> sure. we have 16 new television series going. i talked to john malone today on a couple different matters and we were talking about again the world of bundles and the idea that we are agnostic. i think that television is going to continue to be a driver for us. we've talked about the next few years. it's a billion-dollar a year business. it's run by kevin baggs and sundar storm. they're killing it. we joked the only expense is to get a helicopter for kevin-bags to get a helicopter around l.a. so he can pitch these buyers.

the optionality that our film gives us the idea we can have a world class franchise like "twilight" or "hunger games" or hopefully monopoly we're doing with hasbro or "gods of egypt" or "now you see me," we're doing a sequel on that we've got a ton of potential sequences and franchise for us. >> we mentioned in the introduction your stock has been doing well while other -- >> i hope you don't jinx it for us. >> this is what you said to "variety" on august 7th. when prices come down the assets become more interesting particularly if they're accretive. we're paying attention here. it sounds like you're looking to buy something. >> we're big fans of hanging around the basket and fwhiengz for low multiples. again, my conversation with john today we were talking about that the content guys are the ones that should deserve the bigger multiples in this changing environment. and we think we deserve them. i think actually the delta's going to get bigger. but i do believe there are a few deals out there that we think that are going to be accretive for us but we're not going to overpay. in our history, whether to be artisan or summit or all these

transactions we've done. our shareholders have been very well rewarded for us being patient. >> michael, thanks so much for coming by. nice to see you. >> great to see you. >> michael burns, the vice chairman of lionsgate. >> michael's been coming on the show since we started this in '07. probably the one guest we've had on more than anybody else. it's done well since we started talking about it. in april we talked about the secondary. we stayed if it recaptures 32 it's going higher. it has done that. i don't think it's expensive at 20 times forward earnings. thrace 17% short interest. it's a name we liked forever. tim oensz it. i think it continues to go higher. >> two things. one technically it looks like a breakout above 38. that's got it going for you. anytime somebody tells you their salesperson is so busy they need more help and they need a helicopter, that's a good sign for any type of company no matter what you sell. >> coming up on "mad money" cisco's brand new ceo chuck robbins taking over for john chambers and he's starting out strong. he spoke with jim cramer about where the company's headed now

that he's at the helm. take a listen. >> john was obviously involved and i was involved with him. but what we really want to do is make sure the elements of our portfolio really align with where our customers want us to go, where our partners need us to go where our shareholders would like to see us. and so we'll continue to evolve our portfolio in any way we need, to whether adding things to it or whatever we need to do to align with what our customers expect from us in the future. >> check out the full interview with cisco ceo chuck robbins top of the hour on "mad money." still ahead our traders lay out the most important things they're watching ahead of tomorrow's open. more "fast" straight ahead. investing strategies. my technology can help you choose the right portfolio. monitor it. and automatically rebalance it. all without charging advisory fees, account service fees or commissions. that may be hard to compute. but i'm a computer. so trust me. it computes. say hello at intelligent.schwab.com

triple-digit dwlien, still closing in the. what's hamg? four things that explain the big turnaround. i'll reveal the next. plus cisco fresh off its report! "mad money" is next! and finally, fast but not least, you thought the markets are scary. well, check out this real-life jaws. a mexican researcher released new footage of a great white shark believed to be the largest ever caught on film. the female shark known as deep blue measures 20-plus feet. snickering in the peanut gallery. and weighs a whopping 5,000 pounds. the video has gone viral with 300,000 views within the first 11 hours after it was posted. apparently deep blue ate a hammerhead and it's swimming around in deep blue's stomach.

you can see it like you know -- >> that's not real. >> i'm telling you. >> that looks like it's something out of "jaws" or something. deep blue. >> a hammerhead and -- >> it's in the stomach and it's swimming, trying to be free. the hammerhead in the stomach. >> come on. >> you know that how? i'm just asking. >> i read about it. >> it's on the interweb. >> i saw it with my own eyes. and tomorrow don't forget to tune in to a very special edition of "fast." going out west. in fact, tonight we're heading to beautiful san francisco in the heart of silicon valley with a line-up that you will not want to miss. that is tomorrow. 5:00 eastern time. time for the final trade. got to get out of here. >> watching brazil. it did not rally back today. currency started to rally take a look. >> dan nathan. >> watching cisco. i want to see how enthusiastic investors are as just a precursor for the rest of this space. >> beakers. >> we talked about volatility across asset classes. currencies are where the volatility is. i'm going to be watching the yen tomorrow in particular. when that started to get stronger today the market sold off. then you saw it rally. watch the yen. >> you and dan are sitting right

next to each other on the plane today. >> how much fun is that? we'll hold hands. iwn the russell. does it recapture 121? that's what i'm watching. >> i'm melissa lee. thanks for watching. see you again tomorrow at 5:00 for more 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 and i promise to help you find it. hey i'm jim cramer. my job to entertain, teach and put it in perspective. call or tweet me. never forget what brought you down. never