thank you guys for joining me. that does it for us on "closing bell." "fast money" begins in moments, melissa lee. what's on tap? >> i've got a roomba and i love it, kelly. >> it does a great job with the vacuuming. >> exactly. there's one biotech that was up 72% today's session. we're going to tell you what it is and give you the trade. >> all right. straight over to you guys. >> thanks, guys. "fast money" starts right now. live from the nasdaq marketsite overlooking new york city's times square i'm melissa pleep our traders on the decemberric tim seymour, steve grasso, karen finerman and pete najarian. tonight on "fast" the s&p is doing something it has only done once in the last 50 years and it could lead to a pullback in stocks. we'll tell you what it is and how to protect yourself. plus golden times for the golden arches. a new survey is out and it's pinpointing what could be the next growth area for mcdonald's. we'll tell you whether it could leave the competitors in the dust. but first to our top story. housing stocks soaring today on another dose of bullish data. the home builder etf hitting an eight-year high with many key suppliers popping as well. is there more room to run on the

home front? what other sectors could follow suit? steve grasso, you've been in this trade. at what point do you say maybe these stocks are pricing in a recovery already? >> you could say that with toll brothers. we chatted about this a number of times. toll brothers definitely had that recovery already. but i don't think you can say that about kb holmes. i don't think you can say that about pulte in which i mean both. i think you have a lot more room to run the household formation is interesting. there's a lot of pent-up demand. and i think the back half, the confidence level is at extreme highs that we haven't seen for ten years. i think you're going to see a lot more bullishness. >> how do we think about what a recovery is and what levels these builders should be building at? because maybe we should never have been at the peak when we were at the peak. >> we probably shouldn't have been. we talk about the formation and the new buyer stepping forward. and i think there really is a lead cycle time that is pent up and we'll work through that. ultimately the question is what is there and what is sustainable. we spend so much time talking about how wounded the consumer is. but look at wage growth in real terms, not nominal terms.

2.2 which is the higher end of the range. frankly as we get into think think not only is there demand but the consumer is in a much better position than people think. i look at the valuations and i said this yesterday i look at these guys not relative to their peak valuations but relative to a ten-year average multiple. and these guys are trading 15% to 20%. pulte and lennar to me are the places where you stay and you play and i think these are the guys that are giving you the best margin guidance going forward. >> there's a number of ways you can go. you can go the home builders or something like a home depot, all-time high today, a mohawk which is also 52-week high today. a whirlpool which is up 2 1/2%. >> there's plenty of derivative plays you can go with. the home builders are very difficult. obviously they've had an incredible run. you look at the itb and it continues to break out to the up side. i continue to look toward other areas and that's tjx. did you see those numbers today? looking for 3% growth it was 6%. when you look at what they were able to produce today not just home depot but you look at tjx, ross stores coming out as well. there are derivative plays, home goods at tjx right now

absolutely carrying that company along the way. it's just incredible. i think you can go a lot of different ways right now if you want to be involved in the housing world that's not going to put you really quite in the bind if that housing itself starts to slow down. >> karen? >> i wonder if something like a bed, bath & beyond which often you would think of them together but bed, bath & beyond has been left in the dust when you look at the mohawk and whirlpool and home depot and lowe's. it should participate. i don't know why. it's getting to the level it's sort of worth a look. 12 times earnings. >> so outside of builders. >> back to home depot today, what's the transfer in the lateral move to lowe's? and lowe's, who's badly traded home depot in terms of margins. but look at the margins and you weigh where these guys have been, missing by about 90 bips to these guys. the interpretation you impute upon lowe's is lowe's can still move. lowe's to me has outperformed in the last couple weeks. i think lowe's to me is also a name, though, that has more opportunity and operational leverage in the name. these guys, and we talked about this last night, as dan pointed

out there are names that have traded so well and been so resilient and been so -- until you disappoint me i'm throwing more money and the valuations aren't terribly cheap relative to themselves. but they keep working. and again, i think if 24 trend and this cycle is intact -- >> they're growing with the multiple. that's what we're seeing out of home depot. i think you can say lowe's if you put up those charts right now, tim, margins or not, lowe's is right there with home depot every single step of the way. year over year looking at the growth in the earnings. look at the growth in the revenues. >> i totally agree with you. the margins are good. they've been trailing on the comps. home depot's numbers speak very well for lowe's. it should have traded better today. >> what happened it's auto trade in all this? once upon a time you used to think of -- >> correlations. >> correlations. exactly. in the pickup truck indicator. people buy pickup trucks. look at gm and ford they're laggards for the year. >> go ahead. you go first. >> the autos aren't a u.s. story. this is a u.s. housing story and you've had what's weighed on some of the autos -- >> exposure overseas.

>> you've had gm and ford bounce back and forth. ford was the outperformer, then gm caught, it now gm is down 9% year to date. ford's down 4 and change percent. but i don't think that's where you're going to see the real beta chase catch-up trade. i think if the overall market comes back in, which i do believe it's challenged going forward, i think housing on a relative base kis outperform. i don't think anyone is going to be spared. i think all stocks come, in housing comes in less. >> trucks have carried gm. that hasn't been the laggard. it's been the autos themselves. >> with gas coming in, crude coming down. there's been pent-up demand for those utility trucks. >> got news on yum which is moving in the after-hours session. dom chu at headquarters. >> yum brands is up about 2% on 143,000 shares worth of volume. this after yum brands announces a ceo succession plan for its china division. the guy who's running the division right now, sam soo, the

chairman and ceo of yum china is going to step down as an adviser. the man who will be taking his place is a man named mickey pent or muktesh pent, who's currently ceo of the kfc division. he now will expand his role and take over basically the entire china operation. of course that's a big job because the majority of yum's sales come from that china greater asia region. a big move on the executive front. that's yum brands. we're going to stick on the china theme as well with earnings stories here. online content and media for cena. the q2 earnings per share come in better than estimates as do shares as well. cena shares you can see currently right now up slightly on relatively light volume. about 2% on 53,000 shares. also weibo, the social media company, kind of like the twitter of china if you will, reporting earnings and sales also that beat analyst estimates. those sales up by about 5%. but again on very light volume, just about 16,000 shares have traded so far.

three different china stories. two of them earnings related and one of them ceo issue related if you will. those three names all moving in the after-hours session, melissa. back over to you guys. >> dom chu, thanks for that. let's first deal with the china internet story because with chinese stocks down 6.2% we did see some falloff on some of the sector. >> cena and weibo have been in trouble for years. weibo since that ipo, i think the real question is both competition, the barriers tone tribut also are they competing with tensen, alibaba and on some level they're not. on social the jury's still out. i'm long both of these names. i've been trading them. i think at this level there's reasonable value but again, the whole china story right now is weighing on these guys and these guys are victims of a local chinese market that's selling off whether it's warranted or not. >> do we like yum better now that it's got a sixx plan? >> i think you have to. you want some of these questions answered and i think this does. obviously we don't know probably enough about this gentleman right now to know whether he's

exactly the right guy. but you look at forward earnings it trades 20 times. much less than what you're looking at presently. obviously china's been something that's been weighing on this stock for a very long time. stocks bounced off of certain levels nicely. i don't think at this point in time it's that scary. not nearly as scary as it was several months ago. >> yum has been the prout performer. i looked at it and said there's going to be atime when you want to be a buyer of mcdonald's a seller of yum. and the last month or so you've seen yum back off 14%. you've seen mcdonald's rally about 6%. so i think at this point people are changing and not willing to give it's benefit of the doubt and say you know, what that outperformance, maybe it's time to gamble on mcdonald's again. >> coming up, the breakfastarians have spoken, chosen their top restaurant for eating breakfast over and over again. it could be good news for one recent outperformer. did you catch the biotech stock that went up 72% today? if you missed it meg tirrell's

got the report. the s&p is doing something it's only done five times since 1928. it could lead to a pullback in stocks. we'll tell you what that is when "fast money" returns. we live in a world of mobile technology, but it is not the device that is mobile, it is you. real madrid have about 450 million fans. we're trying to give them all the feeling of being at the stadium. the microsoft cloud gives us the scalability to communicate exactly the content that people want to see. it will help people connect to their passion of living real madrid.

mcdonald's kicking off our top trades tonight. the golden arches now have something to cheer about. the company ranking as the top choice for so-called breakfastarians, or people who crave breakfast food at any hour of the day. this according to a new survey out today. 41% of consumers who eat breakfast twice a day consider mcdonald's for their next meal. subway was second choice with 34%. ihop 32%. burger king 27%. starbucks 26%. we should note mcdonald's hit a 13-month high today. tim. >> and there's a lot of reasons to be reasonably if not very excited about second half catalysts. one is all day breakfast. and they're doing this testing and they're getting phenomenal results. i know some people that own mcdonald's franchises, people that have seen the changes since steve easterbrook came on and are excited the rapid growth not just of the stock price but really what they're seeing inside the company. all-day breakfast actually is a big deal. and in terms of comps i think the bar is re low in the second

half. we talked about the kiosk, the ability to create your own taste. we talked about also just emphasizing value and emphasizing more creativity. i think mcdonald's is going to continue to go higher. it's got to get through 101 technically. i actually bought a little more today. it's a case where the stock has a lot of good news behind it but we haven't seen it yet in the comps. when you do the stock's going to go a lot higher. >> breakfast is the only time that grew in terms of restaurant day parts in 2014. up 4% year ending may 2015. if she could get a little of that juice that could help. >> and easterbrook, this is a guy who's taken over and already starting to move things along and one of those things is obviously breakfast, getting these breakfastatarians or whatever they're called in and the folks that want to eat it all day long. when you really look at this company right now what they still need to do is all right, let's start working on that menu as well, reduce what we're offering, and that's going to help out the franchisees as well. i've talked to some of these guys as well. they talk about it all the time, what it really takes to be able to offer all the menu items that

they've got right now. that's a huge problem, mel, and that's something that they've got to address -- >> it's also a very small amount of their menu choices and a huge amount of profit comes from that drive-thru. so they've got it make that more efficient and shrink that menu and once they do that that's an extreme exponential gain in the stock. >> from food to luxury retail, gains for coach. jefferies adding the stock toyotas franchise picks list upgragd its rating from hold to buy, raising the price target to 50 from 45. jefferies saying coach's turnaround efforts are finally taking hold but that the market has yet to appreciate. also conducting a handbag survey which found coach continued to be the leader with 32% of respondents selecting it as their "top favorite handbag brand." karen. >> so that's good for coach. $50 price target is pretty high. from hire. that may be the case. i hope that's the case. actually, i'd like to see strength in the handbag sector. i bought more kors today, which i think was down. i'm not even exactly sure why.

i think it was a survey about what women would choose as a brand. i think at this valuation looking at coach, looking at kors it's not even close to me. so i bought more kors today. >> next up facebook shares rising after piper jaffray's gene munster one of facebook's biggest bulls on the street said the social media giant is beefing up its staff at its virtual reality subsidiary oculus. gene, always good to see you. >> hello. >> your methodology is interesting. you went on to linkedin. and you literally tagged a number of people. >> i was scrubbing linkedin profiles. it's not a perfect science because some people work on virtual reality, augmented reality for trying to keep things undercover as they want, disclose that. but we figure that's kind of a level playing field. sxumtly facebook has 350 to 400 people who are working on virtual reality. the next biggest company is htc with about 200 to 250.

they've got a nice lead. and more importantly, this is a huge theme that's going to be coming down the pipe over the next ten years. this whole virtual and augmented reality. and the amount of resources that facebook is putting into it today. >> you actually think this thing could go preorder starting what? holiday season? or so. >> exactly. those are two near-term catalysts. 24 connect conference, they have their developer conference is important because one of the concerns for investors is what are we going to use virtual reality for? and these developer conferences end up shedding some light on that. and then separately all oculus has said is it's going to be the first part of 2016 when it comes out, their rift, which is the name of the consumer product. but it's likely going to be in the month of january based on some feedback we've heard from companies close to oculus. so the combination of those two

is there are some night cat luss about the theme over the next six months. >> do you have this in your model yet, gene? >> we don't. this is about the multiple going up and investors starting to understand that this is not 3-d take 2, this is a real theme, and we think the shares are going to appreciate based on a higher multiple. >> gene, we're going to leave it there. thank you. >> thank you. >> gene munster, piper jaffray, bullish on facebook and specifically virtual reality here. >> i think they owned and operated whole components of their business whether it's what's app, messenger, these are things people are very excited about. but make no mistake the core of facebook is leveraging a billion and a half users. jpmorgan had a note out today talking about how they now have 24% of the internet time on mobile. and 19% on the desktops. the stock trades great. if you look at the weakness after the numbers it wasn't much and if you look at the weakness around the overall market weakness it regained that 95 level, regained the 20. i think the stock's going higher. >> i think you've just got to

like the pipeline in which facebook continues to work and i think zuckerberg continues to lay out in front of each and every one of us every day. they're not growing only mobile but putting themselves out there. that huge acquisition of what's app, trying to figure out ways to get more monetization of everything they're doing. this is the next step. that's out in the future. gene munster very aggressive. i think i aw his target at 146. pretty aggressive. >> but interesting it's not in the model yet. if they're going take preorders -- might have to take orders in 2016. >> raise that thing up a little. >> zift you're watching cnbc, first in business worldwide. in the meantime here's what else is coming up on "fast." >> a new drug that's being touted as the female viagra has some traders in a tizzy. we'll tell you what the name is

and how it can excite your portfolio. plus, the s&p is doing something it hasn't done since this guy got busted in 1995, and it's got some traders downright nervous. we'll tell you what it is that has some folks running for the exits. all that and more ahead on "fast money." but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan.

[ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from.

we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is.

we are expecting a decision from the fda today on female viagra. is the third time the charm in cnbc's meg tirrell's got the details. meg. >> we're waiting for the fda to come out with its decision really any minute now. this is of course a drug made by a private company, sprout pharmaceuticals, called adi. we're calling it's the female viagra though that's a bit of a misnomer because it doesn't work quite in the same way. it works on the brain. this drug was rejected twice before by the fda but received a positive recommendation from an fda outside panel of advisers back in june. some folks think maybe the third time maybe the charm. there are some issues with this drug, mainlit efficacy and safety profile of the drug. the safety, there are a few concerns, a little bit of dizziness, low blood pressure and fainting associated with the drug which can get worse if people take alcohol along with it. on the efficacy standpoint some

people wonder if it's doing enough compared to placebo to warrant those safety side effects. that's kind of what the fda's looking at right now. as for the market for this drug if you look at drugs for erectile dysfunction like pfizer's viagra sxeli lilly's cialis those are billions of dollars a year. folks don't know how big this could be given the safety efficacy of the drug but the company estimates about 1 in 10 women could suffer from this disorder. so potentially a big market but we have yet to see whether the fda will approve, it mel. >> the key thing here is the difference between viagra and this particular drug is this drug you have to take continuously whereas viagra you can take it for the occasion, let's say. >> that's exactly right. you take this drug every night at bedtime for as long as you, you know, want to be trying to solve this problem. whereas viagra as you mentioned it's really just one shot whenever you need it. >> i've got to ask you about this other biotech up 72%. blood clotting disorder drug. omaris. >> this is a company that if the

drug proceeds successfully through trials and gets on the market could compete with alexion's saleris. this is focusing on one of those ultra rare diseases call ahus. it gave an update on a study of just three pabts with that disease. the company saying it's going to move into third phase trial based on that. potentially if they're successful they could be competing with saleris which right now doesn't have any competition with this disease. >> dwhu think the fate of the company is? through yesterday's close the stock was down 31% and today it's up 72%. it's really binary. do theft money to bring this drug to the market? does if become now a takeout candidate? >> i think it absolutely has to be. when you look at what big pharma companies are looking to buy and big biotech companies are looking to buy, rare diseases is consistently on the top of the list. we've seen these big deals before, alexion doing some buying itself. it's definitely a takeover target. as to whether they need to get a

partner, that's yet to be seen. that could be something we see as well rather than a full-on takeout. >> meg, thank you. >> thank you. >> meg tirrell, our biotech reporter from the nyse. >> it's kind of amazing that a study with three people in it, people extrapolate that to a potentially x billion dollar, that is kind of hard to believe. >> it's a bit of a reach. i think people are getting aggressive again, mel and part of it's because there's been so much about these biotechs and what the potential is there. i think the best way to play it continues to be through the big pharma companies they're looking to expand or some of these biotech companies that continue to need to fit the pipeline. bristol-myers one of these names that continues to work more toward being a biotech than a bigga. >> or iaa. ibb. it rolled over by 8%. i think you have to use the 100-day moving average. 365 stop. if you get in at these levels. because if we start to look at the breadth of the market shrinking this is one of those sectors that could probably be

under a lot of assault. >> back to pfizer and viagra. this is such a great franchise and if you look at the pipeline these guys have, just the breakout of the company. they're a catalyst for pfizer. it trades probably 20% cheap to the u.s. pharma peers. what's working for these guys is clearly their current and very clear pipe sxlooin a very good dividend yield. i think you can stay in this one and you have some value that i sector where i don't think there is a lot. >> up next the one space that broadly underperformed the rest of the market today. a look at some of the hardest-hit names within the semiconductor trade next. and later, something strange and unsettling is happening in the world of media. we'll tell you what it is in a special report. much more "fast money" straight ahead. at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.

welcome back to fms. markets ending the day modestly lower but holding up well compared to the huge drop in chinese stocks we saw overnight. and it's truly a tale of two retailers as home depot is a big winner on the dow. walmart ending the day as the biggest loser. here's what's coming up in the second half of "fast money." the smart money has a new target. beaten-down ipos. we'll tell you the names the biggest heavyweights are snatching up. that's later. plus bringing the drama. one ceo's tweet started to sound a little too much like some housewives we know. a new "fast money" game here.

ceo or housewife? that's coming up later this hour. but first let's turn our attention to the markets because something very unusual is happening right now with stocks. if the s&p 500 were to finish the year at its current level it would mark the first time since 1995 that the index went a full year without having a 5% pullback. is this a good or bad thing for stocks? mkm partners' chief market technician. he wrote about this anomaly in a note this morning. jonathan, what's the verticdict? >> we think it's near-term not a good thing. it's the first time since 1995 that we would go through the whole year without a 5% pullback. but really what's more rare is that we've only gotten one year since 1958 without that. so really the last 50 years it would be pretty rare. we think that suggests we do get the 5% pullback which suggests we have further weakness to go in the near term. one of the things that really gifsz us concern here is when we look at a measure of volatility. we all know the vix is really

low. that's one way to look at it. another way to look at it is the bollinger bands. this is basically telling us how wide or narrow the trading range has been. we can see here the weekly bollinger bands are about as low as they've been in 20 years, since 1994. in fact this level has only been seen two other times in history. the first was 1966 which was of course the end of both a cyclical and secular bear market. led to a 20-plus percent pullback. and 1994 which saw some volatility into 1994. we think this low range in the bollinger bands suggests decently outsized move to the down side. now, if we look a little closer what are we looking at here on the s&p 500 daily chart? we all know this well defined trading range. 2140 support. 2130 resistance. the bulls have been waiting for 2130 to break out to the up side but it hasn't happened yet wp and one of the reasons it gives us some concern is this rising 200-day moving average. you can see we keep churning on it, testing more and more times.

it's not giving us the springboard it had given us previously. it's a little bit near-term weakness. even a 5% pullback which is so common gets you to around 2020. not that big a deal in the scheme of things but we think that's probably going to happen sooner than later. >> what takes you to 2020? which sectors? >> if you think about the leading four sectors they make up about 65% of the market. that's health care, discretionary, financials and tech. so we've started to see subsectors within those fall apart. semiconductors down 15%. steve mentioned biotech down 8%. i think you're going to start to see more and more of the subsectors within those kind of take us down and that's what we'll be looking for in the next month. >> jonathan, thank you. jonathan krimski, mkm. what are the levels you're watching? >> 2077 jonathan alluded to. we've tested it, bounced off it but ease said not the same punch we've had as a springboard. i think ultimately we do fatal at 2900-day moving average. and i think everybody's looking for a 5% pullback.

i think you're going to get a 10% pullback. if you're going to get a pullback. because it's never what everyone expects it to be. i would think a lot of this market runs out of gas. >> how are you positioned, karen? are you hedged? >> we're always hedged. i would say we're sort of average right now. the volatility index on the i guess lowish, given what seems like a more volatile market than the s&p has shown for the year. it feels like there's a lot more going on. but i know i'm not going to be able to pick a bottom. so i'm not going to try. >> jonathan mentioned semiconductors. that is today's buzz kills. in fact the stocks etf hitting its lowest level of the year and that's thanks in part to bank of america, merrill lynch downgrade of micron and san dissxk some others. >> i was looking at sandisk today and that chart. it's just above some of the levels where we've seen the low end for sandisk and obviously a lot of this is really tied in to china. i think the concerns over china are really starting to get played. we've seen it with am but with

the chips specifically the last couple weeks. they have been cratering. i think if san disk gets to the low 50s it's a great opportunity. that would be the opportune time. not yet but if we get to those levels then absolutely. >> wife weighed in with my own money in micron. every time we get on micron, if you get a chance to buy below $30 it's a home run. 25, 20, 18. and now i'm benched. so now for me i wish i had bought nvidia but i'm staying long micron because i think historically even though they were long on d ram prices and dram can incrementally move a little lower. i think i'm in good shape, good entry for micron but nvidia, what a home run story on this stock. >> to me just quickly it's intel. and these guys, again, the stock has been struggling around this $28, $29 level. it's been hold around this 28.90, $29 level. technically it looks like it's holding ground, but there's nothing in these guys' performance that tells you they have catalysts to the up side in

the second half. valuation is interesting. the dividend yield is interesting. the whole category is oversold. >> just seasonality? >> exactly. and you don't see anything in terms of improving margins, anything in the pipeline. right now you have to go sideways. >> still ahead, hot ipos not looking so hot anymore. but the smart money's looking up. >> plus ceo versus ceo. the heads of sprint and t-mobile getting into a nasty twitter fight today but which stock is really the better bet? we've got the details after the break. much more "fast" straight ahead.

he's been beating up on our employees for way too long. that's over. right? we're back at winning customers. and we're just not going to let anybody continue to insult sprint. sprint is doing well. sprint is in the path to recovery and we just don't like it when somebody insults sprint. and i guess somebody like john ledgier we've got to talk to him in the same language, language he understands and he uses pretty well. >> marcelo claure on "squawk box" taking on ceo john ledger's competitive tact ikds against the company. ledger didn't take it laying down obviously, immediately took to twitter as he's known to do with this little gem. >> i get you're proud of this

b.s. antiquated report but you still came in fourth. the battle continues sprint versus t-mobile. what's the trade? >> it seems to be working on john legere's side because the stock is up 66% year to date. eventually i do believe they'll get a deal done, there will be some m&a and that. i don't know what that price will be but i believe it's probably higher than last sale on t-mobile. sprint to their credit the stock is up 17% pretty quickly year to date. so he's doing something right. i think this whole game works for both of them and it's at the net loss of a verizon or at&t. >> just yesterday we were talk about sprint's iphone forever plan. >> it's extremely aggressive. but the issue with sprint in addition to possibly cash flow at some point but it's really a series of very strange moves. letting go of a very long-tenured cfo off third-party balance sheet financing, there's a lot of things investors just don't entirely understand why or why now. and i think it's one of the reasons why the stock has had a nice pop.

heavy short interest. but t-mobile to me clearly on fundamentals. >> absolutely. you're always looking for growth. when you look at what they've been able to do and john legere's been able to do that's@stock's reacted the way it has into the 40s. maybe it gets into the 50s at some point. >> absolutely. >> just based on the growth they've been able to achieve and about every factor they're looking right now in terms of every revenue you look for. >> legere's colorful tweets got us curious. we checked out his twitter timeline and what we found were fweets that made him sound more like a reality tv star than a telecom ceo. that gave us the idea for a new game i call -- >> love it. >> i don't like you. i don't trust you. and i think you're a snake. >> "ceo or real housewife?" is it a tweet from a ceo or from a member of the cast of the real housewives? we're going to put up a tweet. the traders have to decide whether they think it's from t-mobile's ceo john legere or one of the real housewives. it could be any city. first one.

omg. running in 92 degree humid weather and using periscope was a dumb idea, smiley face. >> legere? running with bethenny frankel. >> it's either or. >> legere. >> it was legere. >> and it was 92 and humid today. >> and he's got a picture there to prove it. next up here, "i go with my gut and work hard but i know how to gel ga delegate, execute. i'm organized and know how to chill." >> i'm going to go legere again. >> i'm going housewives. >> that was bethenny. >> almost going out of her way to talk about how she's got it. the whole management style down. which means she doesn't. >> next one. a laptop screen that lets you work in the sun. i could have used this on vacation a couple weeks ago. hashtag always on. >> come on. that's easy. >> that's got to be a housewife. >> no, legere.

>> i think it's a housewife. >> legere's always on. >> legere. >> isn't it problematic to anyone else that legere is constantly doing this? >> shooting from the hip? >> is it problematic that it's a tough guessing game? >> here's the last one. to the people by the pool filming me, it's creepy. just come say hi. >> guy adami. >> anyone? >> housewife. >> got to be housewives. >> it wos a housewife. and it was a housewife of beverly hills. brandi glanville. >> come on. tell me she finds it creepy. she loves it. if they weren't trying to take her picture, she'd probably be very upset. >> but having a personality like legere where we can't determine whether or not it's a tweet from a housewife or a ceo is that in and of itself disturbing to you or is that part of his appeal as ceo? >> i think it's probably something almost by design. i'm hoping anyway, that it's partially by design. this is just gathering some of that momentum. >> if it was a negative, what would the stock be up?

70% in it's up 56%. it's obviously not hurting the name. right now he still has -- >> the brand is seen as a bit of an outlier. they have to compete. it fits the brand. i'm a t-mobile subscriber, by the way. >> i like bethenny as a ceo. >> yes. >> skinny girl. >> ipos getting hit over the last three months but the smart money still has their eye on a few favorites among the beaten down names. cnbc's dom chu has all the details. hi, dom. >> can i just say first of all right now that that was just about the best segment i think i've seen in quite some -- i'm just saying i know that i'm killing time here but all of us in the newsroom that are still here were all trying to figure out whether or not it was a housewife or -- >> it's a tough game. it's shockingly difficult. >> some of them we got wrong. back to business. i'm sorry about that, guys. but anyway, like i said, it's tough for these ipos, some of these high-profile names like shake shack, el pollo loco, etsy, all down double digits in just three months as the rest of the market has held up rather

steadily. rather. but some hae hedge funds are seeing some opportunities in these beaten-up recent ipos i guess you want to call them there and that they're scooping them up amid this kind of selling spree so that the journalists over at cnbc pro took a look at symmetric i.o., a data base of hedge funds. they looked through regulatory findings and found that fitbit was the most favored brand new stock of some of these hedge funds according to filings we got at end of last week. more than 30 hedge funds own shares of the exercise wearable maker and some of the big names are lanexa management, blue ridge capital, bennett lawrence. it's a whole other story here when it comes to etsy with only 10 sticking with this stock. you've got names like tiger global, also element capital and blue ridge capital, buying in as of the last round of filings. still the online seller of home goods is currently trading below its ipo price. so just part of this story.

interestingly enough, which hedge funds are going in and out? symmetric io a big data base for that. for more on the story subscribers can go to cnbc.com/pro. an interesting look at trends. melissa, we always want to point this out. some of these filings data are 45 days old. >> dom chu. who likes what in terms of the hedge funds scooping up stuff? >> fitbit. i'm still long. obviously you have this big pop. ran out of a little bit of momentum. but i still believe they are the gopro. i still believe they are the apple iphone. you are running into a lot of resistance here in the chart. it's a very short-term chart. you're going to see a lot of guys liquidate if we get back to the high 40 levels. >> cord cutting catching fire this summer but could it be worse than investors think? special report after the break. plus target reporting tomorrow. we've got the three most important things the street is watching. you're watching cnbc, first in business worldwide. i'm here at the td ameritrade trader offices.

ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. disney falling on a downgrade from wells fargo. this comes on the heels of even more bad news for the cable company. cnbc's julia boorstin's got the details. >> a tough summer for tv content.

summer's usually when cable channels see a surge in viewing because it's when the broadcast networks put their biggest shows on hiatus. but this summer it's a different story. in july 21 of the top 30 most watched cable channels primetime ratings suffered declines according to nielsen. tnt, bravo and mtv's ratings all declining more than 20% last month. people are spending a whole lot of time bingeing on netflix which is trading around an all-time high after reporting better than expected subscriber growth to 65 million streaming members worldwide. people are also streaming more amazon and hulu, both of which are ramping up their investment in original programming. consumers with all these new digital options are going for lower cost skinny paid tv bundles by bob iger recently said are starting to eat into espn's numbers and they're also starting in growing numbers to cut the cord. pay tv providers lost over half a million video subscribers in the second quarter.

more than 200,000 more than they lost in the year ago quarter. with at&t's directv loss accelerating to 133,000 u.s. subscribers in the quarter, cnbc's parent comcast's losses are shrinking but the company still lost nearly 70,000 video subscribers in the second quarter of this year. now, shrinking viewers is also impacting advertising dollars. fewer eyeballs and fewer people are watching live. plus there are more ways to target consumers with video ads online with the likes of youtube and facebook. so marketers have more reason than ever to reevaluate how they're spending their money. melissa? >> julia, thank you. julia boorstin. what is the trade at this point? this stat is very bad for the space. >> that favors guys like netflix and people that control the conduit. but back to disney i just think people have tried to figure the

value of -- espn for example has 25% of -- what does that mean in terms of cord cutting and the streets messed with their numbers? i think we don't know the impact of that. we've said many times it's all about the franchise, it's all about the diversification, consumer products themes, studio. you've got it. >> it's still not in the value sphere overall. it makes me nervous. espn's great, great franchise, the part that is so valuable is a little disconcerting to me. >> retail earnings out this week. target expected to report tomorrow in fact before the bell. we caught one liz dunn to find out the three biggest things she'll be watching for in target. take a listen. >> it's liz dunn, founder and ceo of talmadge advisers for cnbc "fast money's" earnings

edge. target is expected to report earnings tomorrow and there are three things we're looking for. first management shake-ups. there have been some significant departures and additions to the management team. we're looking for how these realignments of responsibilities support the long-term strategy. second, sales trends. last quarter digital categories really supported the sales trend. we're hoping that continues. and third, guidance. target is facing much more difficult comparisons going forward. and so we'll be looking at how that factors into guidance. expect the stock to be up on the day. once again it's liz dunn for "fast money" earnings edge. >> check out this one-year chart of target outperforming its competitor walmart. is target the better buy ahead of earnings? this is almost like a would you rather. >> at this point i think you have to go walmart. >> really? >> target has been the outperformer. target's up roughly 6% year to date but it is losing momentum. i followed a lot of guys in the retail space and they're saying their channel checks have pointed to a slowdown in momentum and sales.

so i think at this point you go with walmart. >> i tend to agree with that. in terms of target we're now at a place where we need to see the next leg. after the ceo has stepped in and done some remarkable things to stem the tide of negative sentiment and operation arnlgin impact. i just believe warmt is a victim of how big and massive they are not just in terms their balance sheet but because of the expectations these guys should be doing more in terms of their online business and growing their margins and at a time when they can't pick up the u.s. consumer and trying to figure out why they're not breaking to the other side. relative value it clearly favors walmart at this point. >> i think the turnover's going to take much too long. i'd still go with target and the reason i say that is i love the management, i love what they're doing. >> so much better than expected u.s. same-store sales. we saw a pickup in store traffic for the united states. they are investing. that's why they took their guidance. >> that's going to take some

time. >> i think the interesting thing about target is when you look at what percentage of their business is in apparel they'd better be choosing correctly. we've seen what happened with macy's, we've seen it with others, so they'd better be correct with that. that's really going to be the pushing area for whether or not they can beat and guide higher or not. >> walmart. just on valuation. and they reported today. >> options market is keeping a close eye on target in fact. mike kuo, what kind of options action are you seeing? >> the options i think are going to go with pete on this one because the options were certainly a lot more bullish in target where we saw six times the average daily call volume. one of the notable trades that we saw was a purchase of 3,500 of the september 82 1/2 calls for about $1.120. so that's making a bullish bet that target would be up about 5% by september expiration, which would still be below the 52-week high. it is trading at about two turns more than walmart but i think the options markets still like

target over walmart today. >> all right, mike. thanks for nap for more "options action" check out the full show 5:30 p.m. eastern time on friday. coming up on "mad money" cramer's got a triple threat of exclusives. the ceo of first solar on the impact. then skyworks ceo talks china. plus the ceo of hain celestial on natural and organic food. all this and much more next month on "mad money." what the traders are watching tomorrow. more "fast" straight ahead. three huge exclusives. from alternative energy to organic foods. i've got the ceos of first solar, skyworks solutions, and hain celestial. "mad money" is next. a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger.

that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm, they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.

♪ running on empty ♪ running on ♪ running wild and finally, fast but not least, move over forrest gump. google's boston dynamics' humanoid robot just took its first steps in the woods in this viral video. the robot named atlas struggling to stay upright but managing to run on the forest path without falling. of course he's running on cords, not running on empty. >> a little unsteady somehow. >> he's tethered. >> something out of like "running man."

it's a little weird. >> i think it's cool. >> okay. >> anyway. >> nice jackson browne, too. >> time for the final trade. what are you guys watching tomorrow? >> i'm watching brent. i like the price action in oil. when everyone is this bearish i start to become a little bullish. we saw u.s. production, we've got numbers, it's starting to come back. perfect storm in july. watching brands, watching the turn i think we're stabilizing. >> mr. 386. >> we're looking at these technical levels. so the s&p cash you see the 50 and 100-day collapsing on each other. we closed right between the two of them. 2096. so you want to watch those two levels but i think that's not the most important level. the 200-day moving average is the most important level. 2077. look for another test sooner rather than later. >> karen finerman. >> watching confirmation of the housing strength. we've got lowe's tomorrow on the heels of home depot. >> i think it's interesting because of the correlation to the employment numbers. it makes me think the fed has got to raise in september. good for banks. >> pete. >> 386 brings up the technicals.

i'll also add health care and financials. that has been a huge part of the market and the stability of the market both sitting really close to their 58 50-day moving averages. we break that we've got some issues. >> i'm melissa lee. thanks for watching. see ♪ 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. "mad money" starts now. hey i'm cramer. welcome to "mad money." welcome to cramerica, other people want to make friends i'm just trying to make you money. my job to not only entertain, but to teach, and coach and put in contexas. call me. or tweet me. @jimcramer. this market has a goose. allbeit not a particularly golden one. but if the goose