p.m. eastern. we'll discuss whether this huge rally is an all-clear sign for stocks. join me, jim cramer, and david faber at 7:00 live on cnbc. that does it for us on "closing bell." let's send it out to the gang over there at "fast money." melissa lee. straight over to you guys. >> thank you, kelly. "fast money" starts right now. live from the nasdaq marketsite i'm melissa lee. breaking news tonight. stocks surging into the close ending just about at the highs of the session. rebounding from six consecutive days of declines. both the dow and the s&p posting their biggest percentage gains in more than four years. the dow ending the day up 619 points. so tonight we ask a very simple question. did we just get the all-clear to get back into stocks? guy adami, what do you say? >> i wasn't here last night. and if i had been here last night i would have said yesterday's price action was the worst of the last two weeks and there's a good probability that today we blow through the 1820 level on the down side. i would have been 100% wrong. with that said, is it enough? was the move down to 1845-ish

enough to make a double bottom off the october low? i think if we can close above steve grasso's level of 1970 i think he's been talking about that for a while. then maybe we have a shot. personally i don't think it's over by any stretch. we've got volatility for a while. close above 1970 for a few days i'll re-examine. >> we got a correction. but does that matter, the rapidity of the decline? >> no. i think it matters why we had the decline. that goes back to my view that we have a slowing global economy. do we have the all-clear to get back in stocks? maybe for the very, very short term. in fact, i'm rooting for it. so i can have some nice prices to short some of these other markets once again. because to me any rally's going to be what we call a bull trab. it may not happen for several months. b.k. could look a little silly saying that, but in the short run you're probably all right getting back for a rally but in the long run be very careful of this market. >> yesterday we sat on this desk lamenting the action, the price action that we saw, and today

was a mirror image. doesn't that make today's action extremely good? >> sure. i guess you could say that. but i think it was more of a relief rally. and we kept saying about that sell-off that happened late in the day, i don't think wall street was going to allow that to happen multiple days in a row where you saw that sell-off at 3:30 heading into 4:00. if you you look at price action off of the 2134 top, drive that down to 1867, if i was at the smartboard i'd show you the fib retracements. the first fib level to bounce is 1930. the second one 1970. those are the levels that we have to be caught between. if we continue to close above them, you can dabble back in the market. >> it was interesting too because we almost finished above the high of yesterday, which would have been a very bullish signal. the intraday was 1948 i think yesterday. the fundamental side of what happened today is also kind of interesting. we came in today. the schlumberger deal for cameron is very important because i think even in beat up sectors it shows at a point

assets become cheap enough where you want to buy them. this is one of the best balance sheets in that space, certainly one of the best companies in the oil services space. so that was very positive. the fact the fed came out today and at least one fed governor who said you know, look, i think we could possibly wait. and that's something that at least if you think the market has anxiety over the fed i think the market would rather see the fed express that we're pretty comfortable with the data. i think the data over the last two weeks has been fantastic. durable goods, consumer confidence, everything we've seen in the housing markets gives the fed enough room to go. that to me is ultimately positive for the market. is it safe to get back into stocks? should you have jumped out a few days ago? the price action's been so dangerous that i think we've been saying i'm not sure you're supposed to do anything. you're supposed to simplify. you can't change your portfolio in one day. >> that's an excellent point. i know on this desk we all said when the market was down that much the worst thing you can do is sell. so hopefully you took that advice, you didn't sell, here you are now. if you want to lighten up and you have some profits, nothing wrong with that. but when panic comes, do not sell. i actually have not done much.

i've kind of sat on my hands because this market is just way too volatile for me to get my hands on. >> the most unhealthy thing about this market has been the names that were overcrowded that everyone complained about that the breadth was so terrible, that was the names that people got back in. they didn't buy the laggards. and today seaburg and i were hatting offline and he had mentioned that the shorted stocks, those stocks underperformed the overall market. people jumped back into the netflix, back into the amazons. they didn't buy the energy names. they didn't really -- well, obviously, outside of the deal. >> but the energy names were still -- they're up 3 1/2% on the xle. >> but the most shorted names in energy still underperformed the names that were -- >> can you draw that conclusion when you take a look at energy? take a look at the semiconductor index for example. and i might argue that would be an area people were skeptical about. that was a 5%. >> i bought some emerging markets earlier today. there's a lot of stuff that on a three-day chart put in a bottom on monday at the lows and have slowly incrementally built higher 37 also volume flushes. e.n. had four to five times the

total volume on monday. r sichlts, relative strength indicators, measures of how oversold a market is, is back to levels we haven't seen since the asia crisis. sow get to a point where some of these assets and the most beaten up i think have actually put in constructive charts from the bottom. >> you were buying eem? >> i bought some eem today. and be clear, i'm going to trade this stuff. to me this is a trader's market. this is not a major, major portion of my portfolio. i put capital to work today. i don't plan to own it for very long. >> i think that's a good point that tim makes. you can disagree that the broader markets may or may not have hit some sort of a near-term bottom but there may be certain sectors or pockets within the markets that were pushed to their bottom. >> pushed to their extreme. and i think bulls can take solace in something else. and b.k. was on this earlier in the week. the fact that on monday that horrific sell-off, the bond market closed flat on the day. right? closed flat on the day. yesterday on another subsequent sell-off it closed lower on the day. so the bond market, maybe the bond market over the last three

days has been trying to tell you something. maybe the move in the equity markets is overdone. i think you can take some relief in that. i will still say that i think rates are going down. but you absolutely have to respect the price action i think over the last three days in tlt. >> from bonds to the dollar. the dollar's down more than 2% in the past month. and beakers thinks it's flashing a major signal for the markets. b.k.'s going to head over there, saunter over to the smartboard to explain to us, beaks. >> right. so we've talked about the macro flows in this market. and really how it's all been about these capital flows, particularly with china devaluing their currency. so if we look at the u.s. dollar, which is the proxy for -- the u.s.-dollar index, dxy, proxy for all these capital flows, and i have this chart of the u.s. dollar versus the s&p 500. so you can see back here this is may of 2014. that's when mario draghi essentially hinted at an ecb qe and fueled this whole dollar rally we've been talking about for the last 13, 14 months. you can see a pretty loose correlation but a positive correlation between the s&p 500

and the dollar index. but what i find most interesting, look at these circles i have here. these are some big drawdowns, big drops in the s&p 500. 4 1/2%. 7 1/2%. 5.2%. each of those times those markets bottomed when the u.s. dollar was bottoming. you can kind of see it here. you can see it very well right there. what you're seeing is a day or two before the u.s. -- the stock market bottoms the u.s. dollar toends bottom. the thesis behind this being a stronger u.s. dollar means a stronger u.s. economy. now, there's also a push and a pull where you get too strong of a dollar and you get a sell-off. so you look at -- look at that peak in the dollar there, right? we just went sideways. everybody's worried about multinational earnings. the real question is where are we now and why do i think we ma have put in some kind of a bottom here? okay. this is the u.s. dollar index. 200-day moving average. we have this big sell-off. we've come down to 93, which was -- let's call it roughly support level, 93 right there. and today we have now retaken

the 200-day moving average. 200-day moving average very important to currency traders. they tend to use it as a proxy for a bull or a bear market. pretty positive here. we're starting to see the dollar bottom, which should lead to higher equity prices. >> that means that you are in the camp that says that we have not seen a near-term bottom because you want to see the dollar bottom first. and you don't think we've seen that necessarily. >> no, no. i do think we've seen -- right. so that confirms the thesis. >> ideally what i'd like to see, a down day in u.s. stocks and an up day in the dollar. and that to me, that divergence would then tell me it's time to buy stocks. >> i think the question is also how much is the fed playing into the dollar here? i think one of the things you've been saying, i think i've been saying over the last week or so, is in this volatility, the selling off of the carrier trade, what does that mean? that means people are selling dollars and buying other currencies and funding in euros and buying in dollars a number of other either countries or asset classes. so when you see risk aversion, you see actually those currencies rise. you see the yen get stronger,

the euro get stronger, and the dollar sell off. that was where we were on monday. i think it's a combination of i think the fed is sending a signal here and i think the dollar is picking up on it. but i agree. i think the dollar price action has been positive. 9635 the next level on the dixie. not too fast. >> with these big swings on wall street we've got another cnbc special report. that's tonight at 7:00 p.m. eastern time. we're talking the volatility of today's record rally and tomorrow's open. that's with kelly evans, david faber, and jim cramer. 7:00 p.m. on cnbc. up next we're looking at the three biggest dow winners and losers on the year and telling you which names are worth a buy now in a very special edition of "would you rather." plus one of the wildest weeks ever for the markets pape look at what could be behind some of the biggest swings from the floor of the stock exchange. later upgrades on the so-called fang stocks. one firm saying a beaten down alibaba is actually one of its top five best buys within this wreckage. the traders will weigh in on whether you should follow suit. as we head to break take a look at the dow heat map.

wow, what a difference a day makes. sea of green across the board on this record day. much more "fast money" straight ahead.

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we've got some breaking news here on hedge fund pershing square. dom chu's at the headquarters with the details. dom. >> what we know now from reuters, in an investor letter bill ackman, the noted activist hedge fund manager has told investors that his hedge fund pershing square capital management has posted a loss for the year-to-date period given the current market decline. so again, in an investor letter bill ackman tells his clients that his hedge fund has now posted a loss for the year, this according to a report over from reuters. again, a very successful hedge fund manager. a number of notable wins. and of course we associate him more recently with this idea he's taken a very large stake or has a commitment to take a very large stake in shares of snack maker mondalise, a huge stake that was announced back on august 6th. of course this market downturn has affected a lot of people, especially some of these big name investors like bill ackman, melissa. back over to you guys. >> when is that letter dated? i'm trying to get a sense of what the returns are through.

>> we're trying it figure it out right now. it says the current investor letter. we don't have the exact date, it might be today, might be yesterday. we're trying to get that sorted poupt but headlines crossing about this investor letter bill ackman has posted for these particular investors at pershing square capital. that particular fund. >> thanks a lot, dom. it will be interesting to see because a lot of the market damage happened very, very recently and investor letters don't -- >> it's a weird time for him to send that letter. it's not the end of the month. >> it could have been a quarterly letter. quarterly letter's a month late and that's kind of appropriate because you have a chance -- they're more thematic. it's a chance to assess it. being down on the year at this point, let's face, it this has been one of the toughest markets. and macro funds too. i would bet if you went through a lot of the big boys on the macro side they're much, much worse. >> big tech rally leading the market. evercore isi upgrading amazon to a buy. rbc netflix to a price target of $140. and goldman sachs upgrading goog toll a buy hiking its price

target on the stock to 800 bucks. another top firm cantor fitzgerald releasing a note naming the top five buy names amidst the turmoil. amazon, alibaba, fb fbs, google, priceline all made the top five. what stood out to me was alibaba, though. that seems like an interesting one given the carnage. >> but remember, alibaba has been down well before everything else. so the sentiment was pretty negative in this. for me alibaba's always a play on the chinese consumer. so what we're seeing in the world is a switch from the chinese being a net exporter to a consumer nation. so to me alibaba is the buy here. >> it is? >> well, for a very long term. this is one of my put it in your drawers and forget it. your dresser drawers. >> we were talking for the past few days about stick with what works. alibaba has not been working. at this time do you want to step in? >> i'm still in the stocks. i'm sticking with it. the question is what am i waiting for? what are the catalysts? the issues with alibaba to me are more about the perception of the company. i think the complicated structures of the company, what's on balance sheet, little piece here, little piece there.

i think this is one of the things in a difficult tape especially in china that has people most concerned. competition believe it or not may be part of it but this valuati valuation, this growth, and what i think is changing at this company this is a great time to own it in my view. >> google, we've all talked about how it's underperformed that whole group, those whole momentum players. google lost momentum for a bunch of time. and that's why it's outperforming on a relative basis. i think you stay in google. i agree with that. priceline's been an outperformer. i agree with that one. facebook sold off and ripped higher so damn fast that i think -- >> easy. >> i apologize. >> really. >> but that's one name that definitely to me seems like people are screaming to buy it back -- >> i don't think many children are watching the show. fur a child out there, we almost your viewership. guy, where would you go? >> netflix. cuban was on on monday. he said you can back out the open which was a little preposterous, 82, and the 95 level it effectively held was a 50% correction of the april low and the recent high of 130. stopped dead at 95.

we said there's an opportunity there. that actually has come to fruition. out of all the names you just mentioned, i don't think the netflix story's changed at all. the market's changed, netflix hasn't. >> up next the three biggest dow winners and losers on the year. we'll tell you which names are worth a buy right now. you're watching cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." >> announcer: the market plunge creating opportunities to get in. from financials to big oil stocks we've got a list of the top five most oversold names that could be set to soar to new highs. and later, twitter just can't get back above its ipo price. find out what has one guest saying it's much more vulnerable to a takeover than ever before. and the names he thinks could do the buying. all that and more ahead on "fast."

the dow soaring more than 600 points today. and with all the volatility in the last week we wanted to know which stocks have managed to remain positive on the year. for that we go to dom chu. dom. >> melissa, let's focus on the blue chips, the ones that everybody knows, the widely held ones. if you take a look at the winners here on a year-to-date basis given the melees in the market you want to look at nike,

united health care and home depot all up between 10% and 13% on a year to date basis given what's been happening with the market over the past few days. a couple of those names, interestingly, enough, of course, consumer discretionary in nike and home depot. >> we're going to ask the traders would you rather -- >> i love this game. >> amongst the winners. although it's would you rather rather. guy, of the winners where do you go? >> of the winners. united health. and on friday, right ahead of the "options action" show, which is a must watch this friday given all the turmoil. we talked about united health being one of the dow stocks that's probably found a level. and within a couple bucks guess what it has. i think it closed around 117 on friday-ish. we had the outlier move to the down side. it's trading 113 1/2 now. i think it's a fair eflths. and there's a lot going on in the space. anthem, cigna, united health. i think there's enough there. >> that's the cheapest one in the space. and after a big round. you say -- but that's not my

pick. i endorsed guy's pick because he needed something there. to me it's about nike. total athletic flair. you're seeing the atletic category -- >> aechthleisure. >> these guys are taking market share along with under armour, from adidas, from puma, you'll all the other big boys. margins are getting better for nike. this valuation is something that they deserve. it's going higher. >> now let's talk about the biggest losers on the dow. dom, what are they? >> take a look at the big losers here. perhaps no surprise. chevron. dow component, oil and gas int grailted side of things down to about 34% on a year to date basis. also on the materials side, chemicals, du pont down 27%. we all know about the trials and tribulations of the semiconductor business. large caps included. back to you guys. >> losers.

>> would i rather own them down? is that what you're asking? i'd buy intel. that's the one for me. and it's more a relative value trade. i don't really like chevron in this environment. du pont in a slowing global economy is not going to do very well. intel has a high dividend. at this point seems to be relatively safe. they have made some positive comments. they are exposed to the global economy and to a stronger dollar. but given these three i'd buy intel. >> i'm forcing you to choose. would you buy intel at all? >> you're forcing me to choose? i'm not excited about stocks but yes. >> if i were not forcing you and i said would you buy intel -- >> no not at all. >> that's what i wanted to clarify. grasso. >> i'm going to stay the same way as b.k. intel, the slowing p.c. demand, p.c. sales is all factored in i think for the most part. if you look at the chart, intel sets up the best out of the losers. >> here's a twist on this whole game. complicated and different to start. would you rather the winners we

highlighted or the losers? this really goes to strategy in the markets right now. do you go with what's being -- i tell you what. it depends what my time horizon is because if you gave me 18 months i'd want to own chevron. if you look at the integrated oils they're take at decade lows on price to book. their earnings multiples are collapsing faster because earnings are collapsing. but if you look at where they are historically there tends to be a long run of increased valuation when price to book is this low. there's no question these guys have a great balance sheet, they're mag a strong dividend. i would own chevron. >> you've got to go with the winners. getting back to the timeline if the timeline is a short timeline you're looking for the next couple weeks, months, whatever it is, you've got to go with the winners. and home depot sets up best of all the names we just hear here. >> guy. >> there's a sean connery movie i'm reticent to quote. but the winners is the answer to the question. getting back to you mentioned du pont before. back in the spring nelson peltz wrote a letter. the stock spiked on our show north of 80.

we were somewhat cautious. i think it made a three-year low today or within this week. i think you're going to start hearing some noise from him again. i think du pont for the first time in quite some time for a trade actually looks interesting. >> the market's seeing huge swings this week, no different. and one of the reasons for the springs could have something to do with both mutual funds and etfs. cnbc's bob pisani is live at the nyse with a breakdown. bob? >> simply put, melissa, several mutual fund companies had a commuter zblich that made it difficult to calculate the underlying value of a number of mutual funds. that's a problem. the problem was at bank of new york mellon which said it was having problems with its sungard data systems that impacted a number of mutual funds. bank of new york is a custodian for asset managed firms. sungard calculates the prices, the net asset values. it apparently has affected several fund firms including freighted and prudential financial. i spoke with some representatives of the mutual fund industry who emphasized it did not affect today's big market springs. it wasn't a part of that. this was a straight ahead

hardware failure that could have happened any day, anytime. i was able to ascertain less than two dozen fund complexes were affected. it wasn it wasn't an industrywide thing. p. it affected part of the bny system. the question is whether they can accurately calculate the asset values. first trust which manages several exchange traded funds said on wednesday in a statement that the net asset value of some of its funds contain errors greater than 1%. that's not good. bny mellon was reportedly able to construct monday the net asset values for all their funds, but there's likely a big backlog of these net asset values that need to be calculated for tuesday and today. federated still has a statement on its home page that there is still a delay in providing net asset values. what does all this mean, melissa? it highlights the fact that the systems are complex and they're very interconnected. and that's still one of these ongoing technology stories that we are constantly dealing with. melissa? >> all right. bob pisani, thanks for that. that's a really interesting -- i

mean for the retail investor this could be a concern. >> well, absolutely. maybe it worked out if people are saying, well, i can't calculate the nev, so i can't sell, and they were able to hold on. maybe that happened to you. i think in general, though, this highlights some of the things and bob talked about etfs earlier today i heard him talking about that. so the name, the trade on this is one that guy adami's been all over, which is blackrock, bx. i would be concerned about them. >> coming up next, think the turmoil is all about china? think again. we'll hear from one top-ranked strategist who says china is just the tip of the iceberg when it comes to the problems in the u.s. market. and as we head to break here's a look at the stocks that have the biggest impact, point impact on the dow's massive surge into the close. much more on "fast money" on this record day coming up next. it took serena williams years to master the two handed backhand.

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will be to "fast money." a full day in the green for the market. the dow closing up 600 points, something it hasn't done since november 2011. the s&p closing out of correction territory and the nasdaq nearly wiping away the rest of the week's losses, closing up 191 points today. here's what's coming up in the second half of "fast money." twitter below its ipo price. just how vulnerable is the company to a takeover? we name the buyers that could be lining up.

plus big oil in big trouble. a major oil company is cutting its dividend. could there be even more cuts on the table? got all the details later this hour. but first, goldman sachs out with a note before today's snapback saying that some s&p 500 companies are starting to look oversold and it could be a great time to buy. dom chu's got a update from headquarters. >> it's been a wild kind of week in terms of volatility and some leading market watchers are predicting that relief rally may hit here. like you said goldman sachs strategist david constin points out similarities between this sell-off and the one during the emerging markets crisis in 1998 suggesting a possible rebound in the offing. he predicts the s&p 500's going to rise by 11% from current levels to reach the 2100 mark by this year's end. he also says for now the best strategy is to buy the oversold stocks of companies that get most of their revenues from the u.s. so our colleagues over at cnbc pro took a look at goldman's list of 25 oversold stocks with

high u.s. exposure. some of those names projected to rise at least 50% in the next 12 months. names in the energy sector you were mentioning one before that but here's cabot oil. pioneer resources and marathon petroleum. then there's the bank stocks, e-trade, discover, both expected to rise by north of 30%. those are just a fuft names here. for the full list subscribers can go to cnbc.com/pro. that full story with that entire group of stocks up right now online. >> must click. >> you might want to click there because that list is no touches. pioneer. these are names that have not in my opinion, have not bottomed yet. you don't want to be in discover financial. you don't necessarily want to be in e-trade. >> e-trade needs some hope that rates are going to rise. it doesn't have to actually happen but you need some indication that we're not there yet but one of the names he didn't show that was on the list is macy's. extremely compelling technical

setup. $55. >> i did my own screen this morning for the most oversold from a relative strength indicator. things like ralph lauren at a 6 rsi a stock that's been getting pummeled because of this global growth thing and they're having some of their own issues on margins. marathon one of the names on that list interesting. but the thing you have to watch in the oil and gas sector is marathon's got very significant negative free cash flow. i'm not saying the company may go out of business. what i'm saying is a lot of these guys are seeing a shrinking balance sheet. that's not going to be good. that's what the market's pricing in. and i don't think that changes overnight. you want best of breeze in the oil and gas sector. >> discover financial, 2015 has been horrible. it hay great couple years into 10-15, up to 66. here's a sell-off down to 52 and it didn't get obliterated that badly. so you wonder maybe, maybe, maybe has a bottom been put in. against $50 i think you do own dfs. that's the one that stuck out to me. is that proper grammar? >> it is. >> i'm just asking.

>> for this show it is. >> that's a low bar. >> all green here in the u.s. but the shanghai composite fell yet again today despite a fresh round of stimulus from china's government. the index is now down 20% in just the past week. china's volatility may have sparked the wild moves here in the u.s. one strategist says the underlying problems are actually much deeper. dennis debusschere is the head much portfolio strategy research at evercore isi. great to speak with you. >> thanks for having me on, melissa. >> you've been calling for a decline in equities here in the united states for quite some time. is it your view that we have sufficiently derisked here state side? >> i think over the short term you can argue we have derisked, we're setting up for what appears to be a potential fourth quarter rally. typically speaking when you have very low returns going into the fourth quarter you've had better than expected returns in the fourth quarter. so you have some conditions there that would suggest a fourth quarter rally. but in the graphic you see there and the point i made many a times to investors is this is not just a china issue.

this cny evaluation is not the reason why the market has moved lower. it's like blaming lehman brothers for the decline of stocks in 2008. what you're looking at here is value, cyclicals, and high betas relative to performance. which have been under pressure since this point last year. it really accelerated to the down side following the cny evaluation. when you see these factors quund perform the economy tends to be slower not only in the u.s. but globally and the forward returns to the market are much lower. and given that valuations were much higher, what you see on the next graphic, relative to where inflation expectations were going, so we've had a pretty steep decline in inflation expectations. the multiple has held up. there's a fairly tight correlation between inflation expectations and multiples over time. you see it on the graphic there. earlier this year there was a detachment in deflation expectations relative to multiples. i think that was on the fantasy idea that despite the deteriorating fundamentals fult ip lz could expand wildly higher. that is being reduced now or at

least being challenged. >> just to focus on this graphic, more inflation, low pain. does that mean as we witness continued declines, continued pressure in the commodities space, whether it be oil or the sox or other metals that there will be more pain for stocks? is that something that you're watching? >> well, yes. commodities are definitely a part of it. but those inflation expectations should adjust for commodity price volatility. what that's telling you is inflation in the years 5 through 10 is going to be extremely weak. so no wage growth, gdp growth potentially in the u.s. and globally. as long as you have that you have lower risk to earnings because revenues are going to be potentially very weak for a long period of time and with margins at high levels, with reason to believe that the margins aren't moving much higher, if you have very low inflation expectations it's very difficult to see a multiple expand and with earnings under pressure the forward returns of the market may be lower. >> if china wasn't the reason, dennis, for the market's recent rout, what role does it play, if any, in the market's recovery?

>> the role it can play is much stronger demand coming out of china. if you were to see a much stronger demand backdrop, maybe consumption in the chinese economy really starts to accelerate, then that would be a potentially important positive catalyst for the market going forward. >> do you see that, dennis? >> i think it's tough to see right now. i don't want to put it past chinese policy makers over what they would potentially pull off overt next year or so. from the data we're seeing right now it's tough to imagine that's going to be the case. which worries me about any bounce in the market lasting beyond somewhere around the 2,000 level, unless you start to see inflation expectations improve, global economic growth improve, risk on factors improve. >> you know, dennis, we were talking about your last name because it's sort of an unusual name and it sounded so familiar. if it sounds familiar to all you people out there, dennis is the son of the late great nba hall of fame knicks player dave debusschere. isn't that amazing? >> right on, man. >> hall of fame. >> did you know who dave --

clearly -- >> the knicks. >> please. >> previously the pistons. >> look at you. mel did her homework. what you probably don't know is dave was a key part of what i would argue is one of the greatest professional sports teams of all time. and it was because not only were they great athletes but these guys were teammates. kind of of like the team here on "fast money." >> who would you be if you were a '699 knick? >> i'd probably be earl the pearl. >> dennis debusschere, thank you so much. >> actually, it wasn't that team. >> that's why you'd be him. >> be sure to tune in to cnbc tonight for a special report. markets' road to recovery, markets in turmoil. whatever you want to call it. 7:00 p.m. eastern time. a look at whether today's record rally means it is safe to buy and what tomorrow's open could bring. again, tonight 7:00 p.m. eastern time. coming up, still no permanent ceo for twitter in today's rally failing to push it back above its ipo price. is it time for the social player to sell? that's next. plus one oil company cuts its

dividend and the other making a strong buy. what's really happening in the oil space? got all the details later this hour. 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.

earnings alert on a couple of names moving in the after-hours session.

let's get to dom chu in the newsroom. dom. >> apparel maker first of all pvh reporting better than expected quarterly profits and sales help for its clothing under its calvin klein brands. also raised full year adjusted profit guidance. the company forecast current quarter earnings largely above analyst estimates here. you can sigh shares up by about 4% in the after-hours trade. another story for williams sonoma down by about 4% to 5% after the company issued weak current quarter outlooks. the second quarter earnings were in line with expectations while revenues did beat the stock. remember, up about 10% year to date going into this particular number. hence that 5 1/2% drop perhaps on this particular outlook. back over to you, melissa. >> thank you, dom chu. in perms of pvh, usually the outdoor sector that does well. calvin klein underwear also did well this quarter. >> i saw tim had a couple tight calvin klein tees. i'm sure that contributed.

of these names if we look at this environment we're in you're probably going to want to be in the consumer facing names. the u.s. consumer-facing names. both pvh, wsm kind of get in that area. pvh is probably my pick over wsm, though. >> by the way, the ceo, manny chirico, is on "mad money" tonight. that's an interview you will not want to miss. williams sonoma, guy? >> i'll push back on the pvh. i'll play the game. b.k. and i twice now tonight. if you look at pvh 15 times forward earnings probably not that expensive. but since the beginning of 2014 a series of higher highs and lower lows. unless we close above 120 i fear this might be similar. >> twitter climbing with the rest of the market but the stock is trading well below its november 20 ipo price. the social media giant tanking 40% over the past year. victor bostick who runs advisory firm imagination ter advisers thinks it could make them vulnerable. victor, great to have you with us. >> thank you for having me. >> some may have argued that

once costolo stepped down that would have been the time for someone to come in and as every day passed it became less and less likely. why now? just because it's cheap? >> well, it's dropped, and there's no real sign the company's going to be able to innovate quickly enough to ramp its share price. and that's the real problem, is people have been waiting for innovation from the company for a long time but actually if you look at the product, if you think of twitter as a product, it's more or less the same product that it was months he ago and in the social media world if you stand still for six to twelve months you decline. so it's not just the stock price. the company really hasn't shown any ability to be able to innovate like facebook has. so when a company runs out of great ideas or fails to implement them, then they become a takeover target. >> so is it your premise that this would happen before a new ceo is named and so therefore new ceo is not needed and that's why it's taking so long? >> it probably is independent of a new ceo coming in. the price has dropped to a level

where it becomes buyable for a number of people. 15 to 20 billion dollars. it's no longer too big to buy. and so i think it really doesn't really depend on a ceo coming in. >> you think google's the most likely buyer? >> google or facebook. >> why do they need twitter? >> well, twitter has got a massive platform. they can deliver information nobody else can. and google has failed to develop its social products. it needs one. twitter has one. >> okay. victor, we're going to leave it there. victor basta of magister advisers. >> the speculation about what they're doing well or not but this should be the time for m&a, ultimately it has to make a fit. i would look at twitter from this point of what are they doing? periscope, which guy is very

prone to getting on and scoping but they announced they had 10 million users in four months that's pretty good. and if they get to a point where they're going to be able to monetize -- video ads are going to be a $20 billion business in a couple years in this country. i actually think they are innovating. i think this is a very unique media platform. i think it's a company that still has a lot to do. but at these levels i think the company's quite interesting. >> down 30 year to date. every time you wait it has another leg lower. down 30 into my original position. i'm just going to hold it at this point. >> 20% down. >> no. 20% of my original position. that's what i'm still holding. i'm still holding just to see does the new ceo make the stock pop? does it get taken out? yahoo! maybe could buy them. there's a bunch of people -- this is the way i look for my news. this is the way the average person looks for their news this day and age. >> how about the argument that as every day passes and no bid comes it makes it less likely for a company 20b bought? >> right. that's the question. what's going on here? what's taking so long?

you could have said six months ago google should buy them, yahoo! should buy them. obviously they've been in there, they already looked at it. what's going on? to me twitter has a huge opportunity. current management has done an awful job with this. largest newsroom in the world. until they focus on that they're going to have a huge problem. i think you throw them all out and i'm long a call spread hoping they do that and they get a good ceo. >> first to choose at these levels. >> i love this game. >> buyer or seller of twitter. what's it likely to do at this point? spring loaded to the up side? >> i think the obvious answer -- i thought it was going to hold 35. the obvious answer is i adhere. but the not so obvious answer is maybe there's still a flush to the down side that nobody sees coming. i don't they it can be replicated. you're asking me to play a game with you and i'm not saying short it here. but there might be one more flush no one sees coming. >> i thought guy was going to say this is not a game. >> this is not a game, people. >> it is not a game. still ahead, transocean cutting

its dividend. but it's not the only company under pressure from falling oil. who's next? we're naming names after the break. you're watching cnbc, first in business worldwide. much more "fast money" straight ahead.

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one name standing out today with a big rally is transocean. the company saying it plans to cancel its next two dividend payments pending aprofl from a special shareholders meeting. oil field giant schlumberger also lower today after announcing a big acquisition. the company says it's buying equipment maker cameron international for nearly $13 billion. $66 a share. and that would be a 56% premium over tuesday's close. with crude slipping another 2% today, what is the trade here on oil stocks? seems like a lot to pay for cameron. and granted, it's yut performed some of the others. but still -- >> but they're a premium player in the sub c. can and it's not the u.s. non-conventional stuff that gets these guys in. it's a fantastic match and great synergies. but if i look at the entire space, again, i think the integrateds are where you have to go. you have the most defensive balance sheets. you have guys that will also be opportunistic. exxon will be buying up plenty of unconventional u.s. whenever they want to. and i'm sure they probably will

be. this would be my play. >> if i'm in transocean and i'm scared because the next two dividend payments are going to be -- should i assume that there's going to be more dividend cuts to come in the space? >> it's a logical assumption that you could make. i'll bring it back to the beginning of the show. if b.k. fools the dollar is firming that's going to be bad for wti. if it's bad for wti it's bad for the entire patch. integrated names exxonmobil sets up the best. but i think if you see oil come in it's still a tailwind for refiners. >> in the space the one thing i would note today, the refiners, which have just gotten crushed over the last couple twheerksz were actually weak most of the day, got a rally on the end of the day. these are shorts or sells on any rally. coming into a seasonally weak period for demand of gasoline, gasoline was down tremendously today. you've got to watch out for refiners. >> even with the move lower over the last 12 months in schlumberger it is not a cheap stock. it probably still trades close to 18 times forward earnings. the good news if you want to trade it from the long side, maids a 52-week low today on monster volume, about 58 million

shares. typically trades 7 or 8. maybe if nothing else you can use today's low which i believe was $68 as your level on this what appears to be capitulatory selling. >> but is this with the caveat that if wti is still pressured that it's all -- all bets are off in the oil space in terms of a -- >> if you're asking me -- if you're asking me where i think it's going to continue to go i think it's going to continue to grind lower. just to look at a trade, the sellup given the volume isn't the worst thing in the world. >> after transocean which energy company could be the next to -- brian sutland is in chicago with some insights from the options markets. >> hey, melissa. when you look at options markets you can trade options or look at options. when you look at them there's a lot of insight on long dated options that you can look in and see what dividends might be coming down the pipeline and there's three big oil names, melissa, that could be cutting in the near future. over the elaboration month and a half. those names conoco phillips being one of them, bp being

another, and occidental. the options traders are pricing in cuts of 18%, 15%, and 10% respectively for all three of those names. cutting that dividend by that amount basically puts headwind in some of those names. look at all these names over the last three months have been awful, right? and the farther they fall the more players in the options market say hey, the dividends are going to get cut on these names, that's why you see conoco phillips dividend cuts by january 2017. don't think you jump in on these stocks and buy them because their yields are looking cheap. you have to take a look at that and wonder whether they're going to keep paying the dividend because that along with oil like you guys just talked about being a headwind, that could be a headwind for those names as with. that's going to be some trouble here. maybe you want to buy some of these names if you own them. but don't expect that big yield just because these names have fallen so hard. >> thank you, brian sutland. 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 an exclusive with the ceo of pvh fresh off a big earnings beat. and wait till you hear what he says about doing business with donald trump. plus cramer's ranking the ipos and measuring the strength of the home builders. all that and much more on top of the hour on "mad money." meantime, we'll tell you what the traders are watching at tomorrow's open right after this break. much more "fast money" straight ahead. 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.

pvh fresh off its earnings after the close. "mad money" is next! here's a final look at today's massive rally on wall street. the dow up 619 points surging into the close. it was the price action that really gave investors hope that perhaps this can be extended. >> 98% update. the things i'm watching tomorrow, i think it's all about the big trades. i think it's about the currency trades. emerging markets obviously my specialty. i'm watching een currencies which have done a very good job putting in a top the last couple days. >> on the floor how did it feel today? what's the difference? >> i think it's become a real trader's market where we went so long with absolutely no volatility on a daily basis. people were getting bored to tears with it. then we have this sell-off for the last couple of days. it got people move more engaged

in the marketplace. and you were fielding phone calls at 9:00 p.m. at night saying what do you think is going to happen tomorrow morning? so it was a shot of adrenaline for everybody. now we're up, we're down. people don't know what to do. but i don't think it's over just yet. >> i think that the thing to keep in mind is you can't -- just because we rallied today doesn't mean it's all over. don't get complacent again. >> right. and that's exactly the point. even if we get a week's worth or a month's worth of rally here, don't get complacent. remember we talked about being able to buy vix calls. you buy your umbrellas before it rains. next time the vix goes down and when this market rallies you lighten up on your position and you buy your umbrellas. >> don't get complacent. watch our special tonight 7:00 p.m. eastern time, "markets in turmoil." much more on today's big move. a look ahead to china. again, tonight 7:00. kelly, david, cramer. the gang's all there. time now for the final trade. tim. >> okay. so this is the part of the show where i talk about what i'm looking at tomorrow. and i'll be looking at currencies because these are the places where we've seen the biggest trades and the most distress. >> grasso. >> s&p cash. has to hold 1930. must hold level. >> beakers. >> start of the show with

looking at the dollar. going to end the show look at the dollar. that's the key to these markets. >> guy. >> looking to see if there's a recovery in the bond market. tlt. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00 for more "fast money." meantime, big show 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 is not just to entertain you but coach you and teach you and educate you. call me at 1-800-742-cnbc or tweet me @jimcramer. all right. so what made today so different from yesterday? how can we collapse into the close ofra