that does it for us on "closing bell" today. "fast money" coming up in moments. we'll throw it to melissa lee and the gang. "fast money" starts right now live from the nasdaq market side overlooking new york times square. tim seamore brian kelly. the dowed aing 36 points and rallied from the day lows on monday. it is now in, no longer i should say in correction territory. the s&p and nasdaq rising. with the move, both are out of territory. crude in the meantime seeing the biggest up day in six years but there was something a little different about today's big move because it wasn't just the high day, it was across the bored, industrials. >> we'll talk about a couple names in awhile but everything caught a bit today, clearly.

i think today was a little more predictable than yesterday but i did not think we would get through 1970 as quickly as we did and close higher than that. i think 1970 big resistance and at a certain point today it did but came ratcheting through. it looks hauntingly like the exact same move from october but i don't think the worst is over. volatility is still to me extended. i think potentially now we go visit that level that was talked about yesterday, that 2050 level we broke down from earlier last week, but we'll see. i think volatility is here to stay potentially up to 2050 in the s&p. >> do you feel better? this is the second day where we do see a decline in the 2:00 hour and did look like we could roll over and then we went back practically to session highs. >> i think it was session high. >> supposed to. yeah, this, that was scary 3:00. god, is it going to start all over but i find days like this

actually far more difficult than a monday. you know, we're value oriented and get more value on monday than you get on a day like today. i think one of the hardest things to do is to buy when something is up. i find that really difficult to do. i couldn't do a buying on a day like today but there may be great buys today. i mean, you could say that yesterday. >> yeah. >> wow, i won't buy the day up. this actually i find very challenging. so we don't do a lot on a day like today. >> part of the big rally is crude oil whether you i think it's evidence the global slow down isn't as bad as you might think. >> i find that reasoning to be a little suspect, frankly. >> i mean, a 10% rise. >> 10% rally on one day. the global economy turns around today at 2:00 this afternoon? i don't think so. part of the reason you have the oil rally is number one ve

venezuela and short covering rally. one day up 10%, a lot of volatility. i don't think you can read too much into that. that being said, i'm not sure, i thought oil would go down to 36 or so. went to 39. probably close, relatively close to the lows in oil. in terms of the stock market, what does it mean? i think what we're looking at is a bull trap here where you get a big rally into the fmoc meeting and sell off again because i do not think that you've corrected all the excesses in a matter of days and to me when i look at the global economy, it is still slowing. >> or could be a bull rally into jackson hole. [ laughter ] >> that's the thing. >> but, you know, since when did 10% up. if it doesn't mean anything on the oil price, what does it mean on the way down? i would take the other side. >> one day. it was up 10% over a week. >> we have 6% down day last week and said everybody imputed that into the global growth market. today was a growth rally.

gdp number. everyone knows it's a stale number, blah, blah, blah but this is a sentiment reading. housing numbers we had over the last two weeks tell me the u.s. economy can totally support a rate hike. two, price is not truth and three, let's face it. the market and the global economy that brian is talking about and brian, by the way, i'm about to say something because brian has been consistent. i feel no differently about the world today than last thursday. >> i do, too. >> because of the price, i think you traded too much, frankly. >> okay. let's get to what guy had mentioned 2014. take a look at this. this is an over lay at the pull back and rally last october against the action of the past two weeks. rallied back from the loss and hit all-time highs. is that reference, did you make that reference with the implication this is going to happen again? >> it appears, it's pretty easy to make that comparison. obviously doing it in chart form now. i don't think the same thing will happen.

i lean more towards breaks. you can see 40 or 50 handles given where we closed today but i just don't think it's over. i think some of the ills in the system exist, not get complet y ly wonky, you'll do that in tomorrow's negative action. negative gama. things go down and the more things rise the more they have to buy. they get caught on either side and rewarded for short volatility for years they are now being penalized for it. >> then you have an option hangover on monday that explains part of the over shoot on the way down. the thing is we are in a different environment than we were then and if you look where it got to 53, we never got that high and haven't been this high since the financial crisis. to say it might be a little different than last time, yes, you know, we had tom lee on two days ago basically saying v-shape recovery. i don't think, these aren't his

words but implies catch a falling knife. if you had done that, you would be well-paid to do so and i think you have to be careful. >> the action in the market coupled with beater than expected printout this morning creating debate about whether the fed should hold off on raising rates. steve liesman is live at jackson hole, wyoming where the top central bankers are meeting to discuss monitory policy. what's the verdict so far? >> the market swoon earlier for the federal reserve when it came to should they be raising rates into that environment? this rebound also in the sense how much is it linked to the idea that dudly spoke and kind of eased the pressure off a september rate hike. these are things the fed has to consider. they want to raise rates but not into a firestorm of the markets selling off. we talked to one central banker here today. kansas city federal reserve

easter george and she's aware what is happening but still thinks because of the economy that they ought to hike. >> if i thought the economy was not on relatively sure footing here, then i think the complications from that would cause policy makers to think about that. again, given the fundamentals, i think we're in a good position now and we can't wait until we can determine whether market conditions are just right. >> as you mentioned, melissa, hawks like george got some support today through the gdp da data. big revision from the first print on that number and big jump from where it was in the first quarter, 0.6%. jobless claims speaking to another good august report. pending home sales up less than expect takes but maintaining a big jump from the prior month. by the way, george saying the recent volatility linked to the fed withdrawing a potential of

stimulus. one thing the fed has to consider, protesters and politics. 50 or 60 protesters gathered here and asking the question does the fed care about black americans? does the fed care about wages? they are urging the federal reserve to not hike interest rates, let the economy run hot and that's advice given by another person who joined them, noble economic prize winner. >> i don't see this as a hard call, and what is interesting is that -- [ applause ] >> -- the wide spread support among people who are not of the mind set of the fed, not involved in the financial markets, people who are really concerned about the real economy, there is a broad consensus sups ththis is not th to be raising interest rates. >> if you think this is easy, different members of the fed with different ideas. you got protesters on this side. there is another group meeting down the road from here, a bunch

of hard money guys urging the fed to hike. so i know you guys have trouble picking your stocks and everything like that, these guys have all these interest groups lobbying them to pick an interest rate and whether or not to go in september. i will tell you we have more policymakers on tomorrow. the code of the other side of the spectrum from easter gorge and the governor of the bank of india to give you this whole emerging market view and what is happening with china and india and overseas economies. really interesting times here and inside the forum, they will be debating inflation and among other things, why the federal reserve and central banks around the world can't get the inflation number they want. melis melissa? >> karen has a question. >> with all those views, one thing we talk about is splitting the difference and going in september, let's say, for, you know, 12.5 basis points. is that a possibility? >> i've heard that. it just feels a little wimpy to

me, but i think when the fed goes, it's going to want to go in a full quarter. remember, the current fed funds rate is 12, 13, 14 basis points and bring it up and remember they are going for a range and hit that range between 25 and 50 basis points and set a ceiling and floor on that range understanding the feds target when it will be more complicated for folks but i think they don't want to complicate and do 12.5. if it was not good for 25, why is it good for 12.5. the issue with market volatility is what? economic data is solid. it's good. >> yeah. >> but in terms of market volatility, is it the notion, there might be an impact on the economy. >> that's why they did qe. you can gets a set prices higher that would spur the real economy. that really hasn't worked as well as they thought. easter george talks about the

economy on solid footing. the economic reports are off for six years. >> the consumer confidence, look at what they are trying to inspire. the housing prices -- >> they did -- >> they nailed it and so if you think about where we are here, first of all, 12.5 basis points, here is what that does. sends the message we're going but implies we'll not go aggressively. we'll go 50 and no matter what, that's going to be better for people there. >> you like the chairman's proposal. >> it's great. they need to go in september snchts one widely followed analyst getting bullish on amazon and sending the stock soring and you won't believe how high he sees it going and a massive potential and super bug drug and september 9th, what the tech titan could announce right after this.

welcome back to "fast money." interesting notes coming out with regard to weekly fund flows. melissa, we were talking earlier about maybe these things to watch. according to fund tracking firm

lipper, u.s. stock based mutual funds lost $18.8 billion in terms of out flows in the week ended yesterday that encompasses the recent financial turmoil. it's broken down by stock mutual funds posting a $2.6 billion out flow. the week ended yesterday. the biggest out flow since mid july. driven by u.s. stock-based etfs posting a $15.2 billion out flow. that would be the biggest out flow since august of 2014. so yes, it appears as though investors retail and institutional who traffic in these kinds of funds took a lot of money out over the course of the last week, melissa, back over to you guys. >> let's go glass half full on this, shall we? maybe this shows it? >> the way the s&p, the spy trades and the way a lot of the futures trade, especially you see these rebounces but saw the

s&p was five standard deviations below the 50 moving day. we've seen it like three times in history. tells you extreme fun flows. >> another, steve sent me yesterday the amount of rebalance that needs to be huge equity to buy, bonds to sell at the end of the month, that also fits in with this, i think and i agree with tim. i think it's a bullish thing. >> amazon kicking off the top trades tonight. the stock soaring 3.5% of raymond james upgraded to a strong buy saying the pull back gives the stock an attractive point and could rally 30%. here is what he said about a $640 price target. >> $640 is our price target. amazon is showing nice revenue growth in the important point is they are showing leverage on the operating margins, combination of web services showing nice growth and better margins and the core business. >> from may until the huge spike

into july, amazon basically flat lined around $420 give or take and the quarter that surprised just about everybody. the stock spiked up to 580. the 50% correction of that range is effectively where we closed yesterday, $500 back out some of the nonsense we saw earlier in the week. yeah, i think against $500. i don't know if it goes to his price target. i understand valuation is a bit of a bug a boo here but earnings coming up in october, which will be here before you know it and i think again, timmy thinks the tape will stabilize here but this thing holds 500 and goes higher. tesla skyrocketing 7% after consumer reports called the new model s, the best car it's tested. it got a rating of 100. perfect score on acceleration, braking and handling. moments ago the head of automotive testing said this on the closing bell. >> tesla inflated the standard

really. the performance is amazing. accelerates paster than the model s we tested before and more efficient. i've driven it and blurred my vision with acceleration. >> seems like a really negative thing when you're driving a car. >> you should wear goggles or something. that's dangerous. no, the whole point on tesla here is no one surprised how great of a car this is. it's a fantastic car and technology. should this trade at 300 times earnings and can they deliver these cars that go 10 3 and blur vision. this should be a tech company or should be priced as an auto maker ten to 12 timings earnings and would be expensive. tesla is also one of the momentum stocks destroyed with volatility. >> do we see $22 down. >> that's the number, we saw 220

already so and going back towards -- >> your eyes will be burly. >> that's just -- >> i think we saw the 220 level and i think you can stay along the side. >> a super bug drug, the new better ask to the player and resident stock therapist. you're watching cnbc first in business worldwide in the meantime, here's what else is coming up on "fast money". >> apple making it official and sending out invites for september 9th event and while everyone is focused on the iphone, it's a different device capturing a lot of attention. we'll tell you what it is. plus, cracking open the black book of netflix viewer ship. the new plan to track streaming

video services. and what it could mean for netflix shareholders in the long run. all that and more ahead on "fast." this summer, challenge your preconceptions and experience a cadillac for yourself. ♪ the 2015 cadillac srx. lease this from around $339 per month, or purchase with 0% apr financing.

40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done,

the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town, the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back. breaking news on amgen, just

getting approval for a new treatment. meg terrell is here with details. the stock is down 1% in the after hours we should note. >> amgen getting approval which was widely expected. what was important is whether the label will be approved was the same as the competitor drug from others. from reading the label from the fda, it looks similar, same class of patients and the one extra piece of information, which i haven't gotten which is why i'm holding my phone is where it will be priced. reagain ron is $14,600 a year. >> this is huge. city put the estimate at $11 billion eventually. >> potentially huge market, eight to 10 million americans could fall under the label it got from the fda so a lot of folks taking these drugs. each drug is at $5 billion at

peak annual sales. >> we'll keep our eyes out for the pricing. in the meantime, meg, a super bug drug, sounds fascinating. >> or scary. >> or scary. >> hopefully it will take care of what is scary. it's about $1.5 billion. super bugs are bacteria that have become resistant to antibiotics. the cdc says they kill about 23,000 americans every year and infect about 2 million people. it's a gigantic problem. tetraphase has one in phase three with data expected to read this quarter. they had one positive trail readout so this next one should come any time now and this can treat really the least served part of the super bug area. they basically separate bacteria into two categories, grand positive and grand negative and it can be treated in both and it's being tested in grand negative. >> which super bugs are we

talking about. we hear about hospital infections, mrsa for instance. what sort of illnesses? >> that's right. mrsa is grand positive but i think this has seen to be effective against that. this specific trial is in you are n-- urinary tract infection. >> i watched a documentary about super bugs. >> pbs. >> amazing, terrifying. >> everybody watch this, it's good. >> a lot of drug companies had stocks -- >> you won't sleep at night. >> developing antibiotics. >> it's absolutely true. you look at a company $1.5 billion market cap and companies working in cancer or rare diseases, twice or three times the size. so this is really fallen out of favor but merk is back into the space for 8 or $9 billion.

it's a takeover candidate if this drug is successful. >> so could be a driver but this seen a lot of volatility in the latest sell off, even just today if you take a look at the price swing in gilead for instance, i think it was a swing about 3%. >> that shouldn't be a surprise. again, base upon the momentum, i'm more surprised to see the volatility in the drug stocks. merk is still down about 10% off of where it was last thursday so that is a case where week over week different, trading about 15 times relative at the peers. with this pipeline, not bad. >> amgen had a ridiculous quarter, all the analysts talked about it. meg's friend talked about tremendous improvement about 500 basis points. i see price targets from 175 to 193. i think it gets somewhere in there. 145 on the downside obviously back out noise we saw earlier this week but to me, amgen is cheap at these levels despite

what we're seeing in the aftermarket here, i think amgen goes higher. >> any word on pricing yet? >> i was still checking. >> meg, thank you. we have breaking news on a couple changes to the s&p 500. let's get to dom chu. >> it's having a big effect on the stocks. let's start with activation blizzard, the big video game publisher up on 350,000 shares worth of volume. it's going into the s&p index. it will replace paul corporation which of course we remember as being acquired. this transaction will be effective at the close of business on friday, tomorrow, august 28th. also, check out united continental because another airline enters the s&p 500. united continental up 7% so far after it will replace hospira. these two deals have taken two companies out. the result is at active vags blizzard and united continental going into the s&p 500. the transaction goes into effect

on wednesday, september 2nd. guys? back over to you melissa. brian kelly, either of these names interest you? >> well, so i think what you need to do is separate this move in the after hours. is it something you buy? the answer is no. the move is made and maybe on the last day of trading you might be able to make a quick flip but don't buy it because they added the s&p 500 today. now, everybody is like the airlines, to me i'd be a little worried, i mean, even though when it was up 10% today if we get a stabilization in that, i'd be concerned. >> it's weird because fuel prices go down and the people think that airlines will spend, spend, spend, fuel prices go up should make them more conservative. >> negative convexity on owning an airline. same thing with oil companies back in the day, they didn't rally because the long-term price of oil was important. airlines are hedged. they don't get credit on the way down if you read analysts, the first time oil got to $45, we

heard about a 6 to $7 billion nd fhe industry. delta very interesting $43 didn't trade so well today relative to the peers. that's my best. solar city falling along with the rest of the sector but morgan stanley out with a growing report calling them the top pick in the space. the analyst behind that call joins us next and here is another look at the dow heat map, another huge day of gains pretty much across the board. dow and s&p closing out of correction territory. much mf "fast money" right after this. "fast money" right after this. mo "fast money" right after this. re "fast money" right after this.

welcome back to "fast money." the dow up 70 pouints and after news scare but picked up in the last hour of trading, chevron, general electric led the dow to the second day of big gains. here's what is coming up. netflix is slapped ratings and top analysts explain why it could be bad news for the stock. details up next. solar stocks shining bright after morgan stanley analysts upgrade the city. the man behind the call joins us later this hour. we start off with apple getting a nice boost with the rest of the tech sector.

the company sending out invitation today to an event scheduled for september 9th in san francisco. what exactly will apple announce and will there be any surprises? josh lipton has details. hi, josh. >> well, melissa, just as in years past the assumption is that the big news at this event will be that next generation iphone, the 6 s and the expectation is that the 6 s will come with a revamped camera or pressure sensitive display but will this be enough to attract consumers. that's the big question whether apple can grow iphone shipments in december and next year. bernstein thinks apple could saying there is still a lot of share for apple to gain in the high-end of the smart phone market especially from samsung he says. now the event is also set to include an update for apple tv according to 9:00 to 5:00 max. he says the invites tag line is in fact a reference to the fact that tv will include support for

siri. melissa, back to you. >> almost like the amazon fire tv saying hey, fire tv where is, you know, "arrested development" or what not? >> right, its hardware update is a long time coming. certainly if you look at apple tv, it's important. apple sold 25 million of them. $69 a pop. the car, the living room. tim cook wants to be everywhere you are. >> yeah, speaking of everywhere, on your wrist, as well. there are some good data out from ibc about the watch. >> yeah, so idc is saying in q 2 apple shipped 3.6 million watches right behind fit bittest 4.4 million units. you can see investors bailed. the stock dropping hard about 9%. now as the journal points out, idc numbers mean apple sold more

watches in the first quarter of availability than it did ipads or iphones. rbc tells me they are looking for apple to ship 9 million watches in 2015 that would generate 3.6 million. not a big financial impact but the product is important, he says, to prove apple is still a company that can invite and excite consumers. melissa, back to you. >> thank you, josh lipton. karen, long apple. >> long apple. great they have an announcement, that's good. excitement, still a lot of not just samsung but apple converters like me that need to upgrade like tim. >> thank you. >> today's move wasn't about that. it was, you know, kind of risk on everybody feels better global growth story, all of that and when you think of and step back, apple is still had a very, very not good run in the last couple months so i think, you know, right here i still feel like it's no man's land but i don't

think all this kpiemexcitement n this story. >> it certainly comes back about $10. 113 is a key level. there is a lot of different news out there about the strength of the global smart phone market. they are taking share in china. last night panasonic laid off people and battery demand was not significant. the news flow going into a potential refresh, i think actually for the stocks perspective serves you well. i don't think the expectations are terribly high again in the season. >> you saw the decline in fit bit and units weren't as great in the quarter but growth rate is faster than fit bittest growth rate, clearly. >> so two things, one on fit bit, that is kind of a one-trick pony that ultimately i think probably is a tuck in for somebody so at some point it's a buy on idea. in terms of apple going into it, look technically 124 is your next level.

if we run up to 124 into the event, you feel off there and wait until after the event to see how it comes out. >> my favorite movie by far is "point break". >> "point break". >> unbelievable. >> did i ask you that? >> huh? >> did i ask you that? >> no, sorry. swayze. >> swayze. >> at what point -- >> garmin you had lights, is this the death for garmin? >> we have given the death a number of times. somebody could tuck them in. garmin is a stand-alone device. i own one of their devices. >> look at you. >> with that said, we talk about 105 being the level with apple. i get the 92 point on monday. the low, you trade from the long side against the level. >> still ahead, ratings ability to be a reality. who will come out on top, might not be who you think and shares of solar city down 25% over the

past three months. the analyst that says buy this dip joins us later this hour. much more "fast money" straight ahead. ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just one day. ahh! so he had your back? yep. in just one day, we approve and pay. one day pay, only from aflac. [duck snoring]

♪a one, a two, a three percent cnext.ack♪ there's gotta be a better way to find the right card. creditcards.com lets you compare hundreds of cards to find the one that's right for you. just search, compare, and apply at creditcards.com.

let's get to dom chu in the newsroom. >> i'm checking the last quote, it's still going up. 18% to the upside in the after hours session. heavy volume 6.5 million shares traded on the heels of a 29% increase on 100 million shares earlier in the session. this out, of course, on the news that activist investor carl icahn filed regulatory paperwork disclosing what looks to be 8.5% steak in the company. he wants to discuss the capital expenditures plan and the executive pay practices and wants to discuss the curtailment of high-cost production operations and may seek representation on the board at some point if things go one way or the other and he hadn't had discussions with them as of august 26th. so all of those a factor in the stock move but again, we should point out that even with today's regular session moves, the stock is still down 56% year to date and about 72% over the last

year, certainly a down trend for the stock perhaps one reason why maybe not as much a call like you guys pointed out on the golden copper prices but more about unlocking value at free port-mcmoran. >> a monster move during the session on cuts to the capital spending plan. what do we do here? this is a specific story, and doesn't sound like he's seeing the -- saying there a bottom in copper. >> the reason the stock fell the way it did is not about copper. the reason the stock fell is they are worried about mining license in peru and worried about licenses here. you had company specific issues and a company to me is one of the highest quality in the mining space. i've been averaging down and probably $6 under water in the stock and i've held in it because to me, what was announced today, the cuts, spending cuts and actually access to $1 billion offering they announced. that's a big part of the move.

>> si$6 under water is a home r. similar to the playbook, they haven't had discussions and want to put representation on the board. this company is vulnerable. they have a non-staggered board and so there is really something for him to do if he chooses. not a gigantic bet for him. 1 billion, wonder if it's a summer intern but, you know, you never know what the bottom of what causes the bottom. is it sentiment? is it -- if it is sentiment, these things can actually make a difference. it is worth noting, though, he has to file purchases in the last 60 days. looks like he started july 17th at $16 a share and it was nine this morning or yesterday. >> yeah. >> that's, in terms of tomorrow morning what do you do, stock up 50% in two days. two days it's up 50%. so do not buy it tomorrow. i wouldn't buy. >> let's move on to netflix. who is really watching?

we might be able to find out as they track shoes on netflix, am soon and hulu. neil, great to have you. what, is this good for netflix? seems like it's placed into the hands of the content producers. >> yeah, this is actually i think somewhat negative for netflix. you know, just to play on the positive side, it could show netflix gaining but i think there is a lot more risk involved. it could show that amazon or e hulu take share or broadcast or cable shows are taking share and ultimately, this could drive up content cost for netflix since netflix doesn't provide data to the content providers, this could, you know, they could use this data to come back to netflix and ask for a higher price if they believe their content is gaining share. >> as an analyst, neil, will you

use this as any input into your view on netflix? i'm curious because nielsen has been criticized for how it measures and the accuracy of the measurement. >> yeah, look, i mean nielsen's data is fairly limited. 25,000 households, 1,000 shows is what they will be showing at first. but it is a data point. so we'll probably use the data as a factor but it won't be the end all. i think what could potentially come out of this is that netflix could perhaps start to provide new data to the investment community and also to the content providers in terms of engagement or demographic data and that could help offset some of the nielsen data that comes out. >> great to speak with you. thank you. neil doshi. >> netflix was up 37% since monday's lows. 37% since monday's lows.

>> doesn't that give you a nice playbook into the next round of volatility. still high in the name but to me if you look to defend yourself in the next market from a guy that thinks netflix is way over priced, great company, this and that, way, way over priced. if you look at that, this is how i would protect myself. buy yourself something at one month. >> which makes perfect sense but i still think it's a netflix world. right now in today's world impossible to be replicated. the growth is tremendous and rewarding for the growth. benign tape like the comment, goes higher from here. >> right -- >> amazon, netflix. >> i'm more in tim's camp where you use this to take profits in netflix as i look at netflix competition in the space, they don't have to go around the business and start paying for more content and i know you could have said this for a long time but at some point in time that matters. it could go higher, certainly,

guy called this tremendously but i would use it as an atm and source of cash as it goes higher. >> okay. were you disappointed by google? >> yesterday was up nicely. i'd like to see by the end of the year how it works. >> the analyst that thinks solar city could jump 100% in the next year. just what it is that has them banging the table plus a big deal is about to happen with one stock? we'll learn what it is after the break. you're watching cnbc straight ahead.

solar city on a buy to morgan stanley that brings us to the call of the day. the stock could move 116% higher as the stocks recent pull back does not reflect the strong fundamenta fundamentals. the head of north american equity reserve of powers, utilities and clean tech at morgan stanley. great to have you with us. >> thanks for having me. >> for whatever reason it is

because of the irrational belief it's tied to oil prices in someway, there has come out of this a big concern about the sector's ability to finance. in one month alone you point out solar city is down 21%. should we be concerned about the ability to fund its projecproje >> no, we shouldn't. the fundamentals continue to be strong. solar costs continue to fall and companies like solar city are dependent on the investment grade market. that's a very deep and strong market and fundamentally what is driving the value here are long-term contracts with highly credit worthy customers and we think that's a kind of asset class that's going to have long-term ability to achieve financing. >> last week the stock got a jolt when the short seller unveiled his latest position that would be a short against solar city. one of his thesis is that solar city is a subprime financing company. we had the ceo call in and he

made the point the fico scores are high, the minimum is 650. i pulled the bond report 2015-1 and it does say that the range is as low as 558 on the fico scores. what is the truth here? >> sure, i think when we look at the fico scores we see an average above 735 and the proof is in the cost low 4%. the market is telling us that this is a highly credit worthy diverse set of customers. >> okay. and i know that you're restricts from speaking about sun edison but i want to talk about the overall sector. that stock, that was a decline. it wasn't like an accounting scandal. it just sort of fell apart. i'm wondering if you get a lot of phone calls from investors gun shy about the solar space because of what they saw in that stock? >> yes, we've seen large declines in a number of solar stocks driven by a number of concerns financing is certainly

number one. is the financing market going to be stable even in times the market volatility? but i think that the truth is especially for residential solar, solar city's business the fundamentals are strong. what we see driving the business are utility bills continuing to rise and solar instillation cost continue to fall and in that environment, we see a nice economic spread and what we're offering essentially is a lower-priced product than what utilities offer and it's a strong value proposition. so as a result, we think that there is going to continue to be strong interest from customers. this is a product that's saving them money at the end of the day so they are happy to have it and that's the product i think will get financing in the long run. >> all right. we got to leave it there. thanks for your time. we appreciate it. >> thank you. steven bird morgan stanley. interesting call on a sector that's been absolutely. >> ambushed. >> i know it from personal pain. >> how do you manage. we couldn't ask steven because

he's restraigicted on sun ediso. how do you manage a position like that that doesn't seem like there is any sort of -- >> where there seems to be no bottom. >> feels that way. >> long puts, as well, we have to buy, they were expensive no doubt about it. they are expensive. i hope those go to zero. that's part of it. picking how many dollars will i be willing to risk in this name? so that is part of it. but, you know, the point that you make which is so relevant here, two things its correlated to, the financing markets that is a perception problem. the market is there. the market is open but if people don't believe it, doesn't matter. >> doesn't matter. >> the second part is the correlation to oil. and when it gets really volatile which we've seen a number of times, they correlate, doesn't matter. if you think it should or shouldn't it does. i know over time we'll ride that out. that's the only way to do it. it's been painful, no doubt.

wish i never heard the name. >> yeah. >> i think the solar conference starts and the stock will do another abs in financing, i think the financing concerns are way over done. two-year low and important level should hold. >> shifting gears for emc shares, the subject of deal chatter and that is in a t izzy. an option action original, she has a "fast money" nickname the hammer, i believe. >> hey, melissa, hey, how are you? >> so emc, options are certainly bullish here. today for example, we saw two times the 20-day average call volume trade so roughly 27,000 contracts of which most of them were brought. the focus really was on the shorter dated options expiring both this week and next week so using an example of one specific trade. we saw almost 10,000 calls when emc was slightly below $25.

this is a quick pop type of strategy. emc has a number of different rumors and number of different month possibilities, they could buy it and one of the things speculated out there. we have an article today talking about the down stream merger where it would be buying emc. >> full show of "options action" tomorrow. in the meantime, traders tell us what they are watching at tomorrow's open right after this break. stay tuned. 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. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep it all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberry apple scones smell about done. ahh, you're good. i like to bake. add new business services with at&t and get up to $500 in total savings. can a a subconscious. mind? a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul?

can a business be...alive? no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, 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. what if there were only one kind of dog? then it would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs. because no one can be an expert in every one... an app powered by ibm watson

will help vets tap specialized knowledge in the cloud for every breed... and whatever else walks, flies or slithers through the door. ibm watson is working to make medicine smarter every day. time for the final trade, tim? >> we saw the move in oil. rallied the dollar up today. the whole space has gone higher. >> brian kelly? >> i'll watching interest rates, the curve, yield curve flattened which suggests great isn't there. >> chairwoman? >> i was watching oil just as a proxy for the world. >> that's so broad. >> we are the world. >> we are the children. >> the less to buy copper and

add gas products, i don't think this rally holds. that's what i'm watching. >> interesting. i'm melissa lee. thanks for watching. see you again tomorrow at 5:00 for more "mad money" with jim cramer starts right now. >> my mission is simple -- to make you money. i'm here to level the playing field for all investors. there is always a bull mark somewhere and i promise to help you find it. "mad money" starts now! hey, i'm cramer him welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to save you a little money. my job is not just to coach, to teach and educate. so call me at 1-800-374-cnbc. how the heck can we go higher when oil is up three bucks and change. how do you make