it is an amazing story. money is streaming out of china and it is still their money and that is why they are buying overseas. >> it is cheaper in europe. we have to leave it there. but steve lees man, dennis bur man. >> we'll see you on the runway. >> "fast money" begins right now. >> live from the nasdaq markets overlooking time square this is moyle. pete najarian karen finer, and brian kelly. all of the details of what the new additions could mean for shareholders. and the countdown is on for thursday's fed decision. we'll talk to one well-known wall street strategist that said there is a major reason why the fed will not hike rates this week. and he'll tell us what that is. ? and the story of the day. the short end of the curve that had everyone talking, the yield

jumping to the highest level in four years and the dow clowing up 228 points and utility caught a bid. so what do we make of this fed riddle. guy? >> cross cut clear today. and we talked about yesterday, maybe counter intuitive, but if the fed were to raise on thursday that is bullish as the market will say, you know what this has got some credibility and maybe they are not scared of things that we don't see and all clear in terms of the stock market. and i think saw that today. we're at the 1970 level. i level steve talks about in the s&p and now it needs to build off this and taking us to 2034 in the s&p. but the bond market was a stagger move. 2.25 in the ten year is the pivot point and that is where we are. >> and it is across the board. and we were hiking the spike and the ten year and the 30 year, the yields spiked higher. was that a head scratcher to you. >> totally. i have no idea why it did what

it did today. if you gave me the fed language from thursday, i wouldn't know how to interpret it and what the market would do. i don't know if this was a rally on that a expected hike i have no idea. totally perplexed. >> lindsay bar, spoke to him in the 2:00 hour and he expects to be a rally on thursday between 2:00 and 4:00 and after that it depends on the language. but it is a short-lived rally, a window. >> to karen's point, you could have the data and know exactly what they are going to do and get people 50/50 whether we are going up or down in the market place. and for peter's point, he is talking about closure. at this point the market wants something. if they get, it they don't care what happens in the long run. i do believe the market sets up to go lower but this is a hell of squeeze for the last day or so. >> i want to bring in steve leesman, "fast money" expert and

from the floor, i know you are watching this move today and put forth your theories. do you think we're reading too much into this because it could very well be reversed tomorrow. >> i want to associate myself with karen's remarks. we have no idea. it had been a simple move of the two year toward 80, i would say that would show the market is beginning to further discount a fed rate hike. but the idea it was associated along with the stock market, that was perplexing to me. so it was not a clear significantsignal. and i think you have to step back from the market volatility and say you know it is going to be volatile. and if i was a fed policymaker at this point i would say i'm not getting a clear signal from the market as to what i should or shouldn't do and let me look further down the road at the macro economy and base on that rather than the market gyrations, but most of the numbers have been getting better. and the concerns have been based upon what is going on in china

and how much the slowdown will effect the rest of the globe. and you look at the emerging markets. today it was interesting that we saw the financials they caught a bid. industrials, they caught a bid. so if there are certain areas if the fed does hike that we see another move to the upside and a pushdown on utilities? >> i won't base it on the fed. because here is my take on the fed. i see a very long-running time here of low fed rates. i think they do a quarter. either this month or next month, probably. and then they wait for a while to see how that settles down ab then do another quarter. over a period of time our fed survey shows that market participants don't see them stopping around 3%. so i would be making my decisions on the earnings and economic outlook and strong consumer spending. and people don't see those

numbers, when you inflation it the oil prices are low and the u.s. economy is looking well and europe is making a bit of a comeback or certainly stabilizing. so i would factor out the fed from that. i think we're all too fed focused. i answer questions because they are asked of me. but if they weren't asked, i wouldn't volunteer them. >> i'm going to ask you another question. >> that is fine. i'm happy to answer them melissa. i get it. i understand the preoccupation. but it is a quarter. >> or an eighth. who knows. so here is the question. when you did your interview with stanley fisher he opened the door to volatility being a factor in the decision. we've got the vix now above the ten-year average of 20 for 18 straight sessions now. the volatility today was to the upside. do you think that is still a volatility that the fed will factor in? >> i think it is. and the way i look at this. i look at the analog of the temper tantrum.

they put forward the idea we were going to taper. the market didn't take it well. bernanke regrouped, like an army beaten in a battle and regrouped tried it again and it worked again after the initial signal in may. to the fed, a couple of months here and there to get this right and get the market on board and the volatility down -- i think first of all, it has been a long time since they raised rate. they have been at zero. no one has escaped the zero bound since the financial crisis. they will take a few months and get it right hopefully and do this in a way that doesn't create volatility above and beyond the kind of volatility that should be created with a slight rate hike. >> steve, good to speak with you. >> thanks for having he me and -- me and answering the questions. >> thank you for your answers. let's bottom line this. in terms of the rally today, is this a rally that you fade guy. >> i don't think it fades until

the s&p, i think 2035 or so to round off the number i think that is the level we broke down to and held a couple of times and that is when we go back and retest. i think steve's 1970 level is the pivot. but we've maintained this level a while to make me think -- >> but are these levels that you ignore until after the fed. >> you have to. you have expiration coming up ahead of that because they don't want to get caught up in the noise and the volatility. but it is counter intuitive, those things rally alongside when the fed is in a rate rising cycle, you want to buy fed and utilities an that is the out liar. >> stars the stock is soaring, after hours. we have the details. >> it is soaring because amc is in talks to potentially buy john malone's stars. as you can see stars is up by nearly 7.5% in the after hours here. amc not up by quite as much.

around 1%. julia boorstin said they have no comment on the store. but once again amc in talks to acquire stars network. melissa, back over to you. >> thank you, kate rodgers. interesting move in the content. where would you go for content. >> well i love disney. >> a major underperformer today. >> because morgan stanley has talking about cord cutting. but i still think around $100 a share is what you want to own. >> our next guest says don't buy right now. ari wald is from oppenheimer and breaking it down at the smart board. why not now? >> you think this rally is getting late and we are capped to the upside. we think there is a time element. we need to spend more time building a base over the next few months. here is the chart i'm looking at. and with so much about this -- potential 25 basis point hike in the fed, we're not worried about that.

we're discouraged that stocks aren't supported by quantitative easing as they were earlier in the psychcycle. here is the s&p. and we are accustomed to buying in the dip. and we have qe 2, and operation twist in 2011 into 2012 and the big rally in 2013, supported by qe 3. since october of last year qe 3 ended right there. and since then we can see the pace of the gains have started to slow. now last time i was on this show we made the comparison to 2011. we think this is what we need to see at a minimum. at 2011 you had operate twist. you needed two months to base. we're only at one month. until you get that month -- that additional month of basing i think you fade the upside. here is the near term look of the s&p 500. we broke the multi-year up

trend. we're below the 200 day moving average. we think we're capped at the 2030, 2040 level. i think you saw it up there. >> but in the meantime you are not discounting the fact that we could possibly have a year end rally. that is within this theory that eventually we'll see re siftance at those levels. >> indeed. the sentiment indicators have reached pessimistic extremes and it does strengthen in mid-october. i just don't think we have the fire power to get it back above the breakdown point. i think it is a market of haves and have notes. the big happen growth area is the area that will pull the market higher. >> ari wald. oppenheimer. do you agree with that and which cap growth areas -- >> it was interesting today because we saw big cap energy names popped up in terms of unusual activity. >> are you saying they are growth connected -- >> well i'm saying that these names, when you talk about different participator parts of the -- parts of the market place

and big cap, that stood out for us. i'm not necessarily going with growth there. but i'm looking at that it stood out today because we had the xle paper, conico chevron paper, all of that hitting in the last day or so. it stood out to me and reflected that these are beaten down and is there any possibility of the move to the upside. >> and what scares me is we could have said that seven or eight months ago. the lifting of the oil export ban and you've been looking at that a lot and do you think it is too early to place a bet on that. >> i think it is going to happen. i think it is a matter of when and not if it is going to happen. and that is going to put a little more extra weight on to refiners. the best thing you can play are the producers. maybe play e&p companies on that. >> and cash is there retail going to the holiday season which guy hates talking about but it is time to come to talking the holiday.

>> what holiday? happy new year if that is the holiday you are speaking of. >> rosh hashanah. >> retail is a good time. i think the data for back to school was great and we had more of it today. it sets up nicely as long as you have a lot of cores and macy's and other things but i like the retail trade. >> coming up next hp out with news the company is slashing the work force. and the stock is lower in after hours. what it means for shareholders. and next janet yellen sounding the alarm on value tech saying valuations were stretched and call didn't pan out and the three biggest gainers since her call and how to play them now. and mark zuckerburg unveiling buttons and virtual reality and a look at what it could mean for the stock. much more "fast money" up next.

welcome back to "fast money." i'm kate rogers with a news alert on fedex. they will raise shipping rates up to 4.9%, domestic and import and export services applying to

fedex express and ground and delivery freight and will kick in on january 4th, 2016. it is up a 10th of a percent. and hp hewlett-packard enterprise expects 25,000 to 35,000 job cuts that will save the company $2.7 billion, and most coming from the enterprise services. as david faber notes these new cuts were announced in a press release. meg whitman will join "squawk on the street" tomorrow morning at 9:00 a.m. don't miss that one. >> thank you kate rodgers. i ask the desk is there any reason to own hewlett-packard. >> chanos would say no. and it was worthy a of trade a couple of weeks ago, when they reported. if you recall the stock sold off in the post market but the next day it was trading higher and that held up for a couple of days. but the trajectory of the stock now for the last year and a half two years, has been lower,

probably continues on that move. >> it is interesting, look ago the the stock and the reaction is down 2% and a lag ert, only up a quarter of a percent. how are you interpreting this action. >> there was all kinds of call buying in hewlett-packard, and we'll find out tomorrow morning, it was short-term and people betting on what the news would mean and expecting to see the stock to move move to the upside. it doesn't look like it wants to pan out that way. >> would you rather? hewlett-packard or ibm? >> oh, definitely not hewlett-packard, so by default, go to go toi bm. the game is within in your rules. >> gold star for observing the rules. >> do you want to chime in. >> i wouldn't do either. but if we are playing the game, i am going to hewlett-packard.

you have potential catalyst there somewhere. >> i'm the chairwoman. by the rules, hpq. >> what if you aren't playing by the rules? again, meg whitman, 9:00 a.m. with david faber tomorrow. are tesla employees jumping ship. apple is aggressively approaching tesla employees to spearhead the work on the apple car, known as project titan. elon musk has claimed that apple offered them bonus as large $250,000 to leave the automaker. pete. >> it is interesting. i don't doubt they want to do something in the automobile world. i don't think they want their own car. and the chatter is talking about bmw and would they do something with them. that seems like a bigger possibility more and more. and get themselves into a position to finally start competing. we had the walkman and then the ipad. when you talk about innovation

and start looking at all of apple as it has gone through the maturity steve jobs led, it is perfecting. so can apple go after tesla in a way that they've gone after everybody else. everybody had smartphones and they come out with the iphone. it continues on and on. music. they come out with their music. they copy it but get it to the next level and that much better. >> you have to wonder what the thinking is for apple to go after tesla employees while you had google with the real car background and they are different routes and for apple you wonder since they are going into connected home if they see or foresee some way of making smart home smart car, one seamless experience which would be interesting. >> that would be fantastic, exactly. >> you go into the car. the car knows the temperature. because the temperature is in the house. it knows what music you want because you were listening to it in the house. >> i was thinking i could send my kids in the car and you don't have to drive them.

>> autonomous. >> google has the connected home. and they have google play. so google has you tube. so they could do the same thing on a parallel basis as apple is doing with the connected car. but to pete's point, people have more faith with apple in your car versus google for whatever reason that might be. >> up next fitbit. rallyings more than 3% after coverage last night with an over weight $37 price market. expected to grow more than 100% this year and today cleveland research initiated the name with a neutral rating. it was interesting is they did say apple is a big competitor. >> so what? >> exactly. >> i think they do believe the competitive angle with apple is overblown and the words were in quotes ridiculously fast is to describe the growth of fitbit. they are the number one player in the space. it is a crowded space. with margins they could go higher. >> do they have a ceiling

though. pete, do you think they have a ceiling? between the amount of time when the market is growing quickly to when it is a steady state and apple is -- >> it could be. but they've been holding on to market share pretty well. no matter how hard apple has trying to get into this market fitbit has maintained the market share. and international is the next growth for them. but the short-term interest in fitbit it is up near 40%. a lot of folks are fighting against this stock. they've been right because the stock has pushed down in the low 30s but there is room for it to make a spike. >> it is the same as go pro. they have a clear lead but do they have a mode. i think go pro does. >> and so you think fitbit does? >> i do. and the valuation is hard to get around. but strategically they are both well positioned. >> comparison is spot on. if you look at the last quarter of go pro, it was great. and stock performance was great and then it got crushed.

the second quarter was unbelievable. it was trading $55 in the post market and look at where it is now. i'm not sure if they have a mode but it is tradeable from the long side. >> still up ahead, goldman sachs saying the bank selloff is overdone. the one bank that does not need a bank rate hike to improve earnings and whether others agree. and here is what else is coming up on "fast." >> janet yellen warned last july that biotech valuations were a little too stretched. and if you heeded her warning and bailed on the space, you would have missed out in a big way. the top three gabe gain -- gainers since yellen's call and how the traders are playing them now. plus the option to scroll through your facebook feed and hit the dislike button? yes. it is coming soon to a feed near you. what it could mean for shareholders when we return.

hey! hi! our cloud - it's a platform based on awesome-ization!

really? can it keep our data where it needs to be no matter what country we're in? integrate with our systems to help keep transactions secure? combine customer data with likes, tweets, the weather to predict trends? that would be awesome. tote? now there's a cloud that understands business. now there's the ibm cloud. the fed meeting kicks off tomorrow and investors are curious to know if yellen will address the same topic she scolded about more than a year ago, stocks. back in july 2014 in a monetary policy report she said valuation metrics in some sectors do

appear saushlly stretched particularly for those in the small media and biotech industries despite a notable down turn in equity prices for such firms earlier this year. the xpi are up more than 30 and 45% respectively so which names red the rally. meg tirrell is here with the details. hi meg. >> hi guys. we have seen big winners since the july call. much to the delight of the biotech industry. and there are names we don't talk about much. the biggest winner since july of 2014 is ana corp pharmacy. it is up more than 700% and it makes things on a toe nail fungus drug and ex emma and these things are going well. and because it is in those spaces and it has these drugs, people think it is a potential

takeover target. you think of names like valiant which is competing with it in toe nail fungus and the other dermatology companies. >> don't make a joke. >> can i ask a quick question on that stock. >> sure. >> how big -- how big is that industry quite honestly. >> the toe nail fungus industry? well these are prescription products. and i was talking with eric schmidt and he was estimated that is 400 to $500,000 sales a year so mayorly a big market. >> not million dollar drugs. >> not by themselves but the market together and the over-the-counter products. so another big winner is radius health which went out on an ipo and eric schmidt said that one didn't get as much attention. since then it is up 400% to a

$3 billion cap. they are working on osteoporosis. and across the biotech, with a couple of products. the third biggest winner is am a care. and this is partnered with gsk, it has come a long way. and we did like at the biggest loser and that is therapy advance. they have had partners. they partnered with jfk and a drug failed on copd. >> so the theme for the winners -- why are you smirking? i don't know what you are thinking, but that is what i said -- and say. >> i'm a happy person. it's thursday night, it is beautiful outside. >> it is not thursday. >> it is tuesday.

>> it is always thursday when i'm here. >> thursday is stock therapy day maybe he got confused. >> well there is m&a possibility. and valuation, i think it is ridiculous and the stock has been absolutely para bollic. toe nail fungus notwithstanding i don't think this is a stock you want to get into it. i think pete and i talk about is the the gilead,sell gen, that is where i would be. >> i can't help but yellen say having tapes of us they are going to have crazy inflation, they don't know what they are doing at the fed. but that being said, the valuations do border on ridiculous. and as huge of a fan as i am of the face and there is going to continue to be more consolidation, it is so risky to pick one. we saw one the other day down from 44 to 9. >> that is right. >> i can't stomach that.

>> those are the bioteches we talk about all of the time. there is a differentation between the huge valuations and have no value. they don't have any earnings and you are basing everything upon potential in the pipeline. and then you do have the gilead trading at 10 times, am gen, cell gene and billion dollar drugs already on the market with pipelines, there is a reason why many of the names and a lot of us would sit on the desk and saying why is she delving into the biotech and it depends on what biotech you are talking about. >> the low was something like 333-ish and now 357 is where it finished today. >> and you said it in the leadup. it is up 16% ipb so you are hard pressed to find anything after the market has dipped. but all of the names pete and guy talked about, they are in

the ibb. this is not a binary way to play the events. you have to believe the market will stay here or move higher. if it doesn't, this is the one that cracks harder. meg, good to see you. see you thursday. still ahead on "fast," a new reason why the fed will not hike rates later this week. through the future of communication, facebook ceo mark zuckerburg had interesting comments on the space at his town hall event today. and we'll bring you the headlines and tell you what it means for the stock. much more "fast money" up next. can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.

it's more than the cloud. it's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next. excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere.

welcome back to show show. a market rally across the board today ahead of the fed. the dow jumping 230 points and s&p up and financials leading the way. and big news in the after hours session. hewlett-packard falling on news the company is planning to cut 25,000 to 30,000 jobs to save money. and we'll have an interview with meg whitman tomorrow at 9:00 a.m. eastern on "squawk on the street." and report that amc is in talks to buy the company star z. and chris albrecht will join

david faber and that is at 10:45 a.m. eastern time. here is what is coming up in the second half of "fast money." mark zuckerburg, will there be more of the same this time around. we dig if later on. but starting with the call of the day in the financials. we saw that group rallying today. goldman sachs saying that the bank selloff is over done. xof down 7% and the s&p 500 is only down 5%. goldman points to jp morgan as the best defensive play and bank of america as the best self-help play saying it doesn't need a rate hike to improve earnings. karen, what do you think of this call? >> i like it. it had the banks move. i agree. bank of america is a different story than j.p. morgan but

still not expensive relative to it self-over time. i like them both. >> do we have any -- >> and citi. >> and do we have a short of the yield curve. >> there is absolutely that risk. i don't think anybody can tell you where the yield curve will go. i don't think the fed knows where it is headed so how can we say. and goal man sacks to me is overdone. if you look at the trading volatility over this quarter alone, i think they're going to have another record quarter when they report. so the move from 215 down to 175 or so, i think the subsequent val raly will hold and it will trade back to $200. >> this is my fear. you could push us into an in verted yield curve, because you don't have the 350 basis point slap between short and long. so that is a problem. but another thing is when rates rise, everyone thinks it is positive for the banks. but we saw the chart, the smart board, the materials outperform. but financials under-perform.

but i found that interesting. so bank of america, which i am long, that call to me is really attractive. down 8%. that is the counter intuitive play as well and it doesn't need rates to move higher to rally the stock even more. >> which stock do you gitty up. >> i would like so tee jp morgan over the 200 near moving average and citi about a dollar away from the moving average. but i like those names. but i'm right there with guy. i think goldman sachs. and they had ever core and today it was guggenheim and we're talking about 10 pe and higher volatility and higher volume and the trading could be outstanding and a big number. >> and will they or won't they raise rates. the next guest has the reason the fed cannot raise rates. head of u.s. strategy larry, great to see you. people will say the economy and

volatility in the stock market and you say something else what is that. >> last time i was on the show in march, 70% of the street was looking for a june hike. and i disagreed for global reasons. and today i think global systemic risk is the biggest reason of all. but a creeping issue is coming in from washington. it is very clear that the gop does not have enough legislative days to pass a continuing resolution by the 30th of september, that is when the budget has to be completed, and that presents a very serious risk. so if you are a fed governor and sitting in your seat on thursday you have another risk to the global -- to the u.s. economy that wasn't there a month ago. >> and this sort of happened -- we saw this playbook happen in 2013. are there differences though between then and now in terms of why the fed might go ahead even though a government shutdown looms. >> in 2013, it is a good point.

we had a situation where bernanke told us they were going to start the taper in september. and so everybody was waiting for the taper in september. and they pushed it out to december. and at the time there was an alignment between the budget on september 30th and the debt ceiling. they were right on top of each other. this time they are about 40-50 days apart. so it is not as risky this time around. but in the end, if we do get a continuing resolution they would probably push it out just 30 days. >> okay. and let's say there is a shut down and that is the reason the fed does not hike. if the political bite heats up into december is it possible that the rate hike could be postponed beyond that? >> exactly. so if we push out to october and to december the ted cruz's of the world, they want to catch up with donald trump. so if you are a ted cruz and you've got the chance to really

present a ton of media alpha for your campaign by making a big, big problem for the rest of the republicans, you could see a problem in october and then toward the end of the year. absolutely. >> so connect the dots for us. how do you think the market reacts if the fed postpones an the government shuts down? >> well the best trades -- the best trades the last time we pushed the fed rate hike out, so from march to june the emerging market stocks were up 20% to 30%. oil, the u.s. was up 30%. brazil was up 30%. the gold miners were up 22%. so when the fed pushed the rate expectations out, emerging markets, utilities and commodities out performed the s&p dramatically larry mcdonnell thank you. we got a peek of the move in today's session, actually. >> you do.

and that is just standing the reason -- the reason that no one knows what to do. utilities are out performing and today underperforming. people buying the energy names. maybe they are rotating because of options or out of positions an back in. but i do know mutual funds are sitting on record lows in cash. people are exiting mutual funds in terms of redemption. so i think the market does not have the worst behind it. the fed should not raise rates. they are backed into a corner. >> okay the future is just around the corner. coming up we'll hear from mark zuckerburg on how facebook could change your friendships forever. much more on "fast money" straight ahead.

(vo) what does the world run on? it runs on optimism. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the

right way to invest... ...in this big, bold, beautiful world. welcome back to "fast." ceo facebook mark zuckerburg took questions from audience members. julia boorstin has the highlights. >> he revealed that facebook is working on a dislike button it hopes to start testing soon. they say this has been demanded for years. it is not designed for negative feedback but to help people weigh in on sad or serious news.

>> it may not feel comfortable to like the post but your friends an people want to be able to express that they understand and they relate to you. so i do think that it is important to give people more options than just like as a quick way to emoat and share what they are feeling on a post. >> he talked about the potential of oculus and virtual reality and expects it to help people experience places from all over the world like the pyramids and also to make people to places that are out of this world and help them experience things like a lack of gravity. he said vr is the future of communication that now while we're entering a golden age of sharing videos immerse of experiences, v.r. is the next frontier. he weighed in on other tech leaders saying artificial intelligence is a threat and he said working to improve facebook ai is in no need to be

reserved and it could help alleviate car accidents and the like. >> and let's bring in mark mahoney, a 105 price on facebook stock. mark, great to see you. this dislike button i don't know about you, i'm going to dislike this button to dislike things as in i don't like it. does this help keep users going, help keep them engaged, do you think this makes a difference? >> well i think zuckerburg i think he mentioned that it would be nice for people to have more options for emoting. outside of the valley we call that expressing themselves. and anything you do that makes the service more intuitive, as just as you watched your own news feed over the last year or two, you have seen enormous number of changes, that makes it easier to manipulate and interact with people.

and to show dislike or a different sentiment rather than just a thumbs up or nothing has to make the service better and more useful for people. >> and do you agree that v.r. is the next platform or the next screen so to speak? >> no. i don't have the conviction that he does on that. and there is two things here. one is that while it is great to help people scrape gravity, one of the problems with v.r. is that it often leads after extended usage to things like nauseousness and lack of balance. there are some real health issues and interface issues that need it be worked ow. whether it is five or ten years down the road i don't know. it is appropriate bet for $200 billion capital market plus to put out the money to have an option on virtual reality as the next platform. nothing wrong with that bet. whether it plays out, impossible to know now. >> he has such a strong conviction, do you think it will be a distraction. you don't think it will end up

being much. he thinks it is the next big thing. this t has to be a distraction of some sort? >> yeah. he's had a better track record of picking knew social medium than i have. so all i want to know is that whether he is right sizing the investment versus the opportunity. and again they paid $2 billion to $3 for oculus. that was probably a reasonable bet. like you tube being required by google for under $2 billion, a few years ago. those are good bets and hopefully doesn't lead to personal distraction. >> mark we'll leave it there. mark rbc. and obviously v.r. is not in his model. >> m.m. is not big on a.r. or v.i. >> yes. >> for me it doesn't make sense. what does make a lot of sense, snap chat instagram makes

sense. the fact they can pull levers and get a revenuetreme on a -- stream on a number of different things makes sense. and as $105 price target it makes sense when they report on october 27th. >> this guy has been right so many times. messenger, instagram -- >> so do you think it falls into the category for the next one. >> and he said appropriate in terms of size. $2 billion to $3 billion is what they paid for oculus. it gets them in a position that potentially years down the road this could pay off the way you tube did. >> in sports have you seen this being used in terms of coaching? >> i have not seen that part yet. but i don't know if it is that far away to be honest. it would be something that could be used yeah absolutely. >> i think it is starting too. when you start to see running backs or defensive backs starting to see the field better with these things. i've seen guys not publicly traded companies, to start testing them with professional athletes. but this is not a distraction.

google you could make a proof that this is distracting. and the three most important things you need to know ahead of the report. right after this break. you're watching cnbc, first in business worldwide.

it's from daddy. sfx: dad's voice i love you baby girl. duracell quantum lasts longer in 99% of devices so you can always be there. ♪ here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

oracle is on track to see the first positive month since april after tomorrow's bell. the managing director dan ives has a $44 on the tech giant and what to watch on our earnings edge. >> for oracle quarter, we are looking for three main things. one is cloud. that is front and center with the portfolio. investors want to see success on cloud. that is a key part of the vision going forward. the second will be a rebound from last quarter. last quarter was a disaster. the stocks had overhang ever since. we need to see a rebound on the core business and cloud for investors to believe that growth could be rekindled at oracle. and third is m&a. they have been radio silent

after aggressive m&a and that is success. they want to see if there is change of tone in terms of m&a going into the conference next month. net-net stock, negative on the quarter. we believe the guidance stock will be up after the quarter as investors start to believe that growth can be rekindled at oracle. this is dan oz for "fast money." >> dan was talking about cloud. and shares rallying today for rack share. mike is here with the action. hey, mike. >> so this cloud provider we're not seeing a lot of bullish activity which say 9 times the average daily put volume today. we've seen some bearish bets and one of those was rolled out to the options that expire october 2nd. they were buying the 31 strike paying $1.35 for those.

and that is bearing that the stock will be down 4%. so if cloud is the driver for oracle in, this name they don't think there is a lot of good going on in the space right now. >> thank you, mike. check out the full show options action 5:30 on friday. breaking news news on microsoft. kate has the details at headquarters. >> microsoft just announced it will be hiking the dividend buy 5 cents to 36 cents. this is a 13% increase. and microsoft is up about a quarter of a percent after hours. so hiking the dividend up to 36 cents. back to you. >> the yield prior to this rate hike 2.1%. >> i hoop google feels some need with microsoft and apple out there, that they should do something with their cash as well. >> do you think microsoft sees the most recent high of 50? >> yes. because i do think it is cheap. microsoft was up about 2.25% today so maybe somebody saw

something because that was an out liar to me. now it makes sense. i think google traded well. i think that wins to all of the things we talked about. >> do you see anything weird about microsoft? >> i don't see anything weird. but it plays into the cloud space. that is the movement. >> all of the rage. coming up next taders -- traders tell you what they are watching right after this. more "fast money." stay tuned. can a business have a mind? a subconscious. 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?

this just in: 50 million customers' data was not compromised this morning in a security breach that didn't happen. wall street. not rattled. at all. no. not at all. not at all. i mean, look at the day. sir. sir. what went right? what went right? everything. thank you. with threat intelligence behavioral analytics and 6000 experts ibm security will help keep you out of the news. my dad's company wasn't hacked today. cool. it's more than a network and the cloud. it's reliable uptime. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated responsive support. with centurylink as your trusted technology partner you're free to focus on growing your business.

centurylink. your link to what's next. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

time for the final trade. around the horn. pete najarian. >> watching very close und armour. pushing toward the $100 number. might test the high. giddy-up. >> netflix back around $100. called par in the business. let's see if it can hold on to that. still up 100% year-to-date. >> karen. >> i'm watching london shire. if you are out there, time to do something. >> and that was a giddy-up. can you do another one. >> pull it out for the last 20

seconds of the show. >> toe nail fungus. what happens to lion's gate after it 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 back to "mad money". welcome to cramerica. other people want to make friends, i'm just trying to make money. my job is to not just entertain you but educate you and teach you so call me at 743-cnbc. or of course tweet me me @jimcramer. we rallied beautifully but for the worst reasons,