seema, thank you very much. keeping our eyes on barkleys overnight, we'll see how it reacts as we get bank earnings, beginning tomorrow morning. thank you for joining us on "closing bell." let's hand it over to "fast money" right now. "fast money" starts right now. live from nasdaq, overlooking time square, i'm melissa lee. our panel today. traders are nervous heading into earnings season but one sector is a screaming buy right here and right now and we'll tell you what that is later on. and a big update from goldman sachs. there could be big trouble for the earnings reporting this week. and mike novo gratz stepping down from his fund. we'll tell you the name and the sectors that may have tripped him up in a special report. but the top story tonight and that is earnings. earnings season is here. we're calling it opportunity

season. so which names could offer you the best bet going into earnings. tim, kick it off for us. >> there has been a nice rally, but i'm looking at kansas city southern next week, these guys have a dismal first quarter guidance a couple of days ago and they are running into pressure both on call volumes and fx is a big deal and it is all about mexico and growth. the only rails don't have as much leverage. i think the peso is a tail wind. i think it way oversold in the e.m. blood path. so for everyone saying the sector would correct, the transport felt that they had bottomed and i stay with that even down the market. i think transports are bottom. ksu has bad news in that. >> could you get behind that trade, gee? >> it outperformed the rest and also the most rich in terms of valuation but i hear what timmy is saying but chesapeake reports tomorrow and csx and i think we

need to see what these guys and gals have to say. i'm not convinced there is a down side. >> what is your trade. >> amberage. they got whacked today. they report, i believe on the 15th as well. i think there is a good chance they will mit. sequential revenue is down 20%. the stock has bounced but i think you'll see the stock trade sub 70s after the report. then you buy it. >> so below 70. that is your opportunity. >> because you'll get the opportunity like you had before. this stock has been in a steady decline and i think post earnings will give you that. >> do you think we need an oil recovery. it bounced back last week and almost erased in one day. >> and the paper in terms of the options were short-term. i was out of the positions for the last week and a half or so coming in in terms of the energy

options that we've seen. is it temporary? yes. i like at the oil volatility index, 24-45. and back up to the 45. and back down to 47 from 50. just too much pressure right now and i think there is still a lot of pushing and pull flg terms of foengs getting -- pulling and terms of folks getting pulled back. >> would you buy it? >> i would. and we do need to see stability. it was a nice recovery, buzz remember august and september was awful. even if it hangs out for a while. then the big fames like shlum berger will get they are sea legs back, so to speak. >> what is your pick. >> i'm going back toward transport. and we've looked at delta and friday and today and now 5.5 to 6% move to the upside. american and delta is still the

best of the breed. i look at the name. i love what they are doing and the margin are showing strong improvements. they needed ma what they needed to do internationally. i think that will hit the bottom line as well. and when you look at fuel. still below $50. i think they do well with fuel up to $75 or $80 and now we're standing here at $50, from $40, i think they will crush it. >> you like the airlines too. >> i do. and delta, $48, $49, i think american has the most upside. and i think the sensitivity to oil is something that is too one brain cell. they were overdone on the way down and prasm -- passenger revenue average is better than we expect. we've already seen a recovery there. >> you saw the september prasm -- do i have to do it again. for jet blue, that was good. and that stock bounced today.

they report i believe on the 22nd. this is the one i've been behind. with the short interest in jet blue, i think this is a stock that can continue to rally. >> karen, your pick? >> i like j.p. morgan. i love jamie, but besides that. >> that was obvious. >> but this stock got hurt along with all of the backs. disappointment about the fed not raising. the valuation, ten times earning and a nice yield, i don't know how the quarter's earnings will be. we have noisy things coming out. but i think it is a good value right here. >> and you are giddy-up. >> i am. and i bought some calls in there. and this is a $70 stock, it was underneath 60 and back above those levels. when you look at this, they've done some cost cutting but i think jamie and the folks there, i don't think the numbers will be as bad as they predict in terms of the trading numbers and i think it goes higher. >> one sector says it could be a

great buy. we have the one sector to buy. what is it, ari? >> it is consumer discretionary. hands down, still the favorite area. we have the most conviction here. and by far, in a way, the sector with the strongest trend of all of them. especially versus the s&p 500 as well. here is the chart. let's start with the sppd. a couple of things to note, there has been damage done. broken a four nif year uptrend. notice it is below what is now a moderating 200-day moving average. so the index as a whole has a lot of resistance as it gets back to the first half levels. now let's look at consumer discretionary, the spider ticker xoi and you can see the much more stronger trend. one, it has held the uptrend. it is making higher lows. with the recent inflection, it is inflicting above the rising

200 day moving average. so over all here is a group with better momentum and less resistance and more support. the q1 levels resistance for the s&p levels support the discretionary. and along with that we have a strong trend as secondary confirmation, seasonal time of the year for discretionary and markets as a whole, strong in the fourth quarter. here are the sectors. consumer discretionary. you are second best performing sector, versus the s&p 500, above zero is average, outperformance since 1990, you have all signals pointing to consumer directionary and we think that is the group to own. >> arri wald at the smart board. thank you. so in terms of discretionary, there is a big earnings report out on wednesday, and that would be netflix. so is it all about netflix? >> i think -- i don't know if netflix -- in my opinion, i think netflix is a huge story. and think people will take their cues from this earning.

i still believe this stock will have a similar core to last quarter. the growth in the united states is probably slowing down. but the international growth is absolutely still there. i get the valuation is ridiculous but it is a land grab. plus think increase pries last -- prices last week by a buck. you didn't see the same move back in july of 2011 when they scared everybody and the stock reacted in kind. once again they are doing everything right and they have another great quarter. >> home builders and retail. >> if we go back to netflix again, i don't think they are a bell weather. i think they are taking share. i think when you think about the retail spaces or restaurants, i think the pie is getting bigger and netflix i feel is taking away dollars from somebody else. >> okay. coming up, a drug bust or a drug buy. could the drug setback for eli lilly create a stock market. why one of our traders is excited. and dennis gartman said the good times for one could be over.

he'll reveal which stock later. and hedge fund investor mike novo gratz stepped down and kelly will explain what may have caused the sudden departure. we'll be back with more "fast money" right after this. at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.

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within the last hour one of the biggest names on wall street, mike novogratzs stepped down as the firm is closing the macro fund that he has run. one of the biggest private eckity investment firms on wall street but the performance has been terrible perhaps because of bets on brazil. this is what he said back in july 16th, 2014. >> the story in brazil has gotten so bad, they are entering a recession, that we're making a bold call that dilma is going to lose the election come october. the alternative candidate has pledged to make flagas a finance minister. i think the bet there is stay long on brazil equities and

interest rate and they are going to start cutting rates again and as the poll shift to doma losing, i think big chance you continue to see outperformance in the brazil asset markets even in a time when their economy has gone to hell in a hand basket. >> they have last more than half of the value since then. kate kelly is on the fast line from a train. kate, thanks for joining us on the train and the connection may be -- we'll see how it goes. but in terms of brazil, do we know novo grates was in that more than summer of 2016. >> it is not sure how long he stayed in. buts it calls like that that caused the trouble to lent him to shut down the fund with multiple sources. fortress macro fund was conceived in late 2008 and at this point it has a a um of

$1.6 billion down from over $8 billion in its prime. so far this year through august, they were down 13.4% and down last year. they've consistently been an underperformer. >> okay. obviously kate was phoning in and we'll see if we can reconnect with her. in the meantime, macro funds over all have had a difficult time. it is not an easy environment to call, tim. >> it is a tough environment. the currency moves an the volatility in the macro asset classes have been the most surprising. as far as brazil, you were going into the election, where there might be a push into the path. it went up to 4.2 at the peak. so brazil is a disaster and trying to call the bottom, he is not the only one and this is a case where fiscal change wasn't happening overnight. >> figure is a publicly traded company. fortress investment services.

>> and this is a big deal. >> and oil. how many people got buried in that trade. >> and there is never just one. so fortress is a huge name. but is this the first of many or the first of one? i think it is the former. >> all right. shares of health care giant eli lilly getting smoked today. the company said it terminated late stage trials at a drug of combatting heart disease after trails failed to meet expectations. they say it does not change their ability to generate long-term growth. pete, was this an opportunity in your view. >> the problem is this was considered a blockbuster. and we're saying a billion dollar plus type drug and that is the problem. because this was in phase three and this comes to a halt and that is a huge problem. because that is what we're expecting. we're talking about pipelines. that is what people are investing in. lilly traded a premium valuation and you lose this major drug in the pipeline and now that is a problem. yes, they've got alzheimer's and other drugs in the pipeline, but

this is a biggie. and this gave the stock a huge hit to the down side. now the opportunity there is the 200 day moving average is 77.5 and today we popped right off of that and right up toward 79. i think any move again toward the 77.5 level, i think it is time to pounce back into lilly and bet on the next pipeline they have worked. >> it was a projected $6.2 billion in sales by 2025 and where does that money go and my thinking it would go to the canine drug makers am gen and regeneron, which popped in advance of what happened. >> and listen to what pete said about valuation. eli lilly is 42 times forward earnings. and you just mentioned am gen and i'll piggy back there. and this trades 13.5 to 14 times forward earnings. does am gen win? yes. but it should trade any way.

and it did hold the level. so if you want to trade it on the long side, you do it like he just said. today downgrading buffalo wild wings and dine equity and others. they are basically saying, the jobs numbers and the pmi numbers are not that great and even though consumers are saving on fuel, that is not enough. >> and what do you do inside of this space. the casual dining versus fast food, it has outperformed. and it was passed on to custs -- customers that were happy to do it. and if you look at that sector, the buffalo wild wings, all of them traded, 30, 35, 40 times earnings and that is a problem. i continue to go back to mcdonald's. i think in the value fast food space and even yum, that was my third michelin star when we graded the stars for the

companies and that company went from 83 down to a key level. so look for value and don't chase the high multiples. >> we have news on fmc corp. let's get to seema mody. >> fmc said it will cut 800 to 850 jobs and lowered the full year adjusted profit. hurt by the devaluation of the brazilian currency. the company expects full year adjusted profit of 2.35 to $2.45, lower than the initial forecast. shares are down better than 14 after hours trade. melissa lee. >> thank you seema mody. this is a huge decline immediately. >> this was an $80 stock in the summer of last year. we are trading 32.5 and it should be given that guidance. it is a big ag name. here you go. big volume tomorrow, which you will get and big volume is north of 14 million shares. if it holds the low we saw in

2011 which is around 31.5, i think you have a chance to take a shot on a long side. i'm not saying they fix anything by any stretch of the imagination. but the way the stock has gotten bludgeoned over the last year, given what will happen tomorrow, you might have a chance to play it from the long side. >> one trader upgrades goldman sachs, but we'll explain what has him so worried next. you're watching "fast money" on cnbc. first in business worldwide. here is what else is coming up on fast. [ singing ] >> we'll do better than that. we'll find you four stocks that should merge right now. and give you the names. plus -- that is what some investors feel ferrari may have done with the plans to increase production. tim seymour breaks it down in a special report.

big bank earnings get underway this week and we have reports from bank of america, jp morgan chase, and goldman sachs. the market has trailed so which would emerge as winners and losers. jim joining us from chicago.

and we're going to have you, if you could bank with us, rank the bank quality of earnings learning the scale of 1-5 money bags, with five bags being the best quality earnings and one bag being the worst. got it. >> got it. >> you're a smart guy. let's start off with jp morgan chase. reporting tomorrow after the bell. how many money bags would you gym jpm. >> let's start by setting the tone for third quarter in general. earnings are not going to be strong. i think the word is out on that. but earnings will be fairly weak because of the environment and we're below consensus across the board. now looking at jp morgan chase. we're putting a four bagger on this, one of the stronger of the quarters for two reasons. one, kind of looking in the rearview mirror of what happened in the quarter, we are the least below consensus in jp morgan. i think they'll have better expenses and it will lead to better results than some of the other guys post. but when you look at the quarter, you have to look out of

the front window to see what is coming ahead of you. i think capital markets will be a good thing going forward and jp morgan has growth in bank operations which aren't independent. so the combination of two of those things makes me think they'll do well tomorrow. >> next up, goldman sachs reporting thursday morning and you upgraded the stock but slashed third quarter earnings today. so how many money bags would you give the earnings quality? >> okay. so we put, just to be creative, 2 2.5 on money bags on goldman sachs. the quarter is going to be tough. i think the key here is the secret is out. everybody knows capital markets is difficult. an the thing that drove the cut in goldman today is a lack of gains on the private equity portfolio. when they have the gains, the market doesn't pay for it. i think they'll have a tough quarter. but i don't think the market will react too badly. and goldman sachs is really the key name to focus on if your looking forward.

we think capital markets are going to be good. this quarter slowdown is really a pause driven by a spike in volatility, if we have some stability, which we should, the stocks move better into the first quarter of next year and i think you need to look at buying the beat up capital markets now or by november as opposed to waiting because they will rally strongly in the first quarter of next year. >> and lastly, how many money bags does bank of america get? >> a low one money bag for them. if you look at bank of america versus banks in general. it is a stock you want to own. but when you compare it to the bank peers, i have trouble growing the top line and spaesive lick i in thspae spaesive -- in in this quarter, they take it up right. they only take prepayment schedule changes right up front. that will drive a low net interest income number we think versus the street. so we think the number they report is a big miss.

now it is an accounting convention and you could back it out and say it doesn't matter. but when you miss on a high profile item, the market will pay attention. as we look forward in bank of america i have trouble growing the top line. i think they'll get the expenses. but with the loan portfolio runoff they have, i struggle to find earnings growth unless we get a ramp up in rates. >> jeff, thanks for playing along. geoff hart of sandler o'neill. >> always fun. >> four money bags for jp morgan and 2.5 for the money bags and 1 for bank of america. do you agree with those. >> when i have jp morgan and citi. and what keeps me up at night is there credit exposure out there that we haven't seen yet that is going to surface. >> energy or mining. >> with a glenn core out there.

>> i think macro is weighing on sector but it is clearly about where you'll see higher provisions against the energy sector. and with the degradation of something already in the price, the time as a trader is important. i think citi and bank of america, you have to go back to .9 and 1 long for them. >> you are long on them. and ferrari stock price could be absurd when it goes public. or maybe not. tim seymour takes a spin. oil, gold have been on a terror but one could fall. we'll reveal which one after the break. much more "fast money" straight ahead.

welcome back to show show. the dow trading tight today, ending up 47 points. rounding out the first seven day winning streak of the year. and the s&p and nasdaq closing in the green. and energy was the biggest -- excuse me, energy was the biggest lager on the marks today. here is what is coming up in the second half of "fast money." ferrari, could it be bad news for shareholders. we have a special report and a test drive next. plus shares of twitter -- and i'm not driving by the way. >> thank god. >> shares of twitter getting

whacked today but we'll explain why some traders are betting on a huge run for the stock. but we start off with commodities today. it is a torrid week for natural resources. in fact, so crazy, we are declaring that commodities have officially gone wild. that is right. hide the kids because metals an oils have done smiths this week we can't show you on tv. >> whoa, naughty. >> crude is flat out crazy and investors can't keep their hands off of gold. it is a big storeid affair. >> keep it clean. >> but there is one man who kept a cool head it is dennis gartman with us now from virginia beach. good to have you with us. >> good to be here. >> so which rallies do you fade and which ones do you keep at this point? >> i think at this point, you probably have to fade the crude oil market. crude was moving nicely higher. it had gone down to $38 a barrel. it had gotten up to $50 for wti.

and at $50 for nearby wti which puts one year federal at about $45 to $55, that brings heathers into the market. if you were a banker funding in e and p producer, you told them you need some hedges put in. so what you saw at the $50 for the nearby, $55 for one year drever deferred was enough to bring them to the market. and then you have el badry, that production by open achad gone over 31.2 barrels per day and that was a high. >> dennis i'm confused. last week you come on the show and said you were never more bullish about oil. so what changed in the span of a few days? >> i think i said about a month and a half ago, i was never more bullish about oil. and the market was still going higher. not a question about it. but over the weekend, i tarted thinking about where we were at wti. i never thought we would get back to $65 again because there

is so much crude oil that has been drilled for. so many holes in the ground that have been put into the ground and capped, can be brought back into production. so you had el badry talking about the fact that opec production had gone up. and again i think there are heathers there. is there a low in for crude? yes. do i think we're going back to $83 a barrel? no. do i think we're going back to $75 a barrel. under no chance. at 55 things get sporty. that is probably as high as you can go. gold on the other hand wants to go higher. but for $55 in one year forward wtive, that is probably a high. would i be short of crude, no. i think don't think wise. at this .1 is either -- one is either buyer of weakness and crude is a good buy but there too many holes to be drilled and tom hedges that have to be a

seller. >> it thinks that these things are likely to be in place for a long time, is that right. >> i'm afraid they will be. >> so you are on the side lines for a long time in oil, that is the bottom line here? >> i think in crude oil, i shall be on the side lines for a long period of time. i don't want to be short of crude. it may be go lower. i doubt it. if you give it to me at 44-45 dollars, but then i would be a buy but this becomes a heather. an the hedgers will lay upon the market. it will take demand to move through that number. so had i to go back and say it was a nice run from $38 up to $50 and that is a sizable move. i'll go to the side lines. gold i'll be interested in. but crude oil has lost my interest. >> got it. dep is, thank you. dennis gartman of the gartman letter. let's talk about this. dennis who is more of a trader than probably the average person is in and out like that, then it

seems like the bottom line is an average person, a regular investor out there, should not touch the thing. >> but listen to dennis. if he gave you a trading range, if he thinks we've hit our bottom and $75 is the top so i think energy shares are higher. in the short-term, look at what the mining shares did over the course of two weeks. you had 40, 50, 60% real moves in tech resources, still water mining, et cetera. so that is what you do. the double bottom was put in on the miners and then buy it and make the list. but php, i would buy on another 5%, 6% down. >> when you heard that range, were you thinking bullish oil stocks? >> absolutely. i'm not sure we're on the same page on that whole thing but he is essentially saying 44-75 is what it looked like and here we are at 50. our only $6 from the low end of what he is talking about. so i would be more bullish based

upon that. >> based upon that. but i think there is another leg -- and pete can speak to this and i don't want to get in pete's lane because it is crowded. that oil index has been exaggerated to the upside. elevated for quite sometime. up 5% today. it has been up as crude has been going up which has led to me believe there is another leg down in crude. and you have companies reporting toward the end of the month. chevron on october 30th. you wonder, you have to wonder, with the dividend closing in on a 5% yield, things have not gotten great in their world. something has to give at a certain point, one would thing. >> well commodities aren't the only week of big games. chinese stocks gain more than 3% and the next four days are pivotal for asia stocks. seema mody is back at headquarters with the look at the market moving events coming up in china. seema. >> melissa, the rebound in oil prices and weakness in the

dollar and the reduced fed rake height have contributed to the emerging markets. but it is a volatile ride. index falling 17% in the third quarter. brazil, russia and india down so far. and in the fourth quarter, russia is the stand outs due to the rebound in oil prices. but is the data out of china that could change the story starting with trade data tomorrow. a look at the import-export picture will see how much activity is falling. inflation on wednesday will tell us whether china is dealing with deflation and bank lending. a good idea of how healthy the consumer is and whether they are taking out loans will come out on thursday. and this could reignite the china growth squares and that could weigh on the broughter pack. it could prompt the chinese to devalue the currency again, which couldn't help in the

retail and the auto space that rely heavily on china. melissa. >> seema, thank you. and this is not the consensus view at this point, tim. >> no. and china got what they wanted. the entry into the sgr exchange. but seema brings up a good point. the volatility is down in china and you can't fall asleep at the switch. we have the community party plan coming up and this is a beg deal and the data which is a big deal. if you look at bobba, this is how you want to play china here. these things have rallied as the overreaction to china, which i think it was and the devall, we've seen the biggest so far. >> and could there be another megadeal around the corner. the traders weigh. and what could be the biggest ipos of the year. ferrari. >> i'm tim see four more "fast money" and today we're checking out the power of the ferrari

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welcome back to "fast money." ferrari is expected to hit the market with a $10 billion valuation.

ahead of the big public debut, tim seymour took a ride to ferrari. >> i'm outside of the headquarters here in englewood cliff, new jersey and we're going to head inside and look at the new models. i'm here with the vp of after sales of ferrari. i'm holding the key to the model california t. who is buying this car? >> the first time buyers. it is a new way, it is a in upper -- they are approaching ferrari for the first time. >> and what am i paying for this car. >> you are paying for what you get. you are getting a ferrari, you get the exclusivity and performance and the basic price is below $200,000. >> can we take this for a spin. >> sure. let's go. ♪ shut up and drive >> zero to 60, 3.6 seconds.

>> that sounds like a speeding ticket waiting to happen. >> can you check your stock charts? >> this car is equipped -- it is connected an cheg your stocks but now we have to drive. and the turbo response. >> oh, yeah. feel the turbo. >> that was fun. where do i buy one? >> it looked like you and enso were hitting the clubs later. how come you weren't driving. >> they ran my license through dmv and -- no. a lot of risks given a novemberic like myself. >> i car that is $200,000. >> that car knocks your socks off. it is truly ferrari for the mainstream which is a joke but they are doing amazing things. >> let's bring in robert frank for more on the story. and part of the story is the

exclusivity of the cars. they only make 7,000 but that is going to change soon. >> across all models. >> that is right. across all models. and the company started the ipo road show today in midtown in st. regis and they said we're a luxury company and not a car company and we should get a multiple like air maze or prada. it is three or four times bmw. there is a lot of reason to be skeptical. number one, it is expensive. an you have slowing growth in the emerging markets and you have competition and the formula one team is having a tough season. but how many companies can sell a $250,000 car and have a two-year waiting list. i mean, the pricing power of this company, they are in third gear. if the car you drove was seven speed. they are in like in third or fourth gear. among the richest consumers on the planet.

they have so much pricing power and market and they can still run but the question is how to do that and maintain the exclusivity. how much does it cost? well it is a ferrari. who cares. well that can only go for far. >> and for prada and if you went to those meetings, who will cover this stock? is it the ford analysts? because that is going to determine the prism through which the valuation is determined. >> it is the car companies. and the only point about the expanded production, they are going to 9,000, that is still a small number but the collectors and owners of ferrari, you can turn it in next year for about the same price because there is such a long waiting list and so much scarcity. if they expand that by 30%, current owners and collectors were calling me all day saying my values will drop because they are expanding productions and shareholders want what they want, which is more growth and production. they will pit shareholders

against oeshz and -- owners and that is the tough balance going forward. >> thank you, robert frank, our wealth editor. i don't know if he's been here. thank you for being here. how would you pit ferrari? >> how would i position it? >> yeah. gm, ford. >> tesla. i think for that -- for the luxuriness of it, the exclusivity of it and it sounds like tesla plans to have many, many more cars. >> with the model three. >> and fiat is the owner right now and they are spinning it off. they will still control a majority of it. >> gee. >> jim looked good to me. >> not bad. >> pocket square. enzo. >> tesla, so no, you have to be fair and honest. i thought that tesla would hold at 225 level, it broke today. now what? well does it now trade back to the april low of 181? they don't report until i think november 5th and now the stock

might be broken. you play it through option which is the reason why. now you have to be careful. the only time to own it is to close above 225. i'm not trying to get above either side of the trade. the technicals suggest it is broken. >> all right. we have to go. shares taking a hit at twitter and why some traders are making a big bet on the stock after the break. and next, a announcement from a retail and karen has the fine print ahead. you're watching "fast money" on cnbc. first in business worldwide.

welcome back to "fast money." retail giant macy's announcing the sale of the top four floors of the downtown seattle store, a move which netted them a $60 million profit. but karen said that could be a bad sign for earnings. and she spoke to a rep from macy's. what is the fine print. >> when i saw the release about the 60 mrls gain, it is a pretext gain, and it said this was already in the guidance. so i went back and i didn't think this was in their guidance. so that made me think, that is actually kind of a miss of about $0.10. now the -- so then i thought what if they do more of these

and they are already supposed to be in the guidance. then it may be even more of a miss. so i went back to the company and i said i'm reading this very different than you are. to me, it seems like these gains are actually taken away from what we view as operating earnings. the company said we don't like at it that way. we've said we're doing real estate transactions and we see that as an ongoing part of our business and which i have a problem with. to me it seems like a recurring, nonrecurring and i'm hesitant to put a multiple. we have a big disagreement here. i love macy's. i think the management is a-plus quality but i don't think they've done a good job of giving the street guidance of where they are. it is very opaque and which is very unlike them and we have a disagreement of how one should value on going real estate transactions. i think they need to understand people what is involved. if this is in the guidance

already, we don't know what real estate transactions are coming up so how could i possibly know how to value them but they are saying it is part of the ongoing business and we've given you guidance. >> so you are long macy's? i'm long. >> the idea it might not just be the one sale, it might be the other sales. and i don't feel as comfortable looking at real estate transactions as an on going business to put a multiple on when others don't do it. and part of what we do is an vise versus others but i love the company but i have a disagreement on this with them and it is a big deal. >> the stock down 1.25%. it is stock mega-merger money. the biggest tech deal of all time and how does this stack up to other dials this year. josh lipton has the details. >> even before the news today, we've said headline making tech

deal this is year. let's break down the biggest that were announced. back in march, chip maker mxp semiconductor and free scale announcing the $40 billion merger. the deal that will expand their reach in chips for cars. then in may, avago will acquire broad com. this combination is going to provide the most diversified communication platform in the semi industry. and in june, intel agreed to by altera, that was an all crash transaction valued at $17 billion. maybe we'll get more color on that. intel reporting tomorrow. some analysts like pacific crest argue that some of the same kind of mergers in the semiconductor space, they will see that ram up up in the i.t. market. because many of the companies, where they are selling storage

and services or networking equipment, strong cash flows and cheaper valuations so that could mean a wave of consolidation is coming. melissa, back to you. >> josh lipton, thank you. so what two companies do you think would be a match made in deal -- heaven. tim. >> i think coke has taken a bite. they need to figure out what to do in the food and beverage space. i know green mountain is on the skids but this deal makes sense. >> pete, what do you say? >> i'm going to put together the international -- intercontinental exchange, the ice and match that up with the cboe. i think these two exchanges have huge power. >> it is the ice. but it gives them exposure into the options and makes the largest option player in the world, on top of futures and swaps and stocks and all of that in the $26 billion company, i think that would be a great fit. >> karen.

>> i'm going to the luxury space. i think sutherbys should be acquired by louie vuitton. it is a very prestigious property and they have hugely overlapping customers. arta miscontrols sothebyez and i think they should acquire them. >> and i love that by the way. crm, sales force, that is about what it would be, a 65-70 billion dollars deal. ibm, instead of buying back the stock over the last five or ten years, they could make a acquisition, this could make perfect sense for a company that is on the way to zero. >> music is so disturbing. moving on, another name drawing take over speculation is twitter and today someone bet over $5 million that this could soar within the years. mike has all of the action. >> it was the january 2017,

calls, long dated, it would have to be up more than 30% and they spent 10,000 to buy that. one of the largest bullish stocks we've seen today. >> that music. i think mike likes it. for more "options action," check it out 5:30 eastern on fridays. and he nodded his head in acknowledgment. coming up, what the traders are watching for tomorrow. stay tuned. 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. 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. why should over two hundred years of citi history matter to you? well, because it tells us something powerful about progress: that whether times are good or bad, people and their ideas will continue to move the world forward. as long as they have someone to believe in them. citi financed the transatlantic cable that connected continents. and the panama canal, that made our world a smaller place. we backed the marshall plan that helped europe regain its strength.

and pioneered the atm, for cash, anytime. for over two centuries we've supported dreams like these, and the people and companies behind them. so why should that matter to you? because, today, we are still helping progress makers turn their ideas into reality. and the next great idea could be yours. a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable, professional. would you trust me as your financial advisor? i would. i would indeed. well, let's be clear here. i'm actually a dj. [ dance music plays ] [laughs] no way! i have no financial experience at all. that really is you? if they're not a cfp pro, you just don't know. find a certified financial planner professional who's thoroughly vetted at letsmakeaplan.org. cfp -- work with the highest standard.

we don't have that music. time for the final trade. tim? >> emerging markets has talked about a nice rally. play the pull back and buy them but the bottom is put in. 34 in the e.m., you are a buyer. >> pit boss. >> i think the flight area, i'm flying with delta, think it will fly higher on wednesday. hee hee. >> and we talked about it already but i like jp morgan chase for earnings. >> gee. >> good luke to mets tonight. tim is a big mets fan. soity field, i know.

eli lilly. >> oh, there it is. it's back. what a way to end the show. i'm melissa lee thank you for watching. see you back here tomorrow at 5:00 for more but anywhere, "ma with jim cramer begins right now. my mission is simply. 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 save you money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or tweet me #jimcramer. when something happens that isn't supposed to happen, there are big