quarters for the company. they said there was broad market turbulence and the bad news for investors, she said it has been a reasonably quiet start to the fourth quarter as well. we'll have more from the analyst call starting in a few moments. >> thank you kayla and mike. and that does it for us on "closing bell." and more from the "fast money" crew starting right now. >> "fast money" starts right now. overlooking time square i'm melissa lee. breaking news coming out for jp morgan. josh lipton is monitoring the intel call and kay lor is on jp morgan. meantime, be here for us for the hour. and later on is a bombshell about to be dropped on biotech tonight at the first democratic presidential debate. the sector got creamed. we'll head out to the stip and hear from john harwood. and normally jp morgan would be

the lead but we'll start off with the story that just broke, san disk is exploring a potential sale and has seen interest from mike ron and western digital. shares are all higher in the after hours session. seema has the details at headquarters. >> that is right. san disk may be looking for a buyer. they are working with bankers to explore a sale and maybe drawing interest from mcron tech and others. this year free scale and nxp and avaggo and the $15 billion bill for altera. shares are higher -- well they were higher in after hours day. that might be the -- there you go. after hours, up 11.5%. >> thank you, seema. it is interesting that western digital is in the news. it raised $30.7 billion by

selling a stake to a chinese company. where do you see the consolidation now, tim. >> they were talking about doing something with hp in terms of the secure memory. we know where the memory is going and where the maeshlgs have gone and they need to do something and you are where the valuation has gotten interesting. so consolidation is where many players can shore up the pricing levels in the industry. >> no one is focused on that. it is about whether or not they get taken out. mic ron, they have a ton of debt. there is no reason -- i don't think they have the capable to step in and make the acquisition so it is interesting, melissa. >> are we thinking too narrowly in terms of western digital and mic ron. >> it could be somebody outside of that. those are the names that came up

when somebody was searching out the whole story line. but absolutely, melissa. there are plenty of names out there. and san disk was a $100 at the beginning of the year and hovering around the $50 and we get the partnership, the news the one piece of it and then they are working with banks. this is an amazingly fast recovery if you want to call it that, in terms of the stock price. but if you look at where it came from, even under a take over scenario, what price will it be and is it close to january and i say >> the bigger takeaway is it keeps the sell appreciate away. >> for now. >> and how long does that last. one, two, three days, who knows. and mic ron down 40% year-to-date and western digital and others down 30% year-to-date. nobody is going to rush in and start shorting the space,

especially worried about m&a activity. >> morgan stanley looks like a genius. they updated on that. that was a nice call for them. and intel, the stock giving up gains in the after hours. let's get to josh lipton in san francisco for the latest. josh? >> reporter: well you look at intel stock and it had popped 30% off the 52 week low. the company did beat on the bottom and the top. you look at chips for pcs, the bulk of the company's business. the street did not expect much there. but retch of $8.5 billion in the division did beat analyst expectations. chips for data centers, remember that is a big source of optimism for intel bulls. the data center has to grow strongly to o set the challenging pc market. data revenue of $4.1 billion and undershot what the analyst were looking for.

call getting started right now. i'm going to hop on it. and see about pc demand and the color about the deal for altera. back to you. >> josh thank you so much. for intel it has been a great 12 months compared to the semiconductor industry. but to date it has been beat up. >> when you look at the group, the $4.5 billion number is still off 12% year-over-year. they are looking at where the growth will be and fact that the pcs was better as awful as everybody expected i look at this quarter as impressive. but is a lot of that already built in. you look at where it was a week and a half ago, it was well underneath the average and it mas made a spike and now we're at $32 a share where we close coming in. >> let's bring in analyst chris roland. he has a $38 price target. and he joins us here listening to the conference call on the

red phone. pete was making a rechblgs to the -- reference to the data center and we're seeing 10% growth in revenue and we didn't see that there. >> no. it was weaker than expected but the story is well on track here. this is really starting to hit critical mass for them. 2017, street estimates have this group at about $20 billion. that is approaching 40% of the company's total revenue over all. and this is something growing double-digits with 85% gross margin and more than 50% at margins. it is a gem and now it is a large gem. >> are we seeing impact from sky lake yet? >> yeah. sky lake has been kind of an up and down situation for intel in terms of inventories overall. we saw inventories for pcs taken down in the second quarter. we are now seeing the tail winds from the inventory restocking on

sky lake take place now. it is too early to say whether this will be a home run or even a double. but so far, this quarter looks pretty good. the guide looks decent. >> and chris while you are here, we have to ask you about the potential san disk deal. could you see any of the companies welcome back theithin the area that you cover be candidates for acquire. >> sure. after the altera announcement intel buying altera stacks in the industry were consolidating at a rate of 32% in 2015. one in three semiconductor names were going to get taken out. now the bankers took the summer off. that number is now in the mid-20s. but that is still rapid consolidation. i can't remember another industry consolidating this quickly. so absolutely. every stock is in play. >> chris, we'll let you get back on to the conference call for intel. do you think it is a buy here. >> no. i think it is a sell here. from a consensus long to a

short, and we saw the shorts unwind. they took the stock higher into the print. i think the quarter is okay. i don't think the stock will get high at all. i think $34, this stock hits a wall. so i would be careful getting long. i think you are better off selling at these levels. and let's get to jp morgan falling after missing earnings estimates. let's bring in kayla who is on the conference call. >> we were expecting $1.37 per share and we got less than that for jp morgan on the bottom line. on the top line it was a slight revenue miss. but for jp morgan which will set the tone for the rest of financials, it is certainly something to watch. there are a few high level takeaways from what we saw this quarter in the earnings. we did see core loans grow 15%. we saw they gross margin in autos and credit cards and across the board. the ceo jamie diamond on the media call called the credit exceptional and marianne lake

said the credit demand is continuing to improve. but that didn't cancel out the fact there was lower revenue, and thick revenue down 11 pearce year-over-year on the media call. and lake saying it is tough to make money in credit, in commodities, especially without a catalyst on the rate front. of course that looms large for a bank like jp morgan that makes its money on interest rates. when asked whether the bank's strategy would change without a interest rate hike in the third quarter and jamie dimon said no. and we'll see more on the analyst call which is underway right now. and this is something you covered closely, glenn core the executives were asked about the exposure to glenn core and they would only say that the exposure was reasonably modest. but with all of the talk about turbulence and volatility in the market. first net outflows for jp morgan

asset management in over six years, it is not the end of the story there and you bet melissa, there will be more discussed on conference call. we'll have more for you from the conference call in just a few moments. but for now, back to you. >> kayla, thank you so much. that is an overhang. to use language like relatively modest exposure, that doesn't soothe my concerns. >> it is still an overhang. and that is what is hanging over the entire sector. i would give you that a bigger impact on what is going on with pricing in the seccor versus the expectation of the fed. the fed stepping back from 25 bips you cannot contribute that to the banks. jp morgan still attractive. and the numbers are still fine. and the asset management is going to be across the street. if you look at the outflows it is movement in nav. the stock market was down. and players haven't seen this in six years and that is a story for the sector. >> and that would be a morgan stanley cup.

>> and a wells fargo issue. anyone with a sizable wealth management business. >> on the flip side the loan growth could be good for jp morgan or wells fargo, and that is bad for goldman sachs. >> when you look at it down 13% year-to-date guys are playing the catch up play. and i wouldn't count jp morgan out. it does not spend time below the 200 below average. >> i would be a buyer, but i already own bank of america. >> biotech is getting hit hard as the first presidential debate is getting under way. and intel and jp morgan headlines from both ceos when we come right back. stay tuned.

democratic presidential candidates are just hours away from squaring off in their first debate. cnbc john harwood is live in las vegas where biotech and drug prices could play a role in the showdown. john? >> well we'll see how much the topic comes up tonight. i won't expect a great deal of difference on the issue. although bernie sanders, the socialist in the case may be more inclined to support price

controls. you have do have issues in the trans-pacific partnership. president obama sought 12 years of patent protection internationally for patented drugs. the agreement ended up at five which the democratic candidates on stage tonight will like better. but you still will see complaints that is too much patent protection. you could expect the candidates to agree in their criticism of the hedge fund operator who raised the price of the 62-year-old drug used to treat aids patient who became a poster child about what people don't like about wall street. but i'm not sure how much sharp division you'll see among the candidates tonight. >> so all of them ganging up on the drug industry if it comes up? >> well it depends on what you mean by gapging up on the -- ganging up on the drug industry. but certainly criticizing where they think undue profits are being made an the drug industry

will argue that the profits are what pays for the innovation that produces break-through drugs. so there are two sides to the debate and i expect the democrats to emphasize the shortest amount of patent protection possible in order to keep prices down. >> john should be a fascinating debate. john harwood in las vegas. we should note the next republican debate is here on cnbc, october 28th. coverage starts at 5:00 eastern time. you don't wan to miss it. meantime let's get to meg tirrell who is back at headquarters. and we're talking about it because if you look at the tracks the biotech or health care sector into the close, there was a selloff and fear going into the "closing bell" about this. >> yes. and whether the candidates agree with each other or not, if they mention this this will weigh on the sector. the ibb closed down 3.2% today. on concerns this is going to come into focus.

and of course we always remember at the end of september, the tweet that killed the biotech industry from hillary clinton. she cited a newdrug that john mentioned from touring pharmacy calling it price gouges and it is outrageous and has laid out a plan to take it on. and the biotech industry down 16% so a lot of fears over what is going on. and the ceo of the that company not backing off and trying to engage with some of the leading democratic candidates on twitter just last week tweeting bernie sanders saying he doesn't understand health care and i hope he debates this topic with me instead of relying on sound bites and cheap shots. and tweeting yesterday, i have an important question for you. get back to me whenever. that question is whether they should lower the price of the medicine or use the funds to develop better treatment option

for patients. he did say after the brouhaha he would lower the price and so far we haven't seen anything on that. >> and what is interesting, the analysts come out and will highlight the likes of a bio gen or gilead saying they are too cheap here but the commit undercurrent will make this a volatile trade. do they acknowledge that at least. >> yeah. i think so. and there is a interesting thing called zaf gen, no news and it was down 30% because folks were worried it backed out of a conference. and three months ago that would be deemed as maybe there is good data but now that is bad news. and you can see how everything is trading on the sentiment. >> thank you. very much. if you look at valiant, it closed at the dead low of the session here. >> i think you are in trouble here. you pointed out with the start

of the show with the intra day reversal. this is a populous belief in the celgene celgene, am gen and gilead those are the names that ros on ate but if you are if the hmo space, you are safer there than any elsewhere else like merck or pfizer. those are long-term, but near term you will suffer in biotech. >> which will you defend. every time you come on i have to defend. with every single tweet. >> that is right. $300 in the ibbs, i do love them. if you are a buyinger are you going to see there in front of a debate and buy stocks. no you will walk away. so the increment alibier wasn't there today. the fundamentals haven't changed. hillary clinton couldn't do a thing. there is a congress that is controlled by republicans and even if a democrat gets into office it will take them three years to make any changes, out of proportion here.

>> [ inaudible ]. >> and earnings will come out and the big cap names will report great numbers and you're going to see this group shift in a way that will be meaningful. >> you can make a case now that these on a fundamental basis are cheap but still the undercurrent is going to exist. >> and i'll tell you what just real quick, the lilly news just the other day, we watched the r&d that goes into it and in phase three you lose that is what doesn't get enough publicity as well. the cost to develop the drugs. unreel. >> coming up next. shares of jp morgan and intel lower in the after hours session. intel now at the lows of the session. bound 3.7%. conference calls for both underway. we'll bring you the headlines on those. you're watching cnbc. here is what else is coming up on "fast." >> the fall of the hedge fund legend. >> stay long -- >> well it looks like that didn't work out. but novogratz isn't alone. we'll tell you the other titans

that are missing the mark this year and the names that tripped them up. and what does one of the biggest media ceo's think of amazon and netflix. >> they essentially dumb pipes. >> and that is not all he had to say. we're giving you rest ahead on "fast." ♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five but now is a good time to get the ball rolling. keep in mind medicare only covers about eighty percent of part b medical costs.

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earnings alert on linear technology. to seema for the details. >> they specialize in integrated circuits delivered earnings that met expectations a. 46 cents a share. and same with revenue guidance and that is the reason shares are higher in after hours trade about around 3.5%. but linear tech has not been a year. the stock is down 7% in 2015. largely due to those china worries, back to you. >> thank you seema. and there was a comment i thought i would never here in this show that linear was a bell weather for the economy. >> the big is auto and industrials. so in general when you look at the commentary out of this company and how important the earnings are for an overall economic sentiment play i value

that. and that is why i brought it up. >> it sounds like your dancing around the bell weather. but i will move on. >> that is a steel trap. intel. we highlighted this before. falling hard after hours. just about after hour session lows. chris is here on set. why did the stock take a dive? >> they had a revelation. and that was data center is not going to be growing at 15%. instead, they guided for double-digits -- lowe double-digits. again the growth engine for them is not going as fast as once expected particularly given the stock move from 28 to $32, it is a less than perfect quarter here and they really needed perfection given that stock move. >> do you feel like intel is let of an outperformer given the guidance on data center?

>> it is a revelation. there is no doubt about it. overall, i still think the company with grow double-digits. that group -- and again that is the end of profitability. moving forward, i still see $20 billion by 2017 which is an achievable number critical mass and i think the stock with base probably tomorrow and move higher from here. >> and thanks for that. and do you change your basis on that now? >> we talked about 33 and 34. data center has grown 12-14% over the last five years. watch it hold at 31. if it does. you consolidate your buy. >> are you still long intel, pete in. >> i'm not. but i like the direction they are making. >> all right. let's get to another alert. this time csx. >> so it has popped and given back a little bit of the gains. up about a percent in after

hours trading. about 1.9 million shares have traded after hours. the rail company, the first of the big ones to report. they posted lower quarterly results in terms of profit and revenues. revenues driven down by slump coal value. earnings did beat expectation thanks to cost cutting division and they expect domestic to decline due to 2% due to the low natural gas prices an the high inventory. the headwinds are expected to continue into the full year of 2016 as well. they are still targeting full year, this year expectations for earnings growth in the mid single and dids. they are down. they are giving a 1% pop. the conference call is tomorrow morning at 8:30 a.m. eastern time. back over to you. >> thank you, dom chu. >> and it was a tough day for the transports given riders

preannouncement yesterday and a big downgrade for jet blue where do we go on railroad and transport specifically. >> i think it is good that it is up 1%. coal has been out there for ever. >> but they are in the price. isn't that the point. we know what the problem is. i think the whole sector bottoms a month and a half ago. >> and even on a fame like csx. encouraging, i would start nibbling if i want to take a bet but i still believe the over all market comes in but it is priced into a stock like csx. >> coming up hedge fund hitters and the bad bets. behind the names that hurt the smart money the most and whether there is any opportunity in that break. and jp morgan shares moving lower in the after hours session. we'll get the latest headlines from the conference call when we return.

welcome back to "fast money"ment i'm melissa lee. the do you heading lower into the final hour of trading. down about by 50 points. breaking a seven-day winning streak. and the nasdaq and s&p in the red. health care and fuft rales were the two worst performing sectors today. and major after hours movers both moving lower.

we'll keep you updated as they wrap up. here is what is coming up in the second half of "fast money." a ceo coming out swinging at netflix and you won't believe what he called the streaming giant. and delta trading higher after the past 11 reports. we'll tell you why traders are betting the stock will take off once again. that is later on. but first we start off with the smart money. tough month for the whales. mike novogratz will exit the firm and close down the fund after two years of losses. but fortress isn't the only one missing the mark. let's get to kate for all of the details. >> melissa, you are right. there is so much focus on the shut down and the departure of noto gratz. but there is a continuing downturn in macro and commodities strategies, this year and last. a number of firms like paul

tutor, btive and even lewis bacon's fund have had a tough time as well. not as bad as novogratz. just taking a quick look at funds seeing major red inc. aftonbeck capital, he is bullish on oil despite what ti has done and brent, as well i should add. the mer kmant commodities fund. one of the single best performing funding in 2014. they called the route in brent and ti that would happen after the opec meeting in november when production remained high. they are down 11.3% so far this year. tudor, essentially flat but they have talked about how difficult it is to trade macro which is currencies, commodities, bonds, equities and all of the above. but when central banks are unpredictable, the market has move on a dime and he's had trouble navigating that. and fortress macro down 18%.

if you look at the whole industry, the numbers aren't so bad. but you can kind of see in the broader sense that some of the strategies are suffering as well. the average hedge fund down 1% in september, year-to-date to more than that. the macro fund slightly up in september. down about 6% year-to-date through that period. commodities roughly the same. so it is just a hard time to navigate, melissa, i think you're seeing the real experts are real track records just as novogratz did, finding that as they go. >> and it is just no on the macro side. but i imagine some of the long-short funds have had a difficult few months because so many were concentrated in sun edison and valiant, just to name a couple. >> that is right. and it is no accident, i'm sure that you mention those. because david einhorn green horn capital, one of the worst

according to hsbc that puts report. and they are known for being long on the short-term and long side and they have gotten hurt on energy plays. you mentioned valiant. that is a well know pershing square stock and they had a rough go of it as well. dan lobes, i think is slightly down. not as bad off as some of the other ones i just mentioned but it is a struggle for everybody. now tech and health care according to the indices is one of the few strategies that is a couple of points in the black. there are other pockets of strength. but up until the recent report shorting was one of the only successful strategies. it is tough to know how to play it at this point. >> kate, thank you. kate kelly, joining us with that. tim you are a heblg fund manager ande before. >> think about the consensus rate and look at the dixie. closing at 94 and change. well below levels people thought they would be. and i think the volatility in the other asset classes.

two to flat i think good for them. especially the way they are trading in the market. >> and let's switch to jp morgan. it is half-way through. let's get to kay lar in the newsroom who is monitoring the newsroom. what is the latest? >> a lot of talk on the call about a $2.2 billion one-time tax benefit related to the financial crisis that is muddying the numbers a little built. so hopefully we'll have more clarity on that. the executives lake and dimon talking on the call mostly about the strength of the business not surprisingly that loan balances are up across the board and talking in a very bullish manner as they often do about the strength of the u.s. economy. where the tone changed is when they started talking about the markets. in particular cfo marian lake said the investment bank is suffering from macro headwinds that are not going away. stock issuance has slowed to a halt. and so many borrowers refinanced

and don't need to. there were fewer deals in the third quarter. the pipeline on the deal front was strengthening and the fourth quarter would help the bank to record investment banking retches but here -- revenues but here is what she said how we should look at the market and the trading for the current quarter. take a listen. >> so far in october, across asset classes, the markets are pretty quiet. we're only two weeks into the quarter and it is too early to give guidance, but based on that alone, analyst estimates appear high. >> that is not something you hear a cfo say. so we hope to have more for you. analysts are asking follow yif up questions and asking her to follow up on that fact. and the bank costs are in focus and the outlook appears to be a little bit better than expected in the fourth quarter. so as far as the outlook goes. that led analysts led to ask

whether the bank was going to far and stop investing in business and cutting muscle instead of fat and here is what the chairman and ceo jamie dimon said to that. >> i have spoken my whole life about good and bad expenses. bad expenses are waste, things you don't need. you don't have trade-through processing and things like that. but we want certain expense to go up. we will spend it. if the investment bank does better the comp accrual will go up. that is how we run the company. that won't ever change. >> because revenues were lower, we did see the compensation -- or expenses rather up year-over-year when you exclude expensation, there were legal fee this is quarter but the bank is cutting costs. they were sure to say they are still investing where the bank is growing. back to you. >> kayla, thank you. and let's bring in geoff hart principal at sandler o'neill. he joins us on the "fast" line.

you were forecasting that jp morgan would be more money bags on earnings. and now we have the cfo lake saying the investment is high high even though we're only two weeks into the quarter, who do you make of the report. >> we talked about sales and revenue expectations being too high. and the interesting thing is they don't know what sales or trading will be next month any better than we do. the way the quarter is rolled out she's talking down trading expectations but let's take that with a grain of salt being two weeks in. net, i think there were good numbers. revenues were in line with our expectations. expenses were a little bit higher excluding the litigation reserve bill. but they are still making kind of progress going forward. and on a credit side outside of energy things still seem to be going well and they are growing loans, which is a good thing. and it is a unique thing in the

consumer business. >> does it spook you they are only willing to say they have modest exposure to glenn core as opposed to saying our exposure is manageable or something more definitive. >> you would like to get more information on that but they typically don't. nobody gives exposure information like that. i would love if they talked more conservativeively, but realiveirly they never give you a lot on individual disclosure. i'm not reading that to mean there is a bigger issue than we realize. >> what would you say to clients tomorrow? buy. >> especially to the fact it was lower today or tomorrow, i think it is the buying time. the tax benefit really boosted the reported earnings. but if you take that and back everything out, i'm coming up with $1.35 which is what i thought they would be. and i think the outlook is still in tact. >> thank you, geoff hart,

jandler o'neill. >> going through the read through and listening to jamie dimon and cutting the wasted expenses, that is the key, my takeaway at least. they won't give us any definitive answers about the glenn core thing. they gave us modest exposure. but you had a guest on earlier today who had a $75 target and a buy on there and loan growth was the key element. well the loan growth was strong on this quarter report. given that the 15% i think this is something that i love the stock down here at these levels. >> is the story for the sector all about the fed raising rates that point. >> i was going to say, everybody is myopic on the fed raising rates. when you look at the global growth versus expanding, it is tough to do it a low rate environment with global growth it is hard for the banks to outperformer if you are looking for steady eddie, you go to jp morgan. but remember the three day rule.

>> netflix shares about to come crashing down like a house of cards. we hear harsh words from a top ceo. and shares of delta are up 6% in the last week and traders are betting on another big jump for the stock. and we'll explain much more this hour. much more "fast money" still ahead.

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when you think about all of the devices out there, there are 3 billion mobile devices out there. and there are a lot of great companies that bring you those devices and they are great aggregators like netflix and amazon. but in the end, and this is not to be too path orive, but they are dumb pipes. >> that is ceo david zaz love called them dumb pipes. yes, you heard that right. and without services and devices, it would be worthless. there is a market cap of $12 billion and netflix has a market cap of $47 billion and amazon is $251 billion and some would argue they are not just pipes but content creators not just distributors. >> he was path oraive. and i don't think he was. so i tend to agree.

and i consider them a pipeline, not a media company. they do not deserve the multiple they trade out and i think the competition is strict. it is all about the international subs because if you believe in the story, you have to believe they can scale the model globally six european markets, they just opened in japan and it is opening slow and that is what it comes down to. >> so pete. netflix is a dumb pipe true or false. >> false. and i think it will continue to be the story and whether or the the united states is flattening at, it is the market. >> do you agree with him. >> no. >> no. >> we talked about it on the show. he thinks it is worth $40. he's out of his mind. this is a company growing significantly. 2017 rolls around, and it will be like a hockey strick the gross margin. >> they did prove they did have pricing power. >> they have pricing power. >> and they could have raised it

more than a dollar. the subs are sticky. >> they trade 100 times ebidta. >> it is not in the price yet. but what i'm nervous about is there is a lot of off balance sheet liabilities they do have. >> so in 24 hours we'll be talking about the netflix earnings and was that price increase a decroy move to get people's eyes off the ball. >> that is potentially -- but the interesting part is when we saw this before we saw the stock react in a negative way and it was not that way this time of around. >> and they have to pay the content and that is why they are raising. they should have raised more. >> we are street high on q4 sub guidance. and we think they are conservative. if they put up in a good number for guidance for q4. >> i agree with everything

everybody said. but trading at # 00 times ebidta. >> a conference call just wrapping up. we'll hear from the ceo on what hit the quarter next. and plus traders are betting that delta is set to take off and we'll explain why in a special "options action." you're watching cnbc, first in business worldwide. you wouldn't take medicine without checking the side effects. hey honey. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck.

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welcome back to "fast money"ment i'm josh lipton. intel's conference call just wrapped up. we know the company is dealing with a weak pc market. for the bulls, the ott mix is about the data center business but intel is saying the data center is expected to grow in the low double-digits, not 15%. so taking growth projections down a little bit. listen to what the ceo had to tell analysts. >> what we're doing in the data center is not only just growing cloud versus enterprise but we're driving hard into networking. next year you'll see our photo tonics and fpga's with vol terra. so it is a broad spectrum in the

data center. >> and he went on to say he is not thinking about the long-term growth of the data center. and when asked what he thinks about the pc market and are we nearing a bottom. he said windows 10 and the new sky chip is a good point for optimism but the transition will take time. melissa, back to you. >> josh lipton thank you. analysts chris roland has been following the call. and chris, what grade would you give intel's earnings? >> b. here really. and it had to be an a-minus, it was almost priced for perfection. >> tomorrow would you recommend selling. it sounds like you are backing away from your stance on intel? >> yeah i'm certainly not backing away from my stance here. i think shares will be off tomorrow. they will base. i think they move higher over the next six months as we get more positive data points. i see this as a easy mid 30s stock and with pc numbers perhaps better than expected and we could see 40.

>> chris, our thapgs to you. here with us the whole hour. thank you, chris. and we have intel lower in the afternoon session and jp morgan lower. it could be a tough day for the dow tomorrow. >> it could be a tough day. and intel was priced in. they looked for a good quarter and they took the stock up. can you see it on the chart very clearly. obviously it is a sell here. i think it will go lower. and i look at jp morgan. and it is more questionable. a lot of more moving parts. we have bank of america in the morning and other financials reporting so i would look at the financials after more report. >> and we had the fed talking about how october could still be in play. if you have bad earnings where people are worried about rating going higher we are not out of the soup and you have to be cautious. >> i think you use the opportunity to sell stocks. you have slower growth. this is the slowest earnings grow outside of a recession since our last -- >> and the expectations were

weak. >> exactly. >> and so we have quarter on quarter of declining earnings estimates. down 5% across the board. the last time that happened was '09. >> and delta set to report tomorrow before the bell. some are expecting a big move on the stock. mike chow has the details. >> october, 12,000 calls trading for 35 cents. and this is a bet to the upside that delta could be up as much as 7% by a week from friday. >> as much as 7%. thank you, mike. check out "options action" 5:30 eastern time on friday. coming up next the traders tell you which earnings reports they are most focused on for tomorrow. that is right after the break. stay tuned.

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and finally fast but not least, men's magazine playboy making news after announcing plans to stop showing fully nude photos in the print edition. so we thought we would take a

poij out of the book and clean up our act too. here is a look at the family friendly version of last night's show. >> i'm looking at kansas city, the way i look at that [ bleep ]. >> a regular investor out there should not [ bleep ]. >> i can't believe the environment got that much better. the stock [ bleep ]. you by think you'll see the stock suppose 70s after the report and i think you [ bleep ]. >> i think it is crowded in that [ bleep ]. >> that ovx has been -- has been [ bleep ] to the upside. >> do you know you were on air? >> guy is a sailer. >> when he talks like that you know he is going off. we get passionate about our picks and profanity flies off our lips. >> potty mouth we call him. >> and traders using salty

language. >> a little bit. >> time now for a special edition of the final trade. take your position ahead of tomorrow's big earnings report. so let's go around the horn. tim. >> black rock, i think you follow this back to the lows of august. a hedge fund of octoberfest. >> you can buy tickets now by the way. >> and seeberg. >> this is netflix. this is about growth and guidance. i think guidance will be strong and you'll watch the stock continue to move in the right direction and that is up. >> grasso. >> long bank of america. and that is why i said on the show, it has to hold right here. i want to see if you see that catch up trade. down 15%. use a $15 stop if you wave it. >> pete? >> there was monster opportunities, trading in bank of america and i bought some calls. which i won't mention. be easy. >> but delta airlines tomorrow. mike was just talking about it and i talked about it last night, this stock is going

higher. >> i'm melissa lee. see you back here you back here tomorrow. meantime "mad money" with jim cramer starts right now. \s . my miss is simple. there's always a bull market somewhere. i promise to help you find it. "mad money" starts right 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 is not just to teach, but entertain, education. call me or tweet me. discipline must trump conviction. rules that have kept you out of trouble have to be obeyed which is