as well. >> all day breakfast. >> i could eat a egg mcmuffin right now. >> they just have to deliver it. >> "fast money" starts right now. live from nasdaq market overlooking time square. dan, steve, karen and gooi today. the real reason the dow fell more than 150 points it. wasn't just wal-mart. but comments from the ceo of delta. what he said that had traders running for cover. it is all in the egg mcmuffin. the highest point with all day breakfast leading the charge but is it enough to keep investors loving the stock. how long can the golden arches keep their shine? and netflix is tanking in the after hours session, down 6.8%. paired the losses. julia boorstin is live with the details. >> netflix missed the earnings per share number, just by a

penny. but the key factor weighing on the netflix shares after hours are weaker than expected u.s. subscriber additions. they added 70,000 more total subscribers than projected, ending the quarter with 69.1 69.17 million, the u.s. numbers fell short. adding just 880,000, compare to the 1.19 million they projected last quarter. they contributed to that involuntary turn. they said it had the inability to collect. hastings explaining in letters to shareholders they believe this was driven by the transition to chip based credit cards and users failure to update their payment information. the company's fourth quarter outlook for u.s. subscribers is lighter than wall street analysts have forecast but the company's international growth is exceeding expectations. the company added greater than

expected 2.74 million overseas subscribers in the third quarter and projecting the addition of record 3.5 million international subscribers in the fourth quarter. so u.s. subscribers looking light and international better than expected. but we are hearing a lot of questions on the video call which started any moment now. we'll also be hearing questions i'm sure about whether the price hike that the company recently announced is expected to impede u.s. growth any more. and we'll also be curious to hear any guidance on content strategy in light of programming costs, which are expected to continue to rise and greater competition. melissa, back over to you. >> julia, thank you so much. groid, why do you think the stock paired its losses. >> it is now trading 102 which is a good thing. back in august, we had mark cuban on and he talked about how he bought netflix and it was at 95 and that held on the line in

the sand. and this gives bears, and dan is one of them, ample ammunition to lean into the stock. the net ads internationally that were disappointing. the paid net ads nationally disappointing. and people look back at the dollar increase and start to connect the dots an think maybe netflix is in trouble. this gives bears every opportunity to lean in the stock. i think you own it against $95. but tomorrow is a fascinating day in terms of price action. >> dan. >> i think there are a couple of things people are talking about. competition and original content. when you look back a month ago when we had the prime time emmys, amazon, had 12 nominations and took home four statues. netflix has 31 or 34 nominations and they only took home four. here is this thing about the domestic sub base, if they don't

continue with the other nat hill hit, i don't think they can maintain the content delivery aspect of it. that might be a seat change here. and i want to add one more point about the q3 report, in october, the last four years, the stock has declined the day after this report, about 19% on average. there is the stat there. so there may be some seasonality, and it may have to do when they raise prices. but to guy's point, i think it is prime for a short. >> bob peck of sun trust is here and watching and listening to the earnings webcast. bob, we want to get to you. does that make sense that the transition to the chip base card could make up for the shortfall in the u.s. subscribers? >> it could contribute it. 1.0 versus 1.4 and the

international also missed. versus 2.4 million. an that is what the story is predicated on. and that translated into lower revenues and a slight miss and slower profitability as well. couple that with acquiring costs going to $56, an all-time high. and u.s. cash flow misses and profit margin was hampered and so that is a push back. and so we are looking at new content, penetration to china, the potential advertising and star wars content and they pointed out a capital raise is coming in 2016. >> given the miss on subs, is now the time to implement a price increase for new subs if you are trying to get more in. >> it is a good question. the price for the subs that aren't churning off could make up the revenue shortfall. and it takes a year to enact so you have a year before we see any churn from that. the first impact is the price across from q2 '14 which will

impact '16 and it will see how revenues go then. >> we'll let you jump back on the call. thank you, from sun trust. >> and karen, given the momentum name, it is just another miss. >> yes. >> in the parade of earnings we've seen so far. >> that is true. the point that you brought up, if they don't make those back, that is a little suspect. but this one, the valuation, i couldn't get comfortable with, in the fang universe. google is trading down but that is not surprising but i don't think it matters. what will matter, i think it is the 22nd google review earning and i don't care where trades are in between that. >> and speaking of google or alphabet. and they are all down across the board in the after hours session. and this speaks to sentiment, we are seeing earnings missing so far and stocks that have done

well and are people de-risking ahead of the quarters. >> i'm sure they are. but think about the last two weeks. glenn core was the most important thing that we saw. we saw the chase por the commodities space and short covering in energy space. so this is not the first thing on your shopping list when you think about covering commodity space. but netflix, i think international was strong. 2.7 versus 2.4. that is the growth story in the stock. and so i think that is why guy bounced it off the original lows. would you buy the stock? no, wait a couple of days. and not run you want to rush into. but the story is in tact. >> it doesn't make sense. when you think about what time warner does and their original content. a $57 billion market cap, $28 billion in sale and trading at two times sales and netflix which is growing, growing at 24%. they'll have maybe six or so billion this year.

it doesn't make sense. if you want to make content, go back to the old-school traditional media players like time warner. i know they've gotten nailed since the disney quarter in early august but these are a far better value and you can make a bet on this technology growing and you can -- it is going to be -- >> are you saying this because of the market environment right now. >> i think it is a bit more defensive. i've been saying this since the break over the last month and a half. >> if international continues to grow the way it is growing and if domestic tarts to level out -- starts to level out and international keeps growing, that is what the story is about. >> now to seriously troubled dow stock, take a look at boeing. after the ceo of delta airlines called this morning and had to say this about the airplane market. >> we're seeing a huge bubble in excess wide body airplanes around the world. we think that that weakness in that aircraft bubble in wide

bodies is going to spread to narrow bodies and that there will be some huge buying opportunities because low interest rates really have created a wide body bubble in the world. >> a wide body bubble in the world. >> low interest rates. another unintended consequences of the fed policies. there are defenders of the fed out there and i'm not one of them. here you go. when you have him say bubble twice in one interview, that is a major thing. so how do you trade boeing. they report in a week or so. i want to say it is the 22nd. i need to look. and the level traded back down to in november and december of last year, 120 is right in the cross hairs now and you have to wait for it to get there. you buy it right there. >> there are dozens of airplanes coming off of leases. singa pour has dozens coming off soon of wide body jets. >> it makes me wonder who is late to revamp their fleet, it is good for them if there is

excess of aircraft around, they with buy it cheaper. >> so older fleets. >> and i think there is another point to make sheer. people like the delta quarter because they said they will keep capacity in check in 2016. so what is the company saying here? they are not going to add a whole lot of capacity and they are looking for old airplanes. so this is not a great setup for boeing, as there was a massive runway into bigger planes. >> runway. karen has a good point, in terms of the low fuel and now you also have the costs coming down. >> definitely a valid point for the airlines. but for boeing, going into a low growth globally and domestically if it comes out here, i think it is a negative tor boeing but i like karen's play on it. >> the other big story weighing on the dow today, wal-mart. the stock having the worst day in 20 years after cutting the earnings outlook. the ceo spoke with jim cramer exclusively and we'll hear what he said.

and is mcdonald's now mc-buy. hitting a two-year high. this is all day breakfast pandemonium and can mcdonald's keep the momentum going. and tesla announcing the details of the auto pilot. and we'll hear what the ceo has to say about that. much more "fast money." stay tuned.

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.

breaking news here on a big news. kay lar is at the new york stock exchange. and kayla, and this is disappointing in terms of the pricing. >> we're just getting word from the wires that it prices at $16 a share. this is something that we had reported previously on cnbc. the advisers for the company were building the book as of this morning at $16 a share. and it appears that is where, in fact, it priced. that is $2 below the expected range of 18-20 dollars a share. so the company will be raising less in proceeding than expected. we'll see exactly how many shares they were able to sell at that price. expected to trade tomorrow.

i'm hearing that will not be derailed by the price. but of course in this market you never say never. anything can happen. the ipo that might have more trouble is albertsons. one of the top three grocery store companies in the united states. the other competitor, wal-mart. so you can bet that finding an appropriate price for a company where the comp is wal-mart on a day like today is very tough. our kate kelly reported earlier on cnbc the expected price for albertsons, $20 a share. that is below the price range of $23 to $26 a share. and her sources were saying that one option was to delay it so we will wait and see if we do, in fact, get a press release that albertsons will trade tomorrow. but very bad indicator for the ipo market, melissa. and of course, the after-market trade with a lot of stock coming

to the market will be something to watch tomorrow, whether there will be support for the stocks once they do trade. >> all right. kay lor, we're getting word that reuters is reporting that albertsons will not price tonight. that is according to reuters. we'll work to confirm that on our own. and kayla, in terms of first -- maybe abs is not a surprise, but in terms of first data, how should we look at that. it is not a venture capital backed company going forward and should we look at it as a sign to good public to raise the money or do we look at it differently because it is coming from private equity. >> not necessarily. you don't have a situation as stark as a wal-mart situation. for albertsons that throws off the market dynamic for a company like that completely. for first data, i spect to a couple -- a spoke to a couple of sources this afternoon and they said it is owned by private equity. there is not much more to do to the model to make it a more attractive stock. they are committed to this

market. they will play in this market. and potentially that means there is more upside for investors who do buy in at what is now a lower price than expected. so i don't think you should see this as an act of desperation. the proceeds will be used to pay down debt. but certainly this is a company that feels confident and has been advised that trading tomorrow will be fine. >> all right. and i have to ask you about square as well. $250 million offering. >> that is right. i think some people were surprised to see that filing come on a day when all we've been talking about, melissa, is ipo market weakness. of course, square, when you look at the financials, you see maybe there is a reason why it needs to go public sooner rather than later. an the last fuel -- in the last full year, it had losses of more than $150 million. in the six months leading up to june 30th of this year, it had revenues about $470 million and on track so far this year to

have losses in the same as last year. they've tap tapped a credit facility and tapped about $30 million of that. you don't see a company do that. but that gives you a sign that maybe square needs the cash. maybe they have tried to raise money elsewhere and they are feeling pretty confident about going or at least it is now or never. >> kay lor, thank you. joining us from the new york stock exchange. there is a lot to unpack here, karen, but what would you go to first? >> data is a different animal than a square. which is a huge growth story and a lot of -- it is not about today's earnings. i think they might -- the first day they might need to do it, it is not a huge part of the company, and i don't know if it is in the kkr, so you can come to reasons about why they should go ahead and do it and even if it is not at a bad price. square, that is one to watch the tape. >> and square is going public in an environment where amazon web services just had an event.

they are amping up against oracle and they got downgraded because of amazon. this is a competitive space. >> they are going to give jack dorsey the benefit of the doubt. that is interesting to see what happens with that. can he run two companies simultaneously. you would think it is a great environment for the deals coming. apparently it is not as great as it looks. that coupled with the fact that the market today -- i don't we didn't talk about the broader market, but more happened that we'll get to. so we'll see what happens. >> and if you are not in a bull market, they won't work any more. and the companies like you mentioned, fdc, kkr needs to get the deal done in the cycle and the other ones, i don't know. so i expect we'll see capital raising because companies need to raise their cash. >> would you be more concerned about twitter at this point. jack dorsey has to go on the road and push -- and dan makes a good point, this is a difficult environment to pitch an ipo.

jack dorsey is going to have to give it his all to make it successful. and what happened to twitter in the meantime? >> i think we've known a bunch of this. not that i don't think it is -- the fear is not warranted. but i think the market already knows that twitter has its own problems already. for dorsey, it is going to be if he is a two-time loser to guy's point on a failed ipo here, this is really bad for everything. i think it is bad for the markets, it is bad for growth and more importantly it is bad for twitter. but i think the ipo market, this is a huge negative for the market. the over all theme is if growth is coming in, ipo is heading out. >> take another look, i should say, at netflix starting to come back in the after hours session. it is only down by 3% it. was down by as much as 15% at one point. the conference call is underway. we'll bring you the headlines

from reed hastings. and doug mcmillan did speak with jim cramer and we'll hear what he had to say after this break. i'm melissa lee, you're watching cnbc, first in business worldwide. here is what else is coming up on "fast." >> i'm going to say a word and you tell me the first thing that pops in your head. ready. mcdonald's? >> the answer could surprise you and could explain why the stock is surging. plus, is a black swan coming? not that kind. the kind that destroys your portfolio. we'll tell you why traders are betting on one and how you can protect yourself, when "fast money" returns.

now to the other big story of the day. shares of wal-mart have the worst day in years after they cut their earnings outlook and minutes ago the ceo sat down with jim cramer. courtney is following the developments. >> there was quite a bomb dropped. shared plunged 10% shedding $20 million in market cap after they upde the three year

guidance. it is lower guidance to flat for 2016 do to fiscal impacts. the whammy is in 17. everything kicks up. and wal-mart will decrease eps between 6% and 12% from the prior year. now they knew about the wage increases but what is surprising is the clarification is it will cause 20% of the reduction in fiscal 2017. part of it will come from price investments or the cost that wal-mart will assume to lower prices, hoping to entice sales. but what categories will see lower prices and when, they won't detail. the ceo did sit down with jim claim fresh "mad money" within the hour to talk about the surprise of the wage impact today. take a listen. >> i think it is important to a lot of people. i think people were shocked, frankly. you have to give them that. the stock does not get hit like

this. communications? >> we've known for a long time it was moving to $10. if i had it to do it over again, maybe i should have quantified that in earlier days. but it is what it is. >> and so moving on. the earnings flat from 2017 and by 2019 earnings will again be at current levels. charles holly expects they will grow sales between $45.60 brls over the next three years and generating millions of cash and buying back $20 billion in stock. there was a lot to digest. a newspaper of analyst say it is painful but it is probably something that wal-mart needs to do. melissa. >> you've probably talked to analysts today courtney in terms of the surprise, did they have any idea that that is what they should have put into the model. we did know that wal-mart was going to raise wages. did we know to this extent? >> we didn't. we knew the wage levels but the analysts were very surprised by the detail that wal-mart

provided today. and i talked to many of them in the room and they said, as soon as everyone was able to and they stepped out of the room, you couldn't find space in the hallway to get privacy to make a phone call back to your desk and your associates to update the models because everyone was so frantic. it was surprising. analysts spoke to the executives before the event began, at the event, while they were gathering and signing it and executives gave no indication that something big was coming. so i'm not exactly sure that the rollout was the way that wal-mart should have done it or maybe thought the reaction was not what wal-mart planned. but it is what it is and that is why we chose part of that sound bite with jim cramer when we talked about communication. >> courtney, thank you. and don't miss the rest of the interview with doug mcmillion, top of the hour at 6:00 p.m. eastern time. the other part of the story and the context with which jim asked a question, doug mcmillan was on "squawk box" prior to the forward guidance being released and there was also an element of

being caught off guard because he had been on, there was no indication that anything was coming, and then it came. so is this a communication problem with wal-mart? how bad is this? >> well i don't know. i don't think it is as bad -- the communication is the side show. the big miss is the most important part here. what is he supposed to do? sort of go into it and then not. it is tough thing to do. he had to wait until he was assembled with the whole thing and ready to go. it is really bad news. it is bad in so many ways. and i don't think the bad thing about communications, i think it shows the business is really struggling for growth. and i wonder, with this margin compression, what is that going to do to some of the big suppliers an the p&g's the kimberly clarks and clorox of the world. amazon did not have more of an effect, which is interesting. i would think there would be something there as well. more pressure.

i think for two years, it is toxic for a while. not that i don't see another collapse like this, but i don't see why you have to be here. >> toxic for a while. >> toxic might be too strong of a word. >> dead money. >> toxic is probably the right word. let's not sugar coat it. this is not just today's announceme announcement. wal-mart tarted this year as a $90 stock and until recently the market has done exceptionally well. we've seen a selloff recently. but this stock has been going lower the entire year for some reason, other than just this. with that said, it did trade almost ten times normal volume today. but to karen's point, it is broken for a while now. you might get a bounce over the next couple of days but there is clearly to more of the story than the cost increase over the next couple of years. >> it didn't matter what kind of retailer you were, you were down on the back of this news. is that fair or not fair. >> i don't think it is fair. but when you talk about a $90 stock, when you they announced a wage increase, it was trading at

$83. it has lost 30% of the value based on that wage increase, so when everyone tries to make this -- the nall had the calculation and it was wrong and they are looking for a 4% increase versus 12% increase, they told you it is dead money for four years, not two. so i think it is wrong. because i don't know that other retailers have the same play. >> so if wal-mart -- let's say they are dead money for the next money -- for the next couple of years. >> let's do it. >> now they have a $200 billion market cap and they have supposed to have $500 billion in sales. amazon has a $254 billion market cap and $100 billion in sales. and the seat change is going on. but wal-mart is a perfectly fine company and dealing with a massive transition and competition. but the problem is that you guys out there are placing all of your bets in amazon. it is the only one that is working. if you looked at kohl's and

macy's and the list goes on and on, they have been telling you the same story for the last six to nine months here. something is wrong. and we have the retail sales data this weekend. >> does wal-mart has zahn welcome back services. >> yes. >> you see the numbers. but granted dan has made the case it is commodities and goes to zero. >> the pricing. >> but there is a growth element. >> still ahead, tesla unveiling the details of the auto pilot details. we'll hear frommelon musk right after the break. and check out netflix right now. what a comeback. down less than 3%. the conference call is officially half-way through. we're hear from reed hastings on the back of this. much more "fast money" state ated. at.

. welcome back to "fast money." a new feature coming to the tesla model s, the electric automaker lifting the veil on the much anticipated auto pilot technology. phil le beau got an in side look. he's here on set. wow! >> and got behind the wheel. >> how was it? >> i was impressed with what i saw. they are careful to point out and they just wrapped up a

conference call and we'll show you what it is like in a tesla model s as you are allowing the auto pilot to take control. there are four main features behind auto pilot. the first is auto steering, keeps you in your lane and moderates the breaking or the speed. the second one is automatic lane change. if there is a vehicle next to you, it won't let you lane change. if it is clear, it will do the lane change, you don't have to have your hands on steering wheel. and also side collision warning. if you try to go over, it will stop you from doing that, by saying look, there is a vehicle there and finally auto park, the parallel parking. i was impressed because i saw it was an in tewive system. you didn't feel like you were in a w a car and weren't sure where it was going. there were a few times i had to grab the steering wheel, was that because i wasn't used to

it. because i was on the west side. and as they push out to the tesla model s and owners who have the capable to receive the software, about 50,000 vehicles, what the reaction is going to be. on a conference call,ellon musk talked about the true impact of the auto pilot technology as it rolls out to owners around the country. take a listen. >> i think this is going to be quite a profound experience for people when they do it. and we've been testing it for over a year. so we got quite used to. but i've noticed when i put friends of mine in the car and they see the car drive, they are blown away. >> now, as is usually the case can musk, he likes to talk about reaction from the people who do the early beta test. here is what he heard the feedback from the model s owners who have tested out the auto pilot technology have told him. >> there are -- they are saying they really love it and think it

is quite profound. and they are saying that tesla is going to cancel their vacations because there was a update from the software. >> of course he is going to say that customers like it. and they are going to roll it out tomorrow. and having said that and done test drives with other auto pilot technologies from different automakers in development, you can clearly see the technology is there. and they are the first one to push it out to the customer base and others will do it soon. and this is really -- it is coming faster than i think the public realizes. >> is this a reason to buy a model s as opposed to another luxury care. >> i think what stands out is the over the air software update. tesla believes it can quickly innovate off of this system, so that, like you do with your phone, you're going to get the update in terms of what the capables will be. >> okay.

phil, thank you. phil le beau here at the nasdaq. guy. >> cnbc royalty, phil le beau. you didn't mention that at the top. >> i thought that was implied, prince phil. why state the obvious. >> it is not about the technology for me. i don't like cruise control, because when you drive a car, you like to be in control. you don't drive so you don't understand. but it is being in control of the car. i get i'm not the target audience. this is the future. i'm not. with that said, the stock 225 on the line in the stand and now two days below it. does it get back to the 180 it did a few months ago. it feels like it. because they roll out headlines and the stock is going down. and by the way, netflix is not going to help because tesla gets lumped into that. so 180 might be in the cross hairs for tesla. >> i don't think it is a reason to buy tesla because there is too much competition out there. but what does everyone have,

they have mobile eye. but they have to hold the 200 day average and keep a 47 stop on it. and breakfast is the most important meal of the day from mcdonald's. the exception of the mcdonald's brand is at the highest level in two years due to all day breakfast. we wanted to see what the people of time square think of the golden arches so we sent guy adami to find out the one word that people think when it comes to mcdonald's. >> it is guy. i'm out at time square of course. and we're going to play word association. and the word is going to be, mcdonald's. >> i'm going to say a word and you tell me the first thing that pops into your head. ready. mcdonald's. >> junk food. >> golden arches. >> i'm loving it. >> pink slime. >> cheeseburger. >> breakfast. >> good stock.

>> good stock? it made an all-time high today. >> fast food. >> french fries. >> oh, ho. >> big mac. >> disgusting. >> this is guy here from new york city and we'll ask you the first thing that pops into your head. when i say hamburger, what do you think? >> mcdonald's. >> role reversal there. >> i notice. >> role reversal. when somebody does -- thank you. >> it is obvious what role reversal means. in terms of the stock here, there are a lot of fans, tim seymour, if you are listening, you are one of them. but with the stock at an all-time high, dan, what do you think? >> i think if you want to take a shot. i think 100. that was the prior breakout level, it hadn't gotten to until recently. that is where you dip in your toe at $100. >> did you notice the reaction for chipotle today, down 4% or so. >> i dent.

but mcdonald's 25% of the revenue is from breakfast. this is a home run deal for them. you know they try to shrink the lines at drive-thrus and shrinking the menu so people can be in and out. and i think the stock has more upside. maybe not back at phil. but maybe 20% to the upside in mcdonald's. >> when it was in decline, before the turn around had started taking shape, it was losing share to other outlets. is it possible that it is gaining share from the likes of a chipotle or a wendy's or elsewhere? >> i don't think it was a shake shack. i think it is a different -- but maybe it is a different breed of investor coming back. after yum, maybe people feel burned by yum and they go to mcdonald's. >> all right. coming up shares of netflix down 2% right now. we hear what turned around shares after hours from ceo reed hastings right after the brack into and the shocking chart that

could mean a market collapse is closer than we think. all of that and much more ahead on "fast money."

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welcome back to "fast money." i'm julia boorstin with the latest on the netflix call. there is a big focus on the reason why u.s. subscriber numbers came if lighter than expected. the ceo reed hastings was still very bullish on the netflix ability to keep on growing despite raising prices and growing competition. take a listen. >> the more that we have amazing originals, then over time, we're going to be able to ask consumers for more to be able to invest more and that is the rhythm we've been on. >> cfo david wells talked about why the transition to chip cards was a factor. but he did say it was one of several factors that drove that u.s. subscriber disappointment. now hastings talked about how the whole world is moving to streaming video because it is simply better than linear tv. he also said he is not particularly concerned about content creators holding back content, in part because netflix

is finding so much value in their own original programming. as for what type of content netflix could make next, they ruled out sports as pricey and talked about how it is not interesting to watch a sports game after the fact. but they left the door opening to news content. now content chief ted sur anos said we are being more adventurous and talking about the comedies with chelsea handler but hastings turned to saran os and asked what the chance is netflix is competing with vice, they are working on a daily news show with hbo and competing with vice in the next two years and serran os said very high. so something to chew on there as we think what direction netflix could go in in the future. back over to you. >> julia boorstin, thanks to the update. to sun trust's bob peck on the stock turn around.

we are practically flat now, why do you think that is. >> when you pair back the one timers, the impact from the credit cards and the depreciation, the numbers weren't as bad as first glance. that coupled with the same conversion rate from paid subs bodes well for future. and the content, very important going after vice and not overpaying for sports. star wars, very much on the table. we should also expect continued price increases. reed said expect this to go along with value and we'll continue to see that. and lastly the point on capital raise, if they continue to raise as they think they will every year, this is a good sign and indicative of the content we're getting. for us, we're staying at 017 ebidta but on a pullback, an interesting asset. >> thank you, bob. and on the left side of the screen that is the netflix webcast. guy adami, this is now down 1%.

>> it is unchanged. steve said buy it. dan said don't go short 100. the bears will be scratching their head tomorrow because this gave them every bit of ammunition they needed to crater the stock and it is not happening. again, $95, that is where it held in the after market. at the 4:00 hit, it was trading $95 in the post market and it has bounced nicely since. you stay long against 95. >> we are talking about the fang stocks getting de-fanged off of netflix disappointing, at this point, do you think that the narrative changes tomorrow, dan, for the session, because we see netflix rebounding. >> if you see netflix at 120, you have to run for the hills people. that is insanity. when you see this sort of reversal, this is the move that amazon does when the numbers are confusing and the stock is down and at 9:30 p.m. it is up 5% after being down 10%. and last night on the program you called -- or tim called netflix a dumb pipe.

agree with that. if they couldn't continue the original content -- when itunes and apple gets into streaming subscription service, this is done. they have 800 million ios accounts globally right now. so the writing is on the wall in the next year or two. >> moving on to the broader markets here. investors are fearing a black swan more than ever before. seema mody is in the newsroom with more. seema. >> that is right, melissa. black swan, two words no trader wants to hear. but a look at an important chart tells us this catastrophic event may be on the horizon. check out the index. what the chart shows is how much investors are willing to pay to protect their portfolio in the event of a market calamity. this is up 30% since the end of september. and we saw a 10% spike on monday which tells us more investors are betting on an outlier

seechbevent. and the sku index is now higher than levels hit back in 2006 before the housing bubble popped. it is important to note that extreme readings of the skew index have not led to big market events but it is still something to consider and catching the eye of some traders. melissa. >> seema mody, thank you so much. and backing out that reading on the skew index, gold surging and ten-year yields are below 2%. so we ask, is there another leg lower, is there a black swan ahead for us. gee? >> i don't know about the black swans, but the ten year yield, 2%, gold has been rallying for quite sometime. the last few weeks. the german bund rate has raised half a percent. >> are you nervous? >> do i look nervous to you? no. but i'll say this, the market didn't trade well over the last couple daves. it traded to the levels that steve grasso talked about. what is tuesday thursday, it was on monday. so the technicals have held up

right in this market. >> today is wednesday. >> well levels right now, these are the sell zones. it has to trade down, but gold, you buy the miners and they out perform the underlying metal by three to one. >> the stock trading that failed to catch a bid in today's session. much more "fast money" still ahead. ad a horrible nightmare. ad a horrible nightmare. my company's entire network went down, and i was ho in bed, unaware. but that wouldever happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offle. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business.

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and that is obvious to the people that know me at all. but that is a cool. that was a sneak peek of jaylen oez gather at 10:00 p.m. eastern here, 10:00 p.m. eastern and pacific. let's switch gears here. you get it. verizon shares fell 1%. some traders are betting on even more pain for the stock in the coming weeks. dan is at the smard board smart board with the reaction. >> there was a buyer of 12,000 of the november 42 puts paying 32 cents to open. those break even on november of 4168 and that is down 5.5%. and they are experted to report q3 earnings on october 20th. back to guy's point about rate where's they are. and the yield is down 6% on the year. here is the year-to-date to chart. it is in a massive down trend. the pus break even, below the trier low.

and one other point, here is the five year chart. we're coming up against some really important long-term support. so this is kind of possibly just a cheap and premium term disaster hedge against a long position. >> thank you for that. and for more "options action," check it out 5:30 p.m. eastern time on friday. up next, we'll talk to the traders to see what they are looking at tomorrow. 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.

time for the final trade. and we start off with sun trust and bob peck. how would you grade netflix earnings. >> so looking at it, they did miss on the subs international and domestic but they had one timers on churn as well as costs. the guide was basically in line. so we give it a grade of a b. over all. >> b. from bob peck. thanks for sticking with us for the full hour. let's go around the horn. dan. >> the move was large. if it is down toward 130, i am offering a short position. >> and mobile eye against the 47 stock. >> chairwoman. >> if the fangs trade down, i like goog, the g in fang. >> or alphabet.

>> the netflix opens in the green tomorrow to quote a minnesota friend of mine, pete najarian, watch this, giddy-up. see the way i did that. >> i'm melissa lee. see you 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. i promise to help you find it. "mad money" starts now. hey, i'm cramerer. welcome to "mad money." welcome to cra-merica, my job is to educate and teach you. call me or tweet knee. walmart is known for the every day low prices and incredible discounts. today, it put the whole stock market on sale when it low