and what that says about the strength of the consumer. >> maybe the bond market is closed for veteran's day tomorrow. >> we'll have veterans tomorrow at the stock exchange which is open. we'll see you tom. "fast money" begins in moments. melissa lee, what is on tap. >> shares down 22% and what the bond market is saying about how sun edison will trade in the future. >> over to you guys. >> thanks, kelly. "fast money" starts right now. overlooking time square, i'm melissa lee. your traders are tim, dan, karen and guy adami. tonight on "fast," one of the most widely held stocks on the street is the biggest loser of the year. what the apple big slide could mean for the broader markets and how you could praft. and the secrets of beating the street. how about extra cheese and french fries. fatty foods could be good for your portfolio. we'll explain. >> and an undercover market indicate could be the start of a recession. the one chart you have to see. but the top story. copper hitting a year-to-date

low. after some companies here in the u.s. took it on the chin. are we seeing signs of another china slowdown. and tim, the data out of chinese has not -- china has not been good. >> imports down 16% and exports down and you had trade numbers weaker and cpi and ppi last night showing the pricing and the deflation is very much in china. the other thing happening slowly it the deval of the yuan. you see it up in the last session. that is as much when they first did it. when you look at weakness and currency and say here we are again. this is the setup for a nasty market in august. i don't think that is what is happening. i think the consumption trends in china are interesting and any weakness are based upon some sense, consumption based, and we talked about alibaba and baidu

and china mobile which are reflective of consumption trends. i think those are okay. but people need to watch this because it is the same stuff that people were selling off. >> and we saw macmarin and wynn under pressure today. day two of that. >> if you are looking at the shanghai composite, it had a nice bounce in the last couple of weeks. but when you look at the u.s. multi-nationals expecting growth from china going forward, it is a bit of a disaster. i want to make one important point. if you looking at the guidance of nike or the results of starbucks or apple in the last quarter that they gave. i think you are looking at the wrong lense as it relates to the chinese consumer to me. these are brands killing it all over the world and those aren't the ones you should focus on. i would remain focusedond industrial-led aspect of the economy and it doesn't look good right now. >> and the good data points are not worth scrap ating.

>> if you say cat or something like that. >> and resource related. >> and i think the sentiment and then what is happening on the ground there. i don't know that. i know we had a huge run-up in all of those coming in at cap, maybe not so much. but other related ones. and i think a little bit of of pullback is not -- it is not that big of a deal. i don't think there is enough yet to freak out. i wouldn't start thinking i would be able to trade out of it, as it looks bad, it will look worse and get to the bottom, i won't be able to do that. >> the concern is not only about china but the stronger dollar. and that is in the nexus of worries here. >> and that will get stronger and hurt emerging markets. and we talked about freeport macmaran down. and this is still a stock i think finds it small under pressure. and a huge crude after hours and testing the 43 devil. so we could talk about

transitory and crude all we want but i think there is another leg down in the commodities market. so dollar strength and taking it on the chin. what does that mean for s&p, going from 2080 to 2600 in weeks. >> would you put glenn core back in your screens and one of these companies is going bust. and from a credit perspective, you have to watch this because that is the big fair for me. a credit scare is different than a gross scare. that is what you should be watching. >> and would it spread, is what you are saying? >> i think if you look at credit spreads in a lot of different sectors they are telling you that not only higher rates are something to be concerned about but credit is another issue. >> and apple falling after there is question about the company's supply chain. take a look at what the analyst behind the note had to say. >> from our asia team indicates a slightly earlier weakening in

apple supply chain so it is a period of time for which the iphone business will shrink year-over-year over next year. >> and he flashed calendar year 2016 earnings by eps estimates by 6%. so carter is breaking it all down at the smart board. carter, what do you see? >> well it isn't great. but apple has been dragging for a while. let's look at a few charts and see if we can figure it out. an uptrend in question. there is the uptrend. take away your lines, we know we've broken trend. there is no way out of. >> that but after the break in trend, we tried to rally brack. and while the rally on the apps basis is factual, it is underperforming the market the whole way. so this seam chart, here is the break in trend and the rally back absolute. but it is underperforming the entire way. so that is suspicious, not good. not a good setup. let's draw the lines in a very

detailed way it. can't be random that these three tops are exactly 132. it can't be rond om that this is matching up with this. that has a lock of something -- look of something fairly major and the risk it we break this line and then we have something unhappy to the downside. in any event, close today 116.77 and i think you could g get 100 out of this. >> 100. carter thank you. >> did he say play for them? >> play for the down. >> i thought he said pray for them. >> he is a dramatic guy. >> carter. what happened to apple today wasn't just apple. there was concerns about the supply chain as well. we saw the chips that feed into apple, noels, invest, sky work solution, all down sharply today. >> i think it is a little bit about slowing and what sticks with this call. nobody knows. and when the company reported a couple of weeks ago, sales in china, they were up 100%

year-over-yearm and they were also down 5% generally -- sequentially, and i'm not sure they could maintain at 100% year-over-year. and i think that is the driver for apple until we have new product introductions in the spring. >> the other names we mentioned, texas instruments topping out at 69.99 very early this year. i think in february of this year. we recently retested the level and it is still effectively right there. close to 57 today there. texas is an outlier. it is imperative that is closes the next leg higher. it could set up interestingly here if you want to take a shot on the down side. qualcomm can't get out of its own way and the semis are weak. and the apple supply chain changes. i think they are smarter than the supply chain indicates, i think. >> the supply chain check would not necessarily be -- >> and the point that pete makes and tim made it before, i don't

think it is one plus one equals two. >> but the ramp lower, according to credit suisse is dramatic. for the december quarter they cut the estimates for unit to below 80 and for march they are going 45-50. so quarter on quarter, that is a big decline. granted the march quarter is a much slower quarter than december but still that is about half. >> i completely agree with gee. apple is such a complex mosaic. when we get pieces and try to extrapolate the story, that is so difficult to do. and we've seen the supply chain stores before. i think we have more time and more data to come. >> i would simply say china is 60% of the sales and as dan said 101 that is where it comes down to. i would be careful on china. so far it is not weaker. up next, trouble for tesla. the stock turning negative on the year today behind the slide and whether is more bad news for elon musk ahead. and the latest sign that silicon valley may be overheating. what has one of snap chat's

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pharmaceutical stack mallinckrodt seeing a drop today. it has been criticized and confirming a short position in the stock. citron saying that mallinckrodt had more down side than valeant but things took a turn for the worst for citron after it appeared on the half time report and inadvertently sent the stock soaring with these comments. >> what makes this more compelling than anything else out there is you see my research actually playing out. this year they were supposed to do, in the proxy statement, around $1.5 billion in sales of actar. they are coming in in under a billion dollars right now. that is a colossal miss. which means, you had the ceo on cnbc this morning saying that everything is fine with insurance. when you are supposed to do $1.5 billion and in one year, the year after you acquire the

drug you are doing less an a billion, you either have problems with the insurance reimbursement or having a problem with your sales force. and i'm sure the sales force is in tact. so it is the insurance reimbursement. so it took longer for the story to play out than i expected it to. but that doesn't mean it doesn't play out in time. >> it didn't end well. the stock ended the day higher by more than 7%. and we should know too, karen, before we talk about the trade, mallinckrodt responded to mig terrell about that specific claim and they said that $1.5 billion number is the filing made by quest core for the entire company. so it included other drugs. so it is not fair to say 1.5 versus $1 billion this year because that included revenue from other drugs. >> his interview was this morning. i think this space between valeant and this, it is so dangerous and so just completely detached from fundamentals going on in the business. you have a combination of -- you have citron, which is clearly a

following and now maybe an anti--following as well, and then the valeant story and then the idea of, all right, people trying to front run what hedge funds will get redemptions and who will sell and buy. it is like walking thera land -- a mine field, there we go. i don't know how one could safely make a bet and have a handle on what is happening. >> what is curious about andrew, and he had the report on valeant, he has yet to publish anything on mallinckrodt. so now we know he has a short position. he tweeted the stock is down side, it goes down 20-something percent. and you are left wondering what is happening. >> this guy does in depth research. but it feels a little bit like we're shooting from the hip. and i think that is -- it is -- in that environment, as an investor sh the long position looks scary, but the short position looks scary because it is hard to know what the valeant

argument is behind us. but this is a guy who knows how to do research. i would say this whole experience over the last two weeks has been a little scattered. >> valeant, it is at levels timmy would agree with now -- >> really. >> still level. >> the technical level? >> look at the amount of volume it is traded on. an i've been negative on this for a while. and allergan had a huge day. go ahead and ask me a question. >> could technicals apply to a stock -- >> yes. because i still think there is significant downside here. but there will be a couple of days where you could get a 15% rally in this name and still be in a significant down trend. we might be right there now. >> next up, a bad sign for four-year-old start-up snap chat. fidelity is writing down the stake by 25%. according to morning star, $15 billion, snap chat is the fourth most highly valued private u.s. start-up. guy. >> where do you go?

media stocks. what does it mean for the nasdaq. and surprisingly enough, this stock is within whisper of an all-time high. ndaq. it is not a big valuation. they just reported volumes year-over-year decline but not as bad as people thought. it is solid. doesn't trade at a big valuation. and we talked about facebook forever. i thought the last quarter was out standing. the last six to seven quarters have been outstanding as well. 35 times forward earnings. i don't think it is expensive given the growth rate we've seen. >> and i would say it has nothing to do with f.d. the extrapolation is twitter. i am long on it. and i did some position and went into calls. they are going to take some time to get this thing turned around. but when you have snap chat as the closely aligned mobile messaging app marked down by an institution like that, it is not

fantastic for twitter. and you mentioned nasdaq. it is about lizzing. it is about new ipos and it could be the end of the cycle. next up, tesla, the stock falling 2.5% turning negative on the year. the only piece of news out on the electric carmaker is from adam jonas where he details they may announce a mobility app in the next 12-18 months making it more like uber. tim? >> to me, this stock is really about deliveries that are lar largely irrelevant and you buying the battery storage. so negative on the year. it doesn't surprise me. at greater than 100 ebidta, the cash burn is high. looking at deliverables for this company and they surprised and gave you assurance in q3, margins were better but this is a stock you stay neutral if not short. would you not buy it. i think 200 will be tested and 180 was the low that was a good bounce off. but there is no reason or the

c callalist, the fourth quarter deliveries, 17,000 to 19,000, so what. this is a battery company or a storage company but not priced as a car company. >> we go back to the low on this stock? >> agree with timmy. i'm surprised it stayed above 230 as long as it did. i don't think the quarter was that good. back below 225 and i think we make a push down toward the 180 level. to me, not a lot of cal aftist and if the market will get squik squishy, tesla will not be fair. >> cyber art leaving the space lower after it was downgraded from a neutral to a buy. and barracuda, fire eye, palo alto seeing the pain and seeing no boost from the massive jp morgan hacking incident. >> the indictments came out today. that was a huge hack last year. and you would think that that sort of headline would get this group going a little bit.

cyber arc down 10%. that is a big move on a single day on an analyst downgrade. there is high-short interest on the space and the shorts have this one right. i'll take you to palo alto. it is a name guy likes a lot. it is up 28% on the year. they report on november 23. if you lose that leadership, the space is done. it is dead meat for a while here. because that is important. i'm sure we'll circle back in the next week or so. >> the call, on a side bar. 248 from 80, in case i misspoke. reversed the two. but obviously down. so in terms of fire eye, had a big earnings miss recently and the reason why analysts are saying is because, you know what, spending is becoming more normized in the space and they are spending more on preventative measures and fire eye is more poised for the emergency breaches. we have an emergency breach now, guy. so the question would be, is maybe fire eye a buy on this big pull back? >> i thought it was $7 ago when it had a reversal.

two days before it reported earnings. so clearly i was wrong on that. i think dan makes a good point. you need to know that the jp morgan headline would have gotten the stocks up 5-8% and they were down today. that is a tell and it doesn't bode well for the space. al allo alto has not traded well since july and everything dan said is spot on. >> dan knows a lot. still ahead -- it is the one chart had a has the street buzzing and not in a good way. the stocks that could signal a recession is right around the corner. i'm melissa lee and you're watching cnbc, firz in business worldwide. here here is what else is coming up on the show. >> that described what is happening to the solar sector. but perhaps it not as bad as it looks. we'll show you the one indicator that is shining the light on which solar stocks are worth buying and which names are worth

selling. plus -- >> i think i'm going to have to go supersize. >> good choice. because more bacon and fat could lead to fast profits in your portfolio. it is a dining divergence that has our traders licking their fingers an we'll explain it when "fast money" returns.

welcome back to "fast money." if you thought things couldn't get any worse for solar stocks, you were wrong. sun edison falling 20% today after the earnings report left investors wonder field goal the company had enough funds to keep it running and taking the rest of the sector along with it. solar city, first solar and sun power all sinking. but our next guest said there is a way to separate the good and the bad. larry mcdonald, how do we separate, in the market place they are being punished all across the board? >> melissa, one of the first things to look at is to first of all multiple convert issuers. over the years, companies that go to the convertible bond market over and over again have been somewhat troubled. enron, adele communications, cal pine, delta airlines, they all filed bankruptcies. so companies in the convert market are often a warning sign. but the best indicator short-term is look at the equity

market capitalization versus the debt. so if you think about a piece of pie or a whole pie, once the pie starts to become, say, 60% to 70% debt and your equity is just a quarter or say 40% equity versus 60% debt, then your odds at the table are weakening against the bond holders. >> so going through some of the solar issues, larry, the ones that you high lites are first solar, which has a small amount of debt compared to the market equity capitalization. $5.5 billion. solar city's $2 billion versus $2.5 billion and then you come to sun said is, which is a huge debt. >> that is a big pie. and a year ago they had 60% equity and the 40% debt but the equity has fallen so much but it is staring at a colossal pile of debt in front of with covenants

protecting the bondholders so watch out there. but another classic indicator to watch for investors sitting at home and when you are in a stock and the bonds, in the one or two year matures, if those bonds yield more man the five year -- than the five year or the three year, that is a problem too. so look at the near term debt maturities. if the debt is perking up on the short-term bonds it is another warning sign for the equity holder sitting at home. >> it is karen. let me ask you. now i look at the debt and the equity as well, so sun edison, building a lot, this is the business model they have in the short-term, which they are trying to slow down. is there any part of what happened in the debt and in the equity today that seemed -- that was jumping beyond just sentiment changing here? >> well, you know, this has been -- we've had three capitulations, karen, over the last three months and spectacular rallies from the

capitulation moments. but over the short-term, it is just a warning sign. it feels like a big holder -- a big equity holder less the equity today. the bonds were off as well. the bonds are busted. they are busted convertible bonds and trading at distressed levels but it felt like the equity was off the bonds today so it feels like a large bondholder left the name. >> and i know you don't trade or follow this name but you have an expertise in the credit markets and looked at companies that have taded in -- traded in similar fashion in the past. what do you think happens. what is the extrapolation investors should walk away with when they see the charts? >> typically what will happen -- the company -- you want to look at the capital market. it is important right now especially at this moment in the market, the capital markets, if they say open for solar, then sun edison could issue another

bond and use that to buy back bonds or reduce the short-term maturities. so if they have access to the capital markets, then it is a better situation. if the bond market closes down for the solar industry, say for a year, then the industry as a whole encompanied the highly levered and they are in trouble. >> thank you for your analysis. larry mcdonald. karen, you've taken a look at the bonds because you used to be in -- >> i have some equity, puts, calls. i do have delta long though. so this is a painful situation. i think though they do have available credit to them. if you have warehouse lines, and trading like that and terpa is not trading well either, it is a broken model, they are trying to slow it down. >> and look at solar city. not only is there a question of where the balance sheet could be more imperative if the equity goes down. we talked about the numbers. but they missed on the third

quarter numbers and the growth expectation. so panel prices and labor costs, those are risks to the company if they go down on the panel prices and the price going up. so far so good. but when they price down the growth expectations and that is what they did, that is very disappointing. they are talking about cost cuts instead of growth. so i think you add that to the financing and the access to the capital markets and this is broken even, greater lows than i thought it would go. >> and i would go back to the sun edison. karen hedged here. >> no, but i have -- >> there is no reason to own the equity any more. it is done. it is over. it is a $1.8 billion market cap here. >> i don't see that at all. >> and you are talking about the only way to survive is to take more debt. >> no, that -- >> if you want them to be exposed to enterprise, you have to find the debt. >> you have two different things. you have the optionality from owning the equity, that forget what happened today, if you just --f step back a

little bit and see they have some time. they have some time and they have some warehouse lines. those are two important things. >> the equity markets turned against it -- >> they don't have equity right now. >> there is an option there that is valuable. up next, mcdonald's shareholder meeting wrapping up. we'll find out what the ceo had to say that has gotten investors so excited right after the break into and later retailers on deck. jc and nordstrom out with earnings. which names could disappointed and which may be setting up for a holiday retail rally. much more "fast money" up next. sure, tv has evolved over the years.

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welcome back to "fast money." closing near the highs of the day, the s&p snapping a four day losing streak. finishing in the green. and despite a rough day for apple, which was the biggest decliner, falling more than 3% today. here is what is coming up in the second half of "fast money." a recession could be closer than you think. we'll explain why investors are so worried. >> and plus twitter, a rough couple of weeks but we'll explain why traders are betting on a big bounce in the stock later this hour. but first let's tart off mcdonald's.

the investors meeting just wrapping up. let's get to courtney reagan for the details. >> the meat came in the beginning. the ceo easter brook announced they are aiming to refranchise 4,000 restaurants, up from 3500 announced in may. and increasing the gna savings tart to $500 million from the $300 million guidance. and increasing the q4 dividend by 5% and the cash return to shareholders to $30 billion. that is $10 billion more than previously stated. the majority of which will be funded by issuing additional debt. moments after they predicted it would, s&p lowered the credit rating notch one rating to bb plus because of the debt. and easter brook explained that they will not pursue a reit or leaseback or other real estate structure. here is how he explained it. >> it takes financial, text and property perspectives. we engaged in robust base within

management and we've been challenged and stretched by our board of directors. but our conclusion is that we don't believe it serves the best interest of shareholders to pursue a reit at this time. the potential upside is not compelling and the future value at risk is too great. >> easter brook said the move to all-day breakfast is quote, really encourage. the president called it the next growth platform. mcdonald's is seeing 15% of food purchases outside of breakfast, including a breakfast item. the average check is higher among those purchasing an all day breakfast entree. they changed the recipe for the egg mcif you havin in september and said the sales are up 21% for that item in september compared to the period prior. and tune into "squawk on the street" tomorrow and when we'll have an interview with the mcdonald's ceo steve esther brook. there was a long meeting.

but they've made a lot of progress in four months. >> so the average check for the breakfast purchaser is higher but did they address cannibals a is of the other parts. it doesn't mean that checks later on in the day aren't lower. >> they mean the check for the rest of the day, not the whole -- it is higher. >> okay. >> exactly, now that they are including a breakfast item before the breakfast part of the day. >> got it. okay. thanks courtney reagan. it sounds like maybe instead of getting chicken mcnuggets you are getting a egg mcif you hamu stop it off. >> and the people going through it and claim -- and a couple people i know very well have tremendous responses, but others are worried about the kitchen renovations and the complication of doing this all at the same time. back to the reits. rents and royals are 23% of revenue.

they provided a good revenue stream and conservative revenue stream for shareholders right now. 3.2% dividend yield. easter brook is moving -- i think swiftly, but not -- not carelessly and i think there are a lot of things these guys can do and so far on the menu changes and looking at the -- franchise is what people wanted a year and a half ago. that is good news. giving people 3% difld yield, that is did. >> and mcdonald hit a new high and that got us thinking could more calories mean bigger returns. dom chu is taking a like at the dining divergencies. dom. >> so melissa, when it comes to the food that we consume, wee -- we're seeing a huge divergence between healthier options and the mass produced one. let's talk about chipolte. a hot stock over the past couple of years here. but now so far over the past year it is down 4%. meanwhile, dining giant mcdonald

which people gave up for dead, up 19% during the same period. on the fast food side. now the consumer productside. haines celestial, more upscale products, the tock down 15% over the last year. and smuckers which makes peanut butter and jam and coffee, is up 9%. and one divergence, on the grocery side of things, kroger, one of the biggest supermarket chains in america, over the last year, near all-time highs, up 27%. meanwhile whole foods on the organic healthier side, down 37%. so again, melissa, when it comes to the trades, huge divergence happening showing the meaner aversion or change in the ebb and flow of the food market. back over to you guys. >> thank you, dom chu. and now time for the food stock showdown edition of would you rather. we'll look at the names dom just mentioned and we'll shart off with naj anl. would you rather chipolte or mcdonald's? >> i jumped the gun there.

i think it is a simple one here. i think like tim had this story spot on. i would go with chipolte and i'll tell you why. mcdonald's is expected to grow. it trades 21 times the earnings. and chipolte trades at 31 times. i think they have a huge runway ahead of them. only $5 billion in sales, that is 20% of mcdonald's. for growth, you go with chipolte. the good news is with mcdonald's. >> and hane celestial versus smucker's. >> i say hane. it was a $70 stock over the summer. not surprisingly with whole foods and the space it has got caught up in the noise and now $45 stock. trading at 18 times forward earnings as does smuckers. i'm betting on simon every day of the week. >> i know. and two major grocery stores,

whole foods versus kroger. karen. >> whole foods -- >> wow! wins across the board here. >> to me, if you look at the valuation, i know it is down this year or recently. i bought -- i like it here. the valuation is the same. it is the same p.e. and whole foods is cheaper on an ebidta basis. we've seen enduring brands that stumble, like a starbucks, really hit a wall and yet they were able to go through it. i think whole foods will be able to do the same. i think there is more growth ahead of them. it is not a bad valuation here. whole foods by a lot. >> that is interesting that all of you sided with the healthier option. >> and i wouldn't do. >> that i would say that i think -- kroger -- we know that the whole health food industry is moving to the mainstream. it doesn't mean there is a bad place. i think haines will do fine. but kroger is making market share and costco and target taking market share in this space. i think it is closer to 33 or 34 times.

i don't care about the recent incident and i care care about the -- i care about the valuation. the stock right now i would say is broken today. i look at the stock -- >> it is down. >> it bounced off a key 600. but that is a difficult thing. >> are you going to take us all down here. >> you all are wrong. >> i'm going to leave the smuckers. but haines, i think you have brands that are probably seeing the best days in terms of valuation and multiples. >> peanut butter is good for you. >> except i get wicked headaches. i'll have a peanut butter sandwich and a couple of hours later. >> you are special. >> good point by you. >> coming up next -- >> i'm good to go. pop three of those -- >> our guy adami took a trip to the mall to see how good consumers feel ahead of the shopping season. and what he heard might surprise you. and that is later. and christy's selling this painting for more than $170 million, the spekd most ever sold. could that be a good sign for

stocks. we have all of the details right after the break. all my medical expenses,oesy i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait.

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money." big art auctions are underway in new york city. robert frank has the details. >> we are already more than a

billion dollars into the $2 billion fall auction season here in new york. the two shough case sales are coming up, christys tonight. and among the trophies is a louisiana bouja spider, expected to sell for between $25 million and $35 million. also the famous andy warhol portrait of mau estimated to sell at $40 million. they are hoping that bidding from china will remain strong despite the slowing economy. last night a chinese collector paid $170 million for this painting. we'll have it in a second. a reclining nude. the buyer is lou chon, a chinese billionaire who was a taxi driver and building a private museum in shanghai. but there are some signs of weakness. we'll see tonight and tomorrow whether this is a matter of

taste or a cooling of the art market. back over to you. >> karen has a question, robert. >> so one of the pieces of the -- the bold pieces of the 70s is that it is a new asset class and art is a place for people to put their money when markets around the world are volatile. do you buy that as a legitimate asset allocation and therefore some sort of floor for the art market? >> i do. if you already have money in other asset classes, there is some evidence that suggests that art collectibles is an asset class that could be a hedge. on the other hand, making money off of that like sothebys and christy's is difficult because they are spending so much on guarantees working to then get to sell that the business of auctioning art is proving to be actually a big expense rather than a big business. so yes, it is a genuine asset class but they have yet to prove they could make a lot of money on it. even in the midst of a huge art

boom. >> thank you robert frank. that is a perfect segway to our chart of the day. and take a look at the chart of sothebys from our friends. big declines in the stock price. a good indicator of soft economic times and co insided with the last three recessions. so how big of an economic indicate could this be. robert's point being that it is not. because the business of selling art is different from actual art sales. karen, you've been in the stock? >> yeah. i haven't been in for a while. i do think though that there is a trophy like -- aura around sotheby's. i could see somebody -- and i thought it should be private because they don't want to release the details of the guarantees they offer. christy's is private -- they are not public. they don't have to disclose that. i think this would be a big takeover target for somebody like -- i think it was -- [ inaudible ]. >> and the numbers are out and

one thing it shows was a slight bip but the investors are being more discerning. so these are people with north of a million in their locks, something dan is doing when he is out there. >> sure. >> i actually think that point about discerning and also as an asset class is important. think about the marks. they are momentum markets. and think of the savviest investors have gotten in and moved the markets. so when you are seeing some of the stuff trade -- and it is trading, people. it is not always great for the brokers. we know brokers' whose business stinks. but the investors who know how to trade make a lot of money. >> and steven cohen on the south side of that mau, as a trader, that is good. >> what does that tell you. at the top maybe. all right. coming up shares of twitter taking a beating over the last month. why traders are betting on a rally right after the break. and the shopping season is getting into full gear and guy adami hit the ground running to

see how it is shaping up. coming up next, things get a little crazy here at the mall. 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. we've got a slew of retail

names set to report this week so we decided to send good old guy to the mall to found out on the ground where customers are really shopping. >> check it out. i'm here at the palau saids mall, rockland county, new york. big earnings season for retailers. we're going to find out the deal. let's go inside. it's on. >> would you rather macy's or nordstrom? >> macy's. >> nordstrom. >> j thv penny or macy's? >> macy's. >> i'll try macy's, how is that. >> lord and taylor and joss e. banks. >> what is your favorite department store. >> macy's. >> what is your favorite's department store? >> macy's. >> macy's, nordstrom. >> footlocker. >> it was the frank gifford jersey, wasn't it.

>> where is she. >> it is a bed, bath and beyond. >> apple tv. >> diamonds. >> for you or for your lady. >> for me. >> football injuries. >> are you married. >> yes, i am. >> let's try again. what is the go-to gift for this holiday season. >> oh, jewelry. >> of course it is. >> who were the older gentlemen? >> a bunch of curmudgeons sitting around. >> are they your buddies. >> it was early in the morning and they are hanging out talking sports and i asked if i could join them. great group. >> you were a bad looking bunch. >> you look like bad -- >> it is like the muppets up in the gallery. >> we had a great job producing. >> a slew of names report this week. macy's report tomorrow, and kohl's on thursday and jcpenney

on friday. take your position ahead of earnings. so let's go around the horn, tim. >> macy's is an extraordinary drop down from 40 to $47. macy's is all priced in. >> to your low yesterday. >> it did. i think they're go toss miss but that might be priced in. the thing that would get the stock going, it has to be something on the real estate front not the one-off deals it. has to be something bigger which i don't think we'll see tomorrow. >> mr. mall expert. >> i am a mall expert. macy's, the tell is not expense at 10.5 times the forward earnings. letter m. it is a tough month for twitter. investors see the stock falling more than 12% but some think a turnaround could be afoot. dan is at the boards. what are you seeing? >> the price action today was pretty lousy. and even the "options action" was short trading, call volume

was two times the active value. but the stock below 27 and traded for 40 cents. that is making a near term bet the bet will that it will bounce above the close. and let's look at the chartch it is a massive down trend. every piece of news is a bad news. they have new management and shake up the board and introduced new products. investors don't seem to care. think the snap chat valuation was out there amongst social media investors. this is the year-to-date chart. this is the level, it has to hold. we know the ipo two years ago was $26. that is psychologically important. here is the important since the ipo. obviously the down trend is more pronounced. down 65% from the all-time high. it is down 25% on the year here. it really has to hold here. i think at some point they will get this right in the near term, it is just a bit sloppy, at the same time we got the stoyy from

the ft cutting the valuation of snap chat by 25%. does this put pressure on twitter. >> it is priced down on the expectation that people don't know how they will monetized. a publicly traded company is more better than private one. >> for more "options action," check it out at 5:30 on friday. up next, the traders tell you what they are watching for tomorrow. stay tuned.

finally "fast" but not least, check out this funny video. six goats jumping on trampolines. they are playing in the backyard and had the opportunity to bounce around. very funny. time for the final trade. tim. >> reynolds american, they are a nice pullback. and "options action," the stock is ready to buy. great long-term staples. >> dan? >> carter is the man but if you agree with him and long apple, you may want to consider selling calls against your apple stock. >> chairwoman. >> so retail space had a lot of news by i like michael kors, better than macy's. >> jump around, tone loc.

>> that is cole pain. he is funky cole medina. >> three final trades. >>lee. thanks for watching. stay tuned, "mad money" is up next. 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. my job is 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. and