stocks up 6% for the s&p 500 since then and financials are up 8%. >> right. so i don't think it's going to be anything major. doesn't say anything that's a catalyst to get the stocks higher, i think we'll see. >> "fast money" begins right now. "fast money" does start right now. live from the nasdaq market side overlooking new york city's times square. i'm melissa lee. tonight on "fast" stocks surging but one classic market theory say things could soon take a turn for the worst. we'll tell you what it is and what it means for your money. not just geeks like guy adami, virtual reality and some of the biggest companies betting on its future. later, some. hottest stocks this month have one thing in common and it could be troubling. we'll explain what it is and what it could mean for the real, but, first, we start with the

markets. stocks continuing this late month surge, dow soaring over 200 points and s&p closing at its high elf level since january 7th and here's what was different about today's real. david faber reporting honeywell and united technologies are in talks for a mega merger, so does a deal like this confirm the recent stock surge that we have seen. are these the animal spirits? >> animal spirits. u tech and honeywell, david reported on that years ago. >> decades. >> decades, sorry, david. with that said, and i'm not suggesting i knew it would get here but we talked about this last tuesday. we said here's a piece of good news, the ovx, oil volatile index made 81.5, new 52-week high and closed down 8% on the day and said despite the fact that crude closed lower that should go well for the broader mark. here we are 80 points higher than that. talked about 1950 being a level. trade to and fail. that's exactly what's going on.

when you recall when the bank of japan went negative rates, 1950 that the s&p traded up to and failed against. i think that's what's going to happen. >> if global growth is going off a cliff. why would the two industrial giants get together at this point? >> think about this, top line growth. world line absent of top line growth. think about the synergies. companies will have to go out and do some sort of m & a and mergers in some shape or form and make sure. >> correct. >> there's not the growth that we're seeing. >> it's a positive thing. >> it's an absolute layup if they can get it through. there could be issues from the standpoint of getting the deed done. absolutely in the absence of top line growth, more ceos go on the risk curve and bolt on companies where there's synergies and the ability to drive earnings. >> the animal spirits are bear spirits? >> if you're buying this market, you're drinking the spirits. a short rally, nothing changed and the economic news today got

worse. pmis out of japan, out of europe and the u.s. saying the economy had another downturn in february after a little bit of positivity in january. >> i agree. >> totally agree it's a short covering rally. look, no doubt that that's existed. in general people were totally caught off guard by 130-point s&p move over the past few sessions so when you come in underpositioned in some way shape or form they panic. panicked to the upside and panicked from covering shorts, for grass and stocks and they feel that they may have missed out on. will be short limited maybe another 20 points or so. i think we break through the 1950 level. >> what's your deal? >> i don't care that a rally is made of short covering because downdrafts that are due to short selling, they don't get, well, it's just a short selling downdraft so i don't see that as a less valid rally than one that is more long. to me it's sort of the start of a rally, but back to the honeywell/utx thing, i don't think this is indicative of anything in fact.

kind of bearish in terms of growth but the other thing is if you see m & a because there is no growth and you start to -- start to see deals with stocks and a lot less cash, then that's very conservative because you get synergies and you don't lever up your balance sheet. >> let's flip the question then. what have you got? does it seem that the rally is not valid? >> i don't think it means either/or but a reason why the rally might be valid. everybody things i'm an old doomsdayer, i'm not, always happy. >> you're saying you're not had a nay sayer, is that what you're saying? >> good. >> means i'm a good, whatever. anyway, the transprtsz topped out in november of 2014. this has been the most meaningful rally in the transport etf in about 18 months or so. we've bounced from 120, 115 to 1 a 20 to current levels of 133. that's actually pretty good 1. 345 to me is a huge level. see what happens. it's as huge as 1950 is to the

s&p. >> all right. despite today's real our next guests says there's troubling signs underneath the surface and it's coming from one economically sensitive group of stocks. let's go to carter worth. couldn't ask asked for a better intro. >> the dow theory says one of the major indices, the transports or industrials have have to confirm each other. these have been going down the better part of a year and a half and now we get the ricochet. there's a lot of beta in these names and you expect a ricochet when the general market advance but this ricochet is a little off the grid, and it's left the index and individual stocks back at very difficult levels. you can see the percentage change here. this is, again, if this is your -- if this is equities as an asset class, the s&p, we know even if you adjust for beta this kind of move, 25%, 25%, railroads and so forth or even the transports themselves, this

is too much and let's take a look at the few. new york stock exchange airline index, a lot of congestion and returned to that level, 25% move and we're also basically up or against a downtrend so i'm a seller therefore countertrend rally of 25%. well, the truckers the same thing. not only back to a level of congestion, but we are up against the downtrend line so here, too, too much. railroads, and this is where the big cap, is same general circumstance and established downtrend and we've come to that downtrend. back to a level of considerable overhead supply and then this is the index itself, the etf that literally mirrors the dow jones transportation average. what we're up against some levels here that you basically, you're into overhead supply and into your downtrend and can it go a little bit more. the bigger proposition is that this is been leading on the way down. it's characterized by a sharp

countertrend rallies and then there's this setup. this almost says it all. this goes back to day one, 1980. this is a 35-year chart. even after all this giveback, the transports are still double the performance of the s&p. one could say it's overdone, can't go any lower. first of all, they rallied 16% off the low and put in the long-term picture, i mean, these are cyclical assets and can undershoot the s&p by the same amount. i'm selling the raly. >> is the corollary, carter, that you think the s&p will sell off? >> ultimately the s&p is bouncing, back to whether the seven 50, can you eke out 1965. markets are built to go up and they do go up 70% of the time so people believe in bite dip and the reciprocal is sell the rally and nobody believes in that. >> all right, carter, thank you. carterworth of cornerstone macro. what do you think? >> this is actually a really -- carter led into exactly what karen and i were talking about. to me when i say short covering

rally and i see something like the airlines up 25%, that to me, i have to discount that real, and that's what i mean when i say it's just a short covering rally because when you're short you tend to panic a little bit more. you've got to cover the shares and tent to be a little more aggressive in your buying so that says to me, all right, maybe the short covering rally is done. now, are there any real buyers? is there going to be a so-called cash coming back into the market? my answer is no, and when you look at the transports the economic news, the fundamentals behind the transports haven't gotten any better and would i argue they have gotten worse. >> within transports do you see value in the airlines or railroads? >> railroads i think because you get a lot of chatter about potential mergers. warren buffett has been talking about railroads and to bk's point, it started with the railroads and moved to the airlines and made its way to the truckers. i mean, this is a space that carter just said, it's a -- it's a bounce in what was an oversold

condition. i do think it fails at 35 and we'll see a retracement back lower. >> going to your point, steve, it would be born out of a lack of growth so therefore they are searching for growth. >> a lot of these mergers have been based on that solely. >> for the railroads, the coal situation has been particularly -- >> hit on all sides. >> what's the sustainability of the rally? i agree. the move in a lot of these, the transports and rails, et cetera, too far too fast out of the gate but you look at some. setups within the spaces you can like the retail space. saw what happened when other names have really purged inventories. a setup in other sectors you can really make a lot of money. macy's tomorrow, see what happens. that's another name. >> coming, a new survey stays a majority of americans are now siding with the government when it comes to its request to unlock apple's iphone. can the cap stand the heat and will the couldn't verts versye start to weigh on the stock and airlines and hotels could be

disresulted by an emerging technology. what it is and which stocks are paced to cash in, and uber just wrapping up a conference call about the tragedy in michigan. we'll tell you what the ceo said and what it could mean for the company going forward. much more "fast money" when we come right back. want to get their hands on. if they could ever catch you.

speaker of the house paul ryan, the election, the economy, immigration and more. plus can h man 1: [ gasps ] man 1: he just got fired.

man 2: why? man 1: network breach. man 2: since when do they fire ceos for computer problems? man 1: they got in through a vendor. man 1: do you know how many vendors have access to our systems? man 2: no. man 1: hundreds, if you don't count the freelancers. man 2: should i be worried? man 1: you are the ceo. it's not just security. it's defense. bae systems.

welcome back to "fast money." news alert on a beaten down pharma company. seema mody has the details. >> reporter: potentially bad news for valeant form suit calls. the restatement is likely to concern the sale of drugs to distributor phillidor and we know it's a pricing strategy. melissa, the company has until next week to report fourth-quarter earnings or seek an extension. >> back to you. thanks very much, seema mody. we were noticing the strange tape in valeant tame because during the recession seen a 7% drop in the after hours and during the session we saw an 11% drop, unseemingly on no news and now there's news, bad news, interesting, huh?

>> well, very interesting. sort of wreaks of insider trading, you know. i mean, we don't know what the restatement is. maybe it's already priced in, i don't know, but i think that some people have that information. others did not. i mean, i don't know what could be more -- more blatant than this. >> absolutely. the stock was down 10.5% today on your point on 30 million shares. not like normal involvement four or five times the normal volume we've been seeing in the stock so somebody knew something and that's why people get upset back at home. sub-knew something. the game is rimpingtd i get it. i don't know who knew what about you somebody did something. there has to be an investigation. >> in that kind of vine they have to be able to figure out. that multiial volume is massive, institutional developing. they will be able to figure that out and do some sort of investigation. >> the trading today sinks. >> the whole thing sticks. >> strike pennies away from its

52-week low. >> the whole company and everything to do with this stinks. restating earnings of a subsidiary by all rights you should have known about, so all of a sudden you're just figuring out that maybe you didn't do the accounting right. to the point we have to restate our earnings. the whole entire thing stinks. if you're at home and thinking about buying on this dip, do not. stay away from t.7,000 other stocks you can buy. >> and that applies to bill ackman if you're listening out there. >> one thing we were looking at over the break. remember he increased his stake and did call spreads, buying the 130s against it but funding that by selling puts, so he had 70 strike puts. some that went away. they expired last week. >> right. >> let's say that -- >> i'm just saying it's kufious. . >> saying curious with nothing attached to it. so the delta on those means he's getting longer an longer as the stocks go down and the

position is getting bigger and when it's going down still hedging in that regard. curious to see what he does for it. for me i am getting a little spooked, we talked about jublia. i've sold our cbs, held it for years. like their story, done a great job, but i'm afraid there's more to it than this. there was the jim chanos story about that as well. i'm out of cvs. >> uninvestable. >> not in the eighth or ninth inning of this. >> looking before when the news crossed at its low and that was 6933, after citron's report that the report shorting valeant's. >> and we had a tradeable bounce. remember talking about it and huge conversation for weeks about this name and here we are right back where we started. i'm in the b.k. camp though 100%. have you no edge. if you think you're buying this tomorrow with some sort of edge,

have you zero edge at whatever price it opens at tomorrow. >> not only that, clear from today's actions somebody else has it. >> that's a great point. >> you're the patsy. >> one other hedge to be had. >> exactly. >> the battle over your iphone rages on, and that kicks off our top trades. facebook ceo mark zuckerberg coming out in support of apple's decision to deny access to the fbi. take a listen. >> i don't think requiring backdoors into encryption is either going to be an effective way to increase security or is real the right thing to do for just the direction of the world is going in, so -- so, yeah. we're pretty sympathetic with tim and apple on this one. >> pei research says 51% think that apple should unlock the terror suspect's phone versus only 38% that side with apple, so what do you think apple's end game is here? we're post late last week that this could actually be a good thing for apple because it's defending privacy in an age

where everything is moving to mobile and they are defending their core customer base. >> i agree. >> america is turning against apple. >> very important for apple to stick by their guns here, why people bought the stock and why people own their products. i mean, protecting the core, you know, privacy and security of the individual consumers that buy in product is a theme of theirs and i look at it in the end i hope they stick by their guns. totally agree with mark zuckerberg and i agree with apple as far as backing this to make sure they don't fall into the government's trap of unlocking it from this perspective. it's a tragedy, completely side with that. sad all around, but at the end. day there's a bigger picture here, and i think from a corporate responsibility perspective to their shareholders and to their core owners they need to make sure they stick by their product. >> whether that's calculated or not, that's -- that's to me what the end game in here is. apple goes, hey, you know what, we stuck up for your customers and shareholders, but we have this legal order, went to the

supreme court or however high it goes and there's nothing we can do about it, so that to me is the end game in this whole thing. what does it do to apple stock? i don't think it does much to apple stock. i don't think it's going to cause people -- it won't cause me to stop buying ale products. >> okay. well, already apple's been under pressure in terms of major shareholder selling. we know that, but take a look at these numbers because they are interesting. as of the end of the fiscal first quarter, wellington and fidelity each sold more than 11 million shares and then franklin resources sold 7. icahn sold 7. this is yet -- isn't this on even the edges another reason to not own the stock that's already having trouble fundamentally? >> i can make the argument that all the apple sales were sorlgs of fund sales. they were getting slammed in something and needed to raise capital and still likely to raise some thing. still significant positions in apple. my point is they dig in their heels, someone like donald trump gets up which he did on friday. >> boycott.

>> boycott apple. >> right. >> we talked about this last week and it's happening. people will start to hear that. they will get in a fervor. everybody is not as rational as david sieberg over there. there's a chance people boycott apple products and the other side they acquiesce and upset their client base. to me it's a lose-lose. >> if the court actually forces them to do it, that's a best case scenario for them. >> able to say they defended. >> but the bigger issue -- >> you would buy apple products. >> not stock though. >> buy their products, if they said to the government, fine, if we give you any information you want, we'll allow you to come in and view -- >> i like -- i like my apple phone. i like my apple computer because it just works. that being said, for the stock, the bigger concern to me is that cell phone sales, mobile phone sales are slowing down globally so to me that's what is going to hurt the stock and why i wouldn't buy. >> whether or not the sales we're seeing the major shareholde

shareholders, this is an atm fun, putting funds in apple and withdrawing fun from apple. they used apple as a source of funds, period. >> to your point about whether or not you would stop buying apple products. >> i would, absolutely. >> theoretically this would set a precedent and, therefore, all the other mobile phone-makers will be subject to the same precedent, so it actually levels the playing field, so in the end, if the court rules that the back door must be made available or what not, samsung has to do the same thing, everybody else has to do the same thing. >> except that story gets buried on page 19 of the "new york times." that's what happens. >> that's fair. >> you buy that company. >> you wouldn't buy apple products? >> i really believe in the privacy aspect of this, big believer of that and i only owned apple originally. >> one hears that hand thinks what's on your phone. >> i've got the privacy aspects of people not being able to break in, viruses being able to come into my computer system it. i believe in the apple product and i believe in that closed

architecture. >> right. still ahead, check out shares of fi fitbit. why it was such a volatile quarter. meantime, here's what else is coming on "fast." >> the next great trade could virtually be right in front of your eyes. we'll tell you about virtual reality's stunning growth prospects and why it could be the ultimate game-changer for tech. plus, some of the best performing stocks this month all share one quality. traders have big shorts on them. >> it's unbelievable. >> we'll give you the names and tell you what it means for the market when "fast money" returns.

welcome back to "fast money." facebook doubling down partnering with intel and nokia group and other partners in a new initiative to help speed up innovation. at samsung's galaxy s walk, zuckerberg walked past hundreds of audio members wearing the samsung head set completely unaware that the ceo was in

arm's reach. virtual reality will become part of our daily lives faster than we think. take a listen. >> you'll start to see it next year untethered. now it won't be the high definition movie and the leading edge games, but you'll start to see it in fun applications and what's nice is with real sense you can actually untether reach out and manipulate objects in 3-d space so for education, if you're going to go do the pyramid, open doors and move through objects and push things away, perfect application. for that high definition and first tier game, we're probably two, three, maybe or so years away from those things being untethered. >> so are investors underestimating just how big this can become? now i'm going to go to our chief vr correspondent here, guy adami. >> i was looking around. thought somebody walked in. >> you've done so many vr experiences. >> listen, and i get seasick, nauseous, the whole rig while

doing them. >> yeah. >> but you can -- and we talked about it then. can you clearly see this is going to be a huge industry, and facebook was at the forefront. a lot of people laughed at them but they laughed at them with i think what'sapp and instagram and nobody is laughing now. facebook is within its all-time high and goes higher. other stocks benefit and facebook is the big winner t.ain't for me and all the cats in barcelona. >> yeah. >> with their -- >> yeah. they all have the tinder app on their phone, just telling you because they need all the helped they can get. >> very long term, talking about gamers getting untethered in a couple of years. gaming companies aren't talking about this as a real product so i look at it and say long term, very long term, maybe ten years from now it could have an impact, but i don't see it as being a near term revenue driver at all for facebook, and i look at the gamers and say it won't necessarily impact them as well. google al some point will come

into play. think about google glasses, the same type of structure. >> for facebook, and in the meantime they have got what'sapp. >> this is why, so in the long run everybody is buying facebook because they have multiple revenue streams. mark zuckerberg had george orwell's "1984" in his pocket. that's a joke. >> oculus is expecting 500,000 units of sale in the first year. not a big needle mover in my opinion. >> not a reason to buy facebook today. i'm telling you they are at the forefront. >> even long term if i can put on a vr head set and not go to an amusement park because i can experience the ride in the comfort of my own home and not spend the money or i don't have to travel or i don't have to go to a concert live because i can experience it -- >> sporting event. >> you see where i'm going in terms of disruption that it

could potentially, right? >> that is true. >> and for sporting events, i mean, i'm a nostalgic for the nosebleed seats. >> i look at our company and say we spent a tremendous amount sending analysts across to london to market. they want them there in person. it's not about video conference, about having analysts in the office to ask questions. video conferencing to some extent everybody expect it had to be a massive cost-savings for corporations and ended up not being. >> vr may not be as big. >> i'm not going to travel. imagine calling up my wife, say hey we're going to go on vacation through virtual reality. >> at least in the doug house. >> yeah. still ahead, the best performing stocks this month have one thing in common, traders hate them. we'll tell you why the biggest shorts could mean biggest rewards for investors and fitbit, stock sinking and can it keep up with apple's smartwatch? all the details after the break.

much more "fast money" fust ahead.

welcome back to "fast money." the dow surging is triple digits ending the day up nearly 230 points. both s&p and nasdaq jumped only 1.5%. the dow and s&p are both back in positive territory for the month of february but still down about 5% for the year. here's what's coming up in the second half of "fast money." a shocking mass murder exposing some major security concerns at one of the highest value privately held companies irish, and in the process raising serious concerns about the sharing economy, we'll have a special report and the so-called fear index at the lowest level of the year, but is that in itself something traders should worry about? we'll tell what you traders are saying later this hour. first, today's triple-digit rally wasn't led by the stocks you would think. stocks and investors have been loving the last few sessions are actually the stock investors have loved to hate. not one man a lover, never a heart, the one and only dom chu. >> reporter: well, lovers and haters, melissa, that's what

makes a market, right, so let's talk about some. stocks that investors have loved to hate, you know, the ones with the most short interest so according to fact set data there's about ten stocks in the s&p 500 where short interest as a percent of floated shares is 20% or more. so it turns out that some of this past week's bigger gainers are also among the names that are the most shorted by wall street, so take casino operator wynn resorts, for instance, which has around 21% short interest. that stock has rally by 15% over the course of one week and that's after losing half of its value over the last year. then there's a natural gas company, chesapeake energy. its shares have rallied by 38% in the same time frame, but, again, they have lost close to 90% of their market value in the past 12 months. then there's a metals and mining company. freeport-mcmoran, we know it's in the news a lot. it's gained 41% in just one week, but it's still down 63%

over the past one year. so it's something traders are paying attention to, whether a lot of biggest rallies we've seen have legs or not. it's all about whether it's covering shorts for profits. is that the main reason, that's a big question so either, you know, love to hate or hate to love. there's probably a bit of both in this story, melissa. back over to you guys. >> all right. thanks so much, dom chu, the lover. let's trade it. you're saying that you don't want to discount the fact that it's a short covering rally. how about in the case of these sorts of stocks which are clearly sort of the trashier stocks because they were out of favor for so long. >> they are out of favor. there's something that's very sort of -- when these stocks go up by a big percentage move, it really is -- doesn't take into account the enterprise value. these are companies that are very, very levered. why the stocks are so low in the first place and concerns about them going bankrupt. so if you step back and take a look at how much does the enterprise value move when

somebody has a ton of debt, not that much even thought the stocks have gone up that much even though there's a sliver of equity. could they move up another, not that much, but still a huge move on the stock. yes, i wouldn't short them but i'd not be long them because you get another three days of crappy oil, and these things are going right back down. >> got news that h.p. billiton is cutting their dividend. >> still not in a range where people are making any kind of money. again, people are looking at is there going to be some kind of v-shaped rally in oil. i'm more in the camp we'll have an l "shape. look at natural gas when there was an oversupply, for five to ten years it basically went sideways. in that environment, in that environment in general, a lot of these names won't make money so i wouldn't buy into these at all. >> a trade, do any of these line up to be a trade, long or short? >> well, i think, the ones that are being the most short covered stocks. >> yeah. >> from a trade you probably would want to line your ducks you and find out which ones you should reshort or sell. there's so many.

look at freeport, for example, a very dangerous stock when you think about it. selling assets. all the news that came out about that. that's going to scare the heck out of people. i'll be fearful being short that name. the only reason to rally is when you are see a companies that get deals done, like all of a sudden you'll see the massive short covering real, and i think that's a chance to lay them out in energy, sell them across the board. i still think there's a lot of problem there. >> guy, a trade? >> kudos to steve grasso. freeport-mcmoran going up at 3.5%, 352 low, i think, and i was negative the whole entire way down, so i can't say that i didn't, but freeport-mcmoran, the issues they have still exist, i think to everybody's point here. wynn shouldn't be in here. i understand why we jammed it in here. wynn is a completely different story. when steve wynn started buying stock we talked about that being a potential tell. talked about double bottoms around 52 bucs, and i didn't think it was going to $80, but that was much different scenario

than what we're seeing in freeport and chesapeake. >> i wonder if dom is listening in the newsroom. >> dom watches this show religiously. >> and he's on the show all the time. >> and i'm telling you right now he'll tweet something. >> back at headquarters hanging out. speaking of stocks with big short interests, fitbit tanking in the after hours on earnings. seema mody back with the headlines on the call. seema? >> fitbit posting q4 earnings that beat expectations but the company will incur additional manufacturing costs to launch new products which will impact gross margins. listen in. >> at year end 2015 our r & d had increased to 624 compared to 226 at year end 2014. as a key part of our overhaul increase in r & d in 2016 we plan to further expand our capability to launch breakthroughs. >> the fitbit management indicated it's broadening its strategies saying while fitbit

is known as a consumer brand the real potential is to be a digital health platform focusing on biome truckers preventive care and making health data more actionable and meaningful. the company did sell 8.2 million devices in the fourth quarter. the real test will come up in march when its smartwatch blaze is expected to ship. how will it stack up against the apple watch? shares are plunging after hours on the disappointing guidance, keep in mind down 70% from august of last year and melissa, it's trading well below its ipo price of $20. back for you. >> seema, thank you. the after-hours special is down by 16.25%. give credit where credit is due and call out david sieberg because he recommended fitbit. >> i hated the stock a year ago. >> that's true, and that was right. >> i did say buy the stock into earnings, thought there was a trade here and i was dead wrong, a thousand times wrong and i said where did gopro bottom?

roughly just below one-time sales and that's where fitbit will open, right around one-time sales. apple is trading below ten times now, right? that's right around where i would say gopro remember -- fitbit should sort of settle in. again, i got it dead wrong from an earnings perspective as far as the quarter. >> i would have been long going in also. do you think that this is enough for a short seller to cover? or are they waiting for something bigger? >> waiting for a catalyst to cover. they may try to press when they can't get it down more. they will look at what happened to a lot of these names that got washed out and how quickly they reversed. this is a scenario where you may see them come in on the buy side. i wouldn't be surprised to see the stock come back into current levels. >> okay. still ahead, a horrible tragedy in michigan shining the spot light on uber safety concerns raising questions about the sharing economy. we've got a special report up next. plus, something happened in the options market today that could signal more gains to come. we'll tell you what that is a little bit later hon in the

show. more "fast money" straight ahead.

the future of fitbit, earnings reaction and strategy from the ceo. what's on track next that could get investor hearts pumping. "squawk on the street" 9:00 a.m. eastern on cnbc. >> welcome back to "fast money." an uber driver was charged today following the shooting death of six individuals in kalamazoo,

michigan, as the investigate continues. kate rogers is at cnbc global headquarters with the late on the story. kate? >> reporter: hi, melissa. uber held a conference call defending its current policy of not use fingerprint and police background checks and said in the light of this weekend's tragic estrengths would not be changing its policy of using third-party background checks in its place. spokespeople for the company said given the fact that the suspect jason dalton did not have a criminal history, a background check would not have caught him. >> as the local police have made clear, the perpetrator had no criminal record, and if there's nothing on someone's record the background che background check won't raise a red flag. >> reporter: drivers are screened via third-party companies at county, state and federal levels. prospective drivers upload their driver information and social security number.

fingerprint databases can provide false positives and be discriminatory. the company says it's not available in the states as we have a sophisticated 911 service here. also of note, if a driver is reported to be violent, they are suspended immediately from the platform. erratic driving plants are set before drastic action is taken. >> thank you, kate rogers. >> what could the senseless tragedy mean for uber in the sharing economy at a way? this is one of the most highly valued private companies in the world. will this question their business model? will this start to question the business mod snell. >> it does and it's a huge tragedy. we're talking about business and tragedy and it's what people are asking right now. it did a $11 billion raise last july which gave it a $50 billion valuation, melissa, the most highly valued private tech company on the planet. gm has a $45 billion market cap

by point of reference fanned it's a stock like chipotle it would get killed today. i think this has very serious implications because it is speaks to the business model which is to say these contractors, their drivers, not employees, certain things you can do and certain things you can't do and it's got -- the company has a lot of investors which is also an interesting piece to this buzz-8-as well because, you know, they have stayed private because they didn't want to go public to have all the scrutiny and troubles reporting and all that, but if you look at all the people they have to talk, to individual conversations, not just the benchmarks, you've got fidelity, blackrock, jeff bezos, troy carter and lady gaga's manager, i mean, all kinds of phone calls that they have got to make so this is a very, very complicated space. a lot of high touch relationships they have got to make right now. >> does this really speak more to the market environment that

we're in right now. all valuations in the public market as well are being questioned. uber is one of these unicorns and we know that the most venture-backed ipos that came out last year are trading above their ipo price. not a good market overall for these kinds of companies and you layer on the unknown of this tragedy. >> i think that's right. you go back to the shared economy thing. you've got arabee and task rabbit and all these new rules out there that the government hasn't weighs in. >> the regulatory unknown. >> the regulatory unknown, and i think in the beginning people are sort of suggesting we'll figure that out. now these companies are huge. global impact and some of these things are coming home to roost. a lot of investors in the public market will be asking questions, i think. >> how under pressure is uber to go public? is it a cash need? maybe there is. >> i think at some point regulators are going to step in and say, you know, you've jumped

over and you need to do that. remember, there's rules now and they have changed a very fluid situation. i don't think they need an exit right now because i think in the private said there's a certain amount of liquidry that's gone on particularly for employees and investors as well, so i don't think it's -- and the markets are not strong right now so i don't think there's a tremendous amount of pressure at this point, and you want want to go today. >> no, not today. >> that would be the worst day. >> andy, thank you. >> editor and chief of yahoo finance. but i think karen makes a good point in that you don't feel a dip in validation unless you're going public hand that you're actually selling and you might feel the difference in valuation. >> listen, i have the uber app, and it's shocking, i know. >> and you've used it or just download it had. >> and i've driven for lyft, but the vetting process -- i think they need to speak to their vetting process as i think they tried to do today. i'm not going to -- i don't see why it necessarily would -- i understand it, but it wasn't --

he wasn't acting as an uber driver also i'm completely off base. >> shooting in between the pickups. >> i'm not saying it makes it right. >> like look at match, right. you have an example where tinder has some sort of harassment case and some sort of scenario. how much does match sell off on that when it really gets announced? i don't know the valuation would actually be impacted in a meaningful way. i look at this and say it's a tragedy and a terrible scenario but i wonder about valuation and whether or not it will have a long-term meaningful impact on the valuation of this company. >> let's broaden this out to unicorns in general. there are ways to play the dying unicorns, and two of the ways that i've mentioned before are the banks in silicon valley. silicon valley bank, sivb and first republic, both names i'm sure and i would say that they are highly exposed to the unicorn syndrome. people buying million dollar homes in san francisco. silicon valley bank also takes

stakes in some of the companies they fund so that's the way to play the death of the unicorn. >> dying unicorn sounds show sad. >> not all rainbows, melissa lee. >> god point by you. coming up, aleringen shares bouncing and can they bounce back from the beat-down. we'll hear from the ceo after the break. you're watching "fast money" on cnbc, first in business worldwide. stay tuned.

they say there's two sides to the story but when money is on the line you want to make

i think all the candidates, hillary clinton, donald trump, bernie sanders whoever it is, it's rhetoric, right, and we have to parse the rhetoric from the reality. i think going after an industry that comprises less than 10% of the total cost of health care, drug price increases are highly negotiate so we do things that really save the system money, that improves people's lives and ultimately you know many drugs now cure people. >> that was the ceo of allergan speaking with jim cramer about the high cost of drugs. don't miss the full interview coming up with jim cramer on "mad money." >> the volatility index hitting its lowest levels of the year.

one options trader thinks it will fall lower. mike coh is in austin with the action. what did you see? >> the vix obviously is dropping down. we haven't seen some of the lower levels in quite some time but what we did see was a buyer of 13,000 of the june 15 puts in the vix. they were paying about 20 cents for those. 15 is a long way down even from the levels that we've seen it decline to today. that would actually take us back to the vix levels that we saw mid-year last year so substantially lower and for the vix to get to that lower the s&p would need to rally quickly and by my work to 2015 or even higher and at least one person is betting that this rally could continue. >> do you buy into that, mike, do you believe it? >> well, down to 15. i actually think that's a little bit low. i think for us to get there you need to see the commodity complex volatility drop significantly because that's really -- people talk about the correlation between oil and stocks. they haven't spoken that much

about how much those things are moving around. volatility is still high in oil. i think it could still stay high in stocks, too, for as long as that lasts. >> for more "options action" check out the full show friday at a 5:30. guy, you talk about the ovx as well. you want to see it stabilize. >> mike's point is exactly right. that tuesday when the ovx traded, you saw a bounce today in the ovx so maybe this crude rally now slows down a bit. the s&p falls to 1950. 50 in the vix would mean we have 2,100 in the s&p, i don't see it happening. >> coming up next, final trades. stay tuned. here at the td ameritrade trader group, they work all the time. sup jj, working hard?

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they say there's two sides to every story but when money is on line you want to make sure you have got the right look. which one keeps you warm. "mad money" is next. finally fast but not least, they don't do this at the dog show. the surfing dog. the dog's trainer claims that surfing with your pet can help dog owners bond with their

pooch. the dog joins a rather elite club of surfing animals, including a surfing squirrel, surfing dogs and surfing squirrels. what a beautiful world we live n.only in america. >> i don't know if the squirrel wants to do that. >> i think that they are glued on the boards. >> they don't glue the squirrel on the board. >> has anybody asked if those animals -- >> now i'm going to get -- >> glue the squirrels. we don't glue anything on any board. >> not that we did. anyway. time for the final trade. brian kelly? >> want to sell blackrock here, blk, lots of redemption. >> sieberg? >> after earnings you buy macy's, good or bad, buy it on the opening. >> karen finerman. >> fitbit, bought some tonight during one of the commercial breaks, 1392, i think it's kind of overdone. we'll see how right that is tomorrow. >> guy? >> no squirrels were harmed in the making of this tv show. >> or dogs.

no animals. >> allegan, great ceo, get it done. >> i'm melissa lee. tomorrow at 5:00 more f-fun. don't go 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 cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job isn't just to entertain but to teach and coach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. remember when this year was written off as a loser? remember ten days ago when the world was falling apart and the pressure was on to sell everything? we have been unwinding that ni