getting negative rates in the u.s.? that was part of the big stress test i reported on last week, but it could be a reality. >> turning in to forecast. thank you guys so much for joining us. that does it for us ch fast money begins next. >> "fast money" starts now live from the nasdaq overlooking times square. traders on the desk -- tonight on fast, european banks crashing to their worst two-day loss ever, but one market, several of those stocks are screaming buys right now. we're sitting down with the man behind that bold call. plus as the global markets, brexit bargains. we'll give you the names and later, the health of the auto industry post brexit. phil lebeau has a special report on with why it's not just the major auto stocks that could get hit the hardest. but first, another brutal day for stocks in the wake of

britain's vote to leave. the dough blunlging 337 points while the s&p closed lower. eight of sectors were negative. with materials the hardest hit. financials and energy getting slammeded. while people are still grapple b what brexit impacts the u.s., here's what we know. global rates lower for longer. the dollar expected to be stronger and expectations for global growth are being ratcheted down so, is this a new world for stocks and how do you trade it? >> i think the world just spet sped up a lot. but i think this is where we were headed all along. i think the vote exacerbated everything. people will point to this as the catalyst, but in reality, this is what's been happening in my opinion for the last six to nine months. i do think bonds continue to go hire. yields go lower. the dollar has strength which is very in my opinion, deflation nair for the rest of the world. we are in this -- which is going

to pull down profits and you have to ask the question, what is the right multiple? i'll give you $120 earnings for the s&p. we can quibble about this, dan will say i'm wrong. what's the right multiple in the kusht world for that $120. closer to 16 than 19. >> $120. just a fact. look something more like $103 or something like that. to me, if you want to trade the s&p off that multiple, right now on a forward basis, you're looking to high. for all intents and purposes, we knew this that the world needed a weaker dollar and now, we have a situation where our sovereign yields are going lower and the dollar is going higher. tim is going to debate how much higher it's going to go. you're going to get a good look tomorrow, a company like nike. this is a company where the dixie, the dollar index was the

same spot it was when they reported last march and they were telling us it was a huge head wind. the stock's been down 10, 15%. this is a big problem. >> i'll do a little bit of what dan wants me to do. first of all, the dollar's down every year. be clear about the impact and how it's going to be. i think there's a limit to how the dollar can go and today, are very interesting close. around the 200. maybe a stock above it but until it breaks, i would say the dollar is in a rink. having said that, something changed last week. clearly and for me, the change was i thought if we got a remaining vote and you coupled that with a fed that really told them, toll us they were on holiday, you had room for risk assets to continue to melt higher. my general view on the market this year was a lot of sideways trading and that you would have opportunities to buy stuff and that reflation trade was going to work. guys talking about deflation.

you can't deny the fact that offshore inflation coming onshore now and 143, 144 on the ten year is something, it's difficult to see how much of that changes. what i believe we're going get to though is in the next few weeks is some kind of coordinated both central bank and possiblily some type of fiscal stimulus package from governments around the world that's going to continue push back the things that guy says have been front run. >> where though, where is fiscal stimulus going to come? china, it's difficult. in japan. where is it going to come from? >> where did tarp come from? >> crisis policy. are we in crisis mode? >> what i'm saying is that polly makers arn the world are are going to start to look, europe is panics. no question policymakers are going to go into high gear. i'm not saying it's going to work and i'm not terribly excite. >> are we on the doorstep of some sort of financial

contagion? >> i think policymakers around the world are going to panic. i think equities will like that. don't put words in my mouth. i think you're going to have a place where the dollar will suddenly not look like it's the only or the fed will not look like the only central bank in the world in hike mode. >> how do we navigate this? i think an interesting point today, there are a number of stocks out the on the s&p 500 that don't have exposure to uk or europe for that matter, but this is a financial shock to the markets and in financial shock, certain groups of stocks don't perform well and that's just the fact of the matter. how do you separate a bargain from a bust here? >> when you think about what are the stocks that don't perform. clearly, financials, which i have look liked and been long. friday, i sold some financials, not all, but sort of across the board. i think it will continue, i don't see a real quick bounce back for that. i don't think that's enough. but when i look at something

like a facebook, you know, one of the central themes to facebook was never remain. it's really not central to the core story of facebook, so, that's a name that i like and bought more. google. there's a lot of u.s. retailers that have just gotten so, so punished and they are u.s., not only u.s. centric, entirely u.s. so, i think there's bargains to be had there. but i, i also don't want to go in with two feet. the one thing is volatility was down today. i think that was very interesting. that to me, this is not a panic worldwide. >> the vix was up 50% on friday. >> down 280 -- >> vix futures are still very well big. i don't think that's a reason to say things are abating here. just going to say that. so you viewers, i wouldn't focus too much on the vix. >> i don't know if it's good or bad. i can make an argument, make

karen's argument that it's a good thing or can say certainly, i think what dan is trying to say here. i think people who have been burned for so long trying to stay long volatility finally got a market that works for them and said, it's not going to happen fwen and real quick. i'll throw this to tim. going from 150 to 132. monster mode. >> they're an exporter economy. if you were watching the chinese, sitting on the sidelines saying, why wouldn't they say listen, we try to play nice in the sand box now for the last six to nine months. what's to stop them and it's seemingly happening, from doing a devalue on their own, some move na catches the rest of the world by surprise. >> we did our what could happen on brexit show couple of weeks ago. my view was that the uk economy was a place that actually benefits from a weaker sterling. europe benefits from a weaker euro. gets into this whole place, are

we going to be into this heavy duty beg thy neighbor currency deval environment. timing on volatility and guy, a respon response. we're not just going sit silently. not saying the news flow is going to be good, and people should not be doing anything in the next couple of days. we got a quarter end. just start iinged to see long oy sell lg. it, you know, there has to be a response. >> here's the big issue. look at what equity markets have done in nations where there's tons of sovereign debt and negative yielding debt. they've done horribly over the last year. look at japan, europe, they're down 25% since all this has gone negative so, to me, if talking about policy response, the policies are getting worse and worse for risk assets this far into the recovery and that is the big fear. >> not a lot of votes left. >> unconventional to who the hell knows what and that's not working out right now. if you're on owner of stocks or

currencies. >> you know, if we get to a crisis, this is down 5% in the s&p -- >> not panicking right now. >> not that big a deal yet. >> it's not just the green back making big moves. the global market seems to be a roller coaster ride. hi, sara. >> hi, melissa. the pessimism about britain's political and economic future is playing out in the pound. this currency has ros 12% of its value in just two days. it is now back to a low we haven't seen since 1985 and with the leadership vacuum in this country and growth forecasts coming down by the day, wall street is expecting it to get worse. soft gen is calling the pound to to the 120s. merrill lynch, 130 by the especially of the year. remember george soros' call, he said the brexit happens, that it would fall down to 115. we learned today that sor us was

not short. according to his spokesman, he was betting on the british pound going into the vote. now, pockets of strength and currency. the japanese yen, but japan is worried about its leadership making noise about taking steps to sben veer if it gets too strong and the ripples spreading to china. the yuan sliding to a low. why? the dollar's getting stronger. t not european, which is helpful right now. and the u.s. economy is in better shape than some of these countries. dollar index as a three-month high and that's how this brexit vote affects the u.s. economy and u.s. investors. that strong dollar you guys have been talking about hurts exports, corporate profits earned abroad and the economy as a whole. so you can bet the federal reserve is keeping a close eye on it. >> thanks so much. let's talk about this because one of the biggest implications could be on earnings season when

that unfolds are we going to get company after company saying the strong u.s. dollar is going to be a head wind into the remainder of this year. >> they almost have to. they have to address that and how long can it last. like what, i got to believe that every company that has a conference call has to in some capacity, talk about what just happened in europe. if they don't, you have to question what's going on at those companies. to me, tas tremendous head wind for earnings going forward. not just this quarter, from a few out. >> if you're talking about the cross obviously to exports to the uk and possibly to certain parts of the emerging world, yeah. and let' see what happens with the euro. the irony is this is about the euro and it's been relatively contained to this event. so, i still go back to if it was a year ago, we would be talking about the dollar index going to 110 and maybe that's where you think it's going. i have no idea. but what i'll tell you is is year ore year right now, the

dollar is not an issue. the issue is global growth and the issue is is where the export markets, where there's true strength in their business models and china is a big problem because cline at least for lot of these companies, is not the same place. >> that's a fair point. the quarter they report won't be an issue, but it is the quout look and you mention all the time, kitchen sink. this has to scream kitchen sink for every company out there. >> nike at the open of the show, i can't imagine it asks this quarter, right, so maybe they do that. this would be a good test of a multinational that has exposure there, but i sort of adwree with hgree with tim. we have yet to see whether this is a big deal. >> except you're seeing a rerating of stocks and cyclicals. cat tractor. autos are destroyed. that's a globalization. when you think about it, to me, i actually think the issue that you have is that what moves from europe and goes to asia, like you're saying, e mernling markets, then back to the fear we had in january, february

about global growth getting smushed. >> up next, brexit ripple affects, the one airline stock that's lost 15% in the past week and whether anything can stop the bleed ng this space. get this, in history. one strategist says several names in the space are screaming buys and nak as we mentioned, set to report earn oogs tomorrow. tell you why some traders are betting on a 5% move. touching a. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there is only one place where real and amazing live. seaworld. real. amazing stephen king, the master of suspense and the macabre.

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thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. welcome back. it was a tough one. airlines down almost 4% plunlging across the board on fears brexit will hurt transatlantic travel. american hitting its lowest level since 2013. would anybody step in and buy these airline stocks crude oil is down. >> you know, one of the things i think is probably misunderabout the airline industry is the globalization element of just you know, if there is more ice laigsism or if routes become more protected. how much are they hurt and how open is it now.

if you look at airlines, a lot of these guys have open skies deals. a lot of these packs aren't about globalglobalization. there's a lot of carriers protected by a state. high oil prices are actually good for airlines and a crisis meebs they start to cut back on capacity, so, yes, i think airline rs overdone here. >> the thing is that these things were sort of in place prior to rex brex it and yet, they're still selling off on brexit. oil prices had gone back towards, they're -- >> southwest had some disapointing data last month. that's where i would stay. if you think the baby's been thrown out with the bath water, people don't understand the deltas and uniteds. it's near 35, which is where it bottomed out earlier in the year. >> in terms of how to understand delta and those big airlines,

here's what the association came out in terms of their estimate of how brexit will impact people going to the uk. 3 to 5% in the next four years. at the same time, we had call today on hawaiian for instance saying we're quoing going to upgrade because it's insulated from this. >> i think the conversation has to be brought from the transports. because of large part what happened to the airlines. brought this up when the beginning of the year. transports bottomed out at 115. that started creeping higher while the broader market was starting to go lower. the transports led the broader market higher into the spring. this down trend line from the beginning of 20 sa, if you're bullish in my opinion, it's imperative that the iyt holds 115. yes, that's a long ways from here, but things move quick. 55.

>> it was so terrible for the airlines before. that's a gigantic head wind. >> nike one of the biggest multinational companies gearing up for earnings tomorrow. why some traders are betting on a more than 5% move in the stock. you're watching "fast money" on cnbc. here's what else is coming up on fast. >> well, it's not king kong, but it may be one of the biggest contrary yan calls on the street post brexit. we'll tell you what it is and why one market strategist is ready to take the plunge. plus, global uncertainty is weighing on the market, but no need to fear. three brexit bargains. the names when "fast money" returns. [beekeeper] from bees to business expenses,

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welcome back. the fallout in european banks accelerating today. posting its biggest tw-day loss in history. has the sell off gone so bad it could be a good buying opportunity? larry, you've got three reasons. why you think euro banks are buy right now. what are they? >> well, i was on the program on february 9th and we talked about the kcapitulation. tim s we have a model at the bear traps report which focuses on the level of capitulation, how much selling there is relatively the amount of shares of standing and the score we're getting today is two standard deviations

greater than the one we had on february 1 1th. we're seeing a tremendous buying opportunity. >> so long of a trade do you think this is and is this predicated on overall bounce in the european market sns. >> well, i think it definitely need bounce, but the second point is valuation, so the european banks are trading at .4 to .5 times book and the u.s. banks are trading at 1 to 1.1 times book, so the european banks are down 60% over last year. they've been pricing into brexit for a long time and inn that's the most powerful value and lastly, you've got to remember, the even if this goes through in the end, the uk will not leave the european union until 2018 or '19. there's a lot of hurdles left an what's happening is the market's pricing all the negative in in a

short period of time when there's a lot of political hurdles left. >> larry invoked your name. are you with him today? >> this is even well past that, so the uncertainty is reflected. a lot of people think the balance sheets are impaired and that's the reflection in the stock price. i think that european banks just have an issue with earnings power. i think we're in a place here where there's so much uncertainty coming out of this summit. it puts a lot of pressure on what would happen with these banks and balance sheets if the you were o, if something quickly happened, which i don't think it's going to. so i agree that it's oversold on a relative basis. i think some of the banks like -- a global business. they sent out a pr today basically saying we're healthy and our earnings are going to be reaffirmed here. >> let's be clear, you think

this is simply a trade. not anything that they're longer run fundamentals. >> if you held them for two, three, four year, i think you'd be okay, but it will be a classic bear market rally and the last one that we had from february 9th when i was on the show, they rallied 30% and was just a classic bear market rally. bear market rallies should be sold. >> okay. got to leave it there. thank you. you know, we were just showing larry's picks. rbs, barclays lloyds. those are the banks jpmorgan downgraded today. you've sold sot banks. what would you say to larry today? >> it's interesting. i kind of like the buy when there's blood on the street even if your own kind of thing. that is intriguing. i sort of feel like the u.s. banks, if you see a rally in

europe, u.s. banks will rally on the heels of that no doubt and might have less downside. >> only have so many more down 10% days. >> actually, keep going. >> for the equity that you owe, so a certain point, it becomes an asymmetric risk reward here. the question is, when is the equity going to get priced to ze zero. it's maybe a whole host of things. maybe it is their balance sheet. maybe their earnings power, maybe some sort of systemic thing going on here. we don't know. these banks were going down like this every day. brexit every day in 2016, so to me, there's something else going on. >> it's a maybe, it's a maybe, it's a maybe. >> you're not standing by either. >> i'm not. just because the banks are going down in price as we've all learned, the market's not always right because it was telling us something about brexit that was not right. so i think the unknown about the earnings power and the fact of the matter is is these guys have

been in that kind of environment for a long time. >> why do you hear snem. >> he's with that. >> to larry's point, take deutsche bank. could it rally 20%? absolutely. basically $2.80 gets you back the levels you were on wednesday or thursday night, fwu bigger picture, i think larry's point was. these are bold moves in a bear market. deutsche bank is in a two and a half year down trend that i think will continue especially if it does bounce to that level larry thought it might. still ahead, one top technician says there's value in volatility. he's got three stocks to buy. your three brexit bargains and later, is the u.s. still the best? bank of america's head of high yield lays out his risk to the market right now. much more fast right after this.

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vote. the s&p fell 2% while the dow was down 260 points. material, financials, energies were the hardest hit. the brexit not only sending markets into disarray, but could have a major impact on global auto sales. we'll have is a special report. plus, nike shares plunging today. why some traders are betting on more volatility ahead of the company's earnings report tomorrow, but first, the global kay ross may be rocking the street, but we're looking for opportunities. time to get to our three brexit bargains. carter? >> i get a lot of requests during my working day for baskets. this is a basket of three stocks. financial and industrial and a material, but the key is this, that they have as a basket, the three things we want. price performance. we have fundamental performance and valuation, so in terms of price performance, this group is outperforming as a basket on a

six month, 12 month basis. in terms of actual performance, the earnings are running twice that of the s&p on a one, three, five-year basis. in terms of what you pay, a higher dividend yield. better r.o.e. and 14.5 versus the market. here's the basket and what's important is that this group went on to make new highs. b even as the market was unable to do that. whether that's because of fundamentals or good price action, the basket is desirable, not only during the sell off of late, but also in terms of what it looks like individually. so, chubb, you could draw your lines. i think you're an a pretty major line here. you bounce and bounce and or hold. yes. and so, so, too, to is it with dow chemical and finally, hon honeywell, but again, i think the key here trying to take these as a group and play them,

they're down about 6%. in line with the harkt. i think that's the opportunity. i like all three. >> carter, is a key here that you're investing in this basket and is this, would this be an equal weighted basket? >> it is equal in all the stats i just referred to are equal weight. >> thank you. who's buying carter's basket? >> i mean, carter is at the pinnacle of the smart board. >> i suppose the rich rossi at the zenith. rather be the pinnacle than the zenith. >> with that said, honeywell just a week ago was making an all time high around 116. last week, general electric hasn't seen its all time high in 16 years. very similar companies, but not similar stocks. i think honeywell with their multiinterearnings in july if the market stable isles, is very

attracti attractive. >> what would you see as a bargain? >> i was looking at something is papal. to me in a market like this when you're trying to be constructive and find stories, i want to find companies that are in you know, have a secular tail wind to them. and i believe that papal is that. it's down 7% in the last few days. down almost 20% from its 2016 highs. i like the valuation compare today a visa or mastercard. >> i like priceline and if you look at their earnings, it's heavily european exposed. it's a company that's growing top line 25, 26%. online travel is not changing. git the fkt that could be heavyness this terms of the currency effect or what not, but these guys dominate so significantly. the pullback has been so sharp. they had fantastic first quarter numbers. second quarter guidance was week and the stock has pulled back once. that's the level i would look at the tok, around 1050, 1100 bucks. >> jeffrey's made an interesting

point about facebook. for as much business they lose because of a deline in pound or euro in terms of domestic or aurp b travel, you can get that much more. price line. sorry. i'm looking at you and that's your bargain pick. you can get that much more in terms of people from the u.s. or asia going to europe. >> this is an overreanchor. >> because for us, it's a great time to go. >> thinking about it that i probably will go to london, but i think though that -- >> why wouldn't you. >> 31-year low. >> 50th birthday. >> happy birthday, josh. >> good timing. >> this josh berger guy, legendary. if he's watching now, right or wrong. josh berger. >> any way. >> i think facebook totally over, so i think to it's a flake to quality games where there's still growth. i think we'll still see growth. i like carter's chubb. very u.s. centric.

entirely. >> what's that? >> facebook. >> it's really important to remember, google's been acting poor for a while. online ad sales is a very economically sensitive thing. if we are going to have a sort of global recession, these are going to be companies that are going to get hit. >> coming up trks one area of the market that bank of america says could be flashing a major buy sign. what it is and how you can get in. plus, shares of nike hitting their lowest levels since august and traders are betting the stock goes through even more volatility.

the sell off maybe creatinging a huge opportunity in the high yield market. our next guest believes you'll need an iron stomach to take advantage of it. michael is the head of high yield strategy at bank of america merrill lynch. good to see you. we're the best house in a a bad neighborhood. what does ta mean in term of when you go in and buy? >> i think that's right especially after brexit last week. it's pretty clear the u.s. is the best house if a bad neighborhood.

i think there's sort of four buckets of risk we need to pay attention to and the first is the most immediate, retail outflows. i think retail outflows in the same vein we saw during the tantrum and ukraine, about 12 billion in mutual fund flow could present a great opportunity for high yield depending on how wide yields go. 7.5, not so great. i think probably a good time to start legging in. >> that premium, 9%, which sounds quite high, are there particular industries you feel like they're going to get there soon that you would have your eye on that are close, that you feel are insulate frd the brexit fallout? zbli like u.s. centric companies. don't think it has to be a particular sector. i like companies that have generated the majority of their revenue from within the united states and that haven't necessarily relied on cheap debt financing to fund a growth of ak

wii sags strategy. that leaves you with areas of retail and retail is cheap. health care, telecom. real is one. >> you've u been clear on this show, i can't believe anything's changed this week about a view that the credit cycle is worsening and global growth is really about earnings and the ability of corporate to sats fie nose earnings. could a tactical trade be to long high yooeld and match yourself both in terms of duration on the hybrid side? where things got very, very ek pensive in the last couple of days and i think your view is it's going to go back out the credit curve and plenty of companies will be spared. a trade where you could be long high yield and short high grade for some of this flip back. >> i think there's some absolutely merit to that. i do like barbelling the portfolio. except i would rather own long duration ig. not worried about rates going

hire. if anything, they're going to be going lower, so i don't need to have off putting shore. why not own lorng duration ig and those that will sell off during the moment of outflows. >> what about this? not worried about yield's going higher brk u the dollar's gone higher. when you look at hyg, the high yield credit, that made a lot of when oil made a bottom in february, is there a risk we start having fears of a credit event inst centric oil companies just as that was the fear in february. >> i think there's a possibility of that. i think oil needs to go quite a bit further. about 45, 46 in wti now. once you get down another $10, that becomes a real concern. i don't think you should go massively long high yield levels. you get a good sell off on the back of outflows, this basic fundamental story holds true. strong dollar is going to be bad for corporate earnings.

it's going to be bad for oil prices. in the commodities space sector. the outflows are going to be bad. business spending is going to be poor because of brexit. so the macro land cape still doesn't look good. looks worse, i would say, but 9% yields, i think you could argue there's an opportunity there. gl good to see you. >> 9% the magic number. karen, that interest you? >> retail does. i'm not really a high yield player, but 9%, that is, that actually is intriguing. >> to dan's point, i think it's held remarkably well over the last three or four trading days. we're not really, we're 10% away from that, so that's telling you i think it's backing up what michael was saying. my concern though is if crude tarts to back up given the stronger dollar, then what then do we have another hyg problem. then does it broach 80. >> what's interesting, we were talking about the vix in the top

of the show. down 8% today. there were other parts when i think about option, hyg puts were active today. two trades in august that were very bearish for a pullback, maybe 5 to 10% and one longer dated put sale which was bullish in december. people are kind of refocused where they're exproeszing risk in this point. >> i hear michael saying actually things are overdone. if you're putting on a high yield trade, probably putting on equity trade. emerging market debt actually rallied well off the lows and probably put debt in that same camp where things oversold and people are looking for yield. still ahead, brexit may turn out to be a major roadblock for the awe though industry. weave got a special report after the break. first major earnings report since the brexit happens tomorrow. could nike be the canary in the coal mine? you're watchi ining "fast money cnbc.

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. the auto industry could be pumping the brakes after britain voted to leave the european

union. phil? >> melissa, it's all about the fear that the european awe though market is going to slow down and slow down dramatically starting first in britain. if there's a drop of consumer confidence and then a drop in sales, then perhaps that spreading to the rest of europe as well and that's why we've opinion talking about the auto stocks all day long. look at the part suppliers. they have been taking it on the chin since brexit went through. delphi, leer and borg warner. ford and voexing waggen. those are down more than 15% for the suppliers. what percentage of global auto sales are in europe versus north america versus china and by far, china leads the market and has for some time. will continue to lead. north america, 22% and then europe about the same 22%. most of the sales are in western europe, then japan, south korea, north america.

if you look at the auto dealer stocks, there are some that have a sizable presence in uk and london. penske have the most exposure and auto nation, it doesn't have any dealerships over there. guilt by association. awe though nation, despite not having any exposure to europe, down 5.46%. just goes to show you what a strange couple of days it's been. tesla up slightly today. i know. it has nothing to do with brexit. this is a stock that has never traded in tandem with the rest of the stocks. >> in term of the big three automakers, we've seen them decline sharply. what is their exposure there? >> it depends. the european automakers have the largest exposure. dime lehr, fiat has more

exposure there relative to its global sales than ford and gm. ford and gm have strong presence in europe and both have just now getting back to break even and a slight profit if r ford. the concern being they're going fall back to losing money in europe and it continues to be a drag. yes, their profits in north america are not expected to fall soon, but if you're an investor, you have to say for how much longer can we count on north america coming through for gm and ford. >> you brought up tesla, so i'm going to ask the question. what percentage roughly, were a big percentage from europe? because it seems like a heck of time to try to launch a mass market vehicle at a time when europe b growth expectations are being ratcheted down. >> sure. they have not given a definitive break down by region and country in terms of reservations for model three, which we don't expect to come out until the end of next 2018. what you're looking at is most

of those rez vases are in north america, which is the way it's always been for tesla, then a sizable chunk coming from europe as well as a growing number in china as well. but we're looking at that not really deliveries going to europe into to 20 18. >> thank you. what is the trade on autos or auto parts or tesla is this. >> auto zone. i think we told you to steer clear of gm frd for a long time. saidways to lower now for three years. until cently, has been an amazing market chlgt but name like auto zone, roughly 6, 7% off an all time high. valuation might be high, but they seem to be doing everything right. last quarter was good. liability charge. other wise, quarters are good. if you want to be in this space, it's a manny moe jack and peter os the world auto zone. >> i would look ate toyota. it's all about the yen to me. it's an exports and that's

something that also it's unrelated to the european business. i think this is an opportunity. >> shift gears now from autos. i can't take credit for that. >> good. you shouldn't. really shouldn't. >> nike set to report fourth quarter earnings tomorrow. >> walk and talk. here's the deal. you wear nikes? >> no. >> about a 5.5% one-day move. a tad high of their fourth quarter average, about 5%, the long-term average has been about 4.8% toefr last ten years. think about what's going on here in nike. the stock is down 17%. this is a stock that was up 600% from its 2009 lows to last year's all time highs made in late december here and i just want to make a point. you know, the tok got hit in march when they reported their q3. they talked about head winds tr a strong dollar. 60% of sales come from overseas. there's been a lot of soccer

going on. copa america, olympics coming up, lebron just did his thing. there's a lot of things that should be a tail wind for nike, but tomorrow's going to be a really important report for u.s. multinationals. how they guide. this is a good look at the tough we've been talking about. here's the one-year chart here. you see the thing down in this down trend. obviously, the sentiment is poor. wall street analysts are still really bullish. 25 buy, nine holds and a 12-month price target. about 71 bucks. this is the long-term uptrend from the 2012 lows here. we just broke that down trend here. it looks pretty nasty. that flash crash low from august is you know, probably at 10% lower than current levels. a guide down, it's going to the mid 40s. one way or the other and this is the last point i'll make for some of you guys that think the stock how old trade at premium, i agree, on a forward basis, trading about 21 times earnings,

so here's the thing, if they are able to guide up just a little bit, the stock is going back up, so just like i said, options traders are expecting volatility. to me, it set up in the late, early 40s or mid 40s as a good bounce candidate from there, but not sure you have to take a shot for the results. >> dan, let's take a position here on nike. karen. >> foot locker. the correlation between the good number, foot locker's going to have a, should flow through to foot locker. valuation differential the enormous. and sports authority going out of business. >> if they say there is exposure, if they warn they don't have visibility, whatever, uncertainty. >> i feel like at ten times earnings with net cash that and far less exposure in europe and outside the united states, the risk rewards more compelling. gl didn't sports authority go out of the business because this business model is under pressure? >> very levered.

foot locker has a cash rich balance sheet. >> but it's a retail business that has head winds that i think are things nike doesn't and can control the channel. valuation, no question. not sayinging the balance sheet is bad. i think it's a case where people will weigh foot locker against nike and nike is the one that controls the retail future. in the meantime, getting down to 40 would be a dream. i think you probably look for this stock first of all tomorrow, i want to hear 7 to 8% ex currency futures growth. if you get near that, i think the stock can rally. >> amazing job. carter, the zenith. >> he navigates, mikt want to look that up. harvard girl. how do you play it? hope they miss. hope it trades down to the 46, 47 level. then buy it, it will probably be

19 times or so forward earnings. >> starbucks. home depot, some of these similar sofrt premium consumer related names. i have a feeling if this can't get going, some of these napes that haven't find a bottom, they're going to get to your facebook. >> more options action check out the full show at 5:30 p.m. eastern time. up next, final trade. stay tuned. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

and a a reminder, live at 7 clp 00 eastern time. much more on the global market fallout to the brexit vote. tune in at 7:00 and we've got a special fast money fast break within the show. final trade time, tim. >> delta, around 30, 31. this is a major level for the stock that's traded down. valuation is compelling. >> karen. >> we talked about it a number of times. i think facebook, it's overdone. and i think that eventually, calmer heads will prevail. it's great growth. >> i think some of this stuff

moves over to china soon, so i am a seller of that. >> happy birthday, kristen. >> happy birthday. thanks for 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, and i promise to help you find it. mad money starts now. hey, i'm cramer. welcome to mad money. some people want to make friends, i just want to help you make money. call me at 1-800-743, cnbc. we're beginning to get our