market doesn't -- i think three months in advance, i think we're edging in that direction, which could be a source of surprise if it doesn't go that way. >> september 21 i think is when that fed decision is due. >> next wednesday. >> thank you for joining me on "closing bell." "fast money" begins right now. "fast money" starts right now. overlooking new york city's times square, i'm melissa lee. the traders on the desk. tonight, it was eight years ago that lehman officially went out of business and with it went wall street. are the banks any safer now? plus tesla's auto pilot called unsafe. phil lebeau is here to explain. shares of oracle are volatile after hours. our own jon fortt is monitoring the headlines. first, the gift that keeps on giving, that is america's favorite stock, apple, soaring another 3% today, hitting a

ten-month high. and check this out, since last friday, the dow has added 127 points. of that, apple has accounted for 85 points. the question is simple. is apple saving the markets? and if so, should you feel better about where we are right now in the markets? tim? >> apple is not saving the markets. >> 85, 127 points? come on. >> look at retail today. is apple pushing up jcpenney, nordstrom's? emerging markets are up 2% today. volatility is plunging, not because apple is the dream stock, and actually their camera is pretty good. apple is rallying because samsung is very weak because apple's expectations were de minimis. and so yes, apple should be doing what it's doing. but to say if apple was not doing this, which i think is the question you're asking, would the markets be rallying? i think yes, they would be. we overreacted to the comments, we assumed fed was not going to

act to acting way too much. this is not a place where you can move too quick on interest rates. volatility has fallen. fed has stepped back. we're in the same vortex we've been in. and by the way, i think it's appropriate. >> well-said. i agree 100%. apple is moving based on the fact that expectations, street expectations were way too low. and they're going to pick up a little. this is a sentiment, trading apple, no doubt about it, supply versus demand. when apple is managing supply, it means the supply they're putting out there right now isn't necessarily they're managing it properly. remember, they had supply issues and it caused a ruckus, we don't want to have that problem again. >> the losses to the downside would have been worse had it not been for apple's standout performance on the tape. >> the dow jones, it's a 30-stock index. not many professionals that i

know look at the dow jones and go, that's the market. this is the s&p we're looking at. the federal reserve is probably less likely to raise rates. that's what this whole thing has been built on. apple just happens to be -- it's all coincidental in my view. >> i agree, in my view as well. i think the bigger move to watch is crude. if you overlay crude on the s&p, you can get a correlation with the s&p as well. so correlation versus causation. i don't think it's caused by apple. i don't think that -- it definitely helped on an incremental basis. but what tim said, it had more to do with samsung. samsung's loss was apple's gain. that was a big event, on a technical basis that's what popped out. >> does this make you feel more bullish about the markets overall, that they're more resilient? >> you had quadruple expectation, an fmoc blackout

today, so we couldn't hear any of the dialogue to sway the market one way or the other. so all of that, the effect of the dollar, the dollar affected crude, all of the crude effect affected or exacerbated -- >> let's look at the underlying fundamentals. retail sales were down. we've now had 12 consecutive months of declines. that has happened 20 times since 1920. 18 out of those 20 times, we were in a recession. the market may go higher because perhaps in this ultimate universe we live in, a recession is good for stocks. but generally speaking, when the economy gets weaker, stocks will get lower. >> i get that. but that provides a glide path for stocks to move higher as long interest rates stay low. if the fed stays on the sidelines. we should feel better about the markets, no? we should feel more comfortable

being long? >> what we've learned in the last four or five days, the market's sense of comfort is pretty much toast. you have a place where people are unable to make a rationalization towards the fixed market. on the equity side, health care, financials, industrials look good for sure. emerging markets are interesting. look how these things traded off, though. emerging markets were down 8% in three sessions. it tells you how skittish investors are, even for things that make sense here. i think more volatility is in the equation for the next six weeks. that's up and down, by the way, that's what volatility gives you. that's what we've learned about the market. i think we have -- steve said, i'm not going to go through them again, there are a lot of events in the fall that are a problem. >> when you think about the apple move, the supply chain move. people sitting at home, how do you trade that event? how do you trade the move in the supply chain or apple itself? i think apple has a glide path to probably $120 and then it's a sell. i look at the supply chain, the

real question more, we talk about intel moving with the supply chain for probably the very first time, is intel's chip going to be inside the 7 plus? that's the question. >> i would be afraid to hold on to apple at this point for exactly the reasons you point out. i would be taking profits. you wouldn't hold on to it to 120. we're up 12% this week. massive, massive move. we know that apple has told you that the only reason they're not giving their numbers is because of their supply constraints. they told you they don't have a lot of phones anyway. the t-mobile, there are a lot of subsidies. people are hate me for saying this, up 12%. >> guess what, it's momentum right now. it's going to stay with the supply chain and the stock for a period of time. there's going to be a point where you take profits. i 100% agree. right now the momentum is on the side, we're going higher. >> it's an iphone-based stock.

i was here on monday. it was trading between 105 and 110. we were both pretty consistent saying you buy whatever breaks down or breaks up for ten bucks. you're right on the 1 120. >> people are so scared to own an expensive stock. more than ever, it's probably appropriate, apple which trades eight in half times per share, there's a strong argument, 1.4 million installed base, people totally under estimated this. t >> the only reason people gave it a once-over is because of what samsung ran into this week. even if the numbers all around it are good, it's still an iphone stock. the people gave it a second look only because of what happened with samsung. >> i've said that. so i don't disagree with that. >> you can argue with yourself. i think samsung is a buy. >> i argue with myself all the time. i would own samsung here. i don't think this is apple

suddenly having the lightning rod at the top. >> i agree. >> when things seemed so good for apple versus samsung in 2009, they won the litigation and the lawsuits, and apple peaked, was the time to sell the stock. i don't think this is the time to sell apple. but i don't need to buy it tomorrow. >> let's go to ari, what are you looking at? >> this is significant strength we're seeing in the share price of apple in the last few days. melissa, we've seen this before. let me show you what i'm talking about. here is the stock price of apple. what we've had over the last year is a pretty meaningful decline. it's not peaked at 120 back in 2015. and now it's in the process of basing. it had a successfully tested test of his february low. now it's broken out to the upside. it's broken its down trend, finally made a higher high. it's now up 30% since its low back over the summer. we've seen that in 2013. i remind you again, we saw an

important decline, a base in breakout at that point, right about there, the stock was up 30%. let's look at that roadmap. after that big move, stock was overbought. it had to consolidate for a couple of months before moving higher again. that's what we think is going to happen here. the important point is you don't want to sell apple here necessarily. but we do think you'll want to buy it on weakness. our trend has turned higher. our preferred way is not through apple but through apple suppliers, specifically a lot of the stocks in the semiconductor stocks index. here is the sox relative to the s&p 500. this was an underperformer for the first part of the decade. now it's just starting to break out. to me, this chart reads that this area of the market could be leadership for a very long time. it's been led by stocks like texas instruments, broadcomm.

i think you have to buy some stocks that haven't run up as much. one that stands out is sky works solutions. another big underperformer, successful, high or low in july versus february. now just starting to break out to the upside. it's not as overbought as apple. we think you want to own the stock. it gets back up to about $91. resistance, very strong chart, melissa. >> ari, thank you, ari wald of oppenheimer. sky works is up 15%. if you take a look at some of the other semiconductor makers, the maker of the haptic touch. >> these stocks trade typically with a bait of almost two to apple. if you look at the supply chain, there's a lag time, there's a

lead time. they need stuff fast. that also works against these guys, because not having an inventory of supply during a boom is something that's also cost these stocks. i think you get to a place, don't overextrapolate on t-mobile and sprint's announcements on the iphone at this point. we have some more data to wait for and just assume that these guys that have at times been trading as a function of apple. >> in terms of the samsung recall, though, does that put additional pressure on the supply chain so therefore more orders, they might have to ramp up production? >> even with this. and actually i like how sky works looks right on a longer term. it's still up 15% for this week. i already talked about apple being up 30%. there's a period of time that needs to go on here that things will have to consolidate for a bit. maybe not sky works as much. for me, the way i would trade it, i would wait for a week or so. let these things consolidate, then reevaluate. see if they want to break out again. just like the bar is very low for apple in the supply chain,

it's very high right now. >> a lot of this space has been so beaten up. these guys have said it already. if i bleed out that chart on sky works, it makes me more nervous. i agree with b.k., i want to see a flattening or basing of the stock. i'm still on micron, up 23% year to date. if you're going in that space, i still think that micron was so beaten up, it was a value of 30. people said if you could get it below 25. now it's 17 still, it's bounced back. i would still be long on micron. >> like b.k. said, you sell and take profits except for i would be shorting qualcomm, getting long in inintel. intel about benefit. next, two of the most recognizable brands in the world are the dow's worst performing stocks this year. the names, and whether our traders are buying. plus a breakup gone bad. a war of words intensifies between mobile eye and tesla, a look at what it could mean for tesla shareholders. check out shares of novavax,

falling off a cliff here, the decline is somewhere around 83%. it's a $2 billion company that just lost 83% of its value in the last half hour. we'll have the details. back in two. ng] ♪ ♪ ♪ ng] the hily aa♪♪ed di a4. 're drowning in informaon. where, in all of this, thetuff that matters? the stakes areo highis, yourances, your future. hodo yolve thi u don't.

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welcome back. call it a tale of two dow downers. take a look at disney and nike, disney tanking to the tune of 12.5%, the worst performing dow stock this year. nike is right behind as the second worst performer, down 12%. both eked out some gains today. let's do little "would you rather." disney or nike, tim? >> nike. nike has gotten a little ahead of itself. i think the whole athleisure space and the footwear space has been overenthused, there's been some downward revisions. i would stay long nike. >> adidas. nike, i buy the stock in the low 50s and sell it as it approaches 60 bucks. you can trade it back and forth.

i do not like disney, not a name i want to own. >> i actually -- we're playing two of my favorite dances here. nike i bought on seasonality because september performance is usually up. 7% ahead of that earnings print that we're going to see basically, when you look at nike, they had europe, north america was getting better, but they can't have both of them in the questionable area. that's what happened. it got beaten up this month. and so i got flushed out of my trade there. disney, i would rather be an owner of disney against an 86 stock. >> every analyst continues to downgrade disney. the eps revisions are going down and down. >> that's the time to buy. >> it may be the time to buy, except it's been a headwind for the stock. you want the stock to move higher. i think there's more of this to come. >> what better content? right now, if you had to slam something against the wall, i would guess that it's stistill -- >> is that overcoming their

issues on the cable tv side, the network side? >> i always push back when you say it's in the stock. it's not in the stock until it's in the stock, until espn continues to slide. even on a skinny bundle, i think disney makes more money than any other of the collateral place in the content arena. >> i would rather have disney than nike. it's purely on risk/reward. the sentiment of disney has been horrible, we're close to $90, 92 1/2 i believe was the close today. maybe it's 86 bucks. but still, i've only got a couple of dollars risk. i know where my stop is. i know everybody has been negative on it. that's when b.k. wants to get positive. up next, take a look at shares novavax. we'll tell you why it's lost 80% of its cap in the last half hour. here's what else is coming up. here's what wall street used

to look like before lehman fell. and here is what it looks like now. but despite a shrinking wall street, could financials still be worth a look? plus it's been a brutal year for biotech. but one group of biotech stocks very well could be a bargain. meg terrell will break down the unlikely winners when "fast money" returns.

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welcome back to "fast money." mobile eye has choice words over its breakup with tesla, attacking the car maker over safety concerns. phil? >> melissa, they don't like each other. they worked together for so long and this has been simmering for several months. the latest salvo being fired by

mobi mobileye's chairman has to do with the auto pilot from tesla. elon musk said, look, we're updating the system, it will work with our cameras, there will be more driver warnings and it will cut the accident rate in half, it will be safer than ever, according to elon musk. the chairman of mobileye says, i don't think so. he says musk is pushing the envelope for safety. he says it, meaning the auto pilot, is not designed to cover all crash situations in a safe manner. as i mentioned, mobileye and tesla split up a few months ago. when they split up, it had to do with how tesla was using

mobileye's software, and the systems that they have their. tesla for its part says, uh-uh, the problem is that mobileye did not want to push things in the direction that we were going, we had simply a parting of the ways in terms of our belief of what should happen in the future with auto pilot. if you take a look at shares of tesla and mobileye, keep in mind that split happened i think back in may. if you look at this stock, look at how they split here over the last several months. mobileye of course announced the big joint venture with intel as well as bmw in germany. so you have two companies that, melissa, they have not agreed for some time, and the latest salvo being fired by the mobileye chairman saying, i don't like the direction of the new auto pilot. >> when they first announced the split, phil, was it tesla who said they can't keep up with the product changes and we're breaking the relationship, and mobileye is saying, it's not us,

it's them? >> not really, at their last earnings call mobileye was very clear in that call saying we don't like the direction that tesla is going and how they're using it. they've been kind of tit for tat for some time now going back and forth. >> does it raise any questions of tesla's ability, preying what mon replacing what mobileeye did with their own software? >> that's a great question. no one i've talked to says they don't think tesla can do it. they're increasing production, you're talking 80,000 vehicles this year. you're not talking about a huge -- it's not like they'll immediately have to come up with software for 3 million vehicles. but that is a question that's going to be coming front and

center with people as they continue to raise production, if they do, over the next several years, at what point will that perhaps be a hindrance, if you will, as they're developing vehicles. >> phil, thank you. phil lebeau in chicago for us. the stock traded higher today, so it didn't seem to hurt it. >> it's teflon tesla. all these stories have come out that it doesn't seem to hurt tesla one bit. to me it really stems back to the fact when elon musk came out and described his grand plan on how the decarbonization of the electric grid is going to impact tesla, and the street bought into it, okay, we're buying into this grand plan. so far it doesn't seem to hurt tesla one bit. >> maybe this is more of an indictment on mobileye. phil is quoting the mobileye's ceo, we don't know that guy's name. we know elon musk. >> mobileye doesn't really need tesla. if you think about the deals they've struck with the entire auto industry, these guys are

appealing to oems to give them an entire system that they can't do on their own. tesla isn't even delivering on time. meanwhile the volt is going to have a bigger mile, 238 miles on one charge, a significant improvement. i just think this issue for tesla today that we're talking about is not the issue. the issue for tesla is a cash burn and expectations that -- >> agreed, but the stock bounced pretty effectively off that 190 zone. 205 down to 190, leaves the door open now for another 10% move. the next area of resistance is 220, tesla. i haven't liked the stock either for a host of reasons but technically it's been setting up well. >> this is a company that's traded in expectations. you listen to mobileye say they're not using the product for what it was intended to do. when you think about the rhetoric this company has put out, auto pilot as a --

>> but they have never advertised it as a driver replacement system. mobileye is mischaracterizing to their advantage. >> i agree. they could be miscategorizing as well. i can't believe mobileye walks away from a deal just because they don't believe the product is being used properly. that's a little strange to me. still ahead, is the banking system safer after dodd/frank? take a look at shares of oracle, trading down now by 2.8%. that conference call is now under way. we'll bring you the latest headlines from that call when "fast money" returns. if we don't soe our debt pblem 19 trillion angrowg ner programs like educati will shrink. in just 8 years, tere on the debt

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there really is a serious, big, structural problem. incidence about one person. it's about -- or even about one bank. we still have a problem on wall street, where these giant financial institutions think

they can make money, they can build profit models around cheating the american people. we have got, got to fight back against them. >> that was elizabeth warren, the democratic senator from massachusetts, talking about the state of the banks' post-financial-crisis. larry summers spoke about why he doesn't think the banks are any safer. >> if you look at measures of volatility, the volatility of banks today is comparable to some measures a little more, some measures less, than it was prior to the financial crisis. and so if you believe in looking to market evidence, you don't see the kind of dramatic improvements that i think you would have expected. >> today is of course the eighth anniversary of the lehman collapse. and since the financial collapse, a lot has changed in the barricadnking sector.

let's go to a man who never changes, dominic chu in the newsroom. >> melissa, it may seem like i never change, but we all have to evolve. since the financial crisis, the banks haven't been the same. there was a time when these banks were dividend-paying machines. you bought them because you wanted those quarterly checks. they still pay today, but not like they used to. according to s&p dow jones indices, the financial sector represented 30% of all dividend payments in the s&p 500. at the end of 2009, after the depths of the crisis, it was just 9% of dividend payments. today we're around 17. so it's not what it used to be in terms of capital return plans. remember, these days they have to be approved by regulators. what about the overall picture on wall street? according to the new york state comptroller, the employment hasn't gotten back to pre-crisis levels. the average bonus for new york city securities employees, 191,000 in 2006.

about 101,000 in 2008. here is a tweet from charles schwab chief investment strategist liz ann saunders. it shows what was once the world's biggest trading floor in connecticut, at ubs. fast forward today, the physical structure is there but it's gone from a monument to capitalism to a shell of its former several. a lot of those desks and jobs have moved or been eliminated. i used to work on that trading floor in the currency and rate side of things. everyone, including myself, has to evolve and roll with the punches. the banks have to do the same. >> thanks, come to dominic. are the banks safer because

that's the crux of whether or not we regulate more, right? >> i think the regulation is always rear window type stuff. we never prepare for the next crisis. but yes, the banks are safer. first of all, back then it was leverage. leverage was the problem. it was 30 to 1 leverage. you're not finding that leverage anymore. they're still the poster child for dc. that's why i wouldn't be in them. >> you have to define what you mean by safer. wells fargo was not a trading issue, it was not a wall street issue. >> it was fraud. >> it's fraud whether it was wall street or main street. it was just wrong. that has nothing to do with a bank. that just has to do with humans being greedy. >> that fraud and lack of oversight, very different than fraud created by a cfo that's in there managing the process and you have all the "c" suite managers managing that process. this was done at a different level. the reality is it wasn't a fraudulent act from management. >> we don't know that yet. >> look --

>> we don't know that yet. >> jamie diamond, i think he's an amazing ceo. i could see him getting on tv at some point in time and saying, listen to me, i bet my career on it, we don't have those issues at jpmorgan, we're not going to run into the same type of crisis you're seeing at wells fargo, we're a safer entity. and you know what, that's going to turn the space. >> jamie diamond to the rescue? >> but you remember the whole meltdown occurred during the crisis. >> this is a markets question in my view, because if we think about what happened obviously in the underwriting and all the nbs and the exotic housing market securities, yes, we had no concept really of what the risks were and obviously we learned they were well beyond what lehman could handle. it became a counterparty risk. is wall street better now? i think it's a loss worse. >> worse? >> i think they've destroyed the markets. they've destroyed liquidity. dealers are not taking

positions, they're not incented to do so. >> hold on. dismantle dodd/frank, does it get better? >> so the banks might appear to be safer but they're not. they may have a lot of this capital that are -- >> forget about the banks. >> they can't get out of it. >> forget about the banks. is the american public safer knowing that there's illliquidity created by government regulation? when there's a selloff in corporate bonds, when you have an etf or a mutual fund that's basically created as a liquid asset in a non-liquid instrument, tell me what happens when the banks can't create liquidity. >> all fire trucks are at the bank, pointing there, ready for the next fire. all the risks have moved out to the asset managers. the risk is still there. that's the point. nothing's gone away. >> the risk is shifted from the banks to everybody that owns an

etf across the country. >> right, exactly. >> when elizabeth warren guess on tv, she's out of her mind. >> one more question. given what we said about regulation, the prospect that things will change, people are going to be scrutinizing the regulatory structure around financials right now. given what is going on with wells fargo, would you be in -- >> banks should trade in lower multiples. but yes, i think the financial sector looks encouraging, where it hasn't been in months. look to loan growth in the second quarter from jpmorgan, the historical evaluations. >> i have to go to you, on friday you had a full-throated defense of wells fargo and why it was going to be a buy, because the political situation was not going to get worse. >> i'll tell you what. >> now what? >> you get elizabeth warren out there cheering the american public. the reality is the regulation aspect of it, if hillary clinton gets elected, i can promise you

this. she's going to get less done than obama. she needs the house. it's not going to change. it's a sentiment trade right now. >> there are places to go besides -- >> you still say buy the stock. >> it was expensive before. >> buy wells fargo and short jpmorgan if you're concerned about the risk. and i love jpmorgan. >> maybe the time will come. the time is not now. ahead, one trader making a massive bet on the emerging markets. we'll tell you what's got him so excited. a rough run for biotech. one of the most recognized fund managers in the world is calling two stocks major bargains. he'll tell you what they are, after this break. much more "fast money" still ahead. gh gout. gh gout. pele gnxious and my office gets flooded with calls. so many things can go wrg. i's my worst nightmare. everseco that poisut, my city's atisk. ems dital grid manas reutes power,

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take a look at shares of novavax. it was a $2 billion company. now it is less than $500 million in market caps. nbc's meg terrell has more. >> hey, melissa. quite the nightmare for investors of novavax after hours. this company was working on a vaccine for rsv, a respiratory virus, a giant trial for older folks with rsv, and it failed in

the study. the company saying maybe the prevalence of rsv this season was worse than usual. they're trying to parse through and figure out why it performed so badly. the stock down 87%. the company saying it's looking for a path forward, not ready to give up on this just yet, melissa. >> meg, thank you. you've been taking a look at bright spots here in biotech. >> that's right, i was looking at the bright spots a little earlier today, preparing to talk with you, and this news came out. this is every biotech investor's nightmare. there have been biotechs performing well this year. if you look at the top ten performers year to date, they have some things in common. what some of these have in common is they're small to mid-cap names working in the areas of cancer and rare diseases. if you look at gw pharma, all in

rare diseases. some of these are companies that have been taken over, medivat n medivation, that's why that one is up. you hear analysts talking about cancer companies in this mid-cap space. these companies getting a lot of focus. and some of the bigger names like regenron really not performing as well, it's the smaller mid-cap ones. >> meg, thank you. meg terrell. it doesn't mattered whether biotech is having a good or bad year. it's the main sector sam eisley is required to invest in, he's known for running a health sciences fund. sam, always great to see you. meg was highlighting some of the hits of the ibb. but overall, it's been a tough year. what do you think -- i mean,

you've been around the block a few times. what has been the biggest headwind for the sector in the past 12 months? >> there's more than one way to measure. there's another one called xbi, typically the smaller companies, an equal weight index. if you go back a bit, in july of last year, everything hit its high. if you take it to the worst, which is kind of turning january and february, it was one-half of its high. yes, there was a lot of pain. if you go back five years, no matter what, where we are today, it's triple. so there was a bubble. at the time there was a lot of speculation, is it a bubble, is it not a bubble. in fact there was. the market action subsequently showed that it was. so certain stocks have gone against that trend. in this year, medivation is up. the corporate buyer is back stopping all these companies because as they get cheap, they step in and get new products for their future. >> you're coming with three picks. we want to get to them. two of our biotech bargains are

actually large cap stocks which aren't necessarily in the favored part of the market cap spectrum right now. >> large cap, yes. the ones we talked about were alexion -- everything is biotech today. lilly is on my selected list. high risk, could fail, could double, that could happen to opop optithec? >> it has a second way to address the problem which might lengthen out the efficacy period of treating amd. so we're watching that very carefully. it has pgdf, if that's the right

acronym. platelet derived growth factor. that may be a great advance for macular degeneration, so we'll be able to see a little longer as we age. >> assassinatithanks so much, s. those are his picks. what do you think? >> when sam mentioned the sbi, if you look over the last month, sbi versus ibb, the two biotechs, sbi is up 2.3%. ibb is flat. if you want to play this, and you're not really sure which ones to play, the takeover targets seem to be in xbi and through 65, an interesting breakup point. >> i agree, i think the takeout premium that's being put in some of these names, smaller names, it's scary. i think you can't miss the trade, so everybody is piled into these things. >> going back to something that's considered, lilly trades

18 and a half times worth. their alzheimer's pipeline is probably one of the best. i think that's part of the reason it trades its strength. i would stay in that name. >> news here on deutsche bank, kate rogers in the newsroom. >> that's right, dow jones saying deutsche bank -- excuse me, the justice department is proposing a settlement for do you have bank of $14 billion to settle mortgage-backed securities probes that stem from the financial crisis. this is significantly higher than investors were expecting. they were looking for a range of 2 to $5 billion. again, the justice department is proposing a $14 billion settlement. their sources from dow jones also saying this is just a preliminary proposal. deutsche bank is expected to push back on it. once again, much higher at $14 billion than analysts were expecting, they were looking for a range of 2 to $5 billion. deutsche bank is lower by 4% after hours. >> thank you, kate rogers. this is happening when deutsche bank shares seemed to be perking

up a little bit. this was seven times what people were expecting. >> this is a risk sector across the board. >> financials in general. >> you want to talk about where everybody is pointing their aim at. that was the original focus. here it is considered a quasi safe bet to buy financials here. now i think they're known touch across the board. >> you were short. >> i was short. i had options that i covered on deutsche bank. this is a very big number. it's perked up recently. i don't know if i would re-short it off of this. if you think the banking sector is a problem, you need to be worried about the u.s. banking sector. >> right now it's down by about 7%. >> why wouldn't you go for as much as you can get? it's kind of circular and weird. this is different than the

german government attacking their own bank. it seems like you have regulators in countries going after banks so they can pay fines so the central banks can fund these banks again. it's kind of absurd. these numbers are cartoonish if you think about it. and that's my reaction. >> i agree. i would stay away from deutsche bank. i like the u.s. players. i believe you trade them, they're good trading vehicles. bank of america gets closer to 14.5. >> and buy wells fargo? >> i'll say it again, i would buy wells fargo. >> at a certain point you're going to be right. >> i will be right, i guarantee you. i'm usually right. still ahead -- famous last words -- emerging markets are soaring and one trader is making a giant bet there's more room to run. check out shares of oracle, volatile after hours. we'll hear from the "c" suite what drove the quarter after this break. you're watching "fast money" on cnbc, first in business worldwide.

welcome back. a huge trade in the emerging markets, emm up 14% this year. one trader sees it going even higher. mike has the details. >> this is with u.s. largest

options trades we've seen. somebody went out and bought the call spread in emm 100,000 times and financed that by selling 100,000 october 34 1/2 puts. they spent no money to put the trade on. this was an interest trade. if emm goes up 3%, which is what they're targeting, they'll make $10 million. but eem has to fall 9%. when people start bidding up those puts, they're obviously bullish, expecting eem's strength to continue. >> tim, what do you think? >> eem has fallen 6.5% in the last three days before the rally over the last couple. a major level up around 41. 34 is important support. the question for emerging markets are what do you think they do when the feds start to hike? i make the argument that eem will start to rally. we'll see. >> thanks, mike. for more options, check out the

full show, "options action" tomorrow at 5:30. jon is in the newsroom. oracle says this isn't a bed quarter, it was currency to blame, making the point that the brexit vote actually came after their announcement of last quarter. and so currencies just went a lot more haywire, particularly the euro, then one might have expected. growth rates overall are actually pretty good for the coming quarter, though, the guidance was a bit light of expectations, basically the high end of the guidance was exactly where wall street had hoped the midpoint would be. but oracle did also raise the outlook two percentage points to 67% growth for software and platform as a service. during the call, larry ellison and mark hurd making the call that oracle doing better than

microsoft in the transition to the cloud, they're not just taking their legacy business and transferring those folks to the cloud, they're also picking up net new business as well. it seems investors are paying more attention to that. >> thank you, jon fortt in the newsroom. >> they've moved their software as a service and platform as a service, it's working very well. it's sideways. margins still haven't grown. >> i'm with you. this news is going to take money out of oracle and start putting it into the apple supply chain. you'll continue to see a move higher. >> the transition to cloud has to be where they make the next leg higher. i don't know if they make that -- help me here -- transition, that's the word, in an effective manner. >> has this been a trade on

fire? >> i don't think this necessarily impacts it. the one thing i would say about this, when you're talking about the currency impact, you need some more clarity on that. they're blaming the euro. but the euro hasn't gone anywhere. >> they're blaming the pound. >> either way. but jon said the euro. we need to get clarity. is it a one-day event where they price one thing on a thursday, and friday it was a different price? or are they blaming it on euro volatility, which has been zero? if they were doing that, i would be concerned about oracle. >> final trade, after this. i'm herethe td ametrade ste, oth than me move stf, what ar? our thinkorswim trading plfo agegatesllhe options dat ay. you need in onple and le you visue at inrmfor y ons series okay.hangn second. you can see the antipated ratock expeg earnings. okay.hangn second. pressive... what'sp,im.

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cestrn cdwintel. cdorchestrat collaboratiosolution final trade time. tim? >> we talked about nike tonight. i think this is a stock you can own at these levels, 54, 52, pretty good support. valuation was stretched, less stretched. check it out. >> qualcomm, when they opened up that 7 plus and realized there's chip in their non-cdma side, stocks are going lower. >> i would rather disney because there's better risk/reward. chesapeake was thrown out at the beginning of the year. it's up 61% year to day.

they can move higher. >> i'm melissa lee. thanks so much for watching. see you back here at 5:00 for more "fast money." ""mad money"" with jim cramer starts right now. 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." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain, but to educate and teach. so call me at 1-800-743-cnbc or tweet me @jimcramer. of all the calls i've ever made on this show, few have ever been more right and yet more