and private equity, absolutely right. they thought real estate could bail them out. that game doesn't work anymore plus deflation in toys very few things have had worse deflation than toys. >> parents never say that, these toys are so expensive. >> they have so many, they trip over them. >> my knowledge, thank you very much, a pleasure as always that does it for "closing bell" today. "fast money" begins right now. "fast money" starts right now. live from the nasdaq overlooking new york city's times square i'm melissa lee. tonight on "fast," check out shares of fedex and bed bath and beyond they're getting crushed in earnings reports coming out moments ago. both companies arepointing to one major headwind, we'll tell what you that is plus nelson peltz has harsh words for the ceo of procter & gamble, we'll bring you the comments the reviews are in for iphone 8 and iphone 8 plus. it's not looking good. could the apple phone be dead on

arrival? first we start off with what we're calling judgment day for the rally. the fed is expected to announce the end of the experiment known as qe. the beginning of the end starts tomorrow this as stocks hit a fresh record high, today the dow higher for eight straight sessions what will the fed do how will the market react tomorrow guy adami. >> i do think it's extraordinarily important. dan is going to yell at me >> i hope he does. >> if the fed were to have made this move a few years ago it could have caused a dramatic move in the equities market. the market is telling us now that we're going to move from monetary stimulus to hopefully fiscal stimulus. i said to wait for me to finish. i think that's what the market is pricing they're saying, there's a very good chance that president trump

and his administration will put through some of the initiatives that they want and this is why i think the market maintains its all-time high despite the fact that the fed is now reversing what has been eight years of unrivaled monetary stimulus. >> i mean, listen. we all know there are certain hopes about fiscal stimulus. it's not going to happen this year there's hope for tax reform. people see this global synchronized recovery happening and seeing where to make money with risk assets at the end of the day, we have low interest rates, even if they raise 25 basis points and start typing in the near term. we know that commodity prices are low, the dollar is low those are ingredients for higher stock prices. what troubles me are the high levels of complacency. i can't remember in the 20 years i've been in this business where

the market just doesn't sell off. to me that's a little scary. people are getting scared at how not scared everybody is. >> i wonder if that's a little bit of passive invest too. because they buy block of stocks and etfs versus individual names. it seems like they invest across the board in etfs. it doesn't allow you to separate single stock weakness, so it's muted, so just buy the whole thing. it hasn't sold off, as you said. people are happy with their gains, and what else is there? >> i think the reality so far has been it's been a very healthy market in my opinion, the way it's trading i know everybody says come place placeplac place placenscy, i get it. we watch this rotation every single day it used to be months or weeks. i think that's healthy it's not just the f.a.n.g. names, it's technology names,

not just the semis, it's others in technology. not just the financials. there's this constant rotation i do get more comfortable because it's not just one sector really driving -- >> you're right. last night on the desk we were talking about bank stocks, the underperformance year to date. you may have this breakout now at a time when f.a.n.g. has stalled. those stocks run 30, 40 percent. hundreds of billions of dollars of market cap outperforming the market and bringing up the market for all intents and purposes if you finally get your bank breakout -- >> my nervousness and hesitation, you're right, there is ability for banks to run, but you also had that liftoff around the election it doesn't get calculated into year to date it rallied earlier than the rest of the sector. so i don't know if it was a preindicater i don't know if it's out of gas yet. i think there's other spots. >> if you guys think the banks are going out because of rising

rates, sectors like staples could sell off they're obviously very expensive. you could have a rotation into value that's underperformed and staples that have outperformed they're actually pretty expensive. >> that's exactly right. look at the p.e.'s, a pullback there is almost expected if you see other parts of the market. >> then we should aspect it in technology as well it's been a low, slow growth environment with low rates where are you going to find that growth in technology. that has been the reasoning so far this year, if we are to believe that rates are going higher that changed the foundation of what had been -- >> despite the fact that technology has performed as well as it had, look at the valuations look where their growth is is it the old blindside of the growth or the new? is it more in the cloud side there is a growth-y area there the weaker dollar, that is

absolutely something that's been a great tailwind for the rest of technology >> the problem is, as we started off the show, what is the fed going to do, and is this -- to me the only risk in the market, guy started out the show saying it shrugged off everything, basically. the unwind is a big deal i mean, the margin of error, we've never seen anything like this before. >> i'm surprised, you came out being so sort of measured, because you've always called this the greatest, the biggest trade ever put on in the history of trading mankind and here we are. >> it's a lot easier to put on a trade than -- >> right >> but i also have to say, i mean, if i'm going to truthful here, the fed so far, they haven't had a misstep, right so i think it's going to be extraordinarily difficult to exit this. it's going to happen over months and years, not days. >> they haven't had a misstep because rates haven't gone down.

>> they've gotten bailed out in a lot of different ways. one way is, they've empowered other central banks to do exactly the same thing we're doing, without getting too wonky, which has been a huge tailwind for our fed and our markets. >> when you say they'll have months to unwind this, will they tell us what the pace is they have no clue what the pace is going to be but they have to be transparent while they're telling us something that they have no clue how they're going to do. that could be the misstep. >> they've always left the door open, they've always said depending on financial conditions they always have that sort of out. they can telegraph whatever they want telegraphed we've gotten the message pretty clear clearly. >> the unwind is something that i think the market is going to have to absorb before they start discounting what the effects can be >> i agree going back to your comment about a synchronized global recovery, it's been a synchronized global easing as well we don't really know what kind of recovery -- >> i kind of say that with big

hand quotes going up there we're in the eighth year of a recovery from one of the worst financial crises the world has ever seen. and it was a rolling financial crisis it was a rolling debt crisis people forget that europe was in the throes of it in 2011 and 2012 it was always in asia. some people think there's still a massive credit bubble in asia that has yet to burst. what makes me nervous, we're eight years into this, our stock market is up 200 and something percent. we can't conceive of anything that would take it down. we do think we can't think of what the next crisis is. but i've seen instances twice where the s&p 500 sold off in a trough you can't invest like it's right around the corner. but i go back to what guy said, i see a lot of things that don't make a lot of sense. the continued pile-on, the fact

that this f.a.n.g. stuff was the only game in town. >> i get so sick of hearing only game in town that's the most overused statement. it is not just f.a.n.g the world provloves to say that. it was microsoft it's a clever thing to say, four names. >> when you look at the s&p 500, because of the percent of the weight of it -- >> the performance from other names. every focuses on these big market cap names on the upside that's true, but how about all the other names that go along with them? salesforce.com you go through the list -- >> the argument is the same. the argument is that in a low growth environment, people gravitated towards technology because they were searching for growth >> they were searching for growth growth and valuation >> the s&p -- >> -- 21 times on a trailing basis. that's way above the average,

about 16 times >> the growth is coming from a different part of the -- >> so you have facebook that's been growing 35% a year on their sales and on a gaap basis on earnings, it's much less at some point it's going to decelerate >> true. except for the fact that they do have growth in other areas that's the point that you and a lot of people have been missing out on, is the reality is, where is the growth coming when you look at a name like microsoft, growth is coming from a smaller sector of the business >> last word >> there are names like salesforce that have done well i understand what dan is saying, in terms of market cap they're extraordinarily important. but look at micron's save, micron pushing up against levels we last saw at the end of 2014, very important to watch that >> guys, micron is the most commoditized piece of crap company that exists on the

planet if you look at their stock and the sales cycle, so right now we are at a peak. it's going to come back in >> we'll have a separate segment tomorrow, micron is the most commoditized piece of crap company there is terry, with blackrock, always good to see you. we've been having a spirited discussion the de facto tightening. >> you're way too close. i love this guy. i'm ready to run to the locker room >> he was the man. >> but seriously >> how does this all go? do we keep going higher? >> so tomorrow is judgment day a lot of if he had watch verse been waiting for this day to see what happened. at blackrock we expected they'll announce balancing the balance sheet in october we think investors positioning for this great unwind will be

disappointed, because one, this is going to happen at such a glacial page there will be adjustments, reinvestment amounts as we go quarter over quarter but this will be very, very small. the second thing, we have to understand what the fed has been doing over the last couple of years. they've been tacitly tightening their balance sheet. now we're transitioning from passive tightening to active tightening we look at some of the estimates for how qe affected interest rates. we think 40 to 50 basis points that's going to happen over the course of three years or so. we're saying to investors, we understand this is a big thing, we don't want to pooh-pooh it, the technical word of the day, but we have to look at other factors driving the markets. it's not just about monetary policy >> what is it about, then? around the world's been about easing monetary policy and that's fueled every market around the world >> it's been a support but that support has waned a little bit

we've been getting earnings growth double earnings growth across the major regions, q1, q2 as well we find that perplexing. to propel us to new highs, we're going to have that earnings growth now we're getting earning growth i heard the conversation coming in about how people are getting scared and nervous well, why are you getting scared and nervous if you have the fundamentals to support these pes and price levels >> earnings growth, agreed, you see it there, it's undeniable. but do you have the commensurate growth >> technology and revenue growth is up 9% or so last quarter. you look at financials, they were up as well, 8% in terms of eps growth however, top line financials only up 4% year over year. there is some dispersion for earnings story as well as revenue story. we want to see if we're getting that top line growth >> does the judgment on

valuations change when rates go higher i know that rates are historically low even in just the past couple of weeks, since september 8th, we had a 22-point increase in basis points, a dramatic move. >> interest rates, yes, are higher largely structural shift we have to think about what our risk/equity premiums should be at the same time, we understand we're in a secular theme for a couple of years or so. even if we don't get valuations pushing higher, we should at least have support from equity markets. >> can i boil it down or can you boil it down in terms of the message you're sending it sounds like steady as she goes, you're not that worried, stick with investment stocks >> i'll echo what you said, basically ecb into 2018, if they

aren't faced with adversity in the economic stance, they'll adjust that policy and potentially unwind the balance sheet. we'll see how that plays out for right now, things seem very possible on a macroeconomic front. we know north korea is an issue. there could be a misstep in the fed argument at least they've been taking from the history lessons, and they don't want to repeat that it sounds like you're throwing everything at this market, it's like a teflon market, whatever you throw, people are atmosphere and pushing it higher. that just doesn't happen without rational sense >> terry, thanks for coming by, terry simpson, blackrock >> selloff doesn't happen unless there is a misstep and it's never the selloff that we see coming. it's always that event that no one had any clue was there, oh, my god, if i had known this i would have liquidated my positions. i wouldn't underestimate the ability of the fed to screw this

up coming up, "mad money's" jim cramer sitting down with senator elizabeth warren just moments ago in an exclusive interview, he'll be here to tell us what she said and the telecon giants are in talks for a merger again how likely is a deal this time around we'll tell you what the ads trer are betting. more "fast money" after this at fidelity, trades are now just $4.95.

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you're cleaning that up. don't get caught off guard by directv. touchdown. get the best with xfinity. . they make stuff up by telling you that everything is peachy cream and everything is moving in the right direction. and understand, i like david taylor i look forward to working with david taylor and i'm not asking for david taylor to step down. but i would ask david taylor to be forthright. >> forthright. that was activist investor nelson peltz sounding off about p&g's refusal to include him on the board and accusing david taylor of not being honest about the company's trajectory jim cramer joins us. the question for you is, who do you believe here

>> this is very, very tough, because i know that short-short term, there is absolutely a change that is positive under mr. taylor but if you look at the longer term, proctor has disappointed if you look at the longer term, nelson peltz has done great. i can show you numbers that are spectacular, almost double the s&p. i think he did a great job in a lot of the places he's been involved in. but this thing has turned into a lot of bad blood the real winner is the common stock shareholder. as long as nelson is in there fighting, the stock keeps going higher >> it's amazing, the last time we spoke about p&g is when you interviewed david taylor and the stock then hit a record high here we are again today. these two guys are engaging once again and the stock hit another record high. >> there's a lot of value. it will be unlocked by someone will it be unlocked by nelson faster arguably he wants to do some

things that look like what unilever did, and unilever is doing terrifically he's saying, we've had so much change, can we handle any more change i think both sides make remarkable, remarkable stories for the shareholder. i don't think when nelson got on the heinz board, it's a little better than what proctor is saying, but i do understand that proctor feels, look, we have had too much turmoil, it's time to let mr. taylor take a little bit more time and let's take a look at it later. i do think nelson has a very good chance of winning because i think the long term for proctor is disappointing but if you look at the 16-year period for proctor, what a stock. which is why i've been recommending it forever. >> moments ago you spoke to senator lelizabeth warren, democratic senator from massachusetts.

she said something interesting about wells fargo. let's listen >> this is a company that from the very top has made it very clear, there's no accountability here this is not about serving consumers. this is all about, quarter by quarter by quarter, how to juice the reported profits that's what mattered at wells fargo. >> look, you're an investor in wells. what do you make of those comments >> yesterday on halftime, i think he sees the fed making a possible december hike the allure of this company's stock was always the cross selling. and senator warren raises a lot of questions about, what about the other banks that didn't do cross selling, how come wells fargo's numbers always looked better this is not a left or right issue. the outrage she feels, if you listen to the interview, that the federal reserve should feel. there was a culture. the sherman sterling report that

they commissioned themselves, this was a culture that was pervasive of doing the wrong thing. that report is more damning than wells fargo has led you to believe. >> jim, warren buffett stood with wells fargo as the management has changed has that changed your opinion at all after the pullback and especially after this latest news didn't affect the stock as the first go-round >> we're all in a group move now. the company's multiple has shrunk i think warren buffett believes in the power of the national franchise of it. i do think he was quick to be able to say mr. stumpf is no longer the man to do that. what is the federal reserve doing? do they feel they have any ov oversight at all the federal reserve's charter says they should be actively involved in figuring whout what

went wrong here, why this company has gotten off scot-free. i think she makes a lot of points i don't think it's about a democrat or republican i think it's about an outrage that a lot of people feel, but everyone feels pretty helpless about. >> jim, great stuff today, thank you so much for joining us catch the whole interview with senator warren and the rest of "mad money" tonight. it kicks off at 6:00 eastern time jc, getting it done, despite the tough loss by his eagles on sunday i understand what people say about wells fargo. i just went by wells fargo on principle. quite frankly, it's more than just one screwup i would leave them off not to mention the fact that it's an expensive stock in the first place. equifax is the one that fascinates me. i know we didn't have that conversation i'm shocked it actually traded a modicum higher today i still think there are some skeletons in those closets, i still think equifax goes lower

>> talk about skeletons, you talked about management change at wells fargo tim sloan, now the ceo, was the coo during a lot of these activities i think there's another shoe to drop especially after these increased numbers of phony accounts open. i don't know why this guy is still in his seat. >> do you think there's upward vibe >> yes, i do i've seen paper come in there, that's one >> the bias has been negative before >> when i see the stock sell off in the past, what it got down to was 1.3 times book, not pe, times book that's been the low end. it's at 1.4 now. it's traded much higher. obviously as it's pushed down, and i think these levels present an opportunity once again. i could be wong. i actually don't own options i own the stock. i bought the stock >> why do you think the stock should recapture its previous price to book valuation if it has to change a little bit

>> this is still a company that can go out and make money. i think they can make lots of money. there are different parts of the loan world where they do a crisper job. these are huge mistakes they made in the past let's not forget, 165 million accounts and they have the 2.1 million and now 3.3 million total in terms of -- >> forget the fundamentals, i know it's hard to do that, but when you look at the chart on a technical basis, it rallies 8% just on a technical basis alone. ahead, fedex shares lower. but could it be a buying opportunity? i'm melissa lee, you're watching "fast money" on cnbc, first in business worldwide >> let's make a deal >> that's what appears to be happening between sprint and t-mobile we'll tell you at what price traders see it happening plus the reviews for the new iphone are in. >> hate it >> they weren't quite that bad but they may not lead to the

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welcome back to "fast money. we're live at the nasdaq markets. the dow, s&p and nasdaq all closing at a high. telecom financialses were big winners. fedex falling in after hours session, the company missing in top and bottom lines shares are down almost 2%. rich ross says that pullback could actually be a big buying opportunity. he'll break it down. plus cnbc's david favor says how likely is the sprint and

t-mobile deal to get done? but first, "the wall street journal" says the iphone 8, quote, isn't the upgrade you're looking for. then there's the the verge saying, it's not the future or the cutting edge, it's just the default. wired calling it oring tepid reviews for the 8. with the iphone x's hefty price tag starting at 1,000 bucks, will people, and more importantly businesses, skip the upgrade cycle all together gene munster joins us, great to have you with us >> hello >> we saw it contribute to that step function higher in units sold was corporate america actually getting on the bandwagon and giving their employees those iphones finally. are we going to see them say, you know what, you're not getting an x, that thing is way too expensive, you won't even be getting an 8 because i can buy

an iphone 7 for 150 bucks cheaper. >> we think there will be far less adoption of the most advanced version the next cycle is really split into two phones, the iphone 8 and the iphone x so we expect about 25% of the units to be the iphone 8 and 20% to be the iphone 10. you're exactly right, you're going to see a lot less for corporate, especially. typically corporate also underindexes to consumers, because they're usually a little tighter on their budgets and they want a phone that's been around for a little bit. i think another approach to this question is, does it potentially cause a hiccup here for apple, some of these negative reviews if i could just quickly talk about that i think the answer is that we still expect a pullback in the stock here but ultimately, this portfolio approach, and apple is a genius as really segmenting with a laser edge these price points, i think that will yield the proper

unit sales and the asp move to get the stock to continue to go higher >> gene, so the company also quietly raised the price of the iphone 8 from the iphone 7 there. so that kind of speaks to what mel was just speaking about as far as on the corporate side you also worry about the elongation of these upgrade cycles, maybe this super cycle doesn't come in the way in which 40 analysts on wall street had been talking about for the last year >> you know, that's, again, part of the reason why we think this will take a pullback, because we have 40 analysts who expected this for a year. as far as the elongation of the cycle, to put some quick numbers around that, is that our estimates are that the number of active iphones that are three years old or older is now entering about 300 million units. most of the street thinks this next cycle is going to be about 250 million units. at the point of three years it's less about the features and some of the reviews it's more about, i need my phone to survive and it's just not

holding up i think that is one of these, it's not very glamorous, a baseball term, it's manufacturing runs, but enough, again, to yield a demand to get this to be a nice improvement over the last cycle. >> gene, even though, as we all know, it's still a hardware company, it's still a phone company, what happens if you don't get that pullback and we look at surprise on the services side is there any shot at that? >> i think there is. you know, i tend to still believe we'll get this pullback because i think once we get through all the excitement and the preorders around the iphone x, i think there will be naturally some concern about what the march and the june quarter look like next year. but i think that's trading the stock. i think that's an important opportunity around that. but i think as a company and their position around services and where this is going longer term, around ar, i think it's still exceptionally well positioned despite some of these reviews, it's still the best phone in the world. >> what kind of pullback are you

talking about? the last time we talked about a predicted pullback, the stock didn't hit its recent highs. what are you forecasting at this point? >> i talked before about a 10% pullback i did not anticipate this lte cellular watch which softens that i would say a 5 to 10% pullback is realistic we haven't seen much of a pullback yet >> gene, great to speak with you, thank you >> thank you >> gene munster. 5 to 10% pullback. do you buy what gene is selling? >> i've thought that for a while, i've been incorrect pete knows apple better than i do i will mention, we mentioned micron earlier up against that level. another stock, texas instruments, for example, i think it made i want to say close to a 20-year high or so. i'm probably off by a year or so texas instruments very quietly has done this slow grind higher. the downstream plays have worked in addition to apple >> gene mentions brand he also talked about retention which is what apple is all

about. they are a consistent company that when they come out with a new model, they raise prices they raised prices across every single product line that they have and people didn't even flinch. and the watch is one of those examples you talk about the lte and gene talked about the lte that i think is a much bigger play than people have any clue right now. i hated the watch when it didn't have the ability to do that, it had to be tethered over time it's grown on me now the fact that it can do what it's going to do, it's huge. the services side, all those wonderful things the weaker dollar helps demand as well. >> you're a watch guy. take a look at that beauty >> i'ma watch guy. >> one of many in his collection they each way like 15 pounds at least. would you get one of the untethered apple watches >> i probably would consider it. to me, watches are jewelry your phone is -- when i'm talking about apple, people aren't looking at that to tell the time they're looking at that because that is now their miniature

computer still ahead, fedex and bed bath & beyond sinking in after hours. both companies blame hurricane harvey for some of their troubles plus telecom stocks taking off in the last month as wall street eyes consolidation in the space. you will not believe how much higher some see sprint going me asmoy"ft aer this (beeping) we're on to you, diabetes. time's up, insufficient prenatal care. and administrative paperwork, your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you too. at optum, we're partnering across the health system to tackle its biggest challenges.

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the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. welcome back to "fast. breaking news out of washington. kayla tausche has the latest >> senator lamar alexander who had been trying to stitch together a bipartisan, short term, fairly narrow deal to stabilize the individual insurance market through 2018. he just released a statement saying that those talks fell apart, saying, we had hoped to agree on a limited bipartisan plan to stabilize markets but during the last month, despite

having worked in good faith, they have not found the necessary consensus among republicans and democrats to put a bill in the senate's hands that could be enacted. of course these bipartisan talks about have been taking place on a parallel track to a push by republicans to pursue repeal and replace under the graham/cassidy bill before the september 30th deadline we'll see whether that has new viability as the bipartisan deal falls to the wayside this comes, melissa, as the white house says it has and will continue to make the payments to prop up the individual market. it remains to be seen what the long term solution for health care is. >> a lot of uncertainty. thank you, kayla tausche in washington dan, you were noting the uncertainty in managed care stocks >> they were done a lot today, sticked out like a sore thumb. steve and i were talking about this today

graham/cassidy is not going to pass it's a shame that a bipartisan effort falls by the wayside like she said but what's the rush? hopefully, you'll need 60 votes, hopefully both sides can come together and fix obamacare >> you have to look at these on a stock basis. united health care is up 21% year to date i would say that if nothing gets passed, there's no repeal, they can opt out of exchanges that they're not profitable in, and if there is repeal, they're probably more profitable hate to say it's a buy-buy scenario >> but that's what you're saying would you buy the weakness >> i would definitely buy the weakness now to fedex, let's get to dom chu with the latest on the conference call. >> reporter: we've seen during the course of the prepared remarks segment and the analysts' q&a, on the conference

call, the bulk of the comments made, trying to clarify the actual impact of what happened with that big cyber breach of its european t&t express shipping operations. the company addressed it specifically and in depth. here is a little of what they had to say about the impact of that cyberattack >> the attack was completely contained to tnt and did not impact any fedex systems or those of our customers in addition, all of our customers can be assured there was no loss of customer data to third parties. >> all right so in addition to that, they also point out that substantially all of tnt express's operations are now fully functional and that they do expect that impact to carry over through the full year results as well. one of the reasons why we are seeing some of that weakness in their shares but the cfo of the company mentioned not just that but weakness in their fedex ground operations as contributing to the overall weakness, perhaps below expectations results

melissa, when it comes to fedex, this is a stock even with a 2% drop that's still 5 or 6% away from record highs. back over to you >> thanks, dom chu in the newsroom >> the cyber attacks doesn't bother me as much, because it's a one-time event we know they'll be raising prices 4.9%. >> which should be good. >> should be good. from that perspective, i like it i'll tell you what, the weakness in ground i think is a little concerning there's more to the story of why it sold off than just the cyber attacks. >> we're not seeing a readthrough on gps >> the other side of that equation, ground is probably 70% of fedex freight is the other, let's call it 25% if you look, freight operating margins were much better than the street were looking for. that's not a reason to go out and buy the stock, but it seems to be picking up i here what pete is saying, i think it's okay on valuation i think you have to let this shake out a couple of days, as

rich ross, who is coming up shortly. >> funny you should mention rich ross, who is in the top three. >> top three for sure. >> of the list of 12 people who are always in the top three. let's go off the charts with the one and only rich ross >> hi melissa, thank you very much look, stocks' reaction to news tells me about half of what i need to know in this case for fedex, it's bullish. look at the reaction here. so we fall 4% on the print but now you're down less than 2% on a top line and a bottom line miss that's bullish keep in mind, this stock up 16% year to date that's 10% more than the transports itself. you can see that on a one-year chart. if we bring it up, we can break down the chart of fedex more clearly. we can zoom in here. you see the well-defined up trend, we'll give it a green trend line you can see this cup and handle that's developed here, a big base of support. by no means is this

185-basis-point decline a death knell for the stock. on a sector level, it's a mixed bag. we've talked about this many timings on this show the transports are one of these failed trump trades, if you will, hasn't been able to get out of its own way here, up 5% year to date versus 12% give or take for the s&p a relative underpurchaerformer you better watch your speed when it comes to the airlines, this is a group getting hammered on both sides, trouble ahead, trouble behind you've been a billing underperformer here much like the group itself you're in the negative here. airlines are a group within the transports that you want to avoid. you want to embrace the strength in the rails and the trucks, which have been the beneficiaries of the weakness in the airlines >> rich is going to come over. >> he's got to come over >> when you're in the top three,

you automatically get an invitation, particularly if you're in the top 12 list. umm, would you rather. fedex or ups >> fedex i like to buy strong stocks in a strong time, and that's what we're in >> how did you feel when he said you want to avoid the airlines >> i understand, it's not been a fun ride, it's been hit, hit, hit. you see all the valuation metrics, they seem strong, yet the charts and the way they react and the market has not been good. to your point, the airlines have been sort of a death place to be in >> the short term technicals continue to erode. i would say if you're a long term holder, these longer term up trends remain intact in the space that offer some hope for traders out here, and this is "fast money," not suze orman, this is still a sell >> when you say the technicals

are still not constructed, they're making a series of higher lows. they may have failed but that's natural to reverse, fail, then make a higher low. look at spirit or delta, they look like they have made a series of higher lows. >> there are a lot better charts out there than the airlines. i think you have a lot of opportunities on the long side so while there might be opportunities over time, this is not where i'm looking to commit fresh capital right here >> had he is our suze orman, for all intents and purposes so what has the dow made, eight executive highs? >> eight straight days >> does it bother you that the transports have not confirmed that high yet? is that something you -- >> look, in 1924, it mattered more than it does today. i'm not saying it's unimportant. but as i said, if you pull up charts, norfolk southern, ksu, the trucking stocks, there's some real strengths within the group that masks the weakness

you've seen in the transports as a whole. the short answer is no, it doesn't bother me. i know you like the banks. you see what's going on with biotech. we have both sides of the aisle working, the dow pushing outer to a new high, even small caps pushing out to a new high. there's lot to like about the market don't not buy the market because of what's going on in the transports >> always great to see you, rich ross, evercore i missed all of it, you don't even need to ask me, you know i did. are you going to tell me what i missed and prolong this conversation or should i just move on >> casey jones is steve's least favorite let's be very frank, okay? >> anyway. still ahead, t-mobile surging today after theynd a sprint are

in active talks. much more "fast money" after this ...so he got quickbooks. it organizes all his accounts, so he can see his bottom line. ahhh...that's a profit. know where you stand instantly. visit quickbooks-dot-com.

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they had a really good quarter we talked about it earlier, more consolidation will probably put less pressure. obviously sprint and t-mobile have been banging up against at&t and verizon on the pricing for subscribers. investors see this as a decent thing, especially as you get close to at&t and time warner vertically integrating >> the notion, i was chatting with favor about this on "squawk on the street" this morning, there will be less of this sort of land grab for customers, less promotional activity, which has been driving prices lower. >> which i would think should be a good thing >> for everybody involved. >> what's the more interesting play t-mobile, we had the discussion, but sprint, big short interest, a stock that has not been able to get out of its own way since january. a series of lower highs. if you're looking at a stock that has a potential for a short squeeze to the upside despite the fact that it really didn't do it today although it was up

7%, i still think sprint is interesting. >> i keep it really simple t-mobile has outperformed these guys by a large margin i don't think that land grab stops. he's out beat telephone and verizon, he's not out to beat sprint, although he's in the trenches with sprint constantly. i think the land grab continues. >> most interesting thing, t-mobile yesterday, both you and i covered that, huge buying, sprint today, 59,000 upside calls. calls were bought as well. keep an eye on at&t. >> let's get more on the options action in these two stocks mike coe has the options action. >> midday it traded over 14 times the call volume. part of that was a big buy of the october 9th calls, a block of over 41,000, those would be bets that the stock would be up more than 10% in just over four weeks. i think basically they're thinking that a merger deal with

t-mobile would be highly beneficial >> we've seen this rodeo before, 0 though, mike >> we have that's a very good point i think that's one of the reasons why buying some cheap calls on it might be a better way to play. these situations, it's hard to see the deal close >> mixed metaphor, mel >> what? >> we've seen this rodeo before. >> oh, that's true >> it's not my first rodeo i've seen this movie before. >> you're absolutely right >> i'm just helping you out. i know you only went to harvard. >> i didn't study. up next, final trades. thank goodness 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. see options data like never before. with thinkorswim only at td ameritrade. whether it's connecting one of or bringing wifi to 65,000 fans. campuses. businesses count on communication, and communication counts on centurylink.

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and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise the big interviews just keep coming on cnbc bill ackman will talk about his battle with adp tomorrow at noon, you will not want to miss that time for the final trades. >> keep an eye on this name, i think it's going higher. >> avis budget up 9% off its recent low >> still a double?

>> still a double. >> micron, i think you want to be out of it >> why is everyone talking so fast >> we said if it holds off the oracle news, you have to buy crm. >> thanks for watching see you again tomorrow at 5:00 stay tuned for "mad money" with the one and only jim cramer. test test. my mission is simple, to make you money i'm here the level the playing field for all investors. there's always a market somewhere and i promise to help you find it. "mad money" starts now >> hey i'm cramer welcome to "mad money," cram america. i'm trying to make us money. my job is not just to entertain but to educate and teach call 180-0734 cnbc or tweet me @ji