i didn't realize it was that small. >> the retail business will continue to be -- it's going to be a graveyard for companies including aldi, probably >> at least we found out what the company got its name from, the last name of the family started with albrecht and "d" was for discount i needed to know thank you, everybody, have a great weekend. that does it for "closing bell." "fast money" starts right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm mediclissa lee. chip stocks are on fire. there's one name in this space going even higher. we'll tell you who you to play it plus, no lines, no problem scant lines at the apple store today. it might not matter for the stock. the chart mastery is here. he sees one name about to break out, the name and how to play it first, the industrials gone wild

one of the best performing sectors this week. check out the high flaying names. these are industrials, northrop grumman up 6%, ge up 4%, boeing and fedex jumping as well. are these industrial stocks your ticket to the global growth trade? will they keep ripping higher from here? tim? >> industrials, if you look at them as a sector, actually offer some value on multiples. if i look at boeing, even ge on multiples, they're not terribly impressive boeing is impressive some of this can continue. look at the energy sector as a case in point and then the financials this week was certainly punctuated by fed. you have business as usual these names people are grabbing for value. >> do investors believe in the global growth trade or is this a sector that finally is catching up and getting some love here? >> ge has less than a dollar of

free cash flow boeing is amazing, it's up 65% year to date, only got a 52% buy rating this stock can see a lot more upside, they can raise the dividend there's stock you want to continue to own. ge has less than a dollar cash flow throw on some earnings from their other investments. the stock is overvalued at these levels i would stay away. >> ge has been dead money for a long time. i would separate ge from everything else. what i find interesting about the whole thing, you ask, okay, the global growth trade, i agree with tim, there's rotation going into it. you hear everybody talking about this global cyclical recovery, synchronized recovery, blah, blah, blah but the bond market is telling a very different story the yield curve is flattening, suggesting the economy is going to be getting weak so you kind of have this two stories here >> which one does bk believe in? >> i go with the momentum, i go into the industrials at this point. the bond market may be right

the bond market, though, is usually six months early >> maybe ge changes around under this new leadership. i'm not sure it's more now in the prove-me state. we've talked about honeywell seemingly for years. i think that stock made an all-time high today. the subset of the industrials that you mentioned are the defense stocks defense stocks are their own animal i don't think it necessarily means there's some global growth or synchronized global growth going on what it means is the world continues to be a pretty scary place. and you look at lockheed, all-time high, raytheon all-time high, northrop grumman we've been saying that since before the obama election in 2008-'09 >> that shirt looks like it's from the reagan administration >> this is for the folks at home >> that's a horizontally striped shirt that guy has >> it might cause seizures in small children you might want to avert their eyes if we are to believe this

rotation, where is the money coming out from? >> tech. it's not time to run for cover in big cap tech. where can you justify multiples, apple where facebook, inintel, sort of with a microsoft, that are defendable with a nice dividend yield and huge capacity that you can put to work if you look at the semis in terms of the nvidias of the world, too rich for my blood if brian is chasing momentum -- >> that's one place. we've seen big cap tech being used as an atm all year long yes, there is some money coming out of that. if you buy into the global growth story, then you don't necessarily need the idiosyncratic growth that's in some of these big cap techs when you talk about facebook and google people were going into them because they couldn't find growth elsewhere for my money, even look at honeywell, something guy has been on all the time, that looks like it's breaking out the i think you ride that horse.

>> if we are to believe this is back to global growth trade, how about energy, how about materials? energy did well this week, materials did not. >> tim has been on this. a couple of weeks ago when exxonmobil held 76 a couple of times, crude was going lower we talked about, maybe now for the first time in a long time, exxonmobil looks interesting tim pitched anadarko petroleum yesterday. look at general mills, by the way, over the last year or so. you talk about money coming out of a sector. gis is probably the moster chpod but it's happening in other stocks as well >> all the costs are starting to roll china is rolling over. those are vulnerable names you look at materials in general. i think the prices will continue to fall. >> dave, i'm surprised you're alive and kicking in breathing, you said not in your lifetime would get above 50 bucks

>> it's struggling at 50 >> you've been negative, i've been positive, that's -- >> i have been right and you've been wrong >> believe it or not, that's not my point you had a place in energy where we've stabilized in terms of oil prices, where the indices, you're seeing where the 200-day is starting to see the 50 passover it's also called the golden cross. it means the momentum has finally started to shift the trade in brent, which is what i follow, is above 56 i think it spikes higher >> this actually might be what the bond market is signaling you get higher oil prices, you get a fed that is going to start raising rates, potentially more aggressively than we might think now because inflation is creeping up, then you're going to see a recession but that's probably -- >> a recession >> hang on >> bk -- >> see, we've -- >> i said --

>> i heard recession >> and jumped on it. >> yes >> you did hear recession. my point is, but that is probably a 2019 thing. that was the part that's actually fairly important. >> why call for a recession in 2019 >> i didn't call for a recession. i'm just saying the bond market is telling you something but i don't think it's going to be this year >> the bond market is not telling you recession in 2019. >> i didn't say -- >> maybe recession 2019? what are you saying? >> i'm saying the yield curve is flattening if that continues, that is generally a sign of a recession. my point is, if that continues, we wouldn't get that until 2019. i'm not calling for a recession. i'm not saying go to cash. i'm not saying throw the baby out with the bath water. i'm not saying any of that it's interesting that we have this global growth story and you have the bond market telling you a completely different thing >> i do too, i think it's a very good point inflation is what it's all

about. the ten-year part of the curve is representative of inflation expectation, not the short end every central bank now is struggling to have inflation get to their 2% mandate. the only drivers for bond yields going higher is the u.s. government is going to stop buying ten-years i think rates are going to go higher this flattening, nice for financials to get out of the way of this, they've rallied this week as the curve has flattened a little bit i think rates are going higher >> what do you do? >> stay with tech. i think boeing is a great stock. the airlines as well, you'll see a little juice in the airlines, so buy the airlines. tech as well apple being down 8% since they announced their phone, it is 100% a buy >> can i show the beauty of this show what is the name of this show? >> "fast money." >> a week or so ago, this equifax -- equifax, equifax, equifax, karen was short the stock, she covered nicely. we had a conversation about how

there's probably more room to the downside david argued maybe there's a little more room now the stock is probably going to bounce. turned out almost everybody was right. there was more room to the downside look where that sucker closed today. i've got to tell you, i don't think it belongs here. >> and by the way, equifax is an industrial >> what? really >> it is in the industrial sector on the s&p 500 and it was up 10% obviously from a bygone time >> i guess so, maybe when they were making fax machines i think you stick with the industrials. you look at ge to me, it's one that i was long earlier this year. and i think now you're starting to get a little bit of life there. so i think that's the place you stay coming up, apple under pressures, posting its worst week, we'll explain. plus chips hitting the lowest levels -- highest levels

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welcome back to "fast money. the iphone 8 launching today in stores but you may have noticed if you walked past a store this morning, no lines. josh lipton is in palo alto with more >> reporter: melissa, i got here to this apple store in palo alto at 4:30 a.m. local time. there was one lone fan who had been camped out on the sidewalk since last night when the doors opened at 8:00 a.m., the crowd did pick up. of course we're in the heart of silicon valley here and probably a few folks know this is where ceo tim cook does happen to make a guest appearance he did so again today. in a brief chat cook told me he was very pleased with early demand for the new products. >> i am thrilled here's what we're seeing right now. the watch with lte, the series 3 watch, we're sold out in so many places around the world.

and we're working really hard to meet demand. we've sold out of iphone 8 and 8 plus in some stores. we've got good supply there. and so you can see what's going on here this morning i couldn't be happier. >> reporter: but some were talking about the lines and crowds at apple stores today, how those lines appeared weaker relative to prior years. the question, of course, being could traders and investors use lines like that as maybe a proxy for demand gene munster points out the lines have actually been getting shorter over the past couple of years. last year in apple's fifth avenue store in new york, there were 1500 in line, the year before that there were 2,000 it could reflect consumers' shopping habits, more people are more comfortable shopping online and this is a staggered rollout with the iphone x arriving in a

few weeks. that could also be having an impact too munster is still calling for iphone unit growth of 9% in the next cycle versus 3% in fiscal '17. apple's stock has been under pressure it's now closed lower three days in a row, down about 5% for the week, though still up about 30% so far this year bernstein's tony sakanagi says the stock is mixed following the iphone launch. it depends whether the new cycle beats or underperformance expectations as sakanagi notes, the 6 and 7 outperformed but the 5 and 6s not so much. melissa? >> thank you so much, josh lipton in palo alto. i did speak to gene munster this morning, we had him on a couple of days ago. i asked him where we are on his 5 to 6% pullback call. he said even though we're down 8% from the 52-week highs, he still thinks it drifts lower we're very close

>> you know, i'll tell you what -- >> i called you silly bk >> he did call me that >> i would never call him bk >> i'll tell you what, i'll tell you what i've been called silly a lot of times. every time i'm called silly, it's the best thing ever for my trades you know what, i will buy apple. i like the price action today. the lines were horrible. what worse news could you get? i saw receipts of people returning watches. i buy apple right here >> you bought it today >> 100% agree. it's 100% of buy, it's going to be $180 over the next six months and then you take chips off the table. no question the purchasing habits and the way people buy things have changed, we know that from the brick and mortar slaughter that we saw. it's ridiculous to look at the line and judge how this product is going to sell we have a big launch with the x coming out china is going to be a massive supporter of this product. stock's a buy. >> why do we assume people are going to buy the x that's part of reasons why

initial preorder numbers for the 8 and the lines are falling short. >> the effect of apple products historically tells people they'll buy anything it's more gadgets. it's certainly state of the art. people will buy it there are people who are caught in between the cycle here, especially when in fact this isn't going to be ready right now. and it's going to be a couple of months away. if you want a new phone, you need a new phone, you're going to go get one. the most important story for me for apple is one, they're maintaining their gross margin, they're actually increasing it the asp on this thing, as we just said, something they're able to hold on to then the services side of the business, it's now 16% of the business it was 7.3 -- i'm reading notes from my research assistant -- and ultimately it's a case where i do think that high margin business is going to be a big part of this story whether it's pulled back 5% or 10, i think if you own apple, you own it for thosereasons. 143 on the stock looks interesting. >> people were camping out for a week, we made a big deal, not us, this show, people made a big

deal so you have to be respectful that -- the only lines shorter than the line for apple is the line at shea stadium >> or the '80s when that shirt was last worn. >> with that said. >> sorry >> i can't be 100% certain of many things, least of which if apple is going to stop here. we had a conversation with carter worth last night. the two of us were almost in accord, the 134, those old previous highs from a year and a half ago, could be in play if it does, that's when you buy the stock. >> shares of tesla under pressure the automaker tanking 4% today, dragged down by solarcity, the tesla subsidiary that reached a settlement with the department of justice federal officials had accused similar city of inflating cost of solar installations how big a shadow will the settlement castwith tesla? >> that was my final trade last

night. like tim, i was right too, you sell tesla here. >> it feels good, doesn't it >> feels great, first time in a while, i feel fantastic about this what's interesting about it, tesla will go through this period where we're concerned about what their delivery is going to be. it looks like it's a corrective phase. on the other side, look what happened with the solar stocks today. you saw stocks like first solar absolutely rip on news that the cheap imports from china will be restricted that's how you play this space >> kudos to bk you pay attention to modified things we say here >> 89% or so >> it's got to prove itself. those old highs in june, 389 or so, we said there's a good chance of a double top i encourage folks at home playing the home game, put up a chart of tesla and you'll see what appears to be one of those

double tops. good for bk. bad for tesla, tesla in my opinion might not have proved itself, maybe now 3 1/4 comes back in. >> a huge week for gm and auto trades around the world. to be clear, i think there's a lot of correlation netflix up a whopping 11% in the next month the chart master sees something that might have you pressing the buy button i'm melissa lee. you're watching "fast money" on cnbc, first in business worldwide. meanti meantime, here's what else is coming up on fast. >> food fight! >> that's what's going on in the delivery space and there's one stock that could emerge the winner. we'll explain. plus -- one chip is up over 100% in the last year. you won't believe how much higher traders are betting it will go in the next month. ndowo ayt, h tpl i when "fast money" returns. s mose campuses. or bringing wifi to 65,000 fans. businesses count on communication, and communication counts on centurylink.

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places like chipotle, shares are going lower today. now walmart is testing delivery services in california as these giants go all in on the food wars, who comes out on top? what do you say? >> i don't think this is great news for anybody you have an overly competitive industry, $1 trillion of consumables, these guys are all pushing prices lower this is not a reason for me to go out and buy walmart people have given walmart way too much credit for now being a tech play. >> you are speaking my language. i love -- >> thank you >> wow >> this stock should be sold it's crazy to think they're actually not going to get crushed in the gross margins >> what are you talking about? >> again, i'll say it, because 53% of the revenue comes from grocery. >> they're going to sell more of them >> nah, they're not going to sell more. they have to cut costs there's no way they're going to be able to keep up >> they're losing money on the grocery business, they're pushing their suppliers in a way

that's probably unnatural. >> every else is having the exact same problem walmart has the omni channel strategy this is one more thing i think you buy walmart, i think you guys are wrong >> you know, who's stayed away from that whole grocery thing? >> what? >> tar-jay people got on them because they weren't getting in, and maybe they weren't so dumb we had mr. captain fantastic on the other day. >> mr. wonderful >> we talked about albertson's, we said don't buy blue apron and he backed us up. look how that sucker closed, it ain't going anywhere >> amazon. just keep buying amazon. it's the only one that you can buy to be safe in this space because everyone else is -- >> to be safe? what are you talking about why is that safe >> kroger is under assault, right? they've got german competitors coming in. they'll crush them

>> explain why amazon doesn't have the same competitors. >> because it doesn't matter >> that's the most ridiculous investment >> there's not extended floor space. home depot and lowe's. >> it's time to start bringing out the sweaters and sipping those pumpkin spice lattes, or whatever you want to sip, maple pumpkin. tomorrow is the official start of fall. the traders have picked four stocks they think you should fall into. >> jd.com, essentially the competitor to alibaba. watch jd steal some thunder frommalfrom al alibaba. >> what do you do in the fall? you stock up on goods. where can you get goods nice and cheap? walmart. i think you buy that one >> would you rather hea

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hi there, we're live at the nasdaq market site the guys are getting ready behind me. while they're doing that, here's what's coming up in the show >> when the money is coming your way, you don't ask any questions. >> except one. how can i buy surging shares of netflix for next to nothing? plus here's what chip stocks have been doing. we'll give you one name options traders say you can still buy. and deal talks between sprint and t-mobile continue to heat up. >> can you hear that >> you bet we have a way to buy one of those names for under two bucks. the action begins right now.