this is a significant investment to quiet 38% of the company. so this was a $4 billion investment i think this is a jump in and not a walk in. >> the first jump in of others that we'll see, do you think >> i do. i think so i don't think that anybody will let constellation control this space, so i think they're the first one and i think they're aggressive and the next ones will be more defensive. >> good having you on. we'll have you back soon jon taffer have a good vacation "fast money" begins right now. >> "fast money" starts now at the nasdaq marketsite overlooking times square tonight on fast, tech stocks feeling the heat and taking the brunt of today's sell-off as one company says this could be your best chance to buy tesla in turmoil elon musk's own board can't control him, and how can the sec step in in his own deal to take the company private in jeopardy,

but first. we start off with stocks getting slammed today and e mergimergin markets coming in like a wrecking ball and the dow dropping 300 points at the lowes of the day although it did close off those lows and material and energy stocks getting hit the hardest as the dollar continues to soar higher and it shows strength despite the global sell-off and is the pressure too much to withstand and just how bad could things get? >> you know what is the wrecking ball it's the u.s. dollar. to me, that's what started this entire thing when you look around the globe over the last week, not only have you seen the turkish lira fall apart, but the indian currency and today we had mexico, europe, and we had italian yields going higher and so all these things have conspired to make it a pretty risky environment and i said it before, and i'm probably on number four and i have to say it 13 times before people get it, but the dollar is the new vix. the higher the dollar goes and

the repayment costs for the people that have u.s. dollar-denominated debt is higher to the extent that everything collapses into the sensor, the emerging markets are the first into the spear of the storm, if you will and it comes into the u.s. and eventually, yes, it will get here as long as the dollar keeps going higher. >> i have to push back >> let me ask you a question was it the chicken or the egg? >> yeah. >> you could look at it either way, right that the flight to quality and spend the dollar so you think that the dollar was first. it doesn't matter. maybe you think it doesn't matter. >> is it a catalyst? >> right >> here we are, and the more that the dollar moves, the worse the problem gets. >> look. i agree the dollar is the barometer right now and you have to keep your eyes down and we can't rally and go back to the new highs without the dollar coming in and certain areas where you really can look at it

and say i'm optimistec about the earnings trajectory, et cetera so would i be bottom fishing absolutely not there's more of a downdraft there and would i be bottom fishing? 100% i think you can step in and buy some of these names and they believe in the fundamentals for the longer term and get some pretty decent valuations and look at the cap and boeing and let's look at where these stocks have come from and it's 133% since the election and it is still up 65% since election that's significant, you know the move to the upside i don't look at those as being disruptive stories i think that they're there, but i think they come in more. >> and i don't know if i can have a chart here. it was important and this was a stock that was rangebound for a couple of years and it went up almost 100% and it's given up half of its gains since the start of 2016 and that's a bit troubling because one of the reasons why the stock broke out when it did is because we were

talking about global, synchronized growth and they started to play and that was a big part of what was going on here, and i think if you put all these issues about the dollar and all of their overseas exposure and that's what's waying on those sorts of stocks and obviously, boeing, you mentioned that one and that thing looks like the internet -- i don't know what the heck it looks like but what's interesting is it's nearing important support. >> we talk about industrials and the xlis and it doesn't act particularly well, and i don't think the bank stocks act particularly well. auto stocks don't act particularly well and we have pockets of strength in tech stocks and semiconductors are starting to roll over and we'll talk about nvidia later. to me, i just think that the fact that the s&p is literally within a percent of the all-time highs and it hasn't been able to break out. >> and all of the underpinnings. >> look at what happened with copper today >> copper is down 4% if you have the crb index with

yield and say that's the barometer where yields would be. it suggested the ten-year yield in the u.s. should be somewhere around 2.2%, right so you're talking about a deflationary environment where the market is set up, and i think that's the change that we're going through now. >> i guess the question is do you see people walking in some sort of bluster or panic >> as a matter of fact, the industrials and the sell-off in the industrials today. the questions we are getting are when do we step in and buy these? >> the bottom. >> and yeah -- it's august it's august. it's summertime. people are on vacation and this say very big vacation week, this week and next week, actually >> look where the market is, and that is true and i accept all of that as true and that's not a floor being created and it's the volume at all, right i love it when things are trading down an integer at a

time because that shows the indescriminate selling and people panicked we're starting to see a little bit of that. i still watch the vix. >> five days ago it was at 10. >> i do suspect -- i do suspect there is a little bit more down side to the market, but the buyers will be there and they will be there aggressively at some point and i don't think it's a downdraft i don't think we're looking at another 5% to 10% pullback in this market. >> the point that you made before that the s&p 500 posted record highs right now, it's a question of risk reward, right we're close to record highs. we had a strong earnings backdrop for most of this year and that hasn't been the reason why stocks will get out of the rangebound move that it's seen and we have all of the other headwinds potentially on the horizon. so in this environment is a risk reward really to the upside? that's the question here, right? >> i think it's important to remember the s&p 500 was at 2800 in the start of july and it bounced off

of that a couple of times, right? and we stopped playing the game and are we going to break out. i think if we keep breaking out through august and then we get into the fall and we have a lot of trade stuff that needs to be resolved before the election if there's a scenario, i see a lot of technicians saying, oh, man, if you can get past the geo political stuff and it's pretty neutral and you see it break out and you see a melt up of 10% like that in the end of the year and i can see that there's a lot of turning going on, but the problem i have is there's not been new leadership and that's my issue, and even after we've seen the volatility earlier in the year with fang. now it's just like, that's still the leadership oddly and i don't see any other groups picking their heads up. >> it's about to get worse before it gets better according to our next guest, let's bring in chris harvey, from wells fargo securities head of equity strategy how much worse will it get

before it gets better? >> we see turkey as a crisis everything with turkey, it can look good and one day we come and it gaps down and with that, what we expect is risk product equities to trade down with it, but it's not a seminal event this is a systematic risk in the system isn't exceptionally high and we would think a couple of things would happen. the buyback and they would increase on some sort of pullback and the fundamentals are still quite strong when we look at the economy it's as strong as we've seen it in recent years gdp is only going to get better in the short term and people aren't saying to us, oh, my god, chris, it's very hot and they're saying things are good and things are getting better and that's what we see and we see the same thing on the earnings side it's not a house on fire and when things come down, we like them more and you were talking about risk/reward. the risk reward looks better and when we get close to 2900 the risk reward doesn't look as

good please >> so let me ask you and let me push back and say, okay, we have an emerging market and we have where growth has been and it's not just turk pep it's multiple countries and even italy with the higher yield today, people aren't talking about that. at what point does the magnitude and they're all individually might be small, but the magnitude of all of them happening hurt the u.s. >> one thing and this is the theme we've been playing out for a long time and the market is becoming more discriminated and as they've painted everything with the brush on the way up, now that things are coming down you have to price things based on the risk and on the fundamentals italy, and turkey. you're seeing a differentiation and a discrimination and things will continue to go higher and things that are bad will trade down so we don't think that emerging market will bring things down and the u.s. market, that's the cart that everyone has had the horse to we still think that's true and if you look at the banks and if you look at the market in

general, it's pretty solid i don't see a whole lot of risk in the u.s. market obviously, there is some and the systematic risk. >> the house on fire scenario for the u.s. economy we are here talking about the fed and whether the fed will scale back their expectations to raise one or two times in the next few months. that doesn't sound house on fire that sounds like all of thisec whatness underlying the major u.s. indices which are the only ones on the globe that are up on the year it seems there sea a pocket of rick underappreciated this year. >> let's talk about the fed. the fed is moving at a very measured pace and that's the good thing and the fed is talking about where the neutral rating is and the fed is also talking about positive and that's constructive and powell has been doing a good job. pockets of weakness, you'll always get pockets of weakness and if you missed numbers there say big penalty for that and the market has discriminated between good and bad and i don't know how to put it any simpler, but

when you look at the market in the totality and you look at earnings and you look at valuation and you look at sentiment. sentiment -- people aren't all gidy and they're not all excited and leverages and there's not a whole lot of speculation and usually toward the tail end of things -- >> this is new highs by the end of the year. >> we think you go lower first and then you do make better highs or new high, that is correct. because of earnings and because you get m and a to get it. they're still wide open. there's still access to capital. when you don't have access to capital, that's when you worry and that's when you see weakness and not here, not now. >> what do you think >> i would aren't want to get overly bearish here, but there are some very big, macro headwinds out there they think the u.s. market has to adjust to i think that's the process we're going through. i see a scenario, but before we get there you just have to be

cautious why are you buying the market here at an all-time high. >> the s&p 500 is 16.2 times we have $178 of s&p earnings projected for next year and that may actually go higher >> it may go lower, too. >> it is higher than where we're trading right now. i think you selectively need to be there and buying stocks on dips that you find to be attractive in the long term. >> what do you think, karen? >> i bought some macy's, when people miss on earnings i like to wait a couple of days a three-day rule down more than six bucks on what i didn't think it was a disaster at all i also bought some baba calls. that space has earnings -- >> ahead of earnings next week so that's a much shorter term trade than what i normally would do, but that stock, like, the universe of those stocks there's been obliteratid and think the story is still very much intact.

the valuation is very different. >> and then i had some s&p puts and i would probably start to sell those tomorrow if we see any increase in the vix. >> coming up, the nasdaq getting hit the hardest and one tech nigd says there are three names to buy on the dip. don't look now, but bitcoin is rallying what's behind the move and is the crypto crush over? we have the details and later, fast tweeting. the tesla's board members have reportedly been telling elon musk to take the company private at risk? we will plexain. we are at times square in new york city. much more "fast money" after this from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic?

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a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today. welcome back to "fast money. tesla in turmoil as reports that the board is trying to rein in elon musk as the sec could make waves at the company this as questions swirl about who exactly could fund the deal to go private. let's bring in leslie picker for more on the story. >> the fallout continues for the two little word, funding, and it's been over a week since elon musk tweeted a phrase, a phrase that still has the power to push

tesla's stock price higher or lower. today that phrase appears to have caught real traction about the sec which has reportedly issued a subpoena to tesla and that news, of course, sent the shares lower today i guess the backdrop of a regulatory pressure is becoming increasingly clear that funding was not as secured as the initial tweet that the markets have believed. so shares dipped on that headline mid-morning and closed 3% lower today, but any new showing that tesla is moving in the direction of an actual private, seemed to generate more optimism and the topic of the next few days have been that of advisers and musk tweeting that he was working with goldman and others but none have actually come out on the record confirming the mandate until today when goldman sachs' research department sent a note to clients saying it was effectively suspending ratings and price targets for tesla because it's, quote, acting as a

financial adviser in connection with a matter that is fundamental to the reasonable analysis of the rating and price target for this stock. >> the new york times reported the words that musk tweets has become an issue and gave him an edict to stop tweeting and he hasn't really tweeted today, guys so maub itybe it's working >> think he posted something on instagram of a dog or something like that. he's on other thing, but this is the thing about the goldman sachs putting tesla on the restricted list. >> who hired goldman sachs and there were many other deals and they've loaned elon musk money and it could be either side. >> either side being the board >> the directors of the board oor elon musk as investor. >> this kind of thing is so unusual and my experience as a previous m and a reporter i've

never seen the investment bank saying they're restricted because there is a wall there, but the nature of this situation has been so unusual and so backward that, you know, normally you see they get hired and then they negotiate a price and then it's announced. this one is second place in the reverse, so i think it's interesting that it now, the research department has to come out and effectively suspend coverage of a company that will be walled up again >> a couple of days ago you were basically on fire about the whole situation. at this point now that we have a couple of more developments coming out what's your take >> well, i think it's trying to cover his tracks, right? clearly, he should have had advise advisers earlier and that was a good time to secure advisers i think the board hasn't had control of him i still think that the sec situation gets much worse and

not better he hasn't filed the 13d yet and i don't know -- >> he has ten days. >> no, you have ten days from when you go over your initial filing and any significant change after that, you have to file as soon as practicable. he is so far over that, it's ridiculous and then the eight-day filing they've done a horrible, horrible job at every turn and i don't know how it keeps getting worse and yet it does. the remedy of all of that is i'm not sure i don't know if it's 15s or something else and i don't think it's the firing of elon musk i don't think that at all. the other issue is can he get a deal done, right that's an extraordinarily complex deal to do an ldo for a company that doesn't make any money and yet he wants to do an $80 -- a $70 some-odd billion deal and he doesn't want any big partners, right? so he wants a bun of people to

relink wish control into a private entity that's going to be probably more leveraged than it is now and it's not impossible >> silver lake allegedly reportedly being an adviser to elon musk and the comparisons to del going private are enormous and that's the company that helped michael del bring the company private. >> yeah. >> dell generated cash >> exactly tesla does not do that and it's a different circumstance and silverlake has never done a deal like that before. >> they weren't doing this for a special purpose vehicle where investors feel compelled to transfer their shares and give them, you know, basically a vehicle and they have the fact that they're then going to -- instead of taking the $420 per share they'll put it into this vehicle, and it sounds like something it will be a difficult sell to many investors if not the entirety of that. >> like a fidelity or vanguard

and actively managed fund and the last to sell they would have to get rid of this >> that's something that we don't talk about a lot and the public equity was born out of a bull market that was in its infancy in 2010 and since then they've raised $19 billion in equity and in debt and they're selling one of the highest priced cars, for not as scale. this thing say disaster waiting to happen. if it can't do a deal, we possibly have global recession and we're seeing weakness in china and that's supposed to be one of the massive markets. >> i'll tell you, they're fighting against multiple timelines right now and he shouldn't stop tweeting and you stop thinking about mars >> i think we'll find ourselves in 2019 with no deal and it's just going to be a disaster. >> this is the story that keeps on giving. >> leslie, thank you >> leslie picker >> check out shares of cisco

the company reporting earnings moments ago and that conference call beginning to wrap up. i'm melissa lee. you're watching cnbc, first in business worldwide in the meantime, here's what's coming up on fast. >> just when you thought it was safe to get back into the water. >> shark shark! >> big tech is getting crushed, but a top technician has three names he says you can buy on this dip >> plus. >> smoke some weed >> yeah, that's right. one of the biggest beer compani companies is going all in on pot d c srk a frenzy. much more "fast" after this.

♪ hawaii is in the middle of the pacific ocean. we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact

to hawaii's economy. ♪ verizon provided us a solution using smart sensors on their network that lets us collect near real time data on our power grid. (colton) this technology is helping us integrate rooftop solar, which is a very important element of getting us to our renewable energy goals. ♪ (shelee) if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪ cisco surge in the after-market session let's head over to josh who has been listening in the earnings conference call. >> hi, josh. >> melissa, let's start with wall street, and what you had to say. i caught up with jim fish who

will take on the quarter to see what he would highlight right away 7% to a better than expected $7.44 billion. that's critical referring to the company's core business there. he emphasized the product backlog with 6.6 billion in 2018 and that's a 40% increase. credit suisse telling its clients the q1 is very strong and the q1 estimate well ahead of estimates and in-line on margins and talk about security, m and a, and the margins expansion could be better. chuck rob sin talking about the quarter with analysts. take a listen there. >> our results demonstrate a combination of the latest innovation, the ongoing value companies are seeing in the software and subscription offerings and an excellent execution across the customer segments and geographies our strategy is working and we believe that we are well positioned to capture growth across the portfolio with the

pipeline of innovation >> in terms of potential risks out there, melissa, robin talked about a stronger dollar and talked about uncertainty and emerging countries and said that cisco had to deal with the challenges about the tariffs and they're watching him closely and they're in deep discussions with the trump administration and for much more on chuck, tune in tomorrow when the ceo will be on cnbc to talk about this, and i'm sure many other issues melissa, back to you >> thanks so much, josh lipton and i should note our competitor juniper is up in the after-hours session, up 2%. >> kind of a surprising, guys in my opinion, since they last guided mid-january the dow has risen 40% and 40% of their sales come out from north america and you'll see estimate revision and a share repurchase in january and the third largest u.s.

company beneficiary, and you just bought duo and they trade below market multiple. i just can't see a reason why given the confidence they have with the guy and why the stock should be below 46 any time soon again. >> it's been sideway, right? the market is likely offsides here and underpositioned in a sense and you have an opportunity for a breakout and all of the things that they mentioned on the call and they're okay and they're all right with are all of the things they're worried about. this was almost, i hate to use the word safe haven and it certainly feels that way >> biking the trend what we saw today and just when you thought it was set to get back into tech, with tech having the worst day since july 30th. hi, bob. >> hello, melissa. it was slower global growth concerns and the main driver and that has an impact on growth stocks and particularly technology and consumer

discretionary names. in the nasdaq 100, high-profile names like netflix, paypal, microsoft down 2% to 3%. google, facebook and amazon. semiconductors would reach their high like lam research, marvel and kla tencor they're all down about the same amount they contain several chinese tech stocks, and the trading community was shocked when ten cent reported earnings when they were below the same period last year and that just does not happen and it reports earnings tomorrow down 9% and seatrip was down 3% and internet search giant, baidu down 4% they were in the nasdaq 100 and all of this sounds disappointing given that the tech season ended on a strong moat and that was the market leader. the s&p tech sector and the nasdaq 100 both hit historic highs at the end of july but this is basically a one-day sell-off in tech at least so far. for the most part, tech stocks have escaped the carnage that's

been visited on commodity stocks by the rise in the dollar and concerns over turkish contagion. the nasdaq 100 is only 2% from the historic high it hit in july the s&p technology sector is only 3% from its historic high that's small potatoes compared to the materials that were 11% off their historic highs or the 9% in energy and financials. back to you, melissa >> our next guest says there are three tech stocks to buy right now. let's go off the charts with todd gordon with trading analysis.com hi, todd hi, melissa. >> if you look at the charts and the volatility that we've seen and it's held up quite well and this is the smh on the weekly. and i know b.k. likes to surf the wave and today is the first push for one, and beautiful breakout in wave three and this is a holding pattern, sort of

biding its time before we break out and i think semis have held up quite well. no surprise and what i'd like to trade here is nvidia just a lot of consolidation and no activity of downside support break. i like the look here and if we just clear this and outline this about a 265 level and obviously, we've had some upgrades here pointing to above 300. i would like to trade here and i would like to break out above 265 and the risk/reward and the risk in 1x, and i like nvidia on the topside. >> next up is amazon, and this is just one of the most boring, beautiful, uptrending charts on this beautiful parallel channels here and guys, you have to make sure you're switching over to the chart, and you're looking at percent change, and when you do that, you will see an usual up trend. >> it's really not whafrs

bought it was oversold and it shouldn't have a problem hitting 2k. we won't hit resistance until 2500 in amazon that looked like two two to go, and i almost took long on apple and apple acted really strong in a very bad case here the stock looks great and sort of the same phenomena with the parallel channel on a semi-log chart and be sure to set your chart that way you will see apple got room up to about 225 specifically, what i'd like to show you here is a very beautiful symmetrical chart. this advance right here was 142% that is kind of a benchmark. that is a precedent on the upside and once you go back and collect yourself, you will see the symmetrical moves more awesome than you think 142% move puts you at 218 in apple. we close just about 210. i think a nice short-term trade

that i'm putting on with my subscribe se subscribers is a 218 and 210 spread and i think technology held in pretty well today. >> your picture, todd, is broader tech in any sort of technical danger >> no. it acts fine and what bob was talking about was china. some of the chinese internet stocks which have been a major source of volatility here and kweb, one cart i submitted didn't make it on, but it's held back and it has a beautiful support levels from the last couple of years and more highs and i even think china is trying to find some support and chinese internet specifically and to take it off the tech conversation, if we can and i think small caps acted well and i put on a long position in the russell and i took heat on it today and it still held bell and i'm still constructing the thin, august market and you have to keep that in mind. >> todd, thanks. todd gordon, trading

analysis.com we take a look at the chinese internet stocks and they've been in a world of hurt for months and it was not just yesterday and not just today we take this as the story of the chinese stocks or a sign that maybe there is the slowdown in china. >> think the chinese stocks in general have gotten crushed and now we have decisions on games in china so there's multiple different panelists along the way and you pick which one is the most important, but to me these are trying to catch a falling knife and i would just stay away from this there's not a lot of reason to catch these knives. >> right i agree, and a lot of the data that we've been seeing recently has not been super strong and we had the consumer data that came out roughly a little weaker and i would say baba is the name and it is a very, very scalable model. in my opinion, it is a great point to step in and buy the stock. >> i'm sure they would like

trade calls in baba. >> you know, i love when there's this pain, right buy when there's blood on the streets even if it's your own. it is not my own in this case, in other cases it is 210 was the top not that long ago in june, so it's down, what? 20%? 20%. so maybe a weak is a little bit and to me this is just so overdone. >> so why not? >> i do not agree with technicians two nights in a row, and i'm seeing every major mega-cap semistocks in correction territory, and intel, taiwan, semi and broadcom and the list goes on and on except nvidia which reports tomorrow night and there are a couple of others that act okay, and you will lose the smh. >> yeah. i'm swiping one way or the

other. >> i do think it comes down to nvidia. >> constellation brands takes a $4 billion stack in cannabis growth our cannabis king, tim seymour will be here and macy's worst day in more than a year after it drops 16%. should you b tuyhe stock at a discount or is the epic run over much more "fast money" after this & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems. except for the daily theft of your danish. not cool! at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & this shipment will be delivered...

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money," constellation brands, a d aditi roy has more >> this is a bold move by one of the biggest brands in the beverage industry. constellation brands will rise to 38%, that's up from about the 10% it currently owns. >> shares of canopy surging on news, while share of constellation fell in trading. rob sands took cnbc that he anticipated turnover among investors because it is such a bold move and it is not easy to understand the short-term economic value of the deal, but he was very clear about the long-term opportunity for the beer maker to get a foothold in cannabis >> we're creating a fourth leg in our business which is the cannabis business and number two, that this is going to be a $200 billion plus market by

2030, and constellation's really, through canopy, taking a first mover advantage of that. we expect to take a pretty significant share of that $200 billion industry >> analysts' reaction appears to be mixed cowen saying in a note, we believe it reflects the long-term attractiveness of the global cannabis opportunity. k tim ramy cut it is aing it would have significant near-term impact to the p, and l >> bruce told me the opportunity to collaborate with constellation goes beyond using sparkle water with cannabis products he had marijuana-infused drinks with the time release function with possibilities in the future other pot stocks are also lighting up on the news. shares of afria, aurora and

krons on all flying high today and molten coors was in talk with several cannabis companies. it seems like this story is never-ending >> i thought marijuana, this is according to what i understand of it because i've never -- made you mellow >> i read that, too. so far -- cannabis-infused energy drinks -- >> makes no sense. >> i don't know first hand either, but -- i don't know, it does something to you. >> it gets you high. >> just like -- just drinking a beer and sorry we're naive here. thanks, aditi. >> what's the bet on the cannabis industry? can there be more big deals on the way? who better to answer those questions than our own cannabis king, tim seymour who joins us

more on the fast line. more deals to come, tim? >> hello, mellow mel this is another hallmark tweet in the cannabis industry in what's been an extraordinary month and it is doing the largest ipos in the biggest u.s. listing and the story here, you heard this earlier, constellation is an emerging trends player and the consumer products business. this is a cpg play and we talked about this on the show and we also talked about how valuations in the sector is extraordinary and the fact that constellation is willing to spend a 50% premium to already extraordinary valuations and they have got them more than 50% controlled of canopy and they think this is going to be earnings accretive in 2021. that tells you all you need to know about the opportunity, but other guys in the state and med relief, they've made a commitment to plummeting brands

and why it is -- and why constellation got involved with guys that they think are building a new brand out there in canopy. they're worried about being left behind while guys still are making a name for themselves in the space and it's one of the biggest alcohol and beverage companies are involved in this valuation, it tells you the big boys are all coming. >> why do you think pharma is not in right now >> well, i think the regulatory landscape especially for doing research is very difficult i think it is interesting that the day to day has allowed access to the lapse in canada for a handful of canadian medical producers. i think pharma is around the corner let's face it, the goodwill and the pun in10ed suffering under the weight of the open yoed epidemic and they will be here and they make this more

difficult at a time when i think the recreational market and the medical market in the u.s. is still -- you don't need to be federal to be getting the fda involved and we've been seeing progress, obviously and the pharma has made major inroads and we'll be there to follow >> thanks for the cannabis king and tim seymour on the fast line is this a bet that they'll legalize recreational marijuana. legal things need to happen in order for this to be a big deal. >> we heard it was i have very early inning and this was earlier than expected and taking this additional stake. i would say the setup here and we talked about the conference in l.a. several months ago the setup for the space was this was that m & a would come here aggressively and we'll see more come over the top and i agree with you, there is a big question about the big-cap pharma and the pharma names are coming in and the tobacco are

seeing erosion within the usage. across the board, just trends dropping off we're seeing it obviously in big pharma with certain franchisees that need full-time growth this is the opportunity and it's the long-term opportunity play for both alcohol, beverage and for big-cap pharma i think. >> macy's getting crushed on earnings and they're betting on a different retail stock and we'll tell you what that is and plus bitcoin staging an epic comeback and is the worst really over, or is the big move a head fake more fast money in two customizae options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

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welcome back to fast macy's beating street expect aegzs and increasing the guidance and the stock was down 16% after saying sales were flat and it was dragging down the rest of the roughal department stores like dillard's, kohl's, and jcpenney and a warning sign for the sector overall or is the move just an overreaction? >> a little overreaction i couldn't -- i was shocked it was down as much as it was buying the weak happens aggressively and macy's in tock and new cfo and it's conservative on the guide. and maybe it was questioned a little bit and i would absolutely buy the stock aggressively and there's not a signal that it was plaguing the industry. >> that conference call, you can see if you look at when they started taking questions and they talked about the gross margin in the third and fourth

quarter. that was what sent the stock it's not like it was a highflier and the multiple needed to come down and it's nine now the multiple is nine so i also agree that maybe there's sandbagging there, if i were they i would tend to be conservative and everything else ran up way too much going in. >> the world's largest retailer and that would be walmart reports earnings before the bell tomorrow let's go to mike ko in san francisco with more. >> so the options market is implying a move of over 4% for walmart and that's higher than the long-term average of 3% and not surprising given the fact that the last four quarters are bumpier. we did see the bullish flows, and one of the trades i noticed was a purchase of a thousand of the august 92 calls that expired this friday for $1.13 and those are bullish bets that walmart could go higher by the end of the week and of course, this is in alignment with what dan highlighted in options action

last friday. >> we were talking a lot about the technical setup especially when you had costco and target near very new highs and this is a bearish to bullish reversal at 90 you get through that and you get through the implied move. >> for more options action check it out friday at 5:30 p.m. eastern time what is behind today's rally can you trust it the crystal baller will break it down next. >> let's take a peek at the cramer cam there's jim interviewing senator elizabeth warren about her brand-new bill that gives employees in companies a stronger voice in corporate decision making and much more on that at the top of the hour. ivick around because we're le in sometimes square in new york city much more fast after this. why are you so good at this? had a coach in high school.

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welcome back we are continuing our special coverage of crypto in turmoil. wait a second. crypto is not in turmoil today everything is awesome again, sort of. bitcoin is rebounding after a painful sell-off yesterday and our very own crypto baller is over at the plasma with what is behind the move. >> it's been a bit of a wild ride and let's take a look at the mechanics and today we had cboe and futures expiration. a friend of mine has looked at a

lot of this futures expiration and this is what happens to bitcoin before and after expiration you see i have t-minus 6 and t-minus 3 and t-minus 1. here's expiration right there. on average in 2018, you've seen bitcoin down, almost 7 per% andn expiration comes and then the next six days you see an increase of about 6% and that happened basically on average each of the expiration so let's take a look at one particular one let me hit clear we'll go to the next one and let's look at what happened in april. so again, we have right after expiration, what happened to bitcoin? we started low and we happeneded up at the peak, almost a 20% increase in bitcoin six days after the expiration in april? why did i take april bk will give you an answer take a look at this and thfis ws

the number of sorts and that's now, we are at another high and you saw today and let me see if i can clear that last one and i don't know if you can see this, and you started to see the shorts come down, and we now have this short-term seasonality after futures expiration and you have the potential for a big short squeeze here in bit coin >> did this create a floor >> this gets correlated and bitcoin really has been the leader and the speculation about an etf and what you did see today is ethereum almost 10% off its lows yesterday and stocks like stellar still holding up, well and it should carry

everything else up >> back in february, that was a huge reversal and late june, and you had the bounce off of 6,000 and yesterday off of 6,000 does it seem like you have a bit of a capitulation. something that petered out to get this thing in the right direction. >> you've seen that in a lot of currencies and that has had quite a bit of a capitulation and you saw some panicking out there and perhaps in bit coin, you might see the capitulation and the one thing i would say is $5900, and the largest in the world that wants to do an ipo in q4 and that might act as a stabilizer for the bitcoin market where the other markets have flushed out quite a bit. pe thanks for that, te >> up next, we have the final trade. imagine traveling hassle-free with your golf clubs.

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liberty mutual insurance. ♪ liberty. liberty. liberty. liberty ♪ time for the final trade >> i'll book end it here the yield should be lower, you want to buy xlu. >> karen >> i feel like this sell-off is way overdone i like going into earnings next thursday >> david >> i'm going to agree. macy's is overdone here and it would be a buy on the week >> i'm going back to the tip of the spear. remember yesterday >> oh, yeah. >> i said this and i'll say it again. nvidia is a great number and the semis are going lower and if it's a bad number and it goes

lower. >> to the spear. i'm melissa lee. thanks for watching and see you tomorrow for more "fast money. don't go anywhere. "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. okay, you get these big-time heavyweight overseas events. you get the sell-offs, the one that breed a lot of fear >> sell, sell, sell! sell, sell, sell sell, sell, sell