toward the end of the session, negative news on china, if we have good news from canada overnight, does that offset it perhaps. i think we'll have a friday before a three-day weekend, but i don't think the headlines have seen it in the last couple of months >> that does it for the closing bell tonight for mike, sarah and i, thank you very much for joining us "fast money" begins now. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's times square. i'm melissa lee. your traders are tim seymour and guy adami. the short seller with cronos calling it the dark side of the cannabis space and sending shares plunging 30%. so what exactly does he not like about the company? he's here to explain and apple is in a new high as the company releases invites gene munster will be here with a look at what to expect, but first, we start with the markets. major indices snapping a

four-day winning streak and the dow closing lower by 140 points as trade jitters crop back into the markets. let's get to eamon javers in d.c. with the latest >> eamon >> melissa, we are getting new headlines crossing from the bloomberg interview with president trump that just wrapped up within the last hour or so. bloomberg saying that the president said a number of interesting things thinking that he's withdrawing from the world trade organization if that organization doesn't, quote, shape up the president also saying he'd like to index capital gains taxes to inflation that's an idea that would require congressional approval the president saying it doesn't regret appointing jerome powell to the fed even though he has been critical of jerome powell's move to raise interest rates over the coming year the president still saying he doesn't regret that appointment and jeff sessions is safe in his job until at least the november election which isn't all that much running room for an attorney general to have from the president of the united

states so watch this space. also, the president saying that he's not going as far as to say that he wants google and facebook and some of these other social media giants to be broken up, but he is saying that many people believe there may be antitrust problems there and the president throwing that idea out there, as well >> elsewhere in washington, some high anticipation in terms of the u.s.-canada trade negotiation involving nafta. take a look at the representative this hour reporters camped outside for any developments and we are just a few hours away from tomorrow's deadline to finish up negotiating to get to a nafta 2.0 between mexico, canada and the united states and the top official here on behalf of canada has been updating reporters and here's what she said just a short time ago >> together with the prime minister and ambassador mcnaughton and dominic leblanc and our minister of government

relation, we had a very good call with the premiers to give them an update and to hear their views on the negotiations. >> so that gives you a sense of the process there. they're calling all of the provinces and territories that you would speculate that they might have something to brief them on in terms of specifics. no specifics have leaked out of this, melissa, though, at this point and we're just waiting for word from inside that building over on 17th street whether or not they've got a deal or no deal tomorrow's the deadline. >> more clarity on the deadline of tomorrow. how is that imposed? this congress needs a certain amount of days to approve any sort of a deal before the next administration of the new mexican positive takes hold? how do we come to friday >> it's sort of a soft deadline and the president said in the interview with bloomberg that either they'll get a deal with canada by tomorrow or they'll get a deal in the period of time, he said and not justifying exactly when the reason that everyone is focused on friday is because they want to have this signed,

sealed and delivered passed by the united states congress and vote up and down and have the opportunity to sign it before the new mexican administration comes in to power on december 1st. so you back out the time from december 1st and it's what people expect is the last possible day where they can do this and still have the current president of mexico sign this deal and not wait for the incoming mexican administration and that could change the whole complexion of the deal and negotiators want to get this done. >> just quickly on the comments about google, facebook as well as amazon. >> do you know the context of the questions? do you know what the question was? was he asked whether or not they should be broken up? >> i don't have a full transcript of that yet they're releasing headlines as we go along. the other thing is the president's been critical of google over the past 24 hours and yesterday he released the video bashing google saying that google didn't promote his state of the union address even when

it promoted barack obama's state of the union address in previous years and google came out with a statement saying, we did, in fact, promote it and there were a war of words over the past 24 hours and dramatic stuff in terms of the tech space with the layoffs. >> thanks, eamon javers at the white house. they've been good entry points in the market do you buy the dip today, guy? >> the answer to your question is yes the president tweeted out the financial markets, better than anticipated if you made a fortune in your 401(k)s, you should be happy. at the end of that tweet was more good news is coming i mention that because i think this china headline is the president putting it out there because he knows a deal with canada will get done, and i think that will give the market some levity tomorrow, i think, or just help the markets rise before the long weekend and i think in his mind it puts pressure on the chinese. so to answer your original question, yeah, i do think you buy the dip if you want to call it that and i do think there

will be a trade agreement with canada over the next 24 hours. >> the tariffs and china goods are still to come and it's surprising because i thought the markets seemed like the markets sort of assumed that they would be coming. the deadline for public comment is next week the assumption was that there would be no further talk and that the next round of tariffs would go into effect since the market made its bottom in february and as far as america is concerned there's incremental progress and say you have nafta 2.0 and when you think about how much we trade with china mexico and canada are too xed out. >> they're the ones growing at 6.9% a year hopefully. and we need to chug along and we see what's going on over there that is the worry that i would say and when you think back to what's going on here with some of our stock market, we know

that the s&p is 1% from all-time highs, but look at autos and look at u.s. steel and homebuilders and these are sectors that are down 20% from their 2018 highs so there's some stuff, weakness lurking under the hood >> if we do get some good news out of the negotiations with mexico and canada, i think the market is likely to extrapolate and assume that the bluster that we're getting in the short term with respect to china is likely going to be resolved at one point or another and the evidence of that is in the market action that was down today. we were down less than a half of a percent and sitting close to the s&p's all-time highs and the one thing i would say is the area where you did see weakness and the industrials and emerging markets is the area that would get the biggest exposure if you had a problem and it would make complete sense >>. >> not right now i looked at today and it was a total blip from the radar screen

when the headline hit taking the market down a little bit. >> they rolled quite a bit it took a lot out. so i would avoid that group over the near-term. i do think we'll get to some resolution at some point in time and i think the headline about china and anything said about china right now. the market is digesting it in a much more push it off way than they have in the past and i think that that's just going to be the way it is until something is actually resolved >> i just guess the worry is that we've seen expectations ride dramatically and we've seen what happened with q3 and it's the second consecutive and the city supply index making one-year lows and that means the expectations are high and it's getting ready to beat high expectations and you do have weakness and the semiconductors and industrials. so if china were to slow down and if they were to take this thing toward the end of the year then you could see considerable economic weakness here because again, we're not seeing wage

growth inflation adjusted and we're seeing potentially consumer costs going up with further tariffs with china and it doesn't seem like president trump wants to blink here. >> so you think the impacts of new tariffs which are going to come into effect apparently next week that that will impact the market, the chinese markets, the economies right away >> we will see it in the next -- >> let's be very clear that tax cut that we got in december, it doesn't affect consumers and consumer prices will be going up here then we have a problem. >> the biggest concern and you say to yourself, they're kind of in a bad position right now so i say the president understands that one of the biggest fundamental stances there right now is capital outflows. they want to mitigate capital outflows out of china and making so the currency stays relatively stable so devaluing it is not in the cards. i look at it and i say he knows that and he can push hard against them right now, meaning

i take the economy down and slow it down. let's bear in mind that the u.s. market, we're essentially trading at all-time highs and the chinese market is not. although that's a separate issue, but back in equities in china have pulled back as much as they have and evidence of who essentially is on the losing side of this battle as far as investors are concerned at this moment. >> and right now it is the chinese that are the losers as far as investors are concerned >> any deal, though, that comes to fruition by the end of the year, i would imagine would have a lift to the chinese stock market which market would go up more? >> chinese, i believe. >> so is that the better trade >> if we are to believe that all of this luster, canada and mexico which ultimately sounds like it will lead to an agreement by tomorrow or some time thereafter is the same as we're seeing with china than we are to believe that there will be a trade deal with china as well, and so therefore what will happen to the arket? >> i'm going to contradict

myself a little bit. david is correct it would appear that the chinese, from the outside looking in that's probably 100% true and from the inside looking out, they're not playing the six-month game president xi does not have to run from the election and he can run the country as long as he wants until he passes away president trump is until the election look at what's happening with the markets down 23% and we're winning, i don't think that's necessarily true i don't think there's any deal with china before the end of the year there's no way they'll do something before the mid-term elections, in my opinion >> my point earlier was, the president thinks that getting the deal done with canada will help his leverage getting something with china if there was a deal, for sure, that would be a big tailwind for the chinese market than the chinese basis. we're weakening the dollar and

strengthening the yuan, those two things -- >> account you see a 25% pop in the chinese market i think the answer to that is absolutely. >> what about the whole notion in q2 that we saw a lot of demand and we saw a lot of double order and we saw it in a lot of different places. some of the 4% gdp print that we saw might have been pulled from the second half. i guess my point is that i don't suspect that you're going to get a huge pop from u.s. equities at all-time highs here. >> if there is a deal. >> that's the thing that's likely to move a little bit. >> coming up, congratulation, you are invited to apple's annual iphone event in september. so what can we expect from the grand old affair he'll be here to explain plus two retailers and two very different moves after hours and lulu stores, and we'll bring you the latest from the quarters and instant reaction from wall street later, just say no and that's

what shortseller andrew less, the man who took down valiant says is getting smoked by nvidia he's calling the dark spot of vee nnis li from the nasdaq marketsite in times square. much more "fast money" right after this helping people get what they want, understanding we're not in this alone, and teaching my kids that no ambition's out of reach. ambitions live everywhere. synchrony helps make them happen with data, insights, financing and technologies. ♪ ♪ synchrony. what are you working forward to?

thanks, janet. it's welcomemy happy place. store. you can learn how to switch to xfinity mobile, 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," apple's next events is

set to take place on september 12th josh lipton is in san francisco. >> mel, the event will take place in apple's new campus in cupertino specifically at the new steve jobs theater as you see here the invite simply reads gather round. as we know apple will be tight-lipped, but reports both in the media and the street indicate that three new iphones could be on the way. a new high-end model with a 6.5-inch display just to put that in context. the iphone x has a 5.8-inch display. what's the advantage of such a big screen in i checked in with longtime apple watcher of creative strategies. he says it being lead to a much richer gaming and entertainment experiences. in other words, potentially more engagement with apple services and apple could charge $1,200 for such a device. also expected an upgrade to the iphone x which has sold strongly giving a lift to the revenue and stock price and what some are

calling a more budget-friendly iphone with a 6.1 inch screen. it might not just be iphones though others can come on september 12th, as well and he expects a new watch and an ipad refresh and update air pods. >> you saw the invitation. it says gather round do you feel that that is a hint as to what sorts of products they might launch or am i reading too much into it >> i don't think you're reading too much there it is the invitation and the analysis quickly begins of what exactly, perhaps tim cook and schiller and the rest of the gang have up their sleeve. we have to watch out on september 12th. >> may i ask a question? >> okay, fine. >> is that a new jacket because you look stunning, right >> look at him, man. >> oh, man i just want you to know, i mean, if i'm magnum, guy adami, you will always be my t.c., buddy. >> that's what i'm talking about. >> i just want you to know that. >> what love here.

>> all right, josh >> josh lipton in san francisco. >> for more on what we can expect from apple, gene munster. so, gene, what are you expecting? does the round mean anything to you? >> it does, and we'll quickly talk about that. i think it misses the bigger point, but the round may be a slightly different crown on apple watch and a slightly bigger screen and the same general form factor and the screen will go edge to edge on that and they'll probably redesign that and there may be something about air pods with round, but it'sprobably nothin groundbreaking, and i want to emphasize and i want to jump in what's being miss individual of this we talk about these different products and three phones and josh did a great job and the bigger phone and we talk about a 6.5 inch, versus 5.8 and that i think gets missed on why this can be a huge product, and i think that this will lay the groundwork for upside to iphone numbers for the next 12 months

and the reason why is that displays do matter this display is going to be 32% bigger display size versus the biggest iphone to date, 32 >> the last time we had this kind of a large display increase was in 2015, and fiscal 15 when iphone 6 came out and that was 34% bigger than the iphone 5s. what happened to iphone demand in fiscal 15 and it went from the iphone 5s and it jumped to 37%. people love big phones the headwind and the media pushback is this is really expensive phones $1200 and that's true, but keep in mind the street's looking for flat growth. i think you're going see 5 percentage type of growth in any upside to growth will be inspiring for the apple bulls. >> okay. so they go up. >> what do margins do in response do they stay the same?

do they go up? do they go down? >> typically, they stay the same they start to rebound. >> all right do we get to a point, gene, ever when a larger display doesn't necessarily mean more people want it? it sounded like the argument for this being a game changer and for this being a reason to upgrade is it simply because it's bigger? >> yes i think people are using their phones for more things and it's kind of ironic because if you looked at the ipod world we went smaller and smaller and smaller, but in the phone world because we're doing more and more things that typically weren't done on smartphones now it's almost mini computers, i think that there is room at some point you will hit pump up and ipad mini and that's too big, but i think there's definitely room especially for emerging markets and when we saw the iphone 6s, that was particularly appealing with people who had a single device i think that i'm notth

suggesting that we'll jump to 15% or 20% growth because of this, but what i am suggesting is the street is missing the point that this will be a big deal when consumers start to get their hands on this larger form factor >> gene, we'll leave it there. thanks so much for joining us. >> gene munster of joint ventures. >> you asked a good question >> they'll have the higher price point, but here's the thing. iphone units have not grown in years. so in the last quarter, the june quarter iphones grew 1% although sales total revenues were up 20% year over year and here's the one thing when gene says the investors are not getting and we're seeing elongated upgrade cycles meaning people are waiting longer to upgrade, but that being said the higher asps ten years into the cycle are showing you that they pulled a great, great trick by getting people to do a prime service where you're

paying 37 or $40 a month or that sort of thing. people are not focused so much on the $1,000 or $1200 price tag. >> i find it interesting when you consider that one of the reasons i think people move to the iphone x off of the 7 and 8 plusses because that's a really big device to carry around i'm speaking from my point of view, too big to put in my pocket i don't have an interest in a larger phone i'm perfectly fine with the size of the iphone x. the other reason is we're seeing the longer periods of time before people upgrade is because of the isps. there is a limit to affordability. >> and investment. >> exactly right you're going to see kids, for example, that will also -- they're the ones that usually are prompting their parents for the immediate upgrade. i think parents caniblely sit a and wait a little bit longer that is an area where we haven't really found that those smart watches are so appealing that we have to have one >> the features need to improve.

you don't need to have a round edge to edge display >> it's not an issue of how the thing looks like it's how it works and if they can improve that, i can see more people, myself included moving in that direction. >> and what it does. >> it can track your health better than that might be a reason to get one. >> 100%. >> also with the phone, but the asp going up, and we're entering markets with lower income sort of people where they have to have margin pressure and with competition coming in i can't imagine that the lower and real quickly, after everything is said, waren buffett, the greatest value investor, he bought more apple. >> it's hard to argue with him, right? >> apple was a hot topic on cnbc's big interview as guy mentioned with warren buffett earlier today. for more on what the oracle of omaha had to say go to cnbc.com. i'm melissa lee, you're watching "fast money," first in business

worldwide. in the meantime, here's what's coming up on fast. >> who wants to be a millionaire? >> pretty much everyone in america, but a top voice at fidelity says, unless americans make a big change to their 401(k)s they might have to phone a friend for retirement. she'll explain >> plus -- >> if someone offers you drugs instead of saying something you really don't mean just say -- >> no! ou a noted short seller says you shld just say no to surging pot stocks cronos. people make the case when "fast money" returns

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side of the cannabis space let's get to bob ps annie at the new york stock exchange for the details. hi, bob. >> pink floyd. i'm getting flashbacks marijuana stocks have been melting up this year, but pot names came under pressure today after noted shortseller citron research made a bearish call on cronos group this morning citron's andrew less set a price target, suggesting a drop of 70% from where cronos traded prior to the call citron argues that cronos, quote, appears to have been deceiving the investing public by purposely not disclosing the size of its distribution agreements with provinces unlike every other major cannabis player, closed quote citron goes on to say that sources tell them that in reality the agreements are too small to justify the premium investors are paying for the stock and they could be looking at a securities fraud case the stock fell another 10% midday they noted that copper field

research also made negative comments in the form of a string of tweets shortly after 1:00 p.m. eastern time and shares plummeted 30% and its first day in four years and the stock was briefly halted midday. other pot players like canopy growth, aurora and tilray. these warnings come as cannabis growers are waiting for canada to legalize the recreational use of marijuana this fall and money pours from beverage makers looking for potential partnerships in the pot space. keep playing that pink floyd, melissa, back to you >> all right, bob, thanks. bob pisani at the new york stock exchange well, intimate short seller andrew less joins us to tell us why he thinks cronos is in the dark side of the cannabis space. the stock is now 30% i have to ask you this rate off the bat? are you still short cronos right now or did you cover >> i'm definitely still short the stock.

no doubt >> okay. how does this play out you allege that there could be securities fraud here. >> first of all, melissa, why do i have to be -- can i just be famous one day moving beyond that, even if there's nothing wrong with the company. even if everything is fine with the company and then the stock's $3.50. if i want to give them the same multiple as all their peers who i don't think have the same issues that they have, the stock is $3.50 that's being generous to them and we're talking u.s. here. >> so why would i not be short the stock? it's a very competitive industry i think they're subpar players and i think they have a lot of issues with disclosure and production and the commercialization of their product. i think they've overpromised and i think they're way out of whack with the rest of the industry. $3.50 with no problem. i believe everything they say is $3.50. >> okay. so let's start with what you

think the company is being deceptive about. one issue was that they did not tell investors which provinces they had distribution agreements why is that so key isn't it more important the says of that agreement or how much they're distributing to the overall market and not necessarily whether or not they're doing it in quebecor some other province? >> no, exactly and that's what it was they disclosed they have it in the provinces, but they're not disclosing the size of the agreement. if you look at their competitors they are disclosing the size >> you want to know the size as opposed to we're doing business in quebec. fill in the blanks >> exactly >> everyone else gives more disclosure you should give the same amount of disclosure. >> what does the company say to you when they say i think you should disclose the size of the amount of business that you're doing in this announcement are they saying we're not going to give it to you? >> hold on i didn't call the company to ask

them they put out a press release let's put it this way. the stock is up 50% this month that's 400% this year. it's not like anything is crazy. it's never been where it was yesterday and it should never be where it is right now. the stock should trade $3.50 no reason for it to be up 50% in the past month >> in terms of what else the company should or should not be doing, andrew, you're saying in one of your assertions that the company has a product recall history, that it has several product recalls and an analyst who covers the company is that some of the product recalls can't be pinned to the current management team. they acquired another company and that company had a product recall before cronos acquired it, another product recall, for instance, was voluntary. why should that be a huge issue? >> how does this sound are you ready? the company was making a big

deal that they were starting to sell in germany. germany, i mean, the words that they used were so grandiose in the press release it was amazing. it turned out to be miniscule and it was a few thousand dollars and they discussed it in q1 and never discussed it in q2. sure enough, you start reading and you see they recalled for pesticides the cannabis plot now what makes it interesting to me is two days after the recall, i don't know if it was exactly two day, after disclosing an a.k. and here's a company that lines to make assertions they raised $100 million from the street they could have easily said we had a recall and we can fix this and it could be a long term and i think sometimes securities fraud could be a lack of disclosure as much as disclose it and they should have disclosed that before 100 million. >> that wasn't the material and

it was one kilogram of product equal to $100,000. it was not material at all to earnings as a matter of fact, germany were breaking out in q1. they didn't line it out in q-2 because the provinces were frustrated with the fact that the companies were selling products internationally where the margins are better and they decided not to break it out and you can't make the assessment that there's fraud >> the irony of that is that nothing is material to their financials >> you used to work fraud and they act on it you used to work fraud and it scares the heck out of investors that having invested in the stock prevents them from -- >> what i said -- okay what i did is in this i asked the question, could it be? and you know what? many people would say you should disclose that whether it be, if you have a pesticide, and i don't want to say it's like a chipotle one burrito got bad and two burritos got bad and no one

disclosed it if there was a recall of your product that should be disclosed. >> a voluntary recall like this doesn't matter it's not relevant and not material and this guy is a lawyer the ceo of this company is a corporate lawyer he understands the game and he understands this process he's not going to screw things up so i say to you the word fraud scares the heck out of investors. >> well, listen. what should scare investors and this company is if that was the whole story, david, we could go back and forth, okay but that is one part of a larger mosaic of a story. the stock is $3.50 at best with no problem, no recalls and we signed to germany and it was great and our plans in israel and australia and everything will work out as planned and the stock's $3.50, and that's the important thing. >> andrew, it's guy. if you didn't come out wearing johnny cash dressed in black, maybe we'd say you were a villain.

>> a big shout out to tim seymour who yesterday before i put it out he put it in the bucket of kicking this one out. >> so that was going to be my follow-on. this is an indictment of cronos specifically do you believe in the cannabis space, though, or do you think the entire space is sort of, my word, not yours, fugaze? >> good question the space is real. the hype is not. margins will get compressed and the cost per gram will go down significantly. look what happened in washington state and things will get overstated and the one thing i will not underestimate is i will not short and i would not buy canopy i think the constellation deal is very blue sky and what happens with the cannabis drinks and i do believe in that, but at the same time there will be significant margin compression and the farmers and the people who have the farm, you know, many of them will go out of business if you cannot keep your cost per gram down which is the biggest problem that cronos is having

right now because they're relying on these indoor facilities and moving toward greenhouse facilities and if you can't keep the cost per gram down then you'll go out of business. >> last question, andrew you're short and you remain short and when will you put that short on and will you take that short down to 350? >> oh, come on, melissa. you always ask that question and it's irrelevant when i'll put it on and take that off >> here's what's relevant to people watching. are you just as short the stock just now as you were in the beginning of the day >> i talk a small size of position off, yes. >> okay. >> i am still extremely short the stock. i believe the stock trades down to where it was just three weeks ago. $6 >> okay. >> and then right down to 3.50 yeah >> andrew, great to speak with you. thank you. >> well known short seller andrew left. we should note that we did reach out to cronos and invited the ceo on the show to respond to andrew

instead, a company representative provided us with this statement we do not comment on short seller reports, so there is not a statement we can have you read on air we can, however, assure the public that a securities offering has been rendered by bank and they've done their due diligence according to canadian securities law are you for investing cronos >> i agree with -- because you sound like you're defending it >> when you use the word fraud that's a big boy word. i'm not saying it's potentially overvalued versus the peers. there's no question it was overvalued and tim made a great call yesterday however using the word fraud is a very scary thing and what will happen over the next several days is you will see headlines hit the tape about class action lawsuits and if you've owned the stock during this period of time given the fact that there's been a fraudulent accusation against

the company, blah, blah, blah. i look at it and say that will keep pressure on the stock, undue pressure i don't think it's fraud here. >> is it overvalued? >> it's probably a stretch overvalued and do i think it should be a stock? >> i don't >> retail movers is lulu and ulta, and we'll see what's driving those stocks and getting a reaction from wall street when "fast money" comes right back.

time now for an earnings whip and we have two retail movers lulu lemon, after reporting earnings courtney reagan fans, it is your luckity in she is all over lulu and ulta. >> hi there, melissa analysts are sending in their quick takes. instinet says to state the obvious lulu continues to post stellar comps in increasingly impressive margins this is retail at its prime. susan anderson at b. riley fdr tells me the consumer is clearly spending with resonating with lulu's product, clearly taking share from traditional athletic players like under armour. lululemon's margin are the most impressive piece here and the flow of new product just keeps getting better >> let's talk about ulta oppenheimer says the stock is down because he didn't increase guidance and he says waiting momentum for large kcosmetics brands and edgewater's

researchers is concerned that ulta's transaction growth continues to moderate the 3.1% and that's the lowest number that he can remember he also says the consumer is getting conditioned to more promotion and he's seeing bigger sales in periods of off promotion at ulta. a lack of innovation in cosmetics and kylie jenner just tweeting she's so excited to let you know, kylie cosmetics will be coming to all ulta beauty stores around the country this holiday. currently it's only sold online and we know how much money she's made on that so far. >> it will put a smile on guy adami's face thank you. >> mike, i'm guessing you'll want to trade lulu here. >> obviously, we talked about it last week. we like the stock going into it. this is a situation where they make the best of breed product that remains popular and outside of the athletic apparel they also have casual apparel also which people are going into and makes more of the brand, as well i think it's a good story and

i'll stick with it >> margins courtney mentioned 18% operating margins and the street was looking for 14 which is pretty ridiculous given the trajectory of the stock quickly, you look at inventories and up 24% year over year and the margin will get whacked no, because they have 24% sales growth you have to be comfortable with the valuation at these levels and i don't know, this is nose bleed level to me. >> speaking of retail. amazon hitting another record high today crossing 2,000 for the first time ever and the stock has surged more than 71% this year alone. now just a stone owe throw away from being the second company ever to hit a trillion dollar market cap options traders betting it could reach the milestone as soon as next week. dan's at the plasma. >> we're doing this two days in a row and we got that above 2,000 and now traders are looking to one trillion under market cap here so today call volume was really hot. again, two times that of average daily volume and i just want to kind of focus on the next week,

the september 7th weekly 2050 call that would be $1 trillion in market cap and we saw some buying there $9 seems like a lot and now the $2,000 stock and that's less than a half a percent of the stock price. the options market is only implying about a 25% chance, but those calls will be in the money on next friday's expiration. and the probabilities are going to decline as we go day by day we have a long weekend here. so looking way out of the money on something like this is not particularly a great thing to do on a short-term basis, but it seems like the traders are sooner than later and i'm not sure buying those out of the money calls and a week ahead is the way to play it >> that's tomorrow at 5:30 p.m. eastern time and the guys will have a number of hot calls of late so you'll want to tune in. coming up, how would you like to retire a millionaire

a top voice at fidelity says millions of americans will make the same crucial mistake when it comes to the 401(k)s and she'll be here to explain what that is and when you hear it you'll understand why we're covering it here on fast we'll be right back. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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bob pisani is pulling double duty and he's got the details. hi, bob. >> hello, melissa. the good news is the value of retirement funds has risen as the market has risen good news. the bad news is the results are still pretty dismal. fidelity recently reported that the average 401(k) was worth 104,000 up 6% from a year ago. that's a good number the average ira balance includes $106,900 and almost a 7% increase from 2017, but we're still not saving nearly enough for retirement at vanguard, for example, the average 401(k) account value for an investor is 65 years and older was $209,984 this sounds like a good number and it is a good number, but there is a problem and that number is pulled higher by a smaller number of super savers and high-income earners, the median balance where half have more and half have less and that's what you want to look at. among those 65 and older, the $64, 811

average that over 64 years and that's not a lot of money to pull out on a yearly basis, 3,000, $4,000 a year, perhaps? why are the savings so low a lot of participants don't contribute the full amount that they are allowed to contribute this is even worse many don't participate at all. only 72 pes offel ij employees are enrolled in their employer's savings program according to vanguard, given that most employees -- employers try to match your contribution. that's passing up free money by the way, if you're wondering how many of these super savers are out there. fidelity says roughly 157,000 people have saved at least $1 million in their 401(k)s back to you, melissa >> bob pisani. how can you become a 401(k) millionaire? who better to ask than jeannie thompson, senior vice president of fidelity. she comes with tricks and tricks with how you can become a millionaire, too

jeannie, your first trip and maybe it's surprising to some, but people just don't own enough stocks and bob was alluding to that because of the life span of and people are living into their 80s. >> and their 90s if you start working at age 25, you've got 40 years working, and potentially another 30 in retirement if you invest too consentively in the beginning, you'll never make it. >> i'm curious, and i know it's all individual say you turn 50. what could your allocation be, reasonably >> around 50 the typical target date fund still has 85% in equities and you still have 15 to 17 years before you have to retire and potentially another 30 years in retirement and so we really do recommend that you stay, you know, 90, 80%, 90% equities all of the way into your 50s >> wow you have to know what your end goal is. invest with purpose. >> that's right. we do say that, because it is

leak running a marathon more than a sprint. if you invest too conservatively you won't get there. when we look at 401(k) investors, 60% of the growth has come from the markets. 40% from savings people think about 401(k)s as a savings vehicle, but it's also an investing vehicle to get you there. >> and you also say you have to look at your allocations once a year so what are you looking at are you looking at asset classes within your equity allocation. you look at your doctor once a year, look at your retirement once a year. you should be looking at it at least quarterly. >> really? >> yeah. especially with the market going so high. people have equity drifts and maybe they want 75% equity and with the market so high. >> it's gone out of whack. >> factually we encourage them to rebalance >> it's funny because you think

about 401(k)s and retirement plans and you think this is money that you want to sock away and you don't want to look at it too often because if the stock market goes down you could freak out and do something bad there is a flipside to this, too, isn't there >> there is. we saw that in '08 and '09 i'm old enough to remember that very well, and i would say that what's interesting within the 401(k) plan we saw less than 1% of investors having that knee-jerk reaction and moving to catch. most stayed the course and it's back news because back in '08 when we look at people who stay in for ten years, the balance was 73,000 back in '08 and it is approaching 300. >> it reinforces that you've got to stay the course and not react too quickly. >> right but look at the course often. >> you have to know where you're going. >> jeannie thompson of fidelity. >> shows like this make their job extraordinarily difficult by

definition we talk about trading every day and that's not something you want to do within the confines of your 401(k) although you should watch it so religiously, you shouldn't put forth what you talk about in your retirement account. that's how i'll end that >> that was -- >> the more you know >> all right still ahead. electronic arts posting its worst day in its decade after delaying one of its key games and we'll tell you what that means for the company. much more fast after this. k. i'm so sorry we can't make your barbecue. i'm just sick about it. aflac!? different kind of sick. if i can't work after surgery, how am i gonna pay my rent? all these bills? aflac! oh, aflac! and they pay you cash in just one day. see how aflac helps cover everyday expenses at aflac.com.

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time for a buzz kill, and posting his worst day in a decade after they announce a delay in the latest release battlefield five lowered his guidance for next year and the stock trading at its lowest levels since january and is ea turning into a no touch, dan >> think for the meantime, it really is right now. it's had a massive reakdown an two fundamental breakdowns and you can see the thing consolidate a little bit here. i've been wrong with this one of late and i don't think you stepped in this one. >> no touch. a chance to trade back to dan's point. a lot of technical difficulties and it had a chance to trade down to the october low and it was based on $100. you have to wait and see if it plays out that way >> the final trade, that's next.

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it's time for the final trade. >> a light hand on lulu, i would not have an opportunity to buy if you had an opportunity to buy it >> a crowded, crowded name they reported earnings in line and it was down big today. i'm a buyer on weakness. >> mike? >> i don't think you sell lulu it's got high growth 20% top line, way better than that on the eps side i still look it. >> how do you like that, guy who would you vote for >> i can't choose, but i'll choose tomorrow. when i was a kid there was a thing called one of these things is not like the other. see what's going on right here

look how handsome. he's big timing us >> you know what is big time, as well it's up there on the screen there, mel, paypal going higher. >> i'm melissaee l thanks so much for watching and test 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. 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 isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or, of course, tweet me @jimcramer. anybody who has a ch