coverage here on cnbc including the premier on wednesday, 10 :0 p.m. eastern time of the documentary "crisis on wall street "the week that shook the world. there will abe lot to talk about. >> i can't believe it's ten years. >> where does the time go? >> including this show. >> time flies when you're having fun. have a good weekend, everybody "fast money" starts right now. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's times square. i'm melissa lee. your traders on the desk are carter worth, tim seymour, and guy adami. >> it was the hit heard around wall street. elon musk smoking weed and drinking plus energy, one of the worst-performing sectors this week, but the chart master says it looks so bad it's good. he will tell us where he's seeing the biggest buying

opportunities, but first, you start with trade wars heating up and apple could be the next victim and the stock falling as the company warns the impact tariffs could have on a number of their products and let's go to josh lipton in san francisco for all of the details josh >> apple, like many companies, did formerly submit comments to the ustr spelling out what's the proposed duty on $200 million worth of products imported to china. apple saying the proposed tariff lifts covers a wide range of apple products including apple watch and homepod, and the mac mini and apple pencil and cables and charges. apple telling the ustr and it increased the cost of the u.s. operations and disadvantaged the company compared to foreign competitors and apple saying it is difficult to see how tariffs that hurt u.s. companies and u.s. consumers will advance the government's objective with respect to china's technology

policies apple, which had been higher during the day did turn lower on those headlines and bernstein's tony sacconaghi, after all of that greater china accounts for 20% of apple sales and that most iphones are assembled there, but sacconaghi has also told his clients that on net, he thinks worst-case scenario is to remain unlikely for tim cook's company and at the end of the day he says apple here in the u.s. directly employs a lot of americans and sells very popular products and the same goes for china where apple does support 3 million manufacturing workers. back to you. >> josh lipton in san francisco. what does it mean for apple and is the market discounting the impact of the trade wars guy? >> think it's absolutely discounting the impact of the trade war and i think you see it in the form of emerging market we talked about it last night. there's this thought that it won't be systemic and it won't make its way here and maybe it's true maybe it is different this time.

i don't think it is. what does it mean for apple? i have to be consistent and i thought it would go to 240 and 18 times forward earnings on next year's earnings a lot of people agree, and morgan stanley and the $250 price target however, there's nothing wrong with taking profits here you're planning from 10% to 12% of upside and if things don't get worse which i happen to think it will. it's more significant than that. this might be one of those inflexion points where it's okay, too. >> sacconaghi was interesting and he put it out in july and he basically said iphones and apple products could be taxed two times and they could be taxed by china and the united states. that's the quantitative impact and there's also a qualitative impact which can't be quantified and that is what if china does something with the supply chain and it makes it more difficult to get components on the ground. >> that's the near-term disruption and you will see that likely in cautious guidance for the back half of the year and it

will probably have a supply constraint and not exactly the demand with products and it's interesting. josh lipton and the products that the company mentioned those go to the other products other products are 6.5% of the total sales in the last quarter and not particularly impactful and i want to make one other point and josh also mentioned that the chinese employ 3 million through foxconn. sometimes making up to a million iphones a day. that's not something that the chinese with the economy slowing the way it is, they really want to disrupt that, too >> apple is not a made in america product. i mean, let's face it. it's made all around the world, and so this is something when tim cook starts to talk about it, i think tim cook has navigated the politics of this administration remarkably well and the fact that he has to operate in china where there's a lot of politics. good for him i hear what guy is saying about being tactical in the stock. i actually think that apple has

throughout multiple periods and periods where its had a nice run and i think apple is one of those stocks that you truly stand there and the valuation is arguid and think they will weather this, but why not apple after every industrial company in the world, every resource company in the world i mean, look at u.s. steel the fundamentals couldn't be better and the stock's gone from 46 to 29 and by the way, they're adding workers and adding capacity and pretty soon that will lead to the exact opposite of what they want. >> apple's fortunes, day to day, week to week, i don't think it has anything to do with apple and we know the sentiment has shifted and everything that has been steep up into the right whether it's a visa or apple or united health meaning growth that's been impervious with anything related to the globe or to the economy >> you don't think it's fundamental? >> day to day? absolutely not if you look at the way it's traded or other super cap names

isrg they're. >> i want to take profits here. >> look at having a facebook you could have made that argument a lot of ways before they hit a whole bunch of roadblocks >> but that happens only once you get news. >> that's specific to the company. it happened to red hat and twitter. >> what if there was a prolonged trade war that did affect that -- but right now the way apple trades if you look at its correlation with things lika visa it's trading like a -- no reason to panic now >> i don't see other than it's too steep in the first place and you might as well take profit. >> right right. the price on apple, to be fair, not bad. if you've got the headline and you said, hey, guess how the stock would react? i would have guessed a steeper decline. >> and what's going on >> final minutes of trading and going into the weekend, blah, blah >> why would the chinese in the environment that we find ourselves in here in the united states with all of the acrimony and the headline risk, why would

they be willing to make a deal forget about ahead of the midterm elections. why would they make a deal this year i don't think it behooves them to do so >> i think president trump's rhetoric will increase, but again, maybe i'm wrong, but i think the chinese are much better suited to play a long game >> this to me is only about made in china 2025 because as far as i'm concerned this is our administration and i agree with a lot of it. pushing back against this whole desire by china to not be leapfrogged or to leapfrog the u.s. as the global, dominant player than we are this century is about technology and that controls the world and they should not want to be number two why should they lay up on this the classic playbook in emerging markets and you keep around the multinationals and i'm not going to say you'll steal their technology and i'll just say you use, you use until you do not need that and you can make it at

home so we have to be careful here. >> maybe what the apple story underscores is perhaps they're not thinking about the actual impact of the tariffs and two different products we might not have known the impact of the restaurant on tariffs on apple tony sacconaghi was able to do it in july when we say here is the impact, the market listens. >> we, and you should have the good will of china because a chinese company employs hundreds of thousands of workers to employ over there. >> with apple thshgs is a very high-priced product, right we know autos have been at the center of this trade discussion here, but apple also has a massive margin on their product. there's no other smartphone maker that has a 38% gross margin so this is really what i think investors have to start thinking about here as this story goes forward. the one other point, though, this is a high end smartphone market and they get most of the high end sales in europe and north america and obviously

growth areas in emerging markets are really important like china, but to me right now they're somewhat insulated if you're telling me that this is an issue for samsung that sell at a much, much lower price point and profitability level, that would be a bigger issue so i actually think in the near-term, apple will be able to navigate this for the very reason that you said, tim cook's been able to play both sides of the fence. they were the single largest beneficiary of our tax cut last year and they've been careful with our administration and he's spent money over to china so i think he gets out of this okay. >> elon musk's wild night followed by quite the headline, and they were getting smacked after -- what do crypto and candidates have in common? maybe more than you think. we'll explain why cannabis could be following the crypto playbook much more "fast money" right after this this is a story about mail and packages.

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hey maya. what's up? hey! so listen, i was taking another look at your overall financial strategy. you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. i'm all ears. how did edward jones grow to a trillion dollars in assets under care? thanks. by thinking about your goals as much as you do.

welcome back to "fast money. we have breaking news on tesla let's get to jackie de angeles with the details >> tesla, the website posting an update for the company it's an e-mail to employees from

elon musk himself that discusses a couple of management changes that we wanted to bring to your attention. jerome guillen has been promoted to president of automotive and kevin casskirk has been promoted to people and places elon musk signing this, mail himself. certainly a lot of news coming out of tesla today and these promotions are part of the thread back to you. >> jackie deangeles and the statement follows a day of chaos for tesla ail starting when elon musk did this. >> is that a joint or is it a cigar >> no. it's marijuana inside of a tobacco -- >> okay. so it's part tobacco, part -- >> you ever had that >> i think i tried that once >> come oman you probably can't because of stockholders, right? >> it's legal, right totally legal. >> okay. how does that work do people get upset at you if

you do certain things? tobacco and marijuana in there that's all it is >> this is the eighth time i'm seeing this and every single time i'm always floored. >> smoking weed, drinking whiskey and talking about a simulation comedy podcast with joe rogan. down 25% since the funding secure tweet, does musk need to go can tesla turn it around or is this the end of the road for him? the statement, by the way, today, was an effort to make it seem like things are okay because we had the chief accounting officer resign and we had reportedly the head of hr not returning after an extended leave of absence so it looks like there were executives just fleeing the company and so musk comes out today with the statement saying all these people have been promoted and put into these roles. >> first of all, rogan, it's

kind of like, he's the classic dude at school you can't do that, and so -- i've got to do it. it's crazy. >> you can't do that because of shareholders you say that to elon musk and he'll do anything and that's disturbing about this. whether he's smoking pot, smoking a blunt or drinking whiskey that is not the issue. it's really not. the easy is that this gentleman seems to be looking for ways in which he can actually act out and meanwhile, i think when you get news about your chief accounting officer resigning, i don't believe this was on time i'll let other people decide that, but the bottom line is there is a lot of unpredictable behavior why so many executive resignations and departures at a time when you're trying to get operations moving forward? that, to me, is the bigger issue. >> drinking and smoking. it's disappointing the shareholders know what they signed up for and they signed up for genius and sometimes they

have peculiar behavior he also happens to be a person -- this happened to steve jobs at some point >> it's the responsibility, too. they're shareholders it's very trumpian it's mirroring what's going on in washington and it appears to be crescendoing a little bit >> you have musk and trump >> oh, my goodness this is a huge distraction away from really some huge manufacturing issues and their inability to retain management i mean, think about it their inability to hit targets and their inability to keep people onboard of the story. to me, this is a nasty way to distract from some pretty bad action from the company. to me the situation is getting worse and it's crescendoing and the question you have to ask yourself with 25% short interest is what happens when we hear he's taken a 90-day leave of absence. we've seen these sorts of things when steve jobs was sick in the last decade and that sort of thing and that was obviously a

very, very different situation what happens do shorts cover it if they were to bring someone externally to run this thing >> it has come down in the last couple of days as the company has plummeted and the interesting thing is short goes after a company and they see the short increase at that time. >> it's hard for a believer in the tesla story to remain a believer given all of the problems that elon musk has created for himself. >> a self-made profit. >> one of the arguments. i absolutely believe it. one of the arguments i made is there's no incremental seller of the stock because the major holders will hold this now you have to ask yourself, within the halls of fidelity and the institution, are they talking about what are we doing with our tesla they have to, after this they have to. there's a level of arrogance that's associated with what he did. it's fine if you're a private company, do whatever you want, when you're a public company, it's not the third time down

245. dan mentioned 222. that was the low and now you're really in sort of again, pretty much noman's land. >> and increases the questions from the board what has the board beendoing this entire time from august 7th, and even prior to that on and the board is cozy with elon musk and all of a sudden, here they are sitting ideally by and doing whatever they want. >> and deciding what's the lesser evil and kind of working with him at this point, obviously, they haven't done anything. >> we talked about this before, uber, the board was very cozy to the founder over a year and a half ago and they sat around and enabled certain behavior and it was too much it was gone. at the end of the day, you will see some sort of action because it has to happen and a lot of that there are debt holders, and look at that

>> $1.3 billion. >> for more on what the street is saying to elon musk, head to cnbc.com where susie welch calls the ceo's antics, quote, sad and dangerous. i'm melissa lee. you're watching cnbc, first in money worldwide. first, here's what's coming up on fast. >> yep, that's what cloud stocks have been doing, but if you missed the run, don't worry. we have the perfect trade to help your pofoo osrtlicle higher, too, when "fast money" returns. need a change of scenery?

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>> welcome back to "fast money," the sec warning about pot stocks, and back at the height of the craze bob pisani is at the nyse to break it down. hi, bob. >> hi, melissa the sec is warning investors about the hazards of investing in pot this time in a statement with remarkable similarities to its warnings on

crypto, the sec has told investors to be wary o investing in the marijuana business warning fraudsters may spread false and misleading information and may try to use media coverage of marijuana legalization to promote investment scams they urge investors to look out for unlicensed, unregistered sellers and guaranteed returns be wary of that. this is remarkably similar to investing in bit koirn and other cryptos. in a letter the sec released in january, cryptos offered substantially less investor protections than traditional securities markets and there was greater opportunity for fraud and manipulation a separate alert from 2017 warned ico investors to be wary of guaranteed high returns and unlicensed sellers and this is exactly the language they used to warn against pot scams. the two found similar because they go to the very reason the sec exists in 1933, congress passed a law that securities act to protect investors because existing state

laws back then were ineffective in protecting them against fraud. there really were people selling swamp land in florida back then. the following year, congress created the sec to do three thing, maintain fair and orderly and efficient markets, number one and facilitate capital formation and three, to put tech investors and given how many get-rich-quick schemes have pot and crypto investments and this is exactly what the sec should be doing back to you, melissa >> bob pisani at the nyse. is cannabis the new crypto we are getting our own cannabis king to give us the lowdown about what's the same about crypto and cannabis. >> boy, what is this if you remember, you were in business school this is a diagram and you have two circle ands where you overlap you have a bunch of stuff that's in common what's in common between crypto and cannabis well, you can make an argument that they're both commodities except this is really the

commodity and it's a plant we talk about commodity prices i don't think this is a commodity even though it may be cftc regulated is it criminal one of the things that the sec was talking about was that you could be investing in something that is a criminal offense and you could be attached to that and that's a big risk. people are talking about can we slide that over? the criminal elements of the crypto world and how essentially the interweb and all of these negative places and whether it's you're a criminal and looking to extort money and ultimately it's about manipulation i'm going to leave that there and i'm going to leave that as an overlap place and people are concerned especially the secan unregulated sec and the markets are thin and subject to manipulation yes. companies have changed their name and yes, companies that say they're doing one thing and not another and capital structures that don't make sense. regulation, both of these guys want more regulation be clear bottom line is regulation

actually means it gives you a path forward and both of these places belong there in the regulatory world and we hear investors on both sides saying we embrace it and speculation. same thing, bottom line and we saw enormous speculation and wasn't that what it was all about, and i would argue that the people that were trading crypto were trading it because it was so volatile and the speculation was never better how about over here? massive speculation and i would make an argument that this is a much more fundamental story so i'll leave that one over there yeah maybe i'm showing my bias. bottom line, volatility, you have it in both places and you can argue again these are less transparent asset classes, less liquid asset classes and it will remain prevalent especially with valuations where they are. >> so my question to tim would be today is -- listen, you can't look back and you can only look forward. given the choice between the two, what is more compelling, crypto, or cannabis after the

upside >> this is a consumer product story and the development of what i think is ultimately a social dynamic it will certainly affect the way people look at different industries including pharma, and that to me, i think i've said that on the show at these levels, crypto is interesting. people don't know what the valuations are of the companies are in the cannabis world and that's why you need to look at the strategic focus of the company and the management team and make the decision there. >> time for the final trade. guy, what do you say >> look at wynn resorts, w-y-n-n. the stock has sold off down to 125. big wynn gets you down there, mel. >> stick around, fox will trade in 08. >> timothy >> the discretionary from staples and like home depot. stay there >> just breaking off the all-time high. >> got any plans for the weekend? >> we have time to kill?

you guys are so, like, picky >> usually -- carter is over there, la, la, la, la, la. >> that does it for us here on "fast money. thanks so much for watching and see you back here monday at 5:00 meanwhile "options action" begins right after this break.di a scratch so small you coulda fixed it with a pen. maybe you should take that pen and use it to sign up with a different insurance company. for drivers with accident forgiveness liberty mutual won't raise their rates because of their first accident. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty ♪ - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers.

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hi there we're live at the nasdaq marketsite they're finally back together and getting ready for the big show while they're doing that, here's what's coming up >> social stocks are getting kicked to the curb, but if you own one of the beaten name, mike ko has a way to limit your losses he'll give us the trade. plus -- cloudy with a chance of profits. ♪ i'm singing in the rain >> cloud stocks are on a tear, and dan nathan says there's one name that could be next to break out, and he's got a way to buy it for less, and -