obviously this is integrated the other word from millennials were digital gnat he was they are comfortable with digital only. >> i'll just note nielsen's definition of digital news does not include social media. >> that's how you get to do it. >> exactly. >> and millennials tastes can change that does it for the "closing bell." morgan thanks for joining us fast money begins now. >> fast money starts right now live from the nasdaq market overlook new york's sometime square traders on the desk steve grass ooh appear guy adammy tonight on fast, nike soaring back from lows it hit after launching a colin kaepernick ad as one analyst calls it a stroke of genius but was it plus hurricane florence is a monster, a category 4 storm approaching the east coast energy prices are surging a top technician says this is the beginning. but first we start with the final countdown.

that's right, we are about 20 hours away from apple's event where it could unveil the biggest iphone ever plus upgrades to other products including the apple watch. the stock soared today ahead of theent ubs hike being the price target on the stock. but sometimes we see a bit of a sell the news panic. ultimately the stock rebounds. with the name the all time highs do you keep buying apple guys. >> if you are in for 6.5, 7, 8% that's the up side we talked about 240 or so being the top end of the range in terms of valuation in terms of what makes sense in the marketplace. if that's the end goal i is a i that's fine. but i think there is chance of maybe we rally a couple more dollars and then it fades. unless you look for that 7% to the up side i think you take profits here ahead of the event and look cheaper whoa i say cheaper you could see the stock down to 185, 190 not unlike with amazon a week 1/2 ago we had a similar conversation saying it was ahead

of the ski was it ridiculous down to see it 1850. got down to 19002349 bounce. you could see the same thing. >> i don't think that apple is considered momo. it could have momo characteristics it's not that kind of stock. it's treated like a value stock. >> um-hum. >> i do think with the price torgts 250 now it's a magnet to that number. >> i don't think you have to get crazy with it. but more on the guys camp where you want it on the dip you look at who buys warren buffett. why? >> he likes to buy things that don't change the last thing you do is ged rid of the cell phone. the last thing you can do no matter what the economy is going to do you get out of the ecosystem. it's kind of like wrigley as chewing gum. you're not stop buying apple or wrigley's chewing gum. the real issue is they haven't been growing units the last few years. we're talking about a high owned cell phone market.

there is nothing they we don't know they are nos spriting us. >> won be priet pricing be a surprise. >> that's what have been growing the selling price. >> it's not going much who higher the entry level memory is going up pricing comes down a little bit. but that's where they get the margin as far as i'm concern the big issue that investors have right now as valuation is hitting you know multi, multiyear levels, decade-high levels on the pe basis are gross margining staying above 38%? and at some point this is a commodity advertised product if you don't see services in some other products pick up the slack then you have an issue where no matter what the installed base is and what they think is two, three years old you're not seeing these zbloots but the i think it has picked up slack. and i think the asp's are the important part i don't think you are seeing a hell of a lot that's new if they could hold on the average selling prices they are making up for the decrease or

slow. >> that's where pricing comes in goemds came out yesterday saying if they launch the lower end new phone as $699 that's not great for margins. then you wonder is there any can't balancization are youing a someone upgrading choose the 699 lower model versus another model which would depress selling prices >> the pattern so far has been release multipled models at a given time remember they did the iphone x or 10 or whatever they called it you had the iphone 8 that da did can't balancize sales. as after o an refer the name of the game is fs ises are picking up i agree with dan that at some point that doesn't matter process but that's the carrot for investors. >> where does the company grow units in smfrps. it's emerging markets. this is the where they position the lower end phones in a lot of emerging markets they are embedded in services they are using in china we chat in indonesia and other places

they use other messaging apps. they are not. >> they were using other messaging apps here other services apps here >> no. >> it's having a major impact. i use them for more services now. i never did before but i think that's the key is here as well as international they can leave a mark too. >> i also think part of the move was china ratcheting back some of the rhetoric seems seemed to softer tone. that led to market rally and that helped apple. i'm still of the belief i don't think any is done with china before the mid-terms i don't think anything is done the rest rest of the year given the united states. you get the ebs and flow he is of china tariff you are on the positive erb now fls no reason not to believe we couldn't see it negative next week. >> what if china retaliates using qualitative measuring. what it's a scenario like in 2014 they didn't give apple the permit to sell the iphone 6 on mainland china completely different

circumstances. but this underscores the point that china can decide to not grant a permit for sales of iphone on mainland china. >> this is broader what was the news today that they are threatening people in washington sanctioning some chinese officials over you know some issues with ethnic muslims. these are big issues they are nationalistic issues. what you are getting at is if they want to ploet their own we know she made huge nefrts hardware in china. they could retaliate we're talking about manufacturing. fox conis one of the largest employers in china they have a million workers making the iphones there >> but china. >> on the point of the broader if we are focusing on apple and all of a sudden apple doesn't get the permits in this environment today very different than 2014, you would have a very different market reaction. in fact you have a broad market reaction because that would be

extrapolated to say the trade war is getting worse, in my view you are talking about buying apple you are getting hit on everything else as well. >> i don't think it's getting worse. many people didn't believe the u.s. has leverage over chr i do believe the u.s. has leverage over china. i do believe that just from the mere surplus that we have over them, what we bring into this country versus what they bring into theirs, i think we still have leverage over them. >> i thaerd that on the network a lot. one thing that's really important, you think about here we are with peak earnings growth as a percentage. where are most u.s. multinationals getting growth? emerging markets when you price in equity valuations you have to price in growth and if you shut off the value of to china that's a huge, huge. >> what do you shut off. >> that's what i'm saying. all the news i think is already priced in the market as far as a negative head wind i think that things -- guy might be right nothing might get done. but as long as the rhetoric is slightly better than we heard the last month or two that's enough to keep the market up.

>> i like to think -- i don't think we have the leverage we'd like to believe we have in my opinion. >> the leverage in terms of tit-for-tat dollar for dollar tariff >> we don't have the same leverage. >> i agree i don't think they want to go down that road. >> but if the game is ten years not ten days then they have all the leverage in the world. that's just my opinion i'm not convinced that's right yeah, if you just look at in terms of stock market the market is down 25% outers is flat president trump says we win. and in those metrics we are. but i don't think he cares about that. >> does china strikes you. >> they are in the long game. >> yeah. >> they don't strike me as a country willing to wait ten years to win. >> really? >> no, no i don't think so. >> is this the same china that i've seen that has. >> you mean the one with slowing growth, the one with our growth ramping up and theirs coming in. >> irlt literally in the world there is not a chance. >> you are the with be right because otherwise.

>> ten years i might oyou something. >> exactly. >> what would the dollar be worth in ten years the next guest has dumped tech to buy value let's welcome him a an investment strategist welcome to the desk. >> thanks for having me. >> how do you feel about technology where we are narrow leadership what are the valuations like. >> the valuations? tech are getting stretched look at the 15-year average valuation for tech they're about 1.25 times that. there is other cycle sectors out there like energy materials and. that have assembles activity to growth and profits in the united states that are trading at lower valuations so the reason why you want cycles in environment is that when profits expand you get the exposure and tied to the profits growth but of all the cycle secretary erps discretionary tech are the two most expense disbelieve i'm glad you mentioned those two in particular because these are the two secretary erps that could feel the most pain if we have another round of tariffs combosed on the consumer roo ride o side pops price also

probably go up because it's a sbraud swath of products gnat tariffs would hit. these are will also the sectors have haven't taken a discount for tariffs. does that factor in. >> i mean would you anticipate a hit to the sectors could be dealer than a hit we have seen. >> i will tell you a cup of things number one the tad trade where o war with china is not going away soon it's not slowing growth. but the practical complications it's causing higher input prices you don't have ceos talking with trade wars but a lot of them are talking about input prices the two are run o one in the same issue i think for discretionary in tech that could be a problem but cross the board we have to expect higher and higher input prices whether through tariffs or higher oil and gas, or tight labor markets, et cetera the good news for equities the beginning portions of inflation are good for stocks. especially the cycles because of the ability to grow businesses rb nef knews or sales et cetera. as inflation takes more hold it becomes problematic.

but for right now i think the inflationary story especially from sort of the trade war itself is not bad news for equities the things i worried about is the fixed income slide of the portfolio. because it's got maechs inflows they have not embraced equity he is it's full on fixed income that's more problematic. >> obviously on the desk here some of us believe we can hold out a bit here and china can hold out a bit here but when you think about manufacturing, supply chains it's not easy to change, 30, 40 years of this when you see the president tweeting at apple saying build iphones here that would take decades to do in the capacity we are talking about now. is that a fundamental problem about that we are not going to be able to fix that? >> you nail an important issue this is a game of chess. this is not simply just like here is tariffs on $200 billion and then he they put on tariffs against 100 pl you sit back and

add them up saying we're $17 trillion economy what people miss in trying to add up the damage is that this is a global interconnected a supply chain with knock-on effects. from that perspective we need to consider this a game of chess. it's having tremendous knock-on implications that are difficult to forecast and adapt to all in all you have to be prepared for disruptions to that supply chain it will drive cap x and drive it on shore because companies want to try to protect their infrastructure, their supply chains, et cetera. there could be a bullish story or silver lining to companies from that perspective. but it's if harder and harder forecompanies to plan. >> i want to go back to the fixed income part of the people's portfolio because we hear about the input cost pressure. but the fixed income side. the inflation bonds aren't showing inflation future whatever what happens to the portfolio or

the equity side of your call if we don't get that inflation. >> well here is the thing june of 10u6r i think was like the end of the 34-year bond bull market that's when the 10-year treasury it 3.15% today it's at 3% over that tame investors -- they pulled about $137 billion out of u.s. equity mutual phoned and put is into fixed income over that time period the s&p 50 oh up 45%. the bloomberg bond index is up 10 basis points. investors are gone tul on in fixed income at a point we are if the bear mechanic or bonds. they think perhaps there is no inflation or perhaps stuck with the lower for longer mentality or perhaps it's the recency buys they take the great financial crisis and saying it's happening again. either way they have dw full on in traditional iks inned income and if you look at the flows

they are intermediate durpgs that's a problem when inflation rises because we have to think about what's investment world going to look like when the 10-year treasure it's 3.25 or 3.5% process appear investors are taking losses in fixed income they haven't taken is since prior to 1982. joe we have to leave it there. thanks for stopping by we appreciate it. all right steve what did you do today? >> so i was looking at alibaba because itching itching i think the trade headlines are going -- i don't want to say dissipate. they're not to point you don't see them but i do think they are going to be more encouraging. alibaba on the radar screen. mccaul casino on the radar screen still hitting head winds. >> beakers. >> last night my final call was the russell i played today on the tech side of the portfolio i didn't make changes even though we had some big downdrafts i didn't make changes. if i look at the tech and kmips in it particular they seem to look like a cash machine at this point in time and i think which

seem to be at a trend lynn here i want to buy these. >> ben. >> cap was one i identified earlier in the summer that should bear the pursuant of the the headlines it won't to 130. back at 140. i had a bear irk ish position. there is bad news in this and it may take loerng to digest it and at some point headlines won't be as important as on single stocks. >> beginning of the month we talked about amazon can it continue process but first probably trade to 18.5019 and change reversed today in terms of risk reward today's low gives you something to trade against for amazesen. >> coming up nick ee abundance bounces back and the colin kaepernick ad. one analyst calls it a stroke of genius but a trader disagrees. check out the stock hovering near six-year low failing to rally. what is wrong with ford? we have a peshl report energy prices surge as hurricane florence barrels toward the east

coast and top technician says this could be the beginning of the rally. live from times square in in new york city. much more fast money right after this who would have thought, who would have guessed? an energy company helping cars emit less. making cars lighter, it's a good place to start, advanced oils for those hard-working parts. fuels that go further so drivers pump less. improving efficiency is what we do best. energy lives here. kayak compares hundreds of travel and airline sites so you can be confident

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investor jeff gundlach let's get to sem 'mody. >> he says he wouldn't put new money into the market into the s&p 500 which he says is driven by a few stocks. in fact, he says he would not invest in ecommerce stocks given strong gains we have already seen however, he says investors that are going to be in global equities should be over weight international and emerging markets. interesting given the amount of distress we have seen in the emerging world on currencies gundlach says the next big move in the dollar will be down. he says the u.s. dollar he says expectsed to be lower by by year end. we will look lieu the comments but those are the biggest headlines from jeffery gundlach. >> seema modi ins newsroom what do you make of jeffery gundlach's advice when it comes to emerging markets international. >> to me it's back to the dollar, right? we have had this emerging markets currency crisis.

that hits the equities if you think the dollar is lower. my view is the dollar is the new vicks. that should be good for all equities if you want the torque as my friend stephen says you want to be in the international equities. >> i red in the "wall street journal" this morning today is the 54th day in the row we have not had a 1% move in the s&p 500 up or down on a closing basis. the last time that happened was into the highs in january. to me it seems we are complacent here we are back at highs did make new highs we haven't shone torque to the upside. >> feels weird when we have trade positive headlines the way the market ripped. it gave you almost a lablts of foreshadowing what happens if we see some of in gain traction. >> with in the era of rip. because rip used ob to be a. >> spitting distance of the all-time highs rip is probably adequate points.

>> is there a difference between rip and torque. >> it fends. there is degrees. >> just wondering. >> narrow leadership in the s&p 500 as gundlach does that bother you. >> it can be concerning. but we talked about this -- i mean all markets have had narrow leadership over the years. i mean, you have seen this -- it's not like you vnts seen it before one of the points i make, a baseball analogy red sox are going to win 115 games they have 25 guyens on the roster doesn't mean all 25 are playing out ever their mind probably carried by five or six people. the same way the market is the doesn't away from them being the best boo team in the baseball and can't continue to win. narrow leadership is not a reason to sell everything. there are other reasons, that's not one. >> it's been a week since the nic ocolin kaepernick ad sent the shares lower but the stock retraced losses closing above where it was before the sell off. and it saw sonl sales spike more than 30% after the movement.

they upgraded to a buy raised the price target to $95 calling it the ad a stroke of genius they cite o cited the innovation the company spent on new products this has been a hot button issue since the release over labor day week spectacularing outrage as the consumers threatened to boycott including steve grasso. >> i'm not buying nike products. this is the superlong game my kids are not expose ds to it therefore they are not going to know that as a brand we knew as a brand. personally i'm probably going to go elsewhere because i don't agree with it. i'll go elsewhere. >> stock is it up 5% since then. grasso. >> we were unanimous across the board that's what i said it doesn't affect the stock there is a lot of people outside this country don't care whether we take a knee or not. that's not the reason why i

didn't agree with it. >> i didn't agree with it because i didn't agree with the ven enewe. i didn't agree with nike doing this it seems contrived to me i didn't want to play a part to it for me stockwise it can rip. under armour up year to date more than nike but i'm not buying for me. >> it's interesting steve in a few years the kids not allowed to nikes they are going tok woke and buy whatever the he can heck they want. this is the move nike makes whoa you think it they are saying there is oolts of people aging and who are like having less and less zploesable income and agree with you. >> they did the demographics they get it. >> like this is a message that they dsh. >> we saw that though. >> no, but what i'm saying. >> they don't care about anyone over 35. >> you know prochser galway. >> he is on the network a lot. >> he basically said this. it was interesting the most infamous famous athlete

of the last 10 oh years and he was the most controversial athlete. >> kaepernick is mohamed ali round. >> or. >> this is what everybody would have loved a piece of this guy. >> that's interesting because at the time mohamed ali, he didn't gain supporters in the moment of time we look back on it and say, that was a courageous stand. >> there is no way in that campaign -- there is no way that analogy stands kaepernick is no mohamed ali. >> how back to the stock just because the stock recouped the losses does that mean the coast is clear are we convinced there is no impact on sales. >> i think it's a positive i said it that day they didn't do this in over six days probably did it over six to nine mohns every focus group imaginable i think nike knows the customers better than any merchant on the planet and they are playing the long game they are not trying to sell to

me whether i agree or disagree they are trying to sell a new audience of people and in that regard they are successful. >> the proof is in the pudding the online sales are up. we will ultimately see the stock market has made its choice and said this was a good move. >> nobody is going to remember this move in three months from now. no one is going to remember. >> what? >> this isway why i said international company for me it has no play in the stock this was my personal choice. no play in the stock said it then say it no. >> i think it's fantastic for the stock. one thing you said the online sales are up what is important is nike does more direct sales to customers controlling the message they want to. they don't have to worry about foot locker or amundsonen thinks to me they are thinking about this like you said guy over years and years. i think they are focused on your kids whether you like it or not they're going after your kids and going to get them. >> 35 or under and that's what did it and if nick ee cliental was over 35 they wouldn't have done this.

that's why it's contrived. it's all about messaging that's it. there is no -- they don't care about him you oar or me. >> by the way that study up 30% in online sales, direct consumer sales over the labor day weekend over the entire weekend. we didn't know about the kaepernick added in my later in the weekend. >> it's a serena ad. >> sure we didn't know about the add campaign at all until monday. >> yeah we don't really -- won't know the full effect yet those numbers also were not from nike a third party agency. to be clear on that. my communication right now. >> except getting advertising because we are talking about it. >> definitely-free advertising one of the biggest gaming stocks is diving in head first going after fortnite and investors love the competition we will explain. i'm melissa lee. you are watching "fast money" first in business worldwide in the meantime here is what's coming up on fast.

plus energy prices is surging as a hurricane barrels towards the carolinas. and a top technician says it's just the start of the rally. just the start of the rally. he will give you oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. "fast money" returns all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital.

welcome back to "fast money. hurricane florence is barreling toward the southeast coast of the united states and causing an impact on energy price opinion let's get to jackie in deangelis out in carolina beach with the details. >> look at this gas station today, this morning they had a full amount of gas they are sold out now. this is more typical of what you are going to see in wilmington, north carolina, as people evacuate the state right now across the street there is gas but the lines have gotten much longer people are making the final preparations to get out of town. this is northern two days in advance of the storm that's because the governors of north and south carolina have declared a state of emergency and in the coastal areas there

are emergency evacuations in effect or going into effect. the impact on the energy industry it's not about refineryis it's the pipelines they bring the gas up to the east coast if we get torrential downpours and the flooding expected from the storm surges with florence vukd potential delays in moving that gasoline around that could raise prices i want to give you the latest because the storm is growing in size this is according to the national hurricane service they say the storm is stretching over 340 files across. it's so wide that there is a life threatening storm surge being pushed 300 miles ahead of the eye. some models predict 45 or more inches of rain in parts of north carolina and speaking of that eye, noaa tweeting out a photographer. i want to you to look at that. it's a scarey image. the folks on the ground are intimidated by the storm tp. it could be the worse they have seen in 60 years

president trump, very concerned about what's happening on the ground here as well. and he made some comments not long ago >> they haven't seen anything like what's coming at us in 25, 30 years maybe ever it's tremendously big and tremendously wet >> so this is being called a monster storm. and certainly every authority here, local and at the state level saying it's better to be safe than sorry and better to get out of the area before this storm makes landfall on friday morning, melissa. >> jackie, thank you >> our next guest says this is the beginning of the energy rally and three stocks worth buying round let's go to chris veron. >> and i think there is a trade within the energy sector let's keep in mine the back drop is crude oil if you look at brent it back at the highs

crude is 70 to 80 several weeks. we look at the tren the last two years what stands out is you equitily have the higher lows taking shape 72-73 good support near 20 oh. we think that holds you start to rally. what stocks can we own if that's the back drop? let's start with a bombed out name it's been bad, 60 all the way down to 35 it's hal burton but equitily over the last several days you reversed of oh the very important $35 level and held the levels. we think it's not out of the question you can bounce back to the 200-day moving average near 44, 45 certainly a rally candidate there. let's look at a better chart longer term. eog which much like the xle come back to the 2 oh oh but in the context of the up trend with higher lows, 113, 114, good

support. this resumes trend and starts to make new highs then lastly, a big base taking shape here on apatchy. the acrossed the 200 held the 20 we think decent entry o entry point. these are three names apa, hal burton and. >> come on over, chris chris veron joining the defendant o desk. >> what do you think should chris come over. >> i don't know, what do you think. >> those days are gone. >> do these three names work based on a particular chart of oil you see? >> yeah. >> do oil price haves to remain stable in order for the charts to work. >> i think lost in the discussion in the debate the last couple of weeks is brent oil has gone 70 to 80. about of we even knew about the storm. this is not a storm story. there is a bid to oil here i think the stocks have separated from that. i think that's a mistake and i think the market is going

to start to reflect that some of the beaten down names, the service stock bombed on very big volume the last several days hal burton being the best example of that. there is a trade here to be had. >> i'm going to piggy back what you just said. i think it's the value rush in over growth that we have seen in the last couple of days or weeks let's say because i don't think it's a starm -- because there is not a supply drupgs. there will abdemand disruption at the end of the day. do you think the tech is in trouble and that's why the bid in energy. >> what's notable about tech, it's the social names hit. the syscos have done fine. qualcomms have done fine so there is a bit of a change in leadership within tech when you look at the move toward value industrials have been getting better for 12 weeks here across the boert rich caterpillar has not made new lows emerson has not made new highs. rails trains and truckers act as they do. if this is a move more to value

daus the fund locke thesis start to play out? and there was a reversal and baba a reve versele in zbleting back for the xle you mentioned back in the middle of may trades close to 78. made a series of higher higher lower lows island rather it buy it on a breakout rather than to buck the trend? does that make sense. >> i would ordinarily say yes. but given the strength in crude. if you made money on the short tide great rid, the right one. it's time to back away from that given the strength in crude. >> thanks, chris which one do you like. >> i just like oil in general but if i went with equities xlp that is more correlated in to oil in general i've been long oil all year long what got me bullish oil when

they said release oil from the svr and oil went down and back up when any stock commodity goes up when it should go down you got to be bullish. >> forpd shares trading in reverse. as the auto makers struggles to turn around. is the stock's dividend as risk sfl activation soaring more than 6% after they go after fortnite. we'll sell you if it has more room to run. much more fast right after this.

welcome back to "fast money. shares of classic u.s. auto makerrd ford getting battered. now trading at the lowively level. what's weighing on the stock to phil lebeau in chicago. >> we are not far from nine-year lows talking a price they haven't seen since 2009. down under 9.23 a share that's where it will be i get the question, what's wrong with ford? why has it within so miserable. >> a couple of things weigh on the company right now. you have lower profits in a number of areas not only here in the united states but also overseas you have eye got a slow reaction to changing markets, whether in china, whether south america, whether it's in europe people are saying, you should be moving quicker to react to some of the changing forces and then finally what's the autonomous vehicle strategy? it's unclear to the folks on wall street. we know ford is vechgt a fair amount in trying to develop the electric and autonomous vehicles

testing them in a number of areas. some tested down in miami. also being tested in michigan and elsewhere around the country. but we're all waiting for jim hack et's turn around plan they were supposed to give details in september they postponed that meeting with analysts unclear when that happens and when they give the details so until that happens, a lot of people are looking at ford and saying, not sure i should touch it right now and then there was what happened on sunday, a tweet from the president, once again taking aim at ford appear where it manufactures the vehicles. president the president tweeting ford ao abruptly killed a plan to sell chinese made small vehicle in the u.s. because of the prospect of higher u.s. tariffs. then he cites cnbc that part of the tweet is correct ford is not building a vehicle in china and export to the u.s. because of the tariffs then he writes this is just the beginning the car can be built in the usa and ford will pay no tariffs.

the suggestion there, is wrong the suggestion that ford will build the focus active in the united states, that's not going to happen. they are not building that vehicle in the u.s. because it's a low-volume vehicle in terms of sales here in the u.s. they are build sitcom in dh because these where they sell most also in europe because they sell them here here in the u.s. maybe 50,000 not world building here in this country. >> how long has magic hack et been ceo. >> more than a year. >> more than a year. >> i think it was june of last year. >> yeah, it seems like an extraordinarily long time for ceo to have without gichg wall street a decent idea of the plan. >> that's the problem. the folks on walsz are in the dark most the most part. they have ideas, about a restructuring maybe a cut in the labor force other than that they are waiting. they are waiting before with they say we get it and it makes sense. we think ford can make money on

autonomous vehicles. but until they get the details a lot of people are saying i'm not sure it's worth going near the stocks. >> at the same time it's amazing to see the one year pornlz of ford versus gm both are down and while gm does better. >> right. >> both are down significantly double digit percentages >> they tend to trade-in can't dem tp even though they do in different directions gm made a lot of moves ford hasn't and yet investors tend to look at these two and say, well, they tend to go in the same direction and that's what we see right now. >> all right phil, thanks what i was talking about one year ford is down 25%. one year -- year to date gm is down 17% is that right? i mean gm has the ceo in marchy barra versus jim hackett who has no plan yet? >> i think, in sentiment on the autos is as negative as i have

seen the sentiment on autos right now. >> but the economic back drop should be the best for autos >> they still have -- the stocks are overreacting to what the trade concerns are i think this is more a secular issue for the autos than just all of the headlines that we currently see. but i had said on august 28th i need ford trading above $10 on a couple of days before i try to buy it using that as support it was a one-day event. >> it's been 50/50 five years you've had low interest rates. you have had a growing economy you have tax cuts now. i mean what more do you want and the stock can't get out of its way? now to their defense, the industry o stwree is drupted the autonomous cars, the uber ride sharing, that type of thing five years you should do something. >> gm and ford each will have $145 billion in sales this year. gm has 8.5 billion in net income

and ford has 5.5 billion the profitability that phil just alluded to gm has a $47 billion enterprise value ford as 27 billion investors made the bet as far as u.s. autos are concerned and ford is clearly the looser it's ironic. the one that didn't get bailed out ten years ago and more debt. and so therefore they are facing a lot of other issues. >> i wouldn't say that gm to melissa's point down 17% the autos are sick the whole segment is sick. i think you could say someone is victorious on this. >> it's a big case ford has been cut in half the last four years. and the best car environment we have seen since henry ford selling cars 100 years ago. >> you remember that the good days >> i bought the first one. >> thank you if the stocks can't go up in the environment wrp the s&p is all time high leahy and consumer sentiment better than ever can it get go go up.

>> we are talking about industries not participating shouldn't steel stocks be doing well letter x made a 2018 low today there is economically sensitive groups not acting well homemade builders you mentioned earlier. maybe there is other stuff going on under the hood here i know that chris veren mentioned industrials and he see some strength in some transports but it doesn't seem even. >> often trade remembers betting the bomb could be in for ford let's get to mike for more on that. >> given the price action we saw on ford it's not surprising we saw unusual put volume but there are other trades indicating may be putting a bomb put in the stock we saul sellers of the eight strike puts. then we saw bayers of september 9.5 calls. they traded just under a dime. they are making the bullish

bets they are about 3.5% up by the end of the week. by the way this how the company proceeds going forwards, the optioning market suggest attention some form of dividend cut is possible. you look out the 020 options you see the dividend options implied in the options market is 27% lower than it would be if they just continued the 15 cent quarterly dividend right now when this might happen hard to say. as soon as maybe next april we could see a dividend cut that's what it looks like for ford right now. >> mike co from san francisco. for options act check out the full show friday 5:30 p.m. >> up nearly 200% and the ceo just said something interesting about the future to jim kramer we will bring you the comments plus a battle royale as analysts expect the call much duty game to deal a major blow to a popular fortnite is tp is activision the ultimate gaming

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♪ ♪ ♪ 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. ♪

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black ops 4. the battle royale refers to when big groups of players go the a it will until one remains. mike hickey i telling them what she is exceeded. hikky reiterated buy rating on activision saying he thinks the game's battle royale moede can generality more than 500 million of annual inincremental sales. a broader question now what does the game mean for the ee fom that's fortnite. hikky tells me he doesn't believe it's a fortnite killer but he thinks it's very interesting to see the impact, meaning whether there is player migration from fortnite to the new i havition game. after all he says fortnite players tend to be young, 12 to 14 they know the battle royale styles of play and low owe and love it. he bets they want to give call of duty a try. it's slated for release on octobers 12th. wig name titles are on the way

remember take 2 red dead redemption 2 launch attention october 26 ea battlefield five on november 20th back to you. >> are the new games, josh also multiplayer featured formats >> so it doesn't actually all fit within the same parameter. that's a good question i talked to analyst. you wouldn't necessarily call take 2 in the same category. but these are about big name titles are investors will watch. >> josh, thanks. all right. so why are you laughing. >> they shall make a josh lipton video game it would be unbelievable with the beard he goes out with a vest on covering stories. >> covering stories. >> it would be i'd get long. >> lunch lunches esports. >> dan did a great specie about ea risk reversal i love the take two interactive. >> electronic arts postponed the release of battlefield five. that's why it sold off by 15%

but postponed it to avoid the congestion of all the other companies with call of duty and everything in october. look for that one to actually bounce back in november. >> yeah, for you guys watching the oa. >> i was on with you. >> you were on with me that day. part of it was exactly that. they had pushed the game out honestly before the holiday season could be the catalyst the stock hasn't found a bomb yet but around 110, 105 in that area that could be a set up in the holiday still advanced advanced microon fire. the stock up 200% over the last year the ceo sat down with mad money jim kramer and we bring you the mmtshe"ft ney" mmtshe"ft ney" returns.

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>> do you keep betting on the stock after the power ballic move. >> i'm into it i stay long in it the wrong thing to do is bet a parabollic move .the wrong thing has been to sell it i'm in it. >> guy this is the final trade to when. >> we started talking about this sflp subsequenta traded on the back of crypt off fears traded down to $10.40 we said on the tv show they are making a mistake we said it more room to the up side i think you stay with it people avaluation you it doesn't make sense you buy on high valuations as opposed to to buying them low like people with intel and micron it wouldn't work. >> catch the interview with the ceo and jim cranium o at the top of the haur on mad money of the haur on mad money up next, final trade who would have thought,

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welcome back quick programming note be sure to tune into cnbc documentary crisis on wall street, the week that shook the world premeerg 10:00 p.m. tomorrow night time for around the horn. >> alibaba has been the poster child for trade concerns i'm still long if you think the trade concerns go away get long alibaba. >> bk. >> i'm with chris veren. oil looks like it's going higher xlp play higher oil. >> dan i'm with warren buffett he wants to buy it 10% lower you

may have your shot. >> gio. >> i'm with myself everybody with somebody. i'm by myself. like eric carmen yes to answer the question positive news in gead ilmight be good for the sfook mime you bacw at 5:00. meanwhile, "mad money" 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 money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer today is the day that will live forever in solemnity that's how i always feel whenever we try toom