step further and clearly want to trust the money is safe. amazon, the valuation, the cash flow is that's a big question. it would need a partnership with a bank. >> jp and others already working together. >> they have a credit card as well that does it for cloebls toll. >> "fast money" starts now thanks, "fast money" starts right now. live from the nasdaq market site overt looking new york sometimes square traders too many tim seymour guy adami. more trouble for tesla, the department of justice probing elon musk's tweets about taking the company private. we'll tell what you it means for the stock, which was down today. plus, the reviews are in for the latest crop of iphones you won't believe what people are saying either. we'll have the phones live on the set and do a "fast money" test as well but first we start with the escalating trade war as the u.s. and china continue to go head to head the president making compensates earlier tad, capping a business

fwiz day of traed headlines. let's go to amon javers in d.c. for the details. >> the administration braufdly defending the president's approach in terms of tariffs on china he announce the last night 237 which will burst ross was on cnbc earlier and said he believes the united states has the upper hand in the e-negotiation. here is what he said. >> china doesn't have enough imports from us to make a respectle tax. they are out of bullets. >> at a press frps conference later in the kay in the east room at the white house, the president talked about his approach broadly to this trade issue. he said ultimately the american public has been paying the price for what he framed as decades of mismanagement by american politicians and american presidents preceding him here is what he said. >> we are the piggy bank to the

world. we have been ripped off by china. we've been ripped by, excuse me, mr. president, the european union, of which you're a part of wove been ripped off by everybody. and i want to protect the american worker, the american farmer, the ranchers, the companies. and we're not being ripped off, you will see in a little while >> no sbangs from the president or anybody else here at the white house today as to whether or not the u.s. is going to automatically respond to the chinese retaliation that was announced this morning in the president's announcement yesterday he said the united states would automatically follow up on any chinese retaliation with additional tariffs of the u.s. -- on the part of the u.s. up to $267 billion of tariffs on additional goods from china that would be pretty much every export from china to the united states facing tariffs in that

situation. it's assumed here in washington that the president when he says auto he means auto and that's coming as well. but well wait and zblee thanks so much. despite the trade war, the dow stanld the rally today surging at 1.250 points as consumer discretionary and industrials which are most sensitive to trade fears leading the way. guy, i guess it's what trade war? >> you look at the market today, market doesn't care. >> what steve alluded to last night in terms 10% and 25% and what a difference a day makes. i take umbrage with what mr. ross said. i think the chinese have bullets and they could devalue the currency and back to square zero they have bullets in the gun with that said, with the market tells you is they do think there is going to be some sort of reconciliation but they will come to an agreement and everything is fine i'm not certain that's the case. what i will say -- we talked about it last we can, for whatever reason all of a sudden

steel stocks get footing we mentioned cleveland cliffs last week. that's higher up 4% as was u.s. steel. there have been things starting to show reyes of hope. in the form of steel stocks, in my opinion and pharmaceutical stocks that continue to grind higher. >> listen, i mean the market said today -- the market' perception is reality. and the perception is we are closer to the end the trade war than the beginning and that's what the markets tell you today. to steve's point 10% wasn't as much as 25%. the market is saying today was a deescalation i don't know if it's right in three months but for today, it appears to be the right. >> goldman thinks it's getting worse. are we too complacent. >> no, i mean -- i agree with guy, first of all they have other bullets. guy pointed every time we talk that the chinese are in the long haul the data came out chinese has been a net seller of treasuries four out of five months.

not in their best interests to dump those but they are in a position to play play a longer game. process this is not your father's trade war. >> why hasn't the market react snd you have to trade the market in front of you. i would think the market made up its mind that the u.s. does have more leverage than the chinese. >> for the moment. >> for today. >> for the moment. >> but to his point we are closer to the end. guy mentioned the -- go ahead. >> so the market is at all-time highs, totally outperformed the rest of the world. you are seeing global indicators indicating the trade war have owe is having a major effect it it has an ekt effect on the globe it achkts us it's been so long -- the revenues from the s&p -- >> the market is a forward looking mechanism and doesn't see head winds for the united states market. it's always about six to eight months ahead. >> it's absolutely fair to say here we are near the highs and the market is looking a at growth in tech and defensive

sectors and the rest of the world is defensive. >> growth and tech is -- tech is underperforming appear the market has done the heavy lifting. and there have been other triggers pushing higher and you don't see people diving into emerging markets. >> you poll polaris macies, fedex, a handful of others talking about. >> even if any could coming. >> it's about earnings and the fundamental back drop in the usa mathematic market and still positive trust me the politicians are doing their own polling good are g going into the mid-terms this is resonating with the vote zbleers it comes down to whether or not investors think this is a permanent issue or temporary and i'm saying today investors say they think this is temporary. even if we get earnings reports coming out and saying trade war is hurting, as long as investors believe that this is a one quarter phenomenon and let's call it january, february, things going to be better then you're going to be okay.

if if goes on and escalates and they devalue and sell resignries went we have a problem. >> there is no reason to believe the chinese are coming to the table ahead of the mid-terms. >> i've said it before -- i'm not suggesting i'm right i don't see any reason for them to given what's going on in the country -- if they waited this long why would they come to the table. >> if he does something behind the scenes, to just play the olive branch -- he talks tough on television. but what happens if there is something behind the scenes where he offers them an enticive deal, more incentivized to come to the table >> if we continue to get this move in markets and actually the dollar weakens puts the fed more in play. and we aren't acknowledging that i think the fed will go december and probably three more times. we think we know where the terminal rates are but if you look at the dynamics, i think the market is not pricing enough risk. the fact we have a vix at 12 or

12 handle. today i don't feel like running into the market saying fresh eyes on the s&p because we didn't respond poorly to trade news. >> it's remarkable when you think about it you get this announcement. you have tough talk. the president in the oval office sitting next to the polish president saying if china retaliates they are doing the 267 billion additional you get the bluster. whatever you want to call it and the dow only goes up the dow goes -- >> but even retaliation, remember we talked about a couple months ago. the retaliation from let chinese was supposed to be 5, 10, 5, 35% now they are saying 5 or 10. they are all backing offer what they initially said. >> all right well as we said at the top, industrial stocks were strong all day. it's the best performing this month. caterpillar, lockheed martin bowing leading the way

our next guest says there is three to buy right now >> how you doing first let's look at the xli, the sector s p. d. r tracking the industrials. you can see from a technical point of view since 2011 we are in a beautiful parallel chnl, no reason to fight the trend at this point more over where will we run into technical resistance we have more upside to go? we are range bound inside of the little channel here. so neither overbought or sold. within the maup of xli there are three industry groups to look at, the are railroads, defense and industrial conglomerates the mention here the conglomerates are weak, g.e. and 3 mment. as i mentioned defendants strong, bowe something in a beautiful signed of sideways pennant here caught between a ceiling and floor process. at some point the trend in place prior should break out boeing.

i think boeing will follow suit with rating on next is lockheed martin. not as strong as boeing and rating on. you have a low a higher low shorts are caught. panic buying, starting to get on the horse. buyers coming in momentum, no reason we shouldn't test the 360 you get my point finally look at a rail csx, looking like the xli, a long-term parallel upchannel come on trend lines. csx is moving towards the upper end. you might have another 10, $20 in csx you look at unp wraeg his this is a catch-up trade you focus on the rails and defense within the industrials. >> you got a question. >> quick question i think todd a lot of the things you are looking at overlaying snch chart looks the same. >> yes. >> a bit of sell off testing

all-time highs are you seeing the commensurate in the s&p 500. >> you reminded me i blew the segment i'm just -- full transparency right. there is a ratio of the industrials to sbx, guy. and you see underperformance of xli relative to the s&p we started to do a hook bottom in the last month as scott mentioned at the top xli outperforming at a relative basis. there is the evidence that industrials are coming on here. >> tim is going to try and save the segment. >> i wouldn't say you blew it. it was a small miscoup. >> we got it. >> industrials why are people -- you show me the chart yet we feel the strels have been under pressure from the trade war. talk about that. >> maybe bk said it maybe the markets are discounting that perhaps we win the trade war maybe they are pushing china to be more consumer base rather than export technology paced nation maybe markets are discounting they are consumer demand based

economy and start consuming some of the goods and services. i keep it simple i'm a simple minded following tooshds the trnds and it looks higher. >> i didn't know he blew it. >> no don't tell anybody biggest mistake is admitting he he blew it. >> nobody knows. >> you as a musician you never stop, never tell them you screwed up. >> all right industrials this month, cat 7% united tech. 6% boeing 5. >> to tim's point where he said everybody is under pressure and they are under and talks about it what happens if everyone got so short all the industry names against the long tech p. o. boxs and now the unwind is taking place? i think you see cover in the industrial space because the trade war fell flat. >> look a the the symbol todd

puppet up he put you defense sectors. we have a bill today increasing military spending that will likely continue into next year now you have in this particular sector trade war deescalation as well as an increase in defense spending so i actually do think you stick with the defense names boeing, lockheed, ratiytheon >> you are saying when the trade war. >> the market -- >> you got to take your lead from the market. it's smarter than all of us individual will sfwlie because it -- the dow went up 250 one day. >> what should it do. >> would you peel better if it went down and then what? >> here is my view on this let's talk about the rails because they are certainly coincident to where we see growth in gmd we have head winds in-housing sector and yet these guys crush it i think there is growth priced into a big part of the industrial economy therefore that concerns me because to me there is no way we haven't fast forwarded growth into this economy. i think the trade war -- there

is no way we were going to feel this as much as the markets are forward looking. the economic indicators won't be weaker nlg the end of the year the the markets will price it in i won be chasing industrials. >> you still can't kmas kansas city southern and caterpillarer when they reported the $10 stock buy back and valuation the way it deferred the lows, the most interesting what did you call them simple ties >> why simple. >> because he is a simple guy. >> you picked up >> simple todd. >> simple in that regard but far more complex in real life i thought he did a wonderful job. >> simplicity is complexity. >> caterpillar goes higher. >> tesla slammed today as the doj looks into elon musk's teeth. what could it mean for the stock? plus we have the iphones released last week

we put them though the test tonight. and later, the stock captivating. tilray, jim cream sat down with the ceo. he tells us what the ceo said about the ralipaboc rise there is more fast money next.

welcome back to "fast money. just when you thought the worst was behind tesla, the justice department now looking into elon musk's tweets about the company. phil le bo o bowe breaking it down. >> it's unclear how intense the investigation is by the department of justice, as it looks into the tweet that elon musk sent out in early august regarding the possibility of taking tesla private there was a report earlier in the day that this is a criminal probe. we have been unable to confirm that but we do know with tesla confirming, yes it has been in touch with the department of justice, the focus of what the department of justice is asking questions about is the private tweet sent in early august tesla says it has sent in documents that were requested by the dch justice. in a statement tesla says we received a voluntary request for documents from the doj and have been cooperating we have not received a subpoena, a request for testimony or any

other formal process we respect the doj's desire to get information about this and believe that that the matter should be quickly resolved as they review the information they have received. while it's unclear whether or not this probe is a huge issue for tesla and for elon musk, it did put shares of tesla under pressure today remember, tesla is also under an s.e.c. investigation as the s.e.c. looks into the tweet that elon musk sent out august 4th, where he said he was considering taking the company private that of course sent shares moving higher. and eventually those shares came back when elon musk and tesla's board sad said they would not consider going private scott back to you. >> phil, thank you very much what do you guys do with this? simultaneous probes, doj, s.e.c. does it make the stock a no touch until you get clarity. >> it's another distraction for tesla and makes it untradeable at this point.

because in the long run i love tesla. but here i wouldn't touch it we don't know what's happening today. they need to focus on making cars if they can do it make you get investors. >> this is the least of the problems i realize the headlines and elon musk has been not give be shareholders a lot of comfort. but. they are getting up to in her quarter round earnings around the corner. >> i don't think that matters. >> of course they matter. >> when you have the investigation the top ten holders can't be holding they have to lighten up on the plays. maybe if he is removed or barred maybe it's a positive for the stock. i'm not sure. >> i don't think so. >> so if it's not. >> tesla is musk musk is tesla. >> you can't touch it now during the investigation. if you think it's a negative then it's -- >> let me throw this at you. i remember a company called herbal life has a doj a and s.e.c. investigation going on at the same time when the news broke the stock went down things

looked dire. we know how that movie ended if you are a blefr in the long-term of the company why don't you use this as a buy. >> that's fine except for has the stock sold off the concerns? no we have three or four% today. maybe 5% total that's not the issue with tesla. the issue is you have a ceo who is visionary seemed unhinged you have a company never hitting deliveries and a massive competitive landscape, the pocket is collapsing around them >> there are lots of pockets tim mentioned competition for a while. i discounted that. but actually you are starting to see audioey come with commercials. jim cramer said there is competition is a a factor. i'll say it the when they said funding secure 375 i thought the stock with was headed bee line to 420 i was wrong but it bounced off 280 and here we are indicates there is maybe downside.

>> anybody buying tesla? anybody gaming that out. >> it would be a big gulp and how you going to integrate musk into another company >> because that's where the rallied on on the fake tweet >> but it's different between -- it's different between him taking it private and another company buying that's a very different substitution. >> just torg back to the stuff steefr is talking about. this is the hero most short the security there is no question -- and even for a stock motivate shoerted yesterday was the fourth most shorted i was checking stats from brokers. yesterday tells you that the pressure is probably increasing on a stock if you got a whiff that there is a takeout these guys will run to cover. but the biggest issue here is that this is a company that has to deliver on fundamentals and the stock trades at something fundamentally making no sense. >> to your point, the sfok is ripe for a battle of billionaires which you know a

little about. >> we'll see. >> you see what i did. >> the herbal life, battle of billionaires. >> simple bk. >> are you wearing a cow boy hat. >> for more on musk please head to cnbc.com. there is a story there in the meantime here here's what's coming up on fast. >> announcer: no it's just shares of hot pot stock it ray and after you hear what the ceo told cramer, you'll understand why. did you see that it's the small difference that might explain why apple stock is urging and we will tell what you that is when "fast money" returns is about doing things right. and there's no shortcut to the right way. so when we roll out the nation's first 5g network, it'll be because we were the first to install millions of miles of fiber optics.

and we'll be the first to upgrade the towers and put up the small cells that will power the smart cities of the future. when i started at verizon, i knew i was joining a team that was pushing the industry forward. now, with the launch of the only 5g ultra wideband network, we're doing it again. this time, changing the way we learn, work and live. and i'll always be proud that we're not just building america's first 5g network. we're doing it right. ♪

more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh...am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies lead with digital.

welcome back to "fast money. first wave of reviews rolling in on the new iphones how is the tech community responding to the latest upgrade? our josh lipton live in san francisco with details. >> reporter: scott the reviews are in the verge neilly patel saying the xs and xs max smoothed out solid updating to a winning formula. u.s. today's ed beige telling readers saying these are the best they have made. that's where the cost justifies the expense. he says maybe wait until the kr xr appears the the squournl's saying sit tight the xr due out in october, remember sounds more like a great deal in her opinion. brian chen of the "new york times" writing bigger is now definitely better.

acknowledging the price tags of the new smartphones because emphasizing the cameras and screens make them worth the high prices financial analysts taking guess base the mix of iphones in the quarters ahead and what that means for average selling prices in a note today rbc saying if the kpeeper xr is the big seller asps could grow to 820 but the xs max is the best seller then asps could approach 900. >> so are the new iphones worth the hype let's bring in the tech product editor todd hazel ton who has the phones you saw the reports. you have the phones. what douse. >> i say they are the best can you by right now best iphones no surprise but i agree with the headlines everybody shutdown wade on the xr in october launching in october for $749 these on the other hand are $1,000

and $1,099 when you pack in the storage that goes up to 1449 they are amazing they have the best -- the strongest glass apple ever put in more water resistant i threw it in the pond at headquarters it can go up to 6 feet of water for 30 minutes new signals. a gigabyte lte, faster data than the iphone x last year and also something business users will care about dual sim pmt you can pack a sim card and 11 them both in come back to the united states and use the american s m. >> everybody here have the iphone anybody order one of the new phones. >> no i have the x already. >> so if you have the x already i don't think you need to upgrade. which is the points i make but if you have the iphone 8 which came out last year it's worth the upgrade because you move towards where apple is going, right no more home buttens, face id which we will see in i pads.

>> even for beta. >> why do you think, think -- i believe you think it's the next upgrade you will miss. what is coming down the pike, so to speak, you think is making us all upgrade. >> as in like next year? >> yes. >> i don't know what apple is doing next year. >> you say the r is good enough. >> that's next month. >> that's you say 720. >> they were talking about $749. that's the mass market for this year and i think it as a 6.1 inch screen aluminum more cheap than the steel. i think that's the one that a lot of people will like. but -- >> but todd extending the question, does this change the game for people on the fence right now versus the 8 is this noticeably different to the tech community. >> yes versus the 8, absolutely. everything is upgraded over the, the camera, the skroen the oled display people love it. better speakers. everything i was talking to apple about it they were like it's a huge upgrade. well you just launched that last

year don't you feel that maybe customers bought it a year later maybe upset that's where the x is coming in. >> the big question is should i upgrade we sent tim out to conduct the "fast money" iphone test here is how it works we show a set of identical photos one with the 8, another with the iphone xs and guess which is shot with the new phone let's put the first up there you go that's timmy seymour there you go it's like my blue steel shot. >> out in times square. >> which is shot with the iphone. >> me on the left so camera left. >> is it fair to answer that >> i'm not a camera guy. >> the one with the more vivid blue in the eyes and coat pocket there. >>s new one was the right. >> really? >> on the right.

go ahead don't we have a funny -- there should be a game or a graphic. >> please, the shadows see -- it's dark his coat was dark on the left-hand side on the right it's clear because they increase the picksle size on the new cameras and so you get more light in the camera >> i mean it seems to me it's a millennial upgrade take pictures of avocado toast >> now we know how to play the game there we go. now he needs a cup of coffee. >> yawn. >> which one is the with the new. >> the one on the right. >> now the duller one. >> the one on the right. >> well it's in the teleprompter all of you. >> you know, i can't see the teleprompter. >> yes it was on the right again. >> that's obvious guys. >> switched it up this time. >> all right and finally the rain didn't get to tim today

there he is. ♪ singing in the rain. >> that's video which one is the new phone. >> did you tell your wife and kids to leave the house tonight just in case. >> he was scared i was going to fall. >> i'm going left. left. >> all right it is left. >> there you go. >> the xs on the line. >> i tell you gene kelly, enough of a difference to make you buy the phone. >> i want to buy tim another pair of pants. what is he wearing get that hat from yesterday. >> for sure outside of the fact that our good friends at the nasdaq loaned that to me thank you nasdaq. >> todd hazel ton bringing the phones you want to trade it? let's trade it anybody not own apple on the desk. >> the phone or the stock. >> doesn't interest me to me, apple is -- >> that code word for i miss to do. >> yeah, maybe if you want to say that but it's more like a utilities. it's like a utility where you get the steady returns

bk linings likes. >> up 29% does that sound utility. >> 29%. >> i understand bitcoin guy. >> it's asps average selling price. ultimately average selling price goes higher no matter what happens in apple and services going higher as well. >> check out the cramer cam, the mad man himself sitting down with the ceo of tilray as we speak. to talk about the pot stock's parabolic rise we will tell what you he said and do that after the break. plus wall street is back banker getting paid the most since the financial crisis 'lexaiolders, not so much. wel pln what's behind the strange divergence more "fast money" next

we are back on fast. check out shares of tilray parabolic move today the company announcing it will be the first company to export medical cannabis to the u.s. for clinical trials. and mad money's jim cramer spoke to the ceo moments ago about all of the m and a rumors circulating about the company tp take a listen. >> i think all the alcohol, all the alcohol companies need to enter this industry. it's a great hedge for them, whether you are an alcohol company or investor in an alcohol company. this is a global opportunity our intent to build a company that dominates part of this shh

150 billion industry i think you will see multiple $100 billion companies petition don't want to partner with abil. >> minnesota a meet youric rise. it has a market company of $14.4 billion. bigger than 140 companies in the s&p 50 oh. despite all that hype, the company only has $28 million in sales. by the way, the company has $21 million public hi trudied shares trading $19 million today alone. >> what to you do with this. >> it's tough. on this show you have seen me when the stock was overpriced at 30 say it's pricey but the only u.s. play, the first u.s. ipo maybe chieper names. and you have seen me say at $100 really expensive not sure what td but i would not be buying. now at close to $150 what happened today? bottom line is the fda came in and said that one of the main u.s. players -- they're

obviously very well situated in canada but someone that has u.s. positioning. significant position attention can import medical cannabis. researchesing at ucsd. able to make more progress on the research side. a day after we get coca-cola coming in and talking about non-medical uses for cbd in their products at some point. think about what's going on. he talked about $150 billion i mean, that's impressive annually. >> we have the mad man himself with us jim cramer is joining us jimmy, it sounds like a great interview, what do you do with a stock that's gone up as much as this one has when you compare it to some of the companies's fundamentals. >> i will say -- great to talk to him i saw him with the green market report conference last week too there is a -- i think a half trillion dollar opportunity here and really only about $40 had billion worth of market cap of the major marijuana or cannabis

stocks however i did everything but just get on mys and beg brenden to issue stock here. because he has to compete against the $5 billion war chess canopy has because of the exposure to consequence tellation. i know he wants to be the next bud. but the thing that's smart is you need a tremendous amount of capital to do medicining with bench, pet food, now pet health. that requires a lot of money scotty, i got to tell you they should raise it when the money -- when the corn is high and he just wasn't biting. >> you know, you don't think there is too much hype, speculative money plowing into the names and somebody is getting hurt on the other side. >> no, someone definitely will but against ha is the fact that canopy was a company that when i first started talking about, when rob sands came on he made the investment constellation he said jim you are ignoring how

big the market is. there is retail money in this stock and it's difficult to borrow stock as tim and i know, it was a really big news today that maybe -- maybe the government is getting a little bit softer on medical. but i've got to tell you if you are buying it up here you better have more of a thesis than just that the quarter is good because i think october 17th is not going to be nearly as much as a water shed. that repeal day of prohibition in canada. i think the stocks are coming down hard after october 17. >> i got a question to for you jcp carson wentz back in the fold what are you thinking about what happens to nick foles now. >> ron was just tweetsing how foles -- we're 28th in short pass 28th in passing right now which is i think will change when carson comes in. but we got to give him weapons and we haven't been giving -- we don't receiving owe have a

receiving coring in like last year in the he super bowl. i'll be about there. frank wright is a unbelievable coach. great offensive coordinator from the colts. i'm nerves i love the birds but i'm nervous. and i will be nervous buying tilray tomorrow morning. >> timmy has a question for you. >> you've interviewed a lot of ceos what's the common thread? young, entrepreneurial what else. >> i think they genuinely believe in the power of cannabis to stop opiates. they believe in the power of cannabis to make it so we are safer from violence at home because alcohol is such a big part of that i think they believe in cannabis as a way to be able to have less drunk driving. but most importantly i think they believe in cannabis because it's healthier than everything else we put in our byrds >> we can't wait for the interviews. >> so glad to be on i think the interview is ground breaking. >> we are glad as with he will processle there is brendanened kennedy jim sitting down with

him exclusively. you can catch the interview in 15 to 20 minutes stay tuned at the top of the hour coming up, is the fang trade two faced there is a rp o popular divergence and financials are flat this year would you believe wall street pay just hit the highest level since the crisis what's going on tathe big bank sns we will discuss more "fast money" after the break to remodel your bathroom.right s ♪ no fees on loans to consolidate your credit card debt. see no fees just feels good. ♪ boo yeah. if you've got the drive, you can do a lot with no fees on personal loans. boo yeah.

>> announcer: tesla facing the heat legal troubles new rivals the next move for musk appear the investors. squawk on the street 10:00 a.m. eastern. welcome back to "fast money. it's the two faces of fang facebook and google falling over the fastest month. amazon and netflix are up. in the divergence do you bet on the winners or the losers? >> you have to bet on the win erps at this point you have day of reckoning for a lot of the social media stocks coming at the end of september where you have jeff sessions getting educated on it he is getting briefed on it. we are seeing the type of buy d.c. is going to try to enact against the social names i think it will be a by the news event or by the fact event because i don't think much is going to change. but i would say that they're going to be outperformed by the winners in the space. >> you know, first of all,

people think i'm short facebook because i'm negative on some of the approach they've taken to how they talk about security and costs and risk to the business i i own facebook and handful accounts but bottom line is that's not a name to go to. and google has regulatory risks. i can't touch netflix. i believe in business model but not the valuation. amazon, yes, ride that because even though they have regulatory. >> you have no problem with the amazon valuation but with the netflix valuation. >> because amazon has motive netflix has so much competition it's a matter of time. >> facebook -- i thought facebook wasn't rallying offer the zuckerberg testimony back in march, april went to 205. but basically give tennessee wak. and where it should be but i think facebook gets interesting again at this 155 level where it basically spent a lot of march and april i think you can buy facebook done another $5. >> you think more regulation is coming, big time, facebook's

way. >> and/or google. >> it's not getting easier for them if you are looking at these stocks stocks and say who has the most risk over the next quarter or so to me it's factual basis more than goog if i split these i'd rather go netflix and amazesen on this i think they have the left risk. you go with the moment up winner winner chicken dinne >> do you think tech regains momentum as a group in which waist maybe not facebook -- db o -- facebook is a special situation right now but that most of the names really getting a lift. >> where else are you getting the explosive growth bd o k said about apple, acts like a utility up 30% one the of the low fly resist all the other names up 50, 60, 70, eight% you have to go back to tech. >> that's why i stick with the winners. that's why i stick with momentum they have been been used as an atm sometimes and they bounce become i want to go with the ones that

didn't sell off as much this time and have less head winds the next quarter. >> more money more problems. salaries of wall street bing banker soaring and stocks sinking live in times square at the nasdaq market site more "fa meyston" ahead. do not go anywhere for your heart... your joints... or your digestion... so why wouldn't you take something

for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. you're still here? we're voya! we stay with you to and through retirement. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. so, that means no breakfast? voya. helping you to and through retirement.

♪ the kenya tea development agency is an organization that is owned by tea farmers. every week we sell this tea, we get paid in multiple accounts. we were looking for a bank to provide a safe and efficient technology platform to pay our farmers. citi was the only one that was able to ensure that this was done seamlessly. and today, at the touch of a button, all the farmers are able to get their money, pay school fees and improve their standard of living. with citi, we see a bright future for our farmers and their families. ♪

welcome back to "fast money. wall street's paying well nowadays but not if you are an investor in the biggest bank names. bob pisani breaking it down for us at the new york stock exchange. >> good evening, scotty. salaries rose and wall street the highest since the 2008 financial crisis according to a report. the report puts the average salary in the industry at $422500, a 13% over the year before by the way, the third highest average on record after adjusting for inflation. now, that's pretty close to the overall rice in profits. profits for the first half 2018 stand at 13.7 billion, 11.7% higher than the same period last year the reason profits are up is

revenues grew faster than expenses, up 8.6% in the first half of 2018 revenue growth was strong in welt management up 14%. revenue from trading up 22%. surprise the good news. the bad news is wall street smaller. the workforce is 6% lower than in the 2007 peak a little more bad news, even though profits are up investing in the big banks have not been bin o win iris the s&p 50 oh up 9% this year. banks, you see, up a little 1% big names by fifth third and city group down. and the investment banks are worse. morgan stanley and goldman sachs, both down nearly 10%. goldman, by the way, saw a 17% decline in trading revenues last quarter. that was due to low volatility and the limits on the ability of wall street traders to profit from market bets it was the worst on the street that stock is now -- by the way the worse performing dow component this year. but banks have bigger problems

put together flat yield curve within loan growth that's mostly flattish and higher deposit costs. and you have investors saying, there is better places to put my money right now. back to you, scott. >> thank you very much we'll trade it now >> it's interesting the stocks can't get you bid. >> they seem to foretell another story. i think theearnings profile is returned maybe not to prefinancial criticizes buts valuations are compelling. and i think higher salaries by the way don't mean suddenly the guys are having gangbuster businesses the business haves never been more efficient there is one-half the people working at the banks paying people who are performing makes sense to me. >> the regional had outperformed the big money center banks recently but looking at sun trust and bb and t both guided low are and net interest margins that's taking the steam out of process kre the reg willing baepg index is up 5% against the

xlf you could see the spread catch down to the bigger money banks. these act like utilities stay away from financials. >> become too easy to avoid the names. >> goldman sachs, clearly something going on, upheaval complete change in philosophy. all the. fixed income current currency people out of favor. more of a banking fee-based business there is a growing pains there and the stock is saying that citi bank at one time the book value is most interesting. >> growing pains are right but this is an industry going through full disruption. look at what jp morgan had to do by cutting commission rates because of the robin hood app and blockchain technology coming along, and demographics is driving the disruption you look the millennials they don't want the big banks they want to go with amazon and bank with them. >> but the alternative is extraordinary. >> they get get out of their which. i've tried it a bunch of times they don't go up

they don't go up. >> okay. all right. >> you would think -- you got a bull market, the s&p is not that far from a new all-time, strong economy. >> the 4% gdp. they should be levered to that they had report profits. that to me is enough to hang in. >> options trade remembers betteding on the bigger breakdown for one of the struggling bank stocks let's go to san francisco. mike is there the details. >> we are looking at morgan stanley today traded about double the average morning put volume, largely the result of a purchase of 150 oh october 5th weekly 47, 46 put spreads the buyer paid 29 cents for that the making obeyish bet that morgan stanley getting to the 46 lower strike sometime within the next two 1/2 weeks and that expires before they report earnings a couple weeks later in october. the thing i look at here is this is more of a technical play

because the lower strike is essentially targeting the lows we saw this year earlier in july. >> who has something for mikey on morgan stanley, the options play maybe that's the best way to do a trade-in this space. >> mike how about versus the goldman sachs because people put the two companies in the same basket is there a way you might position that trade? >> yeah, i think you could do the same thing in goldman sachs. morgan of course is more about the asset management business. but options are cheap in all of these names. as are the stocks themselves actually. >> mike, good stuff. thank you. mike co out in san francisco for more options action check out the full show friday's 5:30 " stn time up next, you know what, final trades (indistinguishable muttering) >> announcer: options action sponsored by think or swim by td ameritrade coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo!

you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. when the guy in frontd down the highway slams on his brakes out of nowhere. you do, too, but not in time. hey, no big deal. you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges...

how mature of them. for drivers with accident forgiveness liberty mutual won't raise their rates because of their first accident. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty ♪

let's go around the horn team sierm. >> a stock not participated but anticipated to pounce gm. >> xlp, continue with that. >> steve grasso. karin ohs, the space is over extended they have run too far with coonos. >> yoeman's work in mel's absence. >> a privilege and pleasure.

>> it has. >> i can't even be inseer. >> i think twitter is going down. >> i tk ooit -- thank you very much thank you very much. "mad money" with jim cramer begins now my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job not just to entertain but to teach so call me at 1-800-743-cnbc or tweet me @jimcramer. has the stock market totally lost its mind? i mean, when president trump impose as 10% tariff o