crowded trade on the dollar. maybe that's an unwind and more of a lift in risk sentiment in general perhaps. >> well record closes. we had on both the dow on the s&p for the do you, the first time since january, for the snch the first time since august. >> see if the run continues process that does it for "closing bell." >> "fast money" begins now. ♪ moneyy ♪ you hear the music and raging bull you know what that means. the dow hitting a record high for the first time since january 26 joining the snpd 50 oh appear nasdaq both at all-time highs as well you might be getting tired of winning, the record close for the dow making it et 100th since president trump was elected two years ago. with the rally in full gear and stocks at record highs where the best place to put fresh money to work right now pete. >> base on her what we see happening in the 10-year and the steady move up, the move to financials is beginning

this is the time for the financials toward the second part of the second half of the year i think the financials actually look very good when you look at the balance sheets look at the economy, look at the strength, if they actually get some of the loan growth starting to kick in as well i think this is the place to be now, i'm overly exposed to the banks. i think there are some overly inexpensive versus some overpriced but overall there is many opportunities. >> why do you say you are overexposed. >> why that's the next rotation this- part of the beauty of the market has been the strength in the rotation we have gotten out of the fang you suddenly move to industrials. now to move to the transportations, rails and rest of that. and now i think that the financials now their time has come to start moving to the up side. >> it was yesterday when we were saying was this part of a rotational move out of fangs but today we saw the rally multiple sectors up by more than 1% apiece. >> one of the kaults braup up dollar the dollar was down almost 70

basis points what do you invest in now this if you think about the rest of the world where we get weaker data points a yet the underperformance has been more extreme. if you are at a place where the dollar weakens a yields are near highs it's a sign the u.s. economy is growing and the dollar differential should be helping it the point being, look, the dollar weakness broke through the 100 today. buy europe, buy emerging markets and the places hurt by the strongerer dollar. >> what do you think of the markets here. >> i agree with everything that pete said. for me i'm overweight financials as well. >> she agrees with nothing i said by the way. >> you said good stuff. >> there was a lot about the dollar in there and all that, sure. >> so that's -- i think they should have been here before this rally, right. i was frustrated to be owning them and having a lag and will go lag even though the story was compelling it's more compelling as we have seen rates move. and they moved pretty quickly. and pretty -- sliced through like butter right through the

three-year mark. and that's interesting to me that there hasn't been more of an any response to that. that's interesting but i like the banks i still think they are cheap relative to the rest of the market for all the reasons pete said, economy is growing balance sheets never been this good we will see buybacks dividends. >> dan hates the banks. >> no. >> he likes them. >> i would push become and say you know talking about the economically sensitive group that should be possessed to a better u.s. economy but also in the 50er of expansion tightening cycle now we have hit peak autos. housing data is sort of. financial conditions are getting tighter. you tell me how loan growth is what you just mentioned because you are happy you are seeing the -- the 10-year above 3%. we are also seeing the narrowest spread between twos and tens since before the financial crisis to me i think you get this kind of dead cat balance in some of the banks that haven't participated union i know you've been calling for new highs in jp morgan you got them concongrats ladies.

at this point it. >> did you call me a lady? >> but what i'm saying is that this might be nothing more than a little bit of a bounce off of. >> you think it's short-what we see in the financials. >> i'm telling you i'd be shocked to see you know some of the development banks make moves back to the highs they're still down more than 10% goldman, morgan. citi underperformed. >> but they're not investment banking business that's what drives a jp morgan. >> i understand. the two banks up on the jeer jp morgan a bank of america the rest of the complex aren't doing we look at wells fargo cutting 10% of the workforce the next few years. these are not healthy institutions despite that they're cheap and balance sheets are less levered than 10, 15 years a ago. >> between citi bank of america jp morgan all of those have up side they're extremely cheap, especially citi and bank of america and they have exposures in different areas how about something like merry prize or etrade or sh one or

names where they have incredible amounts of capital, dan. i'm in not just saying goldman sachs and merg understandly. banking industry has move to the upside. >> sure. >> let's move to the other sectors that should benefit from economy growing, industrials for instance, materials, tim where can we buy at this point with the markets at record highs. >> look at materials and you look at the places where the trade war is something that at least held in question what the outlook of the companies will be even though steel ulgtsization all imtime highs steel prices at highs. yield is not a all time highs but close. what i'm concerned about first of all is what we talk at least regularly here i'm not sure this is your father's trade war i think we have a dynamic here with china that is more based upon control of the internet, control of technology in the 21st century that's not ending overnight. the pressure on the companies continues to be sporadic but when i look at the industrials i would go to the autos and just say what's nice

here is that actually we know longer are talking about peak auto any more. i think what shubd be looking at with gm is that this company earns 6 -- almost $7 a share at a time when i think their business has never been run better and i think 80s company also positioned for the ev story and robo cars and taxis. it's a name i lagged and lagged this market. >> i'll give you name how about caterpillar. i pitched this a while become. 140, upgrade today you go over the last three years. they were earning $3 a share back in' 15 backup go to 16, 17 now 18 that number is now 10 or potentially $11 a share. why is that? because they have so much strength right now and they have all the capital. incredible cash flows. and you look how they are made up right now 50% from the u.s. really focused op construction here but you have the international component as well. you have a little bit of both. we have tim's world in the international because you were talking about that tim and the

u.s. exposure. that's a name where i don't -- when you look where it phrased from a valuation perspective this is a name that has plenty of upside. definiteliwise it's under the snch 500 trades at 16, 7 something like that we are looking at a name trading at 11 or 12. this is a stock i think today -- the upgrade today i think they gave it a 170 target i think that's reasonable. they could hit it in the next year. >> and not just caterpillar they upgraded man i to wak. >> they did acquisition they feel good about their business to do acquisitions i am a little bit concerned, though, i think any hope ever we ever had an infrastructure bill is really completely gone for a while. that would have been nice. i'd like to see more strength in-housing but they're not expense every they are not expensive. >> i would actually push become and say infrastructure, let's say the dems take the house this is an area where in 2019 you could see compromise

this is stuff that democrats usually like to do not republicans. and so that would be the sort of thing where if ultimately if the president does lose the house, right, they're going to have to compromise to get anything legislatively done going forward. and that was one area that i think would do well. make one other point i don't like the value names especially as we get to new highs from late january and the dow, the s&p made one a few weeks ago. you go with what got you here. you go with beta, momentum, growth because right now the value they have so far to go to get back to a decent level one other point about. >> is it on the charts what's the point here. >> because we are not -- we're 10 years in the recovery and i don't think value you're seeing this -- if the s&p and the dow are blowing off i just don't think it's going to be value is the next leg in it then obviously putting the button on the dollar thing if em debt and equities have been weighed on heavily about the rally and the dollar if from april. eem was at 52 six months ago went down to 40 now at 43. that's where you get the beta

right there. >> when socks are selling off earlier this year the next guess said to buy the dip. one of his more recent calls in july >> so we are making a new high on profit margins. wear not peaking profit margins we have marj j i'm a raging bull. >> we moep you listen to advice since the call in july the dow rallied more than 6% tony our chief market strategist more upside aahead how do you stay so bull zbliesh keep us buying the dips for the better of nine years the market correlates with the direction of earnings the direction of earnings is driven by economic activity and in many ways the economic activity in the u.s. is driven by small business. what we have here is the nfib, the national frags ever independent businesses, doing what's the broughtest poll of small business optimism. and we have -- we had a new high for this cycle right here, right.

now we had a high here we had a high here we had a high here and again we had a high here the reason i put all those on there, the proint you made a cycle peak in the nfib, the s&p 50 oh went up an additional 33% to its peak. and you didn't have a recession for median 41 months i know dan and other people are worried about the duration of the cycle. it's not the duration, guys. it's about the swrablt availability of credit, economic activity leading to profits and the market correlates with the direction of the profits >> i think tony comes on over. >> come on over, tony. >> injury he does. >> getting in dan's grill. sounds like they have a score to settle. >> you guys later i'll. >> when was that an -- i'll take that as a compliment thank you. >> you've been consistently bullish for a long time tony. >> almost annoyingly so. >> it's been sort of a difficult call to make at times like in july but, you know, as time goes on and up until now, has the

sectors you've been bullish on changed? what are they now? and have they changed during the course of this run. >> they have and basically, and what may be one of the worse "fast money" calls we you give me credit for being right. let's talk about being wrng. when i said buy banks. we're involved in what we call the productivity trade right capital spending was up over 20% in the first quarter and the sec quarter it's likely pretty crossto that for the s&p 500 in the third quarter, et cetera what that means -- how fund capital spending well bengs and financial institutions it's capital markets i'm not scared of the capital markets companies here financials fund it industrials implement it and technology is the brains behind it. so those are the three areas that we have been focused on they haven't perfectly but i think you know we have stayed with them and i think it's working well here. >> so just stick with the -- i mean, but say, versus eight months ago, were they the same

sectors you liked. >> it was. >> as this call goes longer and older, the character of the rally doesn't change too much. >> no, typically -- and dan was right. you don't tip ke have sectors lead you and then stop -- have new sectors take over. the one thing i would say is that you do get -- you've had rotation with the semis have done poorly and just gone flat when other areas like software and services and tech are vipd. >> kudos to you you've been right even when it looked like of an unusual call. >> thank you. >> in the model how do you think about rates does the move in rate start to bother you at some point. >> when did he question did the buy the banks piece karen it's a great point. what you get when you flatten the yield curve to the current degree and you get right before it inconverts we're close at 25 basis points you get the bounce up in the 10-year note yield that causes the curve to steepen quick and that's when the bank rip i wish i saw it earlier because i wouldn't have done the spot at

that time. but that's what -- i think rates are probably just plus or minus three% if the fed because the dmee is so good -- people i think make a mistake in this. when the fed is raising rates aggressively because the economy is good, the long end should trade down in yield because isn't that a disinflationary move if you are fightening fed policy to intentionally slow the economy over a 10-year yeerd that's disinflationary that's when the yield curve stays flat. >> how aggressively are they tightening right now we know we get a rate hike next woke but there is debate about december about whether three in 2019. my question is is we have a fed that really wantsto speak very dovishly and want to act when it's okay for them to tighten to normalize. but they seem very scared about it and that leads me to believe that the economy is on much weaker footing, that the s&p 50 oh at 29 and change is telling us. >> as you guys know i have satisfied many times on the show

this is ening badly. this is ending badly because you can't fix debt with exponentially more debt. there is a catalyst to make it happen this is not rocket science not magic. recessions don't show up like guys like me see you get the inversion of the yield curve causing banks and other financial institutions to stop lending credit stress increases. small business optimism tarts to tank consumer confidence starts come in and manufacturing activity slows. every cycle. we keep trying to make it different, dan it's not different you can't fix debt with more debt it's not about the rates about the ability of people to borrow from institutions. >> all right tony we got to leave it there. >> i'm somewhere in between dan and tony i mean i think the point on debt is very important. global debt to gdp is north of 300% actually in some sense high are than precrisismen certainly you could look at dorpts and say outside of a select few triple a was i think the fed should be

cautious and the reality is they are going to move cautiously and for equities that's not a bad thing. my view is that, look, we are front loading growth into the next month or two and then it's difficult sledding from there. >> coming up check out shares of micron turning lower moments ago we'll tell what you the company said on the conference call. plus up down, now sinking, talk about national sensation, tilray, but those wild moves could be highlighting a key trend in the industry. we have the details. and later nike hitting all the high and ziet the drama this is the best performing stock this year we'll tell what you has investors buying the name. more "fast money" right after this

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welcome become to "fast money. shares of nike hitting a all-time high today. this is as the company company held the annual shareholder meeting. >> it's been a winner all year long earlier today the ceo addressed shareholder at the meeting touting the strong results and the shareholder value that's been created he was asked about some of the workplace issues made his most sess extensive public comments yet about the internal correspondent culture

scandal that led to depart yur of 11 key executives in the past year including the number two at the company and widely believed successor to mr. parker. parker responded saying, he is grateful for the employees that spoke up he says the most important job is making nike the kind of place we all want it to be saying the company is committed to creating an environment of inclusivity, diversity and empowerment. he added that they are implementing new employee training and leadership development programs as they learn from the mistake he was also asked about the controversial colin kaepernick ad campaign by a shareholder parker deferred it calling it an inspirational campaign and said that he was incredibly proud of it. now according to the latest data from edison trend, sales jumped online 27% after that campaign was released during the labor day weekend. but have since leveled out around the growth rate that they were before the campaign investors have largely shrugged off both the internal changes and the noise around this

campaign as the company has repeatedly put out strong results globally and has even proven that it made good on the promise to turn around the key market of north america. shares of nike up more than 36% this year. best performer in the dow. shareholders also reject add proposal that would have required nike to disclose more information about the company's political doonlss. that was the sixth time that was vote the on. remains opposed by the board and on tuesday the company reports earnings melissa we will see how much direct impact all of this had on the bottom line. they they clearly couldn't talk about the results as they were in quiet period ahead of the earnings on tuesday. >> it's interesting, sara, there have been so many different research operations, companies out there releasing the data points about sales but none of that has been confirmed by nike. and do we have any sort of idea as to whether or not they've been accurate in the past? >> not sure about that but you are right. it hasn't just been sort of the online high frequency data like

edison trends. can accord put out their own spernl survey. we don't know the accuracy but i think it captured a similar theme. and that is that when it comes to the message that this was supposed to resonate for, the audience this resonated for younger consumerers, remember they have a huge constituency below the age of 45 that it did make an impact or at least no negative impact, that a lot of the protecting, the boycott nikes maybe from an older crowd, a lot of social media noise. but you are right we are not seeing until results are release ppd that will be early but i'm sure executives will be asked about it. >> sahr eisen joining from the nyse as sarah mentioned it's the best dow stock in the year to date. while nike sored foot locker stefrp erps plunged

10% more in the last three months do you keep buying nike. >> nike to me it's a name i'm long they've been on a tare in in last period. you want 68% in the last 90 months as in the last decade for all the people counting them out china for all the concerns around trade war mcis cribbing 25% of revenue growth. 18% of ebdita well positioned in terms of women growth edt i love the story. not cheap. at this point it's getting near the place where -- i don't want to say sell the position i would not say there is great value. >> not long ago i sold it for that reason because it's not getting cheap. a couple dollars ago i got to tell wlau the kaepernick thing we talked about on this air, we talked about the risk and a risk they wanted to take and it's not the first risk nike. >> did you sell them before the ad. >> no before the ad. and i don't think that was a reason necessarily to buy or sell

but i think there is competition with adid as a one name not up there lulu i grow the growth in men's outrageous. >> you -- you rocking some lulu. >> i rock a little bit of lulu, my son and i both. i love the product but i love what they are doing in growth they've got. >> karen, you were still in footed lock sfleer i'm in foot locker disappointing earnings, the stock is really really cheap. obviously not a brand. it's a distribution. that weighs on the multiple by a lot. but to me it seems excessive and it correlates with nike, even though in the very near term it hasn't. >> let me add, they had the meeting today obviously a lot of talk about nike stock new highs 20% since the last quarter these guys talking about growth, they are expecting to grow earnings mid-teens, sales high single digits, you're paying 30 times. getting expensive. i would add one point. since they guided in late june we were talking about the

dollar 60% of sale come from overseas tim said 25% of the sales growth from china a weak dollar gives them a tail wind at least as far as forward guidance if you could get it back towards the low 80s and set up for a move back toward 100 towards the end of the year. >> head over to cnbc to read about nike and the record run. melissa lee, "fast money" on here is what else is coming up on fast. >> announcer: tilray shares in reverse today. process and the move could highlight a key difference between it and other pot stocks. we'll tell you what that is. plus, karen is bringing the heat pitching one industrial stock that sat out the rally but about that sat out the rally but about to come to life. same goes for a neighborhood. don't forget that friendships last longer than any broadway run. mr. president. (laughing) don't settle for your first draft. or your 10th draft. the name when "fast money" returns.

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welcome back to "fast money. we have an earnings alert on chip maker micron. the stock turning loweren a sinking in the after hours session. let's get to john fortt. what took it lower. >> two things mainly is one a weak guide the street as hoping for a revenue guide of $8.45 billion consensus. and micron guided to a range of 7.9 to 8.3 the top end of range below wore consensus was. also the street looking for 3.0 had dollars eps they guided to $2.95 plus or minus 7. that guide up below the range of where the street was looking also, then, tariffs. while they said they expect a gross margins in the first consider to remain healthy cfo says the gross marjs will be impacted in the near teerm by the announced 10% tariff on $200

billion of imports from china which will go into effect on september 24th we are working to gradually mitigate most of the impact from the tariffs over the next three to four quarters and as you guys can see, melissa, the stock down more than 3 -- well a little less than now 3% in the after hours action. >> john, thanks john fortt back at headquarters breaking down the quarter from micron. there is a little bit of optimism going into the print today. today there was the point made that samsung looked very dplind when it came to d ram and nandp they thought mu would have a decent guide tp it didn't. and it's been a tricky trade ever since the company came out of the conference and said prices were weak. >> well prices are weak. and there is price sensitivity too. if anything the whole story has been just how aggressive or how rational the producers will be to control prices. in a price war you lose some of that you get defensive one of the

dynamics people don't trust. >> listen, i think we are talking about industrials, talking about the things leading higher what is indicating we got a next leg micron when you think about memory it's going into a lot of things other than just you know pcs smartphones that sort of thing. and you really have to think what that means for some of the industrial buyers too or the -- orp the devices that they are going in this stock is down 30% i just don't see it returning to its past glory any time soon and we know that in the past cycle it had a peak to trough decline of 70%. >> i see it going higher i know the guidance was weak but you look at the numbers they delivered, the numbers were fantastic this quarter and you go back last quarter, almost the exact reverse in terms of are how the stock reacted in the after hours i still think when you look at this, ever since david teper brought it up the stock is it up four or $5 from that moment. >> last week. >> a week or so ago. the pullback we see now, i don't know, i'm not overly worried when i look at the buyback, the

share buyback will be huge talking about $10 billion. if that's announced or implemented that's something i think pops the stock high sfwleer karen? >> i'm a little afraid of -- i don't have anything in the space. i'm a little afraid of when a cyclical industry turns. we talked about gm earlier that's turned in terms of the sentiment. it doesn't matter for the stock. it just gets cheaper and cheaper. it's frustrating i'm not inclined to jump in and maybe do the same thing again. >> if you think that semis at a cyclical sector turned what does that say for the market and the economy? >> it could be more isolated if they grew faster if they grew too fast for themself and not everyone else grou too fast. but they could also be very correlated and that could -- that would be bad. >> right. >> speaking of chips intel rally,s options market implying more gains ahead. >> talking about cyclic tolles intel po popped out months ago and down considerably from the 52 week highs there was a call buyer i think on the heels of the power pitch last night.

>> bullish or the fast fitch pech either. >> not either way fast pitch. >> it is. >> call volume was two times that of puts one trade caught my eye when the stock traded 46.70 shortly after the open there was a buyer of 3,000 of the november 49 calls bay faying 1.02 calms those break even at 50.02. and i think you wanted to want to see why sun sow looking up and out like tahoe there is catalysts they are looking to hire a new ceo as soon as possible they are going to have earnings they have had a couple of disappointing guides if that turned that would abtarget i think 50 to upside where you could get torque. >> ant fundamental stories and the previa two days you a talked about i talked about that in the fast pitch they were buying the november 2nd expire spoog the 46 calls then the next day 47 calls now the november calls that tells me a lot because winter earnings october 25th all this makes sense on why people are getting more and more bullish and now we see it now in

the omissions market. >> for more options action check out the full show tomorrow 5:30 p.m. eastern time. coming up wall street has been taken over by the cannabis craze. there is something happening with tilray that could be a key indicate for the pot stocks. plus karen finerman, the chair woman stepping up to the plate saying there is a stock in correcti triryonerto poised for a breakout more "fast money" strait ahead ♪ ♪ ♪ ♪ what if we could turn trash into money?

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welcome back to "fast money. pot, pot, pot. that's the hottest word on the street right now with cannabis stocks seeing the craziest swings betting against cannabis stocks, not eds. a man never afraid to live on the wilded is. >> yeah, the marijuana stocks are lit as well. tilray aside that lends a good amount of validation to the notion that tilray wasn't trading on a rational fundamentals when it surged yesterday. and many traders cited technical reasons for the volatile trade like the small amount of shares available for trading or the short squeeze, as some traders bought at higher prices to close out money-losing positional bets upon a sales or shared drop. i mean tilray lost $3.5 billion in market value down 18% on a day when many other well-known pot stocks built on the

yesterday rally np cronos group up 8% or conpy growth up 6%. some cannabis investors looking at that price action era action as more constructive as opposed to the doubling of share value in tilray at one point yesterday. if you are looking for the example of crazy trading dynamic behind tilray as of late you can't short tilray right now or very difficult. because there are simply no shares to borrow prices vary depending on who the broker is. without getting too in the weeds about it -- get it but for those already shot making a bearish bet on tilray sharts is 412 times more expensive than shorting shares of say ibm and the same goes for many of the cannabis stocks. traders trying to get a locate on shares to borrow and short or want to traffic in options are getting used to seeing the letters htb, that is hard to borrow so melissa, speculating on

hedging against the downside darn expense in in the cannabis names. >> thanks dom. as you heardtilray of course seeing the wildest swings among all of the pot stocks. and those moves highlight a key difference between tilray on other stocks our cannabis king tim seymour is on three advisory boards for cannabis stocks for all of his disclosuring go to "fast money" cnbc.com how is tilray different. >> cannabis stocks not pot stocks by the way. first u.s. ipo first money raised here not a canadian play. we know the canadians have been leading the capital markets effort why because you can bank it there. the fact of the matter is that this ipo is done here this is a global company good for tilray by the way very tactical move on this part. it didn't happen overnight they planned the nasdaq lifting appear that meant more people can investor in it it's a bigger capital market this is the argument this is the largestmarket cap

almost a self-fulfilling dynamic. it's significantly big are than canopy the name that put the entire sector into a frenzy when it announced that the constellation brand was jumbling it's not that tilray is well positioned like a handful of others like many others but the valuation where they are funded capacity is 7 times more expensive than that of canopy when they have one tenth of the funded capacity. again, this is not an insult on tilray this is just the reality there are companies with more in terms of going on there but that's not what should define it the valuations where people are on some levels i think have been most hurt. this is what i want to point out. if you follow what the stocks have done -- and this is the ipo date of tilray and it kind of went sideways, sideways, rallied out of the gates until this point where the entire sector took off remember, this is canopy but then you saw tilray go through the moment where it

actually went parabolic somewhere in here. what i think is going on is ultimately its capital markets players hedge fund players people know a lot about the sector or a lot about trading that said this makes no sense to me and i'm getting in there and i'm going to play it what happens is actually a lot of people have been caught short stock. dom talked about the dynamic op the borrow what you see is people are able to borrow the stock intraday but also explains why it closes stronger he end of the day because they have to get it back because they can't borrow it. that's what's going on tilray is a capital market story at this point even though it's a company well positioned in the secretarie >> karen has a question. >> yes when we look at the activity yesterday in tilray, even today, so many days you could pick, is that a good thing for the evolution of the companies >> well, you know, i'm talking to guys in the space and those of us who have been investing for a long time the general outcry is oh, you know we're waiting for the crash. and the bottom line here is the sector has never been more

relevant the legislative news has never been more interesting. the ancillary industries have never been more robust, the reason people are focused on the sector has never been better the trade something volatile you have to be careful >> trey been misseur. >> thanks for that. >> toucha. >> amazon at it again this time reeflgs a dozen alexa enabled devices. plus the chair woman made her way over to the plasma wining up to pitch a stock she says is ready to rally what is the name should you buy what is the name should you buy it morfae st afterg bell. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. thi. so i can trade all night long?

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welcome back to "fast money" for me time for an instant replay back in july karen said it was time to buy united rentals. >> it was down about 24% over the last -- not that long, two months or so which i think is really overdone. i think it's trade war i like united rentals. right here i bought it right about this level where it is today. and i've owned it on and off the

last year or two, off for a while but now i'm in >> that was a great call despite all of the trade war turmoil united rentals up is 16% since then do you still have it. >> a couple of things happened really good earnings and they had an squiks they announced that will be atreative i'm sticking with it. >> that was a winner so go to the plasma and give us another idea. >> all right this requested, sometimes the market presents an opportunity right at your feet and i feel like it did last week in fedex that's my pitch today a few reasons i like it. of course always i turn to valuation. that's where i look first. so fedex is cheap valuation to the market but more importantly to that, fedex is also a cheap valuation to itself. what do i mean we have a chart to show the history or we don't -- the history there we go. here is the history of the p.e. of he had fedex. you can see even though the stock is up the p.e. comes down a lot. i think the business is great.

yet here a chance to buy it on sale we go back to the reasons -- it was misunderstood the earnings call they missed the current quarter or past quarter by 36 cents and yet guided for the year about 20 cents higher net-net, it wasn't that much of a difference but the stock was down $14 the next day, which was really excessive if you ar high flier and you miss by a little then you get crushed. if you are trading at 15 times earnings and miss by a little and i actually think the guidance will probably end up being a little bit -- a little bit sandbagging, actually better than they guided that misunderstanding. higher labor costs and people were really sort of confused by that -- but to me the guidance should have been the overwhelming thing one should have taken from the call so when you look at earnings and you look further out they maintained the guidance, you said the 19, maintain the margin goals for 2020 so the stock is really cheap on those valuation metrics.

and then the last thing is i'm pretty optimistic about the macroenvironment for ecommerce and for -- for their end business they are more business focused than a ups, as opposed to to the retail consumer. but i like anything related to gdp growth they also are a more worldwide -- which may be good or bad -- we'll see -- but for all of those reasons i think fedex presented a very nice opportunity last week and i bought stock >> karen, i got a quick question for you. >> all right. >> terms of the ups versus fedex how did you determine say that one more time. >> so, i think they are both great. they could move together i won be surprised tallman you have a bit different mix in the end customer you have a bit different mix in geoography ups is us more u.s in fedex two-thirds in the u.s. versus rest of the world

either way if you want more outside or inside exposure but i think the overreaction to the earnings made me be a fedex as opposed to ups. >> you're a value gal that tracks to you the situation here it's been unchanged on the year. been volatile. doesn't it make you spook that they trade cheap to the history and cheap to the market and can't get going here and maybe this is a pass >> well i don't think it's a pass you can think it's a pass if you want which is fine. >> yes. >> gdp is growing these are good numbers and this should participate with that. >> no more questions time to vote i think i know how dan is voting are you buying karen's pitch on fed iks? pete. >> i'm not passing i prefer ups because it's more domestic i'm a buyer i love the fundamental story of this company. >> dan i loved karen's presentation because i love karen but i think it was met overall is my conclusion the stock should be participating right now. it's way too cheap but it's not i think you have a one up one

down risk reward which is not that favorable in the market at all time high. >> we'll see tony braxton. >> tim otai. >> i'm on your people and bottom line is fed seks a great macrostory also a story that tnt delivers on the marjs makes the comps tough. >> that's a great drawing of karen i have to say. >> you have to be careful sometimes. all right sorry here we go. >> there you go. >> the desk is waiting but what do you at home think about karen's pitch? log on to the "fast money" right now and vote and we reveal the results later. the mad man talking tilray you won't believe who he blames for the wild swing stick around for that and more at the top of the

hour more "fast money" straight ahead. welcome to the xfinity store.

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you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today. welcome back to "fast money. there is a brand-new line up at amazon process the tech giant unveiling 14 new alex aenables devices. and dozens of new features one a mark microwave let's get to adidi roy in seattle for the details. >> that's right. amazon announcing a slough of 70 new amazon alex aire products and features the highlight was definitely the

amazons basic microwe have they got the wi-fi to work inside everything else except the eating of course was hands free. >> it's supersimple. i have a demo potato first for that too by the way. put it in. there is a button on the microwave that allows me to trigger. one potato there it goes. potato, 6:34. >> i wish it was more complicated. >> it costs $60 and ships later this year. another big highlight was the echo auto, with eight microns built in and a dash phone as well for the echo device fully integratewood alexa and use it as a navigation altool. it can read you a book. >> alexa, read my book

>> getting your selection from automobile resuming the sum of all fears. so much the better for everyone if this had happened. >> alexa, stop >> have to try to figure out which book that was. it costs $50 and the company is partnering with car manufacturers from toyota to bmw and ford on this project. melissa, back to you a lot of fun stuff out here. >> can't we go back to the microwave for a minute there is something that escapes me you have to put the potato in the microwave and then you tell the microwave to cook it so does it actually save you any effort and then tough take the potato out of the microwave. >> maybe another room. that's the thing thp peace the real last mile is getting potato to you. >> putting the potato in putting the potato in. >> i know. >> it's the first mile and last

mile. >> there is nothing that will do thap that's true. if you have to leave the couch then the whole thing is kind of. >> i mean it doesn't safe me time what so far all right. adidi thank you. adidi roy in san francisco it's $50 so i mean it's not like. >> which is funny with all the pot growth and this happening, the microwave that you speak to, i don't know we have a lot of interesting. >> you know highway picture best, guy adami. guy adami talking -- i mean is that perfect or what >> ridiculous. >> the whom thing. >> i think the things are stupid i got to tell you the auto thing is as dumb as can be not a person getting in a car in this country who doesn't have the smarch with them that does exactly what they do listen it's not a big deal the company can do whatever they want in any industry we want they want but the fact that we are talking about is stupid. sonos got hit on the news. >> because the speakers are better sound.

>> hopefully they stink. i have sonos speakers and they're fantastic. with sonos trading at lows below the ipo price trading at 1 times sales. sonos sets up to be a easy takeout candidate for somebody who wants to compete you could said that in the last ten years but amazon is stepping with you better quality speakers that wasn't the risk the last few years. i think sonos below 14. >> that was the most exciting development out of this meeting. >> i have seen dan late night go for the 7-eleven and cook up a chimy changa. >> which means you are up late night. >> better than a potato. >> yeah. >> what's the amazon trade, pete. >> you know, i think that the total focus on amazon should be two things, data what you get and obviously aws. this is all to dan's point pretty dumb overall. but kind of fun. >> the potato demonstration is going down in e dl othanesf history of dumb thing up next

final trades

here a serious question. do you know what fedex delivers? joy. they are have having the time of their life because america is buying karen's pitch for fedex our first win in months. >> months?

>> months. >> wow >> how many ever. >> we have had such a dry pel around here. >> tony. >> thank you karen. >> i almost forgot what song we play when somebody wins. >> i've never -- i forgot the words to this one. >> we have been having celine deon. >> when it's that bad and also tony brooks ton. >> time for the final tried, pete. >> well we were talking about micron the earnings tonight when they gave the guidance weaker than everybody expected stock is off. i think on this down move it's an opportunity to buy micron >> karen. >> well, if it's good enough for america and not tony braxton and not celine deon and then good enough for portfolio. >> which song do you like this one or tony braxton. >> i've never heard this one i can't tell. >> you that's for sure. >> i'll say this micron to tomorrow's price action is important. back towards 40 you sell the semis the sm the way to do it. >> dirty dancing

i got to tell you p.e. >> throwback throwback for sure. >> loopy. >> add err on dak, the lodge. >> that's. >> intel you can do some good dancing not dirty dancing. back to you. >> that's it details dirty dancing. see you tomorrow at five my mission is simple to make you money. i'm here to level the playing field for all investors. there is always homework and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cray america. my job is to the not just to train, call me or tweet me at jim cramer is the move for real can we trust these all time highs in theow