and hasn't been fully integrated to the company plus the versace deal would be dilutive 30 to 40 cents. back to you. >> courtney reagan, thank you very much. we'll see what happens on this deal after that thumbs down from the market today it is interesting that a lot of these brands, kors and coach and now tapestry are going the european route >> that does it for "closing bell." "fast money" starts right now. >> live from the nasdaq market site overlooking times scare, i'm melissa lee. tonight on "fast" energy stocks on fire. the best performing sector today amid the sell-off and traders will tell you the names they think will surge higher. plus marijuana madness a slew of pot ipos come to market and how much money are they making? there's a special report first we start off with the turmoil in d.c while president trump attends the united nations general assembly in new york city,

conflicting reports of a shakeup at the department of justice sent stocks on a wild ride let's get to eamon javers. >> reporter: that's right. the president is traveling in new york for events surrounding the u.n. while he was here, he had the opportunity to take a question today on what exactly is going on with rod rosenstein here's what the president had to say earlier today. >> i'm meeting with rod rosenstein on thursday when i get back from all of these meetings we'll be meeting at the white house and we'll be determining what's going on. we want to have transparency, we want to have openness, and i look forward to meeting with rod at that time >> so a stay of career execution for rod rosenstein today from the president of the united states it was a very strange day, though, melissa, with reports that rosenstein would be fired followed by reports that he might resign followed by reports that he had been summoned to the white house for a meeting. it turned out that rod rosenstein was at the white house for a previously scheduled meeting. but then we saw this video of

rosenstein, the number two official at the department of justice, leaving the white house and john kelly, the white house chief of staff, meeting him to shake hands. this is an interesting moment because john kelly knows that all television cameras at the west wing were pointed ot that driveway at that moment in order to catch a glimpse of rosenstein and made a point to go out and be seen shaking his hand not clear what kind of a signal the chief of staff was sending there. at least as of now it appears as if rosenstein is solid in his job until thursday then he and the president will get together as the president said, they'll determine what's going on here. >> thursday is not a very long time. >> reporter: not a lot of job security. >> today we spoke to a lot of political analysts who were inclined to make a comparison to what happened during the nixon era just before watergate. i'm going to ask you to put sort of a professor jacket on for us. it seems to me at least that we're pretty far away from this being the saturday night massacre. >> yeah, well, first of all,

nobody has massacred yet so that's not the case. and there's a sense maybe that the president would do a slow motion saturday night massacre to try to slow down the pace of this investigation but that hasn't happened either, right? so despite all the speculation of that, we don't have the president taking any steps here to interfere in any way with this investigation all the principals are in place. the question is does the president want to fire rosenstein and take the political and legal potential heat that go with that decision? it seems like we don't know the answer to that and we might not know it until thursday and maybe not even then. the president has a lot of reasons why he wants to get rid of rosenstein, particularly because he appointed the special counsel in the first place on the other hand, the blowback would be pretty bad as well. today the rumor mill in d.c. went into full gear. stock sold off, dow having its worst day in nearly a month. the dow was down nearly 200 months so the chaos at the white house

continues. we see an escalation of this what's the worst case scenario for the markets? how concerned should investors be how should we think about this as a potential or maybe current market story >> well, in this context, the worst that can happen is some constitutional crisis happens if mueller gets fired that's the worst thing that can happen. >> with the supreme court that's not full so it's challenging. >> it doesn't matter what i think but the seeds of the sell-off were made over the weekend when the chinese said, you know what, we have more staying power than you folks think and we can escalate this i don't think the chinese are the normal foe for this president and i think they do have staying power and the more you hear rhetoric like this, the more it seems like there's chaos in the white house, the less inclined the chinese are to make a deal i think although this was the headlines today, mueller/rosenstein, i think the real seeds of the sell-off came in the form. chinese tariffs. >> i think the chinese tariffs had ten handles of power

i think rosenstein had another ten handles of power. but china has a long way to go before they become a huge problem for the marketplace. having said that, if you look at the way the market is taking place right now, you can see that the market has already digested the bulk of the china tariffs. so now if we look at it, bring it back to 50,000 foot up, i think you're more concerned with d.c., midterms and what that means and how rosenstein fits in there. >> but midterms before rosenstein >> midterms, it becomes so much more important now, the outcome of midterms based on what's going on with rosenstein but the president has some flexibility now with rosenstein, i think. >> well, so i think midterm elections is what it's really all about. i do think markets did move on headlines today. you're talking at markets that were at all-time highs i think there's a lot of market forces here. we had an options hangover which means you had a chance for this market to be selling off anyway. guy highlighted the china news no question china is going to dig in no question china has been a

factor certainly for the rest of the globe. you also have this dynamic which are rising interest rates. i know it's nothing to get excited about now. but when i hearthe ecb talking about inflation across the continent, which they have not done, i think that's been keeping a lid on rates i'd be more concerned about interest rates from the fed than i would be washington. >> karen, how do you decipher this >> well, it was a merger monday which very often is a good thick for markets. you get people excited about deals. you didn't see that today. i think it was on china, on trade. however, i think the rosenstein thing was much heavier i agree with steve, i think that it really comes down to the midterms because -- and the most important part of the midterms is the senate, which i think is the less likely one to go. but if it does, that's really bad for this market. >> could we game this out just for people -- for me too we're saying that rosenstein could impact the midterm elections. if things get worse --

>> i don't know how, though. >> fire versus resign is a major issue. >> and that could put the senate in jeopardy. >> of course it can. because republican will react to fire versus resign as well >> but after the news on friday, i think president trump has a lot more room on the fire side if you're talking about -- >> what does that mean >> rosenstein, who was going to wear a tap and then -- >> he has denied every single part of that "times" story. >> the failing news "new york times". >> but i think there's enough of a shell game going on here that the truth is somewhere lost in the midst. >> so i think we're all trying to disclaim we don't really know what's going on, but if the president is creating more of what seems like a shell game in other words, if you're planting or saying these things about rosenstein, which make us completely discredit him, you know what, he needs to go. if you think that people are going to not pay attention to that fact and then get us back to a place where we may have that constitutional crisis -- >> it's moved away from the

russian investigations now to a point of rosenstein against trump in somewhere people could say it's a personal issue on both sides maybe, but it's moved definitely away from a russian investigation reason why rosenstein would be fired. and i don't think he's going to fire him i think it's going to be a resignation. >> you mentioned constitutional crisis, and granted -- >> make sure you ask it in the case of worst case scenario. >> and we're a long way from that but losing the senate is not too far away necessarily compared to constitutional crisis. so is the thinking that the republicans lose the house and they lose the senate and, therefore, the president's agenda is at risk. and therefore that's bad for the markets? i'm just trying to connect all the dots. >> that's probably accurate. tax 2.0 probably gets shelved. any infrastructure deal probably gets blocked or some gridlock that we haven't seen in quite some time gets put into place. markets typically like gridlock. in this case maybe not so much because a lot of the rally has been predicated on a lot of these things going through again, i'll say that

politics are interesting, but that's not what i do what i think we should be focused on is what tim is saying interest rates are going higher. the central banks around the world are in play. this china tariffs thing that the market has discounted because they think there's going to be some reconciliation is still on the table. >> let's say we have all those risk factors and you throw in a sprinkle of rod rosenstein if you are in that camp -- >> a dash. >> dab, dash, healthy serving, whatever is your belief in terms of what will happen, what are the sectors -- do you change the way your portfolio is constructed? >> i would probably buy more protection here because even though, you know, the vix moved up, it's still at a pretty attractive rate to buy protection so i don't like to try to trade around whatever the story of the day in this white house is that's a really dangerous game but for me down here, this vix i think is relatively cheap insurance to buy in your portfolio. >> you have to lighten up in the market we've heard about the china

tariffs, we know where the players lie. we don't know how rosenstein is going to work out. i think you have to lighten up but that is -- >> in what, though what would you lighten up? >> large cap -- the ships that have got you here, i would lighten up on that i would lighten up on the outperformers. energy you could probably stay because that's been a laggard up until recently so stay in energy but sell the overall market. >> commodities so you started to see copper recover. oil is basically as near four-year highs and you heard russia and saudi over the weekend basically indicate they're willing to take oil over $80. it also seems like in russia's case they're doing what they can to disappoint trump if he's been trying to job on that. weaker dollar comes from stronger euro, comes from stronger ecb more hawkish. that's very good for commodities. still way oversold they totally have not participated in this move. i would take a look. >> the beginning of september, one of the leads of the show was what can stop amazon and we had a conversation.

amazon can stop itself in terms of a relative strength basis, stock is overdone. one of the things we said was it would not be ridiculous to see it trade down to 1850. look at the low today and look at the reversal on amazon today. what's the point for the first time in a long time in terms of 578 seamazon, have something to trade against and it comes in the form of that low that i mentioned. >> plus you have a big week now looking forward with jeff sessions is going to get schooled on a lot of these social media stocks and amazon does get lumped into that as well. coming up, media mayhem. comcast beating out fox and winning the bid for uk television company sky in the midst of the battle, hulu we'll tell you what it means for the streaming giant. plus it has been a wild ride for tilray it's just the beginning of cannabis-related ipos. so what do you need to know before buying a pot ipo. later, the energy stock surge is heating up and the

traders will tell you who they think will lead the way even higher live from mes uatisqre in new york city, much more "fast money" right after this. with sh! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals. you'll know what you're invested in and how it's performing. so you can spend more time floating about on your inflatable swan. [ding]

designed to save you money. wireless network even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. welcome back to "fast money. comcast emerging the winner over

media company sky and that could have big implications for streaming giant hulu let's bring in julia boorstin from los angeles with all the details. >> reporter: melissa, comcast is paying $40 billion to acquire sky, topping the bid of 21st century fox and its new owner disney by about 10%. comcast paying about 38% more than it initially offered for sky. comcast saying that sky will increase the company's international revenues from 9% to 25%, giving combined businesses 53 million customers globally to allow it to invest more in content. now, on the winning bid for comcast over the weekend, cost cast shares losing about 6%, fox shares gaining 1.5%, while disney added 2% and rival netflix gained 2 account p sky shares up about 8.5% now, this deal also makes rivals disney and comcast co-owners of two valuable companies fox and disney own 39% of sky

and comcast hopes part of hulu with disney owning 60% of hulu, there's speculation that disney will try to buy out comcast's stake. now, these two things cannot be directly related because of the rules in the uk, but comcast is definitely interested in pursuing the acquisition of the stake in sky that fox and disney will own so there's a question about how these two companies will handle the fact that they each have a minority stake in the other company's assets it is unclear at this point whether comcast will eventually acquire the balance of sky from fox/disney, but it is certainly a logical possibility. if such a transaction were to be part of a larger cleanup transaction that sent comcast's 30% stake in hulu to disney, it would be significantly more

accertive for the simple reason that hulu loses money. now, they have very strict rules in the uk preventing a trade of those assets but separately as they pursue acquiring those minority stakes, it definitely does make sense these media giants would prefer to avoid having to share ownership of those assets. >> could we be in a position where fox urges its own shareholders not to accept the comcast offer and so it does remain the minority holder in sky, which would make it much more complicated for comcast >> yes so it's very possible that fox/disney would choose to hold on to that 39% of sky for the deal to go through comcast just needs to get the shares of 50% of the shares to approve the deal so as for that 39% minority stake, we'll have to see what happens to that, but still in play. >> julia, thank you.

julia boorstin in lose breaking it down for us what do we make of the deal here comcast shares were down 6%. we should note when comcast bought nbc universal and at&t broadband they saw similar share declines. >> well, again, the winner's curse, especially in an auction-type setting that's something that the market is the first reaction to i think we were arguing a long time ago that this was the asset that comcast should be going after and this is the one that made strategic sense for their global model i'm not going to throw them under the bus. bottom line is i think this is a creed of -- i think satellite tv is in decline and that is something to be worried about. right now i think this deal is what they wanted all along. >> oppenheimer downgraded the stock and said they would prefer comcast spend money investing in the united states where the competition is much greater. why invest overseas when there's competition knocking at the door right here >> well, i'm not really sure

maybe it's cheaper to do that if there's more competition here. i don't know the shareholders of disney were telling you we're happy that you didn't buy it, so that was up today because whether it was a price thing or because, look, you've already spent too much money to do fox, you don't want to be that levered, let somebody else be that levered which would also explain why comcast is down. it's too early to say, though. >> or their competition is not as strong abroad so they had a better shot at investing there versus investing here. that's the way i would look at it but comcast has underperformed for quite some time. it's going to underperform probably in the near term but i'd still be a buyer. >> well, the chart master has the one name that looking like a buy. >> disney, i want to talk about media lagging the market and focus on disney specifically back to '89, media has almost always outperformed the consumer discretionary sector, and yet over the pastlagged.

what i have here is the s&p 500500 media group versus the market and this disconnect i think is the opportunity so if we were to move forward, what i have next is the same chart but then i've put disney in just to put this in context, we've got the s&p, the media subindustry group and laggard difficulties knee. i think that's the opportunity so let's look at disney long term and then the here and now here is the run-up since the '09 low. here is this basically dead money period for the past three or four years, massively underperforming the market i think you can draw the lines like this. there's a lot of tension set up here what we know is after basically triangulating into the apex of this triangle, we have finally just tentatively broken out and are sitting here on the cusp of doing something i think quite

important. in terms of the here and now, no drawings, judgments by me. what i see when i see that particular chart is the following. a well defined cup and handle. or said differently, the proper setup for ultimate lowly a run new highs. disney peaked in august of 2015. that high was 122. i think we're headed there. >> come on over, carter. we'll bring a chair in >> fantastic >> i'm going to ask you a self-interested question how does the comcast chart look? >> well, this is a struggling asset in terms of the chart itself. >> right. >> and then there are ones that were really poor for a long time like a dish and they're struggling that's the interesting thing if you look back through the '80s and '90s, media basically dominated in terms of performance the consumer discretionary sector of late, three to five years, it's been a laggard area

disney is the opportunity, i think. >> when you see disney as being the opportunity and you overplay it with the rest of the sector and the rest of the space, do you see that they might go up together and disney might outperform but nonetheless the whole sector can move higher >> well, there's also not sort of a spin to this, but this might just be a heads you win, tails you win. if the market keeps going, disney trading at 16 times 21 for the market, and indeed it is the opposite, if the market falters, those defensive characters might just hold up. >> my technician friend, did netflix do what it needed to do on a technical base. traded down to 305ish, that april level we exploded from it's been off to the races since? >> say no more. >> did you see how excited he got? >> his eyes lit up >> came down, and showing relatively performance where it needs to >> all right so on your charts i see your cup and handle, which okay i guess

that's great is that in any market, flat market, or is there any kind of caveat that you have for that chart to continue higher >> sure. reversal formations. how things tops out or bottoms out. a stock comes to life, falters, goes back to level and falters again, but falters in a more shallow way. that's the cup and then the handle ultimately what it is, we're probing those highs. the longer you spend at a high the more tension there is to exceed it. people who have gotten their money back are now out of the market. >> longer in space, higher in outer space. >> higher in space come on. poor louise, i hope she's not listening to you. >> of course she is. >> do you like disney? >> i'm long disney when he said heads you win, tails you win. is that what you aid are you still here okay, he's still here. >> did you say thank you, carter

worth. >> thank you for being here. excellent stuff. my view is disney bringing the whole sector up. disney was the multiple everyone else traded off of disney i16 times if you believe it's worth a 16 times multiple, you start to say the rest of the sector will retake those multiples they lost a year and a half ago. i think they do and i think that comcast chart does. >> karen. >> i like cbs. i've liked it since all of the controversy started and i think it is possible we could see a deal >> discovery communications. quickly, we started talking about that stock, it was $24, $31.50 now seeking alpha, delivering alpha -- >> delivering alpha. >> thank you that was an idea that day. >> the cnbc conference. >> that's what i said. >> it's hard for me. i'm getting older, i forget things i dig carter worth, by the way >> head over to cnbc.com for more i'm melissa lee. you're watching "fast money" on

cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." the stock market just had a major shakeup and we'll tell you what it could mean for your portfolio and why it might mean it's time to make a trade. plus, wall street has got a new pot dealer as the cannabis craze heats up, we'll tell you which firms are raking in the cash on hot pot ipos, and the names that should be on your radar 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.

welcome back to "fast money. energy is booming. it's not only the best performing sector today, it's one of the best performing sectors in the last month. let's get to dom for the details. >> high energy, melissa, that's one way to describe it from oil prices to the energy-related stocks that make their living off of that oil, it's jockeying with health care right now and industrials to be the best performing sector in the s&p 500 over the last one month. and while there are many factors at play on the macro side and

the mike ocrow side of things, wti prices are up and with that move in underlying oil prices, no surprise that oil and gas exploration companies are some of the outsize beneficiaries as well as the bigger, well-known integrated oil place those are the outperformers. conoco phillips has gained around 6%. marathon up 8% or exxonmobil gained over 8% as well you've got a fellow e & p company, apache, up 9% plus and hes is up nearly 11% some investors really worry about signs of slowing economic growth in emerging markets at the same time, opec has said it won't be boosting output and sanctions further crimp that supply so momentum has been there and we'll see if it stays that way back over to you. >> dom, thanks time to bring back a fan

favorite >> what have you got >> trade it or fade it these energy high flyers the game is simple and doesn't even need an spla snaexplanatio. >> but explain it. >> tim, we start with you. >> trade it or fade it >> trade it. look, marathon oil to me is the name -- it's a company on the production side i think has gotten within their own budget the cap ex is certainly under control. all the analyst models are $68, $69. you know where we are. the average for 2018 is getting well above that. stay in this name. >> they have all had a pretty good move here, so it depends for me if the overall market sells off, i think people will run into this to buy the laggards so it can go either way here but i would say trade it >> thank you, guy. >> are you asking me >> mro. >> i don't know if we power

pitched this a while back. you know that thing we do at the smartboard but i think it was one of the names. we talk about levered oil plays and tim has been on this as well, being the play i think marathon works 100%. i think apache does as well. neither one of those will be my trade it or fade it, but i'm along with tim so if you want to hit the ding bell, do that. >> grasso is up next conoco phillips, trade it or fade it? >> this one is overbought. i think you're going to back off a lot of these numbers so, yes, fade it. crude is basically caught in this marketplace between 65 and 75, trying to break out. i think it will run into resistance and the subsector will run into resistance this one on rsi, relative strength index, is overbought. >> you're speaking tim's language. >> i love the rsi. >> you love the rsi. >> in general. i love referencing the rsi i also think rsis can have a heavier weight than they deserve.

conocophillips has been selling off assets extstrategically over the last five years. i stay trade it. ding >> there you go. karen is up next hess, trade it or fade it? >> i'm going to fade it, which isn't really -- it isn't in any way a knock on hess. am i what? >> are you a giants fan? it's a reference to the jets. >> yeah, yeah, it's hard to be a giants fan anyway, so -- you know, i'd just be chasing it to the top right here i understand the underpinnings of why we have an oil rally but it's not crazy for some of those underpinnings to go away and this will go with it balance sheet is in great shape but i would fade it. >> so would you basically fade every single name we are talking about? >> yes it doesn't mean i'd short them >> you're going to be fading. >> i am. yeah >> it's important to know. >> yes. >> again, i disagree because i

think what's happened in especially the e and p -- >> you can't disagree that i don't want to be long oil. you can disagree -- >> why would i do that you just made that very clear. >> you can disagree that being long oim is the right thing to do or not. >> i just think that the oil sector is being run for equity investors very differently than it was two or three years ago where it was grow the aaat all s next up, guy, we put guy last so he can observe how this game is played and then play it himself accordingto the rules. we have the handbook ready too. >> because there's so many games now. there's like a rule book. >> there is a rule book and there are bylaws too exxonmobil, trade it or fade it? >> trade it. i'll tell you why. now, exxon has been in a four-year downtrend going back to july of 201$75. they have grown into their valuation, only trades about

15.5 times forward earnings and probably have close to 20% eps growth if we could magically get above $90, i think this is off to the races and absolutely makes a run to all-time highs. i say trade it, ding it again if you want, mel. >> i agree with guy but i say fade it. it's rallied back aggressively this one is overbought on an rsi as well. running it to resistance around that $89 level this is where i think you have to sell the stock because it really does nothing when it gets to this level. >> does the 3.8% defensive dengdeng -- dividend -- >> it's like a cherry on top of a sundae which i haven't had in quite some time. cherry val ans and the outsiders one of the diane lange's best role. as oil rallies, mike is in

san francisco to break it all down. >> so we did see some bearish options activities in all of the airlines and the moef active was aal, american airlines the most active option were the october 41 puts, over 1100 of those traded for an average of 55 cents biers of those puts are making bearish bets that it could call below the $41 strike price that would be a decline of 5% or so within the next 25 days, which is where october expiration is. of course also as you start to see an increase in volatility in crude, in the energy complex, you're similarly going to see increases in volatility on the airlines because it can represent anywhere from 20% to 30% of the total operating cost. >> mike, thanks. for more options action check out the full show friday at 5:30 p.m. eastern time. still ahead, wall street is going crazy for cannabis we'll tell you how to weed out the winners and the losers. plus a major market shift

happening as facebook, alphabet, disney enter the new communications sector. grasso will break it down. much more "fast" right after this see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer.

at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! & you could send him a coupon for that item. not long ago, ronda started here. and then, more jobs began to appear. these techs in a lab. this builder in a hardhat... ...the welders and electricians who do all of that. the diner staffed up 'cause they all needed lunch. teachers... doctors... jobs grew a bunch. what started with one job spread all around. because each job in energy creates many more in this town. energy lives here.

welcome back to "fast money. it looks like the cannabis craze is about to get even hotter thanks to a number of banks working to drive upcoming deals and ipos in the space.

leslie is here to tell us who the biggest pot dealers are and how they can shake up the cannabis market. >> even though shareholders are giving back their gains, there's one group that appears to be capitalizing on the cannabis industry, the drug dealers no, not that kind of a drug dealer, i'm talking about the banks advising on all the demale making in the industry about half a billion dollars has been raised and nearly $8 billion in m & a has been inked. our neighbors to the north don't usually appear on the lead table's advisers, those are typically occupied by goldman sachs and jpmorgan but when it comes to the cannabis industry, canadian banks rank higher. while it's not illegal for u.s. firms to participate in these deals per se, the fact that pot is legal on a federal level in

canada makes it easier for their banks to participate that's according to harrison phillips which advises the pot industry >> the rules as they stand today play in the favor of canadian operators and institutions, investment banks included. so rather than for operators and investors trying to price the risk of federal illegality, they have moved to the capital markets that are more favorable to this space. >> don't expect this deal flow to slow down any time soon aurora spun off astralis capital. there's an ipo next year denver-based m. jardin is expected to go public in canada through a reverse merger >> leslie, thank you leslie picker back at headquarters could this possible incoming flood of pot ipos spread out some of the money investors are pouring into these hot stocks or is there more room torun here. the thinking before, tim, is there is something embedded in

the valuation to the u.s. listed stocks. >> right. >> because they are u.s. listed versus canadian listed an it's not within some charters to invest in canadian stocks for institutional investors. >> you've opened that up to u.s. investors and the biggest e best way for investors to really approach it, i would look at three different things first of all, right now i think there's major what's called deal disruption so there's heavy, heavy -- i wouldn't say it's fatigue, but i know of 25 to 30 deals coming in the next month or so, and i think this is something that would continue to be an issue for investors. i think yesterday's price action is not tomorrow's price action you've had a major move in the sector and investors that think they're all going to go up, the dedicated guys are rotating out and there's dedicated money and crossover money. i think we spend more time seeing what the crossover money does to the u.s. market. second stock technicals. it's very important to understand what are you investing. what's the size of the issue,

where is it trading? is it trading in canada, is it trading here a lot of these stocks also eventually trade in the pink sheets which is the over-the-counter market. i would warn investors that those markets are less transparent, there's less volume there and potentially more volatility, even though the pink sheets for these have been a very robust place to play. and the fundamentals for these names. understand has this company been in business before, are they making money do they suddenly slap a cannabis tag on their name and get a different alignment. >> luke a block chain -- >> i would just say it's a hot sector and i've seen this in the biopharma space. a lot of companies that could make an argument they soon will be in cannabis i've watched two, three, $5 billion companies have big rocketships in the last two weeks. i think you have to be very careful. finally, i don't know if we have these charts looking at the entire sector, but if you look at the sector, the bottom line is it's had a major, major run if you look at a global cannabis

index, those guys do a lot of work this is a global index you can see basically since that constellation deal, the entire sector is up over 40%. so for investors that think it's going to be the same move over the next three or four months, i think you have to be very careful. again, what makes up an index? that's changing every single day. the good news for folks is that you're getting a little bit more of a peripheral wider -- it's not just production, but it's the brands, it's the packaging, it's the over parts of the sector that are very exciting. >> do you think that this an sl - onslaught of ipos -- how many of them will get done >> i think they will all get done or most of them will get done, especially if it's a real company with real financials a lot of these companies have been waiting for this moment >> i think the marketplace has a lot of room to grow here and it has a lot of room for all the players to be successful you have a lot of beverage

companies that still need to be disrupted or find counterparts you have the cosmetic industry that still needs to find some counterparts i'll still long canopy and kronos i think tilray is probably a buy again. >> gw pharma, i think we did a power pitch for that sucker a year or so ago why are you making a face? >> just 15 minutes ago we told you it was fast pitch and not power pitch. >> it's probably gotten a little ahead of itself. morgan stanley just resumed coverage this group is going up gw pharma is a name, slow and steady wins the race if you want to be in the game, this is the one, i think. still ahead, it is the new face of media. the market getting a makeover as facebook and netflix enter the communications sector. we'll tell you what it means for your portfolio. plus, check out this stock hittingits lowest level in a decade down more than 50% from its

52-week high can you guess what it is the answer when we return. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...

in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. there is a chance that's the last time.

300 miles per hour, that's where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me retirement is protected. annuities can provide protected income for life. learn more at retireyourrisk.org welcome back to "fast money. there's a new bundle of joy and it's the communications services sector how did this happen? what does it mean for your portfolio? steve grasso is over at the plaza with the more you know steve. >> this is the way it looks right now. you have technology and you have consumer discretionary you used to have this telcom index. this is what is in there right

now, not real sexy how is it going to change? all of these companies will get to pick to see who they want in here they have already done that. this is what it looks like now so you've got alphabet, you've got facebook, which is coming over here. activision blizzard, electronic arts not only are they going to grab all these names but they're going to grab your traditional media stocks here as well, so cbs, disney comes over and now this is what the major shakeup is netflix is going to be over here as well. you have alphabet, you have netflix, you have all these growthy names. this sort of gives you your tech base here. now, what does technology look like after we leave it apple goes from basically a 15 weighting to a 20% weighting in the consumer discretionary, amazon which used to be 27% weighting, 35 now. mcdonald's, nike, those seem obvious to leave in consumer discretionary. what doesn't seem obvious is why

would this and this be together, centurylink and alphabet they wanted to get your traditional safety bets and your growthy names and your technology and your media and they wanted to make this a little more attractive i think that's going to be the main purpose of this, because you want to get people into that sector communication sector right now is going to be the fifth largest, so you're going to have a couple ahead of it it's basically going to be tied with the discretionary index as your largest sector. but the telcom space will be the billinge biggest recipient. indirect funds, what's going to go in there? safety bets. they already get those now you're going to have everyone that's looking to buy that might be constrained on buying individual stocks that wants access or exposure to netflix along with verizon, verizon and the telcoms will be the biggest recipients of indirect order flow in this space. >> karen has a question for you. >> so how much money is there that's going to need to be indexed through the way these

new three shake out and how much could that potentially move some of the players in those different spaces >> it's a great question i don't think anyone knows the answer yet because you don't know how these funds are going to trade around it so all these index funds, the vanguards and black rocks, we don't know how they'll change internally or how the pension funds will change in their holdings, so it remains to be seen. i don't think it's going to upset the cart that much, but you could see this new space garner a lot of attention. >> thanks for that coming up, this is the worst performing s&p stock over the last year. it just hit its lowest level in nine years and chances are you own it do you know what it is plus cnbc's jim cramer sitting down with jamie dimon earlier today and he said something that has karen all hot and bothered >> hey, hey, hey mes e're live at the nasdaq in tisquare much more "fast money" still ahead.

♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. (guard) i've seen things unnatural things. these people they don't sleep... like ever. they reveal in extremes and defy limitations. these pursuits may seem unnecessary. but the scariest thing i can imagine is a world where this,

doesn't exist.

designed to save you money. wireless network even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. welcome back to "fast money. cnbc's jim cramer sitting down for an exclusive interview with jamie dimon earlier today. dimon getting candid from everything about his stock to a run for office but it's something that he said

about buybacks that had karen hot and bothered so we're going to play not so fast. we're going to play a clip of the interview and whenever karen feels so inclined she'll say not so fast and she'll elaborate on dimon's point. are you ready, karen >> of course i'm ready to watch jamie dimon. >> roll the tape. >> growing our business is far better for the economy right now we don't have a lot of choices, but over time i would prefer not to buy back stock i also don't buy this argument that it's bad. buying back stock is simply giving it back to you, the investor, who redeploys it to a better use >> not so fast not so fast. not so fast. let me talk to you a second here on buybacks. first of all, it's not just giving the money back to the investor, to someone who sells it, it's more that you're buying back your own stock. if you think, as you said, we don't have so many choices right now, what better is there to do with your money than buy back your own stock

during the ccar results during the summer, you chose to buy back less as a percentage of your market cap than citibank or bank of america. for all of you guys, every share that you bought back since then has been a good buy. in fact every repurchase you've ever made over the life of the company has been a good buy. so i'm not really agreeing with you on the buybacks there. but you know what, let's fast forward a little more. >> nice. >> i have not spoken to the president. >> you haven't >> but again, my main mistake, i shouldn't have yapped like that and some of you mentioned on tv. but i do want to focus on policy so my view is let's just focus on policy. i shouldn't have been taking shots and having jokes at anyone's expense i've said a lot of stupid things in my life >> not so fast there london where we lost some real money. they did lose a lot of money, but one of the things that i like best about jamie dimon as a

ceo is when he makes a mistake or does something stupid, he calls himself out. so on that conference call someone asked are we going to see other banks take writedowns the way you did? and he said if you're asking if they're as stupid as we are, i don't know on another call he said we made a mistake and sometimes we're going to step in dog doo, that wasn't the term he used but we're going to try not to do that very often. so i love when a ceo owns up to mistakes he's attractive with or without the mistakes, but calling them out is i think one of the best things about him and it makes -- i think it makes for a very good ceo and makes for credibility and little hearts and happy investors and i've been a jpmorgan investor for a long, long time. >> is that how you feel about the stock? >> that's how i feel about jamie and i'm long it's hard to separate the two. >> catch more of jim's exclusive interview on "mad money" at the top of the hour. coming up, it's our mystery chart of the hour. this stock hitting its lowest

level in nearly a decade do younowh iis he e answer, next can speak to the future. ♪ ♪ i'm going to be your substitute teacher. don't assume the substitute teacher has nothing to offer... 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. ♪ ♪ you get to create the room where it happens. ♪ ♪ just don't think you have to do it alone. ♪ ♪ the powerful backing of american express. don't live life without it. when you rent from national... it's kind of like playing your own version of best ball. because here, you can choose any car in the aisle, even if it's a better car class than the one you reserved. so no matter what, you're guaranteed to have a perfect drive. [laughter] (vo) go national. go like a pro.

see what i did there? that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flights for us. so i'm more than confident.

kayak. search one and done. ♪ introducing the all-new corolla hatchback. toyota. let's go places. welcome back to "fast money. " time to reveal our mystery chart. what stock is down more than 53% today, trading at its lowest level since july 2009? if you guessed ge, general electric, you are right. what would you do with ge heere? >> i think you stay with it. every friday at 5:30 you do

options action a few weeks ago i was allowed to grace that show. we did a tag team and ge was trading 13.5 and we talked about putting on a negative, a bearish position and it worked out quite well i still think the path of least resistance is lower. again, if ge can't rally on the tape that we've seen, when is it going to rally >> are you still long? >> i've got a hold position. i think some of the parts of this company still make sense so what i have left, i'm staying in. final trade time tim, what do you say >> we talked about energy stocks chesapeake is one of those that's a recovery story. i think the balance sheet continues to get better and better that's i'm long in i'm long here. >> doo coors, which i sadly own- >> kors. >> i love coors light, my favorite beer. >> overdone on this rumor for

the versace deal which could happen but i think it got knocked up over it. >> grasso. >> menard's had incredible headwinds. earnings october 3rd i'm still long. >> jamie dimon is dreamy, as is discovery communications. tt est for us here. see you5:00. for more "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 some money. my job isn't just to entertain but to educate and teach you, so call me at 1-800-743-cnbc. or tweet me @jimcramer on wall street the two most dreaded words in the english language are long and term