>> prime minister theresa may makes the final speech at the conservative party confirmation at 5:00 a.m. ebrahim time and the pound going down to a 3-weekly. >> more dollar strength. >> more dollar strength as well. >> big theme for urngs >> the euro was weak today that does it for the ol "closing bell." >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site, overlooking new york city's times square. melissa lee your traders on the nengt tim seymour. karen finer minnesota the nathan and guy adami. stocks are soaring but another bull run that no one is talking about that could be the best trade. the top technician breaks town the breakout from the breakout to breakdown more bad news to facebook and the stock down 9% in the past month. it suddenly happening today that could spell more main. we tell but it but first the rally dow surging to all-time high up 8% this

year intel and caterpillar leading. the phantom of inflation is creeping in. ooh. >> scarey now. >> amazon hiking wages pepsi raising prices and this as companies deal with higher input costs. retail and restaurant stocks got nailed today check out the moves macy, nike, best buy all down today. to the question, fellow long people two-part question is just a retail problem or is a it a bangor sign for the broader markets. >> guy what's the first part just the retail problem or broader warning sign. >> vrkd. >> i saw phantom of the opera when it came out. >> i'm sure you did. part one >> i could break into song is it a retail problem np retailers on a huge ruin macy's nordstrom mm nordstrom went to 64 giving some back. in retail it's a back and fill off the overextended move to the

upside think about this if the consumer is 73% of our economy and if the consumer starts to feel strapped in the form of higher prices, that could potentially derail the market but i'll say this i thought we wanted higher inphrasing i thought the fed was asking for that the last six or seven years. instead of saying does it derail the mathematic we should say it's a sign of a great economy. >> but if you extrapolate the inflation that gives the fed more power more impetus and if that is the fear in the market as an investor then you got it. >> you have fed funds at 2%. inflation at 2%. where are we on interest rates tp still at zero that's the issue the fed gets on the horse raise in dies and then they affirm the fact that they're going to raise three times in december that's the question how does the market deal with that as far as the wage inflation is concerned we know that real wages adjusted for inflation aren't really rising if you take it back around and say if there is not more money the skourm has to spend at retailers but retailer expenses are going up in the form of

higher wages then you are in a margin situation which is tough for the retail stocks. >> higher wages and also the impact of tariffs. i mean if they have to pay higher prices because of tariffs they either pass the cost to the consumer or will eat the cost. >> right same with wages pass it on or they'll eat the cost. >> yes. >> two things to contend with. >> we see higher wages, right, that's pressure on retailers who have labor as one of the line items in the income statement. but we haven't seen them yet see if they have any pricing power that hasn't started particularly in restaurants they've been hesitant to raise prices but we are going to start seeing that i think that obviously adds to inflationary sort of spiral upward i'm not so afraid of a general trajectory of inflation upward i'm -- you know, it's the frog in the boiling water thing i'm not afraid of the fed continuing to raise. if they raise next time and three raises -- i'm not afraid

of that. >> so long as the frog is in the water in the water as it's boiling as opposed to toss going in once it's boiled. animal lovers please don't email us this is just a metaphor. >> we start the show with the metaphor i wouldn't have known how to game. i don't know about the frog and the water. but europe printed 2.4 on cpi they have inflation around the world and we get in here the one thing about the trade tariffs su haven't seen one i oata of tariff in anything you buy. you think about it why is the market not responding? because the market hasn't seen any data so why is the xrt down 7.57% in the last 28 sessions or so it's not just because we woke up and said there is going to be inflation. i also just think this is rotation it's the start of a new quarter. these things had run, run. you see the whole thing momentum versus value you see were people coming on our show or were reading strategist reports, this is part of where people are going right now. so to say that the market is down and that xrt and restaurants are in trouble,

suddenly, i'm not so sure. >> okay. at the same time, i mean, is this the reason to rotate out of consumer discretionary out of retail because of when i was of inflation we are get sng we haven't seen the impact of the tariffs on anything we buy yet. but it's come. and we might have tariffs on every item from china. at that point, does that mean -- not only is retail an outperforming sector compared to broader markets, but is this another reason to sell in. >> i think so. in terms of retailers yes, retailers over the last -- i mentioned nordstrom, mention it again. you have had upper left to lower right. the stock is going down the last five, six years. within the time frame you have seen moved up to the significant portion others proportions that's what we saw the last couple weeks now it gives it back they will continue to give notifies to the upside back until we get back to earnings releases in three or so weeks. yes you sell the retailers.

>> can i push back so we have the wage increase now. rnltd these the people who received the wage increases? aren't they shop ertzers don't they have more disposable to income to spend. to me we could look at a strong holiday season the next three months we could see strong consumer discretionary spending >> what we are talking about is is that you see wage inflation but we see the effect of tariffs. they counter each other out. and consumer confidence printed at an 18 year high that's kind of backward looking. he when we. >> insanity coincident. >> you see the housing market specifically challenged. the auto market looks like in shambles looking at the groups of stocks you say my goodness both at 52-week lows look at the underperformance in the bank stocks. they are supposed tgts the growth from the lending. but if housesing and autos are

strain where do they about get it. >> higher interest rates cause the consumer to pay more in interest you have a consumer whose wages increase, may offset the higher prices at the store but does that also -- does that also offset higher interest payments on their mortgages and on credit cards, auto loans, student loans et cetera. >> that's as big of an issue as it's higher rates. the variable loans are out there for took arms or credit cards -- not everybody is rotating credit cards and playing that game. i mean a lot of people feel this again look at aerials. airlines selling because of oil price sns is it another feed through? i think yes we have inflation. and -- but these forces didn't just pop up yesterday. i think we have been talking about them a long time and i think the labor costs are very significant. that's the most important thing the fed looks at i think what we have seen in the last two days is some extreme rotation and that is something that actually i agree with karen, i

think the fourth quarter, the consumer is going to be alive and well in the holiday season on difficult comps but not falling off the map. >> what do we want to be in. >> energy. >> if you are concerned about retail. >> i want to be in energy. and again, i think it's a function of the companies that have been much more efficient on the capital allocation run for equity shareholders i like the. >> -- >> you look at xly, the etf tracking retail. amazon is 24% of the etf and up 657% and trillion dollar market cap. when we look to it xly you don't see the performance you think when you x out amazon. that's not good for the rest of retail i would look at more staples and call thatted media and at&t and disney about to break out to new highs and at&t has been a huge laggard to verizon as get more process about the

time warm warnerer. >> and i'll say this quick you know, don't underestimate the u.s. consumer want to spend. the u.s. consumer as long as they feel good about things. and to me is the stock market going up every day people feeling richer whether they are or not they spend money. but consumer debt is gdp north the balance sheets don't expect they are in good shape as much as they had like to think they are. >> what kind of asset allocation do you want a in rice rooing rate environment real estate don't do well. the market if we see it doesn't do well pl to me something like sotheby abticker bid, art is an interesting place to alokate in the upper end. >> what do we see in terms of the rise of utilities and staple, the things with dividend yield that shouldn't do well in the rising rate environment. >> i think people are looking for yield proxy mris but i was also going to bring up how about the move in gold

gold woke up out of a slumaner the last couple days that's remarkable gold has had so many opportunities to pick spots. >> is that confirmation that inflation is here. >> like, i'm not saying any couple day move on gold means anything but i think gold is not followed through on the moves but this is interesting. >> coming up microsoft unveiling three new sfrps defines devices moments we have the first look. plus a bull market no one is talking about. if you lag the market it could be your best chance to kauch cap up we tell what you it is and why one technician is so excited jobs are plentiful, the trade wars war appears to be fading. why are auto stocks hitting 52-week lows today we have the answer ant other group of stocks that could follow suit. live at the nasdaq market site in new york city's times square. more "fast money" right after that

welcome back to "fast money. we have a news alert on microsoft unveil through new devices. let's get to josh lipton in san francisco with the details hi, josh. >> melissa, ner doubling down on high-end hard which are. premium head phones called surface head phones for $349 available later this year which

the company says offers rich audio, hands free calling annoys cancellation with courtena built in what's interesting here is how microsoft is positionening this product. another way the company is saying to read emails and kick-off conference calls. kind of emphasizing a product for the home and office. microsoft also unveiling today a number of new surface devices. remember in the most recent quarter the company told us surface revenue jumped 25% to $1.2 billion now we have surface pro six starting at $899 competing with apple's i pad pro and deattachable from hb and tell. also the surface laptop ii starting at $999 and surface studio 2 starting at $3499. tech analysts patrick morehead says this isn't just about selling hardware it's also about the company highlighting software and services from window's 10 the next version of which was

announced today to office 365. in fact new service microsoft just introduced points to the strategy it's called surface all access, the option of paying monthly for the surface product of your kmois start agent 24.99 per month complete with office 365 is your substripgs for more on the news check out the interview tomorrow with microsoft's yusuf medi on squawk on the street. >> josh? san francisco. i'll go to dan who coined a maga. >> m is more microsoft is maga. >> microsoft, apple, google, amtzen here is the think i think morehead had a great point what they are trying to do the hardware is create a ecosystem like apple when you think about $1.1 billion in sales. including gaming in the last quarter, a total of $30 billion in sales, $110 billion on the last year. it's a rounding error it doesn't make allocate of sense for -- i

love the liptaking reporting it's important they are trying to capture what apple does with maybe $5 billion a quarter in ipad sales. it doesn't seem that relevant though. >> the knock on noirkts has been incorrectly has been valuation close to 24 times next year's numbers. you low back at mrj marlana rns. they are getting better. 34% operating margins last quarter. a 34.5 she was looking for 42 o 32.9. as long as margins improve you don't look at valuation. i'm with tag tan on the maga you should get hats made. >> what color. >> red obviously. >> anyway. but it's amazing that dan with cutter the initials. i would say in erms it of the azure business growing big office continuing growing. the gaming said is extraordinary. this is a $10 billion gaming company. the comps are tough. the valuation is not easy here

i don't see a major fall off but if you see tech take a bath why wouldn't people take profits in the expensive stock. >> it's interesting, the product, the surface, i don't know if you ever used a surface, they're really good. but it almost doesn't matter i mean like to dan's point doesn't move the needle. the zune was great too. >> the what. >> the zune it was an. >> --? >> in last quarter the surface revenue group are grew 25% year over year. think about how fast it has to grow to make any impact. >> right as a percentage of its own enrevenue. >> they shouldn't nb hardware other than gaming. >> microsoft announced what it means more the stock head over to the website you're waives first on cnbc. in the meantime here is what's coming up on fast ♪ all by myself. >> announcer: it's been a tough month and year for facebook investors. and something happened today

that could lead to more pain we will explain. plus it's the bull market no one is talking about but it could be your best tradehead heading hein t fourth quarter. we tell what you it is when "fast money" returns trust that't for our clients, without the constraints imposed by the traditional brokerage houses. transparency in the way we're compensated. our philosophy is one of service, not sales... that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org.

welcome back to "fast money. while investors have been cashing in on new highs in the u.s. there's another major bull market run you might have missed bob pisani at the nyse to break it down. >> good to see you, japan's blue chip nikkei 225 stock average soared the highest level in almost 25 years. what's going on? first and most importantly, the domestic economy in japan is showing more signs of life and that's translating into

higher corporate profits that's the number within story here you can see that in the performance of consumer names, domestic names, takar holdsing in beverages and mood and printing supplies up 5 a% in a month. family mart, the second largest convenient store franchise after 7-eleven up 20%. the soy sauce company is up 19%. the exporters. you have a stronger u.s. kpee and you have a weaker currency so the yen is near the lowest level against the dollar in almost a year. that makes exports more profitable look conglomerates like mitsubishi up 13%. sony up 18%. boaten up auto stocks honda, toyota have come off lows in the last month also remember as part of the stimulus program the bank of japan has been buying japanese stocks through etfs. so the state itself has been a

regular buyer of stocks for a while now. now, still, i encourage you don't get too excited about this the nikkei is still only up 6% this year. it's notably underperforming the s&p, up 9% while this sounds wonderful to say it's a 27-year high in the nikkei, the nikkei hit the all-time high in 1989. it's still 40% below that historic high. talk about a loss, three decades. japan still hasn't recovered from the stock and real estate bubble that burts in 1990. the big issue is this will the average japanese household which has bought bonds but not much stock in the last 30 years, will the average household sit up and take notice of the new highs and really get a rally going maybe back to the 1989 high sns that's what i can't answer, though back to you melissa. >> thanks, bob bob at the new york stock exchange tim is there a fundamental story behind the recent pickup. >> there is. earnings get better.

it trades probably 20% cheaper to europe. trading 20% cheap to the s&p valuation it you look at big markets and underperformance 6% relevant i have to the s&p makes sense. the whole approach to capital allocation and paying out higher defends and giving back to investors you have to watch the yen. because if the yen appreciates you'll see a lot of pressure in japan. right now let yen has been slowly weakening against the dollar. >> but central banks overstepping bounds. should the bank of japan buy securities. >> everybody else is. >> when does it stop is the question and how does it end yell. >> yields are backing pup see the good news and bad news japan wants to see a little bit of inflation abe is trying to do that with throwing everything and kitchen sink >> and buy why shares if yields are moving isn't that sort of fuel in the- dsh. >> wouldn't you buy more stocks if you think bonds are backing up. >> if you are the government. >> if i'm the government. >> what what's my question, sorry. >> if you are looking to stoke the flames, right, at some so

point you want to pull become. you're saying not yet. >> yeah, i think the -- did i think they want to see more inflation than they have now i do think that the move in japanese jgb yields is something people should watch. >> tim seems defensive. >> i'm always. >> takes one to no one. >> are you long japan in any. >> you say. >> i own some exporters that have a lot of exposure to japan. >> you're the puppet. >> what are you talking about. >> what's going on here. >> it's a big psych. >> i'm sitting here minding my own business. >> share with the rest of the world. but anyway moving on for more on the japan amazing ron off the charts with chris veren of our strategic research partner attention breaking it down. >> we agree this is the strongest bull market out there that's not being talked about. we brought along a couple charts here is nikkei over the last couple of years. let's remember, japan's basically been consolidating

much of the year, getting up through 24,000 recently, really important breakout we ut it in context we have the great upfriend and then internally every time we get an expansion in new highs, the rally continues. we had about 40% of the nikkei make a three-month high this woke that's a bullish internal signal but put going in context of the longer term picture here this is japan over the last 30 plus years as we know, peaked in 1989 at 39,000 bottomed in 2009 at 7,000. and we have this massive 20-year base every rally the last 30 years failed at lower highs, except the last it two. we now have higher highs this is a major change of trend. importantly when we consider japan versus the rest of the world, this is nikkei versus rest of world ex-u.s., making multiyear relative price highs

you get paid in absolute and relative terms how does it rank relative to other markets? as we mentionedive s&p up here 9% year-to-date. but japan now up 7, catching up. em till down 10% this year japan is one of the strongest bull markets here not getting enough attention we like the internals, the fact that it's reemerges as leadership. >> chis comes over. >> has to. >> please stephanie brings the chair in yes free kelly all right. >> welcome. >> chris, would you rather >> oh. >> favorite game. >> the nikkei or the apnea 500. >> the right here i could give more to the nikkei. >> really. >> >> looking over the next couple years we are making a call here, i think you're going to have japan challenge the old highs from '89 it's all about tina. ten aire has moved it was a u.s. story the last 7 or eight years it's moved to japan.

earnings yield in jpen 6%. dividend yield 2%. jbgbs, 13 basis points. >> can china fall apart and japan ralphs >> think back to 2014, 2015, 2016 nikkei went down 35% that hasn't happened here. either one of two things is happening. japan is decoupling from rest of world or the slowdown in china is maybe not as bad as we think. i think that's a important message to tim you talk about jgbs they are going up here. >> yeah. >> this is a kind of rate rotation type trade as well praying out in japan. >> chris, if china is falling apart but the nikkei can still rally could the opposite be true at some point? could we see em emerge being markets, pretty heavily china could that be pulled up by the emerge be -- well actually some more you know. >> i think certainly tactically there is a trade-in em if you think about where in the calendar beta shorts don't work from october through january and em

is a beta call you have the calendar becoming part of a tailened story you only have 25% of emerging market left above the 200 had hi-day mofls average we have seen them bottom there in the past. look at bell rgt cart pilar making six month high copper off the best week in two and a half years np em might be a trade. >> there are there sector within japanese stocks or specific stocks you like. >> think about japan as a very top heavy index. two largest weights in the nikkei are fast retailing and softbank both breaking out with 10 years bases. japanese affirm aire reskrermted and railroad skrermted and the banks are acting better. >> what are you seeing in terms of flow of funds capital allocatesed away from the u.s. and towards japanen and other markets. >> i think one of the calls here is the contrarien nature of the ka call.

it's hard to get people excited about japanese stocks. certainly hard to get excited about em we have seen massive outflows in the last three months you are in the third% tile of all brookss that's a contrarien did it point where you tend to get post-response. >> is the catch juch trade in the fourth quarter -- it's a would you rather rather. >> wow. >> derivative. >> nikkei, s&p 50 or or em. >> at the end of the day we want to own leadership and nikkei s&p is still leadership relative to em. >> but then you said nikkei over the u.s. >> yes. >> nikkei of the three choices is the best trade into the year. >> nikkei is where where we are. >> chris of strategy ohs. >> would you rather rather. >> it's confusing. >> we played it a million times. why is it that confusing choose one of three? is that more clear to you. >> yeah, 50% more to choose from see the math i did. >> what would you choose. >> interesting you say that.

>> yes. >> can i play may own set of rules? >> eem started the year at 25.5 or so a series of lower lows and lower highs. that continuing if you to buy it you buy it on the break out you try to buy the bottom. the would you rather rather it's eem on the breakout above 45. >> all right still ahead more problems for mark zurek rk and has facebook investors on the brink could be about to get worse we will explain, plus how far is car heaven maybe further than you think. farther than you think actually. despite the perfect environment the stocks sell f.of we explain the car conundrum

money. there is a changing of the guard growing in the digital ad space that could be trouble for tech insanity giants. amazesenen a at&t growing footing in ad space gaining in on the likes of facebook abgoogle as they face scrutiny jowlia boorstin has more on the story at ad week. >> melissa, with facebook here aapologizing for the latest in the string of stumbles, agencies and brands at advertising week are looking at other ways to reach consumers. amazon projected by emarketer to become the third largest digital

ad platform this year behind facebook and google. it's reportedly working on a free ad video service that can announce this woke amazon is one of the new options in focus for the ceo of ad conglmt ipg. >> amazon is obviously a critical new player in the business hulu, spotify, amazon prime, these are all ways to communicate with the consumer that's other than facebook and google and frankly, we view that as a positive in that we have options to present our clients with in terms of how they reach the consumer >> another alternate toef facebook and google which come natures 58% of u.s. digital ad dollars, xander, the at&t ad tech company boasting the premium brands of content and it reaches 170 million direct to consumer relationships >> xandr is an important step for at&t bringing to what randall stevenson when they made

the acquisition of time warner now warner medium. it was in part about advanced analytics and opportunities. >> in response to digital options from content companies facebook and google offer more premium content options to reassure advertisers about their brand safety that they won't be placed next to fake news melissa, back to you. >> julia thanks. and among the old guard names mule julia mentioned none is in hotter water than facebook in the past year the social media giant faced a seemingly never ending road of controversy. so this when wiek they when they nounsed 50 million accounts faskted eu the security breech the stock down 6% from a year ago. what's wrong with facebook can they fix problems at this point? karen you've been a shareholder. been holding on. you see value in the stock at what point do you say, you know, the shoes keep dropping. >> probably around the low right before he went to the hill to

testify. i mean, for me at some point you say all right i'm willing to have it down x% and that's all i'm going to lose. maybe i buy puts it's been disaping tim has been all over it correctly to the downside. i mean we will see also we have earnings, the 25th or the 31st. >> 30th i think. >> that would be really important. i'm going to be nervous going into that for sure. >> the point that there is no ternive that there is no alternative in digital advertising. that had been the premises behind the bold thesis for facebook. >> yeah, for short. >> if you want to reach the audience go to facebook. but we talked to the ceo of xandr on squawk box. he was saying westbound be neighbors watching the same channel and the way they have the ads programmed it's so specific according to our interests and our needs that we could be seeing different ads during the same program that's how tailored the offering is

but that's the point maybe there are alternatives. >> a huge alternative has been amazon i think about five years ago i think like i don't know a disproportion knit amount of amazon purchases came through goog now 50% come through their own severance that gives them the opportunity to place ads from merchants and sellers. when you think about it amazon is in the caddo cat bird seat they x add out twitter and snachlt who were the growing platform processes i think you make amaze en making squiks it could be snap they are having $1.1 billion in sale sass. losing money to achieve that and amazon could figure out ways to monetize. >> i think about this is differentpy thp amazon ems use technology and data to sell us stuff that improves the experience facebook is a data broker. my point is good governance of folks that handle your data

and -- and it feskly will produce good shareholder returns. i'm thinking about this as an investor only. i'm thinking about it as what kind of multiple do i put on a company that in addition to the fact that margins will shrink for the guys selling data. because of that. >> is. >> facebook you're saying you are worried about their margins. >> yes. >> i know you've been right about a lot of this online. >> i've been right >> it's interesting. i think your point about the lows from march when zuckerberg was on the hill. they haven't been breached yet estimates have come down dramatically mime i'm not making a pound the table situation. but if they get through the next earnings report and the guidance is what it is and the stock doesn't make 150 i think it's okay at trading 20 times four. process they are expected to grow sales 30% a year even if mrj margins come in investors fully expect that. >> when you say facebook is a data broker and that separates

them they don't sell data but they are a data broker in that they sell the advertising based on data inadvertently they make money off data how is that different from any company other company selling ads based on the data they collect and see that could be amazon, at&t, digital, that could be any of the companies that sell ads based on data. >> when i think about of at&t i think of them as a media company attracting advertisers in the same way anyone that has content and content obviously you then strap ads to it and sell data. amazon to me ultimately is in a case where they use i think the amazesen technology is allowing us to more easily find the stuff that we want i think ultimately advertisers are attached to that but that's a derivative away whereas apple has the great technology and the school stuff that makes us feel better about the products we use. i don't think they're under the same pressure. but i think this is about shareholders needs to understand how management is acting in their behalf or not. >> to dant' point at some point valuation doesn't matter

but carter braks on good looking guy in the corner wearing the jacket we asked if he thought it was breech the levels in march he says yes. there is a chance it prints 150. that's my premises i i never thought it should have gone from 155 to 207 in the first place. price action suggests it continues to move lower. but i think into earnings on the 30th you got to take a shot on the longside. >> still ahead, stitch fix is unraveling, the stock slammed today and could be bad news for another group of stocks. we will explain. plus auto stocks are taking a hit despite the names riding the perfect environment. so what's gone wrong and are these stocks the ultimate value trade or trap we break it down after the break. much "fast money" right after this so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

welcome back to "fast money. the auto stocks under pressure after what was an overall a strong september for sales phil lebeau has the details from chicago. hey, phil. >> melissa, it was a strong september in terms of overall sales rate which is above 17 million. but compared to september of last year where there was the post hurricane harvey rebound in sales, everything looks down relatively speaking year over year look at major auto makers for september. only fiat chris letter posted

positive honda, ford and toyota in comparison with a monster bubble september from last year as for general motors to be, it reported third quarter sales no longer does monthly sales. for the third quarter sales down 11.1%. the other piece of news getting attention today, the tesla and it's quarterly sales as well as production numbers. and on the production side that's probably getting more attention because it's not necessarily deliveries that everyone is focused on but the production, specifically of the model 3. it came in with production of more than 53,000, a little better than expected in terms of deliveries look at how they ramped up deliveries over the last year so when you look at shares of tesla and the model 3 and it continuing to get a lot of attention, keep in mind the company said today, melissa, they are getting hurt by the tariffs in china being put on american built vehicles that are exported to china. that tariff is%. used to be 25 now it's 40% as a result they hope to

expedite funding and construction of a plans. but melissa that takes minimum, minimum 24 months if you are going to build one of those out there. >> so in terms of delivery numbers phil would those reflect at all the impact of the tariff in terms of cars manufactured here shipped to china? or is that the next quarter. >>ed we'd likely see more impact next quarter though i'm trying remember exactly o exactly when in the third quarter that went through. remember quite a few were in transit over to china. and so i think we'd see a bigger impact in the next quarter. >> phil, thanks. phil lebeau in chicago for us. >> it should be car heaven perfect back drop consumer confidence raging. high employment and of course a flourishing economy. why are auto stocks stalled out? how far away is car heaven tim? >> well, i tell what you, i don't know i've been long gm for on and off but i've traded around a bit but

a core procession for a couple of years if. i got rid of 14. "g" trace at five times 2019 if they make 6 times 2019 they have exposure to ev exposure to robo taxis i like the management i stay long. >> i agree but it's the same position -- i stay long. i've been in it a long time. it hasn't worked i've lost money. trades cheaply what else did you say. >> robo taxis. >> all the way down to zero. >> well. >> if you wait long enough at ford it may be zero. >> i don't have ford i like gm. the rate it's going, look, i think this stock -- it's fascinating to me because clearly it's cyclical. passed peak auto passed it some time that's been built in a while. this level -- this story is better than i thought it would be and yet this multiple -- it's not like -- >> this is about the consumer. and you know when you think about it guy said it 73% of the gdp is consumer when you look at what happened in the retail.

>> can i finish. >> i thought you were done. >> let me finish. >> you put a button on it. >> i think what happened was with the earlier story that was sort of how we talked about the average age of cars getting longer so there was that quick demand and that lower that average age i think make it's a little longer. >> theplace arement cycle has not yet. >> i think that was pushed forward. >> okay. >> it doesn't matter it'sa waste of the of time the u.s. auto doesn't matter we have hit peak auto. cyclical like you said now foik on the other things cyclical we have the three groups and retail can be. the fact that everybody and the president is tweeting about this. >> you make it sound like autos are the first domino to fall in the economy that's about to fall. >> it could feel like that it could. >> that's not what we've been saying >> just yesterday. >> i remember yesterday. >> just yesterday. >> this particular moment in yesterday's show when karen went to plasma and did a ven diagram

of value trade or trap let's prooi. >> canned spell ven. >> is it a trade or trap. >> a trap. >> a trap. >> i think it is we said it for a while if gm and ford can't rally the last seven years when the stock market goes higharien closes at all-time highs and in an environment where auto sales have never been better in the history of auto sales going back to mr. ford when are the stocks going to rally i don't know when gm is getting off the turf or when ford is but to dan's point i think the trajectory continues down zblood why is it in your view gm a trade not a trap using your criteria. >> whatever the criteria is i don't think it's been a trap however some of the things that i talked about in ge worsening balance sheet that's not the case in gm >> right. >> so the metrics and similar to ge but the metrics on gegm are

far more value to own it and than trap side i like the management. they have good management in place. have been doing the right things and ge you can't say that at all. >> stock has five-year support key level, interesting level. >> coming up we let's check out the cramer kam that's jim look at him gearing up for "mad money" tonight laying out with the new ge let ceo has to do to get back on track. tonight at 6:00 p.m. stitch fix having the worst day ever following the earnings report and traders betting on more pain for the stock. we explain live from the nasdaq market site in times square. more "fast money" straight ahead. all. 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

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welcome back to "fast money. time for a little buzz kill. actually big buzz kill shares of stitch fix posting the where is the day on the back of the earnings report. taking down a number of web 2.0 stocks like overstocked. he'll owe and etsy on a day when the dow touched fresh highing signaling problemsfare for the tech based or should investors buy the stitch. >> whoa you are a superhigh

flier and miss it's crush. we can see aa high flier really expensive. the whole lot are so overvalued. the one that's interesting is event bright which we didn't have that's ridiculous price. if you look at live nation, ticket master that should be higher where event bright should be lower the froth needs to end. >> the divergence between value and momentum has been not as wide as it is right now. these moves should make sense on both sides of the trade. >> it was also -- it's a beta trade. we know these are small floats you get get the things going especially when people aren't focused on valuation in names like these so they are focused on growth and that's why you had the explosives moves. >> even with the move to the downside, stitch fix is still up 30% offer the last year or so there is still further -- the only thing in my opinion, that stock has going that short interest is probably north of 50%. you get a bounce. >> do you use the service. >> can't you tell? wisen heimer

i look good. >> the stocks close from the 80s to you >> i missed that some of the best work there. >> one trader is betting on more pain ahead for shares of stitch fix. didn't head over to the plays that. >> i don't know what you were just talking about shortage was not 50% it's 22% the sfok is up 10 oh% from the november 2017 ipo. not what guy just said but here is the deal the stock got pummeled closing at lows down 35% and still up 12% on the year that's interesting options volume exploded today. 6 times average daily volume nearly marched the open interest coming in the day. in the name. and there was one trade shortly after the open i suspect it was somebody looking to play for lower lows for protect a long position when the stock was trading at 32.77 they were buying march 30 puts paying $4.60 for those if that's protection that brakes well loweren that the current levels obviously the stock went

down throughout the day. s in a tough name to trade options directionally. we have 22% short js expensive borrow volatile stock. wide bid ask but we have a chart and it's interesting talking about some of the levels this $30 level is obviously very important. $15 was last year's ipo price. it's marginally profitable appear using -- starting to lose users and revenues aren't growing at the rate to kind of justify this valuation so i think option raid ertz looking for protection for that gap below 30 bucks down to $20. >> thanks for that dan for "options action" check out the full show 5:30 p.m. on friday up next, final trades. oh, and there's the closing 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. so i can trade all night long? ♪ ♪ all night long...

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>> i do. i've been chosen to be on the national board of big brothers and big sisters i'm here with the ceo. here is a question pam. >> yes. >> we have had mentors speak to the people why is americaning young people so important in the united states >> well everyone needs a person in their court en for over a hundred years big brothers, big sisters has been providing a one to one mentor

for young people and this week we rebranded big brothers big sisters we are across all 50 states, 250 agency doing incredible work with young people appear and the new urgent message about the need for to us defend the potential of young people all across the united states through one to one mentoring, big brothers, big sisters is prepared now to make more of an impact than ever before. >> it's amazing. i'm honored -- real quick i say this doesn't cost you anything to be a mentor it's time well spent you'll get more out of it than your little will i encourage everybody to go to the website pam's doing an amazing job thanks for having her on. >> thank you both for work. >> final trades time tim. >> forgot gm i'm a buyer of pam and big brothers big sisters >> karen. >> i still like alphabet. >> dan. >> xrt, i think we are getting started to the downside on retail. >> dan was a big brother back in the day. so for all you nay sayers to dan

nathan he is a good person. >> all million of you. >> and you should check out the website. pam is doing an amazing job. xilinx. >> see you back here tomorrow at time in the meantim 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. i am trying to make you some money. my job is to educate and teach call me or tweet me. i hate to say this, but in this market you cannot afford to take your cue from bob dylan. because you do need a weatherman to know which way the wind blows. yet this is not