year people looking to morgan stanley, down 15.5% and 17% respectively so they are really priced to perform well. >> you would think they are primed for it. >> and the beat and also the decline. that does it for "closing bell." morgan, thanks for joining us. >> great to be here. >> "fast money" starts now >> "fast money" starts right now. live from the nasdaq market site over melissa lee tim seymour, karen finerman, steve seymour and guy adami, the man who called a big tech selloff has had a bigger warning. mike wilson says how bad he thinks the selloff could get and sears waving the white flag and filing for bankruptcy. is the downfall of the cite american icon a warning for other retailers or cautionary tale of mismanagement? we've got all the details, but first we start off with a make-or-break moment for the market as it remains under pressure earnings season, will it be, season to the rescue the season kicking into full

gear this week is at market fights back against rising rates, trade woes and higher input costs as inflation fears fight to become reality. is a gang buster season enough to crush all of these worries, and can earnings season reignite the rally? guy? >> that's the hope not just earnings season i think earnings season will be fine it's what they say going forward which is going to be important, and i'm not convinced that companies will get great guidance going ford. one of the reasons they probably can't and second reap they don't have to in this environment. that's what we're up against the wild card for the market continues to be president trump and china can pull off some trade agreement. that would be extraordinarily bullish, at least in the short term, so i think the market has to hope for that or maybe hope for a fed that sort of backs off and gets a little more dovish, though long term i think that's bad. earnings will be good, but i don't think it's enough. >> so it's a no? it will not reignite this? >> we have to do a tv show for an hour. no, back to you, mel.

>> grasso? >> no. >> there you go. >> and why, grasso >> nothing trumps rates. nothing trumps rate. this was about a rate selloff, not about anything else, not be earnings netflix, the most important print of the earnings season. >> tomorrow? >> tomorrow. >> we'll know tomorrow >> really. >> i agree with steve, at least on the rate side i'm not sure if it's the most important for the entire season, and i agree with guy that there's a lot of uncertainty and remember, we were doing this after q1 and q2. each one of the earnings were supposed to save this market and at certain test they actually did. people would look at valuations and look at where the s&p is on a relative basis to where it is and where it is on a fed hiking environment and say that these multiples look okay. i do believe that china is not going to be reconciled every headline on china is going to be bullish, one that should be faded, and i do think there are numbers within the earnings season that are going to matter a lot and sectors will outperform and look at staples so far i realize it hasn't been a great show but the outlook to me for companies who rely on commodity

prices and who would have concern on trade hasn't been awful. >> karen >> well, i -- i think the fed absolutely has to continue with the rate rise, the rate rising plan regardless of some volatility in the markets, so i hope that the market really still expects that i think it reflects that the expectation of another hike, around we'll see for next year i don't think that that should be the catalyst for the selloff, i really don't. >> the fed won't be the cat lit. >> i think the bad news, good news question, if the fed stops -- >> the question is do earnings overpower the rate fears that the market is experiencing right now? >> if they are good, yes, i think they do. the if not -- >> if they are bad -- i mean, if we hear from corporations with their guidance for 2019 that things are looking slow, that there's a distinct slowdown in the consumer, that, you know -- >> that's going to be terrible. >> that would be terrible. >> does that cause the fed to pause? >> no, absolutely not.

>> no? >> but, tim, does it give them cover? >> it gives them cover if they would like to skip i think they could skip one cycle if the earnings are terrible or the guidance is terrible earnings won't be terrible guidance might be terrible. >> the fed is staring at a couple of dynamics that i think they haven't seen in a while i think we're starting to get the phillips curve, the relationship between unemployment and inflation, and it's start to wake up. the ecb, of all people, was actually talking about that. i just think that we have core ppi, actually have energy prices that are higher. we're seeing this trickle through. this labor force is as tight as >> why can't the fed just skip one round? you know what we never talk about, 50 billion per month coming off the fed's balance sheet? >> you say that like it's a surprise. >> if you look at the yield curve, it's been happening and escalating by the way, this is where 50 billion starts. >> you say it's been tightening on its own, even without the fed. >> they have been telegraphing that plan for years. >> we don't talk about doing

both the tightening. this the double tightening at this point. >> just because we don't talk about if doesn't mean it's a surprise. >> we all act surprised that the rates are rising for the right reasons. >> still have negative real rates, neutral at best, and the fed needs to get to a place where real rates offer people something. right now we're not even at an equilibrium. right now they are taking accommodative out of their earnings and bottom line, this is not policy that's restrictive right now. >> i have a question for you guys a show of hands, please. >> well, will earnings season be a reason or could season be an input as to whether or not the fed raises interest rates? show of hands. >> yes >> i'm closing my eyes is anyone else raising their hand. >> steve, you're still out there by yourself. >> you're the only one. >> good for you. >> let's say guidance comes in really badly and the fed stays on this path. >> it's been about input -- inflation has been the reason companies are saying that input costs are going up some companies some companies have -- well,

let's put it the this way. the market should have nothing to do with t.whether or not it does i have no idea, but to your point real rates in your country are flat you can make a compelling argument that in the greatest economy in history they are negative and they have a five-point real inflation. five-year, ten break-eenz, they are not scary. so if we're raising -- >> i think your fathers, my father's inflakes inflation of yesteryear was something scarier than the prospect of what we're looking at right now i do think there's deflationary forces out there that could make it a different dynamic the fed is looking at pce that they don't see as close to overheating, and these are some of the economists in the world. >> can we show an after-hours chart of adobe because that stock is spiking good numbers in the after-hours session. pick your poison, here we go, up 5.5% guy, what do you make of this, and do you think this is any sort of extrapolation? >> i'll be honest. i haven't read at it and can't

look at it and speak intelligently. adobe topped out about $825 and you've sen a appropriate to en s decline. >> i think we got back what we lost today. >> our next guest make a pretty prescient call about the markets, warning about the markets when he was on the show at the beginning of the month. >> the breadth of the technology sector has been pretty weak over four to five weeks more names will fall off in october and that portfolio is what should we be focused on make sure what you do have in the portfolio is something you feel very good about going through earnings season with. >> now he says a selloff is about to get even worse. let's bring in mike wilson, chief u.s. equities strategy at morgan stanley why worse? why wasn't that it >> well, it's in process, okay, so the things we've been working for, rates going up too high and putting cap on valuation in the much rich parts of the market which is tech, growth stocks,

that's beginning, and unless rates come down we're capped, right, so to me that's the issue here today is what are you playing for at this point at index level, right it's getting harder. 2780 is kind of as far as we can go unless you went to bet on another meltup, so it's going to get worse because of liquidity what steve said is spot on is that the qe, the qt is what people are underestimating i agree with you, karen, it's not a surprise, but the problem is we timely flicked so the combination of qt accelerating and ecb started tapering on october 1st and this is the blackout period for share buybacks so all three of those have created less liquidity in the marketplace at a time when we need more demand for supply and that's why rates spiked so now you're in a bad situation. this could go on for a couple of weeks in that regard. >> where do earnings fit in to your calculus? >> i think earnings will be fine this won't be a disappointing earnings season. guidance is a wild card.

we wrote a note last week about margins. we're very, you know, skeptical about margins next year. the question is will companies actually talk about that in this earnings season? i don't know but even on a good earnings print, my biggest concern is that they just faded, you know, netflix reports tomorrow night i don't know if it's the most important but it's important because this is a classic stock where there isn't a lot of valuation support, meaning like nobody really knows if this thing is worse, okay we can kind of make up a number, okay, and if they put up a really good number and the stock sells off, i think that's -- >> the test of faith, in other words. >> people are going to start worrying, what other expensive stocks do i need, and seven a rate already the mid weigh software companies, the most egregious part of the marketplace. they have de-rated and come down 10%, 15%, 20%. it's in process. >> i hear your cap on the market another term, but how about a real fallout, because that's what more people are looking at.

they are looked at the velocity of last week's movement and they are really scared. do you think the market has the ability to be drawn back in a dramatic way >> it can easily go back to 2600, 2650, still in a bull market and not the end of the world. at least people are thinking about that now two weeks ago, that wasn't even a topic of conversation. it was like, well, we've got earnings coming up, and oh, by the way, you know, we made new highs every week so just the skepticism alone is a healthier step. >> so bottom line it for yourself in terms of the selloff being in process how long is that process >> yeah. >> and how deep is that selloff? >> let's go back to the real narrative which we've had all year with a roll bear market where we've gone through the different sectors. we're into the next phase. u.s. growth stocks in particular, small-cap stocks are finally getting it i think another 10% in that space, you know, that may be 15 in many soft names will be it. that could take us down to 2600, maybe 2500 if it gets real

nasty, objection than will be it for the rolling bear market, okay, and that's a good place to start buying. >> another 10% to 15% in growth markets, namely technology do we see a commensurate rise in the value sectors of the market? >> we've been favoring value over growth so it's just going down less? this is a moral victory. there are names for sure you all pick stocks. there are names to buy look, there's been a lot of damage this year already and some bargains have been created. right now we're having more of a market event this liquidity situation is more of a market event so it's just hard to pick stocks in that kind of environment, too, so it's going to be tricky, for sure. >> mike wills op of morgan stanley. >> you look at facebook, for example, did it move all the way back to 150 when zuckerberg testified on capitol hill in the spring maybe that gets interesting. google has had a precipitous

decline. you mentioned adobe. i think the path of least resistance and the pain trade is lower. look at today's action, not a big deal the s&p closes down ten handles, but went from ten handles down to ten handles up. >> it went closer to 200. >> but the low intraday has been 20 handles higher so the low -- we've been making -- granted it's a handful of days, but we've made of series of higher lows. >> what do you do netflix sells off? >> i'll pose it the other way. what if it happens it's not such a great number and it rallies? that's a buy signal for the market. >> i'd sell that scenario. >> mike's point is you have high multiple stocks. by the way, he talked about mid-cap and this is definitely not. this is mega-cap multiples are hard to buy in a market with less growth. >> coming, the death of an american icon. sears finally waving the white florida, but could it be a red

flag for other retailers and it's shaping up to be a big week for league as canada steps away from legalization and later the market selloff is taking no prisoners and steve grasso says this baby has been thrown out with the bath water he'll tell us one name that's a buy after a 25% selloff. we're live from times square noshlt much more "fast money" right after this place, the xfinity xfi gateway.

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welcome back to "fast money. the whole seaworld watching as saudi arabia gets ready to explain exactly what happened to a "washington post" journalist at its embassy eamon javers is in washington, d.c. with all the details. eamon? >> reporter: yeah, melissa, that's right president trump is touring some of the hurricane damage in georgia right now. he just stopped at a red cross facility to take some questions from reporters and one of the questions he got about reports that surfaced over the last hour or so that the sasd could be on the verge of explaining what happened to jamal khashoggi, the saudi reporter who has been missing since he went to the saudi consulate. since he went to the saudi consulate and disappeared. the president said he's unaware of what the saudi plans are so those reports are effectively rumors and he's tasked his secretary of state with getting to the bottom of it. here's what he said. >> what i'm really sending him just to find out really

firsthand what happened, what they know, what's going on he may go to durkee, he may not. he may meet with them all together and we want to find out what happened, and he's go the instructions to find out what happened. >> the president also said that the treasury secretary, steven mnuchin, is going to consider his options, saying mnuchin is still planning to go to a big conference in saudi arabia but says the treasury secretary has in the end of the week to decide, and he'll weigh his decision based on what they find out in terms of new information so the united states side clearly looking for some more information, the president saying, melissa, he doesn't really know what to make of these reports that the saudis may be on the verge of admitting that they had some responsibility here, that this was an interrogation gone wrong, that ended in the death of jamal khashoggi, so not clear exactly where we stand right now, and the u.s. side is looking for

more information. >> eamon, thank you. eamon javers from washington. we did see the market take a leg lower, losing 25 points on the s&p 500. the growing concern in saudi arabia, could it be a threat to the u.s. stock market? and we'll throw oil in there and higher oil could be a real problem. >> throw in oil, throw in the fact that hold $170 billion worth of treasuries. peter boockvar brought that up this morning energy is up places investors need to look to in the fourth quarter. year-over-year quarters are being run for equity investors and cap "x" numbers are lean and mean energy prices, mel, have been feeding through to some of these inflation reits that we've been getting. strip them out like in retail sales, and you can see that people are not giving any

ground. >> shouldn't be any supply-demand issues with this event and i don't think that's what tim is saying if you have no supply/demand, shouldn't affect oil and oil didn't respond as a tailwind or bullishness in the oil markets i think this gets blown over saudi arabia is a tremendous ally and gets blown over in a matter of days, not weeks. >> the davos in the desert, that's what the event is being bill the a lot of executives are pulling out. >> the u.s. could want to maintain diplomatic relationships with saudi arabia, but it's corporate america that could decide otherwise effectively. >> yeah, and thin in that vain i think it could be a market negative not a market positive, right, so it either does blow over in a couple of days or escalates, and there's a relatively decent chance that it escalates is that a legitimate excuse as to what happened i'm not certain that that's the case. >> let's say that they deny it and we get nothing further from that i don't know what we do. what's our response, that's steve's scenario where it blows over. >> stranger things have happened look at turkey

look how turkey turned into a much bigger deal because we saw the contagion effects. >> they weren't as big of an ally the leadership is always different than saudi >> i would argue that turkey is geopolitically right in there with saudi arabia for the united states. >> okay. >> for more in saudi arabia and the growing threat, head on ove to cnbc.com. here's what else is coming up on fast ♪ there's more for your life at sears ♪ >> actually there's not much left at sears after the company filed for bankruptcy today but the traders think other retailers could benefit, and we'll tell you which ones. plus -- >> how cool is this? >> not only cool but come wednesday, legal in canada we'll tell you what ocstks are poised to heat up when "fast money" returns super. but today you're building wind turbines. morning sir. chief, the blade isn't passing quality gate. that's why you work with watson. i detect frictional loss on the midspan.

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open an e*trade premium savings account and earn 1.9% apy on your money. that's over 15 times the national average! welcome back to "fast money. it's the end of an era iconic american retailers sear

filing for bankruptcy finally waving the white flag. courtney regan joins us now with the details. >> reporter: for many it wasn't if but when. ceo eddie lampert has kept sears afloat with a number of complicated financial maneuvers for a long time until today's debt payment was too much to could have while many of today's shoppers won't remember a robust sears, but many others, including president trump, remember when it was the country's largest retailer. >> sears roebuck, when i was growing up, was the big deal, amend it's very sad what happened very, very sad when you look at that whole filing that they did last night, to me it's very sad. somebody that is of my generation, sears roebuck was a big deal so it's very sad to see. >> reporter: some of the trouble came when sears and kmart merged in 2005 and the financial crisis hit but sears didn't invest in stores or e-commerce shares have lost all of their

value which equates to $14 bill crop in market cap there are 3,361 fewer steve forbes now than at the 2011 peak and 307,000 fewer employees than in 1980, but 68,000 jobs are still at risk today. still, famed investor carl icahn wonders if the bonds have any value. >> obviously there's a lot of problems there, and, you know, now it's in bankruptcy, and it may be some of the bonds will be interesting. we're taking a look at some of them. >> reporter: sears bankruptcy could actually be a positive one ceo said it's been very difficult to lease around sears for years, and he said one example of a redeveloped sears in its shopping centers is generating four to five times the rent that sears was paying former sears locations at it shopping centers are generating about nine times sears rents melissa. >> big difference. thanks, court. so is sears waving the right

flag a red flag for other retailers? let's break that all down. hey, carter. >> i don't sears has anything to do with other retailers, its own issue and own problem and it is a case of how the mighty do fast thousand dollar we'd do a little history and talk about amazon. what i have here, is of course, some of the all-time greats. woolworth's is the greatest retailer in its era. sears eclipsed woolworth's in the 20s and then walmart in 1921 and amazon, not bigger, but half in terms of revenues, it's the big player what i have here is the -- the head count u.s. population and then their peak employment. peak employment for woolworth's is the 1950s sears in the 1980s and interesting, of course, that obviously walmart is the one that has and still does the biggest percent of the u.s.

population so moving on, what we have here is the head count or store count at their peak. woolworth's 2,800 and sears 3,500. walmart 11,000 now, amazon 600. you can say, well, what do you mean of course, that asterix there is talking about whole foods, and as we know amazon has opened some new concept stores, three of them, and probably that's going to get bigger, so history repeats. in terms of market cap, so woolworth's is still around but basically it's footlocker, and it's 6 billion, sears 35 million on its way to zero, of course. walmart 225 and then amazon the big player in terms of revenues, you can see the numbers, and this is the really interesting part. of course, amazon at some poin presumptively will get bigger than walmart but nowhere near,

even though it's three times its size in market cap xrt, a great etf, equal weight and has all of those stocks in it plus about 990 others and what we know to be fair is there was a well-defined uptrend, and we've now broken the trend the question is are we going to consider this okay and we'll get back above or has something else gone on? think something else has gone on and there's a break in trend and the bigger risk is there's downside from here closed very poorly on the day. amazon, 2014, 2018, a perfect update here are the drawdowns, down 16 and down 32, down 16, 14, and this recent one down 18. how much could this continue let's put in the trend loin. here's the trend line that has been in effect for the past

three, four years. i think we get down to trends, so we're down to about 16, 17 and 18 i think there's more to go amazon is not -- i think the one those currently not finished >> come on over, carter. >> come on over. >> stephanie will bring the chair in. >> thank you, stef >> whittling "the carol burnett" song. >> it's super catchy. >> wow, sorry about that. >> good times. >> are there retailers within xrt that you like? >> there are burlington looks pretty good, tjx pretty good. i think the issue is this. if you were look at the consumer discretion actor is unchanged on the year so the high -- have driven the performance at the

exlevel. why you, nicking new 52-week lows or all-time lows. >> when the f.a.n.g. stocks trade and you see the amazon trading, and you have netflix tomorrow, does that affect your dynamic when you look for your bottoming out in amazon? if enflakes as-- if inflation -- >> when the giveback is over, if netflix is good, would that give some footing or lift to amazon the stocks were traded the same. it's of a type in instant credit growth, but i'm not sure in this instance with if netflix results and if they are unhappy and there's poor price action, it would affect amazon. >> how does the rta look which

is amazon, walmart, big-cap heavy. >> right i mean, let's take f.a.n.g., down 20% peak to trough and indices dominated by the cap names is this -- only two kind of weakness, weakness to take advantage of it and the weakness atsears is the factor. >> let get to mike for more details. >> mike was looking at this the name home depot which traded above average and calls outpace puts by 4-1 and we saw the most activity with the november 1 calls. over 7,700 of them had traded

for just under $5, and buyers of those are making bullish bets that it will get through the 195 strike price by the price they bade or above 200 by november expiration, and this manages to capture earnings which we expect them to return on the 13th, implying a move of before 13%. >> how are you feeling about home depot, guy? >> off about 11%, 12.5%, as mike mentioned. 18 times forward evening, but i think hope depot. >> full show friday at 5:30 p.m. eastern time pot stocks are still ablaze as deals in the stock heat up two key events that could take our stocks even higher our cannabis king tim seymour will step up and steve grasso speaks about a stock is done frommies highs what has him so bullish? find out when "fast money" returns. oh, and there's the closing bell.

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welcome back to "fast money," been a tough month so far for the markets as some of america's most loved stocks got thrown out like a baby with the bath water bob pisani has all the details at the new york stock exchange hey, bob. >> hello, melissa. some real notable decliners. been a rough week and a half, particularly for a group of stocks known at high beta names. big dow decliners in that time period include caterpillar, boeing, vice, a, 3-m and apple

these stocks account for 600 of the 15 up-point decline in the dow in the last week and a half. what they have in common is that they are all high beta and high volume stocks. that is, they have the highest sensitivity to market movements so when the s&p is down 1% in the day. a stock like boeing might be down 1.5%. some beta stocks are down 9% from a week and a half low volatility stocks that tend to have more muted price movements are down 3% including walgreens, verizon, mcdonald's and coke wall greens is the only stock that's up in the last week and a half in the dow jones industrial average. it wasn't just high beta names in the dow that dropped. big barb cap specters like nvidia down 12 about% and kla

corp noun 11% and another group take a major hit in the last week and a half, visa down 24% and mastercard down 11%. major damage melissa, back to you. >> all right, bob. there is unit in one of these downed names according to >> soy why don't we just pick up where bob was leading off, square let's take at the building when you want to talk about the ecosystem, you look at square with a $70 billion ecosystem payment, services, software. number two, financial services their cash out has about outpacing venmo. they got caught up in the value. why the stock sold off, not because any of the fundamentals have gone south. the future in this name, international expansion.

why? it's a percentage, very small percentage of their kofl right. >> that's why it's still a buy for me. >> talk about some technicals. if you look at fundamentals you get the picture here and fibonacci, different pick tower there. the even with the selloff we've seen recently. you go from this low hand this high and come up with the retracement levels and it stopped basically on a dime at the 6.18 retracement level been taking a series of high or lows right here if netflix, a premise for me, if enflicks performs well. >> i'm very concerned that at least of -- the market may, you

know, continue to respond negatively what do you think about her depart our >> sarah fryer, everyone loved her, the entire space loved her. never going to be ceo. only one jack dorsey went to become ceo somewhere else if the story progresses and it's something different, it's a different case, but right now no affect on fundamentals, just a knee-jerk retax. >> no more questions are you buying steve grasso's point on square? guy adami, what do you say >> i look -- big dag volume exit lays it means you buy receive gave you the let >> yes, in full disclosure my sister works at square. >> i think it's a buy. >> very clever. >> isn't that clever.

>> very clever, yes. >> tim >> i'm a buyer i'm long the okay. what is that finger there? >> i'm not giving him the finger i drew like a number one, i like it. >> it does not look like that because why i claire i'd before all the tools comes out. buyers all around the horn here and are you here buying grasso's pitch for square in vote in our twitter poll and we'll reveal the results later this hour. a another pot enevt that could send the stock even higher this week we'll explain when "fast money" returns.

welcome back to "fast money. a major pot deal sending weed stocks higher. aditi roy is in san francisco with more on the cannabis craze. hi, aditi. >> reporter: a big week in cannabis industry is kicking off with cross-border news canopy growth announcing it will acquire the assets of ebu, a colorado washington, d.c. hemp research company for $19 million plus 6.2 million shares. the most notable part of this deal is that it marks canopy'sentry into u.s. operations in a statement, canopy is saying the deal will complement and accelerate multiple core verticals operating under canopy

group's group of companies growth was up and other pot stocks were lighting up ahead of the legalization industry watchers are looking ahead responding to representative dane ark rohrbacher's claim this week that he expect trump will purr med cat marijuana note that the has not why the db meanwhile many are asking president trump to change the federal cannabis ads with a preview of this ad, a letter to the president saying america is losing its competitive advantage to canada because u.s. companies are losous at canada installers go across the borders a media call will be held tomorrow reiterating that marijuana remains illegally federally and federal agents will be enforcing that law at

border crossing, melissa, back to you. >> aditi roy in san francisco. all this brings the u.s. step and none of those the mid-term elections right around the ron. before we get to that, we shut need a that. for all of dick's publish you're you can to fast lent cnbc.com. >> this is as bipartisan issue and i think it is a catalyst and let's go here. i actually think that both sides of the aisle care about this issue and both are pushing for it where will we get full audition recreational legalization? north dakota is polling at 80% and michigan polling north of 60%. i think you have a dynamic here where you can actually see, you know, that continue to develop across the country and as you continue to look at what else is happening on the ballot, very

significant issue on the medical sigh, usa and missouri, the show-me state and the mormon church is what we know from utah they -- the overall environment is very productive and what does this mope for expectations there's a number of companies out this that could continue to be beneficiaries of this if you look at this chart, first of all empty glass jars to show you the u.s. market. who can benefit? we talked about canopy and their deal with ebu, a colorado-based research firm that helps on the genetic side they will be helping them with extract yomp the fact of the matter is the fda fews what they are doing and descheduled one of their maybe drugs. i believe that's the watt we're going. men -- for those people -- they

used a more expensive currenty in the year and that trade of buying up u.s. names are canadian currency, stocks, boy companies with, you went to the capital markets in canada and both other things. that consolidation is going on right now. charlotte's web, the cbo wellness area that's also a major u.s. player in terms of distribution of cbd which is something we all know is a huge market growing 55% mel, a lot of opportunities. >> karen, has a question >> not to throw cold water in your bong or anything, this deal was announced as a $325,000 deal, and the acquired stock went up over $2 billion. seems a little foflt >> no. >> >> the alignment between

constellation brands and can nil is incredible. this ebu deal is very creative, but it shows they are working very hard on the research side and this is a place where the science side of this continues to outperform. let's face it. big institutions are just getting involved and if you're going play in one name, this is a name you can make an argument on valuation and on balance sheet and partnership and i'm actually not surprised to see the stock move today. >> thanks for that steve seymour on cannabis. just out the kraik e cam and gym is top the top of the hour will cold water be thrown on the hot ipo market big names like airbnb and pinterest will be eyth're explain? we're live at the nasdaq market site in times square more "faf" right after this.

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unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. welcome back the ipo market has been shaken up we're back at headquarters with more. >> reporter: there's a recipe for the perfect market conditions to going public low volatility and rising equities last week, if you recall, we saw the exact opposite of that, so

it's no surprise that we saw the most number of ipos withdrawn last week than any other week this year. five ipos were pulled, including deals that were already in the road show marketing shares to investors and two other companies postponed their deals before even getting to the road show start including lee's plan floating shares in amsterdam and brussels and ten cent music which was also spooked by the market turmoil. the company is postponing its road show until november due to the recent selloff in the market large price swings in particular can make it very difficult to price deals making it more likely that the underwriters and the company agree on a price that in the long run isn't actually suitable, and stock market declines like we saw last week can spook prospectrive investors because the risk-off

mode makes them less inclined to buy into a company's debut which can be among the more risky areas of the market. >> leslie, thanks. for more let's bring in rick heitzman thanks for being with us. >> thanks for having me back. >> how would you shrine these market conditions and if you're advising a startup on whether or not the time is now, would now be a time? >> now is the time i think that this might be -- from a startup point we think longer time horizons we're a holder of eight to step years of companies, and a few days of volatility shouldn't impact that. we're thinking about a year or two years out. the lookup is over and is the company appropriately priced in. >> when you're thinking about some of the ipos, are they selling 15%, 20% to the public >> we were right here last week with up work, and they sold a

much smaller percent cops are -- they don't need the financing element of these ipos. were you nervous with the [ laughter ] woke that went public. was that hand wringing >> i don't think it's hand wringing you do your bess an assume that it will take care of itself. >> now that companies are treating the capital market cycle, you guys are playing a different role than you might have been able to a decade ago is it different today than for private companies in. >> much, much different. companies are staying private two to three times lower we think about microsoft and cisco, private companies for two or three years and now you're looking at the next generation of companies being private for the next 10 to 12 years. less volatility when they come

out. pretty good accepts of and there's less risk and reward for public markets. >> is it clear and simple looking at international companies versus domestic companies? international companies have been challenged. does that pull forward the need for a domestic ipo because they want to cap tower what is at the top in the u.s. market. >> i start out by saying i know nothing about the dramatic if -- some of the biggest names. naabout -- people want to participate in the market leads and names like twitter and facebook that is caused and wanting to participate in the 10x ipos. >> are you seeing anything from your vantage point that concerns you in terms of what's happening

in the u.s. equity market in. >> the only thing that -- we have not seen yet, and i saw a cycle in 1999 and saw it to alers extent in '07 is poor quality companies going public, and we've not yet seen that. looking at the smaller ipos of the last couple of months, there were still solid companies with good business models on a path to profitability, if not already profitage. you're not seeing a segregation of quality which symbolizes the end of a cycle. >> rick, thanks. in terms of what you've seen on the floor, you've seen a lot of high-profile ipos and they seem to do quite well. >> i don't see any slowdowns, obviously the volatility in the market someplace always something that goes into the calculus of an ipo and i've not seen any slowdowns in the ipos rolling out. you will see the ipos coming like from a ten-cent doing a spinout or spinout their markets have been under pressure and you'll see why they can postpone those and i haven't seen any of those with the

domestic u.s. market. >> often talk about the ipos, not because they will have stocks that they talk about and indicators of the overall market and market conditions. is that your thought in asking rick the question >> i understand exactly what rick is saying never the same as it was in '99 and '07 and i don't see what impact it has on the broader market my negative on the broader market. >> up next, final trade. she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day.

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we have a had you addition to the "fast money" family little baby evan thomas was born yesterday afternoon weighing in at 7 pounds and 13 ounces and 21 inches long. nance set one on the head sets telling us which cam trees look at keeping these guys in line. >> we miss her but she's in a better case >> nice job. >> switching gears here, kill that music drum roll, here. you know what jock-doers and steve grasso have in common. they are both having the time of their lives. >> wow. >> undefeated still. >> undefeated. >> never lost one of these. >> i'm not serious. >> all right >> time for the final trade, tim. >> fedex has been losing a lot over the last couple of weeks. down 25% this is a fantastic company that i don't see any breakdown in their growth fedex? >> karen. >> we haven't talked about it in a long time and solar edge >> wow. >> grasso? >> cronos, up big after hours.

>> guy >> cute baby. >> super cute. >> you can't tell how big the baby is. >> 19 1/2 inches long. you don' 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 save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. what the bulls need right now more than anything else is for the federal reserve to be proven