be a give and take the earnings season even if it's positive. >> if it's positive you get rewarded a bad setup. >> more than prior quarters seems to be rewarded absolutely. >> we should mention morgan stanley had a great session. >> on an earnings front. >> that does it for "closing bell" today. >> "fast money" begins right now. have a great evening "fast money" starts right now live from the nasdaq market site over new york city time squares. the traders tim seymour. karen finerman steve grasso guy adamy tonight it's the final countdown hours away from legal weed in canada the dean of valuation will be here to explain why it's getting crushed. netflix be ibm united cs approximate reporting earnings moments ago we have the reactions as well as instant analysis on the after hours moves throughout the hour. but first stock going wild that is right everything is awesome again. the dow surging nearly 550

points the stocks snapped back from the selloff after strong earnings reports. all 11 sectors were up tech and health care up three% closing near session highs is the worst over for the market? is the bull run back on track in guy. >> before i answer that is that a computer generated and see a computer is single. >> these are real people singing a real song. >> christie tegan. >> can we listen to it it's sort of amazing. >> if you said to me gee swizle the market is moving 500 points tomorrow which way given yesterday's close i would have say categorically 500 points lower and here we have we are 550 points high are. day to day there is no way to figure it out. for the bulls we say we stopped dead at 200 day moving arrange the bull market still intact i'm skeptical. you heard morgan stapply i think

there is downside process but you can't argue with the fact that the market can everything it needed to do on the downside and held and bouncing. >> it made a series as we talked about yesterday. series of higher lows. that was bullish netflix, the best indicator where we are going into year end momentum versus value op aim oom on the side moelt up. >> all the things we explained away, the downside to last week most of those things are still intact. >> i. >> the fed worry is intact preponderates abated a bit but still. >> there is zero in the form of i think a broit light in terms of china trade tariffs preponderates are probably range bound to higher. the fed if anything borders on being more hawkish here. we had good news in europe the italians seemed to have balanced the budge and give and range on debt to gdp that makes the european union happy i think there are the same factors at large here it's nice to have earnings take center stage because frankly companies are doing well

but i think the valuation dynamics, a market where the multiple should continue, i think to compress in this environment, weighs over the market. >> karen. >> i look at earnings. we get in pockets with no earnings we were there for i don't know until last friday. and to me the earnings have been really really good today we'll talk about a number of of them really good and the guidance has been better feels this week than last. i don't know, is the worst over? maybe, i think in the short-term, yes. i think that the market at this multiple with these earnings is good to own. >> okay. all the worries that we talked about, tariffs, trade, et cetera, the fed, they all exist. so with earnings coming in better than we expect or at least in line, does that set up for the seasonal lift higher >> it's encouraging without question karen is right it comes down to earnings. but the headwinds that we talk about they didn't magically go away we are no closer to a deal with

china. no closer to the rate story being somehow fixed. i think if anything you saw the j.o.l.t.s number which is why the market was up 50 oh points gives the fed credibility to move forward which is a reason why we sell off in a lot of people's book in the first place. although earnings have been good, markets don't necessarily sell off because earnings. >> but you had. >> it wasn't the earning's sore. >> to speak to the seasonality you had hedge funds down 3% into october. the first woke in average in first week in october they lost 4% there has to be a chase for performance into year end. >> it's inincriminate knitly buying. >> you have to go wherever you think the you get the bounce with netflix report today i would say they chase the names. >> but bounce is the operative words. it comes down to position attention and where we were in the selloff was that you had complacency at level highs, hadn't been back to the level of positioning since january and then we went to extreme

oversold talked about the nine-day rsi lowest on the s&p since 2001 how oversold were we dramatically when you can't necessarily see the china trade rolling into the numbers we are not seeing the impact of china until does at best and therefore i think a lot of this is just a mirage for people but to me it's all about positioning and sentiment i don't think the sky is falling i think the market is fairly valued at a time when we said earlier in the show -- guy talked about it we all talk about it come on when it's up 50 oh points orp feel like it's gone away would be disingenuous. >> do you sell into the rally? are at a we that. >> no. >> are we questioning this to the point to say use the bounce to take profits. >> i have seen this act before without question process we talk about every time it sees limis it's over and skis something happens and bails it out. this is the movement over and over again can it last a couple more adays?

absolutely but in terms of the hit nds they haven't gone away. >> they haven't. but think about the tail nds coming back. we had the buyback blackout. we get the buyback as back and you could argue it's 20 to 30% of the tailwind in the overall market in terms of buybacks wuf multiple tail nds into year end. >> yes. >> i think that make we are saying this but if i look at data as msciempeem they are basically trading. 2 or 3% up to a trend line straight down effectively since january. until you break out of that range that's where you are you can chase for one or two% but the market call tells me you don't have a lot to do in terms of chase going highe >> what trades do you stick with going to the ended of the year if we use this guide tp did you see the bank of america merle lynch survey record high number of managers were skeptical of growth, right since 2007 the most crowded trade long fang

and bad stocks short treasuries the same playbook most have been in through the october is that the ticket you want to use. >> to me, the place i feel most kmftable with multiples that are defendable even the energy sector and commodity sector we are seeing asset price inflation and a lot of energy companies are delivering free cash flow have free cash flow yields and integrated names that we soont seen in a couple of decades. s in a safe place to play. >> the move to value like growth. >> i do like growth. but if you have growth get hit by 20 or 30 orp 40% those are the names you make that up in matter months. >> to the earnings alert the market is awesome so is everything at netflix. check out shares of the streaming giant pennsylvania parabolic. >> are we hearing the song all night. >> all night long. julia boorstin outside of

netflix headquarters in loss gat ohs, california. >> well melissa it was the subscriber beat sending the stock flying higher better nan expected subo subscriber numbers in the third quarter as well as guidance for far better nan expected numbers in the fourth quarter that is in focus into the earnings call. the ceo said in the letter to shareholders that they underestimated strong growth across the markets including asia on the video calling starting in about an hour analysts are probing for more details on what is driving the customer acquisition. the other big question is how much they plan to spend on content next year after growing the content spend to as much as $8 billion this year we are watching to see what the ceo says about the host of new competitors. at&t and disney both launching new services nextier and in the letter to shareholders hastings said the o amid the competitors his his job is is to make the netflix stand on the out

median barron weighed in and what he says the competitive advantage with the cnbc's andrew sorkin early yerl today. >> they have such a lead that there is nobody that is going to compete with enemy at that level. it doesn't mean other people won't have let's call it successful streaming services of 20 or 30 million but to think that you can invest whatever you think you could invest and ever get up into their numbers is kind of a fool's errand. >> we will see what he has to see about amazon spending concontent it starts at 6:00 p.m. eastern on the video call. >> those are such blowout numbers. i don't know what made the street start taking numbers down, i don't know, yesterday, two days ago pb do you think analysts will rerating the stock

up as quickly as they can. >> i think a lot is depending on what hastings says on the earnings call. last quarter it was a disappointment the numbers fell short of expectation. there was talk about whether the last quarter was an indication that things are slowing down in general or whether the last quarter was blip i think what we are seeing in erms it of the stock which has a history of swinging wildly in one direction or the other after earnings that last quarter does seem to have been a blip and this quarter we see that growth pick up again but i do think that you know this is a stock always very volatile after the numberings come out we will see what what happens after haeg hastings weighs in. >> julia boorstin outside of netflix headquarters in loss gat ohs. >> raymond james cut it on monday goldman sachs cutting the price target friday. by the way the stock was down 19% from the highs into earnings the setup for the quarter was a very different setup compared to last. >> steve talked about that and we talked about it as well the last couple weeks.

last quarter, the july quarter was the stock was 40 something i thought it moved higher i thought the quarter is fine. dead wrong when it traded down $30 we said already here is a sfok retests the level we broke from in march. 306. that's what happened now they find a period where it has to prove itself again. that means it has to retake the 425 level we last saw in july or so i'm not convinced it happens these analysts might be right. i still think there is room on the upsideside but now the stock holding on the downside has to prove itself on the upside. >> does this give it legs tomorrow. >> it helps. people have been handsomely rewarded in netflix to the tune of 80% back to the stock, i feel it's the same story we have a dynamic. i heard this -- heard this on the call the statement something along the lines of investors need the same kind of confidence in the investment we are making. the hunl investment we are making in content as they have

in the past. in other words they've been rewarded don't be priced by this number people hoped that 2018 was peak cash burn. i don't think it's close the content slate for the fourth quarter is important you know where i stand on the stock. i'm not conins vipsed. >> this has to be huge in for fang in particular when you look at names, facebook is a thing unto itself, the privacy issues there that's an animal to it's pef amazon should rally aggressively on this into their earnings. i can't see them missing he is having a blowout quarter. >> they are in different. >> they turn the spikts on and oh off wlefr he wants with the stock down so much into it it almost sets up perfectly guy had a great call technically on amazon. when you see this much dachgs on the charts going into earnings, what are you playing for if you are a short seller of amazon you have to cover. >> you say they can turn the spikts on and off will they listen to the netflix earning i don't think you are saying this.

they feel the need to report something this quarter i don't think jeff bezos. >> after a grind his stock into year end he wants to show everyone that you have to cover that stock it's not like elon musk where he murders the shorts but he has something to prove. >> i'm surprised you think that he watches the stock in the are the short term. >> i'm surprised you don't think he does. >> i don't. >> i'm not talking about. >> is he watching "fast money" right now. >> i'm not talking every day but any kr ceo not wang a quarter setting you better sell that stock jeff bezos anyone tells you he is not watching the stock a liar. >> amundsonen up 1.25% after hours. with netflix up after hours. let's go off the chart to the trading analysis founder todd gordon todd you went in short netflix. >> we were talking about it. the general skens sus just it's been weak, underperformer. the hard edge of the short the

wherebiers and sellers "the guardian" are agree it's valued. i played the expected move .options market priced a 35 move higher or lower i had a defined risk opg strayed it went out the other side we went out to make it even .a 35 bucks we are at the he o at the expected move in ferms of where options market see it. we are back to the old october highs at resistance. is it the -- are we out of the woods? i'm not sure let's put in context this is netflix the last couple years, a beautifully defined up trend channel. as you move to the upper end of the channel this is overbought we continue to be overbought we could go up and try to re-test the upper areas. but, again, the stock is not -- i don't think it's going to break out of this uptrend channel. we might see short term strength but still overbought i was playing for a move become to the buchlily defined up trend

cham this is the weekly chart down to the next is the daily. okay, fine back up at these old ranges. this leaves us still very much kind of in the middle of this channel in netflix i have a hard time bleaching that all this underperformance, one number is going to break this under pormtz out and we go to new highs i'm wrong in the trade but still not buying i do think with a little bit more participation with the broader market we still might go down and test the lower levels i just can't get behind it yet look being at the overall nasdaq, though, this is very constructivive again the same principle we have look at the last three years beautiful uptrend channel here if you get inside of this here this is lower support if you were to draw a candle stick there is four parts of the candle, there is the open, high, the close and the low. and if you could get the body of this candle inside of here that would say that, okay, fine it's

supported. this candle stick tried to break below the support here we're back above it. it shows the remain support remains intact as the nasdaq could continue up towards those upper levels i say we tried to break through that support but the canals are closing above it looks like we might need to look on the long side of the tech market. >> in terms of the setup for netflix, todd, the fact it was done down about 19% from the 52-week high, the longer it's below that 52-week high and the deeper it is below is that the worst. >> the longer the base. >> sort of similar to that to that thinking. >> yeah, yeah, just it looks like they've been beaten down in the subscriber growth for so long, the market was heavily short. i bought into it i think a lot of people were short and perhaps it's a combination of the numbers were really impressive those things perhaps are shaying short it forget it covering it's more like it's the bull market sort of the rally we have seen in the technology. and does the mathematic crash

five hundred points higher no there are eemss coming into the shorts locking in the profits locking in maybe the gains but getting out when you see the market rip higher in netflix and the overall market, maybe in the near term bear market rally. >> all right, todd thanks see you in the show. trading analysis.com guy, if it moved lower by 12 others on the back of a disappointing earnings report would the analysis of the stock be different from it being up 12% maybe in tomorrow's session on very heavy volume. >> so you're saying intd of being where we are if netflix re-tested the level we saw in brink spring then i would in todd's camp broken stock breaking through the 30 5 level on the so sound gownside and test levels we haven't seen in a year or so in terms of the fundamentals of the company if you were skeptical on the billion smeet and cash flow this quarter did nothing -- it give you more ammunition not less am nilgs to be concerned the concerns haven't gone away

this is the quarter i thought they report last in july it happened now. it needs to retake the 423 level otherwise we might wind up where todd things it's going. >> more on netflix on the hour check out the others we are checking call it the good bad and ugly. ibm turn around. that's. >> again with the whistle. >> we see what wamz says about the quarter. pot stock taking center stage as canada is hours away of legalizing marijuana the dean evaluation has a surprising take on the stocks opinion and what they're working opinion the bull market mifrt mystery the group of stock that should be surging is sitting out. live in times square in new york city, much more "fast money" right after this place, the xfinity xfi gateway.

and it's strengthened by xfi pods,

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 to "fast money. hear the music you know what it means. >> no time. >> a earning whip. transport style. chekt out united and csx pmt phil lebeau in orlando on united seema mody on orlando and phil we start with you and united >> melissa, i think analysts like what they say see with you knowed earnings and i just got off the phone with andrew davis, the airline analyst from t row

price. he said look this was a good quarter. in particular he thinks most analysts will be impressed with the farr quarter guidance opinion the guidance from the fourth quarter up three to five%. most analysts expected probably closer to 3% they will be impressed that they are expecting great are than 3%. he summarized everything by say looking, the strategy appears to be working the strategy of adding more flights, more seats from smaller cities to united hubs. that's driving greater revenue we are talking about united ceo oscar munoz tomorrow morning on squawk box at the ual headquarters in chicago, talking with oscar about the strategy working, the fourth quarter guidance where they go from here back to you. thank you very much phil le be airline holder tim kick it off. >> united to me is probably the weakest three in terms of the expectations on fundamentals

the call is important because that's an important time many times. if you look atsentiment quarte over quarter with where we were at the second quarter sentiment is improved and stocks near highs. people were overly concerned about energy prices. the capacity cuts will drive this and dplin is what people want to hear. >> this is the latest out of of the airlines. >> delta was good. the capitalism -- the cost. >> cost per available seat mile. >> that was good. >> full of acronyms. >> the gel fuel prices were a headwind but with the revenue going up they got leverage there. that was good. a lot to like here they stick by the 202011 to $13 eps. by this time next year the market will be look at 20 earnings what's the multiple we should have it doesn't take a huge one. >>fare an economy that -- i know we question the market but we are not necessarily questioning, o where gdp growth is and airlines are levered to that. >> trains to planes to seema

mody back to her to examine csx. >> two major factor health help a strong earnings report higher cost on moving freight. they said the pricing environment is very good that customers are moving more back to the railroad crescent welt says this earnings report from csx suggest nas domestic growth remains on track despite the tariff threats and higher interest rates. shares of csx are higher by 2.5% and up over 30 therese this year vastly outpacing the pierce union pacific and kansas city southern and which later and analysts at said they are trading many times 2019 earnings and has the potential to continue performance if it maintains growth in volumes. csx got caught in the wide base sell off but is recovering nicely after hours back to you.

>> seema back at headquarters. do we like railroads >> kansas city southern is the most expensive one but that's the most beta unp, csx all trade somewhere stween 17 ab17.5 times next year's earnings. in my book it's got to close above 75 to take the next leg hire i'd rather sell it here than to try to play for the breakout you are playing stock market here and flipping a coin. >> looking at nafta, 2.0 thats a lot of noise csx is the outperformer. i stay there. >> if you had worried about the economy a couple of good data points out of the airline industry good quarters out of csx these are the transports if you believe in dow theory this should be a good sign. >> there is a little bit to csx but at broader story the dmee is doing well we heard about transportation costs be high for those shipping it's not so shocking that their

costs, revenue rather was higher but i think 80s good read to the economy. >> look at the pricing pricing has been increasing over the first three-quarters of the year that's where the trend is. fedex talked about this fedex is the way to play a lot of this. because they are the ultimate tell on transport. >> still ahead sticking with earnings ibm reporting earnings moments ago. the stock down nearly 5% i misspoke when i said it turned around that was during the session. this is the actual chart, down percent we tell what you the c if fo said about blockchain. first in business worldwide. in the meantime here is what else is skomg up on fast. >> smoking. >> and that's what they'll be doing tomorrow in canada once it's legal to buy pot. but the dean of valuation says you may want to pass on grass stocks he will explain. plus talk about a bank job >> this is a robbery. >> the market is surging the economy soaring. why are a number of of bank

stocks tanking we have the answer and we'll tell what you it means for the market market when "fast money" ron! soh really? going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab.

schwab, a modern approach to wealth management. the riskiest job. the consequences underwater can escalate quickly. the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org

welcome back to "fast money. we are just hours away from a key moment in canada weed will be legalized across the lan of the ib neighbor to the north. cronos, conpy, tilray, aura all getting hit. will the event in canada be a sell the news event in looks like it, tim what do you think. >> i think you have a lot of different dynamics the canadian lp, the sbig integrated companies up there are not cheap on any multiple. some are choomer than others i don't think we know the global total addressable market that's one of the things the bulls say you have no idea what the consumption trends are and where it goes. if you look at the market, the big lps sold off hard. med men was there. u.s. over canada is the trade. old school versus new.

u.s. valuations are significantly cleaner this is a function of the capital markets. this is not necessarily where are better companies made. bottom line here, the industry is it starting to split and become more sophisticated. what i mean, pfizer if they come in this industry they are totally different than deej o or proctor and gamble the verticals are taking hap this market needs to take a breath and it wouldn't absurprise you sell the news. but you can't paint every stock with the same brush right now. and fortunately, even today's price action, you saw which companies are actually the newer flavors of the month significantly outperforming. >> all right the next guest says pot stocks are simply too pricey. let's welcome become the dean of valuation, the finance professor at nyu professor, thanks for joining us once again i read your latest blog on the valuation of these stocks. it sounds like you are extremely skeptical about the whole sfas. >> i think that there is a basis for the pricing, which is the market is going to be big.

i think we can concede it's a big market but noun much the companies have a compellinger to. none of numbers are there. none of companies out there are compelling enough stories that i would jump on and say i'm going to ride that to make money on the market. >> when you look at the potential uses when it comes to and medical, recreational, when it comes to nutri. it's easy to athe poepgs secretarier is x and that means this company should be valued at y. >> i think it's not too early to make a judgment about the overall market especially on the medical side i think it's a little too early to decide which company out there, if any of them is going to be the the company that benefits from that trend let's face it there are more companies coming into the space. and they don't have to be pot

companies. many conventional companies are jumping into this business as we go along one reason i think u.s. companies held back is because of the fact that you have this two-level regulation one at the state level where nine states allow it for recreational purposes and federal level nonetheless we resolve that u.s. companies will be handicapped. >> you say right now not to buy even the etf and also the companies related to pot but may not be a direct pot stock such as a gw pharma and scott areas miracle grow they have been swept up in president pot mania, you don't like those either. >> but i'm closer to buying those than i would be to buying pot stocks i think scott miracle grow, 20% lower. i'd add to portfolio it's a small play but more promising for me. >> it's karen let me ask you something. i read your piece which i thought was great by the way i o you talk about perhaps some disappointment if states do -- more states legalize pot that it

won't grow as quickly as the market might think you talk about a little bit that. >> i speak from the experience being in california where pot was legalized on january 1st, 2018 and what people notice in the market is that the legal market continues to exist partly because legal weed is so much more expensive than the illegal weed i have a feeling those people expect the minute that weed is legalize ds that the illegal market would cease to exist are really not -- therapisting the point. this is a mechanic where it's going to be a slow battle to win the market even if it's illegalized. >> so when you see a canopy -- put me this constellation brands investing an additional 4 billion in canopy growth, does is a that say anything about constellation brands in term of their valuation or where their stock should be trading. >> if you think about it tobacco and alcohol stocks companies are best suited to get into the

space, especially the recreational space, partly because they know the businesses they've been regulated and selling the equivalent of sin products they are well suited to enter the area i would expect more entry into the space if in fact the laws and regulations start to ease up. >> so one last question here, let's say these stocks across the board were cut in half it sounds almost there is no way of pinning the valuation because the potential is so unquantifiable at this point that it's very difficult to put any valuation on a stock. >> and it's a trading game, right. and this is not uncommon early in a business it's all about the pricing. which means you are going -- it's going to be built on mood and momentum and incremental information. and trivial pieces of news are going to move the stock all over the place. if you are an investor you are going to have a strong stomach to stick through the market. but i think there will be a time when in fact you will be able to

get into the market. my suggestion is to stay out for the moment >> all right thanks for your time we always appreciate your analysis professor at nyu before we get a final word on this i want to note that tim seymour is all in on long a number of neighbor names and sits on advisory boards and for tim's disclosures you can go to fast cnbc.com. >> sounds like the appropriating rightis. >> scroll above me you should play soft music his point is an interesting one. >> my question is why can we say that tesla has a first mover advantage and netflix has a first mover valuation and not care about valuations when we argue that actually it's about a land grab going out there. >> why don't you like tesla? i mean if you can spun the valuation argument for pot why not tesla? >> here is why because i think that first of all tesla has enormous competitive forces around it. i think tesla can't -- they can't ramp up they have operational challenges

there is fantastic operators in the cannabis pace proven making money in an environment where they were not banked with everything against them. >> is it the same though when you look at tilray versus aurora versus can'ty por the other producer who it's about cost of production per ounce when it comes down to it why isn't that competition the same that tesla space mercedes. >> there is. >> i'm not saying. >> there is a lot to the conversation. >> it's not oem. >> the pricing. >> it's not only cost per ounce but per gram process but the problem is potency. >> the pricing -- >> plants are being built. >> i'm taking your side. >> keep talking. >> what the problem is it's not about the cost per gram it's potency up ukd have the cheaper cost but not as much thc. >> that's fine ky tesla's performance is baier. the charge is longer there are a million ways to slice and dice but the bottom line is they are story stocks. to some extent you have to

suspend the rigger when he it comes to valuation to believe in these companies, no. >> i'm saying i think a lot of the companies are extremely expensive. i said that day one. i'm saying this no different than people throwing all the money at tesla at netflix when i think the valuations are tough to justify. >> to you big after hours netflix. ibm, ibm sinking that call under way right now. meanwhile netflix soaring up 12%. that call kicks off in 30 minutes. everything you need to know process. plus the bull market mystery a number of names that should be benefitting are getting crushed. what's that ouabt? we explain when "fast money" returns. ♪ daddy, mommy's on the phone! hi! how are you guys?

♪

be after reporting earnings blackrock sinking. that stock down 31% from the 52-week high underscoring a tee krend trend in the market. mike santelli for a rare "fast money" appearance in the flesh. >> why do we deserve this. >> don't you get voted onto the desk. >> like survivor. >> yeah. >> but the paradox in the market the assets market stocks haven't been great i know larry feng even for a dominant franchise was talking about the chals this morning >> we saw huge movement from clients, a lot of churn. and it was just i think the markets are showing that that investors are confused.

but overall because expense discipline, because of how we navigated, our revenues up 18% in our aladen business and technology business. overall it was a good quarter. but what i was disappointed in the net flows. but very explainable by some large derisking. >> yeah, and floats are not frustrate across the industry. that's one of the foovgts that has been hurting the group obviously the global markets have been weak it's not as if everybody is at record highs in the last month but fee pressure, right? and blackrock is part of an instrument of that but people don't see the end of that if you look at stocks year to date you'd never think a u.s. bull market. it dues use to be the best bell weather group. the it market decided they are a disrupted group. i'm in the saying they are right. but i think they believe that. >> kuo you can only think that

if you believe the markets go one way or the other in an viechlt where you think value stocks take precedence over growth stocks it's more time for a stock picker funds issues should see a benefit and funds have have higher fees. >> in theory you could but the fee pressure is getting to all types of actively managed products as well i think that's one of the issues the stocks are cheap based on any historical metric of how they trade they used to be a premium to the market assets managers were like owning a toll booth and it's not the case anymore the market either has it wrong or something changed. >> goldman sachs and morgan stanley have been trading awful now the last year or so. are they getting caught up in this as well >> i mean, i think you could argue the market thinks they are disrupted or at least not levered the way they used to be a strong market and strong economy. and by the way, goldman sachs and morgan stanley in large part are asociety managers. goldman likes to emphasize that

goldman sachs asset management is a big are part of the mix than it was. so the market isn't giving them credit for that in this environment. >> mike, thank you you're always welcome here. >> you don't need to be voted on just vote yourself. >> sloongs the hyperloop from the new york exchange gets me mere. >> options trader are betting a on a pounz for the asset manager. brian here to blake it down. >> not blackrock but plaque stone the put activity was huge there. trading 1.5 times that in calls in blackstone. typically two times the amount of calls versus pots now it's squud the other way a little rough but with we saw a seller of 250 oh november 43 puts for shurps they were selling insurance not buying put insurance what that meant is trader picking a level long to get the stock basically at process 59. with earnings on thursday for blackstone they expect about 40%

year over year growth. they are saying if it stopgs after earnings i'm willing to buy down at the $33 level. at least capture a premium here. i love this trade. if you want expose yush to private equity this is the area to get the exposure. and the growth environment we see what low interest rate environment seems a nice play. >> brian thanks. brian joining from us the cme in chicago. for "options action" keck out the full show 5:30 p.m. friday check out shares of ibm sinking. the company's c if fo just said something interesting about blockchain plus a battle between trump and big affirm are pharma and as the white house puts pressure on the pharma industry to change ads. could they be in trouble we'll break it down. more fast still ahead. >> "options action" sponsored by think or swim by td ameritrade

sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

welcome back to "fast money. ibm fall after hours on earnings report that call currently under way as the company cfo had something interesting to say about blockchain josh lipton is in san francisco. hey, josh. >> i checked in for a hot take with the cfra david holte. he covers the name i'll give you the quick reaction he liked what he saw with ibm's global business services segment revenue clocked in at 4.1 billion in the quarter in the segment including the

consulting group it showed some signs of stabilization. was disappointed as an ibm bull in the lack of overall company revenue growth and constant currency and another one clocking in. saying the modest headwinds offset by improves performance they noted the free cash flow guidance was mained ibmhill together bogey calling for 1830 in the eps for the year. looking for free cash flow of $12 billion. the cfo, jim kavanaugh as you mentioned mel was on c thbz after the print talked about the report mentioning blockchain. take a listen. >> we do vermont strong demand and executing very well in our industry verticals, in security and in emerging areas like blockchain where we are emhe had bedding the watson technologies

for differential wantsen health had a great quarter and we grew across all of the segments. and we are scaling that business going forward. >> melissa, back to you. >> josh, thanks. josh lipton out in san francisco. with the latest on ibm what do you think of this move here. >> steve called it a secular short position we have had bounces along the way. people say valuation is cheap. but there is no earnings growth. quite frankly with the exception here and there there is no revenue growth either. as o at a certain point you have to ask what's ibm process this continues to show you how strong a company a microsoft for example is and how poor a company ibm is on the other side. >> i mean as a value stock it hits the right metrics but had they not been in the massive buy back business they've been in the last how many years, earnings would be worse. >> i think guy -- microsoft has been able to turn it around, reinvent itself ibm not able to do that. >> president trump putting pressure on the pharma industry

to change tv adds which stocks have most the lease. about plus a peek in the "mad money" studio. teietalking about the domino inrvw after the stock tanked more fast after this why bother mastering something? because when you want to create an entirely new feeling, the difference between excellence and mastery, is all the difference in the world. introducing the all-new lexus es. a product of mastery. experience amazing at your lexus dealer.

a product of mastery. i'm ready to crush ap english. i'm ready to do what no one on my block has done before. forget that. what no one in the world has done before. all i need access, tools, connections. high-speed connections. is the world ready for me? through internet essentials, comcast has connected more than six-million low-income people to low-cost, high-speed internet at home. i'm trying to do some homework here. so they're ready for anything. welcome back to "fast money," the battle between the trump administration and big pharma heating this week as the transparency of tv drug adds comes into question. meg tyrrell with more on the

story. >> tv drug ads can be scarey enough as we've been talk about the side effects opinion the list as long as your arm now the trump administration wants them to include the list price of medicines in the tv drug ad. having in prin petition bottom of the commercial what the list price, the sticker price before insurance or discounts kicks in. the pharmaceutical industry is not in favor of this they came out with a proposal hours before the administration proposed this rule saying we will direct to a website with information about the list price and the discounts and the patient assistance that you can get there. their argument is that the list price is not a real price that anybody pays they say this could mislead patients about how much they pay for the drugs which could deter patients from going to the doctor and seeking help or trying to make the medications they say this might infringe on the first amendment rights but secretary of state alex azar was on squawk box and he addressed the list price argue and doesn't agree. here is what he said. >> the problem is almost every

single senior under medicare pays the list price or a% of list price on at least some of the drugs. 47% of americans under the age of 65 have a high ductable plan and during the ductable they pay the list price i'm not buying the pharma talking point that list prices don't matter they do. >> ant tone here from the administration is fascinating. he actually used to be a top executive at eli lilly he knows the ins and outs of the drug industry this could be a potential legal battle but one analyst says this could be worse for year industry our industry the broadcast industry because it may actually cause drug companies to stop tv drug advertising altogether that was 5.8 become in revenue for broadcast networks last year np that's how much drug companies spent as a whole according to qantar in terms of biggest advertiser pfizer spends almost $500 million in the first

half of 2018 volume today by eli lilly. all sorts of companies these guys spent a lot of money on this might not be the drug companies impacted it might be broadcaster networks, tv. >> meg, thanks meg tyrrell, this comes at a strenke time because tim and guy are starring in their own drug commercial supposed debut during the super bowl but we have a sneak peek take a listen. >> do you go to bed and wake up in the morning well, now there is a cure for that lostrex it's your key to everlasting happiness if rewires the neurons in your brain so you can be the new you side effects including, insome kney airtime arigt knee rebel sudden urges to seat street food the false belief of talking to animals appear and spontaneous singing of beverly sills consult for doctor

and get lostrex to do and be the new you. >> now i guess the administration wants to put the list price on that add. >> yeah, there is no price you won pay list or other otherwise that happiness. >> it's tough walking armed times square and feeling side effects. we are doing our best to keep it together. >> we're pitching that highest bidder i know the folks at pfizer, highest bidder can have it no doubt about it and you know they are back in the war room saying what do you think they are -- they're going to dsh plaster it all over. >> the way those guys eight the pizza. >> to meg's point is this a drug stock story or media stock. >> drug stock but as it affects them s in a throwing we exacerbate make bigger than it is eli lilly up 31% nothing stops them pfizer up 21%.

meerk up 26% they'll be fine. >> up next, final trades do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab.

time for final trades. tim. >> i do like the airlines. delta airlines to me best combination of valuation and margin. >> chair woman. >> i like that too but in the transports as well i like fedex. bounce back a little but still clean. >> grasso. >> square pitched it last night i don't have to go out of the becomes. square again. >> clever. >> that commercial was gold.

>> awesome. >> we should play it on a loop tp can we put it on the website and twitter account viacom. >> that does it for us back here tomorrow with fast "mad money" with jim cramer 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 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 happens when the president is distracte