has a lot to say how the semi conductors trade in the overall nasdaq maybe see how the market digests that. >> which haven what we sue with industrials boeing is another one to watch. >> bogey saved the day after caterpillar disappointed. >> that does it for "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 traders are the pete narjen dan nathan and guy adami tonight on fast, the earnings wreckage ridges raies as it takes no prisoners process could the sell yofs create the best sells of the year the tesla stock surging 13% bus of something elon just did we will tell you what has ee investors exited it started out looking like total chaos. stocks slammed at the open the dow down 550 points at the lows the nasdaq getting crushed

but then just like magic, a reversal of fortune and everything was awesome again stocks staging a major comeback. the dow ending down less than a .5%. just over 1007 points. the s&p and nasdaq snapping back is it a sign the lows are in and is it safe to put fresh money to work guy. >> last night, fresh money to work i like it in certain contexts. in the context. >> not with money. >> for some reason it irritates me. >> do you believe the bounce is the question. >> i don't think so. pete and i were talking prior to the show independently we came one the same conclusion that although is felt like a bottom and the reversal was interesting and gave bulls renewed optimism, i don't think the worst is over for a number of different reasons that we have talked about and can continue to talk about. i think the situation with china continues to get worse i got to tell you something, the earnings report we have seen, especially today, had nothing to do with the fed. i mean, they had everything to

do with companies seeing a slowdown and that doesn't harken well going forward. >> they see the loading tariffs, increase material costs, freight costs. >> you're getting data points. people at richmond fed, what does that mean seeing continuation of the regional fed surveys showing the not enough skilled workers a lot of companies are foregoing projects you see input prize pressure and weakness in terms of confidence. it's not time for sarah and teigen qb dan i know you listen to them as home. everything is you a o awesome. >> everything is not awesome and in fact i would look at high yield a place to say everything is not awesome we are getting near two-year lows on high jeeld and people want to say it's not affecting credit guess what it will. when you consider that money has been almost free and the fed is guiding to a are are different paradigm in the near term i think there is reason to continue to stay cautious. but there is zero reason as guy expect to expect the concerns hanging over the market. >> was this in your view.

>> the is everything awesome pete. >> if you are looking at earnings themselves i thought they were fantastic. 3m aside looking at the rest. >> the numbers. >> the guidance was off. why? because of the chinese tariffs, right? that's one of the things affecting a lot of this right now. but i think it's really interesting. we sigh vxx bye. what that means people in the short-term feel volatility is here to stay we'll see who how long we didn't get up through 25. dan, guy was talking about optimism i know that was -- you've been right we have seen the market going down, down, down. >> choppy down to the downside i would say this i would say earnings are great but a lot of this guidance has been something concerning. and it's because we don't have clarity. without clarity people get confused and doept know how they want to react. >> yes, as far as the rally off the bottom, i mean if all the indices closed green on the day i would have said a couple day ral in into thursday earnings which are important. as we get into maga -- did the

only way is maga. >> back to maga. >> the oem way out of this correction right now. >> can we review what maga is. >> it's the microsoft, 87, amazon and the goog zblool where is your hat serious seriously put a hat on. >> i'm being serious it's the only way out. you said cat i heard the commentators say it was great. >> it was. >> that stocks is $160.02 weeks ayling yesterday it was 131 this morning on squawk box trading at 118 or something like that there was nothing good about it. >> there was there was a lot good about it. >> really. >> the problem was. >> it's down on the day. >> the vision going forward was problem. >> they said pricing remains good costs dplin helps. beat on the quarter but they didn't raise guide zbloons already horrible going into the print. you would have thought they could have said anything and met the numbers in the and the stock went up. >> maybe it's the fact they

didn't raise guidance first time since 2016 zbloopt why would they. >> exactly >> which raises the whole notion that there are clouds on the horizon that perhaps we don't know about they are taking the conservative route. >> well wrb yab o, yeah, cater party we got this last quarter out of these guys. there is no reason if you have o you are a big industrial play. that's certainly a global play john deere positioned differently much more defect caterpillar is global company and they need orders out of china that's where the trade war kicks in remember i'll repeat i don't think we got on the macroside in terms of economic data outds of regional fed surveys in anything indicating we're in the trade war on the sail. the companies need to tell that you. when they guide weaker or not as am bish as last quarter. >> i don't think it's ambition they don't have the clarity. because we haven't made any decisions going forward. >> isn't that in and of itself troubling? that in the face of a fed that seems so sure. >> a fed that's so sure.

>> so on the packet to raise rates. >> and. >> head strong process i may. >> but also transparent. we have a sense of what the fed thinks and what they're uncle likelied to. we have a strong sense of how they are going to be reacting how they are going forward but what we don't know is does the president ever get something done with the negotiations with china is this? we tone know and that's why can't can't give you great guidance because they don't know. >> this is a great setup for people conditioned to buy the dip. we are likely to see the volatility into the mid-terms. let's say there is a market likes a result there is a good chance chance volatility settled down, the maga results let's say are good. and then let's say there is some resolves or there is light at the end of the tumble tunnel to the trade thing you have the s&p back up at 290 oh like that into year end that's the best case snoefr over the next two months. >> do you think that's happening. >> listen, i think interests a scenario where the mid-terms

don't really -- they don't cause volatility post election and i think there is a scenario where if it goes the way the current administration where they have now the ability to kind do what they need to do on the trade front. >> i'll get back to you, jeremy was down 2.3% near december 2016 lees the rest of the world is suffering. >> at what point should we be concerned about how the rest of the world is doing in relationship to the u.s. does something have to give. >> until the last couple weeks nothing had to give. we said the u.s. is it's own and we brought up deutsche bank and european banks have been a drain. now the question is, why is citi bank -- did citi bank make a low today. >> yes. >> there is a reason they made the 52-week low i think it's the exposure to europe of course said deutsche bank is contained not systemic i have no idea chlorry but i captain say capturingically it's not

systemic the way i can't say it's not contained. >> everything is not sawsome. >> if they play. >> across the board that's the agreement well the next guest the says the market become is in sight. let's go off the charts with chris verrone a strategic research partners to break it down. >> yeah, i think when we look at today's price action, namely reversal off 2691 at about 10:00 a.m. maybe there was one thing missing today we didn't get the good flush in put calls. what i want to see here if we take this in the context of the last four or five days we probably have to get the marketed above the 2760 level that's the downtrend from the last four or five days but what i think is notable this is the percentage of stocks making a one-month low on the s&p. this hit roughly 80% about a week and a half ago. when you tend to see the spikes you're at least in the ball park of putting in a tradeable low.

whether it's 2691 this morning we suspect we are in 2 or 3% of the tradeable low. but looking at the sectors we need to be careful about what is leadership and what is not this is the industrials. the percentage of stocks down at least 20%. we're right up there in the ball park of how bad 2015, 2016 got and frankly pretty close to how bad the internal weakness was in 2010 so i think when we look internally this has been a spot of really meaningful deterioration. this will take time to repair in the sector conversely, looking the a a sector like health care there's been little internal weakness the number of stocks down 20% or more has not expanded. this is a leadership group this is the type of stock we want to own coming out of this i'll give you one more really the apple chart has not deteriorated here. apple made new relative highs. i think the message is as the market tries to find footing we want to focus on leadership

here for us that's health care. for us that's apple. that he that's how we play this. >> chris come on over to the desk. >> no questions. >> no question about it. >> no question about it. >> why get mad at me. >> i'm not it's just gratuitous. >> chris it the pantheon. >> he is a panting glon, part g partenon on pantheon. >> 276 is the level we need to clear. >> yes. >> what does it take to get there. >> i think the low was 2691. i think can you reasonably argue with where we are with respect to the calendar you're within the ball park of a tradeable low. i think the big question if we play the long game, what are the first six or nine months of 2019 look like, the quality of whatever rally we get is telling us about next we are year. does the global leadership expand does the world get involved in does credit behave

here again i think those are the questions that remain moving into next year that will tick dictate what the first six or nine months along look like. >> one of the names you focused on was apple, looks constructive we know there is a positive sentiment around the fundamentals not reporting in until november first last time they reported the stock wend up 10% then kept on going. does this stock in this market have this that ability to do that next week when they report if it's a beat and raise. >> i think it about it from this perspective. every quarter in the apple numbers, the mood around the street is negative and that's certainly no different than as we approach the numbers next week. i would say this every single opportunity the stock has had the opportunity to disappoint it hasn't we have to respect the relative strength here. this is a leadership stock frontingly we think about the market cycle, it's hard to reset the market cycle until the big leaders ultimately get hit apple hasn't gotten hit here yet. >> how about relative weakness

high pressure looking at small cap stocks what do you see in the correlation there. small caps ultimately led the s&p last year and into the peak of the s&p and have underperformed down 14% from the peak. >> us areal 2 down 14. about a large% of us russell 2000 down. that's where it bottomed in 2015 ob 10u6r, 2010 as well pl we are in the ball park there but tim what's been notable as we talk about small caps weak, u.s. weak. em has started to firm a little bit. look at em credit. look at em currencies. >> currencies for sure. >> there seems to be a little bit of a different messages. the market stock got hurt or relatively outperformance. >> are they a precursor to the em stocks firming. >> emm stocks made new lows em credit has not em currency has not atlas a tone change the dollar should be strong yen should be stronger the fact that it's not is notable. the riskoff tone abroad seem to

be abating the last week or so. >> chris great to see you chris very johann of strategyis what did you do pete. >> i didn't like what i saw in the markets. i saw the vxx and thought down 40 oh or 50 oh points. this could be a days to finish down a thousand or finish the day where we did are where we rally back up. i thought tharp there were dunts i missed them i didn't want to chase. tomorrow is interesting trading. >> tim. >> today was one of the days we felt we could case cade significantly lower. and so for investors that hung in there they got reenforcement which they have had -- had it october 11th it could be the machines are in charge i just urge you to fine the companies that you own that you know the most about, the ones you should have the highest kchks and we should be doing nothing on a day like today bus nothing change for them. >> he is the head fund manager calling for a 50% correction in stocks the today's action changed his

tune mark will be here. plus check out texas instruments. the chip maker falling 5%. the conference call going on right now. we will tell what you wall street is saying about the stock after the report and don't look now but tesla is soaring. ahead of earnings. it hasn't reported yet and we will explain what's behind the move live from metis square in new york city. much more "fast money" right after this

welcome back to "fast money. amidst the market chaos an unlikely store emerge. tesla, the auto maker roaring back to hive, soorpg 13% fill low bow breaks it down from kmi. >> tesla usually reports the quarterly earnings on the first of the month the second month after the quarter ends so we were not specking in until perhaps november 1st then tesla said wait a second we are reporting on wednesday that immediately got people thinking includingdom adam jonas of morgan stanley maybe they have positive move and moved up the timing of the report it's possible to report a slight profit for the third quarter which is what many people have been talking about for some time we know the model he three helped in the third quarter. and then this note from andrew

left at citron research. bay basically saying plain and simple tesla is destroying the competition. remember, andrew left has long been a short seller on tesla shares and has long said stay away from the stock. why does he think they are destroying the competition well there are a number of reports, clean technique being one saying look at motdle 3 sales and model s and x in the united states by their calculation they are by far the best selling ev in the u.s pointing out that tesla does not break out sales by country there is no way to confirm these numbers. but this is one reason why andrew left says we think this is going to be a great third quarter for tesla. and that they are killing the competition. remember, we get the numbers after the bell and then as always, melissa on your show we will get the earnings call you never know what elon musk has to say. >> that should be interesting. but all indications, phil are that ee lyn musk will be the primary speaker on the call as

he has been in the past. >> no indication that he won be. >> there is no effort to limit. >> no. >> his communication. >> no indication that he -- yeah, no indication that he will not be on the call now his behavior on the call that's a completely different question given what we have had the last two or three-quarters. but there is no indication the call, ewill be any different or out of the ordinary. >> this is going to be a good one, phil. thank you. fill lebeau joining from us chicago. pete if you report injure ohs tomorrow would you want the stock up 13% the day before. >> very unlikely and the most puzzling thing was i heard multiple times over years about andrew left and the negativity towards tesla it seems like it's ut on the of no where i'm shocked to be honest. >> i don't know how you can flip a switch and that to me makes no sense. but i'll let andrew do the work and explain the story that's not a reason to rally the stock be clear. and i would say the petitionsism around the name is what it was yesterday. having said that they have told

you 83500 third quarter deliveries the number was out two or three weeks ago. do with it what you want stock didn't do anything on those numbers. i don't think they are crushing the competition. and in fact the valuation is as losty as it's been. >> forget all the things no. it has to come at a certain point and how the stock trades if they do announce they have to raise capital. traded great the last three and a half four years but given all the rhetoric around the stock and what mr. musk has done i don't think it trades nearly as well. i said it a couple weeks ago at 320 sometimes you get yourself backwards and on and tesla is that stock. when what was this chrissy teigen song. >> everything is awesome. >> it's not chrissy teigen. >> whatever -- everything is not sawsome. >> two weeks ago tesla was up even more. you think the move in big is tesla.

it was up 17% on the s.e.c. settlement. >> this is a bear raid by somebody knowing when it's he called the short side appear he knows when to cover this time around he thinks it was a coiled spring in the event nobody wants to be short press like that. >> conspiracy theorists might think they moved up the nups numbers because the numbers were good. >> i got calls wait out on the money. we'll see if it kicks if. >> ahead of the earnings what did "options action" say in action. >> even with the 13% raise, today, the implied move about is 10% the report tomorrow on the close. on average over the it's been moved about 9% call volume was 19.5 times that have puts. nine of the most active strikes were calls today the most active strike was 18,000 of the november 3.10 calls. interestingly enough stafrting the day with the initial pop of 5% it looked like there was somebody selling out of blocks of the calls kind of maybe

getting a little relief because of the pop but by the end of the day i saw some buying and that november 3.10 call trike on average they traded about $10 here so obviously if you buy that today you look for a continuation above 3.10 between now and november expiration. >> are sorry, dan. >> you know we work through the. >> i thought you were done. >> we get to the charts. >> okay go ahead. >> we have a two-year. >> look at this thing. you know, 2.50 wap watch what that lient it couldn't break through. that might have factored into that kind of call by mr. left. and then look at this one since its ipo that's a log chart you it's mat massively underperformed the market. most of the gains came in 2013 for this mink. >> now may guy speak. >> yeah i was going to ask where could i learn about strategies like this. >> apparently if you lyned little bit longer. >> "options action," the full show is friday evening

5:30 "p" eastern time. thanks for asking, guy for more on tesla and ee month musk head over to cnbc.com first in business worldwide here is what else is coming up tonight ones fast. where is the market going next >> fair value is down about 40 or 50%. >> that's what a top hedge fund manager said earlier this month he tells us what he thinks is different now. plus this is what earnings season has felt like for investors. but don't worry, the traders will tell you exactly how to profit from the chaos. much more "fast money" right after this break t. >> announcer: "options action" >> announcer: "options action" is sponsored by think or swiryt? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better,

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details. >> hello, melissa. six of the 11 sectors of the s&p 500 in correction territory down 10% or more from recent highs. materials are the worst performers on concerns about the china slowdown, concerns about tariffs, concerns about higher costs. but it's a tiny part of the s&p, only 2% of the weighing. it doesn't matter that much. but industrials are a different story. they are 11% from the recent highs, also in correction territory on the same concerns, china slowdown tariffs and high her costs but they are 10% of the weighting in s&p they do matter when 3m and caterpillar move affolter the s&p moves energy stocks are 12% off recent highs. crude suffered the biggest daily loss in three months as inventories keep building. that's the main story. but there are other stories, the saudi energy minister said the country would continue to increase production. sanctions on ironen oil november

4th. financials unloved throughout the year but particularly the last month has been ugly since jp morgan the reported most banks sold off after earnings in the last few weeks but there was a glimmer of hope. the recently nall banks, the zions, huping ton bank shayrat, fifth third reported decent earnings traded up that's a change. you throe in thes consumer skrergsary where auto appear and builder pushed 10% off the highs and the in youly formed kplungss sector twitter and facebook and alphabet in that group well off highs. the good news for the bulls today -- very obvious- there was clear sign he is of nibbling on the beaten up sectors i highlighted all day. semi conductor regional banks and the home builders all of which rallied off a significant selloff at the open. home build action stocks whopping 34% off semis weak as well we'll see if that continues tomorrow back to you, melissa.

>> thanks, bob home builders, regionals, any of zblees well -- we talked about the bank of the ozacryes the other day. it's clear that regional banks you can't lump together. they are individual stories some make sense some do not in terms of home builders stay away from them they have raised them in terms of valuation i have to give cudo to dan who said bristle mice is trouble interesting thing about briflt competition with merck is not going there way. where it levels we saw for oh or five months maybe bristle is putting in the short term bottom but health care that makes sense ex-bristle is place to be. >> looked like a safety stock traded well off the bottom and it's not straight line down. and listen, the other thing about semis we are getting to techs later in the show.

but this is a cyclical group that's been telling us a lot for a long time. so i think that we're getting a broader read through in tech when we see the supply chain and it doesn't look great. >> i don't know if it's over for materials owner. because one of the things i saw was a buyer of puts in u.s. steel abname we have good trades in as well but now it looks down. >> rolling out of the november 26, november 24 puts it seems like people are aggressively saying look i press my bets this is going lower. >> just quickly home builder polty had agreed numbers the energy space is the great space. >> two weeks ago our next guest warned a meaningful stock correction was coming. >> fair value is down about 40% or 50% that doesn't mean we have to go to fair value. but if interest rates normalize, liquidity keeps falling, if earnings don't -- or if earnings go to where i think they go

which is lower, i think we're going to have a meaningful correction. >> let's bring in mechanic yusgo chief investment officer at morgan careen capital management. >> hi, mels aif. >> oh i was on the other side of the interview and my jaw drobd are dropped when you said down where 40% or 50% where are we in the process. >> it's a multiyear process as we talked about after the initial comment, is i think we are playing out just like 2000 we have a tech bubble in 2000. we have tech bubble 2.0 now. the stocks are rolling over. the cyclicals are rolling over by the enof 2000 starting september we were down about 9%. then the recession in 2001 town another 14%. then the really bad year in 2002 following 9/11 hard to predict something like that. >> when you make comparisons to a tech bubble in 2000, i mean knows are fighting words, mark and the tech sector looks different from how it looked

back then. valuations for one are no where near where they were back during the tech bubble. i mean we are much closer to market multiples on a lot of technology i mean of course there are pockets of highly valued tech. but closer to market multiples as a seconder compared to where we were back in 2000 >> sure. but it doesn't take the whole sector to go down. i mean, you have netflix trading at 200 times ev to ebidta. not -- and amazon trading at 200 something times. these are stratospheric levels if merck sun says if you pay my ten times my invest view i have to pay you all my ref view ten years. hard to do that if i pay taxes and impose these are silly numbers. we started the downward momentum you see all the sectors rolling over one by one. earnings disappointment, big

earnings business appointments today. it's hard to make a bullish case at this point. >> mark, it's tim we've been talking about global markets a long timeyou and i irgs the question i have is isn't there fair value out there though and how do you explain the underperformance because this is as stark as we have seen in a long time. >> well, fair value is a really simple construct, right. it has to do with the discounted stream of future cash flows. one of the things that has pushed stocks to stratosphere he can levels we are the second most overvalued we have been in history. on average about 109% over value when you look at the different valuation indicators, the people watching and that's second only to the tech bubble. why did it happen? well it happened because interest rates went record lows when the rates are low people are willing to pay a higher price. as the fed raises rates that crush goes away and we're going back to fair value >> but, mark, what measures are you talking about because price to sales i grow. but i don't agree on pe or price to book.

you are saying this is a composite measure i don't know what that is. >> talk about pe 10, the schiller pe second highest in history. we can talk about forward pe, normal forward pe is closer to 11.5 we're at close to 17.5. very different part of the problem too is everybody is looking at the last 20 years inof the last 40 or 50 years. the last 20 years are polluted data by the craziness of 2000. >> so what do you do in this market environment, mark it sounds like you would be short but according to my notes you are going to hideout secrets like health care, utilities and staples. >> we have been hedged all year with a d i think hedge funds are outperforming dramatically hdge is a place to who hide out. dwsh is a place to hide out. i gave you some notes on there are places inside the market that when the markets turn from offensive to defensive you can

actually hide out. if you want to be long equities, which we are only about 40% net exposed, we're overweight things like health care, overweight starting to look at things like utilities. overweight things like staples. >> and markets. >> going to starting to fish in emerging markets, they've been pummeled some of the emerging markets down 50%, 60%. china down 34% we like markets on sale. we are value people at our core, like to buy what's on sale. >> mark we leave it there. thanks for joining us we appreciate it. >> sure. >> mechanic yusgo morgan creek asset management. >> would you nibl on em. >> i like brazil i see a similar set up to when lillian took power in the elections and where valuations and commodities are i don't think em is particularly cheap it's under performed the s&p by 22%. this is as low on a relatively basis since the crisis i think it's overdone.

chris talked about currencies and the credit firming up they have. >> mark talked about pe levels and compared 11 forward to 17 forward. but i think he asked to acknowledge the idea of growth and the growth is much different in let eye of the companies. so you can find great pe with incredible growth out there apple, microsoft, names within tech and fb obviously the boom names as well. i think it's all about individual names and what you decadent select. >> check out taq instruments getting crushed after hours. chips some of the hardest hit in the recent selloff instant reaction if wall street and not just techs getting wrecked but the trade ertz have ewe names that looked so bad they ghmit actually be good actually be good more "fast money" just two

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welcome back to "fast money. we've got the earnings alert on texas instruments. let's get to josh lipton in san francisco. josh >> mel let's start with the hot take from the street i checked with a couple of guys covering this name the saying not good talking about print. we have been talking about the semi cycle rolling over he told me semis will be down tomorrow. anything broad based will be exposed. i also checked with hans mosesman from rosenblatt he said his outlook down 12% quarter of quarter 3.8 billion below consensus. he said weaker trends across the

board for analog skens you view was for a slight miss this was a bit worse than expected t.i. can execs on the call talked about slowing demand for products specifically industrial demand slowing to upper single digit growth automaticive episoded it slowed from previous quarters as the q 49 outlook he hadding into a softer market they told analysts they will try to execute and be dplind they focus on the industrial and automotive markets the ti is down about 7, 8% look at the smh down 11 processors month to date. the etf down for the worst month since 2010. >> josh the liften in san francisco. low backing at semi conductors exposed seifer semi for one down 3% and xpi has major exposure particularly it to auto and

china down 2% what do you make of to it. >> that's the most important take away it's not the pc or smartphone supply chain you but it's industrials we are seeing the weakness in the industrials. this is confirmation for a stock already down 20% from the all-time highs it made back in january. this is a theme people it's not a little blip. >> what's the name of the show. >> "fast money," tim. >> semis -- >> it says right behind me. >> semis have been dead money. >> not all semis >> if you look at the sector again you could have checked out a year ago and been the same place you are now. maybe that's a good place. but we really started selling off in march from the highs down about 20% on the smh overall that's exactly when we got information on the trade front is a coincidence i don't know even though we think the chips are uber cyclical and uber leading. it could turn dramatically if we get a turn on the trade rudder >> i like to give compliments oh

the panel. >> thank you guy. >> that's what we do i go to dan nathan to my right. >> wow a lot of love. >> makes me uncomfortable. >> really uncomfortable whole left side of the desk. >> i flagged taiwan semi a few weeks ago saying it was a bellwether if you look how poorly that traded it's interesting. texas instrument quickly in december texas was a $94 stock we have round turned the last 11 months does it get interesting in terms of valuation the guide was miserable but tomorrow do you flush out big volume make it's a opportunity. >> multiple problems here because of the fact when you look at -- where is the demand from talking about the slower in autos industrials that's a problem and the expectation was extremely high so maybe this tufl starts to lower the bar a little bit for those other chip names that maybe aren't as exposed those capturings and maybe in other categories can do can do well. >> what are you talking.

>> >> n individualias has gone down. >> nvidia has gone down in a straight line the last two weeks. >> they we all know that -- that aspect of it no seriously. >> ooh. >> twin box twin box. >> i disagreed the last thing you said. >> hey. >> do this or that this is the big mosaic if you listen to mark talking about top. tops are a process right if you take the inputs and put together you get the sense that we have a very weak economy. we have a weak expected earnings growth that analysts >> why is that do you think -- do you think that's based on what's going on right now? or do you not agree with the idea that. >> here we go. >> what's happening right now is people don't have any vision going forward. >> that's part of it. >> us about a of the tariffs. >> when it comes to the markets. >> the 80% of what's affecting the markets right now. >> there is aulgs the unif foreseen thing you look at 2000, 2003 bear

market, the nasdaq bubble burst then 9/11 at the end of 01 and corporate earnings fell off a clifr. >> he is really jess tick lating >> what i'm saying is this uncertainty may last a while we may see the global growth slowing. we can't decouple from it maybe earnings in the u.s. haven't been hacked enough for 2019 and maybe we are expensive. >> maybe we are coming out a situation when you go back to the. >> last word to pete. >> why does he get last word. >> because i say so that's why. >> just like mark was talking about doing comparisons, the problem is when you compare apples to apples it's one thing apples is oranges is different opinion. and the problematic the multiple at different nimes other than the nvidias of the world there are many multiples still palletable. >> cut from that earnings to 2019 this. >> stop, stop. >> going to maga zbleen. >> still ahead, earnings taking the market on while ride today the dow dropping near 500 points

ending just over 1090 points down how do you know what's save era safe to buy amid the chaos courtney reagan slitting down exclusively with the target ceo moments ago. outhcoumsomething very bullish abt e nser abt e nser we will bring you the comments go ahead, ask it a question. tecky, can you offer low costs and award-winning wealth management with a satisfaction guarantee, like schwab? sorry. tecky can't do that. when "fast money i ca... are you getting low costs and award-winning wealth management? if not, talk to schwab.

well back to "fast money." disappointing earnings from 3m and caterpillar taking the markets on a while side and underscoring the trend this

season selling. dom chu in the newsroom breaking down the earnings and winners and losers dom. >> melissa this season so far has been about the haves and have knots, tale of two cities best of times worst of times today's trading action continued the trend. the the companies reported so far this season, finding that around 3/4s of them so far posted a stock dropping meaning at least for now it appears there is a sell the news type feel to the market some of the negativity kerg through more than just today if you look at netflix shares down 3 e4% since the earnings report after the initial pop shares of bank of america have slid around 5% since the earnings report. and then there is big blue, ibm still struggling to convince investor that is the growth initiatives will set up for longer term growth though the shares were down around 10% since the report. for the accent the positive

folks there are gainers on the heels of earnings as well. for example mcdonald's today closing up around 6% yes the et cetera it's only one day we see if the gains hold or paypal up 13% since its report it's also posted three straight days worth of gains now it's again still relatively early in the earning season, melissa but we are paying close attention to whether or not that whole sell the news mentality ends up prevailing or not. back to you. thanks dom given all the moves -- >> i feel like we need- the morale on the devg is down it would be a good time to play a game. >> you know i think you're right. i think you're right i think -- i think what we're going to do is play a little trade it or fade it. >> love this game. >> all right i'm not. >> guy and dan are they on the same team. >> i guess. >> yes. >> let's start with the biggest looser out -- ibm, pete trade it or fade. >> at this point in time you can still trade it i own this stock.

>> you own ibm. >> i do. but i am waiting for some possible changes because i am disappointed like everybody was that's why the stock is down as far as it is because post earnings when we heard what went on in the earnings, the growth has slowed again and that's a problem that's a problem so they were growing but now they're at slowing. >> and there is opportunity. >> on their team go there. there is zero growth in they have plenty of growth it's slowed down from where it was in the strategic area. >> to formally era formalize my view i had fade ibm. in red. >> bank of america. >> yeah. >> guy trade it or fade it. >> look i get -- there is a lot of -- a lot of blow back when i say what i'm with fade it or trade it i say fade it i've tried to be dan said something last night dan started saying guy is being lazy. i went home the whole car ride

home i thought about it. >> i texted it to you after the show. >> you said that's a lazy answer i remember it -- i remember everything. >> and he texted it to you. >> told you all about it and at a certain point i i said it on the show i tried to build the bullish case and the banks keep going lower. and at a certain point you are wrong. rong wrong analysts have price target to 34 to 36. mossle to have i say. book value on the stock is 24.25. citi traeds at book tral evalue maybe bank of america should be there as well. >> you have to be patient just like the pharma names. everybody wants to run to the pharma names. >> you would. >> i own -- i would. >> trade it. >> i would trade. >> what's the show called. >> "fast money." >> says it right on there. >> these stocks have been decent trading stocks the only thing i would say is that this has not made a 52-week

low except the xlf made up by bank and all the peers did make a new low today. that past support becomes what now. >> guys i have done this before. >> he played this before. >> paypal bright spot in the market trade it or fade it. >> it is bright. relatively to square which was up more into the highs a couple weeks ago showed good relatively strength the earnings were there it's a strong maim growths at a reasonable price no reason to exit in one right now. if you are long it so trade it. >> nice. >> netflix, tim trade it or fade it. >> i've been fading this stock a long time unsuccessfully but you know it's up 78 petros this year down since the earnings. we thought 2018 might be peak churn it's not peak burn it's not this continues to spend enormous amounts on content. the valuation to me is unexplainable frankly. i get early mover i get the mode except for that hhulu and amazon and disney are major.

>> and you didn't mention apple. >> fade it. >> the report says apple is streaming a tv compete. >> are you guys on the same time. >> hug it out? >> everybody lovers dan tonight. >> everybody loves dan >> dan tends to -- well. >> feels good about himself. >> retail stocks taken to the woots shed amid the recent volume it will tilt but the ceo told courtney reagan something about the consumer that could have you pressing the buy button before the break the cramer cam. tonight jim looks at a beaten down group that has found a become find out the names at the top of the hour the hour in like new york! from bike tours, to bus tours, to breathtaking adventures, tripadvisor makes it easy to find and book amazing things to do. so you can make your next theip... monumental!

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xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. welcome become to "fast money. courtney raying. just spoke exclusively with target ceo moments ago let's get straight to what he said hey, court. >> high, melissa brian cornell says he feels more ready than he has ever been going into the holiday season. i asked him if i still feels as did he in august that the consumer is as strong as he has ever seen. here is what he said >> for the u.s. consumer, you know, they're at work. they're seeing wages rise. their confidence is strong they've been very, very active in the marketplace obviously our traffic has been up so i think for the holiday season in is going to be a really strong holiday season our focus is on making sure we capture market share and delight

the consumer throughout the holiday season. >> no changes in the health of the consumer since august 22nd for you. not that we have seen in the u.s. today obviously we look to 2019 and beyond looking at the consumer each and every day, you know, they're in our stores, shopping online, they're shopping multiple categories and as we check consumer sentiment it's still really high >> target detailed the holiday strategy and really the main focus is making shopping easy. target is giving shoppers basically seven ways to shop, buy and ship, including for the first time free two-day shipping with no minimum order for the holiday starting november 1st. >> hellsa. >> all right, court thank you. >> courtney reagan pete is this the story of the consumer or the story of the target consumer. >> injury it's a little bit of a combination of both. but he talked about consumer converse he talked about traffic. but the categories multiple categories that's differences target from wal-mart

wal-mart of a% grocery taggart 20% of each that's we wins and beats wal-mart. >> i think the only way that would change that very bullish outlook on his consumer would be if the stock market went down precipitously between now and the end of the year. >> i don't think so. i think the black friday, this holiday season is crushing the xr tfrmt is down 11% you buy from that. >> final trade is next

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>> first data corp fdc giddyup. >> tim. >> intel, stay in the semi. >> dan. >> paypal stick with the names they got marked down and did okay. >> i have a question for pedro what does america run on, pete. >> duncan. >> yes, it does. >> giddyup. >> that's do it for us on fast more tomorrow at my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to teach you call me at 1-800-743-cnbc. or tweet me @jim cramer.

only one question that matters here right now was this a real bottom today we had an incredible reversal with the