market react to itself right now. we are below the intralay low from february and april. this is the moment when you look to see buying come in. often the day after a fed day as you said earlier is when you get the full reaction. >> down 9% on the s&p for dies are december that does it for "closing bell" today. thanks for watching. >> "fast money" begins right now. >> "fast money" starts right now. live from the nasdaq market site overlooking new york city sometimes times square traders are pete najarian. steve grasso guy dmay and the words ma made the doves cry. despite what many considered a dovish hike as federal reserve chair jerome powell started speaking stocks started sinking, getting crushed, wiping out a big rally with the dow ending down about 350 points closing at the dead lows of the year. let's get straight to our own steve liesman in washington, d.c. at the big fed newser today

steve. >> i think the smu is the market wanted total capitulation from the federal reserve but got partial capitulation at best by that i mean the market may have wanted no hikes instead it has two forecast in by the consensus of the committee. the fed said that further gradual rate hikes are needed. some further hikes needed. the market wanted that phrase entirely removed here is powell now on the change in the rate outlook. >> many fomc participants expected the conditions would call for three more rate increases in 2019. we have brought that down a bit. and now think it's more likely the economy will grow for a rate calling for 2 interest rate increases over the course of the next year. we always emphasize that our policy decisions are not on a preset kour course appear will change if incoming data materially change the outlook. >> so here the story here is what the market probably wanted and here is what they got.

one hike or none next year got two. at least that's the forecast wanted flexibility on the $600 billion balance sheet reduction. powell indicated there won't be much on that and they wanted more concern about the economy, that its fears were shared by the fed intsd they got a line of monitoring developments. there was a line from the fed chair that maybe the market overlooked and pretty dovish listen to this. >> i think from this point forward we are going to be letting the data speak to us and inform the outlook and inform our -- our understanding of what the appropriate policy would be. there is a farrell high degree of uncertainty about the path and the ultimate destination of any further increases. >> zpoit that it's hard to get away from the conclusion that stocks and bonds wanted an unapoll jetically dovish fed and the fed chairman, they heard more hawkish. >> when he said that and

answered your specific question that the markets would find solace when you asked him the question was it the markets, trade, the trump in the past mundt li month or so i felt like almost we got a capitulation they were monitoring what was going on in the global markets and observing the volatility. >> i think that's right. and i think that's true by the way. stuff doesn't happen the way the fed expects it to happen, the fed will do fewer rate hikes if it doesn't see the rate hikes are warranted. i'm going to be fascinated by the conversation around your table today. which i think is important because, you know, what did you want the guy to say? you wanted him on his knees begging forgiveness for having thought about possibly raising rates next year. i don't mean to joke or mock but i guess i am. >> the one thing he could have added to the data dependent sort of thing is the balance sheet policy if he made that also seem like

that was data dependent, it wasn't necessarily on an automatic course then maybe that would be real without saying we're not going to raise anymore. >> you know, just to be very skeptical on that, melissa the balance sheet is suddenly the complaint du jour. and i will tell you for a year and a half i reported on the fed's exact plans to -- in fact i had trouble getting on a lot of shows talking about the fed plans to reduce the balance sheets which i thought were important. i thought when i came on which i do breathlessly as you know i thought the market would react but the market could have cared less that you say the fed in 2019 we knew this like a year ago was going to reduce the balance sheet by 60 oh -- now maybe the existence of the lower achlts liquidity created by that are problematic for the market however, i will point out we are still some $3 trillion in excess on the fed's balance sheet of where it was before the financial crisis so like i said earlier, if you

had three feet of water. >> it's water metaphor then. >> and you take out two feet you still got a foot of water in the basements. it's plenty liquid. >> i would say i have a lot less water in the base are basements. still happy. >> still getting feet wet. >> it took us a bit longer, here, steve not being a senior, you know, economics correspondent or anything to realize that qt may be an impact here we'll let that stand steve, thank you great zwrob today. steve liesman in washington. >> with the december rate hike in the books and two more on the table for next year,what do yo do now and to steve's point what did you expect the guy to say? if that wasn't good enough i don't know what would have been. >> i'm -- i'm a bigger fan of chairman powell today. but that's not the the point. >> and receive said you fade whatever happens and that proved correct in terms of the broader market and i'm sure he provides levels

in the s&p pete might agree with this you wait for a day for the vix trading north of 30. which it should be already but it's not on a day where the market flushes in the beginning of the day on extreme volume and then hope that's capitulation quite frankly we haven't seen anything along those lines it might feel like but we haven't seen it. but if you are looking for places where it could be regardless despite health care got whacked. i think big cap farm aire is a place to be. not a place to hide out. but fiezers, bristol myers which i think is about to bounce eli lilly i think they work. >> the vix is what, 26. >> over 26 today did see a bit of psi but to your point it'snot enough and maybe that's the point maybe the expectations of guys like me sitting waiting for that maybe it's waiting for godot maybe you don't get the bell where you get the huge flush on volume as you mentioned and the spike in the vix although we have seen buyers of

vxx and vix itself looking for a spike at some point. we'll see how it plays out i think of the commentary about going forward from mr. powell that's is something -- i embraced that. that tells me they are truly to be. >> data dependent. >> not on the quantitative tightening that got me concerned process. to steve liesman's point that's the pushback i heard when we talked about it in october factored in. everyone knew it was $50 billion come off the market sheet and the market doesn't know until it knows. 600 billion equates to 75% of the fed's balance sheet from 2007 but put it in proportion. >> in october. >> in october. >> the view a different now versus two three months ago. >> the view is dramatically different. i think that's what the market -- why the market reacted as it did. look at the news over the last several months including and up

to fedex saying the global economy is slowing we have almost every single pmi rolling over inflation expectations diving to lows we haven't seen in a long time a slowing global economy and the fed is saying the economy is strong tapped it back from 3 to 20 but no acknowledgement what so far and seemed tone deaf that the economy has slowed the global economy slowed. that's why the market rolled over. >> he said there was flexibility on rates but zero flexibility that spooked the markets that and he doesn't know where the signs of inflation are or why they've been low. >> they're not there. >> there is two things why the market collapsed those two things >> guy, what do you -- >> inflation be careful what you wish for if we get inflation it's coming in a meaningful way. >> we don't know where it is. >> inflation is in all the wrong places doesn't matter we can't get wage inflation they are dying for. it's not there have you been to a dr. inflation? health care is meaningful.

a much different conversation. in terms of the balance sheet. they shouldn't have had a $5 trillion balance sheet in the first place. we can argue the reasons why it got there. 4.5, 5 trillion for a period of time no one cared. now we whittle it down it's a problem. i said this on air many times. easiest getting into the trade getting out is hard. >> the balance sheet dsh whittling down is equivalent of raising every meeting. when you whittle down you raise by 50 bps. >> steve liesman said something of the effect that a dollar in stim lass. it has a bigger impact going in than taking it off in terms of market reaction did the markets overreact today? >> well you're starting up between the two of us because i know the answer. i feel like answer is yes. i did think it was overreaction.

i thought that chairman powell handled himself well the initial reaction to the upside was based on exactly what they did then all of a sudden the more questions he answered suddenly we spee the whoosh to the downside and it seems one of these days, 600-hoint moves throughout the day. that's a combination of computers and a lot of other things, algorithms kicking in that are triggered by specific words. >> where do i start? let's take the computers out of it computers on the workside and the downside that's the most ridiculous thing in the market. >> that's not true that's not true. the magnitude of the move to the downside is far more exaggerated than the magnitude to the up spd look at ups and downs we can prove that. >> computers are not -- working on both sides. it's not like you will all of a sudden quantico says we're just selling everything off people overreact on fear. >> are you telling me -- when i

think about -- and i listened to this press conference it was fascinating. was there anything it? what do you think triggered the programs. >> to me it was when they said the economy is strong and that gradual increases are still warranted, that left me scratching my head because. >> it's the difference between his view of the economy and the market view of the economy and the concern he will continue and markets want it slower. >> and data points showing everything rolling over. >> up up hum, yeah did you think the markets overreacted today. >> overreacted i mean in terms of the magnitude of being up 250,300 to being down 400 that's an overreaction i know what b.k. is saying i know the moves to the downside are exacerbated by the machines. they were the reasons we go up every day for the last eight or nine years. >> markets can't overracket. they react it is what it is. >> until you see in my opinion a

30 handle in the vix that's overreaction. >> how does the reaction we saw today educate our trading? i'm specifically thinking of the flattening in the yield curve shortly afterwards. >> the -- obviously the flattening in the yield curve, people ared worried about growth and banks. when the yield curve inconverts the economy stops. now, i understand someone is saying that it takes 18 months to two years maybe that person rhymes with oniire zwl but the markets are forward looking. >> pete. formally of wells fargo on power lunch. >> great interview. >> he said the banks are worried about the global economy he didn't mention the yield curve. >> he talked about loan growth and that's a different issue and he talked about the economy itself it was interesting because everybody including me is trying to figure out what timely gets to the banks to react to the

upside we haven't found it despite record numbers on earnings all these things nothing has been able to push them high sfleer our next guest that rhymes with oni wire says powell got it wrong. tony divider can according annuity. >> we are now cgf. >> how did he get it wrong. >> when i say get it wrong i don't take an academic view of what i learned in school i look at the markets reacted and all the credit markets said that's thektd have been more dovish in the credit markets my opinion is totally irrelevant it's what grasso said. it's the market's opinion. and all the various credit metrics worsened as the press conference went on so this is the whole reason we were on last week and we highlighted the two indicators you got to wait for to show you that the momentum of the actually bottomed. because we are in a violent market when you are in a violent market

you can't make a -- today -- truth be told i'm surprised it wasn't worse i think today is an example of how oversold the market is because the way the credit market acted i thought the stock market would have been down a heck of pennsylvania lot more and didn't accelerate to the downside in the last half hour it stabilized. i was maybe tomorrow it gets worse. i'm not sure the one thing i know is going back to tony ire or whatever the heck we said earlier the yield curve is positive. which means credit is kind of floezen up with the stock market and the way it's acting in the meeting. but ultimately once the stock market stabilizes it should reopen it's interesting just look back to 2016, mel. the bank stocks were down exactly to the percentage on the bkx from peak. russell 2000 steam azmodan same ibm same citi group, same so this isn't unique we want to make it unique.

but it's not and i was equally as wrong then and people forgot that because we stayed bullish. >> the price target for the year, what is it for thee lking golub of credit suisse and he cut his price target. >> in october what we did when we got the whoosh, wed got it in the slop hop and drop. we were in the bottoming thesis. we haven't come out of that obviously. we pushed out our target to next year still at 3,200 i don't see any reason -- my earnings estimate hasn't changed since the summertime i see how people are moving around i only expected 5% next year on 162 in earnings this year. where i got the multiple wrong was i thought everybody else figured the same thing because it was so apparent you were getting the boost from the tax cuts so to me you are pushing out the upside until well after you invert the yield curve

i have two sources i use to tell me when credit is frozen one of them is a bank ceo. i call it fireside chats i called him last week and i asked him is the lending standards changing he said no we can't lend enough. the issue in the marketplace is then shadow banking has taken over so much of the lenning from traditional banking. >> right. >> there is so much money around being lent in shadow banking they can't lend enough that's not what happens when you freeze up the economy. >> you said president yield curve inconverts and everything is fine. that worked almost every time in the last 40 years except twice in the 1980s wrp the recession happened when the yield curve was inverted not resteepenening. we had a strong dollar, tax cuts we had a strong economy. so is it different this time. >> it was the 2/10 didn't invert prior -- it did invert prior to the recession eight months in 1973 thachs the closest

i think in the 80s it was 11 months i got to check the numbers but you have not inverted yield curve after a recession has begun since the early 1950s. you could pick a different yield curve to make it work. i'm using the 2/10 and before the 2 started trading in the 70s i used the six-month prior to that again, maybe it's different this time with quantitative easing and the whole nine yards for two times this cycle, in 2011 and '12 we were global recession on the european debt kroissis 2015-16 the exact same down now we were in global recession because of the commodity krietsds and both of the periods the markets were worse than now. credit spreads were worse than they are now and it wasn't. what's different this time is the fed raised rates significantly. that is meaningful we are trending toward the end as i said in endsed aboutly can't end debt with excessive more debt. >> good to see you

tony divider it was the earnings call heard round the world. fedex fueling fierce about global growth and a top technician tells us the names at risk plus red across the board on wall street where do you hide out in the volatile market later from bad to worse. facebook slammed again today and tech gur u gene munster tells us how bad much more "fast money" in two minutes. ♪ there's no place like home ♪

argh! i'm trying... ♪ yippiekiyay. ♪ mom. ♪

welcome back to "fast money. shares of fedex slammed again today as global growth concerns weigh down the stock it could be just the first shoe to drop. bob pisani at the new york stock exchange with more >> hello, melissa. not a good earning report. and it wasn't just that fedex lowered the fiscal 2019 guidance it was the economic commentary that got everybody's attention the company said while the u.s. economy was still strong, quote, global trade has slowed in recent months and leading indicators point to ongoing deacceleration in global trade near-term. doesn't get worse opinion. this is what the markets fear and fedex confirms predictably transports led the decline. it's at a two-year low talk about oversold along with ups, other shippers expeditors be ch robinson for example. nearly 40% of the revenues from the s&p fiefd occur outside the united states.

that's why we care about the global comments. many of the companies with the greatest exposure are in tech space, including be qualcomm all the companies get the vast majority of revenues overseas not just 40% the majority all trading down today except for j-bill. >> fed chair jay powell took note of this he took note of troubling cross current in hiswards, in the economy one of the factors that caused the fed to take a more dovish approach to rate hikes. but he was not as dovish as the markets wanted where do we go from here a lot of this selling is technical. the dow jones industrial averaged closed at new low for the year below the march lows. and transports closed at a new low. this is for those who follow dow theory theory. when both indicators hit new

lows it's a technical trend. >> our next guest has been cautious of the overall market says there are two other names that could be hit by the global growth threat. chris is at the mass ma. >> let's start with the weakness today. this is fedex down 12% on the day. this was not a one-day affair. this is a stock that peaked almost 12 months ago in january. failed to make a high in june. failed in september. failed again a few weeks ago s in a series of lower highs that finished itself on the downside the stock now down 40% from the highs. frankly it's reminiscent of the 40% decline in 2015 and '16. i suspect the 150, 155 neighborhood is ultimately where this washes out. we did the most volume here today we have done in 20 years certainly a ka that is rightic moment in fedex. if the selling is close to down

where it is it not done a couple of stocks we are worried about amazon has not been able to bounce at all. we have a trend problem with the 50 under the 200 if you look at the long-term chart the uptrend intersecretaries at 1,300. the close below was a big level today. we think ultimately 13 is where this goes. microsoft, i think another example of a stock that we're just not as convinced this is done on the downside this has been the best stock in the best sector in the best index. and ultimately before the corrective phase is over they get to the good ones we think microsoft you break 101 you are looking at $90 here. what does it mean for the broader tape i think the good news is there are some early indications of maybe some tactical washout conditions but the trouble is a rally is just back to downward sloping moving averages, 2,700 i think is a cap on any rally.

look for maybe 2,400, 2450 to provide near-term support. but there are a lot of missing pieces for a strategic durable bottom we are not there yet. >> come on over. shelby will bring the chair over. >> in 2019 are we going to change back to having a say in who is allowed to vote. >> who runs the show. >> i'm good with her running the show. >> not even. >> run. >> do you still believe in dow transport they are in dow theory. >> you know what's interesting about dow transportation theory. if you lock at the broader industrial sector it has a higher r squared with the broader index with the transports the industrials have a higher correlation with the s&p fiefd than the transports. i think the correlation is.85. we have always said if the industrials are working it's easy to be bullish when the industrials are not working things are challenging the industrials is not working

is nothing new this has been a sector that's been off the playing field all year i think ultimately we are going to say the leadership conditions are taking shape for a good bottom or durable advance. we need to get the industrials back on the playing field. they're not there. >> when you look at year to date performance -- i know it's threw a different prism but looking at amazon up 30%, 7% year to date and talking about the correction being over. >> yeah. >> that means a little more fat left to be cut with the favorite large cap tech names. >> i think as we see in this business they hit the best last. the upuntil today the nasdaq was positive on the year amazon we don't think is finished on the downside microsoft as we said earlier has been the best stock, best sector for years and years. i think those are the names that have to be hit harder before we can definitively say it's finished we're not there. >> there is a who whole camp out

there saying the markets are oversold oh soda due for a balance into years end does that hold water. >> this is where i think we need to incorporate the trend work. we are stressed on the downside but rallies or corraly into a weak trend how do you use the lallys lighten exposure, sell strength, fade moves i think the 2650, 2,700 where with we broke down is going to prove formidable resistance into the first quarter of 2019. >> chris ver own strati g. i. s. >> steve has been steadfast in that belief. except for a couple of days every rally has been a selling opportunity. there have been a handful of days that wasn't the case. but today is a great example of that until you get the vix with a 30 handle that's what you have to do. >> stocks slammed after the fed decision but is washington getting ready to deal another below to stocks on a new front that story is next plus just when you thought it

was safe to get back in, facebook getting crushed on proo i havecy concern concerns. gene munster tells us how bad it could get. here is atwh's next tonight.

big story of the day, the federal reserve keeping with the script and hiking rates today by a quarter% as chairman jay powell explained his decision selling picked up. >> many fomc participants expected economic conditions would call for three more rate increases in 2019. we have brought that down a bit and now think it's more likely the economy will grow in a way calling for ta interest rate increases over the next year. >> the run off the balance sheet has been smooth and served its purpose. i don't see us changing that. >> from this point forward we are going to be letting the data speak to us and inform the outlook.

>> political considerations have -- play no role what so far in our discussions or decision base monetary policy nothing will deter us from doing what we think is the right thing to do. there is -- you know, a mood of concerns or it's a mood of angst about growth going forward if i could capture it in one thought. >> after the angst the market saw today. washington may have more tricks in the days and weeks ahead. let's get to eamon javers live at the white house eeme >> washington always has tricks up its sleeve in terms of things the market doesn't expect. one of the things here could be the breakup of in deal that seems to be coming together now to avoid a government shutdown the senate is working on a continuing resolution keeping the government funded through february 8th it's not chlorwhether the president will sign that bill if it gets to him senior administration official i talked to today said, look, we will look at the continuing resolution, send it up and we'll

look at it see what's in it. not making a commitment the president will sign the continuing resolution. that's still an unknown opinion the other unknown is the mueller investigation. we saw dramatic headlines yesterday in the michael flynn sentencing hearing, real surprises there. i don't think anyone can predict that i think washington could surprise you on the mueller front as well in the coming weeks. finally, trade, that was the thing driving the market day in and day out the past several weeks. that could come back to the forehere in washington big time as we get closer to the 90-day deadline to either get a deal with the chinese or reimpose tariffs. a lot still pending here in washington even though we moved past the fed decision. >> thank you eamon at the white house for us with continued volatility potentially on the horizon we want to talk about hideout trades, right? >> hideout. >> how would you define. >> going to the mattresses

that's the italian thing. >> exactly. >> you know that phrase? >> no. >> i didn't think you did. >> i had that convincing look. >> i was shocked. >> no it's from the god father it's from the god father which i read. >> mario puzzo. >> it's a movie now. >> really? >> a couple of them. >> it's actually one of the situations where the movie is better than the book you're asking me. >> hideout. >> i'm not a fan of this term. there is no place to hide but places to take advantage of the situation. you talked about volatility, increased volatility who benefits turbthat? again, in my opinion it's chicago americaen tile exchange. if you look november volume up i think 21% or soier over year december volumes are better than that probably. valuation you could say it's stretched. trades at a premium to the rest of the exchanges in my opinion it should. and in this environment they should do well. >> cash could be a hideout trade in this environment. >> yeah, yeah.

>> you know what else is good. cash but a dividend. >> dividend? >> i thought you said bitcoin. >> no bitcoin no dividend. but yea anyway, you could if you wanted some cash and you wanted to make that cash to work for you buy some tlt why not trading. i know we in a big rally but 280ish on the 10-year with a strong dollar really attract toef overseas buyers who are struggling with low rates looking for place to put the cash and have it working for you. if you look for a place hideout on these tough with, tlts. >> my original choice was going to be cash but it's a trading show. most people that's a little boring going to cash smart if you went to cash at 2940 in the s&p cash but right now xlu. utilities still up over 6% choking. 6% year to date looking on relatively basis outperform on absolute basis side by side

with the market for the last couple of days you don't get the protection that you once did. but maybe a little bit -- a little bit but if this market sorry to be long winded 2375 nothing is safe maybe a tent in the mountains. >> i look at something like united rentals great company slowing economy i get it look at the multiple that it's trading at right now i still think. >> hideout is just value to you. >> i'm looking for value with great fundamental stories and they have it. >> much more on the market selloff later on on in the show. including one traders $20 million bet that the s&p 500 could sink. >> bear market in two months facebook getting smacked as a one-two punch sent it toin free fall. gene munster will be here. much more "fast money" on this very busy night.

welcome back to "fast money. shares of tilray soaring after hours. following the announcement that it will partner with annheuser you busch bush to research cannabis strengths for the canadian market. what does it mean for the industry they are getting into cpg we thought it was just pharma. >> there is going to be every sector in and space in the economy is affected. appear cosmetics we've seen beverage, pharma, everything you have to boy them all but unfortunately they're all

bloated right now on valuation you can't slap a valuation on any of these it might be a little tough road hoe you look at the chart it's more than a few months ago. >> how do you get a handle on valuation if you think it zrumts and becomes a whole new sector. >> that's how bubbles are formed i'm not saying we are in that. but when you start saying you can't put a valuation oh metric on it because it touches so many thing. it's a secular growth trend. you want to buy the dips on this close your eyes put them in the drawer. >> it's difficult and a very difficult challenge right now because you have the companies -- who do you buy the marijuana company or other side trying to acquire assets the constellation brands that hasn't been working. >> it's a drop in the putback, right. i mean the impact on a big company is a drop in the bucket

compared to the cannabis. >> it's a piece you want to have somewhere. the tobacco companies all ways to try to. >> when b.k. putting the marijuana in the drawer. >> no, no you keep that out. >> just say no another day -- just say no another day of terrible news for facebook shares tanking a after the district of columbia sued the social media giant for allowing cambridge analytica after a damning report says they gave others access to data of user without disclosing including netflix and spotify to read private facebook messages in giving amazon data as well. for more on what this latest scandal could mean for facebook. let's bring in "fast money" friend gene presidents munster great to speak with you. >> hi, melissa. >> i get that facebook is caught up in the vortex and one should be careful about the headlines

but at the same time, this really underscores from an investor standpoint that there are shoes to drop left and right when it comes to this stock. >> that's exactly right, melissa. our goal is to try to fight through this noise and the easy thing to do is to be negative on facebook but the reality is there are structural problems here and essentially three layers to them the first layer is around this compliance issue, the governance issue we see with the district of columbia lawsuit, potentially more political weight in terms of how they do business. the second smu is just the simple erosion of faith that people have in terms of has facebook down right by them in terms of privacy and then does facebook and instagram make the world a better place ultimately most people don't feel better about themselves after they use these networks

because the comparison effect. and so i think this -- the best days of facebook are unfortunately behind them. i think we see that in some of the user growth numbers in the months man quarters to come. >> 'tis the season, gene and people like to make bold predictions this time much year for the next year. what would be the prediction for facebook management? would you say that sheryl sandberg is still the c.o.o. at the end of 2019? and i get that he controlling shareholder et cetera, et cetera but he could say i will be chairman or take some other position that affords there to be sort of a slate wiped, so to speak when it comes to this scandal? >> unlikely we are going to see executive level changes, especially at those thu roles. i think they are more demonized in specie situations i think they are best for the company. we are making some predictions our 2019 predictions come out december 26th.

i want to hold off on details. i think there are things that are going to happen in facebook in terms of underlying business that may surprise investors. >> pete najarian you said facebook is a no touch. here is what i'd like to bring occupy march 2018 the headlines started virtually every week we've had a nfrgt headline if a quarter goes buy without a negative headline does it become a potential buy at that point? >> i think the bulls will be there. i could see this stock moving higher based on what you described. and separately, i think there is some untapped opportunities around what's app, what's in vr and instagram has room to grow but to me that's trading around this ultimately have an investing standpoint is that there are some structural issues, issues but how it impacts society that can weigh on the story longer term

i would consider that essentially a head fake if it did trade higher. >> just one word from you, gene, because we are out of time the changes to facebook's business for the good, for the bad? >> they're for the good is a simple word. but it's too -- too little too late. >> all right gene thank you. and thanks for the tease on the predictions. gene munster of loop ventures. >> yes. >> we had facebook yesterday and i handed to you for the trade it or fade it. >> this was your only shore the short-term i'll do this but longer. >> this one i thought it was fade longer term but trade it meaning buy it shorter term based on the corporate repurchase announced if you look back someone has to get me the date. but i think it's probably right -- still above where they announced the kworpt repurchase. hopefully is holds that level check. because i don't have the exact number that's the line in the sand when to bail again.

but obviously the future for facebook with privacy issues is -- to pete's point is not going away. >> it's bold for gene to come and give us in whole list of reasons why things are going against facebook, structural problems to say the best days are behind it does that mean the best days for the stock are behind it. >> i think the best growth days. >> yeah. >> but i think a lot of people would acknowledge the best growth days are behind it. but in terms of the businesses they have ainquired and where they can go not future, in it terms of that i think the best days lie ahead i would take the other side of steve. short-term fade. we talked about 135 as a potential level. 1351, 132 now. longer term if you have the testimony airtime to stay with it which is -- it that's a bad haiku word you won't see the growth they once had but there are a number of businesses that are drivers in

years to come. >> still ahead stocks sinking deep near correction today after the fed chair hiked interest rates. one trader made a massive bet the selling could turn into bear markets. we bring you the details >> chip mass massacre. microen plunging as they update guidance we bring you the comments when we bring you the comments when "fast money" returns fidelity. open an account today. we bring you the comments when "fast money" returns at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence.

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money. micron lowered guyedens due to sinking demand the ceo discussed the decline with jim cramer moments ago. >> give me a bull case which says the stock may already be bottoming and pricing in a turn in the second half of 2019. >> the most important thing is that the end market demand drivers for memory and storage continue to be vibrant our customers 'demand is strong. customers 'demand from us is impacted in fiscal second quarter because of the billed up and then supply cutbacks kick in. >> stock slash in half from the may high down more than 50% what does this mean for the rest of the market i don't know what your take is on the ceo commentary. the end demand for memory is vibrant. >> vibrant is not the word i used maybe not familiar with the

definition of vibrant. ib it's confused >> what's going on. >> steve boiled this down the last couple of woks. overlay d ram price base the stock it makes sense i made a mistake in march, april, may, announceding as the 10 billion buyback a $45 billion market company buying back stock. they made a cyclical transition. what does it mean for the rest of the space in apple was positive at some point today i thought that was a great tell because wlaf micron said about the smartphones that gave up the ghost. i don't know what it means for the rest of the space per se but if you are looking to buy micron on valuation a couple weeks ago it's more expensive in some ways now. somewhat counterintuit disbelieve i think smh in general the semi etf is one you want out of. it's broken all types of support. we have seen weakness around the world. it's a no touch short for me.

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♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ welcome back to "fast money. stocks reeling today after the federal reserve hiked interest rates. and one trader a more than of $20 million bet the a bear market could be around the corner mike khouw with the details. >> hi, there

so on a newsy day like today where the s&p moved 1.5% to the downside it's not surprising probably that theed spdr s&p fiefd etf traded 1.3 million put contracts versus the 2 million on an average day lately where i saw interesting activity was was a big purchase of the february 240 puts somebody paying $5 for just under 42,000 of those and that 20 plus million dollar premium spend might seem a lot but it happens to correspond to just about an even billion dollars notionally i think what's likely going on with somebody at least a billion dollars worth of s&p 500 exposure concerns about further declines in the market decided to spend 2% of the total holdings hedge further declines. representing a decline of another 6% from the depressed levels of the last 30 days or so. >> how would you interpret that. >> i would say the read is

right, mike. you're looking for protection of the downside think about the cost relative to what you protect it makes so much sense i grow with your vision of this. it's not necessarily negative. this is protection being bought. >> but of course, the flipside of that you can keep buying protection and cost you a lot of money. >> it could. >> you have to be strategic with that any hedge is going to be a drag. it's 2% drag on the portfolio. in this situation, though if ucht to protect you have to pay that process it doesn't seem too terribly expensive. >> in terms of the "options action" after the fed decision, did this happen afterwards i'm wondering what activity and flow after the decision was released and during the press conference? >> so it's interesting, first of all going into it, i think there were a lot of market participants- pete probably saw this we saw speculative call buying i think some people were looking for hoping for slightly more bullish activity and news out

this but generally speaking -- it wasn'tious spy we saw a lot of volume in the etfs xle comes to mine. already trading at 52-week lows. what people are saying is we have bad news, fedex yesterday with respect to europe and china. if that bleeds into the u.s. economy, if you hold a lot of equities and you want protection, that's what i think they are looking for. >> and the triple qs is one more to add to what mike is talking about. but there was protection everywhere xme talking about metals, every one of the major indices we saw that protection bought out there. >> mike khouw thank you. mike khouw for more "options action" check out the full shofray:3w id 50 p.m. eastern time. p.m. eastern time. up next, final trades. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that.

jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

time for final trades. go around the horn pete. >> i think the exchanges the place to be. cboe, baby. >> brian kelly. >> strong dollar is not that great for emerging markets you sell eem. >> grasso. stay accounts i said xlu i'm sticking with that xlu. buyer beware if the market goes down mot bullet proof. >> a very important "mad money" coming up in 30 seconds. >> the micron guy on. >> the micron guy. the snippets of that. >> eli lilly. >> and this was a feisty show.

did it feel feisty to you? and the fact you knew what going to the mattresses was tremendous. >> i read the book. >> i'm in the chicago americaen tile exchange across the street. >> comes out cme. >> back here 5:00, "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. i promise to help you find it, "mad money" starts now hey, i'm cramer. welcome to "mad money. i'm just trying to preserve some capital. my job is not just to entertain but to educate, teach, call me at 1-800-743-cnbc or tweet me at jim cramer if you're buying stocks, it's okay you just need to know you're fighting the fed, okay and that's not a fight many people can