cakes -- was wrapping the jack liu interview earlier. my apologies to jack. >> we have to have our priorities. >> a big market day. we had a big day, of course no doubt coming we're out of time. thank you very much for watching. >> that does it for us "fast money" begins right now. live from the nasdaq market site overlooking new york city's times square, this is "fast money" i'm melissa lee. your traders on the desk are pete najarian, tim seymour, karen finerman and guy adami a wild wednesday on wall street, stocks tumbling early in the session only to stage a monster comeback we will find out what drove the big turnaround we are keeping an eye on shares of lyft. it has been a bumpy ride after session. we have full team coverage standing by to break down the big headlines but we begin with the market's roller coaster ride at one point the dow was down 589 points, but then came the turnaround yields started coming off the lows and stocks staged their biggest comeback of the year

what was behind this tim. >> i think we just got so oversold, mel. if you look at the ten-year, we were actually at 20 years we hadn't been this oversold in relative strength or how you want to measure it, but you can measure it we went from 204 down to kind of 161, 159 i think was the low on the 30-year bond we got within a whisper, we might have touched, probably a bit north of the all-time historical low set on july 8th so when you came in this morning, it was bonds, banks and brent which were driving the story, and then suddenly that turnaround tuesday that we were talking about happened on wednesday. again, i think you just came from a place of being extremely oversold the machines had gone to work. whatever you want to say fundamentals on the equity market right now are such that i think bad news is bad news i think that that's not necessarily going to be a panacea in the way it has been, but i think for a day at least we are addressing the reality. i think things were oversold.

>> we are just showing the chart of the ten-year yield, 173 is where we went out. but can you imagine that in the premarket session when the futures really started rolling over, we were more than 10 basis points lower. >> lower. >> that's an extraordinary intraday. >> i can't answer what was behind it, but we talked about this monday. we are looking on tuesday for a day with a market craters and spends the rest of the day recover, it was going to be your tell we didn't get it yesterday and we were disappoint we talked at the top of the show, we thought it was a bit of a head fake. today is that day. i have no idea if it is the bottom or not, but if nothing else, today gives you something to trade against on the long side with the number of different stocks that i'm sure we'll talk about but basically your level is on the down side in the s&p, now 2800 again, having no idea what the future holds in terms of this market, i think today gave you a very interesting tradeable bottom. >> so you feel better? >> oh, much better today absolutely. >> do you feel better? >> i do. we were all talking about turnaround tuesday and how it was unfortunate, we came in and

the market was up. it doesn't feel very fleshing out of panic or -- and so it is very, you know, very good to see it down that big it was, you know, a little scary. so, you know, i like to watch the vix and we got up to not quite 24 i mean starting to get into panicy-sort of feeling, pete can talk more about that to me it is a day where i have to, all right, i have to start selling puts even though it is really scary to do because you feel like you need the protection but you could see it collapse i haven't started thinking, all right, what am i going to buy yet. >> i would say a combination of the trade war, currency war issue we face right now, i think it was legit we were sold the way we were. have we gotten to the bottom none of us know the answer to that right now i would say this many we bring it up all the time i specifically bring it up so i'll put it on my shoulders. algorithms this absolutely that turn from noon, mel, to the close on today was unbelievable how fast that move was to the upside so algorithms in my opinion were a big part of this.

>> were they a part of the down side >> absolutely. i bring it all the time to the .net side, so i'm bringing it up to the upside. the algorithms were going to the upside it happens in both directions. it is a great example of that, karen brings up volatility we were stuck in the 12 to 14 in the month of july basically. since we have gotten to august we are 18 to 24, and this volatility, i think there will be volatility within volatility. we pushed up towards 24 a couple of different times, pulled back. today we actually pulled all the way back, back underneath 20, closer to 18, 19 i don't know that that's over with because i continue to see buyers of the vix and buyers of other different areas of the marketplace that tell me they don't think it is over just yet. >> yeah, just, you know, the intraday move to the down side was almost as extraordinary, at least to the upside -- look, i woke up this morning, dow futures were flat, down small. it was not the day it was set up to be. by the time i got dropped -- done dropping my kids off at camp it was time to feel pretty concerned and it was time to actually assess what had changed

this morning, and nothing had changed. if anything, we had some more reinforcement from fed governor saying that this could be an environment where the fed may have to change and be more aggressive the bottom line here is, again, back to the fed, i think the fed has been rendered irrelevant i think we have a case here whether it is ultimately good news, guy, i would pose it to you -- in other words, is it now good news that the fed no longer can equal good news on bad news? does that make sense >> no, and usually -- usually -- >> in other words as we are seeing the sell-off today and the rollover, et cetera, there wasn't the thinking kicking in this is going to make it more likely for the fed to -- >> again, i mean, i happen to think that central bank -- and steve liesman is coming on i don't want to bury the lead here, but we'll talk about central banks. but i think so many of them have rendered themselves irrelevant now the markets have taken over. i think to pete's point. >> including the u.s. federal reserve. >> well, without question. we will have that conversation but in terms of i don't feel secure it is a bottom by any

stretch. my point at the top of the show is i think today gave you something to sort of shoot against on the down side for the first time in a while. in other words you have a tradeable bottom we didn't have it yesterday. we talked about it i think you might have had it today. >> today's rate plunge isn't confined to the united states. yields across the globe are collapsing as central banks aggressively cut rates in the past 24 hours we've seen surprise cuts from new zealand, thailand and india they join a slew of other nations that eased over the past few months the global tightening is even putting more pressure on the fed to do the same let's bring in steve liesman with more on this. >> what's the point? seymour said i'm irrelevant. >> no, not you >> welcome to the desk. >> but to the point is the federal reserve in control here? are we being whipsawed around by what is going on around the world and in other central banks? >> i think tim is right to the extent that the markets have done substantial easing for the economy and for the federal reserve. the fed's job now is to either

meet that easing by bringing down rates or to go against it and if you look at where the probabilities are, they are substantially priced for more easing by the federal reserve. 100% chance for the september cut for some 30% odds or so for a 50% base cut now you move on and just about three cuts are priced in >> three more cuts in play >> exactly three more cuts currently in play i think that's a big deal. the question i think you have among other questions out there is to what extent does the fed have to act because other central banks are acting that becomes a question you could put in terms of is the fed the price maker or the price taker in this. it is not always one or the other, but take a look at the spread between the german ten-year and the u.s. ten-year we have been at historic -- really historic wide and now it has come in. that's what happened it is one of the things that

happened today melissa, you and i were onset this morning during really extraordinary action around the world, when the german bund started hitting all-time lows and the u.s. ten-year actually fell further, which was still on the positive side of zero. >> all right when you say the spread between the bund and the u.s. treasury are compressed, you mean in the context of -- >> barely, but some, yeah. >> in the context of a belief put forth by pimco that u.s. rates could go to zero, what then happens to that spread? does that mean that rates around the world are that much more negative >> this is where you want to engage tim, but i will throw this idea out here, among other places you want to engage tim but definitely on this one here. which is it is the price maker/price taker argument did what we see happen around the world, both in what central banks did and markets did, in response to our cutting rates? in other words if we cut are they going to cut more i don't know that we can catch

up with them i don't know that if we cut down to zero -- i mean it is hard to -- >> or if we want to. >> all of this is hard some grasp, even a discussion about zero u.s. interest rates seems absurd to me and would have seemed more absurd if pimco hadn't tweeted it out as a real possibility not too long ago but would they go even more negative such that the spread itself is what the market is setting? >> right >> and i don't know the answer to that. >> well, what i think has happened, first of all if you think back in ovember, we were at 290 on the spread of u.s. over germany if you think about where we've gone in the last, call it two months, that's where we tightened up and it really has been the last two weeks. from 30 to minus 50 on the bund, that's basically where you started to see the u.s. catch up if you look at relative value spreads, to me there's no question the fed is the price maker. the fed is the one that's inflicted this upon the world. to be clear, it doesn't mean though that the other central banks, which have had much

easier time basically spiraling to zero, and look what it has done to the banking system in europe we know what it did to the banking system in japan 35, 40 years ago that's what we're up against here i think the fed talks about following the history books, is very aware of that. >> let me ask you something, steve. must the fed be responsive to our trade policy >> no. and they really don't want to be, and they would love to condition the market not to be if you look back at what bullard said the other day, we cannot be involved in every tit for tat trade development that happens, every give and take. where the fed wants to be, which is somewhat different from where it is and where it can be, is it wants to be in a place where if you have a tariff put on, it would respond to clear evidence that it has hurt the u.s. economy. i just don't think it is in a place right now where it can necessarily do that given the pressure from president trump and given what is going on around the world >> so it is going to play

politics >> i think there's a political backdrop to what is going on i will say one more thing about this spread. i don't think the fed targets this i don't think they're in the business of chasing these yields lower. >> right. >> they do know that there is someplace where it is just way out of whack with where the rest of the world is, and that's going to at least partially animate what they decide to do on rates. >> you want to make a guess as to what happens tomorrow >> i think we will have an interesting morning, that's what i think. who knows? but what i am worried about is that all of this takes place in an orderly way when you have big moves like this, there's disruption, dislocation. i called my buddies on the repo desks and the tc markets there was some soft trade there but not the independent can of thing you worry about where you get major dislocations these where i say we have a problem.

markets can adjust and go crazy and up and down as much as they want it is not happening here. >> steve, good to see you. steve liesman. >> a pleasure. we have been talking about negative rates, negative bund rates for instance how exactly do negative rate, negative yields work our chairwoman did some homework for us. >> right. >> let's go to trade school. >> let's go to school. >> karen finerman. >> we're in this very unusual position of trying to understand what do negative rates actually mean, right? so let's look at the german ten-year bund. we can see in july things were a little better than where they are now, and it was down like maybe 28 basis points, negative 28 basis points yield. okay but what does that really mean people are really confused does that mean you actually pay interest to germany, to the german government for these bonds? not exactly. so let's look what happens -- let's look at the price of these bonds. in july germany issued new ten-year bonds, around july 10th, and rates were still negative then. the way the mechanism actually

works is you paid something north of 100 euros for these bonds, right let's say it was 103ish at the time you pay 103 and these are zero percent coupons. they do not pay any interest at all. at the end of ten years, you will get back 100. so now rates have moved more and more negative, and right now here we are, 106 so we're at about 50, 60 basis points negative. so you buy the german ten-year, and this is the most active one, most recent one. you pay 106. you receive no interest nor do you pay any interest, but at the end of ten years, july 10th of 2029, you are going to get back 100. that's the mechanism for how a new ten-year at a negative rate actually works >> so the coupon isn't actually negative they calculate it forward and take it off the principle? >> right for what the market will bear of

how much negative rates they will accept and 106 is where we are right now. >> all right karen, come on back. >> do we have that pretty piano music, "the more you know" stuff? >> "the more you know. >> if there is ever a time for that ♪ >> that's beautiful. >> soothing, if i may. >> did you have commentary to go along with that? >> no, it is interesting a lot of people seem to think somehow lowering rates strengthens economies. that's a fallacy look around the world, what is going on again, i am probably the lone voice to say this, but if everybody is jumping off the empire state building, why should we? in other words if everybody is lowering rates, why should the u.s. i believe we are in a position to do nothing or raise rates, as crazy as that might sound. by the way, there are other people out there now blowing the same horn. so this is going to go on, it can and will with that said, look at the tlt today quickly. we talked about it yesterday 143 and change was the high back in july of 2016, and look where

it traded today. so maybe you have in the short term a bit of a double top what does that mean? it means maybe yields in the u.s. for the short term have stopped going down maybe you can trade against that as well. >> well, germany, who is in the center of the trade storm. >> yes. >> you can make an argument that germany is the most aggrieved party here because they're the largest export economy in the world relative to their overall gdp. if you think where they are on a negative basis, why when you hear about the ecb talking about different forms of stimulus they could provide, let's provide futures, why aren't they printing millions of dollars in essentially bunds and buying u.s. treasuries with the ultimate positive carry trade? what that tells you is that it is going to put continued downward pressure on u.s. yields it tells you where the carry trade i think is more rooted in central banks than it is in hedge funds. the other part of this though is -- this is what steve started to talk about. he is calling around to desks around the street, repo desks. the key is if you think about

the most leveraged players on wall street, i mean around the world, you are talking about guys playing on the yield curve, leveraged anywhere from 5 to 50 to 10, on low vol instruments where they're trying to amplify. that's where we have danger. coming up, lyft hitting the skids in after hours following results. plus, the one chart that says we could be headed back to december lows one top technician will break it down teve from the nasdaq market si much more "fast money" right after this

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situ ♪ welcome back to "fast money" we have got an earnings alert on ride-hailing company lyft, the stock making a u-turn. let's get to deidre bosa in san francisco with more. deidre. >> reporter: melissa, we saw shares initially surge on the back of those big beats in raised guidance shares, then went negative as the company said its lockup period is scheduled to end a month earlier than expected but it doesn't change the fundamentals which are improving. this quarter lyft gave indication of that across a number of metrics including revenue per active rider and said it is seeing an accelerated

path to profitability, which should be music to wall street's ears now, as price wars ease somewhat with uber, lyft was able to cut down its sales and marketing costs. those include the rider discounts. it improved its loss guidance this year by $300 million. now, all of this, guys, raises the stakes for larger ride-sharing rival uber which reports tomorrow it is getting a bounce on the back of these lyft results, but, remember, uber is global even if price wars are easing here in the u.s., that is certainly not a given abroad it also has more moon shop projects it is investing heavily in, and, remember, uber has not said when it would reach peak losses, unlike lyft. so lyft analyst call is under way right now. i will get back on it but i will be back with some color. >> thank you deidre bosa in san francisco let's bring in gene munster. at first blush it looks like a great quarter. the reversal in the stock, does it have anything to do with the

lockup expiration which is basically around the corner, august 19th? >> i think so, melissa it was an odd dynamic, the results were out about 45-minute before the stock had that 10% dip, and that dip came a few minutes before the call started. so given that, i think this was related because it is about the same time that that news about the lockup seems like irrational behavior from investors that shifting a lockup period would have that kind of an impact, but i do believe that was, in fact, what is -- drove that pullback. >> irrational in that, you know, that selling pressure of an additional 275 million shares that would exist in either august 19th or three weeks after august 19th or four weeks, and it doesn't make a difference >> exactly it doesn't really make much of a difference. >> are you feeling better about lyft and its prospects than 24 hours ago >> i am, particularly about this concept of increasing revenue per user that was about -- that was up

about 23% year over year it was about 10% higher than what i was expecting why that is important is when you think about some of the comments from deidre and this competitive environment, it is a sign that some of the competitive duopoly between uber and lyft is at least subsiding in the near term that's critical because when you think about this story, it is all about laying the ground work for the long term and i want to quickly emphasize that, is that the long term has a give and a take to it the negative piece is that this investment phase, which is impacted by how much revenue they can get per user, is pretty significant. they lost $600 million in the quarter compared to, let's say, tesla for example that lost 400 million in the last quarter. but the positive -- and this is why i'm generally more positive than i was 24 hours ago. the positive is that this is still a nascent market 40 million in the u.s. use a rideshare on a monthly basis

there's 255 million adult in the u.s. so we're roughly 12% of the way there. obviously we won't get to 100% but the idea of being able to create some leverage or at least hope of leverage i think is a material step forward for the company on this earnings report. >> gene, quick question. you know, obviously the third quarter guidance, this number seems staggering to me i don't want to get too down into the weeds, but even though they have coming in midpoint positive $200 million, i think the guidance was for negative 300 million. that's half a bill dollar swing. where did that come from >> well, part of it is this leverage and specifically as you are getting the guidance is about 10% higher than what the street was expecting for september. that powered some of that. there must be something going on related to some of the op ex and some of the investments they're doing. maybe they are pairing back to get there too, so it is a impinge of both. but the most obvious is this idea they're increasing revenue per user the users, the number is

21.8 million that was essentially in line it was 3% better than what the street is focusing on. so the simple answer how they got there, we're starting to see some leverage, and part of the leverage is they're gaining market share, too. this is another important point about how i feel about the story longer term, is, yes, uber does have more levers to pull with other bets, but if you look at just peer the u.s. market, lyft grew at 70%. uber is going to grow sub 20% in the u.s. this is a second quarter in a row where they gained what i think will be measurable market share, which is some part of the equation to ultimately getting profitability. >> did you say lyft was going to grow 70% and uber would grow 20% in the u.s.? >> just reported quarter, lyft reported 70% revenue growth and the street is looking for generally just under 20% for uber for june. >> quite a differential. gene, grade the quarter for us >> i'm going to give it a

b-plus nice leverage in the business. we talked a little bit about that also see this idea of revenue per user being a positive. the reason why i didn't drift into the a territory had nothing to do with the lockup. the reason i kept it in the "b" category was we still have a long way to go this is a special type of investor that needs to be ready for a lot of lumpiness you see it with the street models getting whipped around here tomorrow. so all in, melissa, b-plus. >> gene, great to see you have thank you. >> thank you >> gene munster of loup ventures pete najarian uber is out tomorrow after the bell. >> yes. >> would you rather? >> would i rather? >> oh, yeah. >> right to it, please. >> i'm going to safety lyft. the reason i'm going to say that is i've been looking for growth. both two companies lose money, lose money we talked about that we talk about peak losses and all of the rest of it, but it seems to me unless something changes in the dialogue when we

hear back from uber, maybe it seems as if right now lyft is taking some of the share away from uber, in which case if they are and their revenue per user is as good as it sounds like it might be and the growth gene is talking about of 70%, that tells me they are eating a lunch right now of uber, at least here now obviously uber has global exposure as well, but lyft right now makes sense to me finally because maybe there's a light at the tunnel of when do they start to make money. >> and the global exposure may or may not be a good thing for the business. >> right yeah, i don't know i think all of what pete is saying is really interesting about their metrics being better i wonder if uber actually should be down for a couple of reasons. we saw beyond meat, huge quarter but they announced their lockup was expiring early they ended up pricing it in the hole, right? >> yeah. >> if lyft were to do the same thing, you have to wonder would i rather be a seller of uber to be able to buy lyft on a potentially, you know, nice opportunity to buy it in the hole verses where it is trading

on good numbers. >> 275 million shares will become available. >> if that all trades. >> right. >> what made lyft more attractive going into the ipo season for both companies was the lack of supply i mean there's a much smaller deal i think liquidity ultimately helps this company just remember, going into the ipo, remember who had the growth we talked about 41% -- i'm not sure i understand gene's numbers. i'm sure they're right but i know 21.2 million in this quarter, versus a year ago, that's 41% going into the ipo they were growing 50% year over year as far as i'm concerned it is not deceleration but a company growing at an enormous clip, much in excess to where uber is. >> i know you might be biased because of your past history as a driver. >> i would like to run the video because i was one of the original lyft drivers. look at this genius video. >> i like those gloves. >> lyft, pedro -- >> was that a mustache up front? >> excuse me >> i love the laugh track.

helping my bad jokes here. >> the white gloves were tremendous the hat. >> can we comment. >> i'm giving au commenyou a co. if you can get your arms around the lockup coming, you see the growth pete is talking about if you get comfortable with that, you buy the stock. i would be concerned -- listen, the stock trades 4 million shares a day 275 million aren't coming on one day but it is a significant number for the key takeaways for this quarter head to our website, cnbc.com. i'm melissa lee. you are watching "fast money" on cnbc here is what else is coming up on "fast." >> energy alert. oil tumbling as it heads back to its lowest level of the year we are drilling down on the crude collapse but first -- ♪ disco ♪ disco ♪ it is time to go, baby >> gold shining as investors seek safety. ld it the beginning of a new go rush? we're digging in when "fast

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welcome back to "fast money" it was a roller coaster ride on wall street today. a rate shock hitting stocks only to turn around late in the giveaway gold surging to yet another six-year high, but you might want to break out the drama meme because the next guest says the wild moves in the market are far from over. with nutton advisor mark green what are you looking at? >> thanks, melissa volatility is back in a big way if today's roller coast us taught us anything treasuries, s&p and gold, you see yields all of a sudden stocks started to act very much in tandem with yeels yields, moving in the same direction. it didn't happen last year you saw the break of the longer term up yields it was happening when stocks

were bottoming yields have been going down literally the whole time when stocks rallied up until may. that changed it was the break of 194 last week that precipitated the entire sell-off in risk assess. so we saw a quick move down, almost 40 basis points in yields within five trading days s&p followed suit. we see rsi is down at 20 on a weekly basis that's the lowest level we have seen in more than a decade even back in 2008 we saw rates go from 5% to 2%, rsi did not get to 20. we are oversold. technically 1.55 to 1.75 is a near term floor. but a bounce should be used as a chance to buy treasuries my thinking is we will get near prior lows for 2016 and 2012 we were really right between 132 and 137. it seems a long way off, but we're heading towards a seasonally bearish months of august of course, the latter part of august and september which are traditionally bullish for treasuries, likely to be long

treasuries that's the trend for treasuries. any sort of bounce would be used as a chance to buy treasuries. what happened in s&p we got below 2954 last thursday when the ten-year broke to the down side. this coincides with prior highs in late april/may. the common saying, former resistance becomes support when it is broken, two areas of prior resistance broken. that gave way to a period of acceleration down lower. near term we are starting to get oversold equity put to call, reached the highest level of the year. my thinking is we're close to a near-term low but i can't rule out a move down to really test the lows we are seeing back in june that's 27.32, that's will be a big level. under that we give way to a move down to test last december's lows i think it is premature. fear is starting to rally and really raise -- we're seeing fear up very quickly based on the pullback we have seen, of course for a lot of the right reasons. we see policy uncertainty, lack of a trade deal.

all of those things are weighing on investors' minds. as s&p sells off, fear is rising more quickly than expected with s&p down only 5% from the highs. here is the monthly chart. this is what is interesting. look what happened with momentum since last january we reached the highest period in rsi we have seen in over a decade this is important because on subsequent retask we move higher and higher, momentum has gone lower and lower. for me it is an intermediate concern. we saw it in 2007 and we saw it in 1998 to 2000. both of those things warn it is not a bear market potentially, but we are seeing a slowing down of momentum and it could be problematic heading into next year for now watch 2732 a break of that takes us to last december 'lows, that's t december's lows. we can't break those without thinking we are going into a bear market quickly. finally, a look at cold. we see the dollar starting to roll over a little bit if the administration uses any sort of attack on the chinese by

trying to take down the dollar, of course that will be even more bullish for precious metals. we saw gold get above the key level 1365 it was a six-year breakout for gold near term we have gotten above 1500 in the last couple of days. momentum has gotten overbought, at 83 on a weekly basis. if you are a trader you want to sell into gold initially at 1520 and 1580 for investors, you really want to stay long over the next 12 to 24 mont i think, and really any pullback is a chance to buy precious metals. we should be entering a time when commodities start to, would. we are seeing evidence finally with gold and silver, one of the better places to be in the near term. >> what do you see for the dollar, mark should we assume the typical correlations we see between the dollar and gold or dollar and rates hold >> you know, a lot of this, melissa, will have to do with brexit obviously a lot of the part dollar, at least the dxy, versus not only the euro but pound sterling so in near term you could see

the dollar sort of churning like we have seen, but in general the dollar should begin an eight-year pattern to the down side an eight-year cycle which we have seen, in my view it should be heading lower and not higher over the next few years. that weighs in and justifies my thinking that commodities should be outperformers over the next year or two. it is right to own hard assets and really potentially diversify out of stocks starting next year this volatility i think is the straw that is breaking the camel's back, and it is definitely a wake-up call in terms of volatility. >> mark thank you. mark newton of newton advisers. >> thanks. >> what does the world look like if rates go to 1, 3, 5-ish >> outside of the u.s. >> here on the ten-year yield. does the old reaction that things must be bad and the fed will step in as a back stop, does it no longer work is it hell in a hand basket at that point >> mark talked about the

correlation between stocks and bonds. to me the minute it broke down, the positive correlation wasn't good but the minute it broke down it told you that 136 is terrible for equities is my view. >> steve >> i would just answer something about what mark was talking about in terms of slv, gdx. >> you love that. >> since june 1st it has been absolutely a margin. today they were buying slv which we had seen a little bit and it has not moved as much as gold. but silver i think is ready to explode to the upside. >> the lyft earnings call just wrapping up. we will give you the lights. plus crude convening back to 50 bucks at its lows today. could the kmcommodity fire up oe again. much more "fast money" right much more "fast money" right after this but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean.

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welcome back to "fast money" crude tumbling in today's session. wti is now back to its lowest level since june the big move lower taking down energy stock, still the worst performing sector this year, but could oil fire up again? guy, what do you say >> listen, i was incorrectly wrong about a bullish in oil and wrong. i pitched devin on the power pitch a while back that's proven to be awful. with that said, some of the stocks are trading like they're going out of business. for example, look at schlumberger slb, we are trading at levels we last saw seven or eight months ago and valuation is ridiculous.

it doesn't mean the stock can't go lower, but at a certain point you have to ask yourself if crude were just to stop, if you were to look at the stocks almost by definition there has to be value there. yes, i have been wrong yes, crude looks extraordinarily vulnerable but the stocks are too cheap now. >> but you said you were incorrectly wrong. wouldn't that make you right >> i was going to say -- >> it is confusing. >> sorry. >> double negatives are generally not -- >> yeah. >> can you find value in the oil package? >> i don't own very much i'm afraid of it i am afraid of the dynamic of a slowing -- you know, slowing demand as well as excess supply, and so i -- i don't own a lot, no. >> so you asked about 136 on the ten-year that's terrible for oil. if you think about where we were at 136, oil was probably at 35, $40. so between the top-down supply demand fundamentals and what is going on with growth, it is not a time to own oil. >> pete. >> the one area i still like and i own it and probably will add is kmi i look at kinder morgan all the

time and i own exxonmobil. >> it is a utility. >> that one i had a for a long period of time it has great dividend yield. it is suffering a little bit as well along with the rest of the energy means i think the 151 level seems to be an area it is out before, if it holds again i think we have a shot to seat bounce back. >> coming up, big tech is still the hottest stock on wall street, but the faang shots are crushed since earnings we will tell you why the hot trade may be losing its bite onheplus, lyft taking off t earnings report after the bell we will bring you the latest on the conference call. don't go anywhere. much more "fast" right after this

welcome back to "fast money" tech making a big comeback along with the rest of the market, finishing if the green as stocks recovered from steep losses earlier in the session one streaming giant didn't load back up. >> oh, wow. >> netflix. >> wow. >> down nearly 2%. okay i am reading prompter. i'm not this corny in real life. i inspire to be but i could never be. >> that's great. >> netflix was down, adding to a rough call since earning some of the other tech stocks

down big since reporting, facebook, amazon, apple, seeing big declines is it time to rethink the faang names? keith? >> listen, we talked about this for a while and it started with netflix but netflix's setup was different. when facebook reported we said there was a good chance it trades at all-time high and fails. that's what happened apple very similar we talked about amazon now they're at levels where you take a look. out of all of the names you mention, i think the most significant drop-off is probably in amazon. if you really need to step a toe, thinking today is a tradeable bottom, i think amazon sets up well, mel. >> steve. >> i think the names that stand out most for me are apple. on the sell-off right now, given the quarter they reported and everything else, i think the fundamental story is intact. i know they have all of the issues and also there will be something with facebook in the media, but i still think people are not leaving the platform because of that i think facebook is a steal here. >> was netflix down because of disney >> well, it is hard to know. look, it is very clear that netflix has been down since disney announced disney plus

i think netflix has their own issues, but we've talked about this impending competitive environment that's been surrounding them it is now here now we heard about time warner and hbo max and all of that. so if you think about netflix being dead money, and if carter is here he would talk about risk adjustment returns netflix since the middle really of 2018 has been not a stock you wanted to own for that reason. >> i think i agree with pete on facebook i mean that quarter was great. extraordinary growth but in this market you are looking for growth that, you know, can be somewhat out of the crosshairs of the trade war. alphabet, i mean it was an extraordinary quarter as well. i like them both. >> but here is a would you rather >> oh, would you rather rather. >> if you were to add to the position right now, would you rather facebook or google? >> i would add google here >> okay. >> interesting would you rather. i like it. >> we are all over lyft in the after hours session reporting the moves. we will break down the big

headlines. plus rival uber, after the bell tomorrow why the options market is betting on a big move. live at the nasdaq in times square much more "fast money" still asaid. and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. - stand up if you are first generat(crowd cheering)ent. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent, but it doesn't equally distribute opportunity, and paths are not always the same. - i'm so proud of you dad. - [man] i will tell you this, southern new hampshire university

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money" check out shares of lyft, now taking off on the back of the earnings results very volatile ride here. let's get to deidre bosa who has been listening to the conference call what is the latest >> reporter: for ride-sharing it is about the path to profitability and lyft says it is getting there faster than even the company anticipated thanks to healthier market dynamics >> more specifically, we began to adjust prices on select routes and in select cities based on cost and demand elasticities we expect that these changes will accelerate lyft's path to profitability and, further, we believe these price adjustments reflect an industry trend. in terms of our outlook, let me start with revenue we are significantly increasing our revenue outlook based on our strong q2 results, improvements in monetization and continued evidence of healthy market dynamics in our core ride-sharing business. >> reporter: so those healthier

market dynamics leading to smaller losses and 70% revenue growth for lyft year over year now, since this is a duopoly, those same forces should be benefitting uber too theoretically. the big question for uber tomorrow when it reports is if the company is seeing more rational markets abroad as well and how uber eats and its moon shot projects fit into the picture. now, lyft got a lot this quarter. keep in mind it is still on track to lose nearly a billion dollars this year, and they're investing in other unproven, very competitive businesses like scooters and e bikes and autonomous driving notably, lastly, want to note it is still about $8 from its ipo price even with the after hours pop. back to you. >> thank you, deidre deidre bosa in san francisco lyft shares up about 6% right now. as we prepare for ieber tomorrow, gene munster was talking about the moon shots and talking about them in the context of levers to increase -- i don't want to say profitability, but improve their results. do you view them that way or are they going to be a drag?

>> well, if you listen to them talk about industry trend and you talk to them, they are -- all of their -- we want to call it their computer data but their ability to understand where they have elasticity in their markets, whether it is surge pricing or whether they can be charging more to customers where they can, and if that's happening throughout the industry it is part of why this is a good thing. until you can't. >> right >> you can wrap your head around that lockup, i'll say it again, this was a ridiculously strong quarter for them so you have to be encouraged it just comes down to what happens on august 19th you know, i think the smart thing to do is wait and see, but if you want to be aggressive, to pete's point, there's growth here you know, if you want to play it denied end, there's nothing wrong with the stocks in terms of the quarter. >> let's talk about uber it is again reporting after the bell tomorrow. what are options market saying about the move we should see for the stock? mike khouw is here at the plasma with "options action." >> here i am in new york in part, because uber, i took them to the airport yesterday,

so in cases like uber, recent ipos where you don't have the history that you oven have for other stocks when you are taking a look at earnings, the options market is the only place you can go to get a sense how the stock might behave because this is where the buyers and sellers of moves in the stock can establish what the correct price for it is in situations like uber where it conveniently happens to have weekly options, the way to figure out how much the options market is thinking it is going to move is you try to identify the strike price that is closest to where the stock is currently trading -- in this case it was $40. you would look at the 40 strike kaul call and put you and you add up the two together, which works out to $3.60 which is 9% of the strike point they're implying uber is likely to move 9% up or down by friday after they report. so we can also look, interestingly, at some of the activity that we saw today

because really over the last 20 days or so as it has generally been the case for uber, the flow has been somewhat bearish. interestingly today, we actually saw more calls and puts. that hasn't typically been the case the most active of those was the weekly 45 calls. those are considerably out of the money and much more than the 9% the options market is implying but notice they were exceptionally cheap. i think what might be going on here was that somebody was saying, these are cheap lottery tickets in case uber actually gives us a positive upside surprise actually, what we're seeing from lyft, it is possible >> pete, would you be interested in the cheap lottery tickets >> i always love those risk/rewards you are only putting out so much and you know what you can lose, so i would probably do it, mel i look at the road to profitability laid out by lyft, uber has to do something similar. they're losingmoney so fast it is amazing. >> they're a different business. how can they do that >> it think it comes down to lyft being the company with the upper hand in terms of some of the producer structure in terms

of what is going on between the two different rideshares. >> mike, thanks for the action we will see you tomorrow on "options action." >> no, you won't. >> sorry, not tomorrow. >> no, you won't! that's usually what i do, screw up days. >> well, you know, i was waking up really early and it feels like five weeks have gone by since monday sorry, friday. >> she's also not reading on the prompter. me iriday, 5:30 p.m. eastern tis when we will see mike along with the rest of the crew. up next, "final trade. "options action" is sponsored by thinkorswim by td sponsored by thinkorswim 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. ♪

>> time trade time look at the rain >> oh. >> hope you brought an umbrella otherwise you are out of luck. final trade time, pete. >> well, the same buyer who bought the september 9th puts in ge is back rolling it down i bought it with them. the october 8th puts today, 66,000 of those bought i'm in it. >> tim seymour. >> stocks that appeared over sold and looking for another base, look at alibaba. this is one you can own through difficult times. >> chair wrm. >> to the extent disney was hit on the attraction not doing well, nobody does it better than disney they will get that part right.

disney here. >> guy adami. >> i'm a big fan of the banks here but when citibank trades at 3% to 5% to tangible buy, it is a buy. that's where it is now. >> see you back here tomorrow at 5:00 for for my mission is simple, to make you money i'm here to level the playininv. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> i'm cramer. welcome to "mad money. welcome to cramerica my job is to beentertain, teach call me or tweet me