people are talking about global stimulus. >> is this still the kind of market that can be rescued by central bank stimulus, fiscal stimulus, payroll tax cuts, german stimulus? >> it's twitchy. >> it could show you we're a little jumpy that is it for the "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlooking new york city times squa square i'm sorry, dan nathan and guy adami, the bulls are back, baby. stocks rallying to kick off the week whatever happened to that bond market panic of just a few days ago. we are digging in. we're also keeping our eye on shares of baidu. we'll have more on what is driving this big surge ask later the great american consumer being put to the test we'll get a flood of retail

results. we begin with a news alert on big tech let's get straight to seema mody with all the details. >> attorney generals are reportedly moving forward with an antitrust probe on big tech that according to "the wall street journal," we just have here attorney general from mississippi saying continues to be concerned with the aggregation of data in the hands of a few and i'm always watchful of any monopoly. as attorney generals we need to evaluate and address specific conduct utilizing our existing antitrust and consumer protection laws. one way we are doing this is a multistate working group called the tech industry working group. melissa, we know big tech has been under fire, under scrutiny over privacy and regulations this further moves that forward. our continuation of a trend, i should say based on this report from "the wall street journal. that again the attorney generals are moving forward with an antitrust probe. as we get more, we'll bring it to you >> seema mody back at headquarters

the pressure's coming from all sides. federal investigations possibly, state investigations possibly. guy, is this truly going to be an overhang for technology though >> we've got this -- it seems like a month or so ago when we talked about, look, it's basically three stocks in the cross hairs. you want to throw in apple for good measure, that's fine. it's facebook, alphabet, and it's amazon, and the market didn't care a month ago. i'm not certain why it's going to care now. it should but the market looks past it. although i think the headline is significa significant, i think the market's going to give them a pass once again. >> i'll say this, the market did care for a little bit in early june when the doj had facebook in their -- you know, in their sights facebook traded down to $150 it was brief, but there was a bit of a panic i think what's really important is that the states are likely to stick around here. the ftc and the doj, they'll be ultimately some big settlements. i think the issue here is it adds a level of cost and complexitie complexities the working group is 13. it could get much bigger

is it an overhang? not near-term. ultimately as we get into the balance of 2019 and 2020 the election year is really important. one other point about facebook, google, their gross margins have been going down. it doesn't give them the leeway to do some of the things they want to do with their cash piles, make acquisitions and other stuff. >> look, i have to agree, and google went in that june moment really for the company that was already, you know, reeling from the first quarter earnings, there was some negative around the stock. you dropped this on it, it went from 1130 almost down to a thousand, i'll leave the technicals for somebody else the irony here is -- and i think we've talked about this -- if you broke up these companies, some of the parts, facebook and google for sure trade cheap. there's no question about it, and there's no question about it that you bring in the state ags as opposed to just a federal probe or a federal push of some kind and you certainly raise the stakes, no question about it

election year, i think it's significant. again, i think the state ags need to be on record having said they're concerned about this. >> the overlay of the market volatility, and you wonder is this going to be the thing that actually is the pressure maybe a moment in time right now is different from the moment in time in june when it was first revealed that all these agents were actually looking at these tech stocks. >> i think we're getting closer to the end of the year you're starting to see mutual fund year ends coming up in october. people are in that part of the year where they're thinking of taking some profits on things that have made big gains this tech sector regulation issue, it is just not going to go away. yes, the street has been somewhat unworried about this, every time we get one of these bits of pieces of news, the worries pile on a little more. i think this is just the beginning. >> and her point is important because i think there's two components of the risk here. one is a -- you know, a cost of regulatory environment that has changed, and we still don't know where that's going the other is clearly a cost on

data and protecting data that's independent of what the feds do or the states do this is hackers. this is the privacy issue. this is actually treating their number one product, your data with safety and the cost that facebook's -- >> here's the real irony, users don't care they've dem vonstrated that we haven't seen users leave these platforms. we haven't seen advertisers leave these platforms. it's a really interesting thing. it seems to be bipartisan, and to lori's point it's going to g on for a while there's no simple resolution. >> i don't want to discount what dan's saying facebook went from 180 to 163 on june 3rd and spent the next month going back to 210 or so, so yes, it cared for that brief moment in time, but with that said not all that much i do think this is an important headline without question. i thought the headline a couple of months ago was important. at a certain point, the market cares. we're going to talk about things the market should really care about. that to me is the big overhang this just adds one more log to

the fire. >> i would just ask yourself, i mean, melissa you mentioned it earlier. there's pressure coming from both sides of the political aisle. why do these politicians feel comfortable going after these companies? there have been public opinion polls showing these are not the most popular companies people are still using the services the politicians feel like they have a target they can go after and get away with. i think this is going to take a while to unfold. >> and so what point do you start thinking, the politician will still go through even if users still go it's got to catch up at some point, no? >> none of us -- you guys just go through your user agreement, you click on it. you move on. we don't care. that's kind of the point there's no damages on the consumers' front right now i think that's the really big issue. >> is the market impact of all of this. if you think about where we've been since either the may tweet, may 3rd, whatever that weekend was that we went into after a round of markets been struggling and since that time -- actually, in august we've had four move at

4%, plus or minus. mega cap has been a place to run to, it's been a place of safety. google in their second quarter numbers gave you a little more insight into the areas you were concerned about and their gro margins. the market doesn't need this right now. >> that leads me to my next question, prior to earnings season everyone said alphabet would be the most vulnerable when it comes to antitrust regulatory scrutiny. and here we are, we are off the erpgs report it was a solid earnings report it rerated shares of alphabet. is that concern, the regulatory concern less because you have more visibility into their business >> it's probably the best quarterly report in the last six to eight quarters that they've been reporting i think it took a lot of people by surprise. i only say that because of the significance of the move to the upside yes, is alphabet in the cross hairs? without question lori talks about politicians i'll narrow it down. president trump specifically went after alphabet today.

>> is the downside less? >> i don't know the answer to that. >> here's an issue we're not even talking about, apple, google and amazon did not confirm. thisser all do they are all down about 10% from the all time highs the overhang here in north america, we know europe is leading the charge on regulatory issues those three companies are not meaningfully in china. what is this whole trade war about but access to chinese markets. they will not be there for a very long time when you think about this monkeying around with huawei -- >> they're not going to be in a china for a long time, haven't you said on this desk they're not even there now it's not even -- >> you think about growth to justify these multiples at a certain point. >> if you wanted china as the next leg of growth, you may not get it for a while >> i don't want to go through. >> what did we see from huawei last week? they announced an operating system to run on android phones, you know this is something that -- this is all the whole china 2025. they want -- they don't want to

be reliant on us anymore, and they want to regulate what they want to regulate, and they want to sensor what they want to censor >> we've seen these before i think this is what guy is saying that would be my final comment i'm concerned about it, but that's not going to change the trajectory tomorrow. >> stocks surging today as bond yields bounce off their lows if you watched the show last week you'll remember our next guest said we are hardly out of the woods when it comes to the rate shock. >> you could probably make the case that we're probably closer to a yield glow around the rest of the world in the u.s. it looks like it's early innings for rates to fall because we're so far behind everybody else. >> let's welcome back jim bianco jim, great to see you again. >> thanks for having me. >> they're basically telling us, they're back to practically where they were before nothing to worry about bonds also, jim, so what gives >> well, bonds did bounce back,

but they're lower than they were last monday when they made a new all-time low prior to last monday the all time low was 210 we're at 209 right now they had a great rally over the last ten days or so. they fell 60 basis points. you've got to go back seven years to find the last time they had a rally that big, and this is one of five or six rallies of the last 30 years of this size so i'm not surprised that they're kind of bouncing around. i still think the path to least resistance for bond yields is lower unless jay powell comes out and opens the door for 50 basis point cut at the september meeting. if he does that, possibly we could have a low in bonds, but short of that, if he comes out and he's not dovish enough, we could have another plunge in yield. that's what the market's trying to tell us right now. >> what kind of plunge are you predicting, and is it the same sort of degree of selloff in yields that you had predicted before or does the bounceback change your view of the bond market and where it's headed

>> the bounceback doesn't change my view. let's keep in mind that interest rates is a relative game the rest of the world matters. 60% of sovereign bonds or treasury bonds around the world are negative yields. there's only two interest rates that have a 2% or higher yield left in the world. the fed funds rate and the u.s. 30-year bond, and those rates are going to have to keep coming down with the rest of the world. i could see them going well down, you know, the funds rate should probably go down to 1.5 by fall. unless the fed gets very aggressive and they cut 50 basis points that's the game changer. short of that, i think we're going to 175 on the 30-year bond. >> jim, bianco we had a little bit of a static issue. do you agree, 50 basis points is the only thing that's going to cause the bottom in yields

>> it's interesting he says that i would say the fed has no control over yields at this point. i don't think they do. i don't think any of these central banks do although they think they do. in terms of what jim said, 25% of all sovereign bonds have negative yields. that's not bullish in my world obviously the market's looking past, the last four days in the equity market is very good the problems that got us in market turmoil last week didn't go away today. >> i agree with that when we look at it from an equity perspective, we don't think risk is off the table at this point in time it would not surprise us to see the s&p 500 approach 2,700 where you can finally breathe a true sigh of relief. >> i'm curious because we have so many strategists to say lower yields are great because it provides you a cushion for valuation. >> yeah. >> and at some point we crossed that line. >> i think we've already crossed that line. we do generally see that when rates are coming down that pe multiples go up. ges what, when we hit the 30, 25ish top in s&p, we did all the

multiple expansion we deserve to do in this cycle you have to remember the market has been pricing in lower rates and cuts from the fed ever since january. we kind of got into that easing rally mode, and unless you're in a qe environment, the multiple expansion we've already seen is as good as what we tend to see when the fed is easing i think it's done. >> i think we had a case, folks where good news actually could be good news again we're going to get fed minutes on wednesday i don't think those fed minutes are going to be as dovish as people want them to be a voting member of the fed basically made it sound like he doesn't want it to go. he doesn't like the ramifications. >> he's been that way for a while. >> it's interesting to hear the fed say this the fact that we went from bad news is good news to a point where i actually think that good news is good news or bad news is bad news, i hear that and i think actually based upon what you heard the administration, whether it was larry kudlow, all the weekend press, the retail sales last week, if the consumer is so strong, why are we in such

a bad place? i kind of feel the same way. >> the timing seems horrible for the politicians to be making this case for such a dovish stance right now you think about it, look what's going on: look at the dollar it's above 98. you see obviously bonds. >> that's central bank differentials by the way, the same thing our guest was talking about. >> understood and i just think if you look at our treasuries, our dollar, our stock market, we're showing tremendous relative strength to everything else in the world. i think what's important about those two big 800 down days in the dow the last couple of weeks, risk happens fast, whatever the excuse was, higher tariffs or a yield curve inversion, they sent them down 3.5% sharply if q42018 taught us anything, days like that, the more frequently they happen, they can snowball make no mistake about it, that was a crash people a lot of people made a lot of mistakes at the highs of september and october, and the lows of december, and that's how you get offsides to me, i think whatever's going on here, no one has answers.

you're the only strategist here. we just don't know how this ends it can't be good when you have 25% of sovereign yield around the world. >> i'm not owning that. >> you have our white house pressuring for a 1% drop in the -- >> check out -- >> he actually meant to say that. >> >> i'm not owning that. >> i'm too big to be anything jockey, so. >> very true we're going to hear a lot from the fed this week. cnbc will have coverage all week long from the fed summit coming up, we'll give you the highlights of the company's big quarter, and the charts are pointing to major trouble across the pond one top technician will break down what that means for your wene 're live from times square in new york city. much more "fast money" right after this moving is hard.

no kidding. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started.

we've got a huge interview coming your way tomorrow on cnbc, the recent volatility. be sure to catch that interview tomorrow morning on "squawk box." baidu is jumping higher after hours. let's get to deirdre bosa in san francisco with the details. >> they're roaring back from

today's session and again in the after hours, now, they were down about 40% year-to-date, massively underperforming their peers. the latest results telling investors that things are not that bad there were worries over its core advertising business, the slowing chinese economy. we saw another big chinese tech name baidu, it was slow to capture mobile growth facing this growing competition. it's been investing heavily in new areas for its next phase of growth its smart speaker sales now third globally behind amazon and google cofounder and ceo said in this quarter's release that its operating system is in more than 400 million devices. baidu has a long way to go to catch up with its chinese internet peers alibaba reported last week growing revenue 42% and 23%

year-over-year respectively. baidu its revenue rose 1%. amid a slowing economy, and worries of trade tensions. on baidu's calls analysts will be listening for any commentary on the macro environment >> dewhere do you stand on baid? >> it's really cheap if you look on a trailing 12-month, i do it for this company because this company in the last 12 months has had so much thrown at it. it's 12 times trailing, and therefore at least gives you some perspective what the street has done to expectations they beat revenues slightly, video streaming iq is a major service. i would say the mega cap chinese tech names are very interesting. watch alibaba around 180 it's up almost 20% in the last ten sessions alone, and you're starting to see some of these names. >> baidu is more akin to an alphabet and an alibaba are more

akin to an amazon let's say. what would you rather be in? >> oh. >> would you rather -- would you rather. >> i slipped that right in, just like you slipped your stuff in, dan. would you rather be more exposed to the chinese consumer directly or to something more driven by advertising? >> i think the chinese consumer directly for the reason i think the chinese have a lot of monetary and fiscal policy, you know, easing to do if they really get into a jam here, so to me tencent is down 10% from its recent highs. alibaba is down, baidu has gotten destroyed i'd rather go for the gamers and e-commerce players. >> i mean, valuation in baidu, it's absolutely cheap. this stock is down 60%, from june of 2018 that's a pretty significant drop, and if you go back and look over the last year, year and a half or so, every rally of this magnitude has been met with further selling, and then you have further new lows.

so initiated with $130 price target does it get there? i'm not sure i think you take this as an opportunity to take some money off the table yet again. >> is there value in chinese equities at this point >> i don't know about chinese equities i would say i think the key issue here are you ready to pound the table on trade war plays? i'm not at this point. i don't think you can look at valuation as the guide i think you've got to look at the news flow, how you think the economic data is going to trend. what's happening with the politics of this trade war, i just don't see that getting resolved anytime soon. when i look at these players generally, i worry about short term relief. >> this is my point, i just think people have -- >> domestic. >> yeah, openly absolutely there are trade war proxies, i just think they've been misinterpreted, and again, as we've said on this desk tonight another thing that china did over the weekend that helped equities to talk about what they could do with monetary or fiscal policy they've recrafted their prime

lending rate it gives them a lot of flexibility to do what they want they are going to stimulate across the board, and i think it will help these companies. up next, the great american consumer we get a flood of retail results. will the u.s. shopper stand up to the test? we'll break down the key names that need to be on your radar. is trouble brewing abroad. the chart master has one chart that is so bad he says it's good he'll break down what he is seeing when fast money returns people know aflac.

aflac! but not when to use it. do i use aflac when the kids get slime in the plumbing? no. that's home owner's insurance. slime in my motorcycle. no. that's motorcycle insurance. slime everywhere? ughhh nooo, there's no insurance for that. do they help when i have bills health insurance doesn't cover? yeah! that's it! aflac! gross guys. get help with expenses health insurance doesn't cover. get to know us at aflac.com

welcome back to fast money wall street wracpping up a stron

day of gains there's plenty of truouble brewing across the atlantic. treasury yields are negative, now europe's biggest economy could be forced into fiscal stimulus measures to stave off a recession. even though things are looking grim, the chart master says there is one european giant that looks so bad it's good carter worth is over at the plaza. what are you seeing? >> first let's do a little background work. here's the stock equivalent to our s&p 500. what i've done is adjusted for inflation to show how darn bad things are germany leading here what we know is the peak in 2000, the dot com peak, not a lot of dot com in europe, we're still down 37% you'd have to go up 8% for five years just to recoup what's been lost in inflation on an adjusted basis. forget about inflation, here's the actual chart what has happened is we keep failing at this level. now, of course the bull would

say ultimately you break out that's not my take onit here. i think we're stuck or indeed there's another big down leg now, another way to look at it, here's that same stock 600 chart, the index here's its relative performance to the s&p this is the real tragedy it's like a permanent short. we're making new all-time lows every day, every hour, every week, and there's not a lot that can fix that frankly it has to do with the waiting in technology among other things, basically a structural problem now, have a look at the following ten-year chart this is the fourth largest constituent in the dax industrials 30 stocks they are dead even, 115% over the past decade now zero in more closely, and take a look at this undershoot meaning correlated and then a literal collapse, right, in

siemens. siemens is basically down 25% from its peak in 2017. i think this seems a little overdone and the play here is to play for a bounce. so bad it's good here is the chart, so many ways you could draw it. you could draw it as -- well, you could draw it as a big top, but either way i think one way you can dra w it that's opticall clear is we worked into a wedge and gapped into a plunge my guess is we're going to throw back a little bit, you can get a cyclical bounce or a trade and it's so bad it's good. >> come on over chart master jon will bring the chair in. >> i like the music, so bad it's good >> come on down, you know. the price is right in terms of the stoxx 600. it's mostly banks.

when you have strategists saying you know what, it's time to go into europe because values are so beaten down >> if you think about it, tech is only 5, 6%. it's structurally tied to big zombie energy companies, big zombie banks and heavy industrials like siemen's and so forth. the issue is is it demographics? what we know now is that the german yields are now below where japanese yields are and lower than japanese have ever been it's a deflationary slump that probably there's no out to it. >> the germantina? is that your point they have to go into equities and that's the case? is that part of the -- i realize you're not making a fundamental call per se. >> we know that quantitative easing was invented in japan they own a lot of stock. are they going to start doing that more aggressively in europe siemen's has virtually collapsed. >> carter, just focusing on the

financials because you just brought up japanese equities and you brought up european equities and banks in particular. they're both carrying a 30-year low, the euro stock bank index also 30-year lows. what does that mean for our bank >> actually, they are trading, euro zone banks are trading at half of book value when someone goes oh, this bank is cheap, oh, maybe not. that's what value traps are all about. >> except for the fact you've also talked about it continues to make new lows against the s&p. on a relative basis, emerging markets are making new lows every day. so i think saying that u.s. banks are like european banks, unless we go to negative interest rates is totally off the mark >> it's not a farfetched bet. >> are you just saying -- >> i don't know. you're saying that europeanba banks are a mess we know that any bank in this environment of negative interest rates is a

me mess. >> you've been traded down to book value u.s. bank corp.s, some of the big ones are trading at one and a half, the ones that are considered less risky. valuation is a very gray subject. >> i'm curious, and quickly i'll go to you on this, in terms of deutsche bank signaling something more sinister and systemic for the european economy, so can you -- could you get on board being long on siemens. >> or trade, i think carter's talking about trade. at a certain point if he's right he'll come back on and say here's where you saw the double. that's crater lingo. deutsche bank, there's a reason why citi bank is currently trading at a discount to tangible book. in my opinion it's because they have european exposure, and to think that deutsche bank does not pose some systemic risk. i don't know that they do, but i

certainly don't know they don't. >> i would just say the u.s. banks what we heard in this last reporting season is that you put yield considerations aside, if you put these general macro recession fears aside, everything sounds pretty good. >> putting a lot aside though. >> was a huge issue. if we suddenly get ourselves into a situation where okay, the fed's done its job they haven't waited too long all the economic data is on the up trend, these guys are poised to do some strong outperformance it does feel like on the downside they've been so de-risk de-risked. >> bank of england governor mark carney will be joining us exclusively this friday at 5:30 a.m. eastern time. one of the big name guests coming your way from the fed summit in jackson hole, wyoming, we've got full coverage all week long on cnbc. plus, if a bird is a plane, nope, it is the american um, uld they be the key to the rally our traders will weigh in ahead of a big earnings week for retailers. "fast money" is back right after this

prebetter life.hier brai.

- [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu

welcome back to "fast money. all day long we've been digging in on the great american consumer this week they get put to the test as a number of big retailers report results we'll get earnings from home

depot, nordstrom, foot locker. we thought this would be the perfect time to play a little -- that's our shop it or trdrop it. shop it meaning you would buy the name, drop it meaning you would sell the name. lori is up first i know it's a lot of pressure since it's the first time you're playing this game. retail xrp around 8% this month. do you shop it or drop it? >> we're sellers of the retail stocks at this point. >> so you're dropping it. >> well done >> well done >> why is that >> so look, i think these stocks are on the current battlefield on the trade war, and we think that's going to take some time to play out, number one. number two, i think they're just not that cheap if you look at large cap retail relative to the s&p, they're kind of neutral to slightly expensive on our models. we don't think there's a lot of deep value to begin with lastly, if you want to play the strength of the american consumer, he's got a great alternative in consumer staples.

>> not too expensive >> not too expensive if you look at cash flow, they actually look pretty cheap. >> let's get into some of the individual names now home depot reporting before the bell tomorrow, dan shopping it or dropping it >> let's shop it this is why, i have an easy one here you're not going to have an opportunity. the options is implying about an $8 move in either direction. when you look at the chart, 200 seems to be really good. that is the up trend that's where it should get good support. the upside is also about 215 which is where the stock topped out last month i suspect the stock is in the range. i think they probably put up a decent quarter and guidance is good enough. i think you can probably play it for a move back to the highs between this little hiatus that we have in the trade talks, if the guidance and the results are good tomorrow morning. so you have a little bit of a, you know, a little opportunity here >> builders or depot >> ooh, i like that. it's a would you rather within shop it or drop it. >> a lot of game.

>> i would take home depot over the homebuilders home depot it continues to grow into its valuation, 19 times earnings isn't ridiculously expensive for these guys i'm in the dan mason camp, i shop it. >> let's move on to target, tim, shop it or drop it >> i'm going to drop it. i think there's too much pressure on these guys i think target's had a great run. it's kind of a victim of its own success. a little late on my drop it. yeah, my red bag is getting kicked to the curb i think if you look at the comps, they're also becoming more difficult for this company. if you look at what's going on in terms of tariffs, the labor component of their business. i think there's a margin issue, and i think there's way too much store space in the big box retailers for them to not have margin degradation. >> talk about the cross hairs of the tariffs. >> yeah. skpi agree, and i think if you're looking at walmart's results last week and you want to extrapolate to target these are two different companies. walmart gets half of its sales

from groceries target looks a lot more like one of these atrocious department stores to me i think if the trade war stuff does come back, that's where target will be felt. >> atrocious it looks more and more -- i like that. >> yeah. >> i think the valuation suggests -- i might be the lone wolf on this desk and would say shop it just because. >> just because, all right, you get your own here. >> i like this game. >> nordstrom reporting lay they are week, shop it or drop it. >> ten-year low in order strom over the last week or so all the problems they've been facing everything we've been talking about for months it's been compelling for the last three years the story to me is a huge shortage if they say anything remotely close to being good for in or r nordstr nordstrom's rack, i think the stock goes up. we've seen it before also the chance of maybe taking themselves private. >> very delayed. >> delayed >> got a delayed bag >> you really have to listen ask then this reinforces --

>> all those reasons make me shop it. then they were going to drop the graphic. but they jumped me forget it now. they had their chance. >> drop it again >> no. >> it's not fun now. >> let's do one more let's give it another go >> t.j. maxx up 16% this year. i don't know why i get the gong, i guess bonus round. dan what do you say? >> this stock has been really volatile it's down about 12.5% over recent highs structurally they have very different issues than let's say your nordstrom that you were shopping you can also shop this one after the print here results fine this thing should hold up better than a lot of its discretionary brethr brethren. we're getting headlines on brexit, lyft shas aumreon bpy ride office traders are betting on bigger moves ahead we'll break down the action. don't go anywhere. much more "fast money" right after this

when volatility rules the market, how do you protect your portfol portfolio. we've had a news alert coming out of the white house. lets get to eamon javers at the white house. >> white house officials now pouring some cold water on that trial balloon we saw floated earlier this afternoon in "the washington post" about the

possibility of a payroll tax cut being worked on by the trump administration a white house official issuing this statement saying as larry kudlow said yesterday more tax cuts for the american people are certainly on the table, but cutting payroll taxes is not something under consideration at this time. so the trial balloons go up, this one is definitely going down you note that phrasing there, not something under consideration at this time that always leaves the door open for coming back to this idea it seems pretty dead for now, though >> thank you, eamon javers at the white house. we've actually got some more news on general electric let's get to seema mody at headquarters with this one. >> and melissa, it involves the kansas insurance department. state insurance regulator issuesing a -- issuing a statement that the report is fairly simplistic in nature and doesn't appear to incorporate reserve explanations that were

considered during the most recent financial examination, and the annual analysis review of the confidential memorandum at december 31st of 2018 this is notable because they used state insurance records from a number of states including kansas to inform his report and analysis. shares of ge are flat after hours, but worth noting lows back on thursday. >> thank you, seema. what do you make of this >> i think the news coming from an insurance regulator is reassuring i don't -- look, the big issue here is what happens in the second half to their power business does that lead to minus 1 billion or minus 5 billion that's the story here, getting their aviation business up is something i would still be concerned about. while i can't know what the accounting irregularities may have been over the last ten

years, i can tell you about the core business investors are focused on i think the turn around that larry culp and coare undergoing, especially in getting profitable going forward i think is happening. i do think there's been a surprise, and i think that's a pretty big delta on where we could be i think it's closer to 1 negative. >> where did you stand on where this turn around is? >> early you're probably -- you know, nine months into a turn around, it's probably going to take two years, two and a half years. tim would probably agree that the question is do you give them the benefit of the doubt in month nine, or do you wait it out? i think he would also admit that the stock has a chance to go lower as well. i think it does. i think culp's the right guy i think he will do it the right way. he comes from good stock this doesn't change overnight, especially if the market's about to sort of have an event i think ge goes lower before it goes higher. >> i don't know if you think if industrials or ge specifically

falls into this category, but certainly they're buffeted by things like a stronger dollar. >> i'll tell you what we are looking at within the industrial space is actually the machinery stock, which we think are at the epicenter of the trade wars. we have noticed that they are sort of in the sweet spot of ownership where they've got good fundamental endorsement. they're not crowded yet. they have room to move up. valuations look steep. that's where we're trying to steer people in industrials if they can be long-term. up next, ipo lock up period officially ending today. that starts some big activity in the options market we'll break down all the action, plus take a look at our cramer rks big rally and where the maetare heading next, that is coming up on "mad money" at the top of the hour. we are live at times square, much more "fast money" straight ahead. ld ai without bias? how do we bake security into everything we do? we need tech that helps people understand each other. that understands my business.

we've got some work to do. and we need your help. we need your support. let's expect more from technology. let's put smart to work. ♪ ♪

and went on to trade as high as $73 and as low as $13 a share. so guys, put simply, this may be obvious, insiders are going to hold onto shares on lyft and this year's classified ipos if they think it will lead to larger returns in the future the ride sharing names are working to convince investors they'll be able to stem losses and get to profitability eventually. >> deirdre bosa in san francisco. more on where lyft could be headed next, he's back >> interesting day today in the stock. the stock volume was up four times average daily since it went public back in april. the options volume was two times average daily volume it was interesting to me, there wasn't too many that caught my eye. the most interesting thing was the april 23rd this friday

expiration 50 puts and a lot of them looked to be sold to close. i can tell that from the open interest coming into today it might have been long holder who had bought some short dated, for fear the stock could break down and make a new low here that's confidence maybe that some thinking with the stock stability down only down 1.5%. on big volume it might be putting in a near term bottom. this is the chart, since the ipo in april, and it's really interesting. see that circle right there? that was august 7th when the company reported their q2 earnings the stock was trading in the after market up 12% on a lot of the metrics that they did really well on. it was a really good report. and then that notice of the accelerated lockup this by the way i was told by bankers was in the s-1, but people didn't see it, and they had the option to do that if it was not in the quiet period. the stock has gone down to 51 1/2. it looks like 50 on that chart

is a good level. i think this new share that can trade now with interest as high as it were, you may see some of that tear off, and that may be dampening. so options in lyft might get a whole heck of a lot cheaper, especially if it can find some support in the $50 level. >> the case could be made that the drop because of the lockup expiration happens prior to the lockup expiration itself because of the way it was -- >> to dan's point, that august 7th rate, the stock was trading up to $63. we were sitting here talking about what a great quarter it was. the only thing we were concerned about they lumped on this 275 million share lockup coming out today. we said, you know, you've got to take some pause with that. here we are from 63 to 51. the main low, i think, was 4717 give or take i think dan's right. i think you're getting towards levels now where it becomes very interesting based on that last quarter's release. >> it is still 80% of the fully diluted share count, what is expiring that's crazy that's a huge amount. >> it is if you're buying this company today, though, i don't think

you're buying it for a trade i think you are truly going to be an investor these guys gave very good numbers. they fast forwarded their path to profitability on par revenue >> is that really the term >> our par >> active rider. our par, revenue per active rider was up 22%, which means they have higher ticket numbers. i'm sorry, guys, it's the new term there's a lot of lingo and jargon. >> take rates were higher. there's a lot of stuff in there that gave investors confidence that the stories as a pure play on ride share in the united states is kind of working and they're a bit more focused than their friends over at uber who have to think about what does geographic competition look like what does it look like as they do delivery, as they do a whole host of other things i think this story is starting to shape up. >> for more options action, you can catch the full show friday, up next we've got the final trade.

see that's funny, i thought you traded options. i'm not really a wall street guy. 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, we can walk 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 through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. we've got a news alert on shares of -- the stock is

falling hard down 9.5% the fda says it's concerned about its muscular dystrophy drug, related to the intravenous fusion ports and renal toxicity in the administration of the drug we are seeing that stock down sharply. guy, i'm not sure -- >> this was a power pitch, quickly i think it was $90 when i did it, went up to 150 a lot of news has come out i'd like to read a little bit more at a certain point probably back to that 90 level where we started in the first place. >> final trade time, home depot would be a shop. the sensitivity around interest rates has been very negative for home depot, and it's been a tailwind. >> lori, we like consumer staples, we like the dividend yield. it does well when the fed's easing the valuations look fine, it's got low policy risks not just from the trade war but also the 2020 election. >> graeeat having you on.

>> stan. >> you want to trade it against those lows from a couple of months ago. >> she's tolerated our tom fooleri. r >> earnings my mission is simple to make you money. i'm here to level the playing field for all investors. there is 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. my job is to teach, educate you so-call or tweet me @jimcramer who is afraid of the big bad