tv Fast Money CNBC September 5, 2019 5:00pm-6:00pm EDT
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is geared, they don't want a soft number. anything that causes bond yield is not that friendly considering we have a 5% move on yield drive. >> we are out of time. thank you very much for watching >> "fast money" begins right now. >> live from the nasdaq, new york city, times square. this is "future cast money," i am melissa lee trade tension is lighting up fire stocks at their highest levels in a month we'll break down the rally we are keeping an eye on shares of lululemon it is coming off after a highs after a conference call gets underway 32 reasons why central banks around the world are kung-fu for -- >> everything is awesome again
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>> stocks are rocketing higher u.s. and china are returning to the table for a new trade talk s&p 500 is less than 2% away from new all time high is everything awesome again, guys >> hi. that song is -- >> annoying. >> i got annoyed >> we danced to that >> it is your ringer >> steve and i >> it was a great day. >> any who -- >> coo coo for cocoa puffs remember that? >> i think pete may have talked about it is the fact that the chinese tweeted this and it was not president trump. so maybe that changes the tune a little bit i think we are far away from the deal with that said, we do this thing at the plasma. i am not pretending it is
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bullish. sometimes you can trade things within the framework of the market and last week, market in the the holiday and the market should rally you have seen the banks rallied. i still think we go lower and the vix is going to trade north around 30. i think that'll be the bottom of the s&p 500. i wish i can tell you when but we are closer to it today. >> remember what we said last week of all your point that you made never short a dollar mark. don't fight the fed and now we are broken out we did nothing for a month so i would say we are going to go higher. who would short the market ahead of that meeting? >> you heard it from the chinese now. they're looking at the meeting it may happen and it is probably going to happen. the chance of it happening are better than it was last week or two weeks ago. >> i may have a meeting.
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it happens every single time >> you can't show the market >> i think you can short the market ahead of that meeting depending on where it goes >> i mean that's short covering repositioning. i don't think anything has changed whatsoever and every single time we are going through this war over a year now oh, we have a meeting and the meeting falls apart and somebody tweets something we just go nowhere why would this be any different this time. >> somebody hikes tariffs all of a sudden by tweets >> exactly it was not trump the fact that it was the chinese. >> it is more believable >> if you lost believes of the president because the tweets are become numb to everybody it is not president trump. it is the chinese saying we want to sit down and have a conversation i think a lot of this has to do with what's going on with the economy in china as much as
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anything we all talk about the negatives and what's going on but mostly around the rest of the world the number cos coming out of ch are pretty awesome the idea that volatility will remain volatile. tuesday we had a decent dip. a move like we had the last couple of days, i don't disagree with you necessarily i still think you had to trade it you can't be in the mind of the chinese negotiators. it is impossible >> what do you think has really changed from the chinese perspective aside from a couple of data points that we knew it is going to get worse anyway what change is what? >> people right laare moving out people are going to start moving production line. >> it is not happening right now. >> is it going to happen >> i don't know. >> you really don't know >> you are a smart and
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intelligent woman. >> do you think they have the capability of moving all of their factory. >> not all google is going to start moving it out any corporation right now is going to look at it or start -- >> aud ll of a sudden, the chin are scared of us >> you can say no. >> so the framework that i am using for this trade war is going to drag out until the election no matter what the economy does here in the u.s. or no matt whaer what the economy s in china i think it is a tactic to drag this thing alone we end up in a world where china and the u.s. are split and the supply chains are split. do we go 3% higher maybe. i don't know, we have been turning around for 18 months
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i don't see anything today that changes my mind. oh, the chinese are going to make a deal. they're going to do it today the hong kong situation seems to cool down a little bit what changed in the past week or two that makes them want in your mind to come to the table anymore. >> i don't think anything necessarily changed. >> i don't think anything has necessarily changed. maybe things are deterioratinin to sort of cool the engines a little bit before the meeting. they can have a meeting on october 2nd or 3rd i think the parties are way far divided. too many things out there. would you short it before the meeting. >> i think to brian's point, you probably can't the vix is headed higher i am surprised it is here. i am the first one to tell you that >> barely the jobs report on
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friday is going to be a big deal ahead of the fed meeting >> we know it is going to be 25 days at this point before it was back and forth between trump and powell and we had dudley came on the scene it may be 50 bases points. we know we are getting 25 basis points >> unless the ebc does less which takes the pressure off the feds >> we saw a lot of different things and brexit is off the table for the time being and at least until october it seems that's the currency volatility we have kristine lagart coming into the ebc >> you can have stock market volatility go through the roof >> if you do not think everything is awesome again.
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our next guest, our chief investment strategist at corner stone, michael, it is great to have you back. you come here and talk about the tr trump trade which reminds us what it stands for >> so it is a defensive sort of basket of stocks >> first down day in a wild. >> do you keep the trade on. >> we think there are three reasons you want to remain defensive. >> number one, continue to widen out. that began in 2018, kind of a soft rise credit spread. they came back in and now they're starting to move higher because earnings in the economy have continue to lose momentum that's the first one and leading indicators like manufactures and
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pmis are going to continue to remain under pressure. we broke the ice which is happening in every single fed tightening cycle. the third thing is we think recession risks are continuing to rise. where we are in this cycle now we have seen leading indicators slow and profits slow. are things go i think to slow enough to see things like weakening employment data. rising unemployment claims that's going to make or break this market the next six months. there is a lot we see warrant caution. >> so i am curious, that seems to be the economic sensitive part if we look at a slow economy. would you think about their earnings >> prices get reset there every night. it is the longest duration and
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industrial which does really well they still trade like bond and we think yields are going to move lower ahead utilities kind of the pure bond play >> the treasuries and utilities and i would imagine some negative s&p 500 for this trade to continue to work the broader market or the s&p specifically have to trade lower? >> it worked well with the s&p moving sideways. s&p essentially on nowhere you made huge amount of gains in reets and utilities. those are the four sector that is are up going back to january 2018 >> we are bearish on equities. we are small caps.
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s&p is the last thing you want to short because it got the most utilities and staple and healthcare it would be the last one to go >> michael, great to see you >> thank you great looking beard by the way it is good solid. i just want to bring it up >> it is as great looking beard. >> steve, what do you want >> i think i am going to have faith in daylight today. gold is really fascinating gold miners. 45% year to date i would stay in that it got a lot more room upside. >> even though we had pull back on metals. they have been sprinting absolutely on fire you look at some of those names. when you have the fundamental story there and what we heard of the last earnings cycle and the majority of those names.
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i think you can't stick with that along with the metals now >> we got a news alert on apple. let's get to josh lipton in san francisco with the details >> apple offers a 7 billion worth of bonds we knew they had file and we did not know how much. it looks like ranging between 2022 between 2049. it is first offered since 2017 share buy backs or payments of dividends. again, the headliner apple will offer $7 billion worth of bond melissa, back to you >> that's the amount, the exact amount that they last borrowed the market this week has been a monster week tuesday alone was a record issue led by disney. >> everybody's think yield is getting lower. what concerns me is how much capacity is out there for all
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this data issue. we have u.s. treasury debt issue is coming out. this is exactly what they should be doing at this point in time there will be a day. we may have something coming up and if they can tell us when that day is coming until that time, apple should keep on doing it >> they have $2 billion. >> i mean i am sure -- >> i like good rating. >> sometimes i watch a good movie on netflix >> that's a good point cheap money makes a lot of sense. >> i don't know why they do it >> if people want to give money to companies that are successful and companies can perform and you don't know >> it is cheap it is a low risk and it is cheap and they're getting paid to do what they do and that's big money. >> we are getting started here on "fast money." we'll bring you the big headlines. later bitcoin gets the hamilton
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treatment with the viral video we'll bring it to you live we are live at times square, more "fast money" after this when it comes to feelings, it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry, clive! actually, really angry. thank you. and seat 36b angry. you're clive owen. and you're barefoot. yeah... there's also apprehension... ...regret... ...relief. oh and there's empathy... ah, i got this in zurich! actually, what's the opposite of empathy? but what if your business could understand what your customers are feeling... and then do something about it. you can turn disappointment into gratitude. clive, you got to try this. i can't i'm working. turn problems into opportunities. thanks drone. change the future of your business. change the whole experience. alright who wants to go again? i do! i do! ♪
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money," we got earning alert on lululemon. let's get to contessa brewer >> lululemon is building strengths. 15% verses 12% analysts expected in direct to consumer revenues are up 30% like its fabric, it is stretching in my ways and it is bulking up business in men's wear in europe, revenue grew 35% and china is up 70%. lulu's ceo says the company is delivering on its three pillars for growth product innovation and market expansion and what they call omni-guest experience. so really engage these customers inside and outside the store while digital and ecommerce make up a quarter of the company. lulu is investing in brick and
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mortar as well it is following key stores that'll open at the mall of america in minneapolis and fifth avenue in new york city. tl compa the company plans to open 22 new stores for instance, it is paying more for air freight as congestion related to tariffs that may moderate growth >> we expect growth to be flat moderately verses q 3 of last year impose from imports from china as well as additional air freight expense. >> lulu raised its quarter outlook. the stock is refleckiting that. it closes up to 4% on the day as well melissa. >> contessa brewer thank you. >> pete and jerry, what do you think of lulu? >> the reality is last quarter
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seems a lot like this quarter everyo even though we are going through the china trade war. they expect them to be flat to up they're at 55% they have been going up and moving up. they have been proved almost everybody single quarter and year for the last five or six years. this is sixth quarter in a row they crush what they needed to do and the ecommerce of chichina we talk about the international portion of what they do and it is what they do in terms of square foot. i am not sure why the move is as good as it is. you continue to see the growth that says a lot about how good things are really are. >> it seems to check the box in
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this weird bifurcated market people are willing to pay for growth >> with lulu, the fact they're able to turn into men's product. i own multiple pairs of will lud never thought i would say i wear them down. asia, europe and men's gross margins. >> i don't oconwn lulu pants. >> exactly you can't get a hold of them >> sold out online >> sold out. >> i didn't check at the store, across the street from where i live the internet is much more convenient and all sold out. >> i tell you all the time, the next thing i buy online will be
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the first thing i buy online >> buy on the line >> i am one of their omni people i mention my affinity for their box of briefs. it ain't just me, sister you look at operating margins, 19%. we talked about this you look at 32 times and it is expensive stock. no, it is not. comps were up 17% this year. they're crushing it on all matrixes >> in you walk into a lulu these days i did at mall of america. the men's portion of the store is getting bigger and bigger it used to be 80% female and 10% or 20% and on the male side and children as well it is unbelievable how much they are doing and the growth they got there. >> if y'all walk into a brick or
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morter >> and they're expanding brick and mortar >> you can read more on our quarter. i am melissa lee, you are watching "fast money" here on c in here is what's going on right now. >> facebook is getting antoninte datiing game that had one stock feeling jilted we'll explain when "fast money" returns. om lenovo to make your people more productive in or out of the office. anyone have any questions before we go? that's great cause i really need to get out of here. snake people are freaking me out. hey sheryl, you have a sec? -nuh, uh. for work place productivity you need lenovo, and it orchestration by cdw. people who get it.
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that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you 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. welcome back to "fast money," global central bank has been on a rate cutting binge
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this year. there has been a whopping 32 rate cuts this year alone. according to the markets that's right swap market pricing it at another 58 cuts around the world. how could this rate cutting craze impact equities worldwide? >> i don't think it is bullish i love the carpenter by the way. >> fantastic >> one of the top ten voices of all time >> and she was a drummer i digress. when 30% of bonds have negative yield, that has to be by definition problematic >> it leads to high equities >> exactly >> you are looking at money flooding into equities that's where we have seen. ta it is a win-win. when we see rates go up fract e
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fracturely it is a win-win, i don't think rates are going as low as those 58 >> well, it is for right now a win for you as equities. if you look at japan and europe. >> and we say relatively higher because you have that kind of relative value trade, radight so for the u.s. it is okay for now. for the rest of the world, you reach this point where you start to destroy the banks and xavisas we have not reached that for the u.s. yet >> our bonds are more of a safe havens than other bonds around the world. >> that's a big assumption >> i rather own apple bond than u.s. treasuries. >> people have been running for thr trade for a while now. you look at what's happening with the equity markets, we are
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2% off the all time high the last 18 months, this move to the upside has been amazingly fast 13% more on the dow as it is just this year alone seems to me, people are hunting what they want and they're finding it here in the u.s >> we have a world cut rate. u.s. rates are going substantial liloer bob michael is ahead of asset management well cob ba welcome back to the show you see 10%? >> that's where we are headed. >> they do not have an inflation problem. they potentially have a trade problem which spills over into a global recession why not systemically cut rates and try to head off the dow turn that's in play now >> can you give us the context of that 0% scenario. do you see 0% on the ten-year and you see a yield curve in
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version for us where do you see international rate relative to that and if we hit it in the united states. >> 30% of the world would love zero because that would be a higher yield than where they are investing. >> that's true >> we should not poo poo zeros being factitious what gets us there is no compromise on the trade front. no other fiscal impulse coming through. the manufacture slows down into the service aside. the central banks have to take rates down feds take rates down into zero i think the rest of the world m world comes in and continue to buy u.s. treasuries. >> we'll be higher on a relative bases in rates even though if we go to zero >> i don't think they'll do experimental negative rate that you see in europe or japan the rest of the world still
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comes in and take you below zero, i don't know it seems ridiculous to me that the u.s. is the high yield government bond out there. if it is genuinely the safe haven, it should bring the yield much lower >> bob, is there a point that bond market or investors lose their appetite i feel like we are stopping the goose and getting ready to make pate or something one day it is going to lose its appetite >> when the central bank tells us it is going to end. they're not telling us that. they have a handful of tools it is the lower rate and expand their balance sheets both of those things bring government bond yields down. until they get inflation of where they want to see it or growth of where they want to see it usually during a recession, historically the fed has about 5% or 6% to play around. that's historic. that's been in the last couple of recessions we have seen use every bit of that interest
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rates. they don't have that now do they use a balance sheet? is that throwing in the towel admitting that this whole experience we had since the great recession has failed >> i don't know hourw much theye going to use the balance sheet here if they take rates down and i would cut every meeting and take another hundred bases points and see if anything breaks on the fiscal side or trade side. once you get to zero or expanded the balance sheet enough to bring the curve back to zero you have done enough somebody tells has to step up. you need the administration and fiscal policy to come through and help out, otherwise, you are going to have a session? what are effects when it comes to corporate bond market >> it should be great for companies because it lowers their funding rate it should be great for consumers because it will lower mortgage
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rate whether that in of itself is enough to head off for a recession, we don't think so look at germany. if you look at germany, unemployment has come down from the recession from just over 8% to 5%. rates in germany, central bank is at minus 4.0% you got a good employment and negative rates and not just slow rates and they hosted minus 0.3% >> it should be better it is cutting rates because there could be a spill over into the service sector of manufacture in terms of weakness perhaps, cooperations get weaker they issue a lot more debt or they have been on a debt issuance binge it is difficult for them in terms of the environment >> they always got that roll off
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so they can refinance into a lower cost >> whether they'll continue to borrow they're not going to leverage their balance sheet. they're going to be focused on private rating >> in the world that the u.s. does 0%, bob is the economy in reception? >> without question. you can't get to zero until you have a recession in the u.s. otherwise, the fed won't bring rates down to zero you probably won't get the behind coming in from overseas because they'll be worried about pick up in growth and inflation. >> that's key and that implies that the fed is going to keep rates and it is going to turn things around for the economy. >> i don't think at this point in the cycle it feels the expansion has gone on long enough i don't know if the administration could get something through congress i agree with early on, on trade,
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i don't know if you can see anything there it looks like the feds will have to do what it can and you will have to go through a recession >> bob michael, jurp morgan >> it is interesting i think a recession are a natural part of the cycle. all companies go away and new company's gorowth. it is painful but it is evident that it happens. >> well, you don't think the fed should cut >> no. >> thank you i have been steadfast in that. there are people coming around of that of the same way of thinking i am not saying i am right but that's just my opinion >> the home builders should be up on that even before we get to the recession. >> up in the casnext, the compas
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slashing its valuation apart facebook is getting into the dating game. the move has one stock feeling brokenheart brokenhearted. we'll bring you the name when "fast money" returns not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. - stand up if you are first stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. i will tell you this, southern new hampshire university can change the whole trajectory of your life.
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welcome back to "fast money. let's get to lesley picker with the details. >> melissa ahead of its potential ipos. it has been clear what levels give this stock sufficient investor demand to go public they're toying with something less than $25 billion. that's about half valuation. it is unclear even if a $20 billion value investigation would suffice. corporate governance and price, the wall street reported that has newark went to tokyo last week to meet they discussed possibility that would allow work to be delayed to next year or having soft bank as an an kor investigator in the
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ipo. >> it would not be the first time if year, pinterest, marketing, all that goes to show we were debuting the private round that they may or may not be helpful >> therefore, they believe any challenges related to the deal are unlikely to be the death now or the entire ipo market melissa. >> lesley pickers. >> i agree we work different from a lot of other people that are hitting the market or coming in from the market they're not making money zr never operated in an environment where there is as economic slow
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down this is some what typical. you have capital funds that are looking to get out of these things and something they have been in for five or ten years. in terms of what what work, you can argue that of bank and because they are out there buying everything. now they're feeling the repercussions. a year from now, we'll see what happens. >> oh, do you think the deal will get scrapped? >> they actually invested $2 billion valuation level ask and their we ahere we are talki $75 billion. >> maybe give us that money so we can get there >> gives them time to see a market looks better in terms of what the rest of the world or everybody wasn'ts to invest.
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>> we have seen nothing that ipo do not make money. >> points the finger wieright at lyft and uber. there is a saying in gambling and not that i gamble. >> bad money with good none. >> that's maybe that happens >> i am not picturing it >> that effectively what that would be >> i will say this if you want to play the space and we talked about this look at the move of the nasdaq i know there are landlords and i get. the nasdaq has been on fire. let's fish facebook is getting antonio tine dating game. not everyone is loving the idea though taking a big hit on the news the drop or racing their early
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games, with the company plays by private concerns as facebook speak that on love a food move. >> i think it is a great move. >> i know what you are talking about of the privacy issues and all the money we are hearing about with zuckerberg. maybe they're getting in there i know they're putting the money towards it that's continue sort of an over hang and an issue going forward. the investment that facebook have always fallen, two companies worked out from instagram or messenger i think this vertical makes a lot of sense the privacy issues are back. the both is still there ochlt you look at the the numbers and how people are often there these numbers continue to be
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impressive the free cash flow that gets overlooked the growth for fab is extraordinary. getting into this world is already making sense for me. >> i know how different they'll address this the same way that a match is totally separate match is up 120 pearc%. >> well, do you think part of that because of the promises of i.c.e. diversing matt dwyerty. >> a big chunk of that game happens prooenl with that promise. there is so much circulation of this app with everyone there is so much buzz around match. the way they set their algorithm, the way they set their algorithm seems to be the
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moses successful in the dating world. they are put it all underneath the same umbrella. >> we want to draw your attention on beyond meet >> it was lower out there. an under performed rating. brian hollins believes long-term forecast they say that you know total address of markings were more of the plant base milk market you have people who have to find a solution most people don't have to find absolution to meet >> listen, i like the call but i would like this call $50 a ago. >> you look at the trade against
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something. i think they price that secondary and all that stock the lock up. it really has not gone through that in an upside in a meaningful way >> for me it is a no touch here. maybe wait for it to get to the 130 trouble. sf you want to trade, that's where you get into it. people start to suunderstand they may not be as healthy and there is a lot of seed upout there. maybe some of the burger companies are making them full of fat so they go back to the meat interesting. >> i don't know. >> such a con spir sis >> what? i mean -- savannah roth -- the company just did something that
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hamilton." going up against the legend ventture the two sparring over amerit o the central. it is hard to argue that bitcoin has not had a great year it took 2 0 0% in 2019 we got bitcoin baller here this video goes on >> it is a long six-minute long. >> it is glorious. >> it has six-minute of glory. snoor re >> reid, helps produce this. it is cringe warthy. and every 80 years or so, we go through the currehanges we are on the gold issue
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standard and now here we are with bitcoin right here right now, the whole flight is sort of defensive trades >> with the brexit vote. there is going to be before the end of the year. that's going to be your general buy. that's going to change your career >> absolutely. macy's shares is seeing a little bit of a magic today take a look at our cramer's cam. jim is laying out his portfolio stock as the nfl season kicks off. be sure to catch "mad. much more "fast money" still
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talk to your advisor or consultant because there's always another team looking to punch one in. a spectacular touchdown grab with nfl redzone from nfl network on xfinity, you get every touchdown from every game on sunday afternoons, all season long. watch every breakout star, every heart-pounding running attack, and every big time defensive stop. sundays were made for football on xfinity. that's simple, easy, awesome. add the sports entertainment package for nfl redzone. click, call, or visit a store today to learn more. welcome back to "fast money. check out shares of macy's they plan on siaving up on $550a year by cutting back on
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discounts. so is this a thrifty way for macy's to make a come back the macy's customers condition to always seek out those sales >> i think that the worse isover for the retail space it is front and loaded negative that from now until the end of the year, you will have easier comps and less tariff talks. you saw target talking about they're not taking anymore hits and suppliers are going to do it for them run the most it is going to be short coverings. >> listen, i think macy's had to be something i think it is a short term buying opportunity we talked about it a couple of weeks ago and pbh. target has been on fire. specific stocks can do well. i don't think you make any
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correlation in terms of consumer help than that i think you can say with pbh and jwn. >> macy's latest conference call, i think their efforts to charge more for consumers like they pass through certain costs for consumers. it was not successful. >> are you running them down the street >> right >> i am wondering if they stop giving out discounts or promotions to customers. >> no. >> since pete's here i will give you a football analogy. back in the '80s doug did a hail mary pass. that's what this is. >> let's see what the option market says. let's get to mike khouw in san francisco. >> they're playing for a short term we saw calls out pacing about
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3-1. one of the more interesting trades was the september 16th calls. that's what guy was talking about, playing for short term bounds there is some short covering this is a trade that's supposed to do well >> thank you for that. our show is tomorrow at 5:30 p.m. up next is "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
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it is a huge night for nbc, packers and bears kicking off the 100th season tonight 7:30 eastern time. that got us thinking about some touchdown final trade. >> how about wells fargo the fans are moving a little bit. i like wells fargo moving forward. sooner or later, the ceo is going to be in place >> pete. >> all names were sold because trades that are going to be
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bought caterpillar, cat >> you know it is a kicking game it is an important part of the nfl. >> obviously >> i am going to give you a field goal >> "mad money" starts right now. my in addition is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica other people want to make friends, just trying to make you some money my job is not to entertain but to educate you and teach call me at 1-800-743-cnbc or tweet me at jim cramer early last week when the market was getting hammered before i went on vacation, yes, indee
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