bond yields not giving much clearance for renewed rally but seems like right now the overseas data has controlled the narrative. >> we'll get more to chew on tomorrow especially as it relates to earnings season nike reports after the bell. that is always going to be a good look at many how the economy can hold up and that sort of thick. >> thanks for watching "closing bell." >> "fast money" byes now. >> live from the nasdaq marketsite overlooking times square, i'm melissa lee. traders are tim, brian, steve and guy. there is new trouble brewing in ipo land one of wework's biggest investors say we won't work as things stand right now we have all the details, plus, copying the tape the one retail stock stretching higher thanks to an upgrade. a battle in the wizarding world of silicon valley. the wands are out between snap's ceo and facebook's ceo

this after snap reportedly conjured up a whole chamber of secrets on facebook in a dossier titled project voldemort the document lays out all the ways facebook tried to thwart the competition and prevented snap from trending on instagram. now snap is hoping the ministry of magic known as the ftc will step in. will regulators be able to work any real magic here? >> guy. >> that was one of the best openings in the history of the show. >> he doesn't know what to say anymore. >> do you even know what she said >> i'm familiar with this harry potter thing there are like eight of these movies. >> yes. >> they're -- it's the sack same movie. the kids get older and run a -- >> don't spoil the end. >> it sounds like "fast money. >> it's a scam >> run around with their wands

>> good job. >> back to talking. >> i want to dislike facebook in the worst way. i want to stand here and say, you know what, the stock is headed sl headed little headed significantly lower we said in july, you know what will happen, it will go back and test that july high from last year to '11. it's going to fail so you have that major double top. you go back to that quarter on july 25th or so, outstanding people aren't fleeing. advertisers have nowhere to go their operating margins seem to be improving so as much as i want to hate i and as much as regulation could crush these guys and gals, i think you got to buy the stock into their october 30th. >> average revenue per user. >> arpu is holding fine. metrics are amazing. the bull case for people that think there could be more regulation, facebook's sum of

the parts including whatsapp and instagram, highly valuable properties with massive user bases that may be undermonetized at this point leads to a place where people might begin to value the company otherwise. facebook is trading at a discount has underperformed the sector and despite the fact you haven't seen people migrating en masse to other form, i would argue then google controls the ad space in today's media world even more so than traditional media companies, so far facebook is not yielding a premium on its multiple. >> is that discount the regulatory discount? >> i think it's the regulatory discount i think it's the idea that the challenges, the narrative they're trying to create a superapp which includes their chapz which includes instagram and the traditional of what you think of and facebook includes their libra so the problem you have with facebook or the risk is they can't get any of these things done then all of a sudden this combination, this superapp they're trying to get together

doesn't happen and you're left with all these disparate parts not necessarily saying that's going to happen but probably why facebook hasn't hit new highs yet. >> look at all these instances in which facebook allegedly copied or came out with a feature that was very similar to snap and the ftc isn't just talking to snap but also talking to other previous acquisition targets or smaller competitors that would have been acquisition targets. >> how many times has apple copied samsung limitless. >> seven. >> exactly so the point is it's okay to be copied. are we using it as a template that these big companies are being broken up. >> i think that's the bigger thing. if you break up facebook does that domino through the whole large cap tech >> is facebook -- >> yeah. >> you can make a bull case if they do try to break up facebook, the stock should actually be significantly higher to tim's earlier point, so i hate the win/win thing and talked about it last week but right now and bear case is

probably a six to nine-month or year bear case but into earnings a month from now or 35 days from now -- >> i don't know how the sum of the parts is a positive this time around. it's a force thing, by the government, overreach. screaming negative this time. >> well, if it's a win/win why would there stillable a discount to valuation because of the regulatory risk? >> i think facebook needs a catalyst of some kind and certainly since we had all the dynamics around the elections and all the issues and a privacy perspecti perspective, the privacy issue is as important as the regulatory issue even though people haven't walked with their feet i think at its core facebook is a company who has a product that at some point there is something that could be mildly tenuous about their loyalty there but it comes down to this stock has traded roughly between 20 and 30 times multiple for the last five years and traded add a massive

discount to something like a microsoft at this point. they're apples and oranges except for the fact there is a scarcity in the social media space. it should be traded at such a bigger number, the irony if you break it up and force it to break down these core businesses i think they're going to stand on their own and be worth a whole lot more. >> i think you bring up a good point this terms of privacy. these are someof the biggest issues, right that, congress and the ftc, whoever wants to come down and beat tech for whether using their dominant position or the privacy issues, two huge things, for facebook they're facing in the crosshairs for both of them. >> yeah, i think it's important to separate those two, right, because you have one allegation or one thing that congress may come down on them for which is kind of using their position to bully around and push around competition or keep competition out. now, that's an age old tactic that everybody -- every industry has used that's one thing, the privacy issues to me go a little more to the credibility of the company

and exposes them a bit to potential competitors. now, we haven't seen a real competitor they have a massive mode because of the size of their social media because of that effect but you can see rode the credibility and guy was saying my bear case, i'm not necessarily bearish on facebook i'm just not crazy bullish on it but it's like the next month all of a sudden it will fall apart but start to see how the story begins to deteriorate and erode. >> totally agree i couldn't agree more. again, go back to the second quarter release on july 24th, analysts, six of them at least were tripping over themselves collectively to raise their price targets and the price targets i see were anywhere from 225 to 260 the stock sold off and technically did what it should have done. in an environment where this broader market goes sideways and doesn't want to seem to go lower doesn't facebook sort of set up on the long side i would say yes. >> yes. >> pains me to say it.

>> you know, if you want the market to move higher, you need facebook and you need google as far as i'm concerned, these are the two names that have the most opportunity from a valuation perspective, probably have the most strikes against them in terms of the world of the analyst community or where people are positioned. facebook above 191, breaking above 159 is bullish overall for market. >> is this good for twitter or snap >> i think twitter has gone on the radar. oddly enough twitter has been the winner nap is up 210% year to date. we didn't even talk much about that that streams of the lack of positioning to the long side i think that's probably run its course already >> let's turn to sorting of what -- sorting hats no >> sorting hats. i don't sort hats. >> i stack them. >> let's find out -- >> i thought perhaps it was

another harry potter reference i thought i was missing something. the chart master will break it all down hey, carter. >> interesting times i would start with an eff that captures all of this, cute symbol social, socl and dozens and dozens of stocks, top five, so 45%, 50% are in the top five, six name, twitter being the big weight, facebook, naver in south korea and snap let's plot the chart and move on to some individual names now, obviously subjective, but this is how i would draw the lines. you got a line of tension here you're working into the apex of the situation and what that typically means is is that you get something quite dynamic. in fact, it's almost jump ball bulls will say this, of course, bears will say that. if i pull it back even further, here is the same sit of going back for five years.

now, if i were to put the long-term trend line, were we simply to come back to the long-term trend line and i.e., break below -- that's my hunch i think we get back to -- about an 8% decline my hunch is this is what happens rather than to the upside. in any event let's talk about these three stocks and grasso is making this point, snap has been the big winner over the past year and then, of course, you see facebook lagging and i want to look at that i think that's not an opportunity, i think that's a problem so very simple charts. up trend is an up trend is an up trend. it is in an up trend and bounced off this line. the lines are what they are and looks like it's going higher and then you've got twitter and it's done the same darn thing bounced off trend, computers draw trends, what's not to like and then there is, however this, one which has, yes, bounced off the line and becaused off the line but now it's sort of a bit

under, a bit below i think that's at risk of ultimately breaking and what you would get is that and that even as that happens is an unhappy setup. that's about all i know. >> carter, why don't you come on over we got lots of questions will will bring the chair in >> can i ask quickly, carter would be that little blond kid in the harry potter -- >> huff and puff or what's that kid's name >> is he a villain >> oh, he's a bad guy. i'd be on the bad guy's side >> on look as lone. >> beanies with the propeller on top. >> let's move on back from the rails here in terms of facebook if it does turn lower what is the next support? >> it's funny. adressing what you said obviously its support is anywhere you might think but i think amazon is also key all lay at risk. those two in particular, netflix we've heard from, it's in trouble but facebook and amazon here, if and as they weaken i'm

not sure -- look at today. that's what kept the market from the session -- the banks were okay, industrials okay these big names that are so loved if and as they don't progress the market can't progress. >> tim said facebook and alphabet, throw in there amazon, of course. >> yeah, same general circumstance heavy, a little bit ominous, needs to prove itself with this next earnings -- >> are you equating -- when i look at the s&p you can make the case either way. either it's rolling over. >> right back to those tops and churning can you make the case with that wedge for the social -- >> what level, sorry, to simplify, what level to the downside do you think the case is broke for me it's 2979 real short leash on the s&p. you'll probably give it a little more room. >> either way i think you would agree that any weakness from here would start to undermine the notion we're going to break out. >> carter, we have to let you go we got a news alert. president trump is in new york city for meetings ahead of the

u.n. general assembly. just a few minutes ago he was asked about trade negotiations with china, eamon javers is back at headquarters with the latest. >> melissa, that's right you remember so much attention focused on the idea that the chinese were canceling their scheduled to the midwest where they would talk agriculture with american farmers the president at an unrelated buylateral session was just asked about that moments ago and had an interesting exchange with the treasury secretary steven mnuchin over what happened last week here's how he said it. >> that was actually at our request they delay that. so we didn't want there to be any confusion, they have started buying agriculture they're going to reschedule that in a different time. but that was truly at our request. >> why was that at our request out of curiosity >> we didn't want confusion -- >> but i want them to buy farm product. >> they are going to buy sdmrath that was the first time the

president had heard it was at the u.s. request that the chinese canceled their visit, it sounded like the president said i want them to buy farm products i want them to go through the midwest buying products from american farmers that's the desired outcome here. there are a lot of political reasons why the united states might not want chinese buyers touring through the midwest in almost a campaign-style event announcing ag purchases so you get the sense that mnuchin was saying there's some confusion here as to what exactly is happening and we asked them to back off that and they did an interesting moment there, melissa. >> why wouldn't they, eamon? i mean, from what i understand because on "power lunch" we spoke to the national director of the montana farm bureau about specifically the chinese canceling the visit. it sounded like the chinese reached out directly which can sort of an unusual protocol and usually go through somebody in the government to arrange such a tour of farmland and the chinese reached out first thing this the morning to cancel but no details were actually -- there was no itinerary. there was no set schedule.

it was very sketchy to begin with. >> right yeah, what you heard mnuchin saying that the united states asked the chinese to back off that visit why would they want them to back off? maybe the media attention surround it could be something that the united states didn't want at this point mnuchin said we didn't want confusion surrounding the negotiation, that is, maybe he doesn't want american farmers to think that we're at an end stage here to this negotiation if in reality we're not. >> okay. eamon, thank you eamon javers englewood cliffs, new jersey today he is, unusual how fragile and how we reacted immediately to that headline that the chinese cancelled this trip. >> amazing to me we didn't hear about this that was obvious what the weakness was in the market, why trump didn't have his ear to the ground on this and we find out a day later you have european pmis in the toilet. we have our growth subject to a recession and now you look at a stock like john deere, up 10%

for the year if the talks are still on and nothing to worry about that should move higher. >> the key for the market here is any incremental movement on trade talks. at some "the point of it all" in time we have priced in the worst case scenario. if you get movement incrementally that will be generally positive for this. if you're looking for an etf, dba which is the agriculture index that trades a lot of the corn and soybean and those type of things is the heart of what's going on here. you know, to me it looks like it's trying to bottom but i don't -- the problem -- catching a falling knife -- >> that has no oil in it as opposed to other etfs. >> it's difficult to trade in and out of headlines the thing they should be following is the fed and the fed today that made a couple comments to make it sound like the most dovish one has only one more cut ten-year yields and technical components but bond yields are

coming back in the dollar is going higher two powerful trades that i think ultimately control the equity market. >> draco malfoy was the little toe head kid >> thank goodness. >> sarcasm does not become you number two, i hate the word awkward because i think when you say it -- >> it sounds awkward. >> but that mnuchin thing, i mean, that's about --s if. >> like your parents fighting or something. >> the last point, again, i don't -- we're getting strung out. i don't see any deal coming. goldman sachs said aas well. you can get good headlines, bad headlines. >> coming up, ipo drama reaching a fever pitch. what it could mean and speaking of markets, one strategist says there are three keys to the next rally and will tell us why it could put up more room to run. ♪ limu emu & doug

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welcome back to "fast money. we are following a developing story on wework. pressure is mounting on the company's founder and ceo adam newman after wework postponed its ipo road show. let's go live to san francisco with the latest.

deidre. >> melissa, that is right. adam's role as ceo is being questioned after reports of smoking pot on a plane, having so we will la shots, questionable hiring and those corporate governance liabilities they shed light on sources tell cnbc it's soft bank leading the pressure against new eumann he first invested wework and newm neumann after a 28-minute car ride now as we expected board meeting sometime this week to determine his fate, both sides will need to tread carefully neumann still has majority voting power and could fire the whole board and keep his voting position if no ipo, remember, that's contingent on a debt deal.

he may actually still need more soft bank money. soft ba softbank has its record to protect. how it treats neumann could affect how it invests in other start-ups. as for the rest of the board it is unclear where they stand on him. ron fisher represents softbank stev steven langman and bruceton levy, the vc firm that ousted travis kalenik they'll have to weigh risk versus reward. >> deidre, a lot of people say it will impact their ability to work with other companies who need money nobody talks about the impact on raising the investor money which it's trying to do right now because in the eyes of an investor, if you're going to side with management all the time you don't have my best interests in mind.

>> melissa, that's a good point, right. they have to tread carefully as i said you got the founders on one side and have to show they're tough and going to protect their investment so in one sense when you have all of these trying to died if they want to throw billions in the hat it could be seen he's willing to get tough against a founder that is acting the way that neumann which could be concerning to misdemeanor >> deirdre bosa on the wework saga >> it started when the board as loued all of this to start happening and started when they said okay with dual class structure before this report. >> a lot of investors are surprised to hear that it's coming to surface now when a lot of this information i think was already out there. i think a lot of the questions around the insider deal wrg things that frankly largely out there. it's not difficult to understand

they are -- they're the landlord and their own tenant at the same time -- i think the social elements of how hard partying, you know, i don't think that's what this comes down to. i think it'smore of a culture that really is built around whether this is truly a company that's been totally transparent. silicon valley pushes back very much and says this isn't a tech company. so i mean i think there's this whole dynamic of what you're buying should this be a high multiple high flying tech ipo and most say absolutely not. >> you said about aboard, the board's responsibility to a nonpublic company and then a public company i think sometimes is that gray area where the nonpublic, the board wants the company to be successful, so they back management regardless of what the ideas are behind the management team. >> if this was still a $50 billion valuation we'd be talking -- not we but people would talk about what a great structure and visionary founder and ceo and it's just when things go pear shaped when it gets bad and to your point what put the cherry on soft don't

discount the sam zell interview on "squawk box." he basically stuck a pitchfork in this thing and it's been going down ever since. softbank doesn't want to be tarnished and a conversation friday unintended consequences, people are looking to throw money at places, quite frankly -- >> that's why it's bigger than an eccentric silicon valley found they're needs to be replaced by a ceo-type to get the deal done this goes to the heart of what's going on this is where the bubble is. this is what's happening remember when you talked about bonds and when things blew up in 2007 and 2008? it's happening again but in the vc world. >> money has to find a place. >> we have a bubble in money there's too much money it's trying to find itself you get stuff like this. i think we'll look back and i'm

not saying that things are falling apart tomorrow but we'll look back i think and point at wework and say that's when the vc bubble burst. >> but the fed bubble is not going to burst and by the way i'm not suggesting that there aren't massive systemic risks i'm telling you that bubble in terms of liquidity can't burst we'll have it for a long time. anyone who has ever sat on the desk when money is free a lot of bad decisions are made but i would say we work as an example. you brought this up now and we've all talked about this. the multishare class structure that gave disproportionate voting to a group of voters who don't care and have major earningses in terms of transparo me can killing the company other companies are coming to market there will be problems but this is about corporate governance in my view and structurally profitable. >> dual shares are always okay until they are not and there is

no recourse. for mon on wework head to cnbc.com. marketing making a comeback and one top jpmorgan strategist s says there are three things that could drive a rally.

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>> announcer: which sports and apparel giants hold a competitive edge for investors a look at where nike stands ahead of quarterly numbers "squawk box" tomorrow 6:00 a.m. eastern. wow. >> welcome back our next guest says there are things that could take us back phil camporeale joins us now three things what are they. >> the first is fundamental. we do not have a recession in

our view over the next 12 months usually when that happens, stock market tends to trade higher and that, of course s. driven by what is debatably the strongest u.s. consumer we've seen all cycle. second, valuations, not an expensive market we may be 1% away from all-time highs but from a p/e standpoint they're paying 17 times, 25-history 16.2 types. nowhere no euphoric. the technical side is probably strongest, melissa you have about 800 billion that flew into bonds and cash funds this year. a tsunami of flows into cash funds and fixed income funds, about 200 billion out of equity funds. and probably the most important driver is the fed and, tim, you mentioned it biggest difference between this year and last year the fed on october 3rd of last year, almost at a year anniversary said we're falling away from our neutral rate and will be hiking rates in 2019 now in an easing cycle and

usually this whole cycle when fed keeps financial conditions easy that is a tailwind not just for prices but for p/e multiples. >> why is it presumed that the money has gone into bond funds and money markets or cash, that that will go into equitys? >> i think -- it's hard to say that there's something that's cheap in this market i think a lot of people said that i will say that cash is really expensive to hold so i think, you know, bond funds are one thing. you need a sharp rise in interest rates. >> how much specifically in cash versus bond funds plus cash which is i believe what you gave me in terms of -- >> about 400 odd into fixed income and 400 into cash remember, coming into this year cash was the only asset class that worked last year. cash was the only positive asset class so everyone was saying let's invest in cash and before that he was em so there is i think kind of an emotional pain trade here that causes the market to grind higher that's the path of least

resistance. >> where are you on earnings and if we get a spate of companies that take down their guidance because the trade war is on and because tariffs look like they'll come into effect anyway, what happens to your estimates >> lukewarm on earnings. i don't want to make it an earnings story. >> versus consensus your below. >> 3%, 4%, what you do get i think is the p/e expansion if you go from 17 to 18 times that's 5% right there. and i think in a world where you have and i want to caveat -- >> a world >> in a world where you have some sort of deescalation, not a grand trade deal but a de-escalation of trade -- i think politically where china and the u.s. want to do right now i think you can get multiple expansion but ultimately until the election there will be no great trade deal also volatility is cheap just buy a call option and get downside protection.

>> in a world where, you know, the ten year wednesday from 147 to 108, backed up a little bit, a rising rates a bullish thing for equity. >> from these levels they definitely are 210 inverted in august if you bought the equity market the day 210 inverted on august 26th and closed inverted the s&p is up 4% why? because rates have actually backed up in september a trip to 1% on the ten-year if the fed has to go three or for more times from here that's a bearish -- >> you've been lauding lower rates in terms of equaling p/e expansion and forcing people into the equity market high rates to me would just be -- >> negative. >> the opposite of that, no? >> yeah, so we were most scared last year in february when people were calling for a 3% or 4% ten-year treasury that's a much different financial condition story at that point driven by a couple of hot inflation numbers. it lasted for like two week, right.

i think from a trip from 175 on the ten-year to 225 investors would love that because i think that would mean that financials were in better health. maybe the curve would be steeper in that environment because the fed would keep the front end on hold and would be a confidence boost for the market. >> what's your target, s&p >> s&p, mid to high single digits over the next year. we're not talking about a fist pounding view on the s&p because we can't get there with earnings just yet but it is higher than here, it's our highest confidence bet. >> phil, thanks. >> i get phil's premise and i understand even -- >> sound like a big but is coming >> based on the fed not disappointingment never underestimate the fed's opportunity to disappoint at a meeting or be too wordy at a meeting or in between. for those reasons that is why i'm hesitant to say off to the races with the s&p. >> essentially -- what did you just say to steve before sounds like a big but is coming. i got all excited.

i thought kim kardashian was coming on the show she actually followed me on twitter briefly. >> briefly. >> years ago. >> decent sir mix-a-lot song. >> who is that >> baby got back. >> he's like -- >> terrible conversation. >> you brought it up. >> terrible conversation i didn't bring it up you brought it up. coming up retail making a comeback could it be a sign a bigger reawaken something in the cards. the nyse launching its long awaited bitcoin futures. yesterday was the first. we'll tell what you that really means for the ypcrto world must for "fast upon" straight ahead. it was sophie's big day.

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welcome back to "fast money. lululemon stretching higher out. >> nice. >> following a bullish overweight -- and set a price and growing opportunity in its men's category this as a broader xrt broke a five-day losing streak retail one of the best performing groups if today's session so could this be the beginning of a bigger retail revival? yes, guy. >> that's been happening i mean it started with nordstrom's and lululemon,

target, walmart all-time highs i don't know if it's the beginning but closer to the end. we've been i think collectively bullish with lululemon and pete talked about it. at a certain point valuation will matter the same way it mattered for under armour, the zenith of their growth we're not there yet so lulu can continue to trade higher i think we're getting a little late in the game in terms of the retail. >> doubling total addressable market and that's not -- even with international then it's a 2x multiple. i'm not worried about that up 60% year to date and guys coming in not just women but ulta slammed, it's bouncing, it has much further to go >> still in it. >> all these are reverse trades. so beaten up that it's not just about fundamentals, it's just about where they want to get to with the comps going into -- >> that's the key. spate kind of department stores like a macy's, nordstrom's from something like lulu and working,

stick with that one. >> piper is -- look at nike. a couple other companies trading at peg ratios so price to earnings group two time answer if you do that tolu lew they can get it up to a $238 stock. based on the story they have doubling the size and buying those abc pants. you could make an argument on the multiple alone. >> nobody likes bc. >> i have not met anybody who does. >> looking at buying your own pair. >> i was looking at buying my diana -- but i lost interest there was a store across the street >> why would you buy them on the line when you could go across the treat and feel the fabric if because i come home, they're there. i mutt them on why do very to go across the street i hit a button. >> anyway, he hasn't bought them. >> it's the 21st century get on your aol account and buy. >> compuserve. whatever you have. options traders are betting the

stock will raise higher on nike. let's get to mike khouw with all the options action hey, mike. >> the option markets is implying a move of about 5% when nike reports earnings. that is pretty much in line with what we would normally expect. we've seen moves of an average of 4% over the last eight quarters there was very heavy volume today. well over three times total options volume on average and saw most in the call side. calls outpace puts by 2-1 and where they were most active were the october 95 calls over 12,000 of those traded for an average price of about 40 cents. normally when we see this kind of activity we're seeing buyers of those calls and those would be bets that the stock is going to raise through that trike by at least a premium they paid but in this case they actually were sellers and i'm getting they were doing that against long stock positions so while this is still a bullish bet it is a much more modestly bullish one because you want stocks to run to your short strikes, not through them so this is basically a bet that is probably not going to break out to new

highs but this is usually a position that is put on by people still comfortable owning the stock nevertheless so looking maybe for modest increases but no more than 7 or 8% by october expiration. >> as a nike shareholder are you concerned about what the company will say about china >> investors breathe a sigh of relief when they didn't have anything bad to say. >> they were flying in the face of sentiment amongst every other company. yes, and so if they said something that would be certainly, you know, aggressive on china downside, of course, but also have been the beneficiary and turned around that north american story and that's been the driver for the multiple >> ramping up direct to consumer it's -- >> clearly not froor brian kelly apparently but for the rest of the world. >> no, i'm exactly the direct to consumer customer. i am that, yeah. >> he doesn't want to go beyond the line. >> they were sold out. that's why i like lulu they're sold out on the line >> interesting point

$90 has been a top a few times so the strike price mike talks about, the 5% move squares you right up with 90 bucks i'm inclined to buy it on a break or above 9 than to try to play stock market ahead of a quarter that they could say just about anything especially with 26 times forward earnings so would wait and see. >> mike khouw, thanks for the action for more tune in to our full show friday 5:30 eastern time. up next the nyse parent company launching bitcoin. b.k. will break down what it s r the crypto space "fast money" is back after this quick break. >> announcer: options action is sponsored by think or swim by t.d. appear trade. 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.

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>> announcer: the president's u.n. address, geopolitical risks, market impact insight on the trump agenda and how industrials should play it now. "squawk on the street. 10:00 a.m. eastern. welcome back to "fast money. the time all you bitcoin bulls were waiting for launching long awaited bitcoin features and bob pisani has more. >> intercontinental exchange launched their long awaited bitcoin futures market on sunday called backed that aims to make bitcoin easier to use as a medium of exchange that hasn't quite happened yet due largely to the volume tilt of the cryptocurrency.

an interesting twist abbt teamed one starbucks in a venture that might allow them o toen convert bitcoin to u.s. dollars that could be used at starbucks. again, down the road potentially. the new futures pod comes a little less than two years after rival cme launched their own bitcoin futures product. a similar product was discoined in march bakkt bitcoin futures has two twists to distinguish itself physical delivery. cme settles contracts in cash. traders who hold a bakkt product will be delivered in bitcoin why physical some may want to hold bitcoin long term. second the contracts ex-pfeifer after a single day a single day it's an interesting idea think about merchants. if you are a merchant and want to cash out can you do it in a day and get your money almost immediately eventually they have monthly contracts as well will this make it more widely accepted

well, nobody knows but allows hore to buy it and there's a long history of electronic markets being successful. >> bob pisani, thank you what is the implication for bitcoin more broadly. >> it's a great step forward today it's not anything that will be a massive catalyst if you think about what bob talked about starbucks is an investor with them and the way this product is structured it that you go in with bitcoin, you pay wit. they'll hedge out any of the volatility which has been a big, you know, negative for bitcoin and they can then at the end of the day have cash so it's a great hedging mechanism. it gets that medium of exchange out there so i think over the next six months, 12 months this is one of those things you point to and say when bakkt launched futures that's when the medium exchange picked up. >> it seems like a real pain in

the you know what for merchants more broadly to hedge the currency they take in. >> there's plenty of people that will do that for you there's plenty of people that work all around here that will hedge that out for you and do it for a fee. they do it with foreign currency starbucks operates in 100 countries around the world they hedge out foreign currency all day long. >> the volatility, i hate to -- i certainly see their rationale but with currency exchange and i know you're not saying it's necessarily a currency exchange or historic value but i think you've said different things even though you believe that could be part of it but that's the real thing if you're using it as a currency and having a wildly volatile currency is probably why people want to use bitcoin. >> the volatility right now does not make it viable as an everyday use of currency this is one step as we get more financial products to get the volatility to tamp down a bit. >> this is just this in a vacuum, to b.k.'s point before

we dive in domino deep on this, this is something that gives traders a lot more confidence, that's it. in a nutshell. it's not the tipping point but it definitely adds more credence to the bitcoin story. >> so do institutional investors increasingly invest in bitcoin >> so the one thing this will do is as they have those monthly contracts because they have physical storage which would be electronic lie coal storage, this is like a custody solution so it will bring institutions in that need that custody solution and it will also tie the price of bitcoin to the futures a little bit better and have the same customer who holds spot bitcoin can sell futures against it so the contracts and spot should come in -- invery hen tall step towards reducing volatility. coming up, one casino tightens as president trump is rolling the dice on china. we'll bring you his big warning. our cramer cam he is talking cannabis with the new canopy growth ceo.

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welcome back to "fast money. president trump is rolling the dice on china, well, that's the

big warning from casino tight an sheldon adelson. the las vegas sands ceo called president trump to discuss how escalating trade tensions could hit the u.s. economy and hurt the president in his re-election race of course, casino stocks among the hardest hit in this trade war. he didn't call president trump specifically about the casino industry but still coming from a casino magnate, i wonder. >> i think he's one of his bigger backers so interest to wonder there is a subtle pressure being put on. look at the casinos. do they make sense >> lvs has been in a significant downtrend. wynn on the other hand this, 105 to 108 level has been support a couple times if you're of the belief which i am not if you believe there is a deal around the corner i think wynn is cheap at current levels. >> i think first of all speaking to the broader element of what mr. adelson could be talking about in terms of, hey, look, from your political constituency perspective you fought this

battle and gained enough point, more importantly you'll lose the election in the market is not on the side of the investor so the wealth effect is clearly going to be where people are voting. back to casinos, macau is a major part, somewhat of a rege national dynamic big brother in china, macau but hong kong and do think as guy points out, you know, wynn has been a poster child, 108 the valuation is very, very supported as is the chart. you buy it. >> i mean the hong kong protests have been going on for four months now. >> you expect there to be less violent or the story to gather less newsworthiness and seems like it's prevalent constantly but las vegas, you get singapore as well as in cow and vegas, i'd go there if you want to invest. >> i think you have -- they have to prove themselves to you too many risks if there is a lifting of the trade war you'll have all kinds of time to buy these things so

for me it's a no touch at this point. >> interesting that sheldon called him to warn about this since it seems like every -- both sides of the political aisle are moving more towards being china hawks if you take a look at all these debates going on. >> he has a vested interest in making him back off it so you don't have to be in agreement but yet of aggressiveness on the trade floor. >> he feels if he doesn't do enough and the economy falls pressure or market falls pressure will be more important than getting out on a mb olin china. up next, final trades. after my dvt blood clot, i wondered.

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the best stocks are never cheap. they rarely come in and when they do, you got to be ready to pounce >> buy, buy, buy. >> are we now getting meaningful pullbacks and truly high quality stocks time for the final trade >> we talked about nike and dtc. not worried about this multiple and peg ratio. i stay in. >> you don't fight it. they want a steeper yield curve. >> steve. >> ulta, it's up about $10 i think it's moving another $10 higher but i can't fault you if you want to take profits right here. >> guy. >> if you were the head coach of the tampa bay buccaneers would you have taken that delay of game penalty to push your kicker back an additional five yard. >> no. >> she was talking about that before the show.

>> obviously not >> it's ridiculous unbelievable >> part of her job. >> many talents, i don't advocate eating there often but mcdonald's has done everything you want it to do. >> see you back here tomorrow. "mad money" with jim begins right now. my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. you know what's driving me nuts about this market, too many disparate metrics to keep track of too many weird goalposts to watch. th