we're taking in tremendous numbers in tariffs and we're helping our farmers who get targeted now by the way china is starting to buy our agricultural product again starting to go with the beef and all of the different things, pork, very big on pork but if you look and if you see and they actually put out i think a statement but they are starting heavy to buy our ag again. they want to make a deal and they should want to. the question is do we want to make a deal? >> if usmca doesn't pass through congress is that it for nafta. >> that's a a shame. you know how i feel about nafta. i think that's the worst trade deal ever made although i also happen to think world trade organization was not one of the grates not one of the greats that was the creation of china which went like a rocketship from the day she signed. it was terrible. but no we're going to find out that's going to be a very interesting question with nancy

and chuck and all of these people focusing on the witch hunt, because they can't beat us at the ballot. they can't beat us at the ballot and they're not going to win the presidential we're having great polls, internal, ohio, iowa, pennsylvania is looking good north carolina he we just won two race that is a lot of people we thought were going to lose both races one was down 17 points three weeks before the race and ended you said winning by a substantial margin and dan bishop and then we had a second race as you know, and he was up one or two points and ended up winning by what was it 25 points or many so incredible -- i'll ask you because i don't want to be inaccurate otherwise have a front page story breaking nuts trump exaggerated. but he won by many, many points and he was leading by maybe two

or three but won which which in the tents 20s. we're looking great in north carolina, looking great in florida. and you had one or two congressman democrats saying we can't beat them at the elections. so let's impeach him right? didn't you hear al green that's a beauty. he is a real beauty, that guy. but he said very distinctively it's all -- it was all over the place, i don't know they're trying to lose that tape, i guess. but he said, we can't -- essentially he said we can't beat him let's impeach him that's pretty dangerous stuff. steve, go ahead. >> thank you, sir. you had expressed some concerns about the president of releasing the transcript. >> i don't. >> why did you go ahead and do it. >> because i was getting such fake news and i thought it would be better. now they're asking for the first phone conversation and i'll release that too if it's important to you. but they're asking -- because i had a conversation previous on a

previous election plateau that he had hit, the current president hit a couple of different plateaus i spoke to him previous to the call that we released. which was a very innocent call very, very innocent, very nice skaul. and as he said i wasn't pushed -- i wasn't pushed meaning pressured. he wasn't pressured at all but i don't like the concept of releasing calls because when a president or prime minister or king or queen calls the united states, you don't like to say, gee we're going to release your call to the fake news media and they're going to make you look like a fool. what happens is it's hard to do business that way. you want to have people feel comfortable. i hated it but you folks were saying such lies, such horrible things about a call that was so innocent and so nice. nachkt, lindsey graham said when he read it it was very interesting. he is a good man, a smart man. he said i can't believe it i never knew you could be this

really nice to a person. he said, i cannot believe it you were so nice i didn't think you had that in you to be so nice. i was nice i'm nice to a lot of people. people don't understand that but i was. he was shocked it was such a nice call. and he said there is nothing here and all fair people say the same thing. but i don't like the press den, steve. i don't like it where you are dealing with heads of state, and to think that their call is going to be released but i felt that -- and you know, we spoke to ukraine about it mike actually called up his counterpart. and we spoke to ukraine about it because we wanted -- because it could have been -- if they didn't want us to do it we would not have but he actually said this was a innocent call you can release it all you want. >> are you brace ford a long impeachment saga. >> i thought we won. i thought it was dead. i thought it was dead, the mueller report, no obstruction,

no collusion you look at all the things that happened cory lewandowski was fantastic the other day as a person that they have been tormenting. you look at all the people they have tormented all the legal fees people came here with bright eyes, wanting to make life so great for other people and any left where they spent hundreds of thousands of dollars in legal fees that they didn't have and it's a sad thing what these democrats have done to ruin lives is so sad. i have seen people with only good intention, came to washington because they wanted to make the united states and the world a better place and they went home, they were dark they got hit by mueller's subpoenas. i think there were 2500 subpoenas or some ridiculous number 500 people were interviewed. and yet they don't interview joe biden. and his son. if you're a market you have automatic protection

that's years and years of people putting in certain people into positions. but we you look at all of the -- all of the trauma that these fakers have caused and the press -- look, the press is -- much of the press is not only fake. it's corrupt these stories they write are corrupt. they're so wrong and they know that you know, it used to be i used to be great press until i ran for politics i used to be the king of getting good press i was very good at it. and i got good they covered me well for -- otherwise i probably wouldn't be here once i ran i said boy this is incredible. if you see the way they treat my family used to be treated great. my family worked so hard the people that work with me these people all of these people they work so hard. they've done such -- look we have the greatest economy we've ever had a military $2.5 trillion rebuilt the military you don't hear the vets

complaining. we got kmois approved. it couldn't be approved. but when you see what happened with the viciousness and when you see little adam schiff go out and lie and lie and stand at the mic -- smart guy by the way -- stand at the mic and act like he is so serious and he goes in the room with nadler and they must laugh their asses off. they must laugh their asses off. but it's so bad for our country. people have said rush limbaugh, great man, sean hannity said it. mark levin they said they don't know if one man anywhere in the world with all the men they know or woman that could handle what i've had to handle and i think that's true. but i handle it. to me it's like putting on a suit all right how about one more question question on the economy. a question on the economy. >> go ahead. >> go ahead. >> hi, mr. president bpi tv from

caracas, venezuela how you doing how you doing over there >> pretty bad. >> yeah. >> i would say pretty bad, yeah. sad. >> but we are fighting. >> and it was one of the great countries, one of the richest countries not so long ago 15 years ago incredible. >> we are going to make it. >> i agree with that and we're helping you. >> yeah we're helping. >> you yeah, i know and thank you. >> go ahead. >> i have two questions to take advantage of this. midura traveled to russia and kable owe to north korea two of the most antagonist nation in the u.s. interests what can be done to contain this what are they looking for in that country and because their special envoy said that the russians are willing to negotiate it. this is one question and the other, mr. president, you say that the socialists is

one of the biggest challenges. you say yesterday in the united nations. but the region is far from safe. maduro still at the table, full in power in argentina and brazil are under threat about the socialists and populist are you wrd about it. >> i just say that socialism will never happen in the united states can't happen in the united states and venezuela ufrmt have to use your country as the example of what socialism can do, tear the fabric of country apart. i know about venezuela i've had many, many friends of mine come from venezuela, living many in miami. certain section of miami i won't mention the name because they'll say i'm thinking about my business and i'm not. but they are fantastic people. and they like your president, voted overwhelmingly for me. like what i'm doing for venezuela. we have venezuela in our hearts.

and very much in our sights and watching it carefully. and you know, what i would say, we're giving millions and millions of dollars in aid not that we want to from the maduro standpoint, but we have to because on a humanitarian -- people are dying they have no food, no wert water, no nothing. they're dying. no medicine. the hospitals are closed or don't have electricity so sad to see. let me just say that we have it under control. we're watching it very carefully. and we're going to be very, very. >> russia. >> we're watching it carefully including other countries that may or may not be playing games. we're watching it closely. >> you know if russia is talking usa or what can you tell us. >> put this in the back of your mind we know everything you said and it's all going to be fine. we're very much involved we very much know what's going on

and we're very much involved okay thank you all very much. thank you. thank you very much. we've been listening to president trump wrapping up a news conference in new york. president president talking about everything trade deals to china to the house moving forward with the formal impeachment inquiry. he said he supports transparency on the whistle-blower information but also demanding transparency from the democrats he said the timing of the impeachment inquiry announcement yesterday while he was at the u.n. and planned on the part of the democrats. and he also said he does not like the precedent of releasing details of calls between the president and foreign leaders. but he did talk about a number of things. this of course happening hon a day where he also spoke side by side at a bilateral with the president of ukraine earlier today from the sidelines of the u.n. general assembly and we saw the markets actually finish up on the day close to the session highs we saw selloff in bonds the yields back to 1.74% or there abouts strength in banks and we had

strength also in technology. let's g to eamon javers who had been press conference got the first question in to the president. eamon. >> yeah, you know, i wanted to ask the president this idea of what the american people should think about this scandal should the american people be happy about a u.s. president asking a foreign leader for information about his political rival. and i asked the president that and i also asked him ultimately what would you have done if barack obama had done this and you discovered that? the president you know sort of gave a long answer there but ultimately didn't defend the principle of american presidents asking for foreign help. what he did do was talk a lot about his administration he talked a lot about how well things are going in the economy. the president gives a long answer here but ultimately not really saying why it is that americans should want american presidents asking for foreign help in dealing with political issues

he did say his concern is corruption in the ukraine. he is focused op the new ukrainian president who came into office in an anti-corruption wave and he said that was one of the things that was on miss mind, guys >> all right eamon we were listening to your question carefully, listening to the president's answer very kayle. and didn't -- couldn't seem to connect the two. but thanks for trying, eamon javers of -- right there with the president let's bring in our traders now. pete narjen, karen finerman, dan nathan and guy adami process we were talking a great deal because of nancy pelosi's announcement of the formal inquiriy into eachment what did you make of the reaction today with, pair that with what transpired today because we had two appearances from the president, one alongside the ukrainian president. >> i think a lot of people will say that the rally was based on the fact that maybe there is not a lot to nancy pelosi's statements last night maybe the

impeachment doesn't go far maybe it's over before it begins i don't think it was necessarily that it was more president trump at one point said we're closer to a deal with the chinese than the market is giving credit for than we're getting credit for you'll be surprised. i'm paraphrasing but that language to me that's why the market went up, dow, 180 some points we'll find out over the next couple weeks i submit still there is no deal. and i think jamie dimon said the same thing he toents see a deal with the chinese before the 2020 election dawning this is the right environment to have a vix trading north of 17 probably closed in the 15s today. i thought this a while a and have been wrong. i think in this environment given the back drop the vix is way low. >> it was a risk off day the vix down more than 6%. yields moved up moved 10 basis points oef over the course of the past 24 hours. strength in the regional banks

up almost 2% and strength in the fang names. >> i think sentiment in the fang names has gotten negative specifically netflix you see that nap back 4% if you want to focus on market action intraday and the comment tear about the china trade deal. you look the semi, the tracking etf had the 3% reversal from lows closing to the highs. >> you think it's china. >> i think it's china. but remember you had a good conferring with michelle caruso cabrera. saying there is no incentive now for the chinese to do a deal because as long as the impeachment drags out a little bit here then you get in the election cycle and the chinese don't have incentive to do a deal then. we're going back and forth on these announcements but soon they'll be blunted they're not having the impact that they had on a day liked >> yeah, i've been thinking that for a while. every time there is negative news trump seems to be on the ropes interestingly that coincides with positive news on

china trade. i'm skeptical of that. >> right. >> and i think part of the rally there was some dovish comments -- was proceit bullard and that was the second leg up first coming out the china trade. and then -- i agree with you on the vix. i'm long vix i think the vix should be higher there are so many potential things that could happen but, i mean, today was an impressive market. ironic to me that banks were up and you know the dovish comments, right. those i think are somewhat at odds on cutting rate. >> auchlds we saw steepening of the yield kuv with the 10-year rising >> and oil down. i'm is almost round tripped. >> i think it has. >> has it. >> i believe it has. >> but we haven't seen whether there is a response yet. is that it was that the end of the whole thing? i'm skeptical itwas. for all those reasons i like --

i want to be long volatility i am and i think volatility will be high sfwleer i think it makes sense to be long volatility or sleeft long put protections you have on depending on the exposure levels through the s&p 500. is it the nasdaq dpepding where it is maybe it's just financials themselves the volatility is really low,ism aingly low given the back drop but one thing i disagree with dan on is incentives for the chinese. let's be honest they are suffering over there when we look at their numbers they continue to be very, very bad. we talk about decades of go type up ins they are sitting on i think they would like to make a deal but obviously with the president and all that's going on now that is something that's going to be much more difficult to try to figure out is what kind of time frame do we have is jamie dimon right we go all the way through the 2020 election sns or does something happen i'm not thinking something will happen in october. but i do think that maybe there could be some progress long along the way getting towards the end of the year on the

talking about getting something done and i think more importantly for the chiends but i'll tell you, the chinese markets today we had more unusual option bying today in different -- the ashr, the china 300. >> they were teeny options 22 cents. >> paternal probably because of the fact of the talk about october. >> that's not anything. >> okay fxi snore one. 30 plus odd thousand of those bought upsfd you say okay these are numbers we see every day you can't deny the numbers. >> i'm gichg you the option player who would look at somebody boying short dated options for 2 cents and say that's real commitment china. >> some out to january by the way not frgt is short-term. >> i disagree. >> i'm not trying to push your buttons i'm just saying the numbers there. >> i find bigger issue here you talk to vix at 14.5 process doesn't matter. >> 16. >> what's the data we are. >> i understand your point but we have to -- what is your

bottom line foint you are trying to make. >> my bottom line is i think there is more issues going on with the chinese themselves than us in terms of economic situations. now, politically, we all know it's focused right on us and it's amazing to me we have a 16 vix right now that's a 1% move today -- or each and every single day we sit at 16 backup we're getting massive moves. we talk about volatility being volatile this has been volatile where with were we today, up, down and finished up nearlily. that was a huge right now trip we had today people need to expect that every day. and because of social media, and the president we have got here in the zbluns has your view of the political situation and the impact on the markets more importantly changed in the past 24 hours given what president zelensky of ukraine said which was nobody pushed me to do anything and what happened this amp with the president. >> and then the conversation on power lunch. what was he going to say he wasn't going to go and sandbag the president of the

united states that forum i don't think it's political suicide. clearly this -- i'm sure there are things for him and his people they want as well again i'm in the a political theorist there was no way he was going to say otherwise. but to answer the question, no, not necessarily. again, i can't -- well maybe i should believe it. this is not a political comment but i can't believe the democrats went into this yesterday knowing the political suicide it could potentially be for them and candidates without having something morp what we just heard today i do think this is going to last longer than people think. >> and there are some today saying the real -- the real casualty will be joe biden himself. >> yes. >> that's what i think wsh the real casualty could be joe biden in which case that makes a warren presidency more likely. and that is really probably pretty bearish for the stock market. >> i think everything from the war on wealth all the way sfo health care, right we have seen the chart from i believe it was jefferiy where they show when the spread of warren over biden where warren

leads over bide biden goes wider the xlv goes lower. >> you can draw and line back to the campaign and look at why trump was so popular the pop ultimates message and draw the line straight to bernie sanders and elizabeth warren i think there are people in the middle of this i don't think it's going to be as negative for the economy and for stock market as a lot of people think because if you think about, you know what's going on here we have global growth slowing this is what i want to get back to the data. i think you could have a skinny china trade deal any day now it could be just a dressing the trade dechz but doesn't affect the fact we have global growth slowing. you saw the auto numbers in germany down 12% yeefr eu auto sales down 3%. it's not just china. and the thing about chinese growth weak and where is getting worse reveshts all over the world. if our growth is at 2.5% or something-like that that's not particularly fantastic here.

i guess my only point is you may get a deal about buying soybeans or pork tp doesn't matter. that doesn't matter. substantive what did we do why did we take this pain por the trade war to do substantive stuff on the technology front that's the war being fought wae not getting a answer to that any time soon. >> what's interesting is what pain -- playing devil's advocate what paper have we taken really. >> because tariffs have been delayed or carved out exemptions >> stock market at all-time high unemployment the pushback would be we valhalla really vant taken pain. >> farmers got $36 billion the auto steel guys plenty of people have it priss are going up as long as the tariffs stick around ultimately. >> we don't know what the gdp would have been if not -- would have been. >> if not for this headwind. >> cap exathemmic i don't know it's out there, the data. >> we'll bring you naefrm developments as we have in the meantime coming up peloton sets a price at any moment where the ipo buzz ground to a halt.

the latest plus kb homes reported results breakdown the numbers. and one technician says the bank balance here to stay we tell you what's in the charts live from new york city, times square, much more "fast money" right after this ♪ i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement. when i lost my sight, my biggest fear was losing my independence.

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welcome back to "fast money. we have got an earnings alert op kb home. the home builder in the red but off the session lows high pressure let's get to diana with more. >> it was a strong beat on earnings as demand for new homes built over the summer. kb homes ended hirer after it was upgraded a 20% jump in new orders and backlog rose 16% the ample selling price 7% due to a community mix shift in the west kb ceo jeff metzger said they were able to raise prices in 90% of communities thanks to strong demand

the cancellation rate improved to 20% from 26% from him the metzger said the company is on track for a strong finish to 2009 especially given the position in the market as catering to the first-time buyer >> market conditions remain favorable. supported by low mortgage interest rates, steady economic growth, high consumer confidence and positive demographic trends. while demand is healthy, so supplies continues to be inspuf particularly at affordable provides points where we operate, which is a key element of our success >> now we also got the numbers on new hops home sales in august this morning they were much stronger than expected, up both for the month and 18% higher than august of last year. supplies of newly built homes are le are annually for the first time this year demand kpleerly bolstered by falling mortgage rates, coming down all summer. but most sharply in august, bringing buyers out

preponderates have turned slightly higher this month but analysts i spoke to would say so far it's not enough to dampen this new demand. back to you guys. >> diana thank you diana olick keep in 19 on the back of the new home sales numbers we had strong performeds in the home builders, actually up by 3%. the dplk decline in the after hours session is not bad for a stock up 70% this year. >> a huge move $20 stock it's up closing at 33.5 or so but you want to poke holes i'll play the game. cancellation rate 20% this quarter. 15% last quarter average closing price lower than expected so there are things to be concerned about. people -- the bulls will point to valuation correctly and say it ten times forward it's cheap and probably have a 13% eps growth rate which is obviously very good. the question is is it too much too fast and you know there are some storm clouds coming for the home nlders personally i'd be inclined to take profit in this name. >> we saw consumer confidence

weaken. >> yes so it's just one data point. one other thing about the numbers come out the prior month was revised meaningfully higher as well. that's interesting to me even with the run it's had. remember it had the terrible drop the end of last year. i think the whole space they moved together but i think the whole space is still inexpensive. this has been a multiyear change i don't think is reflected in this sideways. and i think -- and rates keep getting lower and lower. so i like this space and i like -- well len nar is one you like. >> i do. i presently am in toll and tripoint but only in call options because of the run they've had. this is the great opportunity how do you play volatility this is another way to play it i'm not buying stocks of this made 6 oh, 70, 80% notified to moves to the upside. i'll by by the calls though that's a good strategy when you look at the numbers where they're trading to your point, gio they're still inexpensive you get dividend yields out of some of these as

well there is reason to understand why people are looking upside. raymond james had a huge upgrade across the secretarier >> it's interesting with the, the number year over year interest rates were higher last year and we are seeing it's a function i think the obvious lib the lower rates. supply demand dynamic is something likely to continue to play out not a whole heck of a lot of supply and the longer the rates stay lower. >> and employment, right employment continuing to -- >> one pore point a friend the of the show had a note out saying the 713, hundred thousand the number in august pb has been the average in august. when you smooth out volatility over the last couple of years it's not some excessive number year over year looks better than it is. >> interesting action in the bond market today. we referenced this the top of the show 10-year yield back above 1.7%. moves this week capping off a roller coaster land this summer. yields tumbling to three year

lows as trade wars keeping investors on their toes. what's next for the bond market? what did you make for the big bounce. >> surprised 10-year was at 1.64, 13.5 the 50ers a couple weeks ago 1, 37 i mean that's a staggering moving percentagewise. bond markets in a developed country like this shupt move that way that's beside the point. i still think yields are going lower. i think the move back to 1.85 in the 10-year was the retracement and i think we are re-testing the 1.45 level 37 to answer your question, the reversal was significant. surprised me. >> and in the banks, i mean that's really. >> nice move in some of the banks. we had huge upside buying in citi process but jp morgan all-time high today. >> not quite. >> really close. some of the names moving up. goldman sachs when you look at the push from where it was to

where it is now, mel you can understand the attractiveness people feel towards the banks. >> let's get more on the direction on the banks mark newton at the plasma to give us the charts mark. >> thanks, melissa, hi ance iffingly you see more strength out of the banks despite the fact that yields have gone lower the last ten months you look at the mane bank etf, kbe, show showing you a couple of different things. prices have been range bound the last five months however showing increasing signs of strength in the last few weks. and testing prior highs getting over the prior high would allow us to make a move up towards the prior peaks that we saw. so that's really the one thing to put in example. financial etf, the xlf, this is something that has shone a decent longer term base going back just since that prior peak. and so despite the fact that yields have been falling you have seen keysant strength to move up to the test the prior

level in xlf my thinking is that it's likely we're seeing increasing signs of financial starting to rally dpiet the fact that yields are falling. finally this is what puts it into peskt is the fact on a relative basis financials have been strengthening despite the facts that yields are falling. this is a relative chart of xlf versus the s&p you see we are making higher and higher lows even though on a downtrend from last february this is a time yields peaked out and started to fall. of course we peaked on or around last november and falling since in yoeld but now you start to strengthen at a time when yields are still very much in the downtrend rallying about 10 basis points in yields today in the 10-year and of course the yoeld curved pop to about 5 basis points. but in general this is a sector to really pay attention to it's not going to take much more you've already seen stocks like jpm hitting all-time highs citigroup and baepg of america

well positioned. pete was talk bag citi group i think this sector is looking more interesting at a time when you know everybody has been talking for years about okay the financials are in good shape structurally but now finally you see technically stleeft a few signs of the group starting to work >> mark, i'm curious, because if you look at that chart for instance that's september lowest low coincides with where we saw the lows for yields effectively, right? right. >> and so financials have really been dependent on where spreads go and where yields go when you take a look at the chart of spreads or the chart of the 10-year yield zbliens right. >> does it follow typical technical patterns can you actually analyze it techically with great -- did as much accuracy as another chart when so many people are saying there are so many other external factors dictating the direction of yields. >> i think you are right i think the yield curve is probably better going something

to concentrate on versus the 10-year itself because i noted yields have been falling since last november. yet seeing a decentment of strength in the xlf. a lot that have is workweek shire, wells fargo, citi, bank of america, the big boys but the secretary are managed to strengthen on an absolute basis and looks in better shape than it should given the fact that yields have been falling dramatically my think something yelds bottom around 2016 or 2012 lows that's around 1.31 to 1.36 or so it's tough to make too much of this bounce today. 1.63 to 1.73 now but, you know, i think in general it's -- it should be a level that yields start to stabilize. and if that's the case and, you know, the u.s. is still growing faster than a lot of the world, and if yields turn higher than that should be a decent sign for the xlf and with regards to the yield curve as well. >> mark, thank you mark newton of newton advisers

we've had a bunch of bank bulls comment to the right of me dan i'll ask you >> let me say there is only one passenger jp morgan. the investment banks down 25% from the 2018 highs rg who understandly goldman sachs, bank of america and citi each down 12% from highs i see what he says in relative strength one point to you made earlier in the show when trump's back is against the wall he goes back to the greatest hits. one of knows is calling for lower rates. as trump gets in more trouble if the situation mushrooms process that means senator warren rises in the poles a double negative or rates and banks. i don't see it as great setup. if you want to own a bank, own jp morgan. >> you think rates go lower under warren i think they go higher. >> banks under warpen. >> not the banks, rates preponderates. >> from here until there. >> rates. >> lates go lower because trump keeps hitting them from here as warren as you rises banks go lower because warren will keep

hitting them. >> because of the fear of regulatory pressures. >> i dwelt -- obviously the yield curve was really important to banks but i think what's been happening is as the rotation out of momentum towards value this sector is really a value play. even having moved a lot. jp morgan still at 11, 12 times earnings that's not crazy. >> coming up chip stocks ripping higher that month and options trader say there's one name gearing up for a bigger semi surge. plus the juul ceo stepping down and bun tobacco deal in ashes. we lay out what's next in tobacco for the stocks much more "fast money" straight ahead. ... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪

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welcome back to "fast money. big news in the tobacco world. juul ceo kevin burns stepping done as the company faces growing scrutiny over its role in the public health crisis that has seen at least nine vaping related deaths 10 as of the latest koupt. the the news of the dprts you are as the big tobacco deal up in smoke altria and phillip morris ening merger talks the deal would have create add $200 billion-dollar toerk jientd altria ceo tobago he can spoke about the called off merge sfloer we are looking for opportunities to strengthen our position and ultimately we thought it was worth to a discussion with

phillip morris international about whether there was an opportunity to merge ultimately we couldn't come to terms. and so we're back focused on our very strong position in the u.s. market >> so clearly a lot of developments today pete, what's your take >> you know, i got to tell you something, i think there is so much regulatory issues that are going to be facing these guys for a while now that i think it's almost like a hands off now i own some calls to the upside in altria because people have been buying these specking something positive out of this deal obviously we're not seeing it. it's not a big reaction at least on that side of things so i think those are going to end up going out worthless they had a bit of a move early but now gone away. i think there is so much to the whole thing. and everybody is a part of this. it's the president on down and everybody seems to be getting more and more negative and when we talked if the freen room does this affect any of the other side areas, like in the marijuana world and some of the rest of that how much will be affected here. >> report, karen.

>> i was wondering about that. is this what's part of you are the pot queen. >> you are the pot queen. >> you are i meant to say that. >> the unzbleernt the uncertainty right of the bear case in cannabis world >> i think that if there are questions about vaping and there are cory crandall krakd. s on vaichg that's an area of business that might be delayed or stunted for now until there is more clarity on what exactly is behind all of these deaths. so i do -- you know, that could contribute to this whole thing >> yeah, i would think it would. i was surprised that p.m. was up on the news. i would have thought this would have been a dead in the water deal from last week. i don't know -- i guess -- yoeptd, maybe people still believed it might happen. >> i was surprised altria wasn't down more on the day. >> more. >> because altria. >> the highs of the session. >> they knew it was going to break and the pm shareholders didn't. >> which could be deemed encouraging. but the stock has been cut in half now in three years.

effectively when the stock market at all-time highs, people will say valuation, i don't see any compelling reason -- this is not -- we're saying it just tonight we've been saying a wail i don't see a compelling reason to buy it. with that said, this is ripe for a nelson pelts to get miss arms around or carl icahn type. this would be a trophy for them in a major way. >> >> if you open the playbook -- there aren't businesses to. >> should they buy cannabis pb vape these guys are desperate. >> well, i'm just throwing it out there. wouldn't be spraysing let's put that way but i don't know what they would do. >> i'd be surprised. >> you'd be surprised. >> i would be. >> i would too. >> i don't know what you -- >> you are facing so many hurdles. >> find a name at a ridiculous discount. >> no easy fixes to declining tobacco business. >> that's fair. >> for more on the tobago dele breakdown look at the squawk

interview tomorrow 9:00 a.m. eastern. coming up peloton set to price the ipo any moment this during the week where the ipo buzz has ground to a ahmat. check out the chip stock up more than 65% this year and options traders betting on theigr bge breakout ahead we tell you the name don't go anywhere. much more "fast money" after this you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. liberty mutual customizes your car insurance, hmm. exactly. so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪

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well back to "fast money." moments away from peloton ipo price let's get to do dom in the newsroom. >> waiting with waited breath almost like i've been on a peloton bike myself. here is what we know so far. we have 40 million shares sold by the company in class a shares they've got a dual class share structure. the current announced range, 26 to $29 per share there is an underwriter option to sell an additional six million shares call that 43 million shares. if they sell all of those they're looking to raise 1.3 to 1 peart $2 billion that could value the company at between 7.3 and $7.8 billion depending how many shares are sold what the price is at the midpoint and how many shares they have outstanding given the fully dill utded or not fully

dill putted -- basically depends how you calculate. there are a lot of assumptions this is another company with growing revenues, yes a lot of growing revenues but also have accelerates loss as well peloton is vorting about $$915 million in revenues in the fiscal year ending just in june. that's 110% higher versus last year but now losses are running at $$245 million, five timesway we saw in 2018. so what it comes down to is this is one of the most highly anticipated ipos out there as our own julia boorstin has been reporting, the first of the 2019 cnbc disrupter 50 class to go public a lot of anticipation for this big exercise bike and technology company, guys. we'll bring you the latest as soon as we know the pricing here melissa back to you. >> thank you, dom. dom chu back at headquarters >> hq. >> waiting for the news to cross. as it crosses he will bring it to us live. >> almost works as hard as you

do >> thank you, dom. >> you got it guys. >> peloton set to start trading tomorrow during a week during a we can where the hottest ipo crash. tumbling double digits in that time can they survive the ipo carnage? do you get the peloton business model. >> if so, i love peloton. >> as do i. >> all have more more than one you know, i have a hard time with the income statement, though i have a hard time with the expenses and you know they talk about the total addressable market i don't know that that -- i'm not as optimistic on the total addressable market it's of an expensive machine to boy. expensive machine to subscribe to obviously that's a good part of the business i think the treadmill maybe hasn't been -- i don't know -- i'm not clear if the treadmill is really dsh zsh dsh. >> as as purpose as the bike. >> as popular as the bike. i probably wouldn't own the stock at this range sfla you are

a peloton user guy. >> dennis is my guy. hannah marie, and i get on that thing. >> love. >> yes. >> many so of those classes are ridiculous. >> but to your point it's a $2,000 bicycle a $5,000 treadmill you pay $50 a month. you know you have to ask yourself what is the addressable market in some ways the addressable market is everybody on the planet we should all be in shape. but it ain't happening i'm somewhat skeptical with that said, the nasdaq continues to do well on the lift had listing front i think they are here tomorrow. i think the way you play is it ndaq that's what i've said. >> we're at a point in the cycle where people are going public who don't have public comps. you have the scarcity value on something that's sounds like a great idea no one knows how to value it versus comparables so they can go ballistic i suspect this does well with investors because everyone of us on this devg owns them, know the

product. it's kind of like what the old peter lynch thing. and. >> 5 oh -- 511,000 of the product. how are they making money? they lose five times more month than in 2018 np that's a huge issue. it feels like uber, lyft >> they want to grow. >> when they tell us they are a media company and not exercise company that tells me a lot about the company. >> we have an important disclosure to make here. cnbc parent company comcast ," nbc universal is a investor in peloton. option trader betting one time ripping higher we brake down the action look at the cramer cam jim talking with the ceo of twilio, the interview at the top of the hour on "mad money. livet athe nasdaq in times square more "fast money" still ahead. i wish i could shake your hand.

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someone new joins your network... only with xfinity xfi. download the xfi app today. welcome back to "fast money. check our western digital catching a bided to data giant now up 7% in the last month. options trader betening on those gains. mike khouw is right here in the studio with the action hey, mike. >> hey, there, how are you let's look at what was going on

in western digital today backup we saw more than two times as many calls as puts trade what was interesting, the activity i was seeing was the october 11th weekly 62 calls why is this interesting in we do often see weekly calls trade often the week prior to something that's going on. they are going to be reporting earnings on october 24 process this is somebody making a bullish bet we see a rise in western digital up 4% or more prior to earnings. i think that's pretty notable. we could take a quick peek at the cart and look at what we are seeing so we're looking at get above 62 bucks by at least the amount of premium they spent, bearing in mind they expect this to take place within the next two weeks and we're seeing earnings around here obviously they're eyeing short-term moves we also saw some significant call activity in jup juniper. >> dan you are watching micron. >> we talked about the semis earlier in the show.

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welcome back to "fast money. i'm dominic chu. we have news on jern metropolitans motors cnbc learned that the united auto workers union and gm are close to a tentative agreement ending the ongoing strike by the uaw against general motors they've been meeting all day but progress is being made we'll keep an eye on those shares bringing more as we no he more back to you. >> thank youdome, back to pete. >> kb homes get you done. >> chairman wom. >> hd gets you done. >> dan nathan. >> quick xlf shocker, seller. >> really? >> i'm shocked

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