or so on the dow, down 30 points, just small declines of 0.1%. coming off the back of strong gains on friday. we're out of time here that does it for "closing bell." >> "fast oney" begins in just few seconds. live from the nasdaq market site overlooking new york city's times square, this is "fast money. i'm melissa lee. tonight on "fast" nike breaking out to new all-time highs, but is this record run about to hit the wall we'll debate it. plus we'll tell you what sent shares of tesla into overdrive and later big changes at boeing. the ceo stripped of his chairman title. b but one insider says too little too late. we begin with moment of truth for the markets. we are hours away from earnings kicking off. so will the banks be the bellwether for the markets as we

head into the rest of earnings season >> i don't know if e.they're th bellwether, mel. late night for us yankee fans -- >> oh, yeah. >> i'm a new york fan, go yankees. but let's talk markets. >> we do what we need to do, as you know, mel. are there trading opportunities? i still think they are citi was an interesting play tangible book is around $69. i think what you'll see is a bounce after earnings on the back of that it trades anywhere from 85% of tangible book to 1.2 i think that's what's going to happen now in terms of the bellwether for the broader market, i don't believe that to be the case. >> i think it's all positioning. we've all talked about that. i think positioning has been negative in the financials i've been negative in the financials i do believe estimates have come in enough that you can sort of walk over them so i think you'll have a tradeable bounce in the financials but longer term i would not be there. >> i'd be positive on the banks.

it's hard to go into the third quarter. i think the expectations have certainly been adjusted. you're going to have mildly weaker long growth people were look at net interest margins. i will say for all the heat the banks have taken, net interest margins were at six-year highs banks weren't getting credit for record profitability i don't think they'll be terrible number numbers. what i would be most worried about, i want to see what they're doing in terms of loan reserves has the world gotten that much worse? they know. i don't think it has, but that's the read on banks right now if we're at the crossroads of the economy. >> what are they saying about credit delinquencies. >> record lows because you don't do it until it starts raining. this is an area of the market that's basically not paid for the risk embraced by being there. just consider this, going into the year the consensus was big banks would have another $15 billion in revenue this year it's going to end up being only $2 billion

what cuts the other way is they're unleashing their buybacks they have approval from the fed so it's all going to be about cost cutting that really is what we've got to look for. >> and the sweet spot is housing. so it's the same type of thing where you have mortgage originations and refinancing how long does that last? how much of a boon is that going to be for the financials getting back to the positioning, if people are one side of the boat, this market has surprised a lot more people. >> to carter's point, though, a tweet was in the nine past quarters morgan stanley traded down on the day of earnings every single time, no matter what they did with their earnings good, bad, they traded lower what does that tell you then >> it tells me morgan stanley is probably in businesses where their margins have been getting cut every single quarter it's harder and harder for morgan stanley and goldman sachs to make money. i think that's what you're seeing but in terms of citi and

jpmorgan, the reason i think citi is interesting is because it vas lacillatvacillates 1.1 times tangible book is sort of where it's traded that's a $75 stock go back to this time last year and that's where it topped out at which is what i think will happen tomorrow. jpmorgan, everybody says is the best bank, they are, but are rewarded in terms of valuation at a certain point that just becomes too expensive in my opinion. >> and jpmorgan -- and carter and i have had a spat about this i can say not that bad of a chart. it's outperformed the s&p a little bit the last two years even though it's not representative of all of them. so guys talking about morgan stanley, goldman sachs, the asset managers, it's as much morgan stanley as anybody. asset managers are seeing massive compression so i don't think you'll see great numbers out of morgan stanley. the flip side of all of this on

the capital market side with record low rates again, you saw a lot of folks rushing to refinance in the corporate bond market and issuance bond market. i think you'll see pretty good momentum into the fourth quarter and they'll guide to that. steve talked about housing all very good for a mortgage business that was largely dead in the first half of the year when rates were going a lot higher i don't think it's a terrible story, i just don't think it's an extraordinary story. >> we had inversion of the yield curve until basically a week ago. how do you think that manifests itself in the earnings >> that's not yet sort of a case for good or bad. i think you have to say this the objective all the time is to try to find something that's about to get exciting, break out or break down, get long or get shoat. it belies that sometimes things are fallow >> i love that word. >> banks are probably not going to collapse. >> can we define fallow? >> am i a fellow

>> you're a good fellow. >> why can't it be that -- not everything is directional all the time sometimes things are just where they belong and banks are kind of in that spot. >> by the way, carter's tie -- >> autumnal. that's what you about this particular tie every single time carter weighs it. >> he doesn't wear it all the time he happens to be wearing it on a day that feels like fall to tie a ribbon on this. >> i've got a chance to do that. it's fall earnings season. it's about time we got into bottom up. all we do is talk about trade wars and the top down, all we do is talk about the fed. let's getat it carter's tie tells us it's time for fourth quarter guidance as we get into third quarter or the fall >> and people are tremendously negative on all of those fronts on the macro so this might be a good respite to start looking for fundamentals -- >> lucky tie. >> -- and get thick and get deep if they surprise, which i think they will, as a whole, earnings,

that is, i think the market can drift higher. >> it doesn't hurt that estimates have been coming down tuck particularly for financials going into the season. >> so you might have a, watch this,crop rotation >> wow >> you might have, but again i think it's going to be short-lived. citi to 76, maybe jpmorgan to 120. >> do you go best in class, which is full perhaps valuation, or do you double back and find a dud like wells fargo that's been lagging and play it for catch-up both techniques are valid. >> i don't think wells fargo is a name that you'll see any time soon i think there's still lack of trust. i think there's still a lot of work to do there, but i think the other side of jpmorgan historically in the last five years has been citibank in terms of the quality i think citibank, you really have a valuation argument. you have a fair amount of leverage in some global businesses they're one of the first banks to really sell off in the first

quarter based upon what we were seeing around the world. if you think a lot of people talk about stabilization i go back to macro but if you think pmis have started to stabilize, citibank over jpmorgan is a better trade. >> carter, why don't you head over to the plasma. >> citi is going to come out as best pick except for one which i think is fantastic here we go, the index, 24 stocks, total market cap 1.5 trillion the top four names of 68% of the index. here they are. it's the who's who and all of them are reporting this week. let's look at them one at a time the reference point i'm using is the peak for globalic wim iequin 2014 my hunch is jpmorgan tries to break out and it's just stuck. here is a fallow circumstance

and i think it's not interesting. not bad, not good, just belongs there. bank of america has never quite gotten to the high and that's the opportunity, a little catch-up potential with jpmorgan next of course is citi which has -- i'm sorry, wells, which is is this so bad it's good? hold this thought. i don't think it's so bad it's good because it never got all the way down to its 2016 low so not so interested here. citibank is the one with bank of america, sort of these two which i think will ultimately make a run for their highs and play catchup with jpmorgan. but then look at the worst of all. this one i do believe is so bad it's good. state street is right at this low and it is held three times it held again. look at the day-to-day chart and look at this trendi line. it has literally failed at this line over and over and over and over, and guess what it just did? it just broke out.

that's a major development it's a head-and-shoulders bottom it's a favorite so bad it's good just to juxtapose it against, look at the bifurcation with best in class, obviously different as a custody bank. i think this one and citi are the ones to be most aggressive with on the long side. >> what carter was effectively doing there was a game of would you rather >> is he allowed to do that, mel? >> he just did of course he's allowed. >> he's a fellow. >> maybe we should continue the game. >> so i'll play the would you rather i'll go all day long with this. >> really a whole show on state street or jpmorgan >> i would rather not do a whole show. >> my would you rather, now, the double bottom he's talking about, that goes back to july 2016 so the duration is such that this is a meaningful double bottom so again $51ish.

state street looks fascinating at these levels. so playing the game correctly, i would rather state street over jpmorgan. >> i would fade that and trade bank of america. >> i like citi but if you gave you money center back, would you rather bank of america, because i think we've talked about citi and jp, of all the big money center banks, i think they have the most ability to cut costs. it may not be this good for a long time. they are cutting costs and offsetting a lot of the weakness we're seeing their capital give-back program may be more aggressive than anybody's and that's why we're seeing institutions run into the big banks. >> what game do you want to play apparently it's a free for all here. >> i'm going pick wells fargo, pick the laggard i'm going to pick the underperformer >> you crave wells fargo. >> that one is ripe for a

positioning issue where you have everyone in the bear camp waiting for this one to recover. many people think it will never recover. i think it's worth a couple of percentage points to the upside after they report. >> that's like a quasi pick your poison game which we haven't created the graphics for yet. >> a skull and crossbones. >> pick your poison. >> yes especially as we go into the halloween season. >> what's the game with the bird that doesn't make sense? >> that's trade it or fade it, i think. >> there's one of them that makes no sense they both sound the same. >> it's shop it or drop it a lot of them don't make sense, let's be honest. speaking of the banks, we're going to hear from wells fargo cfo tomorrow at 3:00 p.m. eastern time here on cnbc. racing higher, tesla bulls putting the pedal to the metal. later, crisis management boeing announcing major changes

to its board is it too little too late? we're live from metis square much more "fast money" right after this ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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welcome back to "fast money. " tesla topping the tape today it surged 4% on the report china will require all ride-sharing vehicles to be electric. this comes as the factory in china comes to completion. there's a 10% tax credit from the chinese government. meanwhile tesla will report earnings next wednesday. they missed delivery targets for the third quarter, so how should investors be preparing for this tape are you still short, tim >> still short i think the cash flow every is really what matters most model 3 is supposed to be the every man and woman's car, it's supposed to be affordable, supposed to the $35,000. it seems that's not something they can do. they have never been able to produce this comfortably and profitably and the s and some of the cash cows, we've seen demand year over year come down dramatically i don't think tesla is the savior for china at a time when i think china is

looking to establish their own players in tech land, i don't think they're going give away the farm to tesla. i would argue at a time when we're having a major stand-off with china on technology and the 21st century, i don't think they're going to be backing tesla in a way that meets demand in china. >> i agree with you. i agree that china probably has its own interests in perpetuating and helping its homegrown industry but at the same time tesla is one of the few companies let into the country without a joint venture. it has a giga factory in shanghai and didn't have to partner with anybody for it. that's extraordinary letting tesla in. >> and china has done a good job of letting people in who they wanted to help build an industry and then show them to the door or at least make it be under china's terms. i'm sure that's what's going on. >> they have a tax credit going away here and showing up in

china. at the end of the year they're done in the united states. tesla is above its 50, its 100 and 200-day moving average right now so i think it's about good news and positioning in this one as well. >> the question is how much of what might be coming that's better is already priced in? we had that june 3rd low at 176 trading at 250 we're 45% off the low. at this point i think you fade it. >> i agree with carter steve makes a great point. that's what tesla has going for it is 36 million shares or so of short interests and people are covering october 3rd this stock looked like it was going down below $200 the stock was down 6%. it got a lifeline the last couple of days, that's great but october 23rd if this stock continues to levitate, i think you get out. if you're aggressive like tim, i think you could play it from the short side. >> would you play it from the short side >> if you had to be directional, i'd rather be short than long. >> what would cause you to re-evaluate your short

>> they have to have sustain the business and not caring about profitability, deliveries, corporate governance this is a structural short this is a company that i think has significant issues in terms of their ability to do what they said they were doing it's not about the technology. it's a beautiful car, by the way. elon musk is somebody that's done a lot of great things for this country i still have major issues with the governance, disclosure and level of transparency around this company. >> i'm predisposed to read the "vanity fair." i long the long form articles. i take that az compliment and i know it's notment to be. there was a very interesting piece about mr. musk and what's going on if you read that, you're saying not only this is a $200 stock, it's probably closer to a $100 stock. but i digress. i think tim's right. i think october 23rd you take profits. >> the stock is up 20% in two

months, so it takes the heart of a lot of people. then it can drop another 20% so there's enough room for everyone to be right i get the point of selling it, but the problem is a stock like this gains momentum and looks like it's building a quasi base right around these levels so i'll take the other side of carter because it's a trading show forced to pick, i'd rather be a buyer or seller. >> trade it. >> the game starts to creep up on me. >> it can be very confusing. >> i still think there's a closing point, maybe this won't be the closing point i don't think the stock price reflects anything. i don't think it reflects fundamentals, the balance sheet or true demand i think if they were to find themselves in -- i think we've already started the restructuring. but this stock could have major, major issues and suddenly you wake up and see it on the tape and it's a $200 stock. i think that's the way it trades. here's what's coming up next

>> streaming higher. netflix shares jumping despite a string of price target cuts. we'll find out what's next for this stock. first, crisis management boeing making big changes to its board. but is it too little tooat we'll debate it when "fast money" returns

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welcome back big changes at boeing, the board stripping the chairman of his title. this as boeing works to return its grounded 737 max planes to

the sky. let's get to phil lebeau in chicago with the details. >> reporter: hey, melissa. this decision was made on friday today the market didn't have a whole lot of reaction to this. the new nonexecutive chairman i should point out is a long-time director, david calhoun, who has been on the boeing board for about a decade he joined it back in 2009. ba blackstone managing director he's also on the board of caterpillar and has vast experience with large industrial companies. spent 26 years at ge at one point he was running the ge aircraft engine division. what's he doing at boeing now that he's the nonexecutive chairman he said i'm going to be focusing on the oversight of safety that's the big push at boeing right now. they made a number of changes that have already been jiend to increase and change the culture at boeing, which then brings up the question what's dennis mullenberg doing now that he's

strictly ceo it's all about the max they have said and they maintain it will be recertified and back in service this quarter that means they have ten weeks to enclosure a number of hurdles with the regulators to get this recertified. don't forget october 30th he'll be on capitol hill there will be a congressional hearing. you can bet there's a lot of questions about the culture at boeing and whether or not safety has been sacrificed in the rush to increase production, to push out the max. as you look at shares of boeing, as i mentioned, the stock didn't do a lot, it sold off a little bit but there was not a lot of movement on this announcement where they are splitting the ceo and chairman jobs. >> do you think, phil, that if dennis doesn't get the max back up in the skies by the end of the fourth quarter that calhoun will be named ceo? >> i think it might be a little soon to say that, melissa, and whether or not it's david calhoun or somebody else i think they're very reluctant

to change the leadership, the day-to-day leadership of dennis mullenberg kevin mcallister is at boeing commercial airplanes, in the midst of everything going on right now. would that advance the cause and make them get the max back up and get the production ramped up in 2020 any faster the feeling that i'm getting from the company is, no, they don't believe that's the case. now, it's a separate question and i know you alluded to this earlier today. what does this mean for dennis mullenberg's future six months from now that's an entirely separate question but i don't get the feeling that they want to make a wholesale change in leadership at this point. >> right fim, thank you . our next guest says boeing move is too little too late. he wrote an op-ed calling for mullenberg to step down completely let's bring in ernie arvai

do you think this was the precursor to dennis being booted and somebody else taking over? >> i think it may be it makes the job easier, splitting the chairmanship, from the ceo, which most companies do anyway from the standpoint of governance, so i think that's probably long overdue at boeing. but it also makes it easier for calhoun and the board at some point, should the max not come back on a timely basis, to make that decision down the road. i think right now the focus of the company and certainly the focus of kevin mcallister, ceo at bca, is to work with their customers during this crisis mullenberg has become point man for the company on the issue so it's his baby >> you wrote before, and i believe this was at least a couple months ago that you thought mullenberg should step

down why is that and are we at a point in time with the recertification of the max where it wouldn't actually be good for him to step down at this point >> it may not be the optimal timing for him to step down. but the question is how hands on is he in the leadership of the project to bring the max back. as a ceo of the holding -- of the larger company, the day-to-day folks are in seattle with the engineering and he may be involved at some of the high level lobbying with the faa and others but i don't think he's crucial to the day-to-day recertification of the max what he is crucial for is strategy and if we look at the future programs at boeing, we've got three major programs that are currently under way for projects, four with the tanker and the fifth is possibly the new aircraft

the 737 we know is having difficulties, both with the backs and with the pickle forks on the ng models the 787 while they had all of the early problems with that airplane, seemed to get them straightened out except for quality. airlines are still complaining about the quality of the product that's coming out of one of the plants the 777-x has been delayed the 767 tanker, which is used by kc-46 by the air force is not performing well and not meeting specifications and currently isn't carrying passengers or cargo. and the new middle market airplane is delayed again pending the decision to move forward, pending all the problems with the max. if you look at five products for the company, all five have problems right now that's not a great way to set your strategy for the future.

>> earn >> ernie, it's guy does this speak to bigger problems at boeing and are you surprised it's lasted as long as it has >> i'm not surprised when this first happened, we predicted second quarter of 2020 for return to service given the nature of the problems, which went just beyond the mcas system to the flight control system as well and giving that as an integrated whole from a certification standpoint, which the faa really dropped the ball on the first time going around there's some allegations that boeing hid things from the faa i'm sure we'll see that later once federal investigations are complete but clearly it's a little more serious an issue given the nature of the airplane, which is a hybrid of old technologies dating back to 1967 when the first models were done to today's technologies in some of the areas. we've got fly by wire on the

airplane, we've got a fly by wire spoiler system but many of the other controls are mechanical so we've got a hybrid of new and old in the airplane. and the avionics suite is a little bit old it looks nice on the outside, but on the inside it's last generation technology. so it's a mix. >> ernie, thanks for phoning in. we appreciate your insights. >> my pleasure. >> ernie arvai for all of those problems that ernie says boeing has, the stock is only down 16% from its highs. >> it's pretty extraordinary therefore, the bears might say why do you need to run in here i think if you get to the second quarter, the street will downgrade the stock even more. you also had 787 deliveries which i think expect end this quarter are probably going to be minus five or six or seven planes in terms of what they did, they had to do something here stripping the guy of the

chairmanship and keeping him in the ceo chair doesn't bother me at all this stock has been a three-bagger in the last three years. before this tratragedy, and the are tragedies. if they were keeping anything from the faa, they deserve major repercussions. >> it does sound like that it's a two-step process, that he's eventually going to be out of the company. it's almost as if they want to see if he can get the max back in the air if not, they have cover to actually fire him. but the stock actually has support around the 200-day moving average which is 368 so if you did want to take a stab at it, that's what you use as your exit. >> if you didn't know the news, this stock in q1 to '16 to q1 of '19, 65% a year for a three-year period so it's resting. it got ahead of itself.

>> it's resting but not fallow. >> it's dormant. >> it's dormant versus fallow. >> and soon to come to life. >> can i mention one thing. >> one last thing. >> today is columbus day. >> it is. >> so probably a lot of college students watching and they heard carter say kegger. i want them to understand the kegger that he's talking about is much different than the ones -- >> or he could have been talking about that one. >> or the shocks you used to have on your camaro, i think those were kragers. streaming higher, netflix shares getting a pop we will tell you how wall street analysts are setting up for this week's earnings. and the one luxury retail stock getting sacked today because of handbags. we'll bring you that name. stick with us, "fast money" will be back right after this - at southern new hampshire university,

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can it reverse the decline in u.s. subscribers that we saw last quarter, its first decline we've seen in years. can it rev up overall growth and what will the flood of new streaming services mean for this company? the company did give up its gains from earlier this year the stock is down about 23% over the past three months alone and there were three analysts' notes published today. one from rbc with a $450 price target saying that the company's guidance which adds up to 7 million subscribers seems reasonable with modest downside risk we believe that netflix has achieved a level of sustainable scale, growth and profitability that isn't currently reflected in the stock price now, raymond james reiterated its strong buy, but did trim its price target from $450 to $415 to reflect what they called, quote, near term noise from competitor launches.

the analyst said positively the content library is improving, citing "the irishman." morgan stanley also sliced its price target to $400 citing a conservative approach to long-term subscriber and pricing growth plus updated currency headwinds. morgan stanley writing the risk is that netflix lacks the dant franchises to prevent consumers from hopping in and out of the service. it's not just subscriber numbers for this quarter, but what kind of guidance the ceo gives for the fourth quarter when we'll have the launch of both disney plus and apple tv plus guys, back over to you. >> thank you, julia boorstin in l.a. with the latest on netflix. netflix has to meet the subscribe erp numbr numbers. >> 100%.

>> they have to. >> when reed hastings talked about the competition, that scared a lot of people and the stock acted in kind. i know i'm wrong a lot, but this one we got right we said it's going to trade probably down to 250 if it holds, you buy it. it traded down to 252 and it's bounced. i think in earnings people will chase so i think the stock goes higher the came thing happened with roku we said it would trade down to 100, hold, bounce. that stock is up another 20% from those lows. i think you flushed a lot of people out now you understand about competition and a whole new series of people will chase to the upside. >> what does that chart look like to you? >> as guy cited, you've had a bounce to some extent. if it is better than people are fearing, some of the potential has been exploited already that's the nature -- >> it almost sounds fallow. >> well, this is more dynamic, up and down, up and down. >> i think you don't know what fallow means. >> i have no idea what fallow

means. i don't read harry potter. but i think with netflix, how about international subs i think it's even more important. when analysts are doing their projections, what are they doing in terms of price increases and holding on to 15.99? we're also talking about subs. so at a time when i don't think the market is rewarding stocks that aren't profitable, i don't know why netflix gets a pass. >> it's half the story is the competition. the other half is that valuation. we've had to take a long, hard look at value versus growth. now you're really starting to look at what you can buy you can buy apple, you can buy disney by the way, disney's chart looks terrible it's rolling over. it's finally over that 130 mark. you would have to be above 130 to rebuy disney. in this one you have to be above the 50-day at netflix and it's at 288

so we're close, but i don't think it's buyable for multiple reasons, not just the competition. >> we have been talking about netflix basically all day. i was talking on "squawk on the street" saying with all this competition, its ability to raise price is much more limited than in the past there were some comments on twitter which i thought were interesting. there has always been competition with netflix before it was blockbuster and before it was red box, it had competitors before and still managed to triumph why is it different now? >> i don't think we had real competitors in there with their own streaming services with the offerings out there. it's not just disney, it's hbo max, it's everybody. and in terms that people are finally -- the cost of content is coming home to roost. these guys have had to pay an enormous amount of money and still not proving to be profitable yes, the competition was there but red box as proven wasn't really competition i think disney is real competition. although i'm not counting apple in there, when you have every other major company with cash

flow in this space, why do they get the lion's share i don't think so. >> quickly, what changed this time is the fact that reed hastings was very dismissive of that competition years ago he actually acknowledged it this time it's that old thing don't shoot until you see the whites of their eyes >> yes. >> that's what happened the last quarter or so with mr. hastings. coming up, we've got two big calls with the group today we'll tell you what that says about the state ofonme csur. johnson and jaohnson will report tomorrow. much more "fast money" after this r. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein bars. try lemon cake. as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech.

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welcome back to "fast money. nike racing higher after an upgrade from bank of america merrill lynch. the firm upgrading it to neutral from underperform boosting the price target to $95 a share. b of a believes nike will work more aggressively to make it accessible to everyone across the globe. nike hitting another all-time high today how far can nike run from here steve, what do you say >> i don't like nike for various reasons but you can't deny the chart. the chart is amazing it's up close to 30% and looks likes nothing is getting in the way. the way the stock recovered

originally was the recovery in north america. then it became an international story and it's always been both. they seem to be hitting on every cylinder i'm waiting for when under armour, the underperformer, starts to perform. it seems like i'm turning blue in the face waiting for that day. >> do you think nike will be stung by what's going on in china? >> if anyone has been resilient, it's been nike, right? they're doing it with higher asps and also with a wholesaling business that seems to be very strong so it's another one of these arguments for why the multiple can go higher along with the stock. it traits in the stratosphere relative to itself at this point. but i think you have to wonder whether they deserve this type of an upgrade in multiple based on their ability to control both the wholesale market, the dtc market, and they have a higher priced product. >> this upgrade, they were at underperform for a long time, to a neutral now. >> the street has been behind it

all year to start the year, the consensus price target was $72 here we are at $94 so people are moving up their targets after the fact >> i think it will continue to go higher. i think valuation has been a concern but it's been a concern for a long time. i think it trades 28 times but the stock had trouble a number of times, finally broke through. maybe we'll backfill back to 90, but if dan nathan were here -- >> he was on "the closing bell" in the market zone today. >> when dan is on the mark zone. >> dan's market zone. >> with the dnz. you like what i did? he would say stocks that trade 92 go to 100 he's probably right but i think there's further upside in nke. >> i asked about china because i read the stat about the athletic retailer in china. the top performer in the asia pacific index for the year the top performer. >> it's also a company that i

think has seen -- the delta on their growth relative to other players has been pretty dominant there's no question that the domestic consumption story in china, period, i know we stare at manufacturing but china is successfully slowly transitioning this economy so i think right now, though, nike is a global brand it has cache, athleisure, footwear, innovation i think it's hot and i would stay there. one retailer was left in tatters. tapestry is down 3% on a downgrade from uba, citing the resale market as a particular concern saying consumers increasingly have the option to purchase a new coach bag for $400 or a used european luxury brand for the same price we think many shoppers are opting for the latter choice >> guy, what are you doing >> i'll tell you exactly what i'm doing. >> i read that and i thought of you, guy >> no. you go to the real real. i don't want to give a plug to

real real but why buy some crazy chanel bag for bust-out retail. >> or why buy a brand new coach bag for $400. >> who's paying $400 for a coach bag? i know i'm not if i'm going for a coach bag, i'm going for probably a $100 bag. but that's part of the issue i think coach has been raising the prices and to compete on that level i don't think they will. >> there's certain brands that have that problem. coach is one of them, kate spade is another the price points are a little too high to be called something that's more affordable but not enough cache to be considered luxury so that makes the competition these used items on sites. >> carter, you come hope with a coach bag or you come home with a real real -- >> the good news is i don't come home with bags. >> carter comes home with nothing. >> if your lovely wife was going to get a gift, which would you

rather >> you'd rather pick the one she's going to like more and typically that's the one that costs a little more. >> in terms of tapestry, they report i think november 5th or thereabouts. look, the stock has bounced from $20 to current levels, obviously down today down today i think you've

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go to xfinity.com/moving to get started. welcome back big bank earnings are tomorrow's marquee event but there are other names to keep on your radar including johnson & johnson. they have had a tumultuous year holding on to games of a percent and they are betting the stock is about to lose its grip.

mike, what are you looking at? >> they did trade above average. to put things in perspective, 22,000 put contracts traded versus 13,000 or so on average the options market is implying a move of 2.5% on earnings that may not sound like much compared to a lot of other stocks but in johnson anl zuson johnson's case it usually doesn't move a great deal. the most active options contracts were the october 1 puts by the close, more than 1,000 contracts are betting johnson & johnson will fall below the strike price and that will put it below 1.20 and that's in line with the move expectation that the options market is implying but the bets are predominantly that it's going to be lower coming out of earnings. >> mike, thanks for that i believe like johnson & johnson

has become a battleground stock. i think we had jpmorgan saying $20 billion is priced in in terms of litigation risk for opioids, for talc, for everything under the sun we had bernstein come out upgrading the stock saying that it's historically cheap compared to itself. >> i like j & j here and i like that call, therefore so when you think about the litigation risks in opioids, i would acknowledge, i think this is a very emotional issue and it should be around our country this is one of the biggest drug companies in the world although the limitation of this i think is probably priced in, i think it's an overhang i would own this stock for the long haul. when you look at their pharma business, they have a higher growth rate than the other big cap pharma, then they have medical devices. it's a diversified company i like it. >> so everything he said is true except the emotion part of it. it traded on 1.21in december i think that's probably where

it's headed now. >> yeah, i think it looks like it wants to go lower here. i need a little bit of a buffer. i need 1.33. i think if it breaks down and gets to guy's level sooner rather than level. >> would we dare try fallow or boring or dull yet again >> there's a time we need fallow and this may be it. >> do you think it's fallow? >> it's just doing nothing sometimes assets are fairly priced. >> you're tie is starting to get that way. >> no, no, this is very dynamic. we want to go straight to the white house. we have treasury secretary steven mnuchin and vice president mike pence let's listen in. >> has expressed his grave concern about the loss of civilian lives and the impact and the destabilizing impact of the turkish military invasion in se syria is having in the region.

we had a meeting and recommendations were made to the president. i'll recognize the treasury secretary that will detail punishing sanctions that have been placed on turkey. the president also today was very active engaging with leaders in the region. first the telephone call with kurdish general mozlum where he received a report about the circumstances on the ground. syrian defense forces have been a strong ally of the united states of america. the president was very, very interested in hearing from general mozlum about the status of forces on the ground. the general reported to him that at this point turkish forces had not gone beyond the 30-mile buffer zone but general mozlum expressed particular concern

about the city of kobani and asked the president to raise that issue directly with president erdogan and the turkish government as a great concern of kurdish forces. the president after that call spoke to president erdogan president erdogan reached out and requested the call president trump communicated to him very clearly that the united states of america wants turkey to stop th 5:00.

"mad money" with jim cramer starts 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 save 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. every night i come out for two big reasons the first is obviously i like the attention but the second andor