fact that not many people were positioned for this market to take off the way it has. i also think negative earnings responses have not really bled over to others i'm seeing facebook bid slightly higher on alphabet's miss today. if that pattern stays intact, it's probably decent for the market. >> we are out of time. thanks for watching that does for it "closing bell. live from the nasdaq market site overlooking new york city's times square, this is "fast money. i'm melissa lee. the s&p 500 closing at a fresh all-time high, boofsted by the promise of china trade progress and strong earnings. shares are down by more than 1%. we've got full team coverage gene munster is in minneapolis to give us his take on the quarter but we kick things off with josh lipton live in san francisco with details on the results. >> i just spoke to aaron kessler

from raymond james to get his quick take on the street google properties revenue, thaep that's the properties the company owns and operates, 19% to $28.7 billion that was above what kessler was looking for. operating expenses were higherx. ruth porat said there were some unusual items and pointed out $545 million expense related to a legal settlement in france also called out some unrealized losses tied to certain venture investments, although she declined to say which ones switching gears a bit, i asked her about competition. we just heard from amazon. their ad business is growing very strongly. i asked her how much of a threat she thought amazon was she thought the online ad market continues to grow and her point is it doesn't have to be one

winner, it's not winner take all. i asked her about wamo as well the team at morgan stanley cut their valuation by 40% in part because they said the industry is moving toward commercialization slower than expected i asked ruth porat whether commercialization of the self-driving cars, is it on track with your internal expectations she seemed to suggest to me, listen, we're going to be prudent, responsible and cautious that it's a long-term opportunity which they're going to continue to shoot for remain committed, she said, to providing the best experience for users. and google certainly under increasing regulatory threat as well as lawmakers. i asked her specifically about senator warren, democratic presidential candidate, has called for breaking up google. has said google like others is just too big, they stifle innovation and competition i asked ruth what does she think senator warren gets wrong. she says, listen, we have consistently shown that our business is designed to serve customers. we expand choice, we lower price

and create competition guys, back to you. >> josh, thank you josh lipton in san francisco so we've got the stock down more than 1%. keep in mind in today's session the stock hit a record high. dan, what did you make of this quarter. >> i think the one-off items is what the ceo spoke to. you know, one point here is obviously amazon last week, the headline looked really bad that stock was trading down 7% in the after market. the fact that this thing is basically unchanged, you know, the growth in their own properties is really good. here's a company where i know tim will speak to the valuation where you see a downshift in eps growth year over year and expected in 2020 but you're seeing sales growth at 20% on a pe 2 growth it's going to start to look expensive. the last time we saw it nearing 2 was 2013 the stock had a down year in 2014 so it might be getting rich on some of these metrics, especially when you think about

regulatory and competition in the cloud and some of these other areas. >> i would want to bring up that i could see this at roughly 18.5 times. i think it's too cheap for all the drivers they have. i agree with what you're saying and there's risks to the company. by the way, love ruth porat. i think she's bringing more transparency when she talks about some of the sloppiness of the quarter modeling out, she's someone that you listen to and don't take this as a smoke screen i think she's bringing a lot of transparency as we get more into the capital market side of what they do, i think you listen to that but again if you look at google sites, around 20% i think is what you want to see if we're looking at the bottom line on google, this is not what we tended to look at in the past the fact this is an op ex heavy number doesn't bother me 26% off the june lows into earnings what do you want i think this is just a breath of -- >> and the operating expenses

are investments to get growth so you have to say, all right, this is one quarter where the company invested some money so their business model can continue to grow if you look at it, the thesis isn't broken on this look at their ad search revenues that is still up that thesis hasn't broken. other properties doing well. so if you can look past, and i think the market will look past this one quarter of investment then i think you see the stock break -- >> to dan's point it has already. it's only down 1%. still above all its moving averages you would think that the positioning going into this was extremely negative i think it's a buy for everything that these guys have said i'm unhappy that there was a miss though, but that's the only concern. >> what is the difference between google or alphabet, i could say, having an op ex heavy number and amazon. why is it okay they do this and

we look through it >> this is one quarter where i view amazon, there's going to be multiple quarters of investment. when bezos says we're going to invest for the next year, you can say it's not going to look like it used to the market will look past it. >> i don't know why google is up 2.5% today i think one of the reasons why is there's some secret discussion about investing in fulfillment and logistics and getting into a broader business model. these are some headlines that were out there in addition to the fitbit story i don't think that's why people get excited on a fitbit acquisition. so they could be investing into broader ways to get involved in some of the same businesses as sam se amaz amazon. >> i think positioning was the issue. people were overly negative on antitrust. >> let's look at microsoft,

amazon, google, these are all these hovering around $1 trillion in market cap microsoft broke out today but not convincingly it has been in a three, four-month range here. amazon is stuck in the mud never got back to its prior highs. here you are, it's very interesting to me, i think a lot of investors werelooking to play for that breakout in alphabet to new all-time highs two quarters ago it traded 1300 and went all the way down to the level steve was talking about in june that was a 20% peak-to-trough decline. >> is it too early for a would you rather >> no, no, no. >> i feel like dan is setting up would you rather here. >> the s&p 500 made a new all-time high. microsoft and apple have obviously run into this thing. microsoft not convincingly apple later this week we'll have an interesting test. >> the market is changing its stripes. people are underinvested in cyclicals.

you bought your maga complex because it was revenue growth and that was the only place to find growth in a slow growth environment. now that we get trade headlines and some of this uncertainty out of the way, people are starting to bet that, all right, we're going to have economic growth. whether we're right or not i don't know. >> let's bring in fast money friend gene munster. gene, great to see you again. >> hi, melissa. >> what did you make of this quarter? >> solid quarter another reminder that google is the oxygen of the internet 22% revenue growth compares to 22% in the previous quarter. this is adjusting for fx surprisingly they have grown their revenue in the 20% to 24% range for 17 quarters. if you look at facebook, 17 quarters ago it was growing in the mid-50% and now it's growing at 25% so that is the definition. google is the definition of defying the law of large numbers. i think that theme of being the

oxygen of the internet plays through where the stock is at today. effectively we're close to all-time highs this is a $900 billion market cap. i think that it was a solid quarter. one other piece that jumped out at me was the paid click number. so that is the -- excuse me, the clicks, was up 18%, a slight deceleration from the mid-20% last quarter but the cost per click or what they get paid each click was down 2%. it was down 11% in the previous quarter. if they ever get that intersection where paid clicks are growing and they're growing profitability or growing price per click year over year, if they can get that, i think you'll see nirvana on the stock. >> in terms of other platforms, gene, how does alphabet keep up that growth streak at that magnitude if the areas for mo t

monetization could be capped by regulators and i'm talking about youtube primarily. >> that's the big question is the regulatory piece they have a standard response to, which is they have dealt with regulatory environments in the past and continued to navigate them. ultimately that will weigh on the multiple i think google is a great story to own we'll see what happens with the earnings call tonight. ultimately it's a great story to own. what you said on the regulatory environment, we have quite a supercharged political environment that's going to go -- the easiest target here is google we talk about youtube, maps and sev search and how they tie those together google has over 40 products, consumer-facing products they tie together ultimately i think we're a long way away from getting to the bottom of that i think that will continue to needle at the stock's multiple over the next year.

>> gene, it's tim. can we talk about cloud and how these guys have nudged themselves right in the middle of amazon and microsoft? certainly the multi-elemental part of the platform that has people and a very sticky user base involved and what that does to your multiple and talk about a blended multiple here as well. >> their cloud business, they don't break it out, but it's in the non-ad revenue it was probably up 35% year over year that is effectively a slight deceleration from last quarter for google cloud it was the exact same growth google cloud had in terms of the concept of some of the parts versus the total, when i think about the google story, my thought on large cap has been evolving toward this. put it altogether and see what that ultimately drives in the case of revenue growth

and so let me try to just put one final piece to it. i think you can look at a story like google and think of this is the information oxygen of the internet and i think it should trade like a consumer staple company in the mid-20 range. i think you look at another company like apple and what they're doing around services and devices, i think that should also trade at that mid-coca-cola like multiple, in the high teens. so it's looking at it altogether i don't carve out -- i'm not answering your question and don't carve out google cloud. >> you did very well thank you. >> all right, gene, we'll check in with you a little later on as the conference call is getting under way. just last friday our chart master was eyeing google for a breakout to new highs. carter is back and is over at the plasma to tell us what to expect now. >> well, it looks like that breakout will be deferred by a day or two

the key number here, at least by my work, would be the following. on 1264.30. that's where the stock closed on friday if one oewned the stock and has done nothing today, we can see after plunging to 1230, it is trading at 1275. one is up from where one was just friday last week. in terms of the breakout, it's just going to be deferred. it's not going to break out tomorrow, but the key is these levels are deadly precise. often you have to con tetend wi prior high before exceeding it and i think google wils broke o. ultimately this one will as well in ts, and this speaks to the importance not of the charts that i'm showing to you but

charts in general, is it random that this high in july was 12 spot 91 and this is 12 spot 96 of course not. this is momentum if you break out, you break out in a big way one thing about a breakout, no one is unhappy unless you're short. so the setup is this the setup is this, the setup is this it all suggests while it is going to be deferred tomorrow, it is what's going to happen for google in terms of the market overall, just because it is a big day, this day here was the highest weekly rsi reading ever recorded in the history of the s&p. that includes 1929, 1987 nldandh dotcom peak in '07 every time we have come up against this line, we have

backed away. since that peak, stocks have underperformed cash, underperformed bonds and underperformed gold. we are right up against that level again and earnings are out of the way i don't see what will get us above the line i think once again we'll struggle right thereof. >> you know, carter should come on over. come on over, carter >> lots of questions for carter. >> thank you, will >> welcome >> will your view -- >> no treats nothing to eat >> no. >> we have a nut and fruit bag now. >> some super fruits for you. >> so in terms of your view on the s&p 500, will any of that change based on this deferred breakout of google or apple's earnings later on this week or any of the other big earnings -- >> there's lane potential and exploitation potential a stock sitting at a breakout juncture represents potential. if it breaks out, you've exploited some of that

potential. jpmorgan represented potential it has broken out. nike, it has broken out. apple, it has broken out, appeared others have not once they're out of the way in terms of earnings, what is the potential to press us to big new highs. it would have to be a further spike in cyclicals a lot of people are making that bet. or it would have to be other breakout candidates carrying the load as you go through the earnings period, there are fewer and fewer stocks in a position to break out because we've heard from so many of them so you get to that line and back away just as we've done repeatedly. >> carter, i can draw the similarities to the s&p over the same thing, sort of a tagalong to what melissa just said on google stock every time we got to a certain level, backed off. every time we got to a certain level in the s&p, backed off the charts are similar, not the same why one is more likely to break out than the other >> one is making new highs google is flat tops at a common

level so google made no progress the s&p is making slight new highs which draws capital in and makes it think it's okay again, if a risk asset is underperforming gold, cash and bonds for two years, that's the opportunity. the bear would say this is what a topping process is like. >> so to talk about the s&p, so, you know, here we are. that october 1st, 2018, high, we're 3.5% above that now. it's the end of october, 2019. you just mentioned incremental highs. all of those highs over the last year have been above that 2018 high does that set up very bullish to you? >> if you take the exact same day and look at the new york stock exchange and the russell 2000, transports and the banks, none has exceeded that high so you have that bifurcation and divergence with so much money in a few big names. for the most part they have done well now amazon is a little struggle, netflix a little bit of a struggle, so it's case by case

what we do know is if you take the biggest aggregate of all, the msci, $70 trillion twice the s&p is still well, well below where it was on that fateful friday january 26, 2018, almost two years ago. >> carter, thank you we'll see you a little later in the show. coming up, tanking after earnings we'll break down the highlights. plus one market bull is on watch for a pullback ahead of this week's fed decision we're liverom me ftis square in new york city. much more "fast money" after this

welcome back to "fast money. we've got an earnings alert on beyond meat falling hard in the after hours session. this is off the after-hours session lows let's get to leslie picker with more on this. >> that stock was down as much as 11% in the after market today. even as the company reported its first-ever quarter of net income, they also beat on the top and bottom lines and raised its full-year guidance but investors, you can see they're now down 7%. they're looking ahead to another big event tomorrow when beyond meat's lock-up expires

that will release 49 million shares or 81% of those outstanding to be eligible for sale in the market while not all investors will sell tomorrow, some traders are embracing the windfall of share supply that will be hitting the market it's something actually that executive chair seth goldman addressed on the call that's currently ongoing. while noting that he thinks the company is in good position long term >> this week also marks the end of the lock-up period related to our ipo which will permit the sale of pre-ipo shares by some of the longest standing supporters while we recognize short-term reactions to these milestones are often marked by heightened uncertainty, we believe that beyond meat is in a stronger position today than any other time in its history. it is positioned well to cap allies on the substantial opportunities in front of us and thank our pre-ipo investors. >> they are discussing the

various brand partnerships they have with brands like tim horton's and how long the test will last in various markets before broader rollout despite the recent pressure on beyond meat's stock, it still remains the top performing ipo of the year. but the newest public listing was virgin galactic whose stock began trading publicly today sir richard branson's space touring company listed, those shares rose initially but actually closed down a third of 1% today melissa. >> leslie, thank you leslie picker. so beyond meat, the ceo on the conference call talked about the relationship with mcdonald's and tim horton's, et cetera. so all these relationships he's very positive on yet, here we are. >> mcdonald's is a great partner. the question is is this a brand that mcdonald's has to have or is it a brand that mcdonald's will create their own version

of, because that's what mcdonald's likes to do they talk about tim horton's, inconsequential. they talk about their ability to meet demand. so there's some question if they can be set up. they have to increase their expenses that's something that would be concerning to people it shines a bright light on where valuations at some point just don't make sense. there wasn't any new news today in terms of the lock-up or illuminating anything. strategic partnerships are fine and exciting the company has done a great job. >> what was the 239 high was it a cult high was it about a social stock? we've all talked about it that it's not actually healthier for you. it's not about health, it's about a social conscious movement that we're making if it was about health or strictly fundamentals, i'd rather go with tyson, up 53% year to date >> i think social conscious is putting it nicely. fad. i would categorize this as a fad

stock. >> we've seen a lot of stock market manias. remember the 3-d printing stocks, remember wearables, fit about it and that stuff. we've seen those things and they defy gravity and go the other way too. on friday's show we were talking about this name in front of the lock-up and i made the point they sold 11 million shares and there was a secondary 3.75 at 1.60 i was incorrect saying the company would have sold shares that would have been brilliant but it was selling shareholders. when you think about this lock-up, you might have seen some people sell at those levels up at 160 and that's likely to sell somewhere after these results that looked pretty good. >> by the way, all those companies that you mentioned, it doesn't mean that they're not viable businesses or industries. >> of course not >> for more beyond meat head to cnbc.com here's what else is coming up on

"fast. lvmh's legendary deal-making ceo is at it again will he be able to put the sparkle back into tiffany's business later, on the one-year anniversary of the first 737 max crash, boeing's ceo is in the hot seat on capitol hill tuesday. we'll take a look at how options traders are betting 'll hedo all that and more when "fast money" continues excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.

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predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home. the s&p 500 seeing its first record high since july 26th. the milestone coming just a day before the fed meeting julian emmanuel is following the action julian, great to have you back. >> great to be here. >> you think the fed is going to

cut. you changed your minding >> we do, we do. look, if we figured something out over the last year, the fed does not like to disappoint the markets when the markets are so h heavily skewed and the odds on the board are over 90% of a 25-point basis rate cut. we think they'll take the opportunity to deliver what we call a hawkish cut we've cut three times. the economy is going to grow at 2%, give or take the jobs market is very strong let's wait and see, you know, how the three cuts filter in through the economy. we know these things work with a lag. and the stock market is at an all-time high. and we have potentially positive geopolitical catalysts the next several months it's a good time to hit the pause button. >> do you think that a hawkish cut -- won't that be just as bad as no cut and saying data dependent, we leave things open? >> if it's painted the right

way, not necessarily do we think the market could pull back if that message is delivered? absolutely but unlike the other pullbacks of the last couple years, we'd be buying the whole way down rather than letting the dust settle because basically the other thing that the fed is doing and doing quite well is controlling liquidity through the money market mechanism and letting the balance sheet expand don't call it qe, they don't want to call it qe but the fact is that the balance sheet expansion, if you look at the last two years with all these volatility spikes that we had and brushing up against 3,000 plus and not getting through, it's because the balance sheet has contracted they have gone sort of hand in hand and now we're approaching a time of greater liquidity. >> julian, i'm curious, where do you stand on this, quote unquote, midcycle adjustment it sounds like that you're leaning towards the first cut was a midcycle adjustment? >> well, they're not going to come out and say it specifically because the fact is, again,

though we do think there's going to be some sort of deal signed with china and we do think brexit will resolve favorly, th they may not so they're going to be in risk management mode but they'll step back and say we need deterioration or we need adverse developments to get more aggressive look, you may see more dissent you had two dissents last time maybe you'll see a third who knows. >> so you'd buy it all the way down because of the increased liquidity that the feddes putti -- fed is putting out there what's your target >> what we've sound all year -- >> you sound defensive. >> well, our year end 2019 target is 3000 we said if we were wrong it's because the market is going to blow through our target. we don't think it's necessarily going to occur this year, but looking out into the first half of next year, a number like 3250

is entirely possible that represents the average multiple on trailing earnings that we've seen over the last 30 years. let's remember, we've traded at a discounted multiple for the majority of the last couple years. even though interest rates are as low as they are. >> 3250 in the first half of the year >> entirely possible. >> julian, great to see you. i like how the fed says don't call it qe but it feels like every single strategist on the street is calling it qe. >> the same equation was made when they were tightening. that was basically shrinking the balance sheet was equivalent to raising rates. so this is the equivalent to cutting rates and that's why you have to be bullish the overall market. >> i just want to say one thing. the market trades horribly even at all-time highs. we are in a midcycle, rate-cutting cycle i'm saying it trades horribly year over year, up 3.5% given

all the accommodation and all the potential catalysts that people like you see. boeing's ceo dennis muilenburg is set to testify on the hill tomorrow. we'll tell you about the fate of the 737 max planes hanging in the balance. much more coming up. in the human brain, billions of neurons play in harmony.

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welcome back to "fast money. boeing's ceo dennis muilenburg will be before congress to tech on the 737 max crashes let's get to phil lebeau. >> tomorrow will not be a good day for dennis muilenburg. he'll get hammered for about two hours in front of the u.s. senate commerce committee. so the questions will touch on a wide variety of areas, but really the areas that people will be most focused on comes down to three things first of all, did boeing engineers and the culture mean that they were pushing to rush the max to market, in other words, cutting corners at the same time, the senators also want to find out if boeing was misleading regulators. maybe not as a company officially, but were the staff members who were working with the regulators for the faa, did they mislead them? and finally, what will be the tenor and tone of the comments from dennis muilenburg will he show contrition? he's already released his

opening testimony, his statement, if you will a lot of what we've seen is similar to what we've heard from dennis muilenburg as well as boeing in the past one quote in particular, dennis muilenburg says we understand the situation that's in front of us and we understand that as a company we need to change. he says we also know that we can and must do better we have been challenged and changed by these accidents we are improving as a company because of them. we will hear that time and again from dennis muilenburg tomorrow. remember, it is the one-year anniversary of the first 737 max crash, that was a lion air 737 max that crashed into the java sea off the coast of indonesia guys, what's interesting about all of this is, yeah, there's great theater involved here. we know that the senators will hammer boeing. but is there anything that we'll hear tomorrow from dennis muilenburg which changes the viewpoint that many people have about this company when it comes to the max they have lost the moral high grounding the last year.

they have said time and time again, we've done this, we've done this and other stories start to come out. >> do you get the feeling anybody on the hill will press for his resignation? >> i bet you somebody says it. i've got no sense somebody has said he shouldn't be ceo but i wouldn't be surprised if some senator says you've had two accidents, 436 people have died, why are you still running this company? >> a big day tomorrow for boeing where do you stand on boeing >> they haven't proven boeing is a at fault here. >> they have not proved that boeing is at fault >> that's right. have people proved that boeing is at fault with these deaths? >> do you think that the design contributed to the crashes >> i think you have a case where there's a software fix that people are concerned whether it should have come in time or not. maybe it should have, maybe it hasn't and it's obviously a horrible tragedy. i'm just saying if boeing was totally culpable, i think we'd be assessing this in a different

way right now. has the credibility of one company, which at one point was as bulletproof of an american company could possibly be, certainly has been if you look at where the company traded as a premium to the multiple, i don't think you expect that in the short to near term you've actually had them downgrade their 787 outlook next year they have not told you where the 737 is going to get turned on because they don't know and the company is at 340. that to me is a pretty good sign i think you have a case where boeing is actually going to weather this storm they have before. >> if muilenburg resigns, does boeing stock go up or down >> he's been there his whole career sadly, what he knew or didn't know, whatever, i think it's pretty clear, tim, that qa and a lot of stuff they were doing with the faa, it's pretty clear that boeing will bear a huge amount of responsibility for these two crashes and it ends -- well, it doesn't actually ending muilenburg is gone at some point

and it doesn't end there your question, mel, is whether the stock rallies. no, it doesn't rally there because the only person that -- they need to get somebody from outside the company to redo this whole thing. how many of these 737s are they making they're not selling them yet they have a huge pr problem here. >> if anything it's a production cut that's a significant issue for the company. you've got 50 modeled for the first quarter if they come back online so production cults are a big deal, no question about it right now i think the street has downgraded the stock dramatically. >> wells fargo, we haven't seen a big move from wells fargo until there was an outside ceo brought in john stumpf resigned two days after he testified in front of congress and tim sloan resigned two weeks after he testified in front of congress. >> yeah, but -- >> there could be a lot that happens. >> there still would be a lot that happens i think what these guys are getting at, there's still a lot

of uncertainty about what the cost is to boeing. we don't know that yeah, muilenburg might resign but it's going to be a long time until you get some clarity what's the liability that boeing has here i don't think anybody is going to be able -- >> nobody knows that, but you do know it's a duopoly. yes, there's a lot of green to cover. >> they have been here before. >> not here. >> not with fatal crashes. two facilities crashes >> they have been here with fatal crashes. >> i do believe price is truth watch the recent low of 324. if it breaks that, you get out of the position. >> boeing stock is down 11%. the options market expressing some optimism ahead of tomorrow's hearing mike is in san francisco with some of these details. mike, what are you seeing? >> yeah, i would actually refer to it as cautious optimism today we did see calls outpace puts by 2-1. that's not something we've been conventionally seeing in boeing

of late. it was the weekly calls, the 345s and 350s that were the most active 350s were number one and 345s were number two. those were trading about $1.60 so buyers hope the stock gets a bounce by at least the $1.60 that they paid why is this a cautious expression of optimism that's a small fraction of the current stock price and it's very short in terms of how long they go until expiration they ending on friday. >> mike khouw in san francisco for more options action, tune this in friday. don'got anywhere, "fast" is back in two minutes. ♪ ♪

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to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. boeing's ceo facing the heat in d.c., the fate of the 737 max jet. "squawk on the street" 10:00 a.m. eastern i know there are a lot of "fast money" fans who watch the show very religiously. just last week we were talking about a very bullish note put out by tom lee about the home builders which found they are in a seasonally strong period between october 20th and april 22nd or so and this has worked out of the past nine out of ten

years. well, chart master says he's seeing something very different in the charts. let's get back to carter at the plasma for more. carter >> well, take a look at the following. that is that same high that the s&p and all global equities had, that was a friday. it was the 26th of january what's remarkable, this was $46.11 and on friday we got to $46.10 we pivoted and we dropped hard, down a lot today before you can exceed a former high, you typically have to contending with co contend with it. that's why there's multiple tops before you break out but you almost never break out on the first approach so could one draw the lines like this and say yes but we've accomplished the price move on an additional basis, right back to that former high so could you draw the lines this way? sure you can there's a terminology for this

it's called a double top now, does it mean you go back to the lows nothing to do with that but you do in principal have some form of a give-back then i would point out that these little hash marks, every one of these red lines was yellow it was an unfilled gap and they have all been filled and there are five unfilled gaps in this spurt higher over the past four or five months ultimately i think we can fill some, if not all of those. this is a great setup. you have a reference point the prior high, you go short if it exceeds the high by 2% or 3%, walk away. but you also know what your price objective is, that you're coming down into the low 40s were we to fill the lowest most gap that would be a 13% decline in home builders of course it's rate driven we know what's happening with utilities and we know what in principal happens to home builders if rates rise and rates of late are on the rise

>> carter, thank you good to see you again. that was like a bonus carter, right? but where would you stand? tom lee or carter braxton worth? >> i traded -- >> you said that it worked like a charm. >> i traded tom lee's call last year and it did work like a charm. >> it all depends on time horizon. >> there were fits and starts last year. i just think playing for a move back to that 40 level makes total sense. last year when the ibtb sold off, it could get this quickly i'm saying to 40. >> i'm still long lenar. it's up 50% year to date i'm looking for a little higher than here but i do feel as if rates are going higher and they're probably going to turn at some point. rates are going to go higher this trade is faced with tremendous headwinds with rates. so it's been a tailwind. >> you're going to get out soon? >> if lennar starts to fade again, i will get out.

>> the 10-year is back up to 1.85 it doesn't mean it's going to be dramatic in the short to medium term the other thing i'm watching is payroll numbers. i think peak labor, those with the people buying the houses and making mortgage payments if any of this changes, the housing market is a different trajectory. >> i want everybody to get along. i think you can buy them both. >> man, make a stand this is "fast money. >> as of today i am short baunldbonds, which i think means rates are going higher and so you get the pullback and buy that pullback. coming up, we'll take a look at the cramer cam. jim is getting a pulse on the consumer with a breakout of three key stocks he's got that and much more coming up at the t oopf the hour much more "fast money" still ahead.

shares of alphabet off the lows let's get to josh lipton who was on the conference call. >> the top line came in above consensus driven by mobile search, youtube cloud. eps missed, way down by op ex.

some of the unusual items, which she called a noisy quarter take a listen. >> the increase in g & a year over year was primarily due to a $554 million charge from our previously announced legal settlement in france stock-based compensation totaled $2.6 billion head count was up 6,450 from the second quarter and consistent with prior kwquarters, the majority of new hires were engineers and product managers. >> as a company it's also spending to build out its cloud business and you saw analysts trying to press the ceo on that cloud business and get more backlog for that cloud business. he said at this point they'll provide that level in his words periodically, but suggesting that in his opinion momentum has been strong. he talked about partnerships with the mayo clinic and vmware.

he was asked about increasing regulatory scrutiny and whether it's impacting his ability to innovate but he made the case that overall his products and services with reduced prices and expand choice were the new -- perhaps he was referring to his cloud business where he knows he trails amazon and google >> for more reaction to the call let's get back to gene munster gene, what do you think are the highlights of the call so far? >> i think josh hit a lot of them i would also add that the youtube spend is going to be accelerated. youtube is spending $15 billion a year so add google to that mix. also this concept of ambient computing came up. this is the idea when you move throughout your day and have different devices and different services you use, it fits seamlessly together. i see an undercard developing related to a battle between apple and google around this

apple i think has the upper hand around privacy, but that was another piece that really jumped out at me. they also talked about quantum computing and ultimately building services that will -- quantum computing will build services that will not just answer questions but help us get things done. sounds very promising. one last thing, melissa, josh t popped out at me that we're going to hear a lot over the next several months and this is the idea of expand choice. i think that is kind of the foundational argument that google will use in this upcoming regulatory jungle that they're going to weed through. >> what's your grade on the quarter, gene? >> b this is a solid quarter. this is a company you want to own for five years, but there is no urgency to own more after tonight. >> gene, thank you stock is down 2% so far in the

after hours. what do you think happens? >> i think it's fine i think the stock ran into the quarter. i don't think the fundamental drivers were there for the sort > . reakout that you might exct>>up next, final trades. asa e company. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity. like 5g. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. ♪

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it's a live look at trick-or-treaters at the white house. having fun, right? i wonder what's in the basket. are they full-size candy bars or minis? >> they're big kids dressed up as the president and first lady. >> all right time for the final trade let's go around the horn i still want to know what he's giving out. >> tariffs i think they're a little early maybe i'm wrong. where it's maybe not too early is to get into emerging markets. the em is breaking back above those levels this is one of places that should perform if the market continues to run. >> not a huge fan of halloween but i am a huge fan of alphabet. >> i think guy is out because he's working on his costumes. >> i think he was handing out government contracts itb. i like carter's call there i think you sell it and maybe

look to buy it >> i know we called for this growth into value and it hasn't yet but wrk, west rock, i'll still there. >> we'll see you back tomorrow at 5:00. meantime "mad money" with jim cramer begins right now. my mise you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica my job is to educate and teach you so call me at 800-743-cnbc or tweet me at jim cramer. you want to know what is driving the market to new all-time highs. the dow gaining 133 points today an