6.5% since the all-time high the stock hit ahead of the last earnings remember last quarter the company announced a second charge no discover cover the fine and throes the ftc investigation. back to you. >> julia, thank you for that 'we're minder closing down 8 backups on the s&p pop nasdaq down 6 points. that does it for "closing bell." "fast money" begins right now. >> live from the nasdaq market site over looking new york city's times square this is "fast money. our trieders are pete naerjen. brian kelly pb dan nathan and guy adami. grub flub, shares melting more than 40% the desk will grab yap kins see if there is anything left. the highly anticipated decision day, jami bianca says the fed playing with fire. we discuss but we begin with boeing ceo dennis muilenburg grilled by lawmakers on capitol hill over the 737 max crashes straight to phil lebeau in d.c. with the

highlights. >> the senators blasted dennis muilenburg time and again on a wide variety of issues some accused boeing and the ceo of not being straight with them, outright lying in terms of questioning about the 737 max. others basically said to him, you're the ceo, how could you let this happen? >> you're the ceo. the buck stops with you. did you read this document and how did your team not put it in front of you, run in with their hair on fire saying we got a real problem here. >> those pilots never had a chance these loved ones never had a chance they were in flying coffins. >> i was walled walk before getting on a 737 max i would walk zbra there is no way -- just a few of the comments from senators asking dennis muilenburg and also offering their opinions in terms of the 737 max more dennis

muilenburg's time he said time and again, look safety is at the core of our mission. we are committed to making sure the max is safe when it returns to flight and that the company makes changes that are necessary to ensure it never happens again. as you look at shares of boeing, this stock came back a bit today. and people say well does that mean that dennis muilenburg did a good job on the hill no it means that investors look at this saying how much worse can it get what's the worst that can happen for boeing yeah, maybe this plane doesn't return to service by the end of the fourth quarter but it will and there is a bag log of planes i know you talked about this ats length i think the investors were rooking at that saying get past the headlines and the bad day for dennis mullen barbecue on the hill and focus on the all important 737 maxs >> that presumes that congress puts the blame on boeing and dennis muilenburg. and not the f.a. chl a which

might cause it to be grounded for longer or change certification processes. >> you're spot on. i think the pressure is on f.a.a. when they finally decide we have all the material we need from boeing for the recertification of the max, how long does it take for them to do this because they were embarrassed by what happened a year ago when the rest of the world grounded this plane while any repeatedly said, the data is not there. the data is not there. and now everything that's come out in the last year, i mean it's clear that the f.a.a. is going to have to show capitol hill, yes, we understand our role as a regulator is not just to rub are stamp this plane. >> i mean, this also assumes -- well regulators around the world i'm assuming watched in testimony as well. >> yeah. >> they can be tougher than the f.a. chl a in terms of getting the max recertificated >> and we'll soo that with europe they're not real far behind the f.a.a. basically said we're within weeks when the f.a. chl a signs off we're just a little

bit behind them. but china is the one to watch. and for all the reasons we talked about melissa, this goes beyond just the certification process in china there could be a political element of this involved as well. >> all right phil, thank you. phil lebeau. >> you bet. >> with the testimony. the tomorrow muilenburg returns to the house tomorrow. what phil said was interesting investors assuming the worst may be behind boeing do you agree. >> for today they did. i thought the stock was would trade abtest 321 that was the low on october 21st traded 324 on 15 million shares about four times normal volume for the short-term at least we have what we see owe say is a deeson tradeable bottom. but i'm hard pressed to believe given everything we heard that the headline risk doesn't still exist? and the f.a. chl a database -- for them to certificate this plane going forward. they have to go through things in the most rigorous way in the history of the agency. so again, i'm hard pressed to

believe that we're on the other side of the bad news flow. my take is rally should be sold. we go lower from here. >> yeah, i agree unfortunately, you know, the unknowns are not quantifiable here i think one of the senators made this point he said i would walk before getting on the plane that's an issue a lot of carriers have to deal with from a p.r. standpoint when he this he agree tiek the praens will customers want to fly on them we tone know this is a long time coming i look at estimates. sales last year, $101 billion expected to be $83 billion consensus has them up to 123 assuming all the planes being built are sold boeing may end upholding billions of dollars in the planes before the carriers by them again that's the point about china i guess. >> all right. >> the stock traded this which all year we've been in range between 320 and 380 let's call it. effectively what the investors do is get optimistic suppose to

be second quarter of the year it's coming oh out then september, pushed back, pushed back we're in the optimistic phase. i'm with everybody else here you get up to 360, 3807 somewhere in there, i'd be selling it because i think it's a long time. we don't know the liability that there's. we don't know how customers are going to respond to this what do you buy here what are you trying to trade you're trying to trade the airline industry but also trying to trade defense you have better ways to do that. you could buy utf, delta airlines if you want to play those. and have none of the headlines risk boeing has. >> you might be trying to trade a duopoly. that's a different from any crisis you point to and make a comparison i was trying to make the comparison to wells fargo. but it's completely different in that they've only the -- you've only got airbus and boeing. >> which is the interesting point. and dans up the unknown as and you bring up the liability i don't disagree

i've looked at this so many times i said, you know i buy if it gets to this level and haven't. why not. >> even with the duopoly there is an issue out there of when we don't know the impacts one thing we can look toorpds the future will be they eventually get the free cash flow back. they'll get that back. we know about the backlog. the competitor has a backlog where arbor people going if they jump from boeing are they going to the competitor? because if so it's a multi-year line that's making this interest. and i think that's why the stock hasn't crocked otherwise, i think it should have been a 285 stock like it was a year ago december. never got down to the levels again. >> key word is crack i just pumped the bp chart from ten years ago. i'm not saying this is equivalent to the gulf but the stock went from 60 to below 30 in a matter of months or something and then at some point you can say all the unknowns, the same

thing, the sentiment horrible. if i buy this ten years out, will i be okay you say probably yeah. and it's work out okay at some point. this one with boeing we don't -- it hasn't crocked yakd >> the resilience is the fwakt that stands out. i want been so resilient. >> this ises this is the deal of the scentry or because the duopoly. >> there is a lot of stocks to trade. when there is this much confusion on figuring this out. >> why try. >> it makes sfwleens here is the question yesterday you weren't here. >> i was gal vanting. >> i don't know what town here is a question if dennis muilenburg steps down, kicked out, whatever, does the stock go up or down. >> in my opinion i don't think that has any effect. >> really. >> maybe knee jerk it goes higher but if you look for the fall person you're looking at the wrong places i understand what everybody says in terms of the stock hasn't broken down in a meaningful way. consider this. you have talked about the duopoly. stock has been bolstered by the fact that the s&p 500 is at all-time high.

you've had tremendous market tailwinds behind this. and it's still down from 450ish back in february of last year. right? it's not like it hasn't -- it has been punished. injury our point is we're surprised it's not punished enough but if the broader market ever rolled over for whatever reason, i don't think boeing would be -- i don't think they'd be safe from that move. >> okay. for more on borg let's bring in earney harvey, previously called for muilenburg to step down. great to have you back. >> thanks, melissa nice to be here again. >> what you look at the stock today, the stock is up we were talk bag that what do you think investors should know about in process that boeing has in front of to get the 737 max back in the air? >> well, i think the process has been delayed several times still not making the final submissions to the f.a. chl a although if we believe mr. muilenburg they're they're getting closer but that still will take the f.a. chl a another 5 to 6 weeks

to analyze after getting boeing's final documentation that puts us into -- into nextier or late december and the airlines will take probably one to two months each to get back in the service so the earliest we see is right about the end of the first quarter of next year and more probably the second quarter because there are a number of issues that have come up during that process is boeing is addressing as well as the fundamental problem with the macs system. >> people are so focused on what boeing can do and what they can do to get the plane in the air but in the terms of the f.a. a and the certification process, do you think that has to change permanently and could cause a longer path before the max gets back in the air. >> i think the process will change i think the review we've had with international repentingers will be thoreau enough once the submission is made, the recertification process will go

smoothly but for the next affects, the 777 x, the i hadal market aircraft the injury for those we'll see more strutny from the f.a. chl a as the process changes and the hole in the process is the organizational galgs authority, the eoda in which boeing employees can certificate certain requirements and where they used to have a direct link to the f.a. chl a now they report to the f.a.a. through borg managers. so that clear voice of whistle blowing is to thefaa is eliminated >> is there a period of customer acceptance do you think will it take for a customer or passenger to want to step on one of the planes. >> we don't have a lot of data on that? we have to go back to the 1979 and the dc 10. that took passengers six months to get back onboard the aircraft

with similar load factors. that was before social media we don't have the word of mouth we have today through the internet we don't have facebook we don't have groups that could potentially put together a abt boycott of the airplane? we don't know the answer it could take a year before people get back onboard in airplane or longer and if airlines find lower load factors that's an economic cost to them versus the competing aircraft reducing the value of the boeing aircraft to them. >> a we're just about out of time, earney but we were talking about how investors are happy to stay in the stock for now because it's a duopoly out there. i'm wondering in your sporns how how solid is the duopoly and have you seen instances where airlines could actually switch to a different plane by a different plane make >> the duopoly is pretty solid it's difficult to switch if you are a major carrier with a large fleet, because there just aren't

100 delivery positions at airbus available next year. you have to get in line and wait five or six years. but for the smaller carriers who buy twos and threes those can happen and airbus can increase capacity it's putting another line in for the tarks 220. it has the alabama line ramping up there is capacity in the system at the margins but you're right there is no alternate toef airbus or boeing at this point until the chinese and the c 19 sbrer have interthe market in 20 at a. >> thank you, ernie. >> my pleasure, melissa. >> ernie arvai. i think the bear case was that they are only producing about low 40s per month. and the bull case was that somewhere upwards of the high 50s or something in talking about getting the free cash flow back to the prior levels in the low to mid-40s it's a disaster for a couple of

years. that's one of the reasons why you bought this stock because of that backlog, because of the from a free cash flow generation and therefore the valuations came down dramatically if you looked at the notes. if they can't get above 50 in early 020 it's a no touch right now. >> if you buy boeing for a trade, 115 do 20% move you're betting no further headline risk which i don't think any of us can say with certainty you're also betting on the fact that the market continues to grind higher if you believe those two things there is upside back to the 375 level which if you go back and look that's where with he broke down from in era in the late winter, early spring of the year. >> you don't believe it. >> i don't believe it. >> i think it's bad risk reward, right. guy is talking about the fact -- if the market goes up this goes up with it why wouldn't i buy the market because i'm taking the exact risk and there is a headline that wait a second this is delayed six months or major carriersier

changes i don't know what happens. boeing goes down and the market could go up. it's a lose, lose terrible risk reward. >> don't have a gun to our head to make the trade. there are other places to make it with the same expose zblur. >> am again and amd reporting earnings after the bell. we give you highlights the market waiting on the fed decision but jim bianca says the fed playing with fire. he tells us what he sees and why investors mighget t burned much more "fast money" after this it was sophie's big day.

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welcome back to "fast money. am again and amd on the move both reporting ar the bell full team coverage on the after hours action erick chemy. all over am again. and meg tyler with amd. >> it's let's start with am again abbig beat and raise for the quarter. the stock jumped in the after hours however settled back down onto just about flat unchanged in the after hours essentially because according to brian scorny at baird putting a fine point as he does with the boy tech names the highlight will be the guidance raise but consensus was there soio i don't see thises a a surprise the company did raise both top

and bottom line guidance but the street was already expecting it, guys that's why you see am again not so much in the after hours merck and pfizer reporting big beats in earnings for both companies and stocks rose today on the results however year to date, both companies go on to completely different directions pfizer still trying to cover from investor reaction to mylan back in july moving to j&j the stock up more than 3% in the havre hours process. halted just before the the close. the news we got is that j&j conducted a third party laboratory testing thirtd party lab conducted testing of the bottle of baby powder that the fda said it found was contaminated with trace amounts of asbestos. and the two third party labs say they found no evidence of asbestos in the bottle withes also conducted a number of tests on the lot that j&j volunteerly recalled of baby poud err auto outlet of abundance of caution found none in that lot either. when we communicatewood the fda

about finding they said there was no evidence of potential cross cams however, that is what j&j is saying could have happen here we are waiting to hear from back from the fd a what it thinks but j&j says no evidence of asbestos in the bottle in 40 years of testing. >> j&j two third party labs tested the same bottle of talc that the fda tested. >> that's right. >> so they're saying basically the fda lab got it wrong. >> that's what they are saying >> and they paid the third party laboratory these two labs? >> that's my understanding j & j contracted with the two thirtd party labs, yes dysmeg, thank you. megtyrell in biotech what's o. >> does j&j with all the other stocks in the world why trade j&j. >> it's easy answer. i'm in pfizer, merck when i look at the merck numbers

they'reout standing. key trueda an unbelievable trueing drug for them up 62% there is a lot of good things looking at sales and everything in the growth foort from merck and i think in pfizer too frankly. i think the pipeline is there. they have issues going back a ways why obey not be in those without headline risk as j&j with the op yits abthis and that seems to be something always hanging over them right now. until removed i see other places to be. >> ernie arvai talking about the social media concerning the 737 max in this particular instance you're a member of the public you have a baby are you going to use talc. >> no. >> because -- because j&j paid two labs to test their product and they found nothing. >> you know the answer the answer is of course not. the last thing you want to be a ginny pig is with your children. at least i wouldn't. i can't speak for the entire 34 million people in the united states

i still think j&j is a no touch. quickly on amgen because i think it's important to bring up up that was a good quarter. i understand what meg said, raised guidance now basically in line with the street it doesn't mean the stock is still not cheap. at 13 times next year's earning it's one of the cheaper biotech. and enbrel they increased by 6% which is a good sign 208 was the level it topped out a number of times back to late 2018 that's where we are now, that's the bogey. but i like the stock. >> let's move to amd that's moving higher on the results erik chemmy with the results. >> volatile session for amd adding to a mixed bag for the chip sector this season. amd missing wall street forecasts on sales barely but beat in the importantly data

clernt category. the computing and graphics rose 36% beating analyst protections you about two point of weakness guidance for the quarter coming in light and could be a point of concern as rival intel said it anticipated strong spending in data centers the rest of the year another worry gross margins came in only in line with expectations remember intel despite strong earnings beat last wreak week. similarly disappointwood gross margin headwinds as the competitive chif landscape intensifies. the muted reaction after hours could be a heat check for the stock up nearlily 80% this year. one of the top performers in the smh etf. investors will licensicallily for kmaent near on the trade wednesday and after landing google and twitter in the august with the newest server chips >> thanks, erik. back at headquarters i like that phrase, heat check. >> nice use of the phrase. that's the main point, the stock

is up 80% on the year. ran 20% into the print the enact fact they came in in line with the quarter and guidance and stock unchanged after the move tells gnaw investors are optimistic about what comes next. i think he said it it's about share gains that they've been taking with the new server specifically against intel, make that gross margin is issue of pricing versus swell trying to get the share back but the stock seems okay despite a lackluster report. >> yeah, i mean it seems okay. but to your point it's already up so much it looks like it's at resistance now you've got the competitor having shrinking gross margin pef they have shrinking gross marlanaen incredibly ketive environment. which why do you buy you don't have to. you wait for the breakout in the smh for the momentum to come and buy on the momentum. that's the way to play it. >> you talk about the competitive environment. that's what it is. we talk about the marlanaens as well one of the two different companies intel and amd, one of

them guided for a stronger quarter next quarter that was intel that's why i think intel trades up towards the 56 number because it's had positive guyedens and they win in data center right now because if you look at the contracts with amazon and microsoft, they seem to be positioned better right now in my opinion especially after the run amd had. >> and the valuation story is intel more compelling than amd at these levels. go back last year. if you want to play stock market the name in amd went from 159 the levels now in a straight line over three months and thn cratered gave it back in a month. here we are a similar move from 20 to 34 a we're into the quarter. guidance okay. but do you want to play stock market here at 32 times nextier's numbers when this is a resistance level my instincts say take profits in amd. >> for more on the earnings from amd to amgen head over to cnbc.com. here is what else is coming up this hour. investors have lost appetite

for grub hub with shares notching the biggest one-day decline ever we will break down the future of the food delivery business plus the most valuable public company in the world reports earnings tomorrow. a lack at wlat options market is betting apple says about the iphone outlook all that and more when "fast money" returns on as a reliable phone 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. ♪ wyou can see relationships.gy, connections. patterns. you can see what others can't.

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♪ welcome back to "fast money. the countdown on the next decision on rates. while 80% of those in the know are confident we get another rate cut tomorrow there are plen of opinions floating around about what happens after that. cnbc senior economics report steve liesman with the details >> markets ary clear what the fed does this woke but the outlook murkier beyond

that 79% of the respondents to the cnbc fed survey look for 25 basis points rate cut announced by the fed bringing the funds rate down to a new level of 1.5 to 1.75% but on average the survey shows another rate cut is not expected until february 2020. only 37% forecast a rate cut in december so the majority, banking on a pause. by the end of 2020 the funds rate goes down to just 1.4%, which is to say the market is not fully convinced of any more cuts after tomorrow. john donaldson director of fixed income for haberford trust company writes in response to the the survey quote after the fed rate there is no evidence that the further cuts help the economy. if ultralow rates and low rates are panacea. why aren't japan and germany grow egg at 6%. >> while uncertain of the future cutes respondents are concerned over the effects of the traded war and global economic weakness

on the u.s. economy. the chance of recession in thes next 12 months stands at 34% the highest since 0u but the base case of respondents, the u.s. continuing to grow just more slowly 2.9% gdp growth in 2018 is seen dwichg way to 2% growth this year and just 1.75 next. joel nar i have, president of nar i have economic advisers writes the critical issue facing the issue is the trade war and interest rates cuts will do little to change the course of growth as long as tariffs persist. 76% of respondents say it's resulted in higher priss for consumers and 60% cut growth forecasts for this year and next due to dafrs 46 spers say it's lowered consumer spending. the murky outlook for the fed and economy flow directly from the uncertain outlook for tariffs on impacts on global and u.s. economies back to you. >> steve liesman back at headquarters as investors try to guess the fed's next move our

next guest says the central bank is playing with fire by remaining pass nef a recalled would of rapidly falling rates let's bring in jim bianca. great to see you again. >> thanks, mel. >> what do you mean by passive what should the fed do. >> we live in a global world with global interest rates as well too right now for the first time ever the funds rate is the highest in the developed world the highest policy rate in the developed world. we alsohave the highest 30-yea bond rate, the only one over 2% in the developed world people have to recognize first that we have high rates in the u.s. and you have to get used to the idea that zero and 1 is the regular rate second of all, if europe is at zero and negative, there is a bunch of big multinational companies that can borrow at zero in europe to fund operations u.s. companies, u.s. only companies don't have that luxury so they're put at a competitive disadvantage yes, if europe lowers rates, it forces us down

now they could get on the phone and call the ecb and bank of japan saying you have to raise rates and you have the wrong level. but in if they drag down to negative they force us lower if the fed wants to stick their head in the sand and i don't dare about the rest of the world this is where we should be they're making a mistake because they put u.s. only companies that can't borrow at zero in other countries at a disadvantage. >> unk you think the fed show should go to zero. >> inkt japan and europe should raise rates. >> we don't have control over that. >> but i thinked. >> other than calling them and telling them what to do what should we do. >> weshtd go closer to 1% and maybe under 1% because we have to stay in the range this is the world we live in process. if they're down there we can't ignore and we have to follow suit as well too. >> jim, you speak in terms of what means for u.s. corporations, multinationals i get it but is this bigger than just that? i mean this is a rabbit hole the

world is going down that there is no escape from? and the collateral damage will be big are than just honeywell not making numbers one quarter. >> yeah, i mean there is two ways to answer the question yes. there is a roobt hole in the form of negative rates that's a giant mistake and should be undone but then another, if you would rabbit hole we live in a world of technology, a world of aiming populations that demand safe investments like fixed income securities and that's why we keep pushing interest rates lower and lower it's amazing that i hear american investors keep complaining about 2% yield whereas like you'd be lucky you're not a you were eyen investor they have negative rates. get used to this this is the world we are in right now, that zero 1, 2 is where trits rb should be with two on the high end those pining for the 6, 7% worlds you only only get that

with a mistake and you doenl like it if -- >> what about the argument the other side saying the reason why japan and europe and japan in particular has been meyered in this slow growth for years is because their savers are not getting anything on the money they save in the u.s. it's only 2% but at least they get something on savings putting more money into the economy and that's the reason why the fed shouldn't cut. >> i think that that argument is true but it's got -- it's got the causality backwards. it's the aging population of japan and the massive number of savers that are plowing in the fixed income investments that first pushed rates down to very low levels and then the central banks takes it over the finish line to negative the central banks can't take rates where they would be at the the 6% and magically make them negative you have to to have a combination of no inflation and demographics of old people looking for investors.

to get down to zero to one to begin with process then the central bank can kick in and push to negative even without the central bank, the rates would be close to zero anyway given the massive investment need they have of the aging population they don't buy stocks they buy fixed income over the age of 65. >> just to connect this the analysis to the stock market mall caps get hurt borrowing at higher rates and multinationals get stringed by the stronger dollar no one benefits here >> they don't. i think you see it in the way the stock market trades. first the debt to equity ratio in the russell 2000 are now higher for the first time in decades than the s&p 500 and the russell 2000 has been underperforming. now there is other reasons that's happening too but one of the thungs is those companies are at a competitive disadvantage to the larger companies. ibm has 15,000 employees in europe they can borrow at zero to fund

that if you are a domestic commuter maker you can't borrow at zero to make anything you have a disadvantage relative to them. >> jim, great to have you thanks so much. >> jim bianca of bianca research in chicago. >> it's hard to argue with what his point is that the new normal is zero to 1 to 2. if you look at the 30-year treasury over the last -- excuse me the 10-year treasury yield over the last 30 years you see a slope like this. it bottom bottomed out at 1.42 this year. and we have seen at these peaks -- we saw in 2000. 6.25 on the 10-year. in 2007 we saw 5.25. just saw 3.25. what happens with when we have the touch of the downtrend. >> we see the pop poll tations. last fall 20%. who knows what happens here. we're back down below the treend even at 1.8. >> he was talking about the zero, one or two% where do you

go they go to fixed income that's not what we see who are that's part of the reason we get the bull ibish pushing in the stock market doesn'ten mean it's not dangerous. but that's the only place people can go for yield. >> grub hub getting served have having the worst day ever. why that stock failed to deliver. and plus plus the latest episode on the streaming wore wars more on the movers and shakers disrupting the landscape much more coming up on "fast money. you should be mad at airports. 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.

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♪ i didn't realize how easy investing could be. i'm picking companies that i believe in. ♪ i think sofi money is amazing. ♪ thank you sofi. sofi thank you, we love you. ♪ welcome back to "fast money. time for a buzz kill check out shares of grub hub posting the worst day after. down 40% after failing to deliver yesterday. the company lowering guidance proclaiming blaming what it calls promiscuous diners spreading the love it's competition in the food delivery space is getting fierce is the pain just beginning for grub hub, guy? >> yes yes. i say it with a tok down 40%. >> in a die. >> woo. >> the market cap for this

company is sheri 4 billion that's not insignificant i don't know about promiscuous that's a poor choice of words. >> you get the gist what he is saying >> i doelgtsly get the gist. they have no pathway -- i don't know how the margins improve how the profitability levels improve in the world we liver in i watched the network all day. i lo of it and saw the interview with jason day and made a point saying he had to go wherever he was he had to do a 180 that's significant i think the street's probably still off sides on the name and still think there is further room to the downside. >> the point with promiscuous diner is there is no loyalty coy only loyalty to the food at your doorstep. >> and it doesn't matter if you have four delivery apps on the phony don't care which one as long as they get me the food i want there is massive competition, razor thin margins it's a are recipe for zart

the name i was surprised didn't get hit harder is uber because where the growth for uber is supposed to come from, uber eats. we know they don't have to make money but this squeezes marj many. >> competition killing them uber lyft, slack, major competitors in different category uber and litt not only in moving people around but the delivery world or whatever when you look at names, mel, yoends i don't understand when do they make money and how do they show making money at some point in time especially as competition gets bigger and bigger and bigger so if i'm looking at grub hub to guy's point, 40% trimming doesn't make me interested it makes me think there is more downside. >> from early 2006 this went from 20 to $150 when the valuations of all the private comps were exploding. >> right. >> because of the money that was being put into them obviously the vc community i think it's important to remember this is a company

growing sales 25%, 30% a year. there is a need for the services like, you know, it's just wlorgt investors are willing to pay the multiples for them and that's why we haven't seen door dash and post meats and others coming public i suspected this a while you're seeing skongs here this has to be a feature of a larger platform they can soob the losses and maybe that looks like alphabet because they ared from in the data or azmodan because interested in the data plug it into something else and figure out how to use it because to your point, the moorjens are not there though do this as stand alone. >> azmodan is interested they got out. >> coming up less than 20 minutes from at&t unveiling of hbo max we tell what you to expect from the launch and how it could shake up the streaming wars apple goring up for earnings after the bell tomorrow. how pgs ohs trader bet the tech giant moves off the results. much more "fast money" right after this - [woman] snhu was the best experience of my life.

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launch date and a look at some of the exclusive content that will be included now, pricing in particular will be very much in focus, because hbo max aims to expand on content included in hbo now, ott service costing $15 a month. worth noting that's more than in netflix's most popular subscription $13 a month. and apple and disney streaming services both priced lower than expectations apple tv plus at $5 a month and disney plus at $7 a month. now hbo max is expected to introduce a lower cost add supported version next year. and remember that nbc universal cnbc's parent is also planning to launch ad supported peacock coming up in april to quickly scale the subscriber bases all streaming players have been announcing deals to get the services into consumer hands xiong stinky revealing friday that hpo max will be available

for froh to 10 million subscribers. disney is partnering with verizon. offering disney plus to 50 million subscribe force a year and t-mobile struck a deal ahead of a launch next year. and apple gichg the annual subscription with every device purchase gene munster dmimt estimating the sale much 250 million devices next year and a busy week friday a.m. tv launches and netflix releases martin scorescy the irishman before it releases next month. >> a lot of pressure on these guys, dan. >> disney is really interesting. i love that verizon announcement in company reports next week and i suspect they don't have an update on the stuff people want to keep it where it is but that may be a great opportunity baug because back in april when the they launched the service the stocked launched the gap. it's bon been above that i would

love to see the gap philamena would be a great opportunity to buy this stock in the 120s i want to want to owe this in 20. >> say what you want about at&t. they reported yesterday and gave the capital guidance and allocation plan making a little bit of sense hard to say they're adhering to it or hit the numbers. but let's play the game and say they do. currently valuation makes the stock cheap. good for at&t for having some vision they invested a lot over the last five, six years and the stock is cheap here i think. by the way, i can't wait to see this movie the irishman. julian boorstin talking about you're going to watch it it's a three-hour movie. >> that's too long that's too long. >> not long enough. >> i'll watch the trailer sfla they run out of popcorn. >> i can visit relatives if i want three hours of irishman. >> if terms of the pricing jewely makes a good point in terms of hbo max

makes it difficult to price it lower than just $15 to compete with the other guys. >> again we talk about the competition. another industry that's seeing that competition out there i think of anything you know i would go with what dan said. i was looking at disney, i think $120 that's probably where i want to get it that's a decent place to get into the name >> it's all about subscribers. when you look at apple and others it's incredible what the opportunities are. i think in disney case i own it like it. did think it was in front of itself i continue to sell calls i'll continue to do so that's the way to hold the stock like that where i feel like it's overpriced right now where it was especially at 140 now under 130 i'd love to see it get to 120 i could buy more sell more calls. >> one quick point about apple service i wouldn't expect this to be a huge driver for them when you think about it they give away a lot a lot have

skrupgss i just make the point that apple music took a long time to ramp up given the install base and what the fault quality of the offering relative to others. this is taking some years. >> all right up next it's a countdown to apple earns options trader bet the giant shines on the results. we break down the action speaking of are tech jim is taking on the twitter turmoil this month and how to trade the stock. that and more coming up top of the hour on mchld. live itis n mesquare, new york city, much more "fast money" still ahead. it was sophie's big day.

by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.

welcome to "fast money." tech titan apple taking center stage reporting after the bell to tomorrow. when the results cross the wire. options tradeder think it could hit all-time highs dan nathan heading to the plasma hitting all-time highs today, dan. >> all-time high, big reversal off the all-time high. call volume hot. 1.5 times of at a that puts. tomorrow amp the close, the implied move in the options market about 4.5%. actually shy to the 5.5% average over the last four quarters. the stock mochgt heftily over the last few quarters here let's look at the action today the most active strike was the

november 1st weekly 250 calls, a little more than 26,000 trade of those average price of 33 maybe $13,000 of those or so opening when you think about that price action weeklies into an event like that jur you're just saying these are traders looking to play the momentum in place over the last few weeks and what they expect to be a good earnings report let's just go to the chart, though one of the reasons why you might want to define risk if you are going -- oh are bullish into the print here we no he about a few weeks ago, the stock broke out above that all-time high from about a year ago. here and it just kept on going until today we had the little move here. but this stock is up 54% on the year it's up 70% from that low that it made on january 2nd after it had the very disappointing q 1 in china last year and i just want to make a point. a lot of people saying this this company skevs a higher multiple for that blended rate between

hardware and software. well if you look at this chart right here, this is the pe trading at nearlily 19 times near a 10-year high and a pe to growth closer to two that's getting towards highs. to me i think the valuation looks full the stock extended i would not be a buyer in this if i was i would look to define risk with calls. >> thanks for that, dan. for more "options action" tune in to the live show isth friday, 5:30 p.m. eastern time up next, final trades. this piece is talking to me. yeah? >> announcer: "options action," sponsored by think or swim by td ameritrade i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪

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>> announcer: final trade sponsored by interactive broker minimize cost and maximize return. time for the final trade pety. >> the call buys in fit bit is ridiculous i bought calls today too because i think it goes higher giddyup. >> bk, brian kelly. >> natural gas up almost 7% today. one away to play the longer term coal trend crk follow jerry johanns. >> dan bathe sflagten apple you have tor head checked to buy it into the run but calls at the money 2% play it that way if bullish. >> you have to have your head checked. >> checked. >> that's not like a heat check.

>> like checked out? >> yeah. >> in other words you need some help, somebody to talk you off the. >> 10 seconds for the final trade. >> pfizer drug, the quarter is good. >> thank you that does it for us see you back here tomorrow at 5:00 for fast. "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 al "mad money" starts now >> hey, i'm cramer, welcome to "mad money," you want to make friends, i'm just trying to make you some money my job is to educate and teach you so call me at 1-800-743-cnbc or tweet me @jim cramer. there's one thing that i know that can slaughter the bull. supply you