three times what we had from three years ago. julia, thank you that is going to be one blockbuster testimony, guys, tomorrow and it's not the only event. we have a fed meeting and a press conference from jay powell >> a lot on the agenda tomorrow and for the rest of the week seeing amd jump after earnings, four big techs reports to come on thursday. it will continue to be a crazy week that does it for "closing bell." "fast money now. i'm melissa lee. tonight's trader lineup, tonight on "fast" stocks slide into the close. the nasdaq finishing session lows as big tech ceos gear up for a grilling what is at stake plus, capitol concerns, why one top wall street strategist is calling the trillion dollar stimulus plan the biggest risk to this rally. later, we are taking your questions. tweet us @cnbcfastmoney. we start off with earnings aler alerts full team coverage tracking the

moves. deirdre bosa is standing by. first to josh lipton with more on amd's quarter josh >> reporter: i caught up with rbc's mitch steeves, an amd bull he calls this a monster beat and raise, nothing negative in the print. mitch says that he can see full raise to 32% growth, up from 25% growth. gross margins also expected to expand that's due to the continued strength in server chips mitch saying amd clearly gaining share on intel just talking more about the report and the guidance. calling for about $2.55 billion, better than expected, closer to $2.3 billion they expect '22 revenue to grow 32%. they call out strength in pc gaming and data center products. as for the two big segments in the quarter computing and graphics, $1.37 billion that would include chips for pcs and graphics chips for gaming.

that is the enterprise embedded and semicustom division, better than expected. $565 million that includes chips for the data center and also chips for game consoles and, by the way, tomorrow morning must-see tv, amd ceo will be on cnbc to talk more about the print. melissa, back to you >> thank you very much, josh lipton this was an extraordinary quarter especially given the high expectations going into this quarter the belief already that amd was gaining market share over intel and now the confirmation, pete najarian what do you do with an 11% advance in the after hours session? >> i think you have to trim some i own some calls, mel, and we've seen nothing but call activity going back to june and july and right up into the print. as a matter of fact, just yesterday huge option activity once again coming in there i think when you get this kind of a move, the great news they gave, which is great news, i think i'd want to trim some of that i might take it all off tomorrow fairly early in the day and then just be very, very patient to

see when and if we get another pullback for some more opportunities. but they did everything right, mel. lisa sue has been running this like an absolute machine it's been absolutely phenomenal to watch how they've take apart intel. it's unbelievable they went off and had the delays if that's the case, lisa and amd will absolutely be taking market share i think quarter after quarter after quarter going forward. you would ask why would you take off your position? only because of the fact this is a huge spike the stock has already made a big run into this. oftentimes you get the big pop and eventually start to coast for a while and then maybe pull back i think there will be opportunities in the future. >> your take on amd, guy >> unbelievable quarter. pete is spot on with this one. lisa will be on tomorrow morning. last quarter wasn't nearly as great a quarter and the stock closed at $54 and traded at $50.

we talked about that being a huge opportunity that proved to be correct. now i will say categorically last night i said you take earnings into this number, the stock is running too fast this overshoot to me is unexpected. the quarter is remarkable. what josh didn't mention was operating margins were over 12%. that's up from 7% this quarter last year, so it is ridiculous quarter in all facets. amd used to exist so intel wouldn't be a monopoly amd has come a long way. to pete's point, again, this stock has given you opportunities to buy it on sell-offs and to sell it when the thing spikes i think this is one of those spikes you sell into and take profits. >> it is amazing the reversal of fortunes, so to speak, when it comes to amd and intel just a couple years ago it was the reverse in terms of how investors regarded these two stocks, tim. >> well, so think about the premium that amd now trades to intel. i think this is at a place this

is overdone. i realize intel has shot themselves in the foot on the need to go out there on foundries. amd's gained amd now trades at five times the multiple of intel. at what point have you not priced in -- yeah, i get cpu, gpu. you've priced this out two to three years which is the same thing we talked about with tsm at this point now with these multiples, and i know people have said this for the last three years with amd and it's gone higher, i'm an owner of intel over amd i still think after these moves we've had, and they've been so extraordinary, i don't know if anyone is doing a trade on this one. i would rather own intel >> okay. dan, i'll toss it over to you but i'll throw in a third option, and that is taiwan semiconductor we discussed yesterday off the big credit suisse upgrade the technician there came out today with a chart on tsm and

said looks great because the long base that has been building and now it's moving off that base, dan. what do you think of taiwan semi >> yeah, well, here's the thing, these guys kind of nailed the whole trade here intel is being weighed down by these foundries. they're going to ultimately -- i wouldn't be surprised if you see activists get involved in intel and try to move them away to building their own chips this has worked well for amd and helped them take share, especially as they've gotten a lead now in a couple of these areas. i'll just mention this about the sales growth when you think about intel sales will be flat to up a little bit. amd sales are still only about 15% of intel's total here. so i agree with tim on the valuation standpoint they may continue to take share for the next year or so. when they get the seven nanometer going, you will see that move back to some degree. i think intel trading at 11 times with sales and earnings

expected to be just down single digit percentages, it probably lines up pretty well and then one last point as far as amd is concerned, the stock -- i think what's his name said this -- >> there's three choices guy, tim, pete -- >> i'm spacing pete, pete, pete, pete, pete the stock has rallied -- >> that ain't right, man >> there you go. i miss you, buddy. i'm sorry. i haven't seen you in something like seven months. >> it's all good >> it rallied into the print i think these guys have it right. it probably sets up as a good intel long, amd short, taiwan semi let that settle in >> pete, since you're the one getting out of your amd position on the back of earnings, what are you putting that money into if you had to pick in the chips space? >> probably look more towards micron i have to tell you the reason i would actually steer clear still of intel is the reason it's trading at the multiple that it's trading is because they continue to disappoint and this was another

disappointment the fact they're pushing this out for maybe a couple years, guys, this is really something that's a huge stumble. this is a new ceo, newer ceo, whose job it was to make sure that intel is not only the intel that's going to beat amd but even xhed wicompete. i see problems here. i thought long ago the guy who should have taken over because of the data center, and it's exactly what microsoft did they didn't make that decision and, unfortunately, i think they're seeing what's happening right now. and i don't know, guys, whether or not we're going to see them start to grow into a bigger multiple i just don't know that they can do that. they've stumbled too many times. and at some point in time they might be in a languish spot like amd for so many years, be the n new amd. >> and a show-me stock at this point. let's get to ebay, it is moving, tumbling, in fact. to deirdre bosa on what is driving the move

>> reporter: it has been bouncing around in after hours trading. firmly in the last 45 minutes or so, the company giving third quarter and full-year guidance above expectations, growth and merchandise volume key for this company. that came in better than the street was expecting it was pointed out the implied second half guidance for the year is less than what he saw in the second quarter numbers he points out that marketing services revenue was a bit light. i think the thing here, melissa, you have to keep in mind is shares have been on a tear over the last three months, up from 45%, performing to broader markets. the tech plays as well i think expectations were very high going into this we heard from the company last week that they would sell classified ads business for $9.2 billion. and it's not enough, i think, to justify this enormous run that it has seen over the last few months do keep in mind, too, it is

underperforming. some of the other e-commerce names benefiting from the stay-at-home, shop from home trend, and that certainly includes amazon, wayfair >> deirdre, thank you. deirdre bosa you have to wonder if earnings season -- tech earnings season will be carrickized by an amd. guy twhash guy, what do you make of ebay? >> i give credit to dan with the nickname d-bo. >> one of the best >> with that said to deirdre's point the stock has had a huge run. this quarter is fantastic. operating margins were 34%, up from 29% this quarter last year. i'm looking at the gross merchandise volume, up 26% year over year. this is a pretty ridiculously strong quarter what's working against it the stock has had a huge run i think the weakness in ebay is to be bought

i think this was a good quarter. the stock probably just got ahead of itself. dan? >> i agree with everything guy said when you think about the fact they're selling this classified business for $9 billion, not on anybody's radar, think of what that does, help them pay down that debt of $9 billion. they have $5.5 billion in cash on their balance sheet right now. this is a company that if you think about the back half implied guidance, yes, they have pulled forward maybe some demand for some sort of e-commerce activity that might abate once we kind of reopen better, but i think some of the behavior by consumers or by sellers is going to stick around here i think this is a really cheap asset when you think about the after classified sale. a buy toward that $50 level. >> this is an interesting headline presumably from the call it's difficult to predict exactly how buyer behavior, retail channel shifts changes in economic environment will affect our volume over time

i guess that is the question, tim, going forward for a lot of these companies. we just have never been here before we don't know how much of that pull forward or how many of the new customers will stick around particularly at a time when maybe the economic outlook grows a little dimmer. >> and they have a new ceo rolling in, too. there's still a lot of unknowns. as d-bo pointed out the stock outperformed amd and all we do is talk about the move of amd. this stock has come a long way the bottom line with payments and advertising that are rolling in to some extent this is a secular trend. this is everything that is actually trade to go a higher multiple after this. it sounds like the group is saying, hey, pick your spot to get back into this name. i would agree. 158% move off that bottom makes this multiple a little bit challenging. still some prove it to me on a new initiative at the top. >> let's check with earnings here there were other big movers,

mcdonald's, pfizer, 3m all out with results time to play one of our favorite games. >> trade it or fade it >> it's america's favorite game. mcdonald's dropping more than 2% today after a small miss on earnings pete, we'll go to you on that. >> well, you know, i think the problem with mcdonald's everybody was looking at them, the fast food industry doesn't get hurt in something like this because all they do is drive-through. they hurt a little bit and, unfortunately, when you completely shut down -- now they've shown improvements as we've gotten further and further and deeper in towards the summer months that's why i think it's still a trade. i look at the company and say the multiple is high but they can actual ly get through and grow as the drive-through business, as long as we don't have another shutdown whether it's internationally or here, i think this is a company that

absolutely can get back up and through that 200 number and maybe push again to 220. >> to pfizer jumping 4% today. dan? >> this one we obviously talked about last week the vaccine is sort of news and i think tim said you don't buy it for the vaccine news because we don't know what that news will be. by the same token some of the data looks decent and gives you a bit of a floor the stock has had a big run just in the last few weeks with that vaccine data i think that today -- you trade. thank you for moving me along here a little bit. i think you buy it on pullbacks. i don't think you have to buy a stock on a down day up 4%. i think this is one you want to own, pfizer. >> i think what he's saying he's going to trade it. let me say i'm trading pfizer, trading on the multiple.

i think you have reaffirmation of that today. not that it's supposed to be why you buy the stock but the dividend yield is solid. yes, during the conversation on a vaccine, but that is not the catalyst to owning this thing longer term. >> 3m dropping after disappointing revenue. guy? >> yeah, despite dan forgot where pete is from and pete's anymore and minnesota manufacturing and mining and the triple m, you have to admit the stock has not been a great performer for the last couple of years. lower lows and lower highs i think fade it, mel [ buzzer ] >> mel, i'm going to jump in real quick and say i think it's a trade it the reason things couldn't get too much worse than they did for 3m and the reason i say that, look at where they got hurt most. they did well in certain medical device side of things. the problem that they're running into right now is a lot of the

transportation exposure, the industrial exposure, and a lot of that had to do with the shutdown i know that it's a new ceo that we're talking about here but i think he'll be able to guide this company further into the future once they can actually get through. things are improving as we see the economy slowly start to grow and get back up to hopefully normal levels. >> i'm picking on dan, which is a lot of fun dropping 3% today even after beating the top and the bottom line tim? >> you have to trade it. i think the trends in home building, the dynamic, the secular trends that are helping a lot of the home builders, also limited supply, affordable that's being met with by folks like dr horton and then just the whole household trading trend. we've seen this with sherwin williams, with restoration hardware there's nothing that has changed in terms of this trend other than the stocks have had a very

good run this is a pullback maybe not to buy. housing stocks are going higher. >> all right >> i'm not so certain about that mortgage rates ticked up for the first time in a while here obviously the stocks have traded very well. >> they're still at record lows. >> given that supply and demand dynamic here with mortgage rates ticking up and the stocks acting the way they did i thought the dhi reversal was interesting you may see this thing settle back in towards 60 where it just broke out a few weeks ago. >> let's switch gears here we are following a developing story out of washington. take a look, a live look at capitol hill where the trump administration and lawmakers are debating the next round of stimulus this comes after senate republicans put forward their trillion dollar plan to kayla tausche who just spoke with senate majority leader mitch mcconnell. kayla? >> reporter: melissa, the senate majority leader said it's hard to predict when the chambers of

congress will reach a bipartisan deal that can move forward on covid stimulus relief. republicans discussed their series of bills with the treasury secretary and the white house chief of staff earlier today during a policy lunch. the trump administration officials then went and discussed their findings with democrats and now we await word on where things go from here n. a first on cnbc interview earlier today i asked leader mcconnell whether this would be a piecemeal deal, whether he's open to passing some of these bills but not all of them. here is how he responded >> well that will be something to negotiate with the democrats, but we're not negotiating over liability protection i'll be responsible for putting the final agreement on the floor. and, as i said, it will have liability protection in it we're not negotiating with the democrats over that. >> reporter: so that is his deal breaker. democrats, though, have said they also won't budge on that, that customers and workers should be able to sue if the virus spreads on that location

and voters actually agree. a cnbc change research survey found 26% of respondents and 50% of republicans supported the direction of mcconnell's proposal a reduced unemployment supplement is also in the cross hairs. democrats have said their $600 weekly bump isn't necessarily a red line but that it needs to be higher than republicans offer of $200 a week. mcconnell said that number is justified considering there will be stimulus checks, too. >> the way the bill -- the previous bill was crafted, five out of six workers are actually making more staying at home than going back to work and, remember, all of these folks will get another $1,200 in direct payment >> reporter: so both sides digging in their heels on certain issues we are also, melissa, awaiting president trump to give a briefing at the white house. we'll see whether he can broker a deal on the stimulus back to you.

>> kayla, thank you. kayla tausche in washington. our next guest calls the massive stimulus package the biggest risk to the package. mandy xu at credit suisse. great to have you with us. specifically you mean if we do not get a bill through, correct? >> yes i would say this is by far the biggest risk factor for markets, certainly for the second half of this year. and what's interesting is in client conversations most people actually, i would say, are complacent around the risk with the predominant view that something will get done. congress will figure something out. my pushback has been that something, the specifics around that something, that really matters whether we ultimately end up with a $1 trillion package or something that's much bigger that will have an impact on the economic recovery. and some investors think regardless of the fact congress is doing additional stimulus,

that in itself should be bullish for markets. my view is that what matters is the rate of change if you're going from a $2 trillion stimulus that was in the original kaic.a.r.e.s. act that's quite a significant cut that's something i'm watching closely in terms of driving equity markets >> and specifically not just the headline number of the deal but in terms of what is in the deal i manage the enhanced unemployment benefit is going to be key consumers will feel that difference as you mentioned it's the rate of change, the change from what the status quo is at $600 a week to what it could be, republicans proposing $200 let's say they split the difference and it becomes $400, is that also a risk for the market that people are fairly complacent about >> yes i think you identify one key component we're watching very closely which is the unemployment insurance supplement and just how far -- how much it gets reduced from

that $600. i would say people are expecting a final number around $400 if it ends up being much lower than that i think that is a big risk for markets another thing that i don't hear a lot of people talking about but i would put up there in terms of importance is state and local aid. without federal assistance, a lot of state and localities will have massive budget deficits and that's not addressed, we're going to see job cuts starting at a state and local level and that will have an impact on the economic recovery as well. so that, to me, is another component i'm watching, the state and local aid in addition to the unemployment insurance. >> the bright side is volatility is fairly low, mandy are you recommending investors actually put on some protection trade going into the next few days what is the recommendation out of all of this >> yes absolutely last time i was on the show we were talking about everyone was talking about hedging the down

side risk. things have changed almost 180 now we're seeing very little interest in hedging. and i've been recommending downside hedges giving the decline in volatility. i do think this fiscal cliff is an underpriced risk to markets i would say focus more recently has been more on tech earnings especially coming up this week with a lot of the tech companies reporting. that's important for sure begin the dominance of tech in the recovery to me, again, in terms of what will drive the stock market the second half of the year is this fiscal -- the next fiscal stimulus bill and the risks around that. what we have been doing is recommending people look at more tactical hedges in case we have a delay in fiscal stimulus or significant reduction in the size of the stimulus bill. >> mandy, great to speak with you as always. mandy xu of credit suisse. bk has been on this train for some time that this is the

biggest risk people are looking past this you also have been assuming that something gets done. as we approach the deadline, are you maybe worried? >> worried about a lot of things maybe inshould be worried about this, i don't know we're within 100 days of an election, and the republicans -- look, they can fight all they want we know that at the end of the day they're going to have to get something done close to the $600 because people need to get elected. mitch mcconnell can talk his fiscally responsible all he wants. the fact we throw around trillions like it's nothing is remarkable my question is where are they getting this from? the answer is something we will talk about later in the show, and that's why precious metals are moving with that said i do think it gets done, it gets done closer to $600 than the $200. i don't think it's as much of a threat to the market >> closer to $600 would be a

real relief. the mcdonald's ceo said something to the effect that $600 stimulus check has helped mcdonald's sales and a reduction in that could translate into reduced sales. so, dan, $600 versus $400 may not seem like a lot to a lot of people but it is >> it's a lot. it's on a weekly basis it's also what a lot of these consumers have been relying on they don't have a lot of savings, so there's going to be a pretty sharp drop-off in consumer behavior. we've already seen consumer sentiment data this week trend lower. it's not looking good month over month. i'll just make one other point my good friend pete najarian from minnesota who i haven't seen in 7 1/2 months, and i know he is a freaky options trader here to mandy's point about protection in the market, if you look at the s&p 500, the etf that tracks it and looking at the 321 strike out in august,

august 31st, one month out, that costs you about 2.5% to me option premiums are low considering the headwinds that we see right now and just to put it in a nutshell, 5% implied move over the next month, that seems pretty easy. we could see that. but if you're only looking to protect it's 2.5%. to me downside protection especially at this technical level looks pretty reasonable to me >> well, i think dan is exactly right. dan, when you look at this and the volatility index, we're not talking about too long ago we were in the 80s for volatility, right? the vix got up to 84 or even higher than that 60s, 40s, 30s. and here we are in the mid-20s the opportunity right now, i think, to buy some protection at the levels like you're talking about from a percentage basis, we can look at that and say it's

going to cost me the 2%. that's a great hedge because obviously these moves to the upside have been incredible. so with the vix trading around 24 it makes total sense to me and there are ways that you can spread it off. you wouldn't have to put up that much more money if you are willing to spread it off saying i could see a sell-off but it's not going to be a hurricane to the downside that way you can take in the premium by buying a higher strike and selling a lower strike >> full show on friday if you like this options talk coming up, another record for gold prices today but is the real reason behind the rally a reflection of the fed? we'll debate that. we're all over the move for starbucks. the company's call is under way. we'll bring you the headlines. breaking news on facebook, the company just released ceo mark zuckerberg's prepared testimony ahead of tomorrow's antitrust hearing on capitol hill what he plans to tell lawmakers when "fast money" returns.

wall street and washington gearing up for a big day for big tech appearing before congress tomorrow for a historic antitrust meeting. julia boorstin with the details in zuckerberg's testimony. >> reporter: that's right, melissa. in his written testimony mark zuckerberg defending facebook's scale and reach saying they face plenty of competition when it comes to the advertising market. and in his written testimony he says facebook became successful the american way, saying, quote, we started with nothing and provided better products as i understand our laws, companies aren't bad just because they are big zuckerberg making three key points in defense of facebook's size first saying, quote, our

story would not have been possible without u.s. laws that encourage competition and innovation he points to the challenge from china saying facebook believes in the american values of democracy and free expression. china is building its own version of the internet focused on very different ideas and exporting their vision to other countries. second, zuckerberg defending the acquisition of instagram and whatsapp saying they became what they are thanks to facebook's infrastructure and third, saying facebook is asking for more regulation and less decision making power when it comes to harmful content. melissa? >> thank you, julia boorstin it almost sounds like they got the lawyers together in the room and thought what will the administration put forth in terms of antitrust arguments and addressed each thing and throw in a bit on china.

>> the violin strings were streakily struck with poetry and no question they are prepared for those themes engagement will be solid the question will be margins and expenses i think that's where they're going to have to spend money we haven't seen a major deterioration. we're waiting for the smb community to also just prove how healthy they are not going into the late fall. i don't think there will be anything we hear tomorrow that will change that or will help that >> small and medium sized businesses we saw a late day slide in technology, big cap technology i'm wondering if you think it has anything to do with the hearings tomorrow.

>> we have roueporting on thursy including facebook, probably 35% of the nasdaq 100, and those ceos are going to be virtually on the hill. if you think that these companies are going to flex and be optimistic about their forward guidance at a time they will be scrutinized by our lawmakers, i don't think it makes sense. the idea and i would not rely on these companies giving the guidance from an amd or something like that. it's not in their best interests because all weekend long we're going to say, hey, look at these guys they're winning the pandemic it's not particularly popular. he's wrapping himself in the flag a little bit. don't think they are not freaked out about tiktok and what's

going on i think they would love to see tiktok regulated and get a little bit of a pass on regulation until next year >> or banned, outright banned, which would be a help for facebook guy adami, what do you think in terms of the tech hearings and the aga maga reporting >> kudos to dan coining maga and it's brilliant dan knows a lot. rest in peace, regis when advertisers said they are going to start to pull and we said pull the rip cord, on june 26th i think that's when procter & gamble made their announcement the stock traded down to 207 and reversed on big volume a number of different reasons in terms of the platform but i think as tim just said they're going to report some unbelievable numbers on the 30th

it probably continues to rally from here. >> what's your favorite compete? >> when i look at facebook and everybody is talking about facebook and we know that zuckerberg has experience being in front of folks like this, i think whenyou look at what the have done through his career this guy is a shark, a guy who attacks things and comes off so passive that it's unbelievable to me. it's like superman he has made 70 acquisitions. they have done everything in terms of how do they build to the next thing and the next thing and the next vertical and have continued to do that and when somebody gets in front of them or doesn't want to sell they go after them and crushes them once again. i think it's something interesting to watch and, i tell you, i don't think facebook is overpriced even at 230 or 250 i look at the multiple it's a little bit higher the reality is take a look at

their balance sheet and generally what the growth is going to look like this has been a bumpy road for them recently and i still think they need to navigate this in a very careful way when you look at it right now i think facebook is still very, very well positioned and in zuckerberg can do the right things in front of everybody he will be cautious in terms of what he's looking at the forward part of the market >> did you catch that i asked pete a question and he says facebook and not amazon, google or -- i mean, that was masterful, pete. you skated right around that skated all around that check out gold prices hitting a new high today we'll break down what is behind the rally and whether it could continue later another round. tweet us your burning questions. we might answer them live on air.

gold also competes with the confidence of people in the institution of currency. the thing of gold is the reciprocal of the world's faith in people like powell. it's one divided by confidence >> that was jim grant earlier today talking about the fed's impact on the goldrush >> guy, what did you make of jim's comments >> he's right. he's right there are a number of different reasons and then you have a tremendous memory and it was many years ago that the story came out about the germans wanting to repatriate gold from france and the united states and we talk about it on the show and nobody seemed to think it was a big deal

for a long time it wasn't. now every time i open twitter they're talking about germans repatriating their gold. it's going on. it's happening people say gold is in a bubble here tesla goes from $300 to $1,600, nobody bats their eye. gold is a real story central banks are tripping over themselves to devalue currencies they are the biggest villains. and gold wins despite the move, you saw the way it performed today. i think gold and silver continue to go higher from here >> and central banks have been buying gold since 2002, since the rally in gold started. it took a break somewhere along the line in the meantime we got the type of qe that we never believed would be possible. and that's even now relative to five years ago let alone 2011 which are the highs we just broke through. the thing to remember about gold ultimately it's an inflation hedge. what is this telling you about

inflation? if you're going to tell me a 10% fall on the dollar since mid-february or march 9 lows of the market, you actually are not paying attention to inflation expectations and are starting to see real impact. we're going to get inflation it's not going to go well. i know central banks have been asking for inflation be careful what you wish for >> we talked about this and gold to $4,000 easy interesting all the calls on gold now shares of starbucks jumping on earnings. the company's call is under way. some of the highlights including comments about a recovery in china. canopy, will they keep their highs going? this was an unexpected bill not covered by my health insurance. and this is the aflac duck who helped me cover it. aflac. these are all the cab rides to my physical therapy. and aflac paid me directly to help. aflac. what he said. and this unexpected bill is from...

the two-thousand-dollar specialist. thanks. aflac. when you're sick or injured, aflac is there. we can help with expenses health insurance doesn't cover. get to know us at aflac.com

welcome back to "fast money. an earnings alert. shares are rallying after hours. to kate rogers with more kate melissa, a better than expected q3 and an overall tough environment here the loss per share was better than expected. revenues came in above estimates. global same store sales fell 40%. u.s. down 41%. china same store sales declined by 19% while transactions fell in all of the markets across the board average tickets increased in all of the markets as well because consumers spent more when visiting starbucks issuing some updated guidance here, global comps and u.s. comps both to decline between 12% and 17% for q4 and full year. china comps roughly flat to down 5% for q4 and a decline of 15% to 20% for the full year adjusted eps of 18 to 33 cents for q4 the ceo kevin johnson says

breakfast is still a headwind for the company due to the lack of routine, something we heard from mcdonald's this morning starbucks is working on reimagining store formats engaging with customers digitally and adding more plant-based items. tune in tomorrow morning kevin johnson will join "squawk on the street" for a first on cnbc interview at 9:35 >> look forward to that. thank you, kate rogers this was also said, china sales substantially will recover by the year end 2020 by the end of this year. that seems key as well >> really quite bullish. they seem to adjust as well as any company i've seen, that's so in touch with the consumer and some trends. they've been closing stores, doing what they needed you can see the ticket sizes are larger even if sales are where they are the global comps, those are not great numbers but they got better throughout the quarter.

the china comps are very good and that outlook is outstanding. what do you want to pay for starbucks? it gets back to a company that traded between 25 and 32 times right smack in the middle. the range has been consolidating between a $72 and $75 level. as folks know i've own the stock, owned it for a long time. i think they're going to reload the gun. >> dan >> tim's exactly right at 28 times next year's earnings, if sales are expected to increase 20%, and you get back to normalized or precovid earnings some time in 2021. the stock seems reasonable this stock topped out last summer on this quarter on their fiscal q3. traded $100 and then started going down it never made a new high pre-covid. it looked at investors were getting worried about some sort of headwinds to me, listen, china is important. who know what is this looks like in the next couple quarters.

i'm going to be surprised about how good that q4 guidance was. >> shares of shopify soaring omy option traders see even more ro to run. "fast money" will be back after this

welcome back to "fast money. "shopify shooting higher the bank upgrading the stock to a buy admitting they miss this had year's nearly 150% run over in the options market traders are betting on even bigger gains mike has the action. hi, mike >> hi, melissa shopify is up.

more than two to one today most was short dated weekly call buying over 7,000 traded for an average of $13 apiece. what happens when you see stocks that have moved this sharply and they're high dollar stocks so close to $1,000 a share. you start to see a lot of interest pick up in the options. these were probably retail traders because the average trade size was just two contracts. hou however, i would point out those following the action there is that one chance in six, according to the options market, the stock does approach that level by the end of the week >> mike, thanks for that for more options action tune in to the full show friday at 5:30 p.m. eastern time. coming up at the top of the hour the ceo of centene on "mad money" at 6:00 p.m. eastern time ♪

♪ ♪

you say the customer's maklet's talk data.s. only xfinity mobile lets you switch up your wireless data whenever. i accept. 5g, everybody is talking about it. how do i get it? everyone gets 5g with our new data options at no extra cost. that's good. next item, corner offices for everyone. we just have to make more corners in this building. chad? -your wireless, your rules. only with xfinity mobile. now that's simple, easy, awesome. switch to xfinity mobile and save up to four hundred dollars a year on your wireless bill. plus, get two hundred dollars off when you buy an eligible phone. welcome back to "fast. a market flash, bertha coombs with the latest. >> reporter: l brands is cutting 150 corporate jobs, about 15% of

its staff in order to cut costs. they will save $400 million a year, the problem sales for the second quarter expected to be down 20% year over year overall led by 40% decline at victoria's secret however, a little bit of a ray of sunshine, a 10% increase in sales at bath and bodyworks. i guess that's the one thing people are doing while they're at home, melissa. >> they're bathing and moisturizing, i guess. bertha, thank you. bertha coombs. they also say the cash and liquidity position remains strong they have more than $2.5 billion on their balance sheet pete, i will go to you since you are probably the only consumer of bath and bodyworks products >> i am. i absolutely am. i will tell you this as well, mel, it's interesting because obviously they point to the fact they have themselves in a fundamentally a decent position as far as their cash position. i could also tell you that we've seen a lot of options activity in there as well somebody sort of sniffing out the idea they're going to have

to make some changes, going to have to adjust as they go forward. the cash position is something that's very important and maybe there's some upside. we are seeing folks out to january buying which is a very unusual but buying upside, expecting to see this stock could make a nice move to the upside i think it's really important to keep a close eye on it, though again, as you mentioned, people are not going out shopping for some of the other items they sell and if they are, they're doing it digitally stock is up 12%. time for another edition of taking your questions. let's take a look. >> hey, jeff here. i want to know today about canopy growth stock. it was down last week. up today 13% what does the future look like with covid and federal regulations. let me know what you think about it >> and it's not just canopy, tim, that's been on fire all of them across the board

have seen nice gains the past couple of days >> yeah. the canadian names are up big today, an upgrade in the sector. an announcement tomorrow, probably strong numbers to report the u.s. names if you think are companies that will announce in august the sentiment behind legislation, there was some talk even that the house is going to push for legislation in september. it doesn't mean that the senate will vote it through, but it's called the moore act and you can see the pathway for descheduling the bottom line is the operational elements of what's going on in the sector there's great companies that are executing now. the addressable market is growing and the stocks are on fire and, chart guys, look at the flagpoles, you name it they are there the sector is an exciting time to actually see execution. canopy growth is the biggest name in the sector

fiscally they reeled it in hemp products and an entire line bringing in professional athletes, et cetera. that's the story but people have heard a lot of hype in cannabis before. this is real >> if you have a question, tweet us we'll try and answer them l al week coming up final trades - i sent your new prescription to the pharmacy.

- any idea how much it will cost? - you have a choice. insurance or goodrx. - i have insurance. - insurance is not what it used to be. people struggle to get their prescription covered and prices keep rising. i recommend goodrx. you get free coupons to save on your prescriptions. - [narrator] compare prices to get the best discounts. - goodrx, smart. - [narrator] stop paying too much for your prescriptions. download the free app today. we're committed to making college more affordable., that's why we're keeping our tuition the same through the year 2021. - [student] i knew snhu was the place for me when i saw how affordable it was.

- [narrator] find your degree at snhu.edu. "final trade," tim >> starbucks normalized earnings trends are happening sooner than many expect >> pete? >> dropbox we had some buy in there today

mel, i bought the calls. >> dan >> qqq, sell it in front of the maga >> guy >> pfizer drug comes out pfb, mel. >> all right thanks for watching "fast money. see you back here tomorrow adn't go anywhere. "m money" with jim cramer starts right now. the mission is simple. to make you money. i'm here to level the playing field for all investors. "mad money" starts now hey, i'm cramer. welcome to "mad money. i want to make you money my job is not just to entertain but educate and teach. call me 1-800-737-cnbc or tweet me there are two kinds of covid winners. the predictable ones