drops off an all-time high usually the market rolls over and had some back and forth action there's some unusual intensity to the move up and this sort of initial air pocket we got today. >> it certainly was a negative air pocket today s&p 500 closed down 3.5% the nasdaq was down shy of 5%. thanks so much for watching. i'm melissa lee and this is fast money tonight's trader line-up guy adami, karen finerman, dan nathan and steve grasso. a tech wreck rocking the markets with apple, amazon, alphabet and tesla combining to lose $500 billion in market cap today alone. plus, what the vix can tell us about just how long the pain of today's market could last and if you got questions about what to do after the selloff, we'll get you some answers in this special hour at 6:00 p.m.

we start off with all the red on wall street, stocks retreating from all-time highs as the dow drops over 800 points in its biggest one-day decline since june tech starts dropping nearly 6%, snapping a ten-day win streak. is this only the beginning guy adami, what do you think >> hi, mel remember the carpenters? the car ppenters are one of my o five favorite bands. >> we've only just begun >> as i've said many times, 24 hours does not a day make. i don't want to get into the vix but i will say we've talked about it now for the better part of a week and a half despite the that the broader market was rallying, the vix was trying to tell you something the internals of the market

haven't been particularly good this gets us back to levels we saw last week. i do believe it's the beginning of something but it could all reverse tomorrow on jobs numbers. we've seen it before we come back after a long weekend to find the market up significantly. clearly there are things to be concerned about. >> grasso, what did you make of the action today >> i think i'm going to make a huge deal out of it. i this where you ae are just on precipice of a much bigger decline. i felt we could fade anywhere from 10-20%. so we got about 4% today obviously we have a lot more to go i think tech is going to continue to weaken the big question is, do you see value run in the face of this selloff? today we saw banks, airlines and a handful of other stocks able to rally early with the cruise

lines and the reopening stocks but the truth is, if the market sells off 20%, it's taking everything down with it. so i am positioned for the tech selloff. i'm positioned for the selloff but unfortunately i'm positioned for the cyclical bounce. so that remains to be seen whether that's going to happen but that's the way i am positioned right now i do think we have much further to go with the selloff in terms of levels. i don't know whether that happens in two days, two hours or two weeks >> for many, many sessions now we have been saying this is a market that's a little bit divorced from fundamentals, moving basically on the notion that there's so much liquidity out there. karen, you made the argument that there is no alternative for these elevating pes. but here we are today. what do you think happened and do you think that argument of there is no alternative that maybe there is an alternative at

this point in time in this market run >> what happened today is really built on what's happened for the last few weeks, particularly the last ten days where thereally growthy ones just went absolutely para bobolic. i think this pullback is the beginning not the end. but i don't think it is the end of the bull market a day like today i'm going to get positions like apple and google or alphabet i'm definitely going to get hurt on that. then also what do i want to own, what am i looking to buy i think we're going to see more pressure i just think about also i own protection the vix is really shut up.

i'm not real dy to sell vix yet especially going into a long weekend. i didn't do anything to trim hedges i think there would be a lot more pain, but i'm also looking for things to buy, things that are not like do-- things like a fedex i would like to buy. i would like to buy some lowe's. i'd like to buy some more walma walmart. i'm not throwing in the towel at all. i want to get into some of those more cyclical names and some of the value names and banks. if i didn't own banks, i probably would have started buying today but i already own them that having been said, i think there's more to go >> dan, do you have a shopping list >> what's the question shopping list? well, there is an alternative and it's cash. i think if you listen to jim

cramer passionately on "the closing bell" in the prior hour, he's kind of urging some of these people who are new to the stock market who have only seen the stock market go up who have fabulous gains in some stocks that they don't even know what the companies do, to take some profits. i think that sentiment really kind of permeates through this new investor class a little bit. that's the thing that could probably keep some of these high valuation growth stocks, the perceived winners of the pandemic, it could be the start of something as we head into the end of the year. let's use one example. let's use apple computer this company traded up 30-40% from its last earnings just a little more than a month ago it went up in a straight line, gaining $600 billion in market cap. this is a company that has not been meaningfully growing their

earnings in a couple years the stock rallied precipitously in 2019. obviously the story about better margins, but their services growth is only in the teens percentage wise. but this company was trading at 40 times earnings yesterday at its highs. that just doesn't make any sense. we've seen analysts trip over themselves to come up with all these mental gymnastics to justify it sometimes it makes sense to sell a stock. that's what happened today in a whole host of names. if you're wondering at the start of 2019 when apple had prereleased for the first time negative earnings in adecade, you have to start saying to yourself, what the hell's going on here.

listen, people have been paid to take that risk i think that the dynamic might have changed in the short-term because i think we just had a bit of a blowout in the last two weeks. >> that's an interesting point to bring up, thenotion that analysts are all over themselves in order to reestablish price targets to chase these markets higher, guy. i'm wondering in terms of the psychological of the market, where that leaves us when we have a steep selloff like today and you have a string of analysts say for apple day after day after day new street high price targets. and here we have. >> we have wonderful analysts come on the show and there shall wonderful analysts that do amazing work that we read almost every day. with that said, my concern has been i think for some they're getting a price target and backing into it instead of doing the work and spitting out a price target, if that makes sense. then you have really

recognizable people like tony dwyer who recently pulled his price targets. i think he feels like sort of a fool's game to try to put targets on a market right now that doesn't seemingly care. i think it was heather bellini who made comments in terms of goldman sachs and zoom and said we're raising our rating to neutral. i think you have a lot of people in our community scratching their heads. don't underestimate the, again, headlines of potentially the chinese selling the u.s. treasuries i know the treasury market is huge and we're only talking about $200 billion potentially so it's the drop in the bucket but the message that potentially could send might have been the straw today. >> the symbolic nature of that

would be very important to the psychological aspect of this market just quickly because we do want to get to the chart master on the there is technical damage to this market. karen, you have been grappling with this in terms of a fundamental market versus a market driven by liquidity this whole notion of analysts saying we recognize that the stock is going higher, we do like the stock on a relative basis within our coverage universe so we've got to back into that price target investors have been doing a little bit of that mental gymnastics saying i've got to be in this name isn't that sort of a little bit of what has driven you to hold your position? >> yeah. that's exactly right i often talk about how i don't like a valuation or a new price target that's based on a new multiple i'd much rather have higher

earnings on an old multiple. but we're in this new multiple that's driven by low rates or even negative rates so you can back into an extremely high market multiple. for me, i amlo long apple. i am staying long apple partially because i don't have an alternative but i feel like it got ahead of itself but i'm going to wait it out because i think over time that i will end up seeing money from here in apple probably not tomorrow. that's okay, because also aside from do i have another alternative is do i sell it, take a big realized gain, pay taxes on that and then am i able to get back in at the right time and i have not a lot of confidence in my ability to top tick the market on the way out and bottom tick it on the way in if i believe in a longer term story, it's not always going to

fade at trade value, but i think ultimately it will be worth this value. >> let's bring in the chart master carter worth to break it down i guess the big question here is has there been damage to the market has there been damage done to the tech sector in particular? >> well, in many ways, yes conceptually we're well past what analysts' price targets are. that's long ago and behind us. it's a function of momentum. we know that whenever you have a fever, it's hard to know when it might break, but you know when you see a fever. it happens in auctions for art it happens in the local corner where people are trying to overpay for houses when there's a frenzy, there's a frenzy they don't ring bells at the top but you all referred to a lot of different chimes, one, that the

vix was not confirming, the fact that tesla and apple split their stock, the fact that we were making all-time highs in the s&p and only 15% of the stocks in the s&p are making all-time highs. 50% of all stocks in the s&p have no gains for two years. these are all bells. let's look at some charts. the first chart is a one-year chart of the s&p 500 look at the second chart what we do know is if you do break out, move above a prior top, one reference point to use is the top from which you broke out. so we know that the january/february peak before the pandemic hit was 3394 on the s&p and the high today before this reversal 3588. if with drop back to that top that's about a 5.5% selloff. take a look at the next chart.

drawdowns are normal since the march low we've had three distinct givebacks there was a 7.2% decline, a month or two later a 6.4 and then an 8.3. we're due for that kind of thing. the question is, is the one that starts now, does that become a much bigger one. as of now it's perfectly normal. then let's talk about tech here's a chart of the tech sector you can see a well-defined trend line the presumption is that we break trend. the final chart is the same concept as the s&p one reference point to use is the prior high from which you broke out. now, were the tech sector to go all the way back to its january/february high, you're talking about a 20% decline. i think it's important to say that, again, no one can know when a fever will break, but we

know what a fever looks like we know what a frenzy is as people bid more and more it's not about valuation an alternative is cash >> carter, that's quite a bold call at this point you're basically saying by looking at the charts, the alternative here is cash >> remember, it's the paradox of the investment community it used to be that you were responsible for assets, certain amount in cash, certain about in bonds. we're so spliced and diced now, only mid cap tnt and that's my mandate so i can't hold cash that becomes a self-fulfilling thing. but the concept of stewardship of capital, of course cash is an important part of that process. >> carter, thank you

a number of this year's hottest stocks got slammed by the selloff today. is this an opportunity to get in or perhaps there's more pain to come we'll get some answers in. trade it or fade it selloff edition. we kick off things with apple falling nearly 7%. i'm sure a lot of people throughout are saying maybe this is my chance what do you say, trade it or fade it? >> i fade it here. you're going to have an opportunity to buy in stock probably back at that breakout level to 110 or so then get back in it depends on your time horizon. but if you're thinking about playing for a quick pop back to prior highs, i think that comes from hlower levels. >> tesla down nearly 10% it had been down for a couple

days prior to today's decline. some people are wondering if they should get in here. >> tesla, when they announced they're going to do rolling dilution points, they're going to be issuing new shares that's going to be dilutive to shareholders this is a fade so i think you're going to be able to trade this this is going to be like what dan just said for apple but it's going to be on steroids. i'd wait for much lower levels to jump back into tesla. >> zoom a big work from home winner trade it or fade it here, karen? >> i would fade it it doesn't mean i'd short it but i can't look at this and say only if i could buy it at 380 that would be a good place and now i can. it's still just stratospheric. fade it. >> check out shares of chipotle down about 5%. guy, trade it or fade it

>> the logical answer is fade it i'm going to stay with this one. i think the environment has set up well for cmg. i don't think anything has fundamentally changed other than the market if the market sells off in a meaningful way north of 70% of stocks are going to follow i happen to think cmg might be the one that doesn't so i would stay in the trade. docusign is one of the other work from home stocks that were hit really hard in today's session. let's get to deirdre bosa. we're having trouble with deirdre's mic. 45% revenue growth here for docusign the stock is down by 3.2% here in the extended hours. it moves in tandem with a name like a zoom which is seen as a

beneficiary of all the same sorts of trends. karen? >> it's a great product. the valuation is too high. i thought their earnings looked really great i thought the guidance was good. there was a lot to like except for where the stock is a valuation. even down a little bit, i wouldn't be a buyer here. >> initially it did look like it couldn't bounce because we did have a trade higher in the after hours session initially at least until it fell down by 3.6% now. >> yeah. what did we play the other day i should know the no-mo part the reason why i thought this was particularly dangerous is the stock went from 200 to 290 in a straight line basically

now here we are 235 or so. i think there's an entry level to buy it. my sense is you buy it back where it broke out from, which is 195 the story isn't broke. it's just the stock got ahead of itself. coming up, chips getting checked in a big way today and later, today's market volatility may have you running for cover, but how much longer may the pain go on we'll search for any light at the end of the tunnel.

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welcome back to "fast money. the semiconductor getting crushed in today's selloff there could be a lot more than meets the eye to today's smackdown. >> some investors clearly deciding it was time to sell some chips the etf that tracked the sector finished deep in the red today it's had its worst day since june 11th. some of the hardest hit names nvidia and amd at least some of the selloff could be traced to a company that supplies optical equipment to the big carriers. it's the worst day since 2008 for that name. was that an outlier or the start of something bigger? the smh still up about 80% since march lows

the valuation after such strong runs and the election. bloomberg reporting that china is planning what it calls a sweeping set of new government policies to develop its own domestic chip industry one final data point for chip investors to think about, broad co comm >> this wasn't one of these high flyers amd was up about 80% year to date or nvidia up now after a little bit of a selloff, up 120% year to date those two, the latter two are the sexier names in the chip

space. i think you could have much more room to the downside on all of these names. but when i look at the value play, that's intel intel you should get a yield from so you could see people that got run over in intel actually dip a toe in these selloff in these growthy names. >> but you've got to believe that ultimately your yield is not going to be outweighed by the decline in the actual share price. i guess the question here is, you know, for chip stocks in particular, they are at the cross section of growthy technology, but then also the ultimate cyclical play what do you think the forecast is for the chip sector in a market that might be hitting some speed bumps >> speed bumps, yeah karen addressed that yield point that you get wiped out in a day last night during the 6:00 special. i do pay attention

it's clear that the world has changed and it's set up perfectly for what all these companies are doing. you have to ask yourself, nvidia now is a $330 billion or so company. in my opinion, companies of that magnitude shouldn't move 10% in one day. this has happened a couple days. it's problematic it speaks to a bigger problem with the broader market. >> we're obviously having some problems with guy's shot dan, i don't know if you're able to continue his thought or if you've got your own. >> so you're talking about the smh here 13% of the smh is taiwan

semiconductor. 23% customer is apple. today while apple closed low, taiwan's semiconductor closed 3.5% off of its lows can you imagine if that stock had closed down 5 or 6% or so? we would have seen a blood bath in the smh it was interesting to see some relative strength in the largest member of the smh. you have the growth, you have the cyclicality. i think this is a group that obviously signalled the bottom back in march at least as far as tech was concerned but it might also be the one that pulls back and kind of stays back, because some of those large components got very expensive, very ahead of themselves i like taiwan semi that could be a good tell for this group looking for a bright spot in today's sea of red we'll tell you what unlikely group was able to eke out some

significant gains today. plus, if you've got questions about how to navigate today's turbulent market, we're here to lp tweet us @cnbcfastmoney. i really need to start adding "less to cart" and "more to savings." sitting on this couch so long made me want to make some changes... starting with this couch. yeah, i need a house with a different view. and this is the bank that will help you do it all. because at u.s. bank, our people are dedicated to turning your new inspiration into your next pursuit.

welcome back to "fast money. the broader market selloff hitting a see group involved in the hunt for the coronavirus vaccine. biotech stocks dropping almost 4% today as drug makers race toward the finish line in the vaccine race of course, yesterday we got news from the "new york times" that the cdc now confirmed by many sources, but the cdc has sent out a directive to various

states to prepare for the distribution of a vaccine. there are also a few key dates in terms of the vaccine pipeline october 22nd being the fda vaccine update meeting >> one of the biggest pieces of news we got today was from pfizer they are among the two companies in the lead in the trials for the vaccine. their ceo saying today they have now enrolled 23,000 participates in the phase three they could have an idea by october to know whether the vaccine works.

there was some doubt cast on that by dr. fauci. take a listen to thwhat they sad >> if someone comes out and says, you know, i'm going to shoot for the possibility that i'll get it by october, you can't argue strongly against that that's unlikely, not impossible. i think most of the people feel it's going to be november/december. >> there is a very, very low chance that the trials that are running as we speak could reed before the end of october and therefore they could be if all other conditions required for an eua are met and approved, it's extremely unlikely, but not impossible >> so of course a lot of people curious about that date, especially given it's so close to the election on november 3rd and given there was that letter from the cdc this week to governors urging them to be

prepared by november 1st to distribute a vaccine what we're hearing from the folks on the government side, from dr. fauci, is it's just good to be prepared. they are not counting on a vaccine being ready that early pfizer, though, does seem pretty confident. >> thank you mega tir rel. moderna managed to eke out a small gain here. the airlines did well relatively speaking on the notion the economy would reopen >> on a lousy tape we thought if the news was such, those stocks would have been done much better yesterday maybe they just took a day to catch up that's encouraging in terms of biotech, i still think the horse that's going to cross this finish line first has yet to even be spoken about in terms of who's going to come up with a vaccine

if you look at a lot of these stocks, yes, moderna is up gilead has been a very difficult stock to own, despite the fact that it rallied over 80, back to 65 the list goes on and on. i think the ibb, if you really want to look for a he feel, 128 in the ibb is the level you really have to watch in terms of breaking through on the downside i think it bounces from there. i think it closed at 130 or so today. >> across the board airlines bouncing back and bucking the broader market trend, united up by 1.4%. our next guest warns that miss growth isn't strengthening ahead of labor day weekend you're not any more positive than you were about the sector amont ago? >> no. actually, i'm not. i'm kind of disappointed because

back in july we saw about the same number of passengers per day we're seeing now that was a great recovery off the bottom the mid april bottom was 89,000 passengers per day we're running between 600,000 at the low end and 800,000 at the high end on peak days. that's really disappointing because that's where we were a month ago and we're still down 70% year over year we're hopeful to get to a million a day by year end, but i think it's going to take that vaccine to get people convinced among other things that they need to travel again >> there are varying degrees, though, of approval for this vaccine. it's a sort of complicated story. there could be the emergency use authorization in terms of the potential preelection, late fall

sort of deadline then there's the broader use which may come a little bit later on when you think about a vaccine and the impact on the sector, is it enough for let's say emergency use authorization which would not be for the general public it would be for first line responders and vulnerable parts of the population. would that flip the switch on airlines in anticipation of the broader authorization, or do we need to see this actually distributed to the public in order to see airlines see that bump in traffic. >> so i think three things about that one, yes, in a word. what you just said is so completely accurate. i think the idea of a vaccine will be hugely positive. that's number one. i think the idea of when it's available to the general public is sort of number two in the sense that probably some people will be the first in line but there will be many people who will say i will wait x months or

x weeks. then the second thing i would point out is quarantines and governments closing their borders. so we have to segment the market into internal and domestic again and say, well, domestic is likely to continue to rekocover, but this whole idea of quarantine rules and things being open make it very difficult to figure out where to go. >> i thought the united news today,i don't know if you had a chance to see it because it came out very late, but they put an interactive map on their website, which i think is huge because it enables people to go on the web quiclick a state, see

what the rules are and make your decision in an informed manner about whether or not you could or should fly there. >> with some of the cost cuts they've been making or will make if there are furloughed jobs as reported, what are the break evens for a delta or united? what capacity do they need to have to get to break even which buys them more time? >> that question is somewhat difficult to answer in the sense of this. let's just say government aid continues into march then break evens are relatively low, say 30-40%. let's say government aid ends as expected on september 30th and they go through with the furloughs, which we have calculated to be between furloughs and voluntary leaves to be somewhere in the neighborhood of 150,000 people then your break even is going to

bump fast closer to 60%. that presupposes fares stay at second quarter levels. as demand comes back, we expect fares to decline because once airlines figure out they can stimulate demand and people will fly, they will lower fares. and also remember airlines always lower fares, a lot of times they lower fares when oil prices go down we're at $1.10 a gallon for jet fuel a year ago we were $1.80 that's about 40% cost savings year over year even if it comes up a little bit, it's still a big benefit to them >> thanks so much for your time. >> thanks again. >> helene becker it's a pretty dire picture for

the airlines sector. >> what we don't talk about is the fact that obviously the profitable, the high margin businesses, the business traveler you just look at the zoom stock. i hate to say it but i'll say it business travel is not coming back the way it was six or seven months ago because people have learned, hey, guess what, we don't have to get on a plane to have a meeting we can do it in the comfort of our own homes. that is fundamentally going to change business travel, which is a real problem for the airlines. i don't know if they can return to those levels in the near future i think win of the airlines today said it will be 2024 before they get even close that said, it doesn't mean the stocks can't grind higher from here 27 and delta has been the pivot point. i don't think you have to go racing into these things, but they should absolutely be on your radar screen. >> coming up, will today's selloff spark a rush to the safety of gold

and we're just a few hours away from the market in asia. as we head to break, take a look ie tome of the recent high flrsaking the biggest hits today. - [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu.

welcome back to "fast money. gold was able to stay relatively flat bitcoin took a real hit. does this signal anything about what is next for the market? guy, i'm curious what you think of gold, if it performed better or worse than you thought it would have amidst the selloff. >> tim talks about this a lot.

we have seen selloffs in gold that last a day or two and then it gets back on its source today i don't think the selloff was nearly as bad as you would have thought given historically over the last couple of years. i'll say it again. gold is in my opinion going significantly higher from here i mentioned the potential for the chinese to sell treasuries i think that's extraordinarily bullish for gold i think the gold if you've been waiting for a setup in gold for the last 20 years, it's never looked better than it does today given what's going on. the day to day permutations notwithstandi notwithstanding, i think it goes higher from here. >> dan, what do you think of the notion of safe havens? >> he's been buying gold all year long. i do see higher highs. i know a lot of people's

diversification ak titactic, pu a few % in gold makes sense. i'd say i'd really want to see this thing holding 180 because you could see a bit of an unwind it seems to be a very crowded trade. when we get sharp selloffs, we see correlations go up fairly dramatically we saw it in bitcoin we even saw it in gold back in february or march. i don't think you can always play the inverse sort of trade as far as gold and equities and the dollar and that sort of thi thing. it doesn't always work. >> karen, you're in bitcoin. what do you think of its performance as a safe haven? >> dan just touched on the correlation, obviously very high in fact, i think in the last two days have been far worse for bitcoin. i still believe in the long-term. i think the fundamentals of why i'm in it are setting up the same the fundamentals of why you're

in it, the fereasons i'm stayin with bitcoin. coming up more market turbulence means offensive zone the perfect time for another total request pafast money

today's selloff is rattling cages across the entire market as the dow drops nearly 800 points

if you're worried today's pullback might be the beginning of more volatility, you're not alone. the options market is signaling the possibility of turbulent times ahead. mike khouw has the action. we've been flagging the rising vix along with the rising markets for days and wondering was what that might be signaling. was today the reckoning, so to speak? >> i think it certainly was a part of that reckoning last week we saw two consecutive days where the s&p was higher and the vix was higher that's an unusual circumstance happens less than 1.5% of all trading days going back to 1990. that's basically when the vix first started. what we have also seen is that basically the bid for calls in a lot of these high flying stocks has also been going up ahead of what we saw today. that's unusual usually you see volatility drop as markets steadily march

higher sometimes when you're going to see a blow up, the opposite happens. why is that? because investors are still reaching for the momentum, propelled by the fed, but are concerned about valuations that's when you start seeing a bid for those calls. that's why we've also seen record call options volumes relative to puts lately. as we take a look at the vix right now, obviously we saw a big spike in it. this is also unusual less than 1% of days in the past we've seen vix moves of this magnitude. usually you see consider volatility in the days that immediately follow it. it may surprise people to know that other than 2008 generally speaking 30 days later the market has actually done okay. it has sort of recovered i think we're dealing with that damage right now but i'm not surprised to see a lot of people trying to use options here >> basically the elevated volume of calls, you're interpreting that as people replacing stock

positio positions and being in the options instead? >> yeah. absolutely i mean, if you own stock and you buy downside puts, you're trying to create some asymmetry in your returns. buying call is essentially trying to accomplish the same thing, maintaining a long exposure but risking less money to do it people are paying up for the privilege. we can see that in the price of calls relative to puts and also the overall level of options prices which are significantly elevated when you see big vix spikes like this, sometimes you get three days or so of bad volatility but 30 days later you might find the market higher. right now we're also pricing in significant volatility around the election >> mike, thank you coming up, stocks plunging to end the trading day here in the u.s. we're heading across the pacific to see what the day has in store for asia's biggest markets ♪ ♪

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your wireless. your rules. only with xfinity mobile. vice president mike pence is first on cnbc to talk the jobs numbers, the state of stimulus and a lot more on "squawk on the

street" stotomorrow morning will >> we are expecting a bit of a dropoff when it does come to most of the asian markets. the nikkei about 360 points knocked off the top. the nikkei was setting at 30-year highs because of a lot of the government stimulus the australian dollar falls on the back of that u.s. dollar strength as the markets went down that came off by 1%. i suppose the biggest gauge or the first gauge that you are likely to see is the new zealand markets. they open in about five minutes. that should set the tone for the rest of what we are expecting to see on the asian markets

>> will, thanks. steve grasso, we've had trouble with your shot we've got you on the phone tomorrow first thing in the morning, what will you look at >> it's always that little bit of who's chasing who obviously we're going to see the weakness in the asian market coming off of our markets. when we get in, the play is going to be you want to see the american market, the u.s. markets continue to sell off and be weak prior to the open. you don't want to see them try to recover based on a bounce before the new york open you'd rather see them open weak, stay weak for maybe a couple of hours of the day and then try to rally. the problem, melissa, is that we're going into a holiday weekend. so a lot of this stuff can be exacerbated or muted depending on how you look at it. >> let's get to the final

trades grasso, while we have you on the phone, kick it off. >> fedex came out to say they're hiring 27% more seasonal workers than last year that's extremely bullish for the cyclicals. >> dan nathan? >> at&t has been a big, big laggard over the last few months there's a catalyst to them possibly selling their directv this one's okay in and around 30 bucks here >> karen finerman. >> i'm always long but i always own some puts. i look at the vix move today and i think is this the day to sell them not quite yet. i want to own them certainly for tomorrow, maybe into the weekend and probably look to sell them on tuesday if you own s&p puts, wait, don't sell them yet. >> guy >> slb, mel. >> special bonus hour starts

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this says it all on an astonishing day. dow down over 800 points snapped a ten-day winning streak, hard jim cramer is off this week. we are covering the stocks this week, sector to sector let's get right to it. why today? >> i wish i knew we talked about it at 5:00

i thought one of the main reasons was you always try to back into these things the reasons why. maybe the market has understood the u.s./china relations and all i read today about the chinese selling 20% of their u.s. holdings, that caught up despite the broader market is rallying in a good way, the volatility index is manifesting. those are the two things i was looking at in terms of today >> when you try to figure out a sell-off, where do you go to >> you have to look at lagging and indicators as we have all said for quite a bit, the vix was elevating,

rallying in tandem with the market it doesn't mean we will sell-off, that there will be more skepticism about the rally. we haved push and pull about bred and -- but i don't think any of us should be shocked to see this we have had extremely high volatility to the upside shouldn't be shocked there is volatility to the downside >> there are many new traders to the market who may not have experienced this kind of pullback in a single day do you think this is the end of this massive run we have had >> there are so many new traders is part of the reason we have this big up and may be part of the reason we have this big down when i think about the robin

hood trader, i don't know on average if they have margin depth. if you own a stock and enjoy the way up, but did you take any money off the table to decrease your margins if not, then we will see selling pressure i think that's what happened today. when you think about the names that exploded to the upside, the overlap is high. this will continue to the downside if we see margin calls, that takes a day or two that's why i think this down trend will continue. ultimately there are things to buy and i want to be out there buying them, but not quite yet >> you had a couple of names in the 5:00, lowes, fed ex i think is one as well >> good memory

lowe's, fed ex, walmart, but i wouldn't want to buy something like a macy's. >> do you have a buy list? >> i do. i have been bold on this tech thing for a while. i am looking for everything from walmart, lowe's, target, goldman sachs, j.p morgan, morgan stanley, to fed ex and some of the transports, but a lot of the tech names, crowd strike i am staying away from tesla, if it gets to low enough i am happy to own but apple. i am looking for levels to retrench if karen's point is correct and this is margin call driven, then to me that's more of a

supply-demand technical -- type of situation >> shopping list, perhaps? >> i think karen spoke to this last night the banks are trading really well the banks to me is where you want to be the banks are not the problem in this environment i think people have stayed away for good reason because there is so much good money to be made in these hot flyers, but when people come to their senses, valuation wise, the banks have secured themselves and fortified themselves to a point where they could be a safe harbor going forward so i would say the

banks. >> pain wasn't all equal josh has more on this. >> let's start with the world's most valuable company. apple coming under pressure, falling about 8% about 12% off its all time high. it's still up about 130% over the past 12 months, up about 50% in the past three months alone other stocks that got clobbered, this is its worst day since june of 2011. many chip names have benefited from work from home and has meant more work from the pc to data center. but it is a concern for investors to think of. and investors sold out of the

cloud stocks, too, worst day since their lows in mid march. melissa, back to you breaking news on the stimulus kayla? >> one question answered which is what house democrats are set to propose when they return later this month for their side of the negotiations to keep the government open. a senior aide said the house wants to pursue a clean bill to keep the government open and a separate bill for stimulus said. there was speculation that nancy pelosi may combine the two as a challenge to mitch mcconnell we are told that steven mnuchin

and nancy pelosi spoke by phone and this was discussed we don't know whether the senate will be on board to pass a clean government funding bill or whether they will try to attach a bill of their own. but we know the house is on board for separating the packages, one for the government and one for a stimulus package >> does this mean we are closer to the two sides getting together on the stimulus mcconnell said in a report to the hill that he's -- >> what we are expecting to be a skinny stimulus package in the

amount of $500 billion which is farther away we know it is not the objective of democrats to combine these debates into a toxic form to challenge the government to shut down or pass this stimulus package. >> kayla from washington maybe this will push lawmakers to move faster on the stimulus front >> or not so much. i think both sides have a vested interest on either sides of the market going higher and level. to your point, it's shocking to everybody. i think brian kelly said this. this is his biggest concern, this deal not getting pushed through. i think this works to president

trump's benefit no matter what if the deal gets done, he will say this is a great stimulus deal i have gotten for you if it doesn't he will say look what the obstructionist democrats are doing to you and will do to you if you don't re-elect me. i think it's probably bullish for the broader market is the way i look at it to the sell-off on apple, from bill in virginia. >> caller: apple stock is a stock i have owned for close to ten years. i have been accumulating shares. we have recovered all of the initial investment we made into apple. my question is what should we do

now? sell off some or keep holding it it's a good dividend stock for the future >> talk about a concentrated portfolio. karen, what do you tell bill >> there is a lot going on congratulations to have owned it from way back when, extraordinary gain whenever you do sell you will pay long-term gains, but you are going to pay taxes on that so something to consider. but the 55% concentration is very troubling for that reason alone, regardless of where it is, if this is your retirement account -- i don't know how old you are -- but i would not be owning 55% of anything in my port polio i couldn't do it

maybe he fainted when he heard that 55%, but maybe he could speak to it. i think you should be selling some to diversify your risk. >> he's still conscious. but people like bill may say this has been a winner if i had prudent portfolio management way back when, my portfolio wouldn't be nearly as big as it is today >> he would be right portfolio management isn't about hitting a home run on everything a large part of it is about having building blocks so you can build wealth in a sustainable way over time. but to karen's point, 55%, i hate to do it, but you need to rotate into something else, anything else. if for no other reason than you

have so much of your wealth concentrated in one name if something were to happen, i fear for what that might mean for your liquidity position. >> what if bill says i will sell some apple but i will by intel and facebook and amazon. >> he understands it, but he should get into things that aren't in the same angle maybe it's 55% because of the gains and it has organically grown to 55% of your portfolio but in terms of an absolute number, that's too high for anyone i have liked apple and haven't loi liked it and been right and wrong. you have seen draw downs pretty

much of 35% in a straight line it isn't like the stock doesn't sell-off down 12% now i don't know if this is the beginning of something, but in the back of your mind you have to have a plan right now might be the before point. 55% is too much. maybe it should be more in the 20s. >> microsoft, a question from greg in new york >> caller: thanks for getting me on the show. my question is about microsoft i own 40 shares and building a position for the last year or so it was 80% profit and went to 90 before the sell-off today. i am thinking maybe i should have taken some off the market i know microsoft has a lot going for it so my question is if i should take some off the table now and

if so how much >> i don't remember the level at which he got in, but it sounds significantly lower, so i would say yes and diversify. back to the last point, you do need to diversify because you don't want a portfolio or single stock. whether you are bullish on transports or financials, the whole point is to get a portfolio where you are not so level. i would take some off the table. i say that ad nauseam, but it's something i believe in >> karen, you own microsoft. >> i do. i believe it is a little rich. it is a great company. last time we talked about how teams could be the next driver

for microsoft. that aside, if it is too big of a bet, you only missed the top by two days. if it's too big of a part of your portfolio, then you have to sell some. don't feel like i missed the top tick so now i have to sell some. too me it is not too big there have been many points where i wished i had bought more so i am not selling even though i think the evaluation is a little high. >> tesla is down 9%. >> if you look at this stock over the last week, remember tuesday when it touched over

$500 a share people were saying when do we get to 550 not so fast. we are down to 407, a decline of 19%. this stock since early june has more than doubled and all of this raises the question what are the true cat lisalysts out there. people are saying do i think these guys can go higher or is it time to pull back you have deliveries the first of next month and then results in late october or early november as tesla sold off we also saw a sell-off in electric vehicle stocks we are talking about nikola, all of them down more than 5%.

quantumscape is based in san jose, california they have big time investors in this company they work on long-range electric batteries they hope to have to the market by 2025 >> and speaking of tesla, vito in florida has a question. >> caller: thank you for having me on the show my name is vito. i have a question for those trying to get into tesla after the split. they didn't have the opportunity prior. where are we going september is a hard month. tesla is coming out with new stuff. i would like your professional opinion where we are going

stick with tesla or shall we sell tesla >> very dramatic i don't know if you caught vita taking his glasses off at the end. very dramatic. >> inside baseball stuff i don't have what you call a return so i am staring at the lens of a camera so unfortunately i didn't see vito doing his best robert de niro impression you always have an opportunity to get in or out of a stock if or when it splits or announces a split. but is it too late to get into the name i think in the after hours it closed around 408. i think it's closing around 390

now. sorry about the dogs 350, vito gets you done. >> i want to reiterate i know you are tired of hearing this, but stock split is not a driver of value. if you liked the stock before i would like to know why it is not a valuation play so that means you buy into the ev secular trend if you loved it at 500, really love it at 400 go back and look at the prebreakout level before the split. i think it was around the 250 or 300 level. that's where i would look to buy it, if you are trying to replicate where it was before the split. >> news developing let's get the latest

>> we have our report from the journal that half of the workforce is planned to be laid off. and we will check in on damage has the home builders shaken to eir foundation stick around much more coming your way. the only thing that makes t-mobile's new offer on iphone better is the people you share it with. so right now switch and get two new lines of unlimited for only $90 and get 2 iphone 11's or 2 iphone 11 pro's on us. all on t-mobile's most powerful signal that goes farther than ever before.

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let's get the details. aditi? >> juul plans to play off more than half its workforce. in a statement the company telling us -- this follows an e-mail sent to staffers yesterday where employees were warned that a significant global reduction in force could be coming. it is exploring leaving nearly a dozen companies including germany, russia, indonesia and philippines. juul laid off nearly 1,000 employees this spring or 1/3 of its workforce. the e cigarette company has been

tied to lung outbreaks it is said that some vapers are switching back to traditional cigarettes back to you. >> we first saw this report overnight about juul also, it has been losing ground against competitors, particularly reynolds. but traditional vapers going back to cigarettes is troubling. it was defended this morning saying it was a steady performer. >> bur it hasn't been. altria has had a series of lower highs and lower lows it has been a nonperformer maybe this is the news peg that

gets it back on its leg in terms of a stock i don't think that's the case and i don't see safety in the name >> social stocks let's get to julia on these. >> melissa, as you know, several stocks have been among the biggest gainers. digital platforms and also the potential for ad growth around e-commerce, but today the social stocks plummeted ending nearly off 4% but the stock is up year-to-date a big boost after slugging off concerns about a boycott we will just wait to see what happens next twitter shares falling nearly

5%, still up 30% this year pin trest fell the most, a 42% have a buy rating on snap and 34% have a hold. considering these stocks had such dramatic gains, we are probably seeing some being taken off the table. >> thank you, julia. we also have the overlay of theelections coming up which has been tricky for facebook in the past how do you feel about your stock holdings right now >> facebook is a big position for me when i look at a facebook versus

pinterest, i would rather be in facebook the quarter they put up was phenomenal i think there are other drivers. i am comfortable being long. could it trade down tomorrow or next week? of course. i think the power of this business -- to me it is not to be overdone. i think there is compelling value. and same for alphabet, painful, but it is a money machine and hopefully we will see some of the other bets work instead of being a drag on expenses incredible value good in a pandemic or out of a pandemic, and the balance sheets of both of them are extraordinary. >> have you checked out guy's

pinterest page i saw you nodding in agreement about being in facebook. >> unfortunately, i am not cool enough to have a pinterest page. guy, maybe you can get me up to speed. but i am wildly in agreement facebook has had a run, but does have extremely strong -- twitter has a 641. these names, alphabet, facebook has shown there is a transition in how ad dollars are spent, washington aside i think whether or not they can

take market share and expand the adjustable user base we are looking at user engagement and think that will translate to spin at a high ragt -- rate. when people are looking for outs, those are the first things i would sell how much a face bach book is don versus some of the others. >> guy >> i think you should take an hour after the page and go through my pinterest pages the folks have said to me i have one of the best pages they have ever seen. and i have been on it since its inception, and the stock has tripled. the only thing you have to be concerned about, in my opinion, if you ever catch an inkling

that facebook is going to fall under the guidelines of esg investing, you run for the hills. short of that you stay with it it wasn't all bad news in the market today cruise lines navigating higher could this be the calm before the storm? stick around

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welcome back to a bonus hour of fast hour home builders, diana has information about the sell-off

>> homebuilders have been really hot. look, down over 4% on the day. strong fundamentals didn't help some of the biggest names. hiller morrison showed net new orders up 70% annually it posted a strong recovery since march but still lost on the date and lennar losing on the day and d.r. horton benefiting with its entry level product. so many of the builders have been the darlings of this summer rally, they are a bit overbought rates have been dropping, below 3% on 30-year fixed and that didn't help in the broader sell-off our next question is on the

homebuilding industry from jake. >> caller: i am here to talk to you about the home building industry work from home is here to stay the street is not as hot let me know your thoughts because i am ready to build. >> he even had the hard hat, karen. what do you tell jake? >> he did? i didn't see that. thanks for the question, jake. a higher price point, more of a luxury product as opposed to a first time home buyer. although it has underperformed versus lennar but i do like the

macro, the space the pullback doesn't bother me i think all of the fundamentals to like it before are still in place. they got a little ahead of themselves for me, i would probably be in one of the others. >> interesting about a week and a half or so ago we talked about the three names karen discussed, dhi was north of 70. that happened. we said pulte holmes was bumping against its high and probably time to take profits and the laggert has been toll. so i think you stay with dhi if

you are in and looking for a pullback to mid 40s with toll brothers i think you will get it and that's your entry point. an unexpected bright point about cruise lines what it could signal about a broader recovery to come

welcome back to our special hour of fast money let's break down this rally. seema? >> the cruise lines which

typically lead the market lower as we have seen in 2020. but there was news that carnival is slowly resuming sailing if the ships remain covid free, carnival could gradually bring more ships to europe and eventually the u.s they have gone billions of dollars in debt to survive the krrcceos of all cruise lines saying looking out to 2021, bookings are rising. but if there is any concern about quarantining like we saw in march, that could raise concerns about sailing and there hasn't been a green

light when they wiwhen they wil allowed to resume. norwegian cruise lines is the most leveraged operator. >> so the next question, can they right the ship, so to speak. >> caller: i'm neil and this is my son walker. >> should i buy more, hold or sell on norwegian cruise lines >> always a bonus point for including a cute kid >> walker, you are the man when we get back to new york, come and visit us. karen would say if you are holding something, you have chosen to buy it because you

have made the decision that today's closing price you are comfortable owning it. let's just focus on buy and sell maybe the worst is over in terms of the stocks for the cruise lines. given the choice, i would say buy ccl. >> what would you say? >> i am still marveling at the intelligence of this kid much more than i was at that age. i am going to pull up an anecdote al tidbit my parents would say i am cruising for a browsing. -- bruising. that sums it up for me i don't think you have the confidence to get back on ships. and nothing driving sales. i find missing this one.

i can't convince myself to get involved can't do it. >> karen, thoughts for walker? >> i am with bon it's the debt. you don't see it if you look at the stock price, but there is a lot of debt and it is expensive. they had to pay a lot of money to sell the debt to buy them some time until they could operate again. the enterprise value is expensive. i wish the cruise industry well. maybe i have bias that the idea of cruising isn't that interesting to me so i don't get the appeal i may not be the right person. post covid it doesn't seem that appealing. this is one i would miss i have other stuff post pandemic bullish, but this is one i wouldn't play. >> i think dan called it the flotilla of covid in the early

days of the pandemic when you look at the restaurant stocks, kate is breaking down the hit that the group took >> restaurants selling off today with a broader market, but one trend we noticed was that the stocks that performed best with covid-19, one dropped more than others wingstop the best performer. year-to-date those names are all off between 35 and 75% as they have proven they can cater to consumers in this new normal and that group is hiring 10s of thousands of workers analysts pointed out this is a group that can perform well in a faster and slower opening

environment. customer transactions declined the first single digit decline after weeks of double digits drop >> lowdown on the restaurants. on the 5:00, you said you would go in here on this pullback. barely a pullback. the stock has had a ridiculous run. you will we had about cmg in years to come. mcdonald's scares me a little. it has had a big run given this choice, i would still rather cmg >> mcdonald's fared fairly well

compared to the broader markets, karen. >> it's a little bit expensive to itself and market, but they are transforming their business. i love what they have been able to do. i think if he would can get people back in offices they and the starbucks of the world will see improvements in the breakfast business domino's pizzas are not cheap, but they are tremendous operators and the pandemic brought them to a whole new level. >> you can't get pizza anywhere. they are in short supply i don't know how much pizza you eat? >> enough as i loosen my belt. you can eat in when the doing

rooms are open, drive through. those are the best positions i do like domino's but i like chi po chipoltle. i think the way they have been treating their employees with leadership and education, they set the bar so high. i think other people will follow suit coming up on a special bon ur "fast money." biotech and phrma. we have the latest after this. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view.

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welcome back to a special bonus hour of "fast money. biotech stocks getting hit meg has the latest >> it is gathering steam if we think of this as a horse race among these companies developing covid-19 vaccine. the first two out of the gate is pfizer and moderna pfizer updating today saying now 23,000 of 30,000 people have been enrolled. moderna is expected to update after the close tomorrow so we will see where they are. pfizer ceo making some statements that raised eyebrows. reiterate willi reiterating things he said before, but saying they would

have data that showed whether the vaccine worked by the end of october. if they do, they can file shortly after. dr. anthony fauci saying unlikely, but not impossible most people feel it's going to be november or december. we will see who is right one thing to point out is that pfizer, while it will be selling its vaccine to the government and is included in operation warp speed, it has not included the government in trials perhaps that's why it is more aggressive than what we are hearing from moderna and a new company jumped in

today saying they started their phase one trials today glaxosmithkline. you get a headline like that from the pfizer coe aeo and you would see not only that stock rally, but the entire market we didn't see a point of lift. >> the individual stocks and what it means to the broader market yesterday was proof positive knee-jerk reaction higher on the cdc headlines. there are certain things you want to happen at warp speed i don't think vaccines are one of those things respectfully i don't think that's one of the things you want to push through. but i think the winner of this is a stock we haven't talked

about. biotech, i get concerned when they close at 130 or less. >> i am all over the ibb guy knows these names better than i do, but a lot of these have been trending downwards or sideways you don't know particularly if you are sbare betting on a vaccine. whether treatment or vaccination, you don't know where it will come and trying to pick a winner is an exercise in futility rd a little more time left ha lessons learned after a hard trading day that took almost everybody by surprise

how do we prep for tomorrow after a day like today let's go around the horn first thing you look at tomorrow morning is what? >> it's interesting. a couple of things the bond market is a tell for me of i want to see where 20-year yields are headed. i think that's a tell. and i want to see what is happening in precious metals if you are bullish in the overall market, i think you want to see an open significantly lower and then climb

>> something for traders who may not have seen a sell-off like this ever before >> if you have been around like this like i have, you have seen this many times. it's painful, but buying in the dip is the right thing to do i think there is more dip to come i like to buy on a day when the market opens down and then rallies. i think it opens down and doesn't rally until the long weekend. i have a list of things i want to own those are the fedexs of the world, walmarts. and if you don't own any banks, i would probably buy some banks. >> quick thoughts? >> make a list, pick a level and own with conviction. >> you mentioned some of the stocks you like, banks,

transports, those are the names you would be looking for >> yep diversified names. >> thank y'all and thank you for joining us for the special bonus hour "fast money." tune in tomorrow at 6:00 for summer school. "shark tank" is up next. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. don't get mad get e*trade and start trading our retirement plan with voya gives us confidence... ...we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room,

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