>> supposed to be a good number, 53, 54, showing expansion and has been strong in the market in terms of cars. besides barbie, games and puzzles, you couldn't find them in stores because everyone was stuck at home. >> it's not just ipad. >> we will have more coming up next on "fast money. >> i'm melissa lee and this is "fast money. tim seymour, guy adami, karen finerman, and joe terranova we are looking for gilead to pop on fda approval of remdesivir. and later, mall madness in shares of gas. what the retailer said about the future that sent it flying off the rack

an alert on intel. >> i just checked in with c.j. muse, he covers intel. he said it was a disappointing report relative to expectations. said the all important dcg business disappointed. revenue came in at 5.9 billion and they were looking for closer to 6.2 billion they said demanding is holding up, but government not so much he said it is likely to continue because there is too many uncertainties and how much of a competitive risk is amd. and i was e-mailed about gross margin guides. it was 55%, below his call and below what they previously told

the street, that 57% was expected next year tomorrow on squawk alley, tune in for that one. jo john forte will be interviewing bob swan >> tim, i know closing bell spoke to stacy last hour they said this is the beginning of the bear thesis why might stacy be wrong or have you changed your mind? >> the manufacturing issues are hanging over the company, but things working for them didn't work that well this quarter. you saw a lot of other chip manufactures are up.

the data center group business has been a flagship and part of the intel model that has been working. this is very disappointing i think it is an overreaction for our market that is bearish on intel i think the sentiment got worse today. sentiment was so low it didn't take a lot to throw it out the window >> what about you bonawyn? >> they were up about 1% as we have already touched on, the data centered revenue is disappointing. it's tough to see a rosy picture. it's tough into the expectations going in,

karen was that pcs would be strong pe people were buying electronics, computers. and even that was weak for intel. >> it was there, but not strong enough analysts, 31 or 32 of them had a neutral or sell. they got it right. the bar was low so it is surprising they are down this long it should be cheap they seem to have lost their way. i like value, but i wouldn't be jumping in here. >> guy, you want to chime in >> why not are you a fan of cleopatra i mention this because in history books she was killed by

the bite of an asp data said it was a disaster. that's a third of their revenue, $6 billion if you look at their margins, the operating margins for the whole company came in 29%. it's down 14% quarter over quarter and 15% year over year that's not good. the question becomes is intel cheap? yes. should it be cheap yes. where do you buy it? >> i think at that 45.50 or so >> let's bring in jared. great to get your take on a day like today what does bob swann need to do

to help his company find his way. >> taking a step back, i want to hit on what guy was talking about, i do think the asp is a big problem. notebooks down 10% and data center, which is key and is the profit center for the company was down 14% part of that was an enterprise in government was down 40% year on year. but data is what investors are excited about. whether it's 5g, artificial intelligence, machine learning they were down 10% year on year. i think it will be 25% down year year on year in the december quarter. i think bob needs to right the ship and give a strategic

direction of this company. >> manufacturing was a huge issue last quarter and it looks like it will be a huge issue this quarter bob swann was quoted as still having problems on the yield issue. standard bear when it came to manufacturing and this process and here it is now would it be good or bad if intel outsourced that for good >> at this point i don't think there will be a choice for them given the process. they are progressing down and below and intel is falling behind in the intel presentation, they talked about the best process available. so that would leave the door

open for them to pursue the best process available. that's what amd did. they leveraged the process at this point time is running out. >> though on -- >> i look at amd, to me they are relative the other side of the valuation story. tsm is one of the great stories in technology over the last two years in terms of share price. do you still think there is room for that based on valuation and all of the spoils taken from intel. >> from a tsm perspective, are they the last man standing in process technology

if they give up on process technology, which is a loaded question, does the u.s. government even let that happen. if they go down that path, i have to imagine that investors will receive it pretty positively when you think about creating that multiple, that they are the last manufacturer of being able to progress down so it becomes closes to a monopoly situation where if intel leaves the roadmap, then it takes market share. >> quick question, jared do you see in the short-term any divestitures of short cash or strategic acquisition? >> intel sold a business for $9 billion and they also engaged in

an asr, accelerated share repurchase if you are intel, the message is clear, we need to fix the house before we acquire assets to help from a strategic perspective it will be tough for bob swann and company to make acquisitions while their company is declining. they are investing on the core at this point they are focusing on dcg and everything leveraged to that growth going forward >> do you think this is a turn around story, jared? turn around investment or is it too early to say >> if you are intel, the path should be clear. bob swann is no stranger to this he was at ebay and when you think about everything he did over there the path should be clear when you think about the

strategic options for intel when you think about process manufacturing and their manufacturing networks and design arm, is there something he can do longer term to help create value when you think about intel as a turn around story, it's possible, but it's a long road ahead because they need to go ahead and figure out strategically where they want to be as a company long-term. >> jared, thank you. tim seymour, what would be the question you would put to bob swann on the conference call if you could? >> i would like to know their vision of manufacturing, where they plan to compete and where they plan to outsource their core was weaker than expected in an environment where it could have been better. enterprising pullback in the current setting not a surprise i think people look at intel that multiple times over the

last decade has tried to move to the front to the leading edge of innovation only to find themselves making bad incestments as it came to new chips and now at the core of the most highly processed chips, they don't seem to have a game plan i would love to know where they are going with this because data center is not enough >> jared had an interesting theory, if manufacturing was outsourced to a company like a taiwan semiconductor would that give you solace if you heard the government would put a back stop there or would that make you run farther away >> well, in terms of intel specific c specifically, that would placate some of the concerns

broader, is u.s./china relations. it is an arrow in the quiver of this battle we have been fighting does the market finally wake up and be concerned about that? i don't know how to answer that. quickly, in terms of intel, my sense is amd is probably higher on the back of this and they report on the 27th of this month. amd continues to illustrate the dominance that amd has had over intel for the last couple years and i think that's going to continue >> amd shares are higher by 2.3% as we watch intel slump down 10%. a developing story on gilead shares are jumping after the fda approved remdesivir for covid

treatment. >> gilead remdesivir was already available under emergency use in the united states. but the good news is that the fda has granted it full official approval for treatment of covid. it is the first drug to get approval for treatment of this disease. it's only indicated for patients in the hospital. this approval was given based on multiple trials including one from nih which showed that remdesivir shortened recovery time by about five days. it's interesting they are getting this full approval today. last week we saw a study from w.h.o. that called into question remdesivir finding it didn't save lives raymond james just putting out a note that the news for gilead is the best news of what could have

been he would see gilead up 4.5% on this news. >> meg, the u.s. government had secured a deal with gilead for certain number of doses of remdesivir does that trigger the payment? does that happen when the doses are manufactured and distributed? >> i am not sure how the governmepaymen from the government works. it could make it easier for reimbursement from insurers. but the government did secure most of the supply of remdesivir already. that is leading to some shortages in european countries especially as they are seeing surges there they are not able to get enough remdesivir here in the united states we have had extra whether that will continue to be the case as we see surges in the united states will be the question but that data comes out of w.h.o. that called into question

the benefit of remdesivir. it will be interesting to see how much doctors are using this drug going forward >> meg, thank you. remember, that we spoke to the number one ranked institutional bio analyst, and he said he thought that study was problematic on the w.h.o. study. so maybe there is hope for remdesivir this is the first and only fda approved treatment for coronavirus. >> we have talked a lot about how to play a vaccine, or this is a treatment, not a vaccine. you don't want to play any of the stocks for that. if the government purchased it, how much does it cost, who pays for it, does the government, the

insurer? i am unclear on that still, i wouldn't buy the stock just for this. hopefully there will be a lot of competition and competition from a vaccine. but if you think the treatment is effective, you have to be in the hotels, cruise lines, but i am not in those yet. >> we have talked about gilead so many times over the years at one time it was regarded as one of the most promising biotech companies because it had a load of cash to spend on potential acquisitions that was always the argument and here we are now. >> they have a victim of their own success. i don't think the reason to own gilead is because of this headline but it will provide a bit of a back to i think the stock traded below 60 today and that was probably a multiyear low going back to levels we haven't seen since

2017, 2018 $60 should be the point. they are probably not in a position to make acquisition so you are in no man's land in terms of gilead. but i think you can say $60 into earnings next week i think they report on the 27th as well. >> gapping higher. the highest numbers in 15 months what is behind the move. and american express reports earnings tomorrow. we will get reaction tomorrow. wow, i wish i could get a deal on a smartphone, but i'm not a new customer.

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gap shares gained more than 13% today. tim, what did you make of this announcement >> we said many times that it

has accelerated. within mall and off mall for macy's lots of restructuring to do. the fact that by two or three years out they will have 80% of their business coming from off mall and digital we just came through a big quarter. digital is up 53%, raised money. they had $3 billion in credit line to tap. i think there is more to go. this company is showing a pathway to digital retailers with that short interest, it goes higher. >> they say they see a return to profitable growth by 2021. do you believe that, bonawyn >> i do. the key is digitalization of the retail space if you think of the fact that

flag ship stores are lost leaders, it allows you to expand margins and use some of that cash to attack the debt they have been piling up on the balance sheet of late much. >> karen >> i thought buy when shares were down to about 15 so obviously i didn't do the right thing. i think it is a right thing to do to rationalize their store base which they are doing. brands like banana republic and gap, will they be able to reinvigorate it? maybe, maybe they are actually able to do this deal at this level i don't own it any more i will look at it but probably not buy it

what does it say for the malls if a chain like gap says this is the way they want to transform their business this is more pressure on the malls. >> think of all of the leases that will be abandoned in the malls. karen mentioned the interesting thing is the easy gap partnership. those goods are scheduled to go on sale. i know you have this marked on your calendar, guy, in the first half of 2021, because you will be first on the line for these turch v gap items. >> 100%. i asked the other day if i could get in they are extraordinarily comfortable and i think they have them in my size tim is 100% right.

that stock traded almost 48 million shares it typically trades about 9. so you are talking about a company that traded six times normal volume. a lot of those shorts got squeezed they talk about profits in 2023. good for them if they have that kind of visibility i doubt they do. maybe there is another 8 to 10% upside if you enjoyed the ride -- karen is boatieating herself up for getting out too early. if you enjoyed it, i am encouraging you to pull the rip cord >> we have a lot more ahead on "fast money. a big bond breakout. what it means for banks and builders when we come back and out of sync with the bond

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welcome back to "fast money. there is something brewing in the bond market. it is now 22 basis points in just the last 23 days. if the trend continues, we are talking about banks as well as housing. up nearly 2% karen, we have often made the point it shouldn't be just rates the bank trades on and yet here we are >> they do they trade as if they are one giant 2-year, 10-year spread and

that spread is wider than it has been in a long time. one, i think banks were too cheap. but net interest margin which was under pressure, and loan loss loan loss wasn't as bad as they feared but this will help them. they should be higher. i thought they were too cheap before as for loan growth, that will take a little longer last night discover financial and capital one after the close today both had good earnings driven a lot by good credit quality so that should help the banks as well. >> bonawyn that has been a concern, but many americans have been having trouble so maybe the jury is still out on that. >> yes, which is why you still see loan loss provisions at the

level they are overall this is why i like the bullish banks that have commercial and trading operations you have seen it before, trading, free generation, deal calendar, all of the stuff to void them through the covid. and you see the spread that is good for business. i think this is a positive trend and i would expect this to continue going forward the one caveat is i think a lot of what we are seeing is on the back of stimulus any news pro or against that is going to send a few shock waves to the system. >> in a rising rate environment in which the curve is steepening, tim, does your view on which banks to own change at all? >> you want the ones that have more lefrverage or weaker playes and they will benefit more by this this is absolutely citibank. i agree with all we have said

here i think the loan loss provision number, the banks were being punished for there being some secret they were hiding. i think some of what is going on with the bond market is a better economy. some read on stimulus. there is a little cherry picking here, but okay to do with banks. j.p. morgan is flat with the s&p, but the best bank out there has traded sideways in a market where most would say i don't want to own in this market that tells me it is a stock you want to own as things get brighter >> does it put the builders at risk in terms of the trade here? >> i think it does we have liked this for a while and it has been right to like them, but you took at two of

them, toll brothers and pulte homes. go back to october 8 and look where toll brothers traded up to if carter was here he would say what a tremendous fnumber do we have on toll brothers and pulte. if you are long in these names, you have to take a long hard work and say am i willing to bet against this double top and rates going higher or should i take money off the table i think you should take money off the table. >> karen, how about some of the home details, like home depot, lowe's >> they are driven by housing. you buy a house and do the things you want to do or fix up the current house, but i think

they are stimulus driven as well lowe's and home depot which i own, i think that will be more important to them in the short-term than rates. it has been a great trade. if you back up, it has only backed down a little from the peak a lot of great things are going on that are the balance last for this trade with the stimulus i think lowe's and home depot will be fine. >> tim >> existing seaales were at a 14-year high the tenure could go to 1.25. the issue with the home builders are supply issues. existing home sales. the velocity of home ownership of changing hands and housing

loan rates, that is not going to end soon and we haven't gotten into the secular trends that may be going on. different for home builder than some of these home improvement stocks and i think those look strong still because the valuation are not strong to say that the housing market is under pressure -- and i don't think you are or guy is. we are talking about sensitivities here, but i think we have a way to go on the long end before the housing market struggles. >> coming up, mining, what got it surging to a high and later, tim has to get on the wait list for his favorite car "fast money" is back in two.

welcome back to "fast money. freeport rising. copp copper sales up. the resource name dr. copper tim, you have been talking about

the trade for quite sometime they also raised the goal for gold molybdenum >> i think you are close enough to copper shortage all of this home building. but i think you see a resurgence and copper prices could go higher freeport has gone through a lot of tough years the gold exposure and copper exposure are so important to a balance sheet different than it used to be u.s. steel as well there have been bad days, but i think there are better days ahead. >> bonawyn, are you on board >> i am. if you look at the balance

sheet, a swing allows it to address that that is a hole that needs to be plugged. from a technical standpoint, carter would be proud. it has went from 4 to 18 i am on board. market is strong >> this is a classic name we have brought back, sign of the times. >> it should be over 20. it's definitely something we have talked about. freeport-mcmoran and u.s. steel. since you brought up molybdenum, i want to say you in your line of questioning, you took down the market about seven or eight years ago. >> you are talking about rare earth, that was a long time ago.

>> it was a great interview. >> we are headed to hot trades >> thanks for bringing that up, guy. >> let's stick with the metals tonight. don't miss "mad money" tonight he will be interviewing leon don't miss that at the top of the hour up next on "fast money," traders betting on a path for american express we will bring you the trade later. we count down to the final presidential debate. the market telling two completely different tales we will explain when we return supermarket gives you the most bang for your buck. something else that's good to know. if you have medicare you may be able to get more benefits without paying more through a medicare advantage plan. call now to

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j welcome back to "fast money. we have one more marquee report before the week is over. american express they could have a big gain bonawyn, take it away. >> the interest is 1.5 times one. a bit of a mix

but the option volumes are about 6.5 times what we typically see. there is an implied move of about 3% compared that to about 1.7% average earnings move. what stuck out to me was 1500 of the january call spreads were bought just over $2, putting your break even about 13% higher than stock i think there is a trading position that allows you to take advantage of several catalysts, earnings projection and the debate you are risking about $2 to make about $20. that's why i like the trade. i think it's about more than just tom's earnings release. >> that is tomorrow at 5:30 eastern time coming up, we are just 12

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welcome back to "fast money. squaring off in the debate before the election. here is what was said earlier today on squawk box. >> the election is obviously a really big deal. it has huge impact on the markets. i think there are so many things around it that i think there are a lot of false narratives around what will happen in the election in terms of the impact it will have on markets. it's going to be really interesting to see it play out over the coming months >> we also heard from boaz

winestein. he is ringing the alarm about volatility he is seeing heading into the election. what does this mean for your money? let's bring in chris white great to see you again >> great to be back. >> why do you think the markets are not pricing in the volatility that the equity markets see? >> because this is exactly what the fed designed in boaz's statement he talked about the disconnect in terms of the historical relationship, that's what you would expect when the fed starts buying bonds in the secondary market in june. it took a while, but this is a natural reaction when there is a buyer in the market. >> this is his kwoelt.

he being knowledging that the feds have been holding this market up. but he said if the second wave of infection is worse than people think and the contested election, do you think the fed will be in the market to stabilize the market if any of those scenarios come to fruition >> the fed absolutely will be there. they are looking at the corporate bond market as being at the heart of the u.s. economy and to keep unemployment rates low you have to keep allowing companies the ability to borrow and borrow cheaply the fed has a lot more bullets in their gun they have only spent about $4.5 billion. clearly they have more money to spend from a liquidity standpoint and overall value

standpoint >> i had a slightly different number, but the point was the same, that the fed hasn't used very many bullets so far do you think if things got bad they would step in before it got bad or wait to see how bad it gets >> how it gets in the market is indicative we are talking about what the fed will do. it's difficult to predict what they will do, but from what they have done in the past, every time there has been a slight hiccup in the market, the fed starts charging in now that they are fully vested into the bond market, i can see them continuing to buy bonds the same way japan has continued to buy corporate bonds for years. while i expect what boaz is saying i think it's dangerous of trying

to find a time when markets unwind when you are doing something like this where there is no historical precedent >> you are saying there is a disconnect between the fundamentals that would typically drive a bond trade so bonds are no longer a good clue to investors of the financial health of a company or sector >> absolutely. a lot of people have made good money this year in the corporate bond market. especially if you were a buyer in march as soon as the feds said they would step into the market, they started coming back and that was without the fed spending a dime. the market can remain ir rational longer than you can remain solvent if you are going to try an investment strategy waiting for the fed to quit, that sounds risky to me.

>> it's tim. i afree -- agree. we have spent the last ten years. so if credit spreads are tight and don't express fundamentals because the fed is there so for whatever reason, shouldn't tighter credit spread mean that equity markets should be going higher? >> well, this is something that's a longer conversation over a decade we have seen companies use cheap credit to buy stocks, to buy their stocks back they have been doing that for years. they had to stop doing that in 2020 or pull it back because a lot of companies in industries impacted by covid-19 have to remain solvent there is a wall of corporate debt maturing in the next five

years. normally without covid, companies would be refinancing, but the cost of credit is absolutely going to go up for a lot of these companies in some cases will spike default. that's another reason i think the fed will be here in a big way because it will start to trigger a massive correction if somebody doesn't help these companies borrow and refinance on these loans coming due. >> that's pretty scary stuff when he talks about a spike in defaults >> he is talking my language tim in the conversation as well. remember when we talked about from the princess bride and how they got by on reputation alone? chris's point is that. they haven't had to do anything in the bond market just knowing they are there has inflated this asset group. i would submit the fed is

insolvent. but if you can create money out of thin air, it's a wonderful thing. i am in the camp that it's trying to tell you something >> coming up, presales surging for g m's ev hummer. ♪ ♪ for skin as alive as you are... don't settle for silver ♪ gold bond champion your skin united states can't easily get to a doctor or afford the treatment they need. that's why goodrx has built a leading consumer-focused

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final trade sponsored by -- sold out that is right. the new gm hummer is already sold out the website saying reservation full for the super truck set to go into production next fall we have been talking about this for a while, days in fact, and i guess there is appetite for these hummers. >> the prospect of an ev hummer has people worked up why not. tesla hit and said they were going to build a plant in

tennessee, what do you think that would have done they have been working at this for a long time. gm is breaking out they have done nothing for five years. it is an extraordinary move. >> it is good news for gm. let's go around the horn >> if it is not gm, let's go with ford. and a big rock toeber fest tonight. >> i fixed my light during the break. hopefully it looks better. bank of america. >> i am glad you mentioned the light. has anybody noticed that where karen is it's light outside and where guy is, it's pitch black bonawyn. >> keep an eye on that $50 technical level. if it holds i would buy more if it rolls over, let go

>> guy, are you on a set supplies and you flip on the light and it goes -- >> no, no. although i just heard from kanye, he wants to come on the show in a couple my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. just trying to make you some money. my job is not just to entertain you but educate and teach you. ka call me 1-800-743-cnbc or tweet me @jimcramer. again, the