something new. it seems like a quasiretest of the september lows >> we will see if pintrest earnings bode well, that might be good for the s&p tomorrow we will have to see tomorrow we have already flushed out a lot of the signings. that does it for us. i'm melissa lee and this is "fast money. tonight, a brutal sell-off rocking wall street with the dow dropping 3.5%. taking every style of stock, even goal finishing in the red on pace for the worst finish since march. germany announcing drastic

action, announcing a four-week shutdown of all restaurants and bars and france requiring people to remain in their homes except going out for essentials and here in the u.s., a new round of coronavirus a hit to the economy because of recessions abroad. guy, what do you say >> it's fascinating. the market hasn't cared about a lot of stuff you mentioned except for this week i have been wondering why the market hadn't been selling off one of the things i was saying was it was stuck above 25, but the market didn't care so my views were dead wrong. now the market cares i will paint a rosy picture tomorrow tomorrow they closed either side

of 40. go back and look i think june 11th it popped out at 40. you could potentially see a washout tomorrow morning down to 32.09 which was a september low. maybe close off those lows some huge earnings from these companies, maybe it will be the mother of return gains friday. i think 32.09 is the likely place of support on the s&p. >> today was shocking, tim, but you expect more? >> if you look back to the levels we peaked in march and don't weave in the volatility around the election, you could make an argument we could see a spike double what it is here the context of what we can understand about the virus means

i don't think we should re-create those numbers, but what we don't know about the market and what's ahead of us, and without getting too wonky, we don't understand where people might be positioning going into this i think volatility has to go higher because of the apex of the round two or late round one of corona is not with us we are going into the biggest day in earnings on thursday. if you think about where we were last quarter, every one of these companies beat the bar and destroyed their numbers to the upside the bar is very high the leadership has never been more needed by the market. i think you have concerns. my glass half full and my rosy look is that it is still here. the market has been here before.

3200 takes you back to the june height or where we have been at times and that's a 10% correction the dynamics where we are around covid and lack of fiscal, i think markets and a lot of players have decided to sit this one to the side. >> your take bonawyn >> you mentioned it today in terms of gold as well. things we viewed as things you can hold for historic value are also being sold. it's implying about 2 1/2% move on an annualized basis they just seem to be catching up to that. you i think you have to get used to an increase in volatility in the interim.

>> karen, what do you use as a hedge these days >> i don't have a great answer to that except that i am selling some of my hedges. wife seen volatility spikes before, not that it can't go substantially higher it can, but to me there is a lot of fear priced in already, so what i am trying to do is sell some of the things that are hedges, so s&p puts, for example and i have a list of things to buy. i didn't do any buying today, but on my list is disney and ups and terrible stock reaction which guy thought would happen fed fedex, i already own some. a resurgence is not good for t.j. maxx, but longer term this

is an extraordinary company and you don't get to buy at this price very often it feels keshl when things look ugly, but i just keep sell some every day no the volatility. >> this is the third day of losses for those conditioned to buy in the dip, this might be a rude awakening. what is your message we didn't get much of a bid to bonds. nothing worked today >> listen, you know this better than anyone. we have seen days, weeks like this over the last year and a half before. the hedges you spoke of haven't worked and then a few days later they start to work people who have waited and bought when the market sold off to this place have been rewarded i think the fed is still your

friend and into tuesday i think there will be a concerted effort to see this market stabilizes in some fashion that's just me trying to read the tea leaves you have to take emotion out of it on days when the dow goes up 500 points, everybody deems it to make sense and days like today it's panic it can be panic on both sides and fundamentally driven on both sides. i am glad karen mentioned ups. i didn't think anything would happen but i pointed out they went up in a straight line from the summer and needed to have remarkable numbers for that to continue i thought we would see a pullback and here we have it today. >> we have some news on regeneron. let's get details. >> we had already seen initial

data on regeneron suggesting that it worked to lower the load in patients recently diagnosed with covid-19. we are seeing more from this clinical trial for 800 patients overall with recently diagnosed covid-19, the study is showing this drug reduced the risk of needing to go to the hospital or have other medical visits by 57% compared to those with pla seebz. with patients in higher age, other body risks, the drug reduced the risk by 72%. if you could reduce the risk by treating people early by 57 or 72%, that would be a big difference in the disease.

the problem is regeneron only has 57,000 doses right now they are waiting for approval by the fda and are ramping up for production to get to 300,000 in the next few months. >> this is the same antibody treatment for hospitalized patients, no >> this does not have emergency use authorization at all this is the cocktail the president was treated with this is for people who have not been hospitalized but diagnosed with the disease they are waiting for word from the fda. eli lilly is in the same position it was shown not to help people in hospital settings but it could be helpful early

and regeneron shows it does. >> that could be helpful psychologically if a treatment existed to prevent you from getting to the point of a hospital, or reduce your chances. >> that's right. more signs of a vaccine as opposed to a treatment think about some of those first announcements for the market when we were not far off the apex of where we were in the early spring into summer the market's response to those events was powerful. the market neepds those. they have been given the sense where there is progress on multiple fronts on vaccine and testing, but the news overthe last couple days europe in lockdown today

that's exactly what the market needs and i think what our country needs. >> you are seeing the binary nature of what is going on this is a recession and rebound. any news will lead and guide the market in terms of what the psychological response will be you are seeing the market lockstep you are seeing it with not only what is coming out of the earnings but white house days like today reinforce that >> today's big sell-off. dan is joining us. great to see you what was today all about, dan? what's different today versus seven days ago >> not much. i think this is more of a

sentiment driven sell-off which is to be expected. i think we all knew coming to this part of the year uncertainty would be daunting. we listen to the experts that come on cnbc, we knew that cases would be picking up at a rapid clip coming into this part of the year the market is extrapolating day-to-day very little news on vaccines, antibodies and, you know, the big uncertainties come down to covid and stimulus unfortunately for the market, both are going the wrong direction at least for the market >> in terms of the european lockdown, does that foreshadow

the possibility that perhaps the u.s. is headed in that direction or even if the u.s. itself is not headed in that direction, that it will feel the hit economically from economies tilting in recession in europe >> yes, i think that's right i think scott gottlieb was on cnbc today talking about how europe is three weeks ahead of us the extent of the lockdowns, i think we will take a targeted approach but the reality is this pandemic and nature of the virus is self limiting there is already a seasonal poe nent -- component it will pick up. the more you recover, the more people are interacting, the more you have to step in to shut things down. it puts a cap on where people's

expectations can be for how fast we can recover, at least until we get past the winter >> dan, it's karen thanks for being on. would you wait for a specific level of the s&p before you add to your positions in the market or would you buy right now >> we don't tend to be day-to-day traders you look 6 to 12 months out, i think it's a reasonable base case to assume that profits will be higher. i think you want to have stuff in your portfolio that will benefit from that recovery but i don't think we will get a lot of certainty in the next few months my personal view is rather than take -- most of the market has some sensitivity to fiscal stimulus or covid. there are areas of the market you can go where that exposure

is less. china doesn't have a fiscal stimulus coming up and they don't have an outbreak of covid. you can have exposure to areas seeing recovery without these market driving trends. that, to me, at least for the near term is a bit of a better risk-reward. >> dan, it's tim one of the things that will be part of the market setup is where we come from part of the recovery that happened off of march lows was not just policymakers rushing in, especially the fed, but we are seeing significant amounts of cash out there. where do you think the market is now especially as we go into mega cap tech thursday where these have been the places to hide out >> i think overall it is a mixed

story. it's hard to make the argument based on all of the data and sentiment that people are over the moon, but they are over the moon and bullish in certain areas of the market. these are the names you are talking about. our view has been that what people don't realize is how incredibly berish it is to only be bullish on this handful of stocks those were the big winners during the covid crisis so their performance was justified. but as he would turn the corner, why would you own those names when you can see double and triple the profit growth over the next six months. i think that's where sentiment is misplaced for us we could continue to be under and wouldn't add i think a lot of people want to

add on this weakness, but this is not the area we would add >> dan, thanks guy, i thought it was interesting. think about how incredibly bearish it is to think about how many people are bullish about a very small piece of the market >> and if you listen to the great dan nathan, at risk reversal, he doesn't say it in those words, but mentions it all of the time. in one way, shape or form, we have talked about it there is a handful of names carrying the load. i know you are a huge abba fan yes, if that song comes on i turn it up and tomorrow is the waterloo for the market. i think you will get decent numbers. i think 40 might be a top end term and maybe tomorrow we get the bounce everybody wants

coming up, the chart master. but first check out the after hours action for pintrest.

welcome back we have a busy earnings night for you with pintrest trading higher in after hours. a monster move for pintrest. julia? >> pintrest shares skyrocketing after beating expectations with revenue accelerating to 58% growth monthly active users also surpassing projections by 5 million. a total of 432 million internationals driving that user growth 46% increase there pintrest up about 29% in after hours trading. one thing about that user growth the company said they added 4 million global users who were

looking for inspiration around apple's operation upgrade. pintrest indicating those users may be more likely to turn the company's increase in fourth quarter revenue which exceeded expectations of 35% in the third quarter. a particular strength from small and business advertisers and large advertisers. also seeing benefit from their investment to bring shopping onto the platform. >> pintrest saying it is benefiting from the ad boycott earlier this year. it's unclear how long that boost was and how long that boycott boost will last. but they see it as a long-term

advantage. >> thank you a preview of what we could expect from pintrest and snap. guy, i know you follow pintrest closely. there is a lot to chew on in terms of upside. >> kudos to rick heisman 340 million they deep to be international. that's 21 cents per international user if they can figure it out better, they are off to the races. in the u.s. it's $1.03 what is not to like. i am wrong all of the time, but this is one we got right this is not a bad playing given

the environment to take some money off the table if you have had a ride on pintrest you should check out my pintrest page because it gets better by the day. >> that's odd seeing as how you haven't posted in years. >> you are right, that's very odd. >> maybe it's like wine, just age. karen, the implication is that there is negative brand association with the likes of a facebook >> right i recognize that, but that revenue acceleration is in this quarter. the revenue acceleration for next quarter is phenomenal

as a facebook owner, i am happy about that i think the pie is growing i am happy to see facebook down. we will see about earnings tomorrow and i think they will be good. >> phil? >> the reason ford moved higher was because these were stronger earnings than expected in the fourth quarter in april production was shut down in north america and a good chunk of europe as well. and in the third quarter they beat the street earning 65 cents a share, well above expectation. revenues stronger than expected. truck and suv demand it's not just ford, people want struks and suv look what is going on when you try to buy an f-150. this is a company that has not

done well when it comes to execution over the last several years. break even to a loss of $500 million. that may be disappointing to some people, but keep in mind they have three vehicle launches coming up in the fourth quarter, they have the new bronco and well as the mach se. jim on the conference call said we are planning on doing that in the spring one last note regarding jim farley having listened to these going back to the hackett area, different with jim farley, night and day. he said we have weaknesses and this is what we are going to address. there is a clear plan for wall

street it is night and day in terms of the tone of the call itself. >> phil, thank you phil lee beau in chicago >> should ford get rerated with the new ceo? >> that's great reporting by phil because i think he is hitting on key things especially with the newly designed f-150 which is the most profitable model of any car in north america by any auto maker. and the ford bronco, which is probably a 2022 story. it's very exciting the fact they are doing their best in european operations, and really doing their best to get out of them. the year over year third quarter revenue was something that was not expected to be positive.

it was up 3% >> coming up, a lot more earnings coming our way. power traders are setting up for those megareports. and one big rkwahemaettcr says we are entering into a perfect storm. we will explain when we come back

welcome back to "fast money. if you are just joining us, it was a major sell-off the dow, s&p and nasdaq tumbling let's bring in jonathan golub. you think a perfect storm is coming this has to do with covid

getting worse. what do you for sooe >> if you take a look in the u.s., we have gone from 25,000 cases per day to 75,000, a trimming tripling of cases. this is before we started gathering for thanksgiving and christmas. before daylight savings time and harder for us to get outside if this was by itself it may not be a problem, but it is quite clear that not only once we have a fiscal deal to bail out small companies to bail out people before election day, we are not going to get this until after inauguration day, so those won't be available until february or

march. that means if we see some economic hit, the safety net has been taken away. i am not saying this will play out in a worst case because i don't think it will. but in the near term the risk is to the downside. europe is acknowledging that their numbers are picking up more than the u.s. and they needed to take action which aren't as bad as we saw in march or april, but they were directionally in that direction and that really spooked the market and rightfully so >> in terms of what is going on in europe, jonathan, let's suppose that here in the united states things are steady eddie in terms of the increase in positive cases could the hit from europe, could that impact what we are seeing here in the u.s. in terms of our economic recovery? >> sure. first of all, if everything -- i

don't think we are going to have a huge dichotomy between everything is perfectly fine in the u.s. and things are rougher in europe, but if you look at part of the reason we have had this cyclical success over the past ten months and you have seen the bonds having risen. it was because we are seeing better numbers out of china. if you take all of europe numbers combined, much more important economically than china alone. >> there is a belief that the fed will somehow save us because of the lack of fiscal stimulus do you believe that? >> when people ask me the question, i say let's assume you are a small business and can't pay your bills and you have to go bankrupt, how important will it be that the feds are going to buy another 100 billion of

tenured treasury they say i don't care. if i can't pay my bills, i can't pay my bills having the banking system healthy has worked well, but without support for the small business and the guy who may lose their job, the fed system will have very little impact in the shorter term longer term may be different >> you mention the small business we want to touch on the market versus economy what will it take for that small and medium business to get an uplift less bipartisan fighting -- i am not going to put words in your mouth. what will it take to see what has been -- >> let me spin your question a different way.

why have big companies been able to hold on when the small guy has had a tougher time much if you think about things that have happened in our personal life. you can't go to the gym so maybe you buy a peleton. you are stuck at home so you are buying a laptop because you have to work from home. you are fixing up your garden and you go to a home improvement store to buy things. those are big cap names. if you then say who has been hurt, the local dry cleaners, the carwash, your local restaurant it is somewhat random and unfortunate that this bifurcation is not about what is the fed doing and the like it really is -- now if you look outside the u.s., they don't have the same benefit. those big companies i mentioned, not only are they public companies, big companies, but they are almost exclusively

american companies so the pain is not being spread around equally and fairly so large cap u.s. companies have been on the right side of this trade. >> jonathan, great to speak with you, thank you there are a couple of interesting things that jumped out at me, karen jonathan made the case for large cap companies, home depot, et cetera that are on the right side of the trade and the notion that the government can't solve a solvency issue when it comes to jobs main street produces and holds, it can't help it if a restaurant is going belly up the fed won't be there >> the small business can't access the credit markets like a home depot who doesn't need the money, but could access a lot of

money almost instantaneously that's an excellent point. can we see a more targeted stimulus that would have bipartisan support and leave the rest for later >> i would think politicians from each side of the aisle will be under pressure to get something done >> the shame of the sell-off is that it didn't happen earlier. maybe this would make people in congress he congress could help get help to the american people. >> if you think about the winner taking it all seems to be the most important thing as far as i am concerned, the dynamic for markets right now is you did have a number of companies that pulled forward.

you had companies like best buy and apple that were beneficiaries of the first round of stimulus. the question is when is that next stimulus coming and are the companies that have already been winner takes it all, something that can do in round two i think the markets have to wait and see, and right now i don't see the markets getting to the upside this is the new iphone 12 pro with 5g! and it's on at&t, the fastest nationwide 5g network. now, new and existing customers can get our best deal. really?! mom! at&t has the deal for new and existing customers! i will. so what'd she say? it's the wrong person. it's a guy named carl. but he's very excited and on his way. word-of-mouth advertising. it's what they did before commercials. it's not complicated. everyone gets our best deal, like the amazing iphone 12 on us.

joy welcome back to "fast money. the s&p just handed in its worst day since june 11. names to consider. carter with some safety trades to get us through this carnage >> a couple names. but let's talk about what you just said. one of its worst days in quite sometime how bad? meaning let's find all instances in the history of the data, 1927 to present where the s&p has

dropped more than 3 1/2% there are 214 instances out of, let's say, 23,000 trading sessions a probably of occurrence of about 1% the data looking forward, one week, one month is almost 50-50, so there is no insight what tomorrow will bring statistically, but we know it's rare to drop 3 1/2%. but it's all about tech. tech being down 3.4% is what drives the market. if you look at all data 1989 to present when the tech sector was created, every single trading session and look at them when tech is down, the s&p is down 82% of the time when tech is up, the s&p is up 79% of the time.

so today tech was down and the market got smoked. how far could we go? anybody's guess, but moving averages do matter 3155, about 3.5% lower than we are now, that would be about 12% dough kline. we had a 10% sell-off in the september period and will we have this one back-to-back it brings together the concept of a double top. as to where to hide. you can pick any number of names. i have three the first is ge. it has been basing for quite sometime today it was green today that's a feat in and of itself everything was red practically and ge just came out with results that were happy, or less bad than would be expected the second would be chubb, also

up today a bearish to bullish reversal, a lag ard that has started to base and is showing tremendous pressure across the market the next is nextera energy it is as close to an impervious circumstance as one could find in the market. >> carter, 3155, if we don't hold that, what is the next level? >> there aren't really levels so to speak meaning he would quickly ascended just as we quickly declined the pandemic declined, 30% decline ever then an equally impressive ricochet, fed assisted or not. just as you can ricochet quickly

from a decline, you can also plunge back down quickly again here is the thing, if a company is widely observed and followed as microsoft where 40 or 50 analysts, their livelihoods depend on getting it right and they collectively believe it is going to earn 1.50 and it comes in at 1 $$1.82, it shows how ve it is. the market can surprise 40 or 50 experts. >> guy, what struck your fancy >> carter, if you look at chubb, you have tremendous earnings growth

look at today on a miserable earnings take. is this a tell i am a believer in tells does it trade up to the june high which i think was about 146. carter mentioned a downside in the s&p. we look at similar levels. i look at chubb and say on a bad day it had good post earnings. maybe it has more giddy-up >> coming up, how llwi these tech stocks fare at calvert, we know responsible investing is hard.

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welcome back to "fast money. we have a huge slate of tech earnings on deck tomorrow. amaz amazon facebook. apple. mike >> unusual circumstance with all of them stacking up their earnings like this the markets are looking for big moves for big stocks that have already moved quite a big amount apple, the options market is implying a move of about 5.5%. amazon, it has moved about 4.6%.

it has an implied move of 5.9% facebook even more -- and google aka alphabet, the smallest of the bunch about 5% these are huge companies and measure disproportionate shares. these are billions each. so we are looking at big market shares >> wow >> how do you use implied moves particularly when we have seen big moves already, bonawyn >> the implied moves, the

earnings is a coin flip. we have no way of knowing. you have experts who do this for a living and you see beats and misses so it will be only as good as the data inputs. but what they will tell you is normalized moves when you see those outside the range, that to me is where you start to see buying and selling points >> karen, you own a couple in the group reporting tomorrow which one will you be following most closely >> it's hard to follow four things at once probably google, facebook, apple and amazon in that order because i don't own amazon it will be crazy >> tim >> i still think we have a chance to get to 245-ish on the triple q which would be a pullback that should have been carter's

segment. my view is on apple. i have no issue being an investor of apple all of way through this apple has been money, money, money. but i think you have to be careful about the bar set from the last earnings profile into this one i don't expect the market to love the numbers tomorrow from apple. >> guy, you are smirking, why is that >> because tim is just going full out abbott tonight. i think out of all -- i loathe everything about facebook other than the stock, and it proved itself when it held at 2.45. a few weeks ago we did a power pitch for solar and there was something in the air because my man fernando can rock that

sucker and first solar had a monster move so wanted to give my man out a shout out. >> i thought of bonawin when i saw the earnings after hours for all who followed you into that stock, what are you doing >> they are treads into murky waters following me. jokes aside, i would be looking to put a stop in here, mid 80s before i made the run higher it looks like the market is trending lower be ready to put cash to use. i like names like run, solar power, blue sweep is well positioned i think there is upside in the name >> let's talk about tomorrow karen, you flip on your screen tomorrow morning, what are you looking for? >> i am looking for the vicks to

move one way or the other. the whoosh down after that we had good earnings tonight we had the good news meg told us about for regeneron. maybe that changes sentiment a little i don't know but i think the vicks is what you have to keep your eye on >> i want to watch oil also. oil has been one of these canaries oil is what really let us down it's not the reason we went down, but it led us down back in february i want to see some recovery in some of the mega tech names at least going into the numbers >> i am afraid we are not going to get it, but i think that's what the market is looking at.

>> i think the u.s. dollar is misguided. if you are bullish, you hope to see the s&p coming in 25 or 30 lower. to karen's point, maybe goes higher or even lower, i think that would be a tremendous setup into earnings tomorrow night >> bonawyn, what are you looking for tomorrow morning >> as carter mentioned, 3.5% move down has happened 1% of the time that is what is guiding me as well as technical levels we are uncomfortable entering and exiting stocks

brutal day on wall street as we await earnings from mega tech tomorrow the dow finished down 943 points s&p with their third straight day of losses. time for the final trade let's go around the horn tim seymour, what do you say >> you know that abba is one of

the -- >> abba yeah >> don't take a chance on me take a chance on tencent i think it is one of the great companies in the world that i think has been held back by china. >> that was actually a good one. >> thank you >> karen >> we followed the tiffany saga and there was news today they might have a deal. tiffany would win if they went to court but you never know so i sold my tiffany. the name of the game is risk-reward and it is no longer there at just under 130 bucks a share. sell tiffany >> mark it up 2 1/2%, down 4%. peleton has been undeterred.

it is on my watch list >> guy >> meryl streep is a huge "fast money" fan can't do it without cb back to you. >> thanks for watching my mission is simple to make you money. i am here to level the plain field for all investors there is always a bull market some where and i promise to help you find it. "mad money" starts now hey, i am cramer welcome to "mad money. welcome to cramer america. my job is not only to entertain but to put things in context call me or tweet me @jim cramer.