welcome to this special 6:00 edition of ""fast money."" jim cramer enjoying some well-deserved time off tonight tonight a flood of hiring announcements from retailers to financials to folks manning the supply chain could this hiring spree hit a speed bump if covid cases keep rising. plus, the crackdown in china. could the regulatory hammer in beijing go beyond tech stocks and what will be the ripple effect we'll talk to a top em investor. apple is ready to dive

deeper into the health care situation. keeping the stock surging ahead. >> we begin tonight with the countdown to friday's big jobs report we learned that a host of big companies are about to do a lot of hiring. amazon looking to hire about 50,000 jobs. amazon has hired 50,000 since july walmart adding 20,000 jobs and fidelity 9,000 at the same time the delta variant debting the job market according to adp it came in lighter than expected. seems like every day we hear more companies delaying the back to office plans. what does the job picture really look like as we step into the fall let's bring in our senior economics reporter steve liesman. steve, what do you say >> melissa, initial indication the delta variant is dechting but not halting job growth some key areas by a surge in the

virus. that's the down side to the rosie outlook. jobs reports of 720,000. hours worked falling 2.4% nationally they measured that from mid july to mid august. growth declined in every region but fell the most, where well, in the southeast where the delta variant has been the most widespread data from a separate hr software condition, home base, we follow them show declines in leisure and entertainment. growth another potential sign of the drapt at work. that could be the result of travel, con certs, other events scheduled when it looked like life was returning to normal it's been canceled after the weak adp number, goldman sachs lowering its work guess from 500,000 to 600,000. spencer hill saying we have learned the delta variant is exerting a larger drag on consumer confidence, services

consumption and the labor market than we initially expected there are expected to be big job gains in education that may help the overall number on friday. companies continue to experience labor shortage many announced hiring plans. the delta variant could put a damper on a string of strong payroll reports that gave the impression they're heading head long back to normal in a hurry not so much anymore, melissa. >> steve is going to stick around for the conversation. tim, we live in a strange world. >> speak for yourself, mel >> i'm talking about the stock -- not the actual world we live in. >> okay. >> in terms of the stock market where weaker adp numbers, weaker job numbers are a good thing for the markets. we want to see some growth in jobs we don't want to see too much. we want to have powell to have the cover he needs to not start the taper. >> i think if you think about the last jobs number, i've made this point a couple of times so pardon me for stressing it, but that the inflation data and the

payroll number from july were things that came after that fed minutes that we digested ten days ago and really i think a fed that we got, you know, steve has had great conversations with almost every fed governor in the last week and i think we said 6 for 6 in terms of those conversations in terms of those that we're looking to tighten sooner taper -- taper, excuse me, not tighten. i think we have a case where, yes, the ingredients into this payroll number may be suffering from covid data that i think may be a couple weeks old and in fact we've seen some of the covid data get better in the last week. i think ultimately where we are, we saw this this week with a number of major employers out there, not only are they hiring in addition to the announcements you just reviewed but also they're paying wages that are significantly higher and indicative of the strength of the labor market and the shortages that we have some of that, i think, is also just a function of the benefits and getting people to come back

to work and we won't see the kind of job market that we expect to see until you really inspire people to come back to work but, again, as bad as it is for equities, more fed equals more volatility weaker adp, the market liked it. >> liked it to the tune of a new record high for the nasdaq nadine, we live in a strange world as tim had mentioned in that the data lags the numbers so we get the covid numbers, delta variant numbers in real time and we get the data on the economy at a lag so what's a stock market participant to process here? >> well, i think that tim and steve are right here, is that the pace of improvement is going to moderate after july's strong numbers. it just has to happen. it's really because of that wet blanket of slower service sector activity from delta. as you're talking about from here, it may not matter. policy depends on three things

one, the tightness of the overall labor market two, the number of people out of work and we kind of talk about those numbers but the third which i think is most important is the unemployment rate dispersion among ethnic groups while caucasians might be at a 4.8% unemployment in july, have you hispanic population, african-americans at much higher numbers and lows call it september 2019, august 2019 for the two groups i mentioned and, therefore, it doesn't hit the substantial progress limit that -- or i guess objective that we've been hearing about. so that's why i think you can keep megacap growth for now. that's why you saw that going so well today it's going to continue to be able to be bullish in that area because you're not going to see it in friday's numbers. >> steve, you had mentioned before that we would need to see a string of jobs report that exhibits weakness. there's not a lot of time for a string between now and the next fed meeting at which it is expected widely that jerome

powell will announce a taper time line. >> yeah, i mean, i think a number that's below 500 thousand would take september cleanly off the table. it may well be off the table already after powell's speech last week despite what tim correctly said was 6 for 6or so on cnbc television here with interviews with fed presidents or governors all supporting a faster taper one of the things, you keep talking about the strange world we live in, melissa. i'm not sure where we are at now, are we in lockdown? are we not in lockdown is tim seymour playing rock and roll shows >> little bit. >> is it good to go? my band is supposed to open the capital theater next week and we're going to do it some people have their reservations and some people are acting like we're back to normal it's a strange world not just a strange world in the stock market but the strange world of covid we live in right

now. >> yeah, a world which is hard to predict and project steve, thank you good to see you. steve liesman. from jobs to retail, let's check out the xrt. the retail etf has stayed relatively flat over the past three months what's an investor to think? procter & gamble reporting people are stocking up once again on toilet paper, paper towels and staples campbell's up on earnings top and bottom line beats. are we talking about starting to nest in the fall and winter again or will delta fade let's bring in oliver chen for the official. >> it's a trend that's here to stay hardy addresses.

delta has impacted supply chains, that's something we're watching we do like the broad line retailers, walmart, target being multi-targets. target has a big home collection as well as apparel that's a key factor for back to school as well >> oliver, it's tim. you brought up the two places or the two names that have been so divergent, walmart versus target how do you explain that? because as you pointed out, the categories that they operate in, the growth of their digital business in ecommerce, same store -- excuse me, same-day sales pick up the dynamics that have extended at target seemingly are there at walmart how do you rectify that? >> both of these players have really exceptional curbside pickup models. driveup has been benefitting curbside pickup. walmart has 50% grocery

exposure target is about 30%. target is at a 19 times pe, walmart at 22. so from that angle target is a more reasonable valuation, good entry point. the back to school play apparel, that's a key positive for target as you think about walmart, it's a global play as well. and some of the global businesses do weigh on earnings relative to target so the growth profile, the eps is a little stronger at target but what's happening really is the consumer likes these multiple categories, the convenience, the everyday low pricing models and really retail's transforming. both of these are becoming ecommerce plays, market plays, rethinking health care and financial services we like them both. for back to school we like beauty and denim ulta and american eagle is one of the ideas too this will be one of the better back to schools we'll ever see.

>> oliver, i have a question for you. ism data one of the respondents was talking about supply shortages, labor increases and it's hampering broader economic growth part shortages are their largest business constraints they can't fulfill the orders customers want in the fourth quarter. when you look at it whether it's electronic equipment, compliances, components are there places you would be short in talking about denim, denim being long or should we be worried and say people will look past the supply shortages when you think of overall you were talking about home supplies and other things. are there winners and losers we should be looking at >> i think you're 100% right home is a big risk factor. also apparel and women's apparel. there's been problems in ports as well as factory shutdowns in southeast asia as well as india. furthermore, transportation

costs. if you air freight something, it's about four times as expensive and non-air freight is running 30 to 50 times percent higher those are all risk factors it's really retailer specific. what a lot of retailers have done; a, they're getting price increases of, you know, 10 to 20% or more and, b, retailers have tried to get deliveries earlier. that's why we like walmart and target, because they have a lot of scale it's going to be a problem for holiday as well as springtime. there's also increased costs for transportation and freight all of these factors are definitely things to monitor but this is -- >> wait a minute, oliver who is able to get a 10 to 20% increase on goods? like what am i paying 10 to 20% more for >> in stern categories like handbags, capri and tapestry it's look a mixed shift versus

like for like. so consumers that are going to stores are being really purposeful and responding to higher priced goods. we're also bullish on luxury goods because the luxury customer is working in there too and going digital. >> oliver, good to see you. >> great to see you guys. >> oliver chen no one is getting a hand bag on my christmas list. retail is tricky we've cited the xrt. the components, it's a very interesting mix of stocks we don't normally talk about. etsy, buckle, revolve, doordash, they're the top holdings in the xrt. >> the r in the xrt has been reddit as well we've seen disproportionate impact from gamestop in there. if you're looking across the retail space, you know i love my accessories. the pricing power for apparel, it's never been better than i have seen in recent membeory.

i think this holiday season is going to be a bonanza. we've heard it from macy's, department stores but we've also heard it from the likes of the gap and whatnot. i love the story of best buy going into the holiday season. i know it seems we all picked up our electronics going into covid or back to school but, again, this is a story where margins inventory management, they've also developed these recurring services and subscription services around this total tech plan and i just think that we're all going to pay the piper, i mean investors largely especially the broken retail names, some iconic names, l brands, gap have been rebuilt. i think valuations are going to be really difficult to justify as we get into the first and second quarter of next year. i think for now the stocks can continue to run. the momentum is there. the recovery in the businesses with the pricing power and the

margin improvement is why they'll go higher. >> up next, it's been a good year for the banks they've been beating the markets. is the fed about to take the boom out the special edition of ""fast money"" will be right back growing up in a little red house, on the edge of a forest in norway, there were three things my family encouraged: kindness, honesty and hard work. over time, i've come to add a fourth: be curious. be curious about the world around us, and then go. go with an open heart, and you will find inspiration anew. viking. exploring the world in comfort. new customers get our best deals on all smartphones. that's right.

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they think the fed is going to act sooner that's a more safer bet if that's going to happen overseas we think there's accelerating gdp growth. therefore, we might be able to see the longer ends of the curves going up, versus the shorter end, which obviously help financials. >> tim, i'm interested in what your take is since you are a specialist in emerging markets but look at things globally. would you go overseas versus the best fangs here? >> nadine is right to point out credit quality and valuations in other parts of asia and some of the korean banks, even some of the european banks haven't looked this good in a long time. i'm not sure where we are in some of the cyclicality of those markets vis-a-vis the u.s., so, in other words, what's on a relative basis a better economic backdrop i will say that when i think of u.s. money center banks, i think

of where the market is currently positioned, i think they are an incredibly interesting, call it a hedge, for clearly, you know, tied to higher interest rates correlation of clear as you've seen with the 10-year and the money center banks even in a slower growth environment, these are banks that have balance sheets that never looked better. the capital return plans are more aggressive and are allowed to be more aggressive than they've seen there are still reserves to unlock's amazing to me the banks get hammered and they are punished when they throw the excessive reserves on like they did in the second and third quarters of 2020 i look at net interest margin increases as being gradual and i do look at the 10-year and say it's hard for me to believe unless the fed oversteps their bounds and we have no history of that, we have no history of that maybe 2018 and they quickly

reversed the field the fed doesn't get ahead of itself, i think you have a case where banks can continue to creep back up on the net interest margins credit quality largely for the group is fantastic i sleep very well with these banks and i think less tactically than these are long-term holdings until i see something change in terms of their structure, they remain long-term holdings. >> let's drill down deeper on the financials with gerard cassidy. what are some of the gold jie locks in the area in terms of the economy and more specifically interest rates? >> good evening, melissa i would say that the goldilocks scenario is one in which, you know, the u.s. economy continues to grow, possibly next year 3 to 4% we know this year's growth is excessive and it's not going to be sustained of course but in that kind of environment if you start seeing a steepening of the

yield curve and you get to see the 10-year rise above 2%, 2.25% sometime in the third quarter of next year and then the prospects of the federal reserve may be having to move faster on the fed funds rate if you start to see that, that would certainly be very favorable. here's the other part of the goldilocks scenario as you pass which is longer. i think what you're going to see in 2022 is as the supply chain problems start to ease up, the inventory situation in this country is very, very low as we all know as companies restock inventories they'll be drawing down on corporate lines of credit. in addition to that you'll see corporate expenditures grow. continued growth in the economy, steepening of the curve and continue earning and acceleration of commercial loan growth leading to total loan growth that would be the best for the banks. >> you mentioned the commercial

loan growth. what we've seen is a delevering broadly of the u.s. consumer and so, you know, what sort of accounting will take that consumer back to borrowing in the size and fashion that they did before >> it's a good question because we did see a delevering of the consumer as well as the commercial side of the house as well what i would say is the consumer has already started to pick up its borrowings we all see it in auto loans. credit card receivables are starting to bottom as the savings rate starts to come in close to the long-term averages as the stimulus checks are used up, consumers i think will come back to their traditional borrowing habits we saw this same type of pull back after '08-09, see it fall to below 4% in 2022, 2023, this will enable consumers to have

confidence to take on more debt and as a result, you pointed out melissa, the debt levels of the consumer are quite low relative to history most importantly, debt service is at record low levels as well because personal income has grown but also the low interest rate environment has helped consumers make those payments. >> hey, gerard, it's tim changing gears a little bit. the investment landscape in finance but specifically in fin tech and defi has been incredibly exciting and not necessarily hinged to any multiple not price to book that we've valued banks at. i'm just curious how you view the strategy of some of the money center banks in a world where at times at best we talk about m&a and the aggressive move into fin tech and who's best positioned? one of my favorite trades is around legacy companies in other

sectors who are starting to get a tech multiple as they're forced to change their business with the times. >> tim, it's a great point technology spending is incredibly important for the banks. this industry has been consolidating since the 1980s for economies of scale you might recall back then we had about 18,000 banks we're down to about 5,000 today. even the most recent really big deal, the merger of bb&t and sun trust to form truist, one of the drivers was needed for technology i think what you're going to find with the banks when you take a look at what they're spending, jpmorgan around $12 billion, bank of america around $11 billion, these companies are spending enormous amounts of money on technology to be able to be very competitive they are bank of america has some of the best digital capabilities of both fin tech and commercial banking. i think the money centers are well positioned to capture the growth in digital banking

because they're very good at it. >> gerard, thanks. rbc. nadine, you like european banks, not u.s. banks would you go fin tech u.s. >> for sure. we do have fin tech u.s. we have fin tech abroad as well. one of the things that worries me and what gerard was talking about, we're looking out to 2022, 2023, that's a long time for a portfolio. i always like to look at the next 6 months what can we do here today and what you have in europe and abroad, especially in japan, is you have businesses, so these financials, not just fin tech, but the banks, who can add to the dividends, who can do share purchases. what we've found is when it's u.s. inflation, that's going higher, they tend to, this is europe especially, their financials do better there that's where we're looking for opportunity trying to play, call it, a few different drivers in one place. yes, we have lots of different plays in fin tech.

that's really where i think the future is. coming up, natural gas futures jumping. the administration's push for clean energy led many people think of solar but the tan etf is down 16% this year. a lot of energy coming up on this special edition of "fast money. baaam. internet that doesn't miss a beat. that's cute, but my internet streams to my ride. adorable, but does yours block malware? nope. -it crushes it. pshh, mine's so fast, no one can catch me. that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that?

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another stock in the red year to date is sunrun down a whopping 32% year to date the recent dip in prices why jpmorgan is adding a solar panel and battery company to the top ideas list jpmorgan things sunrun can soar 90% in the coming months to deal with any supply shortages. jpmorgan's price target is 86 bucks but it's not just jpmorgan have you wolf research putting out a bullish note for sun run as well as other companies like enface, solar run and solar costs have dropped more than 70% in the last decade and the biden administration vows to accelerate that trend which could bode well for this sector. >> thank you, kristina there are a lot of places to go whether it be the consumer facing or the makers of the parts, et cetera, that go into solar installations. nadine, do you like this sector? >> you know, we stepped away

from pure play solar luckily obviously. we have positions across the sectors from the green movement if you call it broadly, that could be improving building materials, wind and water utilities, materials used in ev cars, energy companies, things like nesting, energy, legrand, industrials. it touches on solar but not pure play solar others like orsted, rwb and borlex we're trying to find other people that benefit from significant spend that's going to be going on there we don't have to just spend on solar. we're trying to diversify a little bit on the drivers. >> yeah, timm? >> i kind of like pure solar here i recognize that a lot of this space is totally subject to policy and so by the way, one of the places where policy, whether it's china's policy or our policy or just the geopolitical

tensions that exist, some of that really benefits purrsolar that picks up the slack on a lot of these bookings. you're seeing the removal of china supply our concern around labor used in these factories, et cetera, is keeping some of the supply out of our country probably an important stand we're taking here on that. and i think it benefits first solar. so i do think they need policy support. i think you do need to see asp prices stabilize and maybe move a little bit higher, but this is a company that is generating passion. at one point with this name whether they were recast generative i think they are not a cheap company. i think part of the investing in the space has been a function of the biden administration's approach here and by 2022 when i think they have to make new

policy announcements as it treelts tariffs and where they're going to protect and give incentives to many of the big solar manufacturers, that's part of the trade here i think there's very little reason to think they won't support them. >> we're about to go globe trotting now the time to look for opportunities abroad plus, before long will you -- will your apple watch be able to do a lot more for your help than count steps and check your heart rate? according to "the wall street journal," the answer is yes. or have the writer behind the sty. he'll join us live

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welcome back the nasdaq ending the day higher led by a pop in some chinese

internet names including pinduoduo. baidu and the company is going a step further this week with more crackdowns on its own companies, the latest being the video game industry tim seymour, i know we talked about this a lot some of the parts analysis, there's fundamental value, real business, growing population what do you say to those people who make those arguments >> if i told my kids three hours only a week and, you know, on weekends for video games, i'd be kicked out of my own house so, you know, you have a dynamic here where, again, china's need to control social dynamics and those are really about maintaining, you know, a power base i don't think there's any question about xi's power base that makes this leadership different than what we saw 20 years ago. they have taken steps to cement

power. it doesn't mean that they have to care about western investors. what i've also said though is china does seemingly care about western investors. with great irony they opened up asia share futures traded out of the hong kong exchange and part of their recording of the nsdi to become a bigger weighting in the overall indices. the msci is turning a little bit of a blind eye on the havoc they're wreaking in the adr land some of the bounce we've seen has been i think, you know, easy to do especially with some headlines that have been a little bit more, you know, benign but em more broadly made it a very interesting place here you talk a lot of the macro setup that could be great for e.m. rates stay lower for longer. maybe the dollar does or does not stay higher. if it doesn't, e.m. is back at the 200 day.

this chart looks absolutely dead and broken and, in fact, set new all-time lows on a relative value to the s&p, which has under performed by about 60% since 2011 it's shocking what emerging markets have done and china's had a lot to do with that. >> nadine, do you -- you know, are you among the investors who think that there effectively is some sort of a put that china does want its market to be open to western investors, it does want a thriving tech industry and it is, in fact, a place to invest for in the long run >> it is, but i think that you have to trade it i mean, we've talked for the last few weeks sometimes we're long china, sometimes we're short china. it's been trading in a range i think what tim's point here is you can't just look at fundamentals so they're not just going after tech companies, social influencers, you're trying to change the social dynamics you have to be careful about the technicals of these names. we've seen a bounce but it doesn't mean you don't have to

hedge some of these issues similarly the macro economic data which is one of the points why we shorted it, it's not great. printed some economic data and we've seen china in terms of the forecast continuing to slow. so when you have a deceleration of growth in china gdp, it's really hard to call it, you know, fill up the tank with names in there so, again, you can trade them but you have to, i think, be really careful having too much in your portfolio right now. >> for more on all of this, bring in david reidel. good to see you again. i think we last talked a week, week and a half ago. you said something pretty provocative i thought. that is you thought ultimately chinese stocks would be delisted from the united states do you still believe that? do you believe that more strongly >> absolutely. i think the sec has made it very clear, i think gensler said the clock is ticking for them to abide by rules using alibaba, they've got a

growing cloud computing business if they sign some contract with the beijing municipality, that would have to be available for u.s.-based auditors to review in order to sustain the u.s. listing. would beijing allow that to happen i wonder so i don't think they're going to meet the audit requirements so i think they will be delist the. there will be plenty of opportunities to buy chinese stocks in their markets. hong kong, shenzhen. that doesn't mean they have any support for the u.s.-listed cayman companies like alibaba, baidu and they prohibit foreign investment in the internet and telecom. >> are these all shorts then >> i think they are. i think you probably do have some opportunities to trade them like you have in the last couple of weeks, but i wouldn't want to be left holding the bag as these guys continue to attract fire from beijing in terms of

regulations. we talked about the video games, we talked about, you know, issues with data privacy we've talked about all kinds of other issues in china as well as being in the cross hairs of washington just there's a lot of other great places to be for emerging market exposure. you don't need to be in u.s. listed chinese play. >> if not u.s. listed chinese stocks, david, then where? >> there are some very good international companies that are listed in new york, easy to get to i point to sec, which is se, which is an online financial services gaming company and shopping company that has good operations throughout asia and southeast asia i point to simex, the mexican building materials giant they sell more in the u.s. than they do in mexico and quite a lot around the world so a great way to play booms in housing armed r around the world as well as getting exposure to other economies like mexico, indonesia, taiwan, other places where you want to be. >> good to see you. >> thank you >> david reidel, reidel

research tim, if not china, then where? what do you think of his picks >> i love david's work i'm always listening to what he has to say i like brazil. i talked about india a couple of weeks ago. to what nadine said about some of the banks if you by the ewz you're buying the etf that gets you brazil i also think if you look at normalized rate environment and currency environment, getting back from covid depths, look at what happened to the brl, the brazilian real and where you have a major move. remember when you're investing in major markets, 50% of your return is currency there is good tailwind where iron ore prices are and where they will stay for the foreseeable. check out the ewz.

like brazil here. >> the flooding, the power outages and the cleanup are taking a toll on the energy companies in the path of hurricane ida. natural gas spiking big time hutting multi-year highs inside the energy trade when the special edition of "fast money" returns.

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sfx: ding! see how easy...? don't just sell it. ten-x it. check out the move in nat gas today surging almost 7% hitting the highest levels since late november in 2018. this at the same time opec and

its allies agree to stick to gradual oil output increases crude basically flat what do you make of this energy trade? where are you? >> well, i think the bigger picture on structural things, dynamics in the energy space, investors should know about. i think opec plus has at least as much solidarity right now, even if it was in a forced solidarity both through covid and coming out of it to maintain prices and some control and, you know, pull -- i should say put some more supply back into the market but not flood it. and i think there is some control and i think russian saudi relationship is as good as it has been in some time that's going to support prices i've also said that i think these companies in the energy space, the more integrated names and more ev names are not growing at all costs in fact, a bunch of these names are not free cash flow generative but they're buying back stock

they're doing a creed of things to investors not necessarily looking at m&a if they are doing m&a, it has to be a creedo. banks, pioneer, eog, these are names i think you have great balance sheets, companies that are run differently than others, management teams that have proven to be i think on the same side as investors. those are themes to be investing in energy. there's no question like some of the other topics we've talked about tonight, there he is a huge energy trade and i think if you look at the xle, i want to see the xle get back above the 50 day which is somewhere around $50. then i think it can actually run. it was under a little bit of pressure today but i do think there's a trade here and then there's a longer term investment. >> xle is heavily integrated, nadine, and that's where you are. >> we do, we have it mostly overseas your points on nat gas are

interesting. technicals, people are severely short natural gas. so i'm looking at 21% for the ung, that's u.s. natural gas fund with really high implied volatility premiums. people paying up for protection on that. when you see that in a bullish formation, that's why you're seeing some of these massive runs in natural gas. it's a lot more technical than i would say fundamental. when you're talking about energy, i also as tim said want to see technicals get better i'm looking at the obx, the volatility of oil. we're at 36. it was up today. what you want to do, you want to see volatility coming down that can lead to a breakout in oil and energy broadly that's what we really want to see to make it a bigger position we have taken down earn energy a couple of months ago to build it back we need some of the technicals to look better. up next, you can already talk to your watch, use it to pay for things and count your

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welcome back to the special edition of "fast money." apple hitting a new all-time high the stock was up 20% in the last three months today "the wall street journal" reporting the company is looking to dive deeper into the health space with the next generation of apple watches targeting everything from blood pressure

to glucose monitoring to sleep apnea alerts ralph loeffler, great to have you with us. >> thanks for having me, melissa. >> we've all been so focused on the phone and what the next iteration of the phone will be, whether it will be revolutionary, evolutionary. how is the watch perceived in cupertino in terms of the leaps and bounds it can make and what it can do in people's lives? >> one way it's perceived, it's a money maker. it's easy to forget inside a company like apple that created the most successful tech device of all time. this is a device that rang up $13 billion in sales in 2020 strategy analytics estimates that's a gigantic number for any company, including apple what they think of is they have to sell every next generation of this device and put a new thing in it every year. >> but it's not just a hardware sale, correct, rolfe

i'm assuming this is part of the flywheel that gets people to subscribe things, so boosting the services line item eventually >> maybe most of the health-related futures aren't so much something you'll subscribe to. think of the fitness element of the watch. really, they're just trying to put a new sensor in every year or give you a new feature. some cool toy that roughly translates to upgrading the camera on your iphone. last year it was putting a blood oxygen sensor in the watch you know, next year -- this year it's going to be kind of changing the form factor of the watch. some of the health-related features will drive sales really in 2022 and beyond >> so what -- where does this fit in the apple ecosystem i mean, obviously you need a phone and in that perspective, well, it's just a straight sale.

it costs $100. exactly. it's a great device. in so much as helping me out, fitness type of person it gives you all of this kind of additional steps, right? companies are going to sell you one thing, they'll sell you this for a few hundred dra dollars more if they can keep you upgrading, that's great >> if i have a question for you. i am a power user. i have my watch, i have my aura ring i also know the battery life is important if you're going to wear it all night long when you think about the time frame to get this done, is it possible to get it done?

it has to be done well enough so someone can use it and get useful data. have you looked at all, you know, how possible is this in the time frame to get that done such that it's a real solution for somebody versus people piecing things together? >> well, battery life is a big -- is one of the questions we have for something like the watch. one of the features that they're thinking about is sleep apnea detection which involves firing that blood oxygen sensor on your wrist overnight. that sucks up a lot of battery life so can that be done? i mean, this is really one of the key challenges with the watch. they want to do a lot of these upgrades they want to get you to buy each new version of the device but they're really up against some pretty significant limitations when it comes to health specific features for the watch which really are, you know, really a key focus. that's the tag line of the watch ads, the future of the watch is

on your wrist. there are some key problems with that, among others the wrist isn't a great placeto measure vital signs. >> we've noticed that. the doctor usually doesn't go for the wrist with the blood pressure cuff. usually goes for the upper arm. >> right that's a key thing to know what they do in blood pressure on your wrist is not -- they're not going to give you systolic and diastolic blood pressure they'll give you a blood pressure trend which will tell you something but you don't know necessarily exactly what. >> rolfe, thank you. >> thank you. >> tim, what's your trade on apple? >> fascinating stuff by rolfe you have this ebb and flow between being a hardware and software story it's been part of the story. i think it's a hardware story. rolfe is referring to a hardware story, referring to the watch. is that moving the needle? i think it's about the iphone upgrade cycle. i think 5g is fascinating and i think people don't appreciate

the investments on networks made by t-mobile, et cetera using these phones is part of it i don't think that's why they're upgrading. apple is a story that should be trading 25 to 26 times. >> tim seymour, nadine turmin, thank you for joining us for the 6 p.m. to you and thank you out there for joining us for this special edition of "fast mo money. "the news with shepard smith" starts right now urgent warning, just issued. do not go outside for the next 12 to 15 hours that, from the governor of new jersey, as tornadoes and flash floods slam the northeast. i'm shepard smith. this is the news on cnbc firefighters battle to save a national treasure. >> this fire continues to grow we continue to fight. >> flames inch closer to lake tahoe. crews on high alert. >> i wonder if i'll have a home to come back to. >> another