binax now tests. >> bring it on >> thank you very much it will be interesting to see a bounce >> getting a little bit stretched. we're trading pretty technically here, 4,300, 1%, 1.5%. people are watching the s&p. that does it for "closing bell." "fast money" starts now. live from the nasdaq market site overlook new york city's time square, this is "fast money. i'm melissa lee. guy adami, tim seymour, karen finerman, and pete najarian. tonight, facebook shares plunging 5% as a whistle-blower sounds the alarm and the company is hit with a massive service disruption we're breaking down the fallout straight ahead plus tesla holding in the green despite today's selloff. we'll bring you the big number that had investors driving into this stock and karen ringing the register the one retail name she hit the

sell button on today, what it is and why it's time to bag it. the s&p dropping more than a percent, dow down over 300 points, tech-heavy nasdaq down 2%, posting its lowest close since june apple, microsoft, google, losing a combined $36 billion in market cap today alone. is there more pain ahead you go in and start buying guy, what do you think >> certainly some of those names, mel more pain ahead i think for the broader market i've tried to be consistent on this i thought 4100 in the s&p, i'll stand by that, although the way it treated today leads me to believe we'll see a bit of a bounce tomorrow. yeah, if 4100 is more pain, then yes, more pain i do think for some of these names you're getting to interesting levels below the surface, a name like

nvidia, down 14% from its recent all-time high, amd down 23%. although the broader market has not caught up to those names, those names are starting to provide i think some interesting levels we'll talk about facebook later. one place we've been pretty consistent on, i know pete is here tonight banging the table on this for a while, energy is one of the few things we agree on today there are areas that work and i would stay with the ones that have been. i think energy has significant room to the upside >> higher on opec. pete, are you in energy? what's your outlook? do you think tech and higher valuation names remain vulnerable >> yes and i still do like tech, mel, to answer both those questions but i would say energy, materials, financials, are my top three. energy is my biggest sector i actually have ownership up primarily in options, just because it's been so active. a great example, even today, today as the markets are absolutely cratering to the downside, we're seeing huge

upside buyers in different etfs. the xle as well as the xlp we've seen all kinds of different energy names that has been very, very current. we're actually pushing on almost doing this for an entire year back to november of last year right after the election i still like the energy space. they continue to come after it i will continue to own it. i oftentimes flip into individual names rather than etfs i would rather get the bigger bang for my buck it's been those beta names like devon and oxy and diamondback, those are the ones that have been catapulting to the upside and those are the ones i want to look at. as far as tech, mel, it's part of a rotational thing, very much like we had last year. if you go back to last year and look at the he found october, that's when technology started to sprint towards the end of the year will that happen again i kind of think it will. but right now i have the

positions i've got i have not been adding as much in technology as i normally would. >> that rotation is exactly what we saw today, karen, in terms of out performance when it came to some of the more defensive sectors like utilities but also the cyclical sectors on a relative basis, outperformance by energy, clearly, materials, industrials, and financials, karen. >> right and there was also a bit of a reopen trade there was some strength there, if you look at names like ulta, it closed positive on the day. live nation was down very little after a very big run so, you know, we look at the market we look, you know, at the s&p and the dow, the dow was a big down day but it wasn't a big down day, it was a big rotation day. clearly faangs were de-fanged today. high fliers with super high multiples did even worse i am still long facebook, apple,

amazon, microsoft, i'm long on all of them except netflix i still like them. i understand why they're down. i still think that they're a value within a market that isn't so value-oriented. i'm sort of inclined to stay with it. i know it's painful. i have this little somewhat of a hedge with igb, the high flyers. i do think that we will see faang do well again. i don't know when. but i'm not a seller here. >> if you were inclined to trade around your positions, is it time to take some money, even if you do like the faangs, is it time to take some money often the table? i got an email today that i thought really encapsulated the market move and that is, tale of two faangs faang meaning the tech stocks and fang meaning the energy stock. >> right and again, we've talked about that, we've talked about where

there has been this rotation into energy because maybe these are not trades, maybe these are actually investments and certainly fang, the oil and gas ticker, is the best story in the space. these are companies that are only looking at m&a if it's accretive. they are targeting who can have the higher essentially free cash flow return to investors in the case of some of these companies it's north of 50%. the faang that most people know, amazon has done nothing since july of last year. it's flat year to date apple's up 7.5% year to date s&p is up 15%. so the argument that it's been a recent major pullback for mega cap tech, and i don't think anyone here is necessarily saying that, but yeah, this is something that really has been an underperforming story for some time, although if you look at the triple q's in the nasdaq 100, they've only come off

their -- diverged away from the s&p to the downside since mid-december when we otherwise were trading at relative highs what's also interesting about this rotation that people are attributing to higher rates, rates are right in the middle of a six-month range. i think they'll go higher, not a lot higher but to get anxiety over a major rate move, i just don't think that's what this is attributable to some of this rotation is very healthy. guy brings this up, we've all brought this up, at times the math doesn't make sense for the overall index, therefore if you're not getting participation from some of these heavyweights in the index, you're going to have a little bit of a problem again, i think the energy -- pete's trade, pete's basket, pete saying he's most overweight energy, is interesting, this isn't how pete trades, and i'll let pete talk about that, energy used to be at its peak, closer

to 20%, it's nowhere near that now, you don't have to own it. >> what is energy as a percentage of your portfolio roughly, pete? curious. >> right now, mel, on an average week i have 45 to 50 option positions on i've probably got 15 of those in the energy space itself. then i've got a couple of stocks as well, chevron and kmi i do have a lot of exposure there. but, you know, the thing about it, and i think tim is right on so many different sides of this whole thing, when you look at energy, it's a small piece of what we call the s&p long ago what used to be a monstrous piece, now it's very small you know what, when you look at those individual names, especially the next tier down names, i keep calling them the beta names, those are the names that have absolutely bee rocking, mel they continue to do so and the derivatives world, they just buy them, every single day, to the point where it's almost fatiguing. i wonder, should i continue to add to this, but i do just because that is where the option paper has been going

and all you've got to do is look at a one-year chart of oil and you can see exactly why it's been a great trade i think it continues to the upside sounds like tim is bullish still to the upside as well. i still think there could be triple-digit oil maybe by the end of the year. >> wow our next guest warns the tech slump could last until the end of the year. jonathan, great to have you with us let's say the slump does last for a year what does the market do with that context if technology is the leader. >> yeah, i'm not sure that that was a right quote, that tech was going to slump what i think i said is that cyclicals will be a winner as long as we have disruptions in the labor market that are causing lots of inflation, and they just have more leverage and exposure to rising commodity prices like we're seeing today and disruption in supply chains tend to give them more pricing

power and more operating leverage and in that world, they just end up being a winner. but i'm not -- longer term, i think these growth names are going to be absolutely the right place to be. but not in a period of time when you have this kind of disruption in the market economy. >> what is that period of time, jonathan i'm trying to understand what investors should prepare themselves for in light of your call, your bullish call on cyclicals. what happens to tech in that context in the shorter term? i mean, it can't be a market where everything rises i guess it could but what do you see? >> right no, so you're asking a couple of questions. the first thing is, how long -- how do i define this environment and how do i think about that. way back when, the fed was -- way back when may have been six months ago, the fed was talking about inflation being transitory but i think their view was inflation was being driven by easy monetary policy and a lot

of government stimulus and now we're actually seeing that the aftermath of the -- you know, of the initial pandemic is playing out, with shortages all over the place supply chains in the form of chips and labor, everywhere that you look and now you're seeing this in energy and there's a real breakdown between supply and demand all throughout the economy and the idea that this is going to magically resolve inventory in three to six months i think is going to be -- i think we're going to be disappointed that it's going to last a bit longer. i don't know whether longer is 18 months or 36 months but these issues are going to take a little while. they're going to get better. but they'll take a while to work through. and the question that we have to ask is, what types of companies tend to do well in this kind of environment? and it's those companies with lots of fixed overhead if you have a software engineer, they're going to ask for a raise if there's a lot of inflation.

but if you're a manufacturing company and you have equipment that you're leasing, it doesn't get a raise. it holds that same steady cost so those fixed overhead old fashioned businesses, i think -- not i think, they are doing better here and delivering better profit growth just one more point on this, the consensus across all wall street, value is expected to deliver faster eps growth than growth stocks are for each of the next four quarters i don't even remember a situation like that. >> jonathan, tim correctly points out that at 1.5%, the ten-year yield is smack in the middle of this range we've been in probably for the last nine to ten months-ish is there a level where you start to get very concerned in terms of what it means for the equity markets? >> yeah, first of all, i think tim's point is right

a 1.5 interest rate by itself should not be a freakout at all. what is changing, though, just remember back to when we got the announcement about the pfizer vaccine in early november, and it just raised from 80 basis points to 170 over five months the market didn't sell off it went crazy to the upside because it was the economy and the improvement in the economy that was driving interest rates. now what's driving interest rates, and look when they shifted direction, on september 22, when the fed basically signaled that november is when they're going to start tapering, and now you have higher interest rates being imposed on the market and the market is basically saying they're not happy so it's not the level of rates it's the tone. it's a loss of liquidity that i think right now is biting the market a little bit. >> jonathan, great to speak with you, thank you >> my pleasure >> jonathan gallup, credit suisse

karen, jonathan threw out, we don't know how long supply chain issues are going to ask and he threw out off-the-cuff, i don't know if it's going to be 18 months, 36 months. that's a long time, i don't know if anyone thought it would be up to three years, even as an outer bound. >> yeah, i don't think so. but who knows? i would have thought that it actually would have been resolved by now. but i think that some of these issues will get resolved in terms of i think, you know, sort of gridlock at the ports i think that will get resolved some of the other things about supply chain and moving your supply chain, i think those are a little longer. so -- but he makes an interesting point on, you know, companies with fixed cost, and when they have inflation, when they're able to pass on inflation to their customer, that's a great business, like a united rental. coming up, facebook under

fire shares of the social media giant plunging after a whistle-blower blasts the public company for putting profits above public safety plus the major outages that rocked facebook today. but first, tesla driving higher after record deliveries details when "fast money" returns. me arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

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welcome back to "fast money. stocks plunging in today's session, the dow falling 323 points there was a green spot, shares of tesla speeding higher after the company announced record deliveries for the third quarter. phil lebeau has the details. >> melissa, a second straight quarter with record quarterly deliveries for tesla they delivered 241,300 vehicles in the third quarter they've done that now for two or three-quarters deliveries overall up 97%. because of this strong quarter, that is raising the estimate the consensus in terms of what analysts are expecting, now for the entire year, 883,000 vehicles that's close to, a number of analysts saying, they're going

to deliver 900,000 vehicles, although they would really have to crank it out in the fourth quarter. for tesla, remember, they have two giga factories close to opening up, one outside berlin, germany, and one just outside of austin, texas. in fact austin, texas is,elon musk will be on thursday when the company holds inannual meeits annual meeting you never know what you get with a meeting with elon musk, sometimes it makes news, sometimes it's rather mundane. wednesday we'll be looking at general motors as they have an investor day, essentially, when they'll be talking with analysts about why the company is as it converts towards electronic vehicles gm said it wants to be all electric by 2035 they have the hummer coming out later this year, they have a number of vehicles on tap to roll out and they're putting $35 billion, melissa, into electric and autonomous vehicles, that

will be a big focus on the investor day on wednesday for general motors so a couple of important days coming up for gm and tesla >> is tesla as a supply chain far superior to a gm or ford who has had to cut production because of shortages >> i don't know if it's far superior but they clearly have done a much better job managing the chip crisis than other automakers including ford and general motors and if you listened to the analysts today, if you read their notes, you didn't get a real lot of insight in terms of why tesla is so much better than many of the other automakers although adam jonas at morgan stanley said, look, i think it's a case where tesla has put so much emphasis on working with some of these key suppliers, these chip companies, that they now are considered a strategic client in the eyes of some of these chip companies it doesn't mean these chip companies are ignoring the other

automakers but they've done a better job managing this crisis. >> phil, thank you phil lebeau. >> you bet guys, shouldn't this be factored into the value? i guess you can make the argument that it is factored into the valuation, but doesn't this mean tesla can manage the production, which once upon a time was a knock on this company? >> no question, i'm with you on that one it was a knock and justifiably so at the time but they seem to be growing into it and getting more mature in terms of a company and frankly, in terms of management style as well i'm not going to make a case for this valuation but you probably have anywhere from 35 to 40% eps and revenue growth, which is significant. it doesn't justify the valuation. but significant. and i'll say again, i think the stock is going to test that all-time high of $900, sometimes before earnings at the end of the month of october the negative news cycle seems to be well in its rearview mirror i think the catalysts for it to go higher are there in front of

us >> no pun intended if you could ask mary barra about the supply chain and production cuts because of shortages, what would you ask her? doesn't this make your head scratch when i hear tesla delivering record numbers of cars when gm and ford are struggling to keep up? >> it does and it certainly is a case where if you look at the price performance of the automakers and gm, ford down on a three-month basis, tesla, while only up 9% year to date, is off 40% from may lows. the chart looks interesting, we talked about how it outperformed even high multiple tech days when they sold off in gm's case, i do think gm has transitioned some of their production line. some of these, you know, interactive chips and some of the auto chips that i think are part of where they're coming up short are a testament to where the auto line is involved and developed. but look, i think you have a case here where gm and ford is other automakers are still

making an argument, we're not going to see these sales fall off the table, this is a delay not deny or destroy. and we've talked about this as well i think the story with tesla is one where first of all, their ability to deliver well above expectations, in a year when really a lot of others have not been able to do it, is acompan that's focusing on the ev opportunity. and if you listen to the comments, that was why he wasn't as bullish as the valuation or the upside in the stock because they'll really have to focus on the core business and not some of the other drivers in kind of the tesla valuation sphere but look, it's nothing but a good day for tesla both in terms of the performance and relative you've p outperformance of a stock where other names got destroyed. here's what's coming up next on "fast money." >> stocks taking a nosedive. and retail was no different. karen's breaking down the names she's taking out of her cart

plus facebook's fallout. the whistle-blower the power outages that sent the social stock pngg.luin we've got that and a lot more when "fast money" returns. large commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...? don't just sell it. ten-x it.

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indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire welcome back to "fast money. take a look at facebook, leading social stocks dramatically lower there. shares seeing their worst day since last october as a w whistle-blower sounds the alarm and a massive outage julia boorstin has more. >> down detector tells us 11 million people have reported outages across facebook's apps,

facebook indicating it is not a hack its cto tweeting out, quote, inin s sincere apologies for everyone affected we are experiencing networking issues and teams are working as fast as possible to debug and restore as fast as possible. this comes on the heels of the whistle-blower unmasking herself on "60 minutes" last night she accused facebook of prioritizing profits over safety and driving discord and violence around the world she filed eight complaints with the sec alleging that the company did not accurately represent itself to investors. we will hear more from her when she testifies before the senate commerce subcommittee on consumer safety. that's tomorrow morning at 10:00 a.m. eastern and amidst all of this, facebook filed its response to the ftc's amended antitrust complaint against the platform melissa, a lot going on today. >> a lot julia, thank you, julia boorstin

karen, there's a lot to unpack there. what i thought was interesting is this was not just an issue of whether or not congress can regulate, but it's an sec matter to determine if facebook actually misled investors about how they handle misinformation i'm wondering from your standpoint as an investor whether you think there's any merit to that. >> i'm not sure if there is. but i think actually some of these other issues are more pressing and weighing on the stock. today was sort of a perfect storm. you had a down market, you had the maga stucksocks just gettin killed any time you're a target of "60 minutes," you hear that tick tick tick and you know the stock is going to go down. theft senate confirmation coming up and the outage of all their products, or many of them. that's a lot of bad things happening in one day it's interesting to me that the sort of facebook pr spin team doesn't have sheryl sandberg anymore, i'm not sure, they have

some other voices. i thought there were some interesting comments, of them pushing back however, putting all of that together, though, i still think this is just an extraordinary business if you look at twitter and snap and some of the others, they were down a lot too. they have nowhere near the valuation of this business all of that having been said, i bought some stock today, i added. i was long going into this i added. >> pete, would you have added, did you add, are you in this stock? what do you think here >> it's one of the longest holds i've got, mel. i actually still have a shred of a piece from the ipo, to give you a little idea. yeah, i've owned this for a really long time, i sell calls against it i've added in the past i did not add today. actually i did add some puts in the last couple of days only because i wanted protection. i'm not necessarily negative but i know how these things go and we've seen these kind of deals in the past.

mark zuckerberg, his private jet must go constantly back and forth to d.c., he's always in front of somebody in washington, d.c. yet the teflon man has been able to go through each and every one of these and the stock goes higher and higher i don't know about this time being exactly the same, that's why i decided to buy some puts there was some call buying today that made me interested in, wow, now all of a sudden as we get down here to the lowest ends of the day, we see some very large call buying stepping in, mel so it is something i'm looking at and i may add to my stock position, because they just have proven to us time and time again, they manage so well and there is nothing like what they've got in terms of the platforms that they own if they were forced to break up, that would be different but as long as they are together, this is an absolute behemoth >> let's talk more about the pressure mounting on facebook. joining us now is "fast money" friend gene munster, great to have you with us is there a straw that breaks the

camel's back at some point or a straw that questions the valuation of this stock? i mean, is this going to be the same as the other rounds of congressional testimony, controversies here and then the next day it's gone and advertisers flock to the platform >> i'm sad to report, as someone who believes that facebook/instagram is toxic to our mental wellbeing, i'm sad to report that this is likely going to blow over when pete said this company is teflon or zuckerberg is, that theme resonated with me. in part, and i'm just going to boil it down to its most core pieces, what facebook/instagram/whatsapp, what they have is a global directory. this is something that is not even close to being replicated by -- it's 5x bigger than the next bigger global directory if you put tiktok at one of those as an investor, you can't replicate that as an advertiser, you cannot

replicate that and i think, you know, the straw that breaks the camel's back question, could this potentially be different, is a question around what happens with esg investors. and do they see this as a reason why they are compelled to lighten their positions. and i was spending some time on facebook investor relations page today. i would recommend anybody going to esg resources on facebook investor page. and what you'll find is approximately 50 links, 50 reasons facebook is to esg investors. some of them i think are comical. but my point is that even these esg investors, i think as they sit back and think about do they need to own facebook, they can justify owning it based on a number of reasons, 50 reasons that facebook gave them. so i think that this company is going to continue to ultimately move higher because of that core

asset. >> gene, it's tim. to me it's preposterous that this would be filed under an esg. if anything, esg investors would start with a portfolio that's not facebook guys talk about this all the time i guess my question really is, at what point, with 41% ad price growth and essentially the digital ad space doing what it's doing, what's the multiple the stock can actually trade down to when it becomes too compelling even for folks, let's face it, a lot of investors have been investing in oil and gas or carbon footprint or things that from an esg perspective and whatnot, they had to hold thei nose on and they're very happy to do it at certain levels, and i guess my question is, yeah, where does this stock go when it gets so cheap or is it -- you know, could it be there even if you don't like the toxics at this toxicity around facebook and instagram?

>> i don't think we're there yet. i have incredible respect for karen and how she manages her portfolio. i would still be holding off here, in part because i think the way this is going to play out, i don't want to get off topic here around the debt ceiling is going to be a debt downgrade of the u.s. ultimately and then i think that's going to bring a lot of multiples down. to answer your question, where does this become kind of a no-brainer, you buy it, it's probably around 20 times next year we're not there, i think we're at 25, 27 times. i would much rather own apple on this pullback than facebook. >> gene, you cited the esg resources page i went there and it's a good point that esg is subjective but on several counts, i would imagine that facebook would be ruled out. least of all, the share class structure would be number one in terms of a strike against it for governance and then, you know, if you are to believe that facebook did in fact conceal some of this

research, that would be another. even just before any of the scandal, there is a reason to go against it do you have any idea of how many funds or how widely held this is amongst esg oriented funds if that is a mainly push behind the stock. >> unfortunately, i don't know that i suspect that those funds are massive, and i suspect it's a measurable amount. that's not particularly helpful. i think this is something that fortunately i guess for facebook investors, they don't need to really worry about this, even if it's 10, 20% of the holdings, because i think those investors are going to find ways to justify. humans find ways to justify their behavior investors are humans and i think that, you know, the reason that you owned facebook was an esg, i suspect that the vast majority of those will look beyond this and try to find other esgs

i want to anchor, it's i guess a plea to investors here more broadly, just to anchor that, you know, what companies ultimately make our lives better, facebook's going to crush it like, do not get me wrong, this metaverse, we're going to be talking about this for the next few years. the stock is going higher because of that. i wish they just had better rails on what they're doing where some of those are coming to fruition now. if anything, that's what i really would love to see, investors ask for better transparency >> all great points, gene, always good to have you. thank you. gene munster of loup breaking news from the fed let's get to steve liesman >> michelle, thank you very much the federal reserve now asking its inspector general, it began discussions to start an independent review of whether trading practices by certain officials was in compliance with both the relevant ethics rules and the law. they say they will welcome this

review and accept and take appropriate actions based on the findings again, the federal reserve asking its inspector general, a separate office of the inspector general for the federal reserve, asking them to do an independent review of whether trading activity by senior officials was in compliance with the ethics rules and with the law, melissa. >> so this is not over for the two fed officials who have tendered their resignation, necessarily, steve, is that how to interpret this? >> that is correct i mean, the idea that it would be essentially in compliance, technical compliance with the law, creates certain legal jeopardy i think both official hs have si they did not violate the ethics rules or the law just so you know, melissa, the fed chairman had said there is a staff review as well i don't know if this is in addition to or in place of a staff review that the chairman had discussed. >> all right steve, thank you steve liesman. coming up, karen's hitting

the sell button on one retail name today what it is and what got her to ring the registers and what citadel's ceo sd.ai we'll bring you the comments when "fast money" returns. growing up in a little red house,

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welcome back to "fast money. we've got a trade alert, karen ringing the register on one retail name today. karen, what is it? >> tjx i sold half of my position today, which was a difficult thing to do. you know, it's a great company and extraordinary management team but what i've been thinking about and worrying about is, to the extent that t.j. maxx really thrives on stores having excess inventory that they need to sort of dump at the end of the season, and tjx can buy a lot of goods for a little amount of money, are we in the opposite of that are we in a scenario where retailers won't have enough for christmas and what they do have, they'll be able to sell at full price, and to the extent they have anything left over they really won't need to dump it like they might in a year when sales come in light. so this made me think, all right, the supply chain to tjx

could possibly be not as robust. and so for that reason, and also i would like it to have a better online presence. i know they started home goods i sold half. i'm sad to see it go, but i feel like i would feel like a complete idiot and i didn't do it and that came to pass >> is there a possibility, karen, that the window closes in terms of getting the inventory on time for the holiday season for a lot of the department stores, et cetera, that usually offloads to tjx so tjx will be totally in the money once the holiday season passes and there's a lot of inventory is left over simply because a container ship was late to the game >> late enough that they miss christmas? i guess that's possible. you and i were talking before, is there a possibility that tjx ends up with tons of -- >> santa sweaters? >> santa claus sweaters, yes

it is possible it is. you have been on this grinch who stole christmas for a while, correctly so, i should say it's a risk. >> i hope that we're wrong and christmas is merry for all you've been a fan of tjx, pete, i'm wondering what your thoughts are in terms of the inventory give and take given the supply chain issues here. >> absolutely. and i think karen is really truly on to something. i am not in tjx right now, honestly, mel. boots on the ground, i'm constantly in there. i'm probably in a t.j. maxx, marshall's, or whole goods once a day. they're all over the place near me, of course i'm going to go there and check things out the one thing i've noticed, karen, you're dead on, i've noticed the racks themselves have gotten thinner and thinner and thinner, and they are definitely lacking supply, from what i have seen and it's not just here it was in las vegas when i was just out there it was in california not too terribly long ago.

so wherever i go, i notice the same thing going on. so i think you're on to something. it does trade at a great multiple i still love the concept i'm not worried about the online but i am worried about the supply chain so i think it's probably a good idea for you to have taken off some and i think you'll probably be like me, at some point you're going to be jumping back in. but we have to just see how this entire supply chain and all of that inventory is going to be distributed. >> it's just astounding that wherever pete goes, he has time to stop in at a t.j. maxx or a home goods where do you keep all the stuff, in the fireplace behind you? >> mel, there's one right on the strip. i was out there for the last ten days there's marshall's literally right on the strip i went in there and was like, this is terrible, and i walked out. so it does show you, they're everywhere, and i think they're having inventory problems everywhere coming up, ken griffey sounding off on the heat around order flow what he said about a potential

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if you're going to tell me that by regulatory fiat that one of my phage items of expense disappears, i'm okay with that >> citadel founder and ceo ken griffin telling the economic club of chicago today that he would be okay if regulators banned payment for order flow if they were still required to secure best distribution for their customers. it was similar to a comment made right here last month on "fast money. >> ironically, it's an expense in theory, our bottom line would improve. you may say to yourself, why are we doing this. because i think it's the right thing. payment for order flow has created innovation, has enabled a company like robinhood, which is a client of ours, to offer commission free trading and democratize the market and make trading more available i believe in that passionately i believe in what we have done with them. from a virtu perspective, our earnings would probably go up.

>> they must get something out of this, though, wouldn't you think, guy and i know you like virtu, in terms of the stock you said as much after the interview with doug cifu in terms of answering the question, what do the firms get, it can't just be charity or out of the goodness of their heart to help robinhood and other retail investors execute their trades it has to be something else, like helping their algorithms, something. >> i can't speak that intelligently about many things, not least of which how virtu -- what payment order flow means to virtu or by extension, acitadel. if it goes away, that's one pillar out of this robinhood platform for sure. if robinhood is worth $34 billion, that's what the market is saying right now, and that's fine, maybe it is.

i don't think there's anything innovative about them except some of the hair these guys have i think nasdaq should be worth twice that i look at robinhood at $34 billion and nasdaq at $31 billion and i say something is wrong here >> cifu and griffin had mentioned all of this has really enabled the explosion of online retail trading we explore that very topic along with the explosion of online gambling "generation gamble." we're taking a dive into the effect it's having on young people like 23-year-old julia arpino >> did it make you feel more confident that you weren't the only one in gamestop, that there was a whole reddit army behind the stock as well? >> 100%. i think it was a little bit of

that camaraderie you saw all the comments on reddit, oh, my gosh, we're all in this together then it tanked i freaked out, i don't want to lose any more money than i had lost >> what we're seeing in retail investing is completely unlike anything we've seen before >> kahlil is a washington state university professor who completed one of the first surveys looking at the connection between online investing and gambling behaviors. >> people are developing habits, and risky habits >> be sure to catch "generation gamble" tomorrow 8:00 p.m. eastern right here on cnbc coming up, a tech wreck options alert that could point to a big bounce. we'll bring you the trade when "fast money" returns

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welcome back a sneak peek at the cramer cam jim is talking to the ceo of ibm. don't forget, jim will be sending emails daily, writing for the website, and appearing in videos online you'll also have a front row seat to what stocks jim is trading in his charitable trust.

sign up right now, cnbc.com/investingclub or point your phone at the qr code at the side of the screen right there, it will take you there let's get back to julia boorstin for a news alert. >> melissa, the outage appears to be over facebook and instagram loading for me here in los angeles as well as in our newsroom and the east coast this comes after an outage that started at around 11:30 a.m. eastern. down detector tells us over 11 million people reported that they had one of facebook's family of apps, facebook messenger, instagram, and whatsapp not operating but now it appears to be operating it seems like that will roll out. no official word what went wrong here, melissa, but i'm sure we'll learn more in the next couple of days >> a lot of questions still. thank you, julia tech funds losses are 5% over the past week. today's activity sparking some interesting options trading as well mike khouw has the action.

mike >> always very busy trading over 1.6 million contracts a day on average. today 140% of that volume, nearly 2.4 million contracts, puts outpacing calls that's less than what we normally see the reason for that is the two most active contracts both expiring by the end of the week. >> thanks for that, mike for more "options action," tune in to the full show, friday, 5:30asrnim nt, final trades.

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final trade time tim? >> with a lot of work to do still but a valuation that's very defendable and outperformance to even apple this year. intel i think is well-poised in this environment >> karen >> yeah, happy about merck, but

this $8 run in merck is excessive. i sold some upside calls >> pete. >> it's all about energy, mel. i'll give you occidental >> guy >> halliburton >> thanks for watching halliburton. >> thanks for watching "fast." "mad money" with jim cramer starts right now my mission is simple, to make you mope. money. i'm here to level the playing field for all the investors. there's always a bull market somewhere. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to save you money. my job isn't just to entertain you but to teach you so call me or tweet me. remember friday when we were all excited about merck's covid drug this market has