worried in the past two days but that outlook about the economy is something people always watch, particularly with the question marks >> right and obviously they know a lot about what is going on with the huge swath of corporate america. that would be reassuring if we got a little bit of that and maybe echos the consumer credit strength >> another down day, market down about 117 points on the dow. down a%. -- percent that does it for us. time for show show -- "fast money." >> tonight we are ready to report, earnings season taking off in a big way banks on deck. plus, just buy it. the big call on nike giving it a boost. whether you should bet on this

name and a high end burger from shake shack that could bring big returns. we start out on apple. josh has the detail. >> apple just unveiled the new iphones last month, but bloomberg is saying they may cut production by as many as 10 million. the reason, prolonged chip shortages. according to bloomberg, apple is saying suppliers are having a tough time delivering enough components i caught up with gene. not a big surprise apple did flag as a potential challenge. cfo luka said it would be

greater in the quarter than the constraints impacting iphone and ipad >> 10 million is probably a 5 to 10% impact over 6 months though gene says it only delays the man, not destroys it back to you. >> the big question here, guy. this sort of confirms what everybody's fears were about the crunch it may not be as transitory as we thought >> going back to september of 2018, we saw it in january, '20 and earlier this year where you see a peek drop or decline from 15 to 30%. the question is where do you buy

the stock. i think that comes in the form of 135 we have seen negative headlines from apple they always seem to figure it out. probably more to your point, is it more delayed or to your point, not purchased it is more delayed without question apple will recover from this i think the bigger case is supply chain and some of these suppliers we will talk about as well >> we have seen these headlines. we got this guide from apple it isn't a huge supply it is more of a demand issue, but at 20% pullback in production then. stock didn't do anything i think this is well flagged guy pointed out some of the levels on the stock. if you break 200 -- apple hasn't

traded below 200 since the first day of covid this stock has basically supported investors that have signed up as investors, not traders in apple i think if you look at the semis overall, i think the character of that chart has changed. i think we have to be careful. if you look at the semis, conductors, it is at a place going where it hasn't been well before the pandemic. let's watch skyworks and vaneck. they are all important to apple. >> the bloomburg article said

it's going to fall short in production for 2021. if we believed it is not demanding destroyed but delayed. the sell-off in some of these semic semicon sem semi con duck tore names, why not look at it for suppliers. >> that makes sense, but i would argue they are trading at higher multiples. i think that makes sense for apple it's demand delayed, but that's been out there. i think the wait times for the 13 pro max are long. four weeks, maybe plus, i think we saw something about that the other day. it would make sense you can't get them because of chip

shortages. i don't know if this is weakness trading on the same news again or if you look the complex, maybe that's part of it. intact, delayed. i am hanging on to this. if apple can't get chips, you would think they would have muscle doesn't bode well for others >> dan, is that the bigger headline for this story? not a huge concern for apple investors, but maybe companies with the best supply chains and manufacturing arrangements around the world, in this country, they are not immune to supply chain issues. we saw it with nike and are seeing it with apple if they can't get it right, who can? >> you have to focus on the products though. we talked about some of these

trends, work from home and school from home people bought a lot of equipment to help them operate i am not sure these apple products -- these were probably the most innovative phones they have introduced in a long time and we know they are doing a mack macbook next week. i have been buying them, it's hard to do i have been trying to buy them for my business. apple the stock is down about 10%. guy talked about the history to think down 10% in the face of all of this uncertainty about supply,but also demand going forward, it's quizzical to me. the stock is trading 25 times next year's earnings

expect eps growth of zero, nothing on gap eps and sales are expected to grow low single digits. you guys tell me begin the uncertainty and demand going forward, playing 25 times for a stock that might be in the midst of one of those 25 or 30% drops or decline, you think you have time here. >> tim, you looked like you may want to disagree >> dan made good points. i think you've smoothed out some of the toll tilt around apple because of the services income it's not so much depend dant on an iphone refresh cycle or phone rollout cycle. services, as apple care, aren't going to be the impact they were on the services growth

i think apple from its former volatility profile, so hinged to the iphone which is where you found most of those 30 percenters i don't think you need to wait for 15% more >> we were going to lead with chips because you guys did astutely flagged on the 12:3 call, micron which made us look at semiconductors in general guy, do you think this is part of a fabric of a bigger story about the economy? we often talk about semiconductors being a leading indicate or for the economy. what does this downturn tell you in the context of supply chain issues >> that's the question as you mention, that's what we are going to lead the show with.

tim points out semiconductors are this generation's oil. if these are rolling over -- in a lot of cases these stops topped out in early spring -- you have to wonder what it means. there may be supply chains at work but if the world is in fact slowing down and manifested in some of these chip names and on the flip side we are seeing some of the price movements higher, that's a concerning situation and something that dan nathan has brought up and you are hearing more of that chorus stagnation >> let's bring in our tech specialist jared, good to hear from you >> thanks for having me on again. sfoo what do you -- >> what do you think is behind

the semiconductors >> i think the bigger issue is the supply chain that every one has talked about on the show in the last few minutes but what underlying is from a consumption standpoint there is this bottleneck in the supply chain that continues to build up there is time that it takes to receive certain product. in some cases it's 70 to 80 weeks. it's not sustainable there is fear that as production comes online, you will have a mismatch and that's weighing on the complex of drivers of semiconductors i think everyone hit it on the head over the last few minutes this apple news was well telegraphed. i think this should not be a surprise for many. i don't think it is a view of

destruction. >> 70 to 80 weeks lee time for some components. that is a staggering stat. what source of component those are and who makes them i am trying to figure out where amongst the chipmakers, who is is the most vulnerable to demand destruction. in other words when they finally get the components out, they will be mismatched on the cycle. >> what we saw tonight with apple cutting their bills by about 10 million given what they are told from texas instruments. yesterday we had an auto supply chain negatively preannouncing as well. when you look at the broader semiconductor supply chain, the critical component going into automobiles. you have seen the news from the

automobile lobby and all of the shortages and constraints in the system compounded by multiple natural disasters, a freeze, and a fire in japan. that's where we are seeing the longest lead time in terms of the supply chain >> jared, it's dan this week we will get earnings out of taiwan semiconductor. the stock is down about 25% from its all time high. it has bounced off 109 a couple times. if you look at the out number, can we believe the out year numbers because consensus has it growing 20% and 20% year over year that seems reasonable. are you waiting for the prison before you want to buy this thing and where does this fit into your list of semicompanies

that have been beaten up >> it is viewed as the gold standard in terms of diverse and market demanding there is so much nervousness in terms of where we are in the cycle. can this print actually be a clearing event from the stock? it has been interesting because there are well telegraphed prices going through the system which would overpower any near term weakness. and if you look at the customer vase that includes amd and others, if you look at what these unconstrained demand environment looks like for a lot of these leading edge players that are to hyperscale compute over the next few years, you can make the players like amd could benefit if you have a loosening up of supply that occurs

the key item to watch is they are going to spend about $31 billion. people are expecting an increase into 2022, perhaps 30%, so you could have relief on the way as far as budget for equipment next year >> jared, i want to ask one more question about the automotive supply chain how is it that tesla can get all of the chips they need and granted they are smaller than gm or ford, is it a difference in the kind of chips or chip maker themselves in terms of customers? >> number of units tesla versus gm or ford. it's the quickest category in terms of automobiles and ev, what that means, but the silicon standpoint going into it

but you are dealing with a smaller base i think that's the point certainly if you go through tesla's filings and risk factors, they highlight the semiconductor shortage as a potential risk for their company as well. >> jared, great to speak with you. so guy, how do you trade this? >> qualcomm, i saw that headline $12 billion buyback is not insignificant. if you look where qualcomm traded down to, that's where we bottomed out in march. i think qualcomm is interesting. but amd probably do stand to win. i have been shocked how they get their projected numbers. i think texan is the one you have to watch out for. >> karen, did you get worried

about gm when you heard jared talk about the long, long, long, more than a year lee time? >> a little bit. i am always worried about gm i am concerned broadly this is a long time for everything at some point i do think, even for long lead items, even at some point you have demand destruction because they have to do some other alternative, even if it is a car or something like that it might be an alternative type of transportation. i am concerned about this more broadly as it works its way through the economy. >> jim cramer is all over the action looking for a buying opportunity plus lays out his top four tips. sign up for his newsletter now

coming up, we are focusing on the financials. how you should trade the group nike racing higher a bullish call from goldman. do not go anywhere we are live in the nasdaq market much more "fast money" after this at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

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welcome back shares of nike running higher. it's 12% higher than today's close. analysts say the recentsupply chains that have put pressure on it are likely transittory. tim, do you like this call >> it doesn't give you room for cartwheels either. it equals higher margins innovation, we knew that

>> the argument that is interesting is valuation 41 times eps, is that compelling amazing how nike has moved itself almost ten turns on its multiple in the last three years. people are comfortable with it i am long. held 145 i stay long. >> karen >> i don't know. i guess it's not a big enough margin for me to think 12% upside the thing not so much concerned about supplies they have been upfront about that but it's more the idea of demand destruction in china for chinese consumers. we saw it in some of the -- i think it was young china consumers are starting to feel pressured there as chinese

markets have bounced back some, but it has been a rough go already, that, with the multiples which are high, i know there are others higher, but we are not going to see earnings until december so i am going to wait much. >> i think the point about china is interesting i don't know if a lot of people are thinking about the help of the chinese consumer and the other pressures they are facing in terms of higher cost. they are a huge country. but temperatures are getting low in parts of the country. they have heating costs at this point. the energy spike happening here, they are happening there with rolling blackouts. we are not thinking about that in terms of the chinese consumer and economy and therefore the impact on u.s. companies >> without question. for nike, at least for me, it's a north american story

and by the way, the valuation we are somewhat concerned about is probably backed up and justified by almost 32% earnings growth. i hear you about china and in terms of the breoader market tha should be a concern, too but maybe it is manifested in the sell-off let i think it can get up to 185 in december >> they don't have issues with the stronger dollar. that's another thing for the u.s. nationals they had a great quarter it has been the entire gap i wonder if this is a u.s. consumer investor saying some of

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welcome back we are just hours away from earnings hours kicking off j.p. morgan, bank of america

rest of the reports in the coming days. how are you playing the banks? funny how we said it was strong. it's a test setup, karen that's why you are worried the run-up going into earnings >> right but it was tougher last week they peaked out last week. j. j.p. morgan is in the five or six spot everybody is talking about loan growth is important. absolutely it is because that's how you get multiple when you look at stack market, everyone looks at that as lumpy and not worth as much. one thing i was thinking about as all of these supply chains tap in, they have to spend more to run their business before

they cap into their inventory. they have to have revolvers, taking out more loans. everyone's working capital is going up that's good for the bank to the extent there are lenders there one thing i want to hear about is buy now, pay later and how that's affecting their credit card portfolio that will be of interest to me, but i think we will see good numbers. >> guy >> it is not going to manifest in this quarter but the yield curve flattening out is something to be concerned about. j.p. morgan peaked out a couple months ago i don't know how it sets up. these banks tend to set off post earnings only to sell off a week or so later. u.s. bank corp, that continues

to be a bank that flies under everybody's radar skin >> minnesota based, of course. tim, what will you be lockoking for for banks? >> i think you will have weaker margins, not offset by activity. a lot of these banks are positioned for a better consumer, probably unnaturally low credit concerns. i think you will see a few more credit reserve releases. that's good for the banks but no one believes that. we feel we they could be at peak kol reins. -- tolerance >> banks sell off. they have done thismore times than not

bank of america is up 45%. i am long bank of america and citibank, and i stay long, but you can no longer say this is attractive if you are a trader i think you follow guy and pick these up in a couple weeks much i stay long because i am an investor i feel like dan has a snarky comment. >> mel, you go to me last. everybody has said what needs to be said. the last two days, yields have been holding firm. treasury yield at 1.58 or 1.59 a lot sold off i thought that was interesting i will leave it at that. okay >> tim >> nobody puts dan in a corner he has to work on that

>> the last word should be something that you want. >> i agree >> i got that last word much. >> could we make a clip of melissa holding up dan like in the very last scene of "dirty dancing? >> i can't unsee that. >> the big lift. >> i am going to leave it at that k crypto company launching its own market and later, one household name that could soar thanks to a major event taking off this week [uplifting music playing]

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welcome back coinbase announces a push into nft. >> coinbase is announcing its own platform they say coinbase nft will be a marketplace for minting, buying and discovery nfts

it said it's supporting a theory of based standards nft are essentially digital collectibles, have taken off this year. this is the latest move by the company to differentiate in a crypto field with robin hood, square and others it also may be a way to diversify away from trading revenue and adds pressure to open c there are others that it adds pressure to. coinbase was almost 3% lower this comes after coinbase disclosed some issues with transfers. there are still issues with certain bank transfers, withdrawals and trades they say they identify the

issues with what they say are stuck transactions no word from the company on what is causing that. >> do you think that the likes of square or papal will go into that that seems like a foregone conclusion >> coinbase is following and catching up to other plat fform, but jack dorsey is bullish on it it seems like coinbase will test it out i am sure the scale is making a lot of these other players bullish. >> i think kate nailed it. it is coming after there was a tweet that talked about open c 27.5 billion

330,000 growth if you do all of the math, it's a pretty easy thing for coinbase if you think where others are trading, it is a logical extension. >> there are other players in there. tim, i know you follow draftkings maybe this is a space that will be very fractionalized so to speak in terms of specialization, nfts and certain marketplaces >> i think they will especially as they get into the different entertainment and artistic genres that i think will and are attracting nfts almost like marketmakers

this is almost a 90% correlation between crypto prices and bitcoin to the past. it is not keeping base -- pace. i think it's undervalued i think their names are not terribly unique or clever, but bottom line is i think these are things that nobody has in their models anyway. i think coinbase is somebody that embraces the regulatory environment and has worked hard with the regulator if anything, i think they get a leg up, the more it moves down the road i totally like it. >> karen, you notice that lag yourself >> yeah, i like it, too. i was thinking about the nft market

i which sotheby's or christy's was a pure play. but this makes sense to me i think it's smart coming up, just what the doctor ordered >> herb greenburg is back in and making the case for a stock. a message from cabrera as we celebrate hispanic month >> i learned many valuable lessons. family values, perseverance and grit and competitive spirit that is still driving me to stay in business latino is e onof the fastest growing segments of the country. this is a tidal wave, an

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register now at cnbc events.com/work summit prescription for profit. that's what herb greenburg calls this product herb is making the case for a stock. joining us with a name is herb you look well. we are used to you being the contrarian so this is hard to get used to, but you actually like this stock. >> i have mellowed in my older age a little bit i think what happened is it was out of outrage that i first stumbled on this company it was outrage over medicare i was comparing drugs. you are supposed to do drug

plans every year it's a hassle. you shift plans and this year i said how did prices rise by hundreds of dollars. i started shouting about it on social media and people were saying why don't you look at this company good rx i looked at it, never really thought about it started digging around and some guys i work with, two former hedge funds guy, they were in this thing in may. they are smart guys with a short bias so they are wired the way i am they liked this. i started going through it and it is more of a platform company, like a priceline, like an air b and b

it can go into that bucket as something you can save a lot of money. i have tried it already. i am going to save hundreds next year by using it i would say at some point it has potential. i don't see how it remains independent for its entire life. >> herb, amazing to see you. great to have you back on. i think doug hirsch was on with jim cramer and talked about some of the relationships with walmart and others, but sub growth has been ridiculous if you look at last quarter >> this is more than not just being -- if you look, they have a subscription platform, but more of it is just people who download the app and get a coupon as i did today. bingo, you save $70.

i think it's a mix of things these guys make money by being in cahoots with pharmacy benefits managers and do that by splitting some of the take they take margin out of distribution there is a benefit here. there is competition i am surprised there is not more i should say, guy, when i saw short interest, i tried to figure out what that was i think it's tied with anything with tam and margins i was looking at this and i can't find a huge negative i am sure somebody is going to hit me up on twitter with that pretty soon. but i think that's interesting >> 24% short interest, herb, it checks the boxes in this

investment age where mean stocks rule did that cross your mind >> no, it didn't this is not a short-term deal. i look at enrique and gabeand they see this as a $100 stock, but they are not talking about it tomorrow. this is a longer time play you guys are sitting there, not 65 and not on medicare that's 30% of your customers so you are not playing it the same way. there is arrogance on wall street and that is who will do this to save a few dollars it's not just medicare it's group plans i find it odd that i am sitting here getting worked up about a long, but i also find that there are a lot of ideas out there that the streets cost that, but we have seen they turn out to be decent businesses.

this one turns out to be decent based on what i have seen so far. my colleagues have done a lot of work on this thing >> it will take time to get used to you talking positively about a stock, but we like it. >> see you again, mel. >> maybe certain dynamics are lining up with this trade. if you like the high potential interest and short squeeze isn't nothing to necessarily laugh at, tim? >> no. by the way, we were just reunited with herb and it felt so good. 24 short interest i think is a catalyst that competitive landscape could be a takeout play. there are big boys and girls that could be that player. look at their second quarter numbers, up 43%, a platform that

continues to scale i fall on the side to say this is a company showing more growth and is complementary to some of the players and could be in the line of an acquisition >> everybody wants to save money on prescription drugs whose prices are going up. i wonder what you think of this one, karen >> i think it's interesting. like you, i am sort of shocked and surprised today hear herb in a great mood and wanting to chat about a long i like the idea of it. i think significanta is a custo. if they get other big customers i think that is a catalyst so i kind of like it. >> we will keep tracking the move >> tesla trading higher and that has traders bustling in. later, shakeha sck drofg a

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welcome back shares of tesla speeding higher. selling over 56,000 cars in china last month that's a new record. mike joins us with the action. >> hey, there. tesla was the most action if we are looking at it in terms of contracts trading, beating out ap by about 400,000 contracts. if we factor in the share prices of these companies, tesla is by far and away the most active and has been for the most time now what we are seeing is short dated activity buyers of options are betting that the rally could continue. the company will be reporting earnings next week right now options is implying a move of 7.7% after they report that's in line with the last eight-quarter average.

we saw over 740,000 puts trading. they may be expressing a little reservation that earnings could lead to some pullback in the share price. >> we talked about j.p. morgan into the run, and here we are with tesla what do you think the setup is, guy? >> i think the setup is great. i am probably in the minority. i have said for a while and i will stand by it, i think it will print the $900 price we saw earlier this year into a new all time high. i am sure there is fast fire coming but i will stand by that $900. >> pops and drops next mike, thanks for that. for more on "options action" tune in for the full show idfray

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welcome back shake shack has a black truffle burger the price starts at $8.79. guy, you used to work at shake shack, right >> yeah. are they paying you that $8.79 truffles is something everybody says they love but don't i am with that on caviar stick with your knitting, shake shack. >> i would do mcrib personally time to go around the horn >> i don't think nike made truffle sneakers, but if they did, people would buy them they are hip with the kids, maybe truffle stuff. >> karen >> i think target has been oversold and the place to go if

other places are out of something. >> i know you will try that burger, dan? >> if i hadn't been three places already this week i would have tried it >> guy >> schlumberger is my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey. i'mcramer. welcome to "mad money. woman to cramerica just trying to make some money of my job is not just to entertain so call me at 1-800-743-cnbc or tweet me @jimcramer. after not a hot day when the dow dropped 118 points, nasdaq more

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