seems to be acting, and with six more months of that, it may seem like the perfect moment to raise rates, but until we get there, investors can talk themselves into a negative scenario >> broader markets are just positive today that does it for us. "fast money" starts now. >> live from new york city's times square, i'm melissa lee. tonight on fast a we are trading the financials as big banks kicks off the earning seasons. we have your big bank setup straight ahead plus william shatner making history becoming the oldest person to travel into space with all of the money and hype into space, why are the space stocks

failing to launch. later pete is taking the mound to throw out his best idea why he thinks this energy stock is fueling up. we start up with what might be the season of excuses corporate america has every excuse to make an excuse check out delta, the company reporting its first numbers since the pandemic fedex, we heard from them three weeks ago. the shipping giant saying labor shortage will cost them $350 million. and also with the blame game, the supply chain issues. are we prepared for all of the excuses in what could end up being a season of disappointment guy, what do you say >> you know what they say about

excuses. i hope you know because i am not going to say it on this family show this evening. is the market prepared i think the market is very prepared i think they have come to the conclusion companies will throw those things out there, but they will get punished for it pete knows this. you are what your record says you are. if you are 4-12 as much as you would like your record to be 12-4, it is what it is companies say these things i think the market has realized there are the have and have-nots. names that will use excuses like that will be punished. knows who see through it and push through it will be rewarded i think we saw it today with apple. i thought apple traded remarkably well given the headlines yesterday. >> down less than a percent by

the end of session you would think 24 hours ago it would be much more pressured in today's session. pete, do we know what the extent of the supply disruption is? a couple months ago we thought it was going to resolve itself sooner than what we are looking at now pete pete >> i apologize >> sorry about that. i apologize. >> sorry about that, mel i think it's interesting when we look at this, those excuses are very legitimate excuses when we talk about supply chains specifically that was supposed to be getting loosened up. it wasn't and still hasn't now the president has this working 24-7 and that should

loosen things up a little more and we start to catch up i don't know i view those as excuses as much as it's easy to say you can blame this and that. i think it'sly jit mat but it's how we determine what those companies are and how are we navigating through, whether supply chain or laborer whatever the delta variant was hanging around now that seems to have subsided. much of this is priced in. when we get earnings results, i think we will find out more about who is really good, who is navigating this well and who is not. i think that will play out over the next month and a half or two. i think in most cases we are seeing a lot of cases that have legitimately had issues, but they are giving us their forecast, and in most cases,

other than delta, it looks pretty good. >> i wanted to ask about the terp excuse -- term excuse we didn't pick that word because we think some would not be legitimate we are talking about a reason to pull back guidance for a company, even if they are the best company in the world with the greatest clarity and supply chain, do they really know what we are saying, is there any reason to stick your neck out there and give great guidance when things are uncertain? that's what apple showed us. regardless how it traded today, it shows us we don't know who is susceptible. >> to guy owes point, i think it was opinion. tweet at me, guy melissa, it's human nature

i have four kids they have excuses, i have excuses. you will take any excuse you could possibly pick. the earnings bar is much lower than last time around. what do you want to do with that i would guess you want toob buyer of the market much when you intro the show, you came up with 4% from all time highs. also 4% from the 200 day moving average. backtrack. if people wanted us to sell from the all time high off 10% to feel good at an entry level, that's where we get to that. it's my opinion we are going to have a choppy october, seasonality, i have seen that as long as i have been in the business and then all-time highs in november and december. i think you are trying to hold a

beach ball under water rates are not aggressively high. i think the market will be bought >> do you think that's how the market is set up and how are you preparing yourself for the conference calls we don't have much clarity on the chip shortage and think it could be better in six months or whatever they are going to say >> i think a couple shows back we had a few odysseys, and i think this was odyssey three i think that is what is going to happen as far as reasons or explanations or belly buttons, it is human nature if you see someone struggling, you would use that same excuse for yourself even though we have pulled back recently, credit availability,

trading off 4% recent highs. vix is just a touch over 18, i think these set up and you say is there any downside being priced in? giving the catch-up on thesidelines, i think it's justified. i don't think the market is well positioned for what is shaping up to be a more challenging season i think they are trying to mitigate that. but i think expectations are being ratcheted down i think you see this by everything i just mentioned. >> so warnings from these big companies in advance of the torrent of earnings we will get in the next couple weeks, because it allows the market to

reprice what they are thinking of and thinking about for earning season >> when you are getting ready to struggle, you want to say i told you so and i was transparent about it that's exactly what is happening. >> guy, we were talking on a call earlier about wayfair, talking about the supply chain and way ffair has a disproporti disproportionate dependence on china. there is not a lot of wiggle firm in terms of cost. >> that is real and something we brought up a number of times the situation between china and taiwan is not getting better

soon that will continue to add to the head winds that a lot of these companies are facing we will see if they play out to me that's not scutt as m/* - as much dispute as where we find ourselves. this is what companies are telling us is going on this is how we will get through them and other companies are using excuses. steve is right about poetic license. the environment we find ourselves in is perfect because those companies are getting punished and the other companies are getting rewarded >> i had no idea when you said that saying in the beginning, guy. >> i will tell you at the break. >> i figured it out since, like

three or four minutes into the show >> joining us on the line is paul hickey. great to have you with us. how are you seeing the setup on earnings to this point >> i think you guys have touched on it. you look where expectations are in this earnings season as compared to last earning seasons. they are evenly split between upward and downward. as we all know, it's about expectations using a football analogy, the chiefs are 2-3 and giants are 1-4. i would say chiefs fans are feeling worse than giants fans because the expectations were higher for chiefs than giants. it sets the stage for disappointment supply chain and labor shortages

and whether or not they are priced in. if you look at google search trends, how often supply trend and labor shortages are being searched, they are at record highs going back to 2004 if searches for these terms are at record highs, you have to hope that analysts have them priced in their numbers. what we have seen is that they have been taking this into account which will make the bar more manageable this earning seasons than those over the past few quarters >> you look at the particular sector and think maybe it's not priced right or maybe the revisions haven't hit the sector enough so that it is in fact priced in? >> we look at an individual tech tore basis -- sector basis the energy sector is the most

positive of any by a mile. when you look at seasons when you have seen similar levels of trends and revisions, it has average declines with declines during earnings season more than half the time. here is the real world example and how they are met by the market once the reports come out. and on the other side of the extreme, materials where we have seen heavy bias towards downward revision, and what we have seen when you see revision trends this negative or more negative heading into the earnings reporting period, they tend to do well with gains more than three-quarters of the time there the bar is set low as far as the broader market and how we see reaction to earnings, we have had some companies report already

we have some companies already report in the s&p earnings on the days they have reported, they have seen a modest gain, with gains about half of the time nothing real positive, but nothing negative either. but it's more of a draw. since those companies reported, we have seen similar reactions in the stock not just one day from then to now, returns are about flat there is not that much shock on the part of investors at this point. at the top of the show you talk about nike supply chain disruptions and labor shortages, that stock dropped 6% on the day of reported earnings. because of these head winds, more than 2/3 have been erased investors have stepped into it that somewhat bodes well

people are expecting these comments to come up. >> paul, i noticed on the graphic we showed the office, upward revisions to financials were up. i am wondering how you think that sets us up for tomorrow on the eve of a huge deluge of financials earnings tomorrow >> financials are an interesting story. they tend to react horribly on the day they report. j.p. morgan has been down. bank of america has been down seven past earnings reports on the day of reported earnings short-term they have been negative, but if you look at all of those stocks over that period, they have all done pretty well. the market sold the news and people stepped in shortly thereafter >> paul, great speaking with you. thanks pete, what do you think of those

sectors paul mentioned >> it's interesting, mel when you look at who is going to get affected most, there are names that come up you look at nike and who is under the most pressure. when i look at some of the financials, that's a different type of pressure and they have been dealing with this for a long period of time. we saw the j.p. morgan numbers it was a matter of where was j.p. morgan in terms of where was the stock trading. i mean price to book there is a lot of other names that trade very inexpensively, bank of america, citi, some of those names where they have the ability to give a great number and move to the upside >> breaking down the banks we will break it down ahead. but first our chart of the

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welcome back the struggles didn't spill over to the stocks not tied to apple like amd the supply of apple had been lagging. guy, you called this you wanted to look at this chart and you were spot on >> we danced around it last night and brought up the fact that we thought amd and nvida would trade well with the news we heard as great as it would seem on the surface to be an apple supplier, it doesn't necessarily mean it will be that wonderful for the stock. apple is notorious for squeezing

some of its suppliers. i think it's manifesting in some of these stocks. i think texas instruments is still too expensive. the divergence in the chart, i think it will continue for a while. i think amd will go higher while four others will go slightly lower. >> do you not want to be in the suppliers, you want to be in the others >> i wonder if we are missing a little bit here. guy mentioned a great point and i don't think i could be more eloquent all of those guys have conceded the leverage of supply for apple. apple wasn't very transparent for what their supply chain looks like iphone is about 50% of apple's revenues much who am i looking

at apple. i am surprised the stock hasn't traded off more. i do expect amd and mvidia has been top in class for sometime texan, i'm with guy in that that price is bloated but its return on equity supports it. i think you are paying for a premium there. i would be waiting to get back into apple i would be looking squarely on them vis-a-vis the suppliers >> sounds like bonawyn thinks there is more downside to apple. >> i am in apple i think it hasn't sold off because of the 53 or 54 in

services even though he is correct on the iphone numbers. nvidia is up 60% it seems to have bounced off its 100-day moving average i think it has more to do with that, the tail winds amd released a new chip, a raytheon chip for you geeks out there. i think that was on a granular level. i love texan the chart tells me that it can move higher and qualcomm down 13% year-to-date is down at support from october of 2020 if you are thinking about rolling the dice and throwing a dart here, i think you dabble in

qualcomm or texan. >> cramer is sticking by one apple supplier find out which one we are just getting started here on "fast money. here is what's coming up next. big bank earnings are underway j.p. morgan in the books how will the others fair traders are checking the balance on this group, next. plus we are getting ready to throw some heat with a fast pitch. the energy name he says is primed to pump higher. we have that and more when we return hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

welcome back to "fast money. jp morgan stocks falling as financial earnings kickoff wells fargo, bank of america, citi and goldman sachs also weaker as they gear up for earnings tomorrow. what is your take on the bank action today guy, what did you make of this quarter? >> the quarter is fine, nothing wrong with the quarter karen has been discussing the setup. i think we pointed out correctly that you go back the last couple years, jp morgan reports and the knee-jerk reaction is the stock sells off. we saw that today. i think we will be trading north of the all-time high in the next few weeks. i think out of all of them, i

think morgan stanley has been fascinating. it goes from the lower left to the upper right. although it's probably stretched in earnings, that is a company that has equipped itself extraordinarily over the last few years. >> jeff joins us great to see you again >> great to be back much. >> it didn't seem like there was anything wrong with the quarter. the management on call seemed to be aly bit conservative. what was your take >> the reaction is the setup coming into the quarter. bank stocks had a good month, but it's important to remember that it tends to be good for bank stocks but not fundamentals, they probably ran up a bit more than they should have and i think there was hope we would get a more positive outlook much we didn't get much

on 2023, but it was the incrementalpositive i think th market was looking for i think there are some concerns out there. but the bottom line, the quarter beat my expectations and fundamentals did as well i think it was a good quarter, but just a tough setup coming in >> what do you take from jp morgan's quarter and how do you apply that to the others we are expecting tomorrow >> the strength of advisory revenues and equity trading revenues morgan stanley and goldman sachs reports in the next couple days. that should be good for them b of a as well i think the lack of interest rate guidance and not really stepping up the low growth expectations could prove to be a

bit more of a headwind the outlook here should be better for the capital market every day. >> what did you hear about credit card expenses that you think got extrapolated to the credit card companies today, the stocks, that caused them to be soft >> we heard a couple things on credit cards one was low growth i don't think the substance of what we got was different than we expected though the tone was more conservative. and expenses, for jp morgan and some of the acquisitions showed up in revenues they are spending to gain market share. i think there is concern in the rest of the groups to keep pace much you see the credit card names get hit today. but i think the reaction to the credit card stuff is overdone.

jp morgan is still getting good returns. stuff you look for like consumer spending, deposit balances and typical accounts involved and access work down, there is a lot of things that suggest credit card loan growth >> what do you think about buy now, pay later, the popularity of that, trend toward that and impact on credit cards >> i think the impact is more one of -- it's not like the big banks or credit companies can't do buy now, pay later. i think the hesitancy is it can eat into the credit card business which is a high business now you are starting to see jp morgan rolling out the capability i think the risk is it is more

of incremental pressures there is a lot of growth there, but it's still a small part of the market so the growth isn't quite as great. banks are taking it seriously and getting into the game and i think you will see them grow their share more >> thanks, jeff harte of piper sandler. pete, an appetizer in the a block, but in terms of the banks tomorrow, which one are you focusing on? >> jp morgan, two times books, that's an issue for me that is great and jeff reiterated how strong those numbers are. i think equity trading, investment banking, that moves me over to names like morgan

stanley, goldman sachs i think there are great opportunities. there are very inexpensive banks that could potentially put up numbers that we could see these stocks move to the upside in a big way. names like citi that trade less than one times books i think there is a lot of room for these names to perform to the upside morgan stanley would be my favorite >> let's put your morgan stanley or square, where do you want to be, bonawyn? >> going into earnings i think morgan stanley is set up well. i think they will do extremely well there that has carried the banks through covid. short-term morgan stanley. long-term i can see a company like square continuing

we talked about sofi a couple days back. i can see them starting to siphon away market share and see consternation around crypto and these other alternatives i think you need to have a little bit of both short-term what is stable and a proven commodity look at the consumer trends. they are involved in these companies. >> grasso, your take >> tnc has the best chart in the financials, a regional, up 35% year-to-date, but blows away all of the other charts. if i look at the charts though, bank of america seems pretty good up 42% always gets left out everybody talks about morgan stanley, goldman sanchs, but loo

at bank of america, look at a firm they are going to eat away at the traditional credit card company's profits. so they can pivot or turn. >> you know how santa claus keeps a list, naughty and nice >> coal has rallied, i will take it coming up, a real life star trek william shatner blasting off into space today trouble taking off for the space stocks find out what kpiiseeng them grounded and pete's fast pitch. don't miss this one much we are back in two. indeed you do.

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welcome back to "fast money. this energy stock was up more than 30% and pete says this stock is about to pump higher

he is about to deliver a fast pitch. >> i am going to start with conti kinder morgan. this is pipelines. richard kinder owns 257 million shares of his own company much that shows you how committed he is and consistently buying shares up. whenever the stock dips he boys more steven keane took over for hip in 2015. they had a lot of debt what they have done fundamentally is important they have all of this cash flow, 5 to 5.5 billion every single year much what do they do with that instead of dividend, they bought back their debt, about 20% much they still have some, but they have turned the spigots back on. i think that takes discipline to do that and i love they have

done that. a 6% dividend is not so bad. if you can sell options against it every month or couple of months, you can enhance that yield higher lastly, the growth area that we are seeing there is all of this power generation from natural gas and the liquefied natural gas from europe to asia, this is an incredible industry for them and they continue to move the pipes around i think it could get back to the 20s in the not too distant future >> steve, you have a question for pete >> are you looking at this more the stability? because this moves molecules around versus something that has direct leverage to nat gas are you buying it for yield or

for stability and when nat gas starts to come off, this one can still move higher. >> that's a good question much i like the stability and consistency of what they do. i like the consistency of what they bring in in terms of the cash flow, operating cash flow i think they do a lot of things right. is it the most exciting name no but when people are looking what do i do if, looking at this and that and looking for something i can do better than in the financial world and banks, i think this is one of the names i don't think there is much downside, and i think there is upside i think it could be enhanced well into the double-digits. >> are you buying pete's pitch on kmi

>> i'm buying it and because i think pete did a great job qualifying why he is buying it stability, core holding, rates, option overriding and dividend yield. i think that was perfect well done, steve -- sorry, pete. >> i knew it would get bonawyn >> guy >> can you read my smart board exce excellent power pitch. fast haiku >> you missed the exclamation work >> i was surprised when i looked it is not north of 20. this stock should be trading at levels we last saw in 2015

>> your last line can't be punctuation. >> exclamation point, five syllables. >> i understand that >> steve >> i am going to give pita buy because when pete does a power pitch he usually hits it out of the park even with nat gas coming in, there is a potential for kinder to still perform i love that yield. buy. >> traders, it's your turn to vote are you buying pete's pitch? cast your vote and we will reveal the results later in the show coming up, failure to launch william shatner may have finally seen space, but not everyone is coming along for the ride. more details after this.

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welcome back to "fast money. a huge day for trekkies and william shatner. he is now the oldest person to reach outer space. but while he fulfilled his

dream, space stocks remained grounded >> grasso, you are in virgin, i wonder what you make of this action >> the bigger person is growth versus value these are seen as the ultimate growth stocks much when you watch the event today you notice a handful of people in the actual vehicle that gets you into outer space you have to do the math is there money to be made. i am still in virgin glat parti -- galactic but you have to put it in the top drawer and see what you will be like in two to five years it is in the mid 20s i think it has tremendous

upside >> is it type to put it in your top drawer, pete if you do, you don't have space for something else in your top drawer >> steve talked me into the stock. i wasn't on the show that night. he talked me into it and i have been there ever since. part of the reason i like it -- i almost love it, married to it almost like my wife -- i can sell premium this is great, i can collect $2 a month which at the end of the year is $24. i can sell options $2 every month. i have done that since i bought it in june of 2020 now i own the stock virtually for free because of that collection over time much i love the stock much i continue to do that i jufrtst have to manage that

i think eventually these stocks will start to take off again, literally. if it gets to 50 again, i will still hold onto it >> libby might be watching i don't know how she will feel about that >> that was a huge mistake >> guy, when i heard william shatner was going up in space i thought of you because of your fast money moniker, not because you are the oldest guy in space. used to be known as the negotiator which he was for sometime as well >> we have chatted about that from time to time. william shatner is a huge "fast money" fan i know he was emotional after the flight good for him i thought there was tremendous opportunity for him to be a pitch person for pfizer drug i won't go down that road. i think it was a lost opportunity. if i want to get nauseous, i will watch a star trek rerun

i don't need to go into space myself coming up, we will break down actioonn oil and still time to vote for pete's fast pitch on kinder morgan we will be back in two

welcome back you can watch the interview by jim cramer at the top of the hour options action tony joins us now. >> we saw a huge take in exxonmobil it trades actively, about 90,000 contracts a day is traded, but today it was a little over 100,000 much but 25% of today's volume was in a single trade where a trader sold 26,645 of the december 65 calls at about $1.01. this was likely sold at -- this

is a trade that expresses a view that they think there is limited upside in exxonmobil and perhaps limited upside in oil stocks as well if these calls were sold against an equity position, that equity position is worth about $162 million as of today's clothes so a lot of weight behind this particular trade >> guy, what do you think of exxon? >> it was gdowngraded by goldma sachs. this is probably worth a shot in earnings at the end of the shot. energy, i don't think the trade is over at all i think it's taking a pause. look at the way some of these oil names traded

halliburton and schlumberger which were down early closed up. >> but exxon won't give you some of the same leverage as the other ones, steve. into it is not, but almost like the kinder trade, the stability that you are looking for when you are playing this emts or refiners, who's leveraged or not leveraged. at the end of the day i think we have an administration that wants to limit supply of fossil fuels. that means only one thing to me. higher prices. i think the entire space and sector can move higher >> tony, thank you tune in friday for the entire options actionshow up nt,ex you can still vote. kinder morgan is the name. head on over to the twitter poll

we have results and your final trades up next 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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exclusively. time to find out if the viewers at home were buying pete's fast pitch on kinder morgan it looks like they were. more than 62% of voters are buying that pitch. they are with the traders, united tonight time for the final trade around the horn. winner, winner, chicken dinner >> amd with a lot of call activity i think the stock is going higher >> peloton >> steve grasso. >> i think the market gave us a gift in this my final trade is capri holdings the final market sold off with nike, but capri does not rely on vietnam or supply issues this is a gift buy it >> guy

>> mel, i know you are a huge hockey fan i want your input. rangers/caps do you think they will drop early with tom wilson or wait till a more opportune time in the game >> early for my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a a work and i promise to help you find it. "mad money" starts now >> hey, i'm cramer i'm just trying to make you some money. my job is not just to entertain, it's also to teach you call me at 1-800-743-cnbc or tweet me we are so spooked by inflation that's it's got us