these comments. you can see how volatile and fragile the market can be in a given moment. yes, it is twitchy. i think there will be a reassurance in the earnings season, with back-and-forth going on between company and company. you will have to try to read the tea leaves or turn the screw. we look to see if that is a net positive. >> we will see you tomorrow. i will see you back here as well. "fast money" begins now. it we have banks and bears on the street. the banks have a fifth day of straight losses. j.p. morgan sets the negative tone. where do we go from here? the son has the lowest s&p target on the street. we are watching the euro. italy's prime minister resigns. the country's president will not accept it. it's another brick in the wall of worry, facing the fragile eu. how soon before europe's

troubles went on our shores? >> inside of the troubles with alibaba, the warning shot for overseas investors. we go inside of the summer surge, with the winning streak. this is "fast money" live from the nasdaq marketplace. we start with the markets. but the late day a grab for gains. the nasdaq calls back more than the 2% loss. they finished that in the green. there were some disappointing results from the banks coming out this morning. j.p. morgan falls 3.5%, after a big drop in profits, as a built-up the cushion for loan losses. the big banks have 52-week lows today. what is all the action telling you? >> maybe we are oversold. maybe after the market doesn't bounce, maybe we are due for one. [ indiscernible ] closed lower. hig is hanging in there.

i do 14th, i thought [ indiscernible ], but it didn't happen. i am still holding out hope that we can somehow get to those levels with each passing day. everybody has got themselves on one side of the boat, almost by definition. we should probably bounce. >> how bad is a sentiment going into the bulk of earnings? we sort out the banks. i don't think anything the bank ceos had to say will make you feel more encouraged about the economy. the economy will be the thing that speaks to the direction of u.s. corporate earnings. we haven't seen a reset. we talked about this last night. we are waiting for the strategists to capitulate and talk to us a bit. all the measures not lined up yet. we have high, single digit earnings growth for the s&p

500. until that is hit, and that is confirmed for the back half of the year, i don't think the stock market will pop. is going to think jamie diamond was more negative than he has been recently? >> not really. he was storm clouds, and it went to hurricane. i thought this was more positive than hurricane. he was feisty on the call. he was irritated about the ratios, and ridiculous things have to do to address capital. that's something that people didn't like. the capital issue is, they have to suspend the buybacks to raise more capital. this is not a surprise, right? they talked about it during the last quarter, when they had the oti adjustment they had to make. i don't think he was overly pessimistic. clearly, i view jamie differently than others. one thing i would love for him to do is to take a media call.

think somebody asked him that. he said, i have plenty, but [ indiscernible ]. i would like to see him buy stocks, or i could give him some of mine to increase the stake that way. it probably wouldn't make a difference. going in, it's not like everything was frothy and high. this is a big dividend payer. they had some lumps. we have the discount when capital markets are great. >> they don't get the credit, they don't get credit. they get punished when the reserves go out there and they

have revisions and pull them back. they don't get the credit. the market that rewards banks are ones that typically have late cycle elements to them. that's where you don't want to buy them. i thought the comments were in line with expectations. i thought the numbers were in line with expectations. i thought the reason ponce was more than it should have been. we have been talking on this desk for months. what ceos will give you the kind of guide they want to hear, get excited about? certainly, the man that has gone out of his way to say, and expressed caution for the last couple of months, it has to go in the air and throw some provisions for bad loans. that's what banks do. that's what banks do in this environment. the things that were encouraging, i go back to semi conductors. they were up over 2%. they outperformed the s&p by 7.5% over the last seven days. that is very good. you can make the argument that higher rates are also good. it is not at the low end, but

the high end. we had an ugly ppi report. as we got to the numbers, there is some sense, look, we would rather see the fed do this, i think. i would rather see them do more than last right now. >> there is another case out there, it would be 100. you might think about how far we have come for that to be the base. three weeks ago, that would've been ridiculous. here we are. >> how about the bank of canada going to 100%? now the fed is being outflanked. >> good for them, they are in front of it. why wouldn't you do an emergency, mid meeting rate hike laxity environment suggest that s what we should be doing. if it was the other way around, they would be lowering rates if we were in the reverse situation. he that as it may, they will have an announcement, the day

before gdp comes out. it will be fascinating to see what happens there. i did not think the quarter was a disaster, especially given the fact that the stock is 37% from its all-time high. i am with tim, i think it was an overreaction to the downside. >> you are asking, what was the temperature going from jamie? which go back to june 1. it was june 1. here we are, july 14. it is bastille day to all of our french friends, by the way. he says i'm changing my position from storm clouds to a hurricane warning. there was nothing incrementally more positive. when you look at how the bank stocks acted today, relative to the market, the way the market came back. what do we talk about last night? look at the homebuilders, they closed very poorly today.

i think these two groups are telling you what is in store for the economy for the back half of the year. i don't think the s&p being down, and the evaluation where the market-rate is at, is discounting that yet. >> as a bank investor, when you said that 087 attack somethings? this is actually great environment? we are seeing commercial lending a banks, which is one of the exciting parts. these are the things we would want to see for a long time. >> this is the reason that banks were out-of-favor, okay, they raised their guidance again on and i am. nobody cared. the loans were higher. we are in a market where no news is good news. it's frustrating, but i will wait it out.

>> so any new audience members are tuning in for the first time, the reason why dan almost fell out of his chair last night, he was exercised at them saying you can purchase homebuilders for a trade. on top of everything else, that just put him completely over the-top. i will stand by that. >> i think homebuilders are worth a look on the long side. >> longer-term? >> short-term trade, play from the long side. >> check. >> why did the banks trade poorly? >> again, if you have ceos guiding for a world with credit issues, you take names, and you apologize later, or something like that. this is a case where they are pricing in the worst case. we saw this during covid-19. we had a dynamic, where we saw the big divergence from wall

street. they were underperforming. when we started to kick back into gear in the economy, it took three to six months for the banks to rally back. it does not surprise me. main event, monday morning, thank america will report. the stock was trading at $50 in february. it was at multiyear highs. member when jeremy diamond made the comment about the economic or i came hurricane coming? the ceo says we know these things. he clamped back. he did not seem worried. this will be interesting. this stock is down 40%. it is down more on the year that j.p. morgan. he said i think that's the one you want to keep a close eye on for monday morning. >> bank of america is my biggest position. i think we will see better from them. they are more sensitive to the

margin. they are less sensitive to the banking revenue. that will be a positive as well. they are down to today. they might be down to tomorrow. that gives them a lower and lower floor. this is a bad place to be. i am hanging out here. wall street has a new bear. the bank of america slash to 3600. the strategist behind the college joining is now in this exclusive. this is the head of u.s. equity and quantitative strada strategy of b of a securities. it's great to have you on the show. >> it is great to be here. sorry to break the bad news. >> i think we are in the bad news at camp for a while. i'm wondering, for you, as a strategist, dc strategist sticking by the s&p 500 target, or the earning estimates, what

got you to finally crack and say, this is not what i am seeing anymore? >> threat the year, we have been relatively cautious on it. we have been looking for dividend yield and quality. what got us to, okay, this is a full-fledged bear market, with the recession, the economists are calling for a recession. also, we are not seeing supply chain inflation that we cited at the beginning of the year, alleviating as quickly as we're hoping. the good news is, with this market drop, we are closer to the year-end target then we would have been at otherwise. the set up going forward is a lot healthier. this is a better time to think about long-term investments and equities then at the beginning of the year when we were cautioning that stocks were facing a negative 10 year

period. this is set the stage for a better decade. when we talk to our economists and where we are in the cycle, the soft landing from the economic stamp weight is more realistic than a long-lived recession. our economists think we could see the fed cut rates in the second half of next year. the good news about that, in order for the market bottom, we would need to see the fed cutting during the cycle. we do believe there is latitude, and a high chance, that they are forecasting that the fed will begin to cut rates in the second half of next year. where i think we are different from consensus, we started the years with one of the lowest forecast. we are not necessarily seeing all of the signs of sentiment,

and all the things we track from the quantitative basis, really bothered me out to say, back up the truck on equity, no risk. everything looks great. the problem is, folks are neutral on stocks. there has not been the capitulation, the bearish capitulation outlay we like to see ahead of the market bottom. we are in an environment where the fed is fighting inflation. we are not sure how successful that will be over time. i love having one. the question is, we are following your work, i am looking at your report, the 11 factors that marked the bottom. you started on them. what are you looking at? outside of where the market is coming, it's like a mechanical reaction to a downgrade on gdp. some of this has to happen for you. give us three. >> the three is, the fed

generally needs to be in an accommodative mode. that has a 100% hit rate we need to see sentiment getting more bearish than it is today. if you look at allocations, which i talked about on this program, if you look at the average wall street target, they are all relatively high, or a neutral territory that needs to happen. we need to also see other factors like improving economic data. we are in an environment where these are rolling over. i think those need to pause or slow down. those are some of the factors we are watching. in the report this morning, we listed the 11 things that you typically see ahead of the market bottom. unfortunately, less than 20% of them have been triggered at this point. you usually need 70% to be triggered before the market

bottoms out. diving into the sector look, what sectors are the most off sized, relative to wall street expectations? which sectors could see the biggest comeuppance? >> that is a great question. i would say that healthcare will be the sector that is the sleeper that could prove to be defensive. it could prove to have secular growth. it doesn't have a lot tethered to the economy. healthcare companies, at least on the big side have enough to do some interesting acquisitions. this is a sector, if you want growth, if you want idiosyncratic growth that is not tied to the cycle, if you want stability, if you want defense, healthcare looks better than tech. it was used for many of these

exposures. tech is still under siege from globalization. it is reversing the supply chain risk. will they spend as aggressively as we were penciling in at the beginning of the year? maybe not. they got a big pull forward in demand during covid-19. if i tilted my portfolio in one direction, it would be defensive, but healthcare staples, rather than the secular technology companies. i think tech is less secular, and more cyclical. >> thank you for joining us, it is nice to see you. this is the lowest target on the street at this point. technology, we heard a lot from phil mcdermott. >> when he said that, obviously dan flagged it. it is not about service now, look what microsoft did the

next day. think about this, in order to make the call she made, there are no real ramifications in our world for being bullish and wrong. but to put out a call like that, i don't want to say that his career risk, because it's over the top. it doesn't say it take a set of stones to use this. >> i admire her, these are levels we talked about for a while now. what is interesting, she's pointing out that the economists are calling for five sequential quarters of gdp contraction. that does not sound like a soft landing to me. gets a sense, as you are strategists, we have been waiting for this. when do we get the eps downgrade? the fact that, the worst of the downgrade is a 10% downgrade. as the gdp goes, it is as the mechanical downgrade has to come in the eps.

>> what i took away, she said tech is less secular and more cyclical. that is how you get that. think about what we are hearing in the last couple of weeks, right? google, microsoft, and oracle, all massive employers are slowing down employment, or they could start to cut. they are seeing less demand, they will start to cut costs. that is what gets the long-term coming down during the back half of the year. >> those kind of companies are the highest multiple companies. that is where we could see the most decline. hispanic microsoft is safe. talking for technology. as a sector. i am long on microsoft and apple. i'm short on idb.

i feel like the low hanging fruit, for the bear market there compared to banks. apparently not. >> the comments that we are having around microsoft, and the enterprise comments, these are the ones that started to percolate this week. we have not gotten those yet. we have talked about inventory issues. we talked about inflation and consumer spending power. we have not heard about enterprise, especially the places where people think they are, secular. they think the move to the cloud is secular. they think software is secular, that goes on forever. that is the parts, microsoft, again, i'm not wishing for doom and gloom. i want to hear something out of microsoft you're going to hear something out of apple. you want the band-aid ripped off wax>> a little bit, a little bit. i never like that as a kid, but

i like it now. the entirety and the prime minister is trying to step down. first, pinterest is popping and trade. the investors making social moves. we have the details when "fast money" returns. (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. which means you sign up, get help, and pay all right here. so you get a single-line unlimited plan for as low as $25/mo. switch today at visible dot com.

bubbles bubbles so many bubbles! as an expedia member you earn points on your travels, and that's on top of your airline miles. so you can go and see... or taste or do absolutely nothing with all those bubbles. without ever wondering if you're getting the most out of your trip. because you are. so... i know you and george were struggling with the possibility of having to move. how's that going? we found a way to make bathing safer with a kohler walk-in bath.

a kohler walk-in bath provides a secure, spa-like bathing experience in the comfort of your own home. a kohler walk-in bath has one of the lowest step-ins of any walk-in bath for easy entry and exit. it features textured surfaces, convenient handrails for more stability, and a wide door for easier mobility. kohler® walk-in baths include two hydrotherapies— whirlpool jets and our patented bubblemassage™ to help soothe sore muscles in your feet, legs, and back. a kohler-certified installer will install everything quickly and conveniently in as little as a day. they made us feel completely comfortable in our home. and, yes, it's affordable. i wish we would have looked into it sooner. think i might look into one myself. stay in the home and life you've built for years to come. call... to receive fifteen hundred dollars off your kohler® walk-in bath. and take advantage of our special offer of no payments for eighteen months.

welcome back to "fast money". we have a flash after management is acquiring and i percent stake in pinterest. with the details here with christina. talk about timing for elliott management. the company has had a tough go. they have struggled to emerge from the pandemic. without businesses search. everybody did diy projects. now the global monthly users are falling. the company managed to wring out more revenue per user. there have been several executive changes as well. the ceo stepped down as chief to become the executive chairman in june. the wall street journal says elliott and pinterest are in talks. they have not given any details. this would not be the first foreign social media. back in 2020, elliott took a $1 billion stake in twitter,

pushing jack dorsey out as ceo, in an attempt to unlock value. the difference between the twitter case on the pinterest case is that ben silverman has an almost 80% voting stake in the company, which would limit the ability to make changes and expand into e-commerce. that is a key difference. you wonder what is going on here? >> everything, the founder of the company that has a kind of voting stake would be welcome to any ideas to increase shareholder value, right? what could elliott do here? could a larger technology player with a big at base by them? not from the regulatory stand base. when you look at where the stock closed, 23% of the market capital is cash. there is no debt. perhaps a private equity company would look to buy this to lever it up a bit. i think this makes sense.

would this be a great deal for walmart to compete with amazon? you don't generally see this kind of action with the stock that has been down so much. i am all for it. >> we make the assumption that it is hostile. it may not be at all. then board seats with twitter right away. a couple years back, they were aggressive on ebay. they'd been in the space, then mixed success. it's not that big of a company at $9 billion right now for like walmart, that is nothing. that is like one days inventory. student evaluation is not unreasonable. you can make the case that 21 times next year it's there. you make your for cash. it's cheaper there. you talk about a company with

450 million active users. that is not insignificant. their numbers were not disastrous. that a big run right here, that 18% of the app market. it will grind higher in earnings. >> we have a lot more "fast money" to come. the italian impact, the country's prime minister is calling it quits. what does that mean for the euro and the dollar at home? the lead in the bulk, analysts throw cosco on the card with a big upgrade. is now the time to buy? we have the tas deilahead. you are watching "fast money", live from the nasdaq marketplace in times square. we are back, right after this. and every new business that just opened! like aromatherapy rugs!

i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪ i had no idea

investing regularly could add up this much! ♪♪ go to investor.gov today to learn about compound interest and other valuable investment information. before you invest, investor.gov.

welcome back to "fast money", the euro hit a 20 year low. the italian prime minister announces his resignation. the country's president says he will not accept it. what does this turbulence in europe hold? hello, rick? >> hello, melissa. it is so fascinating. this did not happen in a vacuum. there has been much leading up to this. greece is 193% debt to gdp at the end of 2021. italy is at 151% debt to gdp. yes, this is problematic. he would close in front of

parliament. he will see if you can get more confidence back. the tenuous hold of his group, the coalition, does not seem to hold together. the five-star movement is backing out. when you look at what is been going on, the dollar index, keep in mind, the euro currency is 57.6% of the dollar index. we talk about color strength, we talk about your weakness. europe needs natural gas. who has it? the russian. what about manufacturing? what is the best manufacturing? germany. the cost of kilowatt hours is soaring. this will play havoc with the euro and the euro zone. it is shocking to think that they could even narrowly avoid a recession, given all the moving parts. the next thing is a key one for the euro zone. we are looking at the nordstrom pipeline. it may not open.

what about the impact here. we are seeing the weight on the euro going lower. yes, the third day you brought it up in the intro that we dabbled with this. many of the systems that are computer-driven, it is the closing that is a trigger. when you get that trigger, you might get more volatility. i think what will ultimately happen, on the 21st, they will raise rates for the first time is 2011. it has been over a decade. the notion of this fragmentation, how she will mop up liquidity of the northern economies? germany's debt to gdp is a 69% during the southern economies, where the debt flies every time it looks as though quantitative tightening is going to happen.

this will give her an impossible job. the last time you came on, so i will get you wound up, i'll try to do it again. why not here on a thursday night? we have not used this term, but the currency crisis is going on. we don't talk a lot about this, but it's right in front of it. we did not even talk about the yen. what does that mean, if anything for the markets? >> it has a horrible, cascading effect. it is great to have a strong currency. tomorrow, when we get import and export prices i guarantee you, export prices will make an all-time high going back to record-keeping from the early 80s. with the dollar so strong, in inflation running so high, so counterintuitive. what we export is expensive. what we bring in, we can buy much more. it's horrible for any countries, especially emerging markets that have debt

denominated in dollars. you will have to scramble to get the dollars to service the debt. they will pay premium prices at the time when they have so many other fires to contend with. it might be a good thing if you live in iowa and you are buying things that are export it from other countries, but many countries will experience serious pain with the strong dollar. we have talked about this for some time, the big swing in the bond markets while equities have stayed less volatile. we want to get more on this phenomenon with the chief equity derivative strategist. it's great to have you with us. >> it's great to be here. >> was spoke with rick about the volatility we have seen in the currency markets. we are seeing this with a lot of assets except for equities. is there a convergence? is there an implication that volatility in the equity market should pick up? does that not have to happen?

>> you bring up a great point. i think the volatility in currencies and bonds, that is not surprising, given that macroeconomic backdrop. the huge amount of uncertainty around inflation and the growth outlook, and monetary policy. what has surprised investors is the relative lack of volatility in the equity market. they are remaining in the 20 to 30 range. [ indiscernible ] is could appear as a sign of complacency, had the equity markets up in price then, as much of the other asset classes. it is more a reflection of positioning, and the fact that a lot of investors have looked the risk significantly. if you look at institutional investors, especially the equity hedge funds. if you look at the net exposure

and the gross exposure, this is at multiyear lows. investors have already sold out of their stocks, and shifted to cash. why does that matter for volatility? if you go to cash, you need money to purchase goods. the lack of protection buying that we are seeing, this is one of the primary reasons that the raisin volatility overall remains muted. so they could talk about play defense. how about playing offense?? forget the equity folks, what about the global macro funding going after italy? 10 years ago, when i was a longshore diet and equity fund, the ability to step forward, it prevented a major sovereign crisis across europe. i don't see anything different here. this is what we started the

segment with. i think it will get worse. is funding being positioned? this is one of the best times i remember to be a global macro fund. i think they are hard at work here. >> i think the consensus trade, it's the continued widening, relative to germans. within the equities, i would say that we have been pitching that we still like the further downside in european equity. this is the region that is most at risk to all of the macro factors right now, such as rising commodity prices, and tightening monetary policy. we did like looking at the downside, which is the u.s. etf tracking european stocks. the reason why we like that is because you get exposure, not just to the stock component,

but the currency component. looking at the input here, you benefit from the selloff, the continued selloff, and european equity. there is also the euro getting weaker on the back of all of the geopolitical and economic risks. >> have a follow-up on the position of u.s. equities. if investors have moved risks and went to cash, what the implication to the notion of a bottom in the u.s. stock market? >> i will say two things that is important to keep in mind, we talked earlier about the convergence and volatility? i don't think it is likely. i think we could see further downsizing in stocks, without the explosion in volatility. in terms of when stocks will bottom, that is when the fed

pivots. i don't think they will pivot anytime soon. i expect inflation numbers remain elevated. the fact that the fed is targeting headline inflation to be at 2%. that is the fed telling us, as clearly as i can, that it is willing to drive us into a recession. that's the only way we get headline cpi balanced. is good to see you. coming up, a big bullish on tesla. we will kick that arou nt.ndex alibaba shares dropped. with the details when "fast money" returns. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price.

invest with confidence.

welcome back to "fast money" , cosco has been elevated to a buy from hold. they are a performing in a high inflation environment. customers are looking to purchase in bulk. cosco is the biggest gainer in the consumer staples today. tim? >> feel to the chart, it has been defensive for a few weeks. after we got the inventory in

the margin, and the guidance from target, walmart, and from cosco, they have all been rebuilding their charts. costco, even more so. as he was about 250 basis points better than the street. if you look at the margin, it explains why they trade at a premium. best in class. is hard for me to chase this wedding target and walmart have a lot more value. see making like the premium? >> i do not like it 200 points ago. that was a mistake. cost was a bold call. should it be at 42 times? you think that it will go up that much more? stimulate target and walmart will be substantially lower. >> karen laughed at that. people can talk to us. our crack producer said they kept hotdog prices stable.

the hotdog special in the food court is a dollar 50. distracted they have samples? >> i hope not. they cannibalize selling their hotdogs. it's been cabinet fires it up to get a years supply all once. >> whatever it is, it is expensive. did you notice who else was upgraded in a similar space? i won't tell you the answer, but it is dollar general. i believe that is gordon haskett. they upgraded the stock, coming around to our way of thinking here asked "fast money". >> i do know oldman sachs. from the betrayed, tesla lost the autopilot. one auto trader is making 1 million. mike is calling the action. tesla is normally the biggest single stock option that trades in the united states.

it was today by a good margin, beating the next five biggest, combined. the options market is looking at a move under 9% by next week. next week is when they will be reporting earnings. that is more than the 5.5%. it will be interesting to keep track of how that proceeds over the next trading days. the trade that caught my eyes was the purchase of 3000 of the august 8 80, 910 call spreads. the buyer is spending $900,000 in premium. they are spending three dollars per spread. that trader is betting that the stock will rate rise 24% by the august expiration for that to be profitable. turn into his full show at 2:30 eastern time. authorities are calling in some top alibaba executives. we looking at the ripple effect on investors. we have golden delicious

gains for apple. what is next for the name? i do not go anywhere, "fast money" isn't back in two. ♪♪ ♪♪ ♪♪ take the world by cloud. accenture let there be change.

(vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. which means you sign up, get help, and pay all right here. so you get a single-line unlimited plan for as low as $25/mo. switch today at visible dot com. finding the perfect designer isn't easy. but, at upwork, we found her. she's in austin between a fresh bowl of matcha and a fresh batch of wireframes. and you can find her, and millions of other talented pros, right now on upwork.com

the wall street journal

report that chinese authorities called in the alibaba cloud executives with a massive data leak. it is stored on the company's cloud platform, contain sensitive information on nearly 1 billion chinese citizens. that is the biggest data leak in history. shares of alibaba sunk 5%. should investors stay away from them? >> this is right in the wheelhouse of where they can claim, mean chinese authorities, that they need to look out for the social good. they need control of cyber security in cyberspace. for a company that ran 61% off the low and broke through the downtrend resistance, getting above the 200, it has pulled back. this is a stock that pulled back along with the emerging markets on the opposite of the dollar. as i have said for months, getting them right is not about them growing 50% or 16%, is big

brother off their back? i hate these headlines. it is not a reason to run. but this is why you put stops in companies. stops are not hard levels where you automatically sell something. it's where you have a conversation. 200 was a key stop level. if you follow that when you realize where the information flow is going, in hindsight, it looks smart. >> ou are in, you're out, then you are in again, karen? >> that's right, now i am really out. it is too much mental headache. i do agree that it is not about valuation. it doesn't matter if there is another covid-19 resurgence. it's not about that, it's about this. >> e talked about pinterest, seemed like a reasonable valuation. you look at all that cash. it is a profitable company. we know they don't have the overhang. there plenty of places to go bargain shopping in this space. we don't have the regulatory overhang in china.

coming up, chris gaines, apple outpaces the s&p in a big way. what the client says about the market. we break that down when "fast money" returns. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? 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 (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. yeah... oh. don't worry i got it! how are we different? we exist only on your phone. which means you sign up, get help, and pay all right here. so you get a single-line unlimited plan

for as low as $25/mo. switch today at visible dot com.

welcome back to "fast money", apple is making smooth moves. jump brought up from the former market that was flat in july. why is the outperformance happening? >> it is offensive. tim talks about this all the time. people think, where can i hide? they found that apple is the place to do it. this'll be about the guidance. i don't think the guidance is great. people say, wait a second, this is a company that is great. they don't have the eps growth that works with the valuation at their trading. i think it will sell off after earnings. >> we have seen one to one correlation in the last six weeks. that is the defensiveness. it is an environment, where you are getting growth out of apple. you are getting less growth.

this is the best company in the world in terms of execution. they will be in a low rate environment. >> the fed is buying it as well. think you know i was saying that a bit. it speaks what you are saying about the defensive nature of it. you think about the weighting of it. you get this outperforming the way it has, the market could have been a lot sloppier over the last few weeks if this didn't have the rally it did. it speaks to the fact that people are rotating out of high evaluations. >> [ indiscernible ] i am so neutral on this thing. we have new and neutral dan. >> member the day two months ago , i said 140, i put the fist down. at 140, i stopped talking about

it. i thought, and needed to have the valuation reset and the sentiment reset. it had that, now it's back. >> is not the best set up going into earnings. >> this depends on what day the week is. if it will rally back, it is fine. more than likely, it's not the case. >> i like the green ones that are at heart. the >> that is granny smith. >> asked me a fresh one. if you get one that is mealy, it's one of the worst things in the world. with the final trades up next. easy peasy. (vo) just $30 dollars a line. only from verizon. another busy day? of course - you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions

all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want - your team, ours or a mix of both. with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. powering possibilities.

it is time for the final trade. the retail companies are back in the game. we saw cosco. target is the better evaluation. >> karen? >> i do want protection if things go badly. spinnaker you neutral, dan? make interest surrounded the trade. if after the earnings report it came in, if it was bad, i think

i write by it. >> i was a proud father today when i saw you on the today show, killing it. they don't even know if they deserve your genius, dollar general. >> anyway, thank you for watching "fast money". do not go anywhere, "trade it or fade it?" with jim cramer starts right now. my mission is simple, to make you money. i am here to level the playing field for all investors. there is always a loophole somewhere, i promise to help you find it. "mad money" starts now. good evening, i am jim cramer, welcome to my world. we call my world, "mad money". that was march 14, 2005. that was the first time i greeted america from capital