still looking at a 60% drop so far. absolutely. it's got that bounce with a lot of high-growth names. we know the terms of the deal we >> we will see if we can get information on that. they have different rates for the institutional versus retail and the institutions tend to get a better deal and we will see if we find anything out of the share of revenue but we will keep you posted. >> all right. and that doesn't for overtime. right now on fast money, is a game over we a video warning and a weakness in gaming ahead of the slowing economy and the chipmakers get dented by the semi struggle. plus in the year end buyback from lips coming with 1% cap on companies buying back their own stock and big business frontloading they're spending

now. later on, bank battle royale, assembler summer crypto revival. on brian sullivan, welcome, everybody. this is fast money and always live from the nasdaq market site we've got courtney garcia, welcome. steve grasso guy adami. >> we start with the latest warning from big tech. dropping more than 6% and cutting more than 30 billion of the market cap after slashing sales, expectations and everything else. the chip giant stated it's gained a division down by more than 40%. the ripple effects were felt through the future and universal display, a indy falling in sympathy down 2% and some down more while the broader market tried to shake

it off and the nasdaq and s&p ended three day win streaks and the nasdaq a racino 200 point gain. let's talk more about this because it's an important company and the chip leader and i wonder if anybody expected it to grow because given there was a lockdown and everybody bought their kids and teenagers computers and i wonder if it's the canary in the chip mine or a unique situation. >> welcome. i won't get into the anchorman with the san diego stands. i will say this, the good news if there's good news is the data center, they don't seem to be concerned about data center which is a big driver for them. gaming, it makes sense if you think of where the world has gone but the question is, is a game and versus potentially data center next and in a

company that trades north of 30 times, some have to be concerned. the talk is gone from 145 is. now we are pulling back. is is still rich in this environment and you know what, i've got to say yes. i still think it is expensive. >> a tough day but you saw on the chart, still above where it was a couple weeks ago i don't want to call it the end of the world. >> i look back on the february 2020 level and we can argue over whether that is the proper level or not. we are not going to do that right now but we will not do that right now but $80, $178 right now. it has had a little bit of a run but a declining trend line. chips went from a drought to what's going to be a glut.

not only pulled forward but they will over order see you have car companies or during what they have already needed and that means i will not have a business going forward and it's cyclical. they are in a downtrend. >> it cyclical but are they sick we >> i don't think it's that surprising as we send the chipmakers coming out and showing demand is deteriorating and the question is are they over ordering and will do have a huge oversupply and they do think that is the largest concern. i think they might be up for maybe a couple quarters and a certain point in time i think you ought to look at it longer term and i just don't think we are there yet. >> a little overvalued. >> number 1, it's a massive company and a leader in many things like gaming, data centers and cars but number 2 also a traders favorite and

people probably don't even care or know what the company does and it's one of the favor of volume stocks out there and how do you read nvidia's news and charts ? >> back to what steve said and i mentioned this last week when we talked about the earnings and the stocks are still in a downtrend. a indy rallied 40% of earnings. the 200 day still slipping downwards so i mentioned last week we talked about nvidia and guidance will be key . i basically said it could be sold in a significant way because of the chart and i think that will be the trend and also nvidia turns higher than amp with similar projected growth out next year. i don't know if they are particular to the stock in the near term but it's a good company with plenty of things to be excited about.

lots of things going on but some of these are longer areas that will take time to play out and what the market wants now is where is the growth today so i think that is part of the problem. a long-term business but my guess is you have negative price action and i think you will end up buying cheaper. >> it may not be the parent judge of semis but it's the anthony rizzo and it matters to everything, is this morning going to seep through to the rest of the group more or maybe the macro markets or can the markets do well? >> the short answer to the last question is i don't think so the semi is a huge driver for the broader market and if the sector starts to give it up a bit i think it will be a problem and in terms of nvidia,

it may well be nvidia specific and i don't think it is but the problem in the market is people are selling first and asking questions later and they look at amp, bit of a failed breakout still in a significant downtrend. this move with nvidia coupled with what we have seen in the s&p means we might have the next leg lower in the wide market. >> when you look at micron and intel those are the names and people fundamentally have given up on it and technically it looks like the charts are a waste of time and those are the only two names that dip below the february 2020 level. intel has not bounced back so i'm not saying he wanted be a buyer micron but maybe micron is the one you want to buy since it has already rallied above the level. >> i don't know if you're looking at my screens and

anybody and i can see guy and jeff and courtney, is anybody on the desk owning or wind willing to buy intel? and if you're on the radio listening, guy is shaking his hands like i'm crazy but nobody wants to own intel and i don't think anyone wants to own qualcomm. any names worth owning in this group? >> i think plenty names are worth owning but i know it's super cliche but a company like a&e, we talked earnings relative to intel and it became clear that a&e is taking share. if you can kind of wait in the weeds a little bit and stands in volatility, i think of the stock you may want to earn but i have a question cyclically that the business is exposed to and the economy starts to slow

down and you continue to have earnings and that the stock that i like a lot if you're talking about a one, two or three year time horizon. >> when you do longer-term there's a huge area of the industry and looking at something like nvidia, 20 billion on the cash balance sheet and it puts them in a good position to whether the downturns. is a longer-term investor you want to look at community and is long-term -- >> it will be data centers and always has been, the data centers will save everybody . >> your automakers and there's a lot of sectors that are going into it and right now gaming but there is a whole other world that the chipmakers will benefit from. >> a couple hundred billion of your money. >> it was supposed to be 10 trillion so a couple hundred billion but it is something

that should offer a little bit of a tailwind. cpi will probably come in lower. >> a couple hundred billion is the new million. >> on the back of the warning, where could the broader semi conductor space go next? here now to chart the index, carter worth. >> i thought we would start long-term and then work to the here and now. the first chart is all data chart. not socks itself if the sox is relative performance to the queue queue queue. the inception date was september 1, 1993 and you see the semi on a relative basis peaking and 95 and had an unhappy experience ever since and you see the annotation, bottoming out and ultimately i would rather be in the semis than thank you queue queue and

that is the point of that long term chart. we move closer and the next chart is absolute, the entire 2009-2022 run and we know the peak was july 07, 70% crash and if you extend the channel, we got so ahead of ourselves that we overshot and the pull back leaves us closer to the middle and we ricochet and in many ways the semis are a pair of twos and elected to back in the phil. let's go a little bit closer term and we will talk about the data. at the end of the day and there's no way around it it is the ultimate data trick. those are the moves from the low and the smh is basically double the spy but on the way down it was almost double too. here is the one year chart and

we know the socks on the peak was down 41% so it's down the most and it is up the most but the question is, where have we rallied to come right to the penny to the downward sloping trend in effect since the high, and natural place for this 20+ % rally to stop. >> if you're listening on the radio and you see the trend line, it looks obvious. is it that obvious? it is right on the 20%. >> sometimes there are levels that we can identify. and we tried to shoot against those levels and this is a pretty good level to identify. >> there you go. thank you very much.

jeff mills, you saw the charts and the first one, i did not fully understand. but what did you make for what he had to say? >> i tend to agree. i think you articulating what we were talking about that these are not the rallies in the downtrend and you mentioned with it being high data and i think that's what you don't want in the market especially after the rally. you could look at a lot of the other risky parts of the market and i'm not putting semis in the bucket but i think you have pricing tied in growth as we see the 10 year fall to where it is today. going forward you will see a divergence between really quality stops versus stuff that is more speculative with earnings further out and semis may get caught up in the downward trajectory. >> a lot of negatives to open the show. i think guy would call it a

block nasty. the gaming companies speaking and posted a revenue missed along with $.76 per share with the stocks are down but not a whole lot. more on the numbers. >> the stock was down way worse and here's what's going on now. first of all, the loss of 76 a share sending shares down that we are not comparing that. revenue is a tab light at $1 billion. and guidance, especially on eps, guiding for the quarter with the street looking for $1.59 with the current quarter and the guidance for the four- year and the culprit, foreign exchange but more than that the delay of two big games including one featuring comics characters and now on the

bright side, 44% and was down 25% and this is an important one that shows how many people are spending money and the games that they already own and it comes amid signs that gaming is declining and likely would help, zynga acquisition and they talk a little bit about that but still gaming is in a rough spot. we have seen this from companies like sony, nintendo and microsoft and we will get two more names coming up tomorrow. >> amazing what happens when the kids go back to school. things have changed. >> even though they were involved in their own section of the market, i would've thought that you would've had apple, google or amazon be a little more inquisitive in the entire marketplace and when you

look at the chart it's a lot more than the other charts. >> the game is hot and everybody plays it that this was $213 and change and it is the perfect stay-at-home pandemic play and everybody stayed home and bought computers and games and peleton. >> and you say that with other games. also sales going down and pcs going down and the trend is going away. people are getting back out into the world and are saddling and doing other things and i think the trend will continue but what is interesting is there are one of those players were in a recession, they were able to increase revenue and are one of those rare companies that were of the mind that we are in impending recession and it could be an interesting play with people getting cheaper

entertainment sources and it could have an impact. >> year a tremendous gamer, don't kid yourself. >> i sit in australia and i say load up and you will never come at me. >> you're wrong about that, you work your way through madagascar are. i just gave it away in case anyone wants to play online with me later. we effectively traded down to the march 2020 level and if this stock does not sell off on the back of this, i think you cannot take two. >> if it does not sell off or does not sell off much -- >> it's one of those names where steve talks about it all the time and nailed microsoft's and if the stock is green tomorrow, don't take that moved to the

outside. >> coming up, retail stocks in a rally but especially one that went completely bonkers today. is it time to add the meesnas to your card and one financial to your card and one financial stock making a forceful higher . but you can invest in them. we believe that your investments should work harder for the future you imagine. with others keeping up.

we have got a big stock alert and the stock that is crumbling right now and that is nova voc. the shares are down 32%, $18 a share down. the company with the forecast, they have been falling short of expectations and novavax posting 650 a share and novavax looking at 550. revenue 110 million less and even worse, dramatic guidance cut and expect revenue 2 billion to 2.3 billion versus expectations of 4 billion to 5 billion with a lot of hope

around this company with a covid vaccine, particularly. i don't think it's unfair to call it a disaster of a number. at least right now. >> this stock was $300 and when they said no demand, for human beings, that's a good thing. it's not a good thing for them when you have all your eggs in one basket and the inclination for people is i think you have to sit on the sidelines and look for huge volume base stocks that trade 7 million shares. north of 70 over the next couple of days. but certainly not here in my opinion. >> you nailed it it was 320 a share. >> no longer a vaccine story so if you want to be in the segment to stay away from

vaccines, the pharmacy stocks with the new bill maybe want to stay away from there as well. small-cap biotech. >> a one trick pony and very binary if you buy something based on a vaccine where we have a pandemic, you're not really buying something for the future. >> you hate to say it, 40 million americans gaining weight in the pandemic already had a crisis beforehand and can we get rid of the play and i hate to say it but a lot of nasty stuff out there. >> you can think similarly about a stock like moderna. they are going to come way down and i have mentioned the company where steve mentioned biotech and i think that's a safer play. to supply a lot of the companies , some of them consumables and

that's a company with recurring revenues and you can write that trend and there are ways to play in healthcare and some of the best harts on the market right now is a particular stock that i like right now. moving up look at the retail, retail on the run. in rally mode at three and half %, gap, macy's and kohl's, are we allowed to show bed bath and beyond, the stock was up 39% and that's a whole different issue. 39%. >> if you're sure you have to change your sheets on this one, am i wrong to say that we >> i will let brian handle that one. >> jeff, i will go to you,

what's your take on the retail generally? >> i'm not going to comment on any changing of the sheep. that the whole different animal. we talk about this a lot, you make the most money when things go from bad to less bad and i was looking at wayfarer today up 14% and maybe somewhat more fundamentally driven but the stock was 75% below and a little bit of an upgrade from a cell to a whole but it was on cost-cutting efforts. 55% below the 200 is so short and if you're in one of the stocks at the right time, great but i would not be chasing this and you will do a lot better and it dollar general because of the product mix. we have a couple of charts i could throw up but they traced to the pre-covid high. i think someone with strong brands filter toward the high end and

i would rather be in those areas. >> i have to echo this. one of the largest markers is inflation and the lower income house cold is getting affected more than some of the luxury brands and when you're looking at the retailers, they will have a pop because they've come down so much but longer-term you want to work at the ones are not affected by inflation so the luxury brands like nordstrom, macy's, i would lean that way. >> you have to go to the dollar generals of the world or above that. bank of america, 38% of all bills are now paid delinquent. by the consumer. >> to that point, several have heard me talk about capri holdings but then think about supply-chain. not dissimilar to the semi conductor tours and we will go

from a drought to a flood and what are you going to do with the supply-chain? a massive amount in the stores and whoever ordered and who will benefit from that, ross, tj maxx or on the high end luxury goods, that's where you want to stay safe in this environment. >> there's a lot more facts to come and here's what's coming up next. big bang battle royale. one financial is outperforming the rest of the pack. should you put your cold hard cash into the stock? stick around to see if there's any interest. but first, digging into the inflation reduction act and what is in this jampacked bill and what ds oeit mean for you. those details are next. you're watching fast money live from the nasdaq market site in times square. we are back live

after this.

welcome back. the senate passed the spending and climate bill on the marathon weekend and now moves on to the house. what's in it? 700 pages long and one thing we can focus on here is likely 1% stock buyback text with details and other items that could have got your money in the financial market. are senior congressional correspondent, how have you been? >> it's about 11 hours and counting but it's okay. democrats the inflation reduction act headed to the house for a vote on friday after finally clearing the

senates over the weekend and the bill include substantial taxes for the biggest companies including a new 15% minimum tax for corporations with more than $8 billion in profits. business groups did when he concessions during last-minute negotiations with arizona senate kyrsten sinema and they can still use accelerated depreciation and in a statement the industry argued that it directly employed 11 million americans with thousands of small businesses and deliver the strongest return for pension and said we encourage congress to continue to support private capital investments in every state. it will also impose a 1% excise tax next year and that measure is expected to raise $74 billion and it could incentivize companies to return more money to shareholders in the form of dividends and the 1% tax translate into 1.5%

increase in corporate dividend payouts. the original version of that idea did call for 2% excise tax so it's possible that wall street dodged a bullet. >> very quickly, any chance the house tweaks it? is there something going to be changed and the house will pass it and it will be this as it . >> there's very little chance the house does anything to match the delicate negotiations and progressives have said that they are excited to pass this moderate and have said they support it so i don't think you will see anymore fiddling with the details. >> they kind of did as build back better with some other tweaks. guy, any thoughts on the market or economic impact on the buyback tax? >> i also enjoy. ended my day. 5:00 am and i watch on reruns before i go to bed.

number 2, not nearly as worried about the buyback tax. there was so much money sloshing around the system created by the government and federal reserve and in terms of inflation, down from 9.1% down to 7% but it will take a long time to get down to 2% so if you think the fed will magically pivot, think again. >> generally, jeff mills, they did not seem to care that much. a couple stocks pop but not that much. >> if you listen to goldman and don't quote me exactly but they said there's going to be a very small impact on 2023 gdp. for me the most interesting thing is the 3% minimum tax and

overall s&p 500 earnings may be a reduction of 2.5%. it doesn't seem like a lot but in a world where earnings expectations need to come down, anything that will create a headwind will be noteworthy. >> good stuff, friday a day that will get passed and signed on saturday. the inflation reduction act will have a negative impact on the macroeconomy. we are joined now, looking at something with texting patients and they said it might cost 30,000 jobs and contract a little bit and a lot of the inflationary or anti inflationary like medicare pricing, don't kick in until 2025 or 2026 and it goes to the bond market for the federal reserve. how do you read it? >> a modest type of bill as well. it's a ten-year bill that a lot of this stuff doesn't kick in

for another couple of more years. in a world where we want to know what the fed will do in september and what inflation will be, those are 2022 stories and will continue to dominate the market and once we get past that if the bill survives the projected change to the republican congress or one of the chambers to the republican congress and then we can start focusing on it. 87,000 new irs auditors, the biggest government agency in washington and it could maybe have an impact. >> the market seemed stable but we talked a lot about the federal reserve but it's called the inflation reduction act and was called build back better and they tweak it. is there anything that you see that will actually reduce inflation any time in the next couple of years? i don't and even some of the

government agencies don't. >> i don't see anything that will reduce the inflation rate but there are something that might reduce description drug prices and maybe a couple things here and there that will be good for those people that rely on it but will it bring back cpi to a point where we could see that point, i don't think so. >> how do you read inflation? we mention the car prices because i'm in the market for a car, my car is dying but i'm driving the heck out of it because i look at used car prices and i'm sorry on not playing this for pain x for that car and i will throw a bunch of money at my old car. do you see inflation coming down because airfares might fall a little bit? >> first of all if you're not going to pay x for that car

then you will have to walk because it's the only way you will get a ride right now. used car prices in the last 18 months have outperformed cryptocurrency and one of the best investments. used car prices have been soaring and they outperformed crypto in 2021 when it was up and now outperforming it this year because crypto is down but they have been very, very good. as far as inflation goes, i've been in the camp that inflation is persistent and is going to stay persistent, 9.1%, probably not but it might settle down into a 4%, 5% or 6% range and we will need a 4% or 5% fund rate. what is it going to settle in that range? wage in place and from what we saw on friday is 5.2% and is looking pretty sticky. if we have 5% wages then you

can pay 5% inflation so it's not going to go much below. we need to get wages down to 2% in order to get inflation down and wages aren't moving and are staying pretty solid and employers are paying off to get people because they have got 10.7 million open jobs. >> well said. we will go quickly to guy then steve grasso. it affects the fed and the fed pushes the market around. how do you see inflation right now, coming down to 7% and that still really high. >> and that is probably what we will have. i'm with jim and have been with him for a while in terms of use. it's a long way away from two and it ain't getting there anytime soon and a lot of the rally predicated on the misguided belief that somehow the fed will pivots and they

are not because inflation remains hot. if you're buying stocks on the fact that the fed will reverse, you should be selling them because they are not. >> i think it is a supply-chain issue. used car prices have never been the same price as new-car prices and i think that should tell every other commodity and the cti will miss to the downside track. >> i will be driving grasso's gremlin. speaking of inflation, when clean energy etf getting bumped and the options pit and what direction that trade the global mean energy atf. it's still early and bit coin is off to the races. will continue to climb? those trades and more when we

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first it was novavax getting crushed and now a new alert on so five there dropping to two major investors selling shares. who is selling and why? >> the seller is softbank.

they plan to sell some or all of it so five shares in the filing with the sec and i just checked it out and softbank has a 10% stake in sofi . reported earnings the shares have been rallying and it comes after softbank reported $23 billion reportedly lost in this morning also exited in the prior quarter so the latest that softbank is trimming and it looks like they're selling at least some of the shares. >> raising money is softbank announcing it lost $21 billion last quarter. and it could be 19 billion for you. you're a san diego fan and the beloved chargers play in sofi stadium and los angeles but

it's just softbank raising money. >> that's how we have to look at it. i would not look at this specifically. >> sofi is not cutting it is softbank and they own a lot of everything. >> it could affect the stock in the near term. at the same time if it will be a near-term issue, as a long-term investor, i don't think it is necessarily a sofi issue . moving on, the i shares clean energy etf rising for a third straight day and advances on capitol hill and it includes 370 billion in climate and energy provisions. and the ctf could climb even higher. >> nine and half times the average daily volume and a lot

of institutional activity one of the most active contracts was september 24 and we saw nearly 22,000 of this purchase for $0.72 with the buyers betting that they could rally by the september expiration by 10% or more. >> thank you. for more options you can tune into the full show, every friday at 5:30 pm eastern time. coming up, as good as goldman? the stock outperforming and could they keep rising? than the so-called crypto winter giving way to a steamy summer giving way to a steamy summer surge. before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. bit coin and beyond. bit coin and beyond. we

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welcome back to fast money. the big bank battle royale is on. goldman sachs coming out on top. outperforming other financials over the last month, especially

j.p. morgan chase. you flagged this one, what is your take, is goldman being great and goldman being spectacularly average? >> i'm not suggesting by any stretch that the music is over. what i will say is goldman will continue to break through to the other side and we talked about it before, this environment, goldman sachs trading will absolutely crush and that's what's going on and in a world where j.p. morgan is taking provisions, goldman sachs is showing it on the trading side so i think it will continue and i think goldman should be $360 stock where j.p. morgan is mired in the 114 area. it favors goldman sachs over j.p. morgan. >> a big bank feel or a comment for us? >> i cannot hold a candle to guy. i said before that i'm not

super high on the banks in general but guy hit the nail the head. investment services 90% of goldman's revenue and j.p. morgan more traditional banking. the one thing i would say relative to goldman is sparing the 345 in the base, it should be resistant so i would pay attention to that and you have seen the evaluation differential which was benefiting goldman, completely evaporate. i tend to agree with guy, longer-term, j.p. morgan is cheap and goldman is basically average and now expensive versus j.p. morgan so it may be a little bit of a longer-term perspective. >> what i have to add about goldman istrading is their bread and butter but are getting into management and more diverse revenue and it could lead to better things for long-term. i do also like j.p. morgan. if we are going to be in this period where we have a soft

landing, banks could start to look attractive . >> but you like it is a bank bank but not as an investment and these are more investment banks and savings and loan . >> with goldman sachs and more so j.p. morgan as traditional and they are in the reserves and they do not need as much of that on the balance sheet and it could look more attractive for them. >> up next a bit of a crypto come back. ether floating higher in the 60+ % and bit coin, what is 60+ % and bit coin, what is driving this move and will like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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a sneak peek at the kramer camera. that's at the top of the hour on mad money and you can have jim cramer write your inbox, sign up not now or just point the phone at the big qr code. do it now because it's about to go away.

coin base shares are surging ahead of the earnings report tomorrow as they are expecting a meaningful drop in revenue and profit. crypto quentin been under pressure and it could be reversing. bit coin, you name it they all rallied today. j.p. morgan out and finally found it, do you buy it? >> i don't. i think it's part of the high risk rally that we've seen. i put it in the category of things being held by lower interest rates. when we see the divergence between speculation and quality on the growth side, bit coin is going to get caught up in that in the next risk decline that we are going to see and i think bit coin will get sold hard so i would not be buying in this rally. >> i have to echo that. what we see right now is a little bit of bounce and if all of the growth stocks coming up and i would not be jumping into

those. >> don't the best market rents come with the worst markets? >> ever rally starts with a short covering rally. >> goldman sachs showed long bought short covers the highest ever had in the last two weeks. >> we have seen it enough to know how it starts with a bounce off the bottom and you don't know if it's long-lastin . i agree with the rest of the panel but i think it will last a couple more weeks with the down flush again in september d. october then we rip and tear an >> squishing is is a technical term. term. >> up (man 1) we should go even higher! (man 2) yeah, let's do it. (both) woah! (man 2) i'm good. (man 1) me, too.

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final trade time, mr. mills, kick it off. >> it caught my eye and bounced to the penny off of the pre- covid high. it's downward sloping with the moving average. >> i will be waiting for the sun

, the worldwide exchange tomorrow. >> clean energy might be a part of it. >> ai-based clean energy storage. >> like it. my mission is simple, to make you money. i am here to level the playing field for all investors. i promise o help you find it. mad money starts now . hey, i'm cramer. welcome to mad money. let's try to make a little money. my job is to teach you, so call me at 1-800-743-cnbc or tweet me at @jimcramer.