in rates or a step-down in tightening the 75 basis point hike expected and fully priced going in the s&p up about 10% in three weeks, still down 20% from its all-time high. a lot of folks think december is the real question. we'll hear the powell comments in the press conference to get a better light on that that does it for "overtime." "fast money" begins now. right now on "fast," the fed is on the clock. just 21 hours until the next decision on interest rates and chairman powell's all important news conference. the markets had a strong start to the fourth quarter. what are the chances the rally can keep rolling along we'll debate that. plus, a flood of results from amd to airbnb to caesar's and more the stock moves from been all over the map we'll go inside the numbers. and later, fresh call to ban tiktok here in the united states details on one fcc's commissioner's push to get the chinese video sharing app shut down we'll go inside names like meta,

snap and more. i'm melissa lee. a full house, tim seymour, karen finerman, courtney garcia and the central bank widely expected to announce another 75 basis points hikes tomorrow. investors will be laser focused on how much higher they'll take rates. the nasdaq giving up a gain of more than 1.5% locking in its fourth down day in five sessions but couple of single stocks making big moves today amazon dropping 5.5%, falling out of the trillion club for the first time since april 2020. old, sofi jumping more than 5% after the company boosted guidance for the year. the stock hit its highest level in over amonth and went up another 6% on top of yesterday's gains. that's its best two-day gain in two years. so what does all this action tell you, tim? >> well, it tells me that the fed is still very much in play we came into a china rally, which was suddenly less lockdown, maybe china is opening

up, wha ha, we've heard that so many times it gave ground on the jobs data, and employers are not necessarily firing, they're freezing and we've got payroll number on friday but the feds tomorrow, a and the market is responding to the fed. and responding to the fed, therefore below that is the nasdaq, which has underperformed the s&p. we know about the mega cap tech disappointments over the past week but down about 3% relative to the s&p. and i continue to point out that you're seeing that underperformance of what was tech leadership with its semis, whether it's the triple qs to the s&p, those down trends are very much intact i'm not saying they have to go a lot lower, but they could when you look at the moves made during covid alone. >> risks to the upside or the downside, bonawyn when you think in terms of what the fed could possibly say to satisfy the markets a this point >> in the short-term, i think the risk is to the upside. we have the tendency to believe every time going into the fed

meetings that they're somehow going to pivot or become a bit more dovish. and i think we tend to parse that information and the information that the fed is disseminating and look for a dovish tilt. i wouldn't expect it to be any different tomorrow while i'm with tim, the down trends are very much intact, thing is a lot more tightening or plateauing that needs to happen i think investors are going to be looking for that dovish tone. >> just to understand what you're saying, you think they're going to be hawkish, but the sort of the risk that people aren't expecting right now is something more dovish? >> i definitely think they be more hawkish. >> i do too. >> regardless of the extent of hawkishness, there will be a dovish interpretation. >> i agree with the hawkishness. >> said hawkishness. >> said hawkishness, right there. has been a rally into this. >> right. >> a big rally. >> 12% from the cpi low print. >> so that's a very big rally. that's a lot of pivot priced in, whatever you want to call it,

dovish, pivot. so to me, i think we could get not only not dovish, but i think we could get extra hawkish that could happen. but also, i don't even see -- i do think we'll see the 75. but i don't know why they even need to give any guidance. why sort of give a dove leaf out there for free do you know what i mean? >> right why let the markets keep going. >> yes >> that's what they don't want to do. >> right well, they've been trying. to be fair to the fed, there aren't that many fed fans here on "fast money" in general, there is a ton of fed speakers out being very hawkish and the markets simply do not want to believe them whether it be kashkari or brainerd. time and time the same message that we're going to push against inflation. and yet here we are. >> well, i think people already are expecting they're going to raise by 75 basis points tomorrow likely they're going to do at least 50, if not 75 next month

50-50 odds people don't know what to expect right now. talk about conflicting data. you're also coming out right now. we had the i-bonds trading at 10%, just went down to what it is, 6.8% i believe, which shows that six months ago, inflation was significantly higher than it is today, yet the fed is saying okay, but inflation is so high that we can't get it down, which is very conflicting. why are inflation bonds dropping yet you're trying to get handle on inflation clearly some inflation is coming down i think that's what the markets are trying to grasp on to. but i don't know if we've seen the data enough for the fed to become dovish. >> you couldn't by those bonds i was on that side just fo fun -- not for fun, obviously, it's an investment >> that's fun for you. >> you could not get on it but in terms of -- let's say there is a step-down is that enough here to continue that rally that we saw for the past couple of weeks since that low cpi? >> the rally is a function to me of sentiment, positioning, and

maybe even some seasonal sprinkling in, even though i know it's a little early to do merry christmas. it's a shame, guys. >> it's really not too early. >> how many shopping days at this point but i think what we're all saying is this is the most uneventful 75 basis points in the history of mankind >> the hike itself could be one of the most consequential news conferences that we've had in quite some time, right >> except for what -- and this is what karen was saying why even bother? what does powell have to gain by actually throwing the market a bone he hates that the mark has rallied 12%. i don't think the fed wants to see financial conditions loosen any more than they have. i think the dollar has run out of gas i'm not saying it will forever spreads have come back in after tightening up a bit. obviously we know what the yield curve is doing the fed has a very tough job on this one because people presume this to what i just said, 75, no problem. we now expect 75 i don't noe we don't expect it for december, but we expect 50 we can all look at the

probabilities. the fed fund futures are out there for everybody to look at it it self-adjusts all the time i don't know what the fed has to gain by trying to anything but sound what they've been very consistent that's tough do. >> tim had mentioned position. what is interesting, has happened in in the past couple of weeks, maybe three weeks is consensus is there is going to be a lift to your end. you wonder if positioning as such are expecting that rally into year end whatever the fed says because probably there is expectation of a fed pivot whatever you want to call it, people think that the fed is going to lay the conditions open so that there can be a lift into year end seeing that that's consensus gets me thinking that maybe people are positioned incorrectly on one side of the vote and if something different happens, wow, what a reaction we could see. >> that's true i think there is this multifaceted because you have fed meeting tomorrow but also next week with the midterms which tends to be a catalyst a lot of people are expecting that could be a positive

catalyst, depending on what happens in the house and senate, but any more republican seats get taken could theoretically be good for the markets and also going into the holiday spending right now we're seeing consumers really strong. i think that's why people are positioning this way to your point, is that accurate? i don't know i'm definitely on the more optimistic side here but i think it's not just the fed. it's all of those things combined >> i mean, the mid interpretation i was thinking the past two weeks could be in part because of the expectations. >> it has been seeming more and more red >> there is a lot of debt on midterm elections and what they do how about an earnings tonight season apple just had record earnings and we talked about their guide ad nauseam the beats have been coming through. they've been coming through across the board while companies have the backdrop to be much more cautious on the guide, not all of them have been. i think that's part of the why the sentiment right now is okay, we get a little out of the fed, positions, sentiment, we've got more room. >> all right let's get more what to expect from the fed tomorrow.

michael schumacher from wells fargo security, great to you on set. welcome to the nasdaq. >> thanks, melissa great to be here. >> in terms of investors being long, if there what i read in the note, it seemed like maybe you thought there wasn't much upside to go here in terms of what the fed is going to give us >> it's interesting. at 75 done we don't have the talk about that anymore. really, it's the tone. is it 50 next time is it 75 we don't know. and also, what does the fed do longer term? this is what is getting lost i think in the whole discussion. how long is the fed going to stay pat once it gets to whatever that terminal point is? is it few months six months a year i think it might be 12 months, maybe longer people are not set up for that they're not thinking about that. but the problem is they won't believe jay powell tomorrow when he tells them. he had to beat them over the head time and time again one time, two times not enough. >> so you think he is going to be very hawkish tomorrow >> i think he'll try, but he won't succeed, and the reason is you've got q&a his best performance really was

at jackson hole. what was that? eight minutes, leave the stage, no time for coffee, sorry, drop the mic, i'm done, i'm going toe look at the tetons tomorrow. but he can't do that tomorrow. he'll get quizzed. a lot of people ask tough questions. and he'll tend to hedge at some point. and i think that's the issue for the market if people get a whiff of an idea that maybe it's the last 75. i can't believe we're talking about 50 like it's a nonevent. but it would be a relief almost. i suspect the market is going to take that and kind of run with it and you'll get a fairly short-term rally in risk and long-term treasuries, that kind of thing it's really tough for powell to get home that point we're going to stay. he can't do it easily. >> you mentioned what happens after in terms of how long rates remain elevated. if i said to you, michael, we know the fed is going to keep rates where they are, plus 75 basis points, maybe plus 125, for the next six months versus the next 12 months, does that change your view on how you

allocate a portfolio or how you allocate a recommendation? >> it does if you think the fed is going to be on hold six months, it makes bonds a lot less attractive and it makes taking risk not appealing. the market is priced for something like 40 basis points of easing give or take in the second half of next year if that's off the table, you want to own as many equities, probably not you want to own long-term treasuries i doubt it even the short stuff is not that great. maybe the i-bonds might work, but not a lot of great alternatives in those scenarios. it's probably too soon to take risk in that case. >> so michael, let me ask you, let's say they get to this terminal rate, and i would think that at that point, they're very depend on what the inflation environment is where does it have to be for them to finally turn around and ease >> yeah, the fed will focus on core cpi and core cpe. right now inflation is just high it doesn't matter. but it's going to look at core more and more as time goes on, i think. and we've got core going down to about a 4% annualized rate early

next year. so pretty good drop from the current level of 6 plus. toward the end of the year, around 3%, that's probably getting toward the neighborhood that if the economic backdrop overall is really poor, the fed might conceivably come in to ease but it's not quite there so you've got to ask yourself, if inflation runs above 3, 3.5, would the fed really contemplate an ease at all i doubt it but if it's 3 or 2.8, would it maybe. it's that core number. and it's probably in the latter half of next year. earliest case i would suspect later. >> how would you think about our recession plays into this in terms of how the fed gives up hiking, maybe even cuts and how that factors in for next year? >> this is why jay powell gets the big bucks, or at least is on the hot seat he is going to get a tremendous amount of pressure, he and the whole committee. you can imagine a scenario, and this is what every client wants to talk about in some shape or form inflation is down, but still high unemployment is up, maybe it's 4.5, 5%.

equities not so good what do you do if you're the fed? one thing you do for sure is get a lot of pushback from congress. >> already that's happened. >> it has. and it's going to intensify quite a bit. it's going to put the fed in a really tough spot. if unemployment does head up to 4.5 or 5%, does jay powell really hang in and fight inflation? it's an open question. i think he will want to. the rest of the committee, we're not sure >> michael, good to see you. thanks >> thanks, melissa >> michael schumacher. bonawyn, how do you think about all that >> i think michael raised a couple of good points, reaching a terminal rate and persisting there. that's really what's not priced in like we said, 75 is off the table in terms of -- it's all but a give in. 50 the following month is all but a given. and then the economic conditions are also kind of the variable there. and i think it's presupposed that we're going to get to some terminal rate, have massive erosion in underlying dynamics, but that may not happen. a lot of the economic indicators we're getting whether it's

jolts, construction, the last gdp reading said things are holding up very well so we might have a longer tail or top to that plateau than perhaps is suspected >> we talk about the pressure that's coming from congress on the fed. this is a group of legislators also that are like traders they have not seen an environment where they haven't had the tailwind of monetary policy and do your job too. fiscal policy many times is not really matched up. i'm not encouraging because we've been watching this tug-of-war between fiscal and monetary over the last three weeks, especially in the uk. i just point that out. i think you get back to the sectors that perform in lower growth environments. it sounds boring, but health care and consumer staples are going to continue to work. i think energy will continue to work, because there is nothing in this backdrop that i think deteriorates demand so badly when we're demand constrained around the world right now. all right. after hours shares of airbnb plus cross your heart and hope

to buy johnson & johnson scooping up heart company. will the $16 billion buyout boost growth we'll break it down when "fast ne rurns u and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

is it possible the only thought that comes to mind is... ♪ finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪ our internet isn't ideal. as you plan, protect and retire. my dad made the brillant move to get us t-mobile home internet. -which... we have to share our signal with the entire neighborhood.

yeah, now we do some weird things to get our speeds. well... i'm up. -c'mon kids. this sucks. well if you just switch maybe you don't have to be vampires. whoa... -okay, yikes. oh sorry, i wasn't thinking. we, uh, don't really use the v word. that's kind of insensitive. we prefer pro-lunar. yes, much better.

welcome back to "fast money. we got a pair of earnings alert starting with amd. shares are higher despite the company missing on the top and bottom lines the semiconductor company saying its revenue grew 29% from last year christina parks has been on the conference call. >> unfortunately, they're still going through all the numbers. since amd announced preq 3 sales. the company missed earnings by just a penny per share guidance also a little light but shares are up over 4% in after hours. and much of that weakness was due to the week pc market and inventory reductions across the pc supply chains, causing its client segment to plunge 40% year-over-year but the company, and that is the key point, is blaming pcs and not data centers the silver lining that investors were looking for in this report. so data centers accounts for roughly or over 20% of amd's business and it was up 45% year-

year-over-year, driven by certain server processors. even nongap gross marvin increased 50%, 2 percentage points the news was welcomed, especially after intel recently posted a 27% drop in profit for its data center and ai unit during the exact same time frame as amd but again, i'm listening in on the call, and they're just going over the numbers so far. no comments and questions yet. mel? >> kristina, keep us posted. what did you think >> that's the story. this was better than feared. when you look at the magnitude of how much this pc demand issue has been for amd, this clearly is a problem it's likely going to be a problem in the short-term. but they already let us know about a month ago that this was going to be a problem. the bar was lowered so significantly. i think that's what you're seeing now i do think it's starting to get attractively valued. it is significantly cheaper than it has been. it trades less than 19 times earnings which is well below

where averages are it still has some headwinds, i don't know if i'm jumping in yet, but starting to look attractive. >> relative to their own guide, they gave a terrible guide so they beat a little bit. but this stock has been pinned by that announcement and knocked the stock down 12 or 13% while the rest of the markets rallied, amd going into the print was up only 2% so the data center is as kristina pointed out, what people want to hear. taking market share from intel is still the story the fact that gaming is up 14%, people can understand those dynamics attractive relative to itself. i still think they're getting cheaper. let's move on toe airbnb shares are slightly lower, posting slightly better than expected results dev r. >> you got it right. the stock has been volatile. and after hours, despite record, the outlook came in line, but traps a little disappointing on the earnings call. chesky started it off by saying even with the macro

uncertainties, they are well-positioned for the road ahead. he pointed to newer categories that he says are here to stay. long-term stays are flat about 20% growth year-over-year and nonurban travel. the revenue outlook, perhaps investors wanted a little more average daily rate, take rate. also expected to feel some pressure going forward so that may be what's hitting the stock. remember, though, that airbnb commands a higher valuation on a forward p/e ratio basis versus over otas like expedia and booking. the bar was a little higher here the company says they're seeing no hints of a decline in people's demand and willingness to travel. finally, melissa, don't miss airbnb's ceo brian chesky on "mad money" tonight. >> deirdra, what is the seasonality for airbnb summer is a big season is winter also with holiday travel and ski season, et cetera >> this is exactly what i asked them it's actually less in the summer august is their biggest month. and remember the q4 of last year

fell right between delta and omicron. so they saw perhaps a bigger boom in demand last quarter at this time, making those comps a little tougher. >> all right, deirdra, thank you. deirdra bosa on this bonawyn, you're in this one. >> yeah, i am. and feeling the pain a little bit. but feeling a little bit more pain than maybe i want to acknowledge. karen and i were discussing this one before the show, and she mentioned this is a very asset liability business you look about 68, 70%, vis-a-vis 44 say a hilton or 20% for a marriott so that's really the reason it's there. talk about a tale of two cities. the expectations for this name, it was covid darling that was well positioned to hold up in a post-covid world so as i mentioned, they're also seeing long-term stays this isn't just like an overnight or work from home type of dynamic it was set up to take advantage of the situation there and now set up to take advantage of the situation now. and ultimately, the expectations just weren't met but i would look forward to a strong next year

>> i think it's interesting, as we were talking before i love the asset light model in general. i think in this environment, it's still an expensive stock. and so the market sort of tolerance for any kind of miss, little miss multiplied by a big multiple gets you a little bit of -- >> forward or something like that >> yeah. on -- they're improving the business on cash flow it looks a lot better but on p/e, a little -- a lot rich circumstances this kind of site you want to be in if unemployment is ticking higher, if consumers aren't going to spend as much? or is this exactly the kind of stock because they won't go to the hiltons or marriotts and stay in an actual hotel and they'll go and rent a house? >> thing is a stock that sees major benefit during time of pent-up demand it's the ability toe do quick bookings and get through i just think it is a valuation story. on a forward ebitda, it trades almost twice what bookings trades i think it's going to be one of the first place consumers are going to cut back.

this pent up demand on top of inflation means you've had a big pull forward. >> we're seeing the airlines too, but people are still traveling. that demand has not come down yet. which is great when you look at the economy. not as great when we think about what the fed needs to do moving forward. what i think interesting is looking through to what it means to the consumer. the demand is not slowing down so far there is a lot more "fast money" to come. here is what is coming up next >> a $16 billion debt. johnson & johnson buying a meditech company for a hefty premium. but is this just the start of more deal-making to come we get some answers, next. , tiktok on the clock but this party may stop. the viral video platform in focus as calls for a ban come from the very top. so is this a big win for the u.s. social players? you're watching "fast money," live from the nasdaq market site in times square. we're ckig aerhiba rhtft ts.

personalized financial advice from ameriprise can do more than help you reach your goals. i can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech.

uh, how long are you... i'm done. i'm okay. [drone speaking] technology lets drones deliver pizza. no,no,no! have a nice day. but to deliver powerful insights that are on target you need more than technology. you need cdw. we can help transform and manage your it environment with a dell technology solution, so you can use your data to innovate. wooh pizza is here! i'm still gonna eat it. me too. tip please. dell technologies makes data driven insights possible. cdw makes it powerful.

welcome back to "fast money. we've got an earnings alert on caesar's estimate. the stock is lower after hours contessa brewer has been on the conference call. she joins us with the very latest contessa >> the stock just popped, big headlines coming out of the earnings call on the top and bottom line. first up, the month of october set an all-time record we just learned that on the call the entire company up double-digits over last year over $200 million in ebitda. that's the key earnings metric for these casinos in a single month. ceo said on the call that's never happened before extraordinary margins, over 52%.

secondly, sports and digital betting finished positive for october. even though we're smack-dab in football season with all the promotional on the marketing spin that that entails, rieg says it is on track for a profitable quarter, though it may depend who wins the world series why? caesar's may have to pay out $30 million to mattress mac from his may that got mentioned as a sideswipe in the call. when they launched caesar's sportsbook, the target for profitability was the second half of next year. already to be able to talk about potentially that happening in the fourth quarter of '22, it's a big deal caesars will not sell a las vegas strip property that's big news coming in. rieg says the property they're thinking about selling keeps improving in cash flow, and the potential ability for buyers to borrow is declining. so they're keeping it. and one more thing i want to say on sports betting here, he said that the promotional verticals, they've been able to figure out

to more target, more accurately target the profitable customers rather than those who take the promotion and then never follow it up with any actual real wagers you can see the stock popping 5.5%, melissa. >> that seems like gold, contessa how much is -- if mattress mac wins his bet, how much does that cost caesars >> $30 million he bet $3 million in may on the astros to win it that was caesars sport book. he has bet a total of $10 million with other operators if he wins on the astros, he'll walk away with $75 million, a record-breaking legal u.s. sports bet. >> total that's amazing >> i would have laid off some of that action, though, in may picked the astros and now the chance is reasonable >> yeah. contessa, thank you. it's like mattress mac's best day to be mentioned on the caesars call he is an asterisk nextto their quarter. depends on if he wins his wager. >> when you got that much on the line, it's unbelievable.

certainly not pulling for the astros here. but that's another topic you think about caesars, the fact that the digital spend has come down so much. you've seen profitability in the digital space. they got to the market share of mid teens faster than they did 200 million in partnership costs roll off i think the vegas dynamic is still very, very strong and better digital this stock has been cut in half. i think valuations in this space are very attractive at this point. it doesn't mean it gets simple from here, but it means over the long-term you're going to be paid >> draftkings by the way is up 6.7% in the after hours, bonawyn, how do you feel about this space >> i think i would rather own some of the digital stuff. well can argue about valuations, and i have kind of taken my medicine with a b&b. cease sack, the rest of the casino orngts it has underperformed massively thing is a reason for that for me, the secular trend is towards digital, and i'd rather a bit more exposure there, whether it be pin or draftkings. >> courtney, is this another

read-through for the consumer or a whole different kind of consumer that will bet no matter what >> thing is a different story than that. clearly i think some of what you're seeing in vegas not continuing demand is something to be seen there i do think it's kind of fascinating too. we were talking about mattress mac. the whole thing is doing this for promotions of his mattress company. it's also probably going to help caesars. everybody is hearing about this story and is probably going to lead more people into the sports betting which longer term is going to be a really big industry immediately i'm not looking at companies that are unprofitable, which caesars is i don't think this macro environment is well positioned for them but longer term it could be a good story. >> a big med tech deal johnson & johnson scooping up abiomed for over $16 billion, surging 50%. the ceo saying the company will look to build up their medical device unit through acquisitions so should we expect more m&a in the space, karen what do you think? >> yes, i think so

i feel like this whole sector is -- they're gigantic, first of all. this is a big deal, $17 billion. to j&j, this is not a big deal at all so there is a lot of these potential targets that are out there. merck just announced a deal. and lilly. they're all huge they're quarter of a trillion dollars plus so they could all afford to do acquisitions if they wanted to i mean, for them, borrowing is available if they want it or if they have cash on their balance sheet. and there sort of a psychological element to it. if you see your friend, the ceo of yyz corp. doing a deal, i'm telling you, it sounds ridiculous, but you might have this idea of all right, it's safe to do now, right? >> yeah. >> it feels safe and there is some cover. if we're all doing deals, no individual one of us will look dumb if they don't work. >> we'll all look dumb collectively that's what this show is about >> and we do a lot of that around here. but j&j doesn't.

and i'd say the reason i'm long the stock is because of the diversity across the med tech and the medical devices along with the pharma pipeline that i think has more growth than some of their piers along consumer products this appears to me the perfect stock. the med tech is where the margins are for them they paid a lot of money for this stock, and the stock didn't even blink today and i think that's the story >> coming up, tiktok on the clock. and that could be a big boon for its u.s. rivals. we've got the details next plus, october auto sales coming in hot. mark fields joins us in just a few minutes to break down the numbers. driving into that trade, next when "fast money" returns. get your trades to go with the "fast money" podcast catch us any time, anywhere. follow today on your favorite podcasting app we're back right after this.

what if “just an idea” could become a family tradition? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire.

♪ (vo) this is more than just glass, walls, doors and carpeted floor. as you plan, protect and retire. it's a place to change the world. loopnet. the most popular place to find a space.

welcome back to "fast money. another check on the markets all three major indices closing in the red the nasdaq leading the losses down nearly a percent. but a few names bucking the trend and hitting all-time highs during the session marathon petroleum, regeneron, cigna, and lockheed martin

touching records cheesecake factory dropping earnings, missing expectations, siting persistent inflationary challenges in some areas of the business all right. let's swipe now to tiktok. do you swipe any way, i have no idea. >> be careful. >> the fcc commissioner telling axios it is time america banned after shares of meta and snap higher today both have products to rival tiktok julia boorstin has the details >> that's right. shares of meta ended up more than 2%. snap up about 3.5% after repreport reported that brendan carr says they move to ban tiktok, referring to the management of user data and carr said, quote, i don't believe there is a path forward for anything other than a ban. he is of course one of five fcc commissioners. and the fcc itself does not

actually have any authority over tiktok currently in talks to determine if can or should be divested to a u.s.-based company tiktok got back to us with a statement saying, quote, commissioner carr has no role in the confidential discussions with the u.s. government, going on to say we are confident that we are on a path to reaching an agreement with the u.s. government that will satisfy all reasonable national security concerns a treasury spokesperson telling cnbc that its sippious division is devoted to taking actions to safeguard national security. melissa, they also note it doesn't comment on transactions, that it may or may not be reviewing. i want to point out shares of oracle were down today, down about 1.2% tiktok routes its u.s. traffic to oracle's cloud

infrastructure back to you to you. >> do the midterms play into any of this in terms if republicans gained the house and/or the senate, if republicans could be tougher on china and so therefore a ban might be more likely >> i mean, look, this has been a conversation that has been going on for so long there does seem to be bipartisan concern about tiktok in particular we have to remember what tiktok went through in the trump administration so it's hard to say. but from what it sounds like is these talks are been going on for a while between tiktok and cfius. so maybe a republican-controlled house could have an impact here. but i think ultimately this is something that cfius is dealing with now and we could get some information on it fairly soon. the question is how dramatic and draconian the cfius decision is. >> all right julia, thank you julia boorstin karen, we were just talking about this, as one of these events that could be a major

catalyst for meta. and meta finished higher by 2% >> meta is up two is great this was an issue during the trump administration, and there was that whole unusual deal with oracle, shall we say but it was never really resolved remember, though, even though there was hostilities between the trump administration and china, they ratcheted up a whole lot more now i think we're looking at a very different far more confrontational. >> dynamic >> yes i think that makes chances a little higher. but it is not a reason to be in meta on the hope that tiktok -- if it happens, it would be great. >> i would actually say a better beneficiary for snap than meta when you look at your tiktok versus snap, they have that really young demographic especially when you're looking at advertisers, it's a very specific niche target audience if tiktok were to go away, i

think snap would benefit more so what it didn't help, people did not like to see with meta how much spending they're putting into this new platform of theirs which is still questionable how much is going to go forward or not. it's to preemptive to see tiktok, anything will happen with it or not if it does, i think snap is your beneficiary. >> i do think in a different controlled congress, you could see this kind of a move. sort of what karen is alluding to there has been a major change from where we started on this conversation fcc chair carr, really has been spot on this he has gone way out there. i do think data privacy legislation -- this is what is tiktok is saying we want that we welcome it. should be out there. we need something. that's part of where they're going get to how aggressive, i don't know it's not a reason to go out and buy either of those two companies today. coming up, former ford ceo mark fields joins us to talk auto sales what he says is in store for car prices, when "fast money" returns. and we're taking a look at uber on the back of earnings

this morning how option traders are playing this one "fast money" is back in two. ♪♪ ♪♪ be ready for any market with a liquid etf. get in and out with dia.

what should the future deliver? be ready for any market with (music)d etf. progress... (music) ...innovation... (music) ...discovery? or simply stability... ...security... ...protection? you shouldn't have to choose. (music) gold. your strategic advantage. (music) visit goldhub.com. (chloe) wireless family plans save you money, but then you have to deal with family. (aunt 1) chloe... (aunt 2) still single, dear? (chloe) so i got visible. get unlimited data for as low as $30 a month. no family needed. (dad vo) is the turkey done yet? (mom vo) here's your turkey!! (chloe) turkey's done. [fire alarm blares] (grandpa) answer the phone. (chloe) that's the fire alarm, grandpa. (vo) visible. one-line wireless plan

with unlimited data for $30 a month. taxes and fees included. i started as a single mom with $2000 and a passion for new orleans. i'm lauren haydel owner of fluerty girl. today, my tiny online shop has grown into eight stores. we're a must-stop shop for unique nola-inspired gifts. lauren doesn't just create cool nola merch; she creates opportunities. small businesses like lauren's open doors for neighborhoods to thrive. support your community. support small business. welcome back to "fast money.

financing rates soaring since the feds started raising rates in march edmonds reports the average apr for used vehicles is 10.3% new vehicles come in at 6.3% that's up from 5.2% in march our next guests expects auto dealers to hold the line on prices, at least for now mark fields is a former ceo of ford and hertz great to see you again >> hi, melissa >> how much pressure are these dealers facing at this point with the costs of owning a car per month just skyrocketing here >> well, you're still seeing a relatively strong market i think when you tally up the results in october, you're going to see the industry up versus last year. and up versus october. and part of that has to do with the pent up demand that you're seeing out there but the average selling prices are still at near record levels. they're starting to come down. but, you know, listen, when you have interest rates that are going up to the extent that you

just showed on your screen there, in some cases a car payment is approaching a rent payment in some parts of the country. so i think you'll start to see a moderation in some demand falling off, maybe some more discounting as the inventory levels get back to other areas as we go in the months ahead right now, the dealers are fine. they're coming off a record two years. but i think they're prepared for tougher days, particularly going into 2023. >> if you're still ahead of ford, mark, how would you view this time, and how would you view the wind-down of certain businesses, for instance, and sort of getting lean into a potential recession? >> well, i think what you're seeing the automakers doing is they are starting to tighten their belts. first we have to put into perspective, melissa in the last three or four downturns, the industry has always been in a situation where there has been high discounting, high levels of inventory you don't have that now. you have very low levels of inventory by historical standards. they have to restock

but that being said, you know, with these levels of interest rate, demand is going to fall off. so you're seeing automakers announce reductions in workforces you saw that happen at ford. you saw that happen in other automakers, that are offering buyouts from employees you're seeing them tighten their belts like ford deciding listen, the investment in argoai which was for level 4 autonomy, they probably don't see a path to profitability. they said listen, we're going to make choices strategy is about choices. as you see tough times going forward. but balance sheets of these automakers are in great shape. so i think they'll fare much better than they have. depending on how severe it's going to be. >> mark, it's karen finerman thanks for being on. when you look at the industry and you think about the vast differential in valuation

between a tesla and between a gm and a ford, do you -- how do you think about that do you think it's out of whack and if so, from which sides? >> well, i do think by any measures, tesla is valued very, very richly. but listen, investors are looking at that, and they're looking at the growth prospects of the company going forward when they come out and say on average and over time they're going grow at 50%, these pretty compelling but clearly if you look at the valuation metrics, it is overvalued but that being said, you know, elon musk, there is a lot of star power there he paints a very interesting picture for the future but at the same time, i think the established apple computers are making a lot of inroads, particularly on electrify indication and i think at some point, the market is going to give them credit for that. but for now they have not. and i think the other thing they're waiting to give them credit for is, listen, they have all said they're going to have

volume and manufacturing in pricing discipline through the next downturn. i think the market is going to wait to see if that happens. and if it does, then i think you're going see some multiple expansion for the automakers, but not before then. >> i'm going ask you this question, mark i've gotten some surprising answers when i asked this question in the past of people who are closely tied, you know, in the c suite of various companies. at this point in time seeing we're on the cusp of a recession, rising interest rates, would now be a good time to be a buyer of ford? >> i think it's always a good time to be a buyer of ford >> all right you gave me maine the answer >> but, listen, i think, you know, investors should look at this from a historical standpoint and when you look at the multiples of companies like ford and gm today, they're quite low, but they are very differently positioned for this downturn and so i think if investors can look past the fact that we're

going to have some demand destruction going on, the fact that the balance sheets are in very, very good shape, and the fact that both automakers, and all automakers are being quite transparent where the marketplace in the actions they're taking now to prepare them from that from a cost standpoint, i think long-term, long-term, autos are an important part of the economic landscape across the world and i always think it's good to be invested in this space. >> i presume you own ford. do you own other automakers? >> i only own ford >> okay. all right. mark, always great to speak with you. thank you. >> all right, thanks, melissa. >> mark fields i asked that, because i asked bill simon would you rather walmart or target? he said target you never know what you're going to get back. you should always ask. >> we've gotten interesting answers out of bill maybe for the other guy. but in terms of ford, again, what is that multiple that he mentioned? it's seven times on each side. it's attractive. >> yeah, when you look at the

divergence between your traditional automakers and tesla as you mentioned before, we kind of had this conversation ad nauseam you really start to look at the input costs and with chips easing, right now it's a battle of wills which one can raise prices higher and keep them there i think you really need to look through at the greens act, things of that nature that will give us these incentives to continue to have the growth that all of these companies are banking on on the ev space >> all right coming up, uber driving higher after posting some strong revenue numbers this morning what the company had to say about fourth quarter guidance. don't go anywhere. "fast money" is back in two. as an independent financial advisor, i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals.

visit findyourindependentadvisor.com

welcome back to "fast money. uber stock surging after reporting a 72% jump in revenues in the latest quarter, issuing strong fourth quarter guidance the company expects gross bookings to jump 23 to 27% in q4 that strong guidance helping wall street shrug off an estimate and options reporters are guessing this will spread more gains for the stock mike >> we saw 3.5 times the daily average options volume this stock pretty busy in any case most of the bullish activity we

were seeing is concentrated in the weekly options the busiest was the 30 strike calls that expire this coming friday buyers of those were spending about a dollar for 24,000 contracts. buyers of those calls are obviously betting that the stock's rally that we saw today could continue through the end of the week. >> courtney, where do you stand on uber? >> uber, again, it's an unprofitable company so it's not really something i'm jumping into right now one thing i found really interesting with them is previously they were having an issue with the supply of drivers. they actually noted how inflation is bringing people to become drivers to supplement their other spending, which i thought was kind of fascinating which is actually helping uber that was a really interesting thing that came out today. >> i think uber is really attractive here. i think their business is normalizing. i think that the drivers dynamic is something that is the ideo sin sink part. whatever that, we're struggling with that before but i think we're back to where we were.

>> karen >> i have a little bit of lyft i like it because i like the purity of that business. i didn't like as well uber, uber it's and they have freight now was pretty psyched about the freight business but it's good for the whole space. i hope lyft will go up with it mic mike khouw, thanks. up next, final trades.

ga-a-a-ap! oh... hi. what's this, a hospital bill? mm-hmm. for 1,100 bucks? ga-a-a-ap! looks like your wallet may need a sling too. tell me about it. did that goat say "gap"? he's talking about expenses that health insurance doesn't cover. eh-ehh-eh! well i'm talking about the money aflac pays to help close that gap. aflac, huh? aflac! ga-a-a-ap! aflac! gap... uh-oh! that duck can motor! get help with expenses health insurance doesn't cover at... aflac! ...dot com.

i remember the day you looked at me and asked, “what now, dad?” so i said, find a job, any job. work hard. that's just how it is. but of course, you didn't listen. you showed me there's another way. i'm proud of you. ♪ ♪

final trade time tim seymour? >> j&j you're paying a market multiple, and i think you have a much straighter line on earnings progression. so j&j >> karen finerman? >> yeah, so it seems to be the market is positioned for some sort of pivot or something and i don't think that's going to happen. so i'm short some spiders into this bid >> interesting short-term spider here >> what? >> courtney garcia >> i think you want to make sure you're positioned regardless what the fed does tomorrow, i think pharmaceuticals are well-positioned. it can be a great way of playing it >> bonawyn eison >> xpo these are companies that have the ability to raise prices

despite the environment. >> speaking of the astros, are you watching the game tonight, mel? >> yeah. >> i'm sure. >> definitely. high on my list there. as soon as i get home, i'm going to turn that on. >> mattress mac. >> thanks for watching "fast money. "mad money" with jim cramer starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cry me-- cramerica my job to the just to entertain but how about context? how about understanding? call me 800-743-cnbc tweet me @jimcramer. we're at the moment where ba