much, but lam research was then you had intel down. so, you know, that's an interesting setup for micron, which has had some inventory woes to worry about and tied into overall demand. >> costco call kicking off soon. consumer super in focus. that's going to do it for us here at "overtime. >> "fast money" starts now live from the nasdaq market site in the heart of new york city's times square, this is "fast money. here's what's on tap tonight stocks sinking to multimonth lows the dow crashing through a key support level, but is this pull-back a sign of more pain or an opportunity to buy in we'll debate that. and bring you the names the traders are eyeing for an entry point. plus, higher for longer? no, this time, we're not talking about interest rates the senate set to vote tomorrow on legislation that could keep marijuana stocks soaring what one industry ceo has to say about what it means to the path to legalization. and biden and the big three. will his trip to michigan help or hurt the automakers and their

employees? a live report with the latest. i'm melissa lee at the nasdaq. we start off tonight with the dow's big breakdown. the index dropping nearly 390 points today, closing below its 200-day moving average for the first time since late may. the s&p and nasdaq seeing bigger losses on a percentage basis amazon dropping more than 4%, apple down over 2% the moves come lower as treasury yields continue to trek higher the ten-year touching a fresh 16-year high, 4.6% during the session. and then there's this warning from the nation's top banker >> right now, it feels good that fiscal stimulation was extraordinary. that was a global phenomenal more in the united states than elsewhere. but that's a little bit of a sugar high and that's a little bit going to go away. all the other things -- i'm

putting myself in the quite cautious category. >> jamie dimon also saying the fed could still raise its target rate sharply from here so, as we look to close out the third quarter, are we in for more trouble ahead guy? >> quite cautious category jamie dimon. the most important banker on planet earth you , i would say. we know our affinity for him obviously, the market hasn't until today or at least the last couple weeks, and we've thought for awhile, at a certain point, interest rates are going to matter well, turns out they matter seemingly north of 4.3% in the ten-year and rates continue to grind higher and it's for all the wrong reasons. and i think there's this sort of recalibration going on in the market, that frankly, it's quite healthy, but it's going to be painful. >> we were chatting about the call from andy back in august, mid-august, around the time -- that was the time of the fitch downgrade, also when the boj started tweaking its policy. and we're facing, now, a government shutdown, slightly

different, but sort of the same kind of thing, emphasizes government, you know, dysfunction. >> government dysfunction. and also, it was the amount of treasuries to be issued was going to be enormous and they would have to go further out the curve and so you would start to see interest rates out the curve rise which it has that was an excellent call by andy i think that all of those things still exist, right it's interesting, because we have this idea, rates are so high, they are not even at the historical average there's been an adjustment i'm always long, so, you know, weeks like last week and this week, really not delightful, but i think we're more than halfway through this, and i think the -- not all stocks will be hit e equally. we talk about the high flyers, i think those have been getting hit, as they should. they still have a ways to go it's painful, but i'm sticking through it

>> well, the warning signals for this market are that apple and microsoft are through the levels we were talking about, you know, three weeks ago and where they held and they were heroic. and as you talked about -- we don't spend as much time talking about the dow, it's not that we're picking on the dow, but i think there's reasons why the dow is less significant than the s&p. the fact that the s&p has traded through the 100-day for the first time -- if you take out svb, which, for that -- we're talking about the broader market, broader rates, dynamics that are not necessarily idiosyncratic around the banking sector fornow, and it'sal dramatic move. we haven't really seen a move since late last year we have some of the big cap tech stocks actually setting up to go lower, i think, you know, i think 4170, 4150, a really interesting level, is not going to be that difficult to get to, and it sets you up really nicely for two of the best seasonal months of the year the rates dynamic has to work

itself through there's a lot of math that doesn't make sense, but look at the vix. the vix, for a long time, was trading at post-covid lows for, you know, really through some of the first phases of this move higher in rates and it's extraordinary. small cap stocks are basically on a relative five-year low to the s&p. and they really are one of your big prombarometers of growth and what not >> jamie's cautious right now, after everything we've been through and some of the warnings he's had he said four, five months ago, he said, be prepared for much higher interest rates. now that he's going to the top end of that band he guided to a couple quarters ago. you think about that on a historical basis, karen, and you mentioned that we haven't seen rates this high, we still have inflation really high. that's kind of the point if you look at what real rates are right now, it's not really that restrictive and we have a time where the consumer is not doing well talking about it last night. i guess if you just want to look at it through the lens of small caps who are most sensitive,

they closed, the iwm closed flat on the year right now. if you look at the equal weight s&p, we look through the lens of the rsp, it closed flat on the year and that thing, that's -- this is really important, to tim's point about some of these bi megacap leaders. look at that rsp chart, if you look at it on a one-year basis, it made a double top, down 10% now. >> a news alert here on a short-term spending bill out of washington emily wilkins has the details. emily? >> well, the senate has come out with their bipartisan stopgap bill to avert a shutdown what we know is that it would basically continue government funding until november 17th. it would include $4.5 billion in aid for ukraine. now, that's less than the white house was asking for, but remember, this is, of course, a short-term bill, this is not what is expected to fund the government for the next fiscal year of course, the difficulty is going to be getting it through

the senate, where any one member can hold up the process. that means the bill might not be able to pass before the end of this week, in which time, the government shutdown would start. if that happens, we would go into a shutdown and lawmakers would still be working to pass this bipartisan bill and, of course, after it gets passed the senate, it still has to go to the house, and that's a huge question mark for what happens there. speaker kevin mccarthy could easily put a bipartisan bill on the floor and get enough democrats and republicans to have it pass and the shutdown, but if he does that, members from his own party have threatened to remove him from leadership so, a lot of steps left to go through before we actually find some sort of solution to funding the government, but certainly a major step forward, now that the senate has put out the details of their plan. >> all right, emily, thank you for the latest emily wilkins out of washington for us a major step forward, seems like we're almost in the same spot in terms of all the hurdles we have still to two in order to pass it on time. back to markets, though, you were saying about the consumer,

they are still employed, though, and with corporate profits still relatively strong, i mean, something's got to give in terms of, you know, if the fed wants to achieve what it wants to achieve. the consumer is only going to feel more pain >> the unemployment rate will go higher i think they want it to. they being the federal reserve they wouldn't say that but that's the reality of the situation. i brought this up before, but it happens to be true unemployment rate in california now is north of 4.5% it moved, like, 800 or so, whatever that is, from 3.5 to 4.5 over the course of a couple weeks. california tip you cannily leads the rest of the united states by a couple months. we are trending that way we will go there the question is, will the fed be able to control the unemployment rate the same wail they tried to control inflation? the answer is no unemployment will continue to trend higher it will get worse than people expect and bad news, in fact, will be bad news >> and the fed can't control the price of oil i'm sorry. and that is something that right now, i think, is out of control, and i think it's going to stay high we'll talk about energy. we talk about energy but if you think about the

impact on the consumer with the marginal dollar will go, it will go towards gasoline. people are starting to -- feels like fall in the northeast here. people are starting to turn on the eat, people are going to have heating bills and this is a dynamic, yet the fed strips it out of their inflation analysis, doesn't include food prices and energy food prices haven't gotten better and these are things that are weighing on top of everything. we had new housing data today, new home sales also -- i think, are really starting to fall. and i just don't think a housing market both with rates that are this high and i understand with the home builders, i understand there are people that are still looking for a house, but between the lack of supply, but more -- you are just not seeing any velocity in home sales it's not good for housing prices i know this sounds bearish, dan has something to say, i can't believe it's going to be bullish. >> it won't be on the employment thing, you know, i remember we were all snickering at the idea of quiet quitting and we're in the midst of this uaw strike and a lot of

questions about, you know, is the power back in the workers hands and this and that, it almost feels like the death rattle before we really contend with automation, before we really contend with a.i. and what it means for productivity in the workplace but talk to people who are not, you know, pressing for a four-day work week or not, like, there's a lot of people are worried if they were to lose their job, they are not going to replace it and that is some of the stuff, i think, that is starting to work into consumer sentiment right now, at least from the folks that i'm talking to out there who run companies, and they don't feel the need, you know, to give into a lot of these worker demands right now >> all that said, karen, you still think we're through the worst of it? >> i do. i think that -- i guess it's -- not a monolith there are various things that, you know, business is good, we'll get earnings, hear from jamie dimon in two, three weeks about what he's seeing in the economy, lending i mean, there's a lot to hate,

but that often -- as tim points out, volatility index, way higher highest since may. still not high >> but karen, what do you think jamie dimon has good to say? >> jamie dimon never says things are fantastic, risk gone >> can i be -- he's been all over the place for the last two years. economic storm was coming, brian clapped back, he said, we're in the eye of the storm don't here, we don't see it. and he was right i'm just saying, so, jamie's been back and forth on a lot of this stuff, and i think it's interesting that he used the opportunity being in india to give what i think is some pretty impactful market comments, economic comments, that sort of thing. didn't do it here. it's 2 1/2 weeks before they're going to report earnings i just look around and i look at underwriting, i look at credit, you know, delinquencies that are ticking up, i look at trading -- >> he's conservative >> no, but nothing's good. what -- >> okay, all right -- >> he's being cautious

i don't -- i don't think he said the sky is falling and i think he's been consistently cautious. in other words, i think you're right, during better times, when other banks said, i don't see a lot of problems, brian was probably right about main street jamie's cautious comments are, i think, look, the same things that we talk about up here, i think he sees, and it's worth reminding people, if you are the largest money center bank in the world of those things. >> the worst case scenarios are not off the table, that's where consensus had gone to at some point -- >> in terms of recession >> in terms of recession, in terms of rates being higher, toll -- the worst case scenario, 7% and a hard landing is still possible >> anything's possible but just let me point out, so, jamie dimon, while this -- while we are seeing rates rising, he s positioned the bank to survive, to absolutely thrive, where as moynihan actually didn't do nearly as good as job, of bank of america didn't, in having a

health maturity that held up the way jpmorgan does. they are set up really nicely. i don't think the stock's expensive. i'm hanging onto it. he was talking sort of -- i don't know, tongue in cheek, sort of, about, wow, i, you know, regulators are trying to do to bank, this isn't great, i wouldn't -- what did he say, equal weight with his billion two of stock you know, i just think under ten times earnings, i want to own it >> he sounded much better than the headlines. >> always happens. >> i know. i was in bed scrolling through the thing, as usual, like -- >> as usual. >> i was like, this doesn't sound good and the futures were down and all that stuff when you listen to him there, he's just sounding like routinely cautious >> yeah. as aen banker should be where all you do is get the money bank >> bank of america is within a whisper of a three-year low. citi bank is a disaster. kre, which had a huge run since the spring, deservedly so, is starting to roll again

so, the banks are clearly starting to tell a story and i don't think the story is particularly good. >> this market pull-back got us thinking, have some stocks sold off too much so, what is on the volatility watch list which stocks are starting to look like opportunities right now? tim? >> i think we defined it as companies you feel comfortable owns them in good times and bad times, bau thut there are both technical places on the chart, but also valuation ranges. and so, the names that i framed here, mcdonald's, starbucks, walmart and constellation brands i could argue they are all defensive. starbucks is an example, things were about as good as they were going to get in term office margins, the backdrop for having pricing power. that stock is back about 20% from those q-1 release china is a concern i think there's a dynamic here where you look at where the bears will say that u.s. is slowing and that's really a bigger problem for starbucks

the reality, there's a range to 25 times forward to 15 times forward, bull to bear. i don't think we're going to get to either. i think it's somewhere in the middle and i think starbucks around 85 bucks, which is about a 28% pull-back, is a great place in the charts. a place where i feel like this company is priced in a lot of bad news we can talk about different names, but ill mentioned the names, but that's my construct and how i do it. >> guy >> well, i understand why gold's been weak. the physical metal, obviously, the dollar's been going higher interest rates going higher. neither one of those are constructive i do think you have this point where nobody sees coming where dollar strength is actually going to start to lead to gold strength and it's coming in the form of the yen continuing to break down and bank of japan but i go to american, one of the better mining companies. gold will win. the miners will win on the back of it. >> karen >> yeah, actually, citi bank, to me, is just ridiculously cheap, and, i mean, if you remember, this was a 10 for 1 split in

2008, so, it's -- i mean, that's crazy to me. i think that, you know, mid-single digits pe it's north of 5% yield, although i never want to buy on yield, but just happen to point that out. and the price to book isn't, you know, should it be on sale half of book? >> doesn't that worry you, though isn't some story so bad it's bad, not so bad it's good? >> well, this one has been so bad it's been bad, but i haven't bought it yet, i'm just -- it's on my list of, wow, this could -- could it get cheaper? it could anything could as on my list, though, is a name like j&j a different kind of name that's one where you feel comfortable. it's not super levered where you are going to hit the ball out of the park, but that's within i would feel comfortable and some of the big cap, exxonmobil, names like that. really inexpensive >> dan >> i'd say, that conversation we had on apple last night, i don't know if we get to 150, but 160

is probably a really good level. you probably take out some of that valuation premium that's made us uncomfortable. google at 110, if you get back there, this is way too cheap relative to its prospects. i think whatever they're doing in generative a.i. and large language models is being underappreciated by the market and the last one is nike this has been so bad it's bad. i know this is a tim name, i'm not sure for great reasons here -- >> short tim name. >> you have been >> you've been long forever and riding it short for months and months now. i think you have this thing in the low 80s and hold your nose and buy it >> is that where you cover >> look, this week's interesting, right we're going to either hear that it's going to take that next leg lower or, you know, i think they priced in a lot of bad news. on the charts, 85, i agree with that i'm still short. i think i can -- i don't think it's going to get away from me on the upside. there's nothing they can say that's going to change that. coming up, shares on the move of costco

the latest from the retailers quarter x next. and does amazon have a monopoly mess on its hands the anti-trust lawsuit from the ftc and what it could mean for the e-commerce giant the e-commerce giant at aadth'she ( ♪ ♪ ) ( ♪ ♪ ) ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ vely day) ♪ ♪ (when the day that) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo.

welcome back to "fast money. earnings alert on costco shares lower despite the company beating on the top and bottom lines. conference call is under way courtney reagan is here with the latest court? >> melissa, this company is so interesting. they still report comps monthly, but still manage to beat on earnings and revenue and you mentioned the stock is down a little bit. conference call is ongoing it does end this fiscal year, the weakest fiscal year for comparable sales for costco since 2017 up just 1.1% for the quarter e commerce comps down. the company says on the call, those numbers weighed down by weaker sales of bigger ticket items. about half of its online sales are in that category so, that was the reason for the weakness there membership fees actually higher than expected at $1.5 billion. strong membership renewal rates for the united states, up 92.7%. in canada, that was up slightly over last year and slightly

on the conference call, the cfe called out food, fresh food, being among the stronger categories big ticket december cession their items still a little weaker traffic was up more than 5%. average transaction or ticket, though, down 3.9%. gross margin grew 42 basis points and said that inventory shrink is not an issue for costco he's been asked about it not an issue for them. and he noted, yes, costco does sell one ounce gold bars on its website. limit two per customer and usually sell within a couple of hours. >> can't steal those >> really -- well, the shinning thing is interest, because nobody is going to pick up a pallet of toilet paper and walk out the door it would be very difficult this really paints a picture of a consumer that is just focused on saving money. >> it really is. and costco is one of these companies that is a staple, and it does tend to skew a little higher income, even though we talk about going there because of saving money. for, you know, it is a

membership, you have to pay to go into the store. but it is a staple, it does seem to be where folks are going to be able to save money on those staples. they are still buying in bulk and buying much more of than other items. but they said it was appliances 30% over the last quarter, the last two quarters, which is one outlier for that discretionary area that was strong >> down five bucks today, down another eight. is there anything that you see wrong besides the 38 multiple, which is 100% over the market multiple >> not really. oper operationally this is such a good retailer. they just started on the questions with the analysts, but so far, really all the financials look really strong. the analysts are curious and the first question was about the membership fee, can they go even longer without renewing that, because they're pretty much at a little past sort of their average renewal rate that didn't want to renew when inflation was so high and pressurie ing everye and they said, we don't have anything to announce today, but when we do, we will tell you

it's a question of not if but when say will saying it will come, but we're not going to announce it today i think deutsche bank has an increase coming in december. >> one thing, courtney, i saw, gas prices, higher gas prices, more that it probably helps costco, which is great for them, but t's an indictment in terms of what's going on for the rest of the retailers >> absolutely. and that's a number, seems like anyone that drives a car knows the price of gas and we remember relevant to the recent past, but not necessarily ten years ago. if it feels higher right now, it may feel high air cross the board. and the numbers will give them, the cfo says, draw two columns numbers with gas and without gas, because it does have such a big impact, even on their numbers, and the psychology impact for consumers >> do we get guidance from them? >> no, not usually >> courtney, thank you. there's a lot more "fast money" to come

here's what's coming up in ex- the ftc is taking on amazon. how the nation's top m&a cop hopes to rein in the e-commerce giant. plus, presidential picketing. joe biden joining auto workers on strike. how the pressure is ramping up on the bug three you're watching "fast money," live from the naz dark market site in times square we're back right aerhift ts.

welcome back to "fast money. amazon under fire. the federal trade commission suing the company for illegally maintaining a monopoly power our senior washington correspondent eamon javers joins us now with the details.

>> reporter: hey there, melissa. the federal trade commission filed an anti-trust lawsuit against amazon this morning. they are alleging that the tech company has used interlocking, quote, anti-competitive and unfair strategies to illegally maintain monopoly power. now, the ftc was joined in the suit by 17 state attorneys general. they say amazon's actions allow it to stop rivals and sellers from lowering prices, degrade quality for shoppers, overcharge sellers, and stifle innovation the suit represents one of the biden administration's most sweeping and aggressive moves to date to break up what it sees as consolidated power in the hands of the tech giants the administration hopes this will both lower prices through new competition, and spark new innovations that will help the economy. the ftc says amazon's alleged schemes impact hundreds of billions of dollars in retail sales every year in a statement, ftc chair said today's lawsuit seeks to hold

amazon to account for these practices and restore the lost promise of free and fair competition. the suit alleges the an anti-competitive conduct occurs in two markets, the online superstore market that serves shoppers, and the market for online marketplace services that are purchased by sellers the alleged tactics here include anti-discounting measures, and conditioning sellers' ability to obtain prime eligibility on using amazon's costly fulfillment service. the ftc says it is seeking a permanent injunction in federal court that would prohibit amazon from engaging in this conduct. in a statement today, amazon responded to the suit by saying, the lawsuit filed by the ftc today is wrong on the facts and the law, and we look forward to making that case in court. mel melissa, back over to you. >> thank you, eamon. this is something to think about, though, for one thing, this is long anticipated for another thing, five of the biggest deals, investments made by amazon have happened under

lina khan's tenure, which is interesting. so, i don't know if that makes her more sort of vigilant in terms of going after them, gives her more fire in her belly or -- >> "squawk box" was talking about all the cases she continues to lose, but each time she loses, i think, andrew made this point, seemingly somewhere in there, they continue to sort of chop against this sort of behemoth in terms of knocking down some of the pillars that obstruct their ability to win these cases. with that said, amazon traded up to 140 last august and failed. look where it just traded up to now, if we can bring a chart 140 and seemingly failed so, the question is, when do you get back in the stock? and i think it's probably, i don't know, one teens or so getting interesting again. >> i don't know what the remedy is we don't know what she's really hoping to happen and if it is to sort of break up the company, though that doesn't just -- >> they asked her that and she

didn't respond >> okay, so we know that aws is obviously much more profitable business in terms of operating margin, it's totally different business we haven't seen amazon pull back spending on the retail part and what that could earn this is going to play out really in slow motion i -- this is going to maybe sound crazy, but i'm kind of ignoring it for now. >> you can ignore it for now, but i think it's -- there's something there and the there there, that's what we said look, this -- i'm nont an anti-trust lawyer. small businesses kind of know where amazon's been -- >> consumers, though -- >> well, consumers love it and that's part of the argument, although i think there are a lot of people that probably prefer the mom and pop business that's been driven out of business, but more importantly, think it's the sum of the parts with amazon and that's where you're going with if you had to break this company up, is it worth more than it is here absolutely if you look at where it's trading, relative to its history, and even relative to a lot of the other players in

megacap tech, this is an attractive valuation >> i always wanted to be an anti-trust lawyer. >> seriously >> i can see you as a it will gator. >> it's interesting. when you think about this complaint, i haven't read it, i'm sure it's way too long for any of our attention spans but it really is about what's going on in retail the idea they would break up this company, break apart aws -- that's not what this is about. this is about the uncompetitive practices, and i think to tim's point, what they have done, it not just -- yes, we become addicted to prime. getting things in one day, we think is a cheap price, but it really is about an anti-competitiveness versus other retailers, and we know that bug-a-boo, that existed with other big box retailers until amazon call along. when you look at their expected sales growth on their path to 1 trillion, they're going to get there before walmart, that's what estimates do. so, they're taking so much more of the incremental e-commerce dollar that exists, so, i'll just tell you this, i get it, we

don't have to pay attention to it, it's going to take years to play out, but i think we're probably all better off for having the government keep these guys, these huge platform companies, in check every once in awhile. keep everybody thinks about it to me, you know, have at it, because at the end of the day, you know, we can't just end up in ten years from now, with apple, amazon, you know what i mean, google -- >> but this is -- >> we're going to be in some sci-fi dystopia. all these things are about the -- >> this is why you want to buy walmart? >> yeah. their e-commerce business, they are eating into that we all know where the market share in e-commerce is going who is -- you can make -- i think this is what you're saying, dan, maybe i'm wrong i don't even know if amazon is dictating the price right now, because they can actually drive price. walmart has been the one that determines price out there and i just think walmart now that they've made the investments into their e-commerce business and other parts of digital, they have the ability to get margins in a better place, and again, they're

competing with amazon in a place where amazon was never making any money and they're actually making money in their brick and mortar >> do not miss the ftc chair tomorrow morning on "squawk box" tomorrow at 8:30. auto workers getting a hand, as president biden joins the picket line. the latest on the strike and the pressure facing the big three is up next. plus, micron results tomorrow how are options traders playing the stock? we've got the action when "fast money" returns with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening.

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welcome back to "fast money. stocks selling off in today's session. the dow posting its worst day since march. the s&p and nasdaq falling 1.5%. both on pace for their worst month of the year. shares of draft kings getting a boost. analysts upgrading the name to overweight, upping the price target to $37, implying more than 30% upside from here. the firm saying draft kings has a strong product that should allow it to stand up to competition. and rivian jumping 5% after baird names it a fresh pick. the firm expecting rivian to be consensus on q-3 deliveries, that demand will remain strong. meanwhile, president biden shaking hands with striking uaw members on the picket line earlier today. the historic strike is now in

its 12th day let's get to our phil lebeau live from michigan historic day, but a historic move by president biden, phil. >> it was an interesting day to say the least, melissa this is the first time we've ever seen a sitting u.s. president join a picket line and though president biden was only with the uaw strikers maybe 15, 20 minutes, didn't say a whole lot, boy, what he did say is going to be impactful, at least that's what the uaw is hoping in terms of its negotiations with the big three. among the things president biden said, you saved the auto industry back in 2008. he went on to say, it's time for you to be paid back. stick with it. you deserve a significant raise. here's the president talking about what is at stake and what the union represents >> wall street didn't build the country, the middle class built the country. the unions built the middle class. that's a fact. so, let's keep going

you deserve what you've earned and you've earned a hell of a lot more than what you're getting paid now >> what's been the reaction from the big three? well, we heard from ford earlier today, saying it continues to work, bargaining in good faith general motors says, we have presented five record economic proposals that address the areas our team members have said matter most, including wage increases and job security by the way, we heard from stellantis, roughly the same thing that it said yesterday, negotiations continue. but it has to have a competitive deal when it's all said and done as you take a look at shares of gm, ford, and stellantis, keep in mind, this strike is now in its 12th day what's been the impact on inventories of new vehicles? we checked in with jd power. no real change since the day the strike started melissa, back to you >> phil, thank you phil lebeau in michigan for us tonight. and don't miss "last call," live from the front lines of the uaw strike brian sullivan is outside ford's assembly plant in waiyne.

that's right here on cnbc. interesting move by president biden. >> well, election year, effectively. channeling sort of harry truman, fdr, pro labor, pro union. makes sense. trying to garner some votes and -- it makes a lot of sense that he did it is it going to help? probably not how do you trade the stocks on the back of it we've been pretty clear. really very difficult to trade ford, gm both have not traded well for a decade, in which they should have done a lot better. i'll say the auto parts should win, and that's been the best in class for awhile >> again, no one cares about our politics, i'm not analyzing necessarily where this goes in political calculus, but union membership is falling in this country, or, it's 11%. if you think about what's going to decide the white house, it's probably a vote that's less than that it seems like it's a gambit on going for a pool of voters that he might already have. and might be alienating people that sit more in the middle. i think the reality for this discussion with unions and

management is that, are these companies at record profits, at some, they are it's why i can own gm through some difficult times and they've been really difficult times, because i think the company's run about as well as it has. but they have to make major investments into ev, and things that have -- we know, nobody's making money in ev other than tesla at this point and we know that tesla almost didn't make it, if not for some extraordinary you know what, i'll just say that -- i think this is beigeig challenge >> string of lies? it's interesting -- >> i was waiting for you to say that >> interesting that tesla is down 10% since the strike started. just saying, you would think they would be the beneficiary of -- >> i think it's just coincidental with the market being down >> well, i just said it's interesting. do you find it uninteresting >> i find it interesting, but i don't think it's causal. >> uninteresting >> remember how sad elon was when he doesn't get the invite to the biden white house and

mam mary was there -- >> he was sad? >> yeah, took to x whined about it. coming up, should you bet on a.i. we'll bring you a live report from one of the biggest tech conferences to help answer just that question, next. plus, shares of curaleaf up. what's at stake when the senate convenes what will it mean for the industry we'll be joined by the executive chair of curaleaf ahead. we'll be back in two

welcome back to "fast money. top tech executives are ga gathering at this year's code conference in california cnbc's julia boorstin is one of the hosts of the conference. she got an inside look at some of the hottest a.i. products on display. julia, what did you see? >> well, melissa, a key theme of this year's code conference is a.i. and we've put together code's first ever a.i. studio, where a range of companies are showcasing their a.i.-driven technology i got an early demo of google's project starline, which uses a.i. to make you feel like you're talking to someone in the room even if they're across the world. it was hard to capture on our cameras, but it was pretty

incredible take a look. >> you look 3d, you look super 3d >> thank you thank you. i am 3d, and project starline, i should look to you like i'm perfectly in the room with you, so, i feel like i'm probably sitting across the table i can look you in the eye. and we are just together in the same space >> making eye contact. among the other demos here, runway which launched director mode to krcreate videos from te prompts. i ask ed if think s will threat the industry >> we are allowing people to move faster through their creative process it's about allowing you to either work faster with your ideas. so, when you think about storytelling, there's a lot of inefficiencies in how movies and series are made. we're really trying to improve those processes and what movie makers can do these days >> i'll be talking about a.i.

with all the people i'm interviewing here on stage, including bumble ceo, x's ceo. but first up, ceo of rivian. i'm going to be talking to him in a couple of hours and then, i'm interviewing brian byron allen on the stage and cnbc's "power lunch. >> that should be interesting. going back to the first example of you talking -- it totally didn't translate on camera did it actually feel real? because it looked like you were having a zoom. >> it did. it was nothing like a zoom i sat down at this table, the cameras turned on, the cameras facing me turned on and then this screen turned on. but there was this thing in front of the screen that seemed to maybe project onto it, but anyway, it looked like there was someone in the room with me. i felt like i was talking with someone in the room. he reached out to give me a high five, i tried to give him a high

five he tried to give me an apple most of these things that are designed to make you feel like you're actually in the room with someone involves wearing a headset. we've all done a demo of the meta horizon world and see how they're trying to make you feel like you're with other people, but this is different in that you're not wearing anything on your head, right you are just looking at a screen so, it felt like sort of digital presence, and definitely different than the other things i'd experienced before, melissa. >> all right, julia, thank you julia boorstin >> so weird. a.i. made it seem like somebody's phone went off here on-set, too, when, in fact, it wasn't them. >> yeah. >> there was no intelligence involved in that process there >> so, the people understand, because we have a minute every night before the show, what do we do? >> we say, tim, turn off your phone. >> and, you know, and he looks at me -- >> every night >> we're all accountable people, right? let's look around the table. of the last four phones that have gone off, how many times has it been mine

>> four. >> one i'm the last one we've got one here, we've got one here >> my phone is always on off >> yours never has -- >> well, your battery's on 2%, so -- >> i feel like i'm a scapegoat here feel like this isn't fair. shares of micron up 36% this year, but still underperforming the broader chip space with results due out tomorrow, options traders are betting they may be able to play catchup. mike khouw's got the action. >> yeah, so, it traded 1 1/2 times its average daily call volume the options market implying a move of 6% by the end of the week that's in line with the historical average the busiest contracts were the october 71, 75 strike calls. that was a result of purchases of the call spread that trader making a bet that it could go to the upside >> all right, thank you, mike. mike khouw. coming up, will curaleaf's high times continue? we'll be joined by the xe's

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welcome back to "fast money. the senate banking committee is set to vote tomorrow on the newest version of the secure and fair enforcement regulation banking act. this would give cannabis companies access to business banking services pot stocks higher ahead of this vote they've been higher for weeks. for more on what this could mean for the industry, let's bring in boris jordancuraleaf >> great to be back. >> what are you expecting tomorrow >> you know, i think tomorrow, i

think it was a year ago that i was on with you the last time and we talked safe banking it feels like ground hog day this time, we're going to get a positive vote. i think what's really important is this is the senate. so, the sunseenate the actually taking this law up, through the whole process, so, through committee, onto the floor. and i think both republicans and democrats have had significant time to opine on this law. i think it's in pretty good shape. i think we're going to get a positive, bipartisan vote of probably 14 members tomorrow on the banking committee, and then it will go the senate floor, and i think we do have the votes to get it passed. >> boris, it's tim you said many times, you're right, i would confirm it, as well, you are not playing for this vote tomorrow you are running a business that you picked the places where you want to put down assets and you are running as efficiently as possible but -- so, you know, whether we get this follow-through, i think

getting through the house is going to be tough. let's talk more about just the capital markets and the prevailing market conditions cannabis stocks have had a major rally. you came to market in the fall of 2020, when the conditions got very good, and people were critical at first. i think it was a very smart move, because it gave you a butt tres of capital, where at a time everybody needed as much capital as possible. how do you evaluate the environment today, is it a good time to come to market for companies that have seen a major runup in their stocks? and just where balance sheets are overall. >> i think that right now, it's not a great time, at least, i don't think the biggest companies are going to come to market with any significant raises at this point in time the smaller operators that are in more need of capital are coming to the market right now we saw a couple of small deals happen last week and the week before i don't think you're going to see any of the names you see up on the screen come to the market any time soon. i think we are reasonably well capitalized, we have strong cash

flows and we don't need to come at this level of valuation people are going to wait to see a revaluation of assets. i don't think at this point in time people are in the condition to have to raise capital most companies have cut costs, have rationalized their businesses, closed markets that they didn't want to be in and feel much better today than they did, you know, even a year and a half ago so, in many ways, you know, this, you know, lack of legislation, lack of regulatory change has forced the industry to really start to clean its act up and get to profitability. >> so, you're not going to be raising capital, boris, but can you talk to me about what you see on the other side of this, say it passes, what sort of environment are we in right now, i mean, i would think that for many people, cannabis is very discretionary item, for others, it's a medical need. but for some, it's definitely discretionary. how does this hold up in an era where consumers are strapped and they're looking to cut costs, you know, all over the place in their households

>> well, there's no question that i think the whole industry and cannabis is no exception, all consumer products industries right now are feeling the pressure of the consumer and we're feeling curaleaf, as a global platform, we have a large operation in four major countries in europe, in addition to the u.s i would say in europe we're feeling it even more than the united states right now, with a higher inflationary environment there than we're seeing in the united states. the u.s. consumer seems to be a little bit more resilient than the european but i do think that -- with time, as rates come down, i think we'll start to see a recovery then. >> all right, boris, great to see you. thank you. boris jordan. up next, final trades.

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time for the final trade tim seymour, whose phone is definitely off right now >> my phone? this is -- sounds like a.i. some place else mcdonald's 245 to 250 where you're buying it >> karen >> yes shorts really working, you think, thank god i have them time to cover some bought a little tlt back >> dan >> epic trade in the tlt just pressing those. nike after its earnings, if you see it low 80s, that's probably the time when you buy it >> if any of the players of the new york liberty are watching -- >> all fabs of the show. >> all fans of the show. >> we are huge fans of the

liberty. huge >> listen, their season hangs in the balance. so, don't make a regular season disappear. play the game tonight. transocean >> thank you for watching "fast money. "mad money" with jim cramer starts right now.