happens with the potential government shutdown next week as we start q 4. but can't forget, a week after that is when we start getting bank earnings. >> that's right. in the meantime you've also got the government shutdown, the child care cliff and, resumption of student loan payments so watch the consumer as we do so awesome already. that's going to do it here at "overtime." >> "fast money" starts now. >> live from the nasdaq market site in the heart of new york c city's times square, this is "fast money." a september to remember. maybe one to forget. the rapid rise in rates sending stocks low intercontinental it's not the only one grabbing our attention. what will it mean as we head into the final quarter of the year? plus, a new playbook. that's what one china expert says they'll need to deal with beijing in the months to come. he'll explain the xs and os straight ahead. later, taking on big pharma. shares of this little known biotech soaring to the largest

level since going public, all because of what it's doing in, you guess it, tweight loss. we start off with the last trading day of the month a look at just how much things have changed in the month of september. we kicked off the month, the yield in the ten-year treasury was less than 4.1%. it's risen 50 bases points, hitting levels not seen in 16 years. volatility soared 30% to its highest since may, and meantime, stocks dropped with the nasdaq and s&p locking in their worst months of the year. as we get ready to kick off the strongest time of year for the marks, what should we expect? tim, what do you expect? >> i expect there's not going to be a fed meeting that was supposed to be a nothing burg that are turn into the a big burger. we're already on the move.

but i guess what i expect is that sentiment and positioning have already made adjustments based upon how bad september was. and i think they've already started to adjust backwards. i realize -- and carder probably thinks the about this all the time. as does bonawyn. bonawyn likes volatility. carter thinks about technicals. and at the end of the day, those are the things i think we can predict and set up. going into the next year are, listen to who you want to listen to. nike said last night their consumer is more resilient. bodes well for back to school. i think we're going to struggle and rates will push higher. i'm looking more towards positioning and sentiment, which got very extreme to the negative, and are already starting to come back. i think it's going to be okay. >> it's about money flow. not much changed in the earnings multiple.

not much changed for the earnings quarter. what's changed has been the dollar market, oil, and rates. yet we know when you get the sequencing, when something gets too far one way, it's usually right to play it the other way. hard to time, but that's the idea. so consider this -- we know that just three months ago, four months ago, we were at 3.5 on the ten-year yield, and oil was $65 a barrel and consensus was hard landing it's coming now. all of a sudden that's out and it's higher for longer because oil's at 59 and rates are at four and a half. it's just extrapolating the current trend. both are overdone. dollar's over done, oil's over done. we should get -- >> you sound bullish. >> that's the thing. the the's rolling over and rates are going down, why wouldn't you think the s&p's going to go. there are relationships, inhavers and direct. if it was always so perfect with the dollar going up, oil should

be on its knees, but they're not. these relationships are spurious. don't always go to way one would think. >> trying to time it to the end of the year is a bit difficultle i tend to agree with a lot of points here, being things ebbed and flowed too much on the negative side. in the interim it isn't bullish. money has been free for the last 15, 20 years. that's different. the fed is telling us that is going to remain different. i don't think the playbook of old, buying the dips per se, is necessarily the way we're going the see this happen. you have six month cds yielding around 6%. what we thought initially was we should be getting long duration on the end of the curve because things are are coming to a plateau. what you've seen now is a real move on the back end. that to me really puts pressure on the equity market because of the whole tina situation we have had for the better part of five years or so is no longer a reality. it simply is not.

and because of that i think there are alternatives. even if you're not successfully bearish, just the fact that there's another asset class that will give you compelling yields and returns is enough to take the froth out of the market we've seen recently. >> does seem like it would be too good to be true to work past "free money is dead", that scenario so quickly, grasso. and with higher for longer, the longer the rates stay higher, the burden gets bigger. companies run up against a deadline in terms of they have to refinance their debt some time and they're going to face higher rates. same thing with the consumer. >> yeah, i think for the large part, though, melissa, a lot of companies are not in the situation where they have to refinance any time soon. so if you look at the seasonality of the market, we're at the end of the month, the end of the quarter, and if -- i think the stat is 84% of the time, if you're up going into

the fourth quarter between 10% and 12%, you're going to be up at the end of the year, higher. we're there. so that's your seasonality issue. that's playing for the bulls. the other thing is, 30% for funds actually end their fiscal year at the end of september. so now they have a clone slate so. there's a lot of window dressing i would say going into the last week of this month and obviously the end of this quarter. if all the stuff that you entered into the show with -- the oil rising, rates rising, throw in the uaw -- if any of these things get better, the market should move higher. i'm still in the bulls camp. i feel pretty good about that. >> we should have asked the mentalist. >> he did extraordinary things. >> the one question we didn't ask him. >> the correlation between

stocks and bonds has been what i think the last couple weeks have been about, and those correlations are two and a half standard deviation. what does that mean? it just means that for traditional allocations, the 60/40 rule. bloomberg's got an index. everybody does. when you have that kind of correlation, that tends to underperform. and what we're seeing for a lot of people is that 60/40 rule has underperformed in this year. so while i think the headline numbers are pretty good on the index, i think we have to think about people that might be chasing a little bit going into year end. but that ultimately -- i think for allocation, the fact that you can grab medium-term duration and lock in long-term rates is what a lot of investors should be thinking about. you haven't had that opportunity for a long time, and some of the volatility, rates may go higher. you could look at your bond price and say, no oh. but you're not looking in for the bond price you're locking in

for the yield that's attached to it. >> speaking of yields i tend to agree with steve when it comes to the blue chips. they're not going to be in the position when they have to refi, and when they do they're going to get sweetheart rates. you want to look at the actual index it's outperformed and done quite well. if you look at the duration of those bonds they pulled back to the three or four-year period, because those corporates were expecting that rates are going to fall and they'll be able to refi at a much higher rate. that setup may get challenged in the next few months and years, and i think that might be the shoe to drop in terms of credit at least widening some. when you start to see credit widen that's when you see the hits to the equity market. >> big mistakes come from credit and leverage. we've yet to have a real credit event. the nightmare scenario is if of course we really do start to

stall on main street. you get some sort of economic weakness and yet oil and rates stay high. that of course is -- >> feels like we're on the cusp of that right now. >> you get that, that is -- multiples can track dramatically. >> that's my view on where i just think discretionary looks challenged in some of those defensive sectors like health care, like staples, and i think now energy, i think truly are defensive. and i look at health care and staples, and they have had a rough run. you're at the bottom of especi essentially one-year range on staples. i think it's a pretty interesting time for a lot of companies, whether it's a hershey's or general mills where they rerated to the upside during covid if places they didn't belong and the market punished them as they should. those are opportunities here into the fourth quarter and i think last year. >> grasso, can you be bullish if you think the consumer is having trouble ahead of the holiday season?

all the shopping typically done in the fourth the quarter, including halloween and thanksgiving, et cetera. if the consume a's paying higher gas prices, higher heating prices for their home, higher prices at the grocery store -- you name it. higher prices all around. can you still feel good about the markets? >> well, yes, up until you went off on that litany. but it's a -- when i look at the consumer, you can't have it both ways. we've talked about that the consumer is becoming more and more trapped, yet the economy is way too strong. so, it's one or the other. i think that the consumer's resiliency has shocked and surprised the economy. i would think that it's probably going to continue. i think oil prices are going to be dropping, and if you look at oil futures, year from now, they're pricing them at $84, so it's in backwardation. if you're going out, the market

sees this is not a true supply/demand issue, this is a russia/saudi arabia issue, which means it's quasi temporary. if you look at student loan payback, no one's going to be forced to be paying back student loans because you still have an administration that says they're going to push for forgiveness. so there's a lot of reasons to be bullish and have faith in the consumer. >> as markets wrap up, a messy month, chart master here is honing in on three areas of the market that the hoping to shake off an ugly year. what are the three areas? >> rather than picking them myself i just sorted by, what is the worst? let's look at the caboose, the rear. the three worst areas of the market, of course, banks, utilities, and precious metal stocks. you can see it here very clearly. you have the market up 11.7, and then in descending order, gold miners, represented by the philadelphia gold and silver index, down 11. do you jones eutility average,

over 100 years old, and kb bank index. let's look at the areas or themes. there's not one that's good. these are the most beaten up go lower still. you can see on the screen here converging trend lines. you can interpret it however you want, but it's broken through to the downside. that's the bank index. take a look at utilities as measured by the do you jones utility average. we've just taken out the lows of almost a year and a half go, breaching the lower band. and finally you can see here is the philadelphia gold and silver average of important mining stocks. all really quite similar in terms of what they've done. so big disparity with the market, and yet one might think, maybe we should bottom fish. i wouldn't. >> interesting. what utilities and banks tell you is we're going higher. we're worried about credit and the pressure on utilities to

have the free cash flow they're generating. with precious metals it's more or less pretty simple. the dollar kicked butt in the last six weeks and essentially rose 6% off a level. the correlations there are extremely high. everything that we're seeing about this setup sounds like a world where, especially in inflation is kind of peaking, sounds like the time you want to buy gold. i think forget the industrial uses for gold. think about the monetary policies i think you're buying gdx, but if you look at some of the other resources, i think resource names look interesting as well. integrated miners. and i think oil's going higher. >> bhp or rio. >> oil prices started to rally. not like china's been given that strong of a shot in the arm, but -- >> if china shows a little bit of life, that could a lot in terms of multiple. >> for commodities i tend to agree spot on in term of

precious metal companies. the dollar challenged that there, but fundamentally that's where i'd like to be. banks not sure if yield is going higher or credit going wider. i would expect credit going higher given what we've seen in rates. that spread remained tight, and i'm not sure why. >> steve, would you dare to bottom fish an area that the chart master says not to bottom fish? zblinchts. >> no, i trust the chart master on that. >> you're the only one here. >> on the premise that he's making. but you know, there are so many correlations. carter likes to talk about correlations. when you look at gold, i can't help but look at bitcoin. can't help but look at crypto. then when you look at gold, do you do the miners or the commodity? and i think that we've talked the about this long enough on the show for, you know, a decade and a half now, that when you

think gold is going to be moving, miners actually have a two or three-to-one ratio they move gold both up and down. if you think it's going higher, buy the miners. >> miners or the metal? >> miners. i agree with that analysis on the beta. i say this a lot about a lot of different miners. i think the companies are run differently. i think there's been a capital discipline. that's why copper stay as stubborn. if there's been such a lack of investment in copper mines and infrastructure, and i think across the precious metal space, we also don't see that m&a mania in the space that i think forced these companies to do their job. so i like gdx. i like silver over gold, and it continue to think uranium goes higher, too. >> do you ever override how you read the charts with your fundamental belief in something? >> no. >> never. >> what would be the point?

you've got tick to your discipline, unless you get a magic trick going. >> that wasn't magic. >> he was in our heads. >> plus he doesn't a fundamental belief. >> dangerous place to be. developing story here. the deadline to avoid a government shutdown just hours away. emily wilkins has the latest from capitol hill. >> reporter: lawmakers have spent all week voting on different spending bills and they recollect no closer to finding a path to end a government shutdown that is set to begin sunday at midnight. a stopgap measure backed by kevin mccarthy went down on the house floor today with 21 republicans joining democrats in defeating the measure. house republicans are actually meeting now to discuss a path four, and it's just not clear what that's going to be. some members are pushing to keep the government shutdown for weeks while they pass all remaining long-term spending bills. others talk about teaming one democrats to force a vote on the floor. honestly, the quickest way to

end a shutdown would probably be for the house to take up a bipartisan bill the senate at expected to pass on monday. chuck schumer called on mccarthy to bring the bill to the senate. listen to what he edsaid this afternoon. >> the speaker needs to abandon his doomed mission of trying to please maga enthusiasts and instead needs to work across the aisle to keep the government open. things seem to be getting worse for the speaker rather than better and it's time for him the try bipartisanship. >> reporter: mccarthy has said that he not bring the senate bill to the floor unless it contains something on border security, and senators are trying to work on an amendment, but they actually need to have one that's going to get the support of both republicans and democrats, and that's going to be really, really difficult some at this point we absolutely look ah ah headed into a shutdown. the question is how long it's going last. the longer it does, the more of a hit this could be to the economy. melissa?

>> emily, thank you. emily wilkins. we also won't get reads on the economy, because the economic data won't be released. >> maybe that's good. >> just look at the chart. >> through go. >> it's amazing to me as a guy that spent a lot of time in a merging markets where a political shutdown and political wrangling and dysfunction is usually what causes sovereign cds and causes government bond yields to go sky rocking. we've heard from every agency. some more focused on the banks. started with fitch. heard moody's late last week talk about sovereign credit in the context of a government shutdown. i'm not saying they should, that they shouldn't. i'm just telling you that's not been part of the calculus. i think that has a lot to do with some of the last 10 to 15 bases points of bond market. >> it underscores government

dysfunction. sadly, government dysfunction is not likely to go away or get better any time soon. >> yeah, we have had, what, somewhere around 20 different shutdowns since 1980. both parties have held responsibility for them at times. it's probably pretty evenly split. it's not going away. it's only more contentious. and the truth is, there might be an 11th hour where the speaker has to actually bring something to the floor where he can get democrats to vote for him. that would probably be a death nell for his speakership, and i think it's going to get a lot more murky. but when you look at the average time respond of these shutdowns, they're probably on average eight days long, because of the extra long one we had recently. let's hope we don't see one that lasts more than a week. coming up, a weight loss

drug that could enter the arena. structure soaring. we'll give you the skinny on why investors are excited. new trouble for the big three. uaw announcing a new wave of strike as negotiations stall. "fast money" will be right back. ♪ (upbeat music) ♪

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welcome back to "fast money." another company pulling its hat in the weight loss ring. angelica, welcome to "fast money." what's the latest? >> thanks so much for having me. structure is saying people with obesity lost 5% of its body weight after taking its experimental pill once a day for four weeks. shares up 35% today on the phase 1 b trial results. nausea and vomiting were the most common adverse effects and that's common. none of the participants dropped out of the trial because of the adverse events. investors are clearly excited about these results and the growing market for weight loss drugs. analysts saying that structure's pill could be kpi we lie lilly's

pill, and eli lilly being a growing powerhouse in the space. it's important to know this is a tiny trial and results are early. the study included only 24 people and findings will need to be confirmed in future studies. >> and this is a pill form, correct? >> reporter: correct. >> tim, you're pointing out novo and eli lilly have had a pullback. >> lilly's down 11% from what looks like a blow-off top on volume and traded down to the 50. this is not cause for alarm if you're a bull. what's cause for at least review is the competitive landscape. it is getting -- i think it's less about the sum of the regulatory concerns that might be coming with some of these studies that are proving all kinds of side effects that

aren't great. i think it's the competitive landscape. the question really is about total adjustable market and margin expansion. those are things analysts have had a good time with lilly doing whatever they want. 78 times trailing tells you where the stock needs to go in the future. >> right, and the irony is of course the winners, as much as they're up, the really big moves have been from the losers, insp and decks com. down 40 and 50%. that's the best trade, being short the ones that are going to suffer. >> i think the pill form is a pretty compelling argument. talking about a $100 billion global adjustable market. these are all compelling reasons, but these are -- these things doubled since may or june. there's a lot baked into the price here. early stages, 5%, i'd like to see more data before willing to pay -- particularly when there's two other alternatives.

to throw my hat in here. i'd like to see a little more data. >> yeah. grasso? >> yeah, i had picked amgen. i traded out of it. if you look at that chart up against lilly's chart i thought it was overextended. and amgen shows promise on their glp-1 receptor as well. so i'd rather play a no-name like an amgen that people are comfortable moving around in the name name. with that type of chart with one to bonawyn's point that has really rallies way too much, way too fast. >> the real competitive one to this particular structure therapeutics pill is pfizer. they're saying it's a real alternative to pfizer. >> tim's pfizer and he wishes it wasn't tim's pfizer, although phase her a good day today. i think they reinvested in a pipeline a post covid intervene

environment that pfizer was interesting. they took their wind fall earnings didn't sit tight. they didn't give back the shareholders they went out and bought a lot of stuff and renational securitied. lilly, the requirement is in the next eight years they grow 25% a year. the that's what you're banking on, you want to own it. a lot more "fast money" to come. here's what's next. tesla revving up for its latest delivery data. pump the brakes on the stock? we'll tell you how options traders are playing the game ahead of a pivotal print. plus, $20 and a side of fries. california's giving fast food workers a meaty pay raise. will it greece consumers pockets or toss a wrench in the labor market? you're watching "fast money," live from the nasdaq market site in times square. we're back right after this. move to the cloud.

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welcome back to "fast money." tesla wrapping up the quarter in the red, but still riding its high for the year, just about doubles in to 23. options traders plugging in and charging into the game. mike's got the action. hey, mike. >> often one of the busiesest single stock options and it was today and traded above is own high volume. represents 14.5% of all single stock options volume today, and the bulls and bears are evenly matched, but at this time bears just took it, beating out the bullish bets by about 1%. one of the examples i have here, the october 240 puts, a buyer

paid, betting a premium that tesla would drop 7% or more in the next two weeks. >> there are a lot of factory shutdown factoring in the numbers. >> how does this chart look? >> i was not paying attention. can you fell me what it was? >> it was tesla. >> okay, because i heard my phone go off. i didn't want it to bother anybody. >> my phone goes off. >> the answer is it's a pair of 2s. same price it was a few year ago. acting better, but is it something you have to push into or go short? no, just leave it alone. >> i tend to agree it's a pair of 2s, but i feel like i always say that and the stock continues to move. given where we are with the uaw, i would tend to think you play this for the long side, dare i say it, intermittently. but if there were a time i'd jump in it would be now for

probably a month long or so trade. >> i know you don't like it. >> the phone ringing? >> it wasn't ringing. i was worried about it ringing. >> i mean the stock. >> i don't like the stock and don't have a view on the chart, but i have a view on delivery numbers, which is they don't matter. we know they're going to be lower. numbers are going down. therefore i don't think it's relative. there are people out there that also think the price cuts are really all about them sweating other people, and we've seen from the competition that it's going to hurt them if they have to cut margins. now, again, no, i don't like the stock, and i've typically been very bearish on the stock. i do think that they have an earnings profile that every other competitor would like to have. >> i do think, though, that it feels like the setup where if

they beat all the numbers there's a huge pop to the stock, grasso. >> yeah, 100%. and to tim's point, i think he's dead on. they were sweating other people up until the last couple of months now where they know that the other carmakers that are trying to dabble in there in the ev space are hemorrhaging money. now they have uaw problems. they don't have either one of those, and i think they're back launched to the best position. and i'm not long the name right now, but i am long rivan and they're starting to make a move in the charts, too. they're definitely second place, way, way, way distant behind tesla. >> mike khouw, thank you. good to see you as always. coming up, new strikes out of the uaw and one auto ceo barking back at negotiations hit a snag. plus, the mixed signals beijing is sending to the u.s. are things about to get more heated?

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welcome back. stocks a whimper as a republican plan failed to pass the house. for the month the dow is down more than 3.5%. the s&p and tech heavy nasdaq seeing bigger loss, both posting their worst month of the year. meanwhile, the uaw authorizing new strikes against general motors and ford today. nearly 7,000 new workers walking off the job. jim farley slamming uaw leadership as a war of word heats up. phil lebeau joins us now. >> reporter: we are nowhere close to seeing a resolution. to bring you up to speed in terms of the two new additional strike location, two final a semiably plants, one for ford in chicago, one for gm. there are 25,000 uaw members who

are on strike, and ford ceo jim farley didn't wait long before that happened before he called a briefing with analysts and reporters as you take a look at shares of ford, and said among other things the uaw is holding the deal hostage over battery plants and the insistence of the uaw that those be a part of these negotiations. here's what he had to say in terms of frustration over those talks. >> ford stepped up with a historic offer and bottom line someone needs to tell the truth about what's really going on and what's at stake here. >> reporter: what he thinks is going on is this strike was p premeditated by the uaw and they're not in any hurry to solve it any time soon. head of the uaw stated, i don't know why jim farley is lying about the state of negotiations. could be because he failed to show up fur negotiations this week as he has the past ten weeks.

if he were there he'd know we gave ford a comprehensive proposal monday and still haven't heard, baa. also take a lack at shares of gm and stellantis. gm says he's offering a historic contract. stealantis was not part of the negotiations today. bottom line is this, melissa, we think -- not just me, but the people in the autoindustry think this is going to go on for so many time. there's no indication it could be resolved soon, and what we saw today was frustration on the part of jim far will i and other executives at ford about how to talks have proceeded or not proceeded. >> any impact now, phil, in terms of the autos available for sale? have we seen that impact? >> reporter: not yet. we checked with j.d. power earlier this week, and the levels haven't changed. i suspect that's going to change over the next two, three weeks

because you have more models that are impacted, and this is where you really start to see slower -- there's no deliveries coming from these plants that are now seeing workers walk off the job. so it's going to take a little bit of time, but this is where you start to see it kick in i'd say by mid month. >> phil, thanks. never a good sign when both sides call each other liars. bonawyn, how do you feel about the liars? >> although not uncommon. >> when you asked me this before i was saying, listen, ford hasn't been impacted. by farley's response, i felt he thought theydodged the bullet and now are getting hit. the ev situation, the battery factories, i think that's a nonnegotiable. elon musk came out and said it. it sets up for them to be not competitive in the ev space. if that's really going to be the sticking point, i don't see a resolution any time soon, and i'm now a bit more bearish than i was previously about ford being that they had avoided this whole situation, but the fallout

is now affecting them. if really the sticking point is evs, i don't see how they're going to make progress being a player in that space. >> looking the past 30, 60 days, the real pressure has been on the luxury. lexus, bmw, really locked down. the slowdown is coming. >> i dig jim farley, not just because he's an hoya, but because he is honest. he's called out ford, and this week ford decided to spend their blue oval ev plant effectively, and they're doing it for a couple reasons. bonawyn, you're right. they're making a statement. the implication is they cannot be competitive based on the demands from the uaw, oem, dynamics and it's going add a thousand bucks to a battery. so interesting. coming up, one step forward, two steps back.

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welcome back to "fast money." a slew of headlines out of china hitting the air waves as the country prepares to kick off a big week. apple raise concerns over new rules that could restrict foreign apps in the country. china's trade council asking china to reconsider the tech ban. let's bring in cnbc contributor dewardrick neil. great to have you with us. on top of this, president xi,

president biden are expected to meet face-to-face some time in november. i'm wondering, how do you read all of this? >> well, first of all, thanks for having me, melissa. i think if you're watching china right now, it is mass confusion and a contradiction in terms of what we think china wants, listening to some of the rhetoric versus the actions. and so if you're a business now trying to figure out the direction, it's extremely, extremely hard to do. you raise apple as a perfect example. the hits keep oncoming for apple. in this case as you point out, the government wanted apple to remove facebook, x, and instagram from the china app store. these platforms cannot be accessed through the web but through a vpn they can and they're unregistered foreign's, melissa. these companies are not going to

register because now they've become liable for cross-border data transfers. you spoke about exit bans. most exit bans are coming from companies doing due diligence and risk assessment. so if you're a company trying to invest in china you need these services, but your people are being targeted. it's a massive confusion. i would not want to be the one making decisions on whether to stay or go right now. >> do you read this as sort of a ramping up because they are scheduled to meet, you know, sort of proof that we are tough, we can really make your life difficult? and so when we meet, you listen to us. >> yeah, look, i think what is happening here to the degree that any of us can know, is there are some real challenges about the way forward in china.

there's pretty much acceptance the old model, property sector, tons of exports, that model is broken. where xi wants to take the economy is in the high tech space. high tech manufacturing, second conductor chips. so that's where he wants to go. the problem is there's concern that there may be systemic risks and contagion in the orlando sector. he's trying to slowly land that plane while taking off. and it's not happening because he also has concerns about stability and national security risks. so it's a massive confusion. but i think what he's really trying to sort out is the domestic challenges at home and trying to prepare himself for a long-term competition with the u.s. and a lot of these things are not congruent. in fact, they're contradicting one another. >> when you look at the companies in china themselves and the ones that have been under the most pressure. and we talk about them on the show, whether it's an alibaba or

some of the national champion tech companies, how do you do that in that environment? they could be the vehicles -- i realize on some level they've gotten ahead of the state and that's been part of their problem. do you think the environment -- everything you just said, and i think it's -- i totally agree with these dynamic of kind of old school new school economy stuff. shouldn't these companies be part of their plan to advance the technology these places? >> yeah, i think you're absolutely right. the goal is not to kill them off completely. the goal is to bring them into compliance be make sure they are moving in the same direction as the party state's development strategy. for soft tech. for hard tech, this is where most of the focus, most of the investment, i think most of the government resources are going to go, the hard sciences, the things that we have been talking about. how does china become self-reliant in chip manufacturing. what's going to happen with advanced manufacturing. to the degree soft tech can be

useful -- and i think we're seeing them all come along, that's fine, but they're not going to be killed off. they're not going to have the sort of clout, the sort of muscle and resonance they used to have in this new model. >> got to leave it there. thanks so much. great to see you as always. we've got a news alert here. the biden administration's effort to negotiate drug prices with medicare. eamon has the details. >> reporter: that's right, it's a courtroom loss for the f pharmaceutical industry and the chamber of commerce as a federal judge declined to block the biden administration from implementing those drug price negotiations. remember, that's been a key promise of the biden administration that, they would negotiate drug prices in medicare and bring down the cost of drugs overall. certain drug prices will be eligible. the judge declining to stand in the way of that process. a loss for the pharmaceutical

sector. back to you. >> eamon, thank you. a lot of the drugs on that list are basically given out or sold with tremendous discounts already, but in the longer term as more drugs are added to part d, that could be forced obsolescence for other drugs. >> there's a principle. this is where the drug companies have to dig in. it started with merck. i think there's going to be a lot more unity. analysts shouldn't be doing a whole lot to their eps forecasts for 2024-25. this is an issue beyond. i don't know. i feel like the drug companies should be rewarded for their r&d within reason. that is the prevailing dynamic. that's how it's going play out. coming up, a wage war in california and this time it's not a strike pushing wages higher. pupede government is being us

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. welcome back. "fast money" for fast food workers in california, as minimum wage is set to jump to $20 an hour. this new record level didn't come because of a strike, it came because of government legislation. could other states follow california's lead? kate rogers joins us with the

details. >> reporter: this was a win of course for fast food workers in the state, as you said, taking the minimum wage for worker up to $20 an hour on april 1st with chains at more than 60 location nationwide. it was brokered by a fast food coalition that includes the seiu and advocates from the national franchise association. there were further hikes to come, but the deal removed provisions that owners were concerned about. it gets california to the highest in the nation and there are further concerns that would create similar fast food councils to create wages and conditions. telling me they're not stopping with california. take a listen. >> that's why this fast food sector council so significant in the state of california, why we need repry late it in other states, and why we need to transform national labor law to actually make it possible to hold multinational corporations accountable and get them at the

bargaining table to make decisions on wages and benefits. >> reporter: this one will certainly be one to watch, thank you. >> 20 bucks an hour is higher than the base minimum wage in california which is higher than many states' minimum wages across the country. the first thing i thought of is if you're a fast food worker, you go to work for big chains, they're going to have to chase and raise what they're paying in order to track workers. makes it very difficult for the smaller businesses out there as well as of course raising labor costs in general. >> it's unsbintended consequenc. i think you hit it on the head. your first job is usually in a fast food place or food industry some somewhere. employers are willing to hire you because you don't know

anything. once you lift that level to $20 on hour certain people want to take those jobs away from the younger generation. if you just look at the fast food casual market, all those stocks look terrible with the exception of cmg. up next, final trades.

time for the final trades. steve grasso. >> rivian back above its 50-day moving average. hoping this is the real

breakout. >> tim? >> tim's pfizer beat the trend today. terrible chart. i think the valuation's off. >> carter. >> >> double. going with tim's pfizer. also tlt playing for the bounce. >> bonawyn? >> great chart, structure