about 626 points. the nasdaq taking it on the chin. then in this "overtime session," lots of moves, mostly to the down side. not all. there's a lot more to come on cnbc and ahead. that's going to do it for "overtime." "fast money" begins right now. >> live from the nasdaq market site in the heart of new york city's times square this is "fast money." a selloff to start september led by a major swamp in semis. seeing the worst day since the first days of the pandemic. will this risk offtrade set the stage for what we can expect the rest of the month? counting down to friday's big jobs report. what it could tell us about the possibility of a soft landing and how the data will impact the fed. charting the rise in health care stocks. all time highs. boeing tumbling to two-year lows. and what big bank noticeable underperformer even in today's broader selloff. is there more pain to come?

we'll debate that. i'm melissa lee. here are my guests on the desk tonight. we begin with that rough start to september. ma major averages seeing worst day since the market route. the dow lotising 600 points. the nasdaq leading to losses down over 3%. chips up. the tech slide, the etf closing 7% lower for the worst day since 2020. led to the down side by nvidia. that stock notching the biggest one-day drop since april, losing $279 billion in market cap today. kla corps, intel among the names falling sharply. the ten-year yield shedding 7 basis points. horn hovering around 3 .8% z this se

the stage for a more volatile and unusual september? guy? >> let's not bury the lead. the last two weeks we had amazing people sit in that seat do great work. melissa lee, you are the key to the success of the show. welcome back, number one. >> i'm glad to be back. >> you look rested. you look great. i'll say this. yes, it's a fascinating day. i think it is the aftermath of what we saw august 5th. i don't think anything was cured. as a matter of fact, that bounce we saw from the fifth until the 11th or 12th is the worst thing that could happen to the market. if it was grade you'll move like we saw in april , end of june that, would have been better. nvidia lost $280 billion. these numbers are staggering. i think there is more to come. >> it's interesting. we're talking about the jobs number on friday. i think there is a really interesting report. it will be thursday after the close. 17% of the sales are from apple.

you have dell. you have alphabet, meta, all big customers of broadcom. i'm interested to hear what they have to say, especially on forward guidance. this could be a good read on what this apple phone that a lot of folks are really geeked up about, they're going to release it september 9th, at least the information about it. it should be shipping by late october. i just been fading that trade as part of the apple excitement around that new phone. really what meta, google, some of the others have to see or what we can iner if fer from th guidance. >> construction spending was interesting. that was a big miss. the revision almost made up the entire miss. but didn't seem to matter. so, something like industrials which i own that, was not so fun today. this of is actually one of the worst back to school days i've had in many, many years. i'm not that happy about it. we had a nice august. the bounce back was strong.

and now we're seeing forward names like nvidia and the ai story. i don't know what catalysts there are in the short term. now that earnings are over, right? >> so, i think they're kind of -- they'll move with the current. and this current isn't great. it's not going to make me a seller now. >> i didn't think today came out of the blue. the weakness was in the spirit of what is playing out the last six, seven, eight weeks. go back to the early august draw yawn. w -- drawdown. what went down less? as we rallied off lows, what made a new high? what didn't make a new high, qqqs, semis. this is all in the spirit of the evolution of market leadership and where is the market most pronounced to day? semis, tech. i don't think we're done there in terms of tech seeding leadership. the language we're using is tech is losing its grip on this market for which it's had the last two years. i think that is the big shift. i think many people would be

surprised when you went into the last couple weeks, we have this impression of semis being so strong under the surface. they haven't been. only 50% of semis are above the 200-day moving average. so, this has been decaying internally. micron had already broken. qualcomm broke. this is preceded i think the last six, seven weeks with some signs. >> you think tech seeded con control in the market? that's done? that's over? best days are behind it for now at least. what -- is that broaden ofing o the market zshg? does that continue sore there trouble overall? >> i think on the other side of tech, the strength is defensive today. it is not a one-day phenomenon. utilities are strengthening all year. staples finally waking up. we'll talk about health care later in the show. that is strengthening here also. what do all these have in common? i think it's bond yields and the macro. guy, you hit it right on the

head. what hasn't changed? the macro. yields are where they were. august, dollar-yen is where it was in early august. the macronever rallied w-- rall never rallied. >> what is it trying to tell you? >> i think we entered the realm and karen eluded to this i believe, bad news is bad news y is that? you already have baked in 100 or so basis point of fed rate cuts, however many in term of next year as well. so, now i think what you're hoping for, actually, is good news on the margins and in addition to the rate cuts, that would suggest that maybe they can stick this thing. i don't think you're going to get it. the jobs number, which i still think is going to deteriorate. i think this is going to be bad news. it will be bad news. >> what is good news? is good news a 50-basis point cut? i don't think that is bad news. >> i don't think it comes in the

form of the fed. the fed is a side show now. i think we've come to the realization of what they're going to do. good news comes in the form of the manufacturing data, some of this other data that we've been seeing that's been weak for the last couple of months. and an employment number that starts to sort of flatten out here 4.3%, maybe heads lower. i don't think that's going to happen. >> i think what was evident in q2 earnings is there are two different economies in the u.s. there is a low end consumer that is clearly deteriorating and we had lots of instances of that. but then the mid to high end is kind of hanging in there. i know a few months ago we were looking at the luxury stuff that was sort of deteriorating, again, i think consumer confidence is still hanging in there. there is a concentration of the mag seven or if you want to expand it out to ten which makes up the nasdaq 100 and 30% of the s&p 500. the only one of the mag 7 that

went back towards the highs is meta. after its result. and the deterioration really happened or started to happen after q2 earnings. the fact that q3 guidance wasn't enough that, is the problem. i think it all kind of crescendoed into nvidia's earnings last week when the expectations were just so high. you look at a lot of the companies that are major customers, they just didn't raise capex enough and guide q3 high enough. that was all going to happen. it happened in 2023 and happened in 2024. >> it makes sense. meta was the only -- is the only company so far that is actually able to monetize in a robust way they're ai investments. in a very tangible way. it forces us into the next chapter of this ai story away from picks and shovels, hardware aspect into what can this actually do for us? >> so, well, we talked about this a locht. it comes on the productivity. they can say advertising is very level. we're willing to pay more.

we're so good at advertising now. that's a great thing to see. and a tangible thing to see. but there is still, of course, a lot of uncertainty about what is the promise of revenue? right? we saw elon musk pull this off today. i'm not really sure what exactly the revenue model is and how it will work. but in the short term, my god, what an extraordinary amount of spend on nvidia chips. >> sure. >> that was sort of -- but that's past now. it's a question of, you know, how much reoccurring revenue is there? so, i don't know. as to the consumers though, i do think that higher end consumer -- actually, lower send $25,000 -- is $25,000 dynamics, the family dollar buyer. that is the driver of the u.s. economy. that person is still employed. and that person is still spending if they see value. like target, walmart.

they're there. >> i think the transition better happen. when you look at all the derivatives -- >> the ai transition. >> when you look at the derivatives of ai, it was eight weeks ago everyone sold up on the power stocks. ceg, those have broken here. they look like shorts here. anything that's a derivative of this has been telling you for five, six, seven weeks, hey, something here is starting to change. let's look at the other side of. this the good news remains that the sectors that are re-emerging as leadership, whether the defe defensives or financials, they react well. i don't think they're screaming recession. credit has been restrained largely. but it's really essential that sustains itself. we don't want to be sitting here four, five, six months and financials have broken down. that will be the bad outcome. essential to the call, those remain involved. >> speaking of nvidia, we have a news alert on the doj subpoena for nvidia. the we have the details.

zb >> reportingly sending a subpoena to nvidia asking for more information from the chip mayber amid antitrust concerns. getting potentially a step closer to a complaint, this according to bloomberg. the dominance of artificial intelligence chip gained more attention and inviting regulatory interest in recent months. the main competitors in the public market, a many. d and intel. in a private market, there are two main players. three risk which confidently filed to go public this fall and groc. it is backed by blackrock. nvidia declined to comment on this story. we're seeing shares down another 2% in after hours. >> all right. thank you. so, another strike potentially against nvidia. i mean, everybody wants nvidia chips for a rvenleason. if they don't have that lock, for whatever reason -- >> i think partially that's why it accelerated to the down side. but to have this resolved in the

short term seems highly unlikely to me. >> this is such a joke. there's been a lot of stupid regulatory stuff that's looking at tech right now. i mean, there is no competition. so they have like all the products. you know what i mean? and also, there is so much demand. they can charge what they want to charge. i mean, at the end of the day, are we going to be in the free market capitalism? you know, it's one thing if they really have a lot of cheesy sort of sales practices and the like. it just doesn't seem like that is the case. customers are tripping over each other to bite product. >> right. part of the complaint, according to bloomberg, is it is difficult to switch once you're in this nvidia or apple? isn't that the mark of a great product. hard to switch. >> going back to the original razor blade model zb. >> exactly. hard to switch. >> use the straight edge. >> right. >> that's right. i mean, there are a lot of things to be, i think, concerned about. i don't think this is one of them. i understand. but if we're going to start to

penalize greatness, i mean, we have bigger problems than just in individuala. karen said something always -- nvidia. much karen said something intelligent, what is the catalyst at this point for some of the names? one has to wonder, unless the broader market gets back on the source in a meaningful way, i think the names are under pressure. this is not an indictment of the company, but if you pull up a ten-year chart, we never talk about this company. it didn't go anywhere for ten years. the stock went from 60 to 125 like. that look at the recent move back down to 75 t . this is all part and parcel to what we're talking about. i'm glad you mentioned amd that, has been a disaster for six months or so. >> they always get to the market when the stock is first. right? all the marginal semis first. ultimately, they get the general. nvidia peaked in june. >> outside reversal day. >> june 20th. >> that's right. exactly. >> well, for more on the markets

today, let's bring in the ceo and chief investment officer. were you busy trading to day? >> i sure was trading. today was a day where the stock market fell for a variety of reasons. could be anything from the rally, the last mi-minerally on friday to an anti-growth sentiment generally. what i was doing was selling bonds. because i thought the bond market actually which rallied, didn't rally particularly significantly. and it is really -- the last time i was on, we talked -- it was the nfp day. you know, you saw the following week. except for that one bump in the cent. we've been in a goldilocks environment for the last two months. and the rapid the fastest recovery in history by a vix

pike of the nature that we saw ended very strong. fwh we're in a goldilocks environment. i think that's where we're at right now. >> this is karen. thanks for being on. last time you were here, you talked about being short in bonds and futures. so, where are you now? where do you think the relative pricing with each reflects? >> right. so, you know, it's fairly active this last month. and was able to cover some of the short and add some twos to my exposure. recently, i've been adding longer term bonds as well. the way i look at that, let's assume the fed is going to cut.

we know chairman powell told us he's going to start the cutting cycle at jackson hole. and the data since the nfp has been goldilocks. and it's about right. we know they're going to cut. that's probably more than they may actually do without -- if goldilocks is the scenario. but let's just assume it is. at that point, the two-year note is going to be yielding 3.30, 3 at t3.25. that would put us around 3.85 on the ten year which is exactly where we're at. when we look at the ten-year note, goldilocks, price has no

return. no price return. all you get is the 3.85 coupon. then when you look at stocks, goldilocks is actually a 4% sort of no, m nome nominal gdp. so, let's assume that is only 10%. you end up with a slightly lower forward -- slightly lower earnings because nominal gdp falls by 33%. and the multiple contracts a little bit. growth has been -- comes down a little bit. at that point, you put the s&p 500 at 38, 5800. which is about a 5% return. about what bills are like. so, in the best -- melissa asked what the sort of good news could be. the good news is goldilocks for both stocks and bonds.

and in the good news, neither of the assets outperform cash. >> the good news is 95 an lalog. the longest inversion in hist ar -- history is on the verge of resteepening. that historically has been a really bad sign for equities. is this going to be a '95 repeat? >> i look at it actually -- now, i don't think the stock market is going to crash. i look at the analog closer to an '87 analog. we're not going to have a stock market crash in this environment. but that seems to be a better analog. the '95 cutting cycle was due to

significant mortgage and bond duration problems that took out a bunch of hedge funds and took out orange county, if you recall. and those sort of things, i don't expect. that was not a fed cutting cycle to deal with the economy. this is a fed cutting cycle to deal with the economy. i would expect real bad news will result in even steeper curves than i just mentioned and lower fed funds. but very bad news for equities. and if for some reason the economy continues to stay strong, then equities should do pretty well. bonds will do very poorly. >> all right. andy, great to see you. thank you. all right. so his bottom line is sell bonds. bonds are going to do badly. do you agree? >> i'm not there. >> you're not there. okay. >> global yields topped in a

meaningful way. but you put a major top on global bonds. i think the path of least resistance is low. the problem with goldilocks is gold. the least productive asset in the world. >> clever. >> the least productive asset in the world outperformed the qqqs this year. >> why is that? >> yeah. it looks like yields front run, you know, what they're going to do in september. i think the idea on august 5th that you're going to have a surprise cut, that is going to be something that a lot of folks -- i don't know why they were yelling about it then. i know guy was yelling about it. the people were yelling about it. >> he is watching the show. >> he backtracked. i'm sorry. >> you know, of all the things that went down today, it wasn't the mag seven. crowded trade. everyone heads for the door at the same time. crude oil. all the way back at 70. to me that, is really sparking something about global growth. the manufacturing data and some

of the other stuff we've seen doesn't speak well for crude. that is the one thing that stuck out to me. >> all right. coming up, are the charts pointing to a strong prognosis for the health care sector? we're digging into the technicals. that is next. plus, boeing hitting the lowest level since november 2022. ablists -- analysts get even more negative on the stock. what they can say about the cash flow thacabe at n head wind for the name. "fast money" is back in two. avet without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

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get a free unlimited line for a year when you buy one unlimited line. plus, get up to $800 off google pixel 9 phones. switch today! welcome back to "fast money." large cap tech has taken a serious hit. health care stocks are surging. the health care etf is up 9% since early july hitting a fresh all-time high today. the sector is led by eli lilly. are there other names ready to break out? let's go off the charts with chris to find out. chris? >> yeah. i think this is a sector that has been on the cuff here for some time. the the improvement is not, two three, four days old. if you look globally, when led this name, the european names and the health care names. so we're on guard or watching for continued improvement here.

that will highlight a couple names in particular. bristol-myers which has been a dog for three years sh f, final starting to turn. you had a big gap on july 29th. you tested it. held. i'd encourage foam play that one on any pullback. j&j is another here. frankly is further ahead in its turn. it is short term overbought. i would be a buyer of pull backs there. then if you look for a big base and a breakout to the all-time high, the hmo space, just a great chart. unh broke out here as well. this is an improving sector. it has not got enough attention. if you look at the flow work, there is an exodus of flows away from health care the last couple years. i think it is timely and a catalyst and the stocks are on the come. >> yeah. i expect you to go to make fun of me for pfizer. >> xlv. >> so many things. >> yes. >> the xlv which is the

something in my -- >> i can go after that, too. we'll go with the stock. >> it's the health care. there are others. abby is in there as well. so, that's been a great place to be. i think there is still more room to run. i think it was a lagered and then came back to life. i'm sticking with this. i think there is still more room, even though you always say in an election year, it's very easy for both side to, you know, use the health care as a punching bag. but i think there is a lot of value here. >> amgen is interesting. probably around all-time highs. if you can back out lily and unh, the top three holdings, there is a bevy of stocks. merk is trading 116 or so. that probably has room. then a name we used to talk about and sort of the early days of "fast money," a really

interesting company. i think that is the eighth largest holding in this etf. >> the s&p 500 was about to make new highs just last week. there was defensive stocks or groups that were acting really well. we talked about staples. we talked about tilities. we talked about telcos. you can throw health care in there. that was a curious sort of situation here. here they are now and people are crowding into them as the market selling off. and to me, it probably seems like the exact wrong time to be doing that. the fundamentals in all of those groups, maybe they're fine. but they're not great. >> so we always do -- not we always do, ex-nvidia and ex-lil yshgex-lily zshg , does that index look as good? >> no. you don't get the trail of the sector. what is important is the breadth of the sector started to improve. what was a sector entirely dominated by lily for two years, that is starting to evolve. interestingly, lily did not get

hit today. we were talking about all the weakness in momentum stocks. neighbor maybe that's not on the long side. >> and the chart looks good on lily? >> yeah. >> a bad day for boeing. the company has a cash flow problem. the major implications it could have for years to come. it's a big week of jobs data leading to friday's big employment report. what we can expect for the numbers and what it means for the markets. you're watching "fast mone iy"n times square. back right after this. something amazing is happening here. productivity is growing exponentially. that's because cdw configuration specialists are deploying fleets of microsoft surface devices. built in security, simplified management and flexibility help streamline busy work, which means everyone can get more done. make amazing happen. microsoft and cdw.

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welcome back to "fast money." boeing shares seeing more turbulence after wells fargo slashed the price target and downgraded to a hold today. the firm sees shares hitting $119. lost 26% below today's close. the free cash flow per share will peak by 2027 as development costs offset production growth. shares touching the lowest level since november 2022. it is a debt problem that they have to address. they have to raise money to enter a new aircraft development cycle. there is a laundry list of reasons. >> none good. i've been one of the few people incorrectly, by the way, that have been trying to create or

paint a bullish picture for stocks that is under pressure for the better part of 3 1/2 or 4 years. most chf of which boeing is doi. with that said, chris just showed me a chart that makes a compelling case to where it is support. it is very hard to be constructive here. i will say this, though. the goal -- i think the silver lining, if there is one, their defense business is still there. look what is going on. upgraded lockheed mart continue to d-- martin today. boeing has a great defense sector. they're not getting any benefit whatsoever from it. >> what is the silver lining? this magical chart that gives post to all boeing investors. >> the chart is not very good. >> no. >> we certainly know that. of it's been the case for three years. if you take a step back and look at the 40-year boeing chart, there is a long term trend line that intersects the chart at 140 to 150. if you put your thumb around there, would i be shocked if

that ultimately where it bottoms? i wouldn't be. it bottomed in that range over many significant periods the last 40 years. 1981, 1982. so there is significance to that level. i think you'll see a lot of slack in this chart. >> it's not an equity story though. there is a lot of debt there. >> 45 d$45 billion in net debt. >> you have cash flow problems and that's note a good cycle to be in. so, how do you sell that? well, you can issue equity which probably wouldn't want to do now. you know, there are other painful ways to do it. to me, it's not just an equity story. >> yeah. >> so, staying away. >> all right. coming up, a big week for jobs data. the unemployment report on friday. what will they say about the economy and how will the fed read the report? and intel, the worst performer in the dow taking a hit with the semis as they unveil the newest ai chip. we'll discuss the implications for the chip world.

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money." stocks selling off. the dow dropping more than 600 points. the s&p 500 falling 2%. and the tech heavy nasdaq leading losses, sinking 3%. the worst first day of the month since may 2020. stocks on the move after hours. shares of descaler, pager duty and asanna dropping. gitlab reporting strong full-year guidance. investors gearing up for a big week of econ data. job cuts and two looks at the service economy come thursday, and to end the week, the one everyone will be watching, the august jobs report. cnbc's steve liesman joins us with what we can expect from this data. steve, we've had a lot of revisions to the jobs number. i wonder if adp takes on a special significance given that in the market's effort to read every data point as the most important data point ahead of a fed meeting? >> yeah. well, i mean, all of that is true.

and just so you understand the way economists maybe view the revisions, they were normal revisions in the sense that they are revised every year. it comes around in july. they'll be out by month end february. it was a large revision. but not unusual that they revised it. it's just part of the process. they're doing the best they can do. they're trying to figure out the status of something like $155 mil -- 155 employed americans and they get it wrong every now and then over the course of a year. so that revised down the prior period, melissa. now the question is, how much weakness carried forward? are they continuing the mistakes? we don't know. the best can yoyou can do is fo the trend and think there is not as big a revision going on and figured it out here. right now, the issue, big july -- sinking in the numbers. 114,000, looking for a bit of a

rebound now 160 k or so for august with the month of august with a decline in the unemployment rate. >> is there anything in your mind or the mind of the economists that you speak, to steve, that can move the fed to cut 50 as opposed to 25 based on the number that comes out on friday? >> yeah. i'm going to answer that for sure. i mean, a big down draft in big increase in the unemployment rate, i want to focus on the report tomorrow. the fed is increasingly gauging the market tightness or the tightness of the labor market through the vacancy to the unemployment rate which we get by putting those two reports together. so that's going to be a big focus. if you look at the -- we look at the trading in the market it's more focused now on things ljols and the nonfarm pay role. that's why the second part of the answer is a given move in

inflation either way, for example, up to the upside, upside is inflation, is less important now than a move in payrolls downward. that is going to animate the fed. powell put a stamp on this. we do not seek or welcome any further weakening in the labor market. so we're kind of at a point where the fed is willing or ready to draw a line here. and it will respond. and respond more aggressively if the down turn is more aggressive. >> steve, karen, thanks for being on. the flip side to that question, what is the data that would make powell -- i'm not saying they won't cut. i think that is pretty much baked in, almost no matter what. but just to be more hawkish as opposed to what we saw last time? >> so, this is a good question she wants to ask every single fed person i have a chance to talk to. how restrictive they believe they are. they put up a chart that got a little round on the social media

there that looked at the high and the low version of what people -- what would fed officials believe the neutral rate to be. i'll give you the short end of it, karen. somewhere between 160 and 300 basis points of restrictiveness is out there depending on which fed official you talk to. we'll get a set projections in the september meeting. the fed could do 100 and the most hawkish member of the committee would still believe they're restrictive. that is putting downward pressure on inflation, downward pressure on economic activity. if that's the case, then you can probably bank an easy 100. unclear how long that takes. the market has it priced through december. i don't think that's where the argument begins. i think you get through the first 100 here, get down to 430, 440 on the funds rate. and then the fed starts to have internal debate. how much lower should we go? there is some who say we can go as much as 300 just to be

neutral. and some say just 150. and that sort of ties in melissa's question which is if there is a more aggressive decline in the job market, the fed is going to want to get to neutral faster so that it can stimulate the economy if need be. >> steve, that leads me to this question. historically, one the unemployment rate starts to move, it is like this escaped velocity thing. it moves faster than the market probably anticipates. historically, what does the fed need to do in terms of duration and cuts to sort of stem that tide if there is even an answer for that? >> i'm sorry, but i just don't know what historical stuff to use anymore. right? we just went through a period where we brought down the inflation rate by i don't know what you want to call it, six or seven points. and we barely had unemployment move. okay? that's because what we did is we soaked up vacancies. we got rid of the vacancies.

we went down of two vacancies per person down to 1.2 now. we'll watch closely what that number is tomorrow. whether -- here's one thing i will will tell you. i think the fed, in the future, will be a little bit more reluctant to cut to zero than it has been, say, in the recent past. i think they have found things like bulking up the balance sheet and cutting down to zero, have a lot of trouble on the back end. and, so, i do think there is a support from the fed for the economy. but i don't know that that support will be as aggressive in the future as it has been in the past. faced with the pandemic and financial crisis, they went to zero in a hurry. i think they're coming to recognize it. look at the papers at jackson hole. they taught us that quantity

at -- quau kwan take thei quantitative easing won't be as aggressive as they have been before. the. >> steve, thank you as always. steve liesman. >> pleasure. >> intel releasing a brand new ai chip hosting impressive features. inside intel's latest free fall. plus, a faltering financial stock. goldman sachs off to a rough start in september. could today's move be a canary in the coal mine for the group? we'll find out. refa meyrit ter this.

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they will unveil the powerful ai chip and they're planning a board meeting to discuss ways to trim down the company. our reporter is covering all the action here to break it down. >> intel sells the second generation ultra processing code is 30% faster than the previous generation and faster than the competitors. amd and qualcomm. they're promising increased performance and stronger battery life. the executives from microsoft, dell, google said intel's latest

chip will be featured many their latest laptops. but the news didn't really move the stock. closing down 8% on the day. wall street analysts also throwing cold water on intel's restructuring efforts. the raymond james writing that regulatory approval can delay the potential sale of altera. the company is considering. burnstein raising a question whether it would be a buyer of intel's foundry business given that both companies use different processes to manufacture chips. we're told that all options are presented by the ceo to intel's board of directors later this month and meantime, investors are reading the tea leaves when ib tell's cfo speaks at the conference tomorrow. >> tomorrow. thank you. all right. so there is also the other looming question, less important, intel may be kicked out of the dow. what happens to the money? all these things swirling

around. >> a board member left the company and former ceo of cadence design. it happened very quickly. again, some of the things that she just said, he thought the company was too bloated, risk adverse and had the wrong strategy altogether. that is something that i think even after the news of activists or breakout or any of that stuff this is the thing that actually reversed all that enthusiasm. so, to me, you know, he is probably gone. i mean there is probably a restructuring of the company. it is sad. it was once a company. >> it was. hard to believe, 1997 the stoke closed at the same price that it closed today, $20. >> you could probably play for a bounce off 20. roughly where we've been trying to bottom here. but what's the best you do? 20, 24, 25? there is a ton of resistance on it. don't overstay your welcome. >> homeland security play. valuation. i mean, we tried this -- i shouldn't say we. i've tried to paint a rosey picture with the stock. it's been the wrong thing to do

for quite some time. with that said, they plan to spin off unnecessary businesses. if you look at the last couple earnings report, seems like they have unnecessary business. and that is not being mean. i mean, this is the glory days of semiconductors, if you think about it. and this traded anything but glory days. and they're laying off people in an environment where actually you would think they would be hiring people. i don't know what the case is here? >> 50% cuts in workforce, revamping capex spending. i don't know how they're going to revamp it. >> this is another one that is a debt story as well. that is sort of not where you want to be in a, you know, in an industry where you have to spend, spend, spend right now. this is one -- it should be cheap. probably should be cheaper. probably will be cheaper. so, not for me. >> coming up, struggles in the financial space. bank stocks not escaping to day's selloff. one name is catching a trader's attention. the name and what sayit says fo

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one name having a particularly bad day, goldman sachs, down more than 4%. the worst performer in the index. guy, you pointed this one out. >> yeah. i did. you haven't seen a move of this magnitude in a long time. goldman sachs, the last six months, traded like a technology stock. maybe it's just a function of that. you know, it got a little ahead of itself via vee the other banks. with that said -- vis-a-vis the other banks. when you see a move like this you have to have a pause and say maybe there is something more going on here. i think the banks got ahead of themselves. i think the move in jp moerg janu -- jp jp morgan, the banks are not insulated from any of this. >> i don't like to disagree with guy. goldman sachs was really the star for a long time of the group for several months. i feel like this pullback, while it seems like a lot today is

giving back a tiny bit of what has been impressive performance. i feel like the banks, i like jpmorgan i saw the downgrade to neutral. that might be true. i do think the risk/reward is compelling. >> i am with you. i can see 460 or 465 on the buy. it was a really important secular breakout. let it consolidate. be a buyer. >> many groups traded like if we have a slowdown in the economy, you know, like people are positioning as such. maybe sometimes you're crowding into them. we talk about the defensive names. they underperforms. if i look at the banks, they're pricing nothing in for a slightly lower economy. so soft landing. i look at the bkx. i think it's a sale. i think it's interesting about goldman sachs and morgan they performed to the down side. maybe have activity that folks were building into that valuation. and the expectation, the back

half of the year. i think j.p. morgan looks rtully vulnerable to me. >> up next, final trades. business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.

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time for the final trade. let's go around the horn. chris? >> bristol-myers. you play for 60 here. >> we were just talking about banks. the what other banks i do like? citigroup. i still like it. i still think there is room to run. >> you jumped it. >> i was going to say, i often disagree with karen. you don't like to disagree with guy. >> right. >> i think that is overextended. i think you probably have a pull

back. >> all right. >> guy. >> one of the great lines in history, karen said i would agree with dan and then we would both be wrong. welcome back, mel. great to have you here. >> txt and the defense sector. >> chris, thank you for joining us tonight. thank you for my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always more work somewhere, and i promise to help you find it. mad money starts now. hey, i'm cramer, welcome to mad money. welcome to cramerica. i'm just trying to save you on money. my job is not just to entertain, but to really put it in context. days like today need that. call me. this market is so ridiculous. you can knock it over with a feather or take