gm's been reconstructing its international business on top of that, earlier this month gm told us it's rolling out two new electrical vehicles and these will be the first of 20 new electrics by 2023 none of this explains why gm stock has gone from zero to hero in a matter of months. everything i mentioned helps but none of it gets at the real issue here real reason i think for sudden love, you're witness a reiterating of gm shares by the analyst and then notice l chang in the the investor space. investors figured it was known as a value trap, they were worried the company was in secular decline and you can't pay up for a stock for that's going down the tubes like i said before, the darn thing traded like a bond and no one expected the share price to go anywhere. however in recent months, the attitude has changed and gm looking like the swan without the discover now investors and analyst are willing to give gm credit, benefit of the doubt for its new -- these have all been in the work for years and talked about for years. some sort of inexpensive tesla with a lot less growth but a lot m

for gm a couple of things about gm. if you believe everything that tim is saying, which very well may be true, that it's dirt cheap at 7 1/2 times forward earnings, karen is right, it's not your father's gm because this is the second iteration of gm this is the same level we topped out at in 2013 now gm continues to prove itself ford is in a four-year down trend going back to 2013 or so that probably has to close above 13 one name we mentioned on august 29th, you were sitting right there, and you knew the answer, i said, do you know what auto nation did today you said, yes, they announced a stock buyback. where did that come from that stock is 48 1/2 now if you want to go downstream, i think auto nation is breaking out to the upside. >> a quickie would you rather, very straightforward general motors or tesla? >> at this point, i think with the latest price performance, i would go back to tesla >> i know both of you will say gm >> yes i'll say it emphatically it's exhilerating, it's emphatic the bottom line is you need c

it's not unique to gm. gm is hung up on the view that it's just them arguably they tempered the enthusiasm a little bit, there's truth to it but every auto company will have to do the same thing. >> you said it's a little above its skis, seems like some of your peers in the last month or so got excited about the ev or autonomous opportunity you're talking about something that's going to happen over time what's your time horizon that investors should get focused on that as a real big opportunity for gm for me it felt like that move from 40 to 45 over the last few weeks was all this excitement which is going to play out for years. >> it's a journey. it's going to play out over years. but we like to think of the journey, there's an on-ramp to that highway that on-ramp is now. there's a very limited window that's opened up here, folks, right? i haven't been asked for my clients about auto credit, used car prices for the last three months no one seems to care anymore, right? it's all about tech and processing an

i think it comes on october 26th in the history of now not your father's gm, your son's gm, which has been a publicly traded company for the last five or six years, extraordinarily important. >> dan, i look at the one-year chart and it looks parabolic, to your point about it moving fast. >> if you agree with everything these guys said about the fundamentals with gm, in a lot of ways you love to see this stock pull back and consolidate. if it goes straight to 50 bucks here, it's discounting a lot of stuff that has to happen in 2018 to me, if you miss this move, i think buying it at 45 is not the right trade. wait for a consolidation, if you're a trader, back to that breakout level, they're at 40. then it sets up for a good play into 2018. >> got it. >>> much more "options action," she tried to say, still ahead. here's what's coming up on the rest of the show >> hey you want to see something really scary? >> then look at the so-called fear index, because it's plummeting but that might be a frightful thing for your portfolio we'll break it down. >>> plus calling all "options action" fans

the gm versus tesla story is go we talk about. for people who want to call tesla a tech company only, the delivery story is still a relevant topic >> bottom line, we've seen delays all the time historically

looking at gm, the gm chart, gm keeps going.t week there was a research call, came out of hibernation, said, gm is the middle of autonomous vehicle revolution. let's buy the stock. where were you all summer? this morning you had another upgrade and this announcement about the electric vehicles. that's great. wonderful. let's think about this. look what's going on in puerto houston justple in dealt with. here we have this boutique vehicle,is luxury model s coming down in price a little bit to tesla. a lot of electric cars. the world has to be ready this country has to be ready for electric car. do we have the infrastructure to deal with this. car in puerto rico and houston was electric? what happens then? policymakers thinking about this these things? is the world ready for this? we need to buy these stocks and buy them up. tesla, buy more gm. swell. see what happens. is here, not everything happens at once as someone investors i'm weary of that. maybe you should come back here minutes. julia: i want to tie this to the value vers

hope you were listening to phil lebeau talking about gm talking about better than expected gm, gm hasllic, $35 a month ago, gm, $35 a month ago. that's a new high for gm they went public in 2010 43 is a new high upgraded at bank of america, merrill lynch, ford also better numbers and highest levels since march for ford but it is this reflation trade that the market has been talking about. for weeks now. it is still going. reflation is about firming inflation, somewhat firming inflation, central banks being more hawkish, tax cuts, but the effect on the market is broadening breadth and rallying very select sectors, small caps, banks, energies, look at the russell 2000, fabulous month in september, potential tax cuts, there you see it moving up here. the bank stocks have all rallied as well as the ten-year yields started moving up. people would like to see the yield curve steepen a little bit more we have seen rallies in those stocks as well these are weeklies that you're looking at what will kill this reflation trade, which is the primary topic for the stock market in last month or so y

gm, an investor in lyft, up 42%.pite the rise of the sharing economy, are these stocks undisruptable? >> look, the hotels in general are. the millennials, the way they spend has seen a massive shift marriott is a company that's been doing extremely well. for me, they're structurally intact travel versus buying items or buying, you know, different shopping trends. >> for airbnb? >> airbnb has had a gun to its head, if you look at new york city, you can't stay at a bnb, there's been restrictions. travel, staying at a higher end destination for a lot of these people is an important part of their lifestyle. >> i would rather stay at a, i don't know, name the motel chain, than an airbnb. >> i've stayed at two airbnbs this year on family vacations, it's been seamless, it's amazing. i struggle at the idea of staying at a marriott in london, i stayed at an airbnb. >> if you're going to hawaii, you want to stay at a house. totally different. >> this ride share stuff is working the way millenials operate their lives. they're n

shares are up 45% for gm, a recent bullish call it anticipates a $30 billion business coming from gm'sed car. i sat down with gm's president dan ammann and asked him about the analyst's called. we have everything integrated under one roof. we have the advanced software engineering keep ability, vehicle manufacturing, and what is allowing us to move as quickly as we are is the capability under one roof which is giving us a steep advantage. that is the way we are proceeding. emily: is that [indiscernible] dan ammann: all of our focus is on moving as fast as we can to get to commercial deployment in the safest way possible. we believe the best way is having the capability under one roof. emily: investors are starting to realize gm's ability to diversify perhaps more than other automakers. these things are still fairly far out into the future. how did they come together for you and when? dan ammann: there is a lot to think about sharing some of the autonomous section. we believe autonomous vehicles can be electronic vehicles. there is an intersection there. it is back to the theme of havin

so dan, gm good? ford trade i saw today wauchbt particularly that much more pain ahead. call volume was five times that of put today and then they sold 14,000 an in december 13 calls at nine cents to open. i expect that's an override. if the stock is at 13 or lower, that trader takes in 126,000 in premium against the long stock position two charts real quickly. the five-year has been a train wreck. it just peaked up. and then the interesting five year gm versus ford. they've been kind of tracking, then you see the break so that's an interesting juxtaposition. >> thank you for bringing us that you can check out the full show every friday at 5:30 p.m >>> many edge funds making that you are comback. we'll tell you what the smart moan is really betting on when "fast money" runs. returns. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you

emily: i interviewed to gm -- i interviewed gm's president earlier this week and a gm made a huge investmentn lyft just a year ago. now they are partnering with uber. take a listen to what he had to say when i asked if you would ever consider buying lyft for or deepening the partnership with lyft. >> a lot of options in terms of how we go to market. we can go to market for our own network capability, go to market for different partnerships. all options are open at this time. emily: so, eric, no loyalty. what do you read into that? eric: especially with self driving cars, nobody knows who is going to win, nobody knows what strengths they are going to bring to the table exactly. i think everybody wants to have everything. alphabet is not putting all their chips in with lyft. they have their own self driving car platform and are free to partner with other people. lyft partnered with ford and, obviously, gm. they have a lot of relationships of their own. there is a level of cross pollinating and investing with a lot of people. emily: what progress we have on lyft in the market? have they gained

and i have gm to thank for that.l never forgive them for what they took from me. >> in less than five months, leo and mary buried their daughters. and then kelly. she department know the car she was driving on i 81 near scranton had a bad switch. one that made the car powerless. >> this horrific accident where kelly was dismembered. >> while they didn't know about the bad part, gm did. it was three months after kelly's death her car was recalled. >> they determined it was che cheaper for them to pay off a few people that should figure out what was going on. instead of paying 57 cents. >> more than 120 died between 2005 and 2014 when the cars were pulled from the road. >> there were people at gm that knew about this. and because of the culture in their organization, that information never made it up to the top. >> as part of the settle being paid out to states today, pennsylvania attorney general says the money will go towards enforcement and prosecution. thaerp instrumental in pushing for change. >> she was 21 when s

shares in gm have risen over the last year 45%.tsche bank expects a big push coming for gm self driving cars. i sat down with gm president dan and and asked him about this analyst call. dan: we actually think one of the big advantages we have today is that we have everything integrated under one roof. we have the advanced software engineering capability, the vehicle integration, the vehicle manufacturing fees, and what is allowing us to move so quickly is that we have all of that capability under one roof. that gives us that real speed advantage. emily: so you are saying that moving out of the mobility business is not an option now? dan: we are moving as fast as we can to get to commercial deployment of this technology. we believe the best way to do that is to have all of the capability under one roof. emily: investors are starting to realize gm's ability to diversify, perhaps better than other automakers. whether it be through ridesharing, self driving cars, some of these things are still out in the future. how does it all come to

-- you said it, every business up around the world there's a look at ge but there's gm looking up 3%ew high. >> jim should be packing the dow and take ge out of the dow. >> cash flow was a billion dollars lower. that was a miss on cash flow at gm chuck stevens in morning with phil lebeau on "squawk". >> he was terrific when you look at the companies reporting, you realize why we've gone up so much. i don't know what the -- the treasury secretary said if you're not focused on tax reform, you may be focused on j powell versus whoever. >> the president going after bob corker again, i mention it not because of the back and forth but more because doesn't he know he needs these votes conceivably and attacking tax reform >> look, he could just talk about carson wentz and we could be like, the eagles quarterback and it would be a uniter. >> corker hit the morning shows first and said things like on national security i'd like to see the president leave it to the professionals for a while. he said the president's visits to capitol hill are not really about substance and said the governing mode

the gm versus tesla story is go we talk about.ple who want to call tesla a tech company only, the delivery story is still a relevant topic >> bottom line, we've seen delays all the time historically from tesla, and it's never dented the sentiment in the stock. >> in the long run you have short term moves based on these long term delays. i've been a fan of tesla, don't have any position in it, because it appears the market is focused on these production delays to me, tesla is not just a car company. but until the market starts to value it again as not just a car company, you have to be hands on >> call it the amazon affect check out shares of costco getting crushed today following its earnings report. the cfo talked about the pressure from amazon on the conference call last night >> as relates to, you know, the publicity in the news and the noise around, you know, amazon and whole foods, all we can do is perform when we look at the value proposition, our view is our value proposition got better you know, you read about hope foods h

gm is up 7%. it's been on a tear for a month, partly on the prospects of more sales due to all the cars ruined in hurricanes harvey and irma. for "nightly business i'm bob pisani at the new york stock exchange. >>> with stocks at records, the world's most well-known investor warren buffett thinks conditions are still right to buy stocks. >> in the end, you measure laying out money for an asset in relation to what you're going to get back. and the number one yardstick is u.s. governments. and when you get 230 on the ten-year, i think stocks will do considerably better than that. if i have a choice of the two, i'm going to take stocks at that point. on the other hand, if interest rates were on the ten-year where five or six, you would have a whole different valuation standard for stocks. >> some investors disagree and think things are getting a bit frothy. what should you do? trip miller is partner at goal an capital partners and he joins us to talk about it. trip, welcome, nice to have you here. >>

fleet, and gm has promised that they will make money on them. right now hat the cost of lithium ion per kill watt hour without government incentives it's very, very hard to see how that would be possible but, you know, even if they are break even the sale of electric vehicles even at a loss enables because of the credits you get for them, enables the sale of profitable vehicles like yukon, suburbans and full-sized pickup trucks, f150s in the case of ford and so on. >> yeah. >> as gm emphasized when they made the announcement, don't expect this radical transformation to all electric. >> sure. >> it's going to be a thing that's going to take decades. >> appreciate it bob lutz we're in a little bit of a hurry on this end. thank you very much for your time. >> you're welcome. >> switching gears want to talk to sonos unvoilg a smart speaker called the sonos one. so are you partnering or competing with amazon, alexa and google assistant >> we are partnering in fact, you know, we're partnering with every company that has voice assistance so we're reall

these blue dots tell us gm is trading historically rich. reason it is so interesting to me is the paradigm shift, suggesting that tesla has really changed the dynamic in terms of valuing these automakers at a higher multiple for the electric field called -- electric vehicle possibility. we will have to see whether it works out. to changehe pe dramatically, the point the analyst is making is that something will switch in how investors perceive the company. not something they are going to do better, per se. a rethink or realization. abigail: it is a bit of both. it would be the perception shift. tesla, they do not even come earnings. investors are betting on the future. while gm has the old, traditional business, there is also the idea they could enter into a newer business that deserves the higher multiple. a big perception shift. , thislook at this chart is a year to date chart. down on bottom, we have the likes of bmw, daimler, and volkswagen. right here, we had gm spiking higher, pulling away from the pack. i spoke to kevin tynan. he was

>> so we talked about, you know, i think you can still buy emerging markets, still buy gm gm's valuation, seven times yield. you've got everything you need to buy that stock. the banks, eu financials so ecb is going to meet on thursday eu financials have youth performed u.s. financials by about 12% since march. it tells you what's going on there. the european banks have been totally -- i'll save my profanity, but the ecb has not been nice to european banks. >> here's a would you rather i don't think i've ever uttered this pairing in my life. alphabet or caterpillar. >> google. >> look what you're doing, mel >> there's a very good chance, very good chance we may have put in a double top in alphabet. i think caterpillar, given the amount of stock it traded today, given its valuation, you're asking me today. >> today >> yes, she did. >> alphabet. >> good question to you. alphabet >> i thought all of that was leading towards caterpillar. >> this is basically the question of, industrials right now as growth stocks >> right i think you sell caterpillar if you buy alphabet that's the rotation y

gm to $50 or higher. continue. shery: abigail doolittle, thank you. former equifax ceo richard smith answered questions about them massive database breach. he defended executives who sold stock after the breach occurred. collects all the new at the time was there was suspicious activity. >> it could be a breach, right? it was deemed suspicious activity. we had no idea that the pii was that compromised. we had no idea if data was extricated at that time. shery: joining us now is elizabeth deck summer. the executives who did those shares honorable men. tell us some of the highlights. elizabeth: we learned that echo facts messed up. -- equifax messed up. there were systems in place the companies did not follow in the company was not prepared to deal with the fallout of this massive breach. it's going to be a fame of moving forward as we start to see more policy issues debated to prevent these ranges from andening or improve systems standards in place. the central question is are didn'tules and equifax follow

the rest of the nba gm's picked the wizards to win -- wizards gm ernie couldn't vote for his own team so there's there who believes in the wizards. here's a crazy stat. 93% picked the warriors to win. in second place, the cavs with 7 percent. the wizards didn't make the poll. i have one for the nba gm survey and that's respect. wall is the third best nba passer. he should be number two. that's better than last year. the wizard's guard didn't receive a vote as best passer. he expresses -- but wall received votes as the best point guard in the league, and best basketball iq. last year he wasn't in the conversation. that's why my one is "respect." oh, yeah, john wall voted fasten the nba if that means anything. >> there's no parody in the nba anymore. you think you're going to have these dynasty teams and we're going t wash -- >> did you call them dynasty teams? you called them molecular structures -- who knows what scientific thing i mean. that's why i changed my major from biology to broadcast. >> it sounded good at first. you were dropping some words there. >> yeah. you need to go loo

shares of gm have not been in this area really ever. a relatively young life over the last five or six years. but the multiple expansion would be 15 times. what they are talking about -- that is really big. for carmakers overall, you see the group is trading at 7.2 times. business, thed core business, $146 billion in revenue. -- the possibility that electric vehicles will take off, autonomous writing, ridesharing. who knows? these shares may continue higher. no doubt we will continue to talk about this. coming up, strong earnings reports. we have the charts you cannot miss, next. joe: what did you miss? caterpillar shares surging after strong earnings. caterpillar is one of my favorite companies to watch because it is a great macro bellwether. here is a chart i have shown a couple of times. going back to 2006, caterpillar is the white line versus the blue line, which is the msci emerging markets index. look at the lines. it basically speaks for itself. basically track each other perfectly. caterpillar is in construction, mining, and ind

as demonstrators protesting planned layoffs at a gms auto plant clashed with police. maklumat with the president of the region to discuss the factory kilometers away that has recently had trouble recruiting employees. since i found you do. about any clear they had on the. we've made it so. with. not the first time cool typically considered a master of political communication. words for union. in september of faced with protests against his labour reforms. he said he would not give in to slackers cynics and extremists. these comments were met with outrage across france in further fueled his. president of the rich. we'll deal to de today they're telling us you who work for gms well you'll have nothing euro bunch of slackers. all you have to do is go work in a factory that's hundreds of kilometers away. in addition. it was not north appreciate. his comments are totally inappropriate completely uncalled for and directed employees like myself who lost their jobs. the head of statate has no business speaking that way. doesn't have the right to use those kinds of words. but

> right now gm shares had their best week in five years. but there's something in the charts that suggests now might be the time to tap the brakes. we'll explain. >>> and -- so just how low can the vix go the answer might surprise you.

the market's willingness, they say, to suddenly reconsider gm's position supports the notion that gm's problem was one of perception not foumtales. >> it definitely was a problem of perception. we've been on this show probably this same lineup can i recall about two quarters ago they had a blowout earnings call josh, you and i spoke about it and you said, jimmy, look, the stock is deteriorating after it popped higher. it was absolutely perception and sentiment, but, you know what. that's where the opportunity is. the stock was trading at six times earnings a few months ago. to me that's an asymmetric risk to the upside. people were seeing peak autos and what's it's going to earn in a recession. >> i'm as guilty as anybody. >> look, it's a market they were sellers and buyers. >> throwing more shade than love towards a name that's clearly done well. >> here's why i like a stock at six times earning and 4ment 5% dividend yield which is what it was then i seat risk asymmetrically to the upside yes. we could have a recession at any point in time and the citi analyst thinks he sees a path to

gm's self driving plans have given the automaker a boost, up 45% over the year.loomberg tax emily chang joins us from the wj sd live conference. emily: i am here with g.m. president dan ammann. thank you for joining us. dan: thank you. you are releasing another fleet of self driving cars in new york city. why? was a reallycisco complex environment and we are doing really well there so it is time to go to the next more complex environment, new york city. the more complex the environment, the faster our cars learn. emily: you have 180 cars or so? up. we are ramping how fast you think you will get this from testing to scale? dan: everything we are doing is about getting the vehicles from the right performance from a safety perspective. then we will be able to take the driver out. emily: how profitable do you think a self driving riot hailing business can be for -- ride hailing business can be for gm? dan: we think it can be a big business over time. right sharing is just at the beginning of what we see as a big transformation. emily: what kind of margins do you thin

earlier, gm is about to take out the 2013 high. >> i think gm came in as being one of the lowest stocksf the year i think people are saying, wait a second, this is not the gm we thought it was it's adopting quickly. one of the biggest winners this quarter was a lithium battery company. electric car, autonomous vehicle big theme. people believe it and say, let's buy. >> watch gm today as we we're back in just a moment. directv has been rated #1 in customer satisfaction over cable for 17 years running. but some people still like cable. just like some people like banging their head on a low ceiling. drinking spoiled milk. camping in poison ivy. getting a papercut. and having their arm trapped in a vending machine. but for everyone else, there's directv. for #1 rated customer satisfaction over cable switch to directv. call 1-800-directv. >>> what's on mad tonight? >> i was all fired up yesterday going over stuff obviously, you don't feel it a company changed the board last week we're going to give it all we got. that will do it. >> we appreciate that. see you tonight on mad money 6:00 p.m.

compensation for injuries or death associated with the defect through class a settlements and a fund gm established back then. >> susan hogan in the newsroom. susan, thank you. >> students take to the streets by the hundreds today as the organizer of the march that led to violence in charlottesville takes his message to another college campus. the tense scene tonight from the university of florida. >> also ahead, the contentious exchange between a judge and the father who beat his infant son to death because he couldn't take his crying. >> and the surprising results in a test on the reliability of new model cars. >> beautiful across the area again today. temperatures in the 70s. right now we go up over the next couple of days before we come back down to normal as we head ralpand as a doctor, nobody ever asked they just want my help. so if donald trump is helping virginia i'll work with him. but donald trump proposed cutting virginia's school funding, rolling back our clean air and water protections, and taking away health care from thousands of virginians. as a candidate for governor, i

and i have gm to thank for that. >> they determined it was cheaper for them to pay off a few people thanigure out what was going on. >> in addition to today's settlement gm paid out more than $500 million to victims and families. >>> today was the deadline for cities across the country to apply to be the future home of amazon's second het quarters. philly's not inonly city in our area vying for the prime position. at least 80 other cities and regions vying for the company to pick them. and $5 billion of infrastructure investment. but as seattle knows having an amazon headquarters in your backyard can cause a fair share of problems as well. traffic and housing prices can surge dramatically. this week more than 75 civil organizations wrote an open letter to amazon demanding the company pay a company tax and sales tax in the city it chooses. >> there's a down side to getting amazon in a community. at the end of the day this is slam dunk positive, trance mor tagsal. >> amazon plans tew nounce its decision next year. >>> in south jersey today governor christy and others broke ground at the he

now the gm john wall is the third -- to me, he should be number two. he finished second in the league in assist last season, but that's better than last year. my word is respect. the guard didn't receive a votee 's best passer rating. wall expresses disappointment saying a guy who finishes top two in assist can't pass. he received best basketball iq. last year he wasn't in the conversation, that's why my one is "respect" john wall finally got it. >> second best point guard in the world. that's stefan curry. >> tower one is goodbye. see y. sweet 4k tv, mr. peterson. thanks. pretty psyched. did you get fios too? no. mr. peterson, fios is a 100% fiber optic-network. what does that mean? think about it. if you got an awesome new car you'd put the best gas in it, right. so why hook up your awesome technology to anything other than a fiber-optic network? i got to go. peterson. peterson's wife. counting on you guys. your internet deserves the 100% fiber-optic network. and now get our fastest internet ever plus tv and phone for just $79