the phrma back in court today. will his case bring more scrutiny to drug companies? member tell is at the courthouse. plus, lights out for utilities. but a strange deal in the chart suggests now could be the time to buy. we'll explain why when "fast money" returns. mpany data hog. i do the sales, the marketing. i have to do that from my phone. we use tons of data. i really don't have to worry about it 'cause everything is unlimited. i need data and i need it now. it's the end of data limits for your business. get unlimited 4g lte data as low as $30 bucks per line. switch your business to t-mobile @work. perfect driving record. until one of you clips a food truck. then your rates go through the roof. perfect. ♪ for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you twenty-four seven. call for a free quote today. liberty stands with you™. liberty mutual insurance. >>> welcome back to "fast money." we've got a developing story as thein fahouse

closing the day down almost 2%. big phrma got whacked too. so could the stock be a bargain now? meg tirrell has more on this. >> biotech investors hope people think it's a bargain now. if you check out health care for the year, it's been a really tough one. you can see the ibb down 23%. for the year. october was particularly bad, as well, biotech losing 14% for october. as we saw, things like ariad getting a letter from the government over its leukemia drug, epipen still getting scrutiny. of course is the scrutiny over drug prices? we saw the pain in amgen and embril and insulin prices in the united nations. that hurting biotech. the coming election also scaring biotech investors. this fear of a potential democratic sweep. the news today with hillary clinton maybe making that slightly less likely to happen. of course, california's prop 61 also a big topic. drug industry investors focusing on that would sort of mandate some drug rebates in that state. people in the industry really, really not liking that one. if you check out pe multiples historically for biotech, they crossed ov

the volatilities are elevated. that doesn't mean -- >> are there going to be any big cap phrma mergers? do we see some of the big guys come together? i know that was a thing last year. >> they don't just -- >> none of that. >> but what destruction? that's the point. first bristol and today amgen. mckesson. at some point, you reach a cathartic selling. i think you're kind of there. >> i get that on a technical basis. but, mike, why not wait until -- wait 11 days and then put a trade on and see what happens. >> i don't think -- first of all, if something -- if something -- if today's news changes things, that's probably going to be better for this group. i don't think it does. i really think what happened today is going to be -- is going to be blown over by this time next week. >> got a question, send us a tweet to@options action. and check out our website. you'll find our latest trade and videos. and check out our super cool newsletter. what are you waiting for? here's what's coming up next. >>> here's what's been happening to shares of twitter. >> no! >> we've got a way to get long share

the last four days. same hillary factor. phrma same deal. these are the sectors that aren't going to have heavy headwind after she gets in or he gets in because they're not going to be able to implement the any of these things. they will be gridlocked again and then i think the sectors will perform. >> and we'll talk more about phrma coming up a bit. ian, good to have you here. you're pretty negative on the near term? >> i'm pretty negative. and as far as tech, what i didn't hear is these mergers and acquisitions starting to fall apart a little bit. i think that's a big deal. i think a lot of people were in the semis for m&a. twitter is having a hard time being done. yahoo! may be renegotiated. so i think a lot of people have been hiding out expect m&a and that's not happening. >> shy go back ould i go back t interview of morgan stanley saying that tech is poised and primed to be great for m&a in the months ahead. >> sounds like a guy talking his own book. >> he could have listed a number of different sectors and the fact of the matter is he

. >> and another if you are more conservative when you really look at the big-time, the big phrma names these days, they have become a biotech play as well. you look at the acquisitions over the years and it really makes sense. i know bristol-myers has traded way off of where they were. when you look at something like that, they are really just a big biotech disguised right now as a phrma company. and i think you're seeing more and more out of the lilys and merck. >> a surprising group of under the radar stocks soaring this year. what they are and if there is still time to get in. plus rates on the rise crushing high-yielding stocks, but there are four names surviving the bloodbath. we have the names and the trades later this hour. >>> and new reports of a what's supposed to be replacement samsung phone. catching fire. are samsung's problems even bigger than we think? those details later on. what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? t

valuation that they get. >> but -- i would just -- just on johnson & johnson, quickly, the disappointment is not in phrmaevices, in the consumer side of the business. >>dom, thanks again. goodbye, i think. why would it surprise you? he's always there. what's the big deal here? >>> are any of these stocks worth a buy? what does it mean for the overall market? let's go to the chart master, carter braxton worth. >> i wanted to put the context of j & j in what we just heard. the consumer side is the issue. dom used the phrase rolling over. i want to look at what you would call growth names. but they're old growth names. or growth names whose growth is in question. so i have three columns. one month, two month, three month. not so much about the individual performance. it's about the group's performance. and then the fourth column, the five-year. so just look at the names first. costco, home depot, j & j, lowe's, mcdonald's. these are mega cap names. and it keeps going. nike, phillip morris, starbucks. so, some of the biggest and brightest of all-time. cost costco, home dooep, j & j. it's about the group. so

's really going to be driven by the health care providers and phrma. d when you look at why that is, we have a larger insured population thanks to the affordabact. we also have an aging u.s. population those are two of the reaches you're seeing those names come to the forefront now and within consumer discretion autos had a great run, ford is really killing that in the third quarter, because they are expecting year over year declines. so i would be looking at the internet retailers, auto components, as well as household durables. christine, thank you. christe short our guest with estimatize> the decline in the oil may played a role in the stock m decline. crude off more than 1%, but did stay above $50 a barrel and that may be because of skepticism around a possible deal that cut production. words, that little slide there today. steve sedgewick reports tonight from a major meeting of oil exporters in istanbu >> reporte another fascinating day at the world of energy congress tuesday. a whole host of contributions, sending oil price one way and the other,

so you have to be careful of the big banks. certainly phrma will take on higher -- anyone exposed to a much higher drug price is going to be -- that is going to be tricky. but generally, you're looking at a reasonable dollar that the ten-year yield contains and a more buoyant equity market. >> the what do you think about the market? >> well, i think we have to watch the market reaction. but if we get the status quo response, it will take fed rate hikes which are pretty high for december up to the 80s right now and even further. it will make it a slam dunk. the market you may feel has incremental headwind from that as well. >> michael pervis, thank you. >>> oil prices this morning are losing a little bit of ground after a soft week last week with four negative days out of trading. let's go to steve sedgwick now with more. >>> i spoke to the oil minister in istanbul at the energy congress meeting, and this is part of a process. i think people are hanging too much on one meeting. there's a whole process of building up to the opec meeting at the e

it's not a surprise in hindsight that health care -- especially with the problems we have seen across specialty phrmathink you know what you're getting when you buy a biotech stock. the risk is commensurate with the reward. once again, not putting the quote, unquote, 401(k) into the whole thing. i think the reward is commensurate with that risk. >> when you talk about it, how binary the risk is, right? so when you look at the ibb, you know your charts better than anybody. i look it at the 50-day at 290, the 100-day at 279. every dip around that level on the 100-day has been bought and every rally into that resistance level has been sold. isn't it better to just play for $11 in the ibb instead of worrying about the granularity of a lot of the bio names? >> i don't have a problem playing the etfs coming from a guy who does research on individual companies. that's a safer way to play it. once again, if you want to get the bang for your buck, the individual companies are going to be the way to play it. but obviously, then you bring in that prospect of the company's specific risk, which could take you mea

the bait is important. >> i would say this about phrma and biotech. ey're going to rally, no matter what. >> really? >> i think there is so much bad news that are priced into them. i don't think hillary clinton is the lefty democrat that a lot of people think she is. >> the buying opportunity now. >> i think you see how they act at the end of the year. i think it could be a sort of dogs of the dow sort of thing. >> don't forget, you can watch the entire third and final presidential debate between hillary clinton and donald trump right here on cnbc. no need to turn the channel. tonight, 9:00 p.m. eastern. >>> next, "final trade." stay tuned. [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motiva

and the other thing i'm going to tell you right now, i think no matter what happens, i think large cap phrma and biotech stocks go up. they have been so beaten up -- >> are going to go up. >> so to you. >> let's say a clinton victory. >> yeah. >> i think it could be messy for a little bit. and then i think this is going to set up pfizer and saw big paper in there today. >> giddyup. >> do you think america is going to let her get away -- >> what's the thesis? dan. what's the thesis? >> listen, the thesis is pretty simple. there's a lot of bad news in the stocks. and if you look at the dogs of the dow sort of situation, look at some of the yields, and how bristol has been beaten up. look at pfizer. i think you're probably going to see some combinations in 2017. people get bullish into the year, into the start of the year. and then look at the xpi, the biotech business, gone from 70 to 56 in the last month and a half or so. and i think that thing pops too. >> you know, i have to say, we're hearing on all those conference calls talk about drug pricing pressures. we heard from the group on friday