Skip to main content

tv   Fast Money  CNBC  August 15, 2019 5:00pm-6:00pm EDT

5:00 pm
report, any additional color on the impact on the trade war on farmers and guidance last quarter deere slashed its projections. back to you. >> rahel solomon, thank you for that we closed higher on the s&p 500 by a quarter of 1% we are out of time thank you for watching "closing bell." >> "fast money" when begins right now. ♪ it sure does live from the nasdaq market site overlooking new york city's times square, this is "fast money" i'm tyler matheson in tonight for melissa lee. traders on the desk are pete najarian, karen finerman, dan nathan, guy adami. a roller coaster. >> i hate that. >> tyler, we had a whole conversation. >> some would call it a roller coaster ride on wall street as stocks bounced between gains and losses throughout the session. we will find out what is driving all of the volatility. also, whose hand is that coming in there look at that. >> creepy. >> also ahead, shares of nvidia and applied materials, both on
5:01 pm
the move after reporting results. noti those conference calls kicking off. that one, bige fraud than enron. allegations about the company, ge, having its worst day in more than a decade after a whistleblower, a high-profile one, called it bigger than enron fraud wise we will have the full fall-out we begin with the topsy-turvy thursday for your money, wild market swings on wall street she is down, she is up, she is down, she is up. many investors left with their heads spinning falling yields china headlines, consumer data, all driving big moves. how should investors navigate all of the volatility? guy, i will start with you it has been a week where we begin with 10% tariffs coming in, market goes down the president then says, well, i'm going to postpone for some, the market goes up yesterday the yield curve goes negative today back up. >> first of all -- >> how do you deal with in >> great to have you on board? >> nice to be back.
5:02 pm
>> the cheapest thing you can do, tyler, you weren't here a week or so ago but pedro was sitting on the hook. he said something that resonated with me. >> resonated. >> and you said, you're going to see volatility within volatility i sort of scratched my head but it makes sense you saw it today market is up 100 points. big deal well, probably had an 800 points up, down, up, down during the day. there were huge swings to answer your questions, if you don't like it that's a problem because i think volatility is here to stay for the foreseeable future the vix closed at 22 i think it is going to push towards 30 that's where it's crescendoed the last two times the market bottomed out i think we'll continue to see it what will happen over the next couple of weeks is we have the side ways move that trend lower. that's where we're headed in my opinion, tyler. >> i get the idea, karen, if you are a trader and you like volatility because you can identify certain things that might give you a target of opportunity and move in, that's one thing. if you are a long-term investor. >> right. >> following headlines, watching the tweets and every little
5:03 pm
twitch and twitter of the market, that can be a dangerous thing to do, right >> no doubt. it is a recipe for disaster. the idea that you will be able to come in at the bottom and buy, right and then you will know when the market is topped out and you will sell and do it really efficiently over and over, that's just not possible so if you know -- i mean, you know, there's pete who is on one end of the spectrum, you talked about, trading, trading all the time i'm very much a long-term investor so i generally like these pretty volatile markets when stocks trade down because that tells me something else is going on. >> you can get a bargain. >> however, lately i have been very concerned it is worse than just some movement in the market, that there's something -- >> what tells you that >> i think that -- the bond move today, that concerns me. >> down below 150. >> to me the biggest thing is the tariff uncertainty it creates uncertainty, which causes people to -- not consumers yet, but ceos to pull back that i think causes spending to decline and that ends up being a bad thing.
5:04 pm
>> pete, how have you been playing the volatility within the volatility what have you been doing this week >> i think you do use opportunities. karen mentioned some of what i do, some of the trading, but some of the trading is for long term i will give you a great example. when we see the big pushes to the down side and see the volatility that absolutely skyrockets, august 1st we were 1380 by august 5th we were over 24. now we are trading at 22 on the volatility index today they bought 150,000 vix calls going out into august at the 26 strike. so volatility looks like it wants to hang around, to your point, guy, and volatility within volatility is volatility. i mean it is just crazy. so there are opportunities you sell off on a stock that i think has a better value than where it is sold down to, but if i'm buying that stock and now i have an implied volatility that gives me room to be able to sell a call that normally trades at a dollar or two that's now trading close to double that, if you look at what has happened with the vix, it gives you more protection to the down side and gives you that much more room to the upside if you are buying stocks and selling calls against
5:05 pm
it so i think there are great opportunities out there, tyler matter of fact, volumes have been absolutely outrageous in august we are 5 million per day over the average year-to-date in terms of options volume right now. >> and it is august. >> yes, august, which everybody says, hey, everybody is on vacation, everybody is this and that. >> stuff happens in august though. >> yes. >> every year stuff happens in august. >> it has been very interesting. >> this august we had three of the biggest percentage, daily moves in the last couple of weeks, of the entire year. i think what is interesting in q4 we got used to 2%, 3% moves and the major averages intraday. it was a different situation i think it is kind of what you were talking about karen you were kind of a little nervous last november for a lot of the same reasons. here now a lot of the reasons are coming up again. i will just mention this over the last year and a half or so we've had three incremental new highs from the january 2018 high, but we had some quick pullbacks. we had two 7% one, one 12% and a 20% in q4 of 2018.
5:06 pm
if you're an investor it gives you opportunities to lay into some of your best positions. if it happens right after earnings season where we get a lot of single stock gaps, it gives you the opportunity -- i will give you examples in the last couple of weeks google, alphabet, a name you own, it had a 10% gap last month after earnings, and then it came in and filled the entire gap if you liked that back then and you were long it then and you liked it when it was up 10% after earnings and now it has filled in the gap, then you should like it just as much right here unless something fundamentally has changed, and it gives you the opportunity to kind of dollar cost average into positions. that's the one thing this market has given you over the last 19 months for things that you really like to kind of reload and pull back. >> by the way, tyler, i will add one more thing to the conversation you said how much of a move we had today. we had as big a move in the premarket, before we opened we moved over 800 points if you add we were up, we were down, we came back up again, we pulled back i mean the moves just in the premarket, that was 800 points worth of movement before the day started. >> yes. >> i mean it gives you a little
5:07 pm
idea, tyler, something we talk about all the time, algorithms, whether it is the upside or down side, we are seeing computers absolutely driving the markets right now. >> they control it. >> absolutely they do. >> before i turn back to guy, what have you been doing with your unease? >> well, i haven't -- usually buy into markets like this i haven't. i am always long protection. i have been scared but selling it because i do think -- i hear you, volatility absolutely could go higher, but these are the kind of markets that you buy protection for. >> yes. >> 2 1/2 weeks ago, 3 weeks ago the vix was 12 and change. you could buy putts there. now at 20, it hit close to 24 the other day, 22, 23 yesterday. it you have to sell. >> let's take a break and talk more about the wild swings in the market and whether they're the new reality or novelty it doesn't mean however that you can't find a way to put your money efficiently and our next guest has three ways to play the uncertainty. we will be talking about it. let's go to the charts with fund
5:08 pm
strats rob sluymer. >> thanks. a tremendous amount of uncertainty as everyone is talking about. the market is volatile, we had a lot of damage happening, a lot of bad-looking charts in a short period of time the levels will matter over the next few days as the market comes down and retests the key levels let's talk about a few of them we have the low here that's 2822 that the market needs to hold on this pullback and we're coming right down to those levels that's going to be really critical here the next couple of days you have a 200-day moving average working its way through here that level is around 2794, pardon me, and that will be critical for folks to focus on but i think the one that will be incredibly important are these two lows, the june low and the may low. so if guy is right, we will get a spike in volatility. we will probably see the market move down to the 27 -- i believe that's 2728 i think is the low, and that will be really critical as well. watch those levels the key upside level here is
5:09 pm
around 2943. let's step back and take a look at where that plays in a bigger picture in the bigger market cycle. we have talked about this many times. we think that the lows in 2016 off that 200-week or four-year moving average is an important cycle low. we thought the same thing here coming off the lows in december. so far it has been a decent call now we are seeing all of this data unwind. here is what is interesting. in 2016 right in august we saw another peak and this momentum indicator barely rallied halfway up the range and it failed that's exactly what we are seeing here. as we move fthrough the uncertainty, we have brexit and other issues to face, we have a similar pattern going into the balance of q3 where i think we get a lot of churn the correction obviously went into the election and we got the 6% drop towards the end of the move we already have that in place. again, these levels, that 2822 and 2728, are going to be very, very important i think the market is going to hold at those levels now, how do you play it? lots of uncertainty.
5:10 pm
do you want to be long cyclicals? do you want to be long defensive or do you want a hybrid? we've been fans of the semi conductors all the way through and now they're dumbing docomina critical level this level right here is 114 i think this level right here is 107. that will be really important support, and it needs to hold. if it doesn't hold that it is sort of on its way down to the 97, 98 pardon me on the writing there key levels i like it as a long right here it is very high risk it is not for everybody. if you don't like the cyclicals in the market you don't want to play it, but for traders very tight stops. it is an interesting trade i continue to like semi conductors into the year-end on the other side let's look at the defensive side, because i think what is happening with gold is really interesting it had a move. we had this move out of this trading range, somewhere around 25, i think this level up here is around 30, 31 it has had a bit of a bounce. >> rob, i'm going to interrupt you if i might because -- i
5:11 pm
guess -- come on back. >> just bring him over. >> the president is making some comments that bear upon the china trade situation and more so let's go down to washington. >> retail numbers were announced today which really is a great indicator how well our country is doing, how well our economy is doing those are real numbers that walmart announced, others announced. we had tremendous numbers come out today which i'm sure you saw, so we're very happy about that we're doing very well. the economy is incredible. the consumer probably above all else, the consumer is doing incredibly so go ahead. any questions? >> [ inaudible ] question ]. >> think we are going to have a very long period of wealth and success. other countries are doing very poorly as you know, china is doing very, very poorly. the tariffs have really bitten into china they haven't bitten into us at all, except for the reporters that want to make it look that way but they don't understand what is happening.
5:12 pm
the tariffs, we have taken in close to $60 billion in tariff money and the consumer has not paid for it. at some point they may have to pay something, but they understand that. and who really understands that is our great farmer. the farmers of this country really understand that they know we had to do something about china, and we're doing something about china. with that being said, i think we're having very good discussions with china they very much want to make a deal we will see what happens we had a deal and they decided not to make it now i think they would like to have had that opportunity again because i think they really would -- i think they really missed a great opportunity i think they feel that they missed a great opportunity but china very much wants to make a deal. we are talking to them we will see what happens yes? >> but why did you feel the need to get involved in the two congress women's trips to israel >> i'm only involved from the standpoint of they are very anti-jewish and they're very anti-israel. i think it is disgraceful the things they've said.
5:13 pm
you have lists of -- this isn't just a one-line mistake. what they've said about israel and jewish people is a horrible thing, and they've become the face of the democrat party so i did absolutely put out a very strong statement. i think if you look at their language, if you look at what they've said, if i ever said it, it would be -- it would be horrible it would be a horrible month to put it mildly. so the things that they've said, omar, talib, what they've said is disgraceful so i can't imagine why israel would let them in. but if they want to let them in, they can, but i can't imagine why they would do it. >> are you worried a prolonged trade war with china will pitch the economy into a recession >> no, i think the longer the trade war goes on the weaker china gets and the stronger we get. we are taking in massive amounts of money, billions and billions of dollars, steve, as you know i think the longest it goes the stronger we get. i have a feeling it is going to
5:14 pm
go fairly short. i think it will be -- china lost millions of jobs you saw that reported today. thousands of companies are closing in china, and i don't know, you know, maybe they want to do this for a year. they would love to have somebody like biden who doesn't know what he's doing i mean i just put a clip where he said, oh, we want to build up china, we want to build up china. well, they gave us a very strong china. china has taken out over $500 billion a year for many years from our country, and that's not going to happen anymore. >> how concerned are you -- let me follow up sorry. >> okay. >> how concerned are you about a violent crackdown by the chinese in hong kong >> i am concerned. i wouldn't want to see a violent crackdown. i put a little bit of a memo out last night these men i like a lot, i get along with them very well, president xi i said that i would be willing to bet if he sat down with the protesters, a group of representative protesters, i bet he would work it out in 15 minutes i bet he would work it out very quickly. i know it is not the kind of
5:15 pm
thing he does, but i think it wouldn't be a bad idea i really believe if he sat down. they have a certain little leadership pool. if he sat down with the leadership pool, i bet he would work things out really quickly it seems things could be worked out easily. >> did you say anything to congressman netanyahu about the congress women >> i think my social media statement pretty well speaks for itself i feel that they are so anti-israel, so anti-jewish, again, if other people made that statement there would have been hell to pay. but i did speak to people over there, yeah. >> reporter: sir china said that they want to retaliate, that they're going to retaliate because of the tariffs increase you announced what is your response to that? >> well, if they did retaliate, which i don't think they will do because we're talking to them and they're offering things that are very good, i don't think they'll retaliate. but if they did, we have the ultimate form of retaliation i think they would have very few jobs left in china because we
5:16 pm
would be able to step it up. just so you understand, i have been very mild about it. very, very mild. there's a long way i can go. somebody had to take on what was happening with china we can't allow china to take out of our country $507 billion every year, not including intellectual property theft and so many other things so we're having very good talks with china i think things will happen, but we'll see. >> reporter: if they do retaliate, will you want your team to meet with them in september as planned or no >> look, september, the meeting is still on as i understand it but i think more importantly than september, we're talking by phone and we're having very productive talks they would like to do something. i will tell you that the talk we had a few days ago with my two representatives, nobody knew what was on that talk except for myself, china and those two people, that was a very good conversation. >> reporter: do you want jay powell to cut interest rates
5:17 pm
tomorrow >> jay powell should be cutting rates because every country all over the world is cutting and we want to stay sort of even. i don't mind if we're higher we are better, we are a better credit, but we are way too high. jay powell made a big mistake. he raised them too fast and he also quantitative tightened. he did quantitative tightening it was a big mistake $50 billion a month, and it put us in a position interestingly, even with normalized interest rates, president obama was paying nothing and we have a much better economy you have to look at our economy also from the day after my election because we picked up tremendous steam the day after the election that's not attributable to president obama. they only did that because of us when somebody says from january 20th, it is not from january 20th it is from november 9th, the day after the election we picked up the fact that i won lifted our economy greatly. and if i didn't win, it would go
5:18 pm
down frankly, if for some reason that happened in the 2020 election you will see this economy go down the tubes i will tell you that right now. >> what are you -- >> reporter: mr. president, do you have any idea on when china is going to follow through on their ag purchases and crack down on fentanyl >> they want to follow through very quickly this was part of the conversation that we had they had a special representative actually come over and talk to us, a different group, and a message to me, a very strong message to me. they want to start doing that very quickly i will be honest i'm not there yet. >> reporter: did you tell israel -- >> it is not china i'm not there yet. we will see what happens i do want to -- i would really like to see china in a humane way solve the problem in hong kong, humanely solve the problem in hong kong, and i think they could do it very quickly i said yesterday i really have a lot of confidence in president xi i know that if he sat down with their representatives, i have no
5:19 pm
doubt he would solve the problem quickly. >> reporter: in your conversations with people connected with israel, did you encourage them to reject the congress women -- >> no, i don't encourage or discourage i think if israel allowed them to come in for the normal reasons, other than those reasons, i really believe it would be a terrible thing for israel i think it would show a terrible sign they want to do boycotts they said horrible things about jewish people. they said horrible things about israel and israelis. i think it would be a terrible thing frankly for israel to let these two people who speak so badly about israel come in, and they have become amazingly the face of the democrats. the democrats don't want to do anything to condemn them if they were -- if this were ten years ago or if they were maybe a different time or different people or whatever, they would be condemned for the things they've said they've said some of the worst
5:20 pm
things i have ever heard said about israel so how can israel say, oh, welcome? i don't think it would be a good thing for israel. >> reporter: mr. president, do you think that steve king needs to resign? >> i don't know the situation with steve king. it looked like i read a statement that supposedly he made i haven't been briefed on it, but certainly it wasn't a very good statement >> reporter: so you're going to go to the g7 pretty soon, and i think you will meet with boris johnson. are you going to have some sort of declaration about the intent to seal a trade deal with him, with britain >> so we are dealing with the uk on trade and a trade deal. we will have a great deal made i have been dealing with boris johnson. i just spoke to him yesterday. i will speak to him again. he and i are very much aligned we feel very good about each other. i think we will make a fantastic and big trade deal with the uk actually, we should do much more business than we're doing with the uk you know, it is a -- they're probably -- i don't want to say our closest because i don't want
5:21 pm
to insult other people, but certainly -- or countries, but certainly they're one of our closest allies anywhere in the world. we will have a fantastic relationship with uk and we're going to have a great trade deal with uk, and that is moving along rapidly. >> any other goals for the g7, sir? >> i think just relationship we will see what happens we have a lot of things to discuss. a lot of things to discuss. >> reporter: whcorey going to announce tonight >> i don't know. corey lewendowski would be terrific if he ran i don't know that he's going to run. i spoke to him about it a week ago. frankly i think it is something he would like to do, but i don't know that he's going to do it. i think he would be very good. he loves new hampshire, he loves our country. if he did, he would be-fr very formidable [ inaudible question ]. >> we are going to look at that closely and we will look at the whole gun situation. i want people to remember the words mental illness
5:22 pm
these people a mentally ill and nobody talks about that. these are mentally ill people. people have to start thinking about it i think we have to start building institutions again because, you know, if you look at the '60s and '70s, so many of these institutions were closed and the people were just allowed to go on to the streets. that was a terrible thing for our country. they closed them, cities couldn't afford them, and they closed them. i mean i can tell you in new york they closed a lot of them and the people went out, they went out on to the streets and it is a terrible thing but a lot of our conversation has to do with the fact that we have to open up institutions we can't let these people be on the streets. so we have a tremendous crowd in new hampshire. it is all over the place, everybody saying wow our competitor has virtually no crowd. i don't know what that means i assume that's a poll of some kind but i think we will do very well in new hampshire new hampshire should have been won last time except we had a
5:23 pm
lot of people come in at the last moment, which was a rather strange situation. thousands and thousands of people coming in from locations unknown, but i know where their location was. >> reporter: where >> but i think we're going to have a tremendous success in new hampshire. these are great people, and the relationship is very good. [ inaudible question ]. >> we are looking at it. i think he was harshly sentenced. we're looking at it very strongly people feel strongly about it. i floated it and i wanted to see where the democrats stood, where the republicans stood. people feel very strongly about rob blagojevich and his sentence he has been in there 7 1/2 years, that's a long time. what he did was terrible, but it is a long time it is a long time. >> reporter: are you pushing mitch mcconnell on background ek charges? >> i have been dealing with mitch mcconnell. he is a man who we have had
5:24 pm
tremendous success with judges and judicial appointments. we are going to be up to 179 federal judges within the next two months nobody would have believed that's possible, and that was because president obama was unable to get 'em completed. so i inherited about 138 empty seats. nobody can believe it. and we will have them almost all filled with tremendous judges and tremendously talented, smart people they will be filled within two months so i'll have 179 judges and two supreme court justices that's somebody that nobody would ever have thought possible. >> background checks on -- >> i want to thank very much president obama for that. >> reporter: i was asking about background check for gun owners for gun purchases? >> yes, we do. i have been speaking to mitch about it, speaking to everybody about it we don't want to see crazy people owning guns, but i always want to remember that mental illness something nobody wants to talk about. these people are mentally ill
5:25 pm
and we have to study that also because, you know, it is them. they pull the trigger. the gun doesn't pull the trigger, they pull the trigger so we have to look very seriously at mental illness, and we are doing that, at a level that hasn't been done before. >> reporter: are there other republicans you are speaking with besides the senate majority leader and pat toomey? is there anyone else you are speaking to? i am speaking to many republicans and it has been an amazing experience they want to see something happen and basically it is very simple they don't want to have insane people, dangerous people, really bad people having guns republicans agree with me on that i think, you know, i would say uniformly. >> do you think it will be easy to do when the senate comes back >> i am afraid if we cake up with a good bill, i think the democrats might up it and then do things that can't be done and the public wouldn't want done. i hope it wouldn't happen but it has happened in the past
5:26 pm
you understand. >> reporter: do you support universal background checks? >> i support strong, meaningful background checks, where people that should not have guns, people that are insane, people that are mentally ill, people that are bad, bad people like this guy in philadelphia who has been arrested numerous times, he's a bad guy where people like that would not have guns. frankly, people like that should be locked up he shouldn't have even been on the streets. thank you. thank you. thank you very much. >> reporter: did you speak directly with president xi in china? >> i will speak to him we have a call scheduled soon, president xi we will be speaking to him really soon. i believe he can work it out i know him well. if he wants to, he can work it out in a humane fashion. he can work something that everybody is happy. >> reporter: when are you going to meet him? >> thank you and the president there leaving morristown, new jersey, for a campaign event, a rally in new hampshire later this evening, taking a lot of
5:27 pm
questions, many of which bear on trade, on the situation in hong kong for a wrap-up let's go to kayla tausche in washington. lots of news on trade, none of it i think, kayla, anything he had not in one way or another said before. >> reporter: that last bit, tyler, that he saved for last is perhaps the newsyest bit of the entire event right there he said he has a call scheduled with president xi of china and that they will speak soon. there was an expectation that perhaps some of the free traders within the white house had been pushing president trump to speak with president xi before the september 1st tariff deadline to at least try to work out another truce or figure out if they could keep this situation from escalating there had been a question over whether that would, in fact, happen, whether president trump was even on board with that idea but right there he just confirmed that he plans to speak with china's president very soon he addressed the situation in hong kong. he said, again, that he hopes china solves that in a humane
5:28 pm
way, but on the trade front he gave a lot of headlines there. he said that he hopes china follows through on its agricultural purchases very quickly. he said they're having productive talks, and he says that the u.s. is offering them some things that are very good he didn't elaborate on exactly what those very good things are, tyler, but we know there's a deadline on monday for the u.s. to perhaps extend some licenses for huawei to continue doing business with u.s. companies we will wait and see if that's exactly what he is mentioning there. >> he certainly comes back to the idea that china is bearing the brunt of the trade fight he also mentioned at one point, i think, kayla, there may come a time where u.s. consumers will have to shoulder some of the burden, which is a departure from some of his previous rhetoric if i'm not mistaken. >> reporter: it is a departure it is something that several white house officials have been forced to acknowledge in recent days with the decision to shelve a little more than half of the tariffs that the president
5:29 pm
announced in a surprise way earlier this month, acknowledging that they didn't want to ruin christmas, they didn't want to impact holiday spending but even the president there saying that he doesn't want consumers to have to pay at all. >> all right kayla tausche in washington for us thank you very much. folks, let's kick it around the table here as karen pointed out, the president spoke for about 15 minutes, a time period that he said if xi jumped in he could have solved the problem in hong kong. >> problem solved. >> yes, problem solved but he's clearly making some linkage between what is going on in hong kong and the trade conversations, because if one goes badly south the other is likely to follow. >> i don't know that xi feels like they need to be linked. i don't know but i think it doesn't help the president's out there every day, china wants to do a deal, china wants to do a deal, china wants to do a deal i don't really care. he clearly does. every time the market is weak he says something positive on china. i think it should have less and
5:30 pm
less effect every time he does it instead of tweeting about how jay powell is the problem, trade is the problem. >> it is clear he is negotiating himself right now because the chinese don't say a heck of a lot other than pointed statements, and i think it is really important you know, when you think about what is the concessions to be made for huawei, this is why we're in the trade fight there was a great interview on "squawk and friends" this morning with tom friedman where we talked about it what are we focused on china's access to the markets. we are focused on i.t. theft and force it technology transfer if you are going to go and give up the golden goose, which is huawei, which is what the fight is about going forward, and pull back on the tariffs which are the things that are actually the enforcement mechanism of a trade deal, it tells you we are going nowhere fast he is so focused on the bilateral trade surplus and the idea that the chinese would buy more ag products, it is really the wrong discussion here. it leads me to believe that if they're going to litigate this by tweet, it is not going to go
5:31 pm
well it is going to go on until the election year and it doesn't get better from here. >> guy, any thoughts here? >> i do have a lot of thoughts i mean this started in march of 2018 we are basically in august of 2019 i said this for a long time. i will say it again. i don't think we're any closer to a deal today than we were six months ago we might be further away from a deal, but that's neither here nor there. the chinese in their mind, they made a deal decades ago and that's the deal they're trying to adhere to to dan's point, it feels as if we're negotiating against ourselves. karen says it. every time the market goes down you will get a tweet if you are the chinese -- >> a tweet that says things are getting better between us and china. >> are things getting better i don't think they're getting better. >> i don't see it. >> again, the market is his prom ter. that's the metric they use as a report card. the market goes down, they will try to assuage fears of the market with whatever tweet they think works that day again, the chinese don't seem to be flinching i don't think anything is happening in the next few months. >> they may not be flinching but
5:32 pm
you have to go with some of the numbers we get the u.s. numbers we've put out there have been better. >> the steel production number not better. >> generally our numbers have been stronger, that's a fact. >> you are talking the economy, the economy under trump has averaged about 2.5% gdp. do you know what the average pass been for the last ten years? 2.2% and we didn't have massive corporate tax cuts or deregulation it is sinking the economy. >> how is the chinese economy? >> it doesn't matter. >> it does. >> you know the president for life also runs the pboc, and he doesn't have to strong arm the fed chair over there he can just do whatever he wants. >> he is the fed chair. >> i'm not going to try to talk over to you, just respond back to you my response back to you is this. their economy is in trouble from where it has been. it has some of the lowest levels depending on what numbers you want to look at in 17 years or 20 plus years. meanwhile, we continue to be moving on. is it perfect? i'm not saying it is per fepgt,
5:33 pm
but i am saying there is something to be said for the fact that they are suffering far worse right now than we are in my opinion from what i am seeing. >> we will take a quick break and we will be back with more "fast money" after this. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated.
5:34 pm
but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. don't get mad. (carrying up to 50 times its tbody weight.essly marches on. it never questions the tasks at hand. but this year, there's a more thrilling path to follow. (father) kids... ...change of plans! (vo) defy the laws of human nature... the summer of audi sales event get exceptional offers now! how you watch it does too. tv just keeps getting better.
5:35 pm
this is xfinity x1. featuring the emmy award-winning voice remote. streaming services without changing passwords and input. live sports - with real-time stats and scores. access to the most 4k content. and your movies and shows to go. the best tv experience is the best tv value. xfinity x1. simple. easy. awesome. xfinity. the future of awesome.
5:36 pm
>> welcome back to "fast money". we have more breaking news coming in. this time on general electric. for it let's go to morgan brennan with the details hi, morgan. >> reporter: hey, tyler. that's right let's lead with this news, shall we ge ceo larry kulp buying 252,000 shares of ge today about $2 million worth of the stock. this on top of the $3 million worth of shares that was disclosed that he had purchased earlier in the week. just with these two purchases just this week he has more than doubled his stake. why has he done this well, because of the report we got today. whistleblower and short seller harry markopolos made allegations. >> the numbers are missing they report top line and bottom line and nothing in between like
5:37 pm
research and selling, costs, research and development costs including cash flow. they don't provide working capital, the only company in the industry that doesn't provide working capital. in fact, ge's working capital is minus 20.3 billion, current ratio at 20.67 if you research the word ratio in the current annual report it doesn't appear world com and enron lasted about four months once their account frauds were exposed. we will see how ge does. >> ge hitting back on "closing bell". i spoke exclusively with board member and audit committee shar leslie seidman who said there's no basis. >> this report today set a dangerous precedent where somebody can just say things and then potentially benefit monetarily significantly from the decline in the stock of the company. that is wrong. i really think that we need to investigate the motives for this and -- because here we have mr.
5:38 pm
markopolos and whatever this unnamed hedge fund is probably benefitting significantly financially today, and yet the holders of ge stock have suffered a loss. >> ge getting support from noted investor stanley druckenmiller who has been short the company in the bas he told cnbc, quote, i believe culp, i bought stock today tyler, shares plunged today, finishing down 11%, worst day since the financial crisis however, given the disclosure we got a short while ago about culp adding to his ownership stake, it is up about 3% in the after hours trade. >> morgan, thank you very much morgan brennan worst day for the stocks i was an employee of that company and owned stock about ten years ago. i don't anymore. >> sorry for your loss. >> yes, sorry for your loss. >> anyway, you had positions and options on this? >> for almost two years i have been rolling puts in the stock and it is because of the
5:39 pm
activity we see, tyler some of the numbers have been unimpressive and the changes made by ge is probably i think they're moving in the right direction. i think larry culp, we all respect what he could do with ge but it has been down, down, down we have had 70 separate times where i have seen unusual activity based upon this thing is going a little lower built into the puts that were being bought, including today. >> i was going to say what did you see today? >> multiple buys today, some going all the way to the jan 4 puts, not as big on those. but september puts, october puts, they've been rolling them down, tyler. now, this buy obviously popped the stock, at least in the after hours in terms of what this news flow has been. but how long is that going to sustain? i don't know the answer to that and i love that larry culp is in front of this, buying stock yesterday, buying stock today. druckenmiller i think adds to it the conversation spins it positively, but what is there to
5:40 pm
the story? is there anything to the story i mean this move today was pretty tremendous. >> i don't know, karen, whether you own it, don't own it. >> i own leaps that are going to zero. >> they're going to zero >> my plan was it is levered if it work goes, great you want to know your down stied. >> if i'm an ordinary person is there a reason to touch the stock? >> in your mind you say agagene electric, it is a company my parents grew up, and i would say in the '60s and '70s it was all true and it all changed. you didn't read the report i can't speak intelligently about it i don't know if it is enron or world com. the stock to pete's point has been lower in the last couple of years. in one of the best environments for their industry in history they've underperformed clearly something is going on there. just get the ge out of your head look at where the company is today and i don't see a compelling reason to own the stock right now. >> i will mention this we lived through enron and world
5:41 pm
com in the early 2000s and no one really believed those were fraudulent stories until it just -- >> until they were. >> until it hit you in the face. i would say this, if this was -- if there was any meat to this story, it would mean there were multiple ceos that have been brushing a lot of stuff under the rug. culp must have taken a fine tooth comb to the finances before he took this job. this would have massive reverberations if this could happen at ge over the last 15 years, can you imagine how many dozens of other companies have shady practices not too different? >> and those ceos that you reference and those cfos -- and they had many of them over the past few years -- they had to personally vouch under the penalty of jail post enron, post world com, of those results. they are putting their freedom on the line frankly. >> i think the audit share made a good point if it is a bunch of hocus-pocus quick money thing, that guy doing what he did is putting a lot on the line. literally he would go to jail
5:42 pm
ifwhi ifthere wi if there was nothing. >> which guy >> markopolos. >> a lot at stake on both sides clearly. >> he was talking a lot about the issues in the long-term care issue and i don't know the numbers very well, but there have been -- that has been a black hole for a lot of companies. >> it has been a disaster. she did say one thing that stood out for me good for her okay. they had to respond somehow. i don't think culp shouldn't respond. >> i think you're right. >> she said, we review these every quarter, interest rates are down, that means liability is going to be higher. think about it, the liability will be higher whether or not that's the liability -- i don't know if that's the way to pronounce his name correctly, markopolos, i don't know it was sort of interesting to me i don't know it will be an interesting one for sure. >> ge, if it turns out as markopolos says, it will be one of the massive stories of this
5:43 pm
decade. >> all right up next, shares of nvidia surging on the back of its earnings they came out after the bell we will break down the results grubhub getting served today as the delivery wars heat up. the options market is now betting the food fight is about to get messier don't go anywhere. more "fast money" right after this these folks don't have time to go to the post office
5:44 pm
5:45 pm
they use all the services of the post office only cheaper get a 4-week trial plus postage and a digital scale go to and never go to the post office again.
5:46 pm
♪ >> all right welcome back to "fast money" it is time for an earnings alert. nvidia jumpingin the after hours, and deidre bosa is in san francisco with more on the news. hi, deidre. >> reporter: tyler, you see those shares popping more than 6% investors deciding that nvidia's results are showing signs of a recovery from last year, which was characterized by lower sales and excess supply. beyond the headline numbers though, tyler, the report and the outlook was more mixed data centers, seen as a critical center, nvidia is trying to broaden its reach and diversify from the core gaming business. revenue came up short in this segment. the company setting a decline in revenue from hyperscale customers like cloud infrastructure providers suntrust in a note saying that automotive and gaming strength more than offsetting the weakness in data centers also want to mention third quarter guidance was lighter
5:47 pm
than the street was expecting. now, nvidia has tumbled some 12% this month alone year-to-date though it is still up about 11% and on a forward pe basis it is still one of the pricier chip stocks analysts are looking for a second half rebound for the chip maker. in a note this week webb bush said needs to be optimistic, pointing to a pickup of nintendo products that use nvidia components and the release of the switch light console that call is currently under way. tyler, back to you. >> deidre, thank you very much let's talk about trading these names. this stock though, it was up i think 17% year-to-date it is down something like 45%. >> well, i mean as deidre mentioned it is an expensive stock, one of the high flyers in terms of valuation they had a rough time. half of the revenue is in gaming and gaming is up 20% quarter over growth. yes, data center, i get it, but still a small portion of the business you have to ask yourself does
5:48 pm
the valuation make sense margins are improving. a good sign. the guide was not great. i don't think you touch it right here i think it is in the mo man's land where until things are sorted with the chinese, until the market shows its hand, i don't think you touch nvidia right here. >> what do you say, dan? >> i think the tariff thing is the biggest overhang different parts of the semi conducto conductor industry last year, getting ahead of the thing the semi conductor index was one of the things to make highs last july confirming the high in the s&p 500 because it is a leading indicator for as far as cyclical tech is concerned. the fact of the matter smh is still below where it was a few days ago stocks rallying like nvidia and texas instruments last week, it is not as bad as we fear i don't think it is as bullish in my opinion. >> i agree i don't know that gaming is where they want to continue -- >> if you have so much tied to
5:49 pm
gaming. >> and they do. >> and you are hitched to another kind of horse, you're not in control of your destiny in a way. >> exactly right because of that, were the numbers great? no, year over year they're definitely not great quarter over quarter, a little better year over year, not so good. because of that i don't know it is a touch right now, tyler, especially given the valuation you would want to wait for some kind of a pull back i think in the stock. i think there's better names right now that fundamentally trade at a much better pe level. >> like what >> for instance like an intel or some of the other names, maybe a micron, somebody else in the chip area. but i look at this name and i love it. i think they're really well run but i think they've been struggling to grow in the data center, and obviously there's been headwinds as well with the trade war. >> forgive me for not knowing this, aren't they deeply involved in autonomous driving?
5:50 pm
>> yes. >> they're in the crosshairs of the trade situation and i'm not optimistic on a near term solution. >> we're taking a break. >> shares of grubhub sinking to a fresh 52-week low and options trading are betting investors could take a bigger bite out of the stock. we will break down the action. >> plus, take a look at mr. cramer, the cramer cram. jim is breaking down the wild market moves and how to play them that's at the top of the hour. live at the nasdaq market tesi in times square, "fast money" continues trait away part of bei. sonoma county declared a homeless emergency in 2018.ei. s awayt awayr awayo kna aways yy to understand their needs. working with ibm watson we can bring together data spread across dozens of departments. that gives us a fuller view of the people we serve. dear tech, dear tech, we need to look after everyone in our community. and we want to help our fellow human beings. ♪ ♪
5:51 pm
- [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at
5:52 pm
5:53 pm
boy, i wish everybody was here during the break. >> i know. >> we are talking about -- >> bald eagles. >> telling fish stories, but we will talk about maybe eating fish with grubhub here check out grubhub, hitting a new 52-week low today. the food delivery stock getting pureed. >> oh, come on. >> there you go. >> made up for the roller coaster, didn't i? volatility is ramping up options traders are betting grubhub is about to get even harder with options action, walk us through it, dan. >> this one is interesting because it is not one you see a lot of options volume in, but today put volume is three times that of calls. there seemed to be buyers of the
5:54 pm
september '50 puts 9,000 traded in small lots on average for about $1.28. the stock averaged today a little above $59 if you think about that, if you are buying the puts and it is an o outright bearish bet you are looking for a break even down 17% in a little more than a month. here is the thing. the stock is down 60% from all-time highs made last year, down 24% on the year it made a new 52-week low today. let's think about some of the things going on. obviously uber, which has one of the biggest competitors, uber eats, is getting just creamed in the public market since going public in may. we also know that they've got two massive competitors, door dash, which is valued at $12 billion, versus grubhub's $5 billion public market cap they're spending a lot of that vc money to get growth, right? to get to the public markets, and obviously there's post mates. too. here is the one year chart it broke the prior low here, making new lows.
5:55 pm
i think it is really interesting to put this thing in context since its 2014 ipo, this haul run-up, this was the bullishness that surrounded the tech unicorns preparing to come to the public markets i think a lot of people thought here is grubhub, been in the public markets for years why doesn't it have a better valuation, it has good growth. you know what happened here? the growth started to decelerate meaningfully as uber and door dash started to gear up and go public and kind of get the exceptional growth that could help it make a public debut in a splashy way. and then you have this decline right here i think it is really important to keep an eye on some of the names. they could be a decent barometer for kind of sentiment towards the high valuation, money-losing things this company make monies but the earningy are decelerating as they fend off guys in the private markets. >> dan, thank you very much. a lot of the companies don't make money, right, on this at all? they're losing money right on
5:56 pm
schedule, right? >> hand over fist. it is land grab right now, uber eats, door dash, i mean caviar was just sold. >> i guess you have to spend money to make money, but -- >> but sometimes you chase good with bad or bad with good. the quarter wasn't bad they reported the second quarter on july 30th the guide was atrocious. the stock went from 32 to 150. probably going to round trip the 50 puts probably come in play big short interest, 27%, they're probably going to win out. >> folks, we will take a break for the full "options action" show -- i did it last week it was fun tune in tomorrow at 5:30 p.m. eastern time up next, "final trades." ♪ "options action" is sponsored by - sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions.
5:57 pm
sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪
5:58 pm
5:59 pm
♪ all right, folks time for our "final trades". let's go around the horns beginning with you, pete. >> you know the industrials, we've seen pressure on them. they were put buying today i think it is going lower. >> karen >> yes some retailers doing quite well. walmart today very good, but too expensive. i think target also will do well i like target right here. >> dan, got a thought here >> i think retail is a disaster. look at the xrt, worst chart in the market i would tell you the xlf, banks
6:00 pm
do not look well i would not be a buyer. >> tyler, unbelievable you are back tomorrow. >> no, ip thi think scott is he >> oh, my god. well, scott is good too. eastman chemical, emn. >> devalui my mission is simple, to make you money i'm here to level the playing field for investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm trying to save you money my job is not to entertain, but to teach, put it in context. call me 1-800-743-cnbc tweet me at jim cramer the last couple weeks have been way too binary for this guy. >> moo >> either of these going great


info Stream Only

Uploaded by TV Archive on