Arrival . First we start off with what were calling judgment day for the rally. The fed is expected to announce the end of the experiment known as qe. The beginning of the end starts tomorrow this as stocks hit a fresh record high, today the dow higher for eight straight sessions what will the fed do how will the market react tomorrow guy adami. I do think its extraordinarily important. Dan is going to yell at me i hope he does. If the fed were to have made this move a few years ago it could have caused a dramatic move in the equities market. The market is telling us now that were going to move from monetary stimulus to hopefully fiscal stimulus. I said to wait for me to finish. I think thats what the market is pricing theyre saying, theres a very good chance that President Trump and his administration will put through some of the initiatives that they want and this is why i think the market maintains its alltime high despite the fact that the fed is now reversing what has been eight years of unrivaled monetary stimulus. I mean, listen. We all know there are certain hopes about fiscal stimulus. Its not going to happen this year theres hope for tax reform. People see this global synchronized recovery happening and seeing where to make money with risk assets at the end of the day, we have low interest rates, even if they raise 25 basis points and start typing in the near term. We know that Commodity Prices are low, the dollar is low those are ingredients for higher stock prices. What troubles me are the high levels of complacency. I cant remember in the 20 years ive been in this business where the market just doesnt sell off. To me thats a little scary. People are getting scared at how not scared everybody is. I wonder if thats a little bit of passive invest too. Because they buy block of stocks and etfs versus individual names. It seems like they invest across the board in etfs. It doesnt allow you to separate single stock weakness, so its muted, so just buy the whole thing. It hasnt sold off, as you said. People are happy with their gains, and what else is there . I think the reality so far has been its been a very healthy market in my opinion, the way its trading i know everybody says come place placeplac place placenscy, i get it. We watch this rotation every single day it used to be months or weeks. I think thats healthy its not just the f. A. N. G. Names, its technology names, not just the semis, its others in technology. Not just the financials. Theres this constant rotation i do get more comfortable because its not just one sector really driving youre right. Last night on the desk we were talking about bank stocks, the underperformance year to date. You may have this breakout now at a time when f. A. N. G. Has stalled. Those stocks run 30, 40 percent. Hundreds of billions of dollars of market cap outperforming the market and bringing up the market for all intents and purposes if you finally get your bank breakout my nervousness and hesitation, youre right, there is ability for banks to run, but you also had that liftoff around the election it doesnt get calculated into year to date it rallied earlier than the rest of the sector. So i dont know if it was a preindicater i dont know if its out of gas yet. I think theres other spots. If you guys think the banks are going out because of rising rates, sectors like staples could sell off theyre obviously very expensive. You could have a rotation into value thats underperformed and staples that have outperformed theyre actually pretty expensive. Thats exactly right. Look at the p. E. s, a pullback there is almost expected if you see other parts of the market. Then we should aspect it in technology as well its been a low, slow growth environment with low rates where are you going to find that growth in technology. That has been the reasoning so far this year, if we are to believe that rates are going higher that changed the foundation of what had been despite the fact that technology has performed as well as it had, look at the valuations look where their growth is is it the old blindside of the growth or the new . Is it more in the cloud side there is a growthy area there the weaker dollar, that is absolutely something thats been a great tailwind for the rest of technology the problem is, as we started off the show, what is the fed going to do, and is this to me the only risk in the market, guy started out the show saying it shrugged off everything, basically. The unwind is a big deal i mean, the margin of error, weve never seen anything like this before. Im surprised, you came out being so sort of measured, because youve always called this the greatest, the biggest trade ever put on in the history of trading mankind and here we are. Its a lot easier to put on a trade than right but i also have to say, i mean, if im going to truthful here, the fed so far, they havent had a misstep, right so i think its going to be extraordinarily difficult to exit this. Its going to happen over months and years, not days. They havent had a misstep because rates havent gone down. Theyve gotten bailed out in a lot of different ways. One way is, theyve empowered other Central Banks to do exactly the same thing were doing, without getting too wonky, which has been a huge tailwind for our fed and our markets. When you say theyll have months to unwind this, will they tell us what the pace is they have no clue what the pace is going to be but they have to be transparent while theyre telling us something that they have no clue how theyre going to do. That could be the misstep. Theyve always left the door open, theyve always said depending on financial conditions they always have that sort of out. They can telegraph whatever they want telegraphed weve gotten the message pretty clear clearly. The unwind is something that i think the market is going to have to absorb before they start discounting what the effects can be i agree going back to your comment about a synchronized global recovery, its been a synchronized global easing as well we dont really know what kind of recovery i kind of say that with big hand quotes going up there were in the eighth year of a recovery from one of the worst financial crises the world has ever seen. And it was a rolling financial crisis it was a rolling debt crisis people forget that europe was in the throes of it in 2011 and 2012 it was always in asia. Some people think theres still a massive credit bubble in asia that has yet to burst. What makes me nervous, were eight years into this, our stock market is up 200 and something percent. We cant conceive of anything that would take it down. We do think we cant think of what the next crisis is. But ive seen instances twice where the s p 500 sold off in a trough you cant invest like its right around the corner. But i go back to what guy said, i see a lot of things that dont make a lot of sense. The continued pileon, the fact that this f. A. N. G. Stuff was the only game in town. I get so sick of hearing only game in town thats the most overused statement. It is not just f. A. N. G the world provloves to say that. It was microsoft its a clever thing to say, four names. When you look at the s p 500, because of the percent of the weight of it the performance from other names. Every focuses on these big market cap names on the upside thats true, but how about all the other names that go along with them . Salesforce. Com you go through the list the argument is the same. The argument is that in a low growth environment, people gravitated towards technology because they were searching for growth they were searching for Growth Growth and valuation the s p 21 times on a trailing basis. Thats way above the average, about 16 times the growth is coming from a different part of the so you have facebook thats been growing 35 a year on their sales and on a gaap basis on earnings, its much less at some point its going to decelerate true. Except for the fact that they do have growth in other areas thats the point that you and a lot of people have been missing out on, is the reality is, where is the growth coming when you look at a name like microsoft, growth is coming from a smaller sector of the business last word there are names like salesforce that have done well i understand what dan is saying, in terms of market cap theyre extraordinarily important. But look at microns save, micron pushing up against levels we last saw at the end of 2014, very important to watch that guys, micron is the most commoditized piece of crap company that exists on the planet if you look at their stock and the sales cycle, so right now we are at a peak. Its going to come back in well have a separate segment tomorrow, micron is the most commoditized piece of crap company there is terry, with blackrock, always good to see you. Weve been having a spirited discussion the de facto tightening. Youre way too close. I love this guy. Im ready to run to the locker room he was the man. But seriously how does this all go . Do we keep going higher . So tomorrow is judgment day a lot of if he had watch verse been waiting for this day to see what happened. At blackrock we expected theyll announce balancing the Balance Sheet in october we think investors positioning for this great unwind will be disappointed, because one, this is going to happen at such a glacial page there will be adjustments, reinvestment amounts as we go quarter over quarter but this will be very, very small. The second thing, we have to understand what the fed has been doing over the last couple of years. Theyve been tacitly tightening their Balance Sheet. Now were transitioning from passive tightening to active tightening we look at some of the estimates for how qe affected interest rates. We think 40 to 50 basis points thats going to happen over the course of three years or so. Were saying to investors, we understand this is a big thing, we dont want to poohpooh it, the technical word of the day, but we have to look at other factors driving the markets. Its not just about Monetary Policy what is it about, then . Around the worlds been about easing Monetary Policy and thats fueled every market around the world its been a support but that support has waned a little bit weve been getting Earnings Growth double Earnings Growth across the major regions, q1, q2 as well we find that perplexing. To propel us to new highs, were going to have that Earnings Growth now were getting earning growth i heard the conversation coming in about how people are getting scared and nervous well, why are you getting scared and nervous if you have the fundamentals to support these pes and price levels Earnings Growth, agreed, you see it there, its undeniable. But do you have the commensurate Growth Technology and Revenue Growth is up 9 or so last quarter. You look at financials, they were up as well, 8 in terms of eps growth however, top line financials only up 4 year over year. There is some dispersion for earnings story as well as revenue story. We want to see if were getting that top line growth does the judgment on valuations change when rates go higher i know that rates are historically low even in just the past couple of weeks, since september 8th, we had a 22point increase in basis points, a dramatic move. Interest rates, yes, are higher largely structural shift we have to think about what our risk equity premiums should be at the same time, we understand were in a secular theme for a couple of years or so. Even if we dont get valuations pushing higher, we should at least have support from equity markets. Can i boil it down or can you boil it down in terms of the message youre sending it sounds like steady as she goes, youre not that worried, stick with investment stocks ill echo what you said, basically ecb into 2018, if they arent faced with adversity in the economic stance, theyll adjust that policy and potentially unwind the Balance Sheet. Well see how that plays out for right now, things seem very possible on a macroeconomic front. We know north korea is an issue. There could be a misstep in the fed argument at least theyve been taking from the history lessons, and they dont want to repeat that it sounds like youre throwing everything at this market, its like a teflon market, whatever you throw, people are atmosphere and pushing it higher. That just doesnt happen without rational sense terry, thanks for coming by, terry simpson, blackrock selloff doesnt happen unless there is a misstep and its never the selloff that we see coming. Its always that event that no one had any clue was there, oh, my god, if i had known this i would have liquidated my positions. I wouldnt underestimate the ability of the fed to screw this up coming up, mad moneys jim cramer sitting down with senator Elizabeth Warren just moments ago in an exclusive interview, hell be here to tell us what she said and the telecon giants are in talks for a merger again how likely is a deal this time around well tell you what the ads trer are betting. More fast money after this at fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Did you hear directvs latest deal . Its cheap and gets you all the big games. It starts at sixty bucks a month, but jumps to over 100 after 3 months. Cool i think . And jumps again to over 150 after a year. Noooo. And ends up costing over 3500 bucks over 2 years. Youre cleaning that up. Dont get caught off guard by directv. Touchdown. Get the best with xfinity. They make stuff up by telling you that everything is peachy cream and everything is moving in the right direction. And understand, i like david taylor i look forward to working with david taylor and im not asking for david taylor to step down. But i would ask david taylor to be forthright. Forthright. That was activist investor nelson peltz sounding off about p gs refusal to include him on the board and accusing david taylor of not being honest about the companys trajectory jim cramer joins us. The question for you is, who do you believe here this is very, very tough, because i know that shortshort term, there is absolutely a change that is positive under mr. Taylor but if you look at the longer term, proctor has disappointed if you look at the longer term, nelson peltz has done great. I can show you numbers that are spectacular, almost double the s p. I think he did a great job in a lot of the places hes been involved in. But this thing has turned into a lot of bad blood the real winner is the common stock shareholder. As long as nelson is in there fighting, the stock keeps going higher its amazing, the last time we spoke about p g is when you interviewed david taylor and the stock then hit a record high here we are again today. These two guys are engaging once again and the stock hit another record high. Theres a lot of value. It will be unlocked by someone will it be unlocked by nelson faster arguably he wants to do some things that look like what unilever did, and unilever is doing terrifically hes saying, weve had so much change, can we handle any more change i think both sides make remarkable, remarkable stories for the shareholder. I dont think when nelson got on the heinz board, its a little better than what proctor is saying, but i do understand that proctor feels, look, we have had too much turmoil, its time to let mr. Taylor take a little bit more time and lets take a look at it later. I do think nelson has a very good chance of winning because i think the long term for proctor is disappointing but if you look at the 16year period for proctor, what a stock. Which is why ive been recommending it forever. Moments ago you spoke to senator lElizabeth Warren, democratic senator from massachusetts. She said Something Interesting about wells fargo. Lets listen this is a company that from the very top has made it very clear, theres no accountability here this is not about serving consumers. This is all about, quarter by quarter by quarter, how to juice the reported profits thats what mattered at wells fargo. Look, youre an investor in wells. What do you make of those comments yesterday on halftime, i think he sees the fed making a possible december hike the allure of this companys stock was always the cross selling. And senator warren raises a lot of questions about, what about the other banks that didnt do cross selling, how come wells fargos numbers always looked better this is not a left or right issue. The outrage she feels, if you listen to the interview, that the Federal Reserve should feel. There was a culture. The Sherman Sterling report that they commissioned themselves, this was a culture that was pervasive of doing the wrong thing. That report is more damning than wells fargo has led you to believe. Jim, Warren Buffett stood with wells fargo as the management has changed has that changed your opinion at all after the pullback and especially after this latest news didnt affect the stock as the first goround were all in a group move now. The companys multiple has shrunk i think Warren Buffett believes in the power of the National Franchise of it. I do think he was quick to be able to say mr. Stumpf is no longer the man to do that. What is the Federal Reserve doing . Do they feel they have any ov oversight at all the Federal Reserves charter says they should be actively involved in figuring whout what went wrong here, why this company has gotten off scotfree. I think she makes a lot of points i dont think its about a democrat or republican i think its about an outrage that a lot of people feel, but everyone feels pretty helpless about. Jim, great stuff today, thank you so much for joining us catch the whole interview with senator warren and the rest of mad money tonight. It kicks off at 6 00 eastern time jc, getting it done, despite the tough loss by his eagles on sunday i understand what people say about wells fargo. I just went by wells fargo on principle. Quite frankly, its more than just one screwup i would leave them off not to mention the fact that its an expensive stock in the first place. Equifax is the one that fascinates me. I know we didnt have that conversation im shocked it actually traded a modicum higher today i still think there are some skeletons in those closets, i still think equifax goes lower talk about skeletons, you talked about Management Change at wells fargo tim sloan, now the ceo, was the coo during a lot of these activities i think theres another shoe to drop especially after these increased numbers of phony accounts open. I dont know why this guy is still in his seat. Do you think theres upward vibe yes, i do ive seen paper come in there, thats one the bias has been negative before when i see the stock sell off in the past, what it got down to was 1. 3 times book, not pe, times book thats been the low end. Its at 1. 4 now. Its traded much higher. Obviously as its pushed down, and i think these levels present an opportunity once again. I could be wong. I actually dont own options i own the stock. I bought the stock why do you think the stock should recapture its previous price to book valuation if it has to change a little bit this is still a company that can go out and make money. I think they can make lots of money. There are different parts of the loan world where they do a crisper job. These are huge mistakes they made in the past lets not forget, 165 million accounts and they have the 2. 1 million and now 3. 3 million total in terms of forget the fundamentals, i know its hard to do that, but when you look at the chart on a technical basis, it rallies 8 just on a technical basis alone. Ahead, fedex shares lower. But could it be a buying opportunity . Im melissa lee, youre watching fast money on cnbc, first in business worldwide lets make a deal thats what appears to be happening between sprint and tmobile well tell you at what price traders see it happening plus the reviews for the new iphone are in. Hate it they werent quite that bad but they may not lead to the super cycle traders were hoping for. Apple guru gene munster will explain what it means for the stock when fast money returns. Let your data live wherever it needs to, but see it all in one view. The ibm cloud. The cloud for enterprise. Yours. I enjoy the fresher things in the cloud forlife. O. Rise. Fresh towels. Fresh soaps. And of course, tripadvisors freshest, lowest. Prices. So if youre anything like me. Youll want to check tripadvisor. We now instantly compare prices. From over 200 booking sites. To find you the lowest price. On the hotel you want. Go on, try something fresh. Tripadvisor. The latest reviews. The lowest prices. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Ck m roetan the babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Welcome back to fast money. Were live at the nasdaq markets. The dow, s p and nasdaq all closing at a high. Telecom financialses were big winners. Fedex falling in after hours session, the company missing in top and bottom lines shares are down almost 2 . Rich ross says that pullback could actually be a big buying opportunity. Hell break it down. Plus cnbcs david favor says how likely is the sprint and tmobile deal to get done . But first, the wall street journal says the iphone 8, quote, isnt the upgrade youre looking for. Then theres the the verge saying, its not the future or the cutting edge, its just the default. Wired calling it oring tepid reviews for the 8. With the iphone xs hefty price tag starting at 1,000 bucks, will people, and more importantly businesses, skip the upgrade cycle all together gene munster joins us, great to have you with us hello we saw it contribute to that step function higher in units sold was Corporate America actually getting on the bandwagon and giving their employees those iphones finally. Are we going to see them say, you know what, youre not getting an x, that thing is way too expensive, you wont even be getting an 8 because i can buy an iphone 7 for 150 bucks cheaper. We think there will be far less adoption of the most advanced version the next cycle is really split into two phones, the iphone 8 and the iphone x so we expect about 25 of the units to be the iphone 8 and 20 to be the iphone 10. Youre exactly right, youre going to see a lot less for corporate, especially. Typically corporate also underindexes to consumers, because theyre usually a little tighter on their budgets and they want a phone thats been around for a little bit. I think another approach to this question is, does it potentially cause a hiccup here for apple, some of these negative reviews if i could just quickly talk about that i think the answer is that we still expect a pullback in the stock here but ultimately, this portfolio approach, and apple is a genius as really segmenting with a laser edge these price points, i think that will yield the proper unit sales and the asp move to get the stock to continue to go higher gene, so the company also quietly raised the price of the iphone 8 from the iphone 7 there. So that kind of speaks to what mel was just speaking about as far as on the corporate side you also worry about the elongation of these upgrade cycles, maybe this super cycle doesnt come in the way in which 40 analysts on wall street had been talking about for the last year you know, thats, again, part of the reason why we think this will take a pullback, because we have 40 analysts who expected this for a year. As far as the elongation of the cycle, to put some quick numbers around that, is that our estimates are that the number of active iphones that are three years old or older is now entering about 300 million units. Most of the street thinks this next cycle is going to be about 250 million units. At the point of three years its less about the features and some of the reviews its more about, i need my phone to survive and its just not holding up i think that is one of these, its not very glamorous, a baseball term, its manufacturing runs, but enough, again, to yield a demand to get this to be a nice improvement over the last cycle. Gene, even though, as we all know, its still a hardware company, its still a phone company, what happens if you dont get that pullback and we look at surprise on the Services Side is there any shot at that . I think there is. You know, i tend to still believe well get this pullback because i think once we get through all the excitement and the preorders around the iphone x, i think there will be naturally some concern about what the march and the june quarter look like next year. But i think thats trading the stock. I think thats an important opportunity around that. But i think as a company and their position around services and where this is going longer term, around ar, i think its still exceptionally well positioned despite some of these reviews, its still the best phone in the world. What kind of pullback are you talking about . The last time we talked about a predicted pullback, the stock didnt hit its recent highs. What are you forecasting at this point . I talked before about a 10 pullback i did not anticipate this lte cellular watch which softens that i would say a 5 to 10 pullback is realistic we havent seen much of a pullback yet gene, great to speak with you, thank you thank you gene munster. 5 to 10 pullback. Do you buy what gene is selling . Ive thought that for a while, ive been incorrect pete knows apple better than i do i will mention, we mentioned micron earlier up against that level. Another stock, Texas Instruments, for example, i think it made i want to say close to a 20year high or so. Im probably off by a year or so Texas Instruments very quietly has done this slow grind higher. The downstream plays have worked in addition to apple gene mentions brand he also talked about retention which is what apple is all about. They are a consistent company that when they come out with a new model, they raise prices they raised prices across every single product line that they have and people didnt even flinch. And the watch is one of those examples you talk about the lte and gene talked about the lte that i think is a much bigger play than people have any clue right now. I hated the watch when it didnt have the ability to do that, it had to be tethered over time its grown on me now the fact that it can do what its going to do, its huge. The Services Side, all those wonderful things the weaker dollar helps demand as well. Youre a watch guy. Take a look at that beauty ima watch guy. One of many in his collection they each way like 15 pounds at least. Would you get one of the untethered apple watches i probably would consider it. To me, watches are jewelry your phone is when im talking about apple, people arent looking at that to tell the time theyre looking at that because that is now their miniature computer still ahead, fedex and Bed Bath Beyond sinking in after hours. Both companies blame Hurricane Harvey for some of their troubles plus Telecom Stocks taking off in the last month as wall street eyes consolidation in the space. You will not believe how much higher some see sprint going me asmoyft aer this beeping were on to you, diabetes. Times up, insufficient prenatal care. And administrative paperwork, your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you too. At optum, were partnering across the Health System to tackle its biggest challenges. Integrate any part of your business, and have your systems work as one. The ibm cloud. The cloud for enterprise. Yours. The cloud for enterprise. And her new mobile wedding business. Tte at first, getting paid was tough. Until she got quickbooks. Now she sends invoices, sees when theyve been viewed andtadahpaid twice as fast for free. Visit quickbooksdotcom. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Welcome back to fast. Breaking news out of washington. Kayla tausche has the latest senator Lamar Alexander who had been trying to stitch together a bipartisan, short term, fairly narrow deal to stabilize the individual Insurance Market through 2018. He just released a statement saying that those talks fell apart, saying, we had hoped to agree on a limited bipartisan plan to stabilize markets but during the last month, despite having worked in good faith, they have not found the necessary consensus among republicans and democrats to put a bill in the senates hands that could be enacted. Of course these bipartisan talks about have been taking place on a parallel track to a push by republicans to pursue repeal and replace under the Graham Cassidy bill before the september 30th deadline well see whether that has new viability as the bipartisan deal falls to the wayside this comes, melissa, as the white house says it has and will continue to make the payments to prop up the individual market. It remains to be seen what the long Term Solution for health care is. A lot of uncertainty. Thank you, Kayla Tausche in washington dan, you were noting the uncertainty in managed care stocks they were done a lot today, sticked out like a sore thumb. Steve and i were talking about this today Graham Cassidy is not going to pass its a shame that a bipartisan effort falls by the wayside like she said but whats the rush . Hopefully, youll need 60 votes, hopefully both sides can come together and fix obamacare you have to look at these on a stock basis. United health care is up 21 year to date i would say that if nothing gets passed, theres no repeal, they can opt out of exchanges that theyre not profitable in, and if there is repeal, theyre probably more profitable hate to say its a buybuy scenario but thats what youre saying would you buy the weakness i would definitely buy the weakness now to fedex, lets get to dom chu with the latest on the conference call. Reporter weve seen during the course of the prepared remarks segment and the analysts q a, on the conference call, the bulk of the comments made, trying to clarify the actual impact of what happened with that big cyber breach of its european t t express shipping operations. The company addressed it specifically and in depth. Here is a little of what they had to say about the impact of that cyberattack the attack was completely contained to tnt and did not impact any fedex systems or those of our customers in addition, all of our customers can be assured there was no loss of Customer Data to third parties. All right so in addition to that, they also point out that substantially all of tnt expresss operations are now fully functional and that they do expect that impact to carry over through the full year results as well. One of the reasons why we are seeing some of that weakness in their shares but the cfo of the company mentioned not just that but weakness in their fedex ground operations as contributing to the overall weakness, perhaps below expectations results melissa, when it comes to fedex, this is a stock even with a 2 drop thats still 5 or 6 away from record highs. Back over to you thanks, dom chu in the newsroom the Cyber Attacks doesnt bother me as much, because its a onetime event we know theyll be raising prices 4. 9 . Which should be good. Should be good. From that perspective, i like it ill tell you what, the weakness in ground i think is a little concerning theres more to the story of why it sold off than just the Cyber Attacks. Were not seeing a readthrough on gps the other side of that equation, ground is probably 70 of fedex freight is the other, lets call it 25 if you look, freight operating margins were much better than the street were looking for. Thats not a reason to go out and buy the stock, but it seems to be picking up i here what pete is saying, i think its okay on valuation i think you have to let this shake out a couple of days, as rich ross, who is coming up shortly. Funny you should mention rich ross, who is in the top three. Top three for sure. Of the list of 12 people who are always in the top three. Lets go off the charts with the one and only rich ross hi melissa, thank you very much look, stocks reaction to news tells me about half of what i need to know in this case for fedex, its bullish. Look at the reaction here. So we fall 4 on the print but now youre down less than 2 on a top line and a bottom line miss thats bullish keep in mind, this stock up 16 year to date thats 10 more than the transports itself. You can see that on a oneyear chart. If we bring it up, we can break down the chart of fedex more clearly. We can zoom in here. You see the welldefined up trend, well give it a green trend line you can see this cup and handle thats developed here, a big base of support. By no means is this 185basispoint decline a death knell for the stock. On a sector level, its a mixed bag. Weve talked about this many timings on this show the transports are one of these failed trump trades, if you will, hasnt been able to get out of its own way here, up 5 year to date versus 12 give or take for the s p a relative underpurchaerformer you better watch your speed when it comes to the airlines, this is a Group Getting hammered on both sides, trouble ahead, trouble behind youve been a billing underperformer here much like the group itself youre in the negative here. Airlines are a group within the transports that you want to avoid. You want to embrace the strength in the rails and the trucks, which have been the beneficiaries of the weakness in the airlines rich is going to come over. Hes got to come over when youre in the top three, you automatically get an invitation, particularly if youre in the top 12 list. Umm, would you rather. Fedex or ups fedex i like to buy strong stocks in a strong time, and thats what were in how did you feel when he said you want to avoid the airlines i understand, its not been a fun ride, its been hit, hit, hit. You see all the valuation metrics, they seem strong, yet the charts and the way they react and the market has not been good. To your point, the airlines have been sort of a death place to be in the short term technicals continue to erode. I would say if youre a long term holder, these longer term up trends remain intact in the space that offer some hope for traders out here, and this is fast money, not suze orman, this is still a sell when you say the technicals are still not constructed, theyre making a series of higher lows. They may have failed but thats natural to reverse, fail, then make a higher low. Look at spirit or delta, they look like they have made a series of higher lows. There are a lot better charts out there than the airlines. I think you have a lot of opportunities on the long side so while there might be opportunities over time, this is not where im looking to commit fresh capital right here had he is our suze orman, for all intents and purposes so what has the dow made, eight executive highs . Eight Straight Days does it bother you that the transports have not confirmed that high yet . Is that something you look, in 1924, it mattered more than it does today. Im not saying its unimportant. But as i said, if you pull up charts, norfolk southern, ksu, the trucking stocks, theres some real strengths within the group that masks the weakness youve seen in the transports as a whole. The short answer is no, it doesnt bother me. I know you like the banks. You see whats going on with biotech. We have both sides of the aisle working, the dow pushing outer to a new high, even small caps pushing out to a new high. Theres lot to like about the market dont not buy the market because of whats going on in the transports always great to see you, rich ross, evercore i missed all of it, you dont even need to ask me, you know i did. Are you going to tell me what i missed and prolong this conversation or should i just move on casey jones is steves least favorite lets be very frank, okay . Anyway. Still ahead, tmobile surging today after theynd a sprint are in active talks. Much more fast money after this. So he got quickbooks. It organizes all his accounts, so he can see his bottom line. Ahhh. Thats a profit. Know where you stand instantly. Visit quickbooksdotcom. Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Welcome back to fast money. Telecom stocks topping the talk today, tmobile and sprint surging after a report that the two companies were in active merger talks again, amid rumors of massive consolidation in the telecom space. Verizon and at t were higher today by more than 2 . Dan . At t got way oversold they had a really good quarter we talked about it earlier, more consolidation will probably put less pressure. Obviously sprint and tmobile have been banging up against at t and verizon on the pricing for subscribers. Investors see this as a decent thing, especially as you get close to at t and time warner vertically integrating the notion, i was chatting with favor about this on squawk on the street this morning, there will be less of this sort of land grab for customers, less promotional activity, which has been driving prices lower. Which i would think should be a good thing for everybody involved. Whats the more interesting play tmobile, we had the discussion, but sprint, big short interest, a stock that has not been able to get out of its own way since january. A series of lower highs. If youre looking at a stock that has a potential for a short squeeze to the upside despite the fact that it really didnt do it today although it was up 7 , i still think sprint is interesting. I keep it really simple tmobile has outperformed these guys by a large margin i dont think that land grab stops. Hes out beat telephone and verizon, hes not out to beat sprint, although hes in the trenches with sprint constantly. I think the land grab continues. Most interesting thing, tmobile yesterday, both you and i covered that, huge buying, sprint today, 59,000 upside calls. Calls were bought as well. Keep an eye on at t. Lets get more on the options action in these two stocks mike coe has the options action. Midday it traded over 14 times the call volume. Part of that was a big buy of the october 9th calls, a block of over 41,000, those would be bets that the stock would be up more than 10 in just over four weeks. I think basically theyre thinking that a merger deal with tmobile would be highly beneficial weve seen this rodeo before, 0 though, mike we have thats a very good point i think thats one of the reasons why buying some cheap calls on it might be a better way to play. These situations, its hard to see the deal close mixed metaphor, mel what . Weve seen this rodeo before. Oh, thats true its not my first rodeo ive seen this movie before. Youre absolutely right im just helping you out. I know you only went to harvard. I didnt study. Up next, final trades. Thank goodness im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Whether its connecting one of or bringing wifi to 65,000 fans. Campuses. Businesses count on communication, and communication counts on centurylink. Youre searching for something. Whoooo. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if. There was a single site. Where you could find the. Right hotel for you at the best price . There is. Because tripadvisor now compares. Prices from over 200 booking. Sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise the big interviews just keep coming on cnbc bill ackman will talk about his battle with adp tomorrow at noon, you will not want to miss that time for the final trades. Keep an eye on this name, i think its going higher. Avis budget up 9 off its recent low still a double . Still a double. Micron, i think you want to be out of it why is everyone talking so fast we said if it holds off the oracle news, you have to buy crm. Thanks for watching see you again tomorrow at 5 00 stay tuned for mad money with the one and only jim cramer. Test test. My mission is simple, to make you money im here the level the Playing Field for all investors. Theres always a market somewhere and i promise to help you find it. Mad money starts now hey im cramer welcome to mad money, cram america. Im trying to make us money. My job is not just to entertain but to educate and teach call 1800734 cnbc or tweet me ji