One obviously will be iphone revenue, it is 26 billion, basically in line with what the street was looking for it is down 12 , but it is an improvement from q2. Remember, it was down 17 . I had a chance to catch up with ceo tim cook i asked what kind of impact the Trading Program was having there. Remember, one big roll here for the iphone franchise, why it is facing challenges, the replacement cycle is getting longer i asked cook is the tradein program impacting that at all. He said it was, it was a key reason for the sequential improvement. Services will be in focus, 11. 5 billion. Though apple has the onetime litigation settlement. It is up 15 from the comparable figure a year ago. I did ask cook about some of the new services on the way like the new Video Streaming Service and i asked him, melissa, how he will judge the service cook telling me the most important thing is, one, the product, and, two, the number of subscribers, whether we are going to announce it i dont know we only want to make the audience and, secondly, the audience we dont expect to have the biggest nature finally i think a theme on the call is wearable, Home Accessories clocked in at 5. 5 billion as a segment better than expected. Wearables alone up over 50 . I will hop on the call and bring you more headlines as they come. Melissa, back to you. Thanks, josh lipton, in cupertino. Guy adami, we go with apple here it is a great quarter here is what i mentioned josh mentioned margins Gross Margins for the company were spot in line. I guess it is okay news. The really good news, services came in close to 70 the higher margin business, now services is 21. 2 of the overall revenue mix. Thats a really good thing there are some things you can nitpick with yes, wearable is much better, iphones maybe a slight disappointment the guidance is great. How do you trade the stock at 2. 17 and change . It is coming up against the level we saw last year august the high was 227 1 2 or so does it fail here . My sense is it might be in for a pause. Expectations were low going into particularly the Revenue Services number. Remember, it was a stock down 40 last year, it was down 20 in may so the response here i think is very telling of a bar being very low. When i look at the action here, getting above 215 after hours is a breakout i think it will give a run at the old high you think i think 233 is the number when did the semis peak . Last january with the semis giving us the tale the whole time that apple is in good hands i think they were. The Services Number when you consider where the comp is, it is actually in line and very good the guide is the impressive part of this. The bears will say, hey, you went from 16 you went from 19 to 16 to 13 sequin shell on Services Bottom line, it is growing off a now larger base than it was off a tough comp i get back to the blended multiple here. I dont think it is a stretch to begin to look at the company as three different companies, but certainly too you have a hardware component which is probably eight to ten times. But when you get into services at 25 times, a blended multiple at 17 times puts you 240 on this company right now. That to me is not a stretch. I think were getting to a place where the predictability and then we have the Service Offerings coming down the pike i do think that the apple news i think that the apple music live and some of the things that will mean something for services are excited. When you dream of blended multiple are you doing hardware will be about threequarters and you have to and that comes outto you have to be weighted. What i think is interesting is the guidance. This company, they do care about their earnings and what they project. They really do seem to, right . This to me seemed a quarter that was not that important it wasnt a makeorbreak quarter i dont think. For them to put out strong guidance like that, they must feel very secure in that guidance thats sort of interesting to me so i think that, you know, the 5g transformation is really going to be the story for a while. Im long i like it. It is not a huge position. I think this is theres a lot to like in this here the call, lets hear some more color and some nuance, but theres a lot to like here certainly enough to stay long at the moment. And the other two wild cards come down. You mentioned last night, you know, what is going on with the situation with the china deal, which if you look at President Trumps tweets today an indication that maybe were not as far along as the market would hope the market doesnt seem to care, by the way, thats number one. The whole doj thing, i dont necessarily thing that apple is in the crosshairs but they could be Collateral Damage i think the ones that should be worried are amazon and facebook and, quite frankly, both are trading that way post earnings but apple might get caught up in the crosshairs of this as well. Well, Services Growth as a percentage of revenue as you rightly point out, does it make them more of a target for any sort of regulatory action, particularly when theyre the headlines in the wall street journal, for instance, the app store when you do a search, you know, most of the top search results come back apple apps that are revenue generators for the company . I think that apples approach to services and hardware is one of enabling technology and enhancing experience for the consumer im sure it is taken straight out of one of their advertisements but the bottom line is when i look at their Services Business the only place i think theyre vulnerable is the app store has been seen as a place essentially trying to crush alternative avenues. But i think the Developer Community is really the one that is going to have the final say on that, and a lot of people have said apple has just been suffering because the Developer Community is looking for alternatives that alone will solve this issue. It is not enough to push apple close to where the other guys are in my view. After hours sessions high on apple, 4. 6 . Lets get to loup venture founder and fast money friend gene munster what is your initial take . Credit to apple they proved once again the critics wrong, you go down the line, whether it is revenue, china, wearables, profitability, the guidance, all ahead of expectations i want to put a finer point on the guidance if you take a typical beat that implies theyll grow revenue by 2 in the september quarter, that will be the first time in threequarters or four quarters or first time in a year they will have grown revenue but it is beyond the september quarter. The real tell here is if we start to fast forward into december, the comps get much easier so i think this is going to be a turning point to the stock given how easy it gets for the first threequarters of next year and separately 5g coming it seems to be clear sailing i suspect theres going to be a lot of analysts who will be ringing their hands over what is the proper multiple for apple and this multiple will continue to inch higher in the year to come. We were just talking about that as well, gene tim was pointing out if you do a blended multiple, you take the hardware multiple, the services, multiple what do you come up with i think a reasonable multiple would be somewhere between 20 and 25 times so lets pick that midpoint. As a blended, as a blended . As a blended as an overall multiple im basing that on if you just think about what the Sustainable Growth is with the buy back, you should have a growth similar to googles growth will be. Thats a similar multiple where google trades at if you think of apple as just a consumer staple, think about Companies Like cocacola i realize it is far outside what a typical tech investor thinks about, but that trades a declining business that trades at a low 20s multiple. I dont think it is a stretch. We will have a camp that will preach religiously this multiple cannot break out of 15 times, but, unfortunately, if you look at the roadmap for the next several quarters, ill put a stake in the ground and say it will be easier for apple for the next call at six quarters. I think it is an interesting comparison to cocacola. Many would say and argue that coke shouldnt be at the multiple it is trading at right now and should be lower. Putting that aside, gene, as we enter the Conference Call period, what are the outstanding questions on your mind i think i want to learn more about why they guided up again, that 2 guidup was in the face of a tough comp the comp in september of 2018 was plus 20 , so i would want a better understanding and specifically about some of the changes that theyve made in china. China was one of the big positive surprises, down 4 year over year, versus down 20 in the marquardtech quarter in liptons interview, tim cook talked about some of the changes they made in the policy. I want to talk about sustainability of the changes. There could be a risk nonetheless in terms of the Regulatory Environment and, lastly, how theyre thinking about 5g. Thanks. We will check back with you later on where is apple heading from here we will turn to the charts and chris is here to break it down why dont you head to the plasma. Yes when we look at the response after the hour, it speaks to how low the bar was heading into it. What we want to focus on here is one number, thats 215 stock trades 218 right now so were through the key 215 level. When we zoom out and look where the stock has been over the last couple of years, that level, 215, has been the midpoint it has been the line in the sand no price progress made on apple for the better part of the last 12 months. What we had was a 40 decline here, we had a 20 down market there. So how does it respond to here well, if we look at the chart with some lines, were now pushing up and out of this resistance thats been in place for the better part of the last 12 months, getting up through 215 we think you can certainly make a run at the old highs of 233 and maybe challenge the 250, 260 range. What i think is compelling about the name from a sentiment standpoint, these are the buy ratings on apple right now you have the fewest number of analyst buy ratings really in about ten years. So the bar was low going into this i think the response of the stock certainly reflects that as well so what else can we own that captures this team how about things that sell into apple, anna log, adi, great example. This was a stock that peaked first. Frankly it bottomed first late in the Fourth Quarter last year. It is making absolute highs, relative highs semis have been very strong. We think it is the leader within that group i would highlight micron as well sells into apple a stock that peaked early in 2018 before apple did. It bottomed first. It has just started to break out above that really important level, about to make new highs here so when we look at the message from apple, i think that it says or i think it speaks to own the ecosystem as well, micron, adi, all speak to that. Chris, why dont you come back over to the desk here and lets stray lets trade this ecosystem it has been tricky to own the suppliers or view the suppliers as any sort of indicator for apple. Where would you stand on this . This thing in apple, if you want to own apple i would just want to own apple. Make it simple. Adi reports i think on august 21st. I think piper raised their price target to 135 or so. Not a cheap stock. 22 times forward, 30 times trailing however, what chris just said, i mean it is a stock given what apple just said that might continue to rally in their earnings once again, if you are looking for a name that might have some tail winds into their earnings release, adi might be the one. Lets get bash r back to josh lipton with more news on apple josh. Reporter some news on the apple card cook saying it is being beta tested by employees right now and the rollout will happen in august no hard date here on the call cook is offering, but he says it will happen in august. Of course it is his highprofile Credit Card Partnership between apple and goldman and another service for the iphone maker, melissa. Thanks. Josh lipton with an update it looks like a rollout sometime in august. Will it help the Services Business it is incremental it wont be a game changer, but when you look at what the offerings are, these have not been part of the service numbers, and theyre Getting Better and better. On wearables, it says over 75 of the people buying an apple watch were buying for the first time wearables, again, is a multiple i think is very important for services because it gets you into health care and into all of the components that tim cook, i think really are the things he is driving at apple and i think it is exciting. I want to get back to the point gene was making that i thought it was interesting about the valuation of apple, and comparing it to another company and he said cocacola. Would you make that comparison i can understand what gene said i wouldnt make it but gene is the analyst, im not he said somewhere between 20 and 25 i can play the math game as well if you give them a 22 multiple off next years earnings, which i think is 12. 5 or so, you are talking about a stock going from 270 to 275. I think it is probably in terms i dont want to speak for gene, but it is probably right within nhis crosshairs for the name. It is hard to think about in history thats been this important peak with a multiple of 17 times. Go back in the annals of history, you cant find reasonable valuation in the market tops. Did owny ever when they were hardware king . If you look at the valuation of japan in 89, they were extreme. It is hard for us to fathom it is a market cycle top or apple top with a valuation at 17 times. Everything related to china is acting better. I think the message from apple confirms that as well. Well, first of all, the install base continues to grow as you get into it was an announcement from the quarter. It is very bullish if you want the Consumer Product story and talk about it as a ctp company, if you think about where youre guiding the hardware it gets back to so nokia, you can make an argument, used to be my girl, it basically traded about 14 times multiple in its heyday so when people are doing their blended multiple on apple hardware, theyre not going at a 14 theyre going at an 11 and theyre going at, i think, a much more conservative. You wanted eight. Well, the most important thing that has not been talked about is the financials, the Balance Sheet. The ability of this company to grow earnings independent of some of these dynamics is going to get you at almost a 15 . All right we will check back on apple as tim cook gets under way on the earnings call. Still up 4 here theres other news outside of apple. Amd and fireeye down big on results. Plus, we have results. We have headquarters listening in with the biotech. We are live from the nasdaq in new york city, fast money. Much more right after this welcome back to fast money we have an earnings alert on a pair of biotech games, am again and gilead moving in the after hours. Lets get to meg with the details. A lot going on. Well start with gilead, that stock moving a little to the down side in the after hours, down just a fraction there getting some wall street reaction right now as the call is going on. Michael jeffreys call it the big bang theory, rereferring to a drug that Beat Estimates in the quarter. Seeing guidance. Brian skorney says it looks really vanilla Corey Kasimov says what everybody is thinking, that the new ceo, his commentary is what folks will be focused on lets talk about am genergen is quite a bit. It is something theyre talking about in their slides and on the call wall street reaction Brian Skorney pointing out in the quarter neulast declined faster than expected Corey Kasimov notes enbrel was the biggest beat umer raffat pointing out by far the biggest discloeshier earnings is on the kras inhibitor. It is a pipeline drug probably most important in their line, it is for cancer. They disclosed more on this than we have seen in other kinds of cancer, so thats why the stock is probably up. Meg tirrell, thank you. Guys neulasta, the street was at 900 million. His to his torically, it was good they didnt raise the lower end of guidance, not the upper end maybe it is disappointing. Now people are saying wait a second, they might have a cancer blockbuster drug potentially, and you look at keytruda when you want to see what can happen with a stock like merck. Then look at the valuation at 11 times earnings and say it is too cheap. Too cheap is what we say about the mega cap biotechs and we have been saying it for a long time. I was saying it for a long time about gilead which was a position i held for a while and vacated. Hiv was pretty good. Hvc was very good but we are still listening to dan oday or some ceo or whoever it has been in the past talking about what theyre going to do on m a it is a company that is a deal away it has 30 billion in cash and it is a case where you still want to know what is going to happen. I think it is too hard here this is a group thats not a leader, making new relative lows versus s p amgen every time it rallies sales at a lower high. Until you get back above the 180, 185 range play prudently. If you are trading long, use the stock at 173 that has to be the line in the sand in a strong market is this what we want to do, picking losers . I think this is too strong. You have democratic debates tonight and guaranteed the cost of drugs is going to come up. In the crosshairs for sure. I dont know if for another year we see that and even if ultimately nothing happens, still, for a year you could be facing big headwinds. Coming up, shares of apple touching after hour highs as tim cook said in the after hours Conference Call. We are counting down to the rates decision, with the fed triple play. Im melissa lee, you are watching fast money on cnbc. Must more fast right after this weve got a news alert eamon javers in washington with the information. South korea reporting that the North Koreans launched several identified objects, theyre not calling the objects missiles just yet, off the coast. At this point not clear what happened off north korea, but it looks like this could follow on last weeks Missile Launch when we saw the North Koreans launching several ballistic missiles, shortrange missiles off their coast that splashed into the sea at that point last week President Trump said he was not concerned about the shortrange missiles said it is fairly standard stuff for a country to do and said that his relationship with kim jongun, the north korean dictator, was still on track and seemed optimistic about Ongoing Nuclear talks. Now though the south korean media is citing south Korean Military sources in saying that the North Koreans have fired multiple projectiles at this point no indication on what exactly it is that the North Koreans might have fired off today, melissa. Eamon, keep us posted thank you. Eamon javers in washington once upon a time this would have been a marketmoving event i dont know with the fed tomorrow, with earnings here, were in the thick of it is it . I dont think it is i think it is all about the fed right now. I think, you know, the relationships in asia are actually better understood and some of this, i think theres a not more attention on how much is showmanship and how much is real. All right back to earnings here. Two big movers on our radar in after hours session, fireire and amd down big we have full coverage on both names. Lets begin with rahel solomon and fireeyes big drop. Reporter the Security Firm getting pummelled in after hours, down 14 . But the results were mixed revenues were in line with expectations what were seeing here though is investors react to guidance after the company lowered its Third Quarter and fullyear projections, the company saying in part they were encouraged by billings in the second quarter, especially an increase in new sales and broeggrowth and managd services but they suffered greater than expected cost in expenses related to cloud hosting which negatively impacted the growth margins. Fireeye has been moving to more of a subscription base model to try to increase top line and Profit Margins traditionally it sold hardware boxes to detect software threats. They are saying as they move to the new model they are incurring greater expenses and lower guidance because of that again, that stock down in after hours about 13. 6 . Back to you. Rahel, thank you. Rahel solomon at headquarters. Look, it is a mixed bag in terms of the sector overall when you look at the cyber stock. When you look at a name like fireeye versus a cyber arc, you are looking at two different pictures i think the question is fireire a read in to the names that were better it failed where it should have at the downward sloping through the day moving average, so a weak rally in a weak trend getting turned away there. I think the big test will be how does cyber arc respond to this, fortunett respond to it. Theyve been leaders in the group. Is it something more serious, we will find out. More reaction in cyber arc and fortnite either, guy. If you want to go forward palo alto had a nice run up at 200 but not close to the highs we made earlier this year. In terms of fireeye real quick, it is all about valuation. You look at this now with the lowered guidance and say, wait a second, how is this stock trading close to 50 times next years numbers probably doesnt deserve that, especially now as she just mentioned Gross Margins and operating margin goes are getting whacked. Thats not a good sign. I have the feeling crowdstrike is the it girl in this space that fireeye used to be and used to trade at. Yes. Or cisco. I actually think if you want to buy a cybersecurity stock, buy cisco. Theyre right in on the enterprise, it is the company best prepared to win this battle with that competition. Lets get to amd. That stock is off. It is after hours low. We have more on this with Bertha Coombs on this. Reporter the guidance is a bit soft and the ceo says they appear to be at a significant inflection point. They launched new chips and she says they are well positioned for Significant Growth in the second half. That said, when they talk about the guidance, they are expecting lower than expected or at least than what they projected semi custom chip orders as a result theyre lowering their guidance a bit theyre looking add the guidance for growth for a full year to be in the mid single digits, about 5 growth. The street had them a little bit more than 6 growth, but they are saying their margin will be a little stronger than what the street were looking at at about 43 or so. One of the things you have to look at this stock is that it was kind of priced for perfection it gained 23 gist from the last quarter and it is up 83 yeartodate before what were seeing here this afternoon, making it the second best chip performer in the group it is also within about 3 of a new 52week high so youre likely to see some profit taking. The call is about to get under way at 5 30 eastern time here. A lot of questions about what exactly theyre seeing in terms of softness. Keep us posted, bertha. To her point about priced to perfection, there are Great Expectations it is a name gaining significant share from intel. The expectations were high into amd and not so high into amd look what we got. You had some sizable ramps in comps attached to this company and nods we know there were new products and there was competition on intel no one thought was there from amd at this point i dont think it is a surprise. I wouldnt chase it at you will. It was 16 bucks on christmas heave. I think it is a pause in a good trend. It is near the 50day average. I think it is a good level to add exposure here. It is a good chart and maybe the best group i would be adding on any weakness. I dont think the i dont think guidance was that disastrous i think to everybodys point it ran a little too far maybe too fast buff i got to tell you something, seems to be catching up some steam. It was up 1 during the day. I mean it wouldnt surprise me, given what we have seen and given this tape, if this stock actually traded higher tomorrow. It is something to watch i think. Really . One thing pointed out is chips for gain consoles being a little weak. I dont know if theres bleed through to that or it is a market share thing or a weakness in the space. In gaming yes. Interesting one all right. Amd down 2. 8 . Up next it is back to apple. Ceo tim cook speaking on a call. Gene munster has been listening. He will give us the final grade on the quarter straight ahead. Under armour handing in the worst day in two years one trader on the desk says it uld be the perfect buying opportunity. Stay with us much more fast right after this quick break every day, visionaries are creating the future. So, every day, we put our latest technology and unrivaled network to work. The United StatesPostal Service makes more ecommerce deliveries to homes than anyone else in the country. Zblenchts welcome back to fast money shares of money trading near after hours session highs after Earnings Results we are getting fresh comments from apple ceo tim cook. Lets get to josh lipton for the details. Reporter tim cook on the call talking more about services and wearables, pointing out in a new stat here if they combine the two they would approach the size of a fortune 50 company those are two big initiatives under tim cook wearables he points outgoing well over 50 . Said if you tally the last four quarters wearables saying wearables would be bigger than 60 of companies in the fortune 500. Here is cook talking more about the Services Segment take a listen. Whats more we had double digit Services Revenue growth in all five of our geographic segments we surpassed 420 million paid subscriptions to services across our platform and we remain on track to double our fiscal year 16 Services Revenue in 2020. Reporter and we know more services are on the way, apple card they just said will be coming out in august no hard date there, but also arcade, the gaming service, and the new Video Streaming Service, too. Pointed out that the end of the quarter with 211 billion in cash and a net cash position, he says, of 102 billion back to you. Josh, thanks. Josh lipton. Lets bring in Loup Ventures founder and fast money friend gene munsters. Highlights to you of the call . Melissa, just the power of the ecosystem, wearables growing, apple pay growing faster than paypal i think when you listen to the call and you are caught up in the details and miss the bigger point, this company is a cash machine. It generated 2x the cash that amazon and facebook did combined in the june quarter and continues to tie all of these together, power earnings faster. Really there wasnt one kind of key takeaway from the call tim cook did mention to expect several new products coming. He kind of had a little laugh when he said that. I think he was talking about more than the iphone so there may be a small incremental product. Really the Bigger Picture here is this story that i think gets largely missed by the street really it is resonating for me today. I think when you put it all together, im going to come back to something we talked about in the earlier segment as i listened to the call i think that shares of apple are simply going to get a more appropriate multiple in the next six to twelve months i think as investors start to appreciate this more whollyistiholistic view and put it together and call it a 15 number, thats a 350 stock i think you will see a lot of analysts over the next three to six nonmonths start to rethink their multiple on apple. Outstanding issues so far, gene, have we heard about the Regulatory Environment or china or 5g . None of that. It has been mostly prepared remarks and talking about some of the points josh talked about. None of those points. Im going to ask you this and it might be premature because we havent heard probably about the most important issues for apple, but the grade for the quarter so far, gene . Melissa, im going with an aminus. Oh, man. Agreed. The reason i didnt give it an a, some people would advocate for an a an a is something special, when you are just blown out of your chair it is the numbers you just cant wrap your head around, but an aminus is just that it is still an incredibly good, partly because of the profitability, partially because of the raised guidance they talked about on the quarter. Guidance would have been higher on the quarter if not for a 1 billion fx headwind. So this other piece that is going to get easier, comps get easier in december and into next year so putting it all together, this is an aminus. You have to appreciate gene doesnt inflate. I tell you what. Because they would be meaningless. I think he heard some of the talk in the dorms was actually it was a class he wanted to sign up i mean this company couldnt well, this company i think did what they could relative to expectations thats really the story. Gene is rightly pointing out where comps were really challenging here and the fact they delivered back to the metaphor we made about coke and what not. How about the metaphor or extension of that to disney and talking about the multiple that now disney look, disney waited a long time to get a streaming multiple, right . Or maybe it is getting there, but we certainly know it has rerated since they released their streaming service. Theres no question that apple can follow that path, and i think it is what gene is talking about. We do agree with gene on the grade of aminus. Aminus you know, we were told gene had the headphones on so he couldnt hear us talking. I said, i bet you gene would give an a and he didnt. See, to me his description of blowing your socks off or out of your chair, thats an aplus so this seems to me an a fortunately for myself, i think maybe mel actually, mel got it. Well, theres a disconnect. Aminus, melissa is like, wow, thats disappointing im surprised the stock is up. Wow. Are you kidding me . Im calling home. Gene, thank you thank you always good to get your analysis gene munster of roLoup Ventures. We do have a lot of the Conference Call left to go we do have some big issues that we need to hear about. Listen all of these great things we all talked about great things i would like to point out what could potentially go wrong we talked about a few. The other thing that potentially could go wrong is, again, we are getting towards levels as chris pointed out, towards we saw it last summer in august does the stock blow through there . Does it take a pause there it is reasonable to think in the environment we find ourselves in it takes a bit of a pause. We saw it with facebook recently and we saw it with amazon recently so it is logical to think we night see the same thing happen in apple tomorrow. The way gene set up the rest of the year in terms of the quarter, i mean september they raised the guidance as you pointed out as well, december the comps get easier this is almost a glide path to the refresh of the 5g phones next year. Yes, well, you were talking about that yesterday okay do people give it a pass on an okay quarter if that comes up . Because 5g is just around the corner. I dont think 5g is anywhere all right mull president i multiple needs to be higher. But if you look at what gene said, the point is a lot of analysts have a hold or sell on the stock that have to upgrade it here. Of the 48 analysts that cover it, there are 25 holds or sells, the lowest number in about ten years. I think you have to see the upgrades come up here. Is it faang in the extended faang. Aa. So clearly we had a reshuffling of the faang leadership in the last two weeks if you look at what has gone on with apple and amazon, but google relative to the other two, and look at netflix which is under a lot of pressure despite the fact they are talking about impressive new content span, or maybe thats the issue. The reason i mention it is because what chris is talking about is where the street is positioned on the stock and they are not overly bullish i think positioning has not been overly bullish i think you have to go there. Coming up, just over 20 hours away from the fed big rates decision one trader just made a 2 million bet that the fed could throw a giant curveball. We will explain. First, shares of under armour getting kicked in todays session. It is now the perfect time to get in our traders will weigh in. Dont go anywhere. Much more fast right after much more fast right after this unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. You wouldnt settle for a twostar dentist. So why do you stick with a bank that treats you like this . This is nice, how much . 50. 40. Deal. Please see if theres better out there. Ask the internet ask your friends. Ask your coworkers. Were pretty sure theyll send you over to us. Because were not just a bank, were an ally. [phone ringing] ally, this is pamela how can i help you . Bell come back to fast money shares of under armour getting dumped into todays session, the stock having its worst day in almost two years after the company sliced its guidance. Todays move wiped out all of julys game but still up nearly 40 as athleisure continues to run higher what does under armour have to do to get on track, karen . I didnt think the quarter was that i mean when i saw it was absolutely getting obliterated, yes, a lot of things were to not like, there were some things to like as well footwear was actually decent north america obviously the big problem with down and, you know, the guidance not being what the street hoped for the main problem here is this turn around, which i do believe is under way and i do believe is getting traction, the stock is priced for this turnaround to be fully implemented successfully and see further acceleration, which were not. So it wasnt that bad, but i still think the multiple here reflects a turnaround that is not as far along as it should be. I think it is worth a shot buying into weakness on the long side here. Listen, went to bed last night, it was a 27 stock, wizards inside access woke up this morning and it was 22 where it bounced right off the 200day moving average, it is the fifth time this year it had a 200day and had a rising 200day. When you see the big turns play out, it can be a sloppy process. This can be part of it i would take a shot buying it on weakness, use the 22 as a stop. But the turn in the company from Management Changes galore on down to repositioning in north america i think takes a lot longer i think the stock got so far ahead of itself both on valuation and in terms of what you can expect, north america is bread and butter and we are contracting in this quarter. I dont think anything to get excited about. Also, i mean under armour was everything a decade ago. I mean how long is it now . T. J. Maxx thats where i buy my under armour, and im buying because it is not cool. If pedro was here he would say the same thing if you find it at t. J. Maxx chances are margins wont be great. I still think it is for the down side. Up next, a fed triple play. How to trade banks live at the nasdaq in times square much more fast money still ahead. Im off to college. Im worried about my parents retirement. Dont worry. Voya helps them to and through retirement. Dealing with todays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. We all feel, we all love, we all cry. Its part of being human. Sonoma county declared a homeless emergency in 2018. You have to know the individuals youre serving 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. You want a war youve got one. [ psa by jay z ] were never going to survive their firepower. Were going to need cars. And guns. Oh i can handle that part. I got your back brother. And me yours. [ laughing ] [ screaming ] i love this song, dont we the countdown is on. We are just over 20 hours away from the feds latest decision banks, builders and gold, so lets dig into each one starting with the banks financial etf sell off moving lower ahead of the fed they have been acting pretty well quietly and without race moving you have tenyear yields on either side of 2 for the last month. Quietly bank of america up 30. Jp morgan pushing up against the 119 level, thats been a big level for the last couple of years. When you look at the group, you have more banks above their 200day moving average right now than at any point over the last 18 months. The internals are good. Jp morgan has not been getting the love it deserves in the last call they talked about three fed hikes, 25 each so maybe that doesnt happen dudley today would say thats not going to happen. Dudley, definitely. Right so if we have fewer than that, i think you will see upside to jp morgan im long jp morgan, bank of america and citi bank. Lets get to housing. We have home sales data that was better and also some good earnings out of the sector guys. People point to the homebuilders and say valuation makes it compelling. I think that theyre bouncing. You know, these stocks have been difficult for a couple of years and you have gotten the bounces. I think you will continue to get them over the next couple of days but settle into them if you want to playhousing. We said it for a while the only place to be is home depot. If you remember a couple of weeks ago dan nathan who was sitting on my right that night talked about massco where we play fade it or trade it. Thats right. Even dan said trade massco. He would buy massco in other words. That was a wakeup call. It is like when mikey likes life cereal. You heard what happened to mikey, by the way . Popped rock Everybody Knows what happened. Homebuilders, please. I think the insensitive for homebuilders gave them a pop the question is do you think we are going to 175 on tenyear i think for homebuilders part of the issue has been their operation, their capital efficiency i think there are structural issues in the Housing Market period, and i dont think lower rates are a pan see au for thact i agree with these guys on jp morgan. Lets get the trade on gold and my khouw has it in options action. Hi, mike. Hi there. We are looking at xau which is the fill ex gold and silver index. This index, base call all of the constituents represent all of the gold and silver miners it traded more than ten times its average daily put volume today, and that was a result of a single trade, a purchase of 20,000 of the august 87. 5 puts for approximately 0. 90. The buyer of those puts is obviously making a bet that goes xau could drop below the 87. 5 put strike at the price they paid that would represent a 96 decline in over two weeks when they expire two weeks from this coming friday. How do the charts look on gold i might take some profits here it is a goodchart. We know it is a good chart, but everyone knows it is a good chart. It is probably one of the most talked about topic for the better part of the last couple of months. When i look at the market here, notice some real economy stocks are actually breaking out. Parker hannafin, enp do i want to old gold when you start to get some real economic stocks acting better thats the pushback here. Im of the view you cannot price the fed more perfectly than what we have going into tomorrow, meaning theres room to the down side gold will suffer you look at europe and realize germany had serious deflation in import prices. You look at the european markets, most had the worst day all year today that to me is an environment that ultimately is a goldfriendly environment. I think it is under pinning a lot of the move in gold. Mike khouw in san francisco, thank you for the options action. Full show, friday, 5 30 p. M. Eastern time ahead of the fed though quickly, i would like to look into the crystal ball i brought mine with me. Glad you said it, although the music is playing if mike is right in terms of this gold move to the down side, maybe the gold market is telling you the fed is not going to be nearly as dovish as the Broader Market might want them to be. Not nearly at dovish. Im not saying that, but maybe it is the one cut it is like the first cut is the deepest. Baby, i know. Maybe thats what the fed is saying. Cuts like a knife but could cut like a knife and feel so right if we were quoting, but who would do that no one would. Next up, final trade options action is sponsored by think or swim by td sponsored by think or swim by Td Ameritrade yeah, i totally agree, they dont have any of those. I want to know what im pa. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Welcome back to fast close to the highs of the after hours session for apple up by 4 and a third percent. This quarter guidance in a major feather in the cap for the bulls. Like many pieeers yelling fire n a theater, but we will see if it sold you said above 15 . Above 15. Challenge the 233 highs and own it there. I think two things. Pump under appreciate the Balance Sheet and the ability of what they can do on the financial side, and i will go back to i will say it again my disney metaphor, we knew streaming was coming and yet it took actually for a certain follow through to see it go to the next level i think with disney with with apple and services the multiple needs to go higher. It is time now for the final trade. Lets go around the horns. Tim. Let me continue this story. I think at 17 times you have a 240 stock right now take chriss technical and say it goes higher. Cles verrone. I want to own ge. I think it is 12. Karen finerman. Yes, the airlines i own, but American Airlines has been sort of the laggard of the bunch. American, delta, united. You know, obviously the 737 max is somewhat problematic but it is not the end of the world here, and yet it is priced like things are really bad. Theyre not. The traveler is still there. Consumer is there. American airlines. Remember the stock draft, Noah Syndergaard was the thing to see. Oh, yeah. And you are going to love you will look great in yankee pin stripes. My question before final trade is thor a met this time tomorrow yes or no, melissa yes. Yes, he is. Nice job, mel. Mckesson after the bell tomorrow goes higher. See you back tomorrow at 5 00 for more my mission is simple, to make you money im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now [ cheers ] [ applause ] hey, im cramer welcome to a special summer in the street edition of mad money from the heart beat of the market, th