Im melissa lee coming to you live from a brand new set here in studio b at the nasdaq. On gorgeous set here. Unbelievable. Amazing. Like on a new rocket ship. Were going to take off at any moment. Exciting. Awesome. They did an amazing job. We get to sit here and enjoy this beautiful set, but this is eight months of work from our crack staff back in ec. And the folks here at the nasdaq. Theyre the ones that should get all the praise here. With that said yes. The sound system in this place kicks ass. We easy, come on. It does. You had to do that on the first day. Family program. Commercial breaks are fun. They always are. The show is going to be even better with the brand new bells and whistles we have here. Well show them to you as the weeks go on here. We start off tonight with rates resuming their run higher. The yield in the tenyear treasury hitting twoweek highs after the recent pull back. Climbing back towards 5 this is putting pressure on stocks to start the holiday shortened week. The dow falling almost 200 . Crude at a tenmonth high after rising 1 today. The move higher coming after russia and saudi arabia extended supply cuts until 2024. The dollar also higher with the greenback at its best level since march. So, what do the moves tell us as we head into the fall . So, lets get this straight. Rates up, oil up, dollar up. Guy . Stocks should be down. And its great that carter is here as, but last week, he showed us amazing charts. Two, fives, tens, and 30year yields, bouncing, trading up to resistance level and failing. But here we are. I think the story is rates. Tenyear back above 4. 25 is a big deal. Oil going higher, tim can speak to this, is a big deal. Both of them going up, well, at least yields, for the wrong reasons. Yields are not going up because our economy is magically getting better, because i think you have to pay people a high rate of interest to buy our debt. Thats problematic. And the dollar is fascinating, because you can make an argument this was the most crowded trade, short dollar, a lot of pain here, or at least a lot of people wrong on this trade, including me. I just i feel like the dollar, if you look at central bank differentials has to weaken at some point. But the most telling thing about this market is that, yeah, i get all the underperformance weve had in some of the more cyclical stuff. Big tech is leading the way again. And if you look at a chart of the outperformance of the semiconductors interest, the smh, its a chart that most people would want to buy. If you look at this chart, thats a tenyear chart on this thing. You can see that even through this most recent move, and weve had some rockiness over the summer, as long as semiconductors and qqqs are leading the market, the market is going to go higher. It may not be the strength that people want to see, but weve had times to test that over the summer. Until that end, the market is going to go higher, despite what yields are doing. Karen . I think the yield thing is really a problem, actually. Not to disagree with tim, but i think that, to your point, supply, rather, thats government supply, which weve talked about, theres a lot of corporate supply, so, you have pressure on the curve, and then, obviously, we talk about, you know, its just math, right . As rates go higher, then the high multiple stuff should get cheap e. I think thats going to happen. The other thing really was home building, which, well get to more, but this is just i do feel like it hit some sort of point. Actually shorted some today, the xhb, just as a broad, you know, its Home Builders and Building Materials and stuff like that, because i do think were actually now, with the pressure on the consumer and housing prices where they are, and mortgage costs where they are, were at a little bit of an inflection point. A Consumer Problem as we head into the holiday spend. Student loan repayments that got started again, people just paying higher Interest Rates across the board. And if they cannn their home if they do, you know, hit a speed bump here . You say the rates have capped . Yeah, im in the camp that even if they were to make slight new highs here, youre not going to have an important move. But what is remarkable about this strength in the dollar, you have sugar breaking out to multiyear highs, george juice, cocoa, and crude, with stroong dollar, ignoring it completely. To some extent, an inflation thing, is important. We shall see about rates and how much more they can go. Its fascinating you are getting that move in krufld. Ev i get that opec is and opecplus is showing some accord. I would just point out two things. I dont love megacap tech because of multiples or anything. I think the markets are looking very topee, and i think theres major diverse jens, all the things we talk about. Im just going to say in a world where were challenged by growth and higher, you know, higher rates are going to hurt a lot of other companies. Megacap tech stocks once again are the ones that tend to outperformance at the same time, we were talking just three, four weeks ago about the bredadth in the market. Tr those moves today were pronounced. And they show you how the market is going to react to higher rates. The move in the qs, remember, its outperformance, but its making up underperformance. The qs are still underperforming the market, so, go back to october of a year and a half ago. Meaning, this big move is simply making up for the losses proceeding it. S p dropped 27 during its peak, qqq dropped 37 . We are still undoing that. What about the fact that the semis, to me, again, on a relative basis, are right back up near that high . In other words, there have been a couple periods of underperformance, but basically near alltime highs against the s p, and that, to me, has been kind of the nitrous part of the qs trade. For sure. Or this, the biggest tech of all, apple, its relative performance to the sector peaked almost a year ago. It was september 30, a year ago. Apple, the biggest of all. So, does that i mean its not all tech, right . Apple dropped almost 18 recently. It has bounced, but the peak to trough drawdown, the market was only down six. Its case by case. The question is, is it right to favor tech from here, because its all about from here, or not . My hunch is, i dont think tech is an overweight at this point. I would be equal weight or under. Weve heard a lot of people for a long time say, dont favor tech. The multiples are getting too high. The trade is too hot. You nknow, the run is too steep and this is where we are. This seems like the sector you want to be in yeah. Its pretty incredible. Tim makes a great point. The smh, if you want to use that, made an alltime high november 2021. Sold off like everything else, got back up there at the end of july, and we looked like we put in a classic double top. Sold off on the back of nvidia and here we are back at 157. That is absolutely worth watching. Ill trial toy to answer your qn and say, at a certain point, i think youll see a rotation out. And energy is going to be the beneficiary of all of this. You were saying its a problem, high rates are a problem for the tech trade, so, are you starting to pare back . I sold some nvidia and sold some calls, but i think that we talk about, things arent necessarily a monolith. I think google and meta, its in the tech trade, but its not near the multiple i mean googles of the megacap techs, googles taken over leadership, youre right. So but im not going to trade around it, if i still really like the story, which i do for google. It is 23, 24 times, but im sticking with it. Our next guest sees a bullish move in the bond move. Savita, great to have you with us. Welcome to the new set. Lovely, yeah. Thanks for having me. First guest ever. Not an accident. So, what is that sign, that bullish the bullish sign in the bond market. Tenyear yields are rise, and i think everyones interpreting that, including myself, as a lot of different factors, like supply demand, a lot of supply coming online and meanwhile, china, the fed, boj, are no longer buying, so, thats bearish for bonds, but i think its also potentially a sign of something positive happening, which is that companies are now refocusing on efficiency and productivity, rather than boosting up earnings through levered baybacks and chief financing costs. What surprises me is that when you look at the equity risk premium and multiples on stocks, you tend to see investors willing to pay a higher multiple for companies that are actually focused on efficiency. And theyre companies are now finally focused on efficiency and they have new tools, they have a. I. , they have automation, so, i actually think there are a lot of reasons to be bullish about growth in the u. S. Rather than just, you know, yields are moving up and this is, like, death to equities, so the last time you were here on fast money, you said something to the effect of, im the most bullish ive been in forever. In years. At least since the Global Financial crisis. Because i think that what we know now is, maybe we dont see as strong of returns from here, but we see more real returns, and i think that were past this experiment of qe and zero Interest Rates, and negative real rates and all of this really kind of unnerving stuff that has been hard to allow us to actually value equities appropriately. Were now at a point where earnings are still positive, they, you know, were seeing companies actually, you know, focusing on labor efficiency, because labor inflation is showing up, so, i think were at a point where productivity, which is something that nobody really thinks about anymore, because we didnt really have it for awhile, thats act actually going to be driving the next leg of the bull market. Interesting, you talk about, no more free money, companies have to be more efficient, which is a great thing. I agree with that. But at what point, if any, does this lag effect of 18 months of higher rates kick in . I think its already starting to show up, but i think whats interesting is that if you look at the s p 500, this is not true for any other equity benchmark, companies have actually gotten very disciplined about leverage. And i think thats the lesson that everybody learned in 08, and even consumers have gotten disciplined. So, if you look at the u. S. Consumer and the u. S. Corporate, theyve basically locked in long dated fixed rate debt obligations. So, this is all going to be bad and net negative, but theres awhile to figure out how to grapple with this. And moreover whats interesting, if you look at sectors like industrials and energies and bee financials, companies that expand capacity during bull markets, these are companies that were denied capital for the last ten years, and have gotten very, very lean and disciplined and are now at a better position to handle a higher Interest Rate environment. So, i dont know, i look at the market right now and i look at the average consumer, and back in 08, there were a much higher percentage of homeowners that had adjustable rate mortgages. Today, just 15 of homeowners have adjustable rate mortgages. Which is a whole other problem, because now nobodys willing to walk away from their homes, and thats why we have this shortage of single family. So, you know, again, i dont think its just gravy forever, but i do think we have some visibility on what the fed is going to do. Theyve already done a lot of the hard work, or, you know, 5 on short rates. I think we should be happy about that, because that means we have some, you know, some some lalt lalt tuesday to ease our way in the next downturn. On top of that, we have consumers that are still relatively well capitalized. Maybe not as after they got a bunch of free money, but they have relatively solid balance sheets. Just to touch on something you said, which is about greater efficiency so come, right . We saw meta, i know you dont talk specific talks, but the year of efficiency, and weve seen it for a number of companies. But we havent seen it from a lot of others yet. Do you think that is a really meaningful amount of juice, i guess, for the market . Yeah, i think i think there is still a lot of a room to get efficient. I mean, i fully expect to be replaced by chatgpt or never. Or a robot at some point. Hopefully we will be. Hopefully not for awhile, i need to put my kids through college first, but i think there are there are aspects of corporate that can be made much more efficient through especially the services industry. Youre seeing this with rest restaurants. Our analysts on restaurants has been writing a lot about, you know, what the new kitchen looks like, theres a lot less people and, you know, a lot more o automation, i think theres room to do this across the board. That doesnt bode well for you, guy, the kitchen with less people in it. You like to cook i do. Im worried. He worked at shake shack. Pizza hut. Im all over the place. Please continue, i mean no, i do think its a longer term story. I think a. I. Is part of it, but not all of it. You know, i just think that weve had this wonderful period for the last 20 years where we didnt have to worry about labor inflation, we could just move stuff to cheaper areas of the world. And now were moving stuff back to the u. S. , but were thinking about how to do things, you know, how to do more with less, which i think is really bullish for margins, for multiples, i mean, investors are much more willing to pay a high multiple for a company that has improved their Operational Efficiency than a company that just borrowed a bunch of free money and bought back a bunch of shares. All right. Savita, thank you so much for coming by. Great to be here. Which gets back to apple, tim. Maybe apples multiple is warranted. I dont think it is. And i actually, you know, im one of these people that thinks apple is one of the Great Companies of all time and its a very easy company to hold, when you consider what they can do Capital Markets wise. But carter talks about it, what apple has done is a struggle, right, relative to the market . What apple and microsoft have done in the last three weeks is pretty impressive. Microsoft is back over the 50. Theres some sense that what looked like a real challenge straight down to the 100day is something we have to watch. I just think the biggest challenge with rates may be higher, may be more productive, but the market multiple right now is the biggest problem i have. Trading at 20 times. One thing gets down to also, of course, is money flow. We know theres 5 trillion in the money markets. As long as rates are going to stay here, i dont see what gets that money moving into the equity market. That is something that would help the bullish case. And for now, its not leaving, right . You look at were at record levels, i think it sits there. All right. Coming up, trouble in the charts . Restaurant stocks have been feeling a little heartburn recently, and the chart master spotting even more trouble in the kitchen. The names you may want to 86 from your portfolio next. Plus, shares jumping as blackstone and airbnb get ready to join the s p 500. What the move could mean for these names when fast money returns. But if its using unverified data, it could generate problems. Your business doesnt just need ai, it needs the right ai for your business. Introducing watsonx a platform designed to multiply output by tailoring ai to your needs. When you watsonx your business, you can train, tune and deploy ai, all with your trusted data. Lets create the right ai for your business. With watsonx. Ibm. Lets create. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to use predictive monitoring to address operations issues . We can help with that. Can we provide health care virtually anywhere . We can help with that, too. Is it possible to survey foot traffic across all of our locations . Yeah absolutely. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. fan 1 there ya go thats what im talkin about josh allen is this your plan to watch the game today . hero fan uh, yea. I have to watch my neighbors nfl sunday ticket. josh allen its not your best plan. But you know what is . Myplan from verizon. Switch now and theyll give you nfl sunday ticket from youtubetv, on them. hero fan this plan is amazing josh allen another amazing plan, backing away from here very slowly. fan 1 that was josh allen. fan 2 mmhm. vo football season is here. Get nfl sunday ticket from youtubetv on us. A 449 value. Plus, get a free Samsung Galaxy z flip5. Only on verizon. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Welcome back to fast money. Consumer discretionary may be one of the best performer sectors in 2023, but the chart master sees trouble ahead for one pocket of the group. So, carter, which pocket would that be . I thought we would look at restaurants, and we have several charts and we can just bang through them. And the point here is that restaurants versus retailers, versus all the stores, they have basically tripled the markets performance. Xrt, being the etf that captures a broad swath of retailers, versus restaurants. And you see it here on your screen. On a tenyear basis, again, the s p 1,500 restaurant, all of the names you know and more, 20 names, in fact, a tripling of the orange line, which of course is xrt, and thats every retailer you can think of. If we look at the actual chart of the restaurant subIndustry Group, we have three of those, it tried to make a new high and couldnt do it. One way to draw the lines. Another way, of course, is that weve broken the uptrend line in effect since the covid low. So, you put them together, the third of three, and what you see here is an Industry Group that made a double top, couldnt break out, and is now breaking below this trend line. There you see it. But lets look at striindividua restaurants, because they are doing the same thing. This was the get out of the house, go and eat outside covid story, and now all of these individual restaurant stocks are starting to break down. We can pull them up one at a time. But the first, heres darden, thats a welldefined uptrend. And that is a break in trend. And youll see the next, its the exact same circumstance. And so, weve got mcdonalds here. Same thing, a break in trend. And the relative performance is disastrous versus consumer discretion. Keep going. Weve got others. Three more, in fact. Texas roadhouse. It doesnt matter which one you pick. Thats the thing. The charts are all the same. We have yum here, i believe among the last two, wingstop, and then yum. And so, the question is, this area, which, again, tripled the performance of retailing in general, is it a champion thats now romming over . I think it is. Were seeing it in the casino stocks, all these experience stocks, the sort of get out of the house covid stocks are all on the ropes. So, mcdonalds, tim, you would think theres a tradedown effect that would help a name like mcdonalds in particular. Theres no question. And mcdonalds has invested massively in efficiency and novation and the things that have given them the ability, especially through covid, to take market share. If you think about the comps they had in the u. S. , 12. 6 in q1, 11. 5 in q2. I was slowly selling upside calls. I would like to buy it lower. I think im going to get it lower. Carter is making great points about that group. I think its going to be tough for the spend to look like it did for the last 12 months. Charter, when the charts are all the same, where do you t think where do they find support . Well, each one is different in that sense, but the question is, having had that much upperformance versus foot locker and you could pick all the ones that are similar im familiar with. Yes. But the point is, after having that much outperformance, is this underperformance still young and more to go, to your question. I think yes. How much more i have no idea, but i definitely want to be underweight or short the group. Darden, it is interesting, carter brings that up. Classic potential double top. Down big today on seemingly no news. Thats concerning. Valuation isnt ridiculous in the dri. Its not crazy for mcdonalds, either, historically. It is amazing that valuation hasnt caught up to my personal favorite cmg. Cmg. Only place you can go. When someone starts with that its remarkable that it hangs in there. Listen, at some point, somebodys going to care. Nobody cares right now about valuation. Well, you know, a company that executes they execute. Right . Thats what you pay up for in this environment. But when you are talking about a two x, at certain point 45 to 55 times is where its traded for the last four years, and i couldnt have been wronger its just this is one that continues to defy gravity. I think if the consumer gets stretched, look, this is a place that has to be weak, but wingstop. Thats 80 times, right . Is wingstop 80 times now . Thats rich. Its a you go there for one thing, but for wings. If you do that one thing great, i mean, maybe its worth it. I dont know. I have no idea. Youve been dont lie. You havent been to wingstop . No. But i remember interviewing the ceo the day of its ipo. No kidding. Yeah. Buffalo wild wings one time. We did. As a group. Buffalo wild wings and wingstop quick story . We have time. Tim ordered a drink. Remember . As i might. Yes. Sent it back. What do you think they were doing backstage in the kitchen . It was an awful margarita, okay . I happened to be and it was terrible. Sent it back. Anyway. Coming up, two new additions to the s p 500. Blackstone and airbnb moving up to the big leagues. But can the stops keep their gains coming . That trade is next. Plus, z scaler on the move after reporting results. The latest details ahead. Youre watching fast money, live from the Nasdaq Market site in new york city. Back after this. Morgan Stanley is partnering with the Womens Tennis Association to remove boundaries. because this game is for everyone. You were always so dedicated. We worked hard to build up the shop, save for college and our retirement. But we got there, thanks to our advisor and vanguard. Now i see who all that hard work was for. It was always for you. Seeing you carry on our legacy im so proud. At vanguard, youre more than just an investor, youre an owner. Setting up the future for the ones you love. Thats the value of ownership. Weve got your back, road warriors. Because we know youre picking up the pace, steering life at 10 and 2. Youre hitting the road. And were helping you get there with confidence. So skip the counter without missing a beat. Choose any car in the aisle. And be the boss of you. Go national. Go like a pro. The citi custom cash® card a different kind of card that automatically adjusts to your spending earn 5 cash back on your top eligible spend category up to 500 spent each billing cycle learn more at citi. Com customcash welcome back to fast money. Stocks kicking off the short week on a down note. The dow dropping 200 points. The s p 500 shedding 20 points. And the nasdaq down a tenth of a percent. Two big winners, airbnb and bl blackstone surging. That goes into effect on september 1th. And shares of z scaler giving back earlier gains. They beat on the top and bottom lines and gave better than expected guidance. Shares are slightly lower. Guy, which i mean, z scaler has been expensive. When nobody cared about valuation, the stock was off to the races. Now everybody seems to care. Its under pressure. Its a good company. Too expensive. Airbnb is sort of interesting here, actually. Again, its hard for me to say the consumer is rolling over and be positive of airbnb, but you can make a bullish argument for them, given where it was, given where it is now, and given some of the seemingly tailwinds they have. How does it look, carter . Yeah, its bottoming of sorts. My favorite of those three would be blackstone. Thats a welldefined bearish to bullish reversal, and i think thats the one to go with. When you get this kind of news about an s p inclusion, what does this mean . Has it been priced in . Blackstones had a pretty big move on that announcement, so it seems. Right, but if you look at it versus kkr, blackstone has been acting well. To your point, of course, an artificial move, or a newsrelated move has nothing to do with the operating company, is just that, artificial, and people have to jockey to get shares bought, because theyre index players. After that, it cools off. Coming up, drama in the streaming space. Disney pushing customers towards its hulu live plan. All the grievances from both sides ahead. And believe it or not, the fire has not gone out in pot stocks. We continuing to rip higher. What the options pits are seeing now, when fast money returns. This is cynthia suarez, cfo of gogo foodco. , an Online Food Delivery service. Business was steady, until. Gogofoodco. Go check it out. Whaatt . overnight, users tripled. Which meant hiring 20 new employees and buying 20 new laptops. So she used her American Express business card, which gives her more membership rewards points on her business purchases. Somebody ordered some laptops . Cynthia suarez. Cfo. Mvp. Built for cynthias business. Built for your business. Amex business. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Welcome back to fast money. Theres a case of the broadcast blues going around. Disney and Charter Communications locking in their battle over contract fees with espn and other channels, going dark for nearly 15 million customers over the weekend. Could this latest conflict be the beginning of the end of the cable bundle . Cnbcs Julia Boorstin has the details. Well have to see how quickly they resolve this, or if they do. Today, charter shares lost over 3 and disney shares lost about a half a percent, as these two companies negotiations continue. And charters nearly 15 million subscribers remain without access to disneys channels, including abc and espn. That means missing College Football and the u. S. Open. Djokovic playing today. Now, last night, disney launched a new consumerfocused campaign to push consumers to its own tv bundle, hulu with live tv. Charter is helping customers find alternatives to keep them from cutting the cord. Spectrum is offering customers 30 off fubo tv for two months, including the nfl red zone, as well as espn. That deal sending fubo shares spiking today, up nearly 10 . But the pressure is on both companies right now to settle in time for the return of monday night football. Thats on espn and abc, and it starts monday. Bank of america writing, quote, theres an out urgency for thes negotiations. The longer it drags out, the more customers charter will lose. If charter did end up losing espn and disney for good, that would have massive implications, not just for disney, but for the whole pay tv business. Not to mention the impact it could have on charters paid tv subscribers. Melissa . Y julia, thank you. Its hard to think about who is the winner, who has the leverage in this negotiation. You own disney i think disney does, but disney doesnt have a whole lot of leverage anywhere right now. You can figure out what percentage of the fees they would lose. It means disney loses 2 billion that they cant afford to lose right now. Theyre going to have to be bidding for nba properties, they want to pay a dividend. Theres a lot of trickledown dynamics for disney, and its not a win for them. No winner. Theres one winner stock wise, its netflix. Probably have a guy like tom rogers on to discuss it. Netflix continues to do the grind higher, and it is amazing how disney it is levels we didnt even see during the covid its remarkable how poorly it trades. So, youd like to think they have leverage at some point. Clearly that have none. If this is accelerating, the move to direct to consumer is fully accelerated and thats where we jump to right. Not i dont think very highly of it, actually. I sold my stock on friday when this first happened, i just thought, all right, i had hoped it would bounce off of that iger really talking down that quarter, and they had not a terrible quarter. Ill thought that was maybe the bottom, it wasnt. This, i do think, is a watershed moment, charter was saying, you know, this is not like other carriage disputes. And i believe that. So, i dont want to be long waiting to see how that plays out, because i think to your point, no winners. For more, lets bring in tom rogers. Hes the current newsweek editor at large and first nbc cable president. Tom, great to have you with us. Great to be here. Congrats on the new set. Thank you. We are loving it so far, 35 minutes in. I want to get back to this topic here, and tom, how do you view this . It does seem like this could have massive implications in terms of the future of legacy tv. How this negotiation goes. I agree with that completely. T to steal one of guys favorite terms, i think disney has gone from stud of the media space to dud. It did not need this fight right now. Its got so many deals in front of it that it has to do. The selling of abc, the partnering with espn, and now, it has charter to resolve. And its really hard to judge this company on any kind of metrics now. Its all about these deals and what it can do, and this is much more existential for disney than it is for charter. The thing to realize about charter and Cable Companies in general right now is, they used to be scared to death of these fights, because the programmers would always win and they would cull the programming right around Something Like monday night football and it would have to force a resolution, because the Cable Companies couldnt withstand the pressure. Right now, Cable Companies have become pretty indifferent to the margins on the video side of their business. Its all about the broadband business, the mobile business, but its not about the video business anymore. And thats why charters ability to withstand pressure here is a whole different dynamic. And so, yes, it could really be a watershed event in terms of the programming side of the industry, and have they lost their levleverage, if they have probably deserve to be rerated downward. So, this is really one to watch. This is sort of a glimpse of the future, tom, if you will. I mean, we all zo so many peo have been talking about the death of cable, the cable bundle, and here we are on the precipice. How do you think about the economics, if disney were to just go, you know, fast forward to direct to consumer what does that mean . You can walk us through the thinking . Yes, well, first, you have the issue of all Media Companies are trying to milk their legacy businesses to get as much cash as they can to support the development of their streaming businesses. And so, we all know about cord cutting. This is this is cord hair cutting. Meaning, even with the people who get the bundle, the issue is here, well, charter will have the right to take the biggest channel, espn, and distribute it to fewer people who have the bundle, meaning, lowering the economics coming out of the legacy business, having less money to support the development of the streaming business. Now, coming the other way, charter says, hey, we want all your streaming businesses for free. We want to include those in the bundle. Why . Because youve taken all the best programming off your linear channels and moved it to streaming, and yet, our subscribers are paying more than ever for the programming that you are charging us for. So, they should get the streaming services for free. Now, thats not sustainable for does knee or the other legacy Media Companies with streaming, but theres probably going have to be some kind of compromise that charter distributes those streaming services at some kind of discounted price, and disney looks to get charter and the other Cable Operators shoulders behind their streaming business, which are very underdistributed relative to netflix and how much distribution there is of cable subs. Tom, its karen. What do you think disney is most likely to give up . They have to give up something. Ah, i think they will probably give up how much of the cable base of charter needs to get espn. Thats probably something in the 80 or so percentage now that they have to distribute espn to 80 of their subscribers. Theyll lower that threshold, i think its just very difficult to say in a streaming era, with more consumer choice, somehow all cable households, even though that dont want sports, have to take the sports tier and pay more. So they will probably give there. Much harder to give on getting the streaming services for free, although, as i said, theres probably some compromise, where they become distributors or streaming services at some discounted price. Tom, always great to see you. Thank you. Thanks for having me. Tom rogers. Are you going to say it . I can smell the leather and the cognac. Stud, that mans a stud. Total. He knows it. He doesnt even shy from it. Hes back. I didnt bring him back. I didnt do that. All right. Good to see you again, tom. Love it. Carter, is there hope for disney . Look. There is as a general rule, you try to avoid buying stocks in down trends. Its tempting. Im holding my own hand off the buy button. Wait for it to bottom in turn. Thats what a bearish to bullish reversal is. The problem is, once theyve reversed and started to go up, darn it, i was looking at this thing at 20, now its 38. It is better to pay up, let it turn. When its in a downtrend, its just guessing. All right. Coming up, some news that could help you sleep at night. It might no be all good treatments for one medical device maker. Why one firm is downgrading rezmed and what weight loss drugs have to do with it. Well bring the skinny on that ahead. First, high times for the cannabis stocks. Will this dope rally never said that ever before. Dope rally continue, or are the gains baked in . Our traders hash it out after wl,break. El you didnt say it power e trades awardwinning trading app makes trading easier. With its customizable options chain, easytouse tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. E trade from Morgan Stanley. Power e trades easytouse tools make complex trading less complicated. Custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. 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Mark your calendars for an exclusive interview with Goldman Sachs chairman and ceo david solomon. David faber sits down with him thursday, 4 15 eastern, thats right here on cnbc. Cannabis stocks extending their smoking hot runs. Theyve been on a tear since a potential of a marijuana rescheduling started to gain steam last week. How much higher can these names go . Tim, you thought this could be tripling of the stock. Yeah, well, look, theres if you see the last couple days, both the volumes these shares theyve traded probably ten times volume of the previous six months, and if you look at where there was some short positioning out there, and no new net money coming into the space. The headlines here are that cannabis, good politics. And the Biden Administration came out on friday, a couple days after hhs came out and basically said, we have given the fdas recommendation that cannabis be rescheduled to schedule three over to the d. O. E. , and dea. We have a dynamic where i feel like the industry suddenly has a Different Foundation under it, because the Biden Administration now says, weve always supported cannabis, which isnt true, but its good politics now, and the cycle is here. If you look at a company like green thumb, the largest position in my etf, they are buying back stock. Some of these companies actually have the where with all to do that. Some companies, as we said, the profitability that comes from paying, you know, essentially nonpunitive taxes because of schedule 288, which could be removed, is something that changed their landscape almost overnight. All right, well, the msos cannabis etf soaring today, up 66 in the past week. And options traders are betting that this wild run higher isnt over yet. Mike khouws got the action. Hey, mike. Yeah, so, it traded more than 3 1 2 times its average daily options volume, and those volumes are already elevated, as we highlighted some of the activity we saw in this one last week. One of the trades i saw with calls outpacing puts, the december 8 calls, we saw a purchase of 2685 of those, buyer paid 1. 52 a con trkt. This trader is rolling a position up from the december 5s, which they opened up two weeks ago today. A lot more open interest on those strikes, as well. So, it does seem like they are pressing their bullish bets in the area. Wow. Mike, thank you. Mike khouw. Weve got a news alert here on the ftcs antitrust suit against amazon. Melissa. The suit against amazon is now set for later this month. It comes after negotiations between the two parties failed to make any progress, resulting in an impasse, pushing lawmakers to move forward with a lawsuit after amazon failed to offer concessions. Thats quotes familiar with the situation. Now, this lawsuit alleges that amazon favors or prioritizing its own products over competitors on its site. Melissa . Thank you. Coming up, could the popularity of weight loss drugs be a nightmare for rezmed . The ripple effects of getting skinny, and the stocks that could be most impacted, when fast money returns. Sleep more deeply. And wake up rejuvenated. With purples new mattresses fall asleep 20 faster have less aches and pains and sleep uninterrupted. Right now save up to 900 off mattresses sets during purples labor day sale. Visit purple. Com or a store near you is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Shares of res med tumbling after the stock was downgraded. Analysts saying that if people are less overweight, there will be less gdemand for their sleep about apnea products. Dr. Patel, thank you for joining us. And the analyst isnt just saying, if this, then maybe this he specifically is citing a study that e lyle lieli lilly is doing, and hes saying that based on the literature so far, it looks like this will go through, that will allow greater access for the drug for people suffering from sleep about pina. How do you start thinking about the side effects, for lack of a better term, of people losing weight, and therefore having an impact on other industries or other drugs or other streets . Yeah, i think this is disrupting not much of what weve seen with Companies Like rezmed, who have specialized in sleep apnea devices, or the medical Technology Areas that have been helping with what we have, an obesity epidemic. Weve had data thats come out of almost every major manufacturer thats pointed to other kind of side effects around heart disease, and then, of course, as you mentioned, the very important side effect of weight loss, and all of its own downstream effects. Were going to see incredible shifts theres a big ahha moment that has to happen, because we are projecting to see this sector growing to as high as 60 billion in the next decade, but if you look even just a year ago, we saw many analysts report that showed the increasing trends in obesity causing such demands on these exact same companies, which we are now seeing downgraded. Looking at asia alone, what they project, you could look at that as an opportunity for this glp market, if they can deal with the supply efficiently, but if they cant, its an opportunity for many of these services to expand and potentially grow. So, i think a lot of people are looking and saying, maybe this was too soon to downgrade. Its karen, thank you for being on. One of the other benefits that some have talked about is with addiction. And that sort of opens up a whole other right. Avenue of potential, i guess, losers and winners. Do you think that it will have that positive effect . Were already seeing some of those first kind of inclinations around addictions, food addiction, and then talking about other substances that other people can be addicted to. Alcohol, marijuana, both legal and illegal substances. Addiction can take many forms. This is opening up more research and opportunities to deal with those areas. But i think then well see what ive seen the industry do is tailor to these services really well. Look at how quickly the Telemedicine Companies sprouted up, getting the glp antagonists out to people. If you think about the needs in the addiction space, i forecast the exact same thing to happen. Kind of these Wraparound Services that help people. They didnt think about food addiction before, now they do. And it opens up both an opportunity to create a new channel, and to distribute this current set of drugs. You know, the narrative around this drug, dr. Patel, right now, is that its a potential cureall for so many current big, big problems in society. I mean, is it really the whholy grail . There has to be a catch. Theres always a catch to everything. What could that be . I think were seeing it playing out with some patients right now. Weve talked about the side effects with ozempic on stomach para paralysis, and then weve talked about side effects. Theyre not trivial to talk about the g. I. Side effects. And for some patients, its a nonstarter, especially if youve had a history of liver disease. I dont think of anything as this magic silver bullet. Ive never seen that in medicine. What i do think is happening, youre seeing a class of drugs and then the downstream next generation of drugs, that has the potential to change kind of what we talk about with lifelong expectancy mortality, and especially to combat such a problem. But as you and i have talked about, all of us have discussed that this means that people are on these drugs forever. This is not a one and done type of thing. And i think after a couple of years, were going to have to look at where the data settles on what happens to patients after they stop taking the drug or what they do if they only took it for ten pounds of weight loss, which i dont think is appropriate. Dr. Patel, thank you. Thank you. Carter, how do these lilly, novo well, the ones that have been whacked, the diabetes drugs, those companies are acting as though this is a silver bullet. The end. And this is the end. And we just heard, and i think we all agree, there are no silver bullets, one, and two, what does happen three, five years from now, when we get different studies. These are the tradeoffs and they werent worth it, or they were. All right. Up next, final trades. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to use predictive monitoring to address operations issues . We can help with that. Can we provide health care virtually anywhere . We can help with that, too. 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Automatic sashimi earn cash back that automatically adjusts to how you spend with the citi custom cash® card. Time for the final trade. Tim seymour . We talked about blackstone, we talked about its inclusion in the s p. This is not the reason to buy the stock. Its a story of growth. I think they put a floor under some of the real estate issues. Karen . A year ago this week, i bought my first oneyear treasury. Did you have cake . I did not. But im going to do it again. Log it over this week. Carter . Restaurant stocks under pressure. Mcdonalds is the biggest of all and i would sell it. Guy . Congrats to the entire crew that put this together. Yes. Nice to be here. Beautiful. Oracle upgrade in earnings. Thats your final trade . Of course it is. All right. Thank you for watching fast money from our brand new set here at the nasdaq. Mad money with jim cramer starts right now. New set. Mad money with jaim cramer starts right now. 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. Hey, im cramer. Welcome to mad money. Welcome to cramerica. Want to make friends . Im just trying to make you a little money. My job is not just to make money, but to entertain you. Dont like september, never have. Always seems like the month where the sellers come out of nowhere