Transcripts For CNBC Fast Money 20170912

The dow and s p closing at record levels, the 32nd record close in 2017 for the dow, the first record close in more than a month. What is left to buy . Weve got some ideas we start with the breaking news, the biggest day for apple in the last ten years the expect unveiling its new iphones, lets get straight to josh lipton at apple headquarters reporter hi, melissa the new iphone finally getting revealed today, the iphone x ceo tim cook was on stage, he introduced the device right behind me here at the steve jobs theater in cupertino take a listen. We do have one more thing this is iphone x it is the biggest leap forward since the original iphone. Reporter among the new features, an edge to edge 5. 8 inch oled display. No more touch i. D. , instead facial recognition to unlock the device apple says that is more secure than touch i. D well wait and see whether consumers agree. New and improved camera system when you looked at surveys at what people were looking for, an improved camera was in the top three. The phone is powered by a faster processor and runs ios 11. It will benefit from Wireless Charging iphone x starts at 999. Orders begin october 27th, available november 3rd we were also introduced today to the new iphone 8 and iphone 8 plus 4. 7 and 5. 5 inch displays, redesigned stereo speakers, faster processors, arenabled. Augmented reality is certainly one of the new technologies. These phones benefit from Wireless Charging. Customer can begin organizdering one key item to focus on there is that the iphone 8 in late september, iphone x isnt going to be in early november. That puts some of those q1 estimates at risk. Josh, the other thing tim cook mentioned is theyre seeing 50 year on year Revenue Growth for the watch. Now that it will become untethered watch, you have to wonder how many more people will pick that up reporter yeah, that was certainly pretty interesting, the new series 3 watch will have its own cellular connection. Youll make and receive calls, use apps or stream music even when the device isnt within range. Some analysts think that could have a pretty big impact of course apple doesnt release revenue or units for that device so we realize on third party researchers. Well see what the series 3, having a more standalone product, whether that gives a bump to shipments. Thank you, josh lipton. Apple fell as much as 1 today even after the new iphones were unveiled lets walk through this iphone x. Why werent investors more excited, dan theres a lot of exciting new products there i think its important to remember that some of i guess the hype into this event had to do there was no surprises i think thats really important. When you think about the price point for this high end phone, like josh said, its not going to be out into the next quarter, thats something to consider here is the most important thing that i think is really important. You just said this untethered watch. Its going to be about 500. Those watches do not sell the way a phone does, the way you would do this, you would spread out the cost of that thing over the life cycle of that contract that you have. So this 500 watch has the potential in my opinion to cannibalize sales in this cycle, when you think about the iphone. Weve been hearing about this super cycle. You buy a watch and not an 8 . I think you could i would do that. To me it is a wearable that actually serves the same purpose as your iphone to me, im just saying, i think it has the potential to put a little bit of a damper on this product cycle. A product that was really irrelevant to this company, and we could probably throw in apple tv, with all due respect cannibalizes. Its destructive. In a couple of years its become the bestselling watch on the planet the fact that its going to be untethered from the device, this is apple making a huge foray into wearableswearables this is very bullish to me. People may go out and buy this if you buy a 500 watch, i dont know what the margins are on the watch versus the phone, does it matter that you spent 500 at apple on a watch versus 500 on a new phone, pete, in your view . I think youre making a reasonable point on the idea that there could be some cannibalization. At the same time, if the watch sales were up 50 , and this does have some sort of an impact on the phone, i dont think the impact is as big as youre thinking it is because at that price point, that really is incredible. What are the margins on the watch versus the phone my guess would be incredibly better, right . In some ways theres some cannibalization. In other ways well see much more profits come apples way. The other thing is the merging of all these platforms, thats what i took out of this today. This is something where were feeding into the services at apple. They have vertically integrated everything theyre feeding the monster, which is going to be the growth section of apple i think going forward. One of the other growths, obviously, we were talking about the watch, but the services. This feeds right into it, the billion plus users i have to go back at you. So this watch i was kind of agreeing with you. Has 16 gigabytes of memory apple makes a disproportionate amount of profit from the amount of money in there. They crank you on the memory this will be in my opinion, offthecuff, a much lower margin device. I think for people trading the stock, the most important thing today was the fact that the oled is not coming out until november when we talked about the delays, people said a sighing of relief, it was a rallying point for the stock, that people said the production was going to begin on time in fact you wont get anything in the September Quarter every 1 Million Units on this x phone equals about 1 eps plus or minus it does move it significantly. These delays i think are very important. I think thats why the stock has held up. Everything else they gave us is exactly what we knew we were getting. Lets just say tims right. Im not sure that it is, but lets just say hes right. You get a selloff to 157, thats an opportunity because these sales are still going to be there. Sure, theyre delayed. Sure, analysts what does three more dollars mean you said 157 versus 160. Thats 157 support. Then i know i have people in there. My risk rewards is much better at 157 i would rather wait for the market to come back to me. That being said, i agree with whats your name, dan . So i agree with dan. Hes going to bite your head off, like he did mine, as soon as i agreed with him a little bit. I think people buy both yes and people buy the stock. When you think about it, i know youre hopped up all this talk about cannibalization . And youll still buy the stock i think youll still see lots of units, the home pod will be off the hook, the watch will be off the hook, youll see a bit of this upgrade to this iphone 8. People will be excited about Wireless Charging on the lower end sort of device i think they have the wind at their backs. And especially if you start looking at estimates for next year, which they are about to go into fiscal 2018 its trading about 15 times expected eps growth of about 15 , with midteens sales growth the company has last year their sales declined at the end of the day, you say to yourself, okay, well, you know, they bought back 12 billion in stock last quarter, service has accelerated year over year. Im just telling you, no reason to sell it between except it always sells up after the release. But otherwise, thats fine lets bring in gene munster, he was there for apples big event there. Gene, did apple deliver, and was anything that you saw revolutionary when it comes to the iphone yeah, i think that they did effectively usher in this next chapter of computing, this next decade of computing that tim cook talked about. Thats largely going to be around these new types of interfaces, whether face or gestures they failed in terms of getting that phone out in line with expectations i know that had been kind of a moving target. Thats going to have an impact on the street estimates, the december quarter, shipping some of those units from december into the march quarter i think there are some other Unanswered Questions on some of the components for example, these 3d mapping chips, like lumentum, i think basically the wiz bang in that phone is maybe not as pervasive as what we would have thought. When you say youve got questions about some of the parts in the phone, we dont know that its a lumentum chip powering the facial recognition, are those the questions that you have right now, who is actually supplying . So maybe to put it in english, what some of the most exciting things about iphone x is this facial mapping they were showing. Well call that the wiz bang that was on the front facing camera but they didnt add that to the rear facing camera when you look at some of the comments from some of those suppliers, i just have a hard time mapping those two together. I might be missing something on asp, i want to tread lightly here i was surprised that that technology wasnt on both side of the phone gene, on august 1st, they guided Gross Margins to just below 38 , if they come in at 38 , that wouldbe the lowest gross margin on a quarterly basis since 2014 we were having a quick discussion about the potential for some sort of cannibalization from this 500 watch with only 16 gigabytes of memory are you expecting to see margins below 58 as we head into fiscal 2018 and will investors start to think about a lower margin structure for this hardware . I dont think so. Typically margins go down in the launch cycle, which they more or less set the street at those expectations and then they tend to kind of go up, call at it march and june quarter. I still think that one little nuance in terms of the cannibalization risk in terms of the apple watch and the phone, even though you dont need your iphone with you, you still need an iphone to set up the apple watch. Youre not going to get away from owning the iphone to get the watch. How about people who buy the x versus the 8 we think typically the highest end phone, in the last Cycle Service 7 plus, 25 plus units. This will be similar to that the reason its similar is more people are buying these on installment plans like youre talking about. This is going to be an incremental, about 5 per month more so i think given the more futuristic look of the phone, it clearly looks different than the phones of the last couple of years, the uptake should be similar as in the past despite the higher asp gene, thanks for joining us, always great to get your analysis lets take a look at this phone and actually we paired it or we put it side by side with the latest Samsung Phone we really wanted to know how it compares its very similar. Phones these days are pretty similar. It always does. Looks very similar, although again, you get to this place where you start comparing the samsung with the apple, ultimately the camera was a very big deal if thefact that this camera is significantly better i think is a very big deal. And i think its something that really would push the x that much further ill say this also, people are forgetting about ios 11, which makes this low priced ipad a replacement for a laptop computer there are other drivers here i totally agree with pete. Gene was getting at this with the gross margin question, the services, maybe thats the bottom, and this is a big part of the next move for the stock my reaction to this comparison, samsung does not have the retention rate of apple. Apple is at a 90 retention rate even though they might look the same, people like the operating system they like and if theyre an ios user, theyll stick with it one of the side stocks thats exploding to the upside and theyre part of the apple story, is micron. Micron today was absolutely on fire, im lucky enough to own some stock and some calls. Today they rolled up, 29,000 of those. I mean, so there are other winners in this whole game that were talking about. And theres losers too, since were talking about side salads. Fitbit, f. I. T. If im fitbit, the apple watch is a massive threat to me. We can argue about whether apple is going to cannibalize itself i want to clarify one thing im not saying that its going to cannibalize like the actual phone itself i dont think youre going to see a lower amount of installed base of the phones but if you have an iphone 7 maybe you dont upgrade yet yes you wait. The story is continuation of elongation of these cycling, these upgrade cycles everybodys been calling for an an upgrade super cycle, creating 200 billion in market cap to me, if theres a surprise in the next quarter or two, it will be that, that theyll miss on units, wont have the supply of the high end phone, and the 8 that they introduce is just evolution. All they have to do is talk about units sold on the watch, which they havent yet, thats the unknown. All of a sudden, when steve jobs came back to this company in 1997, he was dismayed about how many skus there were all of a sudden now, youre going to walk into an apple store and youll be able choose between eight or nine iphones, an untethered watch. Its getting a little crowded. To me, i think at the end of the day, they have not simplified things today was confusing on some level. If you woke up today and found three new phones to buy. Coming up, mick mcguire revealing his best ideas at the alpha conference, he joins us live plus jamie diamond bashing bitcoin. Brian kelly will break down his defense of the currency. Later, check out shares of nordstrom going parabolic as the Department Source close to a deal to go private well bring you the details. She cant become a guitar legend just by playing air guitar. 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. Youre taking a look at the delivering alpha conference. This is just one of the many, many news making interviews that have happened today. For more on todays events, lets get to leslie picker at the hotel where the conference is taking place. Reporter hey, melissa. Were hearing several people talking about whether were in a bond bubble or not when it comes to the buzz y tech names, there wasnt much in the way of criticism here is tiger managements Julian Robertson the apples, the facebooks, the googles, those great growth companies, are priced cheaper than they would have ever been in the 60s, 70s, and 80s. Reporter jim chanos presented a new idea, taking aim at tesla, a company he urged investors to short last year but its run up quite substantially since then this is a good exactly of cult stock, i think its fair to say, in the market, where the market will look at anything the way it wants to in a Glass Half Full kind of mode. Reporter leon cooperman of omega says United Airlines is a 100 stock and it will take 18 months to get there, thats a 63 upside to where the stock closed today united, i think its fair to say, has been somewhat undermanaged until 18 months ago. In the past year or so, a couple of activists have been involved. The current management now is considered to be amongst the best in the sector the management has identified a lot of revenue and cost opportunities which should grow operating profits by 2020, the next two years, by almost 50 . Reporter nick mcguire presented his best idea, terex, a company he says has the opportunity to triple in three to four years, melissa all right, thank you so much, leslie picker. Of course well be speaking to marcatos nick mcguire, hell join us in a few moments on that best idea. Other ideas from the conference today, there are so many to go through that leslie sort of ran through, what do you want to start with what Julian Robertson was saying, we talk about is tech in a bubble, is it overpriced were still at 21 times earnings Julian Robertson saying, this is not necessarily unusual, not necessarily stretched. To me this goes back to the whole idea, what price will you pay, what p. E. Ratio will be pay for where Interest Rates are right now . And thats what this whole market comes down to thats the core of it. Were not overvalued as long as Interest Rates stay low. But what i heard today, i think a lot of guys echoed this, this market is at a very difficult valuation. We almost have to reach or find, any of these guys we mentioned, i dont think theyre reachers, but jim chanos can say, this is about tesla. The news i heard yesterday about tesla signals to me theres going to be more competition in the ev space that to me is not great news for tesla. But tesla, i agree, has been straight up. Isnt that he thought a leli of competition to begin with it pushes the oem straight into the this is not a car company, right, pete not a car company thats where hes dead wrong, you and i disagree on this too its a Software Company. Ill give you that. Its got the energy side as well we shouldnt. We shouldnt care. Maybe so, but how long does that reaction usually take you just dont think if you think where apple is going to play in this space, its going to be in software. Do you think tesla wants to go up against apple, a company that has a billion user installed base theyve got the gigafactory thats only important if you think this is a car company. Valued that alone at 50 billion. This is indicative of to me this goes back to the decarbonization of the electric grid guide, the gigafactory is a factory in the desert, if they dont have i lithium ion chanos was on the Halftime Report you can be right about the fundamentals he may be right, but in the markets, hes wrong. Yes the stock is moving hard against him. And very painful, im sure. The one thing i have a little bit of a pushback on, Julian Robertson was talking about how inexpensive many of the f. A. N. G. Style names are. When you talk about, well, we can go to tesla and things are selling, and maybe its time to sell relative to their growth, im not coming after the fact. I would just argue that a lot of the managers are looking at the overall market and saying, this is a very challenging face on valuations they also cited outside forces that are keeping the market elevated a guy like jim chanos makes his money because he is often contrarian if nothing else, he will be an invest for people that want to feel safer when the world comes to an end. He was actually fascinating, he said, listen, scott, im not long, okay what he said about alibaba is really important that was his short idea last year, he covered it in january he was also long jd against it so that mitigated a bit of it. I thought that was fascinating more delivering alma, nick mcguire just got off the stage where he revealed terex as his best investment idea right now nick joins us from the conference, hi, nick, a pleasure to speak to you. Thank you, melissa, you too you had a 5 stake or thereabouts. Thats exactly right. Why now is it the best idea well, it was one of our favorite ideas then. As weve continued to own the company and get to know the company, weve only increased our conviction this is the first time weve actually spoken in a public setting about our investment because weve actually enjoyed a very productive and collaborative relationship with the company and with the ceo, john garrison. Weve had tremendous respect for him. Even though it is an activist investment and we initiated our investment as a 13d filing, this is i think one of the examples where activists and boards and ceos actually can quickly find agreement and a lot of value is getting created in the process. Were showing the performance of the stock over the past year, its up 69 . Its had quite a run where do you see terexs shares going . What should it be worth . Sure. We think over the next three, maybe four years, that this stock has the potential to be well north of 100 a share a lot of that ultimately comes down to what multiple the Company Trades at at that future point in time. We think this business has the potential to earn 8, 7. 50 a share in 2020, and north of 10 a share in 2021. We think the company, i was watching your segment, actually relieved i wasnt pitching tesla. But, you know, i think a lot of the conversations were focusing on right now is, the market is trading at very lofty multiples. A lot of companies that people are spending time focusing on are trying to determine whether or not the Growth Prospects of the business justify the multiple that you have to pay to own them terex is one of the kind of best situations we see in the market where this is not about trying to bet on growth this is actually a selfhelp story where all of the Earnings Growth that the company has available to itself are things that are primarily within its own control. This is a story about selling noncore businesses those sales have already occurred, and they received very good prices for those assets its about focusing on their core and improving the margins and cash flow from those businesses, then taking all of the cash thats generated from those activities and repurchasing shares at really attractive levels. If they do these things, well have some geometric Earnings Growth ahead of us were seeing the stock move higher in the extended session Buffalo Wild Wings is another major position, i believe you took it around the same time youve gained board seats, the ceo stepped down the stock hasnt really been responding to all of that. Im wondering what your take is, whether you think there is something wrong fundamentally with the space right now no, i dont think theres anything wrong fundamentally i think in the case of Buffalo Wild Wings specifically, earnings have been under pressure theyre a company that sells a lot of wings, as you know. The reality is at this very moment in time there is a shortage of wings in the country, apparently. And the price of wings is at an unusually high level and that has been pressuring the companys earnings from your standpoint, were showing also the decline in the shares from your standpoint, its the i didnt want coinput costs rising no, i dont think thats the case i think for a company like this, when a commodity is like that, its hard in the immediate term. But the fundamental prospects are quite attractive now that the board has changed and were in the process of bringing in new leadership, i think theres lot of potential thats very much there nick, thanks, we appreciate it nick mcguire hes talking about a restructuring payback story, trying to get to an roic of 20 by 2020, and good for them as he said, its independent of what goes on i think the externalities are why you stay there notice caterpillar is there too, its talking about Operational Performance as much as they are top line that doesnt get you so fired up were at a time when materials hit an alltime high its been working, all these different names we talk about. Buffalo wild wings is sort of interesting, this stock, from 175 to 100 a share, this has been absolutely even picking up a few boards with the ceo changing. Can he get them more efficient, can he get that turn . And hes talking about all the things that sally smith used to talk about, i have enough problem with chicken fries how many wings are you eating on sunday, watching football it seems to me that there is plenty of upside there at this point in time. I actually agree with you on that think about just a normal commodities response, youre going to grow more chickens. Eventually those prices will come down. If theres that much more demand you can do boneless wings chickens dont have any bonus. Bones its a terrible floppy thing. Dan has no comment. Still ahead, banks surging up 3 and rich ross is eyeing one name for a bigger breakout. Jury watching fast money on cnbc meantime, heres what else is coming up on fast. Our Long National nightmare is over. Thats what investors hope. Nordstroms reported management buyout means for retailers but the reporter who broke the story says dont bet on it shell be here to explain. Plus it was the diss heard round the world. Jamie diamond, bashing bitcoin and sending ntbk io a tizzy. His response when fast money returns. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Steven mnuchin doubled down earlier today. Is the trump trade officially back on . Pete najarian. Yes, it is. We all talked about this the other day, how nothing has kicked in yet. We talked about repatriation, various things those are potentially in the future what i continue to see is, first of all, we had the rates go up again today, that helped but the buying that keeps coming in, people are putting money towards the financials u. S. Financials. I know youre they both make sense. Right where ive been seeing the most option paper, and the option paper has been extreme recently, on these upwards moves that gets a little softer. People bought 70,000 towards the end of the day, very end of the day. Bank of america upside call. 70,000 by the end of the day 100,000 of the xlfs yesterday. We had a lot of commentary also from bank ceos and coos at the barclays conference, train revenue will be down 15 , jd morgan down 20 . Thats pretty much what people are expecting. Its not getting worse, in other words. Its not getting worse. Look, this isnt a political statement, but i dont know where were calling this the trump trade. This is a global trade were seeing manifestations of that, it has nothing to do with whats going on in washington. Whats going on in washington is help the banks removal of regulatory is very good for the banks lets be clear, mining, reflation, commodities, these have been going on for a year and a half jamie diamond said to andrew ross sorkin, there has been no regulatory hope. Theres no trump trade, theres no legislative agenda. Mnuchin has moved the goal possess on numerous occasions this year. Were not going to get tax reform are you saying ever, or were not getting tax reform. Thats not happening not under this president not in the next couple of years. I completely disagree with you. Okay, thats fine there is no trump trade. When you look at all of these trades, why do the banks underperform this year why is the tenyear yield hovering so low . What is it saying about our economy relative to the rest if anything i think the chaos in washington has been a hindrance. You think the reflation trade is a trick the notion that there is some trump trade is ridiculous. Im agreeing with you its not a trump trade in an angry kind of way, but agreeing nonetheless back to the banks, the banks dont need a whole lot here. Theyre trading at valuations that make sense. And if regulation comes off at all, that could really help financials, as we mentioned, getting a boost today. Our next guest says theres one bank that could see even more. Rich thank you, melissa. Banks have less investors, dazed and confused heres the reason why. I keep getting older but yields remain near 2 this is not a bullish chart and its likely heading lower. You dont need to be a technician to see this is a welldefined down trend. We see the 50 cross below 200. The trend for tenyear yields is lower. Thats not helping the situation as it pertains to banks. This is one of my favorite charts its not a great thing for the tenyear this is a weekly chart here. The green line coursing through the chart is the 100week moving average. Its done about a good a job at predicting the moods and tenure than anything else look how its been resistant here and resistant here. You saw the breakout here. You can see that the gyrations, once again, breakdown here were testing that support, it comes in at 205. Youve caught a little bounce here just as you did back here in september of 2014 we got a little twoweek reprieve and rolled over watch that 205 level thats critical. So lets zoom in, lets talk stocks here. Well talk about the bkx here is that index once again, in a world of very strong stock charts, the s p 500 being one of them, the bkx is not one of them. Were not broken just yet. It certainly doesnt inspire confidence this holds the potential below that neckline to morph into a more sinister double top clearly if Interest Rates break below 205, youre going to break below the neckline of this tenmonth top, youve gone nowhere. Up 2 with the market up 11 through nine months of the year . The regionals down 5 . Its not a pretty picture. Lets finish on a high note, well go costanza. You have the multiyear based breakout, a stock thats up 16 to date, its clearly beating the banks and the s p itself i think weve settled into a nice red its a bullish formulation well finish with a green arrow. Youve got your base breakdown here everything youre looking for, the nice relative strength and that textbook continuation pattern, it makes you a buyer of citigroup versus the banks the banks, not so much just yet. I think those yields go lower. Rich ross, good as ever, definitely in the top three of all guests of all time got to let you stay there at the plaza. Thanks, rich rich ross. Potentially trouble brewing in the banks overall but positive citi i actually think its positive for all the banks when you look at what yields are doing, weve had this bumpup, we had a little bit of a selloff, we got close to rich rosss level on the idea that these two hurricanes would be a problem for gdp. I actually think you could see some stimulus on it. The bond market is telling us that im agreeing with pete, it really makes me uncomfortable. Youre not alone, pal all right coming up, breaking moments ago, nordstrom nearing a deal to take itself private that stock surging in afterhours session. Well talk to the cnbc reporter who broke that story plus jamie diamond sounding the lounge on bitcoin, calling the crypto currency a fraud. Our own resident crypto expert, brian kelly, says not so fast. Ill tell us why there ce has it all wrong. More fast money after this [vo] quickbooks introduces jeanette and her new mobile wedding business. 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. And ive never seen a better time to refinance your home, than this summer. Why . Because right now were seeing our average customer save 20,000. 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All i ever said is at bitcoin, the bigger these things get, governments look at it as a novelty. They love in washington to talk about technology, we Love Technology wait until someone gets hurt wait until its used for illicit purposes, which it is being used for illicit purposes, they close it down. That was jamie dimon, speaking at the delivering alpha conference, with a pretty strong takedown of bitcoin, which took a hit on the comments. A widely followed investor refuted dimons comments is it a fraud no. Will it blow up it cannot blow up what countries can constrain today is how its effectively traded but it cannot control it it is a fundamentally distributed system that exists peer to peer and so to the extent that you can basically eliminate the will and actions of every Single Person in the world, you can eliminate it but in the absence of that, the genie is fundamentally out of the bottle whether we like it or not. He also said hes been massive long bitcoin since 2012. He controlled at one point 5 of the total market cap who is right in this i go to bk knowing what the answer is going to be. Listen, i think jamie dimon is wrong one, the genie is out of the bottle here. Also, jasony talked about how governments are going to shut it down bitcoin is designed to go around governments. Thats exactly what it was designed for and youre starting to see that. Jamie said it in his comments, after that clip, he said, if youre in venezuela, it might be good to use this to go around your government, which is exactly the point. So governments are going to have a hard time shutting this down can i ask you a question . Why do we say bitcoin falls so much when there were reports that china was shutting down domestic bitcoin exchanges if you could go around so easily, why would there be any impact it shouldnt be, on china china used to be a big part of bitcoin trading. Now its less than 20 thats sentiment kind of thing, there were rumors china was banning bitcoin altogether what looks like theyre going to do is nationalize the exchanges, because they want to do exactly what jamie said, they want to be able to know who has it. With bitcoin, you can do that. This is a fundamentally Disruptive Technology that allows you to track everything so this is you know, to break it down to the real simple level, you know, what is bitcoin, its a software that removes the middleman from Financial Services thats all bitcoin is. Which banks dont like. I can understand why jamie dimon doesnt like it. I think theres another thing, its pretty fascinating moment that that all happened in a couple of hours. Mr. Diamond has to defend his franchise. Hes probably speaking not out of tune, this is what he thinks is consistent for his business but when you look at where chamath, i think chamath probably he good chance of dominating for the next 20 years. Jamie rolled out a quorum replicating what etherium does his point is regulating it is crucial. Bitcoin rallies when japan eases regulations and tightens when chap goes against them thats what will dictate bitcoin price in the short term. Cnbc broke the news that nordstrom would ke ieltatsf private. The reporter behind that story will join us live. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. 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. 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A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Welcome back to fast money. Shares of nordstrom soaring after cnbc revealed the Department Store was close to a deal with Leonard Green to go private. Nordstrom, reportedly already talking to banks about raising between 7 and 8 billion to fund the deal formal bids expected in just a few weeks. This comes three months after the familyowned Department Store said it was considering going private. Lets bring in lauren hirsch, the cnbc reporter story, making her fast money debut welcome to the show. Thank you for having me will this lead to more buyouts of Department Stores this is a really unique situation. I talked to my sources, the general feedback is, if one Department Store is going to survive, its going to be nordstroms. I think a bunch of publicly traded retailerers jump ers jum news i think some will find theres not going to be a lot of the kind of money that people will want to invest in them is this a slam dunk when it comes to shareholder approval . The nordstrom family, the family that owns nordstrom, i would imagine owns a significant slug of stock yes theyve appointed a special committee, its been an above board process, they announced in june theyre considering taking it private weve been reporting on the process. Its been pretty public, how the process has been going an independent special committee is going toreview it so thats kind of how theyre dealing with the potential overlap of interests in terms of other shareholders, from people that i talked to, i think the idea of there being an exit for a retailer in 2017 is something people are pretty excited about. So i would suspect shareholders are supportive but well see what the price ends up being. They are certainly enthusiastic in the after hours. Lauren, thanks so much for your time, a great scoop there. Lauren hirsch of cnbc, the nordstrom sharing sending shares higher in the afterhours session. Youre in macys, right . Im in macys theres been a lot of pain theres too many Department Stores there will be a couple that stand and macys will be one of them some of those same drivers that work for nordstroms work for macys there are some core franchises that inherently have value same store service this isnt running away from you, but this stock has more room to go higher. How about target, pete . The environment is so difficult, i still think target can survive. Theyll have to compete. I think theyre doing a reasonable job are you out of target im not in it right now its broken your mart how are you, are you okay im sorry. A minneapolis company, they do a good job. Theyve had certain areas where theyve actually been able to come back and compete against amazon but its a very difficult challenge. For me its walmart i think walmarts the one. Theyve got kind of an omni channel presence out there theyre able to compete in this environment. And the stock has performed well all three of those things makes me stay long all right coming up next, final trade. Stay tuned you know who likes to be in control . This guy. Check it out selfappendectomy oh, thats really attached. Thats why i rent from national. Where i get the control to choose any car in the aisle i want, not some car they choose for me. Which makes me one smooth operator. Ah still a little tender. vo go national. Go like a pro. upbeat dance music bell ringing hit could be the next big thing i should totally get that domain name. Get your great idea online too. Get your domain today, and get. A free trial of gocentral from godaddy 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. It is time for the final trade. Pete we started the show talking about apple and the big day today. We also talked about the semis a little bit Micron Technology broke out, got to 32 1 2, its going higher we talked materials, cranes sendex traded south of the border cx is a 40 billion company thats exposed to the u. S. For me its tesla, its more than a car company, more than a Software Company i like tesla nathan . What is that . Come on i think theres going to be multiple transactions in these Department Stores. Multiple transactions in Department Stores . Interesting. Letter m. A lot of them melissa lee. Thanks for watching. Mad money with jim cramer starts right now. My mission is simple, to make you money im here to level the Playing Field for all investors. Mad money starts now hey im cramer, welcome to mad money, welcome to kram america. Other people want to make friends im just trying to make you money. My job, to ed kalt and teach tweet me news flash, stocks by an