Later, fake news is the biggest threat to tech right now. Kara swisher will join us to tell us how bad it will get. One group of stocks is in overdrive, that would be autos toyota 4 , ford up 6 , gm up 9 . Fca up 33 the question is simple do you fade or trade i would say fade. Im sure ill get pushback from my point of view, Ford Motor Company went from 10 1 2 to 11 1 2 without question over the last four, 1 2 4 1 2 years. Gm, a little different i think both stocks need to prove themselves in the case of gm its over 40 in the case of ford, 12 1 2. I would rather wait for the break to try to buy it the pushback is, gm continues to execute theyre growing their gross margin the stock is getting cheaper and cheaper. This is more about a sector that the jury was absolutely out on now that were in hard times, just because we hear, when in fact these guys have been profitable, you take this run at gm, in fact it makes sense to me the stock is rallying when news is bad because it wasnt rallying when news is good karen i agree, to me, i was noting it to get from there to here i still think theres a lot more room the mobile is ridiculously low i understand theres cycles in the business, but it was discounting so much, it wasnt until we started to see autos go down how much is improved pricing, whether new or used cars, weve seen these charts take off in the last month or so how much is that part of the equation for a ford or a gm . If anything, im hearing cents per quarter, pretty crazy. To me, the trade is absolutely jammed im not excited by the Pricing Trends if gm is going to youre not excited thats a big part the run on gm started months ago. Fiat chrysler is up, thats been an outperformer. Im talking about ford ford is definitely based on pricing and that continues i think both hurricanes gave sort of a jumpstart or helped further along the rally. Well get that new demand there, which is really just pulling demand forward nevertheless it was enough to jumpstart the stock off where it has been stuck for so long. I would not be selling gm. You have to believe when it comes to ford and the onemonth gain weve seen in ford shares, 6 , because it didnt participate prior to that, really, the hurricanes will be some sort of a lasting impact. This will be a mother natures cash or clunker sort of thing, where there is is a transfer of wealth, that cars have come out of inventory and pushed Prices Higher onequarter, twoquarter phenomenon exactly my pushback of tims pushback would be, when i say approve themselves, i agree with tim, gm and ford have done many things right over the last four years my problem is theyve done many things right, the stock market has worked for them, but the Stock Performance has been, quite frankly, the opposite. When i say prove themselves, its more of a price action point of view. Gm is up 11 on the hard hits, the last a couple of weeks. All of them benefitted, whether it was outside sure. Im just saying its up 26 over 12 months, still sizable gains prior. Lets stay here, other than to say the industrials in this sector is very cheap, and theyve all run. If you look at names like caterpillar and other names that could fall under the same place. I also think at some point, the fact that these guys may not compete in the future of cars, is actually a case where a lot of these cars will be obsolete i think cars will be traded in and people will need that new gm in two or three years. We know theyre well at work here, these guys spent the last three or four years scrambling to be in the autonomous side or disruptive part of the auto business to say theyre going to be left out to me is crazy, when we hear that every company has been mandated to have, you know, some percentage of their sales be ev engines by 2020, 2030, and be totally obsolete in 2040, these guys will share in the same way. Theyre going to compete in the ev vehicles. Bmw has one now. So that to me is part of the story here we havent included in this auto discussion. They sell autos. Hardware. Right we asked i think a few times, when weve had mr. Jonas here, the question we asked him was, are you the right person to still be covering tesla, or should it move to and he said thats a great question to have i dont know what it is. But i know the stock has done everything technically right now its against levels that like gm and ford, tesla needs to prove itself if i gave you a would you rather, if i gave you General Motors or tesla right here, right now, what would your answer be . Tesla tesla wow has to be why does it have to be . Its like whack a mole at tesla. It gets people on their yields and anything goes right. I agree with everything you just said. Thats the reason why it cant be you have no idea where these numbers will come in the stock has responded. Its 76 . Its a Software Story it cant be an auto story. If it is an auto story, they better have a million car lead over daimler and bmw in 2020 to stain the dominance in the ev world, which is what its supposed to be all about absolutely gm absolutely gm you thi ive been negative forever. I dont flipflop. Thats great but one is up 11 is one is up 76 the reverse of what its going to lose this year. Tim, im giving you yesterdays lotto numbers and youre saying no, those arent correct. Its up 76 year to date youre asking what stock im going with absolutely gm, not only because im long the stock why would i change today just because they announced a truck is coming out . I didnt say the truck is the reason to change i said its up 76 steve, let me just push back a little bit, though to me this is not made for you. Youre a value girl. Its a risk reward. You have to look at the downside as well. At what point should we have said that, when it was up 40 , when it was up 30 its up 76 . It doesnt matter the question is tonight. Fast drawdowns in tesla in the past you would have said from right now. And theres a lot of money on the table. Im not being insulting, im stating a fact that is true, tesla was the way to go. You think there is no point im saying its a dangerous stock. That keeps the stock elevated lets move on moving on check out our move for the day, highest level in five weeks, despite energys underperformance this year it is the best performing sector is so for this week. Our next guest says this is only the beginning of a major comeback chris, what are you looking at were looking at oil today. Its important to remember, this is a time of year where laggers tend to rally. Oil is a great example it is wti, well start there first. We bottomed in june. Were pushing up against that 50 50 key level. Its also where the down trend thats been in place all year meets this chart i think ultimately it breaks out, in reality this has been a base taking shape for much of the year one of the reasons we think wti breaks out here is very simply because brent, the worlds oil, has already broken out got above 52 brent broke the down trends, bottomed in june brent leads. Brent broke out. Wti follows. We think 56, 57 is ultimately where oil heads. How do we play it . We can own some of the stocks here this is eqt, which has quietly been bottoming for much of the year it did not make a new low when the rest of the Energy Sector did. It held the 60 level. We think ultimately on its way to 70. One more a big cap name this is chevron, cvx again, quietly throughout the year higher low, higher low, higher low. Held key levels, broke out through 111. We think ultimately 120. Oil bottoming. It looks like brent is leading eqt and chevron two ways to play it i think chris comes over. Has to. Arielle is bringing the chair over, thank you, arielle all right, chris you take a look at the charts of oil. Do you have to also take a look at the charts of the u. S. Dollar oh, yeah. Theres a couple of things that are interesting. When the dollar was under pressure, oil didnt respond these correlations that weve looked at for years and years have really broken down in 2017. One of the reasons this has simply not been a business cycle, this has been a central bank cycle a lot of relationships we all rely on have simply not worked i think the other important thing here with energy, lets differentiate between trade and a secular move im not in the camp that this is i start of some multiyear move this is tradeable at year end. This is the time of year and laggers rally. Big cap, big integrated names like exxon, chevron have been horrible for nine months recently theyve shown signs of life do they have room at years end or are they dead monday still . Theres a reason we showed chevron rather than exxon. Chevron is a better chart. Rice energy, a little smaller, is interesting we have to find names, though, that did not make new lows a week ago, stocks that were already Getting Better before this rally started lets say i want to invest in any of those names that you specifically mentioned does the xle chart look as good it looks similar. October and november especially is the time of year where garbage can go up. Were seeing it in retail as well this is not energy, this is broken down retail stocks. Its all part of the same trade. Look at it to be measured in months, probably not quarters. For enginergy and retail. Exactly black monday, whatever its called now, whatever the right day is, but for energy, or any dog, why now very subtly were seeing pickup in Inflation Expectations look at the breakevens, germany, u. S. , uk, quietly have picked up. They want to see u. S. , uk rally. I think energy plays that. The dollar is weak this may be catchup this is the least loved sector of all, everybody is on the other side of the boat youre absolutely right that may be the right view if were taking a fiveyear approach in the context of the next two or three months, its probably underowned youre seeing how quick these moves are. It tells me theres a lot of Short Interest dont be surprised if theres more to go here. Chris, thank you for being here i think it does depend on the dollar and crude those correlations are on again, off again, theyre worthless but if you look at the xle, the xle depends on crude staying right around that 50 mark if this broke a trend line that chris pointed out, if this gives up the ghost, you have to bail on the xle as well i think this is more about fundamentals i acknowledge where positioning is ive been long three weeks hail burton a halliburton and xle. Were at a place here where weve seen a lot of the hedging fall off we know most of the u. S. Shale is probably profitable at 65 bucks. And i think a lot of these ceos will lose their jobs if they dont do something for equity investors. Theyre not giving capital back. If these guys are so cash flow generating here, they should be doing something on the other side the hurricanes created demand destruction which created names to be sold, fine products squeezed thats what you see reflected in the wti crude chart. Lets see if it lasts another week to see if it has any longevity. Chris does a great job. Rich ross does as well, brilliant. A week and a half or so, rich ross was talking about energy. And exxonmobil is one of the names. He says one thing and we push back and said, for the first time in many eight or nine months, exxon is over 80 now, very quietly the other thing, were pushed up against levels we saw two years ago, that worries me a little bit. Coming up, more cord cutting. No problem thats court cbs Ceo Les Moonves. Why a skinny bundle could mean bad profits for the media giant. Bitcoin has lost 23 billion in market cap since september 1st. Tom lee is sticking to his guns. Hell be here to make the full case for the crypto currency you wont believe how high he sees it going. Oracle a huge leg lower, giving up postmarket gains. Conference call just got under way at 5 00. Well hear from the c suite. Much more fast after this. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost, so all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Welcome back to fast money. Take a look at after hours session chart on oracle, taking a leg lower just moments ago the Conference Call got under way 20 minutes ago lets get to josh lipton for the details. Josh reporter we entered the Conference Call. The ceo gave guidance, thats when we took that immediate leg lower, 64 to 68 cents, total revenue between 2 and 4 q2 crowd revenue, growing between 39 and 43 the street clearly disappointed by that forecast the ceo is now on explaining more about these numbers, giving a little more color. Ill bring you those headlines as soon as i can, melissa. Im sorry, josh, the Revenue Growth guidance is up 2 to 3 ; is that correct . Reporter 2 to 4 total revenue, 2 to 4 the cloud revenue guide, 39 to 43 . The street was expecting 5 Revenue Growth and eps of 64 to 68 cents was their guidance, 68 cents was consensus. So falling short for the fiscal Second Quarter cloud revenue up 39 to 43 we were just talking about this, all time record high and here we are. Its all about cloud, though. They made such a major investment and most people thought they couldnt get it right. I wasnt sure they could get it right. I thought that switching over to cloud bases was going to take their margins out. They grew aggressively thats the problem with cloud. The growth you cant count on because everyone gets so crazy about it, its like the amazon story. It becomes a commoditized experience, all these companies should be sold was the cloud issue specific to them . I think thats the question 2 to 4 versus 5 these guys set the bar very high they said double digits. Getting even to 10 , a couple of guys on the street say thats going to be very challenging they have converted their business successfully. Sales force is down 1 2 percent. Valuation, you can come down on both sides of the fence. 69ish is not bad. Others could say its expensive. My looking at the stock, it made that high today, reversing lower. You have to ask are we in huge danger of this major double top from 18, 19 or so years ago . That becomes interesting you have to let this one play itself out down 5. 2 well check in with josh lipton a little later on. Lets move on here more and more people are cutting the cord cbs chairman and Ceo Les Moonves says its a good thing for the media giant. Here is what he said earlier today on squawk on the street. When people are cord cutting or leaving cable, theyre going somewhere. Theyre not going to the thin air. Were also involved with skinny bundles, the ones doing smaller packages of 40 channels. As well as we have cbs all access and showtime over the top which are direct to consumer offerings. No matter how you want your cbs, theres different ways to get it if you leave one service for another, were still there and getting paid more for it investors not buying it, stock finishes lower by 4 i dont know if i agree at all, its coming back, its got to go somewhere. In fact i think people have been eating too long at this buffet with all this extra food they never needed to eat, whatever metaphor you want to use im not sure every dollar needs to come back to this space theres a whole generation of folks who are not used to paying 250 a month for cable if youre the guy supplying roast beef and people dont want to eat roast beef anymore, that roast beef purveyor is out of luck that roast beef person could be cbs. If you have the brand of roast beef that everybody wants, its going to be on every buffet and maybe the only thing there in my opinion, i guess the roast beef is the nfl. Thats the king of all beef tim is saying maybe that roast beef is a little aged now. Its almost beef jerky. There are declines. There are vegetarians out there. People say its not a big deal at some point it becomes a big deal it seems as though peak viewership of the nfl happens sometime in 15 or so. It seems like the trend is going the wrong way. Les moonves will say it doesnt matter, its still a premium product, its still roast beef peak content costs for what these guys were paying, im not sure where we are with the nfl theres going to be negotiations for rights for new games coming up but if you think about the numbers they were getting on those last contracts, will they get the same ones . It all counts to the cost of the content. Coming up, the story of the afterhours session, oracle stock down 5 . Well give you the comments from the c suite. Im melissa lee, youre watching fast money on cnbc, first in business worldwide heres whats coming up on fast. I cant do it thats how bitcoin investors feel top wall street strategist tom lee says buy the bitcoin bear market hell be here to tell us what has him so bullish plus extra, extra, read all about it a top investor says fake news is a real threat to facebook and google kara swisher weighs in when fast money returns cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Being the incredibly busy man that i am, ive asked chase sapphire reserve cardmembers to scout the world to find my next vacation. Elton, what are you up to . Im having breakfast in uganda. Uganda be kidding me, elton its a. Its a joke. James, were going to look for gorillas hang on, what . Thats a real silverback gorilla. Look at it no, dont look at it. Shhhhh stay. Okay. Im freaking out sapphire reserve, from chase. Make more of whats yours. And the wolf huffed like you do sometimes, grandpa . 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