What are we doing . Interesting but smart leading the feds beige book. Leading with beige. Check in on regional economies is telling two very different stories. How we are adjusting to the trade war. On one hand the beige book highlighting a retail chain that raised prices on furniture but is considering reversing the price hike because consumers arent buying it meantime, in cleveland manufacturers are feeling the pain by cutting overtime pay rather than laying off workers things looking up in philadelphia and new york. This is like a choose your own adventure book choose your own beige book. Are you allowed to do that . Is the economy headed down the path of new york and cleveland or are we Holding Strong like philadelphia and minneapolis . Gia dam uy adami. Ill be optimistic. Things look okay, not great. Thats reasonable. I think that along with the news out of hong kong where things have been tapered down for a couple of days, thats encouraging. The market is up 3 4 of a percent, 8 10 of a percent im still not convinced of anything i dont think anything is fundamentally changed. I think the concerns are still here despite some of the news were talking about now. I still think the market is headed lower with the fits and starts along the way if you want a bullish signal, ill give you one. The iwm had a decent day today we have flagged 145 a number of times as a line in the sand. If you want to be bullish in my opinion you use that as your barometer. As long as the iwm stays above 145, you could theoretically be okay in the swp. Youre presenting the optimistic case, you are not an optimist, you are a pessimist. Maybe not that deep actually. Wolf in sheep clothing. Is that right sheep in no, youre a wolf im a wolf in sheeps clothing thats the one. Scary. Karen let me make sure i understand. Yes. The beige book. Can you explain what the beige book is . A little bit. Survey that the new fed president semi, it doesnt come out all the time. No, its not like its every week. Im wondering, were some of the most recent trade issues felt in the beige book data that were just seeing right now . No. Like last weekends tariff increases, no. That makes me think, okay, its a little bit backward looking. Im very concerned about the trade situation and its effects on the u. S. Economy Going Forward so, i mean, there is some stuff to like i like autos seem to be modestly higher there was some commercial real estate that was actually a little bit better. You know, we said that other bit of data, was that yesterday the pmi . Yeah. So i dont know, im starting to see some cracks im very concerned and im not that optimistic about a short term resolution about trade. That makes me todays nice and the market bounces because im long. You dont believe it . Im going to be long and lose money. This is a glimpse into your psyche. Really it is. This is something i probably dont want to know. Very deep. But so a glimpse into the beige book folks, for folks wondering why we havent done this in 13 years and decided to do it tonight, im trying to figure that out as well. Look, its a real time measure of where the feds regional districts are seeing Economic Movement in consumer, manufacturing, Different Services and you get an overall read on the economy. The reason we should be talking about it, just yesterday, monday, its been a holiday week tuesday we had an ism that printed back to three year lows. It was the lowest weve seen since the worst of the financial crisis its important to take the temperature of where the economy truly is where manufacturing or the ism looked reasonably poor what this beige book showed to me is that you have, first of all, obviously regional strengths and weaknesses but overall Consumer Spending continues at a moderate pace theres been nothing notable in terms of a pull back the worst kindof story in here what i read with regard to housing, that to me is more structural because of Inventory Services this isnt growing as briskly as people would like to see despite the fact that things are growing. Half full my psyche. Thats a dig to me. Youre 3 4 empty in fact. This is in from our executive producer who says the beige book is taken before on or before august 23rd. On or before august 23rd okay. Thanks, kevin. That leads me to think, pete where do i live predisposed to be optimistioc you love what minneapolis had to say. When you hear cleveland talking about cutting back on shifts and cutting back on overtime and this is all the way through august 23rd, does that make you concerned that perhaps, perhaps this will filter to the u. S. Consumer which has been the engine of strength yeah. I think you have to look at it that way when were seeing whats going on, obviously the minneapolis numbers look fairly bullish. That was the whole point of this thing is looking at where is it good, where is it not good looking at minneapolis, what people dont understand is youre getting a huge swath of S P Companies literally within 50 miles of the S P Companies. You have a huge number of s p 500 companies. Target to polaris, you can go through a long list of these companies. I think thats probably part of my bullishness sometimes or whatever it comes because of that, what were seeing it gives you the diversity i think the interesting thing is so far the consumer has held up and all youve got to do is look at this whole earnings season, you look at walmart, target, even michaels stores, its really impressive to see how strong the consumer remains. Now is there weakness on the horizon . I would think however long this trade war goes on, i think it will continue at least through probably at least december or further, thats going to start being an issue, i think, and slow down the consumer in some way, especially in the areas that are so positive like were talking about now. So as the markets remain a few Percentage Points away from alltime highs whats the saying, markets dont give you market dont give you that long to buy the low or in this case sell the high are we there . Yet they have. Yet they have. No, im not saying im always right. Thats my saying i didnt say it was a penny earned that doesnt make any sense now either. What would you say now . I still think look, i have to own up to it and say, listen, the market has been at these levels for quite some time i guess it would indicate we would see a breakout to the up side but, again, when i look at the world and see there are a few reasons to be bullish in stocks, there are a number of reasons to be bearish. Just the way i look at it, the bad out weighs the good. I understand that the markets hung in there extraordinarily well i get it in terms of the consumer and Consumer Confidence quickly, in my world, all Consumer Confidence is is an overlay of the s p 500. The market does well if people feel richer. People feel richer, they spend money. Look at october and november how quickly people stopped selling money. It coincided with the market going down 20 in six weeks. One thing that makes me start to question how long this is going to last, when i see gold and silver lowering including today, we rallied back up almost erasing everything from yesterday. Look at gld, sld, look at whats going on in the precious metals. We continue to see more and more paper saying they arent done yet. They still seem to think there was more up side. As you mentioned, stocks pushing higher our next guest says there are three charts that could tell us where we are next. Lets get to mark newton of Newton Advisors whos over at the plasma what are you looking at . Lets look at three charts that will put this into perspective. We still have the ongoing range for s p. This is something that has been guided the up side and down side for this market over the last month. Despite all the issues and worries, policy uncertainty, trade war with china, increasing signs of a slowing economy the market has been incredibly resilient. Only 100 points of alltime highs. This is something in the last couple of days weve seen a little bit of improvement. You saw concerns about chinese tariffs. S p only got down 50 of the prior. It didnt get all the way back down breadth has started to get a lot better today we saw four to one positive breadth versus yesterday it was three to two negative we were a lot more positive on todays strength than we were negative on yesterdays weakness im going pessimism. Guy adami eluded to the same thing. That sea of pessimism is obviously what can help the market actually move a little bit higher into the first part of september this is the other one, technology the largest sector in s p. This is about 22 of the s p right now. So its almost 1 4 of the s p is technology until we see some evidence of technology breaking, this is still going to serve as a tail wind for stocks. The stocks close at the highest level since late july. We see stocks like western digital, seagate hit the highest digital. Intel had a move facebook started to claw at the bottom this is the key to the whole puzzle which is apple of course. A trillion dollar market cap stock. This has formed a very interesting technical pattern which is a symmetrical triangle on the heels of a big rally. 80 of the time after a big run up these triangles oftentimes are resolved by a movement to the up side, not the down side so my thinking is its a huge constituent in the xlk obviously the s p, the qs, right now with charts looking very bullish on apple at least for a breakout to the up side, i dont want to be betting too much on the down side just yet you want to see a break in technology you want to see return to that pessimism turn to optimism, this hong kong could be it thats a key resistance. We might get up to 3050, 3075, thats my target i expect sentiment will get more and more bullish for now, you know, its really right to bet on this 2940 being exceeded in my view. 2940. All right. Thats almost where we are right now. Right still a little bit higher mark newton of Newton Advisors tim, paul hickey said weve been at or around 2900 up and down from there. 25 sessions in the past month. Yes so is that are those charts convincing enough to you to say, yeah, well go higher . Well, i think what marks pointing out is if youre drawing that trend line off of the lows, despite all of the volatility, to be clear, this 150 poimpt range on the s p, theres been a lot of volatility theres been a number of days that have been plus minus a number of days ultimately i think if you look at where the market has digested the yuan, dollar, yields, it didnt break out, stayed at 147 on the ten year, i think thats bullish. I think sentiment which had gotten certainly a month and a half ago was way too bullish, certainly overly corrected to the down side. I think the risk is the up side. Youve been beating up there 11 times you failed at 2940, thats bullish. Talk about apple. So im not a macro trader, but i am long apple and, you know, im nervous because i do think theyre somewhat in the cross hairs of trade, however, i do want to own it im willing to ride some volatility which youve seen we may see more. I believe in the evolution of the story and i want to be there for 5g i dont know when well really start to see that going, but im not going to be good at selling it before then and hoping it trades in front of that. Im happening on and nervous but i want to be long. Look, i think the bull case is you understand the president has the market i guarantee he watches it all day long hes laser focused on it if it gets to a certain point, hes going to do whatever needs to be done to get the market higher i think thats part of the bull thesis i think thats legit we looked at a chart that looks like its breaking out at the up side we had b. K. And braxton worth talking about the megaphone. You can look at the charts and have two different outcomes. I look at the chart. Im predisposed to be negative ive said that from day one. What can go wrong will go wrong. I look at all of the headwinds the vix at 17. 5 is too cheap. Coming up, slack getting whacked in the after hours the companys Conference Call is just getting underway. Well break down the big headlines. Later, high risk high rewards. The booming cannabis industry. Pot stock folds are betting on another big breakout well debate that ahead of tonights big premiere 6 p. M. Eastern time were live in times square much more fast money after this do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Hey. You must be stevens phone. Now you can know whos on your network and control who shouldnt be, only with xfinity xfi. Simple. Easy. Awesome. Welcome back to fast money. Weve got an earnings whip for you. Slack fell tumbling after reporting lipton is on in palo reporter thats right, melissa. To give you some idea, Morgan Stanley puts slack at 20 on a growth adjusted basis. So slack really had to come out and justify that pricey premium. It came up short shares are plunging. About 14 in the after hours, 15 now. Within striking distance, just 40 cents above that direct listing or Reference Price of 26 a share. In that joining other newly public unicorns, uber and lyft in their post ipo slumps the call is just getting underway it started with founder and ceo Stewart Butterfield. He said the next five years will be very different because they came out of the gates with a near perfect market fit but over the years theyve begun to see real Product Market fit for Larger Enterprises he says that they saw win after win from some of the Largest Companies in the world now butter field also calling out one use case that uses office 360, a customer, but he notes that that Company Still chooses to use slack for communication. In talking about this, hes speaking directly to some of the biggest jitters and some of the biggest concerns around slack and that is competition from Microsoft Teams and slacks ability to win paying and big enterprise customers the company saying they grew paying couples by 17 year over year to 100,000. Slack ceo and founder Stewart Butterfield will be on dont miss that. Deidre bosa in San Francisco on work which is a ticker for slack. For them to say, oh, if the customer uses windows 360, still uses slack, i mean, that would be a huge concern. I think it is a huge concern. Its something ive voiced many times about this company because of the fact that my concern is theyre going up against the biggest of the big who can really get after them and they already have matter of fact, microsoft already has 13 million daily active so theyre already going in front of the competition. I just look at this, mel, as this is going to be a brutal competition. And weve seen this go on with snap, with twitter, with all these various instagram and all of this stuff. Its amazing how much competition is out there i look at this i love that they have growth Revenue Growth is great. You look at the weekly users and microsoft is really beating them badly. I think when you look at that, you have to say it looks great for microsoft in my opinion. For slack, theyre still losing money. When are they going to make money . This is like uber, lyft, some of these others show me the money. When are you going to make money . I dont know that theyre on the path to make money. Especially when youre looking at the premium compared to sas peers. Thats the problem, price the Revenue Growth is great although the rate of acceleration is slowing. We see that in many other companies. Its just a question of valuation. This market is really not theyre not going to give you the break that you would have had maybe, i dont know, a couple of months ago these i think we just saw a headline of sales and marketing going up in the second half. So theyre going to lose a little bit more. I dont think youve got to it should be down a fair amount because the valuation is just too high. Lets get to palo alto. That stock is also lower josh lipton has more on this josh reporter lower but well off the lows they had been down a whole lot more i did check in with a couple of analysts two issues they flagged as a concern here one they would argue the ceo took over 12 months ago. Hes been making acquisitions and focused on free cash flow. That did miss by 25 million. If you look at the product segments, product as a segment, thats legacy, on prem, fire wall, hardware, software, 306 million, that was a miss as well he was sort of laying out his strategy for this company. Hes telling analysts, listen, almost every customer he meets is on the way to the cloud he sees this growing strongly and he sees big opportunity for Cloud Security thats why hes making acquisitions he announced another one, i. O. T. Company called xing box for 75 million. He intends to build the best platform out there hes thinking about this company and be sure to check out the interview tomorrow on cnbc on squawk on the street i. O. T. , internet of things. Palo alto continues to take share from other firewall vendors. In a world where we were talking about the multicloud vendors, microsoft and google being so dominant and i think going to be beating up continually, i think theres a fire wall between those guys and these guys in firewall space i think its way too specialized. I think they continue to fly in this vein. We have a market flash. That stock is plunging in the after hours session. Meg terrell has the latest. Mallenckrodt is down. Theyre restructuring and has hired the law firm latham and watkins and Alex Partners to advise it. This is a report from bloomberg saying that they may choose to seek bankruptcy protection here if its legal liabilities arent manageable this has to do with the opioid lawsuits that are happenin around the country right now its one of several Companies Named