Transcripts For CNBC Fast Money 20240713

Out to new highs deedra bosa has details on alphabet. Larry page stepping down as alphabet Ceo Sundar Pichai ceo both of google and alphabet in terms of day to day unlikely to see major changes which is why you may missouri not see a lot of change in the alphabet stock. Under google umbrella pichai ran advertising cloud devices, software he has been ceo since august of 2015 since then alphabet stock has soared relative broad are market but underperformed wig tap peerings remember the split from alphabet to google. Alphabet was the place where the moon shot including way missouri, selfdriefgt stores internet balloons and health care projects. Perhaps the question now is what happens to those moneylosin initiatives . Will we see more financial zmin under pichai and ruth porat from wall street mo has been known for financial dplin. As pichai steps up does he step away from those and the traditional businesses like advertising paying for them. Deirdre bosa wove been tweeting over this news when it broke. What do you make of this, karen . Well, i think it shouldnt be a huge change. I mean, this is a very big the largest position, actually im not concerned about this i do think deirdre talked about the financial discipline we started tosz it when they brought in ruth porat going back a few years. And then we wanted more clarity and they split to two. And we wanted movement on the Balance Sheet and addressed it, could have done more but started to address it. I think theyre doing all the right things it shows how important having a good Succession Plan is versus getting to somethinglike tesla, you think what is the Succession Plan there but i think theyve done a good job and as an investor its not much of a change. Five, seven years ago this would be a bigger deal its on the margin its a positive thing sometimes you need the fresh set of eyes. Ruth porat came in and the stock meandered for a long time. The stock then was either side of 60 oh but it never looked back financial fiscal responsibility. I think a new set of eyes is a good thing them walking away i dont think its negative. If anything positive 17 eps growth trades at 23 times forward earnings i know its not a black buster stock. But you look at it slow and steady wins the race for goog. Pl were within a whisper of alltime highs. Kara swisher made a couple of great points as she normally does that pichai was already in charge of google and youtube for some time. That page and bryan have been awolp its a dual class structure. They still have control effectively of the company. Great points and makes you whether some of it evolved out of politics the company is facing there are headwinds on the regulatory side. There is enormous i think tailwind to thor to core business the control of costs, whether two the tack costs or cap x these are things in the last three or four quarters investors have been comfortable with what the company is doing if anything the secular business is alive and well. Gaggle cloud is growing and going it to be a major business. You worry about the regulatory maybe this is the guy to take them out of the lime line light. Because they are the founders, icons, Major Players in the politics of Silicon Valley and what goes on beyond there. I think maybe this changes the tack a little bit. Maybe as the ceo position, in opens up the opportunity to go into a focus of where they really are because they are spending money in place that is not everybody is excited about the reality is are they spending more and putting more into you brought up cloud i think thats where they need to go. And and i think this they are moving that direction. They have the right ceo. And financially fiscally will the spending habits, that something ruth maybe able to step up now and put in more. You mean a dividend. Maybe. Think of all this we talk about free crash are cash flow with every big company we talk about on the desk what are they doing with that . Obviously a lot of acquisitions over type all that type thing but Something Like that mel which would make a lot of sense. Look how well thats worked for the apples and microsofts of the world forever thats something they should do. I have a question. You do that. I have many questions at many points in time but one particular question at this moment are we lacking back at this change of leadership and think this was to alphabet was Satya Nadella was to microsoft i dont think so and here is why. I dont think google needs to do what microsoft needed to do. Again there was some momentum behind that change at microsoft. But microsoft moved to the public cloud, everything theyve done to not only complete but wreath wrestle away from amazon and goingle i think has been well on its way as weve all talked about towards the transformation it seems like it but i dont think its the same thing. I dont think so either it because of the fact where has he come from versus satty nadal eu a at microsoft . Lets mot forget goog sell a fine company, alphabet a fine company. Moik microsoft was not and they needed somebody to transfer to where they are they hired the high guy. And now pichai he and ruth can build this company to a big are company focused on cloud but they have all theary verticals they can bring in money. I think of the regulatory weight off the back of the company that could unleash value. I dont think we get that for a while. To your point those two could potentially them stepping back could east things a bit. Remember they didnt show up, kmoes not to go to congress. Well see if now that its not up to them whether or not they send someone look at the france the what started our tariff spat. The digital tax. The digital tax, right. We have not a lot of clarity for a while backup thats which the stock isnt higher i dont want to say it was floundering, microsoft but it wasnt doing well. It was trending well with the bruder market. But he walks in and the stock doubled under his leadership which is significant if we have a conversation about ibm six months from now we could have the same conversation if this is a water shed moment. But piperafter initiate add 1500 price target as did citi i think on the marlanaens this is a positive thing. The regulatory aspect these two guys stepping down, if nothing else probably aleasts some of the pressure, not all. So i think if you look for a ren one more reason to buy the stocks in as good a a reason as any. With all three major indices in the red the third day in a row. Process check out the dow falling 2807 points. Is the market rally taking a breather or is this a sign of more pain ahead . Yesterday you guys were all sort of cautious on where we were here we are now. We had i thought a thoughtful conversation about the timing of of the when the deal gets done i think we felt it could be done but not tomorrow boom today announcement on timing we dont know thats the timing. But the fact of the matter that President Trump thought it was advantageous to sit across the pond and say, you know i can wait until after the elections whether he can or cant i think this continuing to be something hanging over the mechanic. When you consider the market the market has going into this period and the level of complacency we talk about all the time on the desk its not a surprise that the markets reaction was but, again you can see the market closed on the highs of the day and came back from a significantly lower print earlier. Its funny, i just was in shock because its a Holiday Season and that ebb kneeser scrooge he sees all the governments. I dont want to give it away i havent seen him in forever. Joe. Just did. Not only is he good you know. He is the man. You got to book me early. Ill say it again i think President Trump is flaying he is playing a little stock market. He feels he has enough equity in the tank he can take shortterm pain in december, january, maybe do something in early spring that will set him up well for the election in november 2020. If i were him, and if i used the market as the one indicator for my reelection, thats the way i would play it. Wait until the spring step on the gas then and then homeward bound for the election in 2020 which is why i think you could have a painful december. I think you will absolutely go through with the tariffs on the 15th he is forced to. Its house money at this point. House money. He has said that by the way. Exactly well we have to ask here what is the true cost of the trade war if it drags on another year or longer lets bring in joe lavonia pb cnbc contributor great to have you with us. Thanks. Its fine President Trump dont think he needs a trade deal to win the election but he needs the economy so i guess the question is longer tariffs trag on the economy and to the extent new tariffs go in place what is the cumulative impact of that. I dont believe the tariffs are a big deal also i ha hate the trade war this is a negotiation. I dont like war its sort of like belittling to what war is of course. The reason i think its not a big deal is twofold. Number one look at the total size of the tariffs its about 600 billion people compare to nominal gdp. But you have include total output some of the tariffs arent final goods and services about a 40 trillion economy you look at 1. 5 of the total economy. Its all about the fed the reason the equity is where it is is because the fed pivoted and cut rates and housing and construction are turning up. Thats why even if phase one gets done. And i cant read the president s mind and im not a mind read ner general. Even if phase one is done. Its still a higher level of tariffs than 199and for 2020 im bullish on growth. You have 1. 5 job growth i dont know which we cant do 3 growth and unemployment moves down to 3 . Youve been bullish in the past six months when im hearing about recession. Let me give you the pushback when you paint the rosy picture dont people talk about cap x and business spending and confidence and leading indicators its not every ceo is not reinvesting every country in the world is curtailing trade activity, trade velocity slowing down. Thats true however, the sector arguably the most sense i have to to cap x manufacturing is recession thats turning for a couple of reasons. Number one manufacturing is cyclical we see data right now that is at weak as since the recession. But you have the boeing, 7378 ho 37 max, hurting aircraft the gm strike. Inventory correction you need to work through as we move to 2020, cyclically manufacturing in my opinion is poised to have a nice recovery and cap x will go up with it people talk about uncertainty as if this is a new Concept Companies may actually do more if they have to possibly plan for a couple of different outcomes cap x will do okay maybe not great but okay. How about the consumer . I mean the argument is that the december 15th tariffs hit the consumer hardest and the squurm is the powerhouse. You raise a good point why the tariffs arent such a big deal its prudent policy. Its the only negotiating tool we have. Were not going to wto and, you know, jude kait that debate for years on years i mean its the only approach we have is this approach. And i think its working well. So no impact. No. No impact is too sfrong very little impact to me this is all about the fepd the fed has been way too aggressive in tightening monetary policy. Id like to see them cut again if you look at the two year note and fed funds rate not enough spread you look at the fed rundso funds rate 10year not enough spread i like if knead cut rates. Well see. The fed funds rate at 1. 63 . Find the 150er sovereign yield yielding at that level no one, no where thats the story its all about the fed. Let me push back on the consumer a bit some of the tariffs until now have been absorbed at various places along the line whether manufacturing, or the retailer or currency shift. That wont continue to be the case if we see implementation of higher tariffs and its visible to the consumer in an iphone, for example. If that were to happen. Possibly karen. Companies ought to be more efficient and productive to me this is a great excuse for companies who wouldnt have been able to rejig are the supply chains ut out outside the china without the president giving them cover to do so. This is longer term is excellent in trying to diversify the distribution chains, production channels well see what happens. As i said at the outset you are looking at a very, very small number and to me thats it doesnt add up to a whole lot the underlying interest trend in prouchltty is more important a lot of business to regulation. Some of the stuff takes time we try and judge the tax cut in 17 real time. Give it time if its in place a while the supplyside effects will be positive in my opinion the bottom line is if you believe that the markets are reacting to what the impact of a pro longed trade war wsh ier tariffs could have on the economy, the markets have it wrong. I think the markets have gotten it right. Thats my point, the tariffs have been oversold we wouldnt have got ton 3180 or 230 oh on s p if it was all about tariffs. Its been about the market realizeding the fed which had overdone it reversed stimulating financial initiatives thats the most important i watch. Look at the yield curve uninverted which is good didnt get too negative. Didnt stay negative a long time but melissa i want to see the curve steeper thats where the feds it needs to remain dovish. Great to have you. Thank you, everybody. Thank you. So i watch the show. All about the fed. I think a lot of people have said that i watch the power lunch from one to two. Two to three. That too. Thats fine. I was in chicago watching but you had on an analyst talking about 175 for earnings for the s p and he thought the right multiple in this environment is 20, 3500, s p 500. I dont know how you get there im not bringing him back but i think joe is in the. Not allowed to come back. As long as youre not here. He brought him back. I love that. Im not nearly as bullish as joe with you but i can understand how he makes the arguments. I think december could be painful. And i think december 15th is going to be painful. Pete, december painful. Id say youre right and i think well see a spike in vol but might create another opportunities another time to step in because i agree with joe. He is back. Well he probably back in because of guy but the reason that i believe in what joe is saying i think there will be that reaction though because wove almost told everybody hey if it doesnt happen december 15th man this is really going to be Something Else its preparing for example for the big whoosh to the downside will be the opportunity to buy today we never not got above 17 on vix yes coming from 11. 5 but it should have gone towards 20 today down plus 400 points to the downside ant werent there and started recovering almost immediately. Still ahead results from two big Software Stocks the fwrup on a tare this year coming up you hear an analyst saying the sector could slowdown well track the sell off and break down the market levels you need to watch. Live from times square in new york city. Much more fast money right after this donald trump failed as a businessman. He borrowed billions and left a trail of bankruptcy and broken promises. He hasnt changed. I started a tiny investment business, and over 27 years, grew it successfully to 36 billion dollars. Im tom steyer and i approve this message. Im running for president because unlike other candidates, i can go head to head with donald trump on the economy, and expose him fo what he is a fraud and a failure. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Whether youre out or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Welcome back to fast money. We have the earnings alert on two Software Names salesforce on workday. Beating on top and bottom lines. Salesforce Conference Call getting under way. We are listening and bring you headlines. In the meantime lets Talk Software in general because its been a bright spot in the market the ig etf track the space up more than 30 . Lets bring in jerry wisefield, the tech managing specialist at jeffers. Thank you for having me back. What is it about sphere, the valuations themds or the environment of the markets its a better time than when i was here last was the height of the crash. The transitioning the team and igb on a inkrelk back to 230 last friday. Similar to the last guests point. Interesting topic you have the 150er back up. So important for this sector so many of the termial nall vaf niece High Growth Company is so much of in value is derived from that incredible license active to interest rates. Now you have the fed playing ball and the tailwind of the 10year at 1. 7 . Its a natural tailwind for the group. Its a q42018 on a a lot of investor minds given the market was upon a precipitous drop. You think about the tail nds earlier this year in is q1 down to 1. 7 on the Second Derivative basis you and you think about the rate of change its less accommodative. Optimistic le the prior guest thought we would have cuts and that maybe a boon to the rest of the market but between that and lapsing the trump tax cuts but wasnt artificial demand but a onetime benefit boosting spend you have more headwinds than not and all of the names are trading at very high valuations. You are talking about companies tradeding at 20 to 25 times revenue not necessarily 20 to 25 times earnings you are pricing in a lot of goodness its something to watch heading into 2020. How do you think with the china trade war on impact on your secretarier the interplay between software and Semi Conductor is the most topical and rightfully so when you think about the economic from the economic perspective. Semi conductorers are are at the heart. And the suffolk Semi Conductor have break broken to alltime highs. The microchild support being stocking about the high end of age positive commentary on becoming its interesting relevant i have to what joe said before despite the mentals we are see positive developments from the cyclical perspective and a lot of the markets already in recession in calendar 2019 think industrial, automotive, you have really easing camps heading to calendar 2020 you are pricing in goodness with respect to Semi Conductor give the forward multiple for the group. Be cautious in terms of what you are thinking about but in general i think its clearly the most economically sensitive for the group. But a lot of the companies will power through. Jerry leave it arthro. Thank you. Jerry wisefield. Adobe aname we talk about all the time finding its way on the list its a valuation jer jared mentioned valuation. Pu you find it is back at the 05, a prior high if you want to play this stock i think were at the cusp breaking out significantly to the upside a or double top not unlike salesforce which you mentioned before if you are looking for a stock interesting and the risk reward see how adobe trades against the 304 levels the next couple say some of the sas stocks are priced for perfection. Great numbers but not good enough to keep the stratosphere he can multiple i would be afraid to step in here. How do you feel about the chips, pete. Im confident in a lot of the names. Even though some on the upside some from great Balance Sheets you look at the pe levels. Late in the day today i bought seagate sort of in that world in their own way. I thought that was interesting i look at a name like that where its trading in terms of pe nearly single digit. I think micron some of the other names im Comfortable Holding the names right now. Well if you think about the semis, look, as jared pointed out they bucked in the face of cyclical headwindsen a outperformed when any led the mechanic if you look at a taiwan semi which is a way to value the group. This is a company that i dont think is terrible expensive. And if if you want to think about the role in kind of white labeling chips for the space i think it looks good. The bottom line is i think carter brought this up yesterday. Can you give Something Back here in the semis and still be in the uptrend i think that was the key to the analysis and thats what we do. For more on the big earnings head over to cnbc. Com. We have more fast money coming up look at whats on the docket. Announcer the latest blow in the trade wars stocking stocks today. But what stocks are poised to to take the biggest hits. Later Options Markets making big bearish bets on the tech fseor weind out what they are saying fast money returns after the break. I wanted to insert the fact. Didnt tell her to be quiet. Is this your only child. Yes you cant tell yeah. Welcome back to fast money. It was a rough day on wall street today sell offs smacking every sector except for the utilities and the reits. Banks consumer discretionary, energy, industrials, tech hit hard after President Trump suggested he might want to delay a trade deal with china until after the 2020 election. So if the trade war drags on another year who has the most to lose. Dom chu at cnbc headquarters with more. So melissa, already some movement in stocks and groups. Jockey by trade ner some industries and companies the focus of the next round of tariffs on chinese made goods imported to the United States. As usual a layuppedry list of items but a number of key product areas will get more attention. Along with the companies the most closely associated with them for example you have smartphones part of that ris or as they are called in the u. S. Trade report telephones for Cell Networks or other Wireless Networks. Year impacted areas food items, clothing text tiles, babyrelated goods, sporting goods, toys, consumer electronics. You name them. Now the team at strategy as Research Partners put together ais relief 30 companies with significant busy exposure to china coupled with lobbying efforts with regard to chinau. S. Trade policy. Apple is one of the battleground stocks when it comes to tariffs moviely for how adept its been as getting exempt from import taxes also on the strategy as list with regard to other companies. Intel and Applied Materials and micron op the list hp ink on there as and this theic shoe and apparel make are nike and retail walmart giant the closer we get for the december 15th tariff enactment date to those could be the companies that see market volatility and activity up or town depending on the progress of u. S. China trade talks. We know these companies have been at the center of this for months if not years now. Back to you. Its interesting, dom, because the list might have the most impact dollarwise in terms of business from the trade war but may be the best suited to navigate the trade war in terms of absorbing the costs or squeeze going down to the suppliers. Thats a great point. And to that point at this stage apple has been good at navigating it. We have seen walmartible a to do that better than others as well thats maybe not just solely for the u. S. China trade policy but also because of the execution on its own Company Specific initiatives. But a lot of the companies the larger they are you have to figure they have some way some means to shift resources, shift kind of the assets around to be able to either weather or adapt to the current environments they are in nike is another company. The a lot of the goods made in the freighter china region could be impacted by the tariffs whether or not the stocks are hit adversarily yes hit but not as hard as pores process so there could be haves abhave knots given the situation between u. S. And china. Dom chu in the flesh. Hearing from several companies saying trade war saying impacting earnings all citing china as a sign of weaker profits or guidance could there be pain for the names and the sectorers that dom mention zblod back to nike not even the early stanls but some where midway and 3 4 of the way through the trade war we heard nike reiterate the China Business is alive and well as much as apple is sfozed to china, the china exposure was priced in a year and a half ago. And apples rerating has been something according to the services and the wearables i think we follow that the good news for stock pickers is you have seen separation between true trade war stocks and those not. I agree on nike and they have buying power they are a Huge Customer and can push back a little one sector thats interesting for the vulnerability is the luxury goods sector they have tariffs and hong kong, a huge market obviously down 25 and also that as if markets around the world go down, the buyers of their goods feel less wealthy and thats going to affect them as well. One thing i noticed bibles and rosary beads are exempted from december 15th tariffs. You can pray for a halt to the trade war. It is good news, i mean look youre making fun of me. I like my rosary beads i have a pul pair made out of crushed rose petals fragrant and aromatic. You brought it up. Very nice. Thats pot poury go back and lock at the stock in april, a huge move to 59. 5 and failed and failed very quickly and traded down to 45 well the move recently from august is right back to the 59 level and seeming failing again. If what dom just talked about lasts for a lock pro long. Intel trades back down to the 45 level regardless of valuation when you look at the list i think the quality names werent complaining about the trade war. I think it come down to again who really navigated well through this and who did not if you look at it ups did fine fedex blamed the trade war you continue to go stock by stock through here and youre finding more and more who is blaming this on trade war tensions, whatever it is and who sources properly like target and some of these places maybe already shifting some of it at least they can away from china to other parts of the world. But the question at this point, pete is you have a pairing like fedex versus ups and you think fedex is the rebound player, closing a gap. People think that. Bhafr you want to say about fedex. If the trade war at this point if the trade war is pro longed you cant wait for the bounce. For the fedex are of the world. That have been hit. That have blamed. I would expect if this persist as longer period of time i would think the names that have somewhat failed in this deal in the last quarter theyre going to be the ones going down the fastest i would think. But if you talk about a fedex versus ups, i know you use this as example when you have the relatively value trade you have opportunities to take advantage of the volatility. And i think in fed iks capes reporting on the 17th, the integration across europe is lowing down. I like fedex here. All right coming up, the best performing sector this year but pgs ohs trader bet on a tech takedown well explain. And plus the rare green arrow aba stock piraerpeft culled a mustown you know the name. Well bring it when fast money returns. My parents never taught me anything about managing money. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Welcome back to fast money. Tesla ceo elon musk at the center of a court case jane wells has the details. He is on the stand right now, starting to get into the meat of the issue. Fantastic sorry about that. Hello how are you thought id us the micron i ran out here they were just asking him how he felt when he saw vernon United States weather on cnn saying stick the must be smrn where it hurts. That was wrong and insulting thats key the. Look at the video pip i havent seen the defendant in this case elon musk did not show up until after the jury was selected and after Opening Statements he didnt even enter the courtroom until called to the stand. United states weather attorney is walking him through the time line of his involvement in the thai cave rescue when he put the subover there and which didnt do anything and United States weather ridiculed it on tv and musk had the tweet calling helm a pedo guy he called him pedo guy. The judge told the jur they have to construe whether it was accusing him of being a pedophile. And ee lyn musk didnt take care to find out whether its true or false. And he has to prove damage how has has it damaged you. I come 5,000 to get a verdict that its not true. The cave expert the tweets have shamed him, mortified him feeling isolated seeking at least 75,000 which is the threshold for federal court also filed a suit in the uk the jury made up of only 8 people three men five women process mostly College Educated watching musk closely the attorney the judge thinks the case could last the we can. There is one tesla owner on the jury a few people had to be excused because they follow elon musk on twitter and thoef a very good opinion of him by the way i should tell you when he went into court for about the first ten minutes on thestone his his body language he was Drinking Water occasionally like this and then he finally relaxed a little bit thats not good body language that means youre keeping something from people when you cross your arms, right you never see us do that on tv. Its also him its him. Yeah, yeah. And jane, just to be unsworth seeking 75,000. Not a big payday. Well also seeking punitive damages which could be higher if they find actual damages and find for him they could punish elon musk by with punitive damages which could be higher. But the interesting thing is uns worth has been seeking financial documents from musk to find out how much he is worth something musk has been fighting and says is unnecessary, another billionaire not wanting to let you know how much he is worth. Jane wells. Sticking with elon musk and tesla rare green spot in the sell i dont have. Piper jaffray upping the price to 423 26 higher than current levels saying the high volume manufacture manufacturing and capital spend make it a must own suffolk stock. Look at the shares the past year does the logic hold water pbo, pete its interesting because they avoided talking about the financial side of this thing in the update they gave but theyve been right, mel. This is a 373 up a 420. 420. Theyve within right. Theyve been riding the wave think there is more in front i give the analyst credit for that but it does come down to the numbers and you have to krunk the numbers down yeah a bit more cot effective, more efficient, working with china on the delivery. But thats still were still talking about 2021, 2024 and here we are in 2019. Were looking way out in the future im still not convinced that i need to to be in tesla right now from the postside despite the great analyst write up Deutsche Bank had a note on cnbc that tesla would produce the modely, the cross overin First Quarter of 2020. Thats soon. Talking and praising cautious cap x is the right thing to do for a lot of companies but for this company looked like they are pulling in kachlt cap x because they had to. Pete says they are not talking about the balance i agree. But they switched to a dcf approach to valuing the company. You can play around with terminal values of basis that arent worth anything right now. And they said that by the way, its not uncommon its what a lot of analysts do thats part of understanding where the number comes from. They suddenly added a longterm enterprise value to china for example, that they can put in the estimates. I think thats part of this. I think the one of the prongs of the tesla short is that they are blowing through consider cash and need more cash one of the positive effects of the stock going up is raising money theyve theyve done it 17, 18, 19 and could do it again. If thats part of your thesis. And that goes away. And that goes in which thats harder. Up next, tech stocks under pressure and options traders betting things get worse for the secretary are. Well break down the action. Later a top technician lays out the make or break rkmaet levels Everybody Needs to watch. That and more when fast money returns. [spokesman] if youve tried college but never finished, group cheering snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu welcome back to fast quick recap of the big news of the hour alphabet the ceo larry page stepping down Sundar Pichai to step down. And the role of alphabet eliminating. Its a natural time they say to simplify management structure. The suffolk is up 0. 8 petros its been there all after market long the phang stacks falling hard. Apple bearing the brunt of the beat gown and alphabet escaping into the green after President Trump hinted that there may be no deal until after the 2020 president ial election. And in the Options Market traders betted things could get worse for big tech before any get better pgs ohs play chief strategist at the plasma with the break down. This etf doesnt trade a lot of options contracts only about 6,000 a day. But today we saw four times the average value volume and puts outpaced calls 31 if we look at the volume today at the open we saw far out of the money december putting sold as things stabilized around lunch we saw 8285 puts sol toward the close we saw the large december 82. 5 trades at 960 contract raid i hadding for 56 cents it has a break even price of 919. 04 implying a 4. 5 down if we look at the chart we see we have the large rally since the beginning of october up to that 88 level and to my aoi see about an 83 technical level that correspond was that 50day moving average i think this trader is betting for a quick bounce to the down zblood toney, thank you. For more options action check out the full show friday 5 30 p. M. Eastern on cnbc all right coming up next we have the big levels to watch rit teth ghafr is this piece is talking to me. Yeah . Announcer options action sponsored by think or swim by Td Ameritrade i see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. Have you ever worked with dr. Francis . Oh yeah, hes ok. Just ok . Guess who just got reinstated well, not officially. Nervous . Yeah. Yeah me too. Dont worry about it, well figure it out. Ill see ya in there just ok is not ok. At t has americas best network, now with our best plans, at our best prices, starting at 35 a line for 4 lines. New from at t. Welcome back to fast money. Trade troubles spooking stocks tuesday. The s p 500 down for a third day in a row at lows of the day falling to the lowest level in a month. Is this setting up to be a dreadful december for wall street lets go off the charts with todd gordon with trading analysis. Com. No, i dont think this is going to be a repeat of last year i think we are in a solid technical uptrend here this is the weekly s p, a beautiful parallel channel here as carter worth would say, i dont draw the lines, the market draws the lines. We are well above support. I stand by melissa, i do have a 4,000 target again two to three years down the line. I dont know when it happens but thats when the current market at the rate the trajectory will intersect resistance this is the we cannily down to the daily. Broken above beautiful level its about 30 was resistance anything brekeen we returned to the scene of the crime, all for support. Its a natural check back. Anybody caught short will use that as a synthetic level to cover, buy pullback buyers will get in and momentum buyers carrying the s p to new high. I am long the portfolio stocks and like it. Dont like the last couple days volume intimidate but the volume has not been excessive on the down sppd trading about 80 million, 70 million spy shares similar to up days over the last months todays volume was not excessive. We are led by technology some of the sectors leading are xlk as tony mentioned, health care and also financials so by far right now nasdaq is outperforming the s p, the xlk outperforms. This is the nasdaq 10 oh up here relative to the s p you can see we move higher that means ndxspx which means ndx mochgt up. The 30 correlates to the 8030 in the nbx. I think its a nice entry point to resume the uptrend. But todd for the s p 500 we have about 60 points to the downside before we make real damage. Right now its fine im in the saying we get there i think that support continues to be right in the zone. We dont need to wait if you are looking to buy shares, add volatility is up volume is not large. Dont wait for the exact level if you are looking to add. But from a seasonal basis seasonality we should rally to the end of the year. Would would be safe havens be at this point in the market if you chose that route saw gold perked up today for instance. This was a big move down in bonds up in rates. So no safe haven there if you look at the sector rotation, the rotation we look at on a we cannily basis you have technology leading, financials coming in at the xlf might be a good place to hide in increasing rate environment. So i would say look at some of the banks. Xlf showing good strength. Guy. 60 s p boints points gets to down to 3030 if you look thats where we topped out at the end of the july. Huge move up in july then th sell off it makes sense we do the back and fill to the 3030 level thats where i think we go december rb we are, made me think of a lopping december by counting crows. Its a good song. That too. If our crack staff by the why the intro to the next block theyll play that just saying. Would financials be a place to hide in your view. Its interesting. Because if you look at stocks that fell out of bed today process look at bank of america, apple, either trade war or we talked about 2s 10s 17 bps flattening banks are incredible license active to the 10year pullback i look at the 10year clarity and if you want to follow the channels nice from the bottom up these guys have been talking about, thats one that maybe breaking down if that brakes down n gotood for equities. Our thanks to todd gordon trading analysis up next. Final trade. Different from Health Insurance . Well aflac gives you money directly, for things Health Insurance doesnt cover. Aflac we put together a little highlight reel for you. Heres aflac helping you with your deductible. Copays. Out of pocket costs. You look good paying bills. Get to know us at aflac. Com of millions of americans during the recession. So, my wife kat and i took action. 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Doprevagen is the number oneild mempharmacistrecommendeding . Ptech students around the world. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Dont believe it. Is that it. I dont know how am i supposed to. We should play the song the rest of the show and not say a word. No. Final trade time pete. Im giving you seagate. I think the chips and names around the chips go higher seagate bought late giddyup. Tim. Talked about goolg google the change at the top not change and the secular business is grate look at the other properties, cloud especially growth. Karen finerman. Master card a agreed great name but a huge run. Tonight announced 8 billion buyback and the stock up tomorrow im selling some calls against it its a a little bit rich. You know, the counting crows whats that guys name with the adam. Der. Dirkp show you folks at home somebody for everybody just saying. Final trades, please. Ttw had a big day and lousy. My mission is simple, to make you money. Im here to level the Playing Field for all investors. There is always a bull market somewhere and i promise to help you find it. On the mone mad money starts now hey, im cramer. Welcome to mad money and cramerica. My job is not just to intertain but to educate and but teach us so call me or tweet me at jim cramer you might think this whole market is hostage to the trade negotiations with china. I mean that is certainly how i