This after snap reportedly conjured up a whole chamber of secrets on facebook in a dossier titled project voldemort the document lays out all the ways facebook tried to thwart the competition and prevented snap from trending on instagram. Now snap is hoping the ministry of magic known as the ftc will step in. Will regulators be able to work any real magic here . Guy. That was one of the best openings in the history of the show. He doesnt know what to say anymore. Do you even know what she said im familiar with this harry potter thing there are like eight of these movies. Yes. Theyre its the sack same movie. The kids get older and run a dont spoil the end. It sounds like fast money. Its a scam run around with their wands good job. Back to talking. I want to dislike facebook in the worst way. I want to stand here and say, you know what, the stock is headed sl headed little headed significantly lower we said in july, you know what will happen, it will go back and test that july high from last year to 11. Its going to fail so you have that major double top. You go back to that quarter on july 25th or so, outstanding people arent fleeing. Advertisers have nowhere to go their operating margins seem to be improving so as much as i want to hate i and as much as regulation could crush these guys and gals, i think you got to buy the stock into their october 30th. Average revenue per user. Arpu is holding fine. Metrics are amazing. The bull case for people that think there could be more regulation, facebooks sum of the parts including whatsapp and instagram, highly valuable properties with massive user bases that may be undermonetized at this point leads to a place where people might begin to value the company otherwise. Facebook is trading at a discount has underperformed the sector and despite the fact you havent seen people migrating en masse to other form, i would argue then google controls the ad space in todays media world even more so than traditional media companies, so far facebook is not yielding a premium on its multiple. Is that discount the regulatory discount . I think its the regulatory discount i think its the idea that the challenges, the narrative theyre trying to create a superapp which includes their chapz which includes instagram and the traditional of what you think of and facebook includes their libra so the problem you have with facebook or the risk is they cant get any of these things done then all of a sudden this combination, this superapp theyre trying to get together doesnt happen and youre left with all these disparate parts not necessarily saying thats going to happen but probably why facebook hasnt hit new highs yet. Look at all these instances in which facebook allegedly copied or came out with a feature that was very similar to snap and the ftc isnt just talking to snap but also talking to other previous acquisition targets or smaller competitors that would have been acquisition targets. How many times has apple copied samsung limitless. Seven. Exactly so the point is its okay to be copied. Are we using it as a template that these Big Companies are being broken up. I think thats the bigger thing. If you break up facebook does that domino through the whole large cap tech is facebook yeah. You can make a bull case if they do try to break up facebook, the stock should actually be significantly higher to tims earlier point, so i hate the win win thing and talked about it last week but right now and bear case is probably a six to ninemonth or year bear case but into earnings a month from now or 35 days from now i dont know how the sum of the parts is a positive this time around. Its a force thing, by the government, overreach. Screaming negative this time. Well, if its a win win why would there stillable a discount to valuation because of the Regulatory Risk . I think facebook needs a catalyst of some kind and certainly since we had all the dynamics around the elections and all the issues and a privacy perspecti perspective, the privacy issue is as important as the regulatory issue even though people havent walked with their feet i think at its core facebook is a company who has a product that at some point there is something that could be mildly tenuous about their loyalty there but it comes down to this stock has traded roughly between 20 and 30 times multiple for the last five years and traded add a massive discount to Something Like a microsoft at this point. Theyre apples and oranges except for the fact there is a scarcity in the social media space. It should be traded at such a bigger number, the irony if you break it up and force it to break down these core businesses i think theyre going to stand on their own and be worth a whole lot more. I think you bring up a good point this terms of privacy. These are someof the biggest issues, right that, congress and the ftc, whoever wants to come down and beat tech for whether using their dominant position or the privacy issues, two huge things, for facebook theyre facing in the crosshairs for both of them. Yeah, i think its important to separate those two, right, because you have one allegation or one thing that congress may come down on them for which is kind of using their position to bully around and push around competition or keep competition out. Now, thats an age old tactic that everybody every industry has used thats one thing, the privacy issues to me go a little more to the credibility of the company and exposes them a bit to potential competitors. Now, we havent seen a real competitor they have a massive mode because of the size of their social media because of that effect but you can see rode the credibility and guy was saying my bear case, im not necessarily bearish on facebook im just not crazy bullish on it but its like the next month all of a sudden it will fall apart but start to see how the story begins to deteriorate and erode. Totally agree i couldnt agree more. Again, go back to the Second Quarter release on july 24th, analysts, six of them at least were tripping over themselves collectively to raise their price targets and the price targets i see were anywhere from 225 to 260 the stock sold off and technically did what it should have done. In an environment where this Broader Market goes sideways and doesnt want to seem to go lower doesnt facebook sort of set up on the long side i would say yes. Yes. Pains me to say it. You know, if you want the market to move higher, you need facebook and you need google as far as im concerned, these are the two names that have the most opportunity from a valuation perspective, probably have the most strikes against them in terms of the world of the Analyst Community or where people are positioned. Facebook above 191, breaking above 159 is bullish overall for market. Is this good for twitter or snap i think twitter has gone on the radar. Oddly enough twitter has been the winner nap is up 210 year to date. We didnt even talk much about that that streams of the lack of positioning to the long side i think thats probably run its course already lets turn to sorting of what sorting hats no sorting hats. I dont sort hats. I stack them. Lets find out i thought perhaps it was another harry potter reference i thought i was missing something. The chart master will break it all down hey, carter. Interesting times i would start with an eff that captures all of this, cute symbol social, socl and dozens and dozens of stocks, top five, so 45 , 50 are in the top five, six name, twitter being the big weight, facebook, naver in south korea and snap lets plot the chart and move on to some individual names now, obviously subjective, but this is how i would draw the lines. You got a line of tension here youre working into the apex of the situation and what that typically means is is that you get something quite dynamic. In fact, its almost jump ball bulls will say this, of course, bears will say that. If i pull it back even further, here is the same sit of going back for five years. Now, if i were to put the longterm trend line, were we simply to come back to the longterm trend line and i. E. , break below thats my hunch i think we get back to about an 8 decline my hunch is this is what happens rather than to the upside. In any event lets talk about these three stocks and grasso is making this point, snap has been the big winner over the past year and then, of course, you see facebook lagging and i want to look at that i think thats not an opportunity, i think thats a problem so very simple charts. Up trend is an up trend is an up trend. It is in an up trend and bounced off this line. The lines are what they are and looks like its going higher and then youve got twitter and its done the same darn thing bounced off trend, computers draw trends, whats not to like and then there is, however this, one which has, yes, bounced off the line and becaused off the line but now its sort of a bit under, a bit below i think thats at risk of ultimately breaking and what you would get is that and that even as that happens is an unhappy setup. Thats about all i know. Carter, why dont you come on over we got lots of questions will will bring the chair in can i ask quickly, carter would be that little blond kid in the harry potter huff and puff or whats that kids name is he a villain oh, hes a bad guy. Id be on the bad guys side on look as lone. Beanies with the propeller on top. Lets move on back from the rails here in terms of facebook if it does turn lower what is the next support . Its funny. Adressing what you said obviously its support is anywhere you might think but i think amazon is also key all lay at risk. Those two in particular, netflix weve heard from, its in trouble but facebook and amazon here, if and as they weaken im not sure look at today. Thats what kept the market from the session the banks were okay, industrials okay these big names that are so loved if and as they dont progress the market cant progress. Tim said facebook and alphabet, throw in there amazon, of course. Yeah, same general circumstance heavy, a little bit ominous, needs to prove itself with this next earnings are you equating when i look at the s p you can make the case either way. Either its rolling over. Right back to those tops and churning can you make the case with that wedge for the social what level, sorry, to simplify, what level to the downside do you think the case is broke for me its 2979 real short leash on the s p. Youll probably give it a little more room. Either way i think you would agree that any weakness from here would start to undermine the notion were going to break out. Carter, we have to let you go we got a news alert. President trump is in new york city for meetings ahead of the u. N. General assembly. Just a few minutes ago he was asked about trade negotiations with china, eamon javers is back at headquarters with the latest. Melissa, thats right you remember so much attention focused on the idea that the chinese were canceling their scheduled to the midwest where they would talk agriculture with American Farmers the president at an unrelated buylateral session was just asked about that moments ago and had an Interesting Exchange with the treasury secretary Steven Mnuchin over what happened last week heres how he said it. That was actually at our request they delay that. So we didnt want there to be any confusion, they have started buying agriculture theyre going to reschedule that in a different time. But that was truly at our request. Why was that at our request out of curiosity we didnt want confusion but i want them to buy farm product. They are going to buy sdmrath that was the first time the president had heard it was at the u. S. Request that the chinese canceled their visit, it sounded like the president said i want them to buy Farm Products i want them to go through the midwest buying products from American Farmers thats the desired outcome here. There are a lot of political reasons why the United States might not want chinese buyers touring through the midwest in almost a campaignstyle event announcing ag purchases so you get the sense that mnuchin was saying theres some confusion here as to what exactly is happening and we asked them to back off that and they did an interesting moment there, melissa. Why wouldnt they, eamon . I mean, from what i understand because on power lunch we spoke to the National Director of the Montana Farm Bureau about specifically the chinese canceling the visit. It sounded like the chinese reached out directly which can sort of an unusual protocol and usually go through somebody in the government to arrange such a tour of farmland and the chinese reached out first thing this the morning to cancel but no details were actually there was no itinerary. There was no set schedule. It was very sketchy to begin with. Right yeah, what you heard mnuchin saying that the United States asked the chinese to back off that visit why would they want them to back off . Maybe the Media Attention surround it could be something that the United States didnt want at this point mnuchin said we didnt want confusion surrounding the negotiation, that is, maybe he doesnt want American Farmers to think that were at an end stage here to this negotiation if in reality were not. Okay. Eamon, thank you eamon javers englewood cliffs, new jersey today he is, unusual how fragile and how we reacted immediately to that headline that the chinese cancelled this trip. Amazing to me we didnt hear about this that was obvious what the weakness was in the market, why trump didnt have his ear to the ground on this and we find out a day later you have european pmis in the toilet. We have our growth subject to a recession and now you look at a stock like john deere, up 10 for the year if the talks are still on and nothing to worry about that should move higher. The key for the market here is any incremental movement on trade talks. At some the point of it all in time we have priced in the worst case scenario. If you get movement incrementally that will be generally positive for this. If youre looking for an etf, dba which is the agriculture index that trades a lot of the corn and soybean and those type of things is the heart of whats going on here. You know, to me it looks like its trying to bottom but i dont the problem catching a falling knife that has no oil in it as opposed to other etfs. Its difficult to trade in and out of headlines the thing they should be following is the fed and the fed today that made a couple comments to make it sound like the most dovish one has only one more cut tenyear yields and technical components but bond yields are coming back in the dollar is going higher two powerful trades that i think ultimately control the equity market. Draco malfoy was the little toe head kid thank goodness. Sarcasm does not become you number two, i hate the word awkward because i think when you say it it sounds awkward. But that mnuchin thing, i mean, thats about s if. Like your parents fighting or something. The last point, again, i dont were getting strung out. I dont see any deal coming. Goldman sachs said aas well. You can get good headlines, bad headlines. Coming up, ipo drama reaching a fever pitch. What it could mean and speaking of markets, one strategist says there are three keys to the next rally and will tell us why it could put up more room to run. Limu emu doug and now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Welcome back to fast money. We are following a developing story on wework. Pressure is mounting on the companys founder and ceo adam newman after wework postponed its ipo road show. Lets go live to San Francisco with the latest. Deidre. Melissa, that is right. Adams role as ceo is being questioned after reports of smoking pot on a plane, having so we will la shots, questionable hiring and those Corporate Governance liabilities they shed light on sources tell cnbc its soft bank leading the pressure against new eumann he first invested wework and newm neumann after a 28minute car ride now as we expected Board Meeting sometime this week to determine his fate, both sides will need to tread carefully neumann still has majority voting power and could fire the whole board and keep his voting position if no ipo, remember, thats contingent on a debt deal. He may actually still need more soft bank money. Soft ba softbank has its record to protect. How it treats neumann could affect how it invests in other startups. As for the rest of the board it is unclear where they stand on him. Ron fisher represents softbank stev Steven Langman and bruceton levy, the vc firm that ousted travis kalenik theyll have to weigh risk versus reward. Deidre, a lot of people say it will impact their ability to work with other companies who need money nobody talks about the impact on raising the investor money which its trying to do right now because in the eyes of an investor, if youre going to side with management all the time you dont have my best interests in mind. Melissa, thats a good point, right. They have to tread carefully as i said you got the founders on one side and have to show theyre tough and going to protect their investment so in one sense when you have all of these trying to died if they want to throw billions in the hat it could be seen hes willing to get tough against a founder that is acting the way that neumann which could be concerning to misdemeanor deirdre bosa on the wework saga it started when the board as loued all of this to start happening and started when they said okay with dual class structure before this report. A lot of investors are surprised to hear that its coming to surface now when a lot of this information i think was already out there. I think a lot of the questions around the insider deal wrg things that frankly largely out there. Its not difficult to understand they are theyre the landlord and their own tenant at the same time i think the social elements of how hard partying, you know, i dont think thats what this comes down to. I think itsmore of a culture that really is built around whether this is truly a company thats been totally transparent. Silicon valley pushes back very much and says this isnt a tech company. So i mean i think theres this whole dynamic of what youre buying should this be a high multiple high flying tech ipo and most say absolutely not. You said about aboard, the boards responsibility to a nonPublic Company and then a Public Company i think sometimes is that gray area where the nonpublic, the board wants the company to be successful, so they back management regardless of what the ideas are behind the management team. If this was still a 50 billion valuation wed be talking not we but people would talk about what a great structure and visionary founder and ceo and its just when things go pear shaped when it gets bad and to your point what put the cherry on soft dont discount the sam zell interview on squawk box. He basically stuck a pitchfork in this thing and its been going down ever since. Softbank doesnt want to be tarnished and a conversation friday unintended consequences, people are looking to throw money at places, quite frankly thats why its bigger than an eccentric Silicon Valley found theyre needs to be replaced by a ceotype to get the deal done this goes to the heart of whats going on this is where the bubble is. This is whats happening remember when you talked about bonds and when things blew up in 2007 and 2008 . Its happening again but in the vc world. Money has to find a place. We have a bubble in money theres too much money its trying to find itself you get stuff like this. I think well look back and im not saying that things are falling apart tomorrow but well look back i think and point at wework and say thats when the vc bubble burst. But the fed bubble is not going to burst and by the way im not suggesting that there arent massive systemic risks im telling you that bubble in terms of liquidity cant burst well have it for a long time. Anyone who has ever sat on the desk when money is free a lot of bad decisions are made but i would say we work as an example. You brought this up now and weve all talked about this. The multishare class structure that gave disproportionate voting to a group of voters who dont care and have major earningses in terms of transparo me can killing the company other companies are coming to market there will be problems but this is about Corporate Governance in my view and structurally profitable. Dual shares are always okay until they are not and there is no recourse. For mon on wework head to cnbc. Com. Marketing making a comeback and one top jpmorgan strategist s says there are three things that could drive a rally. Ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. Doprevagen is the number oneild mempharmacistrecommendeding . Return home. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Announcer which sports and apparel giants hold a Competitive Edge for investors a look at where nike stands ahead of quarterly numbers squawk box tomorrow 6 00 a. M. Eastern. Wow. Welcome back our next guest says there are things that could take us back Phil Camporeale joins us now three things what are they. The first is fundamental. We do not have a recession in our view over the next 12 months usually when that happens, stock market tends to trade higher and that, of course s. Driven by what is debatably the strongest u. S. Consumer weve seen all cycle. Second, valuations, not an expensive market we may be 1 away from alltime highs but from a p e standpoint theyre paying 17 times, 25history 16. 2 types. Nowhere no euphoric. The technical side is probably strongest, melissa you have about 800 billion that flew into bonds and cash funds this year. A tsunami of flows into cash funds and fixed income funds, about 200 billion out of equity funds. And probably the most important driver is the fed and, tim, you mentioned it biggest difference between this year and last year the fed on october 3rd of last year, almost at a Year Anniversary said were falling away from our neutral rate and will be hiking rates in 2019 now in an easing cycle and usually this whole cycle when fed keeps Financial Conditions easy that is a tailwind not just for prices but for p e multiples. Why is it presumed that the money has gone into bond funds and money markets or cash, that that will go into equitys . I think its hard to say that theres something thats cheap in this market i think a lot of people said that i will say that cash is really expensive to hold so i think, you know, bond funds are one thing. You need a sharp rise in interest rates. How much specifically in cash versus bond funds plus cash which is i believe what you gave me in terms of about 400 odd into fixed income and 400 into cash remember, coming into this year cash was the only asset class that worked last year. Cash was the only positive asset class so everyone was saying lets invest in cash and before that he was em so there is i think kind of an emotional pain trade here that causes the market to grind higher thats the path of least resistance. Where are you on earnings and if we get a spate of companies that take down their guidance because the trade war is on and because tariffs look like theyll come into effect anyway, what happens to your estimates lukewarm on earnings. I dont want to make it an earnings story. Versus consensus your below. 3 , 4 , what you do get i think is the p e expansion if you go from 17 to 18 times thats 5 right there. And i think in a world where you have and i want to caveat a world in a world where you have some sort of deescalation, not a grand trade deal but a deescalation of trade i think politically where china and the u. S. Want to do right now i think you can get multiple expansion but ultimately until the election there will be no great trade deal also volatility is cheap just buy a call option and get downside protection. In a world where, you know, the ten year wednesday from 147 to 108, backed up a little bit, a rising rates a bullish thing for equity. From these levels they definitely are 210 inverted in august if you bought the equity market the day 210 inverted on august 26th and closed inverted the s p is up 4 why . Because rates have actually backed up in september a trip to 1 on the tenyear if the fed has to go three or for more times from here thats a bearish youve been lauding lower rates in terms of equaling p e expansion and forcing people into the equity market high rates to me would just be negative. The opposite of that, no . Yeah, so we were most scared last year in february when people were calling for a 3 or 4 tenyear treasury thats a much different Financial Condition story at that point driven by a couple of hot inflation numbers. It lasted for like two week, right. I think from a trip from 175 on the tenyear to 225 investors would love that because i think that would mean that financials were in better health. Maybe the curve would be steeper in that environment because the fed would keep the front end on hold and would be a confidence boost for the market. Whats your target, s p s p, mid to high Single Digits over the next year. Were not talking about a fist pounding view on the s p because we cant get there with earnings just yet but it is higher than here, its our highest confidence bet. Phil, thanks. I get phils premise and i understand even sound like a big but is coming based on the fed not disappointingment never underestimate the feds opportunity to disappoint at a meeting or be too wordy at a meeting or in between. For those reasons that is why im hesitant to say off to the races with the s p. Essentially what did you just say to steve before sounds like a big but is coming. I got all excited. I thought Kim Kardashian was coming on the show she actually followed me on twitter briefly. Briefly. Years ago. Decent sir mixalot song. Who is that baby got back. Hes like terrible conversation. You brought it up. Terrible conversation i didnt bring it up you brought it up. Coming up retail making a comeback could it be a sign a bigger reawaken something in the cards. The nyse launching its long awaited Bitcoin Futures. Yesterday was the first. Well tell what you that really means for the ypcrto world must for fast upon straight ahead. It was sophies big day. By the way, shes the next mozart. 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. Its an honor to tell you that [ applause ] thank you. Liberty mutual customizes your Car Insurance so you only pay for what you need. I love you only pay for what you need. Liberty. Liberty. Liberty. Liberty. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to fast money. Lululemon stretching higher out. Nice. Following a bullish overweight and set a price and growing opportunity in its mens category this as a broader xrt broke a fiveday losing streak retail one of the best performing groups if todays session so could this be the beginning of a bigger retail revival . Yes, guy. Thats been happening i mean it started with nordstroms and lululemon, target, walmart alltime highs i dont know if its the beginning but closer to the end. Weve been i think collectively bullish with lululemon and pete talked about it. At a certain point valuation will matter the same way it mattered for under armour, the zenith of their growth were not there yet so lulu can continue to trade higher i think were getting a little late in the game in terms of the retail. Doubling total Addressable Market and thats not even with international then its a 2x multiple. Im not worried about that up 60 year to date and guys coming in not just women but ulta slammed, its bouncing, it has much further to go still in it. All these are reverse trades. So beaten up that its not just about fundamentals, its just about where they want to get to with the comps going into thats the key. Spate kind of Department Stores like a macys, nordstroms from Something Like lulu and working, stick with that one. Piper is look at nike. A couple other Companies Trading at peg ratios so price to Earnings Group two time answer if you do that tolu lew they can get it up to a 238 stock. Based on the story they have doubling the size and buying those abc pants. You could make an argument on the multiple alone. Nobody likes bc. I have not met anybody who does. Looking at buying your own pair. I was looking at buying my diana but i lost interest there was a store across the street why would you buy them on the line when you could go across the treat and feel the fabric if because i come home, theyre there. I mutt them on why do very to go across the street i hit a button. Anyway, he hasnt bought them. Its the 21st century get on your aol account and buy. Compuserve. Whatever you have. Options traders are betting the stock will raise higher on nike. Lets get to mike khouw with all the options action hey, mike. The option markets is implying a move of about 5 when nike reports earnings. That is pretty much in line with what we would normally expect. Weve seen moves of an average of 4 over the last eight quarters there was very heavy volume today. Well over three times total options volume on average and saw most in the call side. Calls outpace puts by 21 and where they were most active were the october 95 calls over 12,000 of those traded for an average price of about 40 cents. Normally when we see this kind of activity were seeing buyers of those calls and those would be bets that the stock is going to raise through that trike by at least a premium they paid but in this case they actually were sellers and im getting they were doing that against long stock positions so while this is still a bullish bet it is a much more modestly bullish one because you want stocks to run to your short strikes, not through them so this is basically a bet that is probably not going to break out to new highs but this is usually a position that is put on by people still comfortable owning the stock nevertheless so looking maybe for modest increases but no more than 7 or 8 by october expiration. As a nike shareholder are you concerned about what the company will say about china investors breathe a sigh of relief when they didnt have anything bad to say. They were flying in the face of sentiment amongst every other company. Yes, and so if they said something that would be certainly, you know, aggressive on china downside, of course, but also have been the beneficiary and turned around that north american story and thats been the driver for the multiple ramping up direct to consumer its clearly not froor brian kelly apparently but for the rest of the world. No, im exactly the direct to consumer customer. I am that, yeah. He doesnt want to go beyond the line. They were sold out. Thats why i like lulu theyre sold out on the line interesting point 90 has been a top a few times so the strike price mike talks about, the 5 move squares you right up with 90 bucks im inclined to buy it on a break or above 9 than to try to play stock market ahead of a quarter that they could say just about anything especially with 26 times forward earnings so would wait and see. Mike khouw, thanks for the action for more tune in to our full show friday 5 30 eastern time. Up next the nyse Parent Company launching bitcoin. B. K. Will break down what it s r the crypto space fast money is back after this quick break. Announcer options action is sponsored by think or swim by t. D. Appear trade. Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade this is his family, the world hes built, for 72 years. This is hals heart. Its been torn. Broken. And put back together. This is also hals heart. This is the cardiologist his brother recommended. And this is hals relief, knowing hes covered. This is hal. His heart and memory keeper, and its beating better than ever. This is what medicare from Blue Cross Blue Shield does for hal. And with easy access to quality healthcare, imagine what we can do for you. This is medicare that cares back. This is the benefit of blue. But were also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. From the day youre born we never stop taking care of you. Announcer the president s u. N. Address, geopolitical risks, Market Impact insight on the trump agenda and how industrials should play it now. Squawk on the street. 10 00 a. M. Eastern. Welcome back to fast money. The time all you bitcoin bulls were waiting for launching long awaited bitcoin features and bob pisani has more. Intercontinental exchange launched their long awaited Bitcoin Futures market on sunday called backed that aims to make bitcoin easier to use as a medium of exchange that hasnt quite happened yet due largely to the volume tilt of the cryptocurrency. An interesting twist abbt teamed one starbucks in a venture that might allow them o toen convert bitcoin to u. S. Dollars that could be used at starbucks. Again, down the road potentially. The new futures pod comes a little less than two years after rival cme launched their own Bitcoin Futures product. A similar product was discoined in march bakkt Bitcoin Futures has two twists to distinguish itself physical delivery. Cme settles contracts in cash. Traders who hold a bakkt product will be delivered in bitcoin why physical some may want to hold bitcoin long term. Second the contracts expfeifer after a single day a single day its an interesting idea think about merchants. If you are a merchant and want to cash out can you do it in a day and get your money almost immediately eventually they have monthly contracts as well will this make it more widely accepted well, nobody knows but allows hore to buy it and theres a long history of electronic markets being successful. Bob pisani, thank you what is the implication for bitcoin more broadly. Its a great step forward today its not anything that will be a massive catalyst if you think about what bob talked about starbucks is an investor with them and the way this product is structured it that you go in with bitcoin, you pay wit. Theyll hedge out any of the volatility which has been a big, you know, negative for bitcoin and they can then at the end of the day have cash so its a great hedging mechanism. It gets that medium of exchange out there so i think over the next six months, 12 months this is one of those things you point to and say when bakkt launched futures thats when the Medium Exchange picked up. It seems like a real pain in the you know what for merchants more broadly to hedge the currency they take in. Theres plenty of people that will do that for you theres plenty of people that work all around here that will hedge that out for you and do it for a fee. They do it with foreign currency starbucks operates in 100 countries around the world they hedge out foreign currency all day long. The volatility, i hate to i certainly see their rationale but with Currency Exchange and i know youre not saying its necessarily a Currency Exchange or historic value but i think youve said Different Things even though you believe that could be part of it but thats the real thing if youre using it as a currency and having a wildly volatile currency is probably why people want to use bitcoin. The volatility right now does not make it viable as an everyday use of currency this is one step as we get more Financial Products to get the volatility to tamp down a bit. This is just this in a vacuum, to b. K. s point before we dive in domino deep on this, this is something that gives traders a lot more confidence, thats it. In a nutshell. Its not the Tipping Point but it definitely adds more credence to the bitcoin story. So do Institutional Investors increasingly invest in bitcoin so the one thing this will do is as they have those monthly contracts because they have physical storage which would be electronic lie coal storage, this is like a custody solution so it will bring institutions in that need that custody solution and it will also tie the price of bitcoin to the futures a little bit better and have the same customer who holds spot bitcoin can sell futures against it so the contracts and spot should come in invery hen tall step towards reducing volatility. Coming up, one casino tightens as President Trump is rolling the dice on china. Well bring you his big warning. Our cramer cam he is talking cannabis with the new Canopy Growth ceo. That full interview coming up at the top of the hour on mad money. Live at the nasdaq in times square each more fast money still ahd. Im off to college. Im worried about my parents retirement. Dont worry. Voya helps them to and through retirement. Dealing with todays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. Liberty mutual customizes your Car Insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Woman what gives me confidence about Investment Decisions . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Welcome back to fast money. President trump is rolling the dice on china, well, thats the big warning from casino tight an sheldon adelson. The Las Vegas Sands ceo called President Trump to discuss how escalating trade tensions could hit the u. S. Economy and hurt the president in his reelection race of course, casino stocks among the hardest hit in this trade war. He didnt call President Trump specifically about the Casino Industry but still coming from a casino magnate, i wonder. I think hes one of his bigger backers so interest to wonder there is a subtle pressure being put on. Look at the casinos. Do they make sense lvs has been in a significant downtrend. Wynn on the other hand this, 105 to 108 level has been support a couple times if youre of the belief which i am not if you believe there is a deal around the corner i think wynn is cheap at current levels. I think first of all speaking to the broader element of what mr. Adelson could be talking about in terms of, hey, look, from your political constituency perspective you fought this battle and gained enough point, more importantly youll lose the election in the market is not on the side of the investor so the wealth effect is clearly going to be where people are voting. Back to casinos, macau is a major part, somewhat of a rege National Dynamic big brother in china, macau but hong kong and do think as guy points out, you know, wynn has been a poster child, 108 the valuation is very, very supported as is the chart. You buy it. I mean the hong kong protests have been going on for four months now. You expect there to be less violent or the story to gather less newsworthiness and seems like its prevalent constantly but las vegas, you get singapore as well as in cow and vegas, id go there if you want to invest. I think you have they have to prove themselves to you too many risks if there is a lifting of the trade war youll have all kinds of time to buy these things so for me its a no touch at this point. Interesting that sheldon called him to warn about this since it seems like every both sides of the political aisle are moving more towards being china hawks if you take a look at all these debates going on. He has a vested interest in making him back off it so you dont have to be in agreement but yet of aggressiveness on the trade floor. He feels if he doesnt do enough and the economy falls pressure or market falls pressure will be more important than getting out on a mb olin china. Up next, final trades. After my dvt blood clot, i wondered. Could another come around the corner. Or could it play out differently . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling numbness or muscle weakness. While taking eliquis, you may bruise more easily. And it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planed medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. Ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. The best stocks are never cheap. They rarely come in and when they do, you got to be ready to pounce buy, buy, buy. Are we now getting meaningful pullbacks and truly high quality stocks time for the final trade we talked about nike and dtc. Not worried about this multiple and peg ratio. I stay in. You dont fight it. They want a steeper yield curve. Steve. Ulta, its up about 10 i think its moving another 10 higher but i cant fault you if you want to take profits right here. Guy. If you were the head coach of the Tampa Bay Buccaneers would you have taken that delay of game penalty to push your kicker back an additional five yard. No. She was talking about that before the show. Obviously not its ridiculous unbelievable part of her job. Many talents, i dont advocate eating there often but mcdonalds has done everything you want it to do. See you back here tomorrow. Mad money with jim begins right now. My mission is simple to make you money im here to level the Playing Field for all investors. Theres always a bull market somewhere. And i promise to help you find it mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends. Im just trying to make you some money. My job isnt just to entertain but to educate and teach you so call me at 1800743cnbc. Or tweet me jimcramer. You know whats driving me nuts about this market, too Many Disparate metrics to keep track of too many weird goalposts to watch. Th