Head into the rest of earnings season i dont know if e. Theyre th bellwether, mel. Late night for us yankee fans oh, yeah. Im a new york fan, go yankees. But lets talk markets. We do what we need to do, as you know, mel. Are there Trading Opportunities . I still think they are citi was an interesting play tangible book is around 69. I think what youll see is a bounce after earnings on the back of that it trades anywhere from 85 of tangible book to 1. 2 i think thats whats going to happen now in terms of the bellwether for the broader market, i dont believe that to be the case. I think its all positioning. Weve all talked about that. I think positioning has been negative in the financials ive been negative in the financials i do believe estimates have come in enough that you can sort of walk over them so i think youll have a tradeable bounce in the financials but longer term i would not be there. Id be positive on the banks. Its hard to go into the Third Quarter. I think the expectations have certainly been adjusted. Youre going to have mildly weaker long growth people were look at net interest margins. I will say for all the heat the banks have taken, net interest margins were at sixyear highs banks werent getting credit for record profitability i dont think theyll be terrible number numbers. What i would be most worried about, i want to see what theyre doing in terms of loan reserves has the world gotten that much worse . They know. I dont think it has, but thats the read on banks right now if were at the crossroads of the economy. What are they saying about credit delinquencies. Record lows because you dont do it until it starts raining. This is an area of the market thats basically not paid for the risk embraced by being there. Just consider this, going into the year the consensus was big banks would have another 15 billion in revenue this year its going to end up being only 2 billion what cuts the other way is theyre unleashing their buybacks they have approval from the fed so its all going to be about cost cutting that really is what weve got to look for. And the sweet spot is housing. So its the same type of thing where you have mortgage originations and refinancing how long does that last . How much of a boon is that going to be for the financials getting back to the positioning, if people are one side of the boat, this market has surprised a lot more people. To carters point, though, a tweet was in the nine past quarters Morgan Stanley traded down on the day of earnings every single time, no matter what they did with their earnings good, bad, they traded lower what does that tell you then it tells me Morgan Stanley is probably in businesses where their margins have been getting cut every single quarter its harder and harder for Morgan Stanley and Goldman Sachs to make money. I think thats what youre seeing but in terms of citi and jpmorgan, the reason i think citi is interesting is because it vas lacillatvacillates 1. 1 times tangible book is sort of where its traded thats a 75 stock go back to this time last year and thats where it topped out at which is what i think will happen tomorrow. Jpmorgan, everybody says is the best bank, they are, but are rewarded in terms of valuation at a certain point that just becomes too expensive in my opinion. And jpmorgan and carter and i have had a spat about this i can say not that bad of a chart. Its outperformed the s p a little bit the last two years even though its not representative of all of them. So guys talking about Morgan Stanley, Goldman Sachs, the asset managers, its as much Morgan Stanley as anybody. Asset managers are seeing massive compression so i dont think youll see great numbers out of Morgan Stanley. The flip side of all of this on the Capital Market side with record low rates again, you saw a lot of folks rushing to refinance in the Corporate Bond market and issuance bond market. I think youll see pretty good momentum into the Fourth Quarter and theyll guide to that. Steve talked about housing all very good for a Mortgage Business that was largely dead in the first half of the year when rates were going a lot higher i dont think its a terrible story, i just dont think its an extraordinary story. We had inversion of the yield curve until basically a week ago. How do you think that manifests itself in the earnings thats not yet sort of a case for good or bad. I think you have to say this the objective all the time is to try to find something thats about to get exciting, break out or break down, get long or get shoat. It belies that sometimes things are fallow i love that word. Banks are probably not going to collapse. Can we define fallow . Am i a fellow youre a good fellow. Why cant it be that not everything is directional all the time sometimes things are just where they belong and banks are kind of in that spot. By the way, carters tie autumnal. Thats what you about this particular tie every single time carter weighs it. He doesnt wear it all the time he happens to be wearing it on a day that feels like fall to tie a ribbon on this. Ive got a chance to do that. Its fall earnings season. Its about time we got into bottom up. All we do is talk about trade wars and the top down, all we do is talk about the fed. Lets getat it carters tie tells us its time for Fourth Quarter guidance as we get into Third Quarter or the fall and people are tremendously negative on all of those fronts on the macro so this might be a good respite to start looking for fundamentals lucky tie. And get thick and get deep if they surprise, which i think they will, as a whole, earnings, that is, i think the market can drift higher. It doesnt hurt that estimates have been coming down tuck particularly for financials going into the season. So you might have a, watch this,crop rotation wow you might have, but again i think its going to be shortlived. Citi to 76, maybe jpmorgan to 120. Do you go best in class, which is full perhaps valuation, or do you double back and find a dud like wells fargo thats been lagging and play it for catchup both techniques are valid. I dont think wells fargo is a name that youll see any time soon i think theres still lack of trust. I think theres still a lot of work to do there, but i think the other side of jpmorgan historically in the last five years has been citibank in terms of the quality i think citibank, you really have a valuation argument. You have a fair amount of leverage in some global businesses theyre one of the first banks to really sell off in the First Quarter based upon what we were seeing around the world. If you think a lot of people talk about stabilization i go back to macro but if you think pmis have started to stabilize, citibank over jpmorgan is a better trade. Carter, why dont you head over to the plasma. Citi is going to come out as best pick except for one which i think is fantastic here we go, the index, 24 stocks, total market cap 1. 5 trillion the top four names of 68 of the index. Here they are. Its the whos who and all of them are reporting this week. Lets look at them one at a time the Reference Point im using is the peak for globalic wim iequin 2014 my hunch is jpmorgan tries to break out and its just stuck. Here is a fallow circumstance and i think its not interesting. Not bad, not good, just belongs there. Bank of america has never quite gotten to the high and thats the opportunity, a little catchup potential with jpmorgan next of course is citi which has im sorry, wells, which is is this so bad its good . Hold this thought. I dont think its so bad its good because it never got all the way down to its 2016 low so not so interested here. Citibank is the one with bank of america, sort of these two which i think will ultimately make a run for their highs and play catchup with jpmorgan. But then look at the worst of all. This one i do believe is so bad its good. State street is right at this low and it is held three times it held again. Look at the daytoday chart and look at this trendi line. It has literally failed at this line over and over and over and over, and guess what it just did . It just broke out. Thats a Major Development its a headandshoulders bottom its a favorite so bad its good just to juxtapose it against, look at the bifurcation with best in class, obviously different as a custody bank. I think this one and citi are the ones to be most aggressive with on the long side. What carter was effectively doing there was a game of would you rather is he allowed to do that, mel . He just did of course hes allowed. Hes a fellow. Maybe we should continue the game. So ill play the would you rather ill go all day long with this. Really a whole show on state street or jpmorgan i would rather not do a whole show. My would you rather, now, the Double Bottom hes talking about, that goes back to july 2016 so the duration is such that this is a meaningful Double Bottom so again 51ish. State street looks fascinating at these levels. So playing the game correctly, i would rather state street over jpmorgan. I would fade that and trade bank of america. I like citi but if you gave you money center back, would you rather bank of america, because i think weve talked about citi and jp, of all the Big Money Center banks, i think they have the most ability to cut costs. It may not be this good for a long time. They are cutting costs and offsetting a lot of the weakness were seeing their capital Giveback Program may be more aggressive than anybodys and thats why were seeing institutions run into the big banks. What game do you want to play apparently its a free for all here. Im going pick wells fargo, pick the laggard im going to pick the underperformer you crave wells fargo. That one is ripe for a positioning issue where you have everyone in the bear camp waiting for this one to recover. Many people think it will never recover. I think its worth a couple of Percentage Points to the upside after they report. Thats like a quasi pick your poison game which we havent created the graphics for yet. A skull and crossbones. Pick your poison. Yes especially as we go into the halloween season. Whats the game with the bird that doesnt make sense . Thats trade it or fade it, i think. Theres one of them that makes no sense they both sound the same. Its shop it or drop it a lot of them dont make sense, lets be honest. Speaking of the banks, were going to hear from wells fargo cfo tomorrow at 3 00 p. M. Eastern time here on cnbc. Racing higher, tesla bulls putting the pedal to the metal. Later, Crisis Management boeing announcing major changes to its board is it too little too late . Were live from metis square much more fast money right after this thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Welcome back to fast money. Tesla topping the tape today it surged 4 on the report china will require all ridesharing vehicles to be electric. This comes as the factory in china comes to completion. Theres a 10 tax credit from the chinese government. Meanwhile tesla will report earnings next wednesday. They missed delivery targets for the Third Quarter, so how should investors be preparing for this tape are you still short, tim still short i think the cash flow every is really what matters most model 3 is supposed to be the every man and womans car, its supposed to be affordable, supposed to the 35,000. It seems thats not something they can do. They have never been able to produce this comfortably and profitably and the s and some of the cash cows, weve seen demand year over year come down dramatically i dont think tesla is the savior for china at a time when i think china is looking to establish their own players in tech land, i dont think theyre going give away the farm to tesla. I would argue at a time when were having a major standoff with china on technology and the 21st century, i dont think theyre going to be backing tesla in a way that meets demand in china. I agree with you. I agree that china probably has its own interests in perpetuating and helping its homegrown industry but at the same time tesla is one of the few companies let into the country without a joint venture. It has a giga factory in shanghai and didnt have to partner with anybody for it. Thats extraordinary letting tesla in. And china has done a good job of letting people in who they wanted to help build an industry and then show them to the door or at least make it be under chinas terms. Im sure thats whats going on. They have a tax credit going away here and showing up in china. At the end of the year theyre done in the United States. Tesla is above its 50, its 100 and 200day moving average right now so i think its about good news and positioning in this one as well. The question is how much of what might be coming thats better is already priced in . We had that june 3rd low at 176 trading at 250 were 45 off the low. At this point i think you fade it. I agree with carter steve makes a great point. Thats what tesla has going for it is 36 million shares or so of short interests and people are covering october 3rd this stock looked like it was going down below 200 the stock was down 6 . It got a lifeline the last couple of days, thats great but october 23rd if this stock continues to levitate, i think you get out. If youre aggressive like tim, i think you could play it from the short side. Would you play it from the short side if you had to be directional, id rather be short than long. What would cause you to reevaluate your short they have to have sustain the business and not caring about profitability, deliveries, Corporate Governance this is a structural short this is a company that i think has significant issues in terms of their ability to do what they said they were doing its not about the technology. Its a beautiful car, by the way. Elon musk is somebody thats done a lot of great things for this country i still have major issues with the governance, disclosure and level of transparency around this company. Im predisposed to read the vanity fair. I long the long form articles. I take that az compliment and i know its notment to be. There was a very interesting piece about mr. Musk and whats going on if you read that, youre saying not only this is a 200 stock, its probably closer to a 100 stock. But i digress. I think tims right. I think october 23rd you take profits. The stock is up 20 in two months, so it takes the heart of a lot of people. Then it can drop another 20 so theres enough room for everyone to be right i get the point of selling it, but the problem is a stock like this Gains Momentum and looks like its building a quasi base right around these levels so ill take the other side of carter because its a trading show forced to pick, id rather be a buyer or seller. Trade it. The game starts to creep up on me. It can be very confusing. I still think theres a closing point, maybe this wont be the closing point i dont think the stock price reflects anything. I dont think it reflects fundamentals, the Balance Sheet or true demand i think if they were to find themselves in i think weve already started the restructuring. But this stock could have major, major issues and suddenly you wake up and see it on the tape and its a 200 stock. I think thats the way it trades. Heres whats coming up next streaming higher. Netflix shares jumping despite a string of price target cuts. Well find out whats next for this stock. First, Crisis Management boeing making big changes to its board. But is it too little tooat well debate it when fast money returns you should be mad that this is your daily commute. You should be mad at people who forget theyre in public. And you should be mad at simple things that are unnecessarily complicated. But youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. Welcome back big changes at boeing, the board stripping the chairman of his title. This as boeing works to return its grounded 737 max planes to the sky. Lets get to phil lebeau in chicago with the details. Reporter hey, melissa. This decision was made on friday today the market didnt have a whole lot of reaction to this. The new nonexecutive chairman i should point out is a longtime director, David Calhoun, who has been on the boeing board for about a decade he joined it back in 2009. Ba blackstone managing director hes also on the board of caterpillar and has vast experience with Large Industrial companies. Spent 26 years at ge at one point he was running the ge aircraft engine division. Whats he doing at boeing now that hes the nonexecutive chairman he said im going to be focusing on the oversight of safety thats the big push at boeing right now. They made a number of changes that have already been jiend to increase and change the culture at boeing, which then brings up the question whats Dennis Mullenberg doing now that hes strictly ceo its all about the max they have said and they maintain it will be recertified and back in service this quarter that means they have ten weeks to enclosure a number of hurdles with the regulators to get this recertified. Dont forget october 30th hell be on capitol hill there will be a congressional hearing. You can bet theres a lot of questions about the culture at boeing and whether or not safety has been sacrificed in the rush to increase production, to push out the max. As you look at shares of boeing, as i mentioned, the stock didnt do a lot, it sold off a little bit but there was not a lot of movement on this announcement where they are splitting the ceo and chairman jobs. Do you think, phil, that if dennis doesnt get the max back up in the skies by the end of the Fourth Quarter that calhoun will be named ceo . I think it might be a little soon to say that, melissa, and whether or not its David Calhoun or somebody else i think theyre very reluctant to change the leadership, the daytoday leadership of Dennis MullenbergKevin Mcallister is at boeing commercial airplanes, in the midst of everything going on right now. Would that advance the cause and make them get the max back up and get the production ramped up in 2020 any faster the feeling that im getting from the company is, no, they dont believe thats the case. Now, its a separate question and i know you alluded to this earlier today. What does this mean for Dennis Mullenbergs future six months from now thats an entirely separate question but i dont get the feeling that they want to make a wholesale change in leadership at this point. Right fim, thank you. Our next guest says boeing move is too little too late. He wrote an oped calling for mullenberg to step down completely lets bring in ernie arvai do you think this was the precursor to dennis being booted and somebody else taking over . I think it may be it makes the job easier, splitting the chairmanship, from the ceo, which most companies do anyway from the standpoint of governance, so i think thats probably long overdue at boeing. But it also makes it easier for calhoun and the board at some point, should the max not come back on a timely basis, to make that decision down the road. I think right now the focus of the company and certainly the focus of Kevin Mcallister, ceo at bca, is to work with their customers during this crisis mullenberg has become point man for the company on the issue so its his baby you wrote before, and i believe this was at least a couple months ago that you thought mullenberg should step down why is that and are we at a point in time with the recertification of the max where it wouldnt actually be good for him to step down at this point it may not be the optimal timing for him to step down. But the question is how hands on is he in the leadership of the project to bring the max back. As a ceo of the holding of the larger company, the daytoday folks are in seattle with the engineering and he may be involved at some of the high level lobbying with the faa and others but i dont think hes crucial to the daytoday recertification of the max what he is crucial for is strategy and if we look at the future programs at boeing, weve got three major programs that are currently under way for projects, four with the tanker and the fifth is possibly the new aircraft the 737 we know is having difficulties, both with the backs and with the pickle forks on the ng models the 787 while they had all of the early problems with that airplane, seemed to get them straightened out except for quality. Airlines are still complaining about the quality of the product thats coming out of one of the plants the 777x has been delayed the 767 tanker, which is used by kc46 by the air force is not performing well and not meeting specifications and currently isnt carrying passengers or cargo. And the new middle market airplane is delayed again pending the decision to move forward, pending all the problems with the max. If you look at five products for the company, all five have problems right now thats not a great way to set your strategy for the future. Earn ernie, its guy does this speak to bigger problems at boeing and are you surprised its lasted as long as it has im not surprised when this first happened, we predicted Second Quarter of 2020 for return to Service Given the nature of the problems, which went just beyond the mcas system to the Flight Control system as well and giving that as an integrated whole from a certification standpoint, which the faa really dropped the ball on the first time going around theres some allegations that boeing hid things from the faa im sure well see that later once federal investigations are complete but clearly its a little more serious an issue given the nature of the airplane, which is a hybrid of old technologies dating back to 1967 when the first models were done to todays technologies in some of the areas. Weve got fly by wire on the airplane, weve got a fly by wire spoiler system but many of the other controls are mechanical so weve got a hybrid of new and old in the airplane. And the avionics suite is a little bit old it looks nice on the outside, but on the inside its last generation technology. So its a mix. Ernie, thanks for phoning in. We appreciate your insights. My pleasure. Ernie arvai for all of those problems that ernie says boeing has, the stock is only down 16 from its highs. Its pretty extraordinary therefore, the bears might say why do you need to run in here i think if you get to the Second Quarter, the street will downgrade the stock even more. You also had 787 deliveries which i think expect end this quarter are probably going to be minus five or six or seven planes in terms of what they did, they had to do something here stripping the guy of the chairmanship and keeping him in the ceo chair doesnt bother me at all this stock has been a threebagger in the last three years. Before this tratragedy, and the are tragedies. If they were keeping anything from the faa, they deserve major repercussions. It does sound like that its a twostep process, that hes eventually going to be out of the company. Its almost as if they want to see if he can get the max back in the air if not, they have cover to actually fire him. But the stock actually has support around the 200day moving average which is 368 so if you did want to take a stab at it, thats what you use as your exit. If you didnt know the news, this stock in q1 to 16 to q1 of 19, 65 a year for a threeyear period so its resting. It got ahead of itself. Its resting but not fallow. Its dormant. Its dormant versus fallow. And soon to come to life. Can i mention one thing. One last thing. Today is columbus day. It is. So probably a lot of College Students watching and they heard carter say kegger. I want them to understand the kegger that hes talking about is much different than the ones or he could have been talking about that one. Or the shocks you used to have on your camaro, i think those were kragers. Streaming higher, netflix shares getting a pop we will tell you how wall street analysts are setting up for this weeks earnings. And the one Luxury Retail stock getting sacked today because of handbags. Well bring you that name. Stick with us, fast money will be back right after this at Southern New Hampshire university, we believe in education built for all people. [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. Let me tell you something, i wouldnt be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. Learn how homeowners are strategically using a reverse Mortgage Loan to cover expenses, pay for healthcare, preserve your portfolio and so much more. A reverse Mortgage Loan isnt some kind of trick to take your home. Its a loan, like any other. Big difference is how you pay it back. Find out how reverse mortgages really work with aags free, noobligation reverse mortgage guide. With a reverse mortgage, you can pay whatever you can, when it works for you, or, you can wait, and pay it off in one lump sum when you leave your home. Discover the option thats best for you. Call today and find out more. Im proud to be a part of aag, i trust em, i think you can too. Welcome back netflix getting a bounce today but they are still down 21 over the past three months. Now there are a flurry of analysts notes. Lets get to Julia Boorstin with more on this. Hey, melissa, thats right. A lot of Big Questions for netflix ahead of earnings. Can it reverse the decline in u. S. Subscribers that we saw last quarter, its first decline weve seen in years. Can it rev up overall growth and what will the flood of new streaming Services Mean for this company . The company did give up its gains from earlier this year the stock is down about 23 over the past three months alone and there were three analysts notes published today. One from rbc with a 450 price target saying that the companys guidance which adds up to 7 million subscribers seems reasonable with modest Downside Risk we believe that netflix has achieved a level of sustainable scale, growth and profitability that isnt currently reflected in the stock price now, Raymond James reiterated its strong buy, but did trim its price target from 450 to 415 to reflect what they called, quote, near term noise from competitor launches. The analyst said positively the content library is improving, citing the irishman. Morgan stanley also sliced its price target to 400 citing a conservative approach to longterm subscriber and pricing growth plus updated currency headwinds. Morgan stanley writing the risk is that netflix lacks the dant franchises to prevent consumers from hopping in and out of the service. Its not just subscriber numbers for this quarter, but what kind of guidance the ceo gives for the Fourth Quarter when well have the launch of both disney plus and apple tv plus guys, back over to you. Thank you, Julia Boorstin in l. A. With the latest on netflix. Netflix has to meet the subscribe erp numbr numbers. 100 . They have to. When Reed Hastings talked about the competition, that scared a lot of people and the stock acted in kind. I know im wrong a lot, but this one we got right we said its going to trade probably down to 250 if it holds, you buy it. It traded down to 252 and its bounced. I think in earnings people will chase so i think the stock goes higher the came thing happened with roku we said it would trade down to 100, hold, bounce. That stock is up another 20 from those lows. I think you flushed a lot of people out now you understand about competition and a whole new series of people will chase to the upside. What does that chart look like to you . As guy cited, youve had a bounce to some extent. If it is better than people are fearing, some of the potential has been exploited already thats the nature it almost sounds fallow. Well, this is more dynamic, up and down, up and down. I think you dont know what fallow means. I have no idea what fallow means. I dont read harry potter. But i think with netflix, how about International Subs i think its even more important. When analysts are doing their projections, what are they doing in terms of price increases and holding on to 15. 99 . Were also talking about subs. So at a time when i dont think the market is rewarding stocks that arent profitable, i dont know why netflix gets a pass. Its half the story is the competition. The other half is that valuation. Weve had to take a long, hard look at value versus growth. Now youre really starting to look at what you can buy you can buy apple, you can buy disney by the way, disneys chart looks terrible its rolling over. Its finally over that 130 mark. You would have to be above 130 to rebuy disney. In this one you have to be above the 50day at netflix and its at 288 so were close, but i dont think its buyable for multiple reasons, not just the competition. We have been talking about netflix basically all day. I was talking on squawk on the street saying with all this competition, its ability to raise price is much more limited than in the past there were some comments on twitter which i thought were interesting. There has always been competition with netflix before it was blockbuster and before it was red box, it had competitors before and still managed to triumph why is it different now . I dont think we had real competitors in there with their own streaming services with the offerings out there. Its not just disney, its hbo max, its everybody. And in terms that people are finally the cost of content is coming home to roost. These guys have had to pay an enormous amount of money and still not proving to be profitable yes, the competition was there but red box as proven wasnt really competition i think disney is real competition. Although im not counting apple in there, when you have every other Major Company with cash flow in this space, why do they get the lions share i dont think so. Quickly, what changed this time is the fact that Reed Hastings was very dismissive of that competition years ago he actually acknowledged it this time its that old thing dont shoot until you see the whites of their eyes yes. Thats what happened the last quarter or so with mr. Hastings. Coming up, weve got two big calls with the group today well tell you what that says about the state ofonme csur. Johnson and jaohnson will report tomorrow. Much more fast money after this r. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein bars. Try lemon cake. As a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Welcome back to fast money. Nike racing higher after an upgrade from bank of America Merrill lynch. The firm upgrading it to neutral from underperform boosting the price target to 95 a share. B of a believes nike will work more aggressively to make it accessible to everyone across the globe. Nike hitting another alltime high today how far can nike run from here steve, what do you say i dont like nike for various reasons but you cant deny the chart. The chart is amazing its up close to 30 and looks likes nothing is getting in the way. The way the stock recovered originally was the recovery in north america. Then it became an International Story and its always been both. They seem to be hitting on every cylinder im waiting for when under armour, the underperformer, starts to perform. It seems like im turning blue in the face waiting for that day. Do you think nike will be stung by whats going on in china . If anyone has been resilient, its been nike, right . Theyre doing it with higher asps and also with a wholesaling business that seems to be very strong so its another one of these arguments for why the multiple can go higher along with the stock. It traits in the stratosphere relative to itself at this point. But i think you have to wonder whether they deserve this type of an upgrade in multiple based on their ability to control both the wholesale market, the dtc market, and they have a higher priced product. This upgrade, they were at underperform for a long time, to a neutral now. The street has been behind it all year to start the year, the consensus price target was 72 here we are at 94 so people are moving up their targets after the fact i think it will continue to go higher. I think valuation has been a concern but its been a concern for a long time. I think it trades 28 times but the stock had trouble a number of times, finally broke through. Maybe well backfill back to 90, but if dan nathan were here he was on the closing bell in the market zone today. When dan is on the mark zone. Dans market zone. With the dnz. You like what i did . He would say stocks that trade 92 go to 100 hes probably right but i think theres further upside in nke. I asked about china because i read the stat about the athletic retailer in china. The top performer in the asia pacific index for the year the top performer. Its also a company that i think has seen the delta on their growth relative to other players has been pretty dominant theres no question that the domestic consumption story in china, period, i know we stare at manufacturing but china is successfully slowly transitioning this economy so i think right now, though, nike is a global brand it has cache, athleisure, footwear, innovation i think its hot and i would stay there. One retailer was left in tatters. Tapestry is down 3 on a downgrade from uba, citing the resale market as a particular concern saying consumers increasingly have the option to purchase a new coach bag for 400 or a used european luxury brand for the same price we think many shoppers are opting for the latter choice guy, what are you doing ill tell you exactly what im doing. I read that and i thought of you, guy no. You go to the real real. I dont want to give a plug to real real but why buy some crazy chanel bag for bustout retail. Or why buy a brand new coach bag for 400. Whos paying 400 for a coach bag . I know im not if im going for a coach bag, im going for probably a 100 bag. But thats part of the issue i think coach has been raising the prices and to compete on that level i dont think they will. Theres certain brands that have that problem. Coach is one of them, kate spade is another the price points are a little too high to be called something thats more affordable but not enough cache to be considered luxury so that makes the competition these used items on sites. Carter, you come hope with a coach bag or you come home with a real real the good news is i dont come home with bags. Carter comes home with nothing. If your lovely wife was going to get a gift, which would you rather youd rather pick the one shes going to like more and typically thats the one that costs a little more. In terms of tapestry, they report i think november 5th or thereabouts. Look, the stock has bounced from 20 to current levels, obviously down today down today i think youve but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Wthats why xfinity hasu made taking your internetself. And tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Welcome back Big Bank Earnings are tomorrows marquee event but there are other names to keep on your radar including Johnson Johnson. They have had a tumultuous year holding on to games of a percent and they are betting the stock is about to lose its grip. Mike, what are you looking at . They did trade above average. To put things in perspective, 22,000 put contracts traded versus 13,000 or so on average the Options Market is implying a move of 2. 5 on earnings that may not sound like much compared to a lot of other stocks but in johnson anl zuson johnsons case it usually doesnt move a great deal. The most active options contracts were the october 1 puts by the close, more than 1,000 contracts are betting Johnson Johnson will fall below the strike price and that will put it below 1. 20 and thats in line with the move expectation that the Options Market is implying but the bets are predominantly that its going to be lower coming out of earnings. Mike, thanks for that i believe like Johnson Johnson has become a battleground stock. I think we had jpmorgan saying 20 billion is priced in in terms of litigation risk for opioids, for talc, for everything under the sun we had bernstein come out upgrading the stock saying that its historically cheap compared to itself. I like j j here and i like that call, therefore so when you think about the litigation risks in opioids, i would acknowledge, i think this is a very emotional issue and it should be around our country this is one of the biggest Drug Companies in the world although the limitation of this i think is probably priced in, i think its an overhang i would own this stock for the long haul. When you look at their pharma business, they have a higher growth rate than the other big cap pharma, then they have medical devices. Its a diversified company i like it. So everything he said is true except the emotion part of it. It traded on 1. 21in december i think thats probably where its headed now. Yeah, i think it looks like it wants to go lower here. I need a little bit of a buffer. I need 1. 33. I think if it breaks down and gets to guys level sooner rather than level. Would we dare try fallow or boring or dull yet again theres a time we need fallow and this may be it. Do you think its fallow . Its just doing nothing sometimes assets are fairly priced. Youre tie is starting to get that way. No, no, this is very dynamic. We want to go straight to the white house. We have treasury secretary Steven Mnuchin and Vice President mike pence lets listen in. Has expressed his grave concern about the loss of civilian lives and the impact and the destabilizing impact of the Turkish Military invasion in se syria is having in the region. We had a meeting and recommendations were made to the president. Ill recognize the treasury secretary that will detail punishing sanctions that have been placed on turkey. The president also today was very active engaging with leaders in the region. First the telephone call with kurdish general mozlum where he received a report about the circumstances on the ground. Syrian Defense Forces have been a strong ally of the United States of america. The president was very, very interested in hearing from general mozlum about the status of forces on the ground. The general reported to him that at this point Turkish Forces had not gone beyond the 30mile buffer zone but general mozlum expressed particular concern about the city of kobani and asked the president to raise that issue directly with president erdogan and the turkish government as a great concern of kurdish forces. The president after that call spoke to president erdogan president erdogan reached out and requested the call President Trump communicated to him very clearly that the United States of america wants turkey to stop th 5 00. Mad money with jim cramer starts right now my mission is simple to make you money im here to level the Playing Field for all investors. 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 save you some money. My job isnt just to entertain but to educate and teach you so call me at 1800743cnbc. Or tweet me jimcramer. Every night i come out for two big reasons the first is obviously i like the attention but the second andor