From Raymond James to get his quick take on the street Google Properties revenue, thaep thats the properties the company owns and operates, 19 to 28. 7 billion that was above what kessler was looking for. Operating expenses were higherx. Ruth porat said there were some unusual items and pointed out 545 million expense related to a legal settlement in france also called out some unrealized losses tied to certain venture investments, although she declined to say which ones switching gears a bit, i asked her about competition. We just heard from amazon. Their ad business is growing very strongly. I asked her how much of a threat she thought amazon was she thought the online ad market continues to grow and her point is it doesnt have to be one winner, its not winner take all. I asked her about wamo as well the team at Morgan Stanley cut their valuation by 40 in part because they said the industry is moving toward commercialization slower than expected i asked ruth porat whether commercialization of the selfdriving cars, is it on track with your internal expectations she seemed to suggest to me, listen, were going to be prudent, responsible and cautious that its a longterm opportunity which theyre going to continue to shoot for remain committed, she said, to providing the best experience for users. And google certainly under increasing regulatory threat as well as lawmakers. I asked her specifically about senator warren, democratic president ial candidate, has called for breaking up google. Has said google like others is just too big, they stifle innovation and competition i asked ruth what does she think senator warren gets wrong. She says, listen, we have consistently shown that our business is designed to serve customers. We expand choice, we lower price and create competition guys, back to you. Josh, thank you josh lipton in San Francisco so weve got the stock down more than 1 . Keep in mind in todays session the stock hit a record high. Dan, what did you make of this quarter. I think the oneoff items is what the ceo spoke to. You know, one point here is obviously amazon last week, the headline looked really bad that stock was trading down 7 in the after market. The fact that this thing is basically unchanged, you know, the growth in their own properties is really good. Heres a company where i know tim will speak to the valuation where you see a downshift in eps growth year over year and expected in 2020 but youre seeing sales growth at 20 on a pe 2 growth its going to start to look expensive. The last time we saw it nearing 2 was 2013 the stock had a down year in 2014 so it might be getting rich on some of these metrics, especially when you think about regulatory and competition in the cloud and some of these other areas. I would want to bring up that i could see this at roughly 18. 5 times. I think its too cheap for all the drivers they have. I agree with what youre saying and theres risks to the company. By the way, love ruth porat. I think shes bringing more transparency when she talks about some of the sloppiness of the quarter modeling out, shes someone that you listen to and dont take this as a smoke screen i think shes bringing a lot of transparency as we get more into the Capital Market side of what they do, i think you listen to that but again if you look at google sites, around 20 i think is what you want to see if were looking at the bottom line on google, this is not what we tended to look at in the past the fact this is an op ex heavy number doesnt bother me 26 off the june lows into earnings what do you want i think this is just a breath of and the operating expenses are investments to get growth so you have to say, all right, this is one quarter where the Company Invested some money so their Business Model can continue to grow if you look at it, the thesis isnt broken on this look at their ad search revenues that is still up that thesis hasnt broken. Other properties doing well. So if you can look past, and i think the market will look past this one quarter of investment then i think you see the stock break to dans point it has already. Its only down 1 . Still above all its moving averages you would think that the positioning going into this was extremely negative i think its a buy for everything that these guys have said im unhappy that there was a miss though, but thats the only concern. What is the difference between google or alphabet, i could say, having an op ex heavy number and amazon. Why is it okay they do this and we look through it this is one quarter where i view amazon, theres going to be multiple quarters of investment. When bezos says were going to invest for the next year, you can say its not going to look like it used to the market will look past it. I dont know why google is up 2. 5 today i think one of the reasons why is theres some secret discussion about investing in fulfillment and logistics and getting into a broader Business Model. These are some headlines that were out there in addition to the fitbit story i dont think thats why people get excited on a fitbit acquisition. So they could be investing into broader ways to get involved in some of the same businesses as sam se amaz amazon. I think positioning was the issue. People were overly negative on antitrust. Lets look at microsoft, amazon, google, these are all these hovering around 1 trillion in market cap microsoft broke out today but not convincingly it has been in a three, fourmonth range here. Amazon is stuck in the mud never got back to its prior highs. Here you are, its very interesting to me, i think a lot of investors werelooking to play for that breakout in alphabet to new alltime highs two quarters ago it traded 1300 and went all the way down to the level steve was talking about in june that was a 20 peaktotrough decline. Is it too early for a would you rather no, no, no. I feel like dan is setting up would you rather here. The s p 500 made a new alltime high. Microsoft and apple have obviously run into this thing. Microsoft not convincingly apple later this week well have an interesting test. The market is changing its stripes. People are underinvested in cyclicals. You bought your maga complex because it was Revenue Growth and that was the only place to find growth in a slow growth environment. Now that we get trade headlines and some of this uncertainty out of the way, people are starting to bet that, all right, were going to have economic growth. Whether were right or not i dont know. Lets bring in fast money friend gene munster. Gene, great to see you again. Hi, melissa. What did you make of this quarter . Solid quarter another reminder that google is the oxygen of the internet 22 Revenue Growth compares to 22 in the previous quarter. This is adjusting for fx surprisingly they have grown their revenue in the 20 to 24 range for 17 quarters. If you look at facebook, 17 quarters ago it was growing in the mid50 and now its growing at 25 so that is the definition. Google is the definition of defying the law of large numbers. I think that theme of being the oxygen of the internet plays through where the stock is at today. Effectively were close to alltime highs this is a 900 billion market cap. I think that it was a solid quarter. One other piece that jumped out at me was the paid click number. So that is the excuse me, the clicks, was up 18 , a slight deceleration from the mid20 last quarter but the cost per click or what they get paid each click was down 2 . It was down 11 in the previous quarter. If they ever get that intersection where paid clicks are growing and theyre growing profitability or growing price per click year over year, if they can get that, i think youll see nirvana on the stock. In terms of other platforms, gene, how does alphabet keep up that growth streak at that magnitude if the areas for mo t monetization could be capped by regulators and im talking about youtube primarily. Thats the big question is the regulatory piece they have a standard response to, which is they have dealt with regulatory environments in the past and continued to navigate them. Ultimately that will weigh on the multiple i think google is a great story to own well see what happens with the Earnings Call tonight. Ultimately its a great story to own. What you said on the regulatory environment, we have quite a supercharged political environment thats going to go the easiest target here is google we talk about youtube, maps and sev search and how they tie those together google has over 40 products, consumerfacing products they tie together ultimately i think were a long way away from getting to the bottom of that i think that will continue to needle at the stocks multiple over the next year. Gene, its tim. Can we talk about cloud and how these guys have nudged themselves right in the middle of amazon and microsoft . Certainly the multielemental part of the platform that has people and a very sticky user base involved and what that does to your multiple and talk about a blended multiple here as well. Their Cloud Business, they dont break it out, but its in the nonad revenue it was probably up 35 year over year that is effectively a slight deceleration from last quarter for google cloud it was the exact same growth google cloud had in terms of the concept of some of the parts versus the total, when i think about the google story, my thought on large cap has been evolving toward this. Put it altogether and see what that ultimately drives in the case of Revenue Growth and so let me try to just put one final piece to it. I think you can look at a story like google and think of this is the information oxygen of the internet and i think it should trade like a consumer Staple Company in the mid20 range. I think you look at another company like apple and what theyre doing around services and devices, i think that should also trade at that midcocacola like multiple, in the high teens. So its looking at it altogether i dont carve out im not answering your question and dont carve out google cloud. You did very well thank you. All right, gene, well check in with you a little later on as the Conference Call is getting under way. Just last friday our chart master was eyeing google for a breakout to new highs. Carter is back and is over at the plasma to tell us what to expect now. Well, it looks like that breakout will be deferred by a day or two the key number here, at least by my work, would be the following. On 1264. 30. Thats where the stock closed on friday if one oewned the stock and has done nothing today, we can see after plunging to 1230, it is trading at 1275. One is up from where one was just friday last week. In terms of the breakout, its just going to be deferred. Its not going to break out tomorrow, but the key is these levels are deadly precise. Often you have to con tetend wi prior high before exceeding it and i think google wils broke o. Ultimately this one will as well in ts, and this speaks to the importance not of the charts that im showing to you but charts in general, is it random that this high in july was 12 spot 91 and this is 12 spot 96 of course not. This is momentum if you break out, you break out in a big way one thing about a breakout, no one is unhappy unless youre short. So the setup is this the setup is this, the setup is this it all suggests while it is going to be deferred tomorrow, it is whats going to happen for google in terms of the market overall, just because it is a big day, this day here was the highest weekly rsi reading ever recorded in the history of the s p. That includes 1929, 1987 nldandh dotcom peak in 07 every time we have come up against this line, we have backed away. Since that peak, stocks have underperformed cash, underperformed bonds and underperformed gold. We are right up against that level again and earnings are out of the way i dont see what will get us above the line i think once again well struggle right thereof. You know, carter should come on over. Come on over, carter lots of questions for carter. Thank you, will welcome will your view no treats nothing to eat no. We have a nut and fruit bag now. Some super fruits for you. So in terms of your view on the s p 500, will any of that change based on this deferred breakout of google or apples earnings later on this week or any of the other big earnings theres lane potential and exploitation potential a stock sitting at a breakout juncture represents potential. If it breaks out, youve exploited some of that potential. Jpmorgan represented potential it has broken out. Nike, it has broken out. Apple, it has broken out, appeared others have not once theyre out of the way in terms of earnings, what is the potential to press us to big new highs. It would have to be a further spike in cyclicals a lot of people are making that bet. Or it would have to be other breakout candidates carrying the load as you go through the earnings period, there are fewer and fewer stocks in a position to break out because weve heard from so many of them so you get to that line and back away just as weve done repeatedly. Carter, i can draw the similarities to the s p over the same thing, sort of a tagalong to what melissa just said on google stock every time we got to a certain level, backed off. Every time we got to a certain level in the s p, backed off the charts are similar, not the same why one is more likely to break out than the other one is making new highs google is flat tops at a common level so google made no progress the s p is making slight new highs which draws capital in and makes it think its okay again, if a risk asset is underperforming gold, cash and bonds for two years, thats the opportunity. The bear would say this is what a topping process is like. So to talk about the s p, so, you know, here we are. That october 1st, 2018, high, were 3. 5 above that now. Its the end of october, 2019. You just mentioned incremental highs. All of those highs over the last year have been above that 2018 high does that set up very bullish to you . If you take the exact same day and look at the New York Stock Exchange and the russell 2000, transports and the banks, none has exceeded that high so you have that bifurcation and divergence with so much money in a few big names. For the most part they have done well now amazon is a little struggle, netflix a little bit of a struggle, so its case by case what we do know is if you take the biggest aggregate of all, the msci, 70 trillion twice the s p is still well, well below where it was on that fateful friday january 26, 2018, almost two years ago. Carter, thank you well see you a little later in the show. Coming up, tanking after earnings well break down the highlights. Plus one market bull is on watch for a pullback ahead of this weeks fed decision were liverom me ftis square in new york city. Much more fast money after this welcome back to fast money. Weve got an earnings alert on beyond meat falling hard in the after hours session. This is off the afterhours session lows lets get to leslie picker with more on this. That stock was down as much as 11 in the after market today. Even as the Company Reported its firstever quarter of net income, they also beat on the top and bottom lines and raised its fullyear guidance but investors, you can see theyre now down 7 . Theyre looking ahead to another big event tomorrow when beyond meats lockup expires that will release 49 million shares or 81 of those outstanding to be eligible for sale in the market while not all investors will sell tomorrow, some traders are embracing the windfall of share supply that will be hitting the market its something actually that executive chair seth goldman addressed on the call thats currently ongoing. While noting that he thinks the company is in good position long term this week also marks the end of the lockup period related to our ipo which will permit the sale of preipo shares by some of the longest standing supporters while we recognize shortterm reactions to these milestones are often marked by heightened uncertainty, we believe that beyond meat is in a stronger position today than any other time in its history. It is positioned well to cap allies on the substantial opportunities in front of us and thank our preipo investors. They are discussing the various Brand Partnerships they have with brands like tim hortons and how long the test will last in various markets before broader rollout despite the recent pressure on beyond meats stock, it still remains the Top Performing ipo of the year. But the newest public listing was Virgin Galactic whose stock began trading publicly today sir Richard Bransons space touring company listed, those shares rose initially but actually closed down a third of 1 today melissa. Leslie, thank you leslie picker. So beyond meat, the ceo on the Conference Call talked about the relationship with mcdonalds and tim hortons, et cetera. So all these relationships hes very positive on yet, here we are. Mcdonalds is a great partner. The question is is this a brand that mcdonalds has to have or is it a brand that mcdonalds will create their own version of, because thats what mcdonalds likes to do they talk about tim hortons, inconsequential. They talk about their ability to meet demand. So theres some question if they can be set up. They have to increase their expenses thats something that would be concerning to people it shines a bright light on where valuations at some point just dont make sense. There wasnt any new news today in terms of the lockup or illuminating anything. Strategic partnerships are fine and exciting the company has done a great job. What was the 239 high was it a cult high was it about a social stock . Weve all talked about it that its not actually healthier for you. Its not about health, its about a social Conscious Movement that were making if it was about health or strictly fundamentals, id rather go with tyson, up 53 year to date i think social conscious is putting it nicely. Fad. I would categorize this as a fad stock. Weve seen a lot of stock market manias. Remember the 3d printing stocks, remember wearables, fit about it and that stuff. Weve seen those things and they defy gravity and go the other way too. On fridays show we were talking about this name in front of the lockup and i made the point they sold 11 million shares and there was a secondary 3. 75 at 1. 60 i was incorrect saying the company would have sold shares that would have been brilliant but it was selling shareholders. When you think about this lockup, you might have seen some people sell at those levels up at 160 and thats likely to sell somewhere after these results that looked pretty good. By the way, all those companies that you mentioned, it doesnt mean that theyre not viable businesses or industries. Of course not for more beyond meat head to cnbc. Com heres what else is coming up on fast. Lvmhs legendary dealmaking ceo is at it again will he be able to put the sparkle back into tiffanys business later, on the oneyear anniversary of the first 737 max crash, boeings ceo is in the hot seat on capitol hill tuesday. Well take a look at how options traders are betting ll hedo all that and more when fast money continues excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. 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. And who doesnt love going home. The s p 500 seeing its first record high since july 26th. The milestone coming just a day before the fed meeting Julian Emmanuel is following the action julian, great to have you back. Great to be here. You think the fed is going to cut. You changed your minding we do, we do. Look, if we figured something out over the last year, the fed does not like to disappoint the markets when the markets are so h heavily skewed and the odds on the board are over 90 of a 25point basis rate cut. We think theyll take the opportunity to deliver what we call a hawkish cut weve cut three times. The economy is going to grow at 2 , give or take the jobs market is very strong lets wait and see, you know, how the three cuts filter in through the economy. We know these things work with a lag. And the stock market is at an alltime high. And we have potentially positive geopolitical catalysts the next several months its a good time to hit the pause button. Do you think that a hawkish cut wont that be just as bad as no cut and saying data dependent, we leave things open . If its painted the right way, not necessarily do we think the market could pull back if that message is delivered . Absolutely but unlike the other pullbacks of the last couple years, wed be buying the whole way down rather than letting the dust settle because basically the other thing that the fed is doing and doing quite well is controlling liquidity through the money market mechanism and letting the Balance Sheet expand dont call it qe, they dont want to call it qe but the fact is that the Balance Sheet expansion, if you look at the last two years with all these volatility spikes that we had and brushing up against 3,000 plus and not getting through, its because the Balance Sheet has contracted they have gone sort of hand in hand and now were approaching a time of greater liquidity. Julian, im curious, where do you stand on this, quote unquote, midcycle adjustment it sounds like that youre leaning towards the first cut was a midcycle adjustment . Well, theyre not going to come out and say it specifically because the fact is, again, though we do think theres going to be some sort of deal signed with china and we do think brexit will resolve favorly, th they may not so theyre going to be in Risk Management mode but theyll step back and say we need deterioration or we need adverse developments to get more aggressive look, you may see more dissent you had two dissents last time maybe youll see a third who knows. So youd buy it all the way down because of the increased liquidity that the feddes putti fed is putting out there whats your target what weve sound all year you sound defensive. Well, our year end 2019 target is 3000 we said if we were wrong its because the market is going to blow through our target. We dont think its necessarily going to occur this year, but looking out into the first half of next year, a number like 3250 is entirely possible that represents the average multiple on trailing earnings that weve seen over the last 30 years. Lets remember, weve traded at a discounted multiple for the majority of the last couple years. Even though Interest Rates are as low as they are. 3250 in the first half of the year entirely possible. Julian, great to see you. I like how the fed says dont call it qe but it feels like every single strategist on the street is calling it qe. The same equation was made when they were tightening. That was basically shrinking the Balance Sheet was equivalent to raising rates. So this is the equivalent to cutting rates and thats why you have to be bullish the overall market. I just want to say one thing. The market trades horribly even at alltime highs. We are in a midcycle, ratecutting cycle im saying it trades horribly year over year, up 3. 5 given all the accommodation and all the potential catalysts that people like you see. Boeings ceo Dennis Muilenburg is set to testify on the hill tomorrow. Well tell you about the fate of the 737 max planes hanging in the balance. Much more coming up. In the human brain, billions of neurons play in harmony. For people with parkinsons, some neurons change their tune, causing uncontrollable tremors. Now, abbott technology can target those exact neurons. Restoring control and harmony, once thought to belost forever. The most personal technology is technology with the power to change your life. Welcome back to fast money. Boeings ceo Dennis Muilenburg will be before congress to tech on the 737 max crashes lets get to phil lebeau. Tomorrow will not be a good day for Dennis Muilenburg. Hell get hammered for about two hours in front of the u. S. Senate commerce committee. So the questions will touch on a wide variety of areas, but really the areas that people will be most focused on comes down to three things first of all, did boeing engineers and the culture mean that they were pushing to rush the max to market, in other words, cutting corners at the same time, the senators also want to find out if boeing was misleading regulators. Maybe not as a company officially, but were the Staff Members who were working with the regulators for the faa, did they mislead them . And finally, what will be the tenor and tone of the comments from Dennis Muilenburg will he show contrition . Hes already released his opening testimony, his statement, if you will a lot of what weve seen is similar to what weve heard from Dennis Muilenburg as well as boeing in the past one quote in particular, Dennis Muilenburg says we understand the situation thats in front of us and we understand that as a company we need to change. He says we also know that we can and must do better we have been challenged and changed by these accidents we are improving as a company because of them. We will hear that time and again from Dennis Muilenburg tomorrow. Remember, it is the oneyear anniversary of the first 737 max crash, that was a lion air 737 max that crashed into the java sea off the coast of indonesia guys, whats interesting about all of this is, yeah, theres great theater involved here. We know that the senators will hammer boeing. But is there anything that well hear tomorrow from Dennis Muilenburg which changes the viewpoint that many people have about this company when it comes to the max they have lost the moral high grounding the last year. They have said time and time again, weve done this, weve done this and other stories start to come out. Do you get the feeling anybody on the hill will press for his resignation . I bet you somebody says it. Ive got no sense somebody has said he shouldnt be ceo but i wouldnt be surprised if some senator says youve had two accidents, 436 people have died, why are you still running this company . A big day tomorrow for boeing where do you stand on boeing they havent proven boeing is a at fault here. They have not proved that boeing is at fault thats right. Have people proved that boeing is at fault with these deaths . Do you think that the design contributed to the crashes i think you have a case where theres a software fix that people are concerned whether it should have come in time or not. Maybe it should have, maybe it hasnt and its obviously a horrible tragedy. Im just saying if boeing was totally culpable, i think wed be assessing this in a different way right now. Has the credibility of one company, which at one point was as bulletproof of an American Company could possibly be, certainly has been if you look at where the company traded as a premium to the multiple, i dont think you expect that in the short to near term youve actually had them downgrade their 787 outlook next year they have not told you where the 737 is going to get turned on because they dont know and the company is at 340. That to me is a pretty good sign i think you have a case where boeing is actually going to weather this storm they have before. If muilenburg resigns, does boeing stock go up or down hes been there his whole career sadly, what he knew or didnt know, whatever, i think its pretty clear, tim, that qa and a lot of stuff they were doing with the faa, its pretty clear that boeing will bear a huge amount of responsibility for these two crashes and it ends well, it doesnt actually ending muilenburg is gone at some point and it doesnt end there your question, mel, is whether the stock rallies. No, it doesnt rally there because the only person that they need to get somebody from outside the company to redo this whole thing. How many of these 737s are they making theyre not selling them yet they have a huge pr problem here. If anything its a Production Cut thats a significant issue for the company. Youve got 50 modeled for the First Quarter if they come back online so production cults are a big deal, no question about it right now i think the street has downgraded the stock dramatically. Wells fargo, we havent seen a big move from wells fargo until there was an outside ceo brought in john stumpf resigned two days after he testified in front of congress and tim sloan resigned two weeks after he testified in front of congress. Yeah, but there could be a lot that happens. There still would be a lot that happens i think what these guys are getting at, theres still a lot of uncertainty about what the cost is to boeing. We dont know that yeah, muilenburg might resign but its going to be a long time until you get some clarity whats the liability that boeing has here i dont think anybody is going to be able nobody knows that, but you do know its a duopoly. Yes, theres a lot of green to cover. They have been here before. Not here. Not with fatal crashes. Two facilities crashes they have been here with fatal crashes. I do believe price is truth watch the recent low of 324. If it breaks that, you get out of the position. Boeing stock is down 11 . The Options Market expressing some optimism ahead of tomorrows hearing mike is in San Francisco with some of these details. Mike, what are you seeing . Yeah, i would actually refer to it as cautious optimism today we did see calls outpace puts by 21. Thats not something weve been conventionally seeing in boeing of late. It was the weekly calls, the 345s and 350s that were the most active 350s were number one and 345s were number two. Those were trading about 1. 60 so buyers hope the stock gets a bounce by at least the 1. 60 that they paid why is this a cautious expression of optimism thats a small fraction of the current stock price and its very short in terms of how long they go until expiration they ending on friday. Mike khouw in San Francisco for more options action, tune this in friday. Dongot anywhere, fast is back in two minutes. 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. 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. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Boeings ceo facing the heat in d. C. , the fate of the 737 max jet. Squawk on the street 10 00 a. M. Eastern i know there are a lot of fast money fans who watch the show very religiously. Just last week we were talking about a very bullish note put out by tom lee about the Home Builders which found they are in a seasonally strong period between october 20th and april 22nd or so and this has worked out of the past nine out of ten years. Well, chart master says hes seeing something very different in the charts. Lets get back to carter at the plasma for more. Carter well, take a look at the following. That is that same high that the s p and all Global Equities had, that was a friday. It was the 26th of january whats remarkable, this was 46. 11 and on friday we got to 46. 10 we pivoted and we dropped hard, down a lot today before you can exceed a former high, you typically have to contending with co contend with it. Thats why theres multiple tops before you break out but you almost never break out on the first approach so could one draw the lines like this and say yes but weve accomplished the price move on an additional basis, right back to that former high so could you draw the lines this way . Sure you can theres a terminology for this its called a double top now, does it mean you go back to the lows nothing to do with that but you do in principal have some form of a giveback then i would point out that these little hash marks, every one of these red lines was yellow it was an unfilled gap and they have all been filled and there are five unfilled gaps in this spurt higher over the past four or five months ultimately i think we can fill some, if not all of those. This is a great setup. You have a Reference Point the prior high, you go short if it exceeds the high by 2 or 3 , walk away. But you also know what your price objective is, that youre coming down into the low 40s were we to fill the lowest most gap that would be a 13 decline in Home Builders of course its rate driven we know whats happening with utilities and we know what in principal happens to Home Builders if rates rise and rates of late are on the rise carter, thank you good to see you again. That was like a bonus carter, right . But where would you stand . Tom lee or Carter Braxton worth . I traded you said that it worked like a charm. I traded tom lees call last year and it did work like a charm. It all depends on time horizon. There were fits and starts last year. I just think playing for a move back to that 40 level makes total sense. Last year when the ibtb sold off, it could get this quickly im saying to 40. Im still long lenar. Its up 50 year to date im looking for a little higher than here but i do feel as if rates are going higher and theyre probably going to turn at some point. Rates are going to go higher this trade is faced with tremendous headwinds with rates. So its been a tailwind. Youre going to get out soon . If lennar starts to fade again, i will get out. The 10year is back up to 1. 85 it doesnt mean its going to be dramatic in the short to medium term the other thing im watching is payroll numbers. I think peak labor, those with the people buying the houses and making mortgage payments if any of this changes, the Housing Market is a different trajectory. I want everybody to get along. I think you can buy them both. Man, make a stand this is fast money. As of today i am short baunldbonds, which i think means rates are going higher and so you get the pullback and buy that pullback. Coming up, well take a look at the cramer cam. Jim is getting a pulse on the consumer with a breakout of three key stocks hes got that and much more coming up at the t oopf the hour much more fast money still ahead. Shares of alphabet off the lows lets get to josh lipton who was on the Conference Call. The top line came in above consensus driven by mobile search, youtube cloud. Eps missed, way down by op ex. Some of the unusual items, which she called a noisy quarter take a listen. The increase in g a year over year was primarily due to a 554 million charge from our previously announced legal settlement in france stockbased compensation totaled 2. 6 billion head count was up 6,450 from the Second Quarter and consistent with prior kwquarters, the majority of new hires were engineers and product managers. As a company its also spending to build out its Cloud Business and you saw analysts trying to press the ceo on that Cloud Business and get more backlog for that Cloud Business. He said at this point theyll provide that level in his words periodically, but suggesting that in his opinion momentum has been strong. He talked about partnerships with the mayo clinic and vmware. He was asked about increasing regulatory scrutiny and whether its impacting his ability to innovate but he made the case that overall his products and services with reduced prices and expand choice were the new perhaps he was referring to his Cloud Business where he knows he trails amazon and google for more reaction to the call lets get back to gene munster gene, what do you think are the highlights of the call so far . I think josh hit a lot of them i would also add that the youtube spend is going to be accelerated. Youtube is spending 15 billion a year so add google to that mix. Also this concept of ambient computing came up. This is the idea when you move throughout your day and have different devices and Different Services you use, it fits seamlessly together. I see an undercard developing related to a battle between apple and google around this apple i think has the upper hand around privacy, but that was another piece that really jumped out at me. They also talked about quantum computing and ultimately Building Services that will quantum computing will build services that will not just answer questions but help us get things done. Sounds very promising. One last thing, melissa, josh t popped out at me that were going to hear a lot over the next several months and this is the idea of expand choice. I think that is kind of the foundational argument that google will use in this upcoming regulatory jungle that theyre going to weed through. Whats your grade on the quarter, gene . B this is a solid quarter. This is a company you want to own for five years, but there is no urgency to own more after tonight. Gene, thank you stock is down 2 so far in the after hours. What do you think happens . I think its fine i think the stock ran into the quarter. I dont think the fundamental drivers were there for the sort. Reakout that you might exctup next, final trades. Asa e company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. If yothe medicare enrollment up. Deadline is only weeks away. Having the wrong plan may cost you thousands of dollars out of pocket. Thats why i love healthmarkets your insurance marketplace. With their new fitscore, they compare thousands of plans from National Insurance companies, to find the right medicare plan that fits you. In minutes you can find out if your current plan is the right fit. 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All right time for the final trade lets go around the horn i still want to know what hes giving out. Tariffs i think theyre a little early maybe im wrong. Where its maybe not too early is to get into emerging markets. The em is breaking back above those levels this is one of places that should perform if the market continues to run. Not a huge fan of halloween but i am a huge fan of alphabet. I think guy is out because hes working on his costumes. I think he was handing out government contracts itb. I like carters call there i think you sell it and maybe look to buy it i know we called for this growth into value and it hasnt yet but wrk, west rock, ill still there. Well see you back tomorrow at 5 00. Meantime mad money with jim cramer begins right now. My mise 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. Mad money starts now hey, im cramer welcome to mad money. Welcome to cramerica my job is to educate and teach you so call me at 800743cnbc or tweet me at jim cramer. You want to know what is driving the market to new alltime highs. The dow gaining 133 points today an