Tenmonth high. And check this out, since last friday, the dow has added 127 points. Of that, apple has accounted for 85 points. The question is simple. Is apple saving the markets . And if so, should you feel better about where we are right now in the markets . Tim . Apple is not saving the markets. 85, 127 points . Come on. Look at retail today. Is apple pushing up jcpenney, nordstroms . Emerging markets are up 2 today. Volatility is plunging, not because apple is the dream stock, and actually their camera is pretty good. Apple is rallying because samsung is very weak because apples expectations were de minimis. And so yes, apple should be doing what its doing. But to say if apple was not doing this, which i think is the question youre asking, would the markets be rallying . I think yes, they would be. We overreacted to the comments, we assumed fed was not going to act to acting way too much. This is not a place where you can move too quick on Interest Rates. Volatility has fallen. Fed has stepped back. Were in the same vortex weve been in. And by the way, i think its appropriate. Wellsaid. I agree 100 . Apple is moving based on the fact that expectations, street expectations were way too low. And theyre going to pick up a little. This is a sentiment, trading apple, no doubt about it, supply versus demand. When apple is managing supply, it means the supply theyre putting out there right now isnt necessarily theyre managing it properly. Remember, they had supply issues and it caused a ruckus, we dont want to have that problem again. The losses to the downside would have been worse had it not been for apples standout performance on the tape. The dow jones, its a 30stock index. Not many professionals that i know look at the dow jones and go, thats the market. This is the s p were looking at. The Federal Reserve is probably less likely to raise rates. Thats what this whole thing has been built on. Apple just happens to be its all coincidental in my view. I agree, in my view as well. I think the bigger move to watch is crude. If you overlay crude on the s p, you can get a correlation with the s p as well. So correlation versus causation. I dont think its caused by apple. I dont think that it definitely helped on an incremental basis. But what tim said, it had more to do with samsung. Samsungs loss was apples gain. That was a big event, on a technical basis thats what popped out. Does this make you feel more bullish about the markets overall, that theyre more resilient . You had quadruple expectation, an fmoc blackout today, so we couldnt hear any of the dialogue to sway the market one way or the other. So all of that, the effect of the dollar, the dollar affected crude, all of the crude effect affected or exacerbated lets look at the underlying fundamentals. Retail sales were down. Weve now had 12 consecutive months of declines. That has happened 20 times since 1920. 18 out of those 20 times, we were in a recession. The market may go higher because perhaps in this ultimate universe we live in, a recession is good for stocks. But generally speaking, when the economy gets weaker, stocks will get lower. I get that. But that provides a glide path for stocks to move higher as long Interest Rates stay low. If the fed stays on the sidelines. We should feel better about the markets, no . We should feel more comfortable being long . What weve learned in the last four or five days, the markets sense of comfort is pretty much toast. You have a place where people are unable to make a rationalization towards the fixed market. On the equity side, health care, financials, industrials look good for sure. Emerging markets are interesting. Look how these things traded off, though. Emerging markets were down 8 in three sessions. It tells you how skittish investors are, even for things that make sense here. I think more volatility is in the equation for the next six weeks. Thats up and down, by the way, thats what volatility gives you. Thats what weve learned about the market. I think we have steve said, im not going to go through them again, there are a lot of events in the fall that are a problem. When you think about the apple move, the supply chain move. People sitting at home, how do you trade that event . How do you trade the move in the supply chain or apple itself . I think apple has a glide path to probably 120 and then its a sell. I look at the supply chain, the real question more, we talk about intel moving with the supply chain for probably the very first time, is intels chip going to be inside the 7 plus . Thats the question. I would be afraid to hold on to apple at this point for exactly the reasons you point out. I would be taking profits. You wouldnt hold on to it to 120. Were up 12 this week. Massive, massive move. We know that apple has told you that the only reason theyre not giving their numbers is because of their supply constraints. They told you they dont have a lot of phones anyway. The tmobile, there are a lot of subsidies. People are hate me for saying this, up 12 . Guess what, its momentum right now. Its going to stay with the supply chain and the stock for a period of time. Theres going to be a point where you take profits. I 100 agree. Right now the momentum is on the side, were going higher. Its an iphonebased stock. I was here on monday. It was trading between 105 and 110. We were both pretty consistent saying you buy whatever breaks down or breaks up for ten bucks. Youre right on the 1 120. People are so scared to own an expensive stock. More than ever, its probably appropriate, apple which trades eight in half times per share, theres a strong argument, 1. 4 million installed base, people totally under estimated this. T the only reason people gave it a onceover is because of what samsung ran into this week. Even if the numbers all around it are good, its still an iphone stock. The people gave it a second look only because of what happened with samsung. Ive said that. So i dont disagree with that. You can argue with yourself. I think samsung is a buy. I argue with myself all the time. I would own samsung here. I dont think this is apple suddenly having the lightning rod at the top. I agree. When things seemed so good for apple versus samsung in 2009, they won the litigation and the lawsuits, and apple peaked, was the time to sell the stock. I dont think this is the time to sell apple. But i dont need to buy it tomorrow. Lets go to ari, what are you looking at . This is significant strength were seeing in the share price of apple in the last few days. Melissa, weve seen this before. Let me show you what im talking about. Here is the stock price of apple. What weve had over the last year is a pretty meaningful decline. Its not peaked at 120 back in 2015. And now its in the process of basing. It had a successfully tested test of his february low. Now its broken out to the upside. Its broken its down trend, finally made a higher high. Its now up 30 since its low back over the summer. Weve seen that in 2013. I remind you again, we saw an important decline, a base in breakout at that point, right about there, the stock was up 30 . Lets look at that roadmap. After that big move, stock was overbought. It had to consolidate for a couple of months before moving higher again. Thats what we think is going to happen here. The important point is you dont want to sell apple here necessarily. But we do think youll want to buy it on weakness. Our trend has turned higher. Our preferred way is not through apple but through apple suppliers, specifically a lot of the stocks in the Semiconductor Stocks index. Here is the sox relative to the s p 500. This was an underperformer for the first part of the decade. Now its just starting to break out. To me, this chart reads that this area of the market could be leadership for a very long time. Its been led by stocks like texas instruments, broadcomm. I think you have to buy some stocks that havent run up as much. One that stands out is sky works solutions. Another big underperformer, successful, high or low in july versus february. Now just starting to break out to the upside. Its not as overbought as apple. We think you want to own the stock. It gets back up to about 91. Resistance, very strong chart, melissa. Ari, thank you, ari wald of oppenheimer. Sky works is up 15 . If you take a look at some of the other semiconductor makers, the maker of the haptic touch. These stocks trade typically with a bait of almost two to apple. If you look at the supply chain, theres a lag time, theres a lead time. They need stuff fast. That also works against these guys, because not having an inventory of supply during a boom is something thats also cost these stocks. I think you get to a place, dont overextrapolate on tmobile and sprints announcements on the iphone at this point. We have some more data to wait for and just assume that these guys that have at times been trading as a function of apple. In terms of the samsung recall, though, does that put additional pressure on the supply chain so therefore more orders, they might have to ramp up production . Even with this. And actually i like how sky works looks right on a longer term. Its still up 15 for this week. I already talked about apple being up 30 . Theres a period of time that needs to go on here that things will have to consolidate for a bit. Maybe not sky works as much. For me, the way i would trade it, i would wait for a week or so. Let these things consolidate, then reevaluate. See if they want to break out again. Just like the bar is very low for apple in the supply chain, its very high right now. A lot of this space has been so beaten up. These guys have said it already. If i bleed out that chart on sky works, it makes me more nervous. I agree with b. K. , i want to see a flattening or basing of the stock. Im still on micron, up 23 year to date. If youre going in that space, i still think that micron was so beaten up, it was a value of 30. People said if you could get it below 25. Now its 17 still, its bounced back. I would still be long on micron. Like b. K. Said, you sell and take profits except for i would be shorting qualcomm, getting long in inintel. Intel about benefit. Next, two of the most recognizable brands in the world are the dows worst performing stocks this year. The names, and whether our traders are buying. Plus a breakup gone bad. A war of words intensifies between mobile eye and tesla, a look at what it could mean for tesla shareholders. Check out shares of novavax, falling off a cliff here, the decline is somewhere around 83 . Its a 2 billion company that just lost 83 of its value in the last half hour. Well have the details. Back in two. Ng] ng] the hily aa ed di a4. re drowning in informaon. Where, in all of this, thetuff that matters . The stakes areo highis, yourances, your future. Hodo yolve thi u dont. You partnewithirthat adses govs and, caneliver insnshtersonto pr onhamatters to you moan stanl i h 18flowe find the perfectift out of trillions of combinaon d working with t new rk Genome Center fintreatmtsts psonaas d and am helng sstreet ma education uqu tovery child. Hello,y me is watson. Welcome back. Call it a tale of two dow downers. Take a look at disney and nike, disney tanking to the tune of 12. 5 , the worst performing dow stock this year. Nike is right behind as the second worst performer, down 12 . Both eked out some gains today. Lets do little would you rather. Disney or nike, tim . Nike. Nike has gotten a little ahead of itself. I think the whole athleisure space and the footwear space has been overenthused, theres been some downward revisions. I would stay long nike. Adidas. Nike, i buy the stock in the low 50s and sell it as it approaches 60 bucks. You can trade it back and forth. I do not like disney, not a name i want to own. I actually were playing two of my favorite dances here. Nike i bought on seasonality because september performance is usually up. 7 ahead of that earnings print that were going to see basically, when you look at nike, they had europe, north america was getting better, but they cant have both of them in the questionable area. Thats what happened. It got beaten up this month. And so i got flushed out of my trade there. Disney, i would rather be an owner of disney against an 86 stock. Every analyst continues to downgrade disney. The eps revisions are going down and down. Thats the time to buy. It may be the time to buy, except its been a headwind for the stock. You want the stock to move higher. I think theres more of this to come. What better content . Right now, if you had to slam something against the wall, i would guess that its stistill is that overcoming their issues on the cable tv side, the network side . I always push back when you say its in the stock. Its not in the stock until its in the stock, until espn continues to slide. Even on a skinny bundle, i think disney makes more money than any other of the collateral place in the content arena. I would rather have disney than nike. Its purely on risk reward. The sentiment of disney has been horrible, were close to 90, 92 1 2 i believe was the close today. Maybe its 86 bucks. But still, ive only got a couple of dollars risk. I know where my stop is. I know everybody has been negative on it. Thats when b. K. Wants to get positive. Up next, take a look at shares novavax. Well tell you why its lost 80 of its cap in the last half hour. Heres what else is coming up. Heres what wall street used to look like before lehman fell. And here is what it looks like now. But despite a shrinking wall street, could financials still be worth a look . Plus its been a brutal year for biotech. But one group of biotech stocks very well could be a bargain. Meg terrell will break down the unlikely winners when fast money returns. Rememberere at ally, noinstopus frodoingright our. Remeos with me . Lly, m in. m in. m in. Im. Wait . P we are all ifor our customers. Ally. Do iright. Welcome back to fast money. Mobile eye has choice words over its breakup with tesla, attacking the car maker over safety concerns. Phil . Melissa, they dont like each other. They worked together for so long and this has been simmering for several months. The latest salvo being fired by mobi mobileyes chairman has to do with the auto pilot from tesla. Elon musk said, look, were updating the system, it will work with our cameras, there will be more driver warnings and it will cut the accident rate in half, it will be safer than ever, according to elon musk. The chairman of mobileye says, i dont think so. He says musk is pushing the envelope for safety. He says it, meaning the auto pilot, is not designed to cover all crash situations in a safe manner. As i mentioned, mobileye and tesla split up a few months ago. When they split up, it had to do with how tesla was using mobileyes software, and the systems that they have their. Tesla for its part says, uhuh, the problem is that mobileye did not want to push things in the direction that we were going, we had simply a parting of the ways in terms of our belief of what should happen in the future with auto pilot. If you take a look at shares of tesla and mobileye, keep in mind that split happened i think back in may. If you look at this stock, look at how they split here over the last several months. Mobileye of course announced the big joint venture with intel as well as bmw in germany. So you have two companies that, melissa, they have not agreed for some time, and the latest salvo being fired by the mobileye chairman saying, i dont like the direction of the new auto pilot. When they first announced the split, phil, was it tesla who said they cant keep up with the product changes and were breaking the relationship, and mobileye is saying, its not us, its them . Not really, at their last Earnings Call mobileye was very clear in that call saying we dont like the direction that tesla is going and how theyre using it. Theyve been kind of tit for tat for some time now going back and forth. Does it raise any questions of teslas ability, preying what mon replacing what mobileeye did with their own software . Thats a great question. No one ive talked to says they dont think tesla can do it. Theyre increasing production, youre talking 80,000 vehicles this year. Youre not talking about a huge its not like theyll immediately have to come up with software for 3 million vehicles. But that is a question thats going to be coming front and center with people as they continue to raise production, if they do, over the next several years, at what point will that perhaps be a hindrance, if you will, as theyre developing vehicles. Phil, thank you. Phil lebeau in chicago for us. The stock traded higher today, so it didnt seem to hurt it. Its teflon tesla. All these stories have come out that it doesnt seem to hurt tesla one bit. To me it really stems back to the fact when elon musk came out and described his grand plan on how the decarbonization of the electric grid is going to impact tesla, and the street bought into it, okay, were buying into this grand plan. So far it doesnt seem to hurt tesla one bit. Maybe this is more of an indictment on mobileye. Phil is quoting the mobileyes ceo, we dont know that guys name. We know elon musk. Mobileye doesnt really need tesla. If you think about the deals theyve struck with the entire auto industry, these guys are appealing to oems to give them an entire system that they cant do on their own. Tesla isnt even delivering on time. Meanwhile the volt is going to have a bigger mile, 238 miles on one charge, a significant improvement. I just think this issue for tesla today that were talking about is not the issue. The issue for tesla is a cash burn and expectations that agreed, but the stock bounced pretty effectively off that 190 zone. 205 down to 190, leaves the door open now for another 10 move. The next area of resistance is 220, tesla. I havent liked the stock either for a host of reasons but technically its been setting up well. This is a company thats traded in expectations. You listen to mobileye say theyre not using the product for what it was intended to do. When you think about the rhetoric this company has put out, auto pilot as a but they have never advertised it as a driver replacement system. Mobileye is mischaracterizing to their advantage. I agree. They could be miscategorizing as well. I cant believe mobileye walks away from a deal just because they dont believe the product is being used properly. Thats a little strange to me. Still ahead, is the Banking System safer after dodd frank . Take a look at shares of oracle, trading down now by 2. 8 . That Conference Call is now under way. Well bring you the latest headlines from that call when fast money returns. If we dont soe our debt pblem 19 trillion angrowg ner programs like educati will shrink. In just 8 years, tere on the debt will be our third laest fedel program. Bad newsor sll businesses. E good news . Bad theres still timeses. For a solution. Ask thcandidates for a pla to secure our futu. Bad theres still timeses. For a solution. Mary ba little lb. Bad theres still timeses. For a solution. One ofilons of orders this compas servers. Accessley ounds plrs and empyeesglobly. T with c on the rise, marys data uld be under atck. D security that senses, and migatecyber threats, their criticalata is safer th ever. And migatecyber threats, giving them e agilto be op secure. Cause no one knows lik. There really is a serious, big, structural problem. Incidence about one person. Its about or even about one bank. We still have a problem on wall street, where these giant Financial Institutions think they can make money, they can build profit models around cheating the american people. We have got, got to fight back against them. That was Elizabeth Warren, the democratic senator from massachusetts, talking about the state of the banks postfinancialcrisis. Larry summers spoke about why he doesnt think the banks are any safer. If you look at measures of volatility, the volatility of banks today is comparable to some measures a little more, some measures less, than it was prior to the financial crisis. And so if you believe in looking to market evidence, you dont see the kind of dramatic improvements that i think you would have expected. Today is of course the eighth anniversary of the lehman collapse. And since the financial collapse, a lot has changed in the barricadnking sector. Lets go to a man who never changes, dominic chu in the newsroom. Melissa, it may seem like i never change, but we all have to evolve. Since the financial crisis, the banks havent been the same. There was a time when these banks were dividendpaying machines. You bought them because you wanted those quarterly checks. They still pay today, but not like they used to. According to S P Dow Jones indices, the Financial Sector represented 30 of all Dividend Payments in the s p 500. At the end of 2009, after the depths of the crisis, it was just 9 of Dividend Payments. Today were around 17. So its not what it used to be in terms of capital return plans. Remember, these days they have to be approved by regulators. What about the overall picture on wall street . According to the new york state comptroller, the employment hasnt gotten back to precrisis levels. The average bonus for new york City Securities employees, 191,000 in 2006. About 101,000 in 2008. Here is a tweet from Charles Schwab chief investment strategist liz ann saunders. It shows what was once the worlds biggest Trading Floor in connecticut, at ubs. Fast forward today, the physical structure is there but its gone from a monument to capitalism to a shell of its former several. A lot of those desks and jobs have moved or been eliminated. I used to work on that Trading Floor in the currency and rate side of things. Everyone, including myself, has to evolve and roll with the punches. The banks have to do the same. Thanks, come to dominic. Are the banks safer because thats the crux of whether or not we regulate more, right . I think the regulation is always rear window type stuff. We never prepare for the next crisis. But yes, the banks are safer. First of all, back then it was leverage. Leverage was the problem. It was 30 to 1 leverage. Youre not finding that leverage anymore. Theyre still the poster child for dc. Thats why i wouldnt be in them. You have to define what you mean by safer. Wells fargo was not a trading issue, it was not a wall street issue. It was fraud. Its fraud whether it was wall street or main street. It was just wrong. That has nothing to do with a bank. That just has to do with humans being greedy. That fraud and lack of oversight, very different than fraud created by a cfo thats in there managing the process and you have all the c suite managers managing that process. This was done at a different level. The reality is it wasnt a fraudulent act from management. We dont know that yet. Look we dont know that yet. Jamie diamond, i think hes an amazing ceo. I could see him getting on tv at some point in time and saying, listen to me, i bet my career on it, we dont have those issues at jpmorgan, were not going to run into the same type of crisis youre seeing at wells fargo, were a safer entity. And you know what, thats going to turn the space. Jamie diamond to the rescue . But you remember the whole meltdown occurred during the crisis. This is a markets question in my view, because if we think about what happened obviously in the underwriting and all the nbs and the exotic Housing Market securities, yes, we had no concept really of what the risks were and obviously we learned they were well beyond what lehman could handle. It became a counterparty risk. Is wall street better now . I think its a loss worse. Worse . I think theyve destroyed the markets. Theyve destroyed liquidity. Dealers are not taking positions, theyre not incented to do so. Hold on. Dismantle dodd frank, does it get better . So the banks might appear to be safer but theyre not. They may have a lot of this capital that are forget about the banks. They cant get out of it. Forget about the banks. Is the American Public safer knowing that theres illliquidity created by government regulation . When theres a selloff in corporate bonds, when you have an etf or a mutual fund thats basically created as a liquid asset in a nonliquid instrument, tell me what happens when the banks cant create liquidity. All fire trucks are at the bank, pointing there, ready for the next fire. All the risks have moved out to the asset managers. The risk is still there. Thats the point. Nothings gone away. The risk is shifted from the banks to everybody that owns an etf across the country. Right, exactly. When Elizabeth Warren guess on tv, shes out of her mind. One more question. Given what we said about regulation, the prospect that things will change, people are going to be scrutinizing the regulatory structure around financials right now. Given what is going on with wells fargo, would you be in banks should trade in lower multiples. But yes, i think the Financial Sector looks encouraging, where it hasnt been in months. Look to loan growth in the Second Quarter from jpmorgan, the historical evaluations. I have to go to you, on friday you had a fullthroated defense of wells fargo and why it was going to be a buy, because the political situation was not going to get worse. Ill tell you what. Now what . You get Elizabeth Warren out there cheering the American Public. The reality is the regulation aspect of it, if Hillary Clinton gets elected, i can promise you this. Shes going to get less done than obama. She needs the house. Its not going to change. Its a sentiment trade right now. There are places to go besides you still say buy the stock. It was expensive before. Buy wells fargo and short jpmorgan if youre concerned about the risk. And i love jpmorgan. Maybe the time will come. The time is not now. Ahead, one trader making a massive bet on the emerging markets. Well tell you whats got him so excited. A rough run for biotech. One of the most recognized Fund Managers in the world is calling two stocks major bargains. Hell tell you what they are, after this break. Much more fast money still ahead. Gh gout. Gh gout. Pele gnxious and my office gets flooded with calls. So many things can go wrg. Is my worst nightmare. Everseco that poisut, my citys atisk. Ems dital grid manas reutes power, so serce can be stored within sec prioriumr one is keepinthose lights o it takes ienty to defeat the mothive in t. We drowning in iorma where, in all ts, is tthe syourances,so gh, your fure. How do y solve this . And the fortune 500,wi a t and, can divnsight person person, on what matters to you. Morgan stanley. Hey, jes. O are u . Orange money represents the money u put awayor retirement. Im vernthe orge money retirent rabbit va. Erime, ymoney ulmultiply. Llo, allf you. Get organizeat voya. Com. Ross new yorstat from long islando buffal from rochester to the huon valley, fromlby to utica, Creative Business incentiviv, infrtructure investment, university partnerships, and the lost taxein dades are eang a stroconomy d the right environment inew york state for busine to thrive. D thelet uselp grow your compat biness. Ny. Govy take a look at shares of novavax. It was a 2 billion company. Now it is less than 500 million in market caps. Nbcs meg terrell has more. Hey, melissa. Quite the nightmare for investors of novavax after hours. This company was working on a vaccine for rsv, a respiratory virus, a giant trial for older folks with rsv, and it failed in the study. The company saying maybe the prevalence of rsv this season was worse than usual. Theyre trying to parse through and figure out why it performed so badly. The stock down 87 . The company saying its looking for a path forward, not ready to give up on this just yet, melissa. Meg, thank you. Youve been taking a look at bright spots here in biotech. Thats right, i was looking at the bright spots a little earlier today, preparing to talk with you, and this news came out. This is every biotech investors nightmare. There have been biotechs performing well this year. If you look at the top ten performers year to date, they have some things in common. What some of these have in common is theyre small to midcap names working in the areas of cancer and rare diseases. If you look at gw pharma, all in rare diseases. Some of these are companies that have been taken over, medivat n medivation, thats why that one is up. You hear analysts talking about Cancer Companies in this midcap space. These Companies Getting a lot of focus. And some of the bigger names like regenron really not performing as well, its the smaller midcap ones. Meg, thank you. Meg terrell. It doesnt mattered whether biotech is having a good or bad year. Its the main sector sam eisley is required to invest in, hes known for running a Health Sciences fund. Sam, always great to see you. Meg was highlighting some of the hits of the ibb. But overall, its been a tough year. What do you think i mean, youve been around the block a few times. What has been the biggest headwind for the sector in the past 12 months . Theres more than one way to measure. Theres another one called xbi, typically the smaller companies, an equal weight index. If you go back a bit, in july of last year, everything hit its high. If you take it to the worst, which is kind of turning january and february, it was onehalf of its high. Yes, there was a lot of pain. If you go back five years, no matter what, where we are today, its triple. So there was a bubble. At the time there was a lot of speculation, is it a bubble, is it not a bubble. In fact there was. The Market Action subsequently showed that it was. So certain stocks have gone against that trend. In this year, medivation is up. The corporate buyer is back stopping all these companies because as they get cheap, they step in and get new products for their future. Youre coming with three picks. We want to get to them. Two of our biotech bargains are actually large cap stocks which arent necessarily in the favored part of the market cap spectrum right now. Large cap, yes. The ones we talked about were alexion everything is biotech today. Lilly is on my selected list. High risk, could fail, could double, that could happen to opop optithec . It has a second way to address the problem which might lengthen out the efficacy period of treating amd. So were watching that very carefully. It has pgdf, if thats the right acronym. Platelet derived growth factor. That may be a great advance for macular degeneration, so well be able to see a little longer as we age. Assassinatithanks so much, s. Those are his picks. What do you think . When sam mentioned the sbi, if you look over the last month, sbi versus ibb, the two biotechs, sbi is up 2. 3 . Ibb is flat. If you want to play this, and youre not really sure which ones to play, the takeover targets seem to be in xbi and through 65, an interesting breakup point. I agree, i think the takeout premium thats being put in some of these names, smaller names, its scary. I think you cant miss the trade, so everybody is piled into these things. Going back to something thats considered, lilly trades 18 and a half times worth. Their alzheimers pipeline is probably one of the best. I think thats part of the reason it trades its strength. I would stay in that name. News here on Deutsche Bank, kate rogers in the newsroom. Thats right, dow jones saying Deutsche Bank excuse me, the Justice Department is proposing a settlement for do you have bank of 14 billion to settle mortgagebacked securities probes that stem from the financial crisis. This is significantly higher than investors were expecting. They were looking for a range of 2 to 5 billion. Again, the Justice Department is proposing a 14 billion settlement. Their sources from dow jones also saying this is just a preliminary proposal. Deutsche bank is expected to push back on it. Once again, much higher at 14 billion than analysts were expecting, they were looking for a range of 2 to 5 billion. Deutsche bank is lower by 4 after hours. Thank you, kate rogers. This is happening when Deutsche Bank shares seemed to be perking up a little bit. This was seven times what people were expecting. This is a risk sector across the board. Financials in general. You want to talk about where everybody is pointing their aim at. That was the original focus. Here it is considered a quasi safe bet to buy financials here. Now i think theyre known touch across the board. You were short. I was short. I had options that i covered on Deutsche Bank. This is a very big number. Its perked up recently. I dont know if i would reshort it off of this. If you think the Banking Sector is a problem, you need to be worried about the u. S. Banking sector. Right now its down by about 7 . Why wouldnt you go for as much as you can get . Its kind of circular and weird. This is different than the German Government attacking their own bank. It seems like you have regulators in countries going after banks so they can pay fines so the Central Banks can fund these banks again. Its kind of absurd. These numbers are cartoonish if you think about it. And thats my reaction. I agree. I would stay away from Deutsche Bank. I like the u. S. Players. I believe you trade them, theyre good trading vehicles. Bank of america gets closer to 14. 5. And buy wells fargo . Ill say it again, i would buy wells fargo. At a certain point youre going to be right. I will be right, i guarantee you. Im usually right. Still ahead famous last words emerging markets are soaring and one trader is making a giant bet theres more room to run. Check out shares of oracle, volatile after hours. Well hear from the c suite what drove the quarter after this break. Youre watching fast money on cnbc, first in business worldwide. Welcome back. A huge trade in the emerging markets, emm up 14 this year. One trader sees it going even higher. Mike has the details. This is with u. S. Largest options trades weve seen. Somebody went out and bought the call spread in emm 100,000 times and financed that by selling 100,000 october 34 1 2 puts. They spent no money to put the trade on. This was an interest trade. If emm goes up 3 , which is what theyre targeting, theyll make 10 million. But eem has to fall 9 . When people start bidding up those puts, theyre obviously bullish, expecting eems strength to continue. Tim, what do you think . Eem has fallen 6. 5 in the last three days before the rally over the last couple. A major level up around 41. 34 is important support. The question for emerging markets are what do you think they do when the feds start to hike . I make the argument that eem will start to rally. Well see. Thanks, mike. For more options, check out the full show, options action tomorrow at 5 30. Jon is in the newsroom. Oracle says this isnt a bed quarter, it was currency to blame, making the point that the brexit vote actually came after their announcement of last quarter. And so currencies just went a lot more haywire, particularly the euro, then one might have expected. Growth rates overall are actually pretty good for the coming quarter, though, the guidance was a bit light of expectations, basically the high end of the guidance was exactly where wall street had hoped the midpoint would be. But oracle did also raise the outlook two Percentage Points to 67 growth for software and platform as a service. During the call, Larry Ellison and mark hurd making the call that oracle doing better than microsoft in the transition to the cloud, theyre not just taking their legacy business and transferring those folks to the cloud, theyre also picking up net new business as well. It seems investors are paying more attention to that. Thank you, jon fortt in the newsroom. Theyve moved their software as a service and platform as a service, its working very well. Its sideways. Margins still havent grown. Im with you. This news is going to take money out of oracle and start putting it into the apple supply chain. Youll continue to see a move higher. The transition to cloud has to be where they make the next leg higher. I dont know if they make that help me here transition, thats the word, in an effective manner. Has this been a trade on fire . I dont think this necessarily impacts it. The one thing i would say about this, when youre talking about the currency impact, you need some more clarity on that. Theyre blaming the euro. But the euro hasnt gone anywhere. Theyre blaming the pound. Either way. But jon said the euro. We need to get clarity. Is it a oneday event where they price one thing on a thursday, and friday it was a different price . Or are they blaming it on euro volatility, which has been zero . If they were doing that, i would be concerned about oracle. Final trade, after this. Im herethe td ametrade ste, oth than me move stf, what ar . Our thinkorswim trading plfo agegatesllhe options dat ay. You need in onple and le you visue at inrmfor y ons series okay. Hangn second. You can see the antipated ratock expeg earnings. Okay. Hangn second. Pressive. Whatsp,im. Okay. Hangn second. Td ameritrade. New kewhat are we nna . Guy. How out we pump mo into promotions . Na what else . At if we hire mo sales reps . Into promotions . H. Hat . What if we digite the supply chain . Soeoe can stomize theirbike b. Atked better than expecte illl k. Yeah, di it back. Just aittle. Liwh run live,u run sile. Thers t of places you never want to see 7. 95. [ beep ] but youll bglad to see it he fide ere smter investors wi aays be ify the gns were as obviousyou trad fidelitysctive trer pro can hed arter trand exoints ann lp protect your pottialrofi. Lity where smarter investors will a. Before a buncht collaborattools frominl madee actual rocket scientis. And the launchw met for a momentf reflection. Befo any of this, cdorchestrat collaboratiosolution using pcs with iel 6th gen core vo procesrs. Cestrn cdwintel. Cdorchestrat collaboratiosolution final trade time. Tim . We talked about nike tonight. I think this is a stock you can own at these levels, 54, 52, pretty good support. Valuation was stretched, less stretched. Check it out. Qualcomm, when they opened up that 7 plus and realized theres chip in their noncdma side, stocks are going lower. I would rather disney because theres better risk reward. Chesapeake was thrown out at the beginning of the year. Its up 61 year to day. They can move higher. Im melissa lee. Thanks so much for watching. See you back here at 5 00 for more fast money. 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 make you some money. My job is not just to entertain, but to educate and teach. So call me at 1800743cnbc or tweet me jimcramer. Of all the calls ive ever made on this show, few have ever been more right and yet more