Ratesensitive stocks. Should you dump your dividend stocks as they continue to rotate out of this months hot trade . Bk. Implicit in this question is, is safety no longer safe . Well, im not seen sure these were safety. These were yield plays, right . Now you have a change in whats going on with yield. Lets look at what happened today. We had a pmi number that was decent, at least decent enough to say that the fed may raise rates. We can discuss that later. But that they may do that. We had oil rising. The higher oil guoes, the more likely the fed is going to raise. And then the last thing we had, china is in the sdr. They have less of a reason to necessarily stockpile a ton of treasuries. So you have a lot of reasons not to be buying treasuries, for yields to go higher and thats what happened today. So i think you do get out of these names. I think the risk reward is not favorable here for these names. Isnt this exactly what we wanted to see . Isnt this i mean, im not sure i agree with the fed. But if you listen to the fed, they tell you, they want to see more inflation. Thats a good thing. Meanwhile, weve said on the show, people have said on the show, thats almost an asinine you know, supposition. But if you think about it, what were getting here is were getting an inflexion point rates, which has found some bottom and maybe brexit was the event and obviously thats not a great event. But maybe in the scheme of markets, it is. And that actually seeing the jgb kick back up, now minus 6 bips instead of minus eight. It depends on why theyre higher yields. If you have a slow economy and higher yields, because oil is going up and the fed decides to raise into a weak economy, thats not good. But if. But if we have tightening effects on the economy, i think it puts the fed on hold anyway. If oil i dont think oil is going to go to 75 a barrel in a short amount of time. But higher oil, higher dollar are going to put the brakes on for the fed anyway. This market rallying the way it has is sovereign yields. They begin to rise and pm multiple comes into play. So youve got to be very careful, as we see sovereign yields tick up, people are going to call into question the u. S. Stock market valuations. And thats been a little bit of the bump up when we got to the 2180 level in the s ps. So i look at you and say what do you buy under these circumstances . Do you buy the banks, which didnt rally today . In the hopes we get a yield . Actually, you can play that trade. You can play it into december. Were going to get a move by the fed. And i think you can play that sentiment trade. So its interesting. Everything i agree with you, except if they do hike, they would be hiking into what i still perceive to be an earnings recession which is a real problem. I think rates are still going down. I hear what bk is saying in terms why rates should go up. The tenyear around 1. 62, which, you know what, its not like its off to the races here. So i think to answer your original question, xlu has sold off significantly. I think it was 53, the alltime high or so in july. Its traded down now to 48. I think thats something down 10 or so that could move higher. Right. We havent seen the same sort of move lower as in staples, for instance, as in utilities here. Right. You saw the rate sensors will get more on that. To go back to the banks, i actually sold my banks the last couple days. I was bullish on it, but now to me the risk reward whats going on with the european ranks is not there. Maybe you get a 2 dividend, maybe there is a trade into the fed. But, boy, if anything happens in europe, the u. S. Banks are going to get hit. Yeah, i mean, look, i think its not a bad sale you made. Look at the way they acted today. I am bullish on the banks going into december. I think theyre underowned so positioning light and youll see substitutio substitutions. The prospect of the hike outweighs anything going on with Deutsche Bank or any cloud Deutsche Banks held it down. Deutsche bank the cloud over wells fargo i dont look as substantial to Deutsche Bank. You listen to jamie dimon today, and you tloifb what he said about it being mass and all sorts of moving parts. People do not understand. I walked in today and looked at bk and i said i think Deutsche Bank is buy. The bottom has been put in place. Im saying that same saying that, there is a lot of risk here, but i do believe the setup is you be long the stock here. On Deutsche Bank, its it is a specific situation. I dont think its a read on the u. S. Banking sector. Therefore, this is a bank that clearly needs capital. The risk reward if you look at the market cap of the bank and size of the Balance Sheet and liabilities, this is not a liquidity issue. Counter party means less profitability and thats a bad dynamic, not only for equity shareholders, but for the overall profitability of the bank. I wouldnt go near Deutsche Bank. What would you go near for the Fourth Quarter . I continue to say, the things were talking about here are dynamics very good for cyclical stocks and that means transports and go with companies where i dont think youre making a huge leap of faith. Fedex just told theyve got Pricing Power and the tnt acquisition is not only a creative, but its a creative to margin, on the ground business, the airlines, to me, are in a situation where they have Pricing Power in a Higher Oil Price environment. And thats what we have. The other side of the coin, you think we have a weakening economy. I do. What would you buy going into the Fourth Quarter . Work flow throughout the entire thing. I still think the ibb is okay. I still think biotech is okay above this sort of 280, 285 level in the ibb. I think there is specific names weve talked about. Tim is going to do a thing later on a company. Look at what cmg has done over the last couple weeks, a nice move to the up side. Look at a name like an darko petroleum, looking for a levered energy play. If oil were to stay here, apc is an interesting play, as well. So there are names that work. Oil for me, thats the sector right now. No matter whats oil is very, very strong. So the risk reward on Something Like im long xop, im not long oih, thats the place you want to be. The question i have to ask is, and ive been constructed on oil. But if the reason why opec is if opec is now getting their game together, is it does that mean the none opec producers which caused this problem are going to not stop pumping and say thank you very much for this raise in prices . Its change in saudi energy manager. Theyre worried about price and thats enough. Lets get more on what you should be betting on in the Fourth Quarter. Lets bring in Mohamed Elerian at allians bank. Always glad to have you on. Thank you. We know youre a big fan of the show. So we thought we would play a version of one of our favorite games here, would you rather. As we kick off the Fourth Quarter, mohamed, we asked first, would you rather stocks or bonds . Neither. I would rather have cash right now. Now neither. Try this again. Okay. Because obviously youre not a fan of the show enough or you would know that i yell at the person who makes up their own rules for a game thats would you rather and they pick a third choice, mohamed. I figured i would get treated differently. Stocks or bonds . Start with the question. What would i rather have . Stocks or bonds, yeah. Bonds. Why . Because i think stocks are not pricing in the amount of uncertainty, macro uncertainty. And for good reason. This is very hard to price. We have a number of political events coming up. We only get clarity on brexit, a italian referendum, u. S. Election. In addition, we cant figure out what Central Banks are doing. We know the bank of japan is losing effectiveness, the fed is divided, the ecb pushed to do more and likely become less effective. If you look at all of this uncertainty, it really does raise the question as to are we too expensive . Is the risk premium not valued properly . Now, bonds will get anchored in a world like this. Stocks i want to go back to your original answer, which was cash. Do you also see the same reasons behind not want to go own stocks applicable to bonds at this point . Yeah, i dont think Central Banks can remain as effective in repressing bond volatility and equity volatility. So at this point, i would accumulate some cash. I would wait. I think you will have opportunities to buy both at more attractive levels and i would be particularly careful about the effect segment. Because i think thats where a lot of the volatility is going to come from in the Fourth Quarter. All right. Heres the next question, mohamed. Would you rather tech or energy . Tech. Why . Because i love a sector that generates cash. I love a sector that has a Business Model that works and doesnt depend on supply side that i dont quite understand. So between the two, tech rather than energy. All right. And finally, heres the big one, mohamed. Trump or clinton. Clinton. Why is that . Because i think she brings a more complete economic plan. I think she brings a lot more experience. And there is this big risk about what will happen to the trading system, which is one of the issues that youve got to ask be careful about. You know, we are in a very interlinked economy. And as the uk is finding out and we will find out, its not easy to disentangle yourself so this big notion of big tariffs on mexico and china scare me. You just brought up the uk. We saw theresa may say theyre going to have article 50 triggered, exit the eu, the british pound weakened today. Is that a risk for u. S. Stock investors or is that something thats good for u. S. Stock investors . Thats a great question, brian. The risk here is that you get lots of moving pieces. So as we get details on brexit, and i think its likely to be a hard brexit, rather than soft brexit. Not because thats what is in everybodys interest. What is in everybodys interest is soft brexit. But the politics have become so complicated all over the world. If we get a hard brexit, youre going to see sterling weakening quite a bit. Thats going to transmit volatility throughout the effects segment and on to the equity segment. So be careful of these interconnections. We have seen it before. And the effects sector can drive volatility elsewhere. Mohamed, thanks a lot for playing with us. We appreciate it. Youre a good sport. Thank you. Mohamed elerian of allianz. Who is going to be a buyer . Took the low volatility approach, i think, in the contexts of stocks versus bonds, tech versus energy. You have a place where we have seen certain trades, but as we look at the economy were in, i think were going to have fed speak over the next couple days. I think this was enough to trigger markets to take rates higher. The Central Banks have one into an issue where more probably means more impact on yields going higher. So having more cash into this environment makes a lot of sense to me. I agree with him on the tech front. I think you need to have cash flow in this market in order to buy a stock. You dont go out and willynilly and buy anything. Buying back stock versus borrowing are the stocks i want to known. Tesla revving up delivers in the Third Quarter, sending shares soaring. Is it enough to meet the yearend goal. And Hillary Clinton taking on Corporate America and taking on specific companies. Is there more pain ahead for these names, or is it an opportunity to buy . Weve got those names in the trade later. And is disney about to go on a shopping spree . The rumor about the next big buy heating up. The traders tell us the Perfect Match later on this hour. Much more fast money straight ahead. Y,esse. Who are yo ivernthoran money retire rabbit from voya. Orange money represents over time, your money uld ltiprement hello, all of you. Welcome back to fast money. Shares of tesla jumping after the electric car Company Announced a Record Number of deliveries in the Third Quarter. Tesla announced it got 24,500 cars to customers. Thats up you 70 from a year ago. Its also basically confirming second half guidance here. And that seems to be the linchpin. Those are pretty big numbers. So for those listen, i understand why people would question tesla as a stock, as a company. I get it, right . My thing is has always been, who is left to be the incremental seller. I understand that short sellers will be out there. Its my believe that the people who own the stock, the institutions that hold it, are going to hold it for better or for worse. Theyre not going to sell it at 180. Theyll probably sell it at 100 if it were to get there. In other words, their belief system is such, and i dont think theyre getting out. What does that mean . It means as pete will say all of the time, youre probably better off playing it with options. Ive got to tell you something. Were at levels now if you start to get through the 15 215 level, youll break a trend since last year. And on november 1st a lot of room on the up side. And solarcity comes up for vote theoretically sometime this month. And im not sure at one point, i would have said that deal falling apart was actually would be a good thing. Would be a good thing and now maybe a bad thing. Because i think it also speaks to the fact that elon musk is not able to control the boardroom on these stocks any more. When i look at tesla, just because there is a big beat on the Third Quarter numbers, doesnt change the fact the company probably has another capital raise, burning through a ton of cash and the commercial element of this outperformance, i dont think, is that great. I will say, look at the stock on the charts. 215, 214. Youve got the 50, the 100 and 200 all converging. What does it mean . The stock probably isnt staying here. The bears will also say that elon musk had to send the email saying we will never discount a car. You should never discount a car because there were concerns they were discounting cars and could the discounts have helped these numbers in some way. Yeah. I mean, it could have. I mean, look, tim is 100 right. They have to raise cash. Obviously the solar city overhang is a concern. I look at it and say, there is probably up side here for a trade. It will be shortlived in my opinion. I think 250ish is the sweet spot as far as selling it. You buy it back around the 200 level. I actually think this is the best of all worlds for tesla. Theyre not going to be able to execute a deliver. Right. So here you are the street talking about tesla, the bigger picture. Now theyre executing the risk, and ill agree with you, is they have to be able to raise cash. As long as the Capital Markets are open to them, then tesla is a buy. Still ahead, you will not believe what donald trump just said about his taxes. The latest from the campaign trail right after. This im melissa lee, youre watching fast money, first in business worldwide. Meantime, here is what coming up. Our breakfast special is chorizo and eggs. What is that . Its what chipotle hopes will get you back in their stores but will it work . We took to the street with a scientific poll. 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Because no one k like at t. On the campaign trail, donald trump offering a defense of his personal attacks as in Hillary Clinton taking on wells fargo, slamming corporation for recent scandals. Eamon javers is in d. C. With the latest. Two big stories to watch on the campaign trail, starting with donald trump, who is offering up his first extensive oncamera reaction to the New York Times story over the weekend. The New York Times obtained his 1995 tax filings which showed that he took a nearly 1 billion loss that year, which may have allowed him to put off paying future taxes in the years to come. Trump, not confirming that story, referring to that as an alleged tax return, but still offering a defense of how hes handled his personal taxes over the years. Heres what trump had to say a little while ago in colorado. As a businessman and real estate developer, i have legally used the tax laws to my benefit. And to the benefit of my company, my investors, and my employees. I mean honestly, i have brilliantly i have brilliantly used those laws. Trump saying there that ultimately, the tax code itself is unfair, but because hes been a big beneficiary of that unfair tax code, hes the guy to fix it in this race. Meanwhile, Hillary Clinton in ohio talking about large banks, also talking about the unfairness of the economy structurally. She singled out wells fargo for criticism and had a message for ceos across the economy. Heres what Hillary Clinton had to say earlier today in ohio. It is outrageous that eight years after a cowboy culture on wall street wrecked our economy we ar