including stocks, in some areas, will continue, because that money is so sticky. >> all right. we ought to leave it there. gentlemen, thank you so much for joining us this afternoon. really appreciate it. a great weekend to you all. that does it for us here. have a great weekend, everybody. "fast money" is coming up in just a moment. nasdaq market site over looking new york city's times square. tim seymour, dan nathan, brian kelly and pete najarian. a sea of red on the street today with the dow tanking 278 points. this marking the worst day for both the dow and nasdaq since january 27. the dollar, meantime, soaring, to an 11-year high and gold erasing, falling just under 3%. this as the u.s. economy added 290 jobs in the month of february. speeding up the expected time line for the fed to start raising rates. are we in a good news is bad news for the market scenario, pete najarian, what do you say? >> certainly today, that was the

reaction. as soon as those numbers came out, everybody started to try to figure out one way or the other the direction. the s&p started to get hit to the down side. we finally saw the volatility come back into this marketplace. it had been absolutely missing. trading underneath the 200-day average over the last week or so. and now it final spiked back above that and volume came back. none of those are necessarily always so great for the markets. but we are starting to see a little bit more activity come back into the markets, and people are going to have to play this out. i love the way the financials traded early. >> what does it tell us everything across the board sold off. equity sold off, bond, gold. >> things were very, very extended and people were k derisking and people trying to trade the market, don't. simplify your portfolio. no reason to put on more to hedge. if anything, take stuff down that doesn't make sense. if you think about the bond market and everybody said a month and a half ago in the ecb announced their thing and rates were at wides on the u.s., meanwhile, since that point, u.s. rates have actually widened by 50 basis points to germany.

people have been crushed. the dollar euro is something -- we're back to 108. i don't think that happens overnight. in fact, i think you can step in and buy the euro next week. that is a trade. because i think ultimately fundamentals are still against you and central bank divergence in policy. what happened today i think was extraordinary. as you say, across so many different asset classes and expressions of how you play the market, everything is blown out. >> with him or against tim when it comes to long euro next week? >> oh, know, that's not for me. we have -- to me, the whole story today was the dollar. we have talked about it for several weeks here. but that's the systematic risk. there's trillions of dollars worth of dollar denominated debt in the world that is getting more expensive by the day. and that's the one thing that if that's what this market was selling off the stock market was selling off on today, that's going to be a longer-term event. the stock market doesn't care about that. then you're probably in the buy the dip still. i'm undecided on that. but the one thing i do know, you stay long the dollar. >> yeah, but, let's talk about

bonds for a second. i know today, secretarying selling -- all-time highs, not a disaster. but if enthusiast by the price action, parabolic move in january, it's been tell graphing the fact that no matter what, at least positions has changed and higher rates at some point this year. when you think about where equities were relative to what the bond move was and weakness was telling us, i think it makes sense. i think you'll see 2,000 probably next week in the s&p and you flow what, go ahead, buy the dip there. i don't think you have to be early. that seems like a really good support level. >> it's funny. think about where we were six weeks ago. everyone is talking about yields. i think it's important. when oil was hitting lows, it was dragging everything down. and in fact, a lot of people felt that deflationary force forc forced the ecbs hand. i thought oil traded great today. it finished down, but look at commodities.

with the dollars move and the ten days, commodities are largely sideways. they should have been crushed. most days they would have. also in a week when china downgraded growth. i think look at the bond market, a big move. and only six weeks ago, people were saying the 161 that we hit on the low could have gone down to 130. so many people offsides. >> we have an improving u.s. economy according to jobs report. the ecb will be in action come monday, pete. where do you put your money at this point? what wins out, a better u.s. economy or pumping up the value of assets in europe? >> i think right now, you would probably outpace the market if you were in europe. more exposure to europe. but i still like the united states. i think there's still plenty of opportunities out there. i think when you look at the way the utilities were slammed, is that a bit of an overreaction? i think it was. something i would definitely keep an eye on to see if this was just an immediate knee-jerk reaction or is there more to this? but again, let's emphasize one other thing. for the last week or so, we talked about you need to buy protection. own protection in a market like

this that's been screaming to the up side. and to tim's point maybe overvalued at some point in time. but at least you've got protection in place when it's trading again at 14, and it will, buy some of that protection in the spdrs. >> let's get to the big story of the day, and that is afternoon pell officially joining the dow. the change goes into effect after the close on march 18th. does this mark the top in apple. joining us now is the analyst who called this move way back in july of 2012, sanford bernstein's tony sack naggy. great to have you with us. >> pleasure to be here, melissa. >> a few years ahead of time. how significant is this, given that there are -- really isn't that much money index to the dow. >> absolutely. so i don't think it was a big surprise to anyone, and investors had expected that this at some point would be inevitable. ultimately, our research says when you look back at the last 15 or so, companies that have

been added to the dow, on average, they have outperformed by 300 basis points relative to the rest of the market. so that's 3 percentage points in the 30 days after the announcement. so you know, part of that is index money running in. part of that is anticipation of the stock doing well. but history does suggest that it is a modestly stock-enhancing event. i would say beyond that, you know, it's interesting news. it will shape the dow's average. because it's a reasonable-sized component. but that's largely the extent of it t. >> let's talk about the watch. that's going to happen monday. is this going to be a solid news kind of event and, of course, ahead of this product launch, we've already gotten all sorts of reports leaked about some of the features. 9 to 5 maximuming that it's going to have. five hours of heavy app huge, power reserve feature. won't give alerts unless it's strapped on to your wrist, so that will preserve the battery life. does anything you've heard so

far make you more bullish about this product? >> look, i think we'll -- you know, we'll reservejudgment. i think an appropriate analogy here is the ipad. when it was first introduced and debuted, a lot of people wondered, what are we going to do with the ipad? it feels like a large ipod touch. and ultimately, the product was extremely successful. and the reason for that being was that the applications made compelling use cases. and so i think the jury is still out on this. and i'm not sure we'll fully get it on monday. we'll certainly get price points, availability, we'll get some features and we'll have some demos of apps. but really the momentum in the ipad evolved because the use cases became very, very compelling. and that's really what is still to be determined, and may not be fully determined after monday. >> in april, what odds do you give apple of increasing the

capital of return? and is that really going to be the catalyst here? >> look, i think there's a series of forces for apple. clearly, there's -- there will be the launch debut, which people are excited about, and, again, we'll reserve judgment. we expect an increase in stock repurchases. we think it could be about $30 billion a year for two or three years. you know, which is significant. apple could buy back 3, 4-plus percent of its shares. but the fundamental business is also healthy. what we're most encouraged about is that gross margin forces are positive, and we think gross margins are likely to trend up over the next year-and-a-half. and that's something that's really, really meaningful for apple investors. so i don't think the story is all about discrete events like the watch, and/or the capital return. i think collectively, the business is doing well. we see a path for margins

improving, and when the stock does not do well in 2013, it's when margins were being pressured. and the stock remains very, very inexpensive on a cash flow basis. >> tony, great to speak with you. thank you. of sanford bernstein. let's specifically talk about this event. we are "fast money." we're going to trade the event. how do we set up, given there are so many proclamations in the media, that this thing is going to be just an utter failure? >> as much as you're asking that question, i think you really should be thinking more about the nondiscrete events. i think it's about the march quarter on iphones. i think the sales on that is really -- street is expecting $54 million. the watch is something that i think largely people are all over the map. and it's not priced. and i sold my apple today, just to be clear. so i'm now flat apple and i sold it because i think the expectations are very high here in the sense that so much has happened, market sentiment for this stock probably can't be higher. and i think the market is something that concerns me. >> i don't really -- i mean, broadly, i don't care about the discrete events, but because of

market sentiment, it does trade wildly on discrete events. >> it's funny. this could be the first new product that a walt mossberg doesn't like from apple ever. you know what i mean? >> so you're in consensusing -- this thing is going to -- a piece of crap. right? >> i said could! i said could. what i didn't say, you could take the biggest fan boys on the planet and not like one of these products, even when they're not happy with let's see the apple tv a few years ago. they said don't worr it's a hobby. i think -- i actually disagree with tim a little. i don't think it's particularly high. so i think that the thing is not priced into a lot of estimates going forward. >> i think for the stock is high and the sentiment for the watch is really low. and that could be the issue. >> yeah, as you know, i've talked about the watch for a long time. and i think it's more of a nonevent, quite honestly. and i think tony pointed out a couple reasons why you would still be excited about this stock. i think it's the innovation side. i think it's the penetration of the iphone. to tim's point in terms of the

march quarter. and obviously, financially, what they are doing in the future. i think the watch is not priced in at all. if it's a big bomb and negative, i don't think it hurts the company. if it's great, then obviously i think that boosts us higher. >> buy, sell or hold at these levels? >> sell. but buy at 120. >> okay. later on, a way to get protection for apple for free. dan nathan will explain how at 5:30 on "options action." coming up next, we have a special top trade. would you rather edition from amazon and alibaba to foot locker. traders are taking sides on which stocks to buy now. and much more on the market selloff. look at how the s&p 500 finished on the day. this is the heat map. back in two.

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to see if it could monitor the front yard. why don't you switch to xfinity home? i get live video monitoring and 24/7 professional monitoring that i can arm and disarm from anywhere. hear ye! the awkward teenage one has arrived!!!! don't be old fashioned. xfinity customers add xfinity home for $29.95 a month for 12 months. plus for a limited time, get a free security camera call 1800 xfinity or visit comcast.com/xfinityhome. foot locker shares surge this morning and that gives us a very special would you rather edition. so pete, the question to you is, would you rather foot locker or nike? >> and this is really a tough one for me. i would -- i would lean towards foot locker. the reason, i like the fact they not only lean on nike but under armour, one of their phenomenal areas, and adidas. so when i look at this now, nike

has had an absolutely phenomenal run. i like the stock, but from a valuation perspective, i actually would go back towards foot locker and when you look at the growth, the continued growth earnings, year after year, five years in a row consecutive growth, this thing is an absolute monster. >> specifically in footwear, athletic footwear. >> nike, i would definitely rather nike. having said that, i think it's apples and oranges. i think foot locker is doing a phenomenal job. best in class athletic retailer, doing everything. their numbers said they're doing everything right. i would not be short foot locker, i would think about getting long. >> i'm cautious on nike. and i think a lot has to do with the dollar and where they're exposed and getting growth. i don't think you want to step in for the breakout. foot locker's news is already out and the stock is trading very well and they have much less dollar exposure. i'm kind of avoiding nike. i can in the low 90s is where you pick it up. >> next up, amazon and allibaba. alibaba's online marketplace,

t-mall. so, tim, the question to you is, would you rather alibaba or amazon? >> this is easy, because i have and i am long baba and i have no position at amazon. and especially if you look at these stocks year-to-date, amazon 22%, baba down 18%. we know the sentiment on baba is terrible. part of this is the seasonal element. the chinese new year at the wrong time. they're making significant fix investments. so the numbers in the short run might continue to get choppy. there is a lot of reasons why people are running scared. that's the reason you stay in this name. so beaten up, the valuation is decent. i like it. >> i agree with tim. i think you go with baba, but primarily because of the risk/reward. we bounced off 80. amazon to me, i'm not that excited about getting into it. it's a much better trade to get into alibaba. >> is there up side? >> i'm concerned and i own it with you, tim. i'm mostly concerned and looking at the two right now, what visa has been able to do this last

quarter tells us what he can do if he wanted to ratchet back some of the spending but continue to spends and that's what frustrates so many people now. >> i'm not so sure i would be short amazon. >> i understand. but as i hold baba now and look between these two, i think would almost rather be in amazon. i hate to say it, but i'm in baba. >> a lockup expiration alone. >> you know, there was six lead underwriters on this deal. obviously, it was a food fight for the shares. this was back in september. i would not be surprised if those underwriters go back to the company and say, here, we have a better way of letting 429 shares come to market. let's pack it, retell the story and that would probably reduce volatility in the shares dramatically. you do not want the shares coming on the market. >> who says 429 million shares will come to market? i get it, i get it. and if that happened, it would be terrible. would be an enormous buying opportunity for this stock. >> next up, tesla, construction on its giga factory, $500

billion battery plan, delayed according to report. but tesla denied the story, saying it was on time. the stock did end the day lower by 3%. tesla is one of the many stocks to trade, a lot on sentiment and not as much on fundamentals. another big meme, at which timer. so we asked the question, tesla or twitter? >> the twitter. >> the twitter. >> listen, so i've always said, one reason -- only reason why you own tesla, if you believe they'll be able to revolutionize the utility grid here in the u.s. so to me, it's more of a venture capital type of play. so can't be a huge part of your portfolio. twitter in the short term, short to medium term, has a much better chance of actually making money. i've said it before. they need to do one thing right, they have done multiple things right here. it's up 46, $47. i would personally wait to see if it filled back the earnings gap. but i would much rather twitter than tesla. >> on a day where everything pretty much was down, the nasdaq down 1.1% and for twitter to finish the day up by 1.3%,

that's not bad. >> it closed down a little bit. here's the deal. i'm actually with dk -- time lapse or something like that. >> oh, sorry. >> closed down 1.3%. stocks will fluctuate. so here's the -- >> by the way -- i didn't even think. >> i actually don't like a whole heck of a lot of things going on there. and i don't like the way they explained user trends in the last quarter. and the only reason i'm long and much less than prior to the results i sold afterwards is because i actually think google has to buy them. and that's not a great investment philosophy. but when you think about the market that we're in, emanating environment we're in, i think google should put $90 billion or $65 billion. and i think they should -- >> that's the only reason why twitter would go up, if google buys it. that's pretty grim. >> no, come on. google is monetizing mobile faster than any other player in their space, smaller on a

facebook scale. tesla -- if you think this market today was scary, you get out of tesla. because this stockstill has so much fluff, there is nothing underneath. and a lot of competition. >> still ahead, markets having a rough week but am ba relia saw big gains over the last five days. we'll tell you how to trade it after the break. and the biggest movers and shakers as we head to break. take a look at the dow heat map. lots of red, as you can imagine, there. stay tuned. of active management. believe ir

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12% after news that the ewill include a chip. also reporting strong earnings in he have knew this week for the fourth quarter. pete, what do you do? >> you look at the numbers and growth rate of not just the earnings but sales. absolutely incredible. and then when you combine what they are really doing in this space in the camera space now, i look at the forward valuations. i think this thing trades rather cheap. i like the stock. i own it. >> you like gopro. >> i do. but not for the technology reasons. i like -- >> it's -- >> look at it -- i look at it more -- similar to how i look at tesla, right? where it's a venture capital type of thing. you have to believe that nick woodman can turn it into something. gopro doesn't matter about the technology. they have had -- >> they don't care about the chip. >> no. here's my point. that's a different story. i do care about the chip, because i think this is a great way to play that whole space. >> even after this move.

these were blowout numbers,ot only the chip, but ip security on their back, major growth. and the partner to have for what they do. i think it's a home run. >> yeah, and i actually think it's not just the camera. there are other industrial uses for their technology. this could be a company with a $2 billion market cap, texas instruments. >> four positives. >> the stock went from 50 to almost 70. >> do what you want with the information. i'm just saying, all these guys are positive. all right. time for pops and drops. big movers of the day. a big pop for lifetime fitness, up 15%. >> this is a name that just last summer was talking about a reap conversion and now private equity. spiking the stock. a no-touch. time to look elsewhere. >> pop for finish i star. >> it broke out to a new level. the stock up about 15% of the year. and really looked good here. these are the sorts of stories, where if you can hold new ranges, it's a good long here and i would use yesterday's close as your stop to the down

side. >> drop for i didn't havent solar. >> remember yesterday, we had a really big rise and then, of course, all the solar names have been doing well. and this particular case, i look around $10 to see if you can get an entry. >> drop or volley, down 2%, tim. >> believe it or not, iron ore prices ticked down. that surprised me, because i think you really do have cash costs that start to make this interesting. i would not touch this stock yet. i don't think it's time. >> all right. it's a friday show. so you know what, time for the final trade. let's go around the horn. tim seymour. >> i'm simplifying, i don't need to own this now. >> at risk reversal. >> i'm with pete najarian over here. i like to agree with him. the protection -- >> he doesn't like it. >> apple, i think you buy some protection monday before the event. >> beakers. >> so one name that hasn't worked out well is tlt. i think today you buy that. those spreads are very wide, strong dollar is going to drive money into this area. >> pete najarian. aka pit boss.

>> now i'm frustrated. risk reversal is killing me over there. dell, huge paper today. going higher. >> l-i-b. >> will get you down. >> that does it for us here on "fast money." thanks for watching. see you back here on monday at 5:00 for more fast. don't go anywhere. "options action" is up after this break. stay tuned.

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new york city's time square, i'm melissa lee on a brutal day for stocks. our guys getting ready to give their best news. here's what's coming up. >> great selection, great prices. >> and yet, walmart's lagged in both the dow and retail stocks. but could the world's biggest retailer be the world's catchup trade? plus, there is something funny about apple joining the dow. >> funny how? >> relax, joe. all we're saying is that apple shares may not do what you think. we'll explain why. and want proof tech is in a bubble? >> i want the truth! >> we've got a shocking chart that settles the question once and for all. the action starts right now.