nothing too significant. >> little bit of a reflation story. >> biggest impact of the trade deal that was reached, mexican peso had a good day. >> dollars with a little stronger in terms of the broad er index after being up a percent last week. that does it for "closing bell." >> "fast money" begins right now. >> our economy is booming like never before jobless claims are at a 50-year low. the stock market is at an all-time high. think of that. over 50% since my election 50%. people, the 401(k)s, they have 401(k)s and they were dying with them for years now they are so happy. ♪ everything is awesome >> president trump touting the

new american trade deal and everything is awesome. jumping 300 points as it looks like trade fears won't be hanging over the market any longer but wait a second. >> whoa, whoa. >> that's right. closing at lows of the day even the airlines are tumbling on higher oil prices was today's rally really not as awesome as it may have seemed, guy? >> s&p closes within half a percent of an all-time high. all-time high in the s&p was 2940 we're 16 handles or so away from that everything that the president said is factually true -- >> we're not up 50%, 40%. >> 46%. >> close enough. >> rounds. >> don't exaggerate. >> whether it be 40 or 50%. >> so it's up 46%. >> the part about people dying with their 401(k)s is a bit of hyperbole but everything is great. vix is at 12 not a lot of fear out there.

you mentioned small bank etf, lowest levels we've seen since last october russell rolling over is a bit of a concern. s&p, who is to argue the fact that the s&p goes up seemingly every day? the internals aren't great the market structure seems to be intact. >> you have to look at why they were rolling over. what made the russell outperform weaker dollar -- stronger dollar and trade. >> right. >> both of those are gone. why wouldn't it roll over now? >> so everything is awesome? >> why do small companies do worse? local companies, small businesses that benefited. >> they're not subject to tariffs. >> if the trade environment gets better, you would think that they would do worse because then money rushes in to large cap. >> didn't trade environment get better today they were down 1.5%. >> yes, the trade environment got better so the small caps should be down.

>> theoretically, they should be more insulated from trade fears. >> all right okay. >> everything is awesome when you're part of a team. >> you didn't see the dollar make new highs it wasn't as if the dollar came in but it didn't make new highs. >> what do you think, karen? >> for me, trade has been at the very top of my list of worries very happy to see a trade deal i think we were sort of getting a sense that things were heading the right way, i think, on friday and maybe there could be a deal that's important to me the markets sort of start to roll over is energy prices really starting to move. tim has been on for a long time. that starts to get into the inflation concern, right 307, 308, anything that was sensitive, airlines getting hurt that's a little bit of concern

for me wage pressure is there, too. i think that bodes okay for the consumer i think we have very high employment, wage pressure is good because they'll be making more money but it concerns me for some of the other things, the oil and inflation. however, for banks, i think it's good. >> look, if you look at the correlation between oil prices and bond yields, we've seen this a couple of different times. it's inflationary. the consumer didn't benefit. we have to look at this the same way. we weren't giving the consumer a lot of credit when oil was at 25 bucks. i don't think oil prices, up 25% since mid august, extraordinary if you think about it, is something that is going to derail this economy. a trade deal with canada is not a trade deal with china and let be clear about this. the u.s. caught china very flat footed in terms of this trade deal they were tightening credit. we put them on their heels china has the ability to hold through this in many different ways, including the ability to have monetary policy stimulate

their economy if they really need to. pmis, european pmis are down nine of ten months, basically where they were in 2016, before we got into this global reflation time i think there's enough data out there to say not that it's about to fall into the abusiness but, yes -- >> global economy should be bought on a relative basis. >> that's fair. >> people want to move back into em at this point because of that stark outperformance not to say it's going to come at the expense but maybe you'll see rotation. >> we haven't mentioned five minutes into the show the fed raising interest rates particularly when you're talking about rotating in emerging markets. >> and doing what they should be doing. i think we all agree that the feds should be raising i think it will create a -- six months ago, ten-year trading above 3% was a huge burden for the market karen brought it up.

otherwise we wouldn't be talking about it right now that's still a concern first day of the month, new quarter, with this trade deal in tow, i thought the s&p could be up 35, 40 handles. so to answer your original question, i don't think today's performance was all that great with that said how can you deny the fact that here we are, effectively, at all-time highs >> this market, though, you could make an argument that that was the least popular third quarter, best quarter we've had since 2013 in a massive bull market and nobody paid attention to it. up 7, 8% the same sentiment exists now. people are uncomfortable with the dynamics and including, you know, i made the point that maybe we are front loading some of this growth right now i don't think there's any chance that the trade stuff, as it sits right now, will not affect growth in the fourth quarter. >> i like valuation. we're in a no man's land until 10, 12 days from now then we'll start to see some numbers. that's what i think could put a

floor -- it doesn't need a floor. that could get us more upside. >> the last quarter of the year, do we want to be in, let's say, health care? >> i think so, yeah. we talked about that for a while. it's under the radar and becoming now -- more people are talking about it it's been under the radar. your final trade last week was pfizer and that stock has performed extraordinarily well ever since president trump put a bulls eye on their back three or four months ago. in terms of the fact that health care is not focused on. >> health care, tech, consumer discretion. >> the new sector tech, not communication services. >> might be a little bit of both they're both there communication services are actually your new discretionary basically, when you get the netflix there. even though amazon is left behind i think it's amazon, netflix and i do think it's still apple and i think it's health care as well. >> all right despite today's rally, our next guest says there is limited upside left for this bull run.

chief strategist at morgan stanley, what are you worried about, mike? >> i'm not hand wringing over this but you mentioned the right thing, karen, rates are now ten. we think 16 1/2 times is it, that's about as high as you can go when rates are at 3.10. 12-month basis in terms of where our earnings are the difference between now and a year ago, a year ago we had tax to look forward to today we don't so if we're at 173, next year is 178. that means 175 is your number. what are we playing for at this point? you're kind of moving the chairs around yeah, you can rotate around but it's really interesting to me, internals have been lousy because the market is confused it's looking for new leadership

here i do like health care. you can find some names in there. even within tech there's good names, it's just not as broad. the banks are probably the one thing that worries me the most, to be honest the way the banks trade is telling me that growth is going to be even worse next year than what we're forecasting. >> the valuation of the overall market is pretty full right now. sector, let's say, like health care, it's in line at this point. how do you valuations? >> you have value stocks, gross stocks tha run the gamut. i don't think health care is nearly as cheap as it was. drug pricing and those concerns have taken a backseat, helping health care here in the short term but it's a stock-picking game. at least you can find names within health care that can grow, okay, and they're somewhat defensive. i am worried about the deceleration we'll see both economically and from an earning

growth standpoint. >> at this point even technically they're at an average price now. people have to be pushing up estimates. >> we like energy a lot. that's been our favorite sector most of this year. it has defensive properties. this sounds kind of weird. it has defensive properties because of some of those yields. oil price move has been dramatic on a revision basis over the next four weeks, i think energy has to be in the portfolio. >> with the average hedge funds somewhere up 3%. where do you see the chase for performance coming in to your premise? >> the three sectors that have outperformed, tac, consumer discretionary and health care. people like to chase what they own. they're comfortable with the names. this rotation toward defensively oriented sectors have happened since june we'll see more of that as well chasing in areas people don't

own because they're going to work but i think what they're going to want to buy are the things that have worked all year. typically that's what most active managers do, chase the things that are working this year until they stop i mentioned the breath of the technology sector, we're going to see more names fall off in october. that's a portfolio to be really focused on right now what you do have in the portfolio, make sure it's something you feel very good about going through earnings season with. >> are you worried about inflation in and of itself or are you only worried about the yield in relationship to the valuation of stocks? >> depends on what kind of inflation we're getting, right good inflation, meaning costs are going up to offset some of these increases in input costs is healthy that's a bull market what i am worried about is energy costs that's not healthy generally things that can disrupt a consumer, prices that can't be

passed on necessarily in the supply chain tariffs. by the way, i don't think tariffs is resolved because we've got this deal with mexico and canada the big one has always been about china. i think that will come back into play after the mid terms and that has the biggest risk for next year, tariffs and margins we think even without tariffs going up next year that margins is going to be the story in 2019 is disappointing that's where the biggest risk is in earnings. >> is the market underestimating the resolve of the chinese >> look, the chinese can play long ball, right they can take a lot of pain. there's no incentive for the chinese, in my view, to negotiate now. let's wait and see what happens with the election, see how tough the president wants to be, post the midterms i think the chinese quietly are hoping for a correction in the stock market, quite frankly. maybe that will get the administration to kind of come to the table a bit more. look, i think that president trump has shown a penchant to want to go the distance on this.

it's going to get scary again. let's put it that way. i don't know where it ends up but i think it's going to get scary again. right now it doesn't seem that scary from an investor perspective at the moment. >> in terms of limited upside here >> well, his job is sort of make market calls. >> right. >> which i feel like is the opposite of my job it scares me a little when he talks about the multiple or whatever i do think that the markets tend to -- they don't stop on the dime of here is the correct valuation. they go too far one way or another and i'm suspecting we'll go too far from the upside. >> i really love to integrate. valuations on a price to free cash flow relative to their history, people like chevron, royal dutch, are very, very cheap. i think this is a place you could continue to play i like the yield basis as well, even though people think yields are going higher. >> mike was worried about growth

being pulled forward growth out of the picture or less than it is now. that means that the fed should probably sit back. he was also worried about interest rates fed sits back if growth isn't as great and rates come in a little bit and -- >> 2018? >> worried about it right now. >> i think the fed -- well, i think the fed moves at least three times next year. that's what makes markets. going back to the original conversation, there's runway in health care. maybe it's starting to get expensive but there will be catch up instantly in the new year. elon musk strikes a deal with the s.e.c is this proof that you can't bet against musk this a value trade or value trap the chairwoman has three things to look for. crypto universe, chris giancarlo is here to talk all things bitcoin and regulation.

for all you ether fans, stay tuned. live from times square in new york city.

♪ not long ago, ronda started here. and then, more jobs began to appear. these techs in a lab. this builder in a hardhat... ...the welders and electricians who do all of that. the diner staffed up 'cause they all needed lunch. teachers... doctors... jobs grew a bunch. what started with one job spread all around. because each job in energy creates many more in this town. energy lives here.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ceo chris giancarlo joins us bob, take it away. >> thank you very much,

giancarlo. "fast money" viewers love to hair about bitcoin you're the man in charge of regulating that. there was a roundtable held in washington to look at better ways what do you need to do to make sure that the crypto market is regulated? >> we're very focused on the fraud and manipulation aspects of crypto currency markets right now. last week we won a big victory in boston, certifying our authority to prosecute fraud and manipulation in the crypto space and have been very active at it. >> do you worry if the u.s. does not do more to innovate that the crypto innovation will oversee -- the u.s. has got to go ahead with this or it's going to go offshore. >> and yet it's the united states that's gone forward with the very first bitcoin

derivative derivatives trading on the cme we're ahead of the world in that there's no question that united states is leading in a number of areas but there's other areas as well of innovation where i think it makes sense for us to take a little bit more of a thoughtful and intelligent approach, just as the u.s. congress did 20 years ago in the early days of the internet. >> viewers constantly ask me about the difference between the cftc, for example, and the s.e.c. now we know, of course, bitcoin is a commodity you regulate that as the cftc. the s.e.c. has been reticent to agree. can you briefly explain -- it looks like it's safe to trade bitcoin future bus it's not safe to have a bitcoin etf. how do you explain that disparity? >> our statutes are written in the 1930s. we're operating off a

30-year-old piece of software. it didn't exist when these statutes were written. more broadly, s.e.c., their oversight is over capital formation markets with a big retail focus at the cftc, it's on risk transfer markets and we've always focused on derivatives and a lot of that is institutional trading. we're focused on institutional investment they're focused on retail. different orientation, different history. we come at these things from different perspectives. >> where do you see the bitcoin market evolving? go out your crystal ball two years from now, what do you see happening? >> two years, i personally think that crypto currencies are here to stay. i think there is a future for them i'm not sure they ever come to rival the dollar or other currencies but a whole section of the world is really hungry for currencies

there's 140 countries in the world. every one of them has a currency probably two-thirds of them are not worth the polymer or paper they're written on those parts of the world rely on hard currencies. we're talking not two years, maybe ten. >> how do you push that innovation you sound like an innovative guy. how do you protect mom and pop out there from getting ripped off? we know it's a problem we know custody is a problem we know fraud is a problem. >> two-handed approach one hand, we're real strong and hard against fraud and manipulation on the other hand we're thoughtful when it comes to innovation we're kicking off our very first and very first for any agency conference here in washington. >> i have to ask about another hot topic. marijuana, pot stocks. it's not fully legal in the united states but it's becoming legal. could you see the day where cftc might approve a marijuana

contract >> i foresee the day as you said we're working our way through the legality of marijuana. as a legal product absolutely i could see something based upon marijuana as a derivative product. >> that will be something we will cover, i assure you. >> i look forward to it. >> the viewers are really interested in what you have to say about this. >> thank you, bob. >> chris giancarlo, chairman of the commodity futures trading commission back to you. >> bob pisani, lots to unpack there. the notion of a marijuana contract this seems to imply that all marijuana is created equal and that's really not the case particularly when it comes to mediciaicine versus recreationa. >> you can't have a commodity based on the underlying plant. it's not about necessarily the plant that sells as a commodity.

medical and, yes, recreationally do we have an alcohol contract >> we have corn. we have soy beans. we have crude. it's really about the derivative products if the recreational side of cannab cannabis lifestyle, opportunities. >> a bitcoin, we're talking about the two of them, it's interesting if you look at bitcoin chart and overlay it with tilray, canpy, cronos, it's asimilar buyer that's out there. has nothing to do with each other yet guys are looking for outer limits to the risk spectrum. >> less than liquid markets with

a lot of retail investors and parabolic move. >> the chicago mercantile exchange, bitcoin doesn't make a dent if you look at it, august -- i think august contracts were up 18% over july. so the growth in cmes continues to be there. valuation is a concern chicago mercantile exchange. >> do you think that would be a catalyst for bitcoin >> definitely. there's so much money that says i have to wait until it's further along in its evolution to be a tradeable security. netflix reportedly looking to customize its original content with choose your own adventure. i'm melissa lee.

you're watching "fast money," first in business worldwide. meanwhile here is what else is coming up on "fast." ♪ ge we bring good things to living we bring good things to life ♪ >> not in the last 18 years, which has seen ge lose half a trillion in market cap but there are three signs that could mark a bottom we'll break it down. >> it's got to be like pretty weird. >> it was pretty weird now that elon is here to stay, traders tell you the one thing the company needs to do to get back into high gear. that's when "fast money" returns. one bottle at a time. today, we produce nearly 20 million cases a year. chubb has helped us grow for the past 30 years... they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers.

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welcome back to "fast money" out with the not so old in with the very new at ge john flannery replacing him with larry culp stocks surging off the news. who is larry culp? making his "fast money" debut is frank holland. welcome to the show, frank.

>> thanks, melissa appreciate it. legendary, that's how an analyst described larry culp to me there's a lot of work to be done to get this company back on track and in a timeframe that satisfies investors and analysts culp was the ceo of danaher called a model of consistency, double-digit revenue growth. also a consensus that culp will be more aggressive and have a sense of urgency than ceo john flannery did a word that keeps coming up, outsider, in a good way. jeffrey sonnenfeld told me he's confident in culp and new lead director thomas horton will bring a new outlook for ge.

>> the market seems to appreciate their communication skills strategic strategically, i don't think there'sing in wrong with the path they were on other than the fact that you might almost argue -- and people are going to blow up on this -- they were moving too fast! >> investors should expect urgency in action. even with that, analysts feel it will take a change in culture and possibly organization to improve this stock price. >> frank holland, back at headquarters thank you. lights had gone dim on ge for a long, long time since august 28, 2000, lost almost half a trillion dollars. yep, you heard me right. half a trillion dollars in market cap, more than the market cap of two boeings put together and plunged 80% since then this, while the overall market has almost doubled and hit rocket highs with ge falling so far from its heyday you might wonder if it's a value trade or value trap.

karen will introduce that to us in a segment we like to call the more you know. karen? >> value trade or value trap let's look at valuation. pe multiple both the market and its own historical pe. not quite as cheap on some of the other methods as pe but let's give them that cheap valuation. on the flip side, balance sheet. lot of debt in this company. that goes to the value trap side here is where it gets murkier. ge has a number of businesses in different positions and facing tradewinds let's put that on sector growth and i also like health care. we'll see a spin-off in health care sometimes in the next 18 months competitive position, i think we

need to leave these two, slowing revenue, competitive position sort of in the middle. it's been more of a headwind disaster for them. that stays there slowing revenue for those businesses is going to stay there. we have sector growth for the other two. when i put that all together, trying to take away any of the history of ge, putting it all together, i lean slightly toward the value trade. the way i would do it is a january of 2020 call, the 13 strike at a buck 38 was the last trade. i would buy that for the turnaround i know exactly what i'm going to lose i don't need to worry about how i trade around it. ultimately you could make a lot of money on it but certainly could lose everything but i know exactly how that is. that's how i come out slightly on the value trade for ge. >> questions for karen >> real quick, value trade and value trap could turn into one

another. how long do you give it? your options trade is priced out. realistically, with the stock, how long do you give culp? >> he's a great ceo, an outstanding choice i think you need to give him six months i think if the stock breaks ten before that, then sort of all bets are off six months at least. i'm surprise they had gave flan nery as little time as they could. >> the ax in the space when it comes to ge said the timing and format of the change -- >> concerns him. >> concerns him. more of a negative. >> they're rushing this one. >> right. >> after 14 months, with all due respect to mr. flannery, this wasn't going anywhere and it was time to shake up a culture that wasn't working i read that note good note. i think the bottom line is that the bad news -- karen points out the balance sheet. i think a lot of it is on the table, short base is gone, long base is empty.

>> you have to give ge credit real quick maybe they said we have a problem here and addressed it, instead of staying with something longer than they should have. you talk about culp. 37 years old one of the great companies that acquires and integrates companies better than any company out there. maybe this is a guy they should have hired in the first place 14 months ago. >> tesla taking investors on a wild ride. ceo elon musk reached an agreement with the s.e.c. choose your own adventure netflix style. where do the traders see it going? find out when "fast money" returns.

welcome back to "fast money. tesla stocks up after ceo elon musk struck a deal with the s.e.c. >> most important thing to remember if you're an investor in tesla is that elon musk with the deal with the s.e.c. remains ceo, separate from all the other agreements that were made here, including the fact that tesla has to add two new independent directors to the board of directors, that elon musk has to give up the chairmanship for at least three years and thas communications have to be monitored by some type of committee that will be formed by the tesla board of directors so, they'll be checking his communications, particularly twitter, but all communications. speaking of communications,

tesla filed an 8k regarding a leaked e-mail regarding model 3 production that's interesting we've never seen them file an ak before they may have in the past whenever he issued something on twitter but generally speaking whatever he said it went out there and we didn't always see an ak filing perhaps they've gotten a little bit of religion following the agreement with the sncht e.c in that e-mail elon musk sent out, it was regarding model 3 production to employees at tesla and said if we go all out tomorrow we'll achieve an epic victory beyond all expectations. what's that epic victory possibly profitability the street is expecting tesla to produce in the third quarter model three 52,000, roughly speaking on model s and x, if you put those together, the expectation is somewhere around 25,000 combine all of that, about 77,000, 78,000 we expect those numbers to come out over the next couple of

days melissa, if they hit those model 3 numbers and let's say it's 53,000 or 54,000, they exceed expectation, there's a good chance they'll either indicate or make it very clear that they expect profitability in the third quarter. melissa, back to you. >> they'll indicate that through the release of the deliveries or will they file another ak? >> look, i think a lot of us, our eyes went like this, whoa, okay. >> exactly. >> maybe things are changing here a little bit. it's a small thing but it's one of those things that people are looking at and saying are they going to start to rein in some of the tweets? it was a tweet there was no ak filing it was a tweet from him. i don't think we'll hear that anymore. >> thanks, phil lebeau in chicago. is it fair to say that you can't bet against elon musk? it's fascinating that the stock went right back to the level.

>> yeah. >> prior to the s.e.c. lawsuit what does that tell you? right back to the level and there's nothing more added for improved corporate governance, for monitoring of his tweets, for new chairman of the board. nothing. nothing in addition. >> but i could come back and say there's nothing in there for potential doj or class action suits or the fact that, you know, one of those tweets or one of those letters circulating internally said we're folk close to profitability bulls one thing, bears another and a company with an enormous amount of risk around it i applaud elon musk for find it in his being for going down a road he had to do. >> karen >> yeah. i think that if you're in the stock and believe elon, you have to have elon to be in the stock. i think this is more than a bit of a net positive. as tim said elon was either being disciplined in doing what he had to do or else you saw somebody else telling elon, this

is what you have to do and you're going to do it. i don't care whether you like it either of those -- >> are good scenarios. >> you think they're in a better place than they were before the announcement >> before friday. >> before the s.e.c. came in and announced their charges and had a settlement so where we were two weeks ago wherever we were. >> that was thursday or wednesday. >> thursday. >> i think that he turned down this original settlement is astounding to me i mean, that was ridiculous. the easiest case the s.e.c. that i think i've ever seen so trade down just to here i think this is a little bit better he got it together. >> then why doesn't the stock price reflect the fact that -- or that the company -- >> it's still elon musk. how much did he do just to get through? >> how much will he change >> exactly you still have holders that are lightening up on their positions and i don't think they'll buy right back in. these are large top ten holders that i don't think anything has

changed substantially to them. >> friday we did this show and the fact that he didn't take that deal this stock was headed low 200s for certain, without question and then this -- i don't know what happened over the weekend maybe somebody told him what he potentially was facing and he didn't want to be the next martha stewart doesn't really matter. to your point it's back where we started from when you zig in it, you should zag and that's the way i feel with netflix -- with tesla, excuse me. i don't know what to do here, to be quite honest with you. >> when you say zig when you should zag -- >> it goes up and it goes down. >> this doesn't change your outlook on a company that you think is -- >> it was getting priced without elon musk and now he's back. >> let's think about that for a second i was a little bit surprised by the settlement this morning and i shouldn't have been. it was so obvious. i shouldn't have been that surprised. maybe the market was saying, all right, it ended up at, what, 270, let's say, on friday.

maybe that was pricing in 220 if he's gone and 310 if he's back, not that he was gone. >> right. >> right. >> okay. for more on what wall street is saying about tesla, there's a great story up right now on tn.cnbc.com. an inside look at the action we'll sit down with the so-called godfather of e sports. much more "fast money" after this

mel? >> oh! oh, i'm sorry. i didn't see you there i was enthralled in this choose your own adventure book. if you were born before 1980, you may recall these were the stories that you could choose the way the book ended fast forward to today and netflix users may be able to do just that, choose the next storyline in a tv show or movie. they've experimented with this format in children's programming before but now are targeting adults before the end of this year. netflix shareholders have been on quite the adventure as stocks have rallied 100% since january. we thought we could play your own choose your own adventure. what's next for netflix and where will the stock be trading one year from now? guy, we're going to kick it off

with you. >> why do you do that? it takes metime to figure this out. >> choose your own netflix ending. >> 2019. >> is that a book? >> yes my favorite. >> this is my adventure, correct? >> yes. >> i don't want to hear your adventure. >> i say this time next year it's $450. since it's my adventure, not anybody else's adventure. >> yours alone. >> why wouldn't google or alphabet buy netflix 90% of their revenue is search business, they can diversify away, nice attach on to youtube thing. it's not that crazy. over a $2 billion deal not going to happen but my world, alternate reality, that makes sense. >> i think that's nuts. >> beside the deal or -- >> guy's fantasy is fantasy. no way google is going to pay

250 when youtube sundayvalued and they certainly have a gem on their hands here. >> we'll get to your adventure soon enough, buddy. >> mine is a nightmare. >> i like his price target i think it's on point. >> it's karen's turn to choose her own netflix adventure. >> i'm sorry it's really not adventure. it's not that exciting at all. 350 or so, competition has kind of creeped up on them. costs are rising. >> who is the competition, ge? >> no, disney sure hopes it's disney, right? there are a lot of others that hope amazon hopes they're the competition. i think that that's going to start to way on disney. >> that's not adventure. >> i know. >> it's like a boring staten island ferry ride. >> it's like all the presidents at disney. >> it is. >> which happens to be my favorite ride. >> it's not a ride at disney

roscoe's turn. >> i think i'm beginning to see how the desk is setting up here. amazon is the biggest competitor and they always say amazon should buy cbs to compete with netflix. >> we always say that? >> one guy. >> you sauls auls say it. >> maybe netflix boats them to the punch and buys cbs i put a $500 price target on mine. >> you lured me in i thought amazon was taking out netflix. i was going to rain on your parade and i kind of like that cbs needs a big brother. >> ironic with their show. good. >> well -- >> steve has a nice -- >> he goes higher than you. >> i would love your adventure to happen. >> see >> shared adventure. isn't that nice? >> i'm going to stop now. >> tim, choose your own adventure. >> my adventure it's a 310

stock, down 25% and hulu eats their lunch. >> hulu? of all the competitors >> hulu could be amazon, could be disney. all these guys are streaming very competitive landscape in a year bye-bye. >> that's not an adventure at all. >> i'm ditching my own adventure and want steve's adventure. >> pile on. >> always choosing his own adventu adventure, hi, mike. >> volume output 2-1 bullish activity most active were the weekly 385 calls over 7700 of which had traded 5.50. still sees room to run. >> mike cohen, san francisco for more options action, check out the full show friday 5:30 p.m. eastern time. so-called godfather of e sports, founder of the first

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did you know this past weekend she picked up a totally different hobby. e-sports let's see what she was up to. >> wow esl 1 new york tournament, premier tournaments in the world. game day today what happens in the morning? >> they'll have a team meeting t breaks down into individual practice sessions. >> so how hard does your team prepare, let's say, a month in advance for a tournament like this >> our preparations are constant i would say we practice anywhere from 10 to 12 horse a day on individual and team days level we put all of ourselves into it. >> when you're in a series like this, you try to take it one day at a time, how do you relax after this and how do you prepare for tomorrow >> we're really experienced. we've been doing this for years

some of us it's really easy, going to the next series. have you to remember that every series is a new day. it's a different team, different maps everything could be different each sbfr day. you have to be ready for that mentally. >> here to break down e-sports hype is someone who is known to many as the godfather of e-sports formerly known as the electronic sports league, biggest e-sports company in the world to organize the tournament you just saw. it's great to have you with us it's something we've been talking about so long. i'm curious. you've been in the business since, what, early 2000s >> late '90s. >> why is it taking off now? streaming, the technology, the ability to stream has finally caught up with the actual sport? >> yeah. over the last ten years, the game business has fundamentally changed to now games is a service, microtransactions, ongoing monetization so publishers are finding that

e-sports is actually a tool to do just that and driving their business combine with that democraticization, facebook, twitter, twitch and others and our sport was able to grow, bottom up into where it has come today. those have been the key drivers over the last few years, not to mention sort of five years ago when we took the leap and held our first e-sports event in an arena, tens of millions of people tuning in live over the internet suddenly became real and that was a real inflection point. >> sponsorships is a relatively new thing, which has stabilized i would think or gave the impression that the sport is here to stay, the tournaments are going to grow. do the sponsors know what they're getting into at this point or is this sort of let's throw money at this and see what happens? >> we're beyond the test and see phase of our business. intel the last 15 years have been investing into this obviously very core to what they

do companies like mercedes, at&t and even dhl stepping into this and recognizing there's a change in consumption habit with this whole generation and this is how they need to be engaging with them to be relevant. >> you're an independent production company as opposed to one that's owned by a bigger company. how do you fit into this ecosystem? >> to build this global infrastructure at e-sports all over the world from zero to hero, first time you play the game to the biggest stages in the world and games can come and go ultimately we want to create that infrastructure, great ip that can plug into speed to market, great partnerships and take advantage of this vast network that we're building. >> we hope you'll come back. fascinating stuff. global chief strategy fir ofce for esl. final trades are up next

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breaking news. eric has all the details. >> the justice department is giving approval for the takeover of united technologies buying rockwell collins under the stipulation that they sell two of their aerospace businesses. reuters is reporting it. back to you, melissa. >> thanks, eric. love chevron on valuation alone. >> karen >> ge is the way to go i know exactly what i'm going to risk january 20 leaps.

>> electronic, underperformed and will outperform the next two months. >> guy >> bitcoin being sort of the beta tell. >> "mad money" starts right now. higher "mad money" starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. saved. the bulls got saved again. ever since the market bottoms over a decade ago, goo