united states. >> eamon javers in d.c mike, on a week where we have optimism on that deal at least not improve, we're down 2% for the week. >> the market may be losing a little bit of patient right now, but the good news is we're down 2% so maybe we have no longer priced in a good scenario. >> the president said that the market would spike on a trade deal today. >> thanks for watching today and all week that does it for "closing bell." >> have a great weekend. sara, "fast money" does begin right now live from the nasdaq market site i'm scott wapner in tonight for melissa lee. tonight we have the ceo of taketwo entertainment, strauss zelnick here to talk about his big push into e-sports as they hosted their draft this week we do start with the global growth fears gripping wall street the dow down 200 points at the lows rebounded nicely at the close. china got slammed overnight, the

u.s. added only 20,000 jobs in february, worst week of the year for stocks, as we mark the ten-year anniversary of the bull market came close to dying this fall. as growth slows around the globe, the bull looks like it could be in for another bear scare. how worried should investors be? tim, i lead you with that breaking news that these trade talks are taking longer than expected who could have thought that? >> well, i think i hear some sarcasm, scott if you throw trade dysfunction into the middle of a market getting growth signals that are very difficult, headline on today's payroll number was shocking if you look below the surface, it wasn't that bad there are some irregularity the in the data flow the last couple of months. the chinese data, should we be surprised their exports fell the last seven days we've seen credit begin to deteriorate. what was the difference between the pull-back in october and

december from that earlier in the year it was that we saw cdx, credit, whatever you want to measure, look at the hyg is one way to do it bottom line, the market closed on the highs and that's very impressive in fact i think that changed sentiment a lot. >> danny, what are we to make of that breaking news >> this morning it looks like investors were taking all the growth fears and all the potential for a pushed-out deal pretty seriously crude oil was down 3.5%. the 10-year treasury yield almost touched 2.60. nikkei down 2% that seemed like risk all kind of stuff we had this slow burn up since the december lows. i think tim is 100% right. the fact that we only closed down 20 in the s&p and crude made up a lot of room, the fact the 10-year treasury yield did not close sitting on that technical level, i think it's okay that being said, i just don't know what the catalysts are right now. >> i think it was more a

question about going into the weekend without a china deal that's done. maybe there was a risk to the upside you know there's going to be a last gasp bounce once they get a china deal. >> maybe >> i think it's been a legitimate question -- >> i think you'll get it, it's how long lasting will it be, how quick will it be sold. coming from this level i don't think it's going to be that aggressive nonetheless, you're not going to sell it a weekend ahead of a potential deal. >> you had that flare-up in the low, the gap in the futures was exceedingly rare and we've been down since how much is this maybe the sell-off and recovery negate each other and we're basically where we were in october since things started getting questioning and since all the data has gotten worse. >> zero growth i know tim brings up great points about why it's not as negative as it seems to me or on this side of the desk, i don't want to speak for you, but

there's zero growth basically in germany. italy is in recession. there's no growth in japan the ecb probably overestimated wherever they think gdp is going to be. the ecb is out of bullets. japan is out of bullets. everyone is out of bullets exempt for us, and we don't have that many bull tets in case of a downturn i think that the market is having a day of reckoning. >> if you want to look at this week, this was a bearish reversal week. i think we've been leading to this for a long time carter says we're back to where we were. one of the things i've said and i said this in the fall, i think q1 2019 could be q1 2016-like. i think we got our market dislocation a little before this so tend to agree with what carter said, but i just don't see the data falling apart that quickly. again, let's talk about u.s.

data although this is a terrible headline print -- >> it's probably an anomaly. the market obviously is placing its bets. >> the consumer is not dead. >> yeah, but tim, here's the thing. the data is not good and it's not getting better in china and it's not good and it's not getting better in europe the thing that i would be worried about after this strong reflex is we get into mid-april and start having q1 earnings and forward guidance and see really light guidance that's the sort of thing that i think would really shake market participants. >> haven't we reset guidance a bit? it seems like no one is expecting anything anymore >> they're not worried because the ricochet drew in a lot of money and emboldened people to think it never happened, the december thing wasn't real, and we know it was real. >> the conversations that i have with active money managers and piers on the street is that people are not doing well in this market. >> i understand -- >> i don't think people are complacent is my point. >> i understand the analogy to

2015-16 but we were in a global easing environment back in 2015-16, especially in the eurozone where are they going to be easing from? where are they going to ease from they don't have any money. >> actually, steve, we started tightening the fed's first rate hike was in december. >> but that's off the table. >> but the fed was going to push the world into a global recession. this is the exact same conditions. >> but europe, this is the main concern where everyone, even people that say they're bearish say they're more bullish on america versus europe, but europe was on a string of easing for four years and it got them no place >> the key data point in the paur market is there's one sector that's making all-time highs well, two. s&p midcap utilities and s&p 500. >> i was going to bring up the fact that you have the transports and the russell

now, the russell had a nice comeback today along with everything else, but the trend is not your friend if you're looking at dow theory through transports and small caps leads you down, leads you up they're not performing well. >> small caps have led us here and the semis were the first to roll maybe it's like it was back in june, let's wait and see folks, is there any surprise, markets have done nothing for 15 months i mean this isn't really -- with a lot of volatility in between so i appreciate the fact we're all gnashing our teeth right now. >> if you say okay, we cancelled ourselves out, december down, now we're up now are we at the inflection point? you need something dramatic to happen -- >> eps going negative, margins have peaked and gdp is falling is that a spot you want to put new money to work? >> the dixie or dollar index almost broke out to a 52-week high if it were to do that at a time

commodity prices are pretty firm, so that combination to me with rates going down for the wrong reasons, not a great combination for stocks right now. >> just as we get set this weekend to mark the 10-year anniversary of the bull market, this conversation is wondering when it's going to end the markets are battling some key technical levels don't worry, the chart master will tell us what it all means why don't you go to the plasma and show us. >> on the way to the plasma, let's note that the nasdaq composite dropped 24%, the s&p dropped more than 20%. we've had a bear market. now the question is whether we're recovering and going to make new highs or this impetuous bounce is just that, a bounce. no lines or drawings by me let's put in a few and see what we can figure out. here's a chart of the s&p. what we know is, again, while the 2800 level is cited, that's not the level that has mattered

for the market we've had three well-defined intermediate tops. 2817, 2815, 2815 the market hit that level exactly last week after news on the trade front and has pivoted straight down. we know the transports just had a record sequence of losses. and so is it just a bounce a couple of ways to draw the lines. on the way up we have had four distinct pullbacks there was a 3%, this was 2.3, this is 2.1 and this is 3.1. the bull would say that's just a normal give-back and we're on our way to doing things like that my hunch is otherwise. i think ultimately we still have a lot of risk to the downside and at a minimum we're likely to find a reference point as we found before here, just as we had reference points at the high at 2800. and that a normal check back is not going to be 3% after

advancing 20, but it's more like 7, 8, 9, which would get us down to the bottom of this channel. and i think that ultimately is what has to be considered before one could think about putting money to work because we've dipped we haven't dipped at all we've gone down 3% and that is nothing. >> so, carter, i thought that we were going to recheck those lows that we saw, the 2350 range. i agree with you, i think it's more like 5% or 7% down from here is there any shot in your mind, i know there's always a shot, so how credible is another shot down to 2350 >> i think it's the best bet you can make this is a minimum. the real question is do we -- now, it's important, people use the word "retest." it would be a test if you have a low and you go back there you're testing it if you go back a second time, you're retesting it. do we test the lows? i think we do. >> the best bet we can make is that we're going back to retest the lows that's what i just heard you

say? >> sure. >> that's a little unsettling on this friday evening. >> remember, the market didn't peak in september, october that was a fake new high industrials peaked in january of 2018. >> carter -- >> materials peaked in '18, energy peaked. it was only the s&p, because faang had that head fake, global equities, all of them all peaked over a year ago and they have never gotten better. >> carter, we talk fundamentals so let's just talk charts because that's what you're there to do. >> i can do both if you'd like. >> we've seen this v before. >> does he look like a one-trick pony to you? >> carter, if i was going to draft a team right now, he would be the best person available if i misspoke haven't we seen this v before, carter we've seen vs of 5%, of 7%

these haven't been ws, they have been vs. i had a conversation with a client about that today. i think that's a fair point. >> well, you're talking about this kind of thing how many real vs are there in terms of drawdowns in the s&p of 15%, 20%. >> we know this was historic i'm not saying this is like anything we've seen. but i'm saying in the last ten years, we've seen these moments where the market has been right here on a proportionate basis lower, but clearly a moment where we thought this was it. >> yeah. again, i would say look at the message of utilities,the fact rates are doing what they're doing, financials are not working and that worse than anything, it was too steep if we spent some time healing after the christmas low and working through it, the fact that it happened so quickly is not a positive, it's a negative. it speaks to frankly a panic there was a panic in december and an equal and opposite panic now as money aggressively tries to catch up. and yet that money that drove us

higher in january, february can become an accelerant on the way back down as it has to reverse. >> you're disputing the fact that you think this is simply a bear market bounce you think this is a jittery verse -- legitimate reversal? >> i think we put in an extreme downtrend and an extreme uptrend and cancelled them out that's exactly what the fed did. i realize earnings aren't sexy and the global economy is not in great shape. we've been in a place where equities have performed in that environment. coming up, energy is down more than 2% one of the traders thinks it's about to get a lot worse he'll tell us how he's playing the crude crush coming up. plus gaming giant take two is hosting its gaming league this week. the ceo will be here to explain why he is going all in on the e-sports fever. check out shares of netflix under pressure after one an lit

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money. check out shaeres of netflix getting hit today down nearly 3% after a downgrade from buy to neutral at buckingham research they did keep their price target intact but they're looking at increased competition, which i think everybody knows that story. susceptible to just a general market downturn. >> right so right now they're basically raising prices, losing content, spending more money. that's the negative story, that's the headwind. i do believe if the overall mark, which i think is going to sell off, netflix has to in theory sell off. >> so you agree with that critical point that they make. >> i agree with that premise but longer term i think people will have a bundle themselves of stock that they buy. they'll buy the disney, they'll buy this one and buy two or three other ones they'll probably spent 40 or some odd dollars collectively with all the streamings that they do buy.

i think they'll have competition. there's room for them. but yes, i get the bear story on netflix. >> the truth is they'll spend a lot more than $40. your bills on this will look like your cable bill circa 2009 and then you'll see all this stuff rebundled. here's the big issue with netflix right now. you can say, oh, that price increase went really well and don't worry. they lost $3 billion in free cash flow last year and guided just a couple months ago to lose another $3 billion at some point if we are getting to the end of a cycle especially with all this competition, this stock will not be able to levitate. >> the stock is basically flat year over year nothing, nothing, with a lot of volatility. coming up, the ceo of taketwo says e-sports are about to get bigger and bigger and better than ever we'll tell you why he says we're nowhere close to reaching peak

gaming we're live from times square in new york city tonight. there is much more "fast money" right after this

we're pack on "fast money. game on is a competitive video game league. it had its second draft at the barclay center in brooklyn 74 men, 1 woman joined teams to live a life some now dream of, playing video games professionally as e-sports athletes with us now the man, the myth and the gaming legend himself. taketwo ceo strauss zelnick. that's a big buildup

barclay center is huge it's unbelievable the growth in these sports. >> it's great. it's our second season the first season ended with a great result and everyone is looking forward to the second tip-off. >> what's the average age of those who compete? >> the competitors are on the young side so i'd say probably early to mid-20s in terms of people who watch, all across the map more than 250 million people worldwide consider e-sports an important form of entertainment. about 125 million of them are avid e-sports watchers. >> and sports are still a big deal with kids playing games, as fortnite has obviously skyrocketed. my own son is still playing the hockey games, the basketball games and madden. >> basketball, good. good to hear it. >> 2k obviously. but seriously, those are still popular even in the growth of these other titles. >> we're having a record year with nba 2k. one of the things we love is when there are more hits in the market, there are more people

engaged, the entire market grows. so we're going to tell more units this year than ever before we'll have higher recurrent consumer spending than ever before it's a new record. it's a time some of our competitors are also doing well. >> talk about fortnite and apex and competition and what you think about that i'm sure as you said, you see the trends for you are great >> we think that fortnite is a great thing for the industry it's probably brought in a somewhat younger consumer. i'm often asked is that something that's hurt us to the contrary, no, we've seen the market continue to grow. at the same time fortnite has been an extraordinary hit for epic, we had another great year for grand theft auto last year, we had a record quarter for rock star games we sold more than 23 million units of red dead resemdemption >> you just mentioned units and that's what your typical

investors, they kind of understand that for a game maker. how are you monetizing this new e-sports. >> the biggest revenue stream is what we call recurrent consumer spending, which is every form of net bookings that isn't a full game sale. our goal is every time we put out a title, we have an opportunity to continue to engage with that title over a period of time if consumers do engage, they can monetize that engagement that can be in-game spending, downloadable add-on content or the like that's our biggest opportunity and that's a quarter of our business in the last quarter in addition, you mentioned e-sports and it's timely because we just had the draft. that looks to be breaking the billion dollar mark in terms of the industry as a whole. remember, most of that still goes to league of legends, which is not one of our titles we have a couple of competitors who are doing well overwatch is doing well. nba 2k is the one to watch. >> how do you think about add-on

content with your aaa titles in light of fortnite? is it the microtransactions how you're thinking about adding content in microtransactions fourr you, is that the highest opportunity >> microtransactions is spending what we focus on is making the highest quality entertainment and engaging our customer. if we get that right, mone monetization follows. >> taketwo, do you want to trade it timmy >> i'm long the stock. it's been a tough run. we're at a place in valuation, it's compelling relative to itself for sure, but trading just south of 30 times with top line growth that frankly seems to be somewhat stagnant. i'm a big believer in this industry i think the valuations will make some of these names start to look pretty attractive to media

companies. as strauss pointed out, this is an e-sports watching story globally. >> and they both got hit. >> all of them all of them got hit. to timmy's point, this one got hit the hardest. if you're looking for a rebound effect or some type of reversion, i would think that this is the name that you're going to get in. >> here's the thing. so revenues are stagnant, the stock almost got cut in half in the last six, seven months since the all-time highs when you think about trading at 3.5 times sales, this looks like a valuable and underappreciated asset because it is scarce there is only one nba 2k league. if you think about all the opportunities that will emerge from this e-sports phenomenon -- >> i'm a grand theft auto guy. >> i have notice that he had some kids who got all in on fortnite have gravitated back towards the sports games not only my own son but him and his friends where it was only fortnite and now it's back to

the sports games maybe they're transtorre. >> i think are concerned about that. >> time for final trades tim, you're up put. >> unh, get long. >> utilities, xlu. >> mr. grasso. >> ge. >> xle, sellg init. options action starts right after this break don't go anywhere.

hey there, i'm scott wapner. live from the nasdaq in new york city, big "options action" for you on deck. here is what is coming up. >> as stocks see the worst week of the year, utilities just hit an all-time high and there's something in the charts that suggest there's more room for the group to shine carter worth will break it down and mike khouw will give the trade. plus, talk about socially awkward. >> you can't sleep with us. >> because there's one