Im kelly evans at the new york stock exchange. Im bill griffith. Doesnt look like third times going to be a charm. The financials, which had done so well, bank of america yesterday with a stellar report that pushed it higher. Today, Goldman Sachs and citi disappointed with their earnings and the financials are lagging this market and leading it lower. President dow was down 105 points at the low. Now were doing 68. Thats right. We have goldman down about 2 at last check. Citigroup off about 4 . Some of the regional financials its a little bit more mixed. We have pnc up despite analysts saying this maybe isnt necessarily a performance they can repeat. While some of the others are lower, even though commercial real estate, commercial and industrial loans, there is growth there. And then theres retail. Best buy. Worst buy. Horrible day for best buy shareholders, which well get to coming up in a little while here. Yeah, thats right. The Market Action wont stop. When the closing bell rings at 4 00 p. M. Today, we have two Major Companies with earnings due out. Theyre intel and American Express. Both huge bell weather dow components. Well get you the information first. Well get full analysis as those numbers come in. Also, when the president of the United States notices that you may be losing your cool, you may really be losing your cool. We have a special report on something that president obama said about facebook that piles on to the anecdotal evidence that i can sort of corroborate that young people are abandoning the social media website. But should investors bail on the stock . Thats the question. Well take a closer look coming up this half hour. In the markets right now, the dow is off about 70 points that the hour. A little less than that. The s p 500 is off sitting at 1845. The nasdaq is slightly higher, 4217 as we head into the final hour of trade. Lets do that. Lets talk about in our closing bell exchange. Gina sanchez with us today. Jim loul from adviser investments. Greg epp from the economist. And our own rick santelli. Gina, one day the financials, we love them, the next day we dont at all. Whats going on here . Look, the markets have been struggling this january trying to create the january effect. But its just not taking. And part of that is because we went into this january with pes having expanded for the first time in five years. Were on the maybe slightly expensive side. Were not that expensive, but we arent cheap anymore. Whats left . We have to see some earnings. We have so see some sales growth. We havent seen that. Jim lowell, at the same time, lets talk about those financials. How important is it to the market here that theres a little bit of a step back with regard to how the market is take numbers from goldman, from citigroup today . Well, i think the reality is financials play a large role in almost every investors portfolio. We have seen some bottomline cost cutting shore up banking earnings recently. But todays numbers, i think, were really driven by a slow down in bond trading. We saw earlier bank of america maybe being hit a little bit by a slowdown and refinancing. In 2014, i fully expect bond trading slow down and Mortgage Applications to offset refinancing. Far too early for me to get overly concerned. We welcome Ryan Dieterich from shaffers investment research. What do you make of todays action and this selloff . Weve been hearing some options traders were not expecting a meaningful move. Theyve been still selling the volatile any this market. Not expecting a big move lower. What do you make of whats going on here . Bill, when you get to today, the kind of mic itsen coura. Yes, weve gone sideways. When you look at that big rally, to me its constructive. Were going sideways with the right leadership. You mentioned volatility. You look at the vix, currently over 7 million calls open, which is near an alltime high. In other words, theres a lot of people out there that are hedging against higher volatility. The big question is, is that smart money . You look back recently, it hasnt been for the last 18 months or so. The last time there were this many calls open was august of last year before that good fourmonth rally. Could they be right this time . They could be. History says usually were not. Maybe the mass is usually wrong. Volatility might stay low. I still think we can have an upward move. Greg, any waves from ben bernanke today . Not really. Hes kind of backward looking. If you want to grope for something that had any relevance to the current outlook, he did sort of bat down any concern that the Quantitative Easing Program they had would be inflationary. Just look to todays inflation number toll see its not a problem. That made me think. Of course, Inflation Numbers came in very low. Core inflation still at 1. 7 . We had another fed official this morning talking about may we need to eventually raise the inflation target because this one is too low. I think that sort of speaks to the possibility that the low level of inflation could give us a friendly fed, at least on the Interest Rate side, for a while longer. Rick, im sure you you want to talk about that. First, we have a Throwback Thursday present for you. You sent me a picture last week. I dont know, was this the first time you were ever on with us on cnbc . This is from 1995. Look at those glasses. Look at that jacket. Rick, do you still have that jacket . The fall of 1994 when i did my first guest spot. I really started to turn up a lot more as a guest in 95. Yeah, i still have that jacket along with about six others. Kind of in the closet museum. You know how that goes. That was the dawn of the dotcom boom. A lot of things going on at that time, rick. Parallels to today, perhaps . How different we are now, huh . Well, ill tell you one thing that isnt the same. The definition of inflation. You know, we were talking about that at 8 30 this morning on squawk box. I got a boat load of emails from some traders i probably havent seen since that picture in 95. They basically said, if youre going to talk inflation, you need to clarify precisely what youre going to talk about. Really, the term being used now is most likely going to correlate with velocity of money. So im not really buying into that. But ill give you another one. Do you believe that the southern economies of europe are as in good a shape as the u. S. Economy . I dont think so. But look at year to dates of yields in the u. S. Then look at portugal, spain, italy. These yields are moving down massively. Now, forget the reason why because i think its more hypothecary from central banking. But the reality is, its changing my outlook completely. I think yields in the u. S. And in the u. K. Are going to be moving lower. Because if youre going to pay 80 over for a tenyear spanish yield versus u. S. , then theres a problem. The price of the u. S. Treasuries has to go a boat load higher, bringing the yields a boat load lower to make that spread look. Theres a new dynamic. Its relative strength and relative valuations. This is going to hold surprises for treasury prices. Rick, thats absolutely the case if you look at japan, for example, where they can get such a chunkier yield over here. That has interesting dynamics for how much of their debt is internally financed. Heres what i wonder about ricks point. How much of this is european banks buying up the debt thats being issued by european sovereigns . In other words, it doesnt necessarily bode for u. S. Treasuries. I totally agree. Ponzi game anybody . Yes, i totally agree with you. I think that a lot of this has to do with bank buying and doesnt necessarily have to do with fundamentals. It is a supply and demand story in the market. I dont think the treasuries go down. I think those yields eventually will have to go up. Thats the right move. Well, there has to be a relative value relationship there, though. Traders arent going to look at actual yields. Theyre looking at the spreads. Its also inflation there too, right . Yeah, youre absolutely right. Right, greg . Yeah, exactly. The United States isnt the only country with a low inflation rate. In europe, the inflation rate is below 1 . Its the lowest since the introduction of the euro. One of the reason bond yields are coming down in europe is precisely for that reason. Its not a reason to get bullish on europe. By the way, the imf is out talking about Global Deflation again. But its interesting because, in fact, the ppi yesterday, the cpi today were both a little bit to the upside for the first time in a couple months. What was interesting in the cpi report, a lot of that is rents. Greg, i wonder if people need to just understand the extent to which rising rents indicate rising inflation or if theyll continue to sap the purchasing power of u. S. Households. No, actually, rising rents are priced off housing prices is probably a good thing. They talk about housing markets getting better. Remember, the fed is keeping an eye on a different inflation rate, the pce inflation rate. Rent is much less important. That number is even lower. Its around 1 . Its going to stay around 1 on a core basis. I think the imf, the warning on deflation is very, very relevant. It doesnt really give the fed much room to maneuver in terms of accelerating the date. Jim lowell, before we go, are you more inclined to buy a dip or sell strength right now . Absolutely more inclined to buy a dip. Not just here but especially inside europe and maybe inside japan. Still japan . Still japan. Jim, does japan have to work for u. S. Equities to rally here . No, it doesnt. But i think it does have a correlation to the way the u. S. Economy in particular, not necessarily the markets, behave. I think that goes forward. I think its too early to call abenomics a success or failure. In t meantime, theres money to be made. Thank you, folks. Rick, keep the pictures coming. Exactly. More yet to come. Oh, brother. Thats what i was afraid. Look at that. Back then, the tea party was just a twinkle in ricks eye. And those glasses, bill. Ahead of the times. Somebody just said to me they thought those glasses had come back in style already. Exactly. Twice, i think. So were heading to the close. 50 minutes left on the trading session. The dow was down about 105 at the low of the session. Led lower by those financials we mentioned. The dow down 76 right now. And easy come, easy go. Stocks giving back a big chunk of yesterdays gains. When will 2014 find its true direction . Well ask the wise men at wall street coming up. Really looking forward to that. Also, google has been called big brother for invading peoples privacy, but now the founders are going to new extremes to ensure their own privacy, getting their own private terminal at san joses airport. Thats raising a lot of eyebrows. We got josh lipton on that story coming up next. And fallout over at facebook. One analyst estimating the social media website has lost 11 million young users since 2011. Will it end up hurting the shares . Well hear from both sides in that debate. We want to know how you think facebook can get its cool back. Your best tweets on the subject coming up. Youre watching cnbc first in business worldwide. [ male announcer ] the new new york is open. Open to innovation. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. 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Superior service, best selection, lowest price, guaranteed your ticket to a better nights sleep welcome back. So google wants to know pretty much everything about what you do and when you do it. But the founders want to keep very private themselves, especially when it comes to their own travel. Josh lipton, whats going on here . Yeah, its not uncommon for tech executives if Silicon Valley to fly on private jets, of course. But googles founders, they are taking it to a whole new level. Theyve won access to some prime real estate at the San Jose International airport. Cnbc has learned from sources working on the project that Ground Breaking will start in february for a new jet terminal serving googles founders. The 82 million privately funded project is expected to be completed by the end of 2015. Signature flight support, a company that manages corporate aircraft, is going to build the facility in partnership with blue city holdings. Thats a corporation representing the personal aircraft of googles principals. The jet center will have a 270,000 square foot hangar. Industry experts tell us it could potentially accommodate 60 aircraft, making it one of the biggest private air terminals in the world. The new private terminal means more jobs for san jose and 2. 6 million in annual rent to the airport. Bill, back to you. All right, josh. Thanks. And from two of Silicon Valleys top ceos to the offspring of another Top Technology chief, Oscar Nominations out there morning. You know the daughter of oracle ceo finds herself in the thick of the awards race this year. Julia has details from los angeles. Thats absolutely right, bill. 27yearold producer Megan Ellison swept the oscar no, maam nations. Shes the first woman and only the fourth person ever to snag two best picture nominations in the same year. Her company produced american hustl hustle. The film is also scoring at the box office, grossing 104 million in the u. S. So far, and its sure to see an oscar bump. Now, ellison also produced her, which drew five nominations for oscars, includings best picture. Warner brothers opened the movie nationwide this past friday. Its grossed about 10. 5 million so far. Ellison is no stranger to success. She produced zero dark thirty, which drew five Oscar Nominations last year, including best picture. She also produced true grit, which drew ten Oscar Nominations in 2011 and was a surprise hit, grossing over 250 million worldwide. Now, ellison never does interviews but is known around hollywood for taking risks on film makers, investing more in artier films than studios would necessarily want to spend, and securing bigname studio distribution. This year especially, her big bets are pay manager off. Bill and kelly . Isnt that amazing . It is. Runs in the family. That kind of big success. Thanks, julia. Heading toward the close, about 40 minutes left in the trading session here. All the major averages lower today. The dow down 75 points right now. The s p pulling back from those record highs yesterday. Speaking of the oscars, we should mention sea world rallied when back fish was not nominated. Also coming up, new evidence that young users are fleeing facebook. So should you flee the stock on that news . Weve got a stock brawl on facebook coming up next. And the head of a major bank entertaining his staff. Thats him dressed in drag. Well tell you who it is, where he did it, why he did it if we can find that out. Most importantly, well show you more of this incredible video later on closing bell close. Here at fidelity, we give you the most Free Research reports, customizable charts, powerful screening tools, and guaranteed onesecond trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. 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Welcome back. Is facebook really losing its touch with young people . Well, it depends on who you ask. Facebook might not want to ask president obama right now. Right, seema . Thats right. It appears those concerns may have reached the oval office. A reporter at the atlantic recently overheard the president talking about social media with the president saying, quote, it seems like they dont use facebook anymore. Of course, who he was referring to is up for question. That said, today there is a new study thats renewing concerns over whether facebook is losing teen users in the u. S. Researchers looked at facebooks social ads platform and came to the conclusion that facebook has fewer high school aged users. Thats teens aged 13 to 17, than it did in 2011. Over the same period of time, the number of facebook users 55 and older increased over 80 . Cnbc reached out to facebook, which said, as policy, they do not comment on thirdparty studies, though they did direct to previous comments by coo sheryl sandberg, saying such concerns have been b