They are the Cinderella Team this year. You got to bring me one of those tshirts. Please, im begging you. Ill try. Its hard to get your hands on one. Im sure they are. Im Bill Griffith still here at the new york stock exchange. This stock market is also looking for its own cinderella story today, fighting to get back into the green territory. The dow has been on either side today of unchanged. Now down 21 points. Kelly, were going to explore whether this market actually has seen a stealth correction. Were also so focused on the dow and the s p, but is there a whole section of the market thats already seen its own correction . Well look at that coming up here. Now the students here at dayton fired up about basketball. But many are also pretty excited about legg masons bill miller speaking here moments ago. A legendary investor joining us exclusively in a few moments. Well get his take on the momentum stocks getting hit. Plus, his take on citigroup and the financials and more. Always look forward to bill millers comments. Also, microsofts new ceo with his big coming out party. Finally Microsoft Office for the ipad is being unveiled. And many are asking what took so long . Well look at that and its possible impact on the stock, which is down with the rest of the market today at 39. 44. The street so far rather unimpressed. That stock not moving much and habit lately. But this might no be the only big move the companys new boss has in store. Well have much more on that just ahead. First, a look at how the markets are trading right now as i said, the dow has been on either side of unchanged so far today. And we can show you those charts any moment now. The dow down 28 points right now. It did see a bit of a stutter step opening this morning. Were trading now at 16,238. Nasdaq still the big one to suffer, down 30 points right now. About threequarters of a percent at 4142 below what had been perceived to be recent support levels, which well talk about. The s p at this hour is also trading lower, down about six points at 1845. Lets talk about it in our closing bell exchange. Heather hughes with us. So it jim lowell. John doyle. Warren myers is with me here at the big board. Of course, Rick Santelli is in chicago. Warren myers, what about this choppy Market Action weve seen recently . Somebody said yesterday that to them it signifies an uncertain market, a confused market is also how somebody put it. What do you think . Thats usually an indication of a choppy market. You get two very distinct opinions. Because of that, you get a lot of up and down. Weve been seeing quite a bit of that. Not surprising given the runup weve had in this marketplace and where we are economically with the u. S. Economic data being marginally improved but some of the european issues creating uncertainty. Its not uncommon to have this choppy market. Very nonunexpected is the way to put it. Rick santelli, im out here in dayton getting a firsthand look at some of the excess capacity in this country. Still, i cant understand why the 30year bond went below 3. 5 today. Maybe you can help illustrate whats going on. What does that tell us . I think it tells me that, you know, at some point were going to have to find an extra 250 to 300 basis points of tightening in 2015 at some point to pack into the yield curve. So everybodys done an about face. Theyre selling the short maturities, buying the long maturities. I think that curve implication may be with us for a while. You have to go back to july of last year to find us up 350 close. Yet, if you look at where the fiveyear was before the fed statement at in the 150s, then moving to 170, where it still sits today. Really, the dynamic we should Pay Attention to is threes, fives, and sevens. Theyre really hunkered down, which makes me think that its not only the curve implications of buying the longer end against the shorter end, but its also an ongoing anxiety regarding the equity markets and any of that nervousness is going to result in purchases, in my opinion, on the long end as well. Speaking of anxiety in the equity markets, heather hughes, our Research Team did a great job in identifying a group of stocks. Were all watching for some sort of correction, a 10 pullback in either the dow or s p or Something Like that. But what our Research Team showed is its the momentum stocks. Such high flyers in the last year or so going through their own correction right now. The facebooks, the netflix, the teslas. Theyre getting pummelled. When you look at the biotech index, thats getting crushed. I think investors are playing defense right now. Thats what im hearing on the street. Theyre moving back to utilities. Theyre moving back to the safer sectors that tend to do well like Consumer Staples even. Youre seeing the high flyers, even the biotech index get crushed. 122 companies of the nasdaq biotech index bringing zero revenue. Whether investors have overpaid for stocks that comprise that sector or not, time will tell. But for the time being, investors are playing defense right now. Is this the correction weve been waiting for, or do you think this could bode ill for the Broader Market down the road, heather . No, i think theres just some consolidation right now. There is a longterm deckular bull market still in place. The pullback that started, i wouldnt call it a correction as defined as 10 or maore. The exact same level we pulled back in the s p back in may when the fed announced raw mores or hinted at rumors of tapering at that point. So were far from that 10 correction. I dont think were going to get there. You know, john doyle, can we talk about the consumer for a second . Its the worstperforming sector this quarter. Its about to turn in its worst performance for a quarter in 2 1 2 years. We learned this morning that the composition of the gdp report for the Fourth Quarter showed a big jump in Health Care Spending and hospitals in particular. If you look at the consumer names struggling so far this year, its best buy, staples, gamestop, matel, gm, amazon, coach. Is there a shift underway here . What is going on with the u. S. Consumer . How much is getting squeezed out potentially by health care or how do you play this . Well, i think youre right about the numbers that came out this morning. Personal consumption was up 3. 3 , besting expectations from an overall boring reading with gdp. I think what that shows is possible momentum at the end of last year moving into this harsh winter that weve seen. So i think the consumer is going to be extremely important in q2 and q3 as we move out of this harsh winter and stop blaming the weather. Hopefully with that, that will boost stocks moving throughout the rest of the year. We still see on the s p about 7 higher next year. Jim lowell, can i get you to weigh in on this issue as well . What do you make of health care versus other forms of Consumer Spending . Do you see something significant happening here . Does this help explain it all . Because it comes at a time when biotech has been breaking down. There seem to be mixed messages on whats happening with, both with health care specifically and the consumer more broadly. Well, tomorrow we get income spending savings and the sentiment read on the consumer. That will give us something. I dont think the consumer is anywhere near down and out. I think weather related impingements, probably. Some of the stocks you named have a seasonal pattern of selling off. I wouldnt worry overly much about that. From an investor side, weve seen very rational behavior. Investors are selling their momentum stocks, places where they had the biggest gains but companies that are trading only on Growth Potential, not real growth. And theyre holding on to, if not building into, some of the more defensive sectors in the marketplace, maybe like utilities, but also the battle should balance our blue chips. Looks like a great safe haven to ride out what could be an uneven market. I do agree, jim. I hope that there is that pentup demand as the weather warms up in spring and we didnt spend all our money on snow boots and snowplows. I think that will hold true. I know we had snow here in d. C. Two, three days ago. Aside from the fact we are probably geographically out of it, i think the consumer will come back as the weather warms soon. So warren myers, weve identified where the money is coming out of. Where is money going . I think its been mentioned here already. More defensive type names and the largecap stocks. The nasdaq has been underperforming both the s p and dow recently. I think one of the reasons is money is coming out of those Growth Stocks out of the nasdaq and some is going back into the dow in particular and those large multinationals. I think thats a safer place to be. I think theres a better Comfort Level for most investors to be in those big names right now. Its fascinating. The money as well seems to be going into the bond market, rick. It just continues to surprise. Yeah, you know, i think it does but lets not lose sight of the fact we gave them fancy names like momo stocks, momentum stocks, but theyre walter mitty stocks. Its different this time, gives me a qeasy feeling about names like tesla and solar city. Its not that they may not make a good car or solar panel, but if it wasnt for the access to easy money, tax benefits, this misallocation of capital is going to come back to haunt the stock market. All right. We have to go at this point, gang. Thank you all for joining us. Well see you later. Heading toward the close, about 50 minutes left in the trading session with the dow down 29 points. Kelly, at this point, the s p is now negative for the quarter. So if things dont pick up in the next couple of days before the end of the quarter on tuesday, were going to see a minus sign in front of the s p for the first three months of this year. Oh, sure. And bill, if we know that 1878 is the High Water Mark for the closing high for that index, 1848 is the level below which it turns negative. Well keep a sharp eye on that into the close. Up next, we have bill miller on the markets. Apple was one of his funds top holdings last year. Wait until you hear whats at the top of his list now and what else he might be eyeing. Also ahead, has the ipo fever broken . King digital made more of a thud than a bang on its market debut yesterday, as you know. Our wall street pros are trying to gauge if this is the start of something bad for the ipo market or if candy crush was just a single bad idea. Well look at that coming up. Plus, on the heels of citigroups second stress test failure in three years, we want to know how much you think of a regroup is needed at the banking giant. Tweet us cnbcclosingbell. Your tweets on air later. Dont go anywhere. More closing bell after this. Welcome back. Minus signs across the board. Minor minus sign, if you will, for the major averages. Mixed Economic Data today. The unemployment claims number this morning was less than expected. So below expectations. Thats a good thing. But the pending home sales number was also less than expected. And thats not a good thing going into this spring home selling season. Right now the dow down 17 points, trying to get back to unchanged here, kelly. All right, bill. Thanks very much. Now bill miller burning up cnbc. Com at the moment with the piece he wrote about making money in a changing stock market. Something he also just spoke about here at the rise forum to a packed house. Joining us now in an exclusive interview is mr. Bill miller with legg mason. I want to pick on something Bill Griffith mentioned, which is pending home sales. The index has been down eight months in a row now. You liked the builders here. Theyve rallied tremendously since we last spoke. Do you still like them . The builders i think is one of the easiest investments. People are too obsessed on whether it be Building Permits or Housing Starts or the kay shiller index. Were about 500,000 a year deficit for what we need to get us back to e quill ib ree yum. Probably a fiveyear cycle on housing left. Most of the big builders, those trade now at market multiples or below on this years earnings with probably 25 Earnings Growth the next several years. I think housing is essential to the economy. I think for an investor as opposed to a trader, its a great investment. What about the financials here . On a day when citigroup is down if the range of 5 , 6 . A huge move for a name as people were so much on this expectation of capital return and not getting it today. At not getting the dividend they were looking for. Financials are cheap historically. The Dividend Growth of the big banks is going to be among the best in the marcht the next several years. The citibank decline today is the perfect opportunity for nrss and traders. I think its tu to highfrequency trading where the algorithms are working off headlines. Theyre knocking the stock down. Citibanks value didnt change today from yesterday 5 or 6 . More importantly, citi is going to have a tangible book by the end of this year. Theyll trade, in my opinion, at probably 10 or 11 times. So from 48 or 49 today to 70 in 24 months. Wow. Youre saying the news doesnt matter. It doesnt matter at all. It matters only in the sense that citi wants to return some capital to shareholders. Theyre going to be better than they are. The capital plan had to do with planning losses in overseas markets. They can address that. I think thats just another opportunity. Lets talk about some of the other names that have been hit hard lately. For example, netflix. Its off its peak by Something Like 20 . Obviously the stock has moved up and down, all over the place. Where do you think it goes from here . Well, i think long term it goes higher. In the short term, its caught up with these momentum stocks that people like to rent as opposed to own. Netflix is 40 million subscribers. Theyre number one in internet television. The stock has had a huge move in the past year. Its going to be more volatile. Still, its mark cap today is about what whatsapp was sold for. And whatsapp has no revenue. With every dollar they raise the price and trade at about half their monthly cost is about half of what hbo is. So every dollar would be about 40 million a month or close to 500 million a year of Free Cash Flow. So theres a huge amount of opportunity with netflix with 6 billion connected phones in the world and around 700 million highspeed internet lines and theyre number one in internet television. We sold a chunk of our netflix. Where do you see the most opportunity today . Theres a lot of opportunity across a wide variety of companies in the Free Cash Flow. My favorite is one that weve talked about before, apple. Which is just completely crazy in the sense that apple has 159 billion in cash on the Balance Sheet right now. If you assume they had no cash on the Balance Sheet and took this years Free Cash Flow, it has a 10 Free Cash Flow yield. If the company were never to grow again if apple were a junk bond, junk yields are 6 . If apple were a junk bond, it would be 40 higher than it is today. But its the largest, most Profitable Company in the history of the world. Its a great innovator. Tim cook talks about the new products they have coming. The Share Buyback is being done very rationally, as far as i can tell. They have a great dividend. I think theyll raise the dividend dramatically in the next few months. For all the shortterm traders in the world, its actually in gear for a technical standpoint. Do you think then its going to trade as much as 40 higher from where it is today . Or tomorrow. No, i think that actually apple we sold a lot of our apple in the 650 to 700 range a couple years ago. I think its probably worth about 700 to 750 today. But again, that worth should be growing over time. Its growing on pershare basis. And given all that, why do you still think bitcoin is so interesting, potentially valuable . I know you own some bitcoin. Its a huge source of controversy on wall street as to whether this thing has any value and is legitimate. One of my favorite tweets from the rise forum thats going on behind us came from one of the students who said, Biggest Surprise to me of the day so far is bill miller owns bitcoin. It seems to go against these fundamentals of being kind of a value guy or seeing the world in that way. So why bitcoin . Well, bitcoin is a really interesting technological experiment. An intellectual experiment. I think with bitcoin, what you have now is and i started buying it after the mt. Gox thing. When that didnt destroy the underlying psychology of it, it looked to me like it had a decent base of around 500 per coin. But it could be a zero. Its like a venture investment. Many of them dont worry out. The thing about bitcoin is the addressable market. Its as big as its ever been in the entire world. Gold alone has an 8 trillion market value. Bitcoin has a 7 billion market value. If its only 10 successful as gold, its 100 times your money. But there are some who say it should be zero. Look at what china is doing today even. Its trying to tamp down further on anything that has to do with bitcoin as money. Anything that undermines the ability of a sovereign to control its finances is something thats going to be controversial. Fair point. No, but from chinas point of view as well, they have a different interest, which is capital flight. I can understand why they might be especially sensitive to Something Like bitcoin. What about if u. S. Regulators take a second look at it and decide, look, theyve already said its property, not currency. Does that worry you . No. Gold is property too, not currency. So it doesnt a lot of what people say about bitcoin whether it be a unit of account, a medium exchange, its actually all of those things, but people complain about it being a store of value. They say, well, look how volatile it is. It went up 56 times