Transcripts For CNBC Closing Bell 20150114 : vimarsana.com

Seen in the dow just since yesterdays highs. We talked yesterday about the outside reversal we had and what that meant technically. Art cashin among others really focused on what this has looked like from a trading point of view even as people are arguing about the fundamentals and speaking of which, lets talk about a couple wacky things going on in this marnth. Ket. Well get you all angles covered. Why are mining stocks being routed . How come retail sales look so weak when gas prices are so low . Will europe come to the rescue next week with their version of quantitative easing . And does all of this add up to a global economy, bill thats healthy or in trouble . Let me show you the stock market and then we can talk about oil as well. The dow industrials as we said down 258 right now, a decline of almost 1. 5 . S p down 21 points. Decline of more than 1 at this hour. The nasdaq is doing better than the three. Down 39 points or about 0. 85 at 4622. Show you oil very quickly. Late today ahead of an expiration coming tomorrow the price spiked. Wti it was up 5 on the close. Its come off that a little bit now. Were at 48 a barrel and we havent even gotten to the treasuries which well talk about right now. Lets get to our the closing bell exchange. Keith fitzgerald from money map press, Kenny Polcari from oneill securities is here with us at the big board and Steve Liesman and rick santelli. Steve liesman, first of all, the thing we had to puzzle this morning, the retail sales number from this morning. Much weaker than expected when we all expected Better Things because of lower gasoline prices. It was a weak number across the board and you also had downward november revisions. I will say that the combination of october november enough to power ahead overall Consumer Spending according to most estimates to a pretty good number for the total Fourth Quarter but really we have a puzzle. When you look at the market and what it has to see, whats in its vision you have these negatives that are coming out of the oil fields. We got a bunch of that in the beige book where they talked about things like hiring freezing and layoffs. Thats the negative side. And its not clear to the market that there is this upside. I suspect there will be. I think december is going to be seen as an anomaly but right now the market has the data in front of it and that data is not very promising. Kim im going to go out on a limb and say the data needs to be updated for todays world. What if the retail sales report included more Health Care Expenditures . What if it included i know theres nonstore retailers but we spend money online or mobile devices. Is it just a different play for where that consumer dollar is going today than the traditional retail plays . I think you have great points there. Both health care i mean obamacare really has changed the way we pay for health care. I know my policy changed this year, and im paying a lot more out of pocket and that has to be considered, but also i think youre right, online sales. Were expecting a huge online sales number whenever the retailers start reporting, and thats hugely important. So maybe the government really isnt collecting the data thats driving the economy. That data on health care shows up in a Quarterly Services number. You are absolutely correct in that we have a goods indicator on a monthly basis but we have to wait for a quarterly number to know whats happening in the other huge part of the economy which is the service sector. The government has to do a better job of counting that. Keith, meanwhile, you have a headline that aetna raising the minimum wage for its employees to 16. Thats certainly not an industry thats having any trouble right now it would seem and health care continues to be the best performer in the stock market. Well you know you give me a trillion dollars and i will show you a good time too. I think thats the one industry that is going to have its wallet handed out. If you look at who is driving new cars its not the doctors, not the patients its all the guys in the Insurance Companies and they have nice fat margins as a result of all this. So i think thats absolutely consistent with what the obamacare has done. To steves point youve got to have acura data and i think the government is totally behind the eightball. Theyre using stat takeistics they may as well have used 100 years ago. Kenny polcari, thats easy for me to say, i know you were being a bit irreverent when you tweeted out after we had this big sellout that maybe we would finish positive today. You were thinking back to yesterdays wide swings. It doesnt look like its going to happen today but you still have upward pressure you would think from the price of oil late today with that big spike, albeit because of options expiration. You do, but you know what . Were now at a point in the market where we made some really big technical breaks. We definitively broken through the 50 broken through the 100. Therefore, just from a Technical Trading perspective, the market is in this nowhere land. It feels like it absolutely wants to test the 200 which on the dow is at 17,000. My sense is the market feels like it needs to do that, it needs to flesh it out, netz toeds to see where the weak links are before it can establish a base. Kelly, this is how momentous this day has been. Weve gone 6 30 and we have yet to mention the treasury yields that we hit this morning. Which should have been the first thing we talked about. Normally it would be. Lets bring sick santelli into this conversation. I should apologize to viewers. The 30year went below 2. 4 today. Thats the lowest in the history, at least in recorded history, i dont know how long we should talk about how far to go back these are rates they had in the roman empire as i understand it, yes. The 10year its funny, im actually getting emails about that. Im getting emails about that. My own Data Collection goes back to the eisenhower administration. Theres a lot of talk that after world war ii, and i get all that, but its the lowest wed call it in modern times. Everything i talk about in that 2. 45 that was the old july 12 202012 alltime low, that was a close. The one guest that was talking about statistics hes absolutely right. You know you talk to anybody you bump into on the street that doesnt work in the industry they really do see the economy as spongy. Most middle class think were still quasiin a recession and as far as the data in health care everybody totally is spot on. We had senator rubio spot on. You know, theres a hole in the bucket. The wages are dripping out. Theyre not increasing for the average guy. Things like property taxes, we dont talk about, keep going up. And Affordable Care act, bigger outofpocket expenses. All of those i think are making the positives for gasoline lower prices kind of diminish a bit, but, of course we cant do the counter factual. We can never prove it but thats my sense of whats going on but if we have low gasoline prices for a long time and i think we will, maybe not this low, i think over time you will see them show up in the numbers, but as far as treasuries go its real simple. Treasuries are telling you theres a variety of reasons were not going to get enough cylinders firing in the economy, kind of like the way the iimtf downgraded growth. I open my ipad in the morning to the cnbc app and cant decide whether i should look at lower gasoline prices or lower treasury yields. Is there a price level you see . On the big, big levels i would say 10s you want to pay close attention to 1. 58 to 1. 60yearold below the market. And for 30s, i would say that the next area you want to Pay Attention to is right around 2. 27 to 2. 30 area. Wow. Kim, i just want to take rick has been painting a picture that isnt very positive, if you will, about how people are really doing in this country. I want to raise one other thing and wonder where youre putting money to work right now. Peoples needs and desires for material stuff relative to what they have is less than it has been almost anytime in history. Right or wrong, hes getting at a little bit of whats happening about the desire for products being virtual, being cyber based and the way its changing costs. Do you still like tech here kim . Are there any companies that come to mind. Do you think hes onto something in identifying this broader trend . I think he is onto something, and i dont know if you remember this or not, but i came out of tech. I was a Software Engineer so i love tech i follow it closely, and i have to agree that, you know, even at christmas time were not getting sweaters were getting electronic stuff and now games and then people are buying all manner of stuff virtually and they live more of a virtual life. I think ray is onto Something Like that. I still love intel even at this price. I think that, you know, everybody i know. Everybody loves to bash intel, but take a look at it. Operator and they make the stuff people love. And a actually kim, i got a sweater that counts my steps and cal raysories calories. I got both those things. That sounds awful. It looked really attractive. Keith, do you want to nibble at energy here, do you . Absolutely. You know i havent heard one oil company, bill talk about not being able to sell the inventory theyve got. If you look at Global Demand the data suggests its still increasing. So the developing world is using more oil than it ever has simply because its never really had an infrastructure that uses it before. Thats offsetting conservation gains in europe or the developed world. Longer term when the price bottoms, i have no idea, but theyre still going to sell all the oil theyve got and that says i want a part of it. Steve liesman, i want data plans included in the retail sales report next month. Tell congress not to cut back on the data expenditures and tell them we need more data and the kind of costs you get is when you have a selloff on data that may or may not be right and you cant balance that i guess what youre thinking about which is the Services Expenditures then you really have to wait until you get a better picture. I was thinking about tmobile which is letting you take your tax credit and apply it to their minutes or data if you will and get an extra 20. Again, theres another place where people are really spending. All we need is more data. Thats what we are missing. By the way better data. Speaking of Steve Liesman tomorrow dont miss his exclusive interview with imf managing director christine lagarde. That will be tomorrow at 12 15 p. M. Eastern during the halftime report. Looking forward to that. Thanks everybody. See you guys later. Looking at a market off 252 points as we head into the final 50 minutes of trading. Were off the lows of 333 but still a sharply negative day across wall street. Declines of 1 off the s p which earlier was back below the 2,000 mark. The nasdaq gives up 39. The pro will be weighing in on what you should be doing to safeguard your money and whether you should be buy the todays dip. Jay jordan will tell us how hes putting his clients 8 billion in assets to work. Thats coming up here on the closing bell. Also ahead, wells fargo cfo John Shrewsberry speckaking with us. Strong loan groentwth in its 18th consecutive quarter. Stay tuned. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade we looked for the best price and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Another volatile day. Boy, and like yesterday we have just seen wide swings in a number of markets. The dow down 220. Was down 350 at the lows of the session. S p and nasdaq well off their lows. Price of oil has been all over the place today. Finished up 5 in trading. Here is the dow heat map. These are all 30 components in the Dow Jones Industrial average, and once again, kelly, health care, pharmacy that area the leaders. Merck and United Health are the two plus signs today for the dow in an otherwise big down day. You give me 1 trillion and i will show you a good time. I love that line. Hilarious. Banks in the spotlight for the other reason today. Shares were under pressure. Kayla taushche has the highlights. Theres a somber tone in financials led by jpmorgan which missed on the top and bottom with mixed results. Across the bizusiness you had positive loan growth. You had low yields that slowed trading activity but the biggest shadow over the quarter was a 1. 1 billion legal charge described by the bank as lumpy and unpredictable. Again, to analysts frustration because they cant really predict these charges that come seemingly every quarter. The most common question for management is a bank breakup in the cards . Here is ceo jamie dimon. If the regulators want jpmorgan to be split up then thats what will have to happen. We cant fight the federal government. If thats their intent and we think we can earn a superior return still versus other banks and carry the higher capital and modify our Business Model over time without taking drastic action. Dimon saying washington is wrongly trying to regulate size of institutions not necessarily risk, though he admitted jpmorgan might yet need to get smaller. The four quarter saw wells fargo grow revenues and profits to become the biggest u. S. Bank after and the low rates made lending less profitable overall. Low rates also had the added benefit of spurring new mortgage lending. The worry though for wells, its exposure to oil prices and lending in the energy patch. John shrews ssberry called the drop very recent. He said the bank combed through all its exposure and found its clients are preserving their cash, but theyre not borrowing more. Theres not that much loan demand from the sector but that credit in the Energy Sector is not showing cracks just yet. When you have a bank kelly and bill, with a lot of exposure to energy like wells does thats going to be the question but overall bank shares under pressure and not sending a good tone for bank of america and citigroup which are out tomorrow. Guys, back to you. Kayla, thank you very much. Lets talk more about those earnings and the landscape for banks. With us first on cnbc interview is the aforementioned wells fargo cfo John Shrewsberry who happens to be a member of cnbcs cfo council. How does it feel to listen to yourself being quoted extensively from the conference quote. It feels fine. It would have been great if he had quoted the part about what a great quarter it was for wells fargo with loan growth. All pretty good. Im happy to hear it. We expected you to say that anyway. Its part of your job. Is it a mixed picture for you, the outlook for mortgages because you are the biggest Mortgage Lender out there rates are still low and attractive for consumers, but at the same time you know, theyre not borrowing that much in part because of the squeeze that theyre going through on wages and otherwise and the price of oil here. How do you characterize it . I would tell you that loan growth for wells fargo in the Fourth Quarter annualized third to Fourth Quarter grew at 13 which is as strong as its been in some time. Some of that is in mortgages, autos, credit cards, its in all categories of commercial and industrial lending. So while, for example, Energy Lending may slow down because of whats going on there, overall very bullish quarter and showing up in loan totals. John, what is the total portion of oil and gas in your Loan Portfolio and what other kinds of exposures do you have to the drop in oil prices . So in loans its about 2 of our portfolio. We have 850 billion worth of loans and in that portfolio is includes the upstream exploration and production folks, it includes services it includes midstream or pipeline companies, and it includes the larger integrated Oil Companies as well. So its a very modest portion of the portfolio. Much of it is done on a reserve basis where we remargin people down as prices move. This isnt your first cycle. Weve got a team thats been on the ground for 40 years. Were taking it very seriously, but it amounts to 2 of loans. Have you seen any there are a couple sorry. I was going to ask if you had seen any deterioration in loan quality here as well . No we havent yet. The first thing E P Companies do in this instance is they stop spending money on projects and cap ex. They have reserves in the ground that are convertible into cash and so you dont see instant signs of stress. This is going to take this is going to play out over some time. If crude remains very low for an extended period of time then well watch it work through the credit portfolio over time but its very well contained. Would you rather Interest Rates remain low which would theoretically be a benefit to the Mortgage Market that you are so important in or would you rather see them go up so your net interest margins go up . In other words the spread between what you lend and what you return at the same time. The traditional way that banks make money. Which way would you rather have it right now . Well theres two different points on the curve that were talking about. Asset sensitivity we have is at the short end of the curve where we have many loans that are indexed to libor or fed funds, et cetera. As that begins to move up thats good for we wills fargo. Incidentally weve been producing at a high level while rates have remained low. On the longer end of the curve were a little conflicted. Our customers do better and so were very happy in the Mortgage Market when rates remain low. We do have a big fixed Income Portfolio as well like all banks, where we deploy some of our excess deposits so that portfolio loses value as rates begin to rise although incremental investments become more attractive as rates rise. So in the Kenny Polcari<\/a> from oneill securities is here with us at the big board and Steve Liesman<\/a> and rick santelli. Steve liesman, first of all, the thing we had to puzzle this morning, the retail sales number from this morning. Much weaker than expected when we all expected Better Things<\/a> because of lower gasoline prices. It was a weak number across the board and you also had downward november revisions. I will say that the combination of october november enough to power ahead overall Consumer Spending<\/a> according to most estimates to a pretty good number for the total Fourth Quarter<\/a> but really we have a puzzle. When you look at the market and what it has to see, whats in its vision you have these negatives that are coming out of the oil fields. We got a bunch of that in the beige book where they talked about things like hiring freezing and layoffs. Thats the negative side. And its not clear to the market that there is this upside. I suspect there will be. I think december is going to be seen as an anomaly but right now the market has the data in front of it and that data is not very promising. Kim im going to go out on a limb and say the data needs to be updated for todays world. What if the retail sales report included more Health Care Expenditures<\/a> . What if it included i know theres nonstore retailers but we spend money online or mobile devices. Is it just a different play for where that consumer dollar is going today than the traditional retail plays . I think you have great points there. Both health care i mean obamacare really has changed the way we pay for health care. I know my policy changed this year, and im paying a lot more out of pocket and that has to be considered, but also i think youre right, online sales. Were expecting a huge online sales number whenever the retailers start reporting, and thats hugely important. So maybe the government really isnt collecting the data thats driving the economy. That data on health care shows up in a Quarterly Services<\/a> number. You are absolutely correct in that we have a goods indicator on a monthly basis but we have to wait for a quarterly number to know whats happening in the other huge part of the economy which is the service sector. The government has to do a better job of counting that. Keith, meanwhile, you have a headline that aetna raising the minimum wage for its employees to 16. Thats certainly not an industry thats having any trouble right now it would seem and health care continues to be the best performer in the stock market. Well you know you give me a trillion dollars and i will show you a good time too. I think thats the one industry that is going to have its wallet handed out. If you look at who is driving new cars its not the doctors, not the patients its all the guys in the Insurance Companies<\/a> and they have nice fat margins as a result of all this. So i think thats absolutely consistent with what the obamacare has done. To steves point youve got to have acura data and i think the government is totally behind the eightball. Theyre using stat takeistics they may as well have used 100 years ago. Kenny polcari, thats easy for me to say, i know you were being a bit irreverent when you tweeted out after we had this big sellout that maybe we would finish positive today. You were thinking back to yesterdays wide swings. It doesnt look like its going to happen today but you still have upward pressure you would think from the price of oil late today with that big spike, albeit because of options expiration. You do, but you know what . Were now at a point in the market where we made some really big technical breaks. We definitively broken through the 50 broken through the 100. Therefore, just from a Technical Trading<\/a> perspective, the market is in this nowhere land. It feels like it absolutely wants to test the 200 which on the dow is at 17,000. My sense is the market feels like it needs to do that, it needs to flesh it out, netz toeds to see where the weak links are before it can establish a base. Kelly, this is how momentous this day has been. Weve gone 6 30 and we have yet to mention the treasury yields that we hit this morning. Which should have been the first thing we talked about. Normally it would be. Lets bring sick santelli into this conversation. I should apologize to viewers. The 30year went below 2. 4 today. Thats the lowest in the history, at least in recorded history, i dont know how long we should talk about how far to go back these are rates they had in the roman empire as i understand it, yes. The 10year its funny, im actually getting emails about that. Im getting emails about that. My own Data Collection<\/a> goes back to the eisenhower administration. Theres a lot of talk that after world war ii, and i get all that, but its the lowest wed call it in modern times. Everything i talk about in that 2. 45 that was the old july 12 202012 alltime low, that was a close. The one guest that was talking about statistics hes absolutely right. You know you talk to anybody you bump into on the street that doesnt work in the industry they really do see the economy as spongy. Most middle class think were still quasiin a recession and as far as the data in health care everybody totally is spot on. We had senator rubio spot on. You know, theres a hole in the bucket. The wages are dripping out. Theyre not increasing for the average guy. Things like property taxes, we dont talk about, keep going up. And Affordable Care<\/a> act, bigger outofpocket expenses. All of those i think are making the positives for gasoline lower prices kind of diminish a bit, but, of course we cant do the counter factual. We can never prove it but thats my sense of whats going on but if we have low gasoline prices for a long time and i think we will, maybe not this low, i think over time you will see them show up in the numbers, but as far as treasuries go its real simple. Treasuries are telling you theres a variety of reasons were not going to get enough cylinders firing in the economy, kind of like the way the iimtf downgraded growth. I open my ipad in the morning to the cnbc app and cant decide whether i should look at lower gasoline prices or lower treasury yields. Is there a price level you see . On the big, big levels i would say 10s you want to pay close attention to 1. 58 to 1. 60yearold below the market. And for 30s, i would say that the next area you want to Pay Attention<\/a> to is right around 2. 27 to 2. 30 area. Wow. Kim, i just want to take rick has been painting a picture that isnt very positive, if you will, about how people are really doing in this country. I want to raise one other thing and wonder where youre putting money to work right now. Peoples needs and desires for material stuff relative to what they have is less than it has been almost anytime in history. Right or wrong, hes getting at a little bit of whats happening about the desire for products being virtual, being cyber based and the way its changing costs. Do you still like tech here kim . Are there any companies that come to mind. Do you think hes onto something in identifying this broader trend . I think he is onto something, and i dont know if you remember this or not, but i came out of tech. I was a Software Engineer<\/a> so i love tech i follow it closely, and i have to agree that, you know, even at christmas time were not getting sweaters were getting electronic stuff and now games and then people are buying all manner of stuff virtually and they live more of a virtual life. I think ray is onto Something Like<\/a> that. I still love intel even at this price. I think that, you know, everybody i know. Everybody loves to bash intel, but take a look at it. Operator and they make the stuff people love. And a actually kim, i got a sweater that counts my steps and cal raysories calories. I got both those things. That sounds awful. It looked really attractive. Keith, do you want to nibble at energy here, do you . Absolutely. You know i havent heard one oil company, bill talk about not being able to sell the inventory theyve got. If you look at Global Demand<\/a> the data suggests its still increasing. So the developing world is using more oil than it ever has simply because its never really had an infrastructure that uses it before. Thats offsetting conservation gains in europe or the developed world. Longer term when the price bottoms, i have no idea, but theyre still going to sell all the oil theyve got and that says i want a part of it. Steve liesman, i want data plans included in the retail sales report next month. Tell congress not to cut back on the data expenditures and tell them we need more data and the kind of costs you get is when you have a selloff on data that may or may not be right and you cant balance that i guess what youre thinking about which is the Services Expenditures<\/a> then you really have to wait until you get a better picture. I was thinking about tmobile which is letting you take your tax credit and apply it to their minutes or data if you will and get an extra 20. Again, theres another place where people are really spending. All we need is more data. Thats what we are missing. By the way better data. Speaking of Steve Liesman<\/a> tomorrow dont miss his exclusive interview with imf managing director christine lagarde. That will be tomorrow at 12 15 p. M. Eastern during the halftime report. Looking forward to that. Thanks everybody. See you guys later. Looking at a market off 252 points as we head into the final 50 minutes of trading. Were off the lows of 333 but still a sharply negative day across wall street. Declines of 1 off the s p which earlier was back below the 2,000 mark. The nasdaq gives up 39. The pro will be weighing in on what you should be doing to safeguard your money and whether you should be buy the todays dip. Jay jordan will tell us how hes putting his clients 8 billion in assets to work. Thats coming up here on the closing bell. Also ahead, wells fargo cfo John Shrewsberry<\/a> speckaking with us. Strong loan groentwth in its 18th consecutive quarter. Stay tuned. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade we looked for the best price and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Another volatile day. Boy, and like yesterday we have just seen wide swings in a number of markets. The dow down 220. Was down 350 at the lows of the session. S p and nasdaq well off their lows. Price of oil has been all over the place today. Finished up 5 in trading. Here is the dow heat map. These are all 30 components in the Dow Jones Industrial<\/a> average, and once again, kelly, health care, pharmacy that area the leaders. Merck and United Health<\/a> are the two plus signs today for the dow in an otherwise big down day. You give me 1 trillion and i will show you a good time. I love that line. Hilarious. Banks in the spotlight for the other reason today. Shares were under pressure. Kayla taushche has the highlights. Theres a somber tone in financials led by jpmorgan which missed on the top and bottom with mixed results. Across the bizusiness you had positive loan growth. You had low yields that slowed trading activity but the biggest shadow over the quarter was a 1. 1 billion legal charge described by the bank as lumpy and unpredictable. Again, to analysts frustration because they cant really predict these charges that come seemingly every quarter. The most common question for management is a bank breakup in the cards . Here is ceo jamie dimon. If the regulators want jpmorgan to be split up then thats what will have to happen. We cant fight the federal government. If thats their intent and we think we can earn a superior return still versus other banks and carry the higher capital and modify our Business Model<\/a> over time without taking drastic action. Dimon saying washington is wrongly trying to regulate size of institutions not necessarily risk, though he admitted jpmorgan might yet need to get smaller. The four quarter saw wells fargo grow revenues and profits to become the biggest u. S. Bank after and the low rates made lending less profitable overall. Low rates also had the added benefit of spurring new mortgage lending. The worry though for wells, its exposure to oil prices and lending in the energy patch. John shrews ssberry called the drop very recent. He said the bank combed through all its exposure and found its clients are preserving their cash, but theyre not borrowing more. Theres not that much loan demand from the sector but that credit in the Energy Sector<\/a> is not showing cracks just yet. When you have a bank kelly and bill, with a lot of exposure to energy like wells does thats going to be the question but overall bank shares under pressure and not sending a good tone for bank of america and citigroup which are out tomorrow. Guys, back to you. Kayla, thank you very much. Lets talk more about those earnings and the landscape for banks. With us first on cnbc interview is the aforementioned wells fargo cfo John Shrewsberry<\/a> who happens to be a member of cnbcs cfo council. How does it feel to listen to yourself being quoted extensively from the conference quote. It feels fine. It would have been great if he had quoted the part about what a great quarter it was for wells fargo with loan growth. All pretty good. Im happy to hear it. We expected you to say that anyway. Its part of your job. Is it a mixed picture for you, the outlook for mortgages because you are the biggest Mortgage Lender<\/a> out there rates are still low and attractive for consumers, but at the same time you know, theyre not borrowing that much in part because of the squeeze that theyre going through on wages and otherwise and the price of oil here. How do you characterize it . I would tell you that loan growth for wells fargo in the Fourth Quarter<\/a> annualized third to Fourth Quarter<\/a> grew at 13 which is as strong as its been in some time. Some of that is in mortgages, autos, credit cards, its in all categories of commercial and industrial lending. So while, for example, Energy Lending<\/a> may slow down because of whats going on there, overall very bullish quarter and showing up in loan totals. John, what is the total portion of oil and gas in your Loan Portfolio<\/a> and what other kinds of exposures do you have to the drop in oil prices . So in loans its about 2 of our portfolio. We have 850 billion worth of loans and in that portfolio is includes the upstream exploration and production folks, it includes services it includes midstream or pipeline companies, and it includes the larger integrated Oil Companies<\/a> as well. So its a very modest portion of the portfolio. Much of it is done on a reserve basis where we remargin people down as prices move. This isnt your first cycle. Weve got a team thats been on the ground for 40 years. Were taking it very seriously, but it amounts to 2 of loans. Have you seen any there are a couple sorry. I was going to ask if you had seen any deterioration in loan quality here as well . No we havent yet. The first thing E P Companies<\/a> do in this instance is they stop spending money on projects and cap ex. They have reserves in the ground that are convertible into cash and so you dont see instant signs of stress. This is going to take this is going to play out over some time. If crude remains very low for an extended period of time then well watch it work through the credit portfolio over time but its very well contained. Would you rather Interest Rates<\/a> remain low which would theoretically be a benefit to the Mortgage Market<\/a> that you are so important in or would you rather see them go up so your net interest margins go up . In other words the spread between what you lend and what you return at the same time. The traditional way that banks make money. Which way would you rather have it right now . Well theres two different points on the curve that were talking about. Asset sensitivity we have is at the short end of the curve where we have many loans that are indexed to libor or fed funds, et cetera. As that begins to move up thats good for we wills fargo. Incidentally weve been producing at a high level while rates have remained low. On the longer end of the curve were a little conflicted. Our customers do better and so were very happy in the Mortgage Market<\/a> when rates remain low. We do have a big fixed Income Portfolio<\/a> as well like all banks, where we deploy some of our excess deposits so that portfolio loses value as rates begin to rise although incremental investments become more attractive as rates rise. So in the Interest Rate<\/a> environment weve been in, things have worked out very well for us. If rates begin to move up i think thats good for wells fargo as well and we can perform in either environment. I think mortgage borrowers would prefer if long rates remain low. Two quick related questions on your energy exposure. One, i understand the head of your commodities business left a couple years ago. Do you guys have a commodities business to speak of . We do. We have an energy hedging business. Its based in houston where the larger team is and we help our producer customers lock in prices Going Forward<\/a> which many of them are benefiting from right now. And we help our consumer customers, people who have Energy Prices<\/a> built into their cost structure, manage their costs on a Going Forward<\/a> basis. Its an Important Service<\/a> we provide to both sides of the industry. And how big is that relative to Everything Else<\/a> that you do . Its pretty modest. When you think about the risk portfolio at wells fargo, theres more exposure in a good way to producers, producers benefit when from hedging when prices go down. If you thought about the market risk we actually owe customers on a mark to market basis so its not really contributing to incremental risk. Cyber security every day a new entity is hacked we hear about. I saw in your notes that your expenses went up in the quarter because you hired a consultant in the area. Talk to us about that. And have you gone through a stress test of sorts to make sure or figure out where the weak spots may be or whether youre protected at this point . Sure. Well, weve had lots of people also used third parties as was mentioned on the call this morning in connection with building out our cyber capability and frankly, the resiliency of our Technology Infrastructure<\/a> and were consistently testing ourselves, penetration tests and other sorts of activities where weve got our own people and vendors trying to penetrate the system to test our capabilities and detecting it preventing it to begin with et cetera. So its here to stay. The threat comes from many different investigate vectors. Im happy we have the resources we do to be able to afford that because i think its a risk for all Financial Services<\/a> firms. How much in resources do you anticipate . Do you expect spending to go up appreciably in that area . Well even if they do given the magnitude of the firm its not going to be the differencemaker in terms of how our performance runs. You know were generating on the order of 20 billion, 22 billion a year of net income after tax. So hundreds of millions of dollars here or there which is what some of these initiatives could amount to is money well spent and not going to change the direction of the firm. John, we have to let you go. One final question. This isnt just about the energy producers, this drop in oil prices. A lot of people your company, others, sold investors, for example, notes that would be linked to the performance of commodities and the performance of oil. What happens to the value of those investments now in terms of the exposure that you may have to the drop in oil through that channel . I dont know what the market cap is of commodity linked notes that exist in the world, but obviously they would be underperforming in this part of the cycle. Theyd be part of a diversified portfolio and the people who invest in them would be aware of that risk. So i dont think that that adds up to an appreciable risk certainly not for wells fargo. Understood. Just want to explore all aspects of this. Its been a stunning price decline, john. Thank you so much for being here to help talk us through all of it and how wells fargo is dealing with it. John shrewsberry, the cfo of wells fargo on the Strong Quarter<\/a> in loan growth. 35 minutes to go bill. We were coming back. A moment ago we were down just 180, but now heading lower again, down almost 200 points on the industrial average. 17,418. Hovering above 2,000 on the s p. We were down 13 points. The nasdaq is down 23. Up next mining stocks got destroyed today. Our Morgan Brennan<\/a> has the Damage Assessment<\/a> you cant afford to miss. Plus two traders weigh in on why the stocks are getting hit and what it may indicate to the broader market. Stay tuned. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions, backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Welcome back. The dow is off 200 points. It was off 333 or thereabouts at the lows of the day. Weve been watching for the typical correlations to see if they bear out today, bill. Is it what happens with Interest Rates<\/a> . Is it what happens with oil prices . Lots of different moving pieces. So many cross currents right . Yeah. And as youre seeing with about half an hour to go thats shaking out still to a negative day across the market although were now off only 176. Deep in that red sector would be the mining stocks down sharply as prices collapsed in some key Metals Copper<\/a> was a big part of that as well. Its not just oil. Morgan brennan is assessing the damage here for us. What did you find morgan . Oh boy, its been a really tough day for the mining stocks. As you mentioned, copper this is on the back of copper and in general the Industrial Metals<\/a>. Those coming off in a big way. Copper was the biggest loser. And we also saw that here with the high grade copper contract the march contract that trades here on the nymex. Price trading around 5 1 2 year lows. You can see that right there, down about 5 for the day. And, of course that did spill over into the mining and metal stocks. Some of the hardest hit stocks today into the s p 500. So looking at the Copper Mining<\/a> stocks specifically, those were the hardest hit, and you can see that here. Well, you can see that with the global x copper miner. Freeportmcmoran is down 11 almost 12 . The big etion loser in the s p. Hitting a fresh 52week low southern copper down 4 . And as i mentioned, copper was the biggest loser of the Industrial Metals<\/a> today but we saw all of those different types of metals, aluminum nickel lead all of those trading lower. Allegheny tech hitting 52week lows. Nucor hitting 52week lows. And alcoa despite better than expected earnings down 5. 5 . To top that off, i will say this also had ripple effects into Mining Equipment<\/a> makers. We saw caterpillar trading lower and joy global. You can see that joy global turned positive. Guys, back to you. I think they heard you, morgan. Thank you very much. Morgan brennan back at headquarters. Markets have been bouncing around. Every time we look, Something Different<\/a> is going on. Gold one of the few metals in the green today though. That is is safe haven typically. Lets head into the commodities pits. Joining us A Todd Colvin<\/a> and paul sachs. Im guessing au is a reference. Tell us what you think is happening with gold. Well done. Gold is actually performing relatively well compared to just about Everything Else<\/a> youre mentioning. It its shrugging off the implosion in crude, the strength of the u. S. Dollar. Gold has really been holding its own. If theres a theme,s volatility. Commodities are moving 4 5 6 a day. To me it seems like theres some liquidation, margin calls. It really is a good time to consider tail risk. So gold is really sort of regaining some of its safe haven status. Todd, copper fiveyear lows. Whats the story there and do you see that continuing here . Well i think it kicked off back in november when we saw it dip below that key 300 level. It really hasnt looked back since. Yesterday we got declines Global Growth<\/a> declines looking forward, and now we see its just become sort of a runaway train. Were looking at copper prices right now maybe seeing a range between 175 and 325 over the next year based on our option analysis. I think thats a pretty wide range but it gives you a sense of were at 250 right now on our way down from 300. It seems like theres a little ways to go to the downside. I wouldnt be getting in yet. I think there will be an opportunity but its not today. Paul its actually interesting to me how stable gold prices have been generally speaking. In fact, it reminds a little bit of oil for the couple of years before the massive decline this year. Is there a risk if you get involved in gold and suddenly the price does crack for whatever reason that suddenly you could be down 50 . I mean that certainly is a possibility. It did have a brutal year in 2013. It sold off 28 , really much too large of a move for an asset which many people consider to be a currency. Theres an intelligent way to play the gold market and thats with gold options instead of buying the underlying but you really want to make sure youre covered at both ends. Gold has the potential to surprise to the up side this year bucking other major trends. Wish we had more time. Thank you for your thoughts on commodities going lower at this point, especially the metals. Thanks. About 25 minutes to go here. Watching the markets. Now were off more than 200 points again. The s p is trying to stay above 26,000. We zipped below that level during the intraday session. When we come back we have dominic chu telling us whats moving the markets. Hes got his hands full on that. Plus beat the street. In a market like this you need to hear from some smart stock pickers more than ever, and well talk with the top money man who was nominated for morningstars fund manager of the year award coming up. You total your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company<\/a> says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had a Liberty Mutual<\/a> new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual<\/a> policy. And for drivers with accident forgivness,rates wont go up due to your first accident. Learn more by calling switch to Liberty Mutual<\/a> and you can save up to 423. For a free quote today,call Liberty Mutual<\/a> insurance at see Car Insurance<\/a> in a whole new light. Liberty mutual insurance. We have stabilized i guess youd put it that way right now. The dow down 205 points. Of the 30 components, 27 are lower, 3 are higher. Theyre all health care related. United Health Pfizer<\/a> and merck are positive on an otherwise big down day. The dow was down 350 points but weve since come off the lows big time. And dominic chu is keeping an eye on all of the big Market Movers<\/a> for us today. As bill said you have your hands full. A lot of red stocks for sure but there are some slivers of green. Lets start with whats happening with General Motors<\/a> which is moving lower on news the automaker will boost Capital Spending<\/a> of 20 . Killing hopes of a dividend hike. Those shares down 2. 5 . Tesla shares hitting an eightmonth low founding elon musks comments about a fall off in sales in china. He also said he didnt expect the company to turn a profit until 2020. Tesla shares there down by 6 . Footlocker is falling after Goldman Sachs<\/a> downgraded them to a sell from a neutral and lowered the price target to 47 from a prior 55 citing concerns peak margins on basketball sneakers are a risk factor. Finish line shares traded lower in sympathy. A lot of red but like you said bill, kelly, at least a couple shocks on the dow, the health care side, are doing pretty well in todays trade. Back over to you. Thanks very much. Market taking a beating as you know, but its time for our weekly beat the street segment. Were talking midcaps. We bring you the American Century<\/a> midcap value fund. This fund is up 12 in the past 12 months while its benchmark, the russell is up just 8 . Kevin tony of American Century<\/a> joins us. Hes nominated by morningstar for u. S. Fund manager. Great to have you here and joining us. Lets begin with midcaps. Where are you finding outperformance . Are we right to see one of your top holdings is the ishares midcap fund . Thanks for having me. At American Century<\/a> we try to be fully invested at all times, and so occasionally when we have buys or sells going on well temporarily park somebody into the ishares so they are getting full exposure to the market. So you want to be fully invested. That means when we get this kind of volatility youre not rejiggering your portfolio that much moving around . You guys it sounds like are classic stock pickers. You buy something when you see value and you just hang on for the ride. Is that the idea . Well we are bottoms up stock pickers, thats right. And were looking for High Quality Companies<\/a> with good returns on capital, narrow range of outcomes good Balance Sheets<\/a> a lot of downside protection. So we are, as you said classic value managers and so when something outperforms, well trim it back and when something underperforms, well add a little bit to it. I see a couple names here kevin, that you have brought. Life point hospitals, cisco, and republic services. Quickly tell us about these. Okay. Sure. Life point is a Hospital Company<\/a> with a broad footprint across the United States<\/a>, and we think as people in the United States<\/a> get better access to health care, either through a better jobs environment or through obamacare, that that will help margins and earnings at life point. Cisco is thesysco is the largest food distributor in america. It fits our process very well. Its a stable Business Model<\/a>. As the consumer gets more money into its pocket with lower gas prices, we think that should drive revenues at sysco. Their primary customers are restaurants, and that should help sysco and sipsysco should benefit from lower gas prices lower distribution costs. Theyre getting over the hump on i. T. Spending man. I Like Republic Services<\/a> here as well. Thats an interesting play. A phoenixbased company, too, yeah . Phoenix, yeah. That sounds real nice when youre in kansas city here and its cold. Yeah its a trash company. They pick up the trash, and, again, fits our process really well of High Quality Companies<\/a>, high return on capital, low volatility, and so we think as the economy improves and commercial construction picks up, that their volume should improve and then Pricing Power<\/a> should follow. So that should help them get their margins to normalize as well. But if our thesis doesnt play out, this is the type of a company that doesnt have a lot of downside. Well i love people will often say trash is a great economic indicator. We hope youre right about this investment, about the economy, and we wish you luck next week as well. Thanks kelly. Thanks for being here. Heading to the close, about 17 minutes left in the session here. I dont think Kenny Polcari<\/a>s tweet this morning when he said even when the market was down 250 points that wed finish positive, not going to happen but he knew that as well. Down 180 points on the industrial average right now. If you want to check out that fund we just mentioned as well with kevin, its acmvx. Thats the ticker for the American Century<\/a> midcap value fund. Here is a look at the big caps and tech not spared today. Well go live to Silicon Valley<\/a> for a special report on the tech wreck when we come back. Market slightly coming back but thats relatively speaking. Down 20 points on the nasdaq 100. The dow down 178 right now, and the s p down over 10 points as well. As we head toward the close with about 14 minutes left. If youre looking for ports in a storm, dont look at tech. Josh lipton is here with the tech wreck. What are you seeing in Silicon Valley<\/a> . Well kelly, the new year isnt kicking off in the way a lot of tech bulls had obviously hoped. Right now the tech sector and the s p 500 down about 3 . That is the sixth worst performing sector out of ten so pretty much right in the middle of the pack there. But, of course whats really attracting a lot of attention isnt the sector as a whole. Its been really the moves were seeing in the big tech names. You take google for example, this week that stock did hit a new 52week low. Its now down nearly 20 from its alltime high. Then of course theres ibm. Big blue. Remember the worst performer in the dow last year and its in the red again so far here in 2015. In fact, many of those tech names we talk about the most are well off their 52week highs right now. That includes apple, microsoft, and yahoo . And some that were seeing now could be just profit taking. Remember, last year that tech sector was the third best performer in the s p 500 with a gain of nearly 20 . Guys, back to you. Josh thank you. And, yes, we are aware that blackberry shares are suddenly up 20 right now. Dom chu stepping in with that story. This is session highs for blackberry shares. What we have right now is blackberry spiking as we speak. Reuters is reporting that a South Korean Electronics<\/a> giant samsung had recently approached blackberry about a potential takeover offer. It said that samsung proposed a possible price range, initial price range, of between 13. 35 a share to 15. 48 per share. Hence you see that movement higher by about 21 right now. So again, a reuters story citing a source that says that samsung had approached blackberry about a potential takeover. Well bring you more details but for right now thats what we have. Its a reuters story that blackberry could be a takeover target for samsung. We have to quickly point out whats being bandied about, 13. 35 to 15. 49 a share is nowhere near where blackberry is trading. 11. 38 is where were trading right now. Theres obviously a healthy dose of skepticism. Theres takeover talks or rumors for a while here on blackberrys stock and so this time around you can see people handicapping whether or not this comes to fruition. Still, interesting that there are actually numbers associated with this report with regard to a possible initial takeover price by samsung if in fact those stories are true guys. I know i kid about blackberry, i have got mine and all that blah blah blah but, you know, from a Cyber Security<\/a> standpoint thats still a Gold Standard<\/a> in the industry the blackberry operating system is and that may be one of the attractions there. But you wonder if the canadian government would allow the takeover by a south Korean Company<\/a> or any other foreign entities at this point. Lenovo had been talked about at one point as a possible suitor for blackberry. Thats a chinese company. Cross border deals will always be a huge amount of skepticism is going to be at least paid to some of these takeover deals, but when its cross border like this, remember, it is a big deal for blackberry if anybody is talking about this. But youre right, bill its something thats been talked about for a while in terms of a possible suitor. Its the first time weve heard that samsung is very front and center in the talk. Thanks dom. See you later. Lets get back to oil prices. Late day rally settling over 48 on wti. 5 gain there. Jackie deangelis at the nymex. Good afternoon. A near 6 gain on the day, very volatile seesaw trading but we closed at 48. 48. We had options expiration today which usually does take prices up. Thats one of the reasons. And also the pattern of late has been to see either extreme buying or extreme selling into the close and that is exactly what happened today. However traders are saying the downward bias remains for a couple reasons. We got a big crude in gasoline inventory build and Dollar Strength<\/a> and worries about Global Growth<\/a>. Let me give you a gas price check. 2. 10 the National Average<\/a> and bill finally 1. 99 at a station near you. Yes, it was. I tweeted the photo today and as i said i was so excited i bought gas all around. I bought a round for everybody. Youre storing it now. Everyone is getting into the tanker business. Thanks, jackie. Bought a tanker. Coming back a little bit here. Ten minutes left. Yes, thats the case. Well keep a close eye on this. We have low gas prices to watch as well. Trying to catch art cashins eye. It low gas prices is supposed to help the consumer why were retail sales so bad last month. Thats a question weve been asking all day. Well get to that just ahead. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Ive been called a control freak. I like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. Okay. Six minutes left here. Were a little tight on time because of the blackberry breaking news, down 180 points on the dow. Joining me right now bob pisani. Are you buying dips like this . We started buying some more today. Look, its day nine. Theres 242 trading days left in the year. Lets not throw in the towel quite yet and lets remember last year up 14 on the s p 500. It started in a very similar fashion as what were going through now. I wouldnt throw in the towel and stick with High Quality Companies<\/a>, good dividend paying stocks. I know its boring but it works. Its day nine and theres 240 days left . 242. That means half the day is wrong, right . Im terrible with math. Did you see the rally in energy weve had today . Late today. 2 00 nothing is happening. Suddenly it seems to have started with oil. Then nat gas blew up and all the ou stocks started moving the xop, the expiration and production etf suddenly blows up. We know options are expiring on oil today. We talked about that. Jackie talked about it as well. Thats probably the explanation but it also coincided with the base book report. Maybe the comments had a little bit of influence. Let me take a quick break. Well get to the closing countdown around see how we close this day out. Another wild day and then much more after the bell second hour of the closing bell coming your way in a moment. Stay tuned. [container door opening] what makes it an suv is what you can get into it. [container door closing] what makes it an nx is what you can get out of it. Introducing the firstever lexus nx turbo and hybrid. Once you go beyond utility theres no going back. Your old 401k is rolled over into a Td Ameritrade<\/a> ira. Yes so no set up fees wooh yeah so i get help from rollover consultants . Wooh yes no rollover hassle. Great. Woah oh, were spiking things, robbie. For all the confidence you need. Thats better Td Ameritrade<\/a>. You got this. Opinions. Theres no shortage in this world. Who do you trust . 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Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any allergic reactions like rash, hives, swelling of the lips tongue or throat or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. So many stories, so little time. Heading to the close, here is the dow today at the low. We were down about 350 points. Coming back still down 194. What happens tomorrow . One of the movers late this afternoon was the price of oil. This options expiration pushed the price of oil higher. We had the best day up day for wti crude since june of 12. A gain of 5 plus. Were at 48. 35. And oliver and then bob, blackberry late today, we were highlighting is up almost 30 right now on the talk reuters report that samsung was looking at them as a possible acquisition target. I think m a will be big. Ernest and young talks about the expectation of high m and a. Youre going to see great values out there. 2006 you still have a 2006 model . 2006 blackberry. I have thrown it in the snow. It works. Its reliable. The thing keeps working. Im an apple guy. Lets hope blackberry makes it. Cyber security is very important. Sony had to use that there. Oil, are you buying any energy here . We bought some energy earlier. I remember i was talking to you, we thought around 60 was the bottom. The bottom line is the world is not collapsing. If things arent as bad as they appear, so the year is probably pretty good. Well see what happens. Good to see you. Thank you. Take care of that blackberry. Going out with a decline of about 200. Another wild wacky day. Well see what happens tomorrow and whats going on with blackberry. Stay tuned. The second hour of the closing bell with kelly evans and company. See you tomorrow, kel. Thank you, bill. Hi, everybody, welcome to the closing bell. Im kelly evans and here is how were finishing a wild ride on wall street. Going out with the dow off 187 points, the s p off 11 and the nasdaq off 22. So 1 decline for the dow, about half of that for the nasdaq and the s p. And certainly declines in jpmorgan after those Earnings Results<\/a> played a role in the underperformance of the big dow index. Lets bring in todays panel, talk about that. The moves in oil prices and so much more. Rick edelman is here. Cnbc contributor stephanie link and our very own michelle carusocabrera. Also joining us for more on todays Market Action<\/a> is fast money trader guy adami. Guy, you get to do the honors here because this is a guy world and were all living in it. I hope its not a guy man, that is scary as can be. Now all of a sudden you see a lot of people you see some fed governors talking about it obviously over in europe people talking about this Global Deflation<\/a> trade. Just given everything thats happened, you have to sort of you have to allow for the fact that maybe thats the case. Baltic dry index down 30something days in a row. We talk about the crude move. The copper move has been equally impressive to the downside. Coupled with that with the fact that the bond market is stubbornly bid. Rates want to go lower and that points to deflationary environment. Doesnt mean necessarily that stocks have to go down but it doesnt paint a rosy outlook down the road. Michelle . I think a lot of stock investors are very poured edworried about the utter collapse in yields and commodities and what is it telling us . You made a throwaway comment yesterday on the segment i was on where you talked about real rates. Were a show dedicated mostly to stocks but they have to start understanding the concept of real rates. When we show the 10year yield at 1. 8 if you think inflation is below that, if you think prices are going to go down say you think prices will go down 1 , that means youre going to get 3 on your money. Thats the real rate. Exactly. There are arguments to be made by economists that Interest Rates<\/a> are still too high for the state of the committee that we have right now. I know its something if you raise it rick most people recoil. They say what are you talking about, but thats how it matters to people in the market. This is why people are so flustered and why were seeing renewed volatility like we didnt see for most of last year. As people are focusing on the fact that the stock market is iffy and we have price problems in oil and elsewhere at the same time we have a massive yield issue not only in the u. S. But foreign as well and people are wondering where exactly do i go and what do i do with the cash . What do you tell people when they come to you and say, rick help me. What am i supposed to do . Am i supposed to buy bonds when i keep hearing about all the risks . What were telling our clients and anyone new with cash to invest is real simple. You have to ignore this type of volatility. Look at today, in fact what happened from 2 00 to 4 00 p. M. Had nothing to common from 10 00 a. M. To noon. You cant make Investment Decisions<\/a> based on this nonsense. Dont make big bets. Lots of money in lots of little places so no one mistake will hurt you. Stephanie . To me whats troubling is you have energy that hasnt led in a long time and it just seems to go down every day minus today with crude prices. I think whatas a little bit of short koverring. Now you have financials following suit. 25 of the s p are waiting going in the opposite direction. Its incredible the market has held up as well as it has. Today you had the retail sales number. I would say thats a one off because it doesnt really jive with what were hearing on jobs and confidence and income but then you have that kind of turnaround. So i think today was a lot there were theres a lot of news. What i would point to the most important thing was the Bank Earnings<\/a> which were a little disappointing and to the point of the panel, Interest Rates<\/a>, if theyre headed lower, this group is not going to outperform anytime soon. You have to look at other sectors. I still believe the consumer is the place to be. I believe pockets of industrials are places to be like auto and aerospace and truck that will benefit from Lower Oil Prices<\/a> but you have to be selective and stock specific. Guy, what do you think looks attractive out there . Health care. Health care. Health care. He keeps coming back to health care. Health care health care. I said it five times. I think theres Great Stories<\/a> in health care. You look at whats green on a lousy day despite the fact we bounced off the lows. Theres Great Stories<\/a> in health care. I banged this drum as well. Take a look at what cell gene has done over the last couple weeks. Look at the bounce gilead has had. We talk about agio. Look at exact sciences. Thats a name we talk about with you six months ago. Theres some Great Stories<\/a> in the Health Care Sector<\/a> and to self stephanies point, if the yield curve continues to flatten, thats a tremendous headwind for the banks. Theyll be hard pressed for their earnings to improve. I agree completely with health care. Everybody does. And i would broaden it. Instead of focusing just on health care, more broadly into technology overall, telecommunications, Financial Services<\/a> innovation and here is why. The companies that will succeed are 21st century companies, not the 20th century. Some quick examples . We have huge examples all over the place. Even utilities can be argued as being 20th century. And they benefit from low Interest Rates<\/a>. We have so many examples its hard to narrow them. Lets bring jon fortt in the conversation. A huge pop in an old tech blackberry now being approached reuters is reporting by samsung. Shares responding but still not quite up at that level in terms of price that was reportedly being bandied about. There would be a number of hurdles before this becomes absolutely real. There are regulatory issues blackberry is a jewel in canada. Samsung is obviously a Korean Company<\/a>, but there are things about this that would make sense. Blackberry is not the phonemaker it was a few years ago. John chen has really limited the phone exposure to blackberry focused it squarely on mobile device management. You can use their Service Software<\/a> to manage iphones, Android Devices<\/a> as well as black blackberryies and other devices. Also on security, and just back in midnovember blackberry had this announcement they would be doing Security Work<\/a> in the enterprise with samsung. Samsung is more of a partner than they had been in the past. So there is a lot of reason to believe that this could eventually happen, but, again, theres a lot of hurdles that they would have to cross before they get to that point. When i recently talked to john chen about how long hed be around leading blackberry he said he was there to get the job done. Didnt sound like he was necessarily planning to be there for years and years. So, you know, this is one to watch. What is there of value in blackberry . Is it the Customer Base<\/a> . What would you be buying . Is it the technology . To me their email still works better than everybody elses. I dont understand the Technology Behind<\/a> that but i know that i feel far more its far more reliable at this point. What exactly are you buying if you buy blackberry . If youre buying blackberry you are buying a number of patents but most specifically youre buying a lot of enterprise capability in software. Not only managing devices, also dealing with secure email. They have a number of contracts with governments and Government Contractors<\/a> that make specialized devices. Thats part of what would make a transaction complicated is there are a number of customers with very high security needs, a number of government that is would want to weigh in on who would be getting access to that type of technology. So its not just canada. Its a number of customers here that could potentially complicate this but there are real assets particularly when you look at how the downside in the hand set market has been minimized and if plaque berry is gaining traction in the Server Software<\/a> it becomes more valuable, if theyre successful in that from here on out. This is not only a nobrainer, i dont see any downside for blackberry and really largely inevitable. I think it will be the harbinger of things to come in 2015. So many Massive Companies<\/a> are sitting on such massive amounts of cash about 2 trillion among the s p 500 alone. Youre going to see this kind of mergermania going on. Is it ultimately in the best interest of shareholders . Does samsung blackberry make sense as a tie up . It certainly can if its strategically sound and i think blackberry has less to lose than samsung does. And at this point lets take a pause and add into the conversation with his take on these markets, noted investor jay jordan from the jordan company. Jay, thank you for your patience. We want to talk a little bit about the markets where you see opportunity, and i cant help but notice you put some money to work in the energy space lately. Are you going to keep doing that . Well, i think were going to slow down. Some of it is in the upstream Energy Market<\/a> but were cautiously looking at it. From a global point of view im very, very concerned and i would probably be the contrarian on the panel. As you know i think asset prices globally are substantially overvalued. As a result of whats happened with the fed and the financial repression and quantitative easing. Once this liquidity gets finally sucked out of the market combined with price of oil under 50 with deflation raising its ugly head and all of the global issues with iran or syria, russia, this isis business and this terrorism, any one of which could be a Tipping Point<\/a> to really play havoc on global markets. So i am very cautious and we are. What were doing is what weve always done through sickles is were buying private companies and were not overleveraging them. And that has served us well over the five cycles i have been in. Jo jay understanding your concern, you have to look at the valuation out there all the time, im sure its frustrating but you still have to put money to work. You recently made an investment in some telecom assets. In other words what pragmatically are you going to do and would you recommend other people with their money should do here even against this backdrop of concern . Well there are Certain Industries<\/a> we like but i think the focus our focus is private, and private is very important to us because it doesnt we dont experience the volatility that you would in the Public Markets<\/a> and the Financial Sector<\/a> and what have you. So we have five global themes that we look at. We do look at energy education, health care, and a number of others. We try to stick to segments that are growing globally and have a great future globally. You know i love what jay had to say and i love him like a sister because what he said if you parse it really carefully, although jay sounded really negative, what he said was im buying carefully and keeping my debt low. Well thats sound advice for anybody. Buy and keep your debt low. Jay . Yes, sir. Were in sync here and weve done well through the cycles and our businesses get through the cycle. We could be heading into another cycle. As you know since we went off the Gold Standard<\/a> we have a cycle every seven to eight years. Well its 20082009, were going to be hitting something soon, and well be prepared for it. It sounds like it. And, jay, thank you for sharing your perspective this hour on these volatile markets. It must be nice to be a little out of the limelight with some of these acquisitions. And guy adami thank you very much. Right on kel. See him on fast money at 5 00. We will be talking about coppers decline with mr. Dennis gartman himself. Dont miss it. Now, when the markets behave like this the voice many people want to hear from is jim cramer. Up next jim joins me for his view on whats going on and where the market is heading. Thats in two minutes. Stay with us. Do y ou like to travel . Im all about free travel babe. Thats what i do. [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. For fastidious librarian emily skinner, each day was fueled by thorough preparation for events to come. Well somewhere along the way emily went right on living. But you see, with the help of her Raymond James<\/a> financial advisor, she had planned for every eventuality. Which meant she continued to have the means to live on. Even at the ripe old age of 187. Life well planned. See what a Raymond James<\/a> advisor can do for you. Welcome back. Its a pretty rough day on wall street for the bulls and there are signs more trouble brewing in areas outside of the stock market. Dom chu rounding up some red flags for us. Dom . So there are a number of different signs traders are watching right now. We speak to a lot of them on the floor of the exchange elsewhere in the markets here but one of the things we want to talk about is whats happening with the overall market and one of the things is yes, stock market related. So this is interesting here because one of the signs people are looking at is the transportation average. It had a strong year last year but in the first part of this year, its showing some signs of weakness and over the past year you can see nice uptrend but right around this righthand side were seeing a little bit of weakness. That may be one of the yellow or red flags traders are seeing right now. Transportation stocks seen by some as a leading indicator for the overall market maybe the economy. If you fast forward to other parts of the market here you take a look at some of the other sectors, some of the other Asset Classes<\/a> were looking at, one of them is also in the commodity side of things. Its not just oil were focusing on here for signs of deflation or slowing growth. One of them is also an agricultural commodity. The it tracks a another of agricultural commodities. You can see a steady downdraft as well over the course of the past seven to eight months. One other place is one a lot of people have been focusing on and thats the strength in the treasury bond and treasury note market. This etf tracks the longer end of the treasury Maturity Curve<\/a> here, so the 20 to 30year cycle for bonds. You can see here its been up about 27 , this etf that tracks the longer end of the treasury curve. When you want to go to find other signs of weakness in the marketplace, people dont go towards Treasury Bonds<\/a> unless theyre scared about something. People dont sell off commodities unless they think theres going to be some fear of at least no inflation, disin disinflation or maybe some deflation. Some things people are watching in the market as possible signs. Joining me with his take on what to watch is mr. Mad money himself cnbcs jim cramer. How you been . Welcome back. It struck me listening to dom theres one thing the areas have in common and its the strong u. S. Dollar. I know we dont talk about that all the time as a real problem. Its supposed to be a good thing for this country. Is it becoming a problem . Well i think that a lot of the industrials are certainly traumatized by a strong dollar at least we expect to see some guide downs from these industrials because of the dollar and were hoping lower gasoline lower energy is going to offset that but clearly there are a lot of the Technology Companies<\/a> that have been slammed because people expect that there will be guide downs because of the weak currencies. And then theres blackberry. What do you make of this news . I was looking, blackberry has a great balance sheet, and i always felt theres got to be someone who wants that install base. A lot of people thought microsoft was interested. Samsung is flailing. Theyll do anything. Put them pass them to blackberry . Samsung is a desperate player right now. It probably suits a desperate move for a desperate player. If im a blackberry shareholder, do i want samsung to buy me . Yeah you want anything. I guess you want 30 . Its like youre in quicksand, they throw you a rope. I dont think you say ill wait for a better rope. Fair point. What parts of the nashthmarket do you like . Health care keeps coming up. Every person we ask, talking the economic piece the outperformance, the fact it can be bullish and a port in the storm, key to a better economy or a weaker one. Where do you see places for investors to get involved in this market . You know what . Im a little more bullish than that in that i can see other than finance, rates are just too low, and other than oil and you got a chance to be able to lighten up on some of the oils today on that spike at the end, i kind of like a lot of stocks. I think you just have to look at domestic. I know health care is terrific. I listened to guy adami. I love guy. Hes dead right. Health care is terrific, but the domestic stocks, when you look at a company like a target which i dont necessarily like here because it just ramped i am salivating for people who dont understand the relationship between disposable income and target to sell target because theyre frightened. I would love a shot at getting into target with Brian Cornell<\/a> doing what hes doing. So youre getting a Second Chance<\/a> to get in these domestic stocks but nobody wants to do that. May i suggest we divide by ten, kelly . I remember in the october november period 1987 i was dealing with a market that was at 1770 and it would got down 18 points and i would say, hey, lets pick. Time to get to work. Exactly. This reminds me of the retail sales report the conversation we were having earlier. You brought up target but is it possible people arent spending at target but at netflix and health care prem numiums or their data plan . I do a lot of bottoms up analysis and i checked with pretty much every major retailer. I didnt find a retailer that had down numbers. We look at the numbers and say, you know what . I am sometimes just going to say those numbers make no sense. They may make sense to big fixed income traders, to big s p traders, but if you do bottoms up like i do which believe me is a real pain in the butt i didnt have to do it maybe sometime i wont have to but its just contrary to the boots on the ground approach. I always trust boots on the ground. What about what jay jordan just told us . Hes like im glad to be in the private markets and hes even dabbled in the energy space. Hes sort of saying he doesnt have to worry about huge Price Fluctuations<\/a> day to day. Is it unfair for Retail Investors<\/a> that they do or is it a reality. I think you have to be the latter or decide im going to own an index fund and i will contribute 1 12 of my contribution every month. Which is absolutely fine and i dont want to do oil and gas. Theres so many more shoes to drop. Its Imelda Marcos<\/a> closet in that area. Ill stay out. When you have situation where is the market is being driven by a Mood Disorder<\/a> and theyre throwing out stocks there are opportunities. We didnt have this in 2014. It was placid. Tonight on mad money im comparing 2014 to a lap doing. 2015 is a tiger with a thorn in its paw. Okay. Just a final question then jim. Because i cant stop thinking a little bit about what further risks might be out there if were in a situation where the dollar squeezes up partly on global positioning, by the way. Theres been some nice work on that. The dollar squeezes up, Commodity Prices<\/a> keep going down, maybe the treasuries keep rising and price falling in yield, et cetera. If thats the environment were being handed then what works . Have a restoration of hardware which buys all its stuff oversea was a strong dollar and marks it up. I think what works is everything that actually is a taker of commodity and really does better. Look, in that environment with rates going down go buy chipotle which doesnt get grazed by a pork recall. You can buy domestic stuff. You could even buy darden. Actually just buy olive garden. Can you believe it . Its going higher in that environment. You can go buy target. Its going higher. You can buy white wave its going higher. Jim, are you buying tankers, oil tankers . Do you see whats happening with some of the rates . Theyre all look the rates are going up i understand the contango trade but you got to be very careful because three always seems to be a surfeit of tankers when you least expect them. Take a look online you can Google Images<\/a> of oil tankers in the major ports. Theyre a Good Platform<\/a> to get married on. You have like 500 people on top of one of those but it smells bad. I hope youre not considering it. Debated it. Bjorn hanson offered me one. I said you need a lot of deodorizers. Thank you, jim. Tonight on mad money its a biotech bonanza. He will intek with the ceo of he is peeron. Global economic fares haveears have been weighing on the u. S. Economy but could that reverse if europe begins a huge economic stimulus overseas . Thats up next. If you thought low gasoline prices would spark stronger consumer sales think again. Why did Holiday Shopping<\/a> sales come in a bit weaker than expected . Were going to ring up the state of the consumer coming up on the closing bell. Welcome back. Are the investors selling right now. Walking in a buzz saw next week when europes central bank is meeting a week from tomorrow many think it will finally unleash its own Bond Buying Program<\/a> that the market will cheer. Lets bring in David Melpass<\/a> and david hale. David melpass well start with you. People who get out of the market are worried here. Are they not anticipating a potential boon from europe next week . Good afternoon. I think weve already seen the market price in the qe that the ecb will do next week. I dont think it will be very powerful. Im more thinking were going into a phase of Global Rebalancing<\/a> where people will get tired of just being in the u. S. And will take a look at some of the emerging markets, oil, the euro and so on. David hale whats your speck speck tiff . I think the markets have been discounting quantitative easing for several weeks. Bond yields are at record low levels. Stock markets have been resilient. So i do think the expectation of this happening is now broadly in the market because of comments by both draghi and other members of the Monetary Policy<\/a> council. I think the davids are both correct. But im not necessarily convinced the governments are going to act. Routinely, notoriously governments resist doing anything until they feel they have no other choice. Are their backs really against the wall . The fact theyre going to disappoint the markets horribly do they really care enough to act . Are you talking about the central bank or talking about the major governments . The actual federal governments fail to act but the ecb has managed to they are only doing it because the governments have failed so are they yet at the point of saying okay im giving up on you guys, were going to take over and do it. Do you think they will deliver next week . Do they have to do quezing . Theres no doubt they have to do it. But do they acknowledge that . Well i think draghi does. I think draghi has certainly, but obviously markell is the big wildcard but they dont necessarily need her and it doesnt necessarily need to be the big bazooka. It could be the beginning of an aggressive plan but the problem is the market is expecting an aggressive plan. It could be the beginning phases of many things to come which is what im thinking might happen. So yeah okay the markets sell off, then theres your opportunity to look at some stocks. Did you look at the article where he generally leaked the whole thing to germany today . Did that convince you in any way youre going to get enough or did that convince you its not going to be enough david hale . I agree in general with michelle that draghi has surprised people on the Positive Side<\/a> regularly enough that we ought to expect a decent amount ofq qe. My concern is qe i dont think will work very well. The bond yields are already low. The ecb is going to finance all those bond purchases with bank financing. In the u. S. 18 of barqnk assets are stuck at the fed, dead money. So its not really a good move for europe thats going to cause stimulus. David hale do you think it will work and do you think were going to see it next week and if so, how much . I think it will be 500 billion euros at least and the primary impact will come through a following currency. The european currency has fallen from 1. 35 a year ago to about 1. 18 in recent days. It could easily drop to 1. 1. Wow. If things get bad enough going out 6 months or 8 months it might be parity with the u. S. Dollar. Monetary transmission mechanism will be the currency. David malpass, ill give you the last word. If that happens, what does it mean for us here . As long as the euro holds together, meaning you dont see it split up between france germany, italy and so on then i think what were looking at is a weakness in europe. Were used to that and then we have to look at whether we do tax reform, for example, the things that really matter here. Okay. Both of you davids, thank you so much. Thanks for being here this afternoon and giving us a sense of whats priced into the markets. Well send it out to jon fortt with a quick market flash for us. Hi jon. Is his mic on . I dont hear him. Sorry about that. Were going to take a quick break, come back to jon on this breaking news. Straight ahead, were also going to talk about plunging gasoline prices and whether consumers are or are not spending the extra cash thats given to them. Thats coming up. And with oil below 50, energy firms starting to scale back hiring. And well see if that could give a jolt to a labor market that has finally seemed to be back on track. Stay tuned. What makes it an suv is what you can get into it. [container door closing] what makes it an nx is what you can get out of it. Introducing the firstever lexus nx turbo and hybrid. Once you go beyond utility theres no going back. Being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Now lets send it over to jon fortt. Whats going on out there . Im trying out all the cameras in the newsroom. Turns out this news is on adobe. Its up just over 1 after hours on news that they have authorized actually up almost 2 on news theyve authorized an additional 2 billion for stock buybacks. This kind of refreshes a previous 2 billion authorization that they had that expired at the end of last fiscal year. The stock is up above 70 bucks per share. The highs in the mid70s. Not sure how much theyll repurchase at these exact levels but this authorization is good through 2017. So 2 billion for adobe. The stock is up after hours. And a the buy back train continues. Pantheon macro had a big report on buy backs. Good train reading. It turned out it was not such a happy holiday for retailers and that was with gas prices lower in december. Courtney reagan is joining us with the results that were just out today. What did they find . Kelly, perhaps there were fewer gifts under the Christmas Trees<\/a> this year or maybe as some economists are saying the governments retail sales figure is wrong. Well, its a fact that prices at the pump have been lower for more than 103 days. Drivers may not be diverting those savings into retail spending. Census bureau says retail sales fell 0. 9 in december. The largest decrease in 11 months. Those readings are part of the equation that the National Retail<\/a> federations economists use to tabulate the holiday sales results. According to the nrf total holiday sales in store and online rose 4. 0 0. 1 lower than the groups forecast for the season with total sales at 616. 1 billion, that is 800 million shy of the initial estimate. Separating out sales online catalog, things not made in stores, those increased 6. 8 . Also well shy of the 8 to 11 growth that was forecast. Some of the biggest retail stock losers include guess, new york and company, footfootlocker and pvh. Courtney thank you very much. So will a lower i cant say that five times first. Will Lower Oil Prices<\/a> give retail a boost eventually. Monica mada joins us now with our panel. Monica, what do you make of the diverging retail numbers . Well i think we saw this coming a little bit in november and december. It was a highly promotional holiday season. Retail he isers retailers were breaking out all the stops to get consumers into the store. The consumers was able to satisfy everybody on the Holiday Shopping<\/a> list and save money because the retailers were putting every promotion under the sun out there. In my own facebook feed i had three pictures from people putting low prices at the pump. People are excited. The average consumer drives by 12 gas stations a day. Thats a point. Monica how much do you think the west coast port issue played in the overall Sales Numbers<\/a> . And how does that play out with gift cards . Because weve been hearing that stores didnt have the merchandise, their inventories were very lean and so as a result you had consumers doing more on the gift card thing and so as a result january, february, march might be better than december november. Thats a very interesting point. Gift cards remain actually on surveys one of the most desirable giftable items among recipients of gifts. So i think gift cards are popular just because people actually want them. They dont want to return the ugly sweater. Theyd rather pick it out themselves. As far as the port issue goes most retailers, bear in mind place their inventory orders well in advance of the season. So you had people placing orders six, seven months before and then again you had the wholesalers stocking up those items in advance. I dont think the port issue played as much of an impact in these lower retail numbers. I think it was consumers taking their time to adjust to these savings that theyre seeing with gas prices. If theyre getting money at home, they still have higher rents to contend with Higher Health<\/a> care costs to contend with. That doesnt show up in the retail numbers and, again, retailers had great promotions. You could still get everything you wanted this year and save money. Rick and michelle where do you think this extra consumer dollar is going . I think ultimately its going to be going back into the marketplace, but i think into stocks . Both into investing, paying down debt buying investments paying down debt. A big theme. People are wondering where are these missing dollars. Its paying down debt. Were seeing dramatic reduction in Consumer Debt<\/a> and theres no question this is where the money is coming from. Consumers are loving this. Consumers are not dumb. When you give them newfound cash, they are loving it because there are things theyve been wanting to do they havent been able to do and now they can. This has been equivalent to four times their pay hike. The amount of money theyre saving at the gas pump. This is huge for the american consumer. I think that last point is super important. The numbers we saw today wont be nearly as relevant. If Oil Prices Stay<\/a> low, boom i think six months next year youre going to see tremendous amounts of Consumer Spending<\/a>. Not to mention the fact Natural Gas Prices<\/a> are down so much and the costs of these companies is coming down substantially. If you have traffic improve a little bit and you have the cost structure coming down a little bit from the big companies, profitability is going to be that much better. And it all happened just as the winter hit so home heating costs are dropping as well. Its a double benefit. Last word to you, monica. I think you will see more optimism from the consumer and that materialize into sales going into the first and Second Quarter<\/a> of the year. Again, consumers are cynical. Theyve been beat over the head the last several years. Theyre not going to open up their wallets around start spending on discretionary. They are reducing debt and theyre going to take their time to really savor this. Coming up low Oil Prices May<\/a> be a net positive for america, but if you work in the sector its not good news. The plunge is now costing jobs. Well get a realtime report on layoffs, and jpmorgan boss jamie dimon saying things are, quote, under assault. You Better Believe<\/a> that made the hot list. Well get all the stories topping cnbc. Com straight ahead. Stay tuned. Stay tuned. Not everyone around the country is celebrateing the drop in oil and gas prices. Mary thompson joins with the results of a hiring survey. A oil prices down 50 in the last six months. A semi annual survey finds theyre dialing back plans for hiring. More expect they will cut jobs from now to july. 36 of managers expect to cut jobs in the first half of the year and thats up from 11 who are planning cutbacks in the second half of last year. Meanwhile, a percentage of firms expecting to boost hiring they dropped dramatically to 22 of those surveyed from 50 with 44 expecting to do less hiring than they did six months ago. An increase from the 12 who say theyd slow hiring in the last half of last year. Almost 30 though expecting payroll levels to stay the same over the next six months. The volatility in the Energy Market<\/a>s providing some upside though to firms who are still looking for workers. More than half of the managers say they are seeing an increase in the number of workers applying for available jobs while fewer of the lucky ones that actually land the job are, a, asking for more money and, b, rejecting other offers suggesting workers are putting more of a premium on the current offers fearing better ones may not be out there in the future. Kelly . Mary stay right there. We want to get some thoughts on this from the panel. One of the most important things from someone laid off from the sector is whether they find new work. They will probably have a struggle just like the whole country experienced in the aftermath of 08. Were talking about the Energy Sector<\/a>. This cannot be a shock to anybody. They go from the worst to the best and back again. And so it goes. What i find most excite being this survey is that only 44 say theyre going to reduce hiring. Oh come on. Thats a big number. I would have thought all of them would. Maybe its a bad sign more of them arent. Yes, exactly. And maybe theres a lot more to come theyre trying to be too optimistic. It may be worse than what the numbers say. If the oil prices say low, its inevitable isnt it . I would agree 100 . A lot of people are questioning, okay, weve dealt with these kind of declines before. The question is how long whats the duration here . And six months you might see a very Different Survey<\/a> than youve seen with this one. Whats interesting is six months ago these companies were complaining they couldnt find workers. And so its kind of interesting to see this dynamic play out and that might be to your point that maybe 44 are only looking to reduce because you know what . They still havent found enough to do what they wanted them to do in the first place. And maybe theyre being a little more prudent and pragmatic and hiring in first place. They didnt overhire before. They couldnt find the people. Remember what csx told us yesterday and what we were hearing today. There hasnt been any slowdown in production in this country at all, mary. So were talking about a phenomena that hasnt even hit home yet so in order for this to happen what six months 12 months beyond that . They have high yield debt that goes out for five years. I think in six months you might see things change a bit again if we see Oil Prices Stay<\/a> at these levels. One thing i do want to note i was speaking to someone who actually said given that there was a need for skilled workers in the oil industry now that some of the producers or Companies May<\/a> be laying off, those companies that have a little extra cash laying around maybe arent cutting back production as much. This could be a boon for them because they can pick off some of the workers from their competitors at this time. So those who have the money to pay these workers, they actually may benefit. All right. Mary thompson. To get the skilled workers they need. Thank you very much. Important perspective on this area. The market selloff is the hot topic and our website covered it from all angles. Allen wastler is next with the hot list. Tune in the closing bell and well be joined by jim grant weighing in on whether or not the fed is getting it right with their current rate time line and whether 2015 is proving to be the year of stock picking. You wont want to miss it. The dramatic moves in stocks had people clicking into cnbc. Com for the whole hot list. Lets check in with allen wastler. You know, when the market goes wild like it did today, people just pile in trying to figure out what happened . So those are the market goes wild people pile in trying to figure out what happened. P we have a wrap up of why commodities are taking a beat willing. Basically we go through what is happening with oil, copper supply issues. And corn was a bumper crop soybeans, cotton others that have had great crops so theyre getting hit, as well. So people loving that. And we also have the wise men effect where people are seeking out advice. We have some from oneal securities. He broke down the Technical Levels<\/a> and psychology hes arguing is more about frustration, not so much panic. Its people frustrated with Monetary Policy<\/a> frustrated with government fiscal policy and Interest Rates<\/a> flipflopping. So thats why ken any is at. People seem interested in that. And then finally, jamie dimon, when he speak, people listen. And today he was on the defensive saying banks are under underedunder undered assault and he thinks that break up notion is poppycock. So people love jamie dimon. We should make it clear poppycock is allens word here. Thats me. Thank you, allen. Good to see you. Its waepbeen a rough ride. Where the downward trend continue . Final thoughts when we come back. You just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions<\/a> and a thousand other things. So you call pwc. The right people to get the extraordinary done. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Sgleern sgleern. Before the bell, bank off america, citi black rock. How will results impact trading. Banks very very important to see if there are some that can outrchl in rchlperform in terms of better cost control, better management. Loan growth was a bright spot but there were so many other pieces that were disappointing that well have to see. Those expectations were a lot lower than citigroup and bank of america, but if they dont deliver, i think it takes another leg down. Earnings season feels like when the real push will come to shove. But a couple weeks still for that. And will this be the quarter where we really start to see it. A little lagging. And they will start giving us guidance for sure. And by the time they announce their earnings of what happened last quarter, the new level of Oil Prices May<\/a> just unwind. We will get a taste, though. And they are the behemoth. If they can do okay, maybe that will settle shallome down. I found csx interesting. We keep coming back to it. But here is a company that basically is carrying the oil on its rails and seeing no effect. Thats what Michael Moore<\/a> told us, no effect yet. They cant cut production yet. And consumers are still driving. So we need the product. Were just altering what were paying for it. And were not sure production necessarily falls. We know Production Growth<\/a> is coming to a complete stand still. When you just pump the baby for cash flow. If youre audi a rabnd you had saudi arabia. But what puts the bottom in oil prices. We were saying if its below 70, we have a problem. If it goes below 60 well super v. A problem. Do we say 40 . At some point the price drops enough and it starts to incentivize more companies. And well see m and a, too. Her started to mark the activity picking up and weve followed at least a couple. Complaint really count on m a to be the tell. And i do think things will get a whole lot worse. But those Ten Companies<\/a> in a lot of trouble right now. But you can bet exxon and chevron are licking their lips wanting to do something. But they have the luxury of time. A lot of others will be reaping the benefit. So if the average investor who is diversified, this is more good than bad. Want to ask you about something jim paulson at wells wrote about. He went back, looked at some work that i think ken french had done on the stock market and said one thing that is gift this time from the tech bubble if you will, the tech bubble overall market multiple was high because tech stocks was really high. Whats happened this time around is the typical company, valuation is actually higher now than it was then. You just have a lot of low people dragging on the market. So its just an interesting way it talk about valuation and how much were strepped. Does that worry you when youre talking about people getting into the stock market . No because if you look at historical number, sure, those numbers are higher than average, but if you look at the growth of earnings and the stability of companies, the cash theyre sitting on, the opportunities for the next 5, 10 years are more than compensating for the risks. And you have much lower Interest Rates<\/a> than we did back in the tech bubble and probably going lower. So that is pretty darn good for equities and for valuations. Do we still have low Interest Rates<\/a> because of the tech bubble . Isnt that what started it . The bursting is what brought the Interest Rates<\/a> down. And when greenspan was talking about a conundrum back in the day, all the things difficult to grapple with today seem 30 times more so. I dont know where that leaves europe when it has to figure out how aggressive to be for its central bank here next week. Given the whole situation were facing on a global basis and the ecb, much rather to be on u. S. Soil than anywhere else. Especially with a strong dollar. I think ive heard people lately joking about shopping for real estate in greece and now after we heard our guest talking about the euro going to parity with the dollar well if you buy that property in greece, you have to convert your dollars to euros. If the euro goes down and the rot goes done you get a double exam any. Unbelievable. Guys, thank you for being here. Fast money coming up in just a few moments. Melissa lee, are you shopping for greek real estate . Why not currently. Obviously youve noticed huge swings. Well give you the one pick to weather the volatility. Cant wait. Straight to you. Live from the Nasdaq Market<\/a> site im melissa lee. Break manage just theing this just the past hour samsung approaching blackberry for potential acquisition. And teslas rough ride the stock sinking after the ceo saying the company would not turn a profit for another five years. But first, tonights top story. Return the volatility. Stocks sinking today after weaker than expected retail Sales Numbers<\/a>. And even with a massive midday closing in the red. Are investors concerned about Global Growth<\/a> and","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia904707.us.archive.org\/3\/items\/CNBC_20150114_200000_Closing_Bell\/CNBC_20150114_200000_Closing_Bell.thumbs\/CNBC_20150114_200000_Closing_Bell_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240621T12:35:10+00:00"}