Here. That ipo pricing at 14 last night. But right now you cannot get it for that price because you can see there its up to almost 24 bucks on the session. A huge move day one for the Cloud Company despite vocal skeptics. Theyre questioning their profitability. This feels like the debates we were having back in the 90s during the dotcom boom. Im not saying thats the case here, but off booming ipo with people wonder wrg is the money right now. Another bombshell from the president s tax plan. President obama wants to challenge College Change i should say College Savings plans known as 529s so the gains would be taxed as regular income. Right now they are taxedfree as you know as long as the money is used for a childs college education. The president says these plans only help rich people not the middle class and we will put it to the test coming up on todays closing bell. This was all part of the state of the union. Making Free Community college. We have heard jeb bush and others say it is hypocritical to do that while taxes 529s. Here is where we stand. Down triple digits on the session. The dow is off 93 points. The s p is giving up about 8 or nearly half a percent there as well. The nasdaq interestingly is managing to stay in the green but only by about five points at the moment. Lets talk about we have a lot of things to get to in the closing bell exchange. Joining us mark madison, Peter Anderson from Congress Wealth management. Steven parker. Michael jones from Riverfront Investment Group and our own Rick Santelli joining us as well. Michael jones, you are long europe right now. Were you long before the ecb move this week or in anticipation of it or why would you like european equities . We have been long europe for a while. Long the exporters and short the currency, and obviously with the quantitative easing move that the ecb did yesterday, that trade has come ripe in a really big way. The great thing about it is when youre long the exporters, youre long the companies that automatically get an earnings boost when the euro goes down. Youre also long the best companies in the european markets because these are the ones that can compete on a global scale and that means theyre very efficiently run and well managed. Peter anderson, are you guys buying europe . Well you know weve always been somewhat exposed to europe but right now were still waiting to see how that plays out, kelly. Theres still a lot of things im kind of disappointed january started the way it did. Im still kind of puzzled about the u. S. Consumer too. I thought i was very disappointed in the december sales report. Im hoping that its going to be revised upward because, you know, kelly, it just doesnt make sense to me. With the low fuel prices and the consumer sentiment, one would have thought that we would start seeing that playing out in the numbers, but lets hope that well see it through january and february too. Steven parker you like japan. Thats where youre putting some International Money to work right now, right . We actually think, first of all, we saw what draghi did yesterday. The bank of japan has been on this trade for a while. They continue to be the most Aggressive Central Bank in the world. A couple things markets arent as focused on. Theyre a huge oil importer. They will get a huge boost from the fall in oil prices. The Japanese Corporate sector has been one of the strongest in the world over the last couple years. Japanese companies have grown earnings 80 over the last two years. Multiples have come down over that time period. Theyre more focused on profitability, more focused on shareholder return and theyre cheaper than the u. S. And even europe. Makes for an interesting discussion about buying the places where all of this quantitative easing has contributed to lower currency prices and what not, but i want to go back peter andersen, your point about the u. S. Consumer is interesting. We got that disappointing december retail sales report but look at starbucks today. I cant its up like 6 and this after an incredit you believe run. What do you make of it . Are they taking share from everybody or is the consumer in better shape than we think . Look at u. P. S. And mcdonalds . Were getting mixed signals, and i think thats whats so frustrating. By now i think we would have thought all those names, kelly, would have been performing well and surprising us on the upside. Even mcdonalds call im surprised on the upside in the u. S. They did but im sticking with the fact that all of these companies should be unilaterally moving up. Jcpenney did okay last december. But as i said were not seeing it across the board, and the math seems to work out, you know, as a stimulus for the low gas prices. We know consumers are not banking that cash. So where are they going . Just to starbucks . I dont think. Mark madsen what do you think of the u. S. Market right now . Were all focusing for obvious reasons on International Investing whether its europe or japan right now but what about the good old u. S. Ofa a . Are we still in value territory . Only 49 of the worlds capitalization are in the United States. Theres more opportunities global than here. What a lot of investors are doing is making the mistake of chasing the s p 500 because it was one of the number one performing asset categories. You need to diversify globally. Were in over 46 countries and that includes not only europe but asia and emerging markets. Everybody is running away from emerging markets right now because theyve been down. You have to buy the thing thats down. Thats emerging markets and rebalance your portfolio. Wow. Thats a you have to listen mark, you want to get into emerging markets when you have commodities look at oil again. There was no bounce. When the u. S. Dollar is depreciating and Everything Else overseas is less valuable. What you have to do to be a successful long Term Investor is force yourself to do the things people arent willing to do. If you wait for the naverrative to go your way, then youre going the wrong way. Rebalance, force yourself to buy the thing thats low. You dont get to know the future and how its going to come back. Eventually it does. Rick santelli i have to keep recalibrating my feelings on u. S. Tresh risasuries on the long side. I was praying to get upset when they went below on the 2. 5 on the 30year. Were well below those now and were all sitting around going lets talk about oil, lets talk about europe or japan. What about these low treasury yields here . And they are low, but, you know, just to give you a couple of glimpses as to why maybe its more prudent not to have huge bias for lower rates at least for the next two or three weeks. First of all, were virtually unchanged. Down a couple basis points for the week on 10s. Down nine basis points on bunds. Were seeing the difference between the two widen. Lately when this happens, be a little careful. It means our treasuries most likely are going to disengage a little bit. Maybe yields float a bit higher. Remember theres three big driving forces. The relative value trade with european low yields. After what draghi did, this could be under review. The second issue is its the only hedge against soft equities. And since we have europe doingq e, there may be less soft equities. And the third category, of course, is lower economic horse power and even though the panel may not agree, i think thats the one turnstile out of the three that is still functioning. So you might see rates float up a bit but, remember were down 36 basis points on the year up until the 23rd of last year we were off about 28 basis points. Its amazing how similar the first seven weeks of last year and this year continue to be from the Vantage Point of Interest Rates. Thats so true. Michael jones, just go back to the point about will the u. S. Consumer ultimately benefit. You like some consumer plays were going to talk about next hour. It has to do with sneakers. Absolutely. We think footlocker is one of the best valued names in the space. We also i mean, its easy to get caught up in the government data. Its all backward looking. It debtsgets revised significantly. The sentiment data is the more real time measure of whats happening. We look at ever corps isi that does a great survey of retailers. The week over week changes from the couple weeks before christmas to the couple weeks after christmas, the strongest they have seen in 20 years. That makes nor sense. More sense. You think theyre going to be buying sneakers. Youre taking it to restaurants and youre going to be buying that high end sneaker you might have thought was out of your price range when you had to fill your gas at 50 bucks. Stephen, you make a good case for japan because of the Lower Energy Costs right now. Are you ready to buy energy itself at this point . So for some of our opportunistic clients we think theres a trade short term in the energy stocks. Sentiment has gotten really really negative we all expect it to go to 30. Its amazing how quickly thats just become consensus. Thats a big leg down from here. So i think we have to get ready for longer term Lower Energy Prices but when sentiment gets that extreme, if youre willing to take a little bit of risk in portfolios and for the right types of clients weve been buying some energy stocks. If i could add onto that, there is a baby thats been thrown out with the bath water. Mlps have traded down as hard as energy, but the storage and transportation, thats the mlps, theyre still showing double digit earnings gains where as the rest of the energy space has been wiped out. If you want to step in and buy something in energy the mlps are a safe place to start scaling in. We have a lot of supply thats for sure. Gentlemen, thank you all. Appreciate it. Have a good weekend. Tgif. 50 minutes to go into the close. The dow sunday pressure off 90 points. Oil was lower again today as we were just discussing. Nasdaq is trying to buck the trend. Its up 0. 2 . The s p and the dow struggling to stay positive for this new year so far. When we come back Morgan Stanleys chief equity strategist will tell us if hes still bullish on u. S. Stocks even after this shaky start we have had this year so far. Wait until you hear how adam is playing the collapse in oil and the euro as well. Thats coming up with adam parker. Also happening today, box, there it is hitting a home run on the first day of trade after pricing last night at 14 a share. Its well above that now. Trading up about 10 or 70 . Pros will shed some light on where they think the Cloud Storage company goes from here when we continue on the closing bell. Recently, a 1954 mercedesbenz grand prix race car made history when it sold for a record price of just under 30 million. And now, another mercedesbenz makes history selling at just over 30,000. And to think this one actually has a surroundsound stereo. The 2015 cla. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. 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. Where they think the cloud sexy. Go national. Go like a pro. Down day. Kind of a mixed day. Lets face it the Technology Sector is doing okay so nasdaq is higher but the s p and dow is lower. Of the ten sectors, two are positive. What a volatile week for the utilities. Wednesday they hit an alltime high. Yesterday they were the biggest loser, and now the biggest gainer. Up 4 . On the dow, ge is the strongest performer. I dont know the last time we could say that. Its almost 1. 5 . Dom chu is keeping an eye on the stocks that are hot and not so much. U. P. S. Is plummeting. Hit hard after forecasting Fourth Quarter earnings below expectations. Rival fed ex fell on that use as well in sympathy forcing it to reaffirm its guidance for the year. Kimberly clark moving lower as well. The personal Consumer Products maker gave a disappointing outlook for 2015. Those shares down by 6 . Lululemon rose after jpmorgan upgraded the fitness apparel apparelmaker to overweight from neutral. And were going to end with go pro gaining ground after signing an agreement with the National Hockey league that will allow fans to watch hockey from a players perspective. Kelly, bill the nhl and go pro looking to make things more exciting for hockey fans around america. Thats fascinating. Shares up 7 . Stocks generally trying to post gains this week but its been a wild start to the year. My next guest says theres a lot of pessimism still out there that could create an opportunity for investors. Lets bring in adam parker chief u. S. Equity strategist at morgan stanley. Happy new year. Happy new year to you, too. So first of all what do you make of this stutter step that weve had at the beginning of the year here . Does it feel like it is bottoming pattern or a topping pattern or what do you see here . Look im pullish. I think the market is only a couple percent below its alltime high. To me what matters is earnings and we think earnings will go 6 to 7 on an operating basis this year. You have over a 2 net buyback on top of that and then you also have almost a 2 dividend yield. So sort of an 11 total return base case. If youre bearish, you must believe earnings are going to decline and i dont think thats the right way to position the portfolio. But we have seen estimates revised lower in terms of earnings. Most notably in energy but even just generally speaking. So if that continues to happen for whatever reason strong dollar, et cetera, you cant overlook the effect that must be having on the market and maybe stretching the valuation a little bit here. So let me give you some details on this because, you know, there is a pattern where the sell side and management teams expectations for earnings can be too optimistic. Theres been 39 years theres been a place where analysts have posted estimates sell side. It started in 1976 and through 2014, 39 years. In 33 of those years the january bottom up best miss were too high. All six yerpars they were too low were recession years. What i think is interesting right now is that the 2015 earnings, it could be the first time in 40 years where were not one year off the recession and the january numbers are achievable and the reason is theyve come down so sharply from 134 down to about 125 now, 9 down in the last nine or ten weeks. So the expect tabss are i think pretty achievable for this year. Only for 6 growth. So i think theres upside because nobody has raised the numbers. In fact, in so sector out of the ten sectors are estimates up. Only down. So i think theres an asymmetry guys where if youre an energy analyst, you had to cut your numbers. If youre a consumer analyst you didnt have to raise them. I feel pretty good about numbers. I see you like Consumer Discretionary. Youre not alone in that one. I get that play but energy. You like that. Where is the Earnings Growth going to come from in that sector . Sure. So look i think here you have three reasons to own the stocks. One, theyre cyclical. All seven times they have underperformed by this much in the last 40 years. Subsequently outperformed six months later. I feel like sentiment is that things are going to get worse. In fact, i think sentiment is more negative at 45, 50 brent than it was at 100. That doesnt make sense to me. Two, you have to be anticipatory. You have to buy the stocks two to three months before the earnings revisions bottom. Thats been the historical pattern. By the time oil rises, you have missed a big chunk of the return. Three is the valuation. These stocks are cheap on price to book cheap to ebitda. Those were the two most effective metrics for predicting. I want to buy cyclical stocks. Thats my case for getting this in there. Whats your price target for the s p. Around 11 upside in line with what i told you is our Earnings Growth plus the buyback plus the dividend yield. And a the dividend yield, this is one where theres sort of half the street is split thinking it could go lower because of energy. The other half thinks maybe theres some areas that might increase it. If investors are more interested in the yield at this point, where would you direct them . Challenge is expensive sectors are ones where dividend yields are high. Utilities is the most expense tiff sector. What you have to do is do individual security selection where you feel safe about it. One thing i can tell from you the quantitative perspective is dividend yield level is overvalued over history and Dividend Growth isnt. Im focusing on stuff 2 , 3 before we let you go what areas i know you cant get too specific but who has room to grow their dividend do you think . Theres a number of ideas youve have where payout ratios are below 50 . Payout ratios are very low versus history. I think theres ample room for kchs companies to take them up, consumers, Health Care Select technology, financials. Theres actually a number of ideas there. Adam good to see you. Thank you. Appreciate your thoughts. Have a great weekend, be well. Hes the second guest weve had in the last 15 minutes who says the sentiment on oil is so bearish theyre willing to step in at this point. I know but i know. My stomach is in knots every time i hear it. Were going to move on as she unknotted her stomach. 40 minutes left in the trading session here. The dow down 94 points near the lows of the session with the s p down 7. Nasdaq though is trading higher. It is those energy names weighing on the dow and on the s p. Exxon certainly feeling the heat today although ge had a little bit better numbers in its Energy Division than expected and the shares are up accordingly. Up next currency wars how to make sure youre not losing here. You will stay with us to find out more as Central Banks