Biggest gain since june of 2012. Crude prices rallying. Now 6 as you can see to 47. 41 on west texas crude. Weve given back some gains. The gains we saw on the settle. Nevertheless, enough po move theto move the markets off the low. Meanwhile, its the hottest ipo weve seen in some time. Were talking about shake shack. Up 132 or nearly 28 from its opening price. The burger destination causing a big commotion in the neighborhood. These are the lines outside until just about an hour ago. They had set up popup locations for the ipo assignment. They were free, open to the public. We both couldnt believe how long this line was. Look at it there. Stretching all the way down broad street. The valuation i read for where were trading on shake shack, 26 27 million per outlet. Not bad. Well watch as they continue to expand. By the way, guys down here on the floor arent too maple leaf. They didnt get those shake shack burgers. They didnt get them. Jpmorgan was the lead underwriter for the deal here. Theres jamie dimon chowing down on his shake shack joined by vincent, doug and thelma ferguson. Simon, a lot of people down here were waiting on those burgers. They didnt come. You might want to send a few more around. I like it. Give it to the people. Also today add bill gates to the list of some of the worlds top minds that think that Artificial Intelligence poses a genuine risk to mankinds existence. Elon musk also said it on this show as did Stephen Hawking. We explore why theyre so worried later on the closing bell. And here is where we stand in the markets right now. In the final hour of trade, the dow is off 110 points. The s p is down 10. The nasdaq off 14. A lot of moves to watch on the indexes. We have visas four for one split, of course the underperformance from chevron weighing on the dow after suspending its Buyback Program but a late day big move in crude. Lets get more on this enormous move in the oil markets. Jackie deangelis, whats going on . A lot of buying into the close, a spike of 8 . Wti settling at 48. 24 on the day. Brent crude around 52. Traders are saying this has to do with chevron and its cap ex cuts adding onto several companies that have cut Capital Expenditures and also the reduction that weve seen in rig counts. Traders are finally starting to believe that we are going to see production drop, at least in the United States, and that is going to reduce supply. Also, it was said earlier this week some thought prices were bottoming. We were at 11747 tth 1. 47147 147 in 2008. Are people calling the bottom . Theyre not calling the bottom, theyre scared to do it but theyre talking about it. Jackie di angeles at the new york merck. For more were joined by Peter Andersen larry mcdonald, Mike Gina Sanchez is also with us and our very own rick santelli. Where should we start . Lets talk about the moves weve had in the market . Peter andersen id love your take. Is this market all about oil . Are you surprised stocks havent reacted better or is it interesting the way we have these cross currents between Oil Moving Higher in the session but chevron really stealing the show and perhaps indicating as jackie said that maybe todays move isnt yet a bottom . Yeah i think that its very, very hard to call the bottom. Ill tell you how were playing it right now is that i am totally out of all Energy Stocks and i have been out of Energy Stocks for the past two months. You know even if you look at the high yield market which i spend a lot of time looking at to get a signal for stocks i looked at 90 stocks out there that have high yield beyond rankings. All 90 of them except for 9 are in their bottom returns for the past three months. I know thats a technical but let me simplify that for you. What thats Say Something even the high yield investors are not ready to jump in yet. And they will be the first ones that you will see starting to jump in and moving their high yield bonds up but that isnt happening yet. I mean the most obvious question to ask you, peter, is when you would get back in. I guess a lot of that is going to be based as far as the oil majors are concerned on whether we get the dividend cuts and importantly with chevron, thats what youve seen today, a cut back on the return of cash. You didnt see it so much with royal dutch shell, it was more the cap ex earlier in the week. Obviously as we start this part of the earnings season, thats absolutely key. And, you know, the other thing is they probably wont have to cut the dividends here. What they will probably do is even with the cap ex say they start spending more on cap ex so they dont cut back, they will still be able to go to the bond market and borrow money to pay that dividend so im not watching the difficultvidend as an early indicator of health. Instead what im watching are bond spreads and when they start tightening, that will tell you that a lot of people are starting to call that bottom but as i said earlier, its not happening yet. Thats a great point, peter. Gina, lets talk about the fundamentals for the u. S. Economy given all of this. The data this morning a little mixed, but the one positive does seem to be u. S. Consumption. Do you think thats going to continue . Well are you asking me. Gina sanchez. Go ahead, gina. Whats helping that is obviously cheap gas prices. The challenge is that it hasnt translated to the big move we were hoping for, particularly in retail and consumption but we are seeing some benefits and that should continue as long as oil remains low. Now, you know, thats obviously a big question. My view on that is that, you know, the saudis are determined to shake the shale players out of the market. Theyre not saying that explicitly, but thats clearly an option. The problem is that the shale players can shut down and get back in relatively easily. Its not the same as a rig. So, you know, there is probably going to be some cuts but i think this is going to be a volatile market thats going to bounce low for a while. So that will be beneficial. My challenge is that i think that the market the equity markets, have priced in a pretty robust recovery and robust growth, and were starting to see some questions around that. Absolutely. Let me pick up that point with mike as far as the earnings are concerned. S p capitali q mike had some important work out this week that suggested Earnings Growth for this year from where we were coming into the end of last year and the expectation was we would get 12. 2 growth in s p earnings. Thats been cut almost by a third to 3. 7 for the year overall. Thats an environment in which its very difficult, mike surely, to argue you should get substantial gains in equities. Well actually, i think that that number has impacted a lot boy by energy earnings, but the number you alluded to earlier where the Consumer Spending number was high in the gdp report today underscores why you should be overweight Consumer Discretionary while being underweight energy. So i dont think youre going to get an across the board even return in all sectors, but i think you can do well if you know which sectors to be in and the map to that to that strategy lies in that gdp report today. We are coming to the end of not just the month not just the week but also the month. The yeartodate moves have been absolutely phenomenal on fixed income and well talk to rick in a moment. You have had a 50 basis point move down in the yields on the 10year. Utilities up 3. 7 . Health care up 2. 4 . Were repeating what happened last year in many senses, arent we . Well we are, but our clients are still telling us that equities are where they want to be. Theyre not frothy but they are leaning towards equities because there is still no alternative for most affluent investors. I think that will continue to push money into the market despite this unevenness you have just discussed. Larry mcdonald, lets talk about the backdrop here. We havent gotten to globally weve had russia with rate cuts overnight. They follow a string of Central Banks over the year that inevitably seem to be lowering. Nobody has talked about chinas currency. Where does it leave the u. S. Dollar . For those who say the appreciation is over, are they wrong . Could the dollar keep going . The countries in the world that had the best growth australia, canada, a lot of these yield curves new zealand, those curves are flattening and our point this is a point we made in december. The benefits to the consumer because of lower oil, those are linear, but the risk of lower oil in some respects because of the leverage in the system is parabolic, and you just have to remember about 2 trillion of debt has been issued because of these low rates to oil companies, to sovereign countries like russia and all the other companies in russia. So you have to respect the leverage in the system and that risk that it presents to the market. Interesting point. Rick just wrap us up how you see things in chicago as we approach the end of trade, 50 minutes to go. Thats easy. 2012 annual gdp at 2. 3. 2013, 2. 2. 2014 2. 4. That pretty much sums it up. All those calls for 3 as high as 4 , 4. 5 still somewhat delusional. Sustainability luds the u. S. Economy and to me continues to be the big story. There are a lot of peep looking at the move in oil wondering the same thing . Is this now over . Do you think weve put in a bottom here . You know when it comes to oil, i have been looking at the junk spreads and they have been stabilized really for the last two or three weeks and theyre still relatively tight to history. I know its fun to talk about and all that crazy liquidity Central Banks has to make has to go somewhere. Im glad it went into energy. All the technology is paid for. Im not too worried about Companies Getting to buy it for on the cheap because they will make very good use of it in the future and it will continue to be the gift that keeps on giving. Yeah. Mike mcqueen by the way, what do you do with the energy space, quick last question, a chevron with a big move it made today. What happens next . Especially for people who have been in these names for the income . Well they are still a great source of income for most people, but i think you have time. I think they will be uneven in the bottoming process but were looking to raise our exposure to equity in the coming weeks not immediately. If we put in a bottom its a place where investors will have an opportunity for two or three weeks or maybe a month or two to scale in and then he will be glad they did come end of 2015. Thanks everybody. Appreciate it this hour. Have a great weekend. We have 45 minutes to go into the close. And the dow is down 146 so were heading back down towards the lows of the session as of course, we enter a period where they start looking to match the trades at the end. Up next an apple watcher back on tuesday told us on the closing bell the stock would hit 120 by today. Well, guess what . Earlier it did. It touched 120. Apple was trading below 110 when he said that. We have the pro back here to tell us where he thinks apple is going from here. Shake shack sizzling on its first day of trade. Well have a special report on all the burger joint action. Thats next. 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. When the moments spontaneous, why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm 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 symptoms of an allergic reaction stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Welcome back. Here is a look at markets today. The dow is off 150 points. We had that nice rally yesterday, simon, but today a different story. We wont have any after the bell earnings. Still a lot of this has to do with the focus on the tech sector. We should mention the nasdaq is outperforming. Theres a look at the dow and the three components in the green include visa at t and caterpillar which has had a tough go of it but getting a lift i would guess by the sharp upward move we saw in crude oil price prices. They dont tend to do the earnings on fridays. No, they save fridays for ipos. And shake shack absolutely rocketed on its debut and giving out free burgers outside the New York Stock Exchange to boots. A moot point because they didnt give them out inside the stock exchange. A very angry technical crew but lets past that. Mary thompson is covering all the action. To watch it go towards 2 billion was an extraordinary moment. It really was. It priced last night at 21 a share which was above the range of 17 to 19 expected. Its first trade on the New York Stock Exchange was 47. Now, as we head toward the close, we can see right now its trading at 47. 92. Thats a 128 gain and that would probably make it the third best performance, first day performance, for an ipo since 2010. Now, outside the New York Stock Exchange there were long lines outside of a couple of trucks that shake shack had set up so investors enjoying and consumers enjoying those burgers and fries and thick milk shakes that they sell. Todays action valuing the company at 2 billion, and who says that flipping burgers doesnt pay. I love the people making the point that millennials are eating healthy. Theyre just choosing their burs everything burgers from a different joint. Thank you, mary. Apple touched 120 intraday and thats the number our next guest predicted apple wit hit back on tuesday when the stock was below 110. That warrants him coming back. Okay. Lets bring in james from keen. He made that call. Were also joined by tom fort from Green Capital who isnt that optimistic, it has to be said. James, let me kick off with you. Where do we go from here . Right. We touched 120 as an intraday high. Trust me it doesnt always happen that day but thats what the Options Market was projecting the stock could go. After this big blowout quarter i think well still see moves higher in the stock. I want to continue being long apple, so im now long via options that expire in march. The Options Market is saying we could get as high as 129 or 130 by march expiration. I dont want to be exposed to the release of the watch which were thinking will be sometime in april. Its an interesting mix of pattern watching from the options pit and some fundamental analysis, james. As far as youre concerned the watch basically knocks everything out of the way, does it . Right. Absolutely. This is a huge risk point for apple. I mean theres a lot they can do with the cash pile. We saw it swell it over 180 billion this past quarter to drive the stock in the short term via buy backs or a larger dividend. What is going to drive the stock in the longer term is the watch. This is the first test of apple as a new innovative product under tim cook. If they fail this investors will change their own on apple. Youre more cautious here. Is it also because of the iwatch or what . I think that factors in the equation. We published report on mobile payments and management declared on that Earnings Call 2015 was going to be the year of apple pay. Well theyve done a great job in lining up banks and retailers but its still not ewe quick whichewe bik what tusich tus to the consumer. Starbucks had 90 share in 2013 and theyre adding to that with their mobile order and pay initiative. So you dont like apple because its not you bik which tus enough but you like starbucks payments even though they only work at starbucks . Its way too early for the company to declare 2015 the year of apple pay. When you translate to the stock, theyre basically a product cycle stock. If they had a year, for example, with a fiscal year where they had one new phone and they were lapping two new phones their sales would be down. They plucked the low hanging fruit by coming out with a smartphone with a larger screen. I agree theres a lot of risk in the watch. I dont think theyre doing anything that will move the needle. So far the smart watch category has been lackluster. But im not sure that anybody really expects the watch or payments to move the needle to the extent that sales of the iphone do and the extraordinary sales that theyve managed to pick up in china. Doesnt that excite you . Definitely the watch sorry, the smartphone is their most important product, but to the extent that theyre heavily dependent on the product cycle for the watch, they need to have new items, a television in this case the smart watch, payments to generate consistent sales and Earnings Growth otherwise they will just depend on how many new smartphones theyre going to put out in a year and how that compares against the year ago period. Its challenging for the stock. It all depends what you think the definition of a product category is i guess. Its good to talk to you both. Thanks guys. Tom forte and james ver melmelli. We will bring james back seeing about that level. The dow moving back to the lows of the session now. Were off almost 200 points. The s p is giving up 21. The nasdaq 40. Whats interesting about this simon, is were not seeing that much of a bounce after the crude oil bounce that we saw earlier. Weve lost 2,000 there regained it on the s p 500. January is turning out to be a cold month for wall street in more ways than one, but what will february bring . Dom chu sees hot times ahead and he has the data he says to back it up next. And later if we die tonight mankind dies with us. Will the terminator go from Science Fiction to science fact . Bill gates joining the mensa ranks of elo