Later, bill orilely is officially out at fox. First, the crude plush oil having its worst day, settling down nearly 4 . Gas inventories in the u. S. Jumped for the first time in two months, sparking demand worries. Energy stocks by far and away the worst performance sector, following the commodity lower. When crude turned lower, the markets went along with this. Lets put this in context. You stalled tax agenda, falling oil. Its a bad earnings reaction. In fact, ibm the worst performer on the dow, on its earnings today. So the perfect storm brooi brewing for stocks. Steve, what do you say . When you look at crude, you look at the prism of the 50 mark. The stocks, the actual commodity. But i have been negative on krudz and crude stocks, feeling at the saudi aramco potential ipo has been a real setup. Its the biggest head fake for me. Because every analyst, every buy side is looking to get a piece of it. Every sell side is looking to buy into that event. Its setting up literally for a perfect storm. Im negative. There can be the market and crude but i do believe that its time to take profits for everything that you just mentioned. I do believe that tax policy has taken a little bit too long. I believe that gdp. We thought those kroger policies were going to spark it are on hold. So i do believe its time to take some profits. I look at crude oil, i actually look at brent. I think its universal, i think you have a dynamic here, every time you get a bad inventory number. I think there could be fall tomorrow. I think technically oil there is a dynamic here. Carter will talk about it. I will say this. I think were at a playful position in oil. Its very differ than six weeks ago. When the oil was what i too short on oil. We had a nice rally back to the top. Now there is a lack of conviction. The imf is out there with news, theyre upgrading the global demand. They put a demand forecast. There is nothing on the demand side thats a problem. Its peoples concern about u. S. Supply. Think the rally of the u. S. Supply coming back on as people expected is overdone right here. I sa you the gasoline earlier in the day. Im surprised that some of the macro world events later in the day didnt cause buying. Its a buy disruption bid . Yes. You have tillerson talking talk. You had, i dont know you had the story about the planes being moved in syria, to russian protected i guess air. I dont know, to me. Maybe it is about u. S. Production versus middle eastern supply chain upset. Because those new stories have been around. We had syria for a while, iran for a while. You got libya. You got all these iran didnt, i dont know. I would have thought barely potentially. One more thing that were going to find here and i think that Oil Next Year is not necessary, oil, if anything, were saying, this is oil specific on small caps, look at trance morts, look at small caps were up today. They dont rally is growth is being shot. They are up in the big deal. Thats exactly what i want to say. Transports are higher. I thought ibm was higher a half a percent. Yes, the dow jones was down. Twothirds of. That i dont know what it was, ibm. Goldman sachs obviously as well. S p was down four handles. So everything appears to be unraveling. Yet the market, few look at the internal says totally the opposite. I agree, geopolitically typically transcends all this 12u6r. If you told me there morning all these things take place, where is crude going to be . I would say up 5 . Ill say this, exxonmobile. We talk about for a long time now has not traded well since december, made a 52week low, to me, until exxon turns, maybe crude sort of language is here. You have been negative, right . What are you doing in response to that . So for me, i have those news driven stocks that i own. I own monsanto, its a newsdriven stock. I do, if we are going to extend this Energy Conversation out a little further. Its been so set up and so negative right now, that you could see some earnings surprises Going Forward and you could see the dead cat bounce. Im overall negative. But im staying long my core positions in my portfolio. Talk about dak cat bounce. We barely saw anything, we saw day two of the Goldman Sachs, despite a city upgrade on valuation. We didnt see that come off as you might expect when you see the rest of the group doing well on the back of morgan stanley. Later in the day, we saw financials fall as well. J. P. Morgan is trading lower than before it reported earnings. Think of that action. The first blush is always going to be based on the yield curve. We had a bounce this saw a bounce in banks. People had a chance to digest what the drivers are. If you are an environment, people want to believe the Capital Market business that gold man sax, historically the bond king is something you should read across other platforms. I dont think it is. Again, i think what you are seeing in goldman versus the rest of the sector is truly an outlier effect. Thats not how i will be trading financials here. Just to extrapolate, the yield curve, people are looking at that, are you saying, well the yield curve was stronger this morning or up this morning, sloped this morning. But the thing is, its basically flattening. Do we extrapolate that bigger data point into our market conversation . Many people argued it doesnt matter, tim has said that. Apparently it does not matter. Which part of the curve . Im sorry. We got a break in here. Breaking news on bill oreilly. Lets go to julia boorstin. Reporter mellissa, right, bill oreilly issuing a statement from his outsurf from fox news, saying, quote, it is tremendously disheartening that we part ways due to completely unfounded claims. But that is unfortunately the people in the public eye must live with. Today he says he will look back at his time at fox with great pride and the unprecedented success theyve achieved. We will have more on oreillys departure later in the show. Back over to you. Thank you very much. I guess the unknown here is how this impacts stocks in the 21st century fox. What do you think, guy in terms of the ad dollars . Theyll figure it out. There is a famous saying cemeteries are filled with people to replace. Its true. When you look, when megyn kelly left fox. They thought that time slot was going to get crushed. My sense is fox is doing just fine. Energy the biggest loser, the chart master, they said this. Energys relative performance to the subpoena has been straight down. Its the trap that keeps on trapping. People are doing it, getting long two days. Carter. Since then energy has fallen more than 3 . Carter, still the trap that keeps on trapping . We can figure it out together. This is sort of the bottoming or maybe not, yes, action of the past two years. Let me draw, if i could, what consensus has been. Its been this way for a long time. That we have this socalled head and shoulders. And at this neck line ultimately was going to be broken and that we were going to do that. I would say, lets do it this way. How about . No. No it doesnt. It really doesnt, it doesnt set up like that. Lets draw the line a different way. So what we have is, yes, head and shoulders its going to happen, it has to actually follow through, complete the pattern. You cant dodtle. The longer you do, the symmetry has been lost for months. Not only have we broken trend and rallied back to a lean and started to famter again. If you were to draw other lines to put this in context, we actually have come into a very important apex and we are again failing right at that juncture. So the question is, but Energy Stocks. Are they a good bet . And thats really where the rubber hits the road. This is a twopanel chart. What you have on the top is s p energy, the gift sector, itself. You have a relative performance to the market. So we know even as it was growing up and even though its well below its prior low, i mean, were still so far above our absolute phases. Look where we are on a relative basis. Were almost back at the lows. So even though one im up, but its under flying the other choices. Thats the worst thing you can do, in principle as a manager and investor. Heres another way to look at it. Since the entire low point of about a year ago, we know that Energy Stocks are up and their relative performance to the s p is down. Thats what a trap is. It actually feels good or keeps it, youre thinking. All the while one is being sort of damaged. And then, what really is done, of course, this is going back to all data. At least as far back as some Data Services have. A lot of the lines ive drawn arent random. This energy is making all time highs. Right here, yes. Crude was up at 100 pounds per barrel. Energy stocks were never participating that. That is a definition of what a trap is. Is this getting fixed . No. Its now the worst performing sector on the year, down 10 . Lets look at numbers. Forget about the year, what about the spire mark. 09 to 2017, as of todays close. We know on the top, look at the descending orders. Okay. If i move to the next panel, weve got energy down here at 58 compared to the s p at 210. Its down again this year. Theres something wrong with all this. I think it is the trap that keeps on trapping. I dont want to be involved long side. What do you think . 52 is broad . Says it all. Come on over. Do you realize every button . You are amazing. It was the flying. There is flying. That is yet to be determine. You have to wear no in there. Carter, we were having a discussion about what crews might mean the performance percentages that you showed were coincidence performance windows. In other words, the same time frame, right, for oil, stocks as well as ever other sector on the s p. So those oils performance or Energy Stocks performance, does that, is that an indicator at all for future performances of the market . Is it sort of an indicator . I dont know if it has been, you can think of it as economic sensitive and inputs. It might be id have to rely on this. One doesnt just step back and say what are the fundamental also . Maybe they cracked the code from both sides, which is to say, there is a lot more than we thought. We get it easier, trafficing, this electric car thing, maybe it is different, maybe it is a long saudis selling the goods . A lot of things for a layman to say, hey, wait a minute. This doesnt sound right. This performance in the space for a long time. If you had to put on a trade, would you be short energy versus long the markets . Concerned. Dollar neutral . If i get the equity and keep that on. It looks like its structurally impaired and even the one, heres the other thing, there is so much hope, every time you get a four, five, 6 rally in crude. Here we go. Here we go. It keeps on keeps on luring in, myself, i think, this is the bottom. Carter, do you remember, though, within can you make similarities with that inflation trade we all looked at. You can make a lot of comparisons to the chart you showed on crude, where it cant get out of its own way right now and steel and copper. Are we just not there yet for that dead cat bounce . Or do you think its nothd not trending . If you look at the performance, crude is well below copper, zinc. Alluminum. Theyre bearish to bullish. Crude kept sitting from that formation, never really completing it. Which is, you know the trap part. So that means you can have an inflation trade with oil. Can you have an inflation trade in the other stock, the track . Copper . We seen very serious damage to zinc to nickel, to copper, all of them under Fairly Extreme pressure. I think one of the things we need to remember is you dont necessarily buy a stock, its cheap. The sector, the positioning right now tells you, people did not want to have energy for a long time. I would disagree. I think people are pre disposed to being cynical to where oil is right now. I think in the united states, people believe we are going to conquer the oil genie if not having already done that. Is that not good for Energy Sector investing . It ultimately means there is a lot more supply. It hurts profit ante. It does. It doesnt hurt anybody. If you look at the megacaps, exxon, chevron, tends to be pushing very hard on that. I dont think you will get cheaper, i think anna darko, they are a better position for this oil price. Carter, thank you, cornerstone macro. Coming up, after the bell with all the stocks moving higher, but the flow charlottes earnings seasons, other big names, will earnings justify the rally . Plus, bill oreilly out at fox news after hosting the highest rated cable show for 15 years. We we heard oreillys statement calling the departure disheartening. We will bring you much more on that developing story later on. Chinas auto sales are suffering. It could be a major problem. There is one company that could emerge the big winner. We have a special report. Much more fast money right after this. Its not just a car, its your daily treat. Go ahead, spoil yourself. The es and es hybrid. Experience amazing. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. Im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. Cs xh is moving lower in the afternoon session. Lets go to headquarters. Overall a strong Earnings Report from tsx. Weight volumes across most of the market. Another bright spot is closely watched operating ratio with a deep consensus. Csx with a rebound in commodities, specifically coal, which has helped boost rail traffic for the industry. Its also prompted some analysts to upgrade their ratings, not just on csx but other stocks. This is a new report. A railroad veteran, who came from canadian pacific. Investors have been optimistic about this leadership change. You see shares of csx up 34 already in 2017, the stock higher as well after hours. Tomorrow morning on the earnings call, we will hear harrisons first public remark as ceo. Thank you very much. Stephen body. I know you start every morning off with a glass of orange juice and the world street. How would you know that . Im guessing. Skycam. You probably read the piece with csx. Is so expensive. The journal . Right. The wall street journal. Kidding. 25, 26 times pe. What was that just the valuation of csx calculated. You compare it to norfolk southern. They still perform. Then you have to ask yourself a question. Is this a breakout to buy or do you fade it here 50 bucks. Im inclined to say fade at 50. The stock is too rich. You want to be in the rails. I still think Kansas City Southern is the best place to be. Whats interesting, their ability to raise prices. I mean, thats as far as the bottom line, from the beginning of that, in which case, maybe the pe is not that expensive. Theoretically, there is turn around stuff that could be pricing the stock here or two or not pricing. I have been mr. Inflation. Ly tell you this. A big part is their codeals. If you tell me the call has peaked. Look what happened in iron ore coal prices. People are hammering china. This is not going to be so rosey. This is a backward looking corner. I know they will guide wherever they will guide. I dont know i will guide rails here. These valuations. Im constructive. Some of this has a chance to pull back. All right. Lets have the move of the day. The goal minor is getting crushed. Gold minor gets crushed. It was interesting, this should be the environment where gold has everything going for it. You have this dynamic, you get a weaker dollar, except today, the down trend, you got all this geopolitics. With the minors, everybody knows, these things trade 1. 8 north of 2 sometimes. Were at a place where gold has a major move t. Minors have not had pace. There are fundamental also and structural reasons they tend to under perform in this type of an environment. So not touching them. Im still actually long gdx around this price right now. There is a two or threetoone performance on the out performance on the underlying commodity. But you need real administration of headwinds. This is not so much. It doesnt work with geopolitical. It definitely has not worked with that. Whenever you see a tax plan or a health care plan, get shot down. Thats when gold spikes higher. An interesting relationship, if you chart this, and bitcoin, you will see an inverse relationship between the two. Whats bad for bitcoin is good for gdx. Are you saying gold is a minor . I think you need to wait to get back to u. S. Policy difficulties in d. C. And once you start to see that, because i know were going to see that again, gold ships spikes higher, not with geopolitical, when you talk about iran, talk about syria. Thats not going to do it for gold. Im not saying it hasnt. So for me, im not hoping on something that will change. I think when you see policy fighting. Gold seems to spike higher. Check out squares of qualcomm and American Express. They are moving higher. Well bring you all the details. Im mellissa lee. You are watching fast money, first in Business World wide. In the meantime, heres whats coming up in the past. Carmageddon continues. The first decline in 27 years. Well tell you what it can mean for auto stocks and the market at large. Do it live. Actually, bill, were not going to do it at all. Because the king of cable is officially out. Well tell you what it could mean for the future of fox and shareholders when fast money returns. Ness world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Welcome back to fast money. The dow is dropping 1 went fr20. Heres whats coming up. Auto stocks under pressure a carmageddon spread to china. Later, it is the big story of the day, bill oreilly out of fox after allegations of Sexual Harassment, he just issued a statement calling the situation disheartening. So what does the departure mean for the bottom line . Does it signal a major cultural shift . Well explain. Earnings with, you are headed back to break down the after hours action. We have the details at qualcomm. We have the latest. Josh, take it off. Well, mem list sa, qualcomm is heading higher here in the after hours. Remember, this is the worst performing tech stock in the s p 500. They have a big reason is that ongoing fight with apple. Remember apple saying, in part, are you charging us royalties for technologies have you nothing to do with. Qualcomm hitting back saying nice try. You built that iphone franchise off the back of our technology, now you want to pay less. Qualcomm ceo talking about this fight on the call, take a listen. Ultimately, this is about a contract dispute and business negotiation and we will work to reach the right resolution for our sharehol