And nasdaq down 15 points, the sp sitting at 1752, also worth noting we were still on the 5 pullback area where we have been watching for the dow and the s p, the most recent highs, we were off 5 and 6 respectively. In the meantime what is interesting is trading, the market has turned a little bit negative. The fear index in the green at 1953. And the Third Session in a row, the key level as well and save haven of gold up 6. 5 to 2. 6 . Adam we want to turn to commodities. Will prices are wavering on the latest inventory data. Phil flynn is in the trading pits of the cme so supplies rose less than expected. Where are the bigger gains . Those numbers are skewered by the weather in the gulf of mexico. In the gulf of mexico last week we had massive fogs, storms, snow, you name it and oil tankers could not offload for. A lot of tankers are still sitting in the gulf of mexico that they think will get back in non land next week so that is tempering its somewhat. The other thing we are looking at on this market is Strong Demand for product, gasoline and distillate fields up 5 over where we were a year ago. What is surprising is you wouldnt think gasoline demand would stay strong but it is despite the bad weather. L gas, dollar range today. Big explosive move overnight, recovering like crazy. We filled the gap on last months expiration around 570, all the way down to 520, an incredible ride for naturalgas. Even more incredible than the weather we have been having. Dennis cbs will pull all Tobacco Products from store shelves. What does this mean for the future of that pharmacy . Jeff flock joins us with moreein an attempt to answer that question. Jeff deeper into the numbers on cbs and what is clear is pharmacy is a real priority for them. Look at the numbers on cbs camera can compare them to walgreens. Look at the number of stores. 7600 stores compared to 8500 for walgreens. There are 800 minute clinics that claim to be number one in the nation in prescription revenue and get 68 of that from pharmacy compared to 64 for walgreens. A lot of positive p. R. Blitz from this, everyone saying how great they are and praising the ceo. Here is what he had to say. Tobacco products have no place in a setting where health care is delivered. When we asked ourselves where we expect to be in the future as a Healthcare Company it became clear that removing Tobacco Products from our stores is the right thing to do. Jeff for comparisons sake take a look at cvs caremark stock today and compare it to one of the Tobacco Companies like the morris. Look at the one year on that. Cvs clearly outperforming the Tobacco Company up 26 , down 13 for phil morris but today on this news, both stocks i down but if you look at the intraday cvs down twice as much as phil morris so people betting on health or death, i am not sure. I report, you decide. Dennis death and taxes, the only things you are guaranteed. Thank you very much, see you later. Tracking the latest developments regarding pr, standard and poors becoming the first ratings firm to cut the islands debt rating to junk. Joining me now is s ps lead pr analyst, thank you for discussing the decision that isnt he made and i want to quote from that decision. Access to liquidity through the Government Development bank or other in means remained constrained. You could have gone further but you didnt. Part of the reason we maintain the rating at double d plus is there were efforts to curtail the deficit, has narrowed the expenditures and increase taxes that narrowed the deficit and also the government addressed the unfunded pension liabilities by actually addressing the benefit structure of professional liabilities. It is worth mentioning that we have maintained creditwatch negative rating. Dennis you brought up pension liabilities. You also said there is little margin for error over the next two years and operating deficits, lets talk about the 37 billion unfunded liability. The Employee Retirement system is only 4. 5 funded. It would seem this is a precarious situation and what you are saying to investors is the likelihood they would be repaid in full is unlikely. What percentage of the talking . 0. 80 on the dollar . What that means is no longer investmentgrade rating and we believe the rating now reflects speculative measures, the ability to factors like downward trend in the economy, additional liquidity pressures that may result in ratings potential in coming down further. Dennis watching other rating agencies, Charlie Gasparino wanted me to ask you, fox business understand this and he met with other rating agencies last week. What happened at that meeting . Are we going to see downgrades from the other agencies . Can you talk about that . I cannot say what the other agencies might or might not do. We did not meet jointly with other ratings agencies. We met with insurers and derived information from the insurers, not the ratings agencies and that drives the analysis. Dennis you didnt meet the other rating agencies. Did you meet with people from puerto rico, from the gdp and what happened at that meeting . Correct. As part of our criteria we request information from the insurer and the insurer provides information. That information we obtained through meetings with them and phone conversations. Dennis what kiid of deal was puerto rico trying to lay at your table to say dont downgrade us . Information to try to highlight efforts that this administration has made in terms of balancing the budget and trying to achieve a balanced budget that we take that information and perform independent analysis and opinion represents. At this Rating Action dennis one last question. In regards to pension liability is being challenged in court. Pr has to come up with an additional 140 million should the plan to deal with teachers retirement goes through, it seems to me when you say you have little room for error over the next two years the big mistake waiting to happen. This assumes the reform of the teachers Pension System will go through as planned, challenging the courts will be a result shortly and as you mention it will represent in the short term in the short term and additional cash infusion to the system but one that will be less than would otherwise be had the benefit not changed. That is going to be closely monitored as the commonwealth develops its fiscal 2015 budget. Dennis we appreciate you being with us. The Puerto Ricans government promises to have a balanced budget year earlier based on all of this turmoil going on. We want to shift our attention to the implications this move could have on the market and your investment. Especially retirement investments. The head of municipalbond peter hayes joins us. In december on this program you told us eventually pr will have to restructure. It seems this is the first step and any day we would get a downgrade. Am i wrong . I think you are right. They obviously, we have two more agencies and have to weigh on the rating but last summer the debt has been trading below Investment Grade reflective of the weaker credit profile. Nonetheless. Nothing fundamentally has changed. The administration which has been in place for a year has done a good job raising taxes trying to cut spending taking some other measures which the s p cited and the reason they went to should doesnt change the fundamentals. Economy is contracting, not expanding. They are overleverett, demographics are not good and we conducted to detroit for that, population is falling. About of intellectual capital of the island is leaving and that means they are taking the ability away from the commonwealth to repay the overwhere ever did that which has been so burdensome and ultimately that means they can grow their way out, they have to restructure. We think that is the game for pr. Dennis overnight because of this downgrade dont they need to come up with a billion dollars in capital and accelerated payments to current bondholders because of what s p did . Each of the downgrade comes with a penalty and a penalty triggers certain payments that have to be made to banks and other Financial Institutions and they will try to renegotiate those and you can read between the lines and restructuring type of outcome so that is the case. If there were more downgrades which we expect in the next 30 days or sooner you will seem more Cash Payments that need to be made putting further pressure on already stressed fiscal situation so is not a good situation for pr. Sometimes the best alternative is to restructure early and we think that is the case here. Dennis stuart get a second downgrade does that require what morningstar says, 70 of me any bond mutual funds in the country have a pr debt, some of them have to sell that. Isnt that the next shoe in . It probably is. The selling, that is a great question because it goes toothe question about what will the impact be in the Broader Market which is healthy. This is only a segment of the muni market but a fall of a sudden investors begin to think the rating downgrade has big implications and a lot of funds with the explosion to pr will be negatively impact and they still selling put pressure on the Broader Market. Most funds point to two things. Typically is the time of acquisition so you look at the rating when they buy it. Not necessarily forced to sell when a downgrade occurs but i would be careful about the 70 number. I have seen that number for some time but there are types of pr pre refunded bonds which are backed by u. S. Government securities. The number might be smaller but clearly there is a lot of exposure out there both in funds and investor portfolios and i think has to shake out as puerto rico plays out. Dennis not unexpected. We even saw some Puerto Ricans debt trading today at levels higher than it has been in the past because this is a sigh of relief for investors. Appreciate your being with us. You are an important voice and you help us understand it. Later in the program Charlie Gasparino is going to join us on the firms that cannot resist the returns. Who is buying puerto ricosafter the s p downgrade and wind wont charlie take my bed over dinner about the future for puerto rico . We will challenge him when he joins us later this hour but right now but come back on the dow, maybe. Stocks at session highs. Racing trip be erased losses earlier in the session. Raymond james, chief investment strategist on why we are nowhere near time to sell. Retired soccer star david beck come fly south for the winter, the latest on his plan to franchise and mls team. We will tell you where. After a strenuous workout one of the worlds best athletes reach out to quench their thirst, how about this . Water from sochi. That picture has gone viral. What was that . Swill water. The water of the hudson river. Back in a moment. [ male announcer ] e new new york is open. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or sart a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. [ male announcer ] youre watching one of the biggest Financial Services cpanies in the country at work. Hey. Thanks for coming over. Hey. [ male annouer ] how did it come to be . Yours . Ah. Not anymore. Its a very short story. Come on in. [ male announcer ] by meeting you more than halfway. Its how edward jones makesense of investing. Dennis Nicole Petallides on the floor of the stock exchange, you are looking at todays big losers. Nicole looking at our losers we have seen retailers coming under pressure from the transportation index which has been under pressure as well. Lets look also at the Dow Jones Industrials up 21 points. We have seen backandforth action throughout the day. The high, we see it moving 15,473, we are less than ten points off of the highs of the day. A big move to the upside, still down for the week down 1. 4 for the Dow Jones Industrials, down for the s p 500 down 1. 5 and still in pullback mode, 5 or more off of the highs of these indices. Not great for the bulls out there, very crucial time in the market. Dennis thank you very much. The s p 500 not below the 200 Day Moving Average, 1709. Can it hold at these levels or are we in store for future declines . For that lets turn to the Senior Investment strategist for raymond james. You are optimistic. You think the naysayers who think we will break through 1709 are wrong. I have been on stocks the dozen times in january basically saying the latter part of january and first part of february were due for some kind of pullback. The question is is it 5 or 7 or 10 to 13 of fare . A 7 pullback which is the kind of pull back you get takes you to 1719. I am of the view we are in a secular bull market that if we do pull down into the area, i am not in the naysayers crowd. The 200 Day Moving Average holds. Dennis a lot of people are very intelligent and others like to sound as if theyre very intelligent talk about the Federal Reserve and the run up in the market we enjoyed in 2013. The term you use for these people in talking about the feds keep program monetary cocaine but you disagree that the runup was specifically because of q e. Why is that . I think at the margins the injection of liquidity into the Financial System and the Banking System absolutely had something to do with the run but what people forget is in 2008 the bottom up operating s p earnings were 49. 50. This year they are estimated to be between 120 one dollars, and 122. So you have almost tripled earnings so it is not just the liquidity that has been injected. Equity markets do not care about the absolutes of good or bad. All equity markets care about are acting as Getting Better or worse . Things are Getting Better as exemplified by the increase in the earnings we have seen since 2008. Dennis private sector payrolls, adp report not as high as expected. Would do you think will happen friday . That will have an impact on the markets. It will be impact full on a shortterm trading basis but we have been adding jobs, we lost 8. 8 million jobs in the slow down, we recaptured a. 1 million of those jobs. In the next few months you will recapture the 8. 8 million figure and typically when that happens you get a pickup in Capital Expenditures so you will get an increase in capital exppnditures this year, that will lift gdp growth to 3 and i would argue 3 is pretty decent in the climate we are in. Dennis to wrap up we had different guests who set for 2014 they expect thet give or take 2 , nothing spectacular. Do you think they are misguided . Will it be better than that . I do. The Federal Reserve will expand by 12 or 13 . Theres a high correlation between the expansion and the Federal ReserveBalance Sheet as well as growth in earnings which are expected to be up 13 so it is reasonable to expect a return to the s p, total return of 10 to 13 . Dennis thank you very much. Raymond james, all the best to you. Ready or not, here come the olympics and for sochi is looking a little more like the latter. The mindboggling images of the lastminute scramble to get things ready in russia. No sleet and freezing rain from the plains to the northeast, the forecast which could draw as much as 15 inches of snow coming up next. Welcome back. How is everytng . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex o rate. Simple, flat rate shipping with the reliability of fedex. I am Gregg Jarrett with your fox news minute. And bird through killing one person in china. That strain previously unknown in humans is called h10n8. Infected 300 people in that country. The United NationsHuman Rights Committee strongly criticizing the vatican for adopting policies that allow priests to molest tens of thousands of children over decades. The Committee Also says the church should change its rules on abortion and teach sexual education in catholic schools. The vatican says it regrets the committee attempted to interfere with Catholic Church teaching and the exercise of religious freedom. New developments in the death of actor Philip Seymour hoffman. Police in new york arresting four suspects who may have supplied him with drugs. The oscarwinning actor was found dead over the weekend inside his manhattan apartment with a syringe still in his arm. Those are your news headllnes on the fox business network. Back adam. Adam that Winter Weather is hitting millions of people across the country. Columbia, missouri, the heart of the state facing up to 8 inches of snow. For the north in chicago, the windy city expecting 6 inches of snow. So is boston. The city getting slammed once again. In new ork we are dealing with freezing rain and it is not over yet. Meteorologist janice dean is in the weather center, we are not out of the woods. The evolution of the storm as it moved across the midwest, some oyster across the gulf of mexico now moving in towards the northeast, some really good snow totals across kansas, 15 inches. A lot of areas got a foot in parts of missouri, indiana, illinois, iowa getting 6 inches