Skip to main content

tv   Closing Bell  CNBC  February 5, 2016 3:00pm-5:01pm EST

3:00 pm
forecasting they would be 150 and stay there forever and a lot of economists there by the way. we can always lose money on oil or make it. thanks for watching "power lunch". >> closing bell starts right now. >> hi, everybody, welcome to "the closing bell", i'm kelly evans. >> and i'm mike santoli. we're in front of the linkedin, the epicenter of the damage. big tech, big growth favorites in tech especially where the damage is being done. >> look at this. to see a company like linkedin down 45%, we've talked about tableau software and lion's gate is not the type of company that should be in the mix, down 35%. salesforce, 52-week high was 80
3:01 pm
bucks. these were names that did hold up last year and places people were hiding. we've had what people call a rolling bear market. it's rolled into these big tech growth names. >> we should be clear for everybody too. while these names are the epicenter. names like home depot and starbucks and nike, those too are getting carried out by this wave of capital that seems to be leaving -- how would you describe them? where is it going? >> it's leaving high valuation stocks where you had to bet on the future being brighter than it is right now. investors are losing patience or trapped and have to sell. it's a matter of not giving the market credit for actually bailing you out in the future. we want our money today is the question. >> going into dividend stocks. we'll have much more on this coming up as well, nakz like walmart, even caterpillar. >> it is cross the board. last friday up 2%, down 2% today and also while oil is holding
3:02 pm
stelddy or to the downside, energy stocks under pressure, many more familiar story. you're seeing dividend cuts, credit rating downgrades and hess win of the losers today, sold a big block of stocks to raise capital. >> too many concerns. so is more consolidation in the energy space coming ahead snd we'll talk to michael carr. let's get over to bob looking at some of the winners amid the sell-off. >> i've got one here on the floor somewhere. we're going to find them. it's a bad day but there are still things moving, the telecome names are up on the year and everybody loves telecom, 52-week high, verizon, at&t at a 52-week high as well. there are classic more defensive names that are on the upside. merck is up 1.5%. you've got a few of the big
3:03 pm
consumer names that are up, procter & gamble has been holding on to gains throughout the day and even some beaten up industrial names have rallied. how much lower can norfolk southern go on the year now? up 1% so far. and of course, the gold names have been rallying for days and days on end. there's newmont up 3%. 11 million shares as well. then you've got a little bit of earnings. tyson has been a monster all year. had a great earnings report today. look at this, up 10%. that stock has been doing really well. we know what's going on. the basic problem with the market right now is there is still too much supply, too much people willing to sell any rallies like the rally last friday. that's all gone and not enough demand. there's not enough buyers going out there saying, i like it here, i'm going to buy aggressively. we get one day rallies like last friday and then it all
3:04 pm
disappears, this is very characteristic of down markets. the buyers just don't get enthusiastic and we need to find the level where the buyers are going to be enthusiastic. we're not there yet. back to you. >> that's for sure. let's hear more on the carnage we're seeing in the tech space, linkedin falling over 40%, you know, good to have you both on board, chris. beginning with you, what's your reaction and your response when you see linkedin down 45%? >> absolutely. you know, it makes sense, people are losing their minds -- >> it makes sense people are losing their minds? >> yes, so we've got a light q 1 guide and linkedin they dispoered in terms of that. but the long-term thesis is still intact. arc invest research shows that friction in the u.s. labor market cost us $630 billion a year. linkedin is fundamentally recruiting and retraining
3:05 pm
company with extremely strong network effects within its user base which is why we added to it in our arkw and q funds today. >> if you can weigh in on what's really happening across the space you cover. what are clients doing here when they are so quick on the trigger to sell these high valuation tech growth names? >> well, as bob was saying, we're in a risk off environment so what's going on is people don't want to buy. we just need more buyers and sellers. >> go ahead. >> what i was going to say, clearly the momentum is out. momentum stock like a linkedin and you happen to announce a quarter, that is fine but a guidance that was not, obviously you're going to be down a lot. 45% or 40% is a little xrag rated but that said, we understand people will be in not happy, seeing a lot of hate selling. but i would go back to something
3:06 pm
chris said, fundamentally this does not change the thesis for linkedin. if you look at two metrics you should look at the number of users that linkedin was able to add year end to quarter. that certainly qualifies them as being a very, very healthy platform. they don't have a twitter problem. the other metric is to look at the number of customers they would be adding in in the fourth quarter as well. these are corporate customers spending 40 to 50,000. they continue to do that. platform is very healthy and valuation is ahead of itself and needed to be adjusted. >> given the both of you seem to think there are reasons to like a name -- down 45% in one day. chris, just some thoughts before you move on. why you think the market is behaving just so punishingly today? what is it, because people feel the fed bit is out of the market? your colleague mentioned their momentum? why is it down 45% today?
3:07 pm
what do you think is going on? >> i think this fundamentally comes down to baby boomers setting up for retirement, cash and bonds, mel lennials are 55% cash. we need millennials to start buying stocks to lead to another boom as in the late '80s and early 90s. >> youssef, before we have to go here, what's happening across the space of internet names you cover. we're having a downward reset and you both kind of say it makes sense. are we going to have to see this hair cut across the board? >> i think you're seeing that the valuations are still not cheap and the internet index values the internet group still at somewhere around 13.5 times forward. anywhere between eight times to 16. we're still towards the upper range and so we still proshlly think there's a little down
3:08 pm
today but not necessarily for li linkedin. we think facebooks and googles will continue to perform better. but the smaller cap names will continue to struggle and other names that report a blemish on their numbers will continue to get punished very hard. >> even the big guys frankly aren't doing that well. but tells you how bad the overall market is. we'll leave it there. >> on a relative basis. >> thank you. >> thank you so much. >> well, if there's nowhere left to hide in terms of what we used to call the fang names, let's talk about the broader market. there's very few safe harbors. let's get to our closing bell exchange. david kelly from j.p morgan fans and jonathan and rick santelli. can you describe what's going on right here with the reset of investor expectations and the fact that really stocks were not able to capture anything positive out of that jobs report this morning. >> yeah, i think we're stuck in
3:09 pm
a swamp of irrationality, people are making fundamental mistakes and believe the u.s. economy is due for recession and val yauations don't matter anymore, all of these are mistakes. the u.s. economy is nowhere near a recession. and stocks look very cheap relative to the rate of inflation and yield of cash and bonds. it is irrational, i don't know when it's going to break but i do see opportunity for people to keep their heads when the market seems to have lost its -- >> it's a mistake going on for about six months now. is the market not telling us that maybe things are souring? >> i think the market really is misunderstanding the economics here. we see the falling unemployment rate and it's because of low labor force growth and that's fine, that's the way the economy is but people see it as a sign that the global economy is slowing down and u.s. economy is slowing down, that's not what's
3:10 pm
happening. it's a structural problem slowing the whole global economy. if is it doesn't mean a recession and earnings bounce back, which they will, this market is cheap. >> jonathan, what levels are you watching here? >> any level that i was watching earlier today has clearly blown through any support that we've seen. 1868 is the next level on the downside. i think we're going to hold the lows where we are right now towards the end of the day. just to kind of go back to what david was saying, i agree with his point and mentality, but unfortunately on a short-term basis, there's no catalyst to get buyers off the couch and into this market. look at the volatility and economic data that has been mixed and earnings season has been okay. and there's no real reason for an investor who has been waiting to get into the market to come in now. next week, no economic data on monday. very light economica calendar. not a lot of major names coming out next week. china is closed for the holiday.
3:11 pm
everyone has a reason to sit back and watch and see how this unfolds. >> rick, the kind of pattern we're getting familiar with lately the treasury markets takes in the new information, today's jobs report, whatever it is and says we kind of already figured that out and doesn't move very much. are you seeing anything in terms of the bond market readjusting to the incoming data? >> well, i didnyes and no. there's a lot of curve issues and they may be subtle to some but they are important. five-year note has been the wildest mover on the yield curve. that is still off -- and i think you're right, the pattern of weakness we've seen for third year running and the treasuries pretty much. this is isn't horrible, but void of growth and prospect to get the growth higher. and today's jobs report to me was actually very enlightening.
3:12 pm
i guess i'm not shocked that the markets are down. i look at it this way. with the biases on the fed as to what they should or shouldn't do. it's like a anybody could have looked at that and said, 151, the fed is not in and could have tried to take the market up. but the market is done. i really think that one of the issues to pay most attention to is that no matter what the fed does, i think the ultimate outcome of the u.s. economy and global economy is pretty much baked in the cake. there are still fundamentals that will back me up on that and what the fed does or doesn't do is actually going to have implications in the medium to longer term which very few investors truly pay attention to. >> we're trying to discount those for the time being. there have been a lot of people looking at hedge funds closing down some of the names that people are moving out of and saying maybe they are being forced to in this kind of environment. tell us who signs you would be looking for, whether this was for selling because people were in losing positions and trying to get out of it?
3:13 pm
>> i don't think you're going to see that footprint in the equity mashlgt. we've been hearing about that and as we get closer, some hedge funds that have redemptions will come into play. i think we'll start to see more of that when we -- when you start to see transitioning from sector to sector and hedge funds sectors that have to close down and that gets repositioned that way. to think that if a hedge fund is going to close down, we're going to see a significant impact on a certain stock or sector, i don't think that will come into play. >> if you say the market has been making a mistake, you have seen the beaten stuff from last year start to come back like transportation stocks, if not today than recently. do you think this process is perhaps working its way through the system? >> i'm not sure. i think the market looks very volatile and irrational day to day. i haven't really seen anything that tells me the market is
3:14 pm
really getting over this sort of freakout here. but over the course of the next few weeks, the real question here is is there any real risk of a global recession or u.s. recession. i think when we begin to get numbers for first quarter and begin to see retail sales are holding up okay and vehicle sales and housing doing okay, a lot of the weakness we've seen in the industrial sector and in energy is really a slowdown that there's a limit to how much it can fall. the inconvenieventory cycle is done and energy cut backs are mostly done. we cannot cut much more. there will be a turnaround in economic numbers but hard to figure out whether they will move ahead of that or as we get that proof. >> jonathan, just in a brief word, how much do you think -- what are the odds that the market is discounting the recession in the u.s.? >> it's clearly coming into play. the fear of the overall market and uncertainty of the economy, we're seeing it play in front of us. >> we'll see if the data can
3:15 pm
walk back any of that narrative or confirm it in weeks ahead. thank you, we'll leave it there. appreciate it. david kelly. >> we have breaking news on twitter. >> new information from twitter on the fight against extremism and terrorist related organizations including isis on social media. putting out a posting on the at policy site saying that since the middle of 2015 alone, the company has suspended over 125,000 accounts for threatening or promoting terrorist attacks primarily those are related to isis. that 125,000 figure is bigger than we had known to date. previously, the only real credible estimate here of isis activity on twitter was from a brookings institution report that said there were about 46,000 known isis related accounts back in 2014. 125,000, much higher than that. twitter also saying increased the size of the teams that
3:16 pm
review reports of terrorist related activity on the service and that has reduced their response time to those reports significantly. they also say they are looking into other accounts that are similar to the ones they have shut down and also, they are leveraging what they are calling propriety spam fighting tools to surface other accounts for review. all of that resulted in some results, including an increase in account suspensions and indication that a lot of this type of activity is moving off of twitter. you know since the san bernard dean know attacks, there's been a huge focus on isis recruiting on social media. twitter pointing out they are doing a whole lot to stamp out isis related accounts on their servers. >> thank you. this comes in the wake of google saying much the same and we're reminded of the meeting held by the companies and obama administration announcing that. we know encrypted messages systems exist as well.
3:17 pm
>> it seems as if the weight of the pressure is making them at least do these efforts. >> maybe it will do something to help. 45 minutes too go here. really brutal day across markets again. nasdaq the epicenter, down 3.25%, 151 points. the s&p 500 is down 41, dow is the outperformer, down 273. energy stocks among the many losers today, big question has been when is production going to be cut? we'll have alook how oil production costs are dropping and which companies survive the oil collapse? >> houston, we have jobs, we're going to go to nasa's johnson space center where mary is looking at job growth in zero gravity. first in business worldwide. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be.
3:18 pm
if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. you ppremium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call
3:19 pm
to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.
3:20 pm
a tough session today, the nasdaq down more than 3% and s&p down 35 points and dow down 227. a lot of pain in different sectors, lynn energy is tumbling after wiping out much of the value over past two years. now reviewing strategical tirn
3:21 pm
tifs to shore up the balance sheet. didn't give details what it's considering but it exhausted a $3.6 billion credit facility loan and has sufficient funds to navigate the oil slump but aside from equity at 50%, the debt trading at close to zero. >> the company does not have many options so it's desperate for looking outside. >> exactly. elsewhere, it's been another tough week for crude oil. it maybe is one explanation why we have this supply. morgan brennan has details. >> that's the burning question, you got opec continuing to pump to protect market share and crude proiss are down more than 70% since the 2014 peak. why hasn't output fallen more? only 0.1% of global production has been curtailed because its unprofitable and there are two reasons for this. many producers need to keep pumping for cash flow and it's still cheaper to lose money on an active well rather than stop
3:22 pm
and restart that process later. second, the actual cost to pull a barrel of oil out of the ground has fallen. this is especially true for u.s. shale. u.s. shale production costs down 20% over the past year. that's expected to drop to 40% this year and we're seeing that as shale drillers become more efficient and many producers begin to only tap higher quality wells that will yield more oil. a good example of all of this, occi dental petroleum, 22 to $23 a barrel on average. the lower production costs are why 190,000 barrels per day in the u.s. are cash negative at $35 a barrel according to wood mcken zi. we're seeing the price of oil come down but we're seeing the price to pull oil out of these wells and mind you, it varies
3:23 pm
from shale formation or from oil patch to oil patch but the prices are coming down. >> i guess that means no end in sight to the heavy oil supply, morgan? >> i think it's like -- that's the multibillion dollar question. if oil stays this low and for that much longer, at some point you're going to see production really start to pull back and you're going to start to see this become less and less profitable. these output numbers particularly in the u.s. drop but in the meantime seeing falling labor costs and a lot of producers can actually drill in half the time it took a year ago and it just makes sense if they think they are going to see recovery even to $40 a barrel. it still makes sense to keep pumping. >> thank you very much. we're 37 minutes left in the trading day, dow down 225 and losses across the board, 3% on the nasdaq. >> coming up, we'll have goldman sachs co-head of merger and acquisitions. job growth and zero gravity.
3:24 pm
mary thompson heads to the final frontier in terms of job opportunities. it soon grew from a luxury to a necessity. so at&t built a network just for you. one that connects your businesses, devices, cars, mobile entertainment, family and homes. we grow as you grow. always evolving. to work for you how and where you need it. this is your network. the network of at&t.
3:25 pm
all across the state the economy is growing,arts today. with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in the hudson valley, with world class biotech. and on long island, where great universities are creating next generation technologies. let us help grow your company's tomorrow, today at
3:26 pm
>> i hope so, you have to understand that thousands of people were tweeting him, some were cursing him, a lot of them were thanking him. he's a scientist. >> why do you call him a scientist? >> welcome back. we have 2% losses across the broad market and nasdaq down 3%. dow a little off its lows, down 236, down 265 earlier and genworth getting crushed on disappointing results. really the message here seems to
3:27 pm
be its capital constraint in the market and this stock under 3 bucks before today. genworth wants to refocus efforts on long-term care insurance lines. >> another place in the marketplace that's really doing poorly today. we're going to head to the johnson space center in houston where nasa is hiring for one of the most difficult jobs to land as astronaut. mary thompson reports that making the cut may actually be the easy part. mary? >> that's right. nasa will choose 8 to 14 candidates for its 2016 class of astronauts. they three years professional experience and degree in math science and engineering. once here, they are going to go through a two-year training program to hone their mechanical and physical skills. i asked nasa to put me through some of the paces. life in space is grueling, 16-hour work days with a mandatory two-hour workout. on the ground astronaut kand
3:28 pm
dates or walk as they will in space. tethered to bungee cords. and weight lifting for 45 minutes critical to maintaining bone density in space, especially in the low every half of the body. along with the physical, candidates learn the mechanical. simulators like this one training them to capture incoming cargoships for the international space station or iss. >> what i'm doing now, i'm getting ready for a virtual extra vehicular activity better known as a space walk. >> this is done in a virtual reality lab where they use gloves embedded with sensors to prepare for six hoif hour space walks where hands rails get them around the iss, part of a two-year program to get astronauts ready for their time in space. >> and that time in space may not be coming soon. once they complete the two-year training program, it's usually three to five years before astronauts are finally get to
3:29 pm
fly their own missions. in between, they serve as support for astronauts already in space. back to you. >> nmary, if everybody had to d this to get a job we would be in real trouble? >> reporter: these are extraordinary people who do this job, that's an understatement i think. >> and also wonder about the acceptance rate and how hard it is to get into first colleges and hedge funds and startups or whatever. we're talking about picking how many people ultimately out of how many who want to be an astronaut? >> reporter: think of this. the last class in 2013, there were 6100 applicants and they accepted eight. this time they are expected a record number of applicants and can't give me an exact number yet because the door closes for this process on february 18th but when you look at the 18 to 14 person acceptance rate, you can see it's a very, very elite and exceptional group that gets accepted. >> any desire, mike? >> i don't think so. i'm not going on the waiting
3:30 pm
list for the mars flight or anything, the one way flight. >> i think it's a little bit of a matt damon effect. >> we have unemployed oil service folks drilling for minerals on asteroids. >> they can apply the technology. >> thank you so much, mary. time for cnbc news update with morgan brennan. >> hi, guys. we have a u.n. human rights panel who says julian assange should be freed immediately and competence sated for the five and a half years he's been there. assange says the ruling which is nonbinding completely vindicating him. french taxi drivers blocking access to charles de gaulle causing major gridlocks, cars unable to get on grounds and taxi drivers are suffering from unfair competition from the likes of uber. 90 miners are rescued after a cave-in in south africa, three
3:31 pm
are still missing. they are the deepest and among the most dangerous in the world. louisville has announced a postseason ban for its men's basketball team amid an ongoing investigation into a sex scandal. escort alleginging that a former staffer paid her and other dancers to have sex with recruits and players and an an investigation revealed that some violations did occur. back over to you. >> always troubling. >> no doubt. >> 30 minutes to go here. we'll get in the thick of things, the market has been heading lower virtually all day. the nasdaq the worse down 3% or 144. a leading trader will tell us what he's watching into the close next. >> goldman sachs's co-head of mergers and acquisitions, tells us whether the deal volume will surpass the record level of 2015 coming up.
3:32 pm
3:33 pm
3:34 pm
a tough session again today, the nasdaq twice as bad, down more than 3%. take a look where we've seen the selling and the outperformance this week.
3:35 pm
this is a sector map of the s&p 500. we have three sectors actually in the green materials leading the way of 4.5% and utilities and telecoms there. the worst performer on the week looks like it's consumer discretiona discretionary, both down more than 5%. >> less than half hour in a week trading as well as session. we're left back near the recent lows and s&p down 1870 and spent a lot of time knocking arrange these levels in recent days. do you think we'll hang in here? >> well, this is going to be one of those kind of days. if you look around there and think it's a little strong into the buy side on a close but i've got a feeling that's not going to hold up. we're probably going to attempt to go through the 1870 level again on the s&p. if we do, it could get a little scary going through that level. if we close below there, i think that pretends not the greatest -- not the greatest thing. >> one of those old axioms is
3:36 pm
that markets tend not to bottom on a friday. >> if it does bottom and go through that level, we will have to worry about next week. next week there's not a whole lot on the table. yellen is speaking on wednesday but i think that this is an important time. normally i don't think a friday is that important because people are unwinding positions or covering shorts or whatever. i think today it's a little more important. >> thank you very much. kelly. >> good stuff. the volatility in the market putting investors on edge. is it creating a ripe atmosphere for mergers and acquisitions, joining us is michael carr. great to see you again. it really surprised me when somebody the other day pointed out the pace of deal making this year has been off to a pretty good start. is that true? what's driving it and is it sustainable? >> it is sustainable, you have to divide the question into two.
3:37 pm
the strategic element is still there. this has been a corporate to corporate merger market, 85% of the volume has been one company dealing with a second company. and none of that has changed because everyone is restructuring the sectors they operate in. the strategic element remains in place. the takts cal element is much trickier right now. reason is most large stock mergers or mergers have stock as part of the merger consideration. to have that be successful, the stooks have to be in relative value parity. in markets like this, it's hard to price mergers. strategic piece is in place. >> what about for a sector like energy, been in turmoil and all of the values have come down. is there much going on in the way of conversations about potentially consolidation in that industry which everyone
3:38 pm
seems to say is necessary? >> energy is a good outliar because of prices, most companies are looking inward and also making sure that balance sheet and liquidity and credit rating are in positions where they can succeed when a market turns back up. the other thing i would say about the energy sector, when energy companies merge, the level of insufficiesynergies is. people are staying close to home in the energy sector. >> what about china, out there shopping around quite a bit. is that going to continue? >> another good question, i would say last year the composition of global mergers, 17% of that was chinese. and most of that was chinese companies to chinese companies, very inward looking where you had a lot of state soes rational iizing their corporate structures. this year it double, up to 34 to
3:39 pm
35%. that seems to be a little excessive with respect to the mix of activity. but i can see it clearly at the end of the year being higher than 17%. and part of what's going on is last year i said was very much chinese to chinese. this year it's outbound which is very different. that's not going to change. >> what about that other big potential buyer that's been talked about forever which would be private equity. they've been in entire cycle quiet. are they interested when values get down here? does the math work for him or debt market not going to allow that activity right now? >> you're right. they've been mostly net sellers as part of the merger cycle for the last three or four years because values have been good and buyers are there. the issue before the house right now is the financing markets are much more fragile with respect to the credit class and that's making it much more difficult for them. prices are much more attractive
3:40 pm
and it's much more difficult for them to get their structured deals done. >> it's a great point. it's something we've heard in the past private equity players being so frustrated and here's your opportunity if you want to put that dry power to work and brings up the point along with difficult credit market conditions about the importance of crash and how much crash is on corporate balance sheets and going forward how that might affect deal making activity? >> the credit markets are very much open for activity. three weeks ago we had the second largest ever. rates are down. credit spreads are open, have opened up a little bit but the grade mark, the investment grade market is just fine. the high yield market is a little pickier and names are tougher and buyout names are tougher but both markets are open. >> are we still seeing historic levels of cash, is that all part of the equation or not so
3:41 pm
relevant? >> the activists do appear when you have too much cash on the balance sheet. companies have been very good about making sure that their balance sheets aren't lazy and buying back stock and making sensible acquisitions and so the whole issue of cash on the balance sheet is very dynamic analysis that they do quarter to quarter. >> and just prod them into action depending on who's involved. we'll see if the pace can keep up in an otherwise difficult start to the year, really appreciate you being here. >> michael carr. >> less than 20 minutes until the closing bell. we see the stock market down here near its lows, 264. nasdaq down almost 3.5 partly cloudy --%. it has been the problem child today. when we come back, kate rogers joins us with a live report from that exchange. the democratic presidential candidates had a debate in new hampshire and the loser seems to be wall street or american
3:42 pm
business. why these two targets are in the democratic cross hairs. you're watching cnbc, first in business worldwide.
3:43 pm
3:44 pm
3:45 pm
>> markets still trading down near their lows, 2% across the board and the nasdaq down 3.3% and tesla sinking deeper into the red and electric car making wiping out a third of the value this year alone. several analysts are expressing concerns about slowing demand for the electric car maker's model x been going on through the week. investors don't want to be waiting anymore. great to materialize -- >> no matter what the company is, exactly. >> that's obviously tesla reports earnings next wednesday. we'll see if they have updated production figures for us. >> after its earnings, linkedin's drop spooking investors nasdaq falling to new lows today. linkedin, what's falling to new lose? >> that's right. nasdaq down 3.5%, personally the lowest close since october of 2014.
3:46 pm
it's been a very volatile start to the year. you mentioned big tech is weighing down the market. we have weak guidance from linkedin and tableau is not listed here but that could be translating to bigger losses in the tech space. so many of those momentum names outperformed getting slammed here today, amazon, netflix, facebook among the biggest losers, down more than 5% each. google and apple seeing losses near 3%. ibb nasdaq, etf down 4% and vertex down around 6%. >> pretty brutal. thank you so much. let's send it over to seema and see what's working in today's trade. >> a safe haven buying here. keep a close eye on gold miners,
3:47 pm
a bright spot, up 4% and on track for the best week since december of 2008. this of course as gold rebounds to new highs at 1,166 and settling at 1157. if you look at the good gold minors, one of last year's losers now up double digits this week and currently hitting session highs amid the broader market sell-off. we're seeing the move in gold despite the strength in the dollar, something interesting to point out in today's trade. >> thank you. people keeping a close eye on this one as a gauge for what's going on in the market. 13 minutes to go. and the dow is down 231 points and s&p down 37 and nasdaq down 147. >> if you want to avert your eye's from today's tech wreck, maybe the emerging markets, he'll explain why just next.
3:48 pm
3:49 pm
3:50 pm
welcome back, the dow is down 250 points and artcashin saying maybe 250 million to buy. first a news flash with seema. >> shares of buffalo wild wings are moving lower as kansas
3:51 pm
health officials say a nora virus case has been confirmed in the connection with an investigation at a buffalo wild wings restaurant in overland park, kansas. the johnson county department of health and environment received confirmation of one positive case and at least ten people reported becoming sick after eating at that restaurant. additional results are pending lab confirmation, the big takeaway, one confirmed of nora virus. shares down 8%, they were trading as low as 12.7% earlier today. >> another tough name in this market and tough news for buffalo wild wings. we are going to talk a little bit about the markets. one of the ways to characterize what's going on, there's a global scarcity of yield and income. does that present opportunities. do you see things that have become attractive in this environment? >> it's interesting, people talk about the global scarcity of yields and the reality is that
3:52 pm
yields are high. just a question of what kind of risk you want -- >> high in the energy patch. >> and other sectors within high yield too like packaging and home building and places like that that don't necessarily have a commodities relation. any of the consumer or noncommodity stories, stild bonds yielding decent levels. >> the yields are high for a reason because they are perceived as riskier, what we're talking about fundamentally for people who don't want to be on the risk spectrum but saying where am i going to get my yield? >> we have to think where we are in terms of growth in the u.s., we've been stuck there. yields will be lower. if you look in the investment grade corporate seck tofr, you're going to get yields around 3%, to 3.6%. even the high bet at a sectors, there's a lot of opportunities. today's payroll report was somewhat positive. unemployment rate 4.9% and
3:53 pm
average workweek up and hourly earnings and incomes are growing a little bit. all of these things are good things, it doesn't look like we'll have a default or high defaults in these markets, much of the fixed income max r market is priced for recession but we don't think we'll see the recession, maybe a 20% probability. >> you point out that emerging markets debt has held together okay lately. >> it doesn't gone with the global narrative. you look at local debt right now returns year to date about 2%. if you look at em external or corporate debt, they are about flat, maybe 25 bases points down on the year. holding in an area that maybe took pain last year migtd be the area that's going to come back quickly going into 2016. that's a sleeper for 2016. >> we hope it's a positive sign for all risk assets. thank you so much. identifying pockets for u. >> we'll be back with the
3:54 pm
closing docountdown. >> right after this. my mom loves giving me advice. she even gives me advice... ...about my toothpaste and mouthwash. but she's a dentist so...i kind of have to listen. she said "jen, go pro with crest pro-health advanced." advance to healthier gums... ...and stronger teeth from day one. using crest toothpaste and mouthwash makes my... ...whole mouth feel awesome. and my teeth are stronger too. crest-pro health advanced... superior to colgate total... these 5 areas dentists check. this check up? so good. go pro with crest pro-health advanced. mom's right...again!
3:55 pm
you ppremium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.
3:56 pm
e*trade is all about seizing opportunity. so i'm going to take this opportunity to go off script. so if i wanna go to jersey and check out shotsy tuccerelli's portfolio, what's it to you? or i'm a scottish mason whose assets are made of stone like me heart. papa! you're no son of mine! or perhaps it's time to seize the day. don't just see opportunity, seize it! (applause) a tough day for the overall market, it's some of the glamour stocks that got hit the hardest. look at the momentum etf, getting smacked hard, under performing the s&p 500, some of
3:57 pm
those high growth stock favorites like those tech names that have gotten hit hard and bob joins us here along with art cashin. we're not necessarily seeing a lot of rotation from those into other areas. >> this is the day they took down all of the high pe names. we had guys gathering around tableau and earlier linkedin, standing around, not even with orders, like tourists saying is that right, 40% down the open? people were mouths were open at this point. these are high names even with linkedin. the main problem today and ongoing problem, is there is still too much supply in the market, too much willingness to sell into any rallies and not enough demand, not enough people willing to buy any kind of dip. remember the rally last week, 400 points? it's gone. two days and it falls down again, no interest in coming back in. >> it's a market without a memory.
3:58 pm
>> we did dodge one bullet today however, there's some important support in the s&p at 1868, 1871. we manage to stay above that. if you break that, there's a good chance you're going to go back and retest the lows. >> 1812 is the january low. >> intraday low. we have hung around this level quite a bit in the last week or two. the daily low has been right around this level for the s&p 500. >> it has been and that's partially a good sign. but when the payroll data came out the movement in wages had many pundits coming up and saying march is back in play. i don't think it is by any chance, but that was enough to spook everyone. rates moved up and they moved back down again. >> april nonfarm jobs it was a little confusinconfusing, great wage growth and number was below expectations, i'm dialiyeing to
3:59 pm
how janet yellen -- merkel is speaking as well snl. >> janet will be speaking as well wednesday and thursday. with china closed for a week, is that a reprieve? >> you'll have people very nervous because that might not be a bad time to devalue your currency. >> you think so, when all of the markets are closed? >> that would cause a lot of confusion and tough time for them to do something like that. >> we've seen a lot of big leadership stocks fail. is that one of those deals where you say if they are finally taking down the generals, there's nowhere left to hide. >> sfl i think if you go back to those interday lows like 1812 and manage to hold, maybe that will be a bottom. >> did buy some railroads up, norfolk ut and at&t verizon 52-week high. >> 2015 losers having a moment. thanks a lot. we appreciate it. as we go to "closing bell", prevent can scer foundation and
4:00 pm
spare bank 1 closing the bell. [ bell ringing ] >> thank you, welcome to "closing bell." here's how we're fifrnishing a tough session today, nasdaq down more than 3%, almost 150 points and remember it's a fourth in terms of points of the dow. the magnitude is just huge. dow itself down 212. s&p down to 35 closing at 1879. joining today's panel here to close out the week we have mike santoli and evan newmark welcome
4:01 pm
both and you're already fired up, evan, but hold it one second. tell us what in the world -- i mean, i don't know if we can rattle off the list of names down 10 to 15% like sales force, linkedin down 45%. what is going on? >> there's obviously a come uppance for these high valuation names that people had sort of believed could be immune from a lot of factors and liquidity factors weighing down the market. you don't know if there's a little bit of a mechanical lick sidation of some sorts going on. you hear whispers about hedge funds being trapped. but we've had a general reset of expectations and valuations across the board. today prompted by the linkedin numbers, it seemed it came for glamous our stocks. >> tim, there's some people saying, linkedin might be down 45% but it's till expensive. how would you read the trading
4:02 pm
activity? >> it depends on what kind of growth. if you want to look in hindsight, a lot of growth they showed you in 2015 warrants getting back into the stocks at these levels. i think in the case of linked in, it's a question of a high multiple stock and difficult to prove the multiple going forward. in netflix's case, the u.s. business and growth there that you're paying a lot slowed down dramatically. it's a case, look at tesla and people wanted to believe and forgot about deliveries and forgot about all of the things related to the model that make that multiple almost impossible to defend on a day like today, ibb. all of these things that were wish and momentum in 2015 under a lot of pressure. >> it's not the fact that linkedin is down substantially but 44%. there are some people who have been in the markets and saying they can't remember the last time -- >> this is classic. this is textbook air being let out of high growth stocks. >> why? >> on the basis of valuation.
4:03 pm
this has -- i know what happened today, linkedin gave bad guidance and market didn't like it. when you're dealing with company that's have ultrahigh pes or nonexistent, the air is like turning a switch on, there's a binary thing. i'll give you, since the start of the year, we've had this discussion for months now. i told you and i'm going to do a little half victory lap, rather own a share of exxon than facebook -- >> you're long the 19th century and short the 21st -- >> amazon found 26% exxon is up 2%. >> bank stocks -- >> down 20, 25%. >> but the bank stocks totally a function of interest rates and the fact that interest rates haven't come up as quickly as people thought they would. the point i'm making, this is actually a good thing.
4:04 pm
i think it's a healthy thing. all of the stocks taking to the wood shed, the ipo chumps, twitter, which was 2014, 69, now at 15, etsy. >> i love etsj. >> down to 37. >> gopro down to $10 and the other high tech biotech stock, 31 down to 12. that is good. you know why? because those things were ridiculous valuations. >> tim our markets become being more rational snl. >> the integrated oil guys which i agree, look at the difference how exxon and conoco phillips, maybe not a terrible surprise but tells you a 40% debt to market cap trades differently than a company 10% debt to market cap. they do an equity raise for what i would argue a very expensive valuation relative to where you think the company should be. when a company does that, they are kind of telling you, we think our stock can go lower.
4:05 pm
you have to really sort through the good companies and bad companies here and have to buy balance sheets and valuation and very prudent management that didn't excel at the highs of the market. >> we mention that obviously the linkedin earnings report was one factor, but did something larger change today? what about the january jobs report and weakness of the dollar this week and fed? again, i bring up the bank stocks. is there something more cosmic happening? >> i don't know that any of the data this week changed the overall picture. what i do think though is the dollar weakening was yet another one of these crowded trades where they knocked big money back on its heels. i don't know if you can trace it from there to say basically people's trading models are off and it doesn't seem like the smart money has been very smart. you can go back to the swiss frank intervention last year, really and that kind of hedge fund hasn't gotten its legs
4:06 pm
under it. i don't know beyond that, what you did get today, you weren't able to say this removes the fed from the equation. >> we'll get more in just one moment but first there's something again that people are looking for dividend stocks. you mentioned one aspect. what more does it mean to you it seems like anything with a dividend being bought and anything without one is being sold? >> i think we may be seeing a classic rotation from high pe growth stocks into more value stocks. by the way, this is a seismic shift in so far as the last 20 years have been about growth stocks. i'm no not saying you could say today marks the end -- i don't know that. but it's true that over the last 20 years, i wrote a piece at the time of linkedin's ipo called linkedin $10 billion of value investors at linkedin stupidity. >> i had a feeling -- >> you know who was the stupid
4:07 pm
one? i was because it went from 10 billion to basically 35, kind of peaked at 35 billion. now it's down to $15 billion. it can happen that fast when you're dealing with growth stocks. once that momentum is gone, then you're relying on real earnings that matter. >> do you think it's the bird in hand effect, i can see and feel the cash and don't worry about the hopes and dreams of the future. >> and that gap what you can get in terms of dividends on the stock market versus the bond market is widening xgt let's go back and dig through the jobs report this morning. i talked about implications. and chief economist, jeff cleveland along with diane swonk. relief able now to speak your mind and tell us what you think is really going on here in the world and what the jobs report meant? >> i think the jobs report really showed us that main street does have m ooxt jo back. even the overall number was a
4:08 pm
bit of a giveback from the very strong december, some of that was weather related but at the end of the day we had wages accelerating traction there and reduction in the unemployment rate was for the right reasons, we saw labor force participation pick up really among the 25 to 34-year-olds and that's a very important cohort, certainly for janet yellen. i still think you can't rule march out. i think june and december are the best bets for the fed rate hikes and only two this year but i think janet yellen will make it clear she's also comfortable allowing unemployment rate to go localer to reengage many of those people who have been on or under employed in recent years. >> jeff? >> i think the most important part of the jobs report, kelly, do we still see enough job growth to put downward pressure on the unemployment rate? the answer is yes. we took down 4.9. if that continues to be the case, the fed is still in play. i think earlier in the week some
4:09 pm
investors, many investors concluded the fed was out of play and that's why the dollar as you pointed out earlier, kelly, weaken pd versus some of the majors. the fed is very much in play in our view. >> diane, maybe react to that. do you think based on what you said earlier that janet yellen might be interested in letting the labor market run even hotter given the fact we don't have to worry about the inflation piece of the fed's mandate? >> that is her goal, she's a veteran of the 1990s and remembers when anyone who had a pulse got a job and there's that sense of letting it run as low as it can without tipping inflation. i'm still june/december, can't rule out march but she is quite committed to i think we'll see 4.45 unemployment rate and that won't bother her one bit. that will be welcome news for many out there. >> what would you say, we're hering one dovish interpretation and one hawkish.
4:10 pm
what would you say about today? >> you could have interpreted that jobs report in any one of two ways but the questions back to jeff or diane, what about the negative feedback loop? we don't see that right away and probably tired of hearing the labor market at at best concurrent, the ism this week was horrendous and the nonkind of manufacturing follows the manufacturing part of the economy. >> jeff? >> i'm sorry. >> service is still in positive territory. we're still above 50. that's the big chunk of the labor market in our view. i know the ism manufacturing was sub 50 but we think there's signs that may be turning, maybe next month we see that pop back above 50 and the folks using the r word will have to put that out of their vocab larry. >> they'll be wrong is what they'll be. >> diane? >> i agree. i think recession is a low probability. we can't say that the risk isn't
4:11 pm
out there why is why it would be hard for the fed to move in march. the important thing on the ism survey, new orders were up, international side was still miss areaable. some of the details were kind of clean. there was some manufacturers that argued that lower energy prices were helping margins and offsetting the effect of the stronger dollar. so even in that bad ism report there was some glimmers of hope that hadn't been there before and those are are the things we're hanging on to with what was still above 50 on the services side. the consumer is not dead and sent. surveys have been fairly robust and that's despite all of the blood letting on wall street. main street is doing a little better here. >> diane, it's evan. jeff, you can take this question also. the bond market, if just looked at the bond market, saying recession, is that what the bond market is saying or base he canal canallyically saying we're pricing off the other bond markets and we don't care what's
4:12 pm
going on with the u.s. economy? >> i think there is a concern about a global recession in growth. there is certainly a growth downside growth bet in the market right now. that said, i do also think that the fact that inflation is lower and negative interest rates in japan, we'll get more negative interest rates in other countries out there. i think those things are important and we saw draghi took about stimulating more. all of those things are being anchors on the u.s. bond market, a time when even though we're growing, we don't have a lot of inflation i'm not that surprised. >> diane, thanks for joining us and jeff cleveland talking jobs and how that migtd have fit what we saw in markets today. breaking news on gopro, seema has details. >> shares of gopro up 4% on its announcement that microsoft technology announcing a new collaborative patent licensing agreement for certain file storage and other system technologies. the president of microsoft
4:13 pm
technology licensing saying in the press release, this agreement with gopro shows the incredible breadth of technology sharing enabled through patent transactions after gopro delivered a disappointing earnings report which sent the stock lower but you're looking at the stock higher by around 4% on this new agreement, patent licensing agreement with microsoft. back to you. >> thank you. tim, what do you think? >> i think if we start trading the company on patents like blackberry, we're in even bigger trouble. not us but i think many people bought this whole media company valuation story and it's a hardware company, not relatively cheap for a hardware company. i think the best days valuation are far in the rearview mirror. wouldn't touch this news. >> lr, gopro shows up 3. i appreciate the anger and passion as we say. thanks for joining us. more coming up with tim at 5:00 on "fast money."
4:14 pm
they'll ask michael burns what he thinks investors are missing. are some so desperate to bet a piece of uber that they are handing over money without seeing the ride sharing details? president obama and democratic candidates hoping to succeed him launching what looks like a war on business. new tax proposals on oil and accusations of fraud. we'll discuss whether that could backfire and end up hurting our economy and maybe their chances. you're watching cnbc, first in business worldwide. or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing, you just wait. ♪
4:15 pm
4:16 pm
4:17 pm
tech stocks got hit especially hard and investors are struggling for someplace to put their money and new york times, upstart ride sharing service, uber. a business picker for the time and joins us here at post nine. >> thank you. >> people are signing up exactly knowing what? >> signeriing up for uber. they are in a class of it is in
4:18 pm
these unicorns, they are investing in this fund and feeder fund in the okay man islands for tax purposes which gives them interest as you would as an lp say in a private equity fund. the only difference is this fund invests only in uber. it's an out sides best on uber. >> you made your thoughts clear. >> uber is a real company -- >> it comes down to valuation. i think if you're buying into uber at 62 billion, put aside you're not getting information, you're setting up to be a chump. >> even though they could go public at a higher val yauation. >> in a day when linkedin went down 45% and. >> we're talking about the day they go public. that first day effect is what people are -- >> if what you see over the next year or so is a shift in
4:19 pm
expectations behind these ipos and unicorns, you already saw in some of their private market valuations, snapchat, fidelity marking down a lot of privately held companies. i'm not saying they are now worth 62 billion and what it's going to ipo at but you have to believe that almost everything is going to go right in order to make it in the global market. >> what do they know? they just know that there's a potential opportunity here. they don't get the financials. >> is this atypical of these private deals? >> there's only been one deal exactly like this in the past with facebook and goldman sachs. if you remember that was restricted to foreign investors due to prejobs act rules which restricted them from soliciting u.s. investors for private deals. now they are trying again. these types of deals only work with the buzzing names. even though investors may be more apt to invest at something
4:20 pm
at a low aee er lower valuation >> not the way that legally matters but this line is getting blurred so much and i wonder about -- it's one thing to figure out the valuation of a company that is public and who ninds e knows what kinds of fees involved with that. >> morgan stanley has said they've done quote/unquote, limited due diligence on uber. morgan stanley has in effect seen financials on this company and said we believe this is an investment opportunity at $62.5 billion. now, whether the high net worth individuals they are marketing it to can trust that -- >> they have the previous example facebook, the people who went in on the facebook made a lot of money because they ended up exploding and the pitch will be something like this, going to be you can get in on this, next facebook, google, whatever.
4:21 pm
goldman put in money at 62.5 although that's probably done with a convertible structure so they have a downside protection. i don't know about this structure. >> we have to go but real quick, if a person puts in $100, any downside guarantee? any structure at all? >> it's preferred. they do have a preferred level of equity. it's then they also have a conversion ratio they can abide by but nothing like what tiger or t.rowe will get. >> so much at stake for this ipo. leslie, thanks you so much. >> wall street under fire during the presidential democratic debate. >> the business model of wall street is fraud. >> if all we're going to talk about is one part of our economy and indeed one street in our economy, we're missing the big oil companies and missing other big energy companies and missing the big picture.
4:22 pm
>> democratic presidential candidate bernie sander says fraud is wall street's business model. up next, we'll fwet reaction from barney frank and how president obama's oil proposal can affect the industry and your wallet. that's later on "the closing bell." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep it all digital. we're looking to double our deliveries.
4:23 pm
our fleet apps will find the fastest route. oh, and your boysenberry apple scones smell about done. ahh, you're good. i like to bake. get expert advice for your small business at business. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
4:24 pm
business model of wall street is fraud. >> the top 1% earn a higher
4:25 pm
share of our income than any year since 1928. >> the greed, the recklessness and the illegal behavior of wall street drove this economy to its knees. >> big government benefits the wealthy and benefits the lobbyists and the giant corporations and the people who are getting hammer are small businesses. >> if you think washington is going great that we just need someone to fiddle around the edges, then i ain't your guy. >> wall street is filled with crony capitalists. >> greed brought this country into the worst economic downturn since the great depression. unacceptability of one family the walton family of walmart, owning more wealth than the bot om 40%. >> goldman sachs was one of those companies whose illegal activity helped destroy our
4:26 pm
economy. >> the big banks were in the room with the democrats writing dodd frank, driving the little guys out of business wasn't an unintended sequence. it was the intended outcome. >> the words of the big caucuses ted cruz and bernie sanders, both very different, two different sides of the aisle but both criticizing big business. in a democratic debate last night hillary clinton and bernie sanders are went after wall street pharmaceutical companies and oil companies. is there a broader attack on business riltd now? joining us, barney frank i'll start with you, is bernie sanders going too far? >> yes. well, two quotes, he was right that reclessness and irresponsibility did have the major role in causing the crash. but he's wrong to say that the model is flawed. there are great abuses. i will have to say this, i feel people forget bernie sanders has
4:27 pm
been in congress for 25 years. i have not seen his alternative model. i have seen, because i've worked for improvements, corrections and safeguards restrictions. but the suggestion that we replace the whole model, i don't know what you replace it with. financing of activities of housing of businesses and helping people with this saving, that's important. when it's all fraud, he goes much too far and i have to say, i have not seen from him an at tern tif model. when he condemns the recklessness and irresponsibility and la ments the fact that nobody paid a criminal penalty, i agree with all of those things. but he ignores the extent to which we worked very hard to fix it with the volcker rule, picking up warren's idea for consumer protection bureau, banning bad mortgages and
4:28 pm
re'stricting the irresponsibility derivatives. >> mr. governor, i wonder, in your experience, how barbed is the rhetoric against wall street and business today? how -- where do things stand? it doesn't mean nothing, the fact he can say this boldly apparently believe it, have people applaud it, where is this all heading? >> well, whether it means a great deal in a free company and society like ours. we listen to debates and vote accordingly. i did not watch the debate, kelly, i was throwing popcorn at the television set. i was watching the bernie madoff story the last two nights. and something like that is inexcusable, he was evil, what he does was to kriple and destroy the lives of a lot of people. there are bad people in day care centers on occasion. i'm a former fbi agents, united states attorney, there are bad people in the military on occasion. obviously in government and in politics and certainly on wall
4:29 pm
street there are bad people too i think the rhetoric is over the top. >> okay. but what are the consequences of this going to be? you know, is it just hey, we have to endure this for several more weeks or is it, hey, this is a sharp left turn no matter who emerges as the candidate on the democratic side and overlap a lot with it. >> you'll see a little bit and a lot of that. barney frank was one of the brightest members of congress. i think there are some good things in dodd frank but for the community banks that i represented, thousands of pages of proposals and final rules we lost one bank a day serve days a week over the last -- since the collapse of '08. some of it obviously had nothing to do with overregulation but i've had community banks tell me that anywhere from 10 to 20% of net operating income is to comply with regulation. can you imagine what kind of om let you get if 20% or 10% of the
4:30 pm
meal went to responding to regulation? >> i notice that my friend governor keating cited no specifics. the biggest problem in the community banks have had has been the concern over higher capital rules which come from the international agreement, nothing in our bill did that. in fact, where there is a difference in treatment of big and small banks in the bill, it favors the small banks. for instance, we changed the way the fdic collects insurance fees and shifted over a billion and a half from small banks. but the smaller banks under 10 billion are not examined by the consumer bureau. >> the point, congressman, i don't mean to interrupt, the point is that your moves, whatever the impact might be of this legislation now look centrist relly tif to what we're hearing, bernie sanders is saying the business model of wall street is fraud.
4:31 pm
he's talking about them effectively being fraud you lebt. >> madoff, that's a fraudulent business model. we should understand and i agree with mr. sanders specific objections to the practices but when he says the business model is fraud. he's not repudiating me and chris dodd but barack obama. barack obama's administration never operated under that premise. fortunately because what we have is a basically important need, financing businesses through the process of collecting money, et cetera and with a pattern of abuse s and lack of rules and that happened and we passed bills to change that. but i have to add this, senator sander was as member of the senate. he was a member of the senate house going back 25 years. i do not recall him ever putting forward an alternative model and know he's a big supporter of glass stooegle but it would break up institutions but won't
4:32 pm
change their business model, hillary clinton is much stronger in that regard. >> governor, we'll give you the last word. >> i i would say this. as i said a lot of dodd frank is good but the real estate model, i've had a lot of community banks getting out of mortgage lending because you have to be in this real tight fence line, no more -- >> no more bad subprime mortgages. >> where were the regulators? they were asleep -- >> we're not going to revisit 2008 -- >> this is why bernie sanders is saying wall street is a fraud. we're still prosecuting what happened over the past decade. >> we stopped it and frank is complaining about that. >> former congressman barn knee frank and frank keating. time now for a cnbc news update. >> here's what's happening. the suspected link between zika
4:33 pm
virus and birth defect as microcephaly appears stronger and stronger. the cdc upgrading the guidelines for testing pregnant women who travel to areas affected by the outbreak. the texas teenager killing four people while driving drunk is said to be transferred to an adult jail today. the father of cleveland browns quarterback johnmy manzeil is so worried about his son he thinks he won't make it to the next birthday if he doesn't get help. telling the dallas morning news that the son refused to ebter rehab twice in past week. a special tribute to rosa parks in richmond, transit agency reserving the first passenger seat on every bus in honor of parks who in 1955 refused to give up her seat on a alabama bus to a white passenger. kelly, back over to you. >> thank you. president obama proposing a $10
4:34 pm
per barrel oil tax. we'll hear from somebody who says energy companies will pass that on to consumer we're back in two. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. hey sweetie, how was your first week? long. it'll get better. i'm at the edward jones office, like sue suggested. thanks for doing this, dad. so i thought it might be time to talk about a financial strategy. (laughing) you mean pay him back? knowing your future is about more than just you. so let's start talking about your long-term goals...
4:35 pm
multiplied by 13,000 financial advisors. it's a big deal. and it's how edward jones makes sense of investing.
4:36 pm
4:37 pm
>> time for the rapid recap. stocks staging a sharp sell-off to close off the week after a disappointing jobs report and falling oil prices and tech sector biggest drag on market today. much of the loss in teches sparked by linkedin after posting the largest percentage decline since going public five years ago, down almost 45%. tyson foods all time high after the largest meat producer reported better than expected profit and hiked the four-year forecast. shares closed up 10%. president obama officially unveil d his plan for a new $10 a barrel tax on oil today. explaining why now is the right time for it. >> we're going to impose a tax on a barrel of oil imported,
4:38 pm
exported, so that some of that revenue can be used for transportation, some of that revenue can be used for the investments and basic research and technology that's going to be needed for the energy sources of the future. then ten years from now, 15 years from now, 20 years from now, we'll be in a much stronger position when oil starts getting tight again and prices start going up again. >> joining us now with his reaction, chairman of gulf oil and founder of mer and core partners. what do you think of this tax? >> ludicrous and crazy and the stock market should react going down because of lack of leadership at the top. insanity. >> you think the sell-off today is because of this? >> i think so. i mean, the rhetoric you've got coming out of this administration and frankly a lot of the people running for
4:39 pm
president does not really endear us or give us any confidence. i mean, the oil industry already today pays 200 billion in taxes. we spend 147 billion on state and federal taxes. we have an 18-cent federal tax and average 30 cent a gallon state tax. so 15 billion is paid in corporate profits and 40 billion in income taxes. 200 billion is already the number. and they want another 70 billion, which is in my opinion a way for washington to pick winners and losers in the alternate fuel space. >> joe, it's evan newmark. we can -- we can be honest here, there's zero percent chance of this $10 a barrel tax being passed by a republican dominated congress. so it's politics.
4:40 pm
and assuming it's just politics, what's easier to do than pick on a bunch of big oil companies. it's still popular even though the price of oil is still down? >> sure, in general, we're picking on people who drive greed according to bernie sanders, it's the root of all evil, never mind that it lifted all. chinese out of poverty and indians and has been the greatest agent for wealth in the world but the fact of the matter is, we hate business. they just demonstrated they hate business and there's no business to hate with more ferocity than the oil companies. >> are you going to get out on the campaign trail? >> i don't know. my ego it probably big enough without making it bigger by going out. but the fact of the matter is, right now the oil industry is reeling because of the price of oil. certain sectors are, enp,
4:41 pm
drilling, texas had the distinction of having 100 straight months of having unemployment below the national average -- >> and now it's all turning around, i know. but the rhetoric is not yet. joe, thanks for joining us. >> thank you. >> lamenting this discussion of a tax on oil. super bowl 50 two days away. how companies are changing the way they advertise to maximize the 5 billion bucks it costs for 30 seconds of air time. first she's known as super woman to her 7 million loyal fans. internet celebrity lilly singh joins us right here at the new york stock exchange in a moment to tell us how she's making millions posting on youtube. you're watching cnbc, first in business worldwide. you can fly across welcome town in minutes16, or across the globe in under an hour.
4:42 pm
whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing, you just wait. ♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
4:43 pm
4:44 pm
she's best known as super wom, amassed 7 million subscr e subscribers and more than a billion views on her youtube channel. she's capping off with a film, a trip to unicorn island. lilly, thanks for joining us. >> thanks for having me. >> people are excited about the youtube thing, parent company alphabet had earnings the other day and all of the analysts were excited about the potential of youtube, we're at the beginning of what's possible here.
4:45 pm
do you feel like that? >> i sure hope so. i'm very confident in youtube. i'm very loyal to youtube, i have a great partnership on them and great things coming forward. >> what kinds of things. tell us about this film and like the kinds of video clips you already posting, short or long? >> regular youtube still exists every monday and thursday still there. you can watch videos offline and premium content such as my film, a trip to unicorn island. >> 15 years ago if you wanted to have the same sort of career going through standard media channels right now, did it happen for yyou kind of by accident by doing regular youtube and it built up to this point or survey all of the options and say this is the way i'm going to go? >> in in my last year of university and pursuing an undergrad in psychology which my
4:46 pm
heart wasn't in and discovered youtube around the same time. let me post a video and fell in love with the challenges associated with getting people to watch my content online and kind of -- >> when it was time to make a movie, now i can take this to netflix or hbo or something or youtube and only youtube. >> had a great tour, great experience, wanted to share it with my fans in a way that a lot of fans could consume it. the way the makes the most sense to use the platform they are most comfortable with already. >> who are your fans? who is your -- >> i hope you. >> i haven't experienced the super woman experience yet. but so who is your average fan? >> i would like to thank the world but may main demographic is 15 to 25 female but when i was doing shows around the world there was such a variety of people. i did the "today" show earlier and 200 people outside all ages and male and female and it was
4:47 pm
great to see. >> that's great, maybe you can get 200 people back in here. >> excited to see you. thanks for coming down. best of luck as well. >> lilly singh, might have a subscriber now -- >> you ready for youtube? >> no. >> there are big bets -- >> no promises. >> some gamblers have names like budweiser and pepsi. madison avenues goes for touchdown and one market executive will tell us if this is the best game plan. stay tuned. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday.
4:48 pm
4:49 pm
choose, choose, choose. but at bedtime... ...why settle for this? enter sleep number and the ultimate sleep number event, going on now. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow!
4:50 pm
only at a sleep number store, right now save 50% on the ultimate limited edition bed. know better sleep with sleep number. welcome back. the denver broncos and carolina panthers are just about 48 hours away from the kickoff of super bowl 50. there is big gambling attached to the game but not the vegas kind. it's the advertising kind. the cost for one 30-second spot will run advertisers 5 million bucks this year. is the price really worth it or are companies better off pushing their super bowl ads to social media? let's ask matt britten. ceo of marketing agency mry. coming to us from the west coast. probably not far from where the super bowl's going to happen, matt. so what would be your advice to companies here, go social or traditional? >> well, i mean, it really depends on who your brand is and who you're trying to target. there are certain brands out there like the pepsis of the world that have just a mass audience. so for them sort of a monolithic 18 to 49 demographic makes
4:51 pm
sense. with 117 million people watching the super bowl there's really nothing else like it to reach a mass scale at once in the days when live tv viewing is really kind of waning down. but for other brands that want to get more targeted and pinpoint their efforts, nothing can reach sort of the r.o.i. and effectiveness of a platform like facebook where you can target somebody within 100 miles of a store that likes certain hobbies. and you know, a lot of brands are looking at facebook as sort of their de facto marketing spin and figuring out what they should spend around that. and that used to be tv, which is really reflected in the growth of the facebook stock price. >> well, matt, you know, these two things aren't really mutually exclusive anymore, right? we're seeing right now in the leadup to the super bowl the companies that have already booked an ad are sharing it socially and they're basically kind of getting a magnification effect off of that. >> correct. i mean, one of the best ways to market to consumers right now is not really to market to them but to market through them. so if you can reach influential consumers and then get them to share some of the ads in their news feed, you're going to have exponential reach. it's going to show up on
4:52 pm
people's mobile devices through the feeds of the friends that those consumers follow. so a lot of brands, more than ever before, are taking advantage of the ability to see these spots before it actually airs. heinz, for instance, has one with dogs running in hot dog buns called the wiener stampede which is really exploding. i'm going to butcher this one. but mountain dew has one called space monkey puppy or something, which is the most tweeted about hashtag right now on social media. so some brands are indeed taking advantage of the pregame buzz. to distribute their spots. >> matt, it's evan. i have a question. is there a future? outside of the super bowl, it's a one-off thing, it's a big event. outside of that, maybe like these "grease live" or whatever nbc's been doing. >> political debates. >> no, no, no. is there any future in this kind of advertising? or is everybody just -- >> there's not. >> there's no future, is there? >> so here's the thing. so there's the grammys and the oscars, and then besides that it's really the nfl. the nfl controls the future of
4:53 pm
american media. >> geez. >> what a lot of people don't understand is preseason football games get a higher rating than game 7 of the world series in baseball. the nfl is the most watched live television program amongst male and female viewers. and right now the nfl obviously has deals with major tv networks. fox, abc, nbc, et cetera. but if a company like google with much deeper pockets or apple should come in and buy the rights to stream the nfl, i think that's going to be sort of the straw that breaks the camel's back in terms of cord cutting in the united states. it's really the only reason why consumers have traditional broadcast tv, so they can tune in to the nfl. that's how powerful it is. and obviously the super bowl is sort of the culmination of that effect. >> it's incredible. we saw it with the deal that nbc and i think cbs struck up in thursday night football games next fall. prices keep going up. thank you. and we'll see if we remember any of these all-important ads from the game this time around. matt briton there, ceo of mry. enjoy the game. >> you too. the denver broncos facing off against the carolina panthers
4:54 pm
this sunday in super bowl 50. while both teams are pros on the field, how well do they know business? we'll find out next. ♪ they may want the latest products and services, but they demand the best shopping experiences. they're your customers, and as you strive to meet their digital expectations, they're enjoying more choice and greater power than ever before. at cognizant, we're helping the world's top global retail companies face the demands of today's digital economy by blending physical with digital to create more responsive, more rewarding retail models... ones that transcend channels and locations, anticipate expectations, and create new ways to engage consumers at every imaginable touch-point. it's a new day in retail, where a company's ability to influence a purchase decision is only as good as its digital model. together, we're reimagining the store of the future, and building customer loyalty.
4:55 pm
digital works for retail. let's talk about how digital works for your business. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. igoing to clean betteran electthan a manual. was he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean.
4:56 pm
my mouth feels super clean! oral-b. know you're getting a superior clean. i'm never going back to a manual brush. at ally bank, no branches equals great rates. it's a fact. kind of like bill splitting equals nitpicking. but i only had a salad. it was a buffalo chicken salad. salad.
4:57 pm
okay. they're great on the gridiron, but how are they in the boardroom? jane wells quizzed players on both the broncos and the panthers teams to see which one knows business best. what did you find, jane? >> reporter: well, kelly, i learned this week how to make a 250 or 300-pound professional shudder, say hi, i'm jane wells from cnbc, can i quiz you about the economy? but for some of these guys it was game on. >> what's the price of snoil. >> the price of oil? this is a quiz? >> the last time i remember it was under $30 a barrel. >> like 30? >> you've got a "wall street journal" right there. >> about $30. >> you're absolutely right. >> who is janet yellen? >> no idea. >> janet yellen is -- sounds so familiar to me. >> next question. >> janet yellow? >> she's the fed director. >> yep. yep. nailed it. >> if you had a million dollars to invest in any company right now, where would you put it? >> i would probably put it in
4:58 pm
real estate. >> chipotle. >> why? >> you have the e. coli scare. everyone runs away for a little bit. it goes from 7.50 to 4.50 a share. it's a great value. >> who's playing in the super bowl? >> that's easy enough. denver. denver broncos. and who's the other guys? i don't even know. >> we're covering the super bowl. we're testing locals' knowledge now it's here. how many downs does a team get? >> three times. normally they would kick on the fourth time, right? >> you are correct. both of you show me your best cam newton dab imitation. >> don't know. >> who says "omaha"? >> that's yours. you feel like that one. >> warren buffett. >> who says omaha? >> oh, gosh, i don't know. >> okay. that at the end. we thought it was only fair if we're going to ask nfl players
4:59 pm
about the economy to go ask the techies about football. i think the football players won that one. >> jane always delivers. thank you so much. our jane wells. >> presidential candidate john kasich having some fun during the snowstorm that even hit around here. this was in new hampshire earlier today. he started up a snowball fight with members of the media. >> good for him. >> properly metaphorical? >> good for him. and he's not the one who has the trouble with the media. i want to see donald trump have a snowball fight with the media. >> donald trump keeps them caged at his rally. literally. but i do think this is -- maybe he's got more of a clever sense of social media promotion than we thought. >> what did you think about the answers to janet yellen there? >> i was very impressed with the guy who got the fed. and i was even more impressed with the guy who says who says omaha? he said warren buffett. >> i saw that piece earlier. jane said they were a long snapper and a punter. those are the guys with a lot of time on the sidelines.
5:00 pm
>> i like the guy that said chipotle was a buy because -- >> that was good. >> mathis, i think. he was 69 on the broncos. >> he shares my first name. so there could be something. could be something there. >> thank you very much, mike as well. >> can enjoy the super bowl. >> "closing bell." "fast money" begins right now. happy friday. "fast money" does start right now. live from the nasdaq marketsite overlooking new york city's times square, i'm melissa lee. your traders on the decemberric steve grasso, david seaberg, brian kelly and guy adami. the s&p is just points away from doing something very, very bad. we'll lay out what that is and why it could happen as early as next week. and looking for a place to hide out? we may have found the perfect stock. it was up today and up more than 9% this year. we'll tell you the name and how you can profit. plus take a look at this chart. lionsgate. the company responsible for the


info Stream Only

Uploaded by TV Archive on