tv Closing Bell CNBC February 24, 2016 3:00pm-5:01pm EST
that's something to watch. >> oliver thank you, has a market perform. oliver chen of cowan. that does it for us. >> what are you going to do now that you've done two hours? i'm going to homegoods. you stay tuned because -- >> "closing bell" starts right now. oh, the show has already started here today. welcome to "closing bell", everybody. i'm kelly evans. >> and i'm wilford frost in for bill griffeth. quite a comeback, a major reversal for oil helping the dow pull back from its deficit earlier. we're currently down 20 points. still the biggest drag was financials. we'll see if stockless hold into the close. >> and concerns over energy loans senior pressure ugh s today's ceo will join us in an exclusive is it interview. facebook announcing instagram has more than 200,000
advertisers, compare that to twitter's 130,000. what does facebook understand that twitter does? >> and the man who brought you mrs. doubtfire, genies, home alone and harry potter, is producing a new movie called "the young messiah." producer, director and writer chris columbus will join us to discusses hi take on the industry at a time of much change. very much looking forward to that. >> i'm going to miss it. >> you can stick around. >> i will. what it would take to see some sort of sustained rally. michael san tolli joins us. what are you watching? >> we're watching the way the s&p 500 has certainly come back fairly impressively, but at 1920, it's essentially smack in the middle of the year-to-date range. almost in a straight line over less than two weeks. the big question after yet's pullback and today's drop earlier, was this just a reflex
bounce? does it break us out of the range sustainably? what would it take to have that happen? obviously oil bouncing does help, because mainly this is a growth and deflation scare that's been going on in the markets here, so you would have to have something that gets away from that mind-set that we'll have a perpetual global slowdown and that hurts the banks, the commodities, emerging markets. we would need to see perhaps some kind of policy action that could get the idea going that maybe they can reflay the economies out there. that's one thing being thrown around out there. and of course sustainable, believable economic growth acceleration and perhaps europe. are we going to wait for stocks toss truly cheap? giving that we're stir at a forwards earnings, that's not off that much from the times of last year. if we went down to 2011 levels of cheepness, then you're going
down another 15% to 20%, unfortunately. >> mike, i suppose oil price weakness and volume tilts no longer the surprise that it was earlier in the year. does that mean that it's safe to buy these oil-led dips and perhaps today's market moves show that? the weakness is not that much of a surprise anymore. >> certainly not a surprise, and i think as long as we're holding above the lows, yes, the volatility is okay. we can knock around in that range a little while. if there's some sense we're not going off that cliff for, so i do think there's something to be said for that. there's been so many false dawns in this market that i don't think you have a tremendous amount of confidence, even though people are itchy to say these are bargains. >> mike, thank you so much. see you shortly. let's get to our closing bell exchange. kenny follow khari is over at
post 9 and our own rick santelli. welcome, everybody. just to begin with you, kenny, what caused the turn are turnaround? >> i think it was technical. you saw the market kind of -- they defended that level. from there the market just started to make its way back. i think it's much more technical. that being said we're smack within the 1850, 1950 trading range that we've been in now for a good two months. there's no reason to break up or down unless there's a real catalyst. that's got there shall a change in a psyche, a catalyst that will call it to break up or break down. we haven't seen it yet, so we're stuck in this pittsburgh tore. >> what do you think was the spark that ended the previous ten-day rebound that we had seen before the last few days? >> statistically a tactical move. traders had a good run, they
wanted to lighten up. i think the comments out of the middle east regarding the oil and production data in the united states all combine to this witches' brew. nobody knows whether to get going or go through the door. until the uncertainly has vanished, you'll have this short trading range. forget about it, concentration on the good companies. >> it's interesting they're focusing on these technical levels. i mean, what do you think is the underlying fundamentals when people are trying to come to terms whether there's enough strength in the phet -- >> well, i don't think we can go to the fundamentals and just try to handicap with the strength of economy, because we don't like the answer it yields you. so we look towards central bankers. i think that's explains why a 30-point range on the s&p, 265-point rain on the dow,
ten-point basis, because who knows what the fundamentals really are. we're all passing around the e-mails, close to 50% of all the securities in the eurozone are trading at negative yields lower than a mineius 30 basis points deposit rate, which means they're ineligible to be purchased. what's the answer? probably go to a 40 base point negative rate. more securities are available for purchases, which then will make rates even more negative. see, these are the issues the market has to deal with. if it was looking down 9.2% or looking towards tomorrow's initial claims, but that's not what's moving the market. it's what's behind the curtain that's moving the market. i don't know how we get back to fundamentals, because they don't want a fundamental-based market, because they don't think it's sustainable on its own. >> kenny, if we look to a couple
fundamentals, some of the lower price point retailers have done relatively well. is there cause for optimism that can be drawn from that? >> i think you have to start looking at individual names. i think there's plenty of bargains, some names are getting beaten up, what were names, i think it's a stock by stock base, but i think rick made the point we're in so deep, the ecb, japan, all these nations are in way over their heads they don't know how to get out of it, which creates uncertainty. that being said, i think there are, though, as you indicated very clear opportunities for the right sides. >> keith, sort of a similar theme on that consumer, we've heard a lot of people buying into the story about the u.s. consumer here in the last couple weeks. are you doing that, whether it's at the lower end of the spectrum names or -- look at toll brothers the other day?
>> no, i'm not. i don't believe the data. i think the middle american average consumer is still squeezed. i think that's why the political circus is what it is, because it's symptomatic of the fact these people still have a pinched wallet, that everybody in america is still suffering. consumer bets -- i would rather concentrate on must-haves, on, no maerp what central bankers do. >> any specifics there? >> sure, take a like at raytheon. it has pricing power, clearly a defense leader. look as becton dickinson. they make single-use d. and in full disclosure, we recommend both those companies. >> we discussed this on this show before, when we have negative rates in places like japan, how is it that the safe haven trade is to buy the yen?
why isn't the u.s. dollar going up? >> i think because there's so much per verse corporate statistics financial structures out there that were predicated on liquidity and carry trades and borrowing one currency at a cheap rate and leveraging your position that when we get these risk-eve moments, those trades unwind and give us counterintuitive market moves like an increase to yen value against the dollar, dramatically increased against the euro, which in my opinion makes in a euro/yen such a fascinating trade. they're both committing the same sins in a large way, yet the japanese courage have i is winning, and it probably has more to lose -- >> i won't are whether the japanese currency makes the chinese currency come under pressure and ignite the whole global panics that we have seen.
>> you're giving away the secret to the end of 2016. you better watch it, kelly. >> first we have to see what comes out of the g-20. thank you, guys, good to see you. a quick programming note, james bullard will be the exclusive guest host on "squawk box" tomorrow from 7:00 a.m. to 9:00 a.m. eastern time. >> he does have a knack to move the market. the dow is up about 33 points after a big sell-off this morning. up next, bright spots in this volatile session, jane wells shines the light on two retail stocks that have been seeing green in the sea of volatility today. >> also coming up facebook, inns that graham outpacing twitter. the latest figures on how many are on the platform. you're watching cnbc first in business worldwide.
here's a look -- yesterday we told you about that benchmark. way down in houston. infirm, crude is holding in there, wti today up about 1%, a little over 32 $32, nat gatt can't seem to quite join them. >> if you have an indication, europe closed down 2%, and that was before oil started to rally. it's really leading equities over the last couple days. this could be a game changer. natural gas is being commercially exported from the lower 48 states for the first time ever. jackie deangelis has been given exclusive access to the facility in cameron, louisiana. break it down for us. >> reporter: good afternoon to you. i can finally confirm after roughly 24 hours, the vessel behind me has been fully loaded. it is preparing to launch.
this is a very exciting moment in the natural gas industry right now, in fact in the energy industry as a whole. this is demonstrating there's been a bit of a sea change here. we've got from an industry that not long ago was looking to import nat gas, to one that's unlocked a plethora of resource and is reparing to sxoert. we're going to do so companies along with cheniere ramping up. as this point the ship behind me will trp 3.6 trillion btu of liquid nat gas in its storage form, the transport form over to brazil, but chenniere expects to be sending shipments to europe and the far east.
is they began outfitting this facility roughly six years ago, a huge cap ex investment here. it does have a first mover advantage here. putting u.s. nat gas on the global market, the argument for exporting is that it makes the industry more competitive. the argument against it, of course, people are worried that domestic prices will go up. it all comes down to a crucial time in the energy industrial. we're also having that can everything about exporting crude oil. the ban has been lifted. we have a supply glut when it comes to crude also. we found resources, we unlock them, now we're marketing them, sending them abroad and it's crucial. the last point to make here in texas we've talked about how the oil and gas industry has suffered in terms of job losses.
exporting is one way to put some of those people back
to work. kelly and wilford? >> jackie, what is so ironic, is that it hangs on the price for this natural gas, which has been so low. the viability of this project of all of those jobs will depend on whether it's economic at current prices. >> right. the thing is the companies will teleand chen iere receive these supplies for 20 years to keep prices low. and march this who say prices will go up once we're competing on the global marketplace. a ten-year chart, just in 2014, we weren't exporting anything, prices spiked up to about $6. the last time we saw that over a protracted period of time was roughly 2008, of course you'll have blips for various reasons that will send prices up.
it's going to be hard so say exactly what's best hind it.
thank you, jackie. the royal bang of canada speaks with us exclusively about steps he's taking to weather the oil storm. that's coming up here on "closing bell." now shares of targets and tjx have been up to the bulk of today's session. jane wells joins us now. listen, to see a bright spot like this is remarkable. . >> reporter: here's the deal. consumer confidence is down, the stock market is volatile, people are still buying stuff. retailers are figuring out what they're going to buy and at what price. in the fourth quarter tafrgt grew sales nearly -- at least a year, that was better than expected, and online sales were much better than expected, up 34%, but free holiday shipping, steep discounts brought in sales and profit figures below wall street expectations.
ceo told analysts that but the company needs to refine that promotional strategy. then there's tjx unlike target, get this, tjx does very little business online, people came into their stores, traffic up so much that even though individual customers on average spent less, total sales and profits handily beat expectations. still gave conservative guidance, missed wall street expectations while target's guidance topped the street. for what this says about the consumer, target's cfo said the consumer is consistently inconsistent. back to you. what about weather this the weather certainly had a help for macy's jed. is that feeding into these name as well? >> so interesting. i have to go back and listen. they really -- they really did
well, their weather was their downing, and how do you continue that and be more strategic about that going forward. >> that's a good point. thank you so much, jane. jane wells keeping an eye on the two retailers today. right. with minutes before the bell, we are looking at slight gains we have weathered and bounced back from the declines. 250 points down, the dow was earlier. it's now up 50 points, so big swings once again. the s&p is up half a%. coming up, how inns that grabs is on a key advertising metric.
the analyst stair says it always to have peaked. the effects of a possible recession. first solar is searching, you heard the news here. using the biggest developer, farms, cut costs and raised its forecast for margins. for new strategies to beat back isis is terrorists, let's get back to eamon javers for more. >> reporter: what a different story than the one in the last week, the apple versus the fbi. in that fight much of the tech industry has pitted against the department of justice, but here today, which you can see behind me on this rainy day, we have tech company executives working with the u.s. government now trying to come up with a
strategy to beat back isis online and in the media. so we have tech executives here madison avenue branding experts here they've also got holy well executives, calling this madison valleywood. all at one time with executives. the meeting is going on behind us. we don't have a list of participants just yet, but it follows on the heels of a very high-level meeting that john kerry had out in hollywood. the we were might have killed eamon's sound there. it's interesting, we saw and you have the white house went out west, twitter did come forward, saying we've shut down a number of accounts and we're trying our best, but they are under a lot of pressure. >> they certainly are. >> it was sort of applauded by everyone, yet with this apple
dispute, there's much more division in terms of whether what they're doing is right or wrong. eamon is back with us. what does that exactly mean? mostly what they are is savvy in the ways they use social media. they're reaching out, and that's what they're trying to combat here at the department of justice today. the idea is with the best and brightest in silicon valley. and come up with a way to push back. but obviously the u.s. government is governmentsh better than -- and madisonsh are
better on branding and hollywood's best minds are better. to what extend is the current military attacks on isis is not enough? . we have seen isis flourish, so this is an ever you have seen over the past month to reach out. we saw earlier this month twitter stops about 125,000 they want to really stamp this out. they wanted to put out positive messages to compete out there in the marketplace to your point, where the ever to promote secure places for americans or
repressed citizens to talk is now being used eamonafter, we appreciate it. hollywood hitting weight, chris columbus of "home alone" and " "goonees" is up next. >> he was behind "mrs. doubtfire" that's a classic. >> you like it? >> of course. it's one of those things you liked as a kid and can is it enjoy as an adult. i'm not sure i can describe myself as an adult. my kids watched the movie the other night and it's timeless. afternoon's national security adviser says any afghan armed against the government has the chance to join the peace process in that country. he spot a a ceremony in kabul in which russia donated 10,000
rifles to afghan's security forces. sergei lavrov says those questions russia/u.s. cease-fire are calling for war rather than peace. el spoke with senator sam nunn. the cease-fire is supposed to take effect on saturday. dr. robert caliph has been confirmed as commissioner of the fda. and christiano ronaldo has reached another milestone. according to social media tracking companies, he's the first athlete to surpass 200 million followers on social media. he averages 135,000 new followers a day. just a tiny bit more than cnbc. that's the news update this hour. >> a little bit. >> literally puts us to shame. >> but we show wilford's
football skills, that would be all over. >> i would pay big money for that. >> see you in an hour. 30 minutes to go here, and look at this. the rally just keeps building. the dow is now up 62 points, s&p is up a little, the transports, by the way, are still lagging, but the vix is low are and nasdaq is up 39. up next a trader tells us what he's watching into the close. the 0i8 is hurting royal bank of canada, but the company says the export injure is manageable. he eet tell us how when he speaks with us exclusively, coming up. you both have a
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welcome back. a pretty strong rally. the dow is up a third of a percent, up almost half a percent, and chesapeake centering is soaring, four point energy buys 3500 wells for $2385 million. chesapeake reporting a narrower loss and cutting spending by 57%, as it deals with weaker oil prices. those shares off a very low base. >> a big rebound today, to does,
matt, why have we had this rebound? was it because i appeared on the stock exchange floor nipped of bill? or is it simply oil prices? >> if we're going to keep that, bill stay homesick and don't get better soon. we're correlated to the oil until we find something else. that's giving us the boost to break through. >> does that tell us that you can buy oil-related sell-offs now? sunk knows oil is weak. >> everyone said look for 25, and now that we're coming back, everyone is saying it's going to 35. you have to be quick and nimble. the shorts are getting squeezed. when they get squeezed, you see volatile moves. oil prices, do you traders feel that any of those have been
fundamentally solved? or are they valuation based? >> nothing has been solved. we had a number so astronomical, and it came in under that, but it's less than expected. the same thing that's going on around the world. the currency moving, we've never seen like this. it's fearful for the market. these are short-covering rallies, probably meant to be sold, at least in the near term. until then, you have to play quit. >> matt, great stuff. bill, if you're watching both matt and i wish you a speedy recovery. we were just kidding. >> everybody send him chicken soup. recovering at home. shares of royal bank of canada lower, missed weak expectation. the company did, however, raise its quarterly dividend 2.5%, and a cnbc exclusive we're joined by rbc's ceo tim mckay. i think one of the things that
investors are wrestling with is this -- what's the bigger threat to your business model right now? is it another $10 decline in oil prices? or is it negative interest rates? >> well, certainly if you look at our results user over year, largely flat despite some of the credit increases we saw mostly attributable to weakness in the oil and gas sectors, and is the producers in the u.s. market. so we largely earned through those credit challenges, and as you look at the stress testing and sensitivity, it's only 1.6% of the portfolio overall makes we wonder who you went to. >> 1.6. the look at the portfolio in canada. oil and gas industry represents about 9%, so we have a more diversified economy than most people. they think about oil and canada.
you're looking at lower interest rates and a weaker canadians dollar, certainly stimulating activity, whether it's export activity to the u.s. and other markets, increasing tourism in the country. canadians are shopping at home more instead of to the u.s., which you're sigh some of the u.s. drag from a stronger dollar, so certainly there's diversification supported by a weaker exchange rates and lower interest rates. so that diversification is causing us to expect growth, noing the challenges. >> out of s yet jen morgan said they remained committed to the trading business. all of those sorts of businesses where most other banks are pulling back their investment levels. what's your take on that? this volatility must make it a nightmare. >> volt tilt is the keyword there. they're up 63% year over year.
we saw a bit of a rebound, but certainly volatility preys on clients' confidence to move forward. you look at an origination business. we did not see an ip on in the u.s. nor canadian marketplace the entire month of january. that's unprecedented, i think. causes issuers to stay on the sidelines, which is hurting activity. as you look at that, volume it illustrate certainly prays on the confident. we look at the clients we serve. we have withdrawn capital, a bit from our equity trading businesses, but overall, we do serve clients there and saw healthier activity through q1, but were down a bit of capital in the trading business. >> i wonder dave, that bring me back to my opening question.
how much would negative interest rates if they became a fact, how much would that hurt your bit if it would? relative to a further drop in oil prices? >> that's hard to gauge. depends on how long oil prices stay down and how long rates stay down. we're certainly forecasting oil prices to rebound somewhat near $40 by year end, so the pain will alleviate a bit on the economy. as far as negative interest rates we're in unprecedented territory, we're testing systems whether we can handle negative interest rates. certainly we have more experience on the capital markets and wealth management and trading side of things. it depends on how much we decide to pass on and how much we decide to bear in our margins, so there's so many variables that go into that decision that we haven't faced before. it's hard for me to predict, but certainly i would expect there would be margin compression in a negative rate environment. >> dave, a quick question to round things off. obviously capital market has a
big presence in london. if the uk left the eu, would you move those guys? >> it's hard for me to make that call. obviously we watch the situation with great interest and the debate that goes on in the uk. it would be very proo mature for me to comment on the strategy, but we have to evaluate the situation and look at the opportunities to run or business in a changed environment. >> okay. dave, fair enough, sitting on the fence there, i understand why. dave mckay from rbc. minutes to go. the dow has rebounded significantly dural today's trade. 71 points, down 260 at one point. the s&p up a similar amount and nasdaq up the best part of 1%. when instagram first launched advertisers were not immediately drawn to the platform, but now there are more than 200,000 monthly active advertisers. up next the marketing success
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a big bounceback, that's because wti has rallied as we look at 32, 35, all the three major indices in positive territory. avis budget group in a tailspin, as we reported late jed, the car rental company citing headwinds as you can see, down 25%. and hertz down more than 12. advertisers have signed on to instagram. julia boorstin joins us with how twitter has hand that success.
instagram's advertisers base far outpacing twitter's advertisers, and twitters owned its self-serve platform nearly four years ago. instagram had the advantage of -- and the social giant makes it easy for brands to buy across -- and instagram is making the case that the ads work. its revenue is certainly growing much faster, kelly? >> i'm going to jump in here.
the other interesting thing is the size of the companies that are advertising with the lines of instagram. was that down to price point entry or other factors? >> once you again to 200,000 advertisers, you have to get a lot of small businesses in there. there simply are not that -- but 98 out of the 100 biggest advertisers are also advertising on instagram. instagram and facebook makes it easy to advertise. if you're a big advertiser, coca-cola, j. crew, one of these big brands that does spent a lot of money on advertising, they also make it so a small retailer can go online and easily set up an ad purchase. it's easy just to talk on more instagram ads and see how they work. >> this is a separate issue, but
if they ads are showing on instagram and facebook, does that mean they aren't affected by ad blockers? >> that's right. if an ad shows up in your newsfeed on facebook or phone, or instagram feed, it cannot be taking out by ad blockers. right now blockers are only working in safari, in the web browser. once you're looking a instagram and going there you your feed, those ads pop up just like any other post, so users see them as if they're part of their regular feed. right now the technology cannot filter them out either. >> fascinating. julia, thank you. wilford, that will makes these platforms more and more powerful. >> and the targeting ad ads i always get, food based. they must know i'm really hungry. bounced back sharply up a
little less, now only 30 points, but significantly better than a few hours ago. >> very different picture than on the open. up next we have somebody who says this market has seen the lows of 2016. he'll make his case after the break. 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)
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welcome back, we have the dow up 40 points, let's get straight to the markets. kathy jones from charles schwab. thanks for joining us. this oil-based rebound, can we feel comfortable that we buy oil-based dips? >> i doubt that. i don't know that we have any confidence about where the floor is on oil prices at this stage of the game. in the past we've had opec stepping in with cutbacks to establish a floor. it doesn't appear that we have that now. with opec not acting like a cartel, the free market will establish the price, it could certainly by lower from here. >> tell us, sir, where does it go from here? >> i think we have the jamie
dimon bottom a few weeks ago and now the jackie deangelis bottom. the big news was the export of natural gas, first time ever we're exporting natural gas. that put a bit into the cheniere stock itself. i think obviously there's some derivatives tied to brazil and oil, and we tested the louse tess fibonacci level. >> i know people are watch figure oil, but could even some -- if that finds its footing, do you think that could help the broader market? lower for longer is better, as long as we don't collapse beloaned -- in therms of the range, as long as we stay lower for longer that helps india, the
united states, helps the consumer, a lot of things. and this morning, you know, obviously jgbs are negative, but, you know, 50 basis points, and if you look at the yield on the russell 200 on, 1.7%, as soon as it -- they rip the russell. >> they're very similar yields, those two. are those the things you prefer to buy? >> stocks and bonds are not the same, to the yield on the russell really has little to do with the yield on the bond market. >> there may be people on the sidelines that say i can get 1.7% and it's not sensitive as much to international markets, maybe -- >> dollar appreciation -- >> i could see somebody making that case. >> i would not make that case. you lose the -- if you chase yield in equities, you've got
nothing when the market goes down. you break diversification. that just is not the way the position -- >> what are you buys for yield then? >> we are sticking with investment-agreed corporate bonds, you're getting somewhere in the 3% region five-year, that's not too bad. if you're worried about interest inflation picking up, you can buy treasury tips, because they are inflation-adjusted. actually the breakeven is close to where current inflation is, so if you're reluctant to buy either treasuries, because you're worried about it, but you need somebody in the portfolio, tips would be the way to go. >> real quick financials, are not participating in the rally. does that have to change? >> i think there's a lot of derivatives tied to oil and brazil, and emerging markets, and the financialing have been tied to that. i think if oil does stabilize above 30 and starts to move
higher that obviously will be a help. once we get past super tuesday, i think we'll have a rally to november. >> it actually turns on you historically that's been the case, weak for the five days into super tuesday and maybe we get clarity, but this time around, who knows? >> who knows? after the break, of course, we'll have the actual close. as things stands, it is dow is up 52 1/2 points. after the bell, donald trump's win last night in the nevada caucus has democrats and republicans wondering if the political outsider can be stopped from gaining the nomination and maybe the white house? we'll tell you more. you're watching cnbc, first in business worldwide. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.
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milk it. e*trade is all about seizing opportunity. welcome back to "closing bell." a couple minutes left. mary thompson has joined me. what driven this bell? >> it's been an interesting day. a big sharp sell-off in the morning, the global sell offcoming into that, but once again oil is the lead story. we did see oil lower earlier, and then it bounced back after the distillates, the drawdown in inventory and distillates of gasoline, and that turned.
and the stock 600 in europe ended down just over 2%. that's because oil hadn't bounced yet. and of the s&p today, one sector hasn't enjoyed it, still in the red. >> we should point out it too has recovered. basically i believe and a number of other people believe are being hid by a double whammy. also the flat and yield curve. if you look at what's happened in the yield, some of the big banks most notably, if you look at a chart of certainly bank of america, they track almost exclusively with where the yield on the ten-year has gone. what they're looking for is a steeper yield curve. that would help with the earnings, but the concerns continue to be the flat yield. >> mary, very quickly, for lots of volatility, what are volumes like today? >> very low. once again it's something we've seen, not a lot of participate.
thank you very much. as we approach the close, 63 points up for the dow. we have the bell being rung by cytomix. kelly is it evan will pick up for the 4:00 hour. thanks for watching. thank you. welcome to "closing bell", everybody. what a reversal we have seen again today, this time to the up side after sharp losses earlier in the session s. dow closing higher, s&p 500 up by eight about four tenths of a percent. or 39 points closing at 45.42. oil was higher today. we've also got a slew of earnings after the bell today, and our reporters are standing by. josh lipton covering hewlett pack add, dominic which you
breaking down salesforce results, and thank you all. as soon as we do get those numbers, we'll bring them to you accordingly. today's panel is mike santolli, along with carol rob, and steve grasso will also join us shooterly right off the floor. mike, a real interesting turnaround. maybe it's just technical. >> obviously we're following oil, so a bit of a kick save. if you didn't see the intra-day action, you would say we pulled back 21 points yesterday from a very widely watched resistance level. we gained back less than half of that. not so bad. given the fact really on a disappointing economic number, the services, even though it's not a huge market mover. i do think you can say at least the market is not going to give up all that rally. there were a couple things that were weigh.
i think oil is the tail that continue toss wag this dog. i think perhaps there was some profit taking earlier in the day. and once those names came back down again, people feeling good getting back in. unbelievable, obvious live. the bond market still feeling kind of like i do, that there's quite a bit of time left to go here. it's also a lot of stock specific stuff coming to the surface, whether it's surges related, looking good at avis again, hertz down, and flip side, you had nice rebounds some of the beaden down energy names, chesapeake, had assets sales, and what do you think more
broadly what's going on? >> it was a risk aversion trade, and more broadly speaking, if we can hold crude to above the lows, i think you could be okay. the higher credit market firmed up just slightly. not so great, but better than yesterday. we're at about the middle of what we traded all year. they market is totallyant, takes its lead from oil. people talk about the correlation off, can't say that today, right? you saw that at 10/30, where did it go? in lockstep. what's the canary in the coal
mine? it's oil. for global growth, it's oil. a lot of this does -- or having both responding to the prospects, so citigroup, for example. where it's cutting the global growth, 2.5 to 2.7%. you're supposeding to growth well above that level. >> i'm surprised peer are starting to catch up. the lack of the catalyst, it was really all pointing in that the dress, so the fact that everybody is so surprised that the global economy is slowing somewhat, that in and of itself
is somewhat surprising. i'm such the opt 'tis, but the one bright spot, the u.s. consumer, some of the names in retail, where the consumer has been showing up, things like t.j. max, even target, that to me is carbly optimistic. the fact that some of the this is oil savings is in fact potential being spent. the problem is there's too little inflation. that's almost the name as the gnome nat growth figure. when you're at 2%, 3%, it's too close to zero. businesses operate in a nominal world. they budget for too many line. we trade in a global economy
now, so we all have to be at least respectful of that idea. >> and that helps explain some of the volatility. >> you can see the salesforce earns, and hewlett-packard, josh lipton has those numbers. hi, josh. let's get you the numbers. hp reporting 36 cents on 12.25 billion. the street was looking for 36 cents on 12.2 billion. personal systems, pcs, falling 13% to 7.5 billions. noting a return of more than $1 billion to shareholders. the guide, verse a 39 cent
estimate, and reaffirming the full year. i did just have the opportunity to speak to dion wise her, who just walked me through the quarter in general. saying he was pleased with the company's performance, especially with how it performed in personal systems. he acknowledged, listen, tough market conditions in the pc, he's looking for, he said several tough quarters ahead. however, he also was optimistic about the opportunities there. he talked about, how many old pcs are out there, so acknowledges a lot of potential upgrade, as well as windows ten. at for printing, again a challenging market. we know consumers don't buy printers like they used to. and we'll be on the call at 5:00 p.m. eastern. >> thank you so much, josh. every time you look at pcs,
everyone says, is that headwind over? it's going to be very telling to see the price action after the fact to see if that's over, but intel very correlated with the pc units. when you look at nvidia, they used to have a 40% reliance on pc market, now it's a 10% relian reliance, so don't lump a stock like that in the likes of other chips. >> everyone is say it's time for value -- there's nothing -- it's under seven times early, meaning cheap. if it's too cheap, then you're in trouble. >> it looks very cheap when you have to be looking at this on a forward-looking basis and really have a thesis for what is going to make this turnaround or at
least stop the bleeding. i think that's where that value coming into play. we should tell you the headline numbers, earnings per share coming in at 19 cents, that matches the average andist on wall street. sales coming in slightly better. the averages was for 1.president billion. what may be driving things is the outlook.
a boost to its current and full-year guidance, and those shares up again by about 7%, the setup as we go into this, kelly, was was a stock pretty much flat, but has lost about 20% of the value year old to date, a lot of these cloud-based software companies have been under intense investor scrutiny. the momentum has fallen out of a lot of these names. salesforce was one of them, but perhaps against the set up, year to date heading into this numbers. 9 back over to you guys. >> this is really interesting. dom, thank you. by the way, you should catch jim cramer's interyew with marc b i benioff. a growthy name that had been struggling, some instrument concerns, and now we get these
models. to transfer over to the application business? or do you go with the workday or the crm? i think the market has told us they're plays for s.a.p. and oracle, to mike's point, until the market decides to go in a different direction, i think you have to take the market's lead. >> one that's very pricey, this is where the company is obviously very solid, but is particularly after this is boundsing in the after-hours. i would be curies to hear about the breakdown of the guidance, what's going on, and when i think about the companies whour out there and what it's going to take for this type of company to
again the grown it has, i have some concerns about it. i think a lot of the big companies out there that use salesforce, a lot of the smaller companies that this may know be as much of a fit for. with anedly 82 stock, so you're sees some relief, but the big be you'll get maybe in the call is not just the competitive threat. this whole ecosystem i think people have a lot of questions about, now it seems like the boom might have peaked. >> with about 6.6% salesforce. we have an earnings on i mac.
julia? >> hey, kelly. that's right, i mac earnings missed estimates, reporting an adjusted earnings versus expectations of 43 cents per share, but the revenuesium in stronger than expectations. the only note here we have in this earnings report is that the company has raised the full-year installation guidance, the number of new theaters it expects to install from the rate of 115 to 120 to a rain of so now expects to installed about 20 more theaters in 2016 than it had previously announced. kelly, back over to you. >> julia, thank you. steve, you know, just a thought here as we're sifting through these results, and putting it into the context of the market, what do you think this tells us going into the rest of the week? >> i think you have to look at where the market -- you said it was a light volume day.
i think that's very telling. there's been a lot of hedge funds that have gotten whacked last year and came out of the gates now, so people are sitting on their hands. that's why you see this volatility. you have to see where they're paying for the growth. to me early on in the day, when you saw utilities outperforming, it just goes to show you that people are still a bit nervous about where they're getting yield. everyone knows the action of the ten-year, everyone knows you could be pushing us into a recession, so i think people are very cautious and keeping it very tight. >> i hope you don't mean i'm pushing us into a recession. >> no, no, another woman with a totally different voice. >> thank you for joining us. and we'll see more of you coming up on "fast money." appreciate it. steve and the crew will be talking to tom demark, who has three charts that could spell doom, he says, for the market. definitely don't want to miss that. up next more on salesforce. what that says about the outlook
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salesforce is popping with strong guidance for the next quarter. joel fish bien, got a buy realtying with a price target. welcome to you. does this good afternoon, kelly. >> tell you what you see in this results and how this puts you on the path to the price target. >> fantastic results. constant currency, so raised guidance. the results looked really good. we want to get beneath the surface, but our guess is it's the multiproduct strategy and the platform that's been growing. >> you dial back a bit, the stock has gotten sideways for
two years even as the company has continued to deliver on growth. clearly the stock kind of ran ahead in terms of valuation. obviously you think the stock can trade much higher, but what persuades the market? >> yeah, i think it's two things. first of all, we're in an environment where people are paying for earnings and cash flow, right? so the low multiple cash flow names like oracle and s.a.p. what's the catalyst i think is the fact that the expanding margins so higher profitability, along with the top-line growth will make investors come back, and the second thing is that we will get back into an m & a environment in software. we think the space continues to consolidate, salesforce has been speculated before to be in that group, and we think that will come back again. i think those two factors will drive the stock higher over the next year.
>> joel, it's carol roth. from an organic top-line standpoint, can you talk a bit over the next three to five years about what segments of the market you see that growth coming from? is that from the large corporate clients? or do you see sales force making more inroads in the middle to smaller business space? >> it's actually the larger customers. what you've seen is the number one statistic that we actually track is the number of subscriptions per subscriber. how many products are the customers actually buys -- large customers buying from salesforce, so companies like ge, toyota and glaxosmithkline, these very large customers are buying multiple products, spending multiple millions of dollars per year with salesforce. we think the area that will drive the company is threefold -- number one, the marketing platform, which they're selling to reach the customers through marketing
programs. number two is the platform as a service, which they're actually allowing theirs customers to develop applications, and the third one is the an littics. they have released a product caused wave, which is going bangbusters, so large customers, multiproducts is what will drive saleforce going forward. >> thanks for joining us. >> thank you. joel fishbien. restoration heart ware, seema mody, what is happens? >> these are preliminary results, sending shares sharply lower. the retailers sees the fourth quarter eps at 99 cents versus the original estimate of 1.02. retch of 647 million, that too below estimates of 711. in the -- the company mentioning increased volatility in the stock market, the company also continues to see underperformance in markets affected by energy, oil currency, fluctuations, saying
its attempt to drive incremental revenue through increased promotional activity in the fourth quarter was less successful than in prior periods. so a lot here in this press release, but shares of restoration hardware falling more than 18% on this news. back to you. >> judd want to point out williams sonoma also falling in simply. you'll see it plunging as well, down about 8.5%. thank you. mike, what do you think? >> the response is what you feared a bit, some kind of feed-through. >> but it's very interesting, when you see home depot and lowe's, people investing in their homes that way, but not necessarily on the furnishings side. >> i also wonder if people will use this, ko many bien it with nordstrom's results and say there is a clear pivot from the luxury side of the things to more of the down market. >> a very discretionary type of
product. >> you think a $7,000 sofa is discretionary? >> exactly, or some 800-pound armoire that you might have to have. so also, this has been kind of a battleground stock. for a while it was a revival story. >> that's true. coming up, we'll keep an eye on both these names for you. but hospital mogul tillman furtida will join us, and his new cnbc is show. but first famed film director and producer chris columbus is here, the man behind films, tells us how streaming video is changing the way moves are made and 10sold, after this.
welcome back. movies are the talk of the town as hollywood gears up for sunday's oscars our next guest is behind many classic movies. now chris columbus is out with a new movie he is producing called "the young messiah" a bit of a departure. welcome to post 9. >> this is exciting. >> would you ever do a film about wall street? >> i think the best one has been done. i think martin scorsese captured it. i don't know if it's real, but i
loved it. >> the "young messiah". >> one year of his life at 7. there's no scripture, nothing that -- in the bible that has anything to do with jesus as a young boy, just one senses. this was a book by anne rise, it was an amazing story. they did the screenplay and we're going to release the film. it's a beautiful, beautiful story. >> can you talk a bit about the struggles with hollywood embracesing conservatism? obviously we've seen recent success like "american sniper" "the bible" but it seems hollywood has a bit of a challenge. >> but i don't think hour film is conservative. i think it's just a great story about a young boy, at age 7, is trying to come to terms with who he is. as a conservative piece of filmmaking, no, i see it as
emotional. >> no challenges getting it made? >> there was no challenges in that respect, no. >> what about as a general matter, the sort of conventional wisdom being sort of mid sized studio pictures don't get made anymore. >> i think it's changed a lot. with no franchises and so many superhero films, "harry potter" being rebooted, "star wars" being rebotted, it's a challenging time for the midrange movies. we have a superstar starring in our movie, the young messiah, but it is a tough time. that's why part of my company wants to help young filmmakers. we have a company called maiden voyage that helps young filmmakers make their movies. >> i wonder just has to do with the fact there seems to be not enough variety, not enough diversity. do you think that's partly
reflective of making films -- >> i don't think it's reflective of the environment. i think part of it is reflective of the academy, but you can't judge the academy as a whole. people make decisions on a whim who they're going to vote for. i've heard horror stories of how people vote, so things do need to change. >> the academy is like wall street? >> well, it's the academy. >> it's wall street, a big -- >> nobody really talks to each other and decides who they're going to vote for. >> you made "home alone" i remember had i was little, i might have been 7 or 8, and "home alone" was playing. i'm a bit of a sap, but the ending, i was in tears. i'm bawling and so horrified, i'm so young at a friend's house, and trying to hide how much it touched me. thuf way of really making these amazingly vivid scenes. i think i read somewhere in this
new movie, somebody said it's one of the top five scenes they had seen in a movie. how do you tap into this powerful relationship, which in both cases seemed to touch on a young boy and his mother. i remember sees "the godfather part 2." that stuck with me. it's been part of almost every film i made. can you lose your family? can you lose touch? and who am i in this family? what is my position here? i love exploring that. that's what i'm drawn to. >> i'm just surprised that more filmmakers haven't done that. it seems there's so many films built on an action sequence, with maybe a subplot, but it's thin. i wonder why, you've had such success with it and why more haven't tried to emulate that. >> i'm drawn to extreme emotion, whether it's laughter, because you're laughing hysterically, and by the end of the film you are crying, and i i am drawn to those scenes. >> do you have a scene or
favorite moment from any of the movies? >> a favorite scene would probably be -- it probably would be a scene in "mrs. doubtfire" when robin at the end of the film comes back and picks up his kids. it moves me to this day. also when robin is changing clothes and he's changing for the social worker, he ad-libbed that scene 16 times, even time a different performance. that was one of the great memories i have. >> would you make your next film for netflix? >> i love netflix. >> i'm cloir to carey, who did these and i thought that was a brilliant idea for that film. so many more people got to see the film. that's what it's about. if your midrange films aren't going to be seen by an audience, why not get them seen by as many as possible. >> thank you. we love everything you have done. >> thank you very much. chris columbus "the film is
"the young messiah." the federal aviation administration announcing new rule-making committee to work on a regulatory framework alones unmanned aircraft or drones to fly over public areas. it's a key feat fours for envisioned by am con and google. the latest report by amnesty international warms that human rights are under attack more now than ever before. the report contains some alarming statistics. 12 -- 122 countries tortured people and more than 60 million people were displaced from their homes worldwide. certain new york city restaurants can be fined for not posting salt warnings on their menus. that's the ruling handed down from a state supreme court judge allowing the still to enforce the first of its kind rule. kate middleton showing out of her tennis skills. she joined dozens of students in
edinborough for a workshop hosted by judy murray. the mother of pro tennis player andy murray. she's a very avi tennis player, by the way. kel kelly, back to you. >> thank you so much, sue. el brands is reporting results. let's get to seema with thoughs numbers. >> here we go. reporting earnings that came well bottom expectations verse the expect -- the estimate of 2.05. revenues better than expected at 4.4. comps up 6% in february, in line with expectations, but guidance weak. weak year earnings versus the estimate of 65 cents. its full-year guidance also coming in weaker than expected. that's why we're looking at shares down by around 2.6%. on the conference call looking
for an update that victoria's secret ceo is stepping down. tourney had been returning victoria's secret for the past decade. right now we're looking at l brands moving lower on disappointing guidance. seema, thank you. >> one of the beoperators in the chain store area, if the next couple quarters look soft that's going to be a concern. i think there's room for this stock to pull back. >> what's interesting is the january guidance had come down because they moved the semiannual sale, but the fact that now this is going to seep into the whole year is a very different story than just in the market, so it's not surprising we're seeing a bit of down action. up next, bill yor nair restaurant and casino owner tillman fertitta is here.
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just happening by tim cook. eamon javersdowns me. >> this is the first time we heard from tim cook, giving an interview to abc news. in that interview he frames it all as an issue of safety. >> you think safety of the public is incredibly important. safety of our kids, safety of our families is very important. the protection of people's data is incredibly important. the trade-off is we know that doing this could expos people to incredible vulnerabilities. this is not something we would create. >> in your quiet moments, do you have any concern that you might be able to prevent a terrorist attack by breaking into that phone? >> david, some things are hard, and some things are right, and
some things are aboboth. this is one of those things. >> under enormous personal pressure here. he made a decision that put him at odds with the u.s. government. it's caused global and national controversy. he's fighting it out in the courts right now. he's sending letters to his own employees explaining his decision-making. there are supporter and detractors interestingly apple has put out a new statement in which they are citing some of the poll numbers turns in their favor. earlier we saw polls suggesting that most americans sided with the fbi here, that apple should work for unlock that phone of that terrorist on the san bernardino attacks. now public opinion might be shifting here. tim cook obviously trying to go public here and make his case, kelly. >> eamon, thanks a lot. guys, just wondering, mike, this is going to be something that continues to move the argument about what they should do here. >> for tim cook putting a face
to it is part of this idea that apple doesn't want to be seen as being knee-jerk arbitrarily opposing any measures. it's a thoughtful position, something they think is better long term for customers. >> yeah. we'll keep an eye out and see how it works for them. now to a read on the u.s. consumer and economy with someone who oversees more than 500 properties. billionaire tilman fertitta is here. you have a show coming up on cnbc. >> yes, i do. this is not just a promotion of that. >> we can talk about the economy in the whole country, if i like, especially houston. >> you have a ton of employees, operations, where really the oil crisis is hitting home. what are you experiencing? >> right now we're not experiencing a lot. it's just starting to happen now, because oil has stayed
around 30 now for a few months, but you know, it takes a while for the lag to catch up. people are starting to get laid off now, but you also have growth with apartments, restaurants, hotels, that it's taken a while. a bit of it is the overbuilt, but i think by summertime people in houston will know they got hit over the head with a baseball bat, because it is coming. >> you think it's going to get a lot worse? >> a lot worse. in everyday life, only retail is feeling a bit right now. apartments are starting to feel it. just now you're starting to get lots and lots of layoffs. >> you've done something with a lot of your restaurants. something that people will know, bubba gump. >> mastro's, martin's. >> but one thing you've done has been able to press operating margins. so, you know, you go back to the 2008 function crisis, you were able to help shore up
operations. is there anything left to press? >> what's happened is anytime you start having a tough economy around the world, your cost of sales for products will go down, but with the new standards in labor costs and all these states are saying new minimum wage is $15, $12 with no them credit, so and you have waiter who may make $400 that night, but you're still paying them $15 to $12 an hour, so labor has become the big goliath that hurts our industry, it's not the cost of sales. >> i want to talk about your new show "billion dollars buyer" you're getting small business owners a really big break. can you talk about what your first big break was? >> gosh, what was my first big break? finding a group of partners arguing with themselves and i was ability to get out of the
development business world in texas and buy them out of the one restaurant, because they were all arguing. that was my big break, being a small partner, a developer, and buying them out. >> has the world gotten any easy for somebody who has a new production, new service, because they can sell it if you're a small player out there, you can sell there ebay, amazon? is the entrepreneurship economy gotten any better? >> definitely easier because of the internet. that's how all these new companies get started is through the internet. what i'm finding out by meeting all these small, small companies, though, they don't understand volume and selling to the masses, and they're selling retail. i'm trying to teach them if you scale up, get your costs down, you'll make more money selling to wholesale, but these are small companies with great products. it's kind of fun to mentor and you buy from some and some you
don't. >> a lot like the other successful shows. are you going to vote for donald trump? >> why would you ask me that on the air? if he as the nominee, i would have to look at it. are you a ted cruz guy? >> i'm a ted cruz guy, a hillary guy, i'm all in. >> mr. america here. >> and tomorrow my university that i'm chairman of the board, we're hosting the republican debate in houston, so i'll be there tomorrow helping host that event. that will be a rollicking one. i personally can't wait. thank you so much for joining us. >> absolutely. glad to be here. be sure to quags "billion dollar buyer" it premieres tuesday on cnbc march 22 at 10:00 p.m. up next, what the rise of robots could mean for the future of jobs in america? we're back in two.
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automation. we're joined by derek thompson of the atlantic, who wrote last summer about the threat to the workplace. are you still surprised how high that number was? >> yeah, that's a high number. you look at $20 an hour, that's $40,000 a year. that's about the median income in the u.s. you're talking about basically half of all jobs, and 93% chance of automation. that's a pretty high numbers. >> what are some examples of the jobs you think ougautomation is going to take. >> you have to look at the most common jobs that exist, they are cashier, food and bench worker, retail salesperson and driving, whether it's taxis or buses. it doesn't take a lot of imagination to see that all of these jobs currently have technology that could replace them. whether it's checkout screens or a self-driving car. so it really is a lot of the
most common jobs that exist. >> what can we do to help some of the lower-wage workers who keep saying i need a higher minimum wage? we had the woman from yelp with her open letter in the last week, a lot of people saying i deserve more, deserve more. what can we do to show them this threat so that they understand that, you know, that maybe not just their job is at risk and money is at risk, but eventually a rho robot might replace them? >> it's different. you can raise minimum wages, but that will make lab more expensive, as the straw tour just sid, expensive labor makes it all that more seductive to replace it with technology. it's useful to have health care, to have the safety net to make sure you protect people, and i think you'll hear a lot of people talk about a universal basic income, something like a minimum income that everyone is
ga guaranteed. if this all happens over a relatively long period of time in a gradual way that maybe you don't notice it as some kind of a sudden break, is it even something one of to address in any way with policy? >> this is a really good question. there's a lot saying, you know, where are the robots right now, 200,000 jobs being created per month and unemployment is below 5%. this is something we'll see in future recessions. all of the chains that you've seen, manufacturing employment and losses in manufacturing have happened during recessions. that's when employers say there's a downturn and i'll replace a lot of people that i have right now, labor with capital so keep your eye on the next recession, the recession after that. in terms of what we should do. i really do think it's important to think about either tax side solutions, juggling the earned income tax credit or continuing to strengthen the safety net with universal health care. >> my job is with the flourishing of jobs for everybody that pay over $20 an hour. i understand that might be
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welcome back. donald trump winning nevada, taking his third state in a row in primary season. as the streak continues, what will other candidates have to do to catch up? john harwood has more for us now. john? >> reporter: kelly, they have got to start winning and fast. if you take a look at what the results of nevada did to the delegate race, here are the numbers. donald trump's got 82 delegates so far, way more than either cruz or rubio who are tied at 17. john kasich and ben carson behind that. now the race gets national very quickly. you go to march 1st which is super tuesday. 11 states on the board. donald trump is leading in most of them. here's some key targets though. ted cruz has got to win his native texas. he does have a slight lead in the polls. john kasich is looking to pick up delegates in vermont and marco rubio in tennessee but difficult to see where either of those men win a race on march 1st. then it really gets big on march
the 15th. that's where the race turns to winner take all delegate selections and then you have very giant states that rivals will have to win to block donald trump. ted cruz has a shot in north carolina, polled relatively well there. you've got florida, which is marco rubio's home state who trails badly to donald trump right now. got to win there and john kasich is narrowly behind donald trump in the state of ohio. must-win for john kasich there if he has any shot of stopping donald trump, kelly. >> yeah. that's where everyone will be watching. a couple of key states coming up, john. thank you so much. our john harwood, and the debate tomorrow night which could be interesting, too, as we mentioned. sales force reporting earnings earlier this morning. ceo mark benioff with more on those reports when we come right back.
the federal government's deadline looms, but apple refuses to budge. an explosive issue that could have epic consequences. "squawk alley" tomorrow at 11:00 eastern on cnbc. >> this was a quarter where every single deal that we wanted to take down we did, including two of the largest deals in our company's history which were massive nine-digit transactions. we just had a phenomenal end to the fiscal year. >> that is salesforce ceo mark benioff talking about earnings and m & a with "mad money"'s jim
cramer. catch the entire interview tonight at 6:00 p.m. the stock is it even higher after reporting results earlier this hour, nearly up 9%, and he was uncharacteristically sunny, wasn't he, mike? >> he was. obviously going to give the pep talk and gave it again. it looks like they managed to deliver enough behind that. given that the stock was down so much, so this is one of those that, if in fact they have faith in the story being intact you can hide there. >> i wonder if it helps the whole sector. a lot of the more growthy names that people were worried about. >> it's interesting. the way i view a lot of these companies is really as individual entities. i see that there are certain companies that are run particularly well, that certainly have the lead from a technology standpoint, from a customer standpoint so i think that there are going to be winners and losers throughout the sector, and i think trying to play it as a sector would be a mistake. >> real quick, restoration hardware, check on those shares speaking of winners and losers. a real tough one, as you pointed out, but they are just continuing in some ways their free fall. >> a lot of scrutiny on their
claim that it was a weak stock market and perhaps some oil effect so i do think you'll have a lot of people extra lating this. >> and a lot of consumer names coming up tomorrow so we'll see if it's more of a secular story. >> our attention is shifting there already. >> guys, thanks so much for joining me. mike santolli and carol roth. "fast money" starts right now. >> live from the nasdaq market side i'm melissa lee. tonight on "fast," think this market is cause for concern? you ain't seen nothing yet, three terrifying charts for chutzpah doom for the dow and something happened with facebook that has some traders thinking the stock could be undervalued. we'll tell what you that is and why it could have you liking the stock. later, a very simple strategy is crushing the market this year, and it's got some traders acting, well, piggy. we'll explain. but, first, we start with the