from bloomberg world headquarters, good afternoon. i am betty liu. stocks are giving up some of their gains after yesterday's fed rally. the battle over board compensation -- pharmaceutical companies in particular shell out huge blocks. can directors still serve the ?cashing of shareholders in on " star wars -- can disney use the revenue to offset declining revenue? i want to head to the markets for julie hyman has the latest. we seem to be bouncing around on the lows. yes, bouncing off a little bit, but still down on the day. back to the lows of the session.

all three major averages taking a hit a day after the fed raised rates as investors say ok, now what happens, after they waited for that interest rate increase for so very long. the focus has been shifting back to commodities, which has been the tale wagging the commodity dog. take a look at my terminal. you will see this illustrated more in detail. a broad-based selloff. utilities are doing well. rates are coming back down. otherwise, steep selling of financials, tax, consumer discretionary's, industrials -- all lower. it is still materials taking the biggest piece on a percentage basis. crude oil is falling. we have seen a resumption of the selling. we are seeing wti trade near a six-year low. oil,e very least for crude

even though it has been bouncing around, obviously the losing streak it has been on as the glutton continues in the oil market. betty: it does, and there is a glut in the metals market as well. pricesyou have gold falling. you are looking at a multi-year low of about five years as it falls another 2.4% today. it is hitting the minors as well. anything having to do with mining today is falling. this is the continuation of a long losing streak for many mining stocks -- newmont, taking a hit. it does come back to currencies. we see the dollar strengthened in the wake of the fed rate increase. the dollar-euro down to the lows of the session, 1.0804. we were looking at a currency forecast coming from bnp paribas -- the french franc looks at march.04 by the end of

versus the dollar. not only do we see this losing streak for the euro versus the dollar as we have divergent policy pans in europe and the united states, but also the forecast for that continue, and also the continued euro weakness. betty: thank you so much. julie hyman there at the markets desk. let's check the headlines with the bloomberg first word news. running greeley has more. brennan -- brendan greeley has more. brendan: the president traveled to mclean, virginia, to meet with officials from the terrorism center any updated the nation. president obama: at this moment our intelligence and counterterrorism professionals do not have any specific and credible information about an attack on the homeland. brendan: the president is trying to reassure americans the government is doing all it can to protect them. the u.s., the u.k., and france, are going after the islamic state's money, asking the united

nations security council to find and cut off the source of funds. they want to freeze the assets of middlemen to facilitate the legal oil trade. house speaker paul ryan says congress will be ready to move on obamacare in 2016. speaker ryan: when we return in january, the house will put an obamacare repeal bill on the floor and pass it, and put a on the president's desk. the bill will also defund planned parenthood. we'll keep working to give families relief from the law while we work to dismantle it and replace it altogether. brendan: ryan said he also feels good about the prospects for the spending bill under consideration. presidential candidate ben carson has canceled a week-long trip to israel and africa citing security concerns. he is been trying to beef up his foreign-policy credentials. you get more on these and other breaking stories 24 hours a day

at the new bloomberg.com. betty: thank you. the fed finally raise rates after almost a decade testing the economy's ability to stand on its own. now that interest rates are off the floor, what is next for the fed? joining us now is economist ethan harris, cohead of global economic research at bank of america merrill lynch. he previously spent nine years at the new york fed. and, i have to say, we have been talking up this all day. i want you to add something new to the dialogue. what do we do now, post-rate hike? seeing the day's trade today, what do you say? mr. harris i think we take a long winter nap now. betty: [laughter] mr. harris the fed is finally out of the picture. they will not hike at the january meeting. that is inconsistent with the gradual pace argument. the excitement will come back all again in march when they have the second meeting. so, right now we are back to

watching the day, as your earlier story suggests, it also watching the moments in commodity markets. in terms of those stories, the u.s. economy still looks ok, although it is very mixed news. where also beginning to see a little bit of inflation in the economy, hopefully -- betty: right. mr. harris wage pickup. hopefully we are moving in the right direction. betty: i am seeing how yields have traded post-rate hike. the you think the fed is on its way. i know we are only 24 hours/--- 24 hours-plus, but you think they are on the way to achieving the objective here? mr. harris: this is an important mark -- moment. one of the reasons equity wasets reacted favorably the fed saying we are not into the emergency room anymore, so we can take the are stepped into the hallway, and that is what we are doing. i have made it clear there are more hikes to come.

it will be slow. the fed will delay hiking if they feel the economy and the markets cannot handle it, but it is an important step. if the fed never hikes rates, we never get back to a normal position where the fed can cut in case of a crisis. so, it is a small, but important milestone. betty: it is, indeed, and we did see yields for the two-year go up above 1%, but it was not a dramatic move. a lot of this has been priced into the market. what i thought was interesting also is that volatility has come down -- you know, those price gyrations -- while we have seen some of them, the volatility, if you look at the vix index has started to come down in the equity markets. what does that tell you exactly, ethan? mr. harris: you had a lot of anxiety if you go back to the devaluation by china -- china's evaluation of their currency in august you have the massive ix and subsequent

spikes around the fed. when the fed did not hike in september, the vix spike then because they were not sure what they are doing. getting the fed out of the picture is probably good for volatility. there are other things to worry about. we are concerned about another leg down in oil, but there is a difference between going down from $110 a barrel to $50 a to $30 from $50 a barrel a barrel. it is not the same kind of big move that should really shocked the markets. what about all of this talk about a possible recession. is that even in your scenario? i have no idea what people are talking about. in my mind, recessions come from a massive bubble in a major sector like the housing bubble -- massive over-building and mortgages out of control. they commonly have the fed not

just tiptoeing the exit, but seriously fighting inflation with rate hikes at every meeting and some 50-basis point hikes mixed in. they come when there is a massive run-up in oil prices. historically, those three things are the ingredients for recession. it is not like we cannot have a recession for other reasons, but i do not think this is a period where we should be particularly worried about a recession. maybe we are stuck with this moderate growth. that certainly is a concern, but that is a big difference between talking about a recession. betty: it is, indeed -- slow growth versus an actual contraction. ethan, before we go, the europe is only,divergence apparently, going to now get wider, perhaps even more wide going into 2016. mr. harris: yeah. betty: what exactly does that mean for us? well, i mean, first

of all, the weakening we saw in the euro versus the dollar the last couple of days makes sense because the fed came out and reiterated that they planned to hike four times next year and the markets were hoping they would pull back on that. so, this is a slightly hawkish henceent by the fed, and moves the currency a little bit. if you step back, the big move in the currencies has already happened. i mean, unless you have been living in the desert in the middle of the pacific with a volleyball as your best friend -- i am talking about "castaway" -- unless you have been a castaway -- betty: i remember that movie. mr. harris: good. unless you have been a castaway, you know this movie is coming. the ecb does a little more than expected because -- in terms of qe and the fed does more in terms of interest rate, but it is not the big kind of move the dollar we have experienced in the last year. betty: ethan, great.

something new to think about. ethan harris, the cohead of economic research at bank of america, merrill lynch. much more ahead -- the controversy of ceo arrested with securities fraud. there he is. prosecutors say he ran his company's like a ponzi scheme. we will have the latest on that. if you think ceos are overpaid, wait until you see what some board members get. and the disney purchase of the "star wars" franchise is turning out to be the best deal in the galaxy. we're looking at how disney will profit from it for years to come. ♪

betty: good afternoon and welcome back to bloomberg markets. i am betty liu. it is time for the bloomberg business flash, a look at the biggest business stories in the news right now. volkswagen is turning to a well-known name to deal with this emissions program -- hiring attorney ken feinberg. he recently helped gm with the recall on faulty ignition switches. vw is under scrutiny for using software to chief u.s. emission test. chinese authorities are investigating whether officials from the nation security regulator benefited from their knowledge of the attempted stock market rescue according to "the journal."t the report says to senior officials have been removed from their posts. shares of pandora are climbing because of a favorable ruling from a copyright royalty board that set music streaming rates well below the amount sought by

performers and measure -- major record label. it will pay $.17 per 100 streams under a ruling that runs through 2020. the industry wanted a range of $.25 to $.29. you can always get more business news at bloomberg.com. he is one of the most vilified ceos in the nation for hiking the price of a life-saving drug, and now turing pharmaceuticals ceo martin shkreli is under arrest. the 32-year-old is arrested, accused with -- of mishandling funds. in the past,li did he made the wrong choice -- he lied, but this time he did it using company counsel to deceive boards of directors. why did he do that, so that the two defendants could use the company as shkreli's personal

piggy bank to pay back shareholders from both funds who repeatedly, at this point, demanded initial investment back and the returns on investments they were told they would receive. betty: shkreli is charged with securities fraud and conspiracy. if convicted, he faces up to 20 years in prison. the debate whether ceos are overcompensated -- forget about fraud, right -- particularly if they failed to live up to expectation, has been around for years, but it is not just that wrestling -- roughly the feathers of shareholders. some are shelling out huge amounts of money and stocks to outside board members, and that is raising questions about whether these directors can maintain independent guidance. joining us now is independent news reporter caleb melby. thank you for joining us. this is a fascinating story. who are some of the worst offenders on this? b: the big one is regeneron

pharmaceuticals. that is after you take out the former ceo of merck, who got paid more than $20 million last year. betty: and how are they able to get away with that -- this is all disclose, right? meeb: what folks have told is before a bio pharma startup gets a big break, they have no cash. they have a promise. they load these guys up with options, and sometimes they make it big. at the top of the list of high-take board you have three bile from a company's. -- bio pharma companies. betty: why is it concentrated? caleb: specifically they are cash-poor and they had these directors that have been with them 10, 20 years, waiting for the big break. they do not have the cash to give them then, so they give them options.

in this case, these three are making it big all of a sudden, and their directors are finally being rewarded handsomely. betty: are the shareholders now saying because they are compensated so well they cannot be good stewards for the shareholders? they can't be independent? there are some concerns that this is more than enough to be a person's sole bread and butter. can they come to the company as independent watchdogs for the shareholders over management, when this could easily be the only job they need to make a winning. betty: exactly. they can live off of this money. caleb: right. betty: being done to combat this? caleb: there is some legal action in delaware. ruled, inently been may, i believe, that shareholders could now sue directors if they think they are allocating pay to themselves in a way they think is not fair or bestn the business's

interests. once upon a time before the ruling, directors were able to be shielded by the business judgment rule that said they were given the leeway to make the decisions that they best sought for the company. because this has to do with their pay, in some ways, they are, in fact, setting their own pay. they will not be able to use that as a defense anymore. betty: are there boards that have done it right -- berkshire pays their members below, right? caleb: to be a board member is an honor in another itself. you get paid $300 for phone meetings, $900 for you and-person meetings, and that is about it. they are pulling in on average just about $4000 a year to be on the berkshire hathaway board. betty: it is the name, right. caleb: absolutely. melby,thank you, caleb who covers executive compensation for us here on bloomberg. still ahead, stocks are dropping the day after the fed's decision

. we are on pace to snappy three-day winning streak. we will look at your options trade. that is next. ♪

betty: welcome back to bloomberg markets. i am betty liu. stocks are selling off, unable to extend their rally after the fed's first rate hike in nearly a decade. julie hyman is standing by with how the option market is trading. julie: thank you. joining me is dan deming from the cboe out in chicago. dan, good to see you. so, we had the rally yesterday after the that finally raised rates, and now the come down. it seems like today, at least in part, it is the commodity tail wagging the equity dog, but it is a broad-based selloff. it is not limited to the commodities. mr. deming: exactly. we see some repositioning.

you are right, it is kind of like liftoff -- there is turbulence here. one thing you mention that i wanted to point out is the bloomberg commodity index is at a 16-year low. it has been down, i think, six straight days. you see continued downside pressure on the commodities. that will play into the inflation staying. that might be why the markets are struggling. we see a continuation of what was taking place before the fed's decision. julie: where do you see the most activity in the options market -- are you seeing a lot of that commodities-related today? mr. deming: there is a fair amount commodities-related. we are also seeing when you look at the volatility space, a lot of activity in the vix vix and options. we are seeing sort -- short positioning. adjusting the enough, we are with buyers ofgs

the 17 and 18 calls in december, which expire tomorrow, and xlf january 25 calls. a little repositioning or dependent outperformance next year. julie: speaking of divergence, xlf, the financials etf, and how it is behaving today -- there is a diverse. you have this current selloff while at the same time you have future optimism. walk me through that. what is going on? so, what is going on here, julie, you have some repositioning for next year. tomorrow, when you look at bank of america, i not sure if they are covering short exposure or getting long. it is a one-day play, basically, when you look at activity over the last couple of days, but longer term, we definitely see some larger open-interest being attained when you look out at

january through march of next year. there is definitely some repositioning. even the market is coming off a little bit today, we still see repositioning for a move higher into next year. julie: and you are also doing that positioning. it is not just what you are seeing in the market. it is what you, yourself are doing. what are your target? mr. deming: yeah, it is, julie, and that theme is out there -- if rates continue to go up at any kind of pace that the fed has indicated, you would expect the financials when outperform the rest of the market -- at least have the potential to outperform. i am looking at the margin -- the much 25-27 call spread. it is relatively an expensive. it plays to a breakout in the xlf and if you see the markets stabilize into next your, we expect the financials to outperform other sectors in the marketplace. julie: dan, very quickly, what is your downside risk in the trade, because the big

money-centric markets -- they could feel turmoil as one potential downside of rate increases. mr. deming: yeah. there is the potential. that is why, again, i like that call spread because if these interest rates do not culminate, or there is a little bit of a slowing pattern, you could see the financials, under pressure. that is why i like this call-center you have $.40 on this call spread. you are risking almost $1.60. the risk/reward is positive, given that we see a breakout above 25 with limited downside risk. julie: dan deming, thank you so much, joining us from the cboe out in chicago. that he -- betty? you, julie. will the force be with disney shares -- releasing the new "star wars" tomorrow. ♪

live from bloomberg world headquarters in manhattan, you are watching bloomberg markets. i am betty liu. brendan greeley has more from

the news desk. brendan: we start with president obama. he traveled to mclean, virginia, to meet with officials from the national terrorism center. president obama since 9/11, we have taken extraordinary steps to strengthen our homeland security -- our borders, ports, airports, aviation security, including enhanced watchlist and screen. we have gotten much better, thanks, in part, to the people in this room, at preventing large, complex attacks like 9/11. brendan: mr. obama said there is no specific and credible threat against the u.s. at this time. two law enforcement officials say charges will be filed against the man who bought the weapons used in the san bernardino mesko. authorities say he legally purchased the high-powered guns.

sayse's justice minister $300 billion will be set aside victims --e compensate the victims of the families killed during the november attack. new hampshire has scheduled the first in the nation presidential primary for february 9, a move widely expected given the lack of pressure from other states. new hampshire state law requires its primary be held the seven otherhead of the primaries. from the bloomberg first word desk, i am brendan greeley. betty: thank you. we have less than 30 minutes until the close of trade. bloomberg's abigail doolittle is live at the nasdaq with some of the laggards today. abigail: the stock selloff is accelerating.

we finally seem to have a reaction to the fed. yesterday, we had the rally in the afternoon. now we have the selloff. all of this leaves us up on the week, but down on the month. a lot of the action may suggest even more volatility is ahead. turning to the laggards -- one big drag on the composite index is apple, whose stock is on pace for its worst month in nearly support. amid ongoing they lowered estimates for the march and june quarters. a big question -- will other big banks follow. attorney to blackberry, these shares are down? the street will be looking for sales trends in the new android phone. john butler, an analyst at bloomberg, said he has heard from store checks and anecdotal reports that demand has been

solid. the street is looking for a loss of $.14. recent options action suggests the stock is likely to move 10% upward down in the wake of the quarter, so a surprise may be ahead. betty: abigail doolittle, thank you. " height is out of the galaxy. "the force awakens" is set to debut tonight. expectations are high, but they are now in hyperdrive. there are expected to take into hundred $30 million opening weekend, topping previous opening-- $230 million weekend, topping records by "jurassic world" and avatar. here is paul sweeney, director of north american research and bloomberg intelligence. he joins us now from princeton. paul, by the way, are you excited -- are you going to go watch it? paul: absolutely. everybody in my house will go

watch it. a lot of people would be looking to go to the movie starting at midnight tonight in the u.s.. betty: that is right. it has a lot of hype. $200 million to make the movie. how soon do you think they will make that back? paul: i think they will make that back quickly. there is at least $100 million on top of that in marketing. this is a movie that is looking to potentially do over $2 billion in global box office. the expectations for the movie have just been enormous. it looks like their acquisition of lucasfilms is really going to be another home run for bob tiger and disney, similar to the acquisition of the marvel properties. betty: absolutely, right? he is 2-0. does that mean the shares of disney -- has it been priced in already, or are we talking about gains? here -- gains here? paul: it is interesting.

it is up 20% year to date, by far the best performance of the big media stocks, most of which are down. most have described the performance to expectations of a " thattrong "star wars will print money for them for the next several quarters. i think the "star wars" phenomena has been reflected in the stock. disney is feeling some of the ill effects of the cable television cord-cutting phenomena. they are facing those challenges, but investors are focusing on "star wars" and the huge numbers it is generating. betty: how big will the numbers the oversee --will that be even more important? largewell out of these films out of hollywood, about 70% of the global box office comes outside of north america. these films have to play everywhere on a global basis, and the expectation is "star wars" will be no different. its stories, characters, pyrotechnics, all the cool

technology, will play globally, very well. betty: what about an encore? what will disney do for an encore? paul: if you look out five years, the studio is well set with the "star wars" films on tap, the marvel product -- it seems every year they will have at least one marvel films in the course, thethen, of pixar movies. if you look at the franchises they have lined up, the flint -- film slate is pretty solid. betty: it sounds like the stock hold, right? most needy investors feel the diversification is one of the stronger points for the company. they have a strong cable business, the studio, and the theme parks business, which is a huge part of the business. the theme park business has been performing very well for disney this year. next year they will open up shanghai disney.

that will open up the shank -- chinese market to the disney theme park experience. i think most investors embrace that diversity that disney has. paul sweeney, thank you. much more ahead. carson block bets against operatesand the stock -- plunges. is the central bank as dovish as many believe? joe weisenthal will tell us. coming up, and exclusive interview -- an extensive interview at 4:00 p.m. eastern time. ♪

good afternoon and

welcome back to bloomberg markets. i am betty liu. time for the bloomberg business flash, a look at the biggest business stories in the news. prosecutors say turing pharmaceutical ceo martin up securitiesd fraud. he has pled not guilty. he is free on a $500 million bond. that high $59 bond. -- $5 million bond. some counts concerning other drug company he wants ran -- he once ran. this is not related to his arrest. apple is making management goals. the company has named jeff williams new chief operating officer -- a job that has not been filled since tim cook left the position to become ceo more than four years ago. foriams has worked at apple about 17 years and supervise the

launch of the apple watch. cerealns are not eating like they used to, and it is taking a bite out of general mills bottom line. the maker of cheerios and lucky charms missed estimates. they have boasted profit -- bolstered profits through cost-cutting, but it's a trend awayth from cold cereal. shares in the company plunged after carson block's muddy waters firm claimed the casino is using engineering to mask a deteriorating core business. he joined "bloomberg " this morning. block: it is a casino hiding in plain sight. when you first glance at the fitbits, it looks normal -- a boring company, but when you really dig in and we dug in for

a number of weeks, you find there is a huge difference between what as a shareholder you own, and what you owe, and the difference there -- the math is pretty simple once you uncover this. it is about seven euro a share that you are left with. david: take us to -- through how big a company this is relative to other companies in france. mr. block: casino has a lot of operations internationally as well. it has 15,000 stores globally. international stores are in brazil, other parts of latin america, as well as thailand and the amount. the core france business -- that is where it originated -- that business, when you look at it, and this is where the financial engineering comes in, the cash flow from that business has seemed to be down somewhat over the past couple of years. in reality, though, we believe

-- look, in this case we have spoken with the company several times. stephanie: hold on, carson. i want to get a better understanding -- why did you first speak to the company, because yesterday, their statement that they cut their debt -- it almost look like they would look desperate if they knew you were coming. mr. block: it was interesting timing. when we spoke with them -- it is kind of usual for us. we cannot say we were muddy waters. stephanie: how long ago? we have been talking to them for the past three or four weeks. what happened the other day was pretty interesting because you have to -- casino is set up like a highly-levered cash fund. it has a holding company on top of it where the controlling shareholder, the chairman, owns pretty much all of his stock in casino. that is a little over half of casino's market cap, and he borrowed a lot of money against

that stock and he has to pledge it. so, ubs actually did the math on this recently when they put out a note. they said its casino's share price hits 46, the company rally, which is also publicly traded and which we are also short, that company rally has zero value. so, the day before casino came out and announce this deleveraging plan, casino closed at 45.99, which effectively made rally a zero, and what have wiped out its controlling shareholder had that translated into rally's stock price. theyyou look at why announced it at that time, it really could have been that, but i think the important thing is to look at the deleveraging -- it is not really deleveraging. it is actually bailing out the chairman. carson,xcuse me, explain to us what you can see what the markets are not saying?

why is it you get to see this and others do not? why is it hidden from the markets? mr. block: well, the accounting is complex. the information is out there, but you have to go to numerous sources. basically, when you do that, what you find is as a shareholder of casino, you only own less than 50% of the cash flow that you see in the financial statements. what you know is 90% of the debt. betty: that was again, carson block, muddy waters director and founder. casino has responded saying the report has erroneous allegations the group will answer in detail. in her hour-long news conference following the fed's historic decision, janet yellen voiced her optimism about the economy and stressed her confidence inflation will move back toward 2%. stocks are rally -- rallied, but are getting back most of the gains today. joining us is bloomberg editor

joe weisenthal, the cohost of "what you miss." ethan harris was on earlier this hour and he said we can all take a pause -- we got ourselves into a tizzy. we have a brief break talking about the fed, and the next your weekend debate the pace, but it is optimistic, because we will probably keep talking about it. betty: as we are now. we all set i cannot wait until liftoff, because we can stop talking about it, but nothing has changed. just a different debate. betty: conversational now turn to how fast is this pace of liftoff going to be, and now there are questions about the pace of inflation, right? joe: absolutely. that is one of the things that was interesting to people yesterday. various fomc members took down where they see inflation going, but they did not take down the projected pace of hike, or the dot, so to speak, as they

say, did not come down. and janet yellen, in her press conference, did not say they actually need to see real inflation in order to continue hiking. there was some question of whether she would now say ok, we got the hike out of the way -- we believe inflation is coming, but we will not keep fighting until we see it. she did not say that. theoretically, we could get more hikes even while we are missing big on inflation. betty: visiting macwhinnie to reassess what we mean by inflation in a way? joe: i think what we might need to do is reassess what we know about why inflation happens and how it happens. that seems to be the big thing. people consistently overestimated inflation. they thought qe would cause inflation -- remember people used to worry about money printing. they thought emerging debt and deficit would cause inflation. they thought inflation would come because of the commodities price spikes in 2011 before the economy was making progress, and

they thought it would come by now with unemployment falling to 5%. we have seen so many boy who cried will scenarios with inflation, it really should give some humidity -- humility to everyone. betty: agreed. joe weisenthal, cohost of "what did you miss." an exclusive interview later today. much more ahead on lubeck markets. we are nearing the close of trade. here is some of the best and worst performance at this. utilities among the leaders. the financials, the banks, getting pretty hard hit as well. and energy, of course. ♪

welcome back to bloomberg. i am betty liu. abouts closing the day in 10 minutes. it has been down the day after

the fed decision. julie hyman has more of the market check. it is interesting the banks are getting hit today. julie: most everything is getting hit today, which is also interesting, right? if you look at the major averages where we are at the lows of the session, right now, as you close-out, which if you are a old, it is not necessarily seen as a good time. theee stocks at the lows of session, right now down about 1.1%, as we have been bumping along the bottom all day. that,s the bottom of even. it looks like the day after the fed raised rates, investors are taking a step back and trying to figure out what happens now. take a look at my bloom and terminal for the groups here. utilities, the only group that is higher for the s&p 500. as rates come down, that tends to benefit utilities. otherwise, yes, finances are down 1.2%. energies, materials, discrete -- discretionary, informational -- information technology, all

losing 1% or more. it is not limited to the financials, not limited to anything here, but definitely commodities are a big part of what is going on today as we see a pullback in crude oil, a pullback in gold, and a pullback in newmont mounting -- mining, freeport-mcmoran -- anything commodity-related is where we see the most pain in the session. then the financials as well, as there is a concern about what these higher rates are going to mean. the thing about the fed raising rates on the plus side is that we now have certainty. we know when the fed is going to raise rates the first time because they did it yesterday. with, youhat is done have the market back to uncertainty as to when the next rate increase will happen, and the next after that, etc.. betty: julie hyman at the markets desk. thank you. willy is taking the s&p end the year at 2325. for that to happen, it will require the biggest market --

monthly advancing equities since 1987. with more on the forecast and how they have been turned upside down -- the s&p right now is at 2049. bloomberg reporter oliver renick joint is. he will be the least accurate forecaster for 2015? oliver: probably. -- which, to his credit, he's the -- he stood by the call. he was more bullish on the year. he -- some more bullish guys went back and took the forecast die -- down. he did stand by. we are 12% away from that. you would have to have what a big rally in december. if you get six more fed hikes, maybe we will get there. little bitg off a short, and basically, he is saying look, maybe it did not happen this year, but he is sticking by the bullish call, looking at 2016.

even more bullish in 2016? 2325, samel, estimate next year. nextu look at estimate year, they are producing about 2200 on the s&p, and that is about 13 strategists that we have surveyed so far. as of yesterday's close, that will be about a 6% gain on the year, the least bullish analysts have been since about 2005. it will depend on where we close the day. you also have to take that with a grain of salt. wall street strategists as a whole are rarely bearish, going back at least 15 years. betty: they are the least bearish? oliver: well, they are the least bullish. they are saying stocks will gain, it will not be a blockbuster year. lee leads the pack. he says there can be double-digit growth next year. if you are in stocks and you want double-digit growth, there

are a couple of guys still in your corner. betty: what are they saying in terms of what sectors are going to lead? next year? -- next year? there is a lot of hope that the american consumer and their retail-type of consumer is going to lead stocks higher as you have an economy that starts to pick up. the fed hiking was very symbolic. really, what that was doing was saying "look, the economy here is pretty strong in the u.s." if you buy that, if you think oil will stay low, you see consumer discretionary, you should see spending from americans, and that could be a potential game. we -- lee and a few other bullish strategists think the dollar might fade out a little bit. you could have that as well. of course, that bullishness would mean we are in a seventh year of a bull market. it is starting to get a little aged here. it is interesting to you have to think about whether or not that is actually important from an investment decision. can i base anything on that?

it would be the second longest bull market in history that goes through next year. at the same time, history really does not give you any indication as to what is necessarily going to happen this year. stocks can go up, stocks can go down. it is still a 50/50 chance. betty: what are people reading into today's move, today's decline here, the day after the fed rate? oliver: we had a big move on the fed, almost 2%. i think people thought the fed removing the uncertainty, lifting the albatross off of the back, with -- provide relief and what is intriguing me is utilities, as julie pointed out, they are up today. huge on the fed day, a rate- based sector. it is interesting how the dynamics change. the sectors like utilities that sold off quite a bit are expecting a hawkish move. if you interpreted the move as deficit, perhaps that displays the rally there -- dovish,

perhaps that explains the rally. if we start to lose that, i do not think it will be terribly surprising. betty: is anyone raising red flags about possible -- you heard sandel talking about -- sam bell talking about a recession. a liquidity crisis. is anyone raising these kinds of bombs for next year? oliver: i think high yield is the last few years. betty: it is. it feels like it has been brewing for quite some time. oliver: right. when you see the commodity-related sectors, that is when people start to worry. what is in my portfolio that was not associated with the weakness in those energy spaces, but then they also get hit, and it starts to bleed out beyond those sectors. when you look at what could and the bull market -- there are different schools of thought. one would say a higher valuation. that is a tricky argument. some would say we could stay in economic recession. if we do not have that, we keep going. betty: however, thank you.

oliver renick of bloomberg news here. that is it for bloomberg markets. "what did you miss" and the market close is next. here is a look at where stocks are trading right now. ♪

>> we are moments away from the closing bell. i am scarlet fu. joe: i am joe weisenthal. alix: i am alix steel. ♪

>> u.s. stocks closing lower. the s&p lower by 1.5% for the month. joe: the question is "what'd you miss?" the.s. markets falling, dollar strengthening after the first great increase since 2006. joe: janet yellen discuss of the carnage in her press conference. ceo, ousted from cheniere energy. we will get his take on the energy market. talk about the u.s. stark market giving back yesterday's rally. jerkeemed like a knee reaction from what we saw.