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closing bell." i'm kelly evans. >> i'm bill griffeths. fourth time was a charm. this is our first rally of 2014 after declines. pretty good economic data, the trade deficit number was strong enough. that's 10% of our economy. so that bumped up the growth estimates for the quarter. >> the trade deficit figures were a big deal. >> very excited about trade deficit. >> you can talk about the immediate impact to the fourth quarter gdp numbers. 2.4% to 3.3% on that report alone. could you talk about what it means for the u.s. energy story. could you talk about what it means for the u.s. dollar because the trade gap which is part of the current account is shrinking quickly. >> we're here to talk about the rally. the dow is up 114 points. not far from the high of the day, but we got a ways to go before an all-time high. >> as bad a start as we've had to the year, we're only 40 points off the closing high for

the dow jones industrial average. we're only 10 or 11 points for the s&p 500. it's the rolling stone article that's gone viral. five economic reforms millennials should be fighting for. guaranteed work, guaranteed money, making everything owned by everybody. the millennial who wrote this will make his case to kevin o'leary. >> that will be great. the millennials are all fed up. they can't find a job so they've got a solution for all of that, and kevin is going to join us to talk about the other side of that trade. also, another madoff settlement without any single person taking the fall, and this time it involves jpmorgan chase. the institution is in the crosshairs, of course, settling criminal charges, but wasn't it individuals inside jpmorgan who did not alert authorities to what madoff was doing? so why does this keep happening? we still don't have individuals who are being helt accoud accou.

>> the question becomes are shareholders being punished for the actions of individuals. here is a look at markets right now. the dow is up 115 points or 0.7%. it was 15,576, 336 points off the record closing high right now. look at the nasdaq as well which is adding 40 points this hour. almost 1% for this index. the s&p 500 is up about 11. 1848 is the closing high for the s&p. it's currently at 1838. again, three bad days but we're not far from record highs. >> let's talk about it in today's closing bell ex chain. john manly who said i'm knnot coming on until this market rallies. anton bear from up capital management and joe bela from shapers investment research. >> john, we definitely saw a lack of momentum beginning 2014, very different from what we saw

last year at this time. what do you make of this right now? you're still bullish on this market. >> i am bullish. it's not encouraging. i'd rather see the market go up because there's a natural ten n tendency for it to go up and there has to be some explanation it didn't. i tend to ascribe it to the last few weeks of 2013. i think we may have robbed from peter to pay paul, but that's temporary. >> joe, what about you? lots of focus on the behavior of the market at the tart of tstar month. do you think we could be facing a rocky month, a rocky year regardless of today's rally still? >> no, i don't think so at all. i think the other guest described it perfectly. we had a lot of strong momentum in late december of last year, so it sort of makes sense we would have a little bit of a breather for the market here, perhaps a correction in time or consolidation, and then perhaps a nice you be leg in january. i think one of the things we were looking at is short interest. we had one of the strongest years in the s&p 500 in quite some time and yet short interest on the components or the stocks

within the s&p 500 at its highest level since june of 2012. a heavy amount of skepticism from the short sellers, which are betting on those components. that's generally and historically has been a bullish combination. >> we alaska amy woo. we got the wires warmed up enough that she could join us right now. you have been watching sentiment through options trading action. what are you seeing right now as we begin this new year? >> well, hi, guys, and happy new year. >> happy new year. >> happy new year. kind of echoing what joe said as well from the options perspective. your skew levels, your term structure, your sentiment is still more bullish than bearish. even with payrolls coming up, we're pricing in a very ho hum plus or minus 1% move. i'd say really investors on the options front are much more focused on earnings. much more focused on single name volatility as we head into earnings season. it really hasn't been that much about the macro, that much about

the downside. >> we have one after the other lining up this week, anton, in terms of event risk if you wanted to look at it that way. we have on wednesday the federal reserve minutes. thursday we get alcoa's report. friday we get the jobs report. which of those is going to be most important in terms of figuring out where the market goes from here do you think? >> yeah, since 2007, the feds have been such a dominant factor for investors, and so i will pick the fed's report. that's going to be very, very important. they've had major impacts on investors' sentiment. every time they make a change in the announcement or their monetary policy, the market responds immediately. so i'm going to be paying attention to the fed's policy and their announcements. >> john, you have established you're still bullish. do you though change what you're bullish about? do you look to other sectors for the new year compared to what you were investing in late last year? >> not from late last year but from early last year, yes. we're getting more cyclical. we're sort of following what's going on in the economy and

trying to get ahead of it. i think the economy of the united states is still improving. i think europe is about to improve. how far can the emerging markets be behind? we want to own things like technology, like industrials, and even big energy. >> are you worried that technology has been a laggard to begin this year? >> well, again, what i say doesn't happen immediately. i always get worried. but having said that, no. i think the fundamentals will out over a period of time. corporations are as profitable as they are because of technology. they will spend more on that, they will upgrade further. i think it's still a very good story. >> joe, it's actually tech that remains one of the undervalued sectors whereas health care is extremely overvalued at a time ironically when pricing across the health care industry is under pressure and declining. do you like health care here and how do you feel about technology? >> i'm not a big fan of health care. i think in general all the sectors are going to trend higher if the u.s. equities trend higher. big fan of technology in

general. i also like energy and some of the basic materials. i think perhaps they underperformed in early 2013. all of a sudden took a leadership role in late 2013. i like the sort of sentiment price action backdrop on those names. i think some of those names, especially talking about earnings season coming up, energy and the coal names, they have the least expectations in the entire market. >> joe, it's funny you bring that up because coal has been an overlooked but extremely important area both for the energy story and to look at a peabody down 30% year on year at a time when the u.s. and overseas more of our energy needs will have to be met by coal at least for now. why hasn't that name done better and is it possible 2014 could be a better year for the likes of peabody? >> possibly peabody. it's in a similar industry but i think the price action is a little stronger is cliff's natural resources, clf. during the past couple months it's all of a sudden made a longer term bottom on perhaps the weekly or monthly charts but

daily charts momentum has been incredibly strong. you see a lot of doubt surrounding those names. analysts, the majority of them aren't recommending buying them. i think there's upgrade potentially. short seller targeting coal names. >> amy, speaking of earnings season, typically it becomes a gauntlet that causes volatility. we didn't see that a lot last year perhaps because the market was enjoying the morphine drip of quantitative easing from the federal reserve but now we know they're going to taper, are we going back to that volatile period we typically get every time corporations start releasing their reports? >> that's a great question, and it's one that we're watching very closely because as the tapering starts to come and we remove the yellin put or the bernanke put, so to speak, we're really questioning whether this reverts to normalization. one sector i would fach is financi financials. 50% of all financial weights come off and we'll see from a

volatility perspective if that ticks pup. >> 2014 will be the year of the old normal. >> you don't believe in secular stagnation. >> secular stagnation, let me think about that for a little while. wow. >> we're going to tease it for the next block. >> i know. >> we'll get your answer. thank you so much. stocks have bounced back with a vengeance. we want to get over to dom chu. >> let's start with google which hit a record high earlier. jpmorgan has an overweight rating. rather august 2014 the ipo was 85 bucks a year. johnson & johnson moving higher after their blood center drug succeeded in a late stage trial. that's helping boost shares. comcast hitting a record high after the ceo said it sees its first video customer growth in six years in this past fourth quarter. comcast is the parent network of nbc universe ideal which runs cnbc.

then there's herbalife and new skin after the fda did not name them. they fell after the agency said it would make an announcement regarding fad weight loss produc products. on the downside, netflix taking a hit as morgan stanley down grades the stock to an underweight from an equal weight citing increased competition from the likes of amazon prime and hulu. >> heading toward the close, look at this. pretty good rally. if you haven't been watching at all so far in 2014 and this is your furs time, you're going to think, we're we go again. far be it. we're finally getting a rally. >> despite today's big rally, bob dahl says he thinks the market is getting ready for a big sell-off. also, the energy industry is lobbying congress to overturn the ban on exporting domestic

crude oil, but one of our next guests says exporting oil would send gasoline prices skyrocketing here in the united states. we'll hear from both sides of what has been a controversial issue. plenty of analysts have been jumping on coca-cola's bandwagon. find out if you should follow their lead or stay away from this underperforming stock. our sarah eyssen has a coke and a smile just ahead. [ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom.

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welcome back. well, you may have noticed that gas prices have come down a bit lately due in large part to the country's ramped up domestic oil production. now the oil industry wants to export some of that domestic oil and make some money on global marks. >> the problem is there's a long-standing ban on exporting domestic oil. so the industry itself is lobbying congress to lift that

ban. good idea? bad idea? let's talk about it. tyler slocum is director of the energy program at public citizen. chris faulkner. tyler, what's wrong with if we have much more energy now than we can use, what's wrong with exporting it? >> first of all, we are using it, just it's a question of discrete areas in the united states where we've got some surplus of oil, and so that surplus helps drive down the price for refiners and that leads to slightly lower gasoline prices. if we're taking that raw crude oil and instead of having a surplus for u.s. refiners, forcing u.s. refiners to compete with chinese refiners, that's going to push the price up, and it's going to raise prices for gasoline. this is business 101, and the issue is should the united states export a raw product like crude oil or should we be utilizing our manufacturing base

and allowing our refiners and our chemical processors to turn that petroleum into the finished product and then export that finished product rather than the raw crude oil. >> what we do right now. chris, is the real issue here the shortage of refining capacity in this country? >> there's two issues. number one, infrastructure. that's true. i think the next thing is the refineries here are built for sour heavy crude from south america, from the middle east. there's going to be an issue where we're going to have lack of investment dollars being plowed into the ground to continue this oil revolution that's taking place. we're already exporting crude to canada, which you failed to mention. 100,000 barrels a day up from zero in 2007. the reality is america is on the road to energy independence. our usage of oil has fallen 6 million barrels a day. if we have an excess why can we not compete on the global markets like we do with coal -- >> what you're saying is you're actually arguing for american energy dependence but dependence in other words on crude being

exported and being more intertwined with the global system as opposed to trying to create this sort of oasis where we just produce and consume internally. >> no what, i, what i'm arguing this embargo went into place it was built on fear and scarcity. we're exporting more distillate fuels than we're using. it will continue to invest in the oil revolution. gasoline prices are geared on the global market, not on the united states' market. gasoline will still continue at the level it is today. latin america, china demand has to be factored in there. you can't use fear and scare to say, oh, the united states can't be exporting its crude oil. it's hogwash. >> i was going to bring that up because every time i hear the argument that prices are going to go down if we deregulate or something, i think back to the airline deregulation of '80s. ticket prices were supposed to go down and we know what happened there. we beholden to the refining

capacity in this country. >> which is at max. >> actually, no. >> biexporting oy keeping the o will that keep prices down if we can't refine it fast enough. >> actually we can refine it fast enough. the refining capacity exceeds domestic -- >> not for light, sweet crude. >> since 2008, domestic demand has been dropping and flat lining in the united states due to higher fuel economy standards for vehicles and slower economic growth. in fact, u.s. refiners are exporting 3 million barrels of refined products a day because they can't sell it in the u.s. market. but the surplus of crude oil allows u.s. refiners to buy it at a discount relative to china, and so the fact is that you've got a split within the oil industry. you've got the big heavy hitting producers like the exxonmobils that want to export the raw, crude oil and then you have the independent refiners like vel lair row that sound like public

citizen. they want to keep the export ban in place and the fact is that you never know when global commodity disruptions are going to occur. just because things are smooth and easy right now, in a matter of days or weeks, you could have a serious issue in the middle east or china. >> chris, go ahead. >> reality is we're going to face an issue in in country which public citizen wants us to face. we have to sell the oil at a heavy discount which could make it uneconomical to produce or stop investing -- >> it is not going to make it uneconomical to produce. >> absolutely -- >> they are still earning -- >> you guys are scared of hydrocarbons coming out of the ground, period. this is a way to scare the american people that they think gas is going to skyrocket we should put a ban on oil. >> let me tell you something about the oil industry. they're making a fortune -- >> you don't know anything about it for starters. >> this is an issue of whether or not they want to make -- >> you're -- >> chris, let tyson make his case. >> the fact is that the oil

industry is making huge profits with this crude oil export ban in place. with the ban in place, exxonmobil prodistripredicts by the united states will be the biggest oil producer on the planet. the ban does not discourage oil development, but removing that ban is absolutely going to impact gasoline prices for americans. you have to look at the supply/demand fundamentals. >> -- you're absolutely incorrect. you don't make any sense. >> you want us to be more like nigeria and russia and adopt the nigerian model of economic growth. >> -- that can refine our oil and we can't refine it here. >> we refine it here. we're exporting -- >> absolutely -- >> you don't even know what we're talking about. >> tyson, one question. are you opposed if the administration were to make it easier for more refiners to get into the game, to refine the crude that is produced and consumed in this country, are you opposed to that for any

reason? >> well, i mean, the industry is not going to build any new grassroots refineries. >> you say so. >> they've done additions to refining capacity and retooling refineries to deal with more of the oil coming out of the bachan and eagle ford but no one in the marketplace is talking about building new refineries from scratch. >> this will create more jobs and the president's own energy secretary said it needs to be looked at and lifted. what you're saying does not make any sense. what's happening in america now is causing a big divergence. there are markets around the world that need this oil. it would create a $17 billion to $20 billion increase in revenue for our country. why can we export natural gas and coal but not oil? it does not make any sense. >> we got to go, guys. we're out of time. i suspect you guys would be fun to have lunch with sometime. >> great seeing you again, tyson. take care. >> thanks very much. >> appreciate it.

we have 40 minutes left to go before the close and we're turning around here from the sell-off that is marked the first three trading days of the year. we're up 114 points. we're only about 40 points now, bill, below the all-time closing high of the dow jones industrial average. >> have you noticed coke stock, it has popped and fizzled over the past year. where is it going in 2014? we have a good old-fashioned stock brawl coming up. and guaranteed work and universal basic income even if you choose not to work. those are two of the five economic reforms millennials should apparently be fighting for according to the author of a controversial new "rolling stone" piece. kevin o'leary attempts an intervention later on "the closing bell." fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title.

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the dow is up nearly 24% over the past year as you know, but coca-cola has really underperformed its blue chip peers gaining just 8% over the same period of time. >> more wall street analysts are starting to jump on the coke bandwagon. what has changed? >> good question. it's become somewhat of a darling for analysts and part of it is it just looks cheap. underperformed its peers like pepsi. and some of the other consumer staples. if you look at the valuation and then you think about the bullish story, analysts say, look, what happened last year, you had some temporary factors at work.

you had unusually wet weather. you had economic slowdowns particularly sharp in the emerging markets. remember the fear of tapering led to that exodus from some of the emerging market stocks, bonds, and currency. that impacted coke. you also have another bunch of factors working toward coke -- >> people liked pepsi over coke because they felt like they were more diversified -- >> smack business. >> choosing healthier drink options. >> coke is really the industry leader when it comes to soda, and that could be a good thing this year because there is an expectation that is they will innovate. it's been six years since coke zero. working on new products, lower calories, more naturally sweetened. you also have the world cup. they're a lead sponsor which is a marketing campaign but actually if you look back historically on south africa and germany before that, coke saw sales boost as a result of the world cup. it's also lead sponsor of the

olympics. you have those factors working in favor. and you have a booming middle class. no matter what you have seen, these trends in place since the late '90s, less soda consumption, you have a growing middle class around the world. international is the long-term growth story. you start to see these economies doing better and that could really help coke. >> we have the back story from sara eyssen. let's talk whether it's ready to break out and pop for investors. took one for the team there. >> jonathan thinks there's huge opportunity in the stock. abigail doolittle thinks could leave you flat. >> shocking. >> thank you to both of you for being here. jonathan, why do you like coke here? >> well, i think there's a huge global growth opportunity that's remained but gotten out of focus. la there's going to be 700 million new members of the middle class over the next 10 or 15 years. that's something like three new american middle classes. a lot of people are focused on

the declining consumptions in north america but, you know, that's really small potatoes if that's town 10%, up 10% over that time. what's happened in the past happens in the future with carbonated soft drink consumption hand in hand with economic growth in a lot of these hot places where people would love to have a cold coke with more spending money. this will be a great stock and a great growth opportunity almost regardless of what happens in developed markets. >> abigail, are you worried more about the fundamentals or the technicals on coca-cola. >> a little bit of both here, bill. all i can say is i wore red for this occasion. it's appropriate for coca-cola at this point for more reasons than one when we look at fourn. when we look back at 2013, it has been a rough year. revenues have declined, earnings growth has fallen into the low single digits, and as we've heard, most investors tend to think that the bad news is priced in. they're focusing on growth opportunities abroad. i say not so fast.

when we have negative inflection point of revenues falling on a year-over-year basis, that's a big ship to turn. that takes time. i think investors could be disappointed going into the first part of 2014. valuation, it actually looks expensive to me. these shares are trading at 20 times earnings. that's at a premium to pepsi relative to low single digit growth right now. i think we're going to see a bout of profit taking here in coca-cola. >> jonathan, i'm guessing the dividend is part of the story here for a certain class of investors for coke. 2.8% which is flirting with where the ten-year is right now. if rates continue to rise in 2014, do you think coke punches back, does something bigger with its dividend? >> well, certainly that's possible. it's a very cash jen ray tiff company. first of all, all the infrastructure for this global growth overseas a laid. there's a lot of companies talking about increasing penetration of their businesses. there's not a lot of them that have been in the emerging

markets for 50 or 60 years and are sitting and waiting for people to get a buck in their pocket and do what their parents did and buy more coke. the second thing is the cost savings opportunity domestically. anheuser-busch after its acquisition by inbev saw over $2 billion in cost savings. this company has talked about $600 million in cost savings. i think there could be a lot more than that and we could start to hear more about that as they grapple with the more constrained growth in north america and get rational about it even in the sex snext six we. >> got to go, folks. i don't know how high up you are abigail, i think i saw a cloud go by in the window. thank you both for your thoughts. it is a chilly wind out there. up 114 on the dow. kind of holding here. it looks like even though we're -- how many points away. >> about 40 points from the all-time high, we have a pretty good rally finally under way for

2014. >> incredible. and by the way, remember this guy? take a look. he's the american executive held hostage for six days by workers at his factory in china last june. he will join us next to talk about a similar situation that just happened to goodyear managers in france. >> it's happened again. jpmorgan shares getting hit after paying $1.7 billion to settle charges related to its role in not flagging bernie madoff's massive ponzi scheme. we will have a full report on that, and should the government be prosecuting individuals as well, not just companies? let us know what you think on this controversial issue. we'll reveal your best tweets coming up later on "the closing bell." cnbc sector sort is sponsored by sector spyder etfs. [ bagpipes play ]

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welcome back. let's start with a look across the indexes as the dow has 120 points. the nasdaq popping more than 1%. the first positive trading day

of the year. the s&p 500 is ten points off its all-time record closing high. 1839, up about 12. >> they're fast kicking to the close as we like to say. track and field here. >> we have 25 minutes left to go. a scary situation over in france. on monday workers at goodyear tire and rubber factory blocked a door and held two managers hostage. the managers were released earlier today before the situation got too much out of hand. let's bring in someone who has had firsthand experience in dealing with this kind of situation which across the globe is not that uncommon. chip starns is the ceo who was held hostage by his own workers in china last year. remember that story? well, he's with us now. he's working for a different company presumably with employees that won't take him hostage, and we welcome our own colleague from cnbc asia,

eunice, who is joining us in the united states for the week here. we're thrilled to have you with us, eunice. she covered that story last year. chip, let me start with you. thinking back, now we've got these goodyear executives who are being held hostage. what is going on? is that an effective strategy? did it work for your employees when they did this last year? >> no, absolutely not. it didn't work and i'm surprised to hear this is almost like an epidemic that's going from now around the world continent to continent. in our particular situation, it shut the entire facility down, it's insolvent now. looking into today what happened with the goodyear situation, i don't understand what the positive outcome will be in terms of negotiations like that and what i experienced in china. >> you're absolutely right. there's a term for this, it's called boss napping and it's happened notably in the depths of the recession when a lot of people were losing their jobs.

france in particular has tough laws about not laying off employees. it's a different situation in china. the workers to some extent feel as though they are in charge or can exert sort of their say. i wonder what happened after this episode in china? what was the reaction both from bottom to top? >> there were a lot of people who were really mulling over chip starns case. people who were wondering what are some of the lessons learned. what is interesting is because the economy is slowing down, people are worried they're going to see more of these type of boss napping situations, there have been a lot of discussions as to what maybe could be done better. they were saying that for american ceos, if they do want to lay off their own workers in china, that they shouldn't put themselves into a situation where they actually are alone with the workers in the factories. they were saying a lot of people were saying either don't do it at all, have the local people, your local managers do it for you, or if you yourself feel that need to go in and lay off the workers themselves and talk

to them, bring them to a hotel that is centrally located in a city so that in case things go bad, you have a way out. >> chip, in your view, is this -- are these cases countries that are just going through growing pains as they try to get used to capitalist ways of doing business? >> france has existed for some time. >> but in china your employees were worried they were going to lose their jobs and look what happened. they were right. they lost their jobs. was it because of what they did or was it just inevitable because business was not supporting that factory? >> well, i think it was actually in our particular case in china we were actually going to leave a segment of the business there. we were only going to move the plastic injection molding site to india, but the wetside of the business was staying. in that particular case we had a riot -- not a riot but they unionized and sat an our equipment so they wouldn't allow the equipment to be packaged and leave.

and they actually started demanding the same severance package that the other workers that were being laid off, they wanted the same. and so in our case a rumor spread the whole factory was shutting down. but -- >> they were right. >> well, i guess they were -- in a sense they were right. but we didn't have any idea or any thoughts of moving the wet side of the business. but the bad thing about it is for people like us, investment business gentlemen, we invest, deploy capital around the world, when we do this and disagreements may come around, segments of the business may have to move, where is the support from the police, from the local government? did anything happen to the individuals that held me captive for seven days? is it going to be considered a crime in france for what just happened for the gentlemen that got held for the last couple days? when you think of all these corporations that want to move, set new factories up, et cetera, you know, are these the intangibles we have to take into account. >> eunice, we have to go but do you think this will make an executive who a couple years ago

would have thought what's the quickest way i can get to china rethink that? >> i think it will. i thought what was really interesting about what chip was saying was in france the police did intervene, but in his case and in a lot of cases in china, the police were on the side of the locals, and a lot of that is because the police are nervous if they are to clamp down on these workers too harshly because they're not so sophisticated in where to direct their anger, the anger can be directed to the authorities. that was the real difference i saw there. >> chip, good to see you out from behind bars. thanks for joining us. eunice, we look forward to working with you this week. >> eunice down here tomorrow, in fact. >> looking forward. >> 20 minutes left to go before the close. we've come off the highs just a touch. the dow is about 108 points at 16,533 at this hour. the ripple effects of bernie madoff still being felt five years later. now with jpmorgan chase. they're taking a multibillion dollar hit. we have details on that coming

up. plus, we want to get your tweets on this, your thoughts. tell us if you think the government should be going after individuals instead of just institutions like jpmorgan chase. and after the bell, it's millennials on the march. from protests to petitions to a new manifesto demanding guaranteed jobs for everybody for life. the author of that article will join us to defend his generation. keep it right here. [ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more.

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welcome back. u.s. authorities and jpmorgan chase announcing a settlement over the bank's alleged role in the bernard madoff ponzi scheme. >> it's much nicer here. >> anywhere inside today. >> it was cold. so we know now if there was any doubt before that in order for bernie madoff to pull off his massive fraud and keep it going for so long, he needed jpmorgan chase. they were madoff's banker for more than 20 years. the bank was in a position to know all but if it did, it didn't tell. no matter the bank has been in regulators' sights almost since madoff confessed. they are agreeing to one of the

largest penalties ever for violating u.s. banking laws and they will have to make major reforms to head off criminal prosecution. but no individuals charged which preet bharara defends. >> this is about an institutional failure. the statement of fact recites in great detail some of the roles various individuals played in connection with the overall systemic failure but the interests of justice here, you have to look at every case individually. >> the overall cost to the bank a little less than two weeks' revenue. they will pay $1.7 billion to the justice department, $350 million to the treasury office of the comptroller of the currency and half a billion to settle private suits, including the one by bankruptcy trust yi irving picard in 2010 that offered a road map for prosecutions including this case. virtually all of this money will go to madoff victims, some of it as soon as this year. >> we're asking our viewers their thoughts on why no

individuals have been prosecuted at this point. why do you think that is? >> it's a good question. one of the things that preet bharara said when we asked him about that is this bank secrecy act the bank is accused of violating is an institutional statute, but at the same time as he said, there are all kinds of facts out there about what individuals we're talking about as far back as 2007 and before that, individuals that are quoted but no individuals charged, and the basic reason could very well be that they couldn't make a case against any individual that they intentionally tried to defraud anybody. >> this is exactly the judge's op-ed, we've discussed it on the air. he's a sitting judge, tried some of these cases. he says it's a central flaw of today's system that its basically the institution and not the individuals who are punished. what you're say something this is now almost been institutionalized because of things like the bank secrecy act which are making it easier anyhow for it to be an institutional level breach.

>> and what the judge said, and we talked to him after the article and reported on that, he said that it's in a way sort of mutually exclusive to go after individuals or go after the institution. if you go after the institution, the individuals are tipped off. but in a sense, yes. look, bharara -- or u.s. authorities could have charged individuals with fraud if they could make that case. >> but it's hard basically. it takes resources. >> it is hard. you're going -- not for the government but for the investors, for the victims, and so this was a settlement, and by the nature of a legal settlem t settlement, no one is ever completely happy. >> scott, as always, good stuff. thank you. see you later. we want to know what you think. if the government should be going after individuals as opposed to companies when it comes to financial crimes. tweet us your thoughts @cnbctheclosingbell. >> 12 minutes left in the trading session with the dow in

rally mode. all the major averages in fact. the dow up 115 points at this hour. >> drama in vegas. a big time hollywood mogul walking off stage. a rival ceo escorted out of a party. >> and that's just day one. >> what's happening today? we will have a live report coming up. don't forget to watch the premiere of "shark tank" on cnbc 8:00 p.m. eastern time. one of those sharks, kevin o'leary, probably the tough he is shark on the panel, he will be on kelly's panel coming up in the next hour of "the closing bell." >> looking forward to it. aflac!

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welcome back. yes, it's true, a rally on wall street, first one of 2014. the dow up 121 points as we head toward the close with about eight minutes left. joining me, kenny from o'neill securities. what's your version of why we had this stutter step to begin the new year? >> because i think people waited until the beginning of the new year to take some profits because you saw that right away in the first couple days. why would people have sold stocks right at the end of last year and had to pay the taxes in april? they wait two or three days and they make the sale, put the taxes off for another 16 months.

that's number one. the market goes back to 1825, finds some support and it rallies back. we're stuck in a tight range. earnings are coming out, no reason to jump in front until you get a sense of what they're going to be. >> those who care about volume care about the fact ths beit's pretty light. >> today there's a little more volume. >> which could be considered bullish, right? >> very good. it tells you there's more institutional participation. the last couple weeks certainly into christmas and all that, a lot of the institutional guys just took a breather, right? >> but we still haven't had a 10% correction in forever. >> i'm not so sure you're going to get a 10% correction. i think the most we get is the 5%, 6% range. >> which is all we had last year. >> the global story of 2014 is actually really true, right? u.s. economy getting better, european economy getting better. it's a slow process but i think it is moving in that way. so, therefore, i don't think you're going to get that big,

big correction because i think a lot of people are waiting for any correction to put more money to work. >> so what are you going to buy here? what do you like? >> if you believe in that story in the turnaround, i like infrastructure names. i like technology, i like certainly the financials although that story today in the paper about financials was not such a positive one, but it's one that causes a little bit of concern. if you believe in that story, the big industrial type names, right? which i do. those are kind of the areas i'm looking at. >> the only guy who speaks with his hands more than i do. thank you, sir. >> you're welcome. >> how much longer? >> well, it's only seven days. i'm going to try to give it another four days to see how it works. >> our makeup staff loves that, by the way. heading toward the close. we'll come back with a closing countdown for this tuesday and then guaranteed jobs, universal basic income, all sounds great, right? but who pays for it? that's the question kelly will ask the author of a controversial new "rolling stone" article.

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you know, the economic data this morning, the trade gap number was very good, and it automatically had some of the houses on wall street upping their gdp estimates for the fourth quarter pretty substantially. that played well and then after that sideways move. we're finishing up here over 100 points so far with a gain of 0.62% on the dow industrial average. bob pisani is with me. we're going to look at the home builders which as you're pointing out, we saw a collapse for that group on an otherwise up day today. >> the only unfortunate thing is i was very happy in the middle of the day and they slowly moved to the downside. this is a little bit of a disappointment because this group was down 2.5% on interest rate concerns for 2014. this is a very disappointing outcome but overall i'm pretty optimistic. we were talking about health care. health care has joined financials. health care is positive as a sector for the year. we had positive comments from one of the hospitals today about obamacare and the impact on the

hospitals today. that's helping overall. >> everybody is picking health care again. >> it was a big thing today because nobody could quite figure out what the impact of obamacare is on a lot of these firms. cyh came out and said even though their revenues will be disappointing a little bit, the negative impact of obamacare on the hospitals may not be as bad as people thought. energy stocks are still lagging. oil is still a little bit of a problem, but a lot of the exploration and production stocks are a little higher because natural gas is doing so well on -- >> very bullish report on natural gas today in terms of demand. it went up 30% today compared to yesterday just because of the record cold. by the way, the volatility index still going lower. that's not bullish. for it to be that low. >> i have been wrong about this. i was anticipating as we came out of the holidays and the vix was down, it would move up a little and stay over 15 -- >> hasn't happened. >> we haven't been volatile at all. i know people were worried about the stock market but the market has moved in a very narrow

range, about 150 points on the dow in the last four or five days. materials haven't done much. this is one of the concerns over china. >> thank you, bob. see you later. that's it. we're finishing our first rally of 2014. can it continue? that remains to be seen. hour two of "the closing bell" with kelly evans and company. i'll see you tomorrow. and welcome to "the closing bell." i'm kelly evans. take a look at how we're finishing across the major indecks or indices for the gra marians out there on twitter. the dow is up 105 points. that's off the highs of the session but it's still a triple digit gain. it's 16,529, puts us not too far from the all-time high of 16,576. across the nasdaq as well a stronger performance today up almost 1%. adding 40 points there. the s&p 500 adding about 11 points to 1837 and for its part the closing high is 1848 so we're only off by 11 points. on that note, let's get straight

to today's panel. i'm joined by our very own sharon epperson and kate kelly. cnbc contributor carol roth and shark tank investor kevin o'leary. "shark tank" is on tonight at 8:00 p.m. eastern. kevin, we're so glad you could join us for this. look, i just want to kick things off with some of the ladies sitting right next to me who can tell me about the energy story in this country, sharon, and how much of an affect, for example, we have natural gas usage at a record high but that's because there's freezing weather. we have the fact the trade deficit just closed significantly. fourth quarter gdp looks like it's going to be great. does it feel like 2014 is the year america becomes a story of self-sustained energy fueled economic revivalism? >> we've already been on this trend, of course, and this is a trend that's likely to continue. you look at the latest report from the energy department today on their short-term outlook, and we're going to continue to see record levels of production of natural gas. we're going to continue to see boom in production of oil as

well. this shale production is really having a significant impact. what we're seeing right now though, of course, is a big increase in demand, and we're looking at a 30% increase in demand here in the northeast for natural gas just since yesterday. >> and some of these numbers. >> the really cold temperatures we're seeing. that's contributed to the rise we've seen in natural gas. we have seen that over november and december. that's why today futures are flat. >> so we're looking at natural gas right there up about half a percent, which is an increase but nothing like what you would expect for the fact that we just hit 134 -- >> keep in mind though, we saw natural gas futures up 30% in 2013 -- >> best performing commodity. >> these are futures. so traders are anticipating what it's going to be like. everybody knows it's cold in january and we knew we would see frigid temperatures. that's part of the reason why we're not seeing as much of a gain right now because we've already had it. >> cash prices for nat gas are very right now. >> they are certainly high because of the pipeline

capacity. there's a concern about getting some -- >> here is why i ask, too. you could almost argue that energy if it's on the natural gas side is going to sap some of the consumer spending power. we're getting some of the retail numbers in and like the com score e-commerce stuff was softer. maybe the holiday period wasn't as great. was it the cold weather? yet wall street is up 100 points today. >> we'll find out about that very, very soon, on thursday when we get com store sales and what i'm really concerned about there, kelly, is i think the ones that do post a really good top line, it may be at the expense of profits. there was a lot of heavy discounting and that was trying to make up for the lack of traffic. i don't know if it was the cold weather. i don't know if people were just feeling overspent, no pun intended, but i think that that's really been a challenge for them, and so i think once we get those numbers on thursday, it's a big week between that and the jobs number. you're going to see a lot of ups and downs potentially and a lot of volatility for the rest of

the week. >> you know what i think? i think people are really optimistic about the month of january. i was talking to hedge fund managers yesterday getting more of a feel for what are they going to do this year, how do they feel coming off such an ebullient 2013. they said we're starting from scratch. we're willing to take risks because we have 11 months to make it up if things don't go well. >> oh-oh. >> there are some concerns -- >> i know. it will be an interesting few weeks. >> i want to know what the shark says. kevin o'leary, 105 points on the dow. what's your take on all this? >> i'm pretty happy with it but i'm sort of a top down guy. here is the way i look at it. i think we're good for 2% to 2.2% dividend yield on the s&p 500. so you're guaranteed that. the market is going to give me around 8%. i'd be ecstatic with that. if we get pee pan ee expansion, get some more. i'm kind of bullish on what's going to happen. >> kevin, don't you think there's a fair degree of con n

consensus we will have pe expansion this year? >> i don't think that's in the can because there's always political risk here. we've got some issues that politicians haven't finished with yet. i don't like what's happening with the financials. you know, 17 pe trailing, are we going to get back to 23? i don't think so. >> not only that -- >> i'm just thinking -- >> on a sicyclically adjusted basis -- >> it's the price of the stocks relative to their earnings. if this is one of the year where the price is going up but the earnings aren't there and what that all means -- >> not only that, market cap to sales. we've been talking about earnings but we know there's been a lot of financial engineering behind that. market cap to sales at about 60% above average right now which says to me this is a very nice, full valuation. i'm not going to say it's bubble valuation. but in terms of getting expansion on that, i think that that's a big bet. >> carol, i have heard that point, too, although i do think an economic recovery is going to

probably float a lot of other boats. i was speaking to a banking che executive to said when gdp gets to that pointed, statistically the heat comes off banks from a public opinion standpoint. people are happier with the banks. >> that's actually why i wondered and i was floating this theory before. if we're shifting from occupy wall street to more of an occupy the board room mentality, kevin, where you're starting to see sharks, if i could use that phrase, circling companies saying you're sitting on a ton of cash, we want you to put it to use, higher wages or fatter dividends or want you to make acquisitions or want you to do something with that money, what would you say to ceos who are sitting in the board room feeling the heat? >> i love activist investors. i like performance with ceos, cfos. i think you should be given a 36-month reign. if you don't deliver, i think you should get whacked.

i'm ecstatic with the way the world is working that way. my only concern regarding the market is that most of the s&p 500 companies have found their growth not in america. they've got 47% of their sales abroad now. so i have to take on more of a global risk that i didn't have to do ten years ago. so i have a little bit in terms of, you know, dialing in my enthusiasm while i wait and see what happens in brazil, india, and china because half of my sales are coming from there. >> and japan. >> a lot of investors, a lot of retail investors aren't paying attention to those global numbers smps thas much as they . don't you think that's the key for them to understand how much of these companies have depended on their global growth and what that's going to mean for them? they can't just look at the stock price alone. >> no, i think that's correct. and that's what's different about this next decade. but so far so good. you know, we're sitting in a sub-3% gdp growth environment and we're getting earnings growth with s&p 500 of 6%. that means they're working a whole lot better than our government is. they figured out how to get

growth we can't find at home. >> guys, stay right there. joe, i want to bring steve grasso into this conversation. >> everyone has been waiting for this pull back forever now, but no one wants to sell this market, kelly, ahead of earnings. i think you're going to started to see us take out those old highs and it might be the obvious trade that wins once again. >> is that because so many companies have lowered the bar that everyone is expecting them to clear it and generate upward momentum throughout the season? >> everyone has been so afraid. analysts have been so afraid ever since the financial crisis of setting that bar too high. so that's become cause and effect why you see a lot of this rally. >> steve, here is a question about market psychology. everyone i talked to, my small sample poll, seems to think it's going to be a good 2014. a solid one, 10%, maybe even 20%. however, i did talk to one fellow yesterday who thinks in his group they're talking about a correction sometime in the

first quarter that could be substantial. are you hearing that as well? >> well, we are all looking for that sell-off late in the year. we're all looking for it in the first quarter. there definitely has to be a correction. whether it's 5% to 7%, i think it's a healthy correction. and, yes, i'm hearing the same thing. >> this guy even said 10% or more. >> 10% is going to be shocking. >> steve, this is carol. i wanted to jump in on the momentum stocks, too, because it seems like morgan stanley and some other banks have been downgrading some of the big names where we've seen a lot of movement end of the last year. is that something that you're seeing or hearing where you think there's going to be a rotation out of some of the big high flyers from last year into perhaps maybe some of the more defensive names? >> if you think about it, when were you going to sell that high flyer? you didn't want to sell it in december and pay taxes immediately. the time to sell it is january. that seems like the obvious trade. the guys that have been downgrading those high flyers, they've been downgrading them for the last quarter of the year. so they've been wrong and they

have to keep pushing their position. every time they get a little momentum they pile up on them again. >> we're seeing a lot of down grades. in other words it went further than we think it should be. >> i'm personally long twitter and going into earnings nobody has any guess what earnings will be. i will tell you one thing, no one wants to be caught short going into twitter earnings. >> and we should note that stock was down another 7% today. so it just is big moves to the downside as we saw to the upside. thanks for stopping by. you can catch steve coming up on "fast money" at 5:00 p.m. everyone else says with me. coming up ahead, wall street's first rally of the year. bob dahl will tell us why he says another good year ahead despite his forecast for a 10% correction. the bulls then charging once again. doll will make his case coming up next. later five economic reforms millennials shb fighting for. that's the title of a "rolling

stone" piece penned by a millennial. wait until you see what's in it. let's say kevin o'leary is hoping to set him straight. keep it right here. you're watching cnbc, first in business worldwide. hoping to set him straight. wait until you see what's in it.

welcome back. well, it took four sessions in 2014 but the dow pocketing its first solid rally of the year. >> let's start off with micron technology rising in the after hours session. the company posting first quarter earnings of 77 cents a share which may not compare to analyst estimates for 44 cents. still, revenues, sales, came in at $4 billion versus estimates of $3.7 billion. those shares on the rise. a programming note, micron ceo mark durcan will be live on "squawk box" tomorrow. moving on, the container store moving lower after hours. posting an 11 cent gain. profits came in at 11 cents. sales coming in light at 188 merchandise. web md moving higher late in the session on a report it sees growing mobile demand and is looking for acquisition opportunities and we're going to

end with macao gaming stocks. raising its 12 month price targets for wynn, mgm, and las vegas sands saying chinese high rollers will continue to love macao because it's morphing from a casino-only environment to more of an entertainment hub kind of like what vegas is. nice moves for those gaming stocks. >> dom, thanks very much. if bob doll is right, u.s. equities will see a 10% correction in 2014 but still finish the year higher. he joins me to talk about his predictions. welcome. >> thank you. >> let's talk about the sell-off. the number of people who expected double digit decline may be coming may be upon us. that's your call for the first quarter of this year? >> honest truth, i haven't a clue when. my better guess is first half than the second half but let's face it, markets have been easy. 2013 was straight up. that's not normal. having a pullback of roughly 10% is a very normal occurrence in the context of a good year.

my point is to suggest this is going to be a more normal year, a bumpier year than last year. >> where the market goes both up and down. we haven't had a correction since 2011. it's now 2014. does that set off alarm bells for you? >> not necessarily, although i would argue short term the market does feel a lyle tired. the advance decline line, the new high, new low list if i can be a technician for a minute and my guess is that could be part of the seeds that sow some sort of pull back. >> bigger pull back you foresee is in gold. it's had a decent start to the year. if that tells us about where we're going, does that make you rethink the bearish case? >> not really. if the dollar is moving up, which is our case, real interest rates moving up, the world healing, normalizing, that's hardly an environment for gold to do well. look, people bought gold, they were concerned about inflation, not a problem at least that i can see. and that the system might fall apart. neither of those things happened. it's no surprise that gold finally had a tumble.

i don't think we've seen the low yet. >> socgen said 2013 was the year we tested the taper. 2014 will be the year markets test the fed's forward guidance. we have a big jobs report on friday. do you think this is a case where we have a speed up scare where it's the falling unemployment rate, that the fed has to communicate what's going on in the labor force? >> easily could happen. if we get 3% real growth, inflation of 1.5% perhaps heading towards 2%, we're looking at 5% nominal growth. that is not consistent with fed funds at zero. so i do think the debate between, if you will, the markets and the fed will come to how can you keep rates at zero for the foreseeable future. >> do you think the markets will force the fed's hand? >> i do. i think we're going to get to the point -- look, the fed has worked overtime. they staked their reputation on protecting us from the deflation. they're not going to give up early. if i'm concerned about the fed

doing something wrong, it will be too late. they will wait for the markets to force their hand. >> i think they want people like you to have that concern. >> you're absolutely right they do. >> maybe they're behind the curve. talking specifically you also like municipal bonds here? there's some value perhaps in the big sell-off 2013 has created? >> yes. we think interest rates drift higher, but within that that munis outperform treasuries. thehe headlines on puerto rico d detroit. it suggests to us that the spread, which is very wide, between muni yeds on an after tax basis and taxables will narrow. >> i have to give you a hard time about that and saying you think active investments will outperform passive ones. because to some extent, that's the business. >> that's what we're looking for. we active guys have done a horrible job in the last few years. as the world normalizes, as correlations fall, active managers are starting to do a better job.

in the third quarter 51% of us outperformed the indexes. i think there's more of that to come. >> it's 51% sounds mathematically like it's almost a truism. >> well, but most of the time or i should say in recent years the numbers were lower than that. at the prove only 21% of active managers outperform. horrible job. no wonder index funds and passive have gotten so much money. >> perhaps that does change this year. we'll watch where people are putting their money. bob doll, thanks for joining us to explain what you think lies ahead. what happens in vegas is not just staying in vegas this week. find out why hollywood director michael bey of "transformers" fame walked off the stage during a live presentation. and the t-mobile ceo was escorted out of an at&t party. we'll get more details on what's going on when we come back. 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum!

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good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. welcome back. this year's consumer electronics show in vegas is attracting more than 150,000 techno files from all corner the world. there's been plenty of drama in the first day. jou julia and jon are there in the middle of it. julia, you just wrapped up an exclusive. >> approval of a proposed merger which would create the largest ad agency in the world is moving faster than expected.

telling us he expects good news from the eu sometime this week. here is why he says ces is crucial to his business. >> there is always something which is impacting the life of the consumer. so it's extremely important if you want to help the brand and the advertisers to connect correctly with the consumer to be at the latest stage of state of the art innovation. >> publicis drives more than 40% of its revenue from digital. it has deals with google and twitter. tomorrow levy will speak on stage with twitter's ceo. >> twitter plays a role as an

accelerator of information. it doesn't build over time. it builds immediately. facebook is playing a role which is much more on a long-term relationship. >> beyond the usual suspects, facebook, google, twitter, levy says two companies that his brands are moving more money into right now are linkedin and spotify. interesting stuff. back over to you. >> julia, stay right there. we want to turn to jon fortt to talk about some of the drama. there was michael bey walking off stage although drawing attention to samsung. then john ledger who escorted out of the at&t party. it seems like the point is we're talking about the people, not the products, by the way. >> a little bit of both. both of those things were surprises, but very different kinds of surprises. in michael bey's case it seems like that wasn't quite

calculated enough. with these big presentations, it seems like they're all natural, like they're there for a chat but usually these are highly orchestrated rehearsed things. didn't seem like they rehearsed that. bey wasn't in a position to ad lib and walked off. in the case of john legere, he said he just wanted to see the macklemore concert. something tells me when he crashed that party, he knew something might happen. >> that's a great point. stick around. i think we had to lose julia. i want to bring the panel in on this. consumer electronics show, there's been a lot of discussion about whether 2013 was a lost year for tech and whether in 2014 where are the big products? where is the excitement? have you guys been following it, following along looking at, you know, the smart plan and getting excited? >> before i answer that, i have to say this is the best thing i have ever seen from michael bey

on film ever, ever. >> touche. >> but i think that the challenge with a show like ces is that anybody who has a really big, important product rollout we're going to be talking about are doing these proprietary one-on-one events. so i think ces has kind of become a lot of sizzle and maybe not enough steak when it comes to the product rollouts. that's why we're talking about john legere and michael bey because the things you have to have are getting proprietary roll y0u9out approximates. >> he's talking about being the uncarrier, catering to a younger crowd which crashing a party and getting carted away is a very youth move. yes, i agree, it's a bit of a ploy. but at the same time he's talking about a new ideology, isn't he? >> he is. and it's all about personality. when you're talking about these conferences, that is what people are drawn to. what are other people using?

we were having that discussion about what's the neck thing i should have? it's not necessarily because of what the product looks like in the presentation but who has it. i think a lot of personality around this whole conference is something people are watching very carefully and jon did a great job in making people look at t-mobile again. >> jon, what do you say to all that? >> this isn't so much a place to launch mind boggling products. keep in mind, it's happening in january right after the big holiday season. this is a place to sell. you've got buyers from walmart, literally hundreds roaming the floors looking for the things they're going to stock in the stores in the back half of the year. there are some big ideas here but they're from the little companies. they're from the folks who are trying to get this iris scan technology down and attract the attention of a retailer. the bigger companies like your samsungs, apple is not even here. sony. yeah, they might throw their own event to do their big launch because they know they can draw

the press, but the little guys are trying to catch you on the floor. >> what is the little guy to watch? where should we be looking next? >> i wonder what's going to be next on "shark tank," too. go ahead, fortt. >> reporter: i don't know if i have seen any one thing that's going to be the big brand or the big technology to make smart home take off but a lot of the big players here in distribution, in retail are sniffing around some of the concepts where you have sensors all over your house that turn on your lights -- >> i love that. >> activate your alarm system, get your coffee brew pentagon. >> do you like where this is headed? would you invest in a lot of smart home products? >> ces today is a boneyard for investors. there's nothing for me to do there. this is a giant behemoth war between sony and microsoft for control of the living room and the whole wearable computing thing. the truth is it was a decade ago

when i used to be able to find small companies on the booths around the corners, interesting technology. you don't find that anymore. this thing is a lot of sizzle and -- >> where do you find it? >> -- and zero steak. you know where i'm finding them now? i'm finding them on "shark tank." we have 40,000 applications. >> i don't know though, kevin. you talk to diana olick, and she says that the smart home technology is one of the biggest trends on her beat, that people are excited about it. and to jon's point, that is a huge and nascent market that we're talking about. couldn't there be some interesting innovations there that are seeking capital? >> briefly? >> here is the problem, those technologies, and believe me we've seen four or five of them this year on "shark tank" require massive distribution and back end systems to monitor them. the only way to make any money is tyme getting a distribution deal with a black & decker or somebody else that can actually put the product to market. and that squeezes you out. it's not that lucrative to be a

first round investor in those technologies. by the way, it's a very competitive space. >> got to go. kevin, great point. jon, thank you so much for joining us, and please keep us abreast of anything else that's, you know, that goes down this evening basically. katie couric will be on the stage. that's interesting. >> what are your thoughts on michael bey. you have to deal with a teleprompter every day. what was your free association when you saw that? >> i laugh because they were talking about sort of this meltdown. i'm sure everyone in the control room back at hq is going this is not a meltdown. this is nothing compared to what happens on cable television every day. so it is i guess more -- i'd like to think it's more of a skill than people realize. not one that's always well executed. must have been a new year's resolution. the federal trade commission going after companies for false advertising in weight loss. plus the millennial leading the charge for change. he's pushing for guaranteed jobs and guaranteed income even if you decide not to take your guaranteed job and he's not

kidding. he'll state his case and we'll find out if kevenin o'leary's hd explodes. carol's might too. that's coming up. guaranteed job and he's not aflac! got 'em. ♪ yeah, he's clean, boss. now listen to me, duck. i have an associate that met with, uh, an unfortunate accident. while he's been incapacitated, somebody's been paying him cash. now, is this your doing? aflac? now, if i met with some such accident, would aflac pay me? ♪ nice. this is your stop. [ male announcer ] find out what aflac can do for you and your family... aflac? [ male announcer ] ...at aflac.com.

welcome back. we have a market flash.

what can you tell us about chuck e. cheese? >> cec entertainment. if you have a parent you are obviously familiar with this company. reuters is reporting that the restaurant and entertainment company is exploring a possible sale to private equity. now, the irving, texas, based company which has a market company of around three quarters of a billion dollars. reuters is saying everyone is declining comment here, so cec certainly on the move, kelly. back over to you. >> occupy the board room strikes again. it's that time of year millions of americans are dieting and exercising to shed unwanted holiday pounds. the federal trade commission is watching their backs and waistlines going after four companies for what they describe as deceptive advertising. eamon javers is the latest on this story. >> fdc officials this morning saying some of those weight loss products you see advertised on tv might just be a little too good to be true. take a listen.

>> consumers who base their new years's resolutions on the promises of quick and easy weight loss that these products make will be very disappointed. the claims simply aren't supported by the evidence. >> so what did the fdc do today? they singled out the makers of four products who have been charged with deceptive advertising claims. part of an ongoing effort to stop misleading weight loss claims in advertising and marketing. in total these weight loss marketers will pay nearly $34 million to settle these charges. so who is involved here? the products involved include sensa which was marketed as a product that consumers could simply sprinkle, eat, and lose weight. those makers will pay $26.5 million to settle charges. also a company called l'occitane. they will pay $450,000. lean spa.

they will surrender assets total be $3.7 million and hcg diet direct marketed an unproven human hormone. the judgment in this case was suspended due to an inability to pay. cnbc has reached out to the makers of all of these products and asked them for comment. we haven't heard back from any of them but the fdc also saying today that they weren't banning any of these products. they were just saying these guys needed to stop doing what the ftc called misleading advertising in marketing. >> i can't imagine where the sprinkle and lose weight came from. thank you. appreciate it. >> i'm going to the gym. >> he's doing it the old-fashioned way. we're joined my mary engle from the ftc. >> happy to be here. >> first of all, why these products in particular? is this just because they're the only four or the most agregregi to you are? >> they're certainly not the only four and we have more investigations under way but

they represent the range of products that are making deceptive weight loss claims and also in the case of sensa it was a very widespread advertising campaign. couldn't miss it if you watch tv, looked at magazines, and the sales were very large. >> so for you guys, it does matter how big the scope of these advertising campaigns is? in other words, if it's going to reach several million consumers as opposed to just a few, it's more likely to catch your attention. >> well, that's right. we want to put a stop to large-scale deceptive advertising campaigns, but we may also look at smaller ones as well on the internet that may be preying on particularly vulnerable consumers. >> what do these companies as soon as you come out and say they've made deceptive claims, they do not have to cease selling the product, but they have to immediately cease the advertising. >> they have to change the advertising so they stop making deceptive claims. >> do you have an open investigation into herbalife? >> the ftc as a matter of policy

cannot confirm or deny any nonpublic investigation so i can't answer that question. >> i would just imagine that for a product that's so widely both used by millions and millions of people and also, of course, debated here on wall street that you would have to be taking a look. >> as i said, i can't really comment on that. >> how often should we expect announcements from your agency? do you typically announce things just around the start of the year when people are more likely to be using these products or is this something we could expect, say, further announcements as you admit you have other open investigations within a period of weeks or months? >> you can expect further announcements throughout the course of the year. we had a few that came together at the same time and we thought it was a good time of year to announce these, particularly weight loss cases, but they will be announced throughout the year. >> and last question, what would your main piece of advice be for americans who are trying to shed those pounds in this case then? should they just take what you're saying into account when it comes to any kind of advertising for these kinds of

products. >> basically don't believe any ad that claims quick and easy weight loss. it's not quick and it's not easy and you have to eat less and probably exercise more. so that's the -- unfortunately, it's not new advice. it's not easy. it's not fun but that's the way it works. >> thank you so much for joining us. director of ftc's advertising practices division. five economic reforms millennials should be fighting for. the millennial who wrote a controversial "rolling stone" piece. he'll explain what he means by social security for all and make everything owned by everybody. stick around, right after this. [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform

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welcome back. this rolling stone article getting a ton of buzz. five economic reforms millennials should be fighting for. those five according to jesse mireson include guaranteed work for everyone. a universal basic income, taking back the land, make everything owned by everybody, and a public bank in every state. we appreciate you even graced wall street in presence given you were occupying it how long ago? >> constantly it feels like. >> constantly. what spurred this article and are you serious about these five things we've just laid out? >> yeah, absolutely. look, we have a lot of unemployment, right, obviously, and we live in the age of self-replicating robots, robots

making robots and there's not so much need -- there's decreasing need for human living labor. we have to figure out a graceful transition away from there is people have a way of contributing to society and producing culture and community without going broke and starving and getting evicted. >> kevin o'leary, what's wrong with that? >> jesse, thank goodness you and i have met. they tried this experiment once before. it was called the soviet union and it ended very, very badly. you can just google it and see everybody ended up down by the river eating government cheese. why do you think this is going to work? >> well, i don't know exactly what this you're referring to is, but each of the five reforms that i have proposed are currently in the world. four of them in the united states in the come communist hel hoels of alaska and north dakota. >> it goes around the cost of education. one of your concepts here seems to have a premise that an education is a right, not a

privilege. and i have a huge problem with that because anytime a loan is extended from a government agency or supporting an educational activity that doesn't reflect the market cost, i have a problem because i'm paying that bill. i'll give you an example. if you want to spend seven years getting a philosophy degree and you want to borrow the money and then come out and sit on wall street complaining, you deserve to go to debtors prison because you know with certainty you're not going to get a job. i will charge you 18% plus i want your parents' home as security. >> there's a freedom-loving individual. look, i will say this. i didn't write anything about education so i'm not totally sure what you're referring to. but the fact that -- i mean, there basically already -- >> you're complaining young people have a lot of debt. most of it comes from educational debt. that's where they find themselves in a horrific position. >> you didn't read the piece did you? college is way too expensive and people have taken on too much debt. >> i would like to jump in here because i think, you know, i know you have been taking a lot

of flack. i am possibly not going to beat up. >> bring it. >> this is sort of a learning opportunity because i think there are a lot of things millennials need to be concerned about and debt is certainly one of them. i think student debt is a huge issue. the $17 trillion and growing of debt that the government has that you're going to be left with, and then a lot of the other things that are coming about, the fact that obamacare is asking young healthy people like yourself and your peers to pay for people who are older and more sick. i think there are a lot of things for you to get rallied around, but i don't understand as kevin said sort of the i am owed a job, i'm owed this, i'm owed that. have you been learning perhaps some other things that you should be thinking about as you've gone through this process? >> well, you know, none of these ideas are marxist. they're smith and ricardo basically. universal basic income is similar to what murray and

freedman proposed as a negative income tax and land value tax proposed by henry george who was a famous libertarian. none of these are marxist which is the main criticism. >> i think jesse who wrote a very intelligent thoughtful peace a getting a lot of paternalistic push back. i think the idea of a universal income of people who work or not is a tough sell but there are other interesting ideas including a revival of the new deal. how would you suggest your age group like advocates for it? what is the next step because i think some of this is a tough sell. >> that's a great question. the political effort to get this done is going to be extremely difficult obviously. i propose it will probably take something like 15 to 20 years of really bitter political struggle to get any of these things passed which is part of the reason why i wanted to address millennials. i hate that term but that's why i decided to address us because in 15 to 20 years we're going to be the group that makes up the sort of political dominant class

in the country. so, you know, a lot of it is things like this, getting the word out and whatever. i squaus want just wanted to ma know i didn't propose everybody is owed a job. i think it would benefit everybody if everybody had income. it would provide people with means of support and a way to live and a way to produce community and culture and whatever people produce. >> jesse, do you concern yourself -- >> let me let sharon get in here. >> i was just going to say that your generation is also great at creating jobs and that's one thing you don't really talk about as much in there. i think one of the things that really needs to be thought about with your generation, with millennials, with everyone, this is an entrepreneurial society. you can't think about how you're going to create your own opportunity and that's an opportunity that you had in that first point you made to really underscore while you have this political movenlt going on, there really needs to be a wholehearted economic effort to

really get entrepreneurialism to build skills. >> that's the one place it fell short here. you don't have a lot of economic background. you're learning as you're going. the one thing that's key here is you talked a lot about getting the job but you didn't talk about the skills. this isn't just about raising wages by transferring money from one place to another. this is about innovation, creating -- >> the job guarantee i think spurs that sort of thing. if it's run through the private sector -- i'm sorry, the not for profit sector, it acts like sort of a public interest fellowship where you could -- if somebody identified a community's need and wrote up a credible proposal for how to meet it and wrote about how many jobs would be created in the process, they could obtain funding. that's very entrepreneurial. >> that's putting too much onus on jesse's graduation. i graduated into a much better economy and i worked in college -- >> i said there were a lot of things they need to be concerned about -- >> i want to get kevin back into this -- >> if they're not getting the

training they need -- >> go ahead, kevin. >> jesse, quick question. just a concept here because i'm trying to work with you to figure out if there's any merit in any of these ideas, okay? because i think you deserve that -- >> there is in all of them. >> it caused a lot of controversy. if you're guaranteed a job in your utopia, what reason would you have to perform? what would make you get up in the morning and do a better job than the day before if you're guaranteed the job? how can that possibly work in our capitalist society that's made us so great over the last 200 years? >> or what if you did bad job? do you have any sort of performance obligations? >> novice that i am, i can refer you to some economic literature on this if you'd like. the vcenter for full employment and price stability at the university of missouri at kansas city has a vast literature on how a job guarantee would work including answering your questions. i would look there.

but in any case i would note that mostly what motivates people to do their job isn't the prospect of getting rich. for the guitarist the motivation is the standing ovation. for the artist, the motivation is the good review. for the coder, the motivation is putting out a the good review. for the coder, the motivation is putting out a viral piece of technology. and if people have the resources, the resource question settled and they know they're not going to starve if they do a bad job, they have a lot more freedom to strike out on their own and be entrepreneurial in that way. >> jesse, i'm going to make you an open offer. >> last word, kevin. >> listen to me for a second. i'm going to make you an open offer. come and work at one of my companies for six months and i will fix you. okay? >> not going to happen. i'll make you an offer. come occupy wall street with me and i'll fix you. >> i hate the temperature. it's terrible. i don't want to sit outside and freeze. >> we have to go, guys. jesse, thank you so much for being here. very interesting discussion. and the panel will stay with me.

there's lots -- we can read his piece, if you haven't had a chance to online. you can catch more of kevin o'leary on tuesday nights, starts with "shark tank" tonight. 8:00 p.m. eastern. that's all coming up in just a couple of hours. it is freezing outside. but the website's burning up. stick around. the stories topping our "hot list" are next. and should the government going after individuals in wall street cases and not just the companies. your best thoughts, on air, when we come back. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. fifteen minutes could save you fifteen percent or more on car insurance. yeah.

everybody knows that. did you know there is an oldest trick in the book? what? trick number one. look-est over there. ha ha. made-est thou look. so end-eth the trick. hey.... yes.... geico. fifteen minutes could save you... well, you know.

welcome back. it's nice and cozy on our website, unlike the weather that's across most of the country right now. allen wastler, what's leading "the hot list" right now? >> what's heating us up is outrage clicks. our number one story is the story about nearly 100 expolicemen and firefighters being accused of a broad disability scam. and i think the reason. we're getting 200 readers a minute diving into this story that was put together for us by our investigation team. i think the reason is it includes pictures like this one. this is one of the accused. he's accused by the manhattan d.a. of having about -- over $200,000 worth of disability

claims. and there he is, pulling in a sail fish. you can understand why readers are diving into that. number two, you just interviewed him. bob doll. we have his predictions for the year. and three, it was bill nye the science guy. he was talking about the polar vortex. >> surely that's not an outrage click. >> it's not. but we're getting a social push from it. so many people are saying, i remember seeing him on the kid's show. >> i do, too. allen, we just interviewed jesse myerson. did you catch that interview? how is that going to play online? my guess is it's going to generate a lot of discussion. >> the fun part of that is going to be in the comments because the cnbc readership is going to have a lot to say about his point of view. >> people are already asking -- they're saying, how would all this work with his employer? of course, he's a freelancer and doesn't have an employer. he didn't ask if he would support these claims or not. it's interesting. a lot of comments already on

cnbc. >> we'll keep an eye out for it. we'll check in with you tomorrow. send us your tweets in the meantime. we want to know if the government should go after individuals not just the companies in wall street crime. tweet us. [ male announcer ] the wright brothers started in a garage. amazon started in a garage. hewlett packard, and disney both started in garages. mattel started in a garage. ♪ the ramones started in a garage. my point? you never know what kind of greatness

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welcome back. jpmorgan chase announcing a settlement over the bank's alleged role in the bernie madoff ponzi scheme. do you think the government should be targeting individuals instead of the institutions in these standout crimes? if jpm is penalized for ineffectiveness, when will be fec be charged for ignoring it all. james tweets, i think the head of the s.e.c. at the time should be prosecuted. we'll show you the best tweets from our millennial interview a few moments ago because there are already plenty of them. want to thank the panel for being here. we see this theme of where was the s.e.c. amid the jpm thing keeps coming up. there was a whistleblower. they were told what to do. >> the government's not accountable for anything. one of the biggest issues we have facing us as a nation.

no fiduciary duty. every company has fiduciary duty and we do not at the government level. >> kevin, thank you for joining us. sorry we couldn't make it back here. we'll be looking out for you on "shark tank," every tuesday night, starting this tuesday night at 8:00 p.m. eastern time. the new season kicks off tonight. thanks to all of you for being here. fascinating discussion now. "fast money" coming up now. what have you got? >> excuse me. marissa myers, going through her remarks and tell us how to trade it. >> over to you guys. "fast money" starts right now. watching the markets at new york's times square. the momentum names. forget tesla, linkedin. we're looking at to 14. and some of them may not be so sexy. yahoo!'s ceo speaking out at the consumer electronics show in vegas. we have the highlights. and one 3d