and welcome to "street signs," everybody. nervousness seems to rule the day. we are down on the dow the most in about five months. you can see down 229 points. that's about 1.4%. there's not one big story out there today, folks. rather kind of a conglomeration of a bunch of stuff. overnight china manufacturing. the pmi number coming in weaker than expected. that got people spooked. then, i'm not sure we ever, mandy, talked about the argentinean peso. that's taken a better than 15% haircut. new emerging markets concerns. turkey still out there. a big down day.

a lot of nefrsness and not one big single story ruling the roost. a collection of things we need to worry about. we'll be hitting this in the next hour. >> bring it closer to home. a closer look what's happening with the dow. currently at a five-week low. it has been down about 2/3 of the time this year. the s&palities down 1.3%. about 90% of the s&p is now in the red. as for gold, it is rallying to a six-week high. indeed, gold is up about 3% year to date. it's been a bit of a sleeper hit. maybe people are surprised what god has been up to after a dismal 2013. bottom of the screen, the ticker, yielding, yes, below 2.8%. send it down to bob pisani at the nyse. brian alluded to at the top of the show, how much can we lay blame at china's feet? >> oh, i agree with art cashin. 70%. seems right to me. show you what happened.

i just watched the markets and then explain what's going on. 8:30 last night, when the chinese pmi numbers came out. market dropped immediately on that. when we opened we moved down again. that's the chinese pmi. concerns about growth in chine that. another big issue. put the yen up. strengthens. causing problems around the world. the yen dollar, when this goes down, means the yen is strengthening. causing problems with other currencies around the world and with emoerging markets. the fxi. china emerging market. down 4%. turkey, korea, brazil. all down 2% 3% or 4%. here in the united states, circuits associated with energy materials, grow, notably on the down side today. pointing out an interesting thing. brian, you mentioned, i've weren't bauching argentina a while. the peso hitting record lows, default risks looming out there. some of the article tgentinean

are down. don't have the chart. trust me. all on the weak side. and brazil as well. >> bob, probably about 15 years of doing this or so, the first time ever let a show talk about the argentinean peso. a fair comment. >> a lot of strange currency fegts going on today. those currency effects are playing into the stock market. it's our job to point out those relationsh relationships. did the right thing at the top. >> trying, bob. appreciate it. like bob said, across the board in the red today. it's not just here. it's everywhere. almost every single country on our screens is down. you've got the u.s. dollar also down against the number of different currencies and not just one story. right? it's ate of different stuff. some rather complex. bringing in people smarter than us to talk about this. bring in permanent portfolio fund and with us, christina. to bob pisani's point. if i say ibm missed earnings, the dow goes down, easy to understand. company misses, big weight. talking about turkey and the

argentinean peso. sort of complex. what's your global take right now? >> the global table is there are certainly jitters out there, and investors are really reacting to an absence of a lot of domestic data. so there's an extra focus on what's going on outside the united states. >> are they -- reacting, but overreacting to it? >> clearly they're overreacting to it. what we've really been in since early january is a post-december jobs report environment. that was a shocker. but investors are trying to make sense of whether that is indicative of a trend that we're going to see a much weaker employment situation in 2014, a wacker consumer. or if that was truly an anomaly. in the absence of that data and without really domestic, significant domestic data this week, i think there is more and more of a focus on data points we wouldn't necessarily be focused on, if we received a lot of u.s. data this week. >> working in a bit of a vacuum

here. of course with the exception of earnings, michael, do aagree what we're seeing is an overreaction or maybe the tip of the iceberg of a bigger story? >> a lot of question embedded in that one question, mandy. i disagree with the dearth of information. in the middle of corporate earnings season trying to gauge 2014 outlooks as well as understanding q earnings. i think a lot of u.s. data, but a lot of the strength'sing economic data we've seen in q4 in the u.s. is somewhat predicated on china and emerging market growth, because u.s. companies participate significantly in those areas. if you start to see a hiccup in those areas, like the china pmi report this morning, that does call into question all the happy talk we've had about u.s. growth rates going forward. so i would agree with christina, the markets digesting a lot, employment numbers were weaker. i think an aberration. investors after several years of killer stock gains are trying to gauge whether this is going to continue, or whether we're at

the end of that cycle and investors need to think where they're going next. >> i don't want to fearmonger. what is the market potentially factoring in for china when they get bad date nah? maybe a financial house of dhards could tummal down and have ripple effects around the world? >> certainly the worst case. we're long-term believers in global growth. i think you hiccup from time to time, but we do think that economy as well as india as well as south america, and a lot of the other emerging markets, you mentioned turkey. we think in the long term they are growth story, but that doesn't mean it just goes to the -- you know, that they grow to the sky. you'll have periods of consolidation and slowdowns. the key as a long-term investors is to separate that and not overreact and the look at it as buying opportunities for the long term. >> christina, ask you a question you may not be able to answer. here goes anyway. since 1980 argentina defaulted on its debt i think three time. probably going to default again. close now for a couple of

months, and it's going that way. i'm no longer welcome in buenos aires. if they default on their sovereign debt, should our view mom and pop, sell their u.s. 401(k)? or ibm? or ge? because that's the way it's acting today. >> absolutely not. but what investors should be focused on is how long their investment horizon is, and that reality should dictate what they're doing. a very short term time horizon, probably should be also nervous. not because of this necessarily, but because we have potential negative catalysts coming in the next few weeks. i don't think investors are focused on another debt ceiling debate. >> what are the catalysts? >> potential for a debt ceiling debate. yesterday the secretary to the treasury sent a note to congress informing them we will hit our limit february 7th. not too far away. and while there's a much more conciliatory tone in washington, d.c. these days, there is that

potential for some significant jitters. >> and certainly secretary in davos talking to the "squawk on the street" team saying avoid further self-inflicted wounds and alluding to that. quickly, michael, what we're seeing around the world right now, what we're seeing here in the united states with the markets, is there any potential it might stay the fed's hand from a further taper next week? >> absolutely. i mean, i think if the fed begins to think that the stronger data we've seen the end of last year was an aberration, we'll actually head for slowdown, i could see stalling bond buying where they are. increasing it if things were really bad. i definitely don't see them changing their loose money policy direction anytime soon with respect to the low fed funds rate. i think they're here for a while on that one. >> certainly the ten year suggests that as well. michael, christina, great to have you on the show. thank you. over to dominic chu for a quick market flash. >> shares of apple rallying off lows reclaiming positive territory, just by a hair. the stock is getting some help

on the heels of a "wall street journal report" saying apple is working on a new phone, iphone, having a bigger screen as well as a metal casing unlike the plastic one on the iphone 5c. screen sizes for the new phones right now could be 4.5 top 5 inches. remember, samsung galaxy has a five-inch screen. watch nine to five app working on a tv box to debut the first of the year. a much speculated television set. back to you. >> dom, phone xreernlgs peopscr everything's getting bigger -- except tv screens. and comes out of davos. the band u 2 and bank of america announcing donating $10 million to fight aids. u2 releases a new song "invisible "during the super bowl. available foe free. each match wade dollar to the global found fight aids. in an exclusive tv interview,

bono, paul hughes, or husen, a top 200 contender spoke exclusively with our own becky quick. >> 700 babies are born every day with this hiv virus. and many have to, of course, pay for the rest of their life to keep them well, or they don't have to be, and that's so exciting. it's like 40 cents a day. this is a real doable thing. it's not sort of we're here in davos and aren't we great and one day. it's not one day. it's coming up. i think one of the things you seem attracted to, that you felt that your consumers and employees liked that this was finite. >> well, and because it -- it's definable. now, the experts have got to get it done, so our job is to help bring the money to the experts and so the donation of the song and the ability to download, a dollar for every download to start the fundasing, awareness

and the next push. >> actually, since that interviewed tape with bono, the gates foundation, german software sap and a family in south africa are donating or adding to the pot with matching donations totaling now $22 million. you can see the entire interview, brian honey han and bono, tomorrow morning on "squawk box." up next, why a flurry of retail store shutdowns could change the face of your local mall. plus what might just be the surprise stock of the year, mandy. it's a name that says, love. >> and the later on, nigeria's stock market. a massive run over the past couple of years but it is increasingly in global investing sites. a lot of risk but could be also a lot of payouts. a shortened week, long series on the mint. it does continues. we're all over the market. down 212 points now on the dow. the first time we've had a 200 point or more drop on the dow since august the 15th of last

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female announcer: for the new mattress models, but sleep train's huge year end clearance sale ends sunday. get beautyrest, posturepedic, even tempur-pedic mattress sets, at low clearance prices. save even more on floor samples, demonstrators, and closeout inventory. plus, free same-day delivery, set up and removal of your old set. don't wait! sleep train's year end clearance sale ends sunday. superior service, best selection, lowest price, guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ welcome back to "street signs." i'm julia bourorstin with an update. bid for time warner cable, received a letter from t. rowe price, a major shareholder asking to engage with charter about its bid. this was first reported by the ft.

time warner cable would not comment, saying it has a "active ondoing dialogue with many shareholders." charter says we continue to reach out to time warner shareholders to discuss the merits of our offer. it's worth noting t. rowe price is a major shareholder in charter and time warner cable as of the end of the third quarter, t. rowe price one of the top institution the shapeholders with both company, 5.1% of charter and 3.24% of time warner cable shares. >> thank you. developing story. and look at u.s. markets, talking of developing. fear is back. at least for today. the dow is down by 217 points. it has been down about two-thirds of the trading day so far this year. confluence of the fact, disappointing news out of china. let's bring up the fear gauge. this is the vix. up about 11%. actually 13% as we speak now. sitting around a three-week high. brian? >> shares of herbal life taking

a big hit after massachusetts senator ed markey calmed on the sec and the ftc to look into the company's business practices. herbal life responded say they go look forward to addressing the senator's concerns. bring in the street dotcom's herb green beberg. fire behind the 1340ek? >> anytime you have a senator stepping up and raising questions suggesting there could, wondering whether there's a pyramid scheme or something? definitely some fire. the letter he wrote to, to the ceo of herbal life, michael johnson, is actually quite interesting. in the letter there's just, very significant questions, and when the company said, in its comments that they look forward to answering the questions, hey, i look forward to hearing the answers, because he starts out by going after the, quote/unquote, capacity of their compensation system, which as you know, somewhat confusing and complex. but then gets in there and starts wanting to know, you

know, why the company's statements about the percentage of sales outside their quote/unquote network has changed in various conversations with the company? you know, the president of the company, it said it was like 70%. then on cnbc, the ceo of the company said 90%. getting down to that and then drill down and say, please provide information about the percentage of your retail sales outside your distribution network. this is a significant question that people have wanted the answer to for a very long time. let's see if they have to actually give a detailed and specific answer. >> and here's the thing, herb. if we get right back to why senator markey decided to do this, he's acting on behalf of constituents he says wrote to him or came to him and said, look, we signed up our life savings to become distributors for herbal life and have lost that money. >> well, you know, we did the documentary for cnbc.com, "selling the american dream."

that's what we found as we talked to victims. people come in, want to make a living. they pay the money. and then they lose -- some of them, many of them, lose money, and that's why you look at this and say, why is there a turnover rate among whether you call them distributors or customers? which right now there's a blurring of the lines on that, that, you know, turns over 90-plus percent every year. >> a human story behind it as well. herb greenberg, thank you. we'll wait to see what the investigation yields. jcpenney, macy's and target, some of the big retailers announcing store closures this year. as e-commerce grows, will we see a rise in retail ghost towns across the country? bringing in david burnbury, chairman and co-ceo of the shopping center group advising over 300 retailers and restaurants from manhattan and miami. david,y a understand jn a traditionally the month when a lot of companies come out and do announce store closures. at same time it's a worrying trend, and does it mean

eventually extinction of the mall? >> january is always a worrisome time and always the time that retailers announce store closings and it's a natural part of stores evolution. i don't think this, january is directly any indication, this past january is any indication of the closing of malls throughout the country. >> you're not worry the? really? >> i'm obviously worried about about the malls that haven't stepped up their gain. they're tied to the department store and creativity and imagination of the owners of the mall. a number of mall developers stepped up their game and delivered a great product. >> yeah. i worry, david. it's brian sullivan. you go down landscaping, enough empty storefronts. day -- if a strip mall losing an anchor tenet, a lot of those have a legal trite break their own lease, if they dougo down bw a certain occupancy rate. >> that's correct.

called the co-tendency clause. you will end up with a lot of ugly, poorly conceived retail projects that were out there that were built in the mid-80s strictly for the purpose of buying them, building them, tenanting them and selling them. poorly conceived and those projects won't succeed. >> bringing down the property values of those who live around the units as well. they need to care what happens. what, then harks been, david, the amazon impact on what you do? >> well, the amazon impact has impacted anything that's commodity based. any commodity based retailer is affected in some manner, some way, shape or form by amazon. again, in similar fashion, the retail incumbent upon them to step up their game, provide experience, theatrics and also validate on providing a value to their customers. a lot of retailers have done that. >> sounds good. on paper. we're going to provide a retail experience, but, really, do you think that's going to reverse the tide that is going to win the shoppers back lost to the

win? >> a lot of categories that have faced existential threats. theaters are one. challenged by live, by streaming video forever. and they've stepped up their game. provided a new experience and theaters are doing extremely well. the other categories could easily follow suit. >> david, a pleasure to have you on "street signs" for the first time. excellent analysis. we hope to call on you thank you. >> thank you. appreciate it. talked about shopping centers, looking to buy them, maybe you think undervalued or do whatever. short them. broke down the biggest names by market cap. i didn't put in simon property group, the big luxury mall. more of the strip mall, interior mall operators out there. biggest of them all kimco realty, yield, 4.3%. federal realty trust. 2.92%. don wood ceo on with jim cramer many times. never heard of this copy before until i ran the screener. ddr corporation, own property all over america.

ohio based and 15 shopping centers in puerto rico. we know puerto rico's problem. keep an yeah on that name. yield 3.95. recentantsy center, 3.81. grocery stores, tried to look in portfol portfolios. the biggest shopping center reits to our audience if looking to do anything. >> important to know in light of our former segment. thank you very much. still ahead, the earnings squad will take over with the three top names to watch before they report. and we are all over this market as mandy said. biggest drop since mid-august. the dow down 210. china concerns. the yen. argentina. concerns in turkey. syria, still a problem. all of a sudden -- we got 99 problems, and stocks are one. we're back after this. [ male announcer ] once, there was a man

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♪ welcome to the earnings spot. melissa lee, and joining me, founder of option monster dotcom. starbucks, the company reporting earnings after bell. a couple areas of kearns. how sales are doing in the united states. of course, a big holiday season

yet a company memo issued to u.s. and canadian managers in early january from hour schultz saying we are e essentially not immune to go online, raising a red flag, perhaps how sales actually turned out. then, of course, china. s did appointing pmis today. helping to add to the pressure on the u.s. markets today. is the growth there especially, is that market seems to be going add odds with starbalks questioning pricing of its coffee, going on since the fall? certainly hanging over the stock for some time. >> it is like howard schultz said. not something you can order online and have it delivered by fedex. they can't screw that up, the delivery side. you can't and are not going on starbucks to buy something online. very little, anyway. that could impact by these storms. >> i wonder how much the weather, that was my point. the weather's going to have an impact. whether they make a reference during the call? >> and november high, down 11%. a rough ride for starbucks.

and surgical posts after the bell. we're on "street signs," this is a herb greenberg sort of name. >> herb will be watching among other things. that's margin melt, because what are the margins going to be? can they keep up a net profit margin of about 30%? building up to that? will 2013 come into that way and straddling in about a 6.5% move. so far the markets have not anticipated the moves like netflix. only pricing in about a 10% move at max, and it moved 17%. so they could be doing the same thing here. they're not pricing in enough risk to the upside or down side in my opinion. >> right. this could be a huge mover. what's the prediction in terms of the options market in terms of the move on the stock? >> optimism. believe it or not. some because the price of the machines and the fact that it's not subject as much to something like china. these are machines sold primarily domestically. some sold internationally, but

really a u.s. story. >> and talk pmg on deck to report before the bell. dom? >> an immensely not following stock. >> meaning dead money? >> up maybe 10%, 11% over the last year seriously underperforming the market. the options market implying a move of just 2% up or down for that stock. with thas it's not just about the profit beat or miss or sales beat or miss but the growth picture internationally. we learned last quarter they're fighting the same macro economic head winds all the other unilevers of the world, big consumer products companies are fighting. a lot of brands, ag lafley, ceo, brought back in may, trying to revive growth with new products. hopefully he can do it. >> watching emerging markets today with the u.s. sell-off also selling off, interesting what they say about surcurrentl is in argentina. and tweet us. back tomorrow on "squawk on the street."

and earnings after the bell, microsoft as well as starbucks and the wrap of today's sell-off. >> a good show, milissa. thanks. and talked about it a little. the stock market, folks. down more than 200 points on the dow now. what has happened? right? i just tweeted out, like a lego wall of worry. not one big thing. >> a number of bricks. little plastic bricks making a big red day. >> more of your style, make you like more scandinavian than danish. up next, green arrows on the down day. we'll talk about that. plus, netflix hitting an all-time high after earnings yesterday. talking numbers all over netflix when "street signs" returns.

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welcome back to "street signs," everybody. we're seeing an acceleration of the selling out there on the u.s. markets. the board what is going on. dow down by 210 points. it is broken below its 50-day moving average for all who like technical analysis. nasdaq off by 1% and s&p 500 down by 21 points or just over 1%. straight to bob pisani. are there any people down there on the floor of the stock exchange saying this is the kind

of correction i was waiting for? i'm a buyer? >> yeah. it's -- well, yes. we've been down on the dow and the s&p. dow notably underperforming the rest of the market all throughout this year, although the transports are up and the russell is up. there's a strange bifurcation in the markets going on. let me point out what happened in the futures. it was clear last night at 8:30. we came out with futures up, netflix doing well and there you see at 8:30, markets dropped. we saw the chinese manufacturing numbers weaker than expected. it accelerated at the open here today. european markets also were kind of weak, but emerging markets in particular put up the eem. the bogey for emerging markets. larkly china. down about 7% so far on the year. this is just an intraday chart. at the lows for the day. then the global, big international names here were weak on the concerns about china and those were the material names, your industrial names and financials which have done well, also on the weak side.

chinese economic numbers weak several weeks. this is the last little straw here for people to deal with. there were suggestions here, consumer, demand weaker than expected. the new orders number was very weak. >> yeah, and china is big, bob. pmi getting all the attention. i loved your graphic showing how futures dropped right when the number came out. you've been doing it a long time. argentina in 2002 got a lot of attention globally. it hurt up. the drop they're saying in exchange rate, biggest since 2002. i'm going ask you to opinionate. you may say hell no. ? nor mind, is argentina as big or less relevant but a headline? >> less re vanlt than it used to be. you have a country as big as argentina, you start seeing issues you're getting with argentina in 2002, they defaulted on the debt. >> exactly. >> they are not defaulting here, but obviously there are concerns. >> not yet. >> uh-huh. >> obviously concerns.

they outright defaulted on the debt. the repercussions are still being dealt with. still repercussions around the doubt. hedge funds still fighting them. >> it's stealing ships. >> capital flight in that country because of the economic policies that they have been pursuing. i think brazil is a bigger country and that's a somewhat bigger concern. >> it is indeed. for all those out there saying currencies are boring, they are not. exact proof they're worth watching, because what they do have huge repercussions. look what happened last year, week yen. >> and other currencies are falling. don't put the lear before the default. to bob's point, not getting a lot of attention. $285 billion in investor losses in brazil in the last couple years. $285 billion. not just eike butitta, the benchmark brazilian index down 7% so far year to day. only 15 trading days into the

year. a nation that's going to be hosting both the olympics and the world cup in the next three years, down 7%. that's a big problem. >> and a lot of this, by the way -- not just tu due to some of brazil's poor economic policies in fairness, the commodity market dropped we saw in 2013 really hurt them. they're a commodity producing country. there are a number of other factors, but you're right. under a lot of pressure now with some of the games they're going to be putting on and a lot of issues whether they'll be able to finish all the infrastructure necessary for, to put on those games. >> excellent point about commodities. we've been focusing on mints all week. indonesia, a big exporter of a number of products -- >> good grief? >> what's good grief? >> short-term chart down 1 percent 13 -- 13%. on pace for the year -- that won't continue.

my path stinks. >> none the less, the point is -- >> yesterday corporate earnings. today netflix, argentina and possibility of default. chinese pmi. bob, are we missing anything? should we throw something else in there? a coin? >> and -- >> i note on the brazilian, third biggest component in the eem. the emerging market etf. china, two russia and number three brazil and then south korea as well. so when you get the bow vase pa down and the china market down at the same time, that's why the een, supposed to be emerging markets, is down 7% on the year. these two together, because of the waiting in there, brings it down. the weighting. the problem is what went back to the whole thing a great interview with jim o'neil. because of that, al of these indexes emerging market are weighted to china heavily, and so you've got china brazil axis back to the jim o'neil ten years ago. we need new ways to look. a brilliant series on the mints.

new opportunities coming out you've got to look at. >> and talk about nigeria later in the show. >> love that discussion, with jim o'neil. >> and nigeria today, turkey tomorrow. bob, thank you. >> get away from the tyranny of china. from hooking everything to chine nanchts i'm not sure therapy getting away for the tirn of china. mandy wore our super eagle green. nigerian soccer team just for the show today. guy knows everything. unbelievable. bring in wells farc othin w adviser. and stretching, while you came to a camera. what's your take on today's drop? >> brian, you need to put this into perspective. we had a 30% run higher in the s&p 500. people are looking for excuses to take money off the table. all the issues that came up today. chinese pmi. other emerging market issues. those are not new items on the table. i think what this mostly is, is

just people taking a little money off the table after a big run. i welcome the volatility and when i've been on with you before, i've said that. i think we're going to be more volatile, see more back and forth trading. i welcome that. it's an opportunity. we want our clients who have way too much cash on their balance sheets in here buying stocks on pullbacks. >> and i'm going to put you on the spot. why we've culled you along. how long will people use this as an excuse to take money off the table? how many will be taken off the table before we hit the bottom of the route? >> if we saw 5 percent pshs 7% pullback, good. those have been hard to come by. think, it's been since i think april to june of 2013 that we've seen a 10% pullback. we've come a long way, but i still think the cyclical sectors industrials, consumer discretionary, technology, on these pullbacks, they'll perform the worst, and that's where want to be. you want to be in there buying those sectors, because i think the market has a good chance

this year, let's say you get a 6% or 8% total return, something like that. that's another -- i think that's going to happen in 2015 as well. this cyclical bull market has more to go. volatility is opportunity. that's what you want to keep in mind. don't get too psyched up this is the beginning of a big pullback. >> feels like 2014 won't be the one-ray ride it's been over the past year. >> i don't think so. that's good. >> thanks, guys. >> thank you, scott. conducting that interview, looking at my machine. did you know, a little knowledge we'll drop for you, in the last month the dow is the fifth worst performen major index in the world. brazil is first. russia is second. china, korea, dow jones industrial average. >> there you go. >> big markets, important in regions. time for "talking numbers." hit one stock every day fundamentally and technically. big day for netflix. right? in fact, the best performing stock in the s&p 500. one of only 44 until my count of

the 500 that is higher right now, by the way. so with the big jump is netflix still a good bet for your money jp richard ross on the technicals. mark liquiden feldt. and rich with you, netflix, huge gains the last 18 months or so. any more room to run on this bad boy? >> there is room to run. the stock is up $54 today as we all know against the backdrop of a sloppy global macro. we call that outstanding relative strength. look at this chart here brian. we all know about last year. 300% rise. it ends in december with that mini head and shoulders top. a breakdown. 15, 16%. normal correction. but importantly, we hold the 100-day moving average and build a nice base. today we explode out of that base we all know. this is where it gets interesting. we're right back to that 388, 390 level. not only is that your december high, but it also corresponds with the october high, where carl icahn famously sold out his

position. i think we break through that psychological and technical resistance and there's plenty of room for upside here. you want to be a buyer on netflix even in the wake of today's fantastic run. >> and listen to herb greenberg, netflix subscriber growth impressive, cash growth is not. what do you think? >> netflix share price is a house of cards and the cash flow argument is a begun. they only generated $5 million in cash flow in the third quarter with 30 million subscribers. neg niv 2013 and going forward in 2014, only projected to generate $200 million in free cash flow. that gives the stock a price to cash flow valuation of over 100 times. ridiculous. also, forward earnings. priced to earnings is over 80 times. so the valuations aren't reasonable until you get out to 2017, 2018 estimates. you don't sale stock just because it's pricey. there's other things to be concerned about. net neutrality.

naive to think the company doesn't suffer costs from having to pay more for bandwidth or having to pass that on to the consumer, and we know that the consumer is very sensitive to share price, and i also didn't like the conference call last night. reid hastings crack about the password of hbo's ceo is, just smacks of arrogance to me and arrogant ceos typically do not make money for their shareholders. pat brick burns from overstock. i would not touch the stock here. >> i would add, the only one that didn't like that conference call last night with the stock up 54%. this company re-invented itself. look, $22 million market cap, same as tesla. below twitter. much more attraction with netflix. huge international growth. they represent one-third of internet traffic during peak times in north america. impressive. this stock and company have plenty of room to grow. >> guy, thank you. mark, got to go but appreciate your concise and clear point of view and strong opinions.

thank you very much. rich, see you again soon. guy, thank you. be sure, folks, to check out the online version of "talking numbers" part of our partnership with yahoo! finance. still ahead, we're all over this marx. plus, the number one issue for microsoft and now it is not finding a ceo. tdd#: 1-888-648-6021 there are trading opportunities tdd#: 1-888-648-6021 just waiting to be found. tdd#: 1-888-648-6021 at schwab, we're here to help tdd#: 1-888-648-6021 bring what inspires you tdd#: 1-888-648-6021 out there... in here. tdd#: 1-888-648-6021 out there, tdd#: 1-888-648-6021 there are stocks on the move. tdd#: 1-888-648-6021 in here, streetsmart edge has tdd#: 1-888-648-6021 chart pattern recognition tdd#: 1-888-648-6021 which shows you which ones are bullish or bearish. tdd#: 1-888-648-6021 now, earn 300 commission-free online trades. tdd#: 1-888-648-6021 call 1-888-648-6021 tdd#: 1-888-648-6021 or go to schwab.com/trading to learn how. tdd#: 1-888-648-6021 our trading specialists can tdd#: 1-888-648-6021 help you set up your platform. tdd#: 1-888-648-6021 because when your tools look the way you want tdd#: 1-888-648-6021 and work the way you think, you can trade at your best.

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microsoft, big company reporting after the bell. the focus has been on who's going to be the next ceo, there is a big are issue facing the company. josh lipton whashs is it? >> mandy, it's been the big question for microsoft investor for five months. right? who's going to replace steve bomer as microsoft's ceo? walter pritchard, citi's software analyst says the issue for microsoft isn't so much about the next ceo but an important product which accounts for 30% of the company the profits. >> i think at the end of the day whether it's an insider or outsider they face the same set of challenges. a company increasingly losing a grip on its, on the core of what built the company, which was windows. >> windows has been the foundation of microsoft's

product line for 30 years. pritchard says it's "waning in relevance" as fewer consumers are using pcs. mobile device, smart foerngs tacts, of course, growing rapidly. microsoft is muving hard into the mobile market, buying nokia's device business for $7 billion, but that business is struggling. today nokia reporting that sales add its device business dropped nearly 30%. pritchard thinks the more successful strategy, for microsoft to pare back windows efforts, get out of consumer businesses and focus on enter fries opportunities. back to you. >> josh, thank you. again, those numbers after the bell. a big one. still ahead, hitting on cement, banks and beer. they have to do the country that is next as part our mint emerging market series. and justin bieber taking on the law. will a drunk driving arrest but the brakes on his maeg georgia brand? >> he's a brand? >> he's a brand. it and such. works for me. turn to the camera.

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crude oil settling above $97

per barrel for the first time this year. that is up less than $1 to $97.32. for the year, crude has dropped more than a percent. the commodity's route is well known. >> speaking of oil, we're on day three of our series on the m.i.n.t. emerging markets. mexico, indonesia. today is the "n," nigeria. this is a country rich in oil. in fact, 70% of the government revenue comes from oil and gas. it is also, a nation, constantly plagued by corruption and terrorism. nigeria, a nation of hope but also woe. that means opportunity. should you take a risk of putting money into nigeria? joining us from barclays, she used to lead the cia's lead economic analysts focused on nigeria. probably no nation in the world with more, i guess, raw opportunity, with oil and other

minerals and yet squanders it through bad leadership and corruption. will it ever change? >> there's always so much expectation on nigeria. the african rising narrative that everyone likes to talk about largely based on nigeria. they talk about the 7% growth rates. they talk about the 177 million people that live there and say, this is tremendous opportunity. but where things are really problematic, i would say, is the oil sector. when i used to cover nigeria more than a decade ago for the u.s. government, we talked about nigeria doing 4 million barrels a day by 2010. now they struggle to do 2 million barrels a day because of per ssistent problems. >> is it not just in nigeria, or is it also because of the big boom we're seeing here in north america? >> it's double trouble. first, you have problems in the oil region with oil theft. a couple hundred thousand barrels a day are stolen. then a loss of market share. 10% of imports used to come from nigeria. north american energy

revolution, it's light swede oil. there's just not the demand in the u.s., and they're having a harder time selling the product into asia. >> let's talk about the investment opportunities here. if you look at the charts over the past couple of years for the nigeria stock market, i think it was up 45% last year, 35% the year before. so all of these problems we've just been talking about and terror thrown in as well clearly hasn't hurt the stock market. my question s how much more can it run? >> good question. i think in the short term, with elections coming up, with a new central bank cover, and with valuations as high as they've always been, it's a tough one to call. medium to longer term, i think nigeria is a fantastic bet. they're underbanked. they need more cement than they can currently produce. >> which names should we look at that a u.s. investor can access? >> the u.s. investor would have to invest locally in companies and go to cement, the largest cement producer in the world will list in london shortly.

nigerian brewers can be invested. >> what's the currency risk if i bought locally in these names? >> i think with elections coming up next year, there is some risk. but it's been very stable for a few years now. certainly more so than many larger emerging companies. >> you have to spend a lot of money to win nigerian elections. >> very quickly, the terror cell up in the north has been largely localized up there. what is the risk it could come down into the more commercial areas in the south? >> i think that's the biggest risk for nigeria. the violence has been confined to the north. if you ever get a situation where one of these groups decides to go south and do something, that would be shocking for the markets. >> okay. great to have you with us. thank you very much. nigeria, certainly something to keep an eye on. >> thank you. and tomorrow's the "t," the end of our series.

>> yes, turkey. >> oh, i thought it was tunisia. >> turk men stand. pick your "t." in other news, justin bieber was arrested on suspicion of dui and drag racing. now the biebs' multimillion dollar brand is in jeopardy. julia boorstin has more. what do you make of this? >> well, mandy, i think the big question here is whether this is going to really jeopardize the big business of justin bieber. he's not just a teen heartthrob. "forbes" says he brought in about $58 million in revenue last year. that's just to himself, which means he's big business to a lot of other companies. of course, there's his music label, which is owned by universal music, also owned by the licensing company that licenses his name and picture to all those t-shirts he's on. then there's the fact he has a whole line of fragrances called things like believe and girlfriend. that's made by elizabeth arden. that's another company that may be watching this whole situation carefully. he's also written two books, his

mother has written another book about his journey. those books are published by harper collins. so all these companies are on the lookout. i think that twitter is probably watching this situation very carefully. justin bieber is the second most followed person on twitter with about 49 million followers, second only to katy perry. he has more followers even than obama. i have to have say, this hasn't hurt him on twitter just yet. he added about another 40,000 followers just yesterday. >> got to leave it there. he's doing a miley cyrus. just coming of age. julia, thank you. thank you for joining us here on "street signs." >> much more coming up on "the closing bell." we're down big. thanks for watching. [ male announcer ] this is the story

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breaking news. earnings, worries about china, the asia region more broadly, bill, are bringing down stocks today. welcome to "the closing bell." i'm kelly evans. >> i'm bill griffith. i'm in the camp, though, that says this market was just looking for a reason to sell off. yes, you can be worried about a manufacturing report out of china overnight. yes, you can worry about the economic data today. some of the earnings that have come out have not exactly impressed. but this market has been on soft sand for the last few weeks anyway, and i think that's one of the reasons we're seeing this