we're not seeing gold up 3%. not seeing t inin ining vix up . maybe a little sell-off is not a bad thing longer term. >> thank you for watching "street signs," everybody. closing bell is next and they'll continue watching the markets. welcome to "the closing bell." i'm kelly evans down here at the new york stock exchange where a major sell-off just wiped out the gains we had on a pretty strong two-day rally. >> i'm scott wapner in for bill griffeth. you have yesterday's gains wiped out. nasdaq down 3% just a short time ago. it's come a little bit off that but not really. >> art cashin saying watch the 4,050 level on the nasdaq. pandora off 13% on a day like this. the line making its way around.

the biotech index is the new vix. though today the vix is the new vix as well. >> oh, how quickly things unravel. the nasdaq is down more than 7% from its high of just a month ago. >> the russell 2,000 is as well. the dow jones industrial average by comparison is only after 2.5% from its 2014 high. that's only a reflection of how poorly it had done relative to the nasdaq until the last week or so. >> the dow is down 1.3%. american extress, disney, microsoft, jpmorgan whose earnings are coming down right in front of us here. >> some of the real rate sensitive names, rate sensitive parts of this market as that ten-year continues a jaw-dropping drop db pardon the repetition there -- is one thing that's getting people's attention. you can look at some of the big insurers, metlives, and see the pain there. people are jumping out of those

higher rate moves. >> what do people do when they feel pain? they eat and they shop. mcdonald's is the best performer in the dow. it is actually in the green today. they're eating a lot of burgers today as they are taking this pain in the market. let's get right to the sell-off. joining our closing bell exchange, heather hughes from sun america funds. mark usco. peter costa from empire executions. and our own rick santelli. peter, to you first. you're sort of on the 50-yard line of this game as it is unraveling here today. give us what the mood on the floor feels like just a day after the sharp rally? >> i think because everyone is looking at the biotech sector getting trashed, i think that's to us down here trading big board equities, it is not really as pertinent. you're talk being about the biotech sector down over 5% where the dow and s&p are down

1.66%. they led on the way up, they can lead it on the way down. i think reality is just sinking in. these companies are come being back to more i would say realistic valuations as opposed to where they were two months ago. to me this is painful if you own them but you owned them a lot lower than they are now so you really aren't in that much pain. >> jim, a lot of technical damage, not that this is all a technical story. the damage being done here. it is going to take a while to shake out these positions from today's action. is it not? >> in question about it. but fear has been marbled into this bull market's meaty gains for years, not just weeks or months. reality is the stocks with the most sizzle selling off, that's rational profit taking in my book. we're still very comfortable chasing after the choice guts, the blue chip battle sheet u.s. multi-nationals. i would view biotechnology unlike momentum stocks as a whole as basically a victim of momentum selling. the distinction there is that inside of biotechnology, we're

about to enter the golden age of biotechnology stocks. for long-term investors these kind of precipitous pull-backs create buying students that they ought to be cognizant of. >> mark, this is clearly based on what we saw yesterday now a sell the rips kind of a mark rather than buy the dips. it is beyond saying what would you buy at anything at this point, is it not? >> yeah. i thought the point that he just made was really good. when the price changes, what you have to evaluate is did the story change. a real long-term investor would say i like these things that go on sale. but it is starting to feel a little more momentum selling like the first point because the fear of rising rates leads to a fear of a rising discount rate and that discounted cash flow suddenly shrinks and the valuations go down. >> if anything this looks like a move where all of a sudden -- i want rick santelli to jump if here as well. but the move in rates, can we talk about it? what's going on?

>> well, think pretty much that the thing that we've talked about for years, the tina's turnered. they're not really playing the old wedding song anymore. if you're looking to call it asset allocation, call it whatever you want. but in the end, if today's rational profit taking, i suspect we're going to see lots more rational profit taking. here we are at a three-week low yield on a five-year -- excuse me on a five-year. we're at five-week low yields on a 10, eight-month low yields on a closing basis on the 30. look at dollar y/yen, the euro euro/yen. in the end to think that today started out with a 32,000 drop in initial jobless claims -- >> exactly, rick. exactly! >> -- goes to show you that it really wasn't about the

fundamentals going up, but it certainly isn't about the fundamentals coming down. this is once again answering that age-old question -- is the stock market where it needs to be? is all this fed activity really going to turn out well? ultimately if things don't turn out well, what's the fed's next move? that's the problem with overstaying their welcome. >> why are we asking that question on a day when the jobless claims number just came in at one of its lowest in years? why are we asking that fundamental question when the most reliable piece of information of real time, high-frequency information that we have is actually one of the bef signs we've gotten in years? >> there is still a strong correlation between weekly and initial jobless claims and the stock market right now. that's why investors are looking at the jobs data. we're slacking on wage growth, also. so if we do have an improving employment situation, then i think that could lead the markets back to record highs but certainly you're not seeing that right now. a pull-back, short, sweet,

healthy, it has been short-lived. we're still, to put this in perspective, we're still about flat on the year. that's okay. i don't think there is a cause for panic. shake out some of this momentum buying the high-flying biotech sectors, you said down 2.7% today. that's the steepest intraday decline we've had in the past two years bringing the broader markets down with it as well but it is led by the nasdaq for sure. >> john, as we wonder the markets sell off even further, we've just fallen a leg lower. the dow is down now i think 260 -- 265 points. at what point do you start to get really concerned about what you're seeing, and again such a sharp reversal? >> look at that nasdaq. >> it is not just a reversal from yesterday. it is the sharpness in which we have seen the velocity of the move. >> we just went below 4,050.

>> frankly, i like the way the markets behaved in that value stocks are outperforming significantly over growth stocks. >> you must be overdosing on dr dramamine today, i don't know. >> talking a 2%, 1% decline? >> 3% in some cases in a single day coming after -- >> you only need 33 of those. >> volatility loves a vacuum. we're in a vacuum in terms of economic reports. we did get a great jobless claims number today but not nearly enough to really provide a catalyst. we are still weeks away from a swarm of earnings guidance, not not beat consensus estimates but the guidance from multiple ceos across multiple industries. earnings will drive this market. we'll have to wait an see whether it drives them higher or lower. but this is pure momentum selling. not a great time to step in to that particular mode of selling. if ever there was one. i think right now good

discipline, diversified course is the right course of action. this market will correct on fundamentals over against the near-term momentum. >> but everybody's conditioned for this bungee cord. okay? every time it goes down we're going to have that bungee cord pop us back up. but i know that i've never met a 25% correction that didn't start out as a 2% correction. not saying this is it, but i think the fed conditioned everybody to think there's always going to be this snap-back. you know what? one of these mornings or one of these weeks or months there isn't going to be a snap-back and i don't know that we're going to be able to find that quick level where everybody gets out. this is wonderful. i've been waiting to buy it down here. >> i just want to posit something here. i spoke with nigel hart of blackrock the other day talking about japan and the potential disruption this could have on global markets. take a quick listen. >> i think japan is the final

area really. this is the great opportunity as well. japan in many respects only has one opportunity and one direction to go. and if they fail then it could be very problematic for the rest of the world. >> that is what i want to ask you about, mark. if they fail it could be problematic for the rest of the world. does that have anything to do with the moves we're seeing in the end today connected with the sell-off? >> i think the yen still, for whatever reason, kind of befuddles us, is considered a safe haven. so when you get a sell-off, people turn to treasuries and the yen. we think by the end of the year the yen will be much lower. 115. around that level. they have one choice in japan and that is to weaken their currency. they have no other choice. they have to survive. they've been surviving for hundreds of years. we actually think the opportunity set for japan is going to get quite interesting in the second half but right now when people get afraid they buy

fresh riz a treasuries and they buy yen. >> the yen getting close to its 200-day moving average. that's pointed out by one of my half-time guys, talking about the yen as a place you need to really watch, in his word getting a little scary. >> 100 is a number that you should take some notice of. if it gets towards 100 -- i think the bank of japan wants it between 100 and 115 this year. >> john buckingham, looking at the nasdaq, sitting at 4,045. the point today isn't to put this correction in the context of where we are from the highs but also to talk about the damage that's been done today. is this because we have some expirations coming up with the options market? does that have anything to do with the popgsing here or do you think there are other factors at play? >> i think you're certainly seeing the moment guys bail out of the etfs, which then enforces

selling as well. valuations have been stretched on some portions of the markets. market is designed to transfer money from the active to the patient. investors should be focused on that. pay attention to your long-term objectives. don't worry about a 2% decline. i know our view you've never seen a 25% decline that hasn't started with two. this could be it but in the long run equity prices have rewarded those who keep the faith. >> i agree. i think with the 10-year at 2.64% right now, one solution in the retail space i'm hearing investors are gravitating back towards the large value names, those dividend growers as you alluded to, scott, people are eating and shopping maybe look at consumer staples and some of the more boring names that are in your kitchen cabinets and medicine cabinets. i think you are seeing a reversion back to value. the retail guy is not willing to buy growth at any cost or any price right now. they're not willing to do that.

>> they haven't. >> listen, anybody who wants to go back 20 years, ministry of finance and the bank of japan have not had very good success, if any, trying to pick the direction of their currency. that's a weak link to hang your hat on. >> we'll leave it there. thank you guys. nasdaq is up 3.25%. >> with 45 minutes to go here, the dow is low for the day, down 262 points. s&p is not faring very much better. down 38. the nasdaq is again leading the sell-off. we'll do damage assessments you cannot afford to miss coming up. the queen of entertaining, martha stewart, is in the house. she is trying to sweeten the bottom line of her media empire. the big question is if wall street will bite. that's koling up ahead. also ahead --

>> i think this is a win. as far as i'm concerned, i think this company is very undervalued. >> billionaire investor carl icahn speaking to me about his ebay resolution. impact active investors have on shareholder value. keep it right here. ♪ [ male announcer ] when fixed income experts... ♪ ...work with equity experts... ♪ ...who work with regional experts... ♪ ...who work with portfolio management experts, that's when expertise happens. mfs. because there is no expertise without collaboration.

welcome back. 45 minutes to go to the close. so far markets have been steady sinking lower. watching key levels, including 4,050 on nasdaq. we've now bounced a little bit above that level but we're off 3% on thain decks, 7% from its year to day highs. the dow giving up 1.6%. very few names in the green. >> third day for the s&p 500 if the past five months. that's where it is heading, the s&p which is now down better than 2%. the nasdaq is on its way to its worst day since june of 2012. sheila? >> we're at the scene the crime right here. what an ugly day for the nasdaq. we've literally been going

straight down the entire day, down more than 3%. on track are for the intraday loss since november 2011. 99% of the nasdaq 100 is in the red right now. i've been on phone all day talking to traders and investors why we're seeing this sell-off. earnings season hasn't gotten into full swing yet. we've gotten positive economic news. basically everyone telling me when momentum decides to change you can get ugly. you don't need a reason for it. the sentiment is the market is simply changing. when you look at the culprits of what's dragging down the nasdaq, biotech, if you look at the idb, down nearly 20% since hitting those highs in march. we are basically in bear market territory there. momentum names. i want to point out large-cap techs. microsoft, google, amazon, facebook also doing their own damage, down 3% to 4% today, weighing down the nasdaq.

put this in perspective. the nasdaq gained 37% this last year, this year's pullback isn't that bad. we are only down 7% since hitting a high this year. about 65% of the nasdaq 00 is now officially in correction territory, down 10% since hitting a high this year. more than 22. %, 23% is in bear market territory. that's what has people nefbous. >> that's for sure. bob pisani is tracking the action on the nyse all day. >> the bears have the upper hand but there are still people around who believe the market will turn around. the bear/bull sentiment. we've outlined the bear sentiment here. basically bears argue it is hard to force the market higher without clear evidence the economy is improving but the bulls insist the economy is improving. it won't go to 3.5% gdp next

week. it is moving in that direction. why do we need to put up the momentum -- those famous names those those three dozen stocks we keep talking about them? why do we need to own them if they are overpriced if we can pay for cheaper in the overall growth of the economy. look at ibm so far this year? look at caterpillar so far this year? these are arguments people have made. this is not a bad movement for any of these major names. why not look at them as better, cheaper alternatives to getting some growth? earnings tomorrow. you know jpmorgan will be out tomorrow. we have eight ipos coming tomorrow. eight. including some very hot ones. zoe's kitchen. very hot in the restaurant space. paycom software very hot. the first casualty will come when 1 of these 8 decides to

postpone it. that is certain lay possibility for tonight. >> all lchlally financial off . >> when the market is down, ipos are not going to perform well. you see that example with ally today. >> gilead is down almost 7%. you mentioned pandora. >> twitter is off only 3% today. facebook is off about 5%. >> we do have about 40 minutes to go before we close it up here. it is a pretty ugly day. the dow has moved just slightly off of its weakest levels of the day but it is still down 260 points. the s&p is having a rough one as well, down about 39 points. >> watching that ten-year to some extent for any signs. if it moves any closer to 2.6 or below especially overnight will be an interesting tell. >> the nasdaq is reversing yesterday's gains and sharply as

it leads today's sell-off. we'll speak with wall street's top money pros about how to invest your money from here. also straight ahead, martha stewart living omnimedia surging 7% over the last year. why is wall street having a hard time loving it? martha stewart will tell us how she plans to put some spice back into her business and share price. don't go anywhere. salesperson #1: so, again, throwing in the $1,000 fuel reward card is really what makes it like two deals in one. salesperson #2: actually, getting a great car with 42 highway miles per gallon makes it like two deals in one. salesperson #1: point is there's never been a better time to buy a jetta tdi clean diesel. avo: during the first ever volkswagen tdi clean diesel event, get a great deal on a jetta tdi. it gets 42 highway miles per gallon. and get a $1,000 fuel reward card. it's like two deals in one. volkswagen has the most tdi clean diesel models of any brand.

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still down 2.58%. the nasdaq down more than 3%. s&p is having a very rough day. >> it is all about those momentum stocks, one of the hardest sectors hit sectors is the biotech sector. alexion, clovis, gilead. tech stocks, price line, netflix, facebook, amazon, google, you name them, to the downside. another bad sign for the bulls here, ally financial. it is the biggest of the year, down 4.5% in its debut. also rite aid reporting a better than expected quarterly profit due to strong pharmacy sales.

currently up 10%. then adp moving to session lows after opening higher on news the company is planning to spin off its dealer service business. moody's and standard and poor's governing counc downgraded the company on that bit of news. back over to you guys. >> for more on the spinoff and the downgrade which brings the universe of companies down by 25% that have a aaa rating. joined now by the chief financial officer of adp. >> also a member of cnbc's cfo counsel. i couldn't help but notice a little angst with the news of the downgrade. >> overall the news was well perceived. we know our investors appreciate the action and obviously in a tough day like this i think the stock has hold up relatively well. >> you are outperforming the

tape, that's for sure. why spin out this unit which has been such a part of your profitability, your core, that a aflt a rating. why pursue this move? >> we pursue this transaction really after strategic assessment of our opportunities. we are excited about our core business, human capital management and payroll business of adp. we want to focus on it. the u.s. economy has been improving and we also have been executing very well. we are pleased with those results. the spin allows us to focus on our business and i think dealer services is an underappreciated asset of adp. the thin will allow really investors to discover what's an excellent company. >> if anything, that's been appreciated. that's why you have the aaa rating. that was spun out. does it matter in this day and age? does it affect your access to capital markets? >> yes. but the rating downgrade was

anticipated by us and part of our strategic process really. our business model is intact. moody's and s&p confirmed the strength of the business model. we are slightly less diverse. in this room it triggered the downgrade to aa. >> you take issue with what moody's did? >> no, we anticipate it. we work with moody's. i think it was a decision we expected. >> the market in general. give me a thought as a guy who sits in the seat that you do, cfo of a big company. how does the world feel to you right now relatively to the stock market? >> relative to the stock market obviously we had a great past year and went trading a little side sideways. i'm focused on executing and driving. the job market has been improving and that's generally good news for us. >> the bulls say the economy is really improving. bears say no, it is not doing as well as we think. you come on the side a little

more it sounds of the bull argument. >> we have been optimistic about the u.s. economy for a quite a while and steady improvement of job market. if you look around the average of a few months has been quite impressive. >> the jobs numbers this morning, also impressive. half-an-hour to go on the trade. dow is down 260 points. it is a nasty thursday. the nasdaq is once again leading the declines today. you are looking at a heat map of the nasdaq 100. there is a stock in the green. >> i think it is one of the rails, one of the industrial names. >> it's up. it's up. woo-hoo! we're going to talk to the pros about whether they're buying. c.h. robinson, the lone green stock. the green of entertaining will become the queen of wall

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welcome back. there is a look at the market with about 28 minutes to go in the trade today.

ugly picture for the dow down nearly 250. health care and tech the scene of the crime for this sell-off of late that we've seen. our next guest, no stranger to the ups and downs of the stock market. >> her home entertainment empire includes products in media consumed by millions. >> and like most of the market, martha stewart living omnimedia was down today but things looking up for the company. third season of "martha banks" is under way, catch it on pbs stations this weekend. martha stewart is down here on the floor joining us now at post nine. she is a finalist as well in our cnbc 25. welcome. >> yeah, isn't that exciting? >> it is. we're talking about the 25 people who have had the most impact on finance and business -- >> when do we find out? >> the end of this month. >> glad you brought this this week. even with the day we're having on wall street, you should have brought us some bourbon. >> we can finally find some of that. there is a huge sell-off today.

but indeed, the market is just reflecting people's jitteriness, i guess. everybody's challenged right now, i think. and yet we see a lot of opportunity. a lot. >> do you? >> yes. >> what's interesting is you took your company public in 1999, some of the last throes before the bubble burst. a lot of people are maybe being the comparison between today and that period with all the ipos coming down the pike. you have any sense? >> i'm not an expert in this field at all, but there is a lot of ipos and a lot of ipos not exactly working out the way the principals wanted them to. but, that said, there is a lot of great companies out there with a lot of optimistic futures. and i'm looking for growth, i'm looking for expansion and i'm looking for a good retail market. >> do you think the stock

market's helping here? some people are saying, gee, shouldn't be surprised there was a sell-off. michael lewis just told everyone the stock market is rigged. >> michaelle lewis. okay. >> you know? >> it is indeed a -- it's the stock market. it goes up and it goes down. and there is buying opportunities, et cetera. >> i didn't know this about you. but in "the guardian" interview you recently gave talking about your start, you had been on wall street in the '70s. there was big sell-off then. after that moment was one reason you decided to go off on your own. is that right? >> oh, yeah. i had a very interesting career on wall street with my boss was andy moness. i learned a lot about the workings of wall street. i actually served on the board of the new york stock exchange under grasso and that was a very interesting time. so it's -- we are lucky in america. we have a very healthy

marketplace. i'm an eternal optimist. and i will continue to be. >> i'm just curious through some of the prism in which you view things in the media world that you live and have made your career in, how much it's changed, the way media is consumed, there is social media sort of driving the train, there's the netflix playing a big role, too. just how do you view what's taking place in the media landscape now and how you have to deliver your own message to people? from it is an extraordinary change from what we were used to say ten years ago, five years ago. in the magazine world, i don't see -- we all thought the digital magazine would take the place of the printed magazine by now. i mean we were all -- we all thought it has to happen. but yet people's habits are quite ingrained and the printed magazine, we have not really lowered our subscriber base. we are still at 2.1 million

subscribers for "martha stewart living" magazine. it has been very stable for us. people want the printed magazine. they want to be able to tear pages. they want to keep. and they have not adopted in the m numbers we thought to digital magazine. >> when online companies are maun launching major media projects -- >> pbs is sort of an anomaly in the the whole tv market lacplac. they are number five or six most watched station. i have a bigger viewership by three or four times thanvy i h on the hallmark channel. i would rather have those interested people watching my program. they are the kind of eyeballs you want. but that said, pbs has been groeing at 7% to 12% a year with

the help of programs like "downton abbey," of course. but they got -- i think they got 21 nominations for their food programming this year from james beard as opposed to two for the other networks that deal in food. and i got one. i got one for martha's cooking school. so i have two programs on there and i'm very, very pleased with the response to those programs. and it is the way to get people to know about all your other things. you know. these are just three of the things i'm teaching you how to bake on my new bakes program there on bps. >> i like the flat bread. >> you can have that because it is not sweet. but that breakfast cookie is really, really good. this weighs a lot but this is the cookie that you should be making for your kids, if you have any. and devouring. it takes about a week to eat one of these. >> oh, my god. >> great to see you as always. >> very great to see you, also.

thank you very much for the opportunity. here's what's happening in markets. the dow is off 242 points. the nasdaq off 126 to 4,057. it was briefly below 4,050. s&p 500 shedding 36 points today. a sea of red hit the nasdaq. take a quick look here at the heat map of the nasdaq 100. we're going to talk to a couple of pros about how long the bears will be with us here and if you should buy into these dips. also, billionaire investor carl icahn giving me the scoop on his latest dealings with ebay earlier. we'll debate the merits of the shareholders and if they really build value. that's next. tall the building is, or how ornate the halls are. it doesn't matter if there are granite statues, or big mahogany desks.

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♪ ...work with equity experts... who work with regional experts... that's when expertise happens. mfs. because there is no expertise without collaboration. welcome back. markets near their session lows. we are slightly off the lowest levels of the day but we have pretty much seen a steady sell-off across the major indexes all day here. we have just about 15 minutes to go into the close. 3% move lower on the nasdaq. 1.5% on the dow. >> activist investor carl icahn says now is the time to get cautious on the markets. here's what he said earlier on

the market. >> you are talking a barber shop and everybody's saying buying this, buy that and talking about it. that's the time to be cautious. that's not the only reason. reason to be cautious i think is a lot of the earnings are sort of artificial because the fed did a great job in saving this country but right now with these low interest rates, it is easy to make earnings. i don't think that can continue forever. >> today he also dropped his proposal to split off ebay paypal unit. here's what he had to say about the truce heard around wall street today. >> we got a couple of things that i think are very good for us and for the company. we spent, as you know, many hours john and i together and i think that john has something that you real will fuft have if you're a great ceo or good ceo which is passion for the

company. i realize that in talking to him. i think this company has tremendous potential. >> he, of course, talking about john donahoe, the ceo of ebay. icahn declared the end of the proxy fight a win-win. >> for more, a partner at zamansky and associates. us what your view? >> activist investors used to try and shake up a company to help the investors. they're just trying to shake down somebody for their own benefit. in the case of ackman, he tried to beat up on herbal life while he's short. >> carl icahn and some others are in these stocks for longer than people give them credit for in many cases. wouldn't you agree to that? in many cases they do increase shareholder value. it is not like they are the only

ones that repeep the rewards if they're in the stocks that they're battling for. >> these are short-term people. they have access to inside information. now he has a confidentiality agreement with directors. you and i don't have that so we don't have access to that information. when they've had enough, that's when they leave so i don't think they are looking out. these are billionaires looking out for themselves. >> he said i'll meet with carl the way i meet with any other investor now. what's the problem with that? >> i'm happy to meet with the ceo, also. they probably won't take my call. he's a billionaire with a huge position. we're not talking about equal access. we are talking about rich people that are able to get an advantage. >> if someone owns a big block of stock in your company, wouldn't it be normal to have a conversation with that person? why should you think that the little shareholder should be treated the same way as someone who has a big stake in the company? >> tell me -- acicahn said this

was one of the worst-run companies he's ever seen, ebay. now it is a great company, he doesn't think paypal should be spun off. why? because now he's got a guy on the board. >> i think he still thinks it should be spun off and i guess he thinks by having a guy on the board, it eventually will. >> donahoe didn't rule that out. he said we'll evaluate this going forward. if it looks like there is a case to be made, we'll pursue that. >> right. he wanted apple to shake loose $150 billion in cash. then cut a deal with him. he goes away. i think that these proxy battles, these public fights are very damaging to the stock of many of these companies. sometimes it works out well. sometimes it doesn't. look at bill ackman shaking up jcpenney, putting his own guy in, almost destroying the company. so -- >> nobody would argue with you that that was a bad move. it didn't work. but to use an example like that and suggest that there's a blanket now that you all

activist investors as a result of their actions are bad for the stocks, the companies and the stock market in general. i think is a little bit off. >> what about value act? >> sometimes it works out. sometimes it doesn't. but all the time they're looking out for themselves, not the long-term interests of your mom and pop shareholder. those are the folks that i'm talking about. so again, sometimes -- >> you think mom and pop apple shareholders were hurt by carl ica icahn's involvement in that country? >> he's looking long-term. >> you just said he's longing short term. >> i'm talking about mom and pop folks holding it for long term. he's looking to make the stop stock pop. he may get out. in ackman's case a lot of times he shorts the stock to drive it down when he's short. how does this help the average investor that's looking for serious information -- >> in the case of apple did icahn's involvement in that company and the fact he's generated the focus on financial performance, did that hurt mom and pop, the long-term investor? >> unknown. does he know what other research

and development projects they're undertaking? is giving back cash to placate carl icahn maybe killing some new development that they're trying to do? i don't know. >> if you would look at the involvement he's had in some of the companies where he's had these confidentiality agreements, the ones that you cited, i could probably rattle off five of them, you would look at successful and positive results in the stock, those who were in those positions had had benefited right alongside of him. >> on the short term. again, if you're looking at long term and they force the company to make a decision, give cash, sell a company that maybe a good company, i'm not sure that's in the long-term interest of shareholders. >> jake, we got to go. >> we're in the midst of a pretty rough day on the street. we are off the worst levels with ten minutes to go. thedown was down 265 points at its worse. it's now down 217 points. >> the nasdaq still leading today's retreat. look here at the nasdaq 100. it is flooded with red.

we'll talk to the stock pros next about buying these dips and if now is the time do it. be right back.

the new york stock exchange. the market picture right now, the dow is down more than 200

points. the s&p was down more than 2% and the nasdaq has really been once again the scene of the crime, if you will. the tech stocks and those biotechs that really have been at the epicenter of this pullback in the market that we've seen over the last week or two really showing up once again. oliver portion is with us again, from gary goldberg financial services. what do you make of what we are seeing today? >> it is tough to say whether it is just a continuation of what's been happening over the last couple of weeks which is a general down trend or whether it is more of the zigzag. this is the time when investors have to decide whether or not they're investors or traders. we're about ten points away from where we started the year. that's not a lot in terms of the s&p. it is less than 1%. general consensus is if the economy continues to improve and earnings come through over the next 12 to 18 months we'll gain another 12% which isn't a bad

return. the bottom line is that volatility is here and it is probably going to stay through the second quarter. >> you aren't telling me that now is the point with the nasdaq down about 7% or so from its highs to step in. are you? >> no. anything, we think we may be seeing the beginning out of a shift of momentum stocks. we think high-quality dividend paying stocks -- doesn't mean all tech stocks are bad. nasdaq we only think about tech stocks. ibm, intel, microsoft, a company's great rock-solid balance sheets -- >> those are the names outperforming from a nasdaq and technology standpoint, the forgotten kind of old-tech names. >> absolutely. companies like amazon or ebay that have been dalks rlings of street, investors are saying how much future revenue potential is there really in these stocks and is it worth the risk? >> account banks save the day tomorrow morning with earnings? >> we'll see. i don't think so. i think banks will come under

pressure or financials certainly in general. the question isn't just about the earnings, but about the tone of the conference calls from those companies. if cfos and ceos kind of give warnings about the rest of the year, you'll see some pressure applied on the market, especially financials. >> up next with the closing countdown back here on the floor. floor. (vo) you are a business pro. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national is ranked highest in car rental customer satisfaction by j.d. power. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. she loves a lot of it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use

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welcome back to the floor of the new york stock exchange. the dow is off its worst levels of the day. this is certainly a down day on the street. once again it is those momentum stocks and biotechs that have really been driving the action. some of these momentum names, tech and otherwise. amazon is down 4%. these stocks at least are down 4% across the board, whether it is a facebook or netflix or tesla. biotechs are where really some of the powerful selling was taking place today. gilead has been front at center at the bottom down 1. %. amgen, biogen and krechlt lgene also down today. the last 24 hours have been a crazy market. >> wild. the u.s. economy is improving but is it proving enough to actually support prices at this level. if is going to get a lot better it makes sense to sell those big momentum names an rotate into

old school names where you can get growth at a reasonable price. ibm, caterpillar, great year. microsoft had had a great year as well. that makes some sense but there are -- bears are arguing that the economy is not going to be strong enough, that we are not going to see the 3% gdp and therefore the overall markets should weaken. we haven't seen that dramatically yet. we see a little hint of it today but that's the dehe bait, what's the economy going to be. are we going to be 3% gdp or not? >> someone in the market who can actually settle the debate. terry? >> i don't know if i can settle the debate. but the chart from january until now, the market's really gone nowhere. i think bob's right on the money in terms of the fact it's been a stock-picking kind of market rather than a generalized market. it is going back to the fundamentals of picking the stocks correctly right now. the markets right now is in between a trend. i look for that trend to continue in the span of 500 or 700 points that we've been trading in. when it breaks out, that move is going to be as strong as the length of that move. >> there is an old saying, you

can go broke on low volume down here. it is not a good day. but the volume is only fair. there's no big heaven selling going on. that's indicating everybody's basically pull their bid. it is a lack of buyers rather than heavy sellers. >> that's true. a lot of technicals have stayed intact. if anything right out in nasdaq looks like the ugliest shot out. but 3,900, 3,950 on it. it is not a significant downside as i see it right now. >> eight ipos pricing. >> busiest week since '07. >> ally, which you've covered from the outset today, is down 4%. we'll look back perhaps at some of these ipos that came out and didn't perform well as that moment. >> when the market is down, ipos have a tough time. i would not be surprised to see one or more of them postponed tonight through the market

conditions. i wouldn't be surprised. >> do the ipos worry you? quickly. >> they do in the sense there is a lot of lack of value coming out. some of these companies are rushing to the market because of the environment and background rather than the quality. >> closing bell is next. welcome to "the closing bell." i'm kelly evans. what a two days it has been. gains wiped out by a sea of red across wall street. rough session for the bulls. dow jones industrial average today giving up 268 points or 1.6%. nasdaq shedding better than 3%. the s&p 500 down 2%. 39 points to 1,833. let's get straight to it with today's panel for more on what to make of the action today, john foerd, jon najarian, carol

roth and josh brown. with us for more on today's sell-off, sheila and rick santelli. >> i think today's action is indicative of a correction. i think yesterday was a huge head fake. we rallied on what was essentially bad news that the recovery is not quite what the fed had had hoped. today you're giving it all back and then some. people are pointing to the fact that the s&p is only down 3% from the high and they are hanging their hat on that. i would tell you not to do that. large caps are always the last to roll over. >> that sounds like rick santelli. rick that sounded like what you were saying last hour? >> it did. it did. as a matter of fact, let's look a little deeper. the nasdaq didn't do it, the s&p didn't do it but the dow did it. outside day with a key reversal, higher high than yesterday, lower lower than yesterday and closed below yesterday's low. pay attention to that. the other thing interesting is the nikkei today closed 1400.

>> art cashin drawing our attention to the thursday before options expirations day. vix up two points today. is that just a short -- >> it's not a full option expiration. it is just a week ly option expiration. not correcting art at all, but just pointing out to the viewers. what's been going on here, an awful lot of folks are putting their foot not so much on the brake but they are not in market. a lot of that has been spooked by what michael lewis wrote and quite frankly when you have goldman sachs exiting sigma x, goldman sachs getting off the dmm, in other words direct marketmaker here at the nyse in such close prompt imty to the release of that book, a lots of

people are saying, wow, what expects you to drop shares? for those who feel the market is rigged, they don't want to get in the market. that's one less buyer out there. >> you think that's what's driving some of this volatility, some of the correction as josh put it? >> i don't know if that's what's accounting for it today. we had these momos that are now no-mos. not sure what the right being a nin is for it but i think people are really concerned about the economy not just here but abroad. one thing i haven't heard a lot about. we got some news out of china, exports an imports, that their economy may be struggling a little bit. rick obviously mentioned japan. over all there may be more concerns there and heading into earnings season that may account for the big switch from yesterday to today. >> all this on a day when the jobless claims number dropped to 300,000. it is at a multi--year low. in other words it should have

been a day when we had some fundamental good news. instead it was totally the other way. i want to talk about what's happening in the nasdaq specifically. how many billions were wiped out today on this index? >> i haven't tallied that. still interested to get other people's take on the panel. it seemed like the nasdaq was trying to come back in the last half-hour. it was off the lows. then right in the last five minutes or so it sole off pretty sharply down firmly below 3%. that caught my eye. don't know what that means for friday. but also i would say again earnings are coming up. intel an ibm are a couple of the names coming out with data that actually gives some guidance. if they do pretty well maybe on revenue, but they don't raise for the full year, does that count as pessimism? i think all that will affect this market. >> i think people are focused on numbers. if you look at something like a

bed bath beyoand beyond and a fy dollar, versus rite aid that went to the up side. >> then you look at pandora off 13%. >> yeah. i want to comment on what jon was saying about the action here at the nasdaq. he's right, we did try and see a push higher at the close. a similar push at 2:00 p.m. it didn't really hold. fact that we can't find this confirmation of a bug, in the first 30 minutes we wiped out all the gains we worked a day and a half to get? the fact is that momentum and especially here at the nasdaq is shifting and shifting very quickly. we talk about these big stats. josh was saying people try and put. stick on a pig by trying to say the s&p is only off its 3% high.

there's widespread selling and that's what is making people nervous. >> almost two-thirds of the nasdaq -- the nasdaq 100 in correction territory. >> poor sheila is like a funeral director. she's at the nasdaq two weeks bringing out the bodies. did they give you a wheelbarrow yet? >> i know, right? >> before we go to break an everybody kills themself i'd like to point out a couple of constructive things here. one, if this is a dip or correction, you've got a rising 200-day moving average that now is just 4% below where this market closed today. that would imply a 7% pig to trough correction. not the end of the world. reason why people think it is, we haven't been anywhere near that 200-day moving average since december 2012. if you have a diversified portfolio and you're not all in nasdaq, you're fine.

the vxus, which is global stocks and united states, corporates are up. all these other things are working if the nasdaq is not. >> let me put this question to everybody here. what kind of rotation is this? we've talked a little bit about the growth to value kind of thing. i could understand all of it if we were seeing a stronger u.s. dollar and if we were seeing a higher interest rates, rick. one thing that doesn't seem to make sense this isn't really an off move because at the same time we are seeing signs there are macro concerns at play here, aren't we? >> cash is a position. it is an okay position to be in. you are seeing people who just want to get out, be happy with the profits they've got. >> rick? >> yeah. i personally think that the long end of the market has been a little concerned about the global horsepower of not only the u.s. economy but the global

economy. i do think even though china's export numbers probably don't match up right, we know that some of these numbers are circumspect. in the end we all see this slowing. the trick is how much of the equity world is priced to perfection and a little slowing could have an outsized impact on the marketplace. >> rick, we also have japan with this consumption tax that's coming online in a couple of days which i don't think has also gotten enough play here. that could be some concerns in japan as well. >> we talked a little bit about the yen and its strengthening. jon, what do you think -- fortt, i should say. >> about the yen? >> no. broadly. i want to keep batting around here. i don't feel there is a clear picture. some are saying, look, you are getting a lot of -- >> tax selling. you haven't even brought up tax selling. >> two things in particular on my mind as we look at this. one we just started to get headlines saying the retail investor is coming back into the

market paying attention. what exactly are they paying attention to as we see this happening? are they getting spooked about maybe putting that tax refund into the market as we go a couple weeks out? another thing is that period between march 14th and march 21st where we seem to see this move out of some of those momentum stocks into tech stocks, into some of those more traditional tech stocks. if the money wants to move that way but earnings and guidance don't give a lot of confidence, then where does that money go? does it rotate somewhere else? i'm curious what everybody else thinks. >> i'd say end of january we had a spike vix that spiked to 22. end of february we had a spike vix that got up to 19 or thereabouts. we haven't seen that at all here. we didn't even see the heavy volume turnover in here. i think josh is right that we have several factors, not the least of which i've been calling for for two weeks, which was we normally see a lull of investors new capital coming into the

market because they have to be taking capital out to pay taxes. two, we've got india. india's got elections going on. we've seen some pretty significant trading on the indian markets through the epi and other etfs. three, what i already mentioned about michael lewis. that's sort of a witch's brew that can actually take money away from commitment to the market. >> josh brown, we've got financial reporting tomorrow. first big dow component, j jpmorgan, tim sloan on the program. monday we get retails sales report. expectations of the report are pretty high. >> i would say that this is going to be the make or break moment for the weather tree sis. if your thesis has been it is the weather, it's the weather, it's the weather, okay, fine. because the weather has been a non-factor for the last month. as we start getting reports like retail, for example, housing

starts, et cetera, and they continue to be weak with the absence of snow and drought and polar vortexes, what else are you going to tell me? as far as the bank earnings, i don't know if i would hang my hat on that. these guys don't beat their chest anymore. they want a low profile. i don't think they'll come out and say bombastically bullish things. i think it is a good time to just chill out, re-assess what your risk is. if you have way too much pain, it means you're not investing correctly and you're not diversified. >> we'll leave it there for now. shei sheila, rick, thanks very much for joining us this hour. easy come, easy go. stocks giving back yesterday's gains. is it time to hit the panic button or is this a buying opportunity? more coverage on this sell-off when we come back. 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.

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i can't believe i said that. don't get blacked out, get the capital one venture card. earn unlimited double miles on every purchase, every day. good on any airline or hotel. what's in your wallet? take a look at the losses that we've seen today, giving up the two prior days of gains, the nasdaq shedding 129 points. it was better than 3%. it was a 2% downward move for the s&p and 1.6% off the dow as that shed 267 points. want to check in with brad mcmillan from commonwealth financial network. the firm manages $86 billion. brad, great to see you. is today pretty painful?

>> thank you, kelly. i'm sorry, what did you say? is. >> what do you make of the action today? >> it is little bit concerning but at the end of the day if the balloon is still deflating, the fed is not popping. >> you called it a balloon. does that suggest you think the prices we are trading at aren't deserved by the fundamentals? >> i think they are at the upper end of what the fundamental range warrants. certainly we're in position for maybe the mash to go sideways or to see some correction. but we're not in crazy territory yet. >> it's josh brown. can you think of at least an example of a central bank orchestrating a soft landing after being incredibly easy for the amount of time that our fed, for example, has been? can you think of an example where we didn't blow up the economy eventually? is it destined to happen or can we actually avoid the most

vicious version of a business cycle and just have a run of the mill slowed down recession recovery? >> i think the real economy is in very good shape. if the fed were to pull back without the real economy being in good shape, then yeah, we'd be set up to crash. but we're not. we have a very solid real economy and we have a growing recovery. >> this is carol roth. i want to talk to you about what the empirical evidence is for this really solid recovery and growing economy. a lot of people are still unemployed, a lot of people underemployed, a lot of people are feeling the pressure. i feel like there is a bifurcation in the consumer where there are the haves that have been doing very well and they've invested in the market and their wealth is back up, and there are a lot of people who aren't. >> there is a lot of truth to that. to say we're going in the right direction isn't to say we are where we need to be. if you look at private job creation we are right about at the levels of the mid 2000s. that's a good sign.

we aren't where we need to be but we are moving in the right direction and it looks to be beingacceleratin accelerating. >> talking about the action today, focus on the fact volume is a little bit light. what kind of trading patterns are you seeing across your desk? >> well, we primarily deal with the retail investor. retail investors by an large are cautious. they aren't that concerned about the day to day. that's the thing. this is normal volatility. it is scary but there is no reason to panic. at some point maybe but right now no. >> that's kind of what i'm wondering about. don't retail investors pay attention to earnings? so we've got a lot of tech earnings, a lot of big names people know about -- google, intel, ibm, yahoo! coming up. what is the retail investor going to be listening for in those calls that's going to tell them what to do next? >> i don't think the retail investor is going to be listening to those calls. they're going to look at what they use every day. the quarter to quarter variance

in earnings arguably is less important. it might be a weak quarter. in fact given the weather, i think that's quite possible. >> you know what else the average investor is looking at, they are hearing about all of these ipos coming to market. we've had now a whole bunch of ipos going to the downside, pricing at the end or below of the range and trading down. that's not a great sign for the retail investor and is certainly destined to cause panic amongst investment bankers as well. >> i think that's true, but you have to distinguish between a sectoral weakness or a sector that's overpriced and a sector that maybe is correcting and the market as a whole. i would argue the fact that some of these ipos are being priced back to reality is actually a good sign, a sign that there is not a mania in the market. >> brad, we'll leave it there for now. thank you. that's brad mcmillan of the commonwealth financial network. quick question. want to talk about correlation here. we've seen a breakdown over the last couple of months. usually when there is some kind of panic in the market we see those correlations increase.

in other words, everything is moving together. that's not happening even on the last couple days. we've seen kind of wacky moves. different traders are talking about the fact brazil is going one way, australia's going one way, u.s. being wiequities are e way, the bond mark another. >> this is not a systemic crisis that's causing people to sell stocks. we got to a point where nobody could eat anymore. we got completely filled up between secondaries and ipos. it was just okay, enough, we don't want anymore. that's why you are seeing ipos that can still get done but they come out at the low end of the rage. la quinta hotels, ally bank, et cetera. it's not like a global panic, sell everything at once. the fact you can still see european stocks go up on the same day japanese stocks go down is a positive. >> in the recent past when there have been these real concerns about the macro pictures falling

apart or central banks leaving the picture, is it different today? is the activity today telling us it is actually not as much of a concern, it is more about valuation than perhaps the stock market? >> i haven't seen signs really of panic. i've seen individual days like this. but again i saw those same days at the end of january, those same days at the end of february. this happens to coincide with the time we're going into this tax season. is there something out there that has caused everybody to believe that interest rates are going to jump up dramatically here? no. just the opposite. i do believe that we are still one of the safest havens for capital and thus our rates will not accelerate dramatically to the up side. we saw today trading to the lows of the year on the 10-year. i think that trend more or less continues to hold for the next six months, we are not going to be able to explode to the up

side in rates. >> quick "market flash." back out to headquarters. >> we got a couple looks here. one is at h&r block, up 8%, 9% in after-hours trade. if you look at the overall picture, h&r block has come to an agreement here to talk about filing those taxes. the biggest tax prepare ration company reached an agreement to selling its banking business to bank of internet federal bank. the deal is still subject to regulatory approvals but it will let h&r block exit oversite by the federal reserve. you can see those shares moving now. also gap is sinking in the after-hours. retailer reporting march comp sales down 7%. also reiterating guidance slightly below estimates. gap shares down 2.5% in trading in after-hours.

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today. my next guest says with everything chasing yield markets, stock markets are still the place to be. ira harris joins me now. it is great to see you. how confident do you feel in markets after today's action? >> well, kelly, first let's set this straight just to pie everything. no, i say on certain setbacks it is still a buy because money is still relatively cheap. i'm certainly not a buy at all cost guy, but relatively -- especially because there's certain things that i watch. people are still chasing yields an nothing says it more than greece. >> yes. let's talk about the fact they're borrowing on a five-year basis i think below 5%. not just greece, not just that country with 175% debt to gdp ratio and cbs spreads that look like egypt's, but also pakistan and 5-year, 10-year offerings there will tell you a lot about this global reach for yield. >> that's absolutely what's going on because everybody feels they can't be left out. they missed a big move so now

they're chasing this. and again this really comes back to what governor jeremy stein talked about. this has led to a mispricing of risk around the globe so people are chasing. you have to chase because if you don't it is career risk for a lot of fund managers. >> by the way, a lot of pension funds, a lot of these endowments who have targets of 7% to 8% that they're trying to hit so they almost are required to reach -- it is no coincidence that this pakistani debt is pricing with yields of 7% to 8%. that's what's fueling this entire thing. so do you think then that keeps a bid in the u.s. stock market even despite a day like this? >> well, it will. because again, you have to wake up in the morning and go, where am i going to put my money to work? now smarter people are letting momentum on the downside take place and they'll step in at some point, because nobody's going to be raising rates. we certainly saw that from the fomc minutes of the other day. >> you were saying as well that it is a fact the european central bank may be doing things behind the scenes to try to ease

where it can without trying to draw too much attention or creating too much conflict with nations like germany. in other words we shouldn't worry about the fed or ecb getting in the way of a continued rally? >> no. if anything, the ecb is being held to the fire, that it's enough words already and they're telling president draghi of the ecb, bring your checkbook, we've heard enough of your talk, it is time to come one a plan -- europe has a problem at the banks. europe is much more dependent upon the credit markets with the banks than the united states is because their corporate bond market is really not nearly as developed as the u.s. bond market. >> yra, riddle me this. you can understand the big picture, grand scheme of things, see the basis for equities to go higher. but then you get a day like today. what does that tell you, if anything? >> you got a day like yesterday when you saw -- it just tells you -- i think when i was listening, josh said it right. the market is tired.

it's had to absorb a lot. it is going to correct. at the end of the day, are we down 1% for the year? i think the japanese market, which is much more problematic to me, is down 17% for the year. relative to that? markets are really actually behaving pretty well. but i will say this -- i believe there is a lot of fund managers out there who have been selling volatility to try to pick up a few extra basis points who are going to be sorry. because we're going to be in a period of volatility here. >> last question. because you brought up j apan. some people are worrying the apple cart is getting upset here. should we be concerned about. some of the signals coming from that nation and are you buying into this sell-off here? especially some of the tech stocks and small caps. >> i think the key indicator in japan are the japanese banks and they have way underperformed this market. but if japan is going to get healthy and really undertake in

the global recovery, they're sitting on a lot of cash. those stocks ought to be performing better and that is really raising a red flag to me. >> yeah. so then that kind of brings us back to square one. you see that red flag. a little bit wary about what that could mean but you still say bias is higher. do you buy into the weakness here? >> this is not enough weakness for me. get me to an 8% to 10% correction and that will be serious weakness. i want to see what the japanese are going to do here. because they have so much online here. they can't go back and pull a 1997 again. they have to -- they're on the hook here for a lot. i'm expecting something big out of japan. they did nothing the other night which they got the response that the market said, hey, we need more from you. that's going to be very important. >> yra harris, great thoughts. appreciate your time. >> thanks, kelly. coming up, activist investor carl icahn settling his long and nasty proxy fight with ebay. what did he really accomplish

and are activists really in it for long-term shareholders or themselves? also, tax the rich. a shocking percentage of ultra high net worth investors don't really mind paying high tax rates. closing details later on "the closing bell." how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

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take a look at shares of ebay. down 3.25% today as the company calls a truce with activist investor carl icahn. of course it was a rough day in the market. that's a compromise ceo john donahoe says signifies icahn's long-term place as a shareholder in the company. i talked with john levin on his views with icahn and activist investors. he had pretty interesting things to say. >> what i strongly object to is one company after another being attacked by one or two or three or group of hedge funds. so what is the balance middle course? so my idea which is not an end all would be -- look. you ought to be only able to attack two companies a year. >> really. >> you can't attack ten companies a year. >> kind of fascinating.

panel thoughts here. two companies a year. should there be some sort of controls like that or is that completely interfering with free market and activity? >> thank goodness there are people who are willing to put their reputation on the line to do some of the good that these activist investors do. so no, there should be no limit to how many times they can go after anybody. >> anybody feel differently? >> i really wish that these activists were taking a longer term view. it is funny with icahn on this ebay scenario, i feel like he flipped. usually i don't like his maneuver because it is a share buyback or some sort of financial maneuvering. here is something where i think there is a long-term value, allowing some invest. to go in where they can compete against square and other mobile payments. this seems to derive long-term value but the once that are short-term in nature -- >> he wasn't going to get it. didn't seem like he had

shareholder support. ebay and goldman did the job it kind of rally the base to keep that from happening. at least a partial spinoff probably would make sense with payp paypal. if you try to limit vest einves don't you think they get together and say, what do you think? >> this is not a serious proposal but more of a way to limit activist behavior. what if you had a situation where you limit hedge hundred funds to the company so you can't get a bunch of people piling on? do you think the pendulum has swung too far? >> there are already existing statutes against huj funds colluding together. when they form a group they have to be up front and admit they are. that's one. two, i think it is a non-issue.

if you look at how these ends, it is with a whimper, not a bang, not with somebody getting fired, not with a spinoff. i think it is really important -- >> that's what the companies are saying for reasons why this needs to be limited. saying this is all heat, all noise, it is not substance, look at the way a couple of these -- >> the market is smart. the market will sort that out. number two, the other side of the coin is if you're not an activist hedge fund manager, look at who owns most of these stocks now. passive investment firms. van guard. ishares. they're not going to do a thing. they'll let executives pay each other what they want. >> something like 35% of the s&p 500 is owned by passive funds. to some extent who is going to be out there making sure they aren't just indexing for the sake of indexing and actually improving performance? >> you don't have to agree with every single one of their tactics but at the end of the day somebody has to hold people

accountable. large pension funds, large mutual funds, they're not going to do it. >> i would much rather they hold them accountable than the government hold them accountable or put in place these rules that have unintended consequences. that's what always happens. it creates another problem and that's never a way to solve a plaem. >> i agree with josh about the rules an not colluding, but history has been written that it kind of happens anyway. i think the ceos just need to take a martial arts class to learn how to fight some of these guys off. is there more pain ahead? we'll talk about that next? don't miss our excleesive interview with conocophillips chairman and ceo ryan lance. how he thinks the crisis in ukraine and escalating tensions between the u.s. and russia will affect energy prices. we'll be right back. ♪ aflac, aflac, aflac! ♪ [ both sigh ] ♪ ugh! ♪

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from td ameritrade. welcome back. a short while ago i spoke to ryan lance, chairman and ceo of oil giant conocophillips to get his take on market gyrations, oil, the economy and the impact of russian moves in the ukraine. >> ryan lance, the chairman and ceo of conocophillips, one of the largest independent energy and exploration production companies in the world. welcome. it is great to have you here. >> thank you, kelly. pleasure to be here. thank you for the invitation. >> you just had an opportunity to update investors on pretty much your first full year at the helm of this company. what is the message that you have here? what is the future for

conocophillips? >> the future is really bright for our company. we talked about our plans being on track which we think is a unique offering in the marketplace today. we talk about 3% to 5% production growth. we talk about 3% to 5% margin growth that delivers 6% to 10% cash growth for our investors nap combin. that combined with a compelling dividend that's yielding over 4%, we talk about delivering double-digit shareholder return to our shareholders annually. >> 57% is liquids, 25% natural gas. today vladimir putin talk to europe about potentially cutting off supplies to ukraine or to a lot of other european countries has got to have massive reverberations across the country. what happens here? what does it mean for your business? >> i think it does have implications for the industry. what it really highlights is the

revolution that's occurring here in north america around unconventionals and shale. both the gas side and the oil side. we need to export some of our product. we need to provide that product down to the world scale. as libya and nigeria and other places in the world have dropped their production, sanctions in iran, the supply that's filled that has been north america. it has been the unconventional revolution that's occurred here in north america that's added to that supply that's kept prices pretty stable. as the egeopolitical influences things like what mr. putin is doin doing. >> what needs to be done? is the hurdle in washington? it looks like they're starting to be some movement on that front. is the hurdle the cost of these projects? no one wants them in their backya backyard. talking the cost of billions and billions of dollars. then the cost of shipping them across the ocean.

>> it takes time to build these liquefaction to bill these facilities, put it on ships and transport it. the department of energy has approved a number of projects so far. now some of those approvals will rest with the federal energy regulatory commission. that's on the gas side. the interesting thing is we could start exporting oil tomorrow. that is something that could occur fairly quickly. we're seeing the impact of this light oil revolution in north ameri america. we could have the impacting the global supply of crude. >> some petrochemical companies think it we export more products it will raise costs for them and consumers in the u.s. >> they are concerns. i think we are starting to address those. on the gas side of the business we see 100-year supply of gas right now in the united states and in north america.

when the combine u.s. with canadian production that's available, we have a tremendous opportunity to not only feed the global world but keep prices stable here at home. that's the advantage we can bring to the market today. >> you don't believe them like some geologists are saying which is they think this sort of shale technology is really going to amount to a production boom for 20, 30 or 50 years as opposed to 100-year horizons -- >> i think on the gas side it is a long time. our experience at our company is we are applying new technology, new completion practices, we're getting more sustainable in our production. our footprint, greenhouse gas impact is getting lower. yet we are still finding more resources and opportunity to add to the product mix in the united states. i say there is a lot of supply out there. that's not going to be a problem. >> is your message to investors here who have some concern about the wide range of projects you have around the world, you're in some pretty far-flung locations.

certainly there is a method to the madness to have a lot of things going that will pay off down the road. >> if you look at our portfolio, there's. a transformation over the last four years. assets are coming back home and re-investing here in the u.s. between the u.s., canada and alaska, that you mentioned. we see the opportunity for high-value returns. that's driving our growth of 3% to 5%. growing 1.5 million barrels a day so we have a clear line of sight to grow our company to 1.8, 1.9 million barrels a day. most of that is coming from north america. the en unconventional, the opportunities that we see here at home. >> fascinating. wide range of issues to discuss

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welcome back. pretty volatile week for markets

here. what should investors be watching for tomorrow? joining me now along with the panel, director at o'neal securities. kenny, i know we kept you after hours here but what an "hours" it has been. what happens now? >> listen, i think we see further weakness again tomorrow. right? we broke the 50-day on the s&p. we are certainly below the 50-day on the nasdaq. momentum seems to be building a little bit on the sell side. jpmorgan tomorrow, the first dow stock and bank earnings are expected to be weak. think what you'll get, probably a sale overnight in asian and european markets as the market tries to stabilize and get some stability probable down around 1,800, 2,500 level on the s&p. >> a lot of people are going to be looking, jon fortt, to see what point the sell-off stops, what point the valuation support kicks in. in a lot of caveses there isn't a lot of valuation support and

we won't get that until the earnings season in a couple of weeks. >> we are just days away from getting so much data on the tech sector. if you're at home as an investor, why would you home as investor, why would you do anything at this point? figure out what your strategy should be based on what the leaders of these companies say they expect and then you'll have a better idea what your philosophy should be. >> how many of these companies newly listed and not just in the text base but as an example have to go through that volatility around that first quarter report of earnings. whether it's facebook or twitter. it's taken them a couple quarters to shake out and find a trading pattern to some extent. >> in particular the markets have only made a mild correction. that doesn't mean i'm buying them because they haven't been able to punish the markets. i'm saying that doesn't

represent a value to me. i'm looking at a twitter down from 70 to 40. i'm looking at situations like that. i would say if you're somebody who has at home been buying the dips and selling the rips which is what we have seen, i think you have done very well. this has been a fantastic year for trading. if you're somebody wants to buy and hold, and like bill miller said, hold for six months after he throws that dart, there's not a lot of us that have the stomachs for the ups and downs. >> if you're a day trader, that's true. if you're long term, days like this is really what you're licking your chops. you want the opportunity for prices to come in and values to be created. >> carol? >> i feel there are two camps of investors, those who think the economy is improving and those that have the concern. i think where one group dances forward and it switches. i kind of feel like we're going

to see that at least for the next couple of weeks until we get to the heart of earning season. i agree with john. i'm a long-term investor and i say sit and wait. >> kenny, thank you. >> thanks. >> appreciate it. this one could be telling. it's up next. panel's final thoughts and what to watch for next. we'll be right back. ...who work with regional experts... ♪ ...who work with portfolio management experts, that's when expertise happens. mfs. because there is no expertise without collaboration. it's like hugging your kid, but with money. it's something that you could get from somewhere. it makes you indestructible, like a superhero. i'd love to be a superhero. it's so you can come back to life...i think.

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okay. curious about this one. let's get to the stories burning up our website. how much interest there was in what's happening in the market. what is driving eyeballs today? >> and again, the market, kelly. they piled in even more than the day before which was more than the day before. >> more than the average. >> it's just crazy. toward the close, we saw our traffic start zooming up. usually you start seeing it level off. it's crazy. i went in and looked at the quotes. all the momentum stocks. people looking them up. >> what were the top names? >> facebook when i checked. then we had tesla. google. ibb which represents the bioteches.

a lot of heavy traffic there, too. the market was our top one. over 100,000 people looked into that story. right now 95,000 we have a piece written up by our friends at future is now. mark fouber was the guest today. the publisher of the gloom, doom report. he was there again and he says expect a correction in 2014 rand he said it will be worse than the one in 1987. >> alan, is that the same correction from 2013 he predicted or the 2010 one? >> it's always doom. we had bill miller yesterday on your show saying no, no, everything is going up. >> right. >> so i don't know. sooner or later, still people like to click on the dr. bodoom headlines. >> people are still reading the stories that's reflective of psycholo psychology. >> you see it's going forward and back. people have been like -- we have

talked about this. that back and forth see sawing effect. my third one today. a little bit lighter. robert frank wrote a study that says super rich people really don't mind high taxes. go figure. where people with income over 100 grand, one in ten, they kind of hate it. but over $30 million they don't mind. go figure. >> so for people who are $30 million or above are more inclined to pay higher taxes. >> four out of ten wouldn't mind it. >> thank you. >> thank you, kelly. >> wasn't it kristen bell who was talking about this as well saying i would happily pay higher taxes. i should be taxed for more. >> after she took the money from kick starter to do her movie. i mean, it was the most hypocritical statement out there. >> how is it? >> because she said rich people have the ability to fund things. well she had the ability to fund her movie and she let fans fund

her movie. >> if i can be her for a week, i'll pay 90% taxes. >> that's how we can solve our tax issue in this country. >> i don't think i would mind so much either. >> paying higher taxes. >> being kristen bell. >> i see. so going back to what alan was saying, gloom, doom, you're being serious that we hear this narrative over and over again that the market is about to collapse, it's about to crash. isn't the real issue people aren't invested? >> how are you going to sell a newslett newsletter. read any kind of text you can get your hands on. we react much more violently to fear than greed. this is why stocks go up and come down the fireman's pole when time to come down. fear is highly motivated.

much more so than greed. you're going to get these episodes in the market. they're unavoidable. we have an average going back to world war ii. live with it. it doesn't mean the world comes to an end. >> can you be specific? do you see opportunity and if so, where? >> everywhere. first of all, europe. you are literally looking at a market cap of the united states and europe is in 2011 right now going into 2012. they haven't started stimulus yet. you don't have to be 100% s&p 500. >> dr. jay, what about you? >> the ones you want to look at and the ones i would tell folks to focus on are the ones that made a 30%, 40% correction. it's not because i like to catch the falling knife. but that's where i'm finding value. i'm not going to find value in a stock that has just popped $15

to the up side. all the people that chased into all the bioteches thinks they must have the next cure for cancer, i think those are the ones that have cursed themselves in this correction. >> and a lot of people cursing their portfolios today. "fast money" begins right now. melissa lee, over to you. >> thanks. breaking news. a major selloff that has investors scratching their heads as to why we're here at the nasdaq at the center of it all. the dow and the s&p 500 also taking a major beating. the momentum names getting hit the hardest. stocks like facebook, tesla, linked in and amazon. take a look at this. sinking deep into the red. we are covering everybody angle tonight, whether or not you should buy and when plus the latest from dennis garman after the comment he made