see you tomorrow. welcome to "the closing bell," everybody. i'm bill griffith. >> i'm sarah eisen. >> welcome. >> thank you, bill. oil is down and just seems to be the way they're liking the trade today. >> classic turnaround tuesday. down yesterday, it's up today and vice versa. >> bill, they might not like this. u.s. banks, do they have too much exposure to american energy producers slammed by the plunging oil prices? some are now worrying that if those firms default on the loans it could be 2009 all over again. we'll take a closer look at that angle. >> what would that do to the yen? >> that is the key question. 1129.23, marching higher. thank you, bill. >> you're welcome. what's the real story on retail? this is confusing so far. there seems to be no clear picture yet for this holiday

season of shopping. we'll try to clear things up with that man. we'll speak exclusively with hsn president bill brand. what a perfect name for the marketing executive at hsn. new official name of what we have known for years as home shopping network. we'll find out what the sales were like and the plans for the future. speaking of shopping, we are calling it retail fatigue and you may be having it. if every time you open the e-mail and retailers pitching the deals for free shipping or big discounts, is it just too much at this point? making people tune out. i don't know. i like a good discount. >> i haven't started shopping yet. >> me neither. i like the brick and mortar old school. not online. totally against americans. >> i'm all about online shopp g shopping. >> you are an efficient guy. >> guys for the most part. we are hunters. we know what we're after. we go out. we get it. and then we bring it home.

>> that applies to shopping, as well. i like the experience. >> we'll talk about that. >> markets. >> we'll find out about that experience. we are experiencing a rally. the dow up 115 points after that decline yesterday. that puts us in record territory right now, by the way. 17,828 is the old closing high so we're comfortably above that. not so for the s&p. a gain of 14 plus points. old closing high is 2072. nasdaq which was really hit hard yesterday, up 32 points today at 4759. we haven't yetted gained back what we lost yesterday. talk about it all on the closing bell exchange today. joining us, rob morgan of vdb associates, john canelli, tom liden, kate warren and we have our own rick santelli. rick, i'll start with you. this issue of what the oil market and decline has done to the debt market, are you seeing

any signs of strain in the debt market, the fear that maybe there might be defaults based on these junk bonds or issued to help finance some of the drilling up in the bakken area? >> on a scale of 1 to 10, i think we are at a 2. it's an interesting topic. you can clearly see if you look at things like the barclays junk bond index, that over the last month junk bonds widened out to treasuries by 30 basis points and still well contained, under 500 basis points. looking back at, you know, how they were well over 1,200 or 1,300 basis points around the credit crisis, that's perspective. no matter how you slice it, it's a good thing. is it going to come at a cost? absolutely. >> you mean oil prices? >> tearing the fabric. lower oil prices, i think from the mideast perspective, that's the conversation down here.

what's saudi arabia going to do? i don't know that they can compete against fracking and its decentralized structure. i think it's old-school kind of oil services and, of course, the exploration and pumping like the middle east. that will have the roughest adjustment to this. ultimately michelle did a great job yesterday talking about not how much it costs but the budgets need to make everybody happy and that's the equation we seem to be more interested down here in chicago. >> right. >> kate, you are looking at the relationship between oil and the stock market. what's interesting today and we haven't seen in a while is that energy shares here are in the lead and the price of oil is falling. >> yes. that disconnect is surprising and says investors are first of all seeing opportunities in the stronger oil companies. probably on the expectation that the production cutbacks by somebody else. and i think the second thing is that even with lower oil prices,

many of those stocks are still the companies are still making a lot of money. so more broadly, though, of course, other companies that do better when oil prices drop with stronger demand and lower costs. >> we are showing the names. would you buy them at edward jones right now? >> we have a hold on exxon. we have a buy on chevron so the answer is yes. we would be buying those. we'd be buying and basically a series of oil companies we think are attractive. prices could go lower but those are the companies that have managed through much lower oil prices in the past and do fine over time even if short term their profits take a hit. >> obviously, rob, oil is a key theme in the market today and we can't discount the economic data which is good and looking at today's construction spending numbers. latest in the series of better numbers out of the u.s. as we march on to friday jobs day. >> yeah. and, sarah, looking at the

vehicle sales numbers that came out for november, those were the best november numbers since 2003. so, so that basically is telling me that there is a strong consumer out there, absolutely. >> and does that continue -- how much of the lower gasoline prices, rob, do you think will contribute? are we oversimplifying to expect that lower gasoline will automatically mean a stronger consumer in the future? >> no, bill. i think there's definitely a correlation there. lower gas prices, like removing a tax of consumers so yeah. there's definitely a correlation some type there. >> the question, john, how much is already baked into the u.s. equity market with the dow marching to record highs. good news on the consumer, the fact that it's not just you, bill. two influential fed speakers, fisher and dudley, also said, oil prices at these levels should be helpful for gdp.

>> yeah. they'll add just by themselves. the drop in oil prices is going to add about between half and 1%. it's a plus for the consumer. but for the producers it's probably a minus and for net exports it is a plus and working it all out between .5% and 1% and puts pressure on the fed. that would -- that will concern the fed. i think just in perspective in oil prices, in 2010, before arab spring, oil averaged $80 a barrel. since then 95. this year, averaged $97. oil priced this year averaged higher than it has in four or five years. question is where it's going and no question to hurt the producers. i think it's less of a help for the consumer thans it's been in the past but a bigger hurt for the producers, certainly. >> yeah. that average price for the year front loaded. we have very different story

fourth quarter. tom, what about the stock market? typically strong in december. but are we beholden to this price of oil here as long as it continues to trend lower? does that mean higher prices and vice versa? >> well, front loading i think is the term, bill, because we're seeing as far as holiday shopping, a lot more people are spending money because i think of the benefits of lower oil prices for sure. one thing in particular, retail sales online gone up tremendously. maes itted 1% from 13% to 14%. early indication says 17%. there's a power shares nasdaq index etfs both very heavily in those areas. >> yeah. rob, you mentioned those auto sales. let's talk about that. we have breaking news now. we put it together with phil

lebeau. phil? >> they did do well, bill. second best month of the year. 17.2 million the sales pace according to auto data crunching the numbers. not 17.45 of july but, look, for november it was a blockbuster month. the strongest november since at least 2003 and if you go back to 2001, then you are looking at incredibly strong numbers. jeep cherokee, up 67%. jeep on fire last month and chrysler and doing better. honda crv speaks to the fact they want crossovers right now and chevy speaks to the fact of pickups in demand if you have them to sell. ford is transitioning with the f-series. a smaller supply available and therefore ford sales were slightly negative last month but, again, looking at the sales pace, that's what you want to focus on, 17.2 the pace for the month of november. much better than expecting and

sets up a december where we could end the year with an annual sales pace 16.6 or 16.65 million. much higher than people were expecting. >> continues to be a bright spot. >> i can see you in a ram truck. >> i drove a jeep. that was a long time ago. i'm on trend. >> i thought so. kate, can you like auto stocks and automakers at the same time? what do you folks think of them? >> certainly you can because if oil prices are lower, that means that consumers tend to be buying larger vehicles and those are the more profitable vehicles and that's what we saw in november. consumers stepped up. i would look more broadly than just auto stocks and other places consumers spending money. stretch budgets are getting the benefit of low gasoline prices and people are shopping more as we heard and also says they spend more time in recreation like disney. in other words. so i would be looking broadly

than just the auto stocks. >> john, i -- >> bill -- >> go ahead. >> rick? >> this is rick. credit card rates are much higher than the teaser rates. phil talked earlier about low teaser rates. people can't get credit everywhere. they have a tough time getting credit for houses and credit card rates are going up and makes perfect sense that the area of availability is autos and somebody needs to do a study as to the correlation of lack of interest in housing and the extreme interest in the teaser rates of cars and speaks volumes of fed and credit not going to all areas equally. >> 0% financing helped those numbers, sales numbers in november, as well. >> something to ask hsn president and the credit quality of the consumers, as well. >> thank you for joining us with your thoughts on today's market action. appreciate it very much. heading to the close here, rally day on wall street. the dow up 114 points right now

putting us in record territory on the industrial average. we are four points below the record closing high on the s&p. up next, a wall street pro says ibm a poster child for companies that use stock buybacks to hide what's deteriorating fundamentals. dave nelson backs up that claim next. it's widely viewed as one of the coolest technology companies around. oculus' ceo speaks to us exclusively of what's next for the hot trend of virtual reality. that's coming up. stay with us. take a closer look at your fidelity green line and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for.

tap into the full power of your fidelity green line. call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira. alright, so this tylenol arthritis lasts 8 hours, but aleve can last 12 hours... and aleve is proven to work better on pain than tylenol arthritis. so why am i still thinking about this? how are you? aleve, proven better on pain.

it's sleep train'ser: interest free for 3 event!leep! get three years interest-free financing on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. plus, get free delivery, and sleep train's 100-day low price guarantee. you'll never find an interest rate lower than sleep train's interest free for 3 event, on now! ...guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪

ral lay day on wall street. higher ek tigers. right now the dow's in record territory up 114 points at 17,891. the s&p 5 points below the record high and still a healthy gain of 14 points. >> dom chu is tracking the movers for us. dom? >> leave it to you to bring up the dollar in that conversation, right? let's start autowith biogen

idec. positive trial results of the experimental alzheimer's drugs and shares up by about 7% on the day's trade. priceline lower after fbr analysts downgrade it from an outperform rating citing slowing earnings and narrowing profit margins. trading down. fed-ex gaining ground after analysts added it to the u.s. 1 list pointing to the benefits of lower fuel costs and shares up by 1.3% and on the, well, call it a shipping side of people that is, royal caribbean moving higher, a was el. the operator stock replaces in the s&p 500 after the close of business on thursday. shares up by 6%. we'll end with eli lilly rising on news to license an experimental microneedle patch system and try to treat severe

osteoporosis. up on the day's trade. back to you. >> dom, thanks very much. let's talk about stock buybacks, clearly been a trend on wall street the last couple of years, many major corporations, apple has done it and among others. >> and ibm. most recently taking on $5 billion more in buyback spending to repurchase stock. that number surpassing the net income through the first three quarters. david nelson from bellpoint management asset said they're doing it to hide the deterior e deteriorating fundamentals and joins us with daryl rotman. david, let's start with the bear case. investors seem to agree with the fact that fundamentals are deteriorating for ibm. when's going on? >> i don't think it's a secret. obviously, just looking at a chart, see that investors are starting do get.

but when you big down deeper and look at the metrics of the company, look at the fundamentals, income statement and the balance sheet, you see that revenue, cash flow and more importantly, cash on the balance sheet, is declining dramatically while debt continues to climb. as a matter of fact, cash is down almost 40% since 2007 and using the money to buy back stock. you said it about 13 billion in 9 months. averaging 13 billion over the last several years. think about it. they bought almost 65 billion and they're doing this to goose the bottom line. i get that. they have run out of steam. this year earnings down year over year for the first time in a long time. >> why do you like the stock, jason? >> well, what happened yesterday? i mean, yesterday, ibm signed a multi-year, multi. billion dollar cloud services deal with a huge bank in europe. and weeks before that another cloud deal with lufthansa. i don't think ibm is dead yet

and far from dead. i mean, ibm, first of all, here's an interesting statistic. i think the share buybacks negative kind of perception way overstated. the fact is over the past three years, ibm used 84% of their available net income to buy back shares and that number over ten years was 93%. so they have scaled down the share buybacks. now, yes, they are in a huge period of transition as they get into more cloud business but the ceo is intent on putting the money where her mouth is and made significant investments in the cloud and will come back strong next year. >> i'll agree. they're not dead yet and do this for a while longer. they're using the right buzzwords. transition to the cloud. analytics. in the end, bill, ceos understand investment in r&d cap-x has a long-term pay back and may not be around to reap

the benefits of the reward and what they do is goose the earnings right now, goose eps buying back stock and get a bigger piece of the stock compensation pie. >> i understand the turnaround argument. it takes a listening time to turn around a 103-year-old company with more than 140,000 employees but investors are not seeing the kind of revenue growth they need. how long are you willing to give ibm to do it? >> listen. i think, you know, the market prices in the future as much as humanly possible so i think the more huge cloud deals that ibm gets, because this is the bottom line. we live in an objective world. the market needs to see them in the future. that locks like more cloud deals because that's really the future so the more deals ibm gets like this, i think the higher the stock price will go. the valuation on ibm is very, very attractive to value

investors looking for low pes. that's half of the s&p. >> david, this sounds shallow on my part but, you know, right now ibm is the dog of the dow. worst performing component of the dow. you know where i'm going with this. typically after a company has been the worst performer in the dow jones industrial average one year, the next year it's the best performer. this happens continually. possible to happen here? >> they have to make changes and do something. if they can't grow it organ cli, buy it. >> what about an hp and split up? >> maybe that's an answer. maybe that's an answer for them. they had great people there but i think probably what they really need to do is go out and start to buy the growth. but these buybacks, just wasting their own capital and not working and the market is telling them it's not working. >> jason, last word? >> see, you know, they're not wasting their own capital because they have an increasing return on equity number which is the famous indicator that warren

buffett loves the most, the ceo using their money intelligently right now and making investments for the future and why it's a great long-term play right now. >> all right. some great water cooler talk on big blue, ibm. thank you both for joining us. appreciate it. >> down 13.4% so far the year. worst performer of the dow. >> yes, it is. less than 40 minutes to go before the closing bell. 38 minutes to go looking at a rally of more than 100 points and the dow off the session high and still record territory for closing price. we are a little more than 4 points now away from a closing record for the s&p 500. >> that's correct. market off double digits this year. hedge funds as a whole are shutting down at their fastest pace since the financial crisis of a few years ago. we try to find out why coming up next here. also ahead, morgan brennan with a tough assignment at wine.com distribution hub in

berkeley, california. what it takes to pull together a shipment from the time you place an order online to when it's put on a fed-ex truck and delivered to your home. people with type 2 diabetes come from all walks of life. if you have high blood sugar, ask your doctor about farxiga. it's a different kind of medicine that works by removing some sugar from your body. along with diet and exercise, farxiga helps lower

blood sugar in adults with type 2 diabetes. with one pill a day, farxiga helps lower your a1c. and, although it's not a weight-loss or blood-pressure drug, farxiga may help you lose weight and may even lower blood pressure when used with certain diabetes medicines. do not take if allergic to farxiga or its ingredients. symptoms of a serious allergic reaction include rash, swelling or difficulty breathing or swallowing. if you have any of these symptoms, stop taking farxiga and seek medical help right away. do not take farxiga if you have severe kidney problems, are on dialysis, or have bladder cancer. tell your doctor right away if you have blood or red color in your urine or pain while you urinate. farxiga can cause serious side effects, including dehydration, genital yeast infections in women and men, low blood sugar,kidney problems, and increased bad cholesterol. common side effects include urinary tract infections, changes in urination, and runny nose. ♪do the walk of life ♪yeah, you do the walk of life

need to lower your blood sugar? ask your doctor about farxiga and visit our website to learn how you may be able to get every month free. i think it's safe to say it's pretty good year for the u.s. stock market. not, though, for many hedge funds. according to industry research firm over 450 hedge funds shut down just the first half of this

year. already. and if this pace continues, we could see nearly 1,000 close by the end of the year. of course, that would be the most since the financial crisis of 2009. >> our own lawrence delabang joins us with todd zipperman who advises in the hedge fund space. lawrence, tell us the story of the year, why so many funds to shut down? >> hundreds have shut down this year and on pace to see the most shutdowns since the end of the financial crisis when virtually everyone was rocked. when's difference this time is that you have to put in context. there are 10,000 hedge funds out there and more have actually launched so far this year than have shut. industry assets overall for the hedge fund industry at a record high. 2.8 trillion. so while 1,000 hedge funds -- >> going to the bigger guys? >> exactly. it shows a consolidation of power by the most powerful

managers, those managing 5 billion or more, control two thirds of the assets in the industry. >> is that what your research found here and seeing the weaker hands falling by the wayside. >> i wouldn't put it that way. i think it's a tough environment. there's a lot more focus on infrastructure including compliance and two guys in a terminal are over. they're doing a lot more due diligence and of course the scc looking over everybody's shoulder an they have to register under dodd-frank sigh that what this is about, as well? regulation. have more stringent oversight caused some of this at the same time by the government? >> that's certainly been the contention of smaller hedge fund managers, some in fact industry would say that's exaggerated. if you put up fantastic numbers you draw capital. i think a misconception of the industry is hearing firms

liquidating it is not about a blow-up or a huge bet that was placed and overnightment it's a slow bleed. >> we should say, todd, the performance has been lousy, as well. there are reasons for this. but 2% performance i think is what i read in 2014 the worst since in 2011. is this going to eliminate the 2 and 20 and more pressure on that model? >> i think performance is only factor. i think that statement is right that if you have performance you'll draw assets but performance alone will not draw institutional assets and regulation plays a part in it. you're seeing more disclosure by the hedge fund firms. institutional firms are doing due diligence and buying into the right firms and includes the operations work and, yes, also a pressure on fees and i think the days of 2 and 20 might be over. >> we talked earlier, well, several times in the last several weeks here, lawrence, about how actively managed funds are lagging behind the index

funds out there. it's a tough time right now because of the lack of volatility for actively managed funds out there. does that factor into this, as well? just the market environment is tough out there. >> right. i think it depends on the sophistication of the investor. it is easy to say the s&p up 11. hedge funds are up too. let's get out. when you want them is when things start to go south and so i think most smart investors see the value even when the lineup against the index isn't great. >> i know a lot of funds shutting the doors were macro funds and that was a common theme in 2014 but now all of a sudden toward the end of the year we get a spurt of currency volatility and rates volatility. does that mean that the trend reverses in 2015 if they continue? >> that could be accurate. macro funds with commodities funds with a similar strategy have seen outflows so far this year but it's right before they

rebounded in performance and one of the topper forming hedge fund strategies in 2014 in a third quarter reversal is commodity focused funds. >> yeah. an element to that -- i'm sorry. i think an element you can't forget is the growth of liquid alts phase. registering under the investment company act to sell to retail and what happens there, very tough for small managers to compete because boards of director vs a harder time selecting the managers because they're small and the rise to liquid alts i think is also hurting smaller firms. >> tough to justify sometimes. >> that's exactly right. >> thank you both. you can see lawrence's story on cnbc.com, as well. thank you both for joining us. appreciate it. >> thank you. half an hour before the bell, let's check on the markets. because still seeing green arrows across the board. the dow up 101. s&p up about 13. and the nasdaq up a little more than half a percent. up next, retailers hitting consumers e-mail boxes harder

than ever with promotion after promotion and sarah loves that. but are they giving -- >> who doesn't love a deal? >> are they giving potential discuss merles retail fatigue? two specialists, we have a neuro marketer, whatever that is, a psychotherapist coming up and will weigh in. plus, let us know if you are feeling retail fatigue right now. we're going to open the polls right now. click on cnbc.com/vote and we'll let you cast your vote and see what you say about that coming up. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online.

on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm.

slowly losing some altitude here. the dow up 100. what were we up? 117 i think at the high. >> 118 perhaps. this is still over the edge for a record high close. >> for the dow. s&p different story. 6 points below the record high for that. of course, the nasdaq far away but gaining some of what it lost

yesterday now at 4756. occurs to me some friends in the last few days trying to e-mail me and they got a bounce back message saying the e-mail inbox was full and i think the inboxes looked like this in the last few days getting so many e-mail from retailers inundated be offers of countless retailers promising the best deal yet and reminding us that it's your last chance until, of course, you get another e-mail telling you the offer was extended. calling it retail fatigue. >> go to cnbc.com/vote and tell us if you've got it yet. here now to tell us how consumers may be reacting to the onslaught of offers, behavioral psychotherapist and author of "brainfluence." boy, bill, we are going deep on this. >> this is heavy. >> doctor, first to you.

is there such a thing of retail fatigue, the inundation of the offers? >> there is. the brain is overstimulated and in response to it, the brain just shuts down and just keeps things out from coming in to our consciousness. >> so, roger, what do retail earls have to do to overcome from that? what's neuro marketing? >> i like a broad definition to include any use of our understanding of how the brain works to market better. and i don't know of any one retailer to do a lot about the mailbox onslaught but it's a big factor. there's what's called the paradox of choice and people presented with too many choices they make no choice. and that's particularly appropriate when you're selling things. offer too many choices and they won't buy. >> i just wonder if, you know, what we were seeing in terms of

numbers is no such thing anymore as black friday and cyber monday and spread across so much and november and december so, doctor, does that mean that retailers don't get this, the idea that -- >> right. >> -- one sale may be great but two months of it, forget it. >> yeah. there are basically two parts of the brain functioning here. the first is responsing to pleasure and so when we have a pleasurable experience our brain releases dope mean and over time we have a tolerance and require more and more and more of it and retailers upping the game in terms of 20% off and now 40% off and then it's 60% off but our systems aren't responding as much to that anymore and so, again, we are not getting the same level of satisfaction that we used to get and there's a law of diminishing returns and so up and up and up the game goes and

the pleasure from the rewards aren't the same. they become diminished. >> i get that. i mean, by the way, our poll is very clear. those who are choosing to vote on the poll among our viewers, 85% say they're feeling this fatigue. paul, you know, i get the dopamine rush but the holidays and trying to find the perfect gift for that person, there's a lot of stress involved, suspeis there? >> absolutely. the front part of the brain kicks in helping us make logical decisions and so even though we are saying, you know, i'll get pleasure from this experience, the front part of our brain is saying, but it's stressful. but it's complicated and doesn't make sense and flooded with all of these opportunities and so we get conflicted and as a result what the other expert just said, basically, we get paralyzed and we don't make any choices. >> roger, what do you make of the fact that more americans

shifting spending to online and online shifting shifting to mobile? how does that change the behavior and what they're buying? >> well, i guess the shift in mobile is inevitable. personally, i'm not that big of a fan because of the small interface but it's convenient and companies like amazon are shipping so efficiently that the traditional long delay in gratification isn't there. you can avoid the whole trip to the mall and in 48 hours your package on your doorstep. >> roger, then does shopping lose its cache then in that regard? >> i don't know that holiday shopping ever had much of a cache. it's a rather painful thing to head for the mall and fight for a parking spot and brave the crowds. >> i don't know. tell that to sarah. she loves that is all. >> i do. so you can psychoanalyze me, paul. i like the experience. i don't like to shop online. for me, it's fun and i don't do

it that often. >> which part of the brain is working at that point? >> well, but no. this is the gender difference. women are relational and men are transactional. women love the experience of a store and having the sales person come up and talk to them and having the whole experience. where men are transactional. they want to go online, find the best deal possible, click on that, get it in the shopping cart and have it sent so what's the difference here is between genders and i think that if you're looking at the poll closely we would see that the responding -- the males are different from how the females respond. it's a huge gender difference here. >> we have a high male count audience demographic on cnbc and just closing the poll, 84% of them that voted are feeling retail fatigue right now. roger, paul, thank you for joining us. happy shopping. >> thank you. >> thank you, bill. >> whichever. that was fascinating. the parts of the brain at work.

>> neuro marketing. a first for us. >> i like that. looking to cash in on the holidays? dom chu with the names that historically standout performers. dom? >> we asked partners at kensho to take a look at the last ten years and the holiday season specifically the 20 trading days after thanksgiving. and we looked at the 100 components of the s&p retail etf and 20 days after thanksgiving and stocks that were positive at least 80% of the time and we came up with a number of names, that list went down to about 12. so here's the topper forming stock. it's in online travel. and it's orbitz word wide because on average over ten holiday seasons it's up -- i should say seven holiday seasons, up about 24% each year and up 7 out of last 7 years and only been around for 7 years going public back in 2007.

look at the other real standouts out there. look at foot locker, amazon, staples, autozone among the 12 up at least 80% of the time over the past decade and positive gains. each one of those stocks has outperformed the overall market in that time and when's interesting here, also, is you take a look at the other names, a lot of auto related stocks, specifically auto retailers like auto nation or sonic automotive and some standouts in the sector. as you take a look at the overall retail spending picture, it is also about the other big names and for more, go to cnbc.com with the full list, as well. >> do you like shopping? >> you know, i like it at certain times of the year. doesn't happen all that often and i try real initial it as best i can. i just don't like to do it often, guys. >> he's a good husband, too. he has a fun wife, i'm sure they go shopping together. >> i try. >> he's a newlywed.

that's why. >> doesn't last forever? >> no, does not last forever. up -- got 18 minutes left in the trading session and we continue to pull back here. the dow's up 94 points. comfortably in all-time high territory. previous all-time high 17,828. we have to have an appreciable pullback to take it back. up 12 points right now. seven points away. coming up, check out hsn stock. surging 30% over the past 6 months. hsn ceo speaking with us exclusively of holiday sales and if 2014 will be a banner year. up next, you click, they deliver. find out what it takes to get a bottle of vino from wine.com's warehouse to your doorstep. this was the -- we said who could do this? it's morgan brennan all the way. when we come back. take on the challenge of trading options and futures...

with the easy-to-use suite of trading tools... at optionsxpress by charles schwab. and we'll give you a one hundred fifty dollar amazon.com gift card when you open an account. if you're looking for a trade idea, start at the idea hub... where options and futures opportunities are organized by volatility, earnings, market activity and income strategies. then run your new idea through the trade and probability calculator to get a quick look at the possible upside and downside. streaming charts give you the real-time quotes and customized views of the market that can help you make your final decision. and when you're ready to make it happen, walk limit helps you save time by searching for the most favorable price. find new ideas, analyze and execute your trades with just a few simple clicks, with optionsxpress. for a one hundred fifty dollar amazon.com gift card when you open an account, call 1-888-980-5745 today. optionsxpress by charles schwab. you are gonna need a wingman.

and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. once there was a girl who even in her laundry room. with downy unstopables for long-lasting scent. and infusions for softness. she created her own mix, match, magic. downy, wash in the wow. that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients.

plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. ♪ as you know, bill, it takes a few minutes or seconds to order something online but what really happens once you hit that buy button? >> let's find out. we have sent morgan brennan to

wine.com's distribution hub in northern california to find out. i often say the stuff we make you do, morgan. >> reporter: hey, guys. well, that's right. we are inside wine.com's berkeley distribution hub an they can experience ten times the normal daily volume and they ship a million bottles of wine this month and four you can see is ours from california. why? fed-ex which is what wine.com uses for shipments is giving us a look at the express delivery network and our wine.com package one of 290 million expected to ship via fed-ex this holiday season and to put it in greater expect, nearly 23 million packages handled in 1 day, double the normal daily volume. that is very busy time for of year for the carrier and under more scrutiny after an estimated

600,000 fed-ex packages missed the deadline in 2013. this year, it's added more workers and sorting centers and operating on sundays and we'll see how all of that action plays out over 18 hours. we'll track our wine.com package from here in california to washington, d.c. it's shipping overnight fed-ex express. and it's going to have six stops starting here, five cities and after this wine is properly packaged by someone other than me to avoid breakage, a fed-ex truck will pick it up and journey's going to begin and then oakland, california and then off overnight to memphis and beyond. >> let's see who gets there first, you or the wine. >> i hope you don't have to ride with the cargo, morgan. >> all right. >> i'm not riding with the cargo but tracking it closely. >> good stuff. love it.

thanks. see you later. art cashin signaled there's about $400 million of stock to sell on the close so i think we are seeing that play out here and seeing this pullback in the major averages. >> correct. we have a little more than 11 minutes to go before the closing bell and it looks like the dow, nasdaq and s&p are all firmly in the green. as bill mentioned, pulling back off session highs. dow is set to finish in record territory for a close. s&p off that record. oil lower today. jackie delangelis has a report. of course, the names on the list may not be exactly what you expect. so stick around for that.

in a world that's changing faster than ever, we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. by avoiding rapid acceleration hereand stop-and-go driving,

your savings on gas could be equivalent to how much? up to 50 cents a gallon? 75 cents? $1? the answer is... up to $1 a gallon. sensible driving avoids unnecessary energy loss saving you money and reducing co2 emissions. take the energy quiz -- round 2. energy lives here we're for an opens you internet for all.sing.

we're for creating more innovation and competition. we're for net neutrality protection. now, here's some news you may find even more surprising. we're comcast. the only isp legally bound by full net neutrality rules. about eight minutes left in the trading session here. i thought i knew all the hand signals but art came back and corrected me. i thought he said $400 million of stock to sell. that's $800 million stock to sell. pretty good number there.

that's definitely why we have seen this pullback in the major averages. dow up 94 points now. was up 119 at the peak but still in record territory right now. >> joining us, terry dolan and of course bob pisani. it was a rebound day. >> nice day here. new highs. short on the s&p. energy is key. very nice rebound. some of the energy stocks, looking at halliburton, so dramatically oversold. 2 1/2 standard daeviations past the moving average. >> strange to see the bounce where wti and brent are lower. >> that's right. that's a key sign somebody's starting to pick at the bottom. >> terry, december is pretty good for stocks. will you play it that way? >> i think we'll level off. i think the dow likes 17,800 left and looking at near the end

of the year here. you know, and on the oil picture, just a comment on that for a minute. if you notice some of the stocks picking are stronger groups to perform better when oil's under pressure in the past and will little bit of a flight to safety in that group, as well. >> they think the bigger names are going to be survivors and that's why the big cap names and oil service names are -- >> what's at risk? we have an ecb meeting and pressure over there. and a jobs report on friday. should the market continue to rally? >> i think you will see them continue to rally and nonevents from the macro point of view. you will see some intermediate an short-term reactions and not much. just noise. >> europeans are expecting something from drag my. >> they also do. >> but it's an intraday historic high. >> and the dow is down. >> that's the european situation.

>> bringing the guests become here. you'll get ready for the next hour. >> you'll join me. >> i will. what else is coming up? coming up after the bell, oculus. >> yes. >> the ceo, that will be cool, talking about virtual reality to the masses. with the ceo of that company, remember, owned by facebook. >> the '90s version of virtual reality, he calls it cheesy. this is the real deal. and you will see it. the gee whiz stuff coming up. your fidelity green lineket and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for. tap into the full power of your fidelity green line.

call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache.

to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. ask your doctor about cialis for daily use --i don't know my credit score. that's really important. i mean - i don't know my credit score. don't you want to buy a house...like, ever? you should probably check out credit karma, it's free. credit? karma? free? credit karma. really free credit scores. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have.

today there's a new way to work. and it's made with ibm. a couple of minutes left here. classic turnaround tuesday. so many examples to show but let's give you three here as i said before, if it's down yesterday, it's up today. that's for the dow. selloff in the open yesterday. this is two-day chart and then kind of went sideways, finished lower. today, higher. up 117 one point. a gain of 95 right now. but still in record territory. same thing for the price of oil. higher yesterday. bouncing off the lows of the weekend. price of oil and then today coming back. so higher yesterday. lower today. down 2.3% to $67.36 on wti. one more thing, transports down sharply yesterday. big decline. look at it from the highs to the

lows and we have come back a bit today. a gain of 107. oil, i mean, do you see it going much lower here, terry dolan? >> i think it's overdone and quite surprised it broke 70. >> you are not alone on that. >> i hear ya. i think that, you know, it is an interesting situation where the strategy may be the see if we can create downward pressure on pricing to curtail pricing in the u.s. and bring it back up. interesting to see how the price of oi and the new income effect for the consumer is offset by the net trade as the dollar is moving higher and the yen lower and see how the highwinds tie out and something that's a consideration in the first quarter. >> starting to see firms trying to pick bottoms in the oil service and energy production names and citigroup today said if you see a 6 handle on oil and particularly into the 50s start considering buying some of those big names, halliburtons, for

example. >> all right. thank you, guys. good to see you as always. so yesterday down. today up. the gain of 100 points on the industrial average pushes in record territory. not so, though, for the s&p. stick around. cool virtual reality stuff when the oculus ceo on the second hour of "the closing bell." welcome to "the closing bell." i'm eisen in for kelly evans. bill griffith will join us in a moment. a turnaround tuesday. the dow closing at a record high up 100 points. s&p 500 also higher. didn't quite make the record but up more than half a percent and the nasdaq in the green firmly, as well. a big turnaround of a selloff of wall street yesterday. let's bring in the panel, carol roth, jeff sott and jon najar n

najarian. we were just talking. you told your clients to get out of cash and into the market. here we are, another record of the dow. >> we had a premature call in august and we did a special system-wide strategy at 4:15 the afternoon of october 15th and said this is not where you sell but bottoms are made aenl put some of that cash back to work. >> dr. j, are you seeing signs that traders are betting on a bottom in oil at this point? was this a dead cat bounce for stocks? what are you seeing here? >> when you're seeing crude oil down, what, 2.5% today, jeff? look at the names in the oil patch that are moving up again. williams. you guys were just talking about it. that's pretty notable that on a down day for crude you have that kind of a rebound and it's also

manifesting itself over in solar stocks, in some of the fuel cell stocks, as well. these shouldn't be stocks that would be going up if, indeed, oil is going to keep going down and there's a lot of money coming in thinking that we have if we're not already at the bottom for crude oil, bill, that we're very close to it. >> carol, there are a lot of factors and themes driving the market. oil is one of them a. sketchy correlation to the stock market. do you think it's all about central banks and there in force driving the equity prices? >> i have been thinking that for a long time, sarah. bill, just a little bit. i certainly think that where we stand today is about the ecb. if you think about weakness, whether it's in asia or europe. and the intervention that's going to have to continue i think that is a theme that is holding up this -- i don't know if it's a full house of cards but maybe two flat or three flat. so i feel like we're okay for the time being. however, i do have concerns as

we look out into 2015. >> house of cards. i saw what you did there. jeff, the consumer, we're getting mixed signals on black friday. appears a lot of shopping was done online. as gasoline prices are lower, here we go again, are they going to buy more and what about the auto sales? very strong. >> yeah. the auto space is pretty strong for many years now and i think the international counsel of shopping centers came out and raised their expectations for spend over the christmas holiday by about 4%, 4.5% because the drop in gasoline prices will work its way into the consumer discretionary sector and it really is more impactful on the low wage earners and middle wage earners than the upper. >> what amazes me particularly on the car front is how resilient gm has been in the face of all of these recalls and they had a minor one they came out again today but if you look

at the sales trend, and how much the increases are, the fact that that brand's been so resilient and the fact they have they have had so much to contend with, that's interesting today. >> another factor on the market, higher bond yields. dr. j, 228 on the 10-year treasury note. this is certainly a change than the low rate, at least for two days. it is not enough maybe to call a total trend change but are you paying attention to that? >> i am. i know you do a lot. i think a lot of it was the little bit of a flight to safety when they were seeing crude oil prices move as they did from wednesday -- tuesday, actually, last week all the way through friday action and then again monday because that's when a lot of folks were actually coming back today. the little bit of a selloff that we had, i mean, we hit a low of i believe around $63 and change on yesterday. and yet, we're seeing a slight

selloff today and people are coming for those energy names so i think more or less what it is, sarah, just some of the people coming back out of that fear trade driven into those bonds by fear, not because they think rates are actually going up again. >> just to mention, telecom in the red on that note. >> oil slide today, best single gain in two years yesterday. jackie deangelis tells us who's benefiting. besides everyone who drives a vehicle for gasoline, right? >> that's right. you, me, appreciating the fact that gasoline hit a five-year low today. significant on a day when prices dropped another 3%. we saw the close $66.88 for wti. so if you're a company that's using oil as a raw material, shipping goods somewhere, you need consumers to hit the road

to spend money, this is good for your bottom lines. the airlines, shippers. also think about fed-ex and u.p.s. the stocks are already on the move because their costs are coming down. also, the autos you have been talking about. gm and chrysler. they're saying that, you know, americans habits die hard. they're back to buying suvs again because gas prices are down. goodyear, the tire company, saying it's seeing more sales potentially because people are ready to hit the road, shopping, traveling, whatever it is. retailers like target, walmart, tjmaxx, company that is will see people potentially come in for brick and mortar sales this holiday season and maybe cyber monday wasn't so great. it is food for thought. but one person put it fantastic explaining this to me. this is how i'm looking at it. this is somebody from cowan. cheap oil is for the u.s. as

cheap labor was for the brics. think of it that way. back to you. >> let's find out. jackie, thank you very much. more on that, let's bring in energy expert john kildoff and the panel. john, have we bottom short term in oil or what do you think? >> possibly short term, bill, but i think it's a steady grind low lower. everything, all the elements are in place to get us here. more supply, not less. less demand, not more. the perfect combination for it to stair step lower and lower and lower and throw in a rising dollar. >> how low? >> i think, you know, the 63 change low from the other day is certainly one to watch but 59.80 the next stop on the chart and i believe solidly in the low 50s in the first quarter of next year and possibly lower. >> really, jeff, low 50s?

what do you think about that call? >> markets can do anything. i'm in this business 44 years and in the short run it's all about fear, hope and greed. only loosely connected to the business cycle. longer term, i think the economy's going to pick up. i think cap x cycle comes in, strengthen and i think we are going to consume all the crude oil we can produce. >> here's the issue. low demand side, low worldwide demand, what will drive the growth on a worldwide side and here in the u.s., energy sector where we created the jobs basically. not just those oil services companies but all of the service industries and small businesses that have popped up around it. from my standpoint -- >> that is not true. not all of the jobs. >> if you look at the states which have had the job growth, it is texas and dakotas with the job growth and decent wages attached to them. >> you are in the camp where you see this -- >> i think -- part of a big

negative. something to be very, very concerned about. >> john, what do you think? >> i don't. i think it's good for the economy. i'm sorry. i apologize. >> john, that's fine. go ahead. >> and then dr. j. >> okay. i think it's good. ours is a consumer economy. two thirds consumer. this is money that their pockets. everything jackie mentioned and add and say the cruise lines and walt disney. one interesting theory i have come across is it could possibly be somewhat inflationary because oil is consumer discretionary spending going into the part of inflation that's noncore could see a chase for goods and better profits and things to trickle down to higher wages ultimately for everybody across the board here so this could have an interesting knock-on effect than maybe we're looking at right now. >> here's the thing. not new dollars in the consumer pockets but a different aloe case of capital. i like the energy creation of

jobs. that's what puts actual money and growth into the economy. versus moving money from one sector to another. >> what do you think, jon najarian? >> well, bill, i tend to attend with mr. kilduff. it is unambiguously good for the united states and 70% of the gdp is consumer. to carol's point, perhaps several hundred thousand very good paying jobs and perhaps the low millions of good paying jobs have come from various connections to the energy patch. but with a country with 325 million people, that is that thin, it's that small and good paying jobs, carol, i agree. i think the fact that more people have more money to spend is far more positive looking forward than it is to have a couple hundred thousand people or maybe even -- >> we're barely keeping pace with population growth. that's significant to me. >> i agree. that's not all going to come

from energy and we knew that regardless of whether we have green energy or fossil fuel energy. we're not going to replace all the jobs that are being lost elsewhere with the energy jobs. >> friday's number looking as high as 275 or 300 whispered out there. i think -- not all the jobs in the energy sector, as well. we're already seeing some, you know, demand, production response to the slide. >> right. >> in terms of permits and other measures that we're looking at, but again, this is something that is just trickling down. throughout the rest of the economy, as well. this should, in fact, help china and india and the brics manufacture economies that they're going to have much lower input costs and benefit a lot of -- beyond the united states. >> john, good to see you. >> thank you. >> appreciate it. and stick around. jon najarian coming up at 5:00 p.m. eastern time and catch him and the rest of the gang. >> talking to the ceo of taser,

that a first on cnbc interview of president obama's request for funding for an increase in police body cameras and something to affect his company. do not miss that interview. but first, consumers may be loving low oil prices but the next guest says that the oil shock could spark the next financial crisis for banks straight ahead. also, the fbi you may have heard warning businesses about a highly destructive malware attack right now. how big a threat is this to corporate america? we want to know whether you're more afraid of a future cyber attack or terrorist attack. your chance to vote on that coming up in a few minutes here. you don't need to think about the energy that makes our lives possible. because we do.

we're exxonmobil and powering the world responsibly is our job. because boiling an egg... isn't as simple as just boiling an egg. life takes energy. energy lives here.

goes without saying most consumers are loving the oil prices but it's hurt the energy sector and also hurt regional banks. >> mary thompson is working that angle of the oil shock. mary, what did you find? >> the last week has been a tough one for the stocks so a few of the banks we spoke with analysts are down playing an immediate hit to the business ore than maybe a longer term

risk of possibly slower loan growth. any impact depends on further decline in oil prices and length of time it stays at those levels. san antonio-bases cullen frost is down and the ceo is not shaken. eastbound though 15% of the bank's loans are to energy companies, most are e & p loans and the borrowers hedge them to lessen the impact of swings in prices and add to that the loans to companies, 100-plus-year-old cullen frost makes are companies they know the risk spread out of a group of lenders, not just one. bok financial stock is down this week and like evans chief credit officer isn't nervous. twice a year the firm stress test energy loans with oil at 55 and nat gas at $1.50 and ask clients how they keep paying the

loans in scenarios. it's added protection he says. a greater risk are one area that analysts and the banks are watching are loans made to oil servicers, these are a smaller percentage of total energy loans and they can be unsecured or asset backs. servicers are hit first by cutbacks impacting the ability to relpay the loans and people are watching that area right now. back to you. >> thanks very much, mary. next guest says it may not be the regional banks to feel the pain. the big banks could be in real trouble here. let's bring in james saminski. explain how big of a deal this is. >> this is a very big deal. i'm hearing from mom and pop investors happy with the gasoline prices going down and then a big shock in the statements. saw that the oil companies invested in, the energy sectors, banks has big exposure and

ramped up. barrelclays and community banks. so i think we see problems and weaknesses with some of the big banks. goldman walked away from a deal and i think banks disclosing the extent to which they have energy exposure. >> the debt that was issued had to be junk bonds taking a higher risk. no guarantee in a lot of this case. let's tood the information on this comments yesterday by new york fed president bill dudley, steve liesman asked him about this issue. the impact of lower oil prices would have on the debt market for these bank that is have lent so much money. to these oil producers. listen to what bill dudley said about that. >> i think there is some leverage related to the oil and gas business but i think that the amount of dollars we are talking about are very small relative to the total size of the u.s. economy and doesn't rise to an issue of where it's systemic. >> yes. somebody will take a hit and not

systemic. you are nodding your head. >> yeah. i agree with that. a lot of people including the total lifting costs, they include the cost of drilling the actual well. if you take that out of the equation, because that's sunk cost, and if you take it out of the equation, according to the lifting costs in the bakken is 30 bucks a barrel of oil and fundable asset and i'm in the fed president's camp. >> you are not calling for an all-out crisis, are you? this is totally nonconsensus view and most people agree with what mr. dudley said. >> i think there's a big problem here. you have a lot of banks with this energy sector exposure. i've talked a lot of investors in high distressed debt, mutual funds like merrill lynch, 30% in the energy sector. there are concerns of the defaults, restructuring, particularly north dakota area and a lot o regional community

banks so i think there's concern. i don't know it's across the board but a lot of big lenders are going to be disclosing their exposure. >> please told me nobody sold credit default swaps against these -- >> i'm sure it's there somewhere. >> that's the big issue and compounding those starting with the gambling on these. >> you have heard the comforting words before the crisis, right? >> absolutely. >> were we over leveraged? of course we were. >> the difference is how many people who are unrelated to the trade betting on it. i hope we're not there right now with the regulation we have and to me if there's the level it's more of a concern. >> jeff, it is human nature. we have seen the boom that goes on in the northern plains of this country and the impact it can have on the economy. of course you're going to have money thrown at it. we overdo it every single time. have we overdone it this time

again? >> i don't think so. i think that as i said earlier, oil is much more fungible piece of asset. with the lifts costs down where they are in north dakota i just think it's a cash flow story. >> they can still walk away from those debt obligations very easily if they decide they're going to cut back on their capital expenditures. >> what about an international basis? places like venezuela and niger and -- >> i agree with that. >> oil companies walk away from this. investors get left holding the bag. there are a lot of investors who are pitched by the financial advisers. these are the hot products this year. this is the sector to be in. >> high yield. >> they chased yield and will get blown up a lot of these people across the board. >> all right. thank you very much, jake. it is an interesting angle. keeping eye on it as we see oil prices continuing to decline. on to another happy topic.

black friday, kind of a bust, right? cyber monday was better. how did hsn formerly known as home shopping network do? the president bill brand will join us exclusively coming up. will shoopers pick up an oculus headset in stores and how much would it cost? oculus ceo will be here later on "the closing bell" to explain. people with type 2 diabetes come from all walks of life.

if you have high blood sugar, ask your doctor about farxiga. it's a different kind of medicine that works by removing some sugar from your body. along with diet and exercise, farxiga helps lower blood sugar in adults with type 2 diabetes. with one pill a day, farxiga helps lower your a1c. and, although it's not a weight-loss or blood-pressure drug, farxiga may help you lose weight and may even lower blood pressure when used with certain diabetes medicines. do not take if allergic to farxiga or its ingredients. symptoms of a serious allergic reaction include rash, swelling or difficulty breathing or swallowing. if you have any of these symptoms, stop taking farxiga and seek medical help right away. do not take farxiga if you have severe kidney problems, are on dialysis, or have bladder cancer. tell your doctor right away if you have blood or red color in your urine or pain while you urinate. farxiga can cause serious side effects, including dehydration, genital yeast infections in women and men,

low blood sugar,kidney problems, and increased bad cholesterol. common side effects include urinary tract infections, changes in urination, and runny nose. ♪do the walk of life ♪yeah, you do the walk of life need to lower your blood sugar? ask your doctor about farxiga and visit our website to learn how you may be able to get every month free. getwo weeks later.ee. look, credit karma-- are you talking to websites again? this website says "free credit scores." oh, credit karma! yeah it's actually free. look, you don't have to put in your credit card information. whew! credit karma. really free credit scores. here we are.

holiday shopping season under way as shoppers flock to the stores. their computers. and their televisions presumably for the best deals and among the leaders of a unique way is hsn. >> here to tell us about the state of consumer is ceo bill brand joining us in a cnbc exclusively and a fortuitous name as bill griffith said of bill brand. >> that's the name i want. >> i get that often. >> how did you do last weekend? >> i hope the smile on my face is an indication that we had a very strong weekend. as you know, we came out of q3 up 7% in sales and that momentum has continued. for us, over thanksgiving weekend, that's an important shopping weekend, but for us, we kicked it off in october and we had gifting shows through october, we even had black friday events through november. so our consumer is present, she is engaged and shopping.

>> does that mean that there's no need for black friday or suber monday if it's going to go for a few months? >> parts of it are ant kuwaited, right? getting up in the middle of the night and stand at a store in the freezing cold. >> such a good american tradition. >> it is a great tradition. now i prefer to roll over and look at the mobile phone and an hourly deal on my mobile phone and those types of offers that we have created that you can only get at hsn across our digital platforms and, of course, across our television, as well. >> television portion, mine, as you're programming, how does that change? you used to be exclusively television and now hsn.com. do you sell one thing versus another? internet versus television or side by side? >> so we do it side by side. we create a seamless experience. for us, if you look at the television network, that's a great marketing driver. that's 95 million homes but 40% of our business, nearly 40% now happens on a digital platform.

mobile is fastest growing platform. expectation is how do you create that experience? what that does is it builds a connection to the customer. there's an expectation that what you're going to find on the television is going to be available on the laptop or on the mobile. but once we get her and most of our customers are female, getting her to a digital experience, what more can we offer? how to broaden the assortment. more experiences. >> stock has done well and the ceo was touting solid releases. celebrities are a big part of your business model. you have a lot of them in your portfolio. how do they help you sell products? >> my background is entertainment before joining mindy's team and it's about bringing together the story and the brands and the products. that's what we do at hsn. that marriage of entertainment

and selling really works for us. as you mentioned tyra banks, she was down to hsn last month and she calls it beauty-tainment. >> i thought the fragrances weren't doing well. >> celebrity fragrances for us, it's story and a connection. the difference between an hsn customer and a non-hsn customer is looking for intimacy, looking for a connection. and where else can a celebrity like a sophia vergara tell the story and make the connection with consumers? that is a point and our calling card. going to hollywood, it's because the movie studios like disney our partner want to help and reach women and our consumer. so how do you bring that together? that's what we do in creating assortments. >> prioritize, price, distribution channel or -- what was the third one here? or content. >> right. >> what's most important that

brings people to you? >> we are a content driven retailer. >> okay. >> we are all about story telling and that emotional connection, we inspire women through stories. and price is -- plays a role. and then distribution. how are we top of mind? that's been the change of retail. it is not one destination. it's multiple destinations. >> right. >> hsn, a partnership with aol, with univision. how are wiin all of these place so it's top of mind and then say, oh, we have tyra banks. keith urban in two weeks will be at hsn for the weekend. >> selling a guy tar line i heard. >> guitars. >> what is your average age of your consumer? >> in her 50s. >> isn't that a problem, though? don't you have to be appealing to millennials, at this point? >> absolutely not a problem. if you look at the consumer spend of women over 50, certainly they make up the most of that consumer spend.

our entry point, are women in the early 30s. making the life changes, they don't have time for the mall anymore and they need the convenience and the connection that they no longer have, that's when they enter into our experience. mobile, you mentioned mobile earlier. youngest, most affluent and most diverse platform for shopping so you have to look at it in totality. certainly younger women are coming in. but what we're doing is building long-term relationships with consumers. we're looking for not just a transaction but we want her to come back and back and back and delivering at hsn. >> 50-year-old women are buying keith urban's guitars? is that what's happening here? >> learning to play guitar. keith said the reason he wanted to do this at hsn, perform for six hours in one day. tell stories, take fan calls and didn't want the next generation of kids to play with guitar hero and wanted the real thing and wanted to teach and i think there's something to that

experience. >> guitar playing is not just pushing buttons. >> absolutely. >> good to see you. >> thank you. >> bill's president and chief marketing officer at hsn joining us here. amazon ceo jeff bezos defending the lack of focus on profits as a start-up. >> been public since 1997. you hear what he had to say next. stay tuned. so, how do you feel about cash back? i would not say i'm into it. but let's see where this goes. [ buzzer ] do you like to travel? i'm all about "free" travel, babe. that's what i do. [ buzzer ] balance transfers -- you up for that? well -- unh. too soon? [ female announcer ] fortunately, there's an easier way, with creditcards.com.

compare hundreds of cards from every major bank and find the one that's right for you. creditcards.com. it's simple. search, compare, and apply. [ ice rattles ] there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor.

amazon ceo jeff bezos speaking at business igniters conference in new york city. >> addressing concerns of amazon stock price declining this year. he offered a rather startling description of his company. courtney reagan has redales for us. >> bill, it is rare to hear from jeff bezos. he doesn't speak to analysts on quarterly calls or investors but today he did with business insiders at the ignition conference. the discussion itself wide ranging including the drones, the "the washington post" purchase, company culture and what he is like at home. here's what he had to say about the quarterly earnings and the market reaction, particularly after the latest disappointing

report. >> we would all love all of our numbers to be smooth lines up and to the right and that would be terrific but that's not how it works. you know, those numbers are output measures. and i mean, i guess you could try to manage your quarterly earnings very precisely but i think personally that would be a mistake. >> bezos also looks at the company he founded in a very different way than perhaps investors do. >> we're a large company but in many ways because of all of our emerging businesses we are also still a start-up and there's a lot of volatility in start-ups. >> start-up, interesting. when asked about when we might see the delivery drones, bezos said he thinks the u.s. will be behind other countries to allow drones and pointing at the regulatory authorities. bill? >> i don't own the stock. couldn't at all but i think jeff

bezos is smartest guy in the room. he could turn a profit if he wanted to but it's all about reinvestment in the future of his company and that's, you know, a lot of people disagree with that strategy but, you know, so far it's working. >> debate that rages on. >> thank you, courtney. michael lewis' book "flash boys" started a fight on wall wl and now a new battle on the same story. >> for that story and other popular ones, let's check in with allen wastler. good afternoon to you, allen. >> yeah. that's a surprise hit of the way. there's a new research paper out of university of washington and making the rounds and got the high frequency fight going on again and essentially says, hey, high frequency trading is good, provides liquidity and everybody, though, objecting to it saying, no, no, no. it's 5-year-old data and before the flash crash. and it's only from one exchange and not really valid. it is like the two old guys at

the bar seeing -- red sox or yankees, they fight again. that's drawing attention. number two, you had an earlier segment of retail fatigue and christmas. there's christmas searches and on the internet beginning in september. so it's kind of natural that all the ads and advertisement comes out early. blame yourself if you don't like it. finally, we spotted a want ad from elon musk space x advertising for a farmer in texas. why would you want -- it's kind of exciting. mars needs farm earls? more likely it's some sort of tax move by space x. but anyway, that's got a lot of attention on the web, too. diverse assortment for you today. >> eric chhemi on the hot list. >> it starts early. >> did you start looking in september? >> new york city i did not.

>> i didn't think so. the future may be coming sooner than you think. >> that's true for the virtual reality company oculus. they're up next, the ceo joins us to see how soon the latest device in your hands. plus, the attack on sony's movie studio has ratcheted up the cyber war and the fbi revealed it could get worse for american companies. that story still ahead. blan blank i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80%

of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country.

[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is.

. last time he was on the show, his company just inked a $2 billion deal with facebook and now ready to bring the device to the masses. >> with us live from the business insider ignition conference is oculus ceo brandon irebe. how are you? >> doing well. thank you. >> what you're working on, virtual reality, i think of holograms and gee whiz technology of the '90s we were talking about back in the day. what's happened in the meantime? what he is the current version of vr out there right now? >> hardware advanced incredibly

quickly and been a few decades and you have seen improvements in power of personal computers, displays of cellphone and so the sensor that is are detecting the gyroscope and different part that is have really moved forward since people tried vr a few decades ago and that's what it took. it took hardware to be ready and then a group of incredibly talented software engineers and hardware engineers coming together to get access to the latest and greatest hardware and make the magical vr happen for the. for the first time comfortable and you feel like you're really there? >> what is the time frame for releasing this to the masses to the public? your first consumer product. >> well, oculus has two categories of product it's approaching and i was just handed here the galaxy gear vr and this is samsung's product.

this is an innovator edition. we are really looking at getting this out to the masses but developers first. so you have heard oculus focused on pc with the rift in the past. pc vr and now the mobile market with gear vr. this is still developer kit. it's still innovator edition but a ton of content and then this quickly get to a mature level and ready for consumers to start playing with and comfortable and fun and that's what we're targeting. we are far on the pc. rift is shipping soon. we haven't announced when. >> you can do that now by the way if you want. you can tell us when you ship the rift if you want. that's okay. >> we haven't announced yet. >> i'm aware. >> it ships on december 8th. >> carol, just think, if you wear that thing you could be as if you're on the sidelines an at bears game. right? >> hopefully not a bears game. hopefully somewhere else right now.

i'm a little upset with the bears. yeah no. >> i know. >> very cool technology. i wonder if i could go back to brandon for a second. >> of course. >> i want to understand. in terms of synergies with facebook, what is it like being a part of their entity and how have they helped you get this product to the place where it's at today? >> well, we just formed the partnership with facebook so it's still only been about six months, seven months since we really came together with facebook. they've been incredibly supportive of super charging the recruiting effort. we were 50, 75 people started working with facebook and we are well over 200. some of the brightest and best in the world and that's thanks to facebook and also on their sheer kind of tightened size as a company and tracked engineers that want to secure company, not necessarily a start-up so by coming together we have a ton of great people. >> jeff, you are shaking your

head. does this compute with you? >> gosh, bill, we have come a long way. >> brandon, there's all sorts of grand ambitions, you have talked about them before, for virtual reality, medicine or military or engineers. how far are we from that world that you see? >> there will be a lot of applications over time and the beginning we definitely see this focused on gaming and entertainment. it's something that you get the early adaptopters can't wait to this and get into that immersive world. they have been dreaming about it in sci-fi and that's where we are today. we're with the early adopters, getting them to make content, deliver content out and the first set of consumers will largely be in the gaming and entertainment market and longer term as you see it going fowards, it is going to be great for education. the idea of seeing 3d, historic objects as though they're in font of you.

going back in time and be in a civil war or the old roman age and really experience that environment. is going to be amazing for so many people. so many students. it is a lot of fun. architecture, yeah. time travel. there you go. >> a quick question on the gaming front. obviously, community has become a really big trend. obviously twitch is recently acquired. do you see the virtual reality enabling the community and transport themselves into the virtual world with oculus? >> well, this is -- we have said this is one of the most social platforms or the most social platform created because it's a lot like real reality but in a virtual environment and real reality is very much about social. it is about interacting with other people, going to places together, experiencing things together, solving puzzles together and communicating together and in vr you can do that with somebody in california when you're in new york and at the same time it's going to feel like they're right there next to

you and an incredible set of applications for what that kind of shared sense of presence will deliver. >> okay. i'm sorry. when did you say rift is coming out again? >> that is a big question that we're working very, very hard on. >> all right. >> we want it out there as soon as possible. >> a lot of hype. >> soon. don't worry. >> thank you so much. brandon iribe. >> nice try, bill. will you get one? does that mean you're a virtual reality gamer? >> kind of cool. i'd watch. >> it would look good on you, bill. >> you would really own this. >> i'd be rocking that thing, wouldn't i? hackers are mobilizing forces in the cyber war. >> attack on sony leaking films online and employees' personal information how has corporate america concerned and with good reason. we'll tell you why when we come back. we want the know which

concerns you more right now, a terrorist attack or cyber attack? vote now at cnbc.com. okay. uh, and i know-uh-i know what blood type i have. oh, wow! uh huh, yeah. i don't know my credit score. you don't know your credit score? --i don't know my credit score. that's really important. i mean -- i don't know my credit score. don't you want to buy a house...like, ever? you should probably check out credit karma, it's free. credit? karma? free?...so, that's... how much? that's how much it's free. credit karma really free credit scores. no credit card needed.

the fbi has issued a stunning warning to american businesses. >> in the wake of the investigation of the hacking of

sony pictures' corporate computers this week, the fbi now has uncovered some damaging software, it's malware that threat el pasos business infrastructure. >> here with the disturbing details is eamon javers. eamon? >> reporter: the fbi is warning american companies and asking for their help here in this five-page what they call flash alert that they sent out to corporate i.t. departments late yesterday. it's a five-page memo. but i'm told most of the memo is zeros and ones. the actual detail of the malware code. that might have been associated with this sony attack. and what they're asking american companies to do is look into their i.t. departments, look into their service, see if they can find this code. if they can, they want that reported to the fbi to see if they can figure out if other companies were attacked. if other companies were attacked, maybe they can do a little bit of analysis of who might have been behind this. one possibility is it could have been the north koreans. that's at least on the table. not ruled in.

not ruled out just yet. in revenge, this theory would say for a potential movie coming out by sony about the assassination of the north korean leader. so a lot going on here, guys. the fbi really looking now for some help from corporate america. they want to know if this malware has spread beyond just sony. >> yeah, the connection to north korea felt like an urban legend the other day. but i don't know. there may be something to that. thank you. our next guest is sounding the alarm, saying that a malware attack has the potential to temporarily destabilize our economy and shut down our markets. we're going to talk about it. but we want the hear what you think about this as well. which are you more concerned about, a malware attack, a cyberattack or a terror attack? do i say the more traditional kind of terror attack, if you want to put it that way. >> i don't know. they both sound pretty scary. let us know what you think. log on to cnbc.com/vote. the 308s are now open. we'll share the results as they happen. in the meantime, with us is alec

mcgeorge from immunity and the panel weighing in on this discussion. alex, what does this specific threat look like to you. this possible that it is related to north korea? >> it certainly is possible. we've seen nation states go after corporations before. for example, saudi aramico. we've also seen google gone after in the operation aurora attack. but we've also seen private groups have the ability to take on large customers. tj maxx, target, home depot and so forth. so i think as eamon said, the jury is still out on if this is related to north korea. >> they think this is one of the biggest potential threats that is out there. i raised this on this very program a couple of months ago in relation to jpmorgan and the hacking that was in there. from my perspective, if you think about what might happen if just the financial system was paralyzed for a day or two, what

that might look like, to me that's potentially the biggest threat that we're facing. would you agree with that? >> well, i think from my personal health and safety standpoint, i'm much more worried about a traditional terrorist attack. however, from a broader standpoint, i would tend to agree with you. for example, let's say to use your example, the trading floor of jpmorgan was shut down for two days or three. what we're hearing from sony is all the desktops in their enterprise have been wiped. everyone has a disaster recovery plan. but very, very few people have a disaster recovery plan which includes restoring all their desktops from scratch when they have tens of thousands of them across their enterprise. >> but even from a personal safety standpoint, if people couldn't access their cash, if the banking system went down, we've seen how people behave in these types of situations with katrina and some other situations. i think that that could actually turn into being a personal

safety issue. >> it would certainly destable, that's for sure. >> i'll completely grant you it would be destabilizing. if they have to shut the market down for a few days or if one of the major players is no longer there. but as an american, i'm much more worried about, you know, a traditional physical type attack. but that's not to downplay the risk that you're pointing out. i think it's very valid. >> well, only 42% of our viewers agree with you, alex, by the way. 57% right now are voting that they are more concerned about the cyberattack at this point. 59% at this point. alex mcgeorge from immunity. thank you very much. you know, they had that report on "60 minutes" the other day that 97% of corporations have been the subject of cyberattacks, hacked. i want to know who the 3% were that are successful. >> get your plan together, bill. >> it's a story we'll continue to follow. we'll be right back on closing bell.

hi. pete and jon najarian here in new york city outside of the nasdaq, where we bring you live daily market updates. and today, we have a very special free gift for you. so many viewers e-mail us wanting to know our secrets on how we trade options.

so we put our secrets into a new book. and if you're one of the first 250 people to call in right now and just cover shipping and handling, we'll send you a copy for free. look at the rate of return we've made on some of our recent options trades, versus what we would have made had we just bought the stock. there's no comparison. to make the best returns in today's market, you have to learn how to trade options. and our book will show you how to do it for free. jon has been trading options for more than 30 years. pete is one of the top 100 traders in the country. and our book will teach you how to trade options for free. so call now. [ male announcer ] call the number on your screen now for your free copy of jon and pete's new book. that's... (see the number on your screen) call now.

a couple minutes left. some final thoughts from our panel members today, carol. >> i'm still -- right i know i'm looking at the consumer. i think if you look at cyber monday, it was not nearly where it was expected to be. black friday and the thursday before it down significantly. so we were talking about the expectations of a really good

retail season here. not off to a great start. >> jeff? >> bull markets, secular bull markets tend to last 15 years. we're five years into this one. if past is prelude, we have eight to ten years left with a lot higher stock prices. >> do you guys disagree on that? >> you know that i have a lot of concerns. >> i know you do. >> in terms of where the world ends up when the central banks stop printing. >> but to end it on a positive note, i have a final thought. it comes from steve liesman. qe3 gdp is tracking 3 to 4% which would mean two back-to-back quarters of 4% growth, something we haven't seen from 2003. >> the third quarter ends up after they revise it again. >> that's where it's tracking. >> i learned a new term today, real reality. >> i thought you were going to see neuromarketing. >> we did it all today, didn't we? >> so much. >> carol, jeff, thanks.

>> thanks for having me. let's check in with melissa lee. "fast money" is coming up in a seconds. >> we have a biotech analyst who will give you three names you want to own into the end of the year. and by the way, they don't include biogen which popped 6 1/2 on the alzheimer's drug. should it be an interesting list here. >> have a good show tonight. >> thanks. have a great evening. "fast money" starts right now. live from the nasdaq market site in new york city's times square, i'm mel. your traders are tim seymour, we've got the ceo and the first on cnbc interview coming up. we start off with our top story here. oil versus the rest of the market. crude pulling back today after yesterday's pop. analysts say oil may not be rallying any time soon. revising the forecast for $65 for both 2015 and 2016. and citi saying if opec does nothing next year, the floor to be around 50