stocks, gold orbitcoin, when's the best investment? today the markets took over. this's the way things roll in this show. >> we roll with the punches. thank you for joining us today. "closing bell" is coming up right now. welcome to "the closing bell" on this monday. i'm kelly evans at the new york stock exchange. >> nice to be here with you. i'm scott wapner in for bill griffith. chevron, exxonmobil, mcdonald's and caterpillar all getting beaten down today. we're going to get into the reasons why and why those could signal bigger worries than for just those three names. >> which is better long term, stocks or homes? some of the best money minds in the world debating this one right now. we'll find out what they said and which one, scott, might be the better investment. >> tis the season to steal stuff from work?

this is the time of year that businesses are at their greatest risk for losses, not just from shoplifters but employees. our kate rogers has a special report. >> but let's begin with markets right now. an hour to go and we are seeing significant pressure on stocks. the dow's off 102. well off the lows of 150 from the last hour or so of the session. still as mentioned, a lot of pressure in the energy complex. crude today closing at a five-year low. and look at some of the names taking it on the chin in response. you have a denberry off 10%. the equity not just hit and seeing pressure on the credit default swaps here. >> time now for the "closing bell" exchange. j.j. kenihand joining us and thomas fross, lee drogan, renee norris and our own rick santelli

who rocked it yesterday on "meet the press" with chuck todd. well done, ricky. let's get to the conversation right here. >> thank you. >> thomas, to you first. so we have this really good jobs report on friday. and then you have this continued drop in crude oil. how concerned should we be about this drop in crude that doesn't seem to want to stop? >> well, we're not concerned at all. let's put in it per suspect i. you look at 2008, summer of 2008 through the fall of 2008, oil prices dropped almost 80%. right now -- >> and the economy was fine. >> and when you add to it people are going back to work. you have people going back to work. making a higher wage and spending less money at the pump. how could that be a bad thing? we think that's a recipe for good things long term. >> not necessarily a good thing for the stocks that are most at risk if oil keeps falling s. that in part why we're seeing the stock market sell off today and how concerning could that be if it continues?

>> it certainly is a reason we saw stocks fall off today but we have this argument. when's better for main street might not be best for wall street and that's what's happening right now. great for main street. spending less money in goods and services, less at the pump. obviously, hurting people that are working for some of the oil industry companies, also hurting their stock price, but we think long term they balance each other out. >> this isn't just a day where the energy complex is under pressure and the 10-year a little bit weaker today and the other more cyclical names and -- you thought might benefit from the argument. so the concern that we're expressing is a concern of the market expressing here. where do you think it comes from? what happens next? >> i think it's more of a one-day thing. you are seeing portfolio managers cut aloe cases across the board with high-yield energy debt crushed and oil in general crushed.

we contribute to the platform take the consensus numbers for names considerably up over a couple of weeks and oil coming down, the market in general doing really well. the economy flying. more money in people's pockets. consumer sent systematic strong right now. we expect names like chipotle, carnival cruise lines, priceline, travel names, consumer discretion names to do really well. >> already priced in? in other words, then why aren't we seeing the outperformance? >> i don't think it's priced in. we are starting to see multiples come up for the names and lagging the estimates. seeing a positive eps in revenue revisions in the quarter, you normally see multiples come up, as well. we expect to see that throughout into the q-4 reporting system. >> you expect that we may revisit what happened six, seven weeks ago? oil kept falling and stocks went right along with it until oil was able to stabilize for a little bit and then the stock

market zoomed back to where we find ourselves today. >> the 63 level is kind of a big test. we'll see one day through it and see if we can go back and hold it. this could be -- near term, i think it is okay. there's more money in retailers. i'm sorry, consumer pockets, et cetera. the holiday shopping season. this could be a bit of a concern because to your point of crude coming down, i believe it can drag some names with it. we released the imx. the clients 5.11. lower than last month and what they were doing is buying lower beta names and net buyers, they relocated and we saw ibm and one of the main buys and the reason being i think because it's not as big of a pay to stock and set a base of 161, 162. >> core late almost. >> yeah. they're also chasing yield. you talked about the 10-year today. people are going to continue to

chase yield. >> are you buying big blue? >> i'm interested of a contrarian view at this point, though, too. i'm probably in the minority. i think we are going to see a strong year end. i think that a lot of money managers moving money around. 85% of them are underperforming their benchmark and so they're repositioning their portfolios to try to come in at a stronger position. next year i'm looking for 18,000 on the dow which is only about 12% higher from here. >> yeah. we're almost there on friday. >> exactly. >> yes. >> let's go to the star of the group, rick santelli, of course, fresh off the "meet the press" appearance on the weekend. rick, how is this drop in oil prices going to impact the fed in its own decision to start raising interest rates? that along with the rising dollar and complicate things and even when the economy is moving along pretty well. >> you know, it's very difficult

to handicap because even without the dynamic, i couldn't handicap the route the fed will take in the exit. i give them kudos. the balance sheet is shrinking and i'm telling you people ask where's inflation and the issues? the fed vacuumed it right away on the balance sheets what they did putting rates negative territory and take lack of inflation into consideration so that's a good thing. you know, if you look at the hyg, pick something, yes, the lowest levels reflecting the dynamic of what's going on with credits based on what's going on in energy and hovering at 90. even though that's low since january of 2013, if you look at five years ago when the last time oil was here, that's the last time we're at very low levels in the dow 6600. and at that time, the hyg was at 61. so i really caution that, of course, there's winners and losers in every big change in the economy and energy is a big

change. but i think the economy's able to handle it and i think when i look at how the big too big to fail banks and the hedge funds have done in an era of easy monetarily widty i think it's about time as one of the guests pointed out that main street gets a little tip of the hat in their direction. >> what do you guys think, either one of you can either this, leigh or jj, part sially rick's point and whether we're taking it much more seriously than some of us are. >> there's going to be blow-ups in the credit energy space an i'm hearing of funds going down and also at the end of the road some huge opportunity for distressed debt and i assume that we're going to start hearing about funds set up to buy the debt once that bottom is in. could take more time here. oil still coming down. i expect it to play out over four to six months. >> one thing is looking at the

high yield space over the last year, almost 20% of those who have financed that way are in the oil services sector and a huge, huge affect on that and i think definitely, scott, to your point bearings watching. >> to my point, people i'm speaking with term it as a ticking time bomb and may not blow up in six months but, you know, closer to 12 to 18 months from now, who knows? >> to what extent, anyone's perspective on this, been through an episode that's not the financial crisis of 2007, 2008, not right comparison to draw here. it's more about what happens when you have a specific price, commodity, in other words, that's collapsing, people exiting the positions. whatever financing was involved is coming out of the picture and the impact across perhaps a localized recession of those parts of economy reliant on those parts of the high-yield space, as well, but what's it mean to the broader financial

markets and the economy? >> compared to sector, it reminds me of the early '80s and farming where people -- at the time high interest rates and now high yield to finance the equipment to get the job done and when it ended it was kind of ugly and got rid of pretty much most of the small players and you could see anything -- >> but the economy kept growing. >> the economy at the time actually was in a very bad state and the economy really had plodded along for a while. >> that's so unusual, isn't it? >> remember one thing, everybody. everybody needs energy. every single minute of every single day. subprime hit, people could stop buying houses. there's no many alternative to many of these and the ultimate demand for energy is what's different in this instance. >> rick, that's what's so interesti ining because we got confirmation. you couldn't ask for a better demand number than friday in

terms of jobs rourt. >> exactly. >> it's oil and natural gas and commodities weak today and there's something else going on. >> it's power generation. not only crude. it's also natural gas. so it's all tied up in some of the new technology and i do think other areas of the economy will continue to benefit like manufacturing. >> well, no. one thing i would have said to rick is that's why i compared it to farming. everyone needs the basis. >> exactly. the crops. >> that's yit's a great core relation of the future. >> got it. >> rick, do you think it's a perfect storm if oil prices continue to stay slow and interest rates rise and refinance the debt at higher cost? >> i think that would be a problem but, honestly, it's very tough to find a per menation where interest rates rise dramatically in the near future. >> that's true. >> thank you. got to hop. 50 minutes to go into the close. appreciate your time. kicking off the week on kind of a weak note given the number on friday. the dow retreating well from the

18,000 marker. down about 107 points today. s&p's off 15. nasdaq off 44. here's a question for you. why in the world are banks urging some u.s. customers to take their cash deposits elsewhere or face hefty fees? kayla has the bizarre story you have to hear. later, if you own any of these names you may want to sell them before the new year. find out which stocks and why coming up.

welcome back. again, looking at the dow off triple digits today as the 18,000 mark we were talking about on friday after the strong jobs report is fading from memory. there's pressure, severe pressure on some of the energy names. >> four stocks out of the dow accounteding for almost all if not the greatest portion of the decline. exxon and chevron from the energy patch. mcdonald's, though, u.s. comps bad yet again. >> right. >> that stock is getting hammered throughout the day. down $3.50.

caterpillar is very weak, as well. take them out, you have a little bit of a different story. >> just the three, if caterpillar weren't the fourth one, you could paint a better picture but you hate to see that name under pressure, as well. >> ever thought you would have to pay to keep your money at a bank? that could be the case for some corporations next year. kayla is here with us for a look at when's going on. what? >> seems counter intuitive in the face of it but there's a reason for this below the surface. but taking deposits and lending money, two central business of big banks and effects of regulation may be changing that for the deposit side of the business and the fed is now incentivizing banks to keep less risky assets on the balance sheets, thing that is are easy to sell or shed to keep the business going in crisis and some corporate deposits count as safe assets. others do not. here's the ones that do not.

deposits of small banks and hedge funds. the reason, those deposits can be volatile and unpredictable making them more susceptible to outflows in a crisis and overall less reliable source of capital for the banks and those accoun s require compliance and making them expensive to maintain and the reason why some hedge funds received a letter last month of jpmorgan and they would be charged to keep them in-house. similarly bank of america, as well. so, guys, not to say they're declining business from the likes of coca-cola or other blue chip names. but it is a sign that some cost associated with regulation are popping up in some corners of the market and this time it could become very costly for hedge funds and other financial firms to actually keep that money at some of the big banks. >> yeah. interesting story. stick with us. we have another guest. >> joining us with his take,

chris whalen. chris, good to have you back. >> hello, kelly fie you're a hedge fund, where do you go? who keeps your money? >> bank of new york's been charging for a couple of years. i think you will see at least one other large bank follow the same practice. you know, it is driven by regulation. kayla's right. it's also economics. the banks just can't deploy these funds. and what i would say to business people who get a phone call, not a letter, but get, you know, kind of an informal nudge to go elsewhere, talk to the community bank. they want to lend the money. the big banks so overregulated and operational issues, as well, that they can't get out of their own way. the smaller regionals, community bankers want these deposits so there is a solution out there for american business. not just hedge funds. >> but you're also talking about why you like those banks better than some of the big boys today,

right? >> sure. they're lending money. more important thing is big banks can't make money on the huge inflow of deposits. they have all grown since 2008. the small banks have grown, too. interestingly enough. but the problem is that the big banks just can't deploy the funds. jamie dimon talked about this. they don't want the money. >> chris, some of them have a good portion of deposits on hold at the larger banks because of access the clients and different securities a they can get through the bigger banks that they can't necessarily get via their own balance sheets an i'm wonder what you think the net effect will be from the system. will they have a new revenue stream from this or do you think that they've been paying for the compliance on some of these accounts for so long that they'll just be breaking even? or do you think that some of the deposits will leave the building in a material way? >> well, i think over time, kayla, the deposit will leave the building because as business

gets more confident, less defensive of payroll and other key funds with anything but a large bank, right, they ran away from little banks in the crisis. i think over time you're going to see the smaller banks, even the likes of a u.s. bank corp. which is a biggest community bank in the u.s., by the way, they're all going to benefit of this. i think rightly so. you don't want to see excessive concentration in the top banks and that's what we have today which is encouraged by the fed. you know, the fed's approach to bank supervision is so conflicted and so ridiculous in many cases. the regulations you were just describing, kayla, they don't make in it sense if you understand the businesses and these deposits but this is the world we live in now and the banks have to deal with it. >> all the same, just to make chris a 30,000-foot point here, it seems if i'm at the fed i don't mind the trend. isn't this what europe is trying to do to fend off inflation and negative deposit rate and act to spur more cash moving around?

>> no. i think we have gone past that, kelly. i think really the fed should raise rates. low rates after a while is great editor of the economist noted a long time ago are deflationary. we need assets earning again. we are almost down to 3% net interest margin for the industry and if they don't raise until this time year, we'll be well inside 2%. that's bad. you don't want the system to not make money on carry and that's the problem of today. >> is there a chance, kayla, this becomes sort of one of the unintended consequences of more regulation and this is rolled back in any manner or just here to stay, this is the way the business is at banks? >> don't get the republicans talking about possible repealing of dodd-frank because, of course, that's a mandate they've been talking about for quooit sometime but regulation well telegraphed, a slow trickle and not coming out of left field because the new rule put in place this year, banks

understood some deposits counted and some seen as risky. seeing a deposit balance that fluctuates, i'd love chris's thoughts between 10% and 50% over the course of 30 days, can you count it as stable money you're basing capital ratio on, chris? >> no, no. you have it wrong. this isn't capital. all right? these are deposits and nothing wrong with them fluctuating. they fluctuate. that's the point. >> but they have to hold a certain amount of stable assets under the coverage ratio and the fact is they don't count. >> you're assuming that the regulation makes sense, kayla. it doesn't. the economists that designed the liquiddy rules don't have a clue. i work with banks every day. trust me. this is a really bad idea. you can't measure -- >> that's my point is that if you believe it's a bad idea, we're just finding out about it now in a broader way and maybe the clients of the banks are paying more attention to it now

than they have in the past -- >> thank god they have an alternative. >> to roll back some of the regulation having this impact. >> well, i think you are right but there's a bigger problem which is we need to take the bank supervisory function from the fed. you can't have economists experimenting and saying what if supervising banks. the people that decide are out in right field an i urge you to look at this again. >> they said they're willing to make adjustment when they have found they have unintended consequences and tw weeks after the unveiling of the volcker rule. >> that was a bad idea and the scheme of measurement and managing liquidity makes no sense if -- >> i'm not saying it's a good idea but whatever is in place wasn't working and this is one way -- >> that wasn't the problem. >> this is trying to safeguard system. >> no. i dits agree. you don't understand this.

>> can we continue this again? thank you for being here. >> thank you, kelly. >> kayla, thank you, as well. we need an overtime action for this. we have breaking news of deutsche banc to get to. >> banks, check out what's happening with deutsch bank. the u.s. government is filing a lawsuit over alleged scheme to avoid federal income taxes. deutsche banc shares off 2.5%. the u.s. is saying that they filed this against deutsche banc and other defendants over the scheme. u.s. attorney barra in manhattan said it seeks to recover more than $190 million worth of taxes, penalties and interest. the lawsuit does also name wells fardo in the capacity as a trustee related to the deals as a defendant and the lawsuit claimed that deutsche banc used flaud lent conveyances of shell companies to, again, being targeted by u.s. attorney

bharara for alleged scheme to avoid taxes. that's what we have. >> all right. thank you so much for those head lines there. 35 minutes to go. dow jones industrial average down by 97 points today. crude oil is one of the wig stoirls today as wti and brent continue to fall taking the market with it. large selloff in many of the larger energy names today. mega terrell in the middle of the action and a big cancer drug conference if san francisco speaking with the ceoo seattle genetics, new cancer drugs in the pipeline and why his stock by the way down more than 8% today. stay tuned.

welcome back. markets coming off their lows here. the dow off 87. half a percent. the nasdaq is underperformer of the day remarkable considering the stress. s&p off 13. 8 preponderate 5% of the s&p is energy. keeping a close eye on that. oil prices closing at a five-year low. now bio tech and cancer research

in san francisco at the annual meeting. among the companies in focus, seattle genetics a dive down today more than 8% and 7.2% now. >> meg terrell joins us with that company's ceo. it is a cnbc exclusive. meg, take it away. >> hey, scott. thank you so much. doctor, thank you for joining us. >> thanks for having me on your show. >> absolutely. so, you know, they mentioned in the intro your stock is coming under pressure today and some analysts citing competition of your main drug. do you think the market's understanding the competitive landscape? would you say they're overreacting? >> very we're excited and we have approval for patients about three years ago for patients with relapsed hodgkins lymphoma and there was never a drug for them and our goal has been to treat those patients but -- and

those are third line patients and had to have failed two prior regimens and then front line and second line and we have done work and presented that the conference. in fact, this morning we presented data second line showing an 84% complete remission rate and front line a 96% complete remission rate with no deaths at three years and very excited to go and treat the earlier stage patients. we're also very pleased there are other drugs such as oncology drugs that can help patients. we are about patients and treetding patients. my whole career is about that so i'm thrilled there are other drugs to help patients and we think it is the center focus of hodgkins lymphoma and combining them well and you will see in the future. >> do you think, though, with the market's reaction is it missing in some ways the opportunity that it has? you're testing in it a lot of other indications. >> yeah. we think that it has a really

great opportunity to be a blockbuster drug in front line therapy. front line therapy is a same for 38 years and it's four cytotoxic drugs and one especially of lung toxicity an trying to get rid of that and redefine front line therapy. and include this and not the other and the data for the lead-in trial is extraordinary. and we have a huge amount of doctor support here. the doctors, we have been running around the halls and doctors are congratulating us on the data so we're really excited. you know, this conference is about doctors and presenting data. >> kelly, you have a question? >> yeah. thank you for being here. if i could just ask, for those of that doesn't follow the language, could you explain, it's an exciting time for bio tech generally and people say they're curing cancer, finding new ways of doing that and treating patients. in 2015, what are some of the most exciting areas of both you

specifically and the industry more broadly? what do you think is going to be the next big headline here? >> yeah, we are a really making an impact on cancer patients and it is very heartening talking to patients and you see how we can extend their lifetime and we have treated over 15,000 people now with ectetris and it's been fun and we're excited with it and pipeline and a great drug for the worst type of leukemia of aml and presenting on this afternoon showing strong control and that's great but if you look overall, there are ways the target the cell surface and ways of targeting the inside of the cell with very specific pathways you could target as well as amino oncology and targeting the cells around the cancer cells and all three are really good and the goal is to get away from using cytotoxic. they call all toxicity and with

individual targeted therapies and combining them this field is moving forward. >> doctor, i'll take about hard of a left turn to take in an interview like this and ask you to address the 800-pound gorilla in the room. that being the allegations made by the soon to be ex-wife of the head of health care investment banking at jeffrey that is you and others engaged in what's been termed partying, perhaps illegal drug use and other things. you have responded in a statement calling them baseless. and absurd. you want to address them right here on television? >> they were nonsense. i was not involved at all. i'd be happy to talk about seattle genetics but i had no involvement there. completely baseless. >> will you sue in return for what has -- you have been accused of? will you continue as a firm to use jeffries for investment banking?

>> you know, my goal is to spend my life making difference in cancer patients' lived. i started seattle gentlemen in ittics 17 years and been in the business 25 years and focused on that. i don't want to spend my time trying to get back at somebody when i was really collateral damage in something i wasn't involved in at all so i really -- it's total nonsense. and second of all, as far as investment banks, we have used historically maybe a dozen investment banks. we have used them on a case by case basis and any time we need to do a transaction of some sort, we meet with banks and we side who's best for that specific transaction and continuing to do what we did with investment banks. >> understood. doctor and cnbc's meg terrell coming to us there in that interview, really appreciate it this afternoon. we have 35, about 30 minutes to go i should say here into the

close. the dow back off more than 100 points. 103, in fact. the s&p off 15. and the nasdaq under pressure to the tune of 42 points. >> a bit of a bad day for stocks and what about next year? charles schwab's chief investment strategist liz ann sonders with his take and why schwab is more bullish on wall street than international markets for 2015. you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it.

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welcome back. dow's down a bit more than 100. dominic chu has a market flash. a look at a stock on the move today. what is it? >> we're watching shares of t l talisman energy. repsol said to wave the assets. one point talisman energy down more than 12% and currently down 1.5% and sharply off of the lows. we also want to bring you an update on the deutsche banc story we just gave you updates on with regard to the u.s. saying that they had allegedly dodged taxes. they made a statement saying, quote, we fully addressed the government's concerns about this

14-year-old transaction in a 2009 agreement with the irs. in connection with that agreement, they abandoned their theory that deutsche was liable and while it is not clear to us why we're being pursued again for the same taxes, we plan to again defend vigorously against the claims and deutsche banc out with a normal statement against the claims of the u.s. government making. >> dom, thank you. i'm just going to point out that adrianna lehman is in the house. if anyone is -- victoria's secret is ringing the closing bell and bringing the stars with them. so that is happening. >> i hadn't noticed. okay. deep breath. all right. dow jones industrials are down, oh, 106 points. right now. oil selling off. stocks aren't having a great day. >> they're off less than 1% for

lbrands. a close eye on that one. and that's adrianna, ladies and gentlemen. here at the new york stock exchange as mentioned. victoria's secret will be ringing the closing bell. lb the ticker there just about 20 minute's time. >> been a pretty good year for the markets even with a down day today. up next, the doi up almost 8% and the s&p up more than 11%. >> now it's time to look ahead to 2015. who better than liz ann sonders joining us with her outlook. great to have you back. what's the headline? >> in terms of 2015? i think, first of all, i think it's a secular bull market and had the view since 2009 and we are in a more mature phase and when you get to this point typically in the secular bull market after past the five or six-year point and in particular given this year and the beginning of a rate hiking cycle, you tend to see a flattening in returns and more volatility so that's what i would expect to see 2015 and

then near term sentiment is stretched right now so i have a little bit of caution in the near term and again in the context of a secular bull market that i still think has years to go. >> interesting you say sentiment is stretched. that tells me that you think perhaps people are just too universally optimistic and positive x bullish? >> it is interesting that the traditional measures of sentiment whether it's aii or investor intelligence recently they did get to what is historically fairly high levels of optimism. that said, if you look at the yale, the shiller yale surveys that are longer term surveys that look at the spread between what institutions are saying and individuals, that shows a very low level of confidence so that's why i specifically noted short-term sentiment. i think longer term measures of sentiment in actual surveys and what we see aneck dotally at

schwab, the wall of worry is intact and not seeing the euphoria of major market tops. >> do you think, liz ann, i don't know what to extent you are aware through your data, fwhau 2015 is a year that retail investors get involved or do the market highs and volatility of the financial crisis keep people on the sidelines if they are on the side lines. >> retail investors are involved and what we find at schwab is we have a fairly healthy and optimistic individual investor particularly those that take a disciplined approach to investing. i just think there's still a muscle memory of the two financial crisis and that's why you haven't got on the that level of euphoria like you did in the late 1990s into 2000 or even in the prior cycle so i think there's participation, there's willingness to be involved investor, but you don't have the same level of enthusiasm that you've seen in the past. >> liz ann, are you concerned at all about this continued drop in oil? what do you make of it?

>> you know, the net is i still think it's positive for our economy and broadly for the global economy within emerging markets and particularly for the consumption side but that's the net. you know, the gross for lack of a better word is that it's a mixed bag and what we have been enjoying here in the united states is a pretty decent capital spending cycle and energy renaissance and then the impact there on capital spending, you look at the potential rep which you ares and the high yield market associated with energy. i think there's a rub that we probably have to get through. again, i think the net from an economic standpoint is a positive but if this starts to really send a signal of weakening demand and a bigger deflation problem, that's not great for the market. >> liz ann, thank you. thank you for being here. >> thank you. >> charles schwab as we start to turn and attention to 2015. >> almost here. 15 minutes to go before this day is over. and we're still looking at a down day on wall street and really the focal point of the

story is that continued drop in oil. >> let's see if adrianna can improve sentiment here. >> she has an impact on the sentiment of the traders. >> yeah. watch activity at post 8. i don't know the markets at large. the traders are bullish. okay. up next, if you own the stocks, listen up. data suggests to sell them before that ball comes down in times square on new year's eve. morgan brennan has the list you need to know about when we come right back. ♪ my baby drove up in a brand new cadillac. ♪ ♪ look here, daddy, i'm never coming back... ♪ discover the new spirit of cadillac and the best offers of the season. lease this 2015 standard collection ats for around $329 a month.

you have heard of sell by dates of foods. >> and now the stocks to sell by the end of the year. what's on the list, morgan? >> this is the new year's resolution list. five consumer discretionary stocks to consider selling before 2015. staples, office product retailer up about 18% so far this quarter. but analysts consensus estimates calling for an 8% move to the downside in 2015. another name to check out, autonation. that's a name on a tear along with other auto related companies this xwaert.

up about 16% since october but estimate project an 8% loss next year. darden restaurants, gained 18% this quarter. but consensus says we could see a 11% drop next year. lastly, check out two dollar stores and could tumble out of the gate in january. the first is family dollar up about 3% since october. but according to our data partner that stock fallen on average 4% over the last five januaries. also, dollar tree. that's up a hefty 21% this quarter and the average january loss 3% but of course, guys, that pending takeover of family dollar by dollar tree could affect that longer term pattern this time around. nonetheless, five stocks to check out for your new year's resolution list. back to you. >> okay. morgan, thank you so much. we have ten minutes or so to go. want to update you on technology

movers today. twitter down almost 6%. on a continual slide lower. let's check apple, as well. so many of you own it, follow it and have their products around. down about 2.3%. technology and even though we're highlighting the energy names in the dow dragging down that index and mcdonald's and caterpillar, nasdaq is worst of the three today in large part from a slide in names like tesla which is below the 200 day. apple down, twitter down and some of the other names, as well, i'll try to highlight in the closing countdown. >> and over all the dow off about 111. art cashin indicating additional sell pressure to the tune of 300 million. the widening wealth gap may have hit another gear. a million you nitd knits of pr cars and whether they should be paying closer attention to this one. ♪

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joining us is anthony chen from jpmorgan chase. peter costa of empire executions. good to see you. did you knee that adrianna was on the floor? >> oh really? i didn't know. >> focused on the market. i'm so glad you're focusing on stocks. anthony, what do we think about this fall in crude and the fact that the stock market is selling off as a result? >> crude is just towering down. i think once you see a stabilization of crude prices the markets realize and reality it's good news and some point i have no doubt that opec will come in and try to stabilize prices with cooperation of nonmembers. >> energy is a big part of the market with exxon and chevron and many other selling off and driving the overall market lower. that's an issue. >> it's an issue but giving the big tax cut to households and many companies that use energy is also an issue and a positive one. >> how do you see the market here today? dow 18,000 is about 150 points

away. got, you know, within 9 points or so on friday on the back of better than expected jobs report. does it matter? >> yeah. you know what? oil is a big issue today and i think the markets are a little tired and i think that was -- we were really ripe for something like this. i thought the market was overbought last week and when you look at any time you see dow and s&p making the fractional new highs, you know that there's -- it's getting weaker. the impetus is not there. it's just making it because what i would say is it's lack of any kind of sell interest and buyers moving in higher and that's all it was and now seeing people starting to take some money out of the market. there's a good reason oil is down. good reason to take some cash off the table. >> you have any doubt of whether, anthony, the u.s. is still best place to be? >> i think right now u.s. is still best place to be and the decline makes other places also nice places to be. china's a big oil importer and and guess what. look what's happening to chinese

equity markets. shanghai index up more than 42%. lower oil prices will help along with stimulative policies by the pboc and maybe more fiscal spending. >> we'll come back with the closing countdown on a pretty rough monday down on the street and then after the bell real estate versus stocks. big debate just happened among top money minds over which one brings investors better returns. we'll tell you about it later in the show.

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welcome back. we approach the closing bell on this monday. want to show you the weakness in the dow today and we have talked about it throughout much of the day and happening with crude oil. selloff of exxonmobil and chevron and mcdonald's. boy, the u.s. comps continue to be a trouble spot for mcdonald's. that stock is down by nearly 4% so that's the bulk of the weakness out of the dow. throwing caterpillar in there and some other names, you would account for much of the selling in the dow jones industrial average and show you weakness in technology. nasdaq is weakest of the three today and you can see some real selling and continued trouble for those who own shareless of twitter. there's the nasdaq down nearly 1% but twitter is weak today. tesla continues to be weak. there's even been selling in apple, as well. here's a real point of weakness.

twitter and then tesla and then apple. back here with anthony of jpmorgan chase and the executioner peter costa empire executions. how do you think the market is setding up into 2015. pulled forward some of next year's gains into what we have done these last six and a half unbelievable weeks? >> you want to answer that one first? >> i actually don't think so because i think that next year you might see corporate earnings moving for the s&p 500 as high as 10%. this year as you know third quarter is 8.8%. so to the extent of more earnings next year, i see a 10% rate of return for the s&p 500 next year. >> that's a lot more -- i mean -- >> tough question. >> it is a tough question. >> a lot of people were surprised by where we have gone in the last 6 1/2, 7 weeks. >> you know what i think it is? flight to quality and safety and come to the u.s., a lot of foreign money has come in. so, you know, going into next year i think that -- you know what? i'm not going to put anything on the table for next year.

i want to take a look at how the year ends out and probably this level. i think next year we set up very good year going into the end of the year. >> okay. i appreciate it. anthony, peter, be well. talk to you soon. stock market will go out with a loss for sure today. dow down more than 100 points. kelly picks it up with the gang. thank you, scott. welcome to "the closing bell," everybody. i'm kelly evans. a tough start to the week on wall street. take a look at how the indexes finishing with the dow giving up 103 on the close. s&p off 15. nasdaq off 40 and that's interesting. how weak the technology names were today. on the day when otherwise the story is energy. let's talk more about what's happening across the sector with today's panel. contributor carol roth is here with michelle caruso-cabrera and ross ger by and tim seymour and

at the nymex is jackie deangelis. >> hey, kelly. >> welcome one and all. jackie, how bad a day was it for crude oil? >> brutal. 4% declines both sides of the atlantic. we saw crude settle at $63.05. it was a five-year low. we did break under $63 as well, a key technical level. you know, it was the third worst drop that we have seen this year and by all accounts that really is what triggered lot of selling in the stock market, as well. traders telling me it was a tough spot because a lot of them think we have sort of bounced around a bottom here and same time nobody wants to be caught holding the bag. so they were on the selling side because that's where the momentum was today. >> i was pretty amazed. jackie, thank you. carol, putting that in context, this comes after seeing pressure and nothing really happened and no real reason and it was almost the lack, perhaps, of any news of to peck over the weekend but what do you think about what's happened here with oil? >> you know my perspective. a lot of people think it's a

good thing. i don't think it is particularly a good thing. a lot of people are focusing on the supply side of the equation. i'm worried about the demand. i'm worried about the weak economies, particularly je lly s and means in terms of exports and job creation and sounds great to have more money in the consumer's pockets but from my standpoint i'm concerned. >> michelle, bis lately talking about what some of the trends including the stronger dollar and saying, remember how much of the world's reserves in dollars. some point getting tougher and tougher from -- exactly. >> and talking about the bank of international sentiment put out a big report to them sounded frightening and the world sounded frightening and countries all over the world and businesses all over the world issue their debt in dollars, but they get paid in some other currency like a ruble and it keeps pummeled and the dollar is stronger, pay back debt is really hard.

>> the bis is sometimes fearmongering and calling it to some extent calling the imbalances in the global system and worth paying athe engs to and what's an investor to do about it? >> the other thing they highlighted and talking more about, not just the currency mismatch as they call it, but lack of liquidity in the corporate bond market, as well, is getting i'm hearing horror stories of people who trade em, distressed and v-trade distressed em. it's you and some other guy somewhere in the world and you can't get trades done and very gappy and when the market turns it's super painful and ugly. >> ross, what is your experience? >> my feeling is i'm a u.s. investor and i care about america doing well because this's the majority of my asets by far. the drop in oil and pressure on basically enemies is not a bad thing. let's be real. we are fighting a war right now against russia and iran. cyber, economic. this is a concerted effort by the government. this is not an excellent. >> u.s. government?

>> absolutely. absolutely. >> do you think they're telling producers now uneconomic to keep pumping oil? >> it is economic to keep pumping oil within the united states. we have tremendous resources. it's our national security interest -- >> hold on, hold on. >> as somebody with a well that needs oil to -- >> subsidize. >> you think the u.s. government will subsidize? >> absolutely. >> that should go over really well. everybody loves the oil sector so much. >> to get more money to the oil industry. >> we're at war right now with russia and china. >> no, we're not. >> and in the oil. yeah, we are. >> tim seymour? >> look at ukraine and the south pacific. we have -- >> we are not at war. we're not at war with russia or iran. but i agree with ross is saying. think about who suffers with lower oil prices and where our interests lie. this isn't bad for the united states. i think prices is not truth here on oil prices.

i think it's a liquid market and agree with what michelle was saying and people suffering and one of the worst years for hedge fund and that's what we're talking about. >> what does that mean then, tim? in other words, does that mean there's not going to be support and it's not economic to pump oil? >> i think we have these issues through the first quarter of next year and i think the supply tells you that. not cutting and hedges and continue to produce. i think oil could go into the high 50s and not lead to a global pullback and add 50 to 60 basis points to global gdp next year. >> in the bakken it is there. >> i wonder what this means in terms of consumer demand. that is the trade everybody's hoping happens here. the black friday sales have been extended through valentine's day if i look at my e-mail and not bode well from a retail standpoint, consumer standpoint so the consumers aren't stepping

up here, the price of oil and gas where it's at, when will they? >> i was talking whereabout the money is going. one theory is going to verizon data plan. two, it's going to your health care plan. is it possible that we're not seeing as much of the -- >> there's an article in "wall street journal" did a big data dive and discovered a huge percentage now going to those two things. that's where the middle class is squeezed the most. your cell phone bill which is gotten so much bigger. >> so important to most people. >> yeah. >> ross? >> adding devices. but the money has to go somewhere so it's either going to spending or savings and going to spending and health care is more expensive for most people but the bottom line is a lot of it is going to apple. >> you love apple. it's down today. it's under pressure today. >> she needs a new phone today. michelle needs it. >> iphone 6? >> she has a blackberry.

>> i'm a contrarian. i have the blackberry. >> consumers will spend the money and it's good for the economy. it's that or send it to iran to build a nuclear bomb. >> i think you are right spending on data for the mobile phone, fine. is it true for health care? >> it is more expensive. we spend more on health care now than we spent last year. and individuals are spending more. >> coming the individual, once the individual actually has to start paying more, that's when the spending actually starts to fall. this, oh, the constant rise in spending in health care, et cetera, once we have to make better decisions and forced to, you will see the spending drop actually. it is a necessary evil. >> scaleable like verizon. i don't think more for the data plan has created high-wage jobs. i want to see more leverage out of it. >> i own stock in verizon so i'm happy with this. >> there's productivity. doing all kinds of things on the

phone, drives apps, creativity. >> and less productivity doing the things on the phone, too. >> are you kidding me? no. we're far more productive today. >> i have a company on my phone. right now ire the natural segue then would be a security discussion and i just wonder as we look at the -- >> scary. >> you heard walmart saying it's the only place to write a blank check, corporate or personal level. >> yeah. >> if you just said you run your business on your phone. >> right. >> are you scared? >> am i scared? yes. honestly. after the sony thing, i'm in l.a. and the sony thing is unbelievable. a country hacked down a major corporation over a seth rogan movie. you know? it's crazy to think about the stock exchange or individual companies. we use a brokered dealer and responsible for security of the asets of clients but interviewed about this. i'm scared to death of turning on the computer and says zero on every account. >> i worry about that or the account doesn't exist. there was no --

>> i'm not scared of many things but that's one thing i'm scared of. >> carol? >> i said it many, many times. that's the biggest threat we face and the reality even if it's something only lasts a day or a couple of days, the kind of, you know, potential anarchy to happen here in the united states of people not being able to access whether it's the devices, whether it's a bank account or whatnot, i don't think people are anywhere near prepared even if it was just localized -- >> it's a confidence killer. >> that's what i'm saying about the war thing is that this is a country doing this to us. >> understood. >> this is russia, this is north korea. this is china. >> they're saying people sympathetic with them. we have to be clear. tim seymour, give me trades here so i don't have nightmares of -- >> the fearmongering aside going on over there, a lot of what's happening today is because on friday a fix, a number of nonform payroll puts the fed in play next week and people want to know why risk assets are

pulling back because you could have the extended language taken away. you have a zero interest rate environment and the united states well behind the curve. that's a lot to do where investors are positioned and i agree liquidity is a big deal right now and funds closing. i talked a lot of people seeing both energy funds and other global macro funds in distress here and a lot to do with the price action right now. >> jackie, a quick last word to you. when's the next key level on the downside? >> that's the big question, of course. 63 left for wti, traders said there will be more selling breaking through that and a settle under $63 and this point, kelly. you said no catalysts today. there weren't. but i think the news out of saudi arabia last week, this idea that brent to stabilize around $60 a barrel, that is sort of trickling into the market here. >> oh. >> we have to get there and remember wti usually trades at a discount. that implies we see wti in the 50s. >> that's a great point. jackie, thank you very much for sticking around.

tim seymour, appreciate your time, as well. coming up with the rest of the "fast money" crew at 5:00 and asking dennis gartman is bottom is near. that's all at 5:00. now dominic chu for a quick market flash. >> kelly, we are watching sharyls of mcgraw-hill financial. the stock moved lower at the end of regular trading on a bloomberg report that the s.e.c. is said to be seeking to possibly suspend the s&p bond ratings unit from rating commercial mortgage-backed securities. again, they did receive the company s&p financial a wells notice earlier this summer regarding possible ratings and disclosures made about different cmbs deals in 2011 but still again a bloomberg report saying that s&p may, again, the government may look to suspend s&p from rating commercial mortgage-ratings backed

securities and the shares down as much as 4% in regular trading and 2% to close the day out. back over to you. >> a space to watch. thank you. the age-old question, which gives you better returns, stocks or owning a home? some of the best brains in the money business are taking that issue on. we'll find out if they agree with "shark tank's" kevin o'leary saying homes are terrible investments. he is here next. plus, high-end car sales are booming. priced under $50,000 seen modest gains, though s. that more proof of the growing wealth gap? stick around.

there are people on wall street, long arguing, that stocks are a better investment over time than buying a home. but does the data back that up? diana olick took a look and has answers. hi, diana. >> there's the case that you will build more wealth through the stock market than you ever will through owning a home. this amid other news that fannie and freddie offering mortgages with 3% down payments and push for homeownership and going back to 1987 when the s&p kay shiller home price index was invented

stocks win by a long shock. they're more vog till, yes, but they yield more. not only through appreciation but dividends. home prices do rise over the long term but not nearly as much as one might expect and you also have to pay into a home and the form of property taxes, insurance, maintenance, improvements. you have to pay capital gains tax on stocks but it will come out as less in the end and mr. shiller charted this back to the turn of the 20th century and it has held up for well over 100 years but you could argue a home pays you in kind, that is, you live in it and it's really more of a consumption good like a car than an investment vehicle like a stock. but really, i have to say, it's a savings vehicle because paying down a home loan is forced savings. kelly? >> all right. diana, stay right there. we want to bring in kevin o'leary with the rest of the panel. good to see you. listen. diana has a point here. the home pays you kind. maybe harder to value but more

important than stocks, surely. >> well, diana is trying to take a page from the past and apply it to the future. during the period dooft that, interest rates, nrds, mortgage loans, did nothing but go down for 20 years. i don't think that's going to be the case for the next 20 where it bottoms now. over the next few years, rates come up and consensus in june and real estate is not a great investment in periods of rising rates. on top of that, relatively ill liquid date and there's no diversification an it's a largest asset. transaction fees are almost 12% to get in and out of it and one sector, real estate. i would rather be in dividend paying stocks across all ten sectors of the s&p and i think they'll outperform, no question, kelly. >> panel? >> i think most people buy a

house, i'm talking the average american thinks when i'm old and can't work anymore, i want it paid off and nearly free to live in but the taxes and basic maintenance and can't live in a stock certificate. right? they think -- >> enough you pile enough of them up. >> kevin is 1,000% right and think of people risk averse and not convinced of ability to invest in the stock market, know that it's fallen 30%, 40% in a single year. what would they do? and that fixed payment on the 30-year mortgage is the same every single month. >> i want to know what he thinks of the 3% down and the government once again is pushing homeownership as a middle class wealth builder. >> i'm shocked. >> no, no. there's something wrong with the market. there's something wrong with the real estate market. i'm trying to rent a loft in soho. i'm looking at 2,700-square-foot place recently last week on the

market for $15 million. that's insane, of course, just on its own. but wait. it gets more interesting. there are a bunch of you nitds in that building that are renting right now for $24,000 a month. that imputes a value 50% less than what they're asking to sell it for. that can't be sustained. i think the prices of these things -- >> that's not america. that's not the rest of the country. that's not america. >> go back to fannie and freddie. the fannie and freddie, spending the time an money on regulation of the financial services sector saying we cannot afford to have another financial crisis and what was the component? people getting into houses that they could not afford. now we're going to go back to 3% down? who's the genius coming up with this idea? >> kevin? >> look. i think this is a big problem with this because we have lived through it already. you know, i ask people that work in the companies i invest in or

i own why do they want to own a home or a condo? what's the reason for it? can they give me a sound financial reason? and the truth is, they've been told their whole life that the best invest systematic their home because all they've down is interest rates going down. i would rather rent a condo and that's what i'm going to do because i think what's going to happen is nothing, i don't think something today is more in five years and 12% to do the transaction and you tied up the money in something that has no diversification. i hate housing. >> diandiana, last word here. >> that's the high upper end and wealth build, maybe some of wealth building is forced savings and when you do pay down a home loan and none of these interest only a.r.m.s anymore, it's the money in the bank and maybe not appreciation on the home but the savings you're foesfoes

forced to make. >> and nobody mentioned inflation. >> diandiana, kevin, thank you much. dominic chu with news on verizon. >> we have verizon shares down about a percent in the aftermarket trade after the company issued a press release saying that they continue to see strong momentum for wireless customer growth in the fourth quarter of this year. they said that they saw very strong customer demand for 4g smartphones and tablets and said that approximately 3 out of every 4 upgrades strategic or high quality from a basic phone or another 3g smartphone. the company expects that fourth quarter impacts of strong customer volume will put some short-term pressure on wireless segment profits and profit margins and there you see why investors are not liking this, at least in bit of news short term and down about a percent on shares of volume. also tn telecom front, t-mobile shares down about 4% to 5% on a relatively light trade in the afterhours. they have said that they have --

the stock moving lower after it announced that it's beginning a public offering of 17.4 million shares of a mandatory convertible preferred security, that's like a hybrid stock bond type security with 50 bucks a share, getting 50 bucks a share, they have to convert it to equity and the shares down by about 4% to 5% on a relatively light 25,000 shares worth of volume trading on that bit of news. >> yeah. some big developments. thank you. looking for evidence of a wealth gap, look to the auto industry. cars priced over $50,000 selling like hotcakes. is this the kind of dwooifd wall street worries about? if you heard of random acts of kindness, now talk about random acts of pasta kindness. someone who has the never ending pasta pass and using it to feed the homeless. we're back in two.

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i have $40,ney do you have in your pocket right now? $21. could something that small make

an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ auto sales pretty solid this year and sales of luxury vehicles eye popping. phil lebeau has the details and why it might be telling us something bigger about the u.s. economy. >> we are on the cusp of a milestone for the automakers. the industry will be selling more than 1 million vehicles with an average transaction price of greater than $50,000. right now, if you take a look at those sales of vehicles over

$50,000, the growth is basically between 50,000 and 100,000. those between 50,000 and 75k 32.7% higher and over 100,000 up over 17% this year. how do they afford this? first of all, most of the vehicles are done through leasing. 60% are through lease deals and seeing loans for 6 and 7 years for people buying the pricier vehicles. as long as they get the payment under $600, that seems to be the magic point. doing that, then they'll swing the deal through a lease or a long-term loan. and when you look at what's selling right now, it is not just mercedes, bmws. look at what's selling here. big suvs. in the 46,000 to 63,000, gmc yukon, sales up almost 50%. and escalade sales up 32%.

that's why when you take a look at general motors, a lot of people want to focus on the recalls and the problems of this company this year. but you look at the higher end, kelly, they have had great sales up there whether it's with these two suvs or the corvette. that's really where they have made a lot of money this year so for general motors, pushing the vfl higher paid off. >> boy has it. thank you. stay right there. what this report says about the wealth gap in america is a looming question. is this an issue on corporate america's radar? let's bring in fred hassem, welcome. >> great to be here, kelly. >> what do you think when you hear phil's report? >> this is very good news. people are moving upscale. people are going up. seems like the middle class is getting more confidence. and they're making purchases and i think it's also the cheap cost of debt which is driving this whole behavior. overall, this is very good news. >> many people said, though,

precisely cheap debt and rallying stock market to benefit the wealthier buyer here and doesn't extend to everybody else. don't you see it as evidence of a problem that not everybody's able to participate in? i mean, the sales of cars less than $50,000 pretty much haven't gone anywhere. >> very clear that there's a lag. people with capital have done better in the last five years than people who are making money through work. and that needs to be made up and i think over the long term it's going to get made up. we're just seeing this mechanism that the government has used, cheap money, which seems to have benefited those with capital. >> carol? >> it is amazing that the fed's mandate, right, trying to create jobs and i think instead of doing that they have firmed up a barbell. the people at the top ended up doing very well because the stock market's gone up. the companies gotten a pass. financial engineering and buybacks and eps getting rid of

well paying jobs and very ironic to have this discussion and to see the fed right in the middle of it in my opinion. >> fred is right about a couple of things but first of all people with capital are definitely doing better and remember 60% of america in investments through 401(k)s and much and we're willing to help the other 40%. they have the make a call. but the reality is -- >> go ahead. >> listen. that's what i do for a living. >> i understand. >> you know, the reality is with this change we've seen technology kill a ton of jobs. >> oh yeah. >> i mean, the's nobody working at the parking lots anymore. the toll place now i go, you just drive through. sends you a bill. we have these amazing innovations that are making it so hard for middle and lower class people or lower income people to gain and then they need an education system to bolster it. >> policies that crush the lower

income individuals in the country because they insist on higher and higher wages for people that don't have a necessary skill set and as a result they don't get employed. right? >> we just need a better education system for people. >> there's another basic thing. we have seen countries where all the income is equal and guess what. everyone is poor. okay? >> it's true. >> very true. >> just a last word here. >> you do not make people better off by taking it from one group and giving it to somebody else. you do it through inspiration, hard work, discipline, saving, through deferred gratification. i think this's the way you grow the pie and we have seen that in so many other countries and our country. so that's the way to go. >> all right. hope springs eternal. thank you. appreciate it. phil, interesting data on tesla here, as well? >> take a look at shares of tesla over two weeks and the last seven days in particular. we had the data team crunch the

numbers. shares down again today. this is the worst seven-day trading stretch ever for shares of tesla down 14%. and when you look at the price target, kelly, the stock is trading at 213, 214. all of the price targets moved higher and all at 277. big gap right now. >> still seems, phil, this is a correlation of oil prices, is it not? as they go, so does the incentive -- >> the momentum investor is core lating cheap gas with hurting tesla sales and that's wrong. it's a luxury vehicle. $93,000 is not worried about gas and the people that own a tesla, not one said i'm saving money at the pump. they don't care about that. >> they don't deserve a subz su. >> people buy it because it's good for the environment, too. >> and what about the environment in the last seven days? >> gotten colder. >> ross is saying it's the weather. all right.

we'll leave it right there. phil, thank you. ross, thank you so much, as well. it's been another great year for stocks. is there still value in the market? up next, third avenue management david barse is still defending actively managing funds. and tis the season to steal. businesses face big losses due to thieves this month. employees account for nearly 30% of the theft. what would mr. o'leary do to employees stealing from him? i have a couple of guesses but he'll tell you coming up. and cialis for daily useor you. 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.

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what's happening? >> not even tax time yet and watching shares of h&r block after the tax preparer posted a wider than expected second quarter loss on weaker than expected revenues. the stock you can see there down by nearly 7% in after hours trading and pointing out typically does report this kind of a loss because of the way that the business cycle works for taxes. come string, all bets are off as we head towards the all-important april 15 tax deadline, kelly. >> thank you for now. index funds have been hot all year and investors embracing

a passive management model. my next guest said active funds are the best way to go. joining me now is david barse. welcome. >> kelly, great to be here. thank you. >> let's begin with why people should have anything to do with active management after 2014. >> i don't know about passive investing in 2014. i mean, to me, they don't ever study a stock. they never read a 10k or q. they really know nothing about the company. all they do is study markets and you have to be an abnormal psychology to do this. >> it's not them saying i'm closing my eyes but trusting the financial system enough to know there's no point in paying for more than the stocks are currently priced at. >> we think that's a crazy way to invest and over the long term if you're not a fundamental bottoms up research oriented investor, we just don't understand that way of investing. >> are you making a distinction

of professional investors, do your research, make your career on that, fine. but for everybody else, the point is long term what matters is time in the market and index funds and time and again a good strategy and one that frankly often outperforms the active guys. >> the outperformance is a term measured against some period of time and to be consistently outperforming is using consistent as a dirty word. no one can consistently outperform all the time but a long-term investor and you do your work and you understand what that company does and how it makes money, how could you not want to invest that way and be a bottom up person? >> because there's no point in paying the fees for it yochlt you thattic this year, the market's up or take a given year when the market's up 8% to 10%. that's a big deal to pay. why would you give that up? you don't have to. jack vogel, vanguards of the

world exist to say you don't have to do it that way. >> we have outperformed after fees. >> consistently? >> well, if you take a 20-year time horizon. but let's look at the indexes today. did everyone in the indexes predict opec a few weeks ago and knock oil out of the box like it's didn't? >> didn't matter. s&p still rallied and the funds that made some oil picks have blown up. >> you are talking about one particular index. there are passive strategies for virtually every sector in the market police and people are driving into the sectors thinking they can out perform and crazy. >> you're saying people aren't passive but actively picking something like an energy etf making a concentrated bet perhaps unaware of the risks with that? >> yeah. vanguard has an index for almost everything at this point in time. fundamental, bottom up, do your research and find a security that's going to win out for you over the long term. that's our approach.

>> pivoting to 2015, what do you think wins out for investor in 2015? >> we weren't heavily weighted in energy or oil or gas and now trying to unearth from the many companies dragged down by when's happening is an invest goodment. >> can you give us any particulars? >> in the energy space? we love devon and apa which che look for them for us. >> out on a limb, i love it. thank you so much for being here. >> thank you. >> really appreciate it. winter holidays are the season of giving and how about unlimited pasta from olive garden and now they're casho loading the less fortunate and here's here to tell us more. not everyone has the spirit of the season. it's when businesses have things stolen more than any other time of the year and it's the employees that do most of the stealing. these stories when we come back

and be honest. if you've ever stolen from your job, any job even the high school one. go to cnbc.com/vote to weigh in anonymously when we come right back. financial noise financial noise financial noise

well, it is not all sugar plums and snowflakes this holiday season. it could mean a not so merry christmas for store owners.

kate ronlg earls had data and advice and we want to hear from you. have you stolen anything from work? go to cnbc.com/vote and it is anonymous and kate is here with why christmas is a popular time for stealing. >> that's right, kelly. obviously, added foot traffic and an increase in seasonal workers means boosted bottom lines but fall businesses and added risk for shoplifting. some surprising stats here, according to this year's u.s. fraud and retail survey of retail knowledge, an industry trade group, now, they say 11% of companies experience losses in stores due to shoplifting and more shocking here is that 38% of this theft is committed by employees. small businesses potentially face greater risks because they just have fewer resources to actually screen seasonal hires but that being said traveler says that they should not skimp on the all-important background checks for the workers and suggest here investing in

security cameras and setting up near your cash register and that you're there and watching them and finally team your new hires with workers you know and trust for training and let them know whether it's from external shoppers or by workers in the store that you have a zero tolerance policy and pursue charges to the fullest extent of the law. kelly? >> stay right there. a reminder to hear from you. let us know whether you have snuck anything out of the workplace and particularly interested in what kevin o'leary thinks about this. he's back for more. 52% of people saying are yes right now. >> i think really it's more like 80% or 90% if they're honest, and young in a hardware store or candy store and it's terrible because in today's world where security cameras and the ability to monitor in store locations is very low cost, it's not expensive to put in security systems, used the cost hundreds

of thousands, you can put in for $1,800 now. you'll be caught on tape. >> carol, have you ever lifted something? i'm sorry, kevin. >> i want to hear the answer to this. >> are we counting post-it notes here? if so, guilty. given the fact that people are stealing, one of the things to do is give them a raise in the minimum wage. don't you think so, kevin? >> whoa. wait a second. where did we get into that debate? absolutely not. get rid of the minimum wage. >> i'm being -- you should know that, kevin. seriously. >> that is -- >> one of the things that they say -- >> that's throwing meat in the shark tank. >> extra, extra meat in the shark tank. >> but let's get back -- >> i was going to say -- >> you should whack them if they steal from you and let everybody else know that anybody else does the same thing is whacked, too. it's worse. social media today, if you actually get fired for theft,

every other employee knows that. your probability of being hired is zero. and that's why i think you have to tell young people today starting the careers, don't steal stuff. the outcome is really bad. >> i think he encouraged candor of the viewers. 62% of people saying they have. >> i have a client with a retailer and a girl stole some stuff, jewelry and she posted the video online on facebook said these people stole from us and they came back to the store apologized and returned the stuff so, you know, social media works good in shaming people. >> and technology in general. one of the biggest areas of theft from employees is teaming up with somebody who doesn't work there. i think sweethearting getting a friend to come in and don't ring the things through or give them an extra discount and that means you have to be as a small business owner focused on technology to not see personally -- the person is personally stealing but are they making those, you know, special

kinds of arrangements at the rash register. >> i think the level of trust of mom and pops have of people hiring is so high and they need to realize maybe it's not best for the business to skip things like a background check. >> and my first job at pizza hut and they had a rule about how many loaves of bread in the back. because if you had ten loaves of bread, people far more likely to take it home opposed to three there. >> it is a crime of opportunity. >> a crime of opportunity. so you want to -- >> i've learned so much. 60% of people wrapping up the poll saying they have stolen from the workplace. don't steal! let's just generally make that announcement, as well. thank you so much. >> thank you. good to see you. >> so many it boggles the mind. thank you, phil. grumpy cat and it's a hot story online. even on cnbc.com. up next, we'll see what made the hot list. stay tuned. take on the challenge of trading options and futures...

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>> we were debating, stocks versus homes. that story prompting the debate, one of the most promising stories. managing editor of cnbc.com

joins us now. >> not just a popular story, but the number one story since we put it up about three hours ago. when you think about it, the home versus the stock portfolio. two big things there. the story touches on all the points you raised in your discussion and people are eating it up. the comments on this story are fascinating. people saying you live in the home, but what about the taxes on the capital gains. people are obsessed with the subject. jeff cox looking at correlation in the market. that's a fancy way of saying everything moving one way and the other way. it has been that way since quantitative easing. now that the feds stepped out, things are breaking up and not everything is going when some things are zigging and zagging. it makes it a stock picker's market and makes it more difficult and finally this one, we have two smart stories and one stupid one.

>> is this about grumpy cat? >> grumpy cat. >> it's a picture? >> a waitress had a grumpy cat and a friend of hers put it up on reddit and it became a sensation and she got licensing fees and people putting it on coffee mugs. she made $100 million in two years. they put cold water on that and said not so much. she won't say how much she made, but it's in the millions for a grumpy cat. >> i am familiar. i confess. thank you, alan. i top the see you in that hat. alan is back at headquarters. remember olive garden's $100 pasta pass that started in september? our next guest bought it and used it to feed the less fortunate. that high carb feel good story when we come back. begins with the cloud. this is "titanfall,"

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>> so we just talked about employee stealing. here's a story to give you joy for the holiday season. in september, olive garden was selling never ending pasta passes for $100. man decided to pay it forward. he bought and uses it to feed the homeless along with his friends and family.

he found out you can use it for take out and he fed over 100 people on the streets of salt lake city and the surrounding suburbs. matt, it's great to see you. i love that you are doing this. tell us about the experiences you had. >> first of all, thank you so much for having me. this whole thing was incredible from start to finish. the entire night every night pretty much the only thing i would think about is who can i give pasta to? it was unbelievable. my favorite one was one lady took pasta, he was a homeless woman. if anyone has seen the video, i give it to her and the first thing she said is thank you, i will share this with my friends. that put everything into perspective. you don't have anything and you are giving this to your friends. it was one of the neatest things i had ever done. >> i want to know how you came up with the idea. it's an ingenious way to pay it forward using a promotion that

so many used for themselves. what made you think of using it in this way? >> originally on reddit, random acts of pizza was big. i had done that a few times and there was no possible way i can eat all this pasta. how cool would it be if i did random acts of pasta. i could show up at someone's house and say here's a random act of pasta. >> did you encounter trouble and did people turn it away? what were the negatives if any. >> the only negative is no one is ever home ever. you show up at someone's house unannounced and they are never there. some nights i would drive around for hours and lock for people to give it to. that was the hardest part. everyone was happy when i gave them the food. >> were you looking for homeless shelters or just dropping it off to neighborhoods? >> just like friends and family

and stuff. i could never find any homeless people. mostly friends and family. >> that's a big statement for where you live. it has to be a good economy. >> matt, it's a great thing what you are doing giving food to the homeless. i encourage people to do that with your leftovers. take them and give them to people. where i live, there is a lot of wealth, but also a lot of homelessness. it's a great thing you are doing. i hope more people stick it to olive garden. get as many passes as possible. maybe we can feed a state with olive garden. >> there were people who took issue with you videotaping it. >> i would say listen, how many millions of people have seen this video now. i have gotten so many people that sent me e-mails and messages saying it inspired them to do something. how cool would it be that everyone did a random act of

something every day. that's fine, granted i only videoed one day that we did it, but how cool would it be if this gave someone else the idea to do something nice and change the world. it would be an incredible thing. >> what's your day job, matt? >> i'm in the beauty business. i sell beauty supplies. >> you are familiar with going door-to-door. >> random acts of making people look really pretty next. >> i go to salons. random acts of making people pretty. i like it. >> thank you so much for being here. great to see you. >> thank you so much. i appreciate it. >> we hope the viewers are inspired to do the same. with a couple of seconds left, we will give ross the final thought. >> i think this is a great time to be an investor. you need to invest in the stock market and look at the core holdings that you have and add to it. with interest rates the way they are and the economy doing well, it's just easy money. >> i thought you were going to

say buy apple. >> go long on unusual looking felines. grumpy cat if you are into alternatives. >> thank you very much for being here. fast money coming up. hey, sarah, what's on tap? >> we have dennis live in the flesh here at the nasdaq site to talk about the bear market and oil going deeper today. >> we want to know how much deeper. over to you guys. >> thanks very much. fast money starts now live from the nasdaq market site in time square for melissa lee. tim seymour and big moves in the market today. energy getting crushed. mcdonald's hurt by the strong dollar among other things. apple dragging down the daz nabbing and the momentum names getting hit hard. we are talking about go pro, twitter, tesla taking it on the chin. we will tell you what to do with all of those names coming up. we have to start with a move in oil.