ty, over to you. turning out to the be the most rugged week of the yeef. we'll see how it proceeds over the next two hours wrapping up another -- a rough week in the market nap does it for "power lunch." >> watch the ten-year note. "street signs" begins right now. have a great weekend, everybody. well, stock, seeking to end one of the worst weeks of the year, oil taking another tumble. hello everybody. i'm brian sullivan pap huge hour ahead hitting every angle of the week for stocks and a full impact of are the dramatic drop in crude oil. >> hello. continued confidence jumping to an eight-year high. gas prices, and jobs. the market is smoking in the corner, big time. dow down as much as 240 at the lows, it's come back a bit. currently down by 167 points, but in one week, folks, all

three indices wiped out five weeks of garins. energy sectors down about 26% from its june high this year, and brian what do you think is the worst wormer in the dow this year so far? >> chevron. >> absolutely. down 18%. >> i know that because of the graphic that says chevron is on our television channel. >> not much of a mystery. market reporters in place. right to jackie deangelis, live in the oil pits. what is happening with crude? >> reporter: seeing steep losses, not as bad as earlier in the session. down about $1.87. session low today, $57.34. next level to watch is $56.12. haven't seen it since may of 2009. still almost a 4% decline on the day. you mentioned gas prices when you opened up. aaa saying the national average for a gallon of regular now $2.60. we were looking to see $2.50 by the end of the year. but saying we could see $2.43 by

christmas day. of course, important to consumers. also tells me look at the spot prices in the marketplace, because they are leading indicator where oil prices are going. look at canadian select crude, $41, $42 a barrel. and if that's an indication prices are headed down. traders told me when we broke the $60 level, that's it. when the technical momentum piled and an we could see buying on the dip action next woke but they think the prices are going lower. the question that i'll live you think here is in 2015, is $50 oil the new $100 oil? >> thank you very much. jackie deangelis. over to bob pisani at the nyse. coming back a little towards the close of trade. bob? >> a crummy day. not a horrible day. show you the market, an idea what's going on, mandy. advance decline line 3-1 declining to advancing. should be declining to declining. not the other. not a great day but really bad

ones this week. worse than that. borrowing from the heavy side, heading towards 2.5 billion shares. 3 billion in a single day. . 30 new los is a lot. the most important thing to show you. over 20 today, very unusual. the cash index, current price, is higher than futures contracts out in december, january and february. that usually doesn't really happen that much. now, that's an indication traderses are in short-term panic for the next few weeks. why is this happening? fell you what i think is going on. most traders have gains for the year. most figures, only 12 trading days left. i may not make money going into the 12 trading days, but a chance i could lose a lot of money. that means panic. that means traders going out saying, oh, my heavens. i have to buy protection now. that's exactly what drives the vix up. meantime, the s&p. a little overblown. only down 2% in the month so far. maybe 2.3%, and the fact that there's such a panic reaction as

you can see by the vix suggests traders really want to protect the gains they've had this year. back to you. >> bob, thank you very much. go now to chicago and rick santelli. are the folks saying, oh, my heavens! the words might stronger in tone. some people, are they dramatically caught off guard by this slide in oil? >> tell you what, maybe caught off guard to the -- sheer breadth of it, because all commodity repricings are dramatic. most of the people on the trading floor have the right positions on. just consider on october 15th, we had lower yields across the board. we had an intraday low of 110 for pfizer, 152. 267.5, at 276. so been there, done that. so to them the issue is, if they see anything, any cracks in

stocks they like to jump on it, think the end of the year anti-window judging will play in their favor. they know the equity markets of the moving force of treasuries, add in the nervousness about some of these projections, around 2016 in china and playing it right. the real surprise may come in, if you're out of bouncing stocks oil stayed here. that's the debate they're having. what would rates do then? many think if stocks jump 300 points, oil stayed here, rates would pop back up a bit. a lot of moving parts but not unexpected to a lot of seasoned commodity traders in chicago. >> rick, a technical look what's happening with the ten-year yield. hitting a weekly drop in over two years later in "talking numbers." as oil prices hit new lows, multiyear lowers, stocks on a downward spiral lately. you might be wondering, how does oil's drop impact me and my investments and what should i do now? let us try to answer those questions for you.

bring in brian, managing director with wells fargo and steve, chief investment officer in equity management. steve, first to you. how does oil's price drop impact me and my investments and what do i do? >> well, i think there's a real opportunity here. i think the drop in oil has affected a lot of equities that really aren't tied to oil. really aren't tied to the price of oil. look like in master limited partnerships, lng shipping companies, which will have a big business in front of them over the next five, six years, absolutely obliterated. down 30% and 35%. realistically, the price in crude oil happen no s no value business. attractive opportunities in names that are down but aren't truly impacted by crude. >> hear you, but i'll push back a bit. crude oil affects everything. packaging products, roofing materials, obvious are gasoline. crude oil is nearly in

everything we manufacture. plastics, i mean it's got to have an impact on everybody? >> well, it certainly does. a good impact on many companies. back to my shipping examples. ships obviously you'll fuel to move this lng across the planet and their costs are going down. you're absolutely correct. crude hits everything, and then a lot of things that are a advantageous because of the cost of fuel, plastic, many teerms wi materials will be lower, for the foreseeable future probably. but there are many stocks 0 ut there that have been killed, absolutely killed because for some reason they've been associated with being negative, because crude's going up when we quite frankly it's the exact opposite. find the name, it's a great opportunity now. >> of course, those that have been associated with energy. those that are actually directly related to energy and they have been killed. brian, are you a buyer of the energy patch at these levels? hearing about increased insider buying at certain energy companies. >> right.

mandy i think first, let's remember, this is a supply issue, not a demand issue. on the global macro situation, take into account we've seen a lot of supply coming into the market over the past years because of tech noth and enhanced drillinging techniquesd didn't see opec blink on thanksgiving with respect to taking down the production numbers. this is a supply issue. first. the global growth story remains intact we believe at wells fargo that's an important part of the argument. secondly, looking at energy, we like the cyclical areas, advocating buying those on pullback. looking at energy specifically, not an overweight there now but i venture to guess if you started the year equally weighted energy given the underperformance year to date, probably underweight now and we suggest getting those levels back to at least market weight energy given this pullback, but also look at 134 of the or lehr arguments i don't everybody weight consumer discretionary, lower energy prices mean more money to be potentially put

elsewhere, if you're not paying it at the pump. that's another avenue to explore in this type of environment. >> and the next perspective, steve, why is the u.s. market been so relatively stable compared to many other markets around the world during this recent oil rout? >> well, i think that there's kind of a risk off trade going around here in the commodity markets for sure. in europe, with the russian/ukrainian situation. greece is wobbling right now. you've got an election in japan. there are a lot of problems internationally and a lot of concern about that. america's seen as the deepest, most liquid, strong e markets. i think the dollars tend to flow to america where there's problems around the globe. >> bottom line, steve, for your clients. do they need to change their investment strach ji fundamentally because of the drop in the price of oil? >> well, i think you have to stay away from oil and gas stocks for a while. for the foreseeable future. for the next four to six months, until the rig count drops and

u.s. production drops which is probably what's going to happen here and then revisit that. i think you need to underweight energy and look to put that money in some of the opportunities i was talking about earlier prp i think that's the main takeaway from what i'm saying today. >> jim paulson, brian, the wells capital management said two days ago this could be a multiyear spectacular buying opportunity for these oil mains getting walloped. positive mandy's point and her question to you, should people be buying oil stocks at 30%, 40%? 0 molecule driven society and will be for some time? >> looking at energy, definitely should be part of a portfolio and more importantly as well, looking at this, it's easy to get good on an economic

growth perspective given the fact you still haven't sorted everything out in europe, still seeing fears of slowdown out of china as well. laying that all in together, yes, having energy is part of an al low vative portfolio, clearly the case. lawyers, recommending -- >> not really answering the question. at what point do you see a big green light brian saying, okay. we might not be at the bottom for energy stocks

stocks. a lot of other ways to play this. like the discretionary names, look in industrials as well as other corollaries ways to play that. >> brian and steve, a pleasure. mandy, before you -- a quick reminder. got to remember, it's not just cheaper oil means cheaper gas we spend more money at restaurants. we'll talk about that later. the amount of debt on the oil company's books, a couple hundred billion a couple years ago. now $3 trillion. second derivative imfoocts a story we haven't found than have not come out yet. i hope i'm wrong. and stock plays in the oil slide. maybe the opportunities, also, in the aforementioned restaurant business. and also, minutes away from the oil market closing for the week. what an historic week.

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we like it when you tune in every day. monday's a special day. aisl for bill. what will it do to the bond market like we know it? surged the last few years

another story. tune in monday. not watching now, you won't know this. >> we will be watching on monday, though. won't we? and continuing to fall, down two pennies overnight. aaa says the current average for a gallon of regular stands at $3.60 even. that is, folks, 65 cents lower than a year ago. that's what we were paying a year ago. last year's price, $3.25 and sitting on the lowest level since december 2009. goes back a fair way and by the way, this now marks 78 straight days, straight days, brian, of declines at the pump. >> hmm. good news. thank you very much, mandy. all right. the second appetizer, get another cocktail, because gas trieses are down. mandy just told you. no industry may benefit from the lower gas prices as much ars the restaurants. they are seen by many as big winners, but who might the big winners among the big winners be? bring in bob darington.

wonderland research. maybe order up a second cheesecake. who should be the biggest winners in the restaurant space because of this drop in gas prices? >> you know, there's a lot of names, and this is one of those situations where, you know, brian, a rising tide literally could lift all the boats in my view. the names we talked about before that are continued like companies with really strong management teams especially with reasonable check averages, which i think will continue to bode well for them into the new year. >> bob, let me jump in quick. i want to ask you directly. i'm sure you talk to these companies on a daily basis sometimes. have any companies you cover said, bob, our average check is up in the last couple weeks, and we can tie it directly to lower gas prices? >> has anyone said directly? no. first off, you know, we're in the quiet period for a lot of companies coming into the end of the year, but if you look at the's recent third quarter trend, and coming into the end of the year, a think there clearly will be some lift to the

check average from both menu pricing and from mix. from the fact that, you know, customers may order another appetizer or another it adult beverage, or maybalities better cut of steak for dinnertime. >> okay. and a look at the stocks we're talking about which are they? >> the names i like. coming into the new year. again, with really good management teams, jack-in-the-box, buffalo wild. red robin. and bj's restaurants, all four will be really good performers coming into the new year. >> and you would like those? say buy all of those stocks you just mentioned, bob, even if gas prices go up? >> even if gas prices go up. i think they are better situated, mandy, if gas prices do go up. >> uh-huh. >> is there any that looks bad to you? you gave us opportunities there. we appreciate that, jack in boxx, bj and the others, sfa away from or get no benefit or maybe somehow, some way we don't

know are hurt? >> you raise a good point. what i'd say, what i'm cautious around are higher-end check average restaurants at this point. normally, there's a great time of the year to go out and you know, eat at a really fine dining restaurant, you know, get a big steak and bottle of wine, but given what's going on with potentially oil and gas prices, and what may happen ripple into the texas economy, there may be less celebration this year. we may see softer sales at some of these higher-end restaurants. you know, especially those located down in texas. >> i'm glad you raised that. going to be my question, bob. in the states that are heavily oil dependent, alaska, texas, north dakota, et cetera. if we exposure to texas specifically.

now, names within the report that we put out this morning that have a higher percentage geographic exposure to, one, texas, and, two, california, those are the two highest oil producing job-related states in the union, clearly bjs and jack-in-the-box and sonic have heavy exposure within those markets. so there is a latent risk factor. >> you don't cover dell frink oh's, do you, bob? >> i don't. >> dell frisco's. it is texas based, a high ticket, big retail?

>> what do you need? she's got the story there. back to you, mandy. >> i couldn't have said it better myself. >> you interview her. ask her questions. >> an adult beverage. >> let's find out. >> so strong out there now with the consumers. it was in november. we've seen

and right now, gas prices, which was only about 50 buck as month, and so when you see benefit of about $50 a month, it matters. maybe it matters more to quick serve restaurants, maybe it matters more to fine dining but it matters tight retail. >> i hate taking the words off your mouth. we've run out of time. you like players like amazon and

macy's, and others, and jcpenney. >> a lot moor re to talk about. mandy ran out of words. >> tell me what you said in the commercial break. jcpenney, mouthed something. two words. >> i'm going to skip what i had to say. >> it wasn't, how are you, sullivan? >> nope. >> it was, what's in an adult beverage? >> exactly right. >> i thought so. >> there is one, oil-related stock that is getting hurt the least. in oil prices collapse. we'll tell you who that is, coming up. first, the origin of sony's massive hack may still be very unclear, but one 24ithing that clear. it's going to cost sony a lot nap story is next. whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you

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see car insurance in a whole new light. liberty mutual insurance. it is still unclear whether that huge sony hack was done by

a disgruntled former employee, revenge by north korea, or just a ticked off bunch of computer types. nobody seems to be sure at this point. could be even a combination's all three. one thing, though, people are growing sure of is that sony may be on the hook for any damages caused by all of that leaked information. eamon javers joining us with a story that bip the day seems to get worse for sony. >> it's fascinating to look through the e-mails and see the massive business implications of this hack for sony. talking to lawyers across the country saying a potentially massive legal implications here as well as lawyers look through the cyber security law and figure whether or not anybody has a right to sue sony in the wake of this hacking attack. some of the lawyers we talked to said that the biggest potential threat to sony here may come from inside their own building. take a listen. >> sony's biggest source of concern now is the fact that these hackers were able to get to information about almost

50,000 current and former employees. that information included social security numbers, and all sorts of personal information. they even got sylvester stallone's social security number. so you're going to have a lot of employees who are very upset over this hack, and could be considering legal action. >> now, how fast could this come? experts say there might actually be two waves of legal action here that sony could face. take a lib to that as well. >> either in a week, two be could weeks. i think there will be an employee class action, former employee class action that will happen sooner. the corporate lawsuits, business partners, are going to, you know, investigate further and better understand their losses and their damages, and i would imagine those suits may follow in the next few months. r. >> brian, you heard about former many employees i talked to lawyers developing the story. they all said among the

employees affected, the folks who still work at sony might be the least likely to sue, might be the least likely to have grounds to sue, but former employees, particularly anybody who feels their reputation was damped, their ability to find work in the industry, that is the group to look at for potential lawsuits to sony. we called sony for their take on this and they did not respond. >> the story continues. thank you, ayman jeamon javers. finding real opportunities pap diamond in the rough. it's up next. the final crude trade is about to cross for the week. headed like to the oil pit. how low will it go? will this be the first close below 60 since spring of 2009? we won't know for a couple seconds. we'll te you in a second. stick around. [woman] can it make a dentist appointment when my teeth are ready? [girl] can it tell the doctor how long i have to wear this thing?

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will thank you. , sir? ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. and often even more. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $89.95 a month. comcast business. built for business. welcome back to "street signs." i'm john harwood in washington. president obama at the white house a few moments ago in a meeting with aides on response to the ebola crisis in west africa. spoke about the budget bill that passed the house last night but divided fellow democrats on

capitol hill. the president justified the compromise saying it includes many priorities he shares. some provisions he doesn't like but that's what americans voted for with divided government. herein the president. >> this, by definition, was a compromise bill. this is what's produced when you have the divided government that the american people voted for. there are a bunch of provisions in this bill that i really do not like. on the other hand, there are provisions in this bill and the basic funding within this bill that allows us to make sure that we continue on the progress in providing health insurance to all americans, to make sure that we continue with our efforts to combat private change, that you're able to expand childhood education, making a meaningful difference in communities all across the country, that allows us to expand our manufacturing hubs, by contributing to the growth of jobs and the progress

that we've seen in other economy over the last couple of years. >> now, that bill is now being debated on the senate floor. of course, it was negotiated by the democratic majority in the senate, which mean es it's on track to pass, either today or over the weekend, and it will include that provision sought by some on wall street eliminate one small regulatory restriction from the dodd-frank act, guys? >> thank you so much. a crazy week for oil. multiweek lows almost every day and the price is just about to settle for the week. let's get straight to jackie deangelis at the nymex. >> hey, mandy. a crazy week for oil. wti down more than 10% on the week. brent as well. shake out around 57.80. so under the $58 mark and interesting is seller pressure at the close especially going into the weekend. traders not wanting to be long wti going into that weekend, but

that selling pressure coming in the last few gdays within minuts of the close. oil prices down 40 percent. staggering. telling me $55 probably before the end of the year nap 55 level is a key support, though. you could see buying on the dip at that point, but they are looking towards to 20 15 saying they see $40 oil. we talked a little about gas prices but it's amazing. aaa saying that consumers are saving $375 million a day on gas, because of the drop we've seen. since oil you know, was higher this summer, of course, we're looking at a national average of gas right now $2.60. a lot of people think we could be under $2.50 before christmastime. back to you. >> wow. jackie, thank you very much. so last week on this very show we showed you a chart of oil and the dow, and how they tended to track each other. now, that does seem to be playing out the last couple of sessions. of course it is, though, what

happens now? iaf advisers, carl, answer the kbep what happens now? >> a relentless bear market. since the beginning of september only a half dozen times or so oil has been able to trade up two days in a row. relentless. at this point i don't see a real slowdown in the u.s. oil production, even though you -- >> sorry to interrupt. what's happened? a guess on earlier today said it's a demand issue. some people say -- >> i don't really -- >> no, no. supply issue. what can cause the price of oil to fall 50% in four months? >> unbelievable technology and u.s. shale. last week at 9.118 million barrelals per day. multimillion dollar high. it's phenomenal just how well the companies have gotten together and learned how to extract oil and natural gas out of shale deposits. that's a supply, and while demand growth has been probably

less than anticipated, it's still growing. not like we're kron tracting global oil demand like in '08, '09. much more a supply issue accompanied by demand growth that's been not what was expected whrnlgts do we say supply starts to correct itself? right? probably very painful. already starting to hear about certainly energy related companies having to look at either cutting back or postponing cap, cutting jobs, god forbid. at what point, therefore, will we see lower production, lower supply and prices start to come back up? >> i don't see it anywhere in the first quarter. already plan, set. a lot of companies posted guidance. they're going to be reluctant to lower that guidance. and they're probably going to let other people step out first to see how the equity markets respond to the first company that says, you know what? we're both cutting capxand lower guidance and by the way, our production will be lower than last year. see what happens with equity prices. probably see a lot of people

reluctant to be the first person to step out and do that. >> carl cooper, pleasure to have you on the show. take care. >> thank you. many of the smaller more highly leveraged oil companies have been slammed lately. you know that. did you also know many of the biggest of the big are also down? well, big. what do these it dismal moves of the past month the international companies as well. brazil down. u.s. based marathon down 21% and 20% as well. however, take a look at the biggest of the big. exxon/mobil, say this, mandy. down only 8%. i know that's a lot, but it's not nearly as bad at the rest of the groups. one wonders is exxon moan mobex mobil better hedged? market seems to be saying, yes. >> and so far in the dow, we just mentioned, worst performer. maybe a little -- i don't know.

taking the pain more than exxon? i don't know. we can make extrapolate that, get an analyst on the show and ask that exact question next week. >> can take the pain more than chevron? >> yeah. >> over to you, chevron. five stocks you may want to look at for opportunity. yeah, still doing st"street tal >> talking number, technical and fundamental side. stay with us. my name's louis, and i quit smoking with chantix. i had tried to do it in the past. i hadn't been successful. quitting smoking this time was different because i got a prescription for chantix.

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it is a weak end to the week. the dow down 212 points now, but oddly, six dow stocks high perp mcdonald's, nike, microsoft, walmart, disney and cisco. >> problem is -- >> off the top of my head. >> problem is, outwapged by those looking for the down side. talking of which, boeing and caterpillar, two stocks both down week to date. over the past five trading days down over 8%. look at these two and think, what's in common? number one, both involved in nationals hurt by the stronger dollar and boeing, pointsed it out earlier. think about those airlines in the gulf nations, like emirate, for example. do you think they'll order a

whole pile from boeing in the future? >> gave him a ring. two things. petra dollars could impact slowdown in big jets, also, didn't think of it this way. airbus and boeing selling big jets on this whole fuel economy thing. 787, 320s. >> getting more miles out of it. >> if jet fuel prices also collapse. >> undermines the whole selling point. >> to a point. maybe you go the different air. cheaper plane to purchase, but more expensive to operate. just a thought. just a thought. >> okay. time for something we do every day at this time. and on stocking you need to know about today. first up, a very interesting oil-related call. >> this is important. okay. janey montgomery cutting rating on costco to neutral. becoming a head wind. hearon the thinking. tail wind, yes, initially, but if gas prices moderate, it has the reverse impact on the company, and consumers.

also concerns of the u.s. dollar. $133 target. five and change below where the stock is now. interesting call. >> very interesting. this one a really big performer week to date on the s&p. staples, big upgrade from bank of america merle link. >> and hopping into a buy from underperform. dipping by a newt trautral ratim 20 to 10. upside in, stlf. >> and pharmaceutical an upgrade. >> into a buy. like the cost savings plan there. target goes to 65. 14% up side from the current price. >> and down graded. b.a. daviden. >> underperform. afraid to say it. mostly evaluation call. target,s 40ds a share. stock the ap $45.75. $5.75 below current price. friends, that would be a sell. >> and under the radar name of the day. it is i dream -- not of genie --

sky pick. >> yes. the ticker, and china based game. as 24ds bargain. stocks just under $17. sthips a stock by the way owned by star hedge fund manager chase coleman. keep your eye on dsky. i didn't mean to do that. now to "talking numbers." a daily look at a technical perspective. today not a stock from a technical per spect beive, the treasury note and yield leaded for the biggest drop in years. saying something these days. on the technicals, and option pick on the fundamentals. todd, begin with you. you're in the house today. you and i and mandy talked about it earlier. you think the yield goes lower from here? >> i do. >> make the case. >> i actually do. we're going to bring up a -- >> oops. where's your microphone, todd? >> down there. >> do you know what we'll do? you crawl under the desk. okay. this is whans, todd, when you come to cnbc. real tv. live.

>> the fundamentals. what are you looking at? fundamentally, where does the yield go from here? >> i mean, i think the only people that don't know rates aren't going anywhere is the federal reserve. let's look at what's going on. the dollar is strong. commodity prices are softening. there's zero wage growth and all sorts of uncertainty out of purp sthips really the wrong environment to begin a, any type of increase in rates. so i think over the next six months we're looking at a creeling in yields around 2.3% and in the near term, if the s&p 500 keeps having this selloff and the vix goes higher, i think quo see the ten-year yield test the lows on the year about 1.86 and i certainly think we'll test 2% before the s&p starts recovering and the yields start to ease a little higher. >> 1.86? pretty much the target of our good friend who so far every time on our show predicting whether ten-year yield is going, he has been smack-on right.

>> he has been. got your mike situation okay? >> i'm fine. >> under the desk? >> a long way down. got so excited about the call i kind of jumped out of my seat. listen, i about sluchtlabsolutey friend. the low-term yield is down. show you a chart back to a time when everyone around cnbc was wearing ugly sweater day. this is where it goes so far back, these swerts are actually in style and fashionable. the yields have been in a downturn since 1981. smart enough to know but not pick this move. a well established down trend. going to the next chart. look at the little recovery we've seen off the lows. there's a short, little uptrend line that has just been broken right about the 2.1% and should begin hiding lower. one quick note. it's not a bad thing to see yield moving down, bond prices moving up. people don't realize this, but actually there's only two periods in time where the bond

market been trading inverse to stocks. that's in 2000, and 2008, when we've had stock market meltdowns. only a deflationary time do we see stocks and bonds trading adversary. over 30 years they trade together. we can see stock market and bond market rally. >> interesting. thank you very much to both of you for joining us. stod todd is one of those few people i see wearing a christmas sweater without irony. >> viewers, you don't know what we're talking about. basically 45678 the people told to put on their ugliest sweater possible and i don't know where they found these things. they make ugly look ugly. >> a lot made themselves. >> got to go. >> that's okay. pick up the online edition of "talking nushs." the dow wiped out of five weeks of gains with one week of losses. sliding back down here, brian. back down over 200 points. low of the day, 239. with that, the points to watch. expert advises. [ male announcer ] your love for trading never stops. so open an account with schwab.

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stocks continuing downward trend. we are down over 200 points right now. 209 on the dow jones industrials average. let's bring in two guests.

rod, first to you, your clients i'm sure calling you, e-mailing you. what are you telling them? >> well, first of all, with regard to the u.s., what we're telling them is this is part of the new normal for markets in 2014 and 2015 which is smaller upside and more persistent corrections and that's because we just don't have the earnings power that we had in 2013 or the multiple expansion opportunity to really drive markets into a high upward momentum market. as far as oil goes, you have been talking a lot about oil, i think it's a culmination of recognizing the potential for a really attractive long-term entry point and balancing that with the fact that this has become an almost mania-like momentum trade. and so, we're going to see enormous volatility in the price

of oil. what amazes me is how quickly oil companies and oil analysts have built in current oil prices into their forecasts. >> yeah. kevin, listen. this is why you and rod are paid the big bucks, right? your teams are here to figure out for those of us that don't do this for a living what this massive drop is going to do to sectors, to stocks, to bonds, to corporate earnings. what have you figured out? >> yeah. i think what you got to do is really break it into pieces. first piece of this is reflected in a barometer that we track here and created at washington crossing advisers and what we have seen is that globally there's been a deceleration last few months in the braarometer a not surprised to see growth slowing in china creating a dislocation in a market like oil where you have got significant ine lasties and getting the bis swings in the oil price but

prospectively the next stage is to see how that lower oil price translates into a demand stimulus in the months ahead because it's not going to fall equally on all parties. there is -- >> you know what, kevin? okay, i'm going to be yelled at for interrupting. why do we automatically assume this is going to be stimulative? there's got to be a negative impact. not just to the oil companies on this. a huge part of the job growth and gdp growth in america last three years is energy investment and could stop or slow. >> could i take this? >> that's what i was about to get to. it is not evenly shared. obviously, from a consumer's point of view there is a bump in terms of final demand x oil and then on the other side of it the supply side there's issues an ennot just about the oil producers in the united states. it has to do with somvereigns ad tied to and dependent upon a high price of oil and seeing risk premiums begin to blow out in some of the emerging market

countries where you have got these countries where their fiscal situation is very much tied to oil revenues so it's very uneven and why in the near term you get chaos and eventually i think supply and demand equates and settles out one way. >> thank you very much for your thoughts. we'll get you back on shortly. >> thank you. >> thank you. okay. coming up after the break, mandy and i will give you our stocks of the week. a lot to choose from. who will we pick? >> you have to wait and find out. good tease. and unlocks the door when i forget my keys... it's just that... i feel like he's always watching us. yes, that is why we should use wink. ...look, it can monitor and manage our house but it won't start to develop human emotions. hey buddy. control your entire home with one simple app

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introducing relay by wink it's like a robot butler, but not as awkward. dow wiped out gains from the previous five weeks this we can's. each week on friday we pick out the standout stocks. mine united technologies. ceo out. market likes the new ceo. >> down just a little bit today. my stock of the week is diamond offshore drilling. up over 14% this week and really interesting providing contract drilling services to the industry and it is outperforming the peers and also a lot of insider buying going on. still, down 40% year to date. very quickly, brian. the vix, as well. a massive jump so far this week. i think 76% for the week. largest weekly gain since may 2010. that was the flash crash. all kinds of things going on with europe, as well. >> yep. by the way, monday bill gross right here exclusively on this show an talking to him about the departure of pimco, the outlook

for the fed. it's going to be a great interview, i hope. >> it will be. >> do the best we can for the viewers. >> believe! believe. i can't wait. >> thank you. >> thank you. we'll be watching. thank you for watching "street signs." closing bell is next. welcome to "the closing bell." here at the new york stock exchange. >> i'm bill griffeth. you can once again it's all about oil, the price of oil settling below $58 a barrel a couple of blocks from here and taking a toll on the stock market down more than 200 points. >> down at the low 239 and off the session lows and 1% slide and the dow down 182 points. s&p 500 also down .7