thank you, steve, as well. catch "shark tank" every tuesday and wednesday starting at 8 p.m. on cnbc. brian is going to be back tomorrow. >> returns from texas from the permian basin. >> yes. thanks everybody for watching -- a funny photo of him. looks nothing like him. "closing bell" starts. welcome to a very special edition of the closing bell, i'm kelly evans. bill grieve lieutenant off today and we are live from the yale summit from the waldorf astoria at midtown manhattan. stocks are rocking again today, incredible two-day snap back rally, get into that and full roast other of all-star guests in the next couple of hours and that includes steve schwartzman of the blackstone grourn the former ceo of barclay's bob diamond, now the ceo of atlas merchant capital and legendary investor, jim chanos, co-founder of the ex-change brad cat sue

yamma, flash boys fame, claim the market was rigged and former australian prime minister, kevin rudd. plenty to discuss with him, from the siege in sydney to the massacre in pakistan and chapter in signer hacking in light of sony and reported likelihood north korea was behind all of it before we get to that let's begin with the markets. in fact, an historic day lack agent nearly 300-point gapes for the dow, second session in a row to put that in perspective we haven't seen back-to-back gains of this point magnitude since december of 2008, same for the s & p 500, add 3 points today on top of about a 30-point gain yesterday. again, that's the first time we have seen that in more than five years. get into this market rally and closing ball exchange with the nasdaq also up nearly 2% again today. ron mullin camp us, jim lowell from advisory investment, hank smith from haverford trust and

very own rick santelli. welcome, everybody. jim what do you make of this snap back? too much too soon? >> no not at all. hard to keep a good market down so long as the u.s. fundment architecturals remain generally upbeat, pointing toward slow growth, not no growth. i think this rally may hit some bumps in the road but i continue to think that gains remain the rule, not the exception to it. unless we see some major impingement, maybe russia collapsing in upon itself, i think is a market still poised for better days ahead. >> ron, do you agree here is this all because of the fed? is it is an ta zplaus what's going on? >> it gets interesting. we always look for good companies at cheap price and cheap prices are getting a little hard to find. but there are so many macro things going on, whether it is the fed, the price of oil, that on a short-term basis, i mean, on basis measured in days, yesterday the day looks a whole lot like algorithmic trading and shortcomings, we don't get too excited about the day to day other than gives a chance to buy

the things we think reach full prize to -- excuse me, set thing wes reach full price and maybe buy a few others that look good to us. so the day to day we don't worry about too much. >> ron, are you -- are you bullish on this market in 2015, ron i'm hearing caution if you think this is just programmed buying? >> i think the gdp about 2% this year, 2% gdp, corporate revenues four to five and corporate earnings 7 to 8 much can't do thain definitely. 2% gdp, think the market is priced do 7 or 8, but 7 or 18 going to be lumpy while you get there, going to be very exciting midsingle digits percent. >> hank smith, what about you? is this now going to be a pivot after this sharp snap back here towards a 2015 where maybe the any is what's strong and market is what's relatively weaker? >> yeah, i agree with steve liesman earlier that we shouldn't have had this 800, 900-point drop at all.

the fact is the u.s. economy is gearing to a higher level called a 3% growth environment compared to 2% growth. corporate usa is doing fine. profits are good. balance sheets are strong. the fed is still going to be accommodative, even after the first rate hike and there's going to be accommodative for a long while. so, it pays to be bullish, just like it has been for the entire past year, pull backs and corrections are going to be short and shallow and investors are going to take advantage of them and we think that environment continues into 2015. >> rick, cropping here, but one interesting feature of today's rally is that it's happened, even as oil prices have weakened again, a positive development, correct, if it means that ultimately, equities run hinging or not as correlated to the declip in oil prices because it looks like that is going to continue. >> no, i don't think so i think

it's all about the fed. let's look at the facts, okay? and i agree with all our guests shall doesn't mean stocks can't go up. they will. doesn't mean you can't find positives in the economy. they are there. but yesterday' locker the dow 17,069. today's current high 17,666, 587 points. and what happened between yesterday and today? we got a real lousy philly data, we had mixed data, we didn't have anything. the fundamentals didn't change in a 24-hour period. it was the fed. now, we could argue about whether it should have gone down before happened or any adjustments but the reality is the catalyst to much of what is good for stocks comes from the federal reserve and think that's pretty says to understand, you read the statement, they are hemming and haug and seemingly trying to come up with every were they can to kind of postpone the inevitable and that is, of course, normalizing rates to a level appropriate to the current economic activity we

have. >> you agree with that jim and what are you guys buying here? are you going into the energy space at all? we have had another 4% decline in oil, even as the dow is at 319 now. >> we are underweight energy right now i think patient money will be smart money in the oil patch. we have seen history basically dictate very sharp selloffs in oil prices before and then long, slow, good rallies back, but we are not -- we are not energy trades, by any means, we like health care in this space, we like technology in this space. we like consumer discretionary and staples in this space i think rick was right. we definitely saw some weak regional manufacturing reports this week, first from new york on monday, today, philly, but next week, where we get consumer sentiment, income, spending and savings, that's what we really key our reasoned optimism off of, so long as the u.s. consumer is in relatively good shape, we think this market holds up. >> and ron what about you, if you guys are a little more cautious on the market, especially into next year here, how are you investing? >> a couple points, each of the

last four years coming into the year, the economists expected over 3% growth. each of the last four year, came out less than 2. secondly, we talk about energy, but in fact, the police of recall that gas hasn't changed much. natural gas, of course is domestic commodity, oil is internation commodity. nevertheless, the natural gas stocks, people got kill aid long with the oil stocks, we think a pretty good opportunity there beyond that we do think that cheaper oil makes it good for the consumer, things like discover financial services, master card and visa have run -- coils offer is pretty cheap, we think room left to go in the air lines, after that, pick and choose individual companies that are taking advantage of what's going on currently. >> ron what about rick's point though? you're talking about how growth is weaker, could disappoint the fed and rick's saying that's exactly why we are rag, the fed came out, less hawkish in its statement expected, now up 6, 700 points on the dow, are you sure you don't want to sort of be long the fed in this camp

remaining accommodative as long as the economy you indicate need it is? >> maybe i'm getting too old but used to be when the economy did well, companies did well and their stocks did well. we have gotten into the point lately, there's so many people -- so much money chasing short-term stuff that when the economy does poorly, we say oh, but the fed will bail us out. that works for a little while, but doesn't work indefinitely. so you got -- cross currents going on that, as i say going to be very exciting modest returns. >> all right. hang on one second, everybody. want to get out to our steve liesman in just a second here. i believe we are still waiting for him to get ready. we will go instead to hank smith here for just a second, hank and let you respond to what ron was just saying. >> well, kelly, based on the conversation on what we're buying, i think the market has put energy stocks for sale, i think the selloff has been way overdone, particularly in the higher quality names and so for

long-term investors, initiating positions in names lake exxon, chevron, yielding 3% and 4% and a high-quality exploration company like shah lumber shea makes sense, maybe not for a near-term trade but for a long-term investment. these companies have made money for shareholders over the decades regardless of where the praise of oil has averaged out and we think that's going to be the case in the future. >> l and we will get to our steve in just a few minutes. thanks for that, everybody, good to see you this afternoon. appreciate the perspective here and we have got about 50 minute goes into the close and as mentioned, historic day her for market, the dow up another, about 312 points. thesome & p add morgue than 35 points. look at that the nasdaq as well having a strong day. the gains across the major index, pretty much identical, 1.8%, that's after the yesterday's strong performance as well. much more ahead on this spectacular run today. we are coming to you live from

the yale summit here at the waldorf astoria here tellin new york. plus, re-establish u.s. relations with cuba and we will be going live to havana where our michelle caruso-cabrera has a special report on what re-established ties mean for u.s. business and the global economy. don't go anywhere.

welcome back, we begin here with some breaking news on the volcker rule and our steve liesman. what's going on, steve? >> thanks very much the federal reserve announcing it is delaying implementation of the volcker rule for at least two years. it was supposed to take effect in 2015, july 2015. now is delayed until july 2017. this covers legacy funds, those funds that were in place prior to december 2013. kelly, i'm sorely, it there is no why in this press release but i have to speculate it has something to do with the trouble they have had coming up with the rules surround it an enormously complicated rule, a difficult for them to find the bright lines it govern proprietary

trading wit dodd frank rule banned certain insurance by the u.s. government or deposit insurance, engaging in proprietary trading. that whole thing on hold for two years as a result of this decision by the federal reserve today. >> steve, thank you. financials already having a strong day as you can see there. goldman sachs, one of the leaders in the dow, up almost 3%. our steve liesman back at headquarters. my next guest says 2015 will be a good year for the economy and a great year for investing in energy. joining me now steve schwartzman, the ceo of blackstone here for the yale ceo summit. welcome. >> good to is he you. >> you really think energy looks attractive right now, right here? what do you guys see as opportunity? >> we can look at energy in a lot of different way, we have the ability to invest in troubled companies. we have the ability to buy debt. we have the ability to make investments in new companies and completely recapitalize

companies that have a financial need. so for us, with very large amounts of capital a huge decline there are going to be a certain number of companies under real stress and that presents a very unique window. >> what happens if, as some argue, we are going into a 2015 where there's simply going to be too much production in the u.s.? are you going to be able to consolidate that production? it doesn't sound like the culled sauddyes will be pulling back, they said the whole decline today was transitory. >> this is a commodity, a global commodity with some pockets of regional oversupply. we, as blackstone can do nothing about that in particular. but i think, like most commodities, there's less of it produced at a certain point as the price goes down. and then things will normalize. and then the consumption of the world going up over time will result in prices going back again on the higher side.

>> one last question on this topic, but would you, because, it is a big space, people talk about energy, about oil, talk about a lot of different things. do you mean that the producers themselves look interesting to you or are you talking more about people who might be otherwise involved in the distribution and consumption? >> well, it's all up and down the channel. there will be some producers that basically took on debt, high expectations of prices. there will be suppliers where everyone won't need their rigs and other equipment. there will be a lot of different areas that go into dislocation. >> well, we will watch to see where you guys find the most opportunity. i just want to turn in the meantime the big news event this week before everything else that happened, frankly for your industry, the pet smart buyout, more than an $8 billion deal. dethroned you guys having the biggest take private deal of the year back i think in the summer. you know, prospects for a $10

billion on the horizon here? >> i don't think it is a question of the size, 8, 10, 5, 3. it's a question of how good the deal is. and there was -- there were two groups of people who thought that was a pretty good one. and -- >> choose mean you guys did not, by the way? >> we didn't see it the same way, but what i've learned is that we don't have the complete monopoly on truth. we find that there are many different ways to invest size-wise, geographically, area of concentration and we had a very large commitment haas year through all of our different private equity areas. we committed approximately $10 billion, which is large. and so you don't have to do one large deal to put out large alps of money. >> it does seem tonight missing link though in this bull market, you know, we have stock prices at all-time high, we have a lot

of merger and acquisition activity that's back toward peak levels but the take private deals with nowhere near the peak level wes saw in 2006some that because prices have now become so high, too high, perhaps, for a a lot of these names that might otherwise be attractive? >> because the people doing the deals with a good bit smarter than they were in 2006. there is nothing heroic about paying very high prices after markets have run very far. and the key is having discipline and creating good unleveraged returns, which then we can leverage and turn into something higher. >> so where do you guys look if it's not to pet smart if it's not to some of these other names that have been floated around out there? i mean, where then do you put all of this dry powder to work? >> well, there's all kinds of startups in the financial area, as regulation has made life somewhat uncomfortable for regulated institution and that's

global type of play because the reregulation rules are more or less global. we have the opportunity to buy smaller companies and build them up through -- through acquisitions. and expansion. we have got the whole energy complex, there will be no shortage of good things to do with high returns. >> and what about real estate? you guys got aggressively into residential real estate during and right after the collapse. now i wonder what -- how you see prospects for residential and how you maybe see prospects for a lot of commercial properties in this country. >> well, in residential, we are now the largest owner of houses in the united states. we have invested around 9 1/2 billion dollars, what we do is we rent these houses because at the kind of price levels with the 20% deposit needed to buy a house, 45% of americans just simply don't have the money for the deposit. so, we see, as investors and

renters, if you will of house, that things are quite good. dos this mean represents are going to keep going up? i know you and others will already take some heat from that and people are saying it is extortion, represents are going up too much and the average rent or the average household can't afford it the same way buying houses becomes unaffordable, are rents going up too much? >> i hadn't heard that actually, this is the first time, because whenever we put the houses out for rent, they virtually all rent very quickly and it is a much better thing for a consumer to be able to be in a quality house in a great neighborhood with a good school district. this is --? a very good thing and a replacement for -- for not being able to buy and live in a home. >> what about real estate from here then, where are the biggest opportunities for you guys? >> we think the biggest

opportunities, they are all over, but you have to be more selective. the biggest area is right now europe for us. there's a -- the banks have really had to contract and there's a lot of trouble credits. in other words, there were -- they are not troubled assets, they are troubled credits. so somebody paid too much for these things and they have gone down a lot. and the cycle that we had in the united states, there's still some interesting things to buy, but the cycle in europe is several years earlier. so, we see the opportunity to buy very large amounts of real estate, not under the expectation that europe's gonna get much better but because the yields on european real estate are much higher because there's been a crisis of confidence in europe by the europeans, which we are able to sort of take

advantage of through large purchases. >> speaking of crisis, i was going to, if you're looking at russia, seeing opportunities there right now. >> i think russia is too complex at the moment. if you just look at the volatility of the currency going from 80 to 65 in a day, and all kinds of issues pending recession, if things stay the way they are, some type of governmental imbams, which will happen if oil stays as low. the rumor is that russian government needs somewhere between 100 and $110 a barrel and it's around 60, so that means that the government should start losing large amounts of money, i think until things are normalized and we have not bought a company in russia in our firm's history, but just thinking about it on a broader

basis, think there's a reason to wait for some normalization between the great powers of the world before one stars investing. well, and this week, an interesting time to bring up that, there was a hot debate earlier about whether it was the right move for sony pictures, which you have been involved with in your career, to pulling the airs of the information -- the interview, i'm sorry, its movie that shows the assassination of the north korean leader on christmas day. was that the right decision by sony? >> think the right decision because this is about security, security of your database, security of people who deal with you and security of people going into theaters as well as the information that they give to the movie theaters, if they are using credit cards. so, i don't look at this as a freedom of speech issue. this is a situation where it's quite clear that sony had lost

control of their data. >> should it be streamed, somehow? should the u.s. government facilitate that? should you watch this or put everyone who might watch it at risk if their very watching of the film can be tracked and targeted? >> i think in our system, people find some way to watch the thing if they want to but i don't think today's business is worrying about that question. i think there's so limb sophistication in terms of the signer warfare element of this with the companies that are involved. in the securities business, for example, where all of us are heavily regulated one way or another, we've -- we are all over. >> you haven't -- in ten years. well, if you send them, you have to assume that somebody's reading them, other than the people you're sending them to and in certain sectors, like finance, there's enormous

sensitivity, not just to e-mails, but to the protection of the data under your control. >> steve schwartzman, thank you for being here this afternoon. really good to see, the ceo of blackstone group. and we have got only about, what 45 -- no, 35 minutes a calling into the close here. the dow, on the meantime, shrugging off all of these concerns with a gain of 321 points shall as you can see there, the s & p up 36, the nasdaq up 81, all of this as oil keeps declining. coming up, wall street titans bob diamond, jim chanos giving us their take on these markets and how they see them closing out the year and what we can expect for 2015 and also ahead, we will go live to havana for a special report on the biggest business winners from normalized relations with cuba. we are back in a moment. (trader vo) i search.

i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier. because at scottrade, our passion is to power yours.

gentleman president obama giving hope to businesses that want to get into cuba and to cubans who want to do business with america. our michelle caruso-cabrera is live in havana with the latest on the ground there. hi, michelle. >> hi there, kelly. yeah there are some changes announced yesterday that will make it easier to do business with cuba. remember there are hundreds of products that already american companies can sell to cuba, agriculture products, pharmaceutical products, but up until now the cubans have had to pay cash in advance before those product does ever leave the united states. there was a change now.

they are allowed to actually shipped products before and they have to be before transferred of title so when they get into port. a small change but the administration says that is going to make companies more competitive, or u.s. companies more competitive. another major change is the amount of money that cuban exile families living in the u.s. can send to their family members here in the united states, from $500 per quarter to $2,000 per quarter. this is going to help primarily i think small businesses, which have started to be opened here in cuba, because the cuban government has finally decided that they cannot control 100% of the economy. they now allow some industries to have private business and we know from speaking to those individuals who have started those small businesses that a lot of their initial working capital, their initial investment, comes from family members who send them the money so they can refurbish the restaurant, buy the chair, hire the waiter, et cetera, et cetera, for example. so, they are going to be beneficiaries but make no mistake, the cuban government as

well is going to be a beneficiary of that change in remittances because every time somebody in the united states sends money to somebody here in cube bark the cuban government take morse than 1 10% of it you send $100, they keep more than $10. ? important because the cuban government has been desperate for for ribbon exchange many years. remember talking about russia so much, how much hard cash reserve does they have to defend the ruble? >> because they have piles of dollars and your rose and gold sitting in their covers, right? cuba, last we knee knew and very secretive, we think they had 7 billion and we know they need more. so, that remittance change is also going to help government. back to you. great point, michelle. thank you very much. our michelle caruso-cabrera in havana us. joining me now with his take on the u.s./cuba relation larry kudlow, cnbc senior contributor. i was surprised to hear you're in support of this. why? >> i'm in support of this. milton friedman, remember him?

he taught us years ago, trade liberalization leads to economic market liberalization, which ultimately leads to political liberalization. i've seen it with china and so have you. cuba's a tiny example. i'm glad we are doing doing. this going to take time. should have done this years ago. should have done this years ago. but larry, then why don't we "normalize" relations with north korea if we thank you is effective foreign policy? >> they seem to have problem with their filmmaking, maybe we will talk about that in a minute. if north korea would have anything resembling a, i don't know, quasicivilized something or other, maybe we would do the same with north korea. but it's a different animal. i think cuban liberalization is going to come, it's gonna take time, but now that venezuela is going broke, they are the last supporters of cuba, really and

of course, russia's gone broke that's good. this is fine. i'm okay with. this >> larry, explain to me why we are able to use the carrot of economic liberalization with cuba, for example, while we still use the stick of economic sanctions with iran and with russia? >> well, look, iran is a -- the i shall through is nuclear power. we used to trade with them. the issue there is nuclear weapons, okay? so that's big difference from cuba. regarding russia, kelly, i don't know what you mean we trade with russia. >> larry, i know we're short on time, we need to pick this back, explore it a little fuller but i take your point. larry kudlow here this afternoon b a half an hour to go in the market. 300-point ral lip at dow we are talking about, a 35-point gain on the s & p 500, excitement over the markets here, yale co summit in new york. wall street heavyweights, bob diamond and jim chanos are going to give us their take on how we finish the year, coming up. also their best investment ideas for 2015. wait until you hear how they are

putting their clients' money to work. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. tdd# 1-800-345-2550 and bubble charts and price charts that let you see exactly tdd# 1-800-345-2550 how market activity is affecting your positions. tdd# 1-800-345-2550 so when the time comes to decide whether to scale in tdd# 1-800-345-2550 or scale out you can make your move, tdd# 1-800-345-2550 wherever you are. tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550

tdd# 1-800-345-2550 call 1-877-729-2379. tdd# 1-800-345-2550 or visit schwab.com/trading. tdd# 1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪

welcome back. a quick look at the mark the here, the dow up 332 points, up

2% on yesterday's gains. call it the janet yellen rally. impressive in spite of the fact that oil prices have been declining again today andsome & p adding 38 points, the nasdaq almost 85. and we are live today from the yale ceo summit in new york city, where top industry leaders and policymakers are meeting for a candid look at the business landscape and we continue that conversation now. with me now bob diamond, founder and ceo of atlas merchant at that point cannes tall and former ceo of barclays. great to see you. great to be here. >> i want to begin with the point steve schwartsman made, an opportunity in the financial industry that blackstone might be looking at. a area you see huge opportunity in as well, don't snunch the formation of at lattimer chant capital a year and a half ago was really based on the fact we know financials and think that investing in financeal is about investing and operating, being able to run the businesses. we think it's a once in a

generation opportunity with two big too fail, too complex to manage, the continued separation of risk and deposits, so men of the larger banks going out of commodities. the opportunity for more entrepreneurial models and for investment by people who can really operate these businesses has just never been better. >> i'm interesting whether it is going to be new people doing the traditional banking thing or a totally different banking model, because to quote the f it. the other day in fact, anthony jenkins, who now running barclays, says the universal banking model is dead. now, they were saying that's, you know, perhaps an indictment of the ambitions that you once had with barclays, but i wonder if it's true, if you agree with him or if, in fact this is just going to be a new set of people with new technologies and new resources building a better business. >> well, let start with the universal banking model. i hate the tag universal banking model, but banks that do businesses in more countries and more products, that model is very much alive.

you know, one of the things that i think about is our -- what our customers and our clients need hasn't changed. how we deliver that is what has to change. so one of the things that anthony talked about was the need for technology and we're investing heavily in financial technology through encapture and rapture and there is an opportunity with the cloud, with the ability to manage big data, that technology can be a big part of it. so kelly york think it's as much about new people or old people, it's about the model, it's about the approach to technology, and i think for the first time in 25 or 30 years, that period of consolidation, of internationalization, of globalization, of banks getting bigger and bigger, for the last 25 or 30 years, when there were opportunities to acquire financial service, it was big banks that did the acquiring, the strategic buyers. today, for a variety of reasons, they are off the stage in terms of acquisitions, in terms of complexity or in terms of

getting bigger. but the need for more interconnected, global banks is there. but i think wonderfully, the need for more entrepreneurial opportunities for new business models is there as well. >> and i think about africa, obviously, you guys were making a huge bid on africa d.a. today and just closed a deal with my year ya in particular. i wonder how much of the long-term story and investment in sub-saharan africa in nigeria, predicated on $100ism just witnessed this enormous, shocking deklein in the hoile price. does that change at all the landscape? i mean, look at what's happened with the nigerian currency even, a lot of concern about stab bit in? >> a few twice look at that and you're right, today we announced that we closed 20%, we now own 30% of union bank of nigeria. our ambition is to have a larger footprint in nigeria in financial services. so we take this, you know, this is an important event, the lower

oil prices. when you think about how the last two budgets were formed under the finance minute industry, the benchmark oil price was always $65. now for the last two budget that gave them $20, $30, $40 of wiggle room, surplus, now probably just the opposite. so we have seep the central bank governor make a -- you know, take risk, make a bold, non-political decision with the election coming up to raise interest rates and to lower the currency levels versus the dollar. we have seen them cut 2 to 3 billion in capital spending from the budget that's is being presented before the election in february. but think it's important to keep in mind that nigeria today isn't just aboutism the agricultural sector is humming. it is really hot. it is really exciting to see it in nigeria and when fitch recently downgraded nigeria, they downgraded them to 5.2% growth. there's a lot of countries that would like 5.2% growth. >> yes there r there are a

couple of other issues, bebola, how the knee-jerk response would have hurt the prospects, seen horrific violence in nigeria, and lone wolf attacks in more developed nations. how does that enter your calculus? >> definitely expect between now and the elections in february, we are probably to see more volatility in the markets, more volatile in the currencies. the boko haram probably more active in that period, so it will be challenging. i think the opportunities right now, well, i will go back to enfor a second, because i think in a sense, you have hit the two issues correctly. investors pause about nigeria and about africa because of ebola. but as it turns out, enwasn't a big issue in nigeria or senegal, some of the more developed economies. in fact, the way that nigeria managed the first couple of cases, and i can recall being

there myself during that time and you couldn't go into a restaurant, you couldn't go into a hotel, you couldn't go out of the airport without having your temperature taken. so, i think in the aftermath or i don't want to say the aftermath, because -- >> might not it will be yes. >> the encrisis has been tragic, but tragic more for the smaller countries that didn't have the resources and really needed the help of international aid and international organizations. but in terms of the investment thesis for nigeria, think it will be seen as a positive how they manage the situation. >> just the last question quickly before we go circling back to u.s. financial services, are you guys going to be making some big moves stateside here? >> well, you know, atlas merchant cap stall looking right now in a number of areas. there's a great opportunity to invest in businesses that are being spun out because of the higher capital rules for many banks, so in the eurozone, for example, they have announced

that the banks have announced almost $2 trillion of non-core businesses are going to go over the next couple of years. the big strategic buyers are not there. so my partner, david seamus and i, think the opportunities outstanding, but many of the businesses for sale are not in the eurozone. so many of the eurozone banks have acquired businesses in asia, in the u.s., citizens, for example, at rbs. so there's a big opportunity in acquiring businesses. we also think there's a phenomenal opportunity in the asset management business, and particularly, financial technology. so, in addition africa, we are pretty busy. >> sounds like it. we will stay tuned. bob, thank you so much for taking tomorrow some time to be here this afternoon. bob diamond of at latimer chant capital. we are going to take a break. keeping a close i am at markets, the dow's rallying more than 300 points for the second day in a row. our dominic chu will round up what's moving and where when we come back. also ahead, hedge fund titan

jim chanos joining us here at the yale co summit in new york. get his latest investment ideas on what he is buying and what he's shorting. stay tuned. 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.

what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgivness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $423. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance. [laughs] when we're having this much fun, why quit? and bounty has no quit in it either. watch how one sheet of bounty keeps working, while their two sheets, just quit.

bounty, the no-quit picker-upper. it is an ocean of green on

wall street today, domny chu running through the movers. >> lime green, like the shirt you're wearing. accenture raising the forecast for 2015 after posting strong first quarter russell. rite aid raised full year earnings forecast as higher prescription drug sales based its q 3 profit. a different story for duncan brands, the parent of dunkin' donuts, moved lower after issuing weak earnings and sales guidance for 2015. there's also glaxo smith climb and a genis moving higher on promising results for their experimental shingles vaccine, a company with as 225 market cap. a small one and end with another farm ma, say licks, sparking on a report that paulson and company has taken a stake in this specialty pharmaceutical company, see there, shares off their session highs, kelly, but still up by 3 and a half% on the session. >> lots of lime green there good to sing. 15 minutes to go 12 minutes to

go to the close here, as mentioned, one of the strongest per performance, dow up 340 points, near 24ri% gains across the board for the dow, s & p and nasdaq, fine minutes of this incredible trading day is next. how we finish so could set the tone for friday. our heavy hitters continues at in new york, jim chanos, lynn tilton and former prime minister kevin rudd on deck. wouldn't want to miss a minute. we are back right -- in a bit. this is a burrito made with

chocolate, soybeans, and apricots. what kind of chef comes up with this? a chef working with ibm watson, on the cloud. ingredients are just data. watson turns big data into new ideas. and not just for food. watson is working with doctors and bankers to help transform their industries. today there's a new way to work. and it's made with ibm.

don't look back, the dow industrial of a up 362 points, takes the dow the level of 17,700 here as we have about eight minutes to go into the close. joining us now for more is kathy wood from arc investments with our very own bob pisani and kathy what do you make of this two-day snap back? >> the market is beginning to make sense to me once again. we have been focused on the drop in energy price and thinking that's big positive. the market had been taking a different point of view, maybe remembering what deflation was like in '08 '09 and thinking

this was bad deflation. we don't think this is bad deflation, we think it is good deflation and we think it is going to add a lot of purchasing power to the economy. >> bob pisani, how much of this is people trying to squeeze all their trades for the rest of the year in so they can go home? >> i would would be a limb careful about making a conclusion based on what we are seeing in the last hour or some we are seeing an options expiration occurring right now. this is a quadruple witching that's going to happen to get a lot of volume here, a lot of movement around that 2050 area in the s & p, a lot of options pinned around there. there maybe some expiration related things going on in the last hour. with that said, we have a lot of movement with stocks, money from europe coming into the u.s. we saw a big rise in u.s. futures this morning, as europe opened. the fed's about helpful and oil trying to stable size a good twhoichlg note here, oil is down and the stock market is not falling apart. we are decoupling a little. >> yes. >> that's a good sign.

>> kathy, that's exactly what i was gonna ask here. so it sounds like your argument, which is that this is a stock market that likes the drop in oil prices, at least for a day. >> well, the drop in oil prices is good for -- depending on the estimate, 70 to 85% of the global economy. so, we think that people are beginning to understand that and maybe they are beginning to understand it because they are seeing prices drop at the pump and say hey, i have more purchasing power. so i think -- i think is a good thing. i think what people are worried about -- >> i'm seeing lots of -- >> go ahead. >> i think potentially quo have another banking system problem, but the big oil loans are not at the banks. we think a lot of bondholders are hurting right now, but the banking system, there's no systemic risk because of energy lopes. >> yeah. both of you stay right there kathy and bob, going to take a quick break and come right back. i was going to say i'm seeing a lot of social media posts about how low gas prices are it's certainly if the consumer psyche now. the dow up 372 points.

we are back with the closing countdown and then after the bell, nike and red hat will post their earnings results. also got more heavy hitters lined up here at the yale ceo summit at the waldorf astoria. you're watching cnbc, first in business worldwide.

can it make a dentist when my teeth are ready? can it track my crew's performance, and protect their heads? can it tell the flight attendant to please not wake me this time? at cognizant, we see opportunities for every company. to meet the new digital demands of their customers. can it process my insurance claim? like, right now? can it download a track while i'm sampling it? can my keys find me? with the power of digital, analytics and automation, now every little "thing" can provide even greater value.

ok, so can it tell the doctor how long i have to wear this thing? the answer is yes, it can. so, the question your customers are really asking is, can your business deliver? welcome back. take a lock at what's.happening in the markets today, after yesterday's strong performance, yet another strong gain across wall street. 2% plus on all the major index.

back on the floor is kathy wood for us with our bob pisani. bob what are guys on the floor saying about this? >> the main story today is if this -- if this would have happened a week ago, and oil was down again today, the mark wet have taken a him. the point is, oil down, not dramatic but the's down and the stock market is essentially ignoring that again, this is an options expiration and futures expiration, it may be options related, gains we're seeing here in the last hour, but still, i think this is very impressive and maybe a sign, maybe, kelly, we are finally starting to decouple from the oil stranglehold, i think that's not too strong a word. >> the dow up 05 points. >> wow. it's great. yeah. i think there's another thing going on in terms of this good go nation, i call oil prices down good deflation. there's a lot of good deflation out there because of all the innovation that is taking place. there are tremendous breakflus

technology, so we are seeing the technology cost curve at work throughout various sectors and i think the market's beginning to get the hang of this, because yellen yesterday in her -- in her press conference said she was very focused on non-oil inflation, so, i think that is the mark set clue to this and taking bond's cue. >> i think the thing is -- >> how much are people citing janet yellen? look, all of these positive forces, understand they are in place, but they shouldn't necessarily all of a sudden be a 400-point rebound on top of a 300-point one yet yesterday. >> there is follow through from yemen but trying to:decouple, oil stocks bouncing despite the drop in oil and then the europe factor. i have been point out all day that our stock futures jumped dram mat clat 3 a.m. in the morning when europe opened and this's european money coming

into the united states. so we are getting more of this sort of all-in to the united states play, options exploration, hard to figure out how that moves in here, wouldn't be surprised if that was a fact torch i would like to see how wend up today and tomorrow. >> and kathy, just before -- go ahead >> sorry, in terms of the oil, the impact of oil and decoupling here, it's interesting that yellen really did focus people on that and i think they again to take note. hey,s here one of the top economists in the world saying oil going down is a good thing for the united states. >> kathy -- kelly, very unusual day when you see all ten sectors up and got all ten up more than 1%. that is a sign of a very, very broad market rally. don't see that very often. >> unbelievable. the dow jones industrial average looks like it's going to go out here with a gain of more than 400 points. and it's not just the dow up

2.4% or thereabouts, same magnitude of gains across the s & p 500 here and across the nasdaq. kathy wood with our bob pisani on the floor. thank you both so much for joining us at this hour. there we go there is the "closing bell" over at the nasdaq and down at the big board at the new york stock exchange. welcome to hour two of the "closing bell." what day it has been on wall street. an incredible two-day performance, in fact, the strongest back-to-back gains we have seen in several years, with the dow on the close, perhaps some technical factors that bob pisani just mentioned. nevertheless, an increase of 419 points, almost 2 1/2%. the s & p 500 adding almost 50 points today. the nasdaq up 2.25, more than 100 points to 4748. joining me now to talk more about this incredible rally, cnbc contributor, john najarian,

danny hughes from divine capital, holding down the fort at the new york stock exchange on set and here at the waldorf is patriarch partons lynn tilton and steve grasso, fast unmoney trade, will join us shortly. dr. j what do you make of this? >> i have said for a long time with you, kelly, that i think this is unambiguously bullish for the consumer, u.s. businesses, that is lower energy price. now, during the times when there was a concern as we were melting in crude oil, what linked to that what leverage or offbalance derivatives or anybody else could blow up from that? not the bank's exposure, not the 5 or 6% a lot of those big banks have to things like frack bug some of the exposure for perhaps things they have written, put they was britain on the energy space and so forth. instead of being a worry, we

stabilize around this mid-50s level for crude oil, that's fantastic. again, consumers and business that stabilization is why you are seeing the rallies of the past two days. of course, lining with a tip of the hat to january heet yellen. >> and danny, if you missed the last two days, what do you do now? >> if you missed the last two day you missed a huge party and in the stock market. on friday, tomorrow, the rebalance of the s & p. we have got a lot of positioning going on on top of all this tremendous global news and global inflows into the united states. i think if you stood on the sidelines for this one, you are kicking yourself for sure, tough look at the long term and the long term is the u.s. is recovering, jobs are coming back, people are starting to feel a little bit more secure, a day like today, kelly, was really unbelievable to see. a lot of picking off inside of

energy, sold off tremendous lakers lot of value there as well. >> lynn tilton, if you knew the topics discussed-to-, if you even told somebody what happened this week energy the world this week, would you expect this kind of stock market? >> only if you think that yellen is making the news and basically see more inflows into the stock market. we have been central bank driven a long times, i think the reality is converse to they and the issues in china, about, you know, activism, about free speech, cube bark the mentality and mindset among ceos in the country rush use that we really need to pay attention but that's not always in line with what's going on with market, supply and de manned, cash rolling in, and i think that yemen made news and

people should be comfortable putting money in the stock market. >> how much are people citing janet yellen for the two-day performance, steve grasso? >> a lot, one of the few catalysts we had left in the calendar, kelly. look at it, what really changed, oil broke yesterday's low so even though you see a lot of those energy names rally, they are rallying because guys are folding up, rolling up their books. need a lot of shorts that made them money so they cover. you could see the individual names rally but the overall oil space probably moves, oil moves lower, the individual names can move higher to year end. where you get beta chase, you haven'ts inned mig in energy, those names cut in half, you miss a day two day wind up buying these things, you still have plenty of time to buy energy into year end. i think what you're seeing now is guys are folding up their books taking the risk off here, if you see, we have quad witch tomorrow, a rebalance, a couple of things, but most people

aren't doing much to year end. >> all right. and dr. j, steve just mentioned energy. are you looking there? do you see opportunity there? are we talking traced, long-term investments or is it still catchinging knife? >> i call the the falling knife, cut myself a little i bought it too early, kelly, the 18 and 20% moves that grasso just spoke of, yeah that brought it back and now they are virtually everything i sbout in the green. still own baker hughes. still have neighbors and some of those i think prudent to take some of those off, given the moves dramatic and wait for stabilization in that space before committing more capital. >> danny what about you guys? >> >> i think to john's point do your homework on these name, which -- you want to be in energy, what type of energy dwupt to be in? do you want to be in the drillers? be in the guys who supply the drillers? the guys at the pump that have

more dig significant margin protection? so it really nice do that homework, but it is absolutely a stock pickers a market in the energy side. but then again, you see oracle at 52-week highs after their earnings up 16 and a half% for the year over 8% today. microsoft, over 26% this year. if you have been on that ride as well, i think some people are probably taking some money off the table, taking some profits at the end of the year as well. so, i expect to see more volatility this week, next week though totally different story. i think we are going to see things slow down. i think we are going to see a lot less volume and may see the market fall off and get a little bit trappier. >> lynn, what but? where do you see opportunities here for companies, i think when we have a run up like this, ironically, talking about steve schwarzman a little while ago, makes it more expensive for the buy side. >> definitely makes it expensive for the buy side. for me, i'm mostly look not at buying company bus building

companies, facing all the issues that we talked about today, which is really what's going on in the disruptive world. where much of the exponential finance companies are going. and just having to create product that's exciting and beautiful and really compete with those companies that don't have assets in people, taking old world companies into the future by creating great product that people want. >> what are the fundamentals here? i know in the past, you have express sold skepticism, as many have about just how strong the u.s. economy really is. are we at transition point, some sort of inflexion point here or no? >> i mean, there was a "new york times" article this weekend about 30 million males unemployed between the ages of 25 and 54. i think we are not looking at the average american. i think we are very sikh very strong mark eat, great recovery in a lot of. >> okay. >> but i think still not seeing consumer spending. you are still seeing the average american suffering. and i think the unemployment rate is not 5.8%.

the unemployment rate somewhere between 14% and 17%. >> hold that thought. we have some breaking news on met life right now. dominic chu with the details. hi, dom. >> all right so, met life is very much in the headlines right now because the financial stability oversight counsel, the fsoc has now designated met life, an insurance condition, as a systemically important financial institution. it would join just a handful of companies that are not banks that have been designated by the government as systemically important to the health of the financial services world, if you want to look at it this watch again, met life, an insurance company, now joins companies like aig, also prudential financial, also ge capital as non-bank institutions that are large enough to effect the overall health of the financial system. met life did say that they are going to under the dodd frank act have 30 dies seek judicial review of this decision. the company will carefully

review the rationale as it considers its next stern, remember this is important, kelly, if you are designated as an sifi or systemically important financial institution that means you are subject to more regulation. back over to you guy, kelly. >> all right, dom, thank you. danny hughes what does this mean for met life from sneer how does this change the investment prospects for them? >> i think that that takes some investors to you the of that market. when you're systemically too big to fail, think that concerns certain types of investors, see some choppiness in the stock. but i think this was expected as well. they are a very large insurance company, getting larger, so i do think that that it will have some effect on the stock going forward. >> steve grasso, you azi what do you think of the financials here? >> it depends where you place. the insurers i would stay away from, especially met life, you have to wait for a couple of

days after a headline like that to see how the stock actually shakes out. 23u play in the financials, no secret, wells fargo outperformed the group, a lot less headline risk a lot less european exposu exposure, a lot less foreign market, think exposure, still say in as well as fargo, since outperformed, likely to do so going forward. >> dr. j, same question, and by the way, we also got the headlihead today on the volcker rule and the financial names up 3% or more on the session. >> those folk because of what janet yellen said, chase more money into equity market, good for morgan stanley, good for bankamerica meryl because of that last half, the merrill lynch side of that business gets brushed aside, dani. i like this one, kelly. bhang america, i don't disagree

with steve, walls fargo a safer play for all the reasons, i want beta, like where morgan stanley is like goldman sachs and clearly, i like bankamerica and it's also in my playbook. >> everybody, we will leff loo testify there steve grasso is coming up with the rest of the "fast money" the crew 5:00. you want to stick around and catch their discussion, talking about the price of chicken soaring, by the way, has investors shorting companies like sanderson false, the ceo of sanderson will join them to make his case for the stock. wouldn't want to miss that. straight ahead here, stocks staging another huge rally today. is it justified? famed short seller jim chanos joins me exclusively next. he has made a killing betting against ibm this year, you will want to hear what he has to say. also, nike earnings imminent. we will break document dow components' results as soon as they hit here on "the closing bell." you're watching cnbc, first in business worldwide. re's a ques: as nations develop over the next 25 years, the world will have almost twice as many cars. how much fuel will be needed to power them?

about the same as today? 50% more? 100% more? the answer is... about the same as today. by 2040, advances in fuels and vehicles could enable about 75% better fuel economy than today. take the energy quiz -- round 2. energy lives here. opinions. there's no shortage in this world. who do you trust? 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 execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor.

we are back live at the yale

ceo summit at the waldorf astoria. my next guest made a career of shorting stocks. here with his next investmented can ideas, jim chanos. good to see you. is today in the market, we have 420-point rally. >> we did? >> the trend or the counter trend? demystify this one for us. >> i have no idea. is this short positioning caught on the wrong side yet again? what do you think here? >> generally, the stock market closes up 400 points, nation more difficult, i think that any of your guests in 2015 who look you with a straight face and say, really bullish that the fed is tightening should go back to this day today i think the market is fed induced, people got what they wanted the last two days and shorts have covered and people positioned themselves for the end of the year.

who knows what tomorrow will bring. >> it make it harder for you ibm, one of the underperformers, you have short it had this year, quite well on that poe still shorting ibm? >> still have a small poe you take them when you can get them and 2013, 2014, this has been a better year for short sellers than last year was though. things have gone down. market beginning to bifurcate.

recently, it's been some indication of their sales trend softening, for example. are you confident in that short position going into next year because you think that overall, the trend is still negative globally and in the u.s. for caterpillar or do you have to rethink it after a couple days like this? >> i try not to let the price tell me what to do with the stock, i true toilet the fundamenta fundamentals, we can hopefully do a better job predicting fundamentals than stock market price. if we get the fundamentals right over times, portfolio, stock prices take care of. shes, caterpillar's fundmentals dedoor orrating for two years. >> why is that? >> number one, highly exposed to the mining industry. as we have seen market goes up and chinese markets go up, iron orr rolled over, copper mining, but a difficult area and two other businesses to fall back

on, energy and energy is a dark construction is good. >> what about other energy names? did you see this, not going to say did you see it coming, when it started to happen, flu there shorting some of these energy name or do you now see opportunity as they have declined in some cases bike 60, 70%? >> by if you are kagt, we had, for example, a very large position on a certain brazilian energy company. we don't have that position anymore. the stock's down quite a bit. what's interesting about this move have in oil, to a less letters extent gas, gas down a little bit, not as much as oil, how some of the largest oil condition, stocks really not gone down much. the major, they have high dividend yeast and investors think the refining so called downstream part will be a boost. you look at exxon the past five years, roughly 75% of their business is oil production.

15% refining. 10% chemicals. they are still an oil company, the last time oil was down at these prices, exxon trading 60s, trading 90. arm lot of people buying that game and janeten and the saudi minister describe the price decline as trapser to. sounds like you disagree. >> no. i don't in our hedge fund, we actually own oil against some of our big cap shorts. because one of those market, pretty wrong. either the oil -- if oil prices stay down at these level, then the large integrated oil companies in the state oil company are going to be in a lot of trouble. if however, the stock market is right, this will well then the oil surprise too level >> you have hedged? >> hedged. >> i want to talk about china for a second that's one of the big reasons why some people have looked at a name like kit pillar that might have global exposure to a slow down there. is it true that in the case of some of these chinese casino names like a wynn and you and steve wynn have had a -- he has

filed a lawsuit against you for saying as part of your short position in his company, that there was defamation to his name. i understand that lawsuit has now been dismissed? >> well, a federal judge disagreed with that on tuesday night. i can't comment beyond that other than we agree with the jim's ruling. and that we did not -- we did not defame mr. wynn. in fact, i actually like and respect mr. wynn. we are puzzled biofiled the suit. >> well this is a period when we have seen some of these casino names really drop on a lot of the crackdowns in maccould. your position, your argument more nuanced than particularly trade, long some names in chinaize understand it talk about what's crack and what's working right now >> maccould is a good example, not to talk specific is, broadly speaking, maccould is now very clearly from the news flower seeing in the sights of the anti-corruption drive. we heard a lot about that this morning here at the yale summit. i thought a lot of really interesting commentnary from

people on sort of all sides of the argument, one thing most everybody agreed on is that she ping is a very serious guy and this is going to be part of his economic nationalism to really root out corruption, unfortunately, macao is going to be square in his sights on that. >> what else about china though? opportunities in the consumer space that still look attractive? >> think, again, a couple of the newest developments that we talked about is in this economic national i shall that she shin ping is advocating, he is really trying to push his home companies, technology, to the detriment of we were technology and that's relatively new development. >> economic nationalism is the term that he was thrown around quite a lot. >> yeah. yeah. really, really fostering chinese growth for chinese condition, not necessarily western companies. >> how many -- does that make you start to think about some of the bigger western condition, maybe a tech company and think about them as a short-selling candidate? >> i think that any company that is hitching its star completely on growth to china would have to

rethank you if they are a western company. i think we are clearly getting signals that is not the chase. but every situation is different. and we are short some companies competing in the global stage. >> that a reference to alibaba? >> not a reference to albee ba barks i think that what is clear this leader is a strong leader and have to see china through his prism. >> to the bring it back to the u.s. and the u.s. consumer here a couple of names long position in starbucks a short position in soda stream is that right? >> we had a short position on soda stream a long time ago but did a have a long position this starbucks. one of the things that's interesting to us in this consumer area, the last few day is the whole concept that lower energy prices would be a boost to son summers this christmas and beyond. we are seeing companies as big as fedex and as sort of interesting as duncan doughnuts

tell us that, in fact, that's not happening. wondering how much of the savings at the gas pump americans are going to spend or use it for other reasons? >> spending is on their verizon data plan and their bronze health care plan. >> buying equities is. >> right. right. do you think that's happening out there? >> somebody's buying them. >> just a final question as we look to 2015, a lot of changes this week from the liberalization of cuba to this north korean successful effort now to stop the "the interview" from coming out. talk through whether that -- if there's somehow a shift happening in the world order that is you're thinking about. >> i don't know how much of a shift it is as a recognition of sort of trends in place. i saw a wonderful post the other day from someone who said, okay, if you think about north korea, they probably had the most severe prison camps in the world. they arguably developed nuclear

weapons in secret. launch missiles over friends/enemies terrors to and up in arms they faulted a movie. these guys have been pretty bad geyser a while. cuba, sat imthing, taking liberalization steps slow will you but surely but this was a bigger push to the door. i think these are sort of trends that have been in place that maybe are accelerating. >> would you invest in cuba, either because its as atractive or on principle or no? >> i -- i got ahold of a friend of mine who was involved in major league baseball team, i said you got to get the rights for the havana franchise. i think that's going to be a home run. >> wait to play it jim chanos, thank you so much for being here this afternoon at the yale ceo conference. he is the founder of new york-based hedge fund kata goes sis associates. my pleasure. more from the summit. brad cats y'all marks center of flash boys that blasted high-speed trading is here. find out how his trading platform called the investor ex-change trying to shake up how our markets work and how should the u.s. respond to north korea's hacking of sony?

former australian prime minister kevin rudd, who has his fair share of dealings with north korea joins us later on the "closing bell." stay tuned. take on the challenge of trading options and futures...

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

for the most favorable price. find new ideas, analyze and execute your trades with just a few simple clicks, with optionsxpress. for a one hundred fifty dollar amazon.com gift card when you open an account, call 1-888-980-5745 today. optionsxpress by charles schwab. welcome back what day in the market the action continues after hours. send it over to dominic chu for

a quick earnings alert. dom? >> start with nike, first of all, the biggest athletic apparel company in the world has beat earnings sometime buys 4 cents, 74 scent the number that beats the average analyst estimate of 70 cents. revenues came in at 7.38 billion beating the average analyst estimate of 7.15 billion. also, a lot of traders like to look ain't remember is like to look towards the futures orders this is an indication of business coming down the line for nike. on a currency neutral basis, those futures orders are 1u7 1%, just about in line with stirnlgts but the real standout here is the greater china region. futures orders up 13%, a list average were looking for a begin of 7%. china showing strength there see nike shares, however, still down in the aftermarket trade by 2 to 2 and a half percent.

the deadly siege in sydney, australia, was the latest example of lone wolf terror attacks around the world. how can countries prevent things like this from happening? former australian prime minister kevin vud here next. then, speak to brad cat sue y'all mark the man who said the market is rigged in the book "flash boys." he levels to aim the flag field. see,is doing when we come back.

welcome back, the white house says it screened "the in the veer view" this past june at the request of the studio. john harwood has details as he follows the story. hi, john. >> the white house said that it stands fully behind the right of free expression by artists like seth rogan and james franco, who starred in that movie "the interview" but it was more than

just standing by because as you mentioned, josh earnest confirmed today that the white house staff had actually screened the video, which now will not be released. >> administration officials were consulted about the film prior to its release at the request of officials from the company that was producing the movie. not been in a position of dictating an outcome or dictating changes to a film. we did so at the request of the company. >> now, one thing the administration is in the position to dictate is how it responds to this provocation from the north core yean. josh earnest says the white house regards this as a serious national security matter and the administration was considering a range of option, didn't announce any steps to be taken today yet. >> all right, our john harwood in washington. get reaction to that. that from john and former australian prime minister, kevin rudd, joining me here from the yale ceo summit.

welcome, mr. prime minister. first of all, your response, this was the right move by sony to pull this picture from theaters in the u.s.? >> visiting australians are always reluctant to give advice to hollywood on what they should do or not do but my principle is pretty basic. freedom of speech, freedom of expression, point one. point two never award thuggery. this is a form of thuggery. it is signer thuggery. and i think it leaves an uneasy feeling in people's mind. most of us in political life around the we were world call the criticism, attack and satire the whole time, we are just used to it. so i'm -- i'm concerned. i'm just giving you an honest, unofficial, individual view, but the company obviously had considerations concerning safety they had to take into account. >> which is why, especially given those concerns that everybody's discussing right now, freedom of speech, the u.s. -- you know, the way we are perceived around the world, what should the appropriate response

be or have been? what happens next time? >> well, we are into a brif new world and i use the terms advisedly, of cyber attack. and this is just a very timely reminder of how ugly things could get with various regimes around the world. and so, i think all of us should use this as an opportunity to calibrate how we respond, not just to a movie but if for a regime gets upset in the dmufrp and decides to target peas of critical infrastructure, what then happens? this is why the whole debate about signer security is fundamental. we need to take this as what-to-what could be a response by democracies. >> the same week that we had that terrible siege in sydney. what was running through your

mind as you saw that earlier this week? >> well, i'm at the harvard kennedy school, i just come out of the annual carol service at the harvard memorial church and a complete sense of unrate, my country, which is peace loving, my country, which is a tolerant society, my country, which is cosmopolitan city, like sydney, based on the principles of multiculturalism, could see this happening there rather than some other place in the world where we are used to it happening. but here is the one thing i would say the australian community responded to this really well. the murder itself, tapped is a murder, was just ugly in every dimension. but the fact that despite the fact we have lost two innocents who have been murdered, the australian community responded by saying let's not be in the business of stigma advertising the half million australian muslims we have, let's put our arm around them, the muslim commune vitt stood up and condemned this unequivocally in australia.

and so he is there's been actually remarkable bonding together as a result. >> it's an important point. meanwhile, we have these relations with cuba and at u.s., normalizing, as president obama put, this week. how is that being viewed? >> well, i hate to break it to my american friends but we've had diplomatic rewlags cuba for a long time. and we are a we were democracy and one of america's oldest allies. look, i think the president's done the right thing. the reason i think he has done the right thing is that there are a bunch of countries around the world whose domestic regimes we may not approve of. but that does not prevent the world's leading power, the united states, from having diplomatic relations with them. so, therefore, it's important of itself not to regard this as some extraordinary step. i think it is catching up with history. a lot of poverty in cuba. commercial normalization, economic normalization, lift living standard, change people's

attitude to life and improve, i think, interamerican relations as well. >> is the real difference with cuba, visa vicious iran or russia, as our larry kudlow suggesteder yes, the fact that cuba is not a nuclear nation and there's no fear of contagion, full, from communist policy the way there might have been 50 years ago? is that the difference in the u.s. poll she a legitimate reason for being put in place against cuba in the first place and a lot of folks say none of that changed this week. i got to say, when you look at weapon of mass destruction, north korea, about whom we have been talking in a different context, is a real problem for wider regional security because of the nuclear weapons program. iran, obviously. these, therefore, represent such collective threats to regional and global security that they need to be addressed in a different framework and a particular history, of course, with iran and american hostages way back when. but now, america has got a diplomatic process under way with iran. we hope that turns out for good.

north korea is still beyond the realms of possibility. but the cubans, whatever you might say about them, have not got that option available to them, it's on america's doorstep. there's been a lot of history, which has flowed since the events of the early '60s. and look, if you normalize and extend the tent of economic opportunity and the enormous freedoms available in american life, let me tell you, i think that has a palpable effect, not just in cuba, more broadly in the region, and as i said in terms of interamerican relations, i think this is for the good and that region is of course, of direct national interest to the united states. i support the president's decision. kevin rudd, thank you for being here, the former prime minister of australia, now at harvard, as you mentioned. wish we could talk about a whole lot more. >> we will talk about china some time. >> good to see you. really appreciate it. coming up, much more on this second straight huge day of market gains and whether this market can still end the year at

record highs. first, i will speak excuse xloous civil to brad katsuyama, the middle of the book "flash boys" which criticized high-speed trading. he has his own platform now and plans to take on the new york stock exchange, which now might be striking back. find out how when we come back. [laughs] when we're having this much fun, why quit? and bounty has no quit in it either. watch how one sheet of bounty keeps working, while their two sheets, just quit. bounty, the no-quit picker-upper.

welcome back. an overhaul of how the u.s. stock market trades maybe in the works. reports say the owner of the new york stock exchange proposing a big cut in banks' trading cost it is they agree to move trading

away from things like dark pools and other venues deemed off exchange. the move is designed to curtail the steep loss of trading seep in recent years on the exchanges, which would not be good news for my next guest if it works. joined by brad cat sue yamma, co-founder of the investors exchange, iex, a central figure in michael lewis' book "flash boys," calling out the stock market for being rigged. welcome. good to have you. thanks for having me. >> what do you think about the news from the stock exchange today, following in your footprints, doing the right thing here? >> you know, it is interesting. it is very good for exchange. designed to drive more order flow there. they have done it in a way that main tapes their margins, fees come down, not paying rebate, i think very good for exchange it is i put my industry hat on, you know, it seems a little bit

anti-competitive, i guess, putting barriers up around the incumbents much and i think it does definitely make alternate business models. >> why is that? >> any time you look to cap prices, regulate prices, any time you look to regulate the way a venue can attract order fleend trade, i think it at times too much regulation becomes anti-competitive and definitely better for the entrenched player. so mixed feelings, but as a soon-to-be exchange operator, good for exchange. >> you say soon-to-be exchange operator because you're on a path from forming what is now an ats, an alternate trading system to becoming an exchange. >> yes. >> that could still take several months, correct? >> it definitely -- we are hoping it happens some time in 2015. it is hard to tell how long it will take. the process has gone pretty well so far. we feel like we thought through the business model very clearly. hopefully, we will be there in 2015. >> let's talk about some of those numbers now that you're basically a year from going live. >> sure. yeah. >> what kind of trading volume

are you seeing in how is your market share relative to the others? >> the volume growing very steadily, as has market share. our first day i think we did 568,000 shares. today, i think we did about 167,000 -- or 167 million shares. >> today? we toggle around 1% level. 40 or 45 atss, risen up the ranks, we are number four. we are bigger than three of the 11 exchanges. i think for one year, pretty happy what with what's happening. >> congratulations. explain to people what the differentiating factor is between you and the other guys. people think it is because you don't have high-frequency trading. that is not the difference. the biggest difference for us is we use technology and data to ensure that ix is always calculating the fairest possible price for the transaction. and the way that the market has been designed that people are getting information at different

times. some people are faster than others. what that leads to is that someone might know what the fair price is, and someone else might not, including the exchange itself. so we have used technology to create the fairest possible trading experience. and again, as more investors, more brothers, begin to understand and study our model, our market shares are growing, which means the industry is responding in a very positive way. >> what kind of further response do you expect now from them? >> i think, it's a network feechblgt you build a market, right? it -- the more people that come, the more the volume grows. for us, it has never been about alien nating anyone. as you said, we do have high-frequency trading firms trading on our market. and really about building the fairest possible market and see who shows up and really encouraged that some hft firms decided to show up and others haven't, which means we have actually found a way to balance, you know, what we believe to be productive behavior in the markets and predatory behavior. >> this san important point. what you think is happening is ultimately high-frequency traders just looking for liquidity, for example and others who were front running

retail order flow, for example. so there's a differentiation, you can't lump all of them together in terms of being bad actors and starting to find out what ho's attracted to what parts of the markets here. >> absolutely. i think everyone wanted to say they provide liquidity and marketmaker. we found that is not true in all care although everyone wants to say that. it gives you a pass if you say i provide liquidity. in many respect, again, a fair access market, rather than trying to fig your out or define anyone, you know they define themselves by how they respond to the model we have built and feel really encouraged that different pockets of the industry are supporting what we are doing and think that it will only grow. >> a private sector solution at a time of increased regulatory efforts to find one that could take so much longer. absolutely. you look at the proposal from new york, it will take a long time to implement that. and i think for us, just focusing on leading by example f fleas something you can do today, just do it and i think that's -- that's always kind of been our practice. >> brad katsuyama, thank you for being here. really good to see you this

after into the dow rallying, speaking of the market, 400 points the first time in three years a lot more on this amazing market day when we come right back.

wednesday on wall street, are we heading back to record highs. we got pretty close lr. i'm joined by john algerian and dr. jay first to you. reacting to what we've heard this hour from some of the guests at the ceo summit. again, as we're thinking through the couple day rally that we've seen, what's on your mind? >> well, you can't help but focus in on some of the positives that are going to be over in china, in japan and in india with these lower energy prices. we talk about it here. i'll throw in europe as well because obviously draghi has mainly talked the talk, not walked the walk and he's done that because he's a very skilled speaker and because of his foe over in germany that doesn't want him to go to full quantitative easement. they're getting that anyway, kel, in a way through the cheaper energy prices.

we're at 123.0. they've gotten a lot of the benefit and that plays out over weeks and months. >> and it was interesting to hear steve georgeman talking about how they're seeing big opportunity in real estate but, lynn, at the same time we've had a lot of concerns about the same countries that john was just talking about. >> i still think we have to focus on the average worker in every country and what it means to them and not just get excited about what it means for large companies or what it means for the market. i think a lot of the concerns come back to the average worker in each of these countries, whether they are employed, whether they're doing well enough to spend money. so we look at lower oil which can be great for everything and have the consumer have more money, but will they spend it? so one is, you know, what is the market doing today? how it will fair on the average american or the average european. will they buy cars? you know, will they, you know,

buy goods? will this really translate and really are these people working in these countries? what are the true unemployment rates? plus, i think we have a lot of conversation about china today and the new world china and really what that means and whether you can still make things there and make money. >> economic nationalism. this has come up now several times. what do you think this means? what's the take away? >> i think this means china's going to show some real muscle and the relationship with the u.s. and foreign trade is less important to them with the u.s. i think they're going to start being kinder to their neighbors to try to push the u.s. out of the area and they really are not talking about sort of their good friend, the u.s. of a anymore. i think we really need to be concerned. i know i've met with a lot of retailers in the last few weeks that are concerned if we're making things in china that we have other options. so i think that there's a new

day coming and i think this, you know, is something that everybody better think about. >> and we're going to take a quick break here. lynn is going to stay right here. dr. j. is going to stay with us. so far this week we've seen a major selloff and two major rallies. up next, we'll look at how we might end up this week and what to watch for as santa claus comes down that chimney. [ male announcer ] your love for trading never stops.

so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪

and start working on your next big idea. take aand... exhale...in... aflac! and a gentle wavelike motion... ahhh-ahhhhhh. liberate your spine... ahhh-ahhhhhh...aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. see why speed matters, at aflac.com.

welcome back. final thoughts now with lynn tilton and john jerry. dr. j., let me start with you. they're still shorting ibm and caterpillar. >> ibm doesn't surprise me. it's broken down and still beneath some of the technical levels. there will be a lot of folks that are betting on dow 18,000 again. ibm has to be part of it. warren buffet believes in it. certainly had a big pop today. on the caterpillar side, that's the side i believe jim is absolutely right on. ibm after this selloff maybe cleared out a lot of those weak hands. >> what do you do, dr. j., if he's right? he's like, look, this is ultimately a fundamental story about caterpillar, their exposure to mining. oil and gas, that's another leg.

construction, that may be holding right there. if those two important pillars are weakening, who else looks vulnerable here? >> again, on their side, on the caterpillar side, they've been able to defy the odds because of and probably frustrate jim, who's a good friend, frustrate folks because the construction side of their business made up for -- and caught a lot of bears short. that was what the story was this year. now i don't think construction can surprise us as much next year, kelly, and i don't see mining coming back in the same way. so i don't know what caterpillar has to do to pull that rabbit out of the hat again next year. >> lynn, what's your view on real estate here? will we're talking residential, commercial. >> you know, a lot of it rides with interest rates, you know, and cat values. so i think that, you know, we've seen -- you know, there's cheap money right now. it's going to keep flowing. if interest rates go up, everything switches. >> this is the big if, and we

know. it's clear that the fed is ready, willing to raise rates as soon as the conditions are there for it. janet yellen indicating in a couple meeting's time they'll start doing it and yet the ten year today was down below 2.1%. >> because it's time. time is your friend. people bought time and they're going to put their money where the right moment is for short-term investment. >> are you betting on higher interest rates next year? >> yes. >> dr. j., what about you? >> i am, too, but modestly higher rates because of that lower for longer theory that i think has continued to play out. lower for longer because of japan, because of europe, because of china. so i think our returns here on a strong dollar look much better. money flows in here. that puts a cap on rates, i think, kel. >> finally, your last best guess, dr. j. have we done it? is that it for the rally or is there more room to run before we close for the holidays? >> no, everybody wanted to short it into yesterday. they got cleaned out today. obviously in the pre-market they

were cleaned out and into this 400 point rally into the close, there again, they're pushing those hats. we'll be very close to that i think tomorrow, kelly, then we'll see where we go. >> yeah. they were bad luck last time. stay tuned tomorrow. >> that's why i'm not wearing it, i'm just holding it. >> thank you both so much for your time. >> it was a pleasure to be here. >> that does it for us on closing bell. "fast money" begins right now. live from the nasdaq market site, "fast money" starts right now. i'm melissa lee. tonight's top story, the megarally for stocks. dow seeing the best gains since 2008. traders are tim see more, tim grasso, karen finer man and brian kelly. the dow closing up more than 400 points today for the first time in more than three years. the technology sector leading the gains over the past two days. the s&p and dow have erased almost all of their losses for the month of december. equities brushing off a nearly 3% decline in oil. oi