oil and the dow are both falling. is the potential down side of lower prices hits home. welcome to "street signs". huge market day today. nearly every dow stock is lower, and the question that everybody seems to be asking, where exactly is the up side to lower gas prices. >> let's look at the reason behind those lower gas prices. crude wiping out $50 a barrel earlier on for the first time since april of 2009.

stocks wiped out as a result. dow down nearly 300 points. worst day in three months. it was down 330 at one point. and the s&p 500 is also having its worst day in three points. s&p energy sector dropping like a led balloon making it a 24% fall. and transports are taking it on the chin as the rail companies some of tf of the hardest hit. let's get to our market movers. bob, what is the most important thing to watch this afternoon? >> they're pressing the same two macro themes that they pressed at the end of 2014. weak euro, strong dollar, and weak oil. take a look at those two areas here. that's what is impacting the stock market. that is the major theme i think that will stabilize oil in the low 50s. but that's not happening today. so let's talk about some things that make sense. if you have global growth concerns, particularly in europe, industrials down, makes

sense to me. so we have your weak euro, vopger dollar, low oil. but the important thing is industrials. caterpillar had a downgrade, all the big industrial names are to the down side. that makes accept. material stocks lower global growth concerns. i would anticipate freeport, nucor, alcoa. other things don't make quite as much sense. for example, in the transports, ch robinson, yrcw, conway, 90% of their revenues inside united states. this seems like a big move and a little bit of a panic reaction to me. but i've learned not to yell at the stock market. another thing down of course are the energy names and no surprise here, some of the big shale plays are down in double digits, but some of the big names all of them down 3%, 4% or 5%. back to you. >> now let's go to chicago and get to rick santelli. some in your bond world are

saying yields are likely on climb this year, but not famed investor jeff gundlach. he's on the record saying he sees yields falling maybe to as low as 1.4%. do you agree? >> i agree they will fall. i guess the only thing that there would be some debate on is exactly how far they will fall. i think mr. gundlach has been accurate in assessing that global growth just isn't there and of course things like europe and energy may not necessarily help the investor class. but on the latter, i look for it to help the retail, the main street class. but there is two flies in his ointment. one is in order to see us actually go down to a 1.0 yield and test the historic low, we have to see bund yields go negative. and second is we have to constantly assume the fed will have a tightening in 2015. because the minute we didnon't that, reversal of the flattening

will put a bid on the long end. crude oil taking on a new 5 1/2 year low and tracking below 50 bucks for the first time since april of 2009 earlier today. jackie deangelis. where are trade he traders saying is the next stop 1234. >> definitely the four handle. if not today, within the next few days. of course a very key psychological mark. the selling pressure was intense even though off session lows right now. what is moving crude is the stronger dollar. traders are expects to continue to strength p throughout the year. but also that supply/demand balance that we've been watching so closely in terms of global supply, there is too much oil out there. again, you had saudi arabia saying they will cut them to the u.s., but nothing on production. and a lot of people worried

about what is happening in the eurozone and worried that global growth could slow further. if that supply/demand balance goes out of whack even more, some traders are saying we could seat 30s like we did in 2009. now, you guys are always following gas prices, so i want to give you you an update. national average for a gavel regular, $2.20. just down 9 cents in the last week alone. this is 102 days of straight declines. very significant according to aaa. and of course if these prices continue to go lower, consumers can expect even more of a gift at the pump. back to you. >> so let us dive deeper into oil, oil stocks, and maybe some treasu treasure. john white is joining us thousand. you heard what jackie said. your average oil price for next year is $75. you are extremely high compared to many, but you're not being

b backing down. >> no, we are not. we may be a little early, about your our view is the oversupply is the main driver. we don't see a problem with demand. libya came back online in the second quarter of this year -- of last year and that's about when you had oil prices start to go down. and during that time, you've had the u.s. shale revolution added 3 million barrels a day and that oil has to find a home. >> if you're predicting 75 bucks a barrel, you're assuming they will go back up. when we will hit bottom? i think when gundlach was asked, he said no one will know until they stop falling. >> well, that's right. and our price forecast is $70 in the first quarter. $75, $75, second and third

quarter. and then $80 in the fourth quarter. and our projection is in the context of 1.5% to 2% global gdp growth. so that type of ghchltdp growth to get you about 7,000 barrels a day, pick up in demand and the your supply is consensus is about 1 to 1.2 million barrels a day about that. >> are we at about tbottom now? >> that would be a call for a technician. >> you're relatively new at roth. are all those companies able to withstand this price level, and if so, for how long? we think you'll see a lot of cuts to cap ecut s to capex. all have hedges in place. so we're not concerned about 2015 financial strength. >> are there companies that

won't be able to make it? >> there is plenty of leveraged companies out there. the high yield market has been very strong. and companies have availed themselves of borrowing money. >> do you care to mention any particularly vulnerable names? >> i don't cover any highly leveraged companies at this point. >> and in fact it's interesting. the names you cover, clayton williams, diamond back, of the ones you you cover, three of the four are up. when i see the equities turning before the underlying commodities, it seems like a positive sign. >> we focused our initial coverage on permian basbasin, o of the best areas to drill the unconventional shale wells. and we focused our coverage on companies that have his are torically strong finding and development costs. it's a commodity business. if you can find oil and gas at the cheap levels, your equities will do well in the long run. >> john, thank you very much for

joining us today. >> thank you. from oil to the dollar. and of course they're linked. the dollar breaking out to a new high. so let's take a look at our chart. matt points out the dollar is you can quote, meaningfully above its double topped highs from fr 2009 and 2010 and is approaching another double top. let's bring in alan ruskin. i want to start with the euro. i was there for the parity party for the australian dollar. i was cheering it it on at the time. are we looking for another parity party but this time with euro dollar? >> i think it's premature 2015, but maybe 2017. longer term trend is very much in play. we were originally calling for 115 for year end 2015. that was a bold call about four to five weeks ago and now it looks like we'll see it in the next few week. but definitely the trend for a

stronger dollar. >> how much stronger? because it makes people start to say maybe we're overshooting a little bit. some people are saying maybe the europe and u.s. dollar is priced in a lot of the good stuff, a lot sbft rate he differentials, a lot of weakness, et cetera. maybe a lot of good news for the dollar is already priced in. is that a scenario you see? >> no, i don't think so necessarily. i think when you look at the longer term trends, you actually have to look at long term interest rates, and in five years time, they expect to be a 46 basis points. that is still below the u.s. two day yield that prevails today. so when you look at interest rate trends as they are likely to diverge over a long period of time, anywhere from two, three, four, five years out, it would work in favor of the dollar. so i think it would be premature to think in terms of this dollar rally running out of steam. the one thing to consider is of course that positioning has been fairly extended, but it has been extended for quite some time.

i don't think it will stop the dollar from rallying further. >> if mandy and i were on a see-saw, i know which way it would go because i'm the heavy guy. the u.s. for years has been the heavy guy with qe. just throwing money at it. do you expect a huge sort of qe type program from the eurozone which would then tilt it even further the other way, make europe the fat kid? >> absolutely. so i think a drill i don't know euros balance sheet expansion for this year seems like something like a minimum condition that one would expect in terms of sovereign qe related buying from the ecb. so that will give a big kick. the problem i think for the ecb is that that probably won't be terribly effective as far as growth is concerned. 9 markets can expect more and are more and more. so absolutely if you're thinking in terms of this tilting very heavily in one direction to favorite dollar tlarks's certain, that's certainly the case. >> they might be disappointed

with the qe. it might have the same effects. going into the second half of the year, assuming with get some kind of sovereign eurozone qe, if it doesn't take hold, what happens to the euro? if it doesn't have the choir desired impact. >> if qe one doesn't work, we will try qe two or double up. sort of like japan. it will lead to disconcerting views in terms growth. so imconcerned that will hasten the weakness in the euro. >> any chance greece leaves the eurozone? >> no, i think the probability is extremely low. clearly that is a big factor that is weighing on the euro right now as we talk. it's weighing on global risk. i think that could persist until after the election.

but i actually expect that even if there is a win, they will prove to be quite pragmatic and greece will remain in the euro. >> alan, thank you very much. now let's get back to the macro markets and your money. your glee at the end of the year 401(k) statement may just be waning. because stocks ending the previous year and starting this year with the declines for the first time since 2008. let's bring in jerry castilini. we love stocks like that. but is that a meaningless coincidence or is something fundamentally changed? >> there is a bunch of fundamentals that we ended last year with that i think we probably haven't resolved yet p. oil is probably the biggest one. about you now with currency devaluations pretty broad with a break in the 1.20 level in the euro, you're going to be talking about some of these deflationary

forces in a global sense and what impact that should have on u.s. stocks are what people are trying to solve to. biggest losers are industrials and energy wills today, but we haven't focused on what the big winners are likely to be this month and probably the full year. >> what do you think are the winners? >> well, start with the concept that it's going to be hard to make a case for significantly higher interest rates. so lower and lower rates are going to put a bigger and bigger bid on the valuations globally. but specifically in the united states, we easily have some of the most inexpensively traded growth names maybe globally. when you consider the biggest part of the u.s. growth stock universe is probably these 12 to 18 multiple stocks that with 2% long term interest rates, easily deserve an upgrade of five

multiple points. if you're a company that can grow 15% and you're comparing yourself to 2% yield on the long term treasury, there is no way you should trade there. you should be at 20 multiple stock, you should go up significantly from here. and that's already happened with the defensive socks, consumer nondurables. and look how good a year the utilities had last year. again, giving premium to consistent and visible earnings has just begun and think about what it will do to all these companies in the united states. the retailers foi er ers for ex. home depot, macy's. >> i'll give you the statistic and i was going to save it for later, but you brought it up, so let's do it. this is the statistic that bothers me more than any other that i've heard recently. of the 85 or so consumer discretionary names in the s&p 500, 50 plus are down over the past month. 50 plus are down out of 80 something. i thought lower gas prices were

supposed to help all the consumer discretionary companies. >> well, they haven't reported earnings yet. and the odds of a surprise are probably better than now than they were a month ago. number two, when you turn a cycle like this, it doesn't have to hold every week and every day. give this space time. they're still evolving from pure hard brick retailers into some kind of a hybrid and there are still going to be losers there. which is why it's important to get the names like may scy's or home depot right. you focus on the names that have clear shots in the variable margin line that higher revenues will give them and you will do extremely well. there are some that still we have to watch out for. and that's not a surprise. >> and are you having to bring down your s&p earnings estimates? because it's already happening

out there in the market due it largely lower energy prices, lower energy earnings and the stronger dollar. about one third of the s&p 500 sales on average are from abroad. stronger dollar won't help that unless you're extremely hedged. >> you're right. you bring up the best point. what happens to the overall as you point out overall s&p number. clearly the headwind in oil will affect the big oils and clearly the multinationals have risk in terms of dollar denominated earnings. but remember, a lot of those earnings are hedged both in oil price terms and in currencies. and usually the effect is much less than what people perceive early on. so give the market some feedback or kick back from this, but what we expect to see in the offset is going to be the surprisingly strong consumer driven numbers that have come as this wealth transfer takes place. and the buyers of commodity based product and services continue to rise.

and that's what we think the up side is going to be much greater than this will pull back here on the down side. >> i hope you're right. >> history says with all due respect, history says stronger dollar means stronger stock market. >> absolutely. >> but the dollar goes up because the economy goes up and that helps everybody. >> jerry, thank you. let's get to morgan brennan for market flash. >> pharmaceuticals spiking on a dow jones report that the company is seeking a buyer with goldman sachs. deal could be worth more than $4.5 million. and we're seeing the stock trading up about 9% right now. back to you. 9.5%. >> that was a flash. that was quick. thank you very much. >> a flash of a flash. >> in the pan. all right. u.s. dollar up, oil way down. what does this tell us about the global economy. steve liesman knows. plus one small cap stock that

citigroup says could jump by 50%. >> and we're also bringing you you moo more actionable advice on what to do on a down day like today.

welcome back to "street signs". and welcome back volatility. stocks and oil are getting slammed. they are sending the vix higher. the so-called gauge of fear up

75% in the past month. so what if any conclusions can we draw from the big moves over the past month? let's get now to sherlock, steve liesman. steve, is there anything elementary here? >> absolutely. that's a good word. this is the biggest gathering of economists all year. this is the volatility people talked about would happen because it comes from the diver gept monetary policies and divergent economic outlooks that you have around the world today, twit the weakness in japan, weakness in europe and strength in the united states. here is what the boston fed president said over the weekend about this. >> my own view is some of the movements we've seen in the exchange rates reflects very

aggressive policy actions in japan in anticipation of strong policy actions in europe which, you you know, i think are very healthy. >> that of course was san francisco fed president john williams. i don't know if we have that particular sound bite from eric rosengren where he talked about the different central bank policies away the world. rosengren it say it's possible to manage this tightening cycle in the united states without a lot of volatility. here's what he said. >> central bank balance sheets are in a very different position than they normally are. so that is an unusual fee which are of this cycle. we're in a different inflation experience. low inflation continues to be a problem in the major developed economies. >> what you hear them talking about is the idea of being very gradual in their tightening when

it comes. williams stuck to the idea of consideration of rate hikes in the middle of this year. but both said that the pace of tightening would be very grad l gradual. not a lot of optimism about europe, but there is optimism that the united states could escape that elements happening ye overseas. >> remember how little concern they experienced in the last statement. the people at the conference, are they suggesting or speculating that what is happening in europe right now might have some bearing on the path of monetary policy here in the united states this year? >> they talk about it in their economic way by saying it is the biggest risk out there. but i think they're a little con founded that what has happened overseas hasn't affected us yet, so they think there is something going on that might shield us.

john williams said the tail winds include the strong u.s. momentum, job growth and low oil prices. so he thinks those things will youth weigh the head winds from overseas. >> as a percentage of gdp, the united states sibl tis i believ lowest of any major economy or country in the world in terms of the value of exports. in other words we would be least impacted in the slowdown of exports of any major country around the world. >> that's right. it's something like 15 or 16% compare that to for example the uk which would be 27 or 30%. somewhere right in there. so the trade channel would be much more muted. also the idea of being a big th. we're much more of a price maker

than a price taker. so we're much more setting the pace than the victims of a pace. >> thank you very much, steve liesman. the best u.s. stocks to play right now and all miles per hour fund managers give us their picks ahead. >> the one sector that is maybe just what the doctor ordered on a day like today. we'll tell you who that is with the dow down nearly 300 points. , legalzoom has your back. over the last 10 years we've helped over one million business owners get started. visit us today for legal help you can count on, to start and run your business. legalzoom. legal help is here.

auto stocks getting hit despite pretty strong numbers in december. how will it impact consumers on the car lot through lower glen rice prices? group one owns and operates 150 auto dealerships. earl, you have a great view. give us your take on what you saw. because we've only got the benefit of the numbers. >> it was another very strong month for auto sales in december. so the momentum that we have in the second half of the year appears to be intact. and i think things are looking up. the lower gasoline prices i think help consumers quite a bit

when they're considering the purchase of an automobile. >> i know, earl, you're at the top, but you probably get to speak with your salesmen and sales managers. has anybody literally said, man, this customer was not going to buy that truck or car but they will now because of the price of oil and gas? >> actually i spend a lot of time in dealerships. i haven't heard that verbatim, but there is an attitude that that there are many more considering larger vehicles. so the top of mind top he can, fuel economy, isn't top of mind at the moment. and what is really the key is lower gasoline prices provide for many, many consumers, immediate increases in disposable income. >> i have question on that topic for you. but let's just bring our viewers and our listeners the close, the settle for crude prices. earlier today, we were below 50 buck as barrel for the first

time since april of 2009. there we go.settle was $50.04. we're currently sitting $49.83. we'll get more on that in a second. but earl, let me get back to you. are you having any trouble or are you hearing about any of your dealers having any trouble getting enough of the trucks and pickups and suvs that the bigger sized autos that apparently are very popular. >> not yet. i dream about that, though. that's a good thing when we have demand above supply, correct? but i think that could happen. and if it does, it's likely to happen as we move into the spring where march and april are very big industry selling months. and i think there is a clear shift toward those types of vehicles in this market. >> i want you you to look a little bit home ward because i know you have a lot of big dealerships right there in houston where you're based. there a down side. are you noticing any slowdown at

home because of oil and gas prices? >> not yet. but that's a good point. we're very sensitive to that because we do have an energy driven economy in the houston area. and we're vigilant, but we have not seen that yet fortunately. but it could happen. >> earl, thank you very much for joining us. >> you're welcome. >> so as we noted, oil right about 50 bucks a barrel. $49.96, $49.97. i feel like bob barker. jim, if it closed at $50.01, i could care less. but the point is we are down more than 50% from our high just six months ago. don't lie to us, bro. nobody thought this would happen. >> nobody out it would happen. i mean, even when i was bearish, this is wildly beyond what i consider bearish. about a week ago, maybe a week and a half ago, it broke $54. from a technical standpoint, it

looked like it would go down from that potentially to even about $40. for the last week, it seemed reluctant to go down and we look at what has changed today and what that is the strong dollar. remember, these commodity, and oil, it's become very fashionable to talk about saudi and supply. but you have to remember that the back beat of a strong dollar is also weighing on these commodity prices, too. so i think it has lower to go. i do think when it's in the high 40s, the puppeteers who are controlling will or maybe letting go of control of this might start to get a little worried and you might hear rhetoric that assumes the price a little bit. but right now, i don't see a reason to buy oil. >> so how much lower can it go? i think the actual target goes as low as 40, but to your point, even that might be a little low for some of the -- >> and i believe someone will get worried and someone will support the price between 47 and 48. i have a lesser important

technical objective there and that's where i think i would probably start to establish a long position. i think. we'll see if i have the guts to do that when it get there is. but that's where i think it's going. >> let's not forget that saudi arabia may have enough cash, trillions, whatever it is that they can support this kind ever a price. they can withstand it. they are not the only -- >> right. >> no way some of the other opec and not opec nations can with tap these kind of prices for long. somebody will have to cut production soon. they have to sell more oil, so they're actually exacerbating the problem. but if opec whispers maybe we start to support it here, they will get a lot of agreements around that table is my guess. and it's one thing to say, okay, let's let the price of oil go lower to crush all our competition, but there might be some anxiety when you see it going down as fast as it has. so i don't think that it will be

easy sleds the next ten bucks. i think things get more difficult. >> jim, thank you so much. crude fell 46 respec46% in 2014. >> that was so last year. here is the last opec meeting. in front of the camera, we're fine. behind the scene, help us. are you looking for opportunities? we have a small cap name that citigroup says could jump 50%. >> and of course we're all over the market selloff for you with the s&p 500 having its worth day in three months. introducing aleve pm... the pm pain reliever. that dares to work all the way until... [birds chirping] the am.

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on a day like today, finding opportunities may be even more important than ever. so let's get right to street talk. first up we have zimmer holdings. jpmorgan upping to overweight. >> so really a valuation call from jpmorgan. they note the stock trades at less than 13 times their two year out estimates. they also say that management does feneed to execute, but pri

target 20% above the current price. >> and domino's pizza upgrade to buy. >> getting their full year 2015 eps estimates raised. and they should note, they say it themselves, they're in the highest side of the rest of wall street, so one of the bullish out there. still janney raised it 110, that's about 15% up side. >> and moving on to lab corp oig when we talk about opportunities, this is the only new high on the s&p 500. >> that's it? >> today. >> citigroup upgrades to a buy. a lot of deals in this space

lately. price target going up to 132 bucks a share. lab corp, that's about 17% up side. >> bob evans, jani upgrading this to a buy, as well. >> 20% up side seen on bobe. so maybe this is the space that is getting the most benefit from lower gas prices. gas prices are down. >> and finally today's under the radar pick, it is rcs capital. >> they distribute mutual funds. big firm. a minute any conglomerate actually. only four analysts cover the name. but citigroup adding it to their u.s. focus list. more than 50% upside to where it

opened this morning. that was our tease. the dow has been down about 300 points for the last couple hours. and indeed this is our low for the day. 325 to 17,507. all kinds of great stats about worst end to the year, wofrs start to the year. >> i think the actual low was about 330, but this is the worst day for the dow and s&p in three months. and vix i think is up about 17% or so came. it was up 40% last year. biggest gain since 2008. >> the fear gauge there. there is one thing, though, that is higher today. and that's what we're showing our viewers thousa s now. the ticker is uup, the dollar bull etf, if you believe the u.s. dollar will continue to string strengthen, not recommending it, but it's the most widely traded

of the dollar bull etfs. >> what has gotten hit more, canadian dollar or the aussie dollar? >> that, i don't know. we'll be right back.

tonight harry smith takes a look at how legal marijuana is impacting colorado. it's tonight 9 o:00 eastern onl on cnbc. >> let's take a look at the santa claus rally. today is the last day of the santa claus rally. and it hasn't really been a rally at all. the s&p is down about 3%. when was the last time -- worst santa claus rally, 1999. there you go. meantime the euro drop to go a new nine year low. what does it all mean for the large cap investor? let's bring in scott. thank you very much for joining us. maybe you can settle a question

we were debating earlier on and that is to what degree the stronger dollar will hurt a number of these multinational large caps. because he i know a lot are hedged, but not necessarily fully. >> i think the market might get spooked.but not necessarily ful. >> i think the market might get spooked. if we make a move from the 119 ham and we get down to 110 and maybe break through that or test it i think the market might be nervous about that. but you mentioned hedging. a lot of these companies have their own trading desks set up. they may not did a lot of hedges as far as a penlg rcentage of t exposure, but when they start to see things move around, they start to hedge. i think it will be a head wind for earnings. we have a $128 number out there for the s&p 500.

this thmight be a touch conservative. i don't think it will be as bad as some people fear. but certainly the market is going to throw the baby out with the bath water at some point. and i think that's probably if we quickly break through 110. >> so when we talk about the stock market, though, scott, help us out because we don't know how much the dollar will ultimately matter. so with you and your team on a scale of 1-10, how much does the u.s. dollar factor into your modeling? >> it's not in the top ten things we look at, brian. and i would say it is a couple of notches from the least important. and the reason i say that is because you typically don't frequently see -- if you've had a move like we've already seen, one that carries through in the same type of speed, so i think it's something that we want to keep an eye on, but i definitely

don't think it's something that we want to make our decisions on. as a matter of fact, i would argue that through from now really probably through the end of this cycle, these larger cap stocks will outperform small caps. i think they will outperform them by a pretty wide margin. i think that even though they have a lot of international exposure, better balance sheets, easier access to credit, they have lots of product, they know how to sell abroad, people will want to own large cap stocks. not just this year, but i would argue probably for the next couple of years. >> so which of these large cap potential outperformers that you are talking about are currently being thrown out with the bath water? where are the war begbargains b created? >> well, i'm looking at it from a macro type of standpoint. look at the action today. industrials, lots of fears out there over global growth. what is going on in dhi will made, what is happening in the eurozone. i mean, i'd be looking in here at industrials, i'd look at

information technology. of course consumer discretionary stocks, they tend to not have nearly as much international exposure as some of the other sectors. but as far as the ones that have lots of international exposure, industrials and technology, i'd be focusing on those. of course we're underweight staples. they have a lot of international exposure, as well. but i think you want to try to -- you want to try to pick some spots here in the industrials and technology especially if you're underweight and not overweight those sectors. this would be a pretty good opportunity to pick some of those names up. >> i guess the idea is buy low, sell high, right? we often forget that. >> well, it is -- we don't want to catch the falling knife in energy necessarily, but i think in industrials and some of these other sectors, i think you're wise to start picking a few spots, picking a few stocks that have lots of international

exposure. and that are going to do well as europe and the rest of the world stabilizes and probably performs a little better next year. >> knives and babies in bath water all in one segment. scott, thank you very much. >> how many more cliches? >> happy new year to you. >> you, too. get indoor plumbing, people. drain the water. down day. but there is some good news, especially in the bio tech sector. we'll tell you what that is. oil is trading $49.89 a barrel. we are back after this.

absolutely difficult day for the dow jones industrial average now down 345 points. we'll call that 2%. 17,487. technically, if you end on your

lows of the day, tends to be a bad set-up for the following day and the last hour of trading, really will be the most important hour of the trading day today. >> for once. >> a bright today is gilead sciences. there are stock that is are up. lifting the biotech sector and let's bring in meg terrell. why is it up? >> it's all about drug pricing. remember last month when the sector took a hit when gilead's two hepatitis-c drugs were going to be excluded and took a hit on the stock and the right of the industries and people worried that maybe other pharmacy benefits managers excuse them from their plans and cvs caremark. today we have news that cvs is going to include the drugs of gilead and exclude the competitor's. and so, it's really interesting to see that, you know, gilead is

maybe more expensive treatment and folks speculate they're giving a big discount to get the exclusive price. >> maybe $1,000 a pill, right? unfortunately we don't have time. >> that's okay. >> that's the controversy. thank you. >> thank you. >> that's because the stock market is doing what it's doing and let's get back to the markets. dow dropping 345. gordon, is there any one thing that is causing this decline today? >> not one thing. i would just say it's a rather sobering way to come back from a new year's vacation. look. we came in here, crude's getting smoked. i mean, a lot of curves are hit hard here and all sort of on the heels of europe. everything we're seeing over there, recession and deflation. down 4% already. so the real question becomes, you know, what exactly is the action telling you here? you know, when you have transports down and oil down.

the crude shorts are loving it and spilling over to equities but what's that portend? one of the things guys are talking about which is a little bit sobering again is the fact that the fed well obviously we have turned the calendar, the fed has to do something and we anticipate a little bit of a lift in rates and obviously is encouraging. and then the question is, what sort of trading are we seeing here? selloff in oil and guys rotate to try to figure out what sectors are going to benefit? discretionary and other things. or is it just taking it off the table right now? let's wait until it settles down and find another level and get back in. it's kind of down on the lows towards the end of the day, obviously, we'll see what happens right on the bell with the closing trades, but, you know, that could -- that suggests w over into the other markets globally and maybe straight through into tomorrow. >> brian a moment ago was pulling up a chart and saying

technically speaking it's a bearish signal if you close at the lows of the day and stale hour of trade left to go. do you think that's the case? not just pilling over to overseas markets overnight but for us, as well. do you think we have sort of a capitulation moment to come? do we have much further weakness to go? >> i wouldn't say yet, mandy. but i would say at this point there's no white knight out here to step in here and try to turn this thing back in a hurry. i think we'll languish on the lows and trade down from here and i don't think we pet that capitulation you're talking about or nor rally from here either. >> gordon, we appreciate your time. such short notice. thank you very much. >> pleasure. >> thank you for watching "street signs." "closing bell" starts right now. but i'm a bit skeptical of sure things. why's that? look what daddy's got... ahhhhhhhhhh!!!!!

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that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. welcome to "the closing bell," everybody. i'm kelly evans with bill griffeth. hello there. >> happy new year. >> not a happy day on the stock market. the dow off 350. >> started this morning, european markets with a big hit. concerns of greece. the german market down about 3%. oil dipping below $50. that's been a bad thing for equities today. so sort of aou