ool and actually get these degrees. that's going to be the key. two years is great if you complete a degree. in that period of time. taking a few classes and then dropping out, you won't be that much better than a high schooldy low ma. >> thank you very much. >> sure. >> thank you, steve, for joining us. >> have a great weekend, mandy, and everybody. >> thank you for watching and "closing bell" starts right now. thank you, mandy. welcome to "the closing bell," everybody. i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. market volatility and a bloody resolution to the manhunt in france. they're sorting things out in and around paris and northeast of paris. with the hostages and the hostage takers. but it was -- and, you know to some degree this did have an impact on the markets and saw a

decline in the dow and other major averages at this thing coming a head. when they stormed the store and the printing press area there. the dow did fall to that low of the day of about 229-point decline and come back right now. back 143. >> take a quick look at the 10-year, as well. this has been rallying as we know for a number of reasons and quite sometime and perhaps an extra bid on the flight to safety trade today. below 2% again. that u.s. 10-year. watching it for everything from the influence on the mortgage market to what it does ultimately send in terms of signals for the federal reserve here and policy decisions coming up and we have heard from members expressing like charlie evan this is morning to rather be cautious than hasty to raising factors. >> if you hang on to that for a second longer cross currents and you can see that after the jobs number came out, stronger than expected in many ways.

you saw the yields rise but then they were coming much lower, maybe a flight to safety and around the time of the siege in paris. so, you know all kinds of things going on affecting the markets today. >> and here's where we stand and the first week of 2015 been a roller coaster ride and today the dow off 143 points. s&p's giving up about 14. a ten nasdaq is outperformer interestingly today. only down about 19 points at the moment. >> let's get to the "closing bell" exchange for the busy friday. nicole sinclair ken mahoney, both of them are joining us at the big board here today. contributor greg epp, steve liesman, what a day he's had and now joins us on "closing bell" and rick santelli in chicago, as well. steve, let me start with you on the jobs number. everything looked good. why was wage growth lower in the

face of everything else that was so positive in that report? >> yeah. my neck hurts a little bit. it was a great jobs number. wages were terrible. back and forth. some question about whether or not there's volatility that's compositional in the sense of low wage hires and not necessarily any high wage hiring that went on out there, although some work by drew madison contradicted that saying there's been in december especially job growth in high-wage industry sectors and taking a pass on that in terms of waiting to see if this is indeed a problem. if maybe its the first sign of declareary forces on our shore here. some sort of result of what's happening overseas in europe. but if that's the case then what we know is that the way to fix it is with more job growth an we certainly got a lot of it. and the 250 is a good number. add on top of that 50,000 of revisions. job growth being broad based an

all of those tell me that the job market is reasonably healthy. we have to wait and see confirmation to be worried about negative wage growth here. >> greg if you know there are some saying perhaps the weak wages owed to the fact of people on the longer termed unemployed in the labor force. look, if the whole proportion of people working really jumped in this report i think you could write that story. but that didn't happen did it? >> it's kind of hard to like steve was saying very hard to explain what's going on with wages and the compositional impact of the long-term unemployed coming in that could be at work but, honestly like this weak wage story has been so much in play for so many years now that i think you need a bigger story to explain it than that. i mean it's speaking to the lack of leverage. i think labor has in the market and something to the fact that firms would have cut wages further in the recession but they couldn't so they're not giving wage increases now.

i think if you're the fed you stick with your fundamental story that the unemployment rate is telling the key story here and not just the unemployment rate but people working part time for quick reasons going down. long-term unemployment is coming down. on balance, kind of a wash and i think keeps them on track to go ahead with tightening around the middle of this year. >> for what it's worth, i would reading a blog this afternoon and called that wage drop an anomaly, working itself out. >> it was very broad based on a historical basis, one of the largest we have seen. >> yes. >> i just wonder rick what your response is to all of these cross currents here. >> i think that the job growth is the optimistic part. 273,000 dropping out of the labor force is not the optimistic part. 62.7 we had that read today equalling a read in '14 equals two reads we had in '78 and still have to go back to october of '77 to find a lower read on

participation so i'm not sure i agree with greg ipp and no doubt things improve but the benchmark for how we're doing as an economy trying to approach some type of escape velocity isn't about doing good relative to history or a run of series of numbers. it's about generally the entire economy benefiting in ways to meet the demand of the economy and we're far from that escape velocity and the real issue is are there better medicines to try to help the growth and the wages and, of course if those two things fall in line i don't think we'll have to worry about what price pressures although the weak currencies abroad it's definitely a dynamic whether you see it in the trade deficit numbers or inventory numbers. you need to pay attention to. >> nicole sinclair what do you make of the market response to this? i don't know if it's a snap back from yesterday or a response to the jobs number but, you know you're the senior stock analyst

there. analyze this market that we have had incredible volatility first five, six trading days of the year. >> i think today everyone wants to point to the jobs report. you cited the tragic events in france, of course. we have low oil prices also affecting the market. it was a very strong jobs report and even those areas of slack, there's still low participation rate and areas that the fed is looking to to continue this low-rate environment and not tighten sooner than many were expecting and i think there are a lot of positives there. we're still in this vortex of no earnings and next week we're going to be kicking off with alc 0 a an enthat's important. what are they saying about the underlying end markets and i think we are much more voweler inible to macro data points to debate all day. >> can i pick up on that for a second? i think there's been a lot of

uncertainty, kelly, and we have talked about this, over the winners and losers on oil prices and i think the lz earls have been obvious but the winners have not been and i'm thinking she mentioned alcao and on the input cost side that it could be one of the winners and interesting to see the kind of guidance and information we get from companies on earnings when it comes to how lower oil and come phdty prices are playing. >> before you respond, ken mahoney, curious which earnings you are looking at next week and who are possible beneficiaries beyond the consumers plays mentioned. >> consumers is most obvious one. we think the market is constructive this year. look. we will have to deal with more volatility and look at this week. we have stronger tailwinds, stronger headwinds at the same time and what every guest said here and those stronger tailwinds are obvious. the consumer will feel better. more confident. more spending. the headwinds remain.

most coming from oversaes aenl it's a battle and here in the u.s. and invested money around the world flows here to the u.s., to dollar denominated stocks. multinationals may have hair cut in earnings because of the stronger dollar but we are constructive on the market and calling for. >> how are you allocated? >> we like to have some money on the side for a pullback. you can never be full 100% in the market but we still like -- we still call for a choppy market with an upward bias and play the chops. >> greg you know market responds to pieces of economic data are often not just a response to the data but the second guessing trying to think how the fed will ve pond. what do you think jantd yellen is thinking about today's jobs sflort. >> she is probably whipped the way steve was this morning, right? because cuts in both directions. you have an unemployment rate which is at the top end of the

range of their estimate of the long-term full employment unemployment rate. you can justify a positive fed funds rate at today's unemployment level. same time you have a perplexing decline in hourly wages. you have inflation perhaps headed in the negative territory in the month of january, february because of when's happening with gasoline prices. i think it's helpful to lay out for us in these situations follow a so-called balanced approach. that's to say, they look at the unemployment piece and they look at the inflation piece and decide what do they have to worry about most? my bet is they say this economy is strong enough and getting strong enough it's worth starting the process of normalizing interest rates and shift attention of where we start to where we end. it's a slow pace of tightening. >> hold that thought for a minute. we are going to squeeze in a market flash. courtney, what is going on? >> something to tell you what's going on at citigroup.

check out shares of sessions lows. "wall street journal" reporting the pool of money set aside is cut for poor performance in the final weeks of the year. bonuses will decrease by 5% to 10% on average. year over year you can see now citigroup shares trading down 2% at the lows of the session. kelly, back to you. >> eager, nicole do you have a response? especially keeping in mind some of the financials have been underperformers on the week. jpmorgan and citi in particular. what do you think is going on? >> bank earnings come next week and trade off of net income margin and obviously we know rates are low and going to be very important. we are in a very low interest rate environment. in terms of citi bonuses, i think from a comp perspective, we have been seeing this trend happen for a number of years now. that's not necessarily a surprise. i do think some of the best bank stories are the ones transitioning away from -- you know to a more stable type of model seeing regular rev lou

streams that are more predictable. i don't see that citi news alert as a necessary surprise more a continuation of the trend. thinkty margin is what's really a focus next week. >> i can't see the investment banker bonuses look like. record year. have a good week. appreciate it. see you later. little more than 45 minutes to go into the close here. the dow off 109 lower on the session. looking to see how we close out the week and looks like a red one. s&p off half a percent, as well. nasdaq giving up 12. >> yep. more on this busy day. not only on wall street but around the world. much ahead on the day's big moves. plus how much pressure does today's strong jobs report put on fed policy makers to raise rates sooner than later? that's something to talk about coming up here. amid that, a bloody end to the manhunt in france. three suspects dead and some hostages, too.

a live report and an anti-terrorism reporting inner working of terror cells. what triggers them to action, stay tuned. can't say thank you enough. you have made my life special by being apart of it. (everyone) cheers! glad you made it buddy. thanks for inviting me. thanks again my friends. for everything for all your help. through all life's milestones our trusted advisors are with you every step of the way. congratulations! thanks for helping me plan for my retirement. you should come celebrate with us. i'd be honored. plan for your goals with advisors you know and trust. so you can celebrate today and feel confident about tomorrow. chase. so you can. [ male announcer ] approaching medicare eligibility? don't put off checking out your medicare options until 65. now is a good time to get the ball rolling. medicare only covers about 80% of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company, come in. like all standardized

medicare supplement insurance plans they could help save you in out-of-pocket medical costs. taking informed steps really makes a difference later. that's what it means to go long™. call now and request this free decision guide and explore the range of aarp medicare supplement plans. all plans like these let you choose any doctor or hospital that accepts medicare patients. these are the only medicare supplement insurance plans endorsed by aarp. call now and request your free decision guide and start gathering the information you need to help you go long™. ♪ ♪

welcome back. a day of hydra ma in france. you probably have heard by now that the two gunmen responsible for the massacre at the charlie he hedbo office were killed. they were part of a hostage situation north of france. they were stormed and killed both of those gunmen there northeast of paris and in paris itself a supermarket, an orthodox jewish supermarket, there was held hostage by another gunman for several hours. it is unclear -- the gunman there cleared and unclear how many hostages got out and learning more about that in an hour or so. the prosecutor in the whole situation in france will be holding a news conference and more details at this time. >> meanwhile, the suspects reportedly linked to terrorist cells. >> with us is bradley schreiber

former senior adviser for the department of homeland security. welcome back. >> thank you for having me. >> it is thought that the people involved, the gunmen in all of these various hostage situations this week part of a cell. it's unclear that that's actually the case but that's the thought right now. describe for us how this happens, how these people come together and begin the process of wanting to inflict the kind of terrorism that we saw this week in france. >> well i think what you are seeing is an increase of activity by various terrorist organizations like al qaeda in the arabian peninsula in syria and coming to get trained, financed and learn how to engage in various operations. while it is not clear whether or not this was an attack that was coordinated by anyone in isis or

aqap it still remains to be seen and the indications are there that this is a well coordinated, well financed operation. >> how does describe the terrorist cells recruit them? >> the challenge is since 9/11 you know law enforcement both federal, state and local and the united states and abroad doing a good job of tracking individuals who we suspect to be terrorists. we have -- back in the summer there was an evaluation about how many americans, how many europeans heading over to fight in the -- with isis in syria and some of the numbers from france have been startling. so right now, what they're doing is going through the lists that they have and identifying who those individuals are and make sure that they keep track of them. the french police do a very very good job about this as well as interpoll and the united states intelligence community. >> plenty of analysts like yourself believe we have to worry about this in this country, as well. where do you think we're most

vulnerable and how do we protect ourselves? >> i think that there's always -- since 9/11 i think that this idea that we have steady states is really critical here. in the world that i work in you have to always be vigilant. you have to be -- the private sector has to be aware that the events could potentially happen. the biggest challenge we have in my space is called the optimism factor where an event happens, some time happens and forget about it and then everything goes on to be normal. the fact is that everybody has to be diligent and making sure like boston last year to all help each ore should an event like this occur. >> special training bradley, required to monitor the cells, identify them and think about getting involved in doing something about them or left largely to police forces? are they equipped for all of this? >> well, the police forces and our intelligence community are very well prepared to handle all of this but private sector has a role to play and there were

partnership entities that allow for that information sharing so we all have a role to play but law enforcement certainly is at the front line of this as well as the intelligence community. they're doing an outstanding job. >> what questions will you want answers to about these people looking at on the screen the suspects the gunmen and women by the way who's still at large at this point. what do you want to know about them to help you better understand how these cells come together? >> well, i think we need to do and law enforcement in europe is certainly working on this now is taking a look at what their history was, where did they come from, where did they go? how did they get recruited? do they have current connections? who were they commune katding with online and on telephone? one-time incident at the moment or part of a more larger coordinated attack? once we get that then we'll have a better idea of how to go and dismantle the cell other cells that may be available. >> clearly, you know paris was a target in this case because of

the magazine that had so enraged many of those fundamentalists muslims in this case. that was i don't want to call it a logical target and not perhaps that surprising. where would you imagine are the unsurprising targets in this country, as well? >> well i don't want to give out too much but anyplace can be a target. anyplace that you have population that is, you know, over 10, 15 20 people. a mall for example. community centers. soft target that is we have to really work towards in this country to try to reinforce their security posture as best as we possibly can. we are trying to deal with the pendulum of dealing with trying to be overprepared and underprepared at the same time. >> good way to put it. thank you so much. bradley schreiber for us following the tragic events in paris this week. >> thank you. >> you bet. thanks. 40 minutes left in the trading session. slowly the market's coming back at the low of the day the dow

down about 230 points. now down 108. s&p's down 9. nasdaq down just 13 points. closing bell continues in two.

welcome back. well, we have about half the declines at the worst of the session the dow off 222. but still, down 115 now and it's the worst performer of the major indexes. s&p off half a percent. dow off two thirds and nasdaq off .3%. >> another tough week for oil.

bulls and my local gas station owner. jackie deangelis, how much did they lose this week? >> another rough week and ended in negative territory. wti down 43 cents. $48.36 at the close and rebound off of session lows as a similar action you are seeing in the market today. brent trading under $50 most of the day and did manage to settle above $50 and it was in negative territory, as well. the spread between the two is tightening, you mentioned it on twitter. something that traders are eyeing and most people saying they didn't want to be short -- pardon me. didn't want to be long going into the weekend. strengthening dollar concerning and the index down a little bit today and the opec comments this week indicating that the cartel is not likely to do anything else about production. these are all signs that point to the downside. back the you guys. >> jackie thank you for now. if oil continues to fall what are the potential ripple effects to see? joining us patrick jankowski

and steven shork. patrick, we were talking about jobs at a national level. what can you tell us about the trends in houston? >> well we are still seeing employment growth. obviously, we are not seeing employment growth in the oil and gas sector. >> is that because you're diversified in health care and other areas and are you worried of the gains you mentioned that fact now you're not seeing them adding jobs in oil and gas and turn into layoffs in the months ahead? >> we still have a lot of momentum from 2014 to 2015. phenomenal amount of construction going on in the chemical and refining sector. just in december a report issued that we have $28.7 billion worth of contracts that have been over the last year. that's going to help us carry us on forward but yes. we are concerned about potential layoffs in the oil and gas industry. we expect to see layoffs locally in the industry. >> steven if there are to be

layoffs, that suggests that some in the industry expect the lower prices to remain. this decline has been very very quick. when's to keep the price from going back up again and if it does do they rehire these people or what do you think happens? >> and that's the big concern because we have to figure out why are prices crashing and have they crashed so far so fast? in december we saw the largest month on month decline in gasoline prices tenth largest ever. now the problem is the nine larger ones six were related to recessions two to terrorist activity and one to hurricane katrina. all not good things. so what is driving these prices lower? and the big concern now is that there is a lot of oil, new oil via pipelines coming into the houston area that the saudis are trying to fend off so yeah, the industry is in dire straits at this moment and looking at an industry where private sector weekly earnings are $850,000 a

week. that is today's bls numbers. >> right. >> in the oil and gas sector more than twice that and high-quality jobs that the dallas fed said that can be off by about 125,000 jobs by the end of june. that is significant hit to the economies of texas and to the general economy. >> all right. >> i just want to -- patrick, respond to that if you would. >> the 175,000 jobs is a state number. not a houston number across all industries. yes, we are concerned about what's going on. when you see the cutbacks you'll probably see budgets cut back by 30%, 35% and result in 9,000 fewer wells being drilled and start see production slow down and actually see productions decline probably starting in 2016. there's going to be a cycle and a short cycle and probably by the end of 2016 seeing prices go back up.

and the real question is, do you let the workers go now? you need them and then find out a way to hold on to them know they're hard to find if you let them go. >> stephen, i was reading a report today, the shale industry in the united states can withstand -- their profitability erodes at $55 at the wellhead but, you know that's different than they're paying in the futures market right now. right now $40 at the wellhead and well below that. if we stay there that long how many jobs do you think we are talking about here? i mean let me put it another way. how much longer can they last with prices that much lower right now? >> you know, it's an interesting situation, guys because there is a lot of debt that's sunk into the ground. >> right. >> at least for 2015 a lot of this debt is going to have to get pulled out of the ground and keep people employed just to help service the debt that's in there but once those sunk costs are recovered or mitigated, to a

certain extent starting to see, of course now in the cap x budgets for 2016 2017 that's when the other shoe begins to drop and you will hold on to jobs for the, you know, going on for the majority of 2015 just as i said to service the debt an going forward this is a major wake-up call for the industry and an industry that pays extremely well that coming out of universities you just assumed i don't had a job and for life and a rude awakening and about to be a rude awakening for a lot of people throughout. >> finally, patrick, another common refrain is that people who perhaps were waylaid did find work in related services so what do you think people who might be leaving those industries now, where should they be looking and skills developing and what parts of the country or industries to absorb them now? >> actually if i could kind of flip that back around. we're looblging at people who are losing jobs in the oil and gas industry in construction. we have 6, 7, 8 different

crackers built right now in the region. dow lined up a shell. chevron, phillips with projects for three to four years. we're looking at people maybe lose the jobs in oil and gas going into construction in houston because the need the there for welders and plumbers to help us build this infrastructure out. >> yeah. just occurred the me you know keystone was approved in the house today. there was that nebraska supreme court ruling in favor of it. that could mean jobs down the road, too. if that goes there. thank you both for joining us today. >> absolutely. >> thank you. it's going to be fascinating. 30 minutes to go. dow's off 151 points. 17,750 is roughly the level looks like to finish for the week. again, we hit that 18,000 level, closed above it but we have had a big struggle reclaiming that level insofar in the new year. >> today's strong jobs report failing to boost stocks much how much pressure on fed policymakers to raise rates

sooner than expectedsome we'll bat it around with professionals coming back after this. 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.

we are just about finished with the first full week of trading for the new year and so

far minus signs. we had the two big down days on monday and tuesday. two powerful rallies wednesday and thursday. this one breaks the tie and for the week if we hold here minus for the week. dow down 142. s&p down 14. naz dock down 24. >> that strong jobs report this morning raising critical questions, will the fed feel pressure to raise interest rates sooner than later? >> talk about wit michael gapen tom kimble and jeffrey cleveland. good to see you all. thank you for joining us. >> hello. >> thank you for having us. >> what does the fed do with this kind of report? clearly job growth is with us. good year last year. off to a pretty good start for the new year. >> it doesn't change the view. there's something for everyone. momentum looks solid. thinking lower oil helps output and employment in the u.s. on

balance which we do you have more evidence that labor market conditions are very robust. if you're thinking though we don't want to move until we see inflationary pressure then the average hourly earnings said the risk is later. on balance, we are still thinking june liftoff. >> on the orether hand, on the other hand. >> yeah. i'm an economist after all. >> i know who i'm talking to. >> you said something for everyone but, jeffrey, some are saying there's no wage growth in this one for anybody and if that's the case like greg was saying earlier, then what's the fed if anything going to do about it? >> kelly, hey, most important thing here is beginning of last year everyone told us if the unemployment rate gets below 6 then there's some inflex point and inflation and wages and that was going to send interest rates higher and that story has been shown to be flat-out wrong and investors squared by that story who ran away from the fixed income markets i think paid for that and i think that's the real

lesson for me in the report. not so much any new information for the federal reserve. i think they can hit copy paste, kelly, on the last fmoc statement and send it out at the end of january and then wait to see if inflation does start to move higher as we get toward mid year. >> tom what is your version of this anomaly right now on wage growth? >> seeing wage growth isn't happening but we are seeing jobs and not 300,000 plus like we saw in '06 and '07 and that was a the anomaly and now a new normal and this is going to be what it was in the '80s and '90s after post-recession '91 and really more of a consistent thing. there's a new economy being built and people have to set until and say we're adding 250,000 jobs a month. not a bad thing. >> no in fact we had the best stretch of payroll growth since 1999. are you paying more to your workers? >> absolutely. wages are up but it's in different areas and goes back to -- i know i'm beating a dead

horse here but it's the skills gap and that's a really real issue that america's facing and for the skills gap position for talented college educated people, it is growing. it's for the other stuff that it's not. >> mike, in a new normal do you think that the fed perhaps set the inflation bar expectation too high at 2%? are we going to get there under these economic conditions? >> i think hard to get there consistently over time. we may be able to get it there in the short run. meaning the next 18 to 24 months. if you're willing to run labor markets hotter and push the pedal, yes. but to tom's point, there's a compositional affect happening. we have added a lot of retail sector jobs. we have added a lot of temporary employment. so we may be getting job growth where wage growth isn't strong. so the fed can try to get it back to two and be successful. markets are certainly discounting their ability to do that. >> jeffrey, how low do you think the unemployment rate might go before we see higher interest

rates? >> well we've shown here that we can go below 6 and probably go below 5.5 with little upward pressure on wage growth and inflation. so i think we can go lower from here. we expect to get closer to 5% by year end and we are just not worried about inflation, kelly, in the 2% over or under we'll take the under for the year for sure for inflation. >> i think the target at 5.25. i think that's what he's shooting for. doable? >> i think so but we're not talking about participation rate at an all-time low, too. i think since 1978 or '79. we have to look at it from a 30,000-foot view sometimes and we want everything to be great because unemployment is under 6% but that's into the inflation issue and not seeing that. a rare mix of factors. >> why michael, those saying maybe it's wages downward pressure and people coming back into the labor force, that doesn't seem to be the case. what happens if they do start to come back or do you think this

is as good as it gets? >> we do think that participation rate is moving sideways. on balance you get re-entrance coming in and offset by baby boomers retiring and a demographic story of an older, educated worker with skills over time and leaving and being replaced by someone younger to develop that skill set so you have a compositional story, you have a demographic story and i think the point here is i think we've seen enough where the fed will be comfortable to get off zero and talking about not a lot of inflation pressure. a lot of demand for still long-term bonds and so there's the second layer is how fast might rates rise and the consensus is quite modist and within thing to say got off zero and another thing to say we need the funds rate at 2.75. >> they will be leaving on a marathon, not a sprint i guess the way to look at that. >> that's right. >> gentlemen, thank you. mike, tom, jeff happy new year.

>> thank you. heading toward the close, 20 minutes left in the trading session with the dow down 131 points capping off a volatile week, five day this is week triple digit moves on the dow. >> and stocks in the red for most of the day. courtney reagan rounds up the big movers of the session next. later, earnings season shifts into high gear next week. here it comes. big names reporting. the pros will tell you what to look for when we come back.

welcome back. looking to close this week, the first full trading week of the year stocks having a rough time. underperformers some of the financials and the industrials like caterpillar and of course the s&p and under pressure. underperform earls clearly the oil-related companies, bill. >> volatility right there. courtney reagan covering the movers winding down this whip saw week. tgif, court. >> i was going to say the same thing to you, bill. thank goodness. regeneron, the drug found to lower bad cholesterol. energy stocks fell as oil prices

continue the slide. cameron, oneok, leading lower. polaris falling after being downgraded. harley-davidson losing ground in sympathy. we end with the qd brands. kelly, back the you. >> 6% pop there. thank you. tgif. 15 minutes to go and again looking at markets here which have tracked lately the moves in oil, also the 10-year interest rate back below 2%. anything could happen. >> see if that does happen. later, the latest of paris, the deadly hostage situations that came to a head on live international television. hydra ma out of paris. we'll get to that coming up.

say you're a finance guy. a farmer. a researcher. you used to depend on experience. the internet. your gut. today you can use ibm watson analytics. it can make sense of all kinds of data. uncover hidden correlations and new opportunities. and give recommendations with more confidence on who will buy. what to make. where to plant. which helps you make smarter decisions. there's a new way to work and it's made with ibm. why do we do it? why do we spend every waking moment, thinking about people?

why are we so committed to keeping you connected? why combine performance with efficiency? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the xc60 crossover. from volvo. lease the well-equipped volvo xc60 today. visit your local volvo showroom for details.

dow down 129. it's been another volatile day but a down day for the most part. industrial average down about 230 points at the low of the session. has come back this afternoon.

the s&p's down 13. with the nasdaq down 23. 10-year yield's below 2% today the price of oil continued lower, as well. joining me we have david darst and mary thompson on the new york stock exchange floor where volatility reigned the first full week of the year. >> it did. i was asking the reasons behind that to traders eni think a lot of it that said has to do with too many questions out there. there are a lot of questions as to when the federal reserve raising interest rates. how low will oil prices go and the markets follow oil as we have seen today. what will the ecb do with quantitative easing and this is a level of uncertainty that we have seen and in turn the volatility we have seen here at the beginning of the year. >> we had a guest earlier making the point, david, sort of in a voluntary kul until earnings come our way. >> yes. we are. retail sales next week as you know.

consumer price index and philly fed and empire state. so you get a little bit of a look. the thing the market didn't like, all three things start with minus .2%. chinese consumer price inflation, down .2%. european consumer price inflation down and average hourly earnings that was the thing we hung our hat on last month, up .4 and down point 2 and indicates a tightness we were hoping that increase confidence in street spending is not there. so that's why you see the defensive doing so well. health care and the consumer staples are the leader this is year. >> yeah. art cashin signaled to me while you were speaking that we have about $300 million in stock to sell on the close. so no letting up in the selling here. >> better than we were earlier today. the dow off 222. you saw the markets come off the lows right around 1130 at the european close.

that's the market bottom. money come in. that's when oil came off the lows, as well. and bond yields off the lows of the day, as well. a bit of a shift there. not enough to erase a triple digit decline for the dow. >> bob pisani mentioned here on cnbc that when oil drops, 50%, in a 6-month time period -- >> as it did. >> -- oil is up 52% on average all 5 times that that's ever happened. oil price valuations price to book value and enterprise to ebitda earnings before interest appreciation taxes, it is in the tenth decimal. 90% above this. very cheap. >> does that mean you would buy energy related stocks? >> you could start nibbling. the yields on the big multinationals, 5% 5.5%. start nibbling. don't buy a full position. but get some ownership there.

because the earnings basically bottom two months after the oil price bottom so then you start seeing the stocks can move higher. >> prices come down and first earnings report is as usual alcoa and wonder what input costs will mean to them because they're prices coming down as well. appreciably. >> i'm interested to see what they see about the impact of the auto industry with more going into building cars. aluminum cars and negative for the steel industry. in addition to that they may be having some problems if oil prices stay lower. but alcoa is interesting to watch. we also have csx coming out early, as well. as a transporter of fuel it's interesting to hear their commentary, as well. >> we'll come back with these two for the closing countdown for this day and the week. after the bell today's jobs report showed the labor market improving and wages are stuck in

reverse, still. is the middle class left out in the cold in this recovery? we'll talk about that coming up. you are watching cnbc. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years we've helped millions of people protect their families and run their businesses. we have the right people on-hand to answer your questions, backed by a trusted network of attorneys. so visit us today for legal help you can count on. legalzoom. legal help is here. 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 if you get a trade idea schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts tdd# 1-800-345-2550 with in-depth analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea tdd# 1-800-345-2550 by a schwab trading specialist, tdd# 1-800-345-2550 our expertise is just a tap away. tdd# 1-800-345-2550 what's on your

mind lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it. tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ ♪ 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 call 1-877-670-3357. 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 ♪ ♪ thanks. ♪ ♪ [ male announcer ] fedex® has solutions to enable global commerce that can help your company grow steadily and quickly. great job. (mandarin) ♪ ♪ cut it out. >>see you tomorrow. ♪ ♪

welcome back. about four minutes left in the trading session f. the first week of the year is an indication, we could be in for a fun one this year kids. here's the week for the dow. lots of volatility. every day this week a triple digit move for the industrial

average. two down days on monday tuesday. powerful return higher wednesday, thursday. today down day. net-net for the week down about half a percent. at least as we head toward the close here. for oil, also a volatile week and for the most part to the downside, and for the week we have got wti crude down 8.5%. almost to come back yesterday and you saw this slide early in the week there and hit that low of around $46 and change on wednesday. for the 10-year yield, 1.96%. very similar pattern we have seen all week here and for the week we do this in percentage turns, an odd way but the yield on the 10-yield fallen by 7.5% for the week and at the request of mr. darst here the price of gold this week. down about 2% this week right? up 2%. >> for the year. >> up 2.5% this week and a gain today of 1%. are you looking at gold here? >> you know --

>> hovering around $1,200. >> basically a lot of currencies lost against the dollar last year. euro japan. gold only lost 1% the dollar last year looking at it that we and gold is up in the foreign currency terms. up 10% in the swiss francs. 45% in russian rubles. gold is a currency not a currency. that's what it is. >> is it capped as long as the dollar continues higher which it has been. >> the dollar on a multi-year. we have said this a long long time. dollar's driven by the energy theme, the same way driven by the volcker theme in the early '80s and then by the reagan strength theme in the late '80s. the late 'lot the dollar was strong with the internet theme. the big surprise of this year could be if europe has more trouble, you could seesawdy cut production to get the oil price

back up and stabilize things. the oil is the new fed, bill. >> you follow the financials. also hearing from some of them next week as well. you will wonder what they're saying about their expectations for rates, you know, i think they're hoping and praying rates are going up. >> hoping and hoping. a rate increase in the middle of the year probably towards the end of the year and see if they adjust it given what we saw average hourly earnings this week and maybe other things happening but you probably also going to hear and this is going to be a debate i think that goes on for sometime is the decline in energy prices a positive or a negative? you know, you have people who say it's a tax cut, good for the consumer et cetera et cetera. it should drive jobs in certain areas. service industry. the other side you know if you see this energy play which you have been talking about and that's a theme in the u.s. and part of the reason that we are seeing growth if it doesn't continue or if there's a drawback there, how does it all play out?

which one -- do they negate each other or one side come out the loser? >> potential, mary through the psychological medium. okay? venezuela, russia these things if they get into any financial trouble, it gets contagion and scares everybody. similarly, in the states, the junk bond market and somewhere between 15% and 20% of the junk bond market is energy related and so if you see these things -- instability there, it could destabilize the rest of the market in a psychological way. so that's another form that the energy can work on us like a voodoo doll. >> like a voodoo doll. we'll leave it right there. david, thank you. mary as always good to see you. thank you for joining us today. we are going out and the selling that art was talking about, $300 million of stock for sale on the close taking hold. the dow down about 170. seeing a decline of roughly half a percent to begin for 2015 in

the the price of oil is still calling the shots and you're seeing a huge decline for that. you'll wonder what will happen next week. hey, what do you say we talk about that? that's coming up next on the second hour of "the closing bell" for this friday with kelly evans and company v. a good week, kelly. >> thank you, bill. welcome to "the closing bell" on this friday everybody. i'm kelly evans. very volatile week on wall street. all five day this is week triple digit moves in the dow. monday and tuesday big down days. wednesday and thursday up big. today looks like the dow going without a decline of about 165 points. that's selling pressure art cashin told us about slowed up on the close. we are in the red for the week on all the major indexes. s&p giving up 17 points here. nads dak off 32 to 4704. let's get right to it.

joining me is today's panel. stephen brill is here. you'll be hearing about this book and so happy to have you here. and with us is sara eisen and stephen newmark and guy adami. congrats again. eight years yesterday. >> can you believe that? >> original cast member. >> can you believe that? i saw some videos of like the early screen tests we did in '05 and '06. i was handsome back then. now not so much. >> we don't know what happened. i kid. i love you. >> you haven't aged one bit. >> not in the least. let's begin with maybe if your views on the market evolving as we sort of sift through the rubble this week. >> it's funny, somebody said every time on the show with kelly you're negative about things and you're un-american. my pushback was it would be un-american not for me to point what i think is bad at. you can't just look at the world

through rose-colored glasses. buy the dip. it worked for people for the last four years and in reality i think there's ills out there. david darst talking about the emotional destabilization that oil brings. not just emotional destabilization. you are talking about economies of countries that are being destabilize by that and no way to contain that. some point it all comes home to roost. i'm not saying the market will collapse or explode to the upside and can't just take it off the table and say don't give it considerations. >> understood. let's bring in evan newmark. i know you're cautious and generally -- >> no, no no. >> you have the optimism in this market and this country and america. >> kelly, it feels good to be here in the new year and it feels good to take the other side of what guy is saying. by the way, i'm not very super bullish on the stock market. stocks are overvalued at this level. but in terms of what's going on

i am not scared at all by what's happening with the oil price. i think overall, it's good for the united states the decline in oil price. it ice good for europe. it's good for most of asia as well. so i don't see, you know the decline in the oil prices as anything horrible or indicating something really bad is going to happen. i think all it indicates is that the saudis decided they want the oil price to come down. >> are you holding index funds here? what parts of the market do you like? >> you know i -- right now as i start the year i'm about 50% in equities. 40% in cash which is really a lot of cash for me. and we won't go to too much detail about the remaining 10% but i think you know what that is. i'm short the bond market. i think -- >> have been for years. >> the levels are crazy. i don't understand it. maybe guy can explain to me. i don't see why anybody wants the hold a 30-year bond at 2.5%.

>> you were probably saying -- i'm not trying to be a -- >> that was true six years ago. >> still going down. you had every opportunity to whack the bond market yesterday and today. not only a fundamental but a technical basis and didn't do it. the rally in the tlt today to me was impressive. i'll stay firmly in the camp and i've been there. sara knows. >> you have. i want to get everybody else in here. sara, first, talk to us about the strong dollar a huge part of the story. is that predicated on the ecb delivering? >> there are great expectations to do something. not just in the currency a market. continuing to make new lows over there, as well to guys's point. but this bull/bear debate is interesting. five sessions of triple digit moves in the dow. there is clearly this new sense of volatility and there is a new wall of worry that wall street is climbing into this year. the jobs report is also a good example.

it was a good headline number. clearly unemployment rate going down. we want to see that. but there was plenty in there for the bears and the guy adamis of the world to say, look not everything is right. there's plenty of slack and hourly average earnings are in there. >> what's your prognosis here? >> i'm sort of a newcomer to the stage here but i have to tell you it seems to me that we have been wishing and hoping and waiting for oil prices to come down, what for ten years? 20 years? so now when they come down everybody's worried. it just seems to me in any economic transaction you have winners and losers. and sure there are going to be losers but overall aren't we all just as an economy and a people around the world happy that the price of this crucial commodity is lower? >> here's a question for you. some say what about the jobs, especially the good paying jobs tied up in the sector?

houston, we had a guy last hour from it you know they have a huge health care system down there. huge employer in everything. the s that an industry to take the lead here in the way it has for the stock market for a couple of years? >> you have to take the good with the bad. i write about health care and spend way too much money on health care in the united states. and to the extent we have any reforms, guess what's going to happen. less employment in the health care sector ian people complain that you know the jobs are down but that's the price we'll have to pay. i think the same thing is obviously happening with oil. >> very well put. courtney reagan is joining us now. in fact some of the companies on the docket next week turning to attention including merck. give us an idea of the names. >> it's a big week. as mary said, the banks are really dominating. run through the big names on monday. alcoa as usual. tuesday, home builders kb home in the morning. csx after the bell. on wednesday, the first of the

big banks report beginning with jpmorgan and then wells fargo. thursday is bank of america, citigroup, intel also announces results and on friday goldman satches, charles schwab. a busy week for earnings and the banks probably going to steal the show. back to you. >> that's a point. thank you. speaking of the banks, that's a soft spot for the market lately. perhaps simple as interest rates. >> they want -- yeah. no no. they want rates -- >> i think one important thing is to overlay people's time horizon on this discussion and i think if you take what steven was saying and what i'm saying i have a much longer time horizon than guy adami does certainly. if you step back and ask yourself, over the next couple of years, will the u.s. economy be better off with lower oil prices or higher oil prices you reach different answers than you -- >> guy has also been right on interest rates regardless of

that. so in other words -- >> 100%. >> different understanding of what's driving the factors for the next three, six months or several years. >> as long as the fed gives no indication to vigorously raise rates, the bond trade is a one-way trade and buying bonds, a winner. traders are going to always go into the winning trade. >> sara? >> tie it back to earnings because that's what courtney was talking about. oil is a big theme. a dominant driver. energy companies earnings this year expected to drop 21%. outside of earnings, a lot of other industries get a tailwind from the lower prices of oil. consumer companies, restaurant companies, plenty of companies using oil in production interesting to watch how much that helps certain industries relative to the strong dollar which hurts industries whether we derive 40% of the profits in the s&p 500 from overseas. >> great point. some people looking at the misses of the big box stores saying where's the benefit showing up? i want to read in the market

this week. merck up 10%. this is before today's close. up 10%. walmart up 4.5%. pfizer doing well. united health coca-cola. we're talking about boston scientific constellation. up between 10% and 11% on the week. monster and gilead. steven, i wonder if what people are saying is some of this pocket, this money is still going to health care and perhaps significantly so. i don't know how much of that is the timing of obamacare or a longer term trend. >> in part obamacare and welled-up demand and now they have the money and in part you know, health care's one of the only industries to think of where advances in technologies actually increase the cost. so as you develop new gadgets like boston scientific or new drugs, gilead it becomes more expensive. >> and -- >> worse yet people live longer and then i hate to say it. they have more costs.

>> worse in the united states than -- >> way worse. we spend 50% more per capita on health care than just about any other country in the world and the results are no better. >> guy, before you go, i'd love to know focusing on the stock market where you think -- i mean health care keep outperforming here? >> yes. 100%. you talked about gilead. negative news of them a couple of weeks ago and down to 86. i think we talked about it with you. obviously panned out. over the last couple of weeks and where it should be. celgene. it's teflon for me. amazing balance sheets and a lot of m & an activity in the space. real quick, about the bond market. as long as the fed is accommodateive accommodative, i guess f. the economy is as strong as the market suggested the bond market would rally. in other words, ratds rise on their own. >> right. >> that's just a simple as it

is. the fed would be powerless. the fact is something -- >> why? >> because the economy is lousy! >> no no no. there are two other things going on here. first of all, the fed has bought up a huge amount of the long dated supply. of course. they own trials of -- what are you shaking your head? they own a huge amount of existence -- the second thing that's going on is you have foreign governments and foreign financial institutions who are buying the bonds as a play on the dollar. they don't care -- >> they have to. >> they're priced in a different currency and so for them they don't care. you know if the u.s. dollar goes up 10%, they can lose a little bit if the u.s. bond's back up. until there's a wholesale mind shift and until bond investors understand to actually lose a lot of money in bonds it continues to be as guy said. >> quick point here with going back to the courtney reagan breaking news on russia

courtney. when's happening? >> we are just getting this in. looks like fitch is downgrading russia to bbb minus with a negative outlook. back to you, kelly. >> all right. courtney, thank you. we have to leave it right there. guy adami, catch guy coming up at 5:00 p.m. talking about what's behind twitter's late-day pop and the stock on a tear lately. the economy adding a better than expected 252,000 jobs last month and stocks selling off a decline in wages k. the economy really be getting healthy without wage growth? that's next. president obama has been touting the economy's comeback this week and the terrorist attacks in france drowning it out. we'll talk about that later. you're watching cnbc, first in business worldwide.

we'll begin here with courtney reagan and a quick update. >> let's check out shares of burlington store. stock higher after hours after raising the fourth quarter expectations. higher by more than 2.3%. a couple of big conferences,

burlington is speaking. back the you. >> perhaps another beneficiary of the falling gas prices. thank you. december job data coming in strong mostly but not so much in one category. average hourly earnings. it speaks to the health of the middle class. here's terry sinclair and doug holtsegan. welcome to you both. tara, the report suggested the wage declines ss broad based. do you see evidence of that? or not, where are they? >> looking at the data mostly looking at job postings for new jobs and looking at wage data of course, that's more broadly throughout the economy, and so on the one hand we are seeing a lot of jobs in various sectors including the lower wage sectors created and that's one of the drags on wages. but on the other hand we'd also like to see wage increases for people currently employed and of

course we don't see that in our data. >> doug, what do you think's going on here? >> i think, well look this is disappointing. not just the average hourly earnings down. the strong november number got marked down so it wasn't as good as we thought. hours were flat and, you know we have a job market that continues to baffle because it creates jobs and not income and that's a characteristic for some quite sometime now. my concern the hopes on fourth quarter gdp and strength in 2015 are really built on some fairly strong household spending reports. without the underlying sort of bread and butter of hours of earnings there's not the income to support and not getting a 2015 acceleration and just sort of flatten out again. that's the big risk. >> there's a question for you, doug. it's evan newmark. what is usually the lag between penal getting salary bump-ups and reported in wages? for example, this week we heard that american airlines pilots union was close to reaching an

agreement where they would get a 23% retroactive bump-up with 3% increases going forward. how long does it take for something like that to actually filter into the data? >> it's going to filter in certainly within a quarter. i think we'll start to see things in the first quarter and getting recent minimum wage increases and seeing the evidence of those contractual changes but the real mystifying piece here is if you looked at today's report labor force participation fell yet again and bolsters the argument of people like former chairman of the council of economic advisers that those that left the labor force won't come back. if so that means the real unemployment rate is 5.6% and if it's 5.6% we should be seeing tightening and pressure on wages. we are not seeing it. that's the baffling part. >> and sara that's what people think about taking into consideration the swift moves in oil, the impact to have.

>> baffling and mystified, doug, shouldn't be the case coming to explaining the factors at work and the labor market. you have done tons of work on this. could it be obamacare? we were just talking about in the commercial break. >> of course. >> surge in temporary workers. keeping that in mind how does the federal reserve use that slack argument to keep interest rates on hold even longer suggesting they can't do anything about it? >> certainly if the unemployment rate is really 5.6% they should be thinking about normalizing much more quickly. i don't think they will and see a fed saying well mixed data. stay on hold for quite sometime and if you roll the clock forward to the end of 2015 they might be 75 basis points might be at 100 basis points at the top end. we're still having inflation that's at least 1.5% maybe 2%. negative real interest rates through the year. that's easy monetary policy. we know where the fed ends up. the real question i think is

what's going to happen to productivity? we have a year over year growth in jobs about 2.1%. 2% productivity we would have real gdp 4% growth year over year and see wages rise and we aren't and that's where the heavy regulatory burden and the things that people like me worried about are evidenced in the data. it's in the numbers. >> tara it's evan newmark again. can you talk to any anecdotal evidence you have about the kinds of jobs seeing postings for, mix between sort of higher earninging and lower earning jobs and to what extent if you can are the jobs bartenders and people like that who may not be frankly reporting the income? do you have any anecdotal evidence to suggest about the mix? >> sure. i have several pieces of evidence, but first, i'd like to point out that when we look at all of the evidence together i actually don't necessarily see that this is evidence for a

structural decline in the economy. if anything having the weaker wages with this strong job growth suggests room for more job growth growing into 2015 but in terms of the mix we have seen an improvement in the mix of the types of jobs being posted in last several months and then waiting for that delay for those quality jobs to really come online and be hired. and then on another front we also see that some employers are offering bonuses and other sorts of benl fits rather than just focusing on pure hourly wage growth and so that's another piece of the puzzle to keep watching and seeing how that -- >> outside of wall street tara real quick? >> yes. even outside of wall street yes? >> okay. interesting. tara, doug thank you. have a great weekend to you both. >> thank you. activist investor nominating four directors to dupont to break up the chemical giant. is the move in the best interest of shareholders or him? up next jeff sonnen feld on the

push of activist investors and if it's going too far. and then ferguson missouri how stoerls destroyed by rioting using crowd funding and social media to rebuild their businesses.

welcome back. steven brill with us this hour writing "america's bitter" why the health system doesn't and won't work and then an unexpected and nearly tragic event when steven needed major heart surgery and saw the u.s. health care system in a different light and want to hear about this. congratulate you on your book and almost relevant to the discussion we were having talk about some of the knock-on effects of obamacare having on the u.s. economy. >> well let me start with that. i think, you know, the good news about obamacare is it gave tens of millions of americans the opportunity to get health care through subsidized insurance that the taxpayers are all paying for. and that brings us to the bad news which is that is usually expenseive because it did nothing to fix the ridiculously high price of health care all across the country.

and if you look at the stock tickers of, you know, the companies represented in this room the drug companies, boston scientific, you name them the fof-profit hospitals, nonprofit hospitals are more profitable than the non-profit hospitals and looking across those, the bad news for them their stock has to go down for this country to survive. we cannot continue to pay prices that are 50%, 60% more per capita for health care in this country with no better results and obamacare basically created which is why it passed in washington, why they allowed it to pass it created tens of millions of new customers paying the same ridiculously high prices for everything that all the rest of us had been paying through our insurance companies. >> i really find this interesting because so often on this show and made a point of doing it again today, we talked the people bullish on the health care industry. >> as well they should be. everything i said is not going the happen. >> that's what i was going to

ask. it can't and won't go on and sounds like it -- >> the book is about how does a dysfunctional washington fix a dysfunctional health care system? the answer is what the lobbyists in washington health care system spends four times as much on lobbying at the million tear industrial complex. four times as much. so obviously in the name of reform what they allowed to be reformed is yes, let's give more people health care at the same prices that we charge here we don't charge anywhere else around the world. >> first time since the law is passed i believe that republicans controlled both chambers. >> right. >> is the consensus still that they have to repeal it or have a better sort of more productive proactive strategy? >> that's the irony. what i just described was a wonderful republican program. the government gives big business a subsidy, a great way to create all these new customers. in fact obamacare is a slightly

more conservative version of what richard nixon proposed in the 1970s to head off of ted kennedy reform proposal and much more conservative version of governor romney did in massachusetts, but irony of ironies the republicans opposed it because it was obama. >> they hate it. >> no other reason. >> steven maybe talk a little bit about the demographics because when people you know not to bring it back to the bond market but i'll do that in any way case what's going on in japan, what's been going on in japan, europe, is a problem of demographics. and to what exstent the u.s. going down the same road where elderly people live longer and driving the system or to what extent is it just the fact that health care's got more expensive? >> driving the system. it is driving it that much more radically because the prices are so high. so in other words, if you take,

you know, a cat scan or mri, it will cost half as much in europe as it does here. >> right. >> and it's used one fifth as much. now, one of the reasons it's used a lot here is we haven't been able to get any kind of tort reform so hospitals and doctors use the prospect of lawsuits as either an excuse or a reason to give everybody a cat scan. if you walk into an emergency room and use the head, even saying i have to head to the men's room you're getting a cat scan. >> plenty more fascinating examples in the book. we'll try to get to a few more. it's "america's bitter pill" and steven's stuck with us for the next half hour. thank you. three days of terror in france coming a deadly end. three terrorists dead with hostages at a jewish market and heading live to paris next for the latest. so open an account with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity

is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪ you're driving along, having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual

insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.

welcome back. nelson pelts stepping up the effort to break up dupont. dupont is not a typical company to be in the cross hairs of an activist investor though. with us now is jeffrey sonnenfeld with concerns of activist investors.

jeff, welcome. what are your concerns specifically about peltz in this case? >> well specific concerns in this case is he's going after and pushing for dismemberment and disruption of one of this country's pillar of the economy. this company competitor dell among the greatest worldwide. they have had 260% in particular dupont 260% growth and total shareholder rurnls and look at every metric over five years. they've done extremely well. it's -- you look at them globally, over the last ten years, they and dow are the number two and three best performing integrated chemical companies in the world. bsf is number one and not as diverse. and what's troubling, kelly, you have seen me doing this before is that we basically have a recast form of green mailing.

shaking down healthy companies. there's an annoyance factor. putting them on the board, hardly the midas touch. take a look at carl icahn done well and peltz and look at icahn on the board and plunged into bankruptcy. i can give you ten of these companies. american rail black buster. the board presence doesn't help. peltz targets companies. >> no i'm just looking, evan you're skeptical. shares up 195% versus 128% for the s&p. >> i don't see the problem of letting the shareholders decide. i mean he's coming in. he wants to be a shareholder. making more noise than other people, so be it. you know you don't win -- activist investors typically don't win out unless there's a cause at the end of the day.

other shareholders get behind. >> stooen? >> i used to write about these kind of corporate takeover fights as jeff will remember and i wrote about the dupont-conoco-seagram fight years ago. my question to jeff is if peltz believes this, why doesn't he try to do a takeover? why are we now in a situation where everybody tries get on the board with poxy fights? >> legislative changes made it harder to use the own attack. this is what they used to do. you wrote about them before. by the way, perhaps they should have kept conoco. first time in dupont's 200-year history they took on debt as you wrote and probably sold it too cheaply just like the fire sale prices forced on them now with the kinds of dismemberment. titanium dioxide, very valuable business. splitting them off, nonsensical.

the global competitors never think of it. the former head of the state enterprises of china told me recently the 17 remaining state owned are not converting to public xaenls as they were before because they see as a market failure in capitalism. this short termism that they can invest in the industries we are dismembering. it's to our long-term peril. people argue and peltz arguing that the five-year time frame is the right time frame. >> we have to go but real quick before we go. if the argument is china, you know prioritizes or gives preference to the state industry and we should do the same. >> we're not asking for bail yuts or preference. it is just a green mailer's tactic here is having irritants on the board and significant. he targets new york you know bank of new york mellon with the president and you take a look at going after ceo of pepsico.

you see a pattern here. >> understood. >> 12 women ceos. he's got half of them in the target zones already. what are we doing here if it's not my sonlgny -- >> i think they're all grown-ups and take it. >> it is an interesting point with regard to global competition driving the things here. jeff -- >> look at michael dell. >> we have to go! we have do go! we have to go! thank you, jeff. thank you. president obama's economic message being drowned out by the acts of terror in france. we'll talk about that next. it's been nearly two months and since the grand jury cleared ferguson police officer darren wilson in the shooting death of michael brown. small business owners are rebuilding and a special report is coming up. people? why are we so committed to keeping you connected? why combine performance with efficiency? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us.

the xc60 crossover. from volvo. lease the well-equipped volvo xc60 today. visit your local volvo showroom for details.

welcome back. a deadly end to a terror hunt in france. cnbc's hadley guam wbl the latest on them both. >> reporter: >> reporter: hi kelly. we know that the associated press is reported that al qaeda in the arabian peninsula based in yemen claiming they directed the attacks we saw against the magazine on wednesday. the connection here of course we now understand that at least four people were involved in the attack that is we have seen over the last three days. two of them brothers.

said and cherif kouachi. another, a gunman as well as a fourth accomplice and that accomplice is a woman, still at large. police searching at this same point. earlier today, of course two of the suspects, the two brothers were killed in a shootout after a standoff with police. one hostage released unharmed and another shootout in paris. the third gunman was killed and there were some victims in that shooting. there were some wounded, as well. police officers that we know about and definitely some of the victims there were killed as well. then the fourth accomplice, police are searching for her. she is at large. again, three attacks three days here in france. one suspect still on the loose. al qaeda in the arabian peninsula saying they directed the attacks and people here very worried. tense night here in france.

>> and tireless work there by hadley gamble thank you. the world focused on the terrorist situation and president obama also meanwhile taking a victory lap about the economy and the jobs report today. a world events drowning him out? joining me is "meet the press" moderator chuck todd. when's the president do here? >> plows ahead. i was talking to white house official about this issue yesterday. president was in phoenix talking housing and today tennessee talking manufacturing and talking about a community college plan and said you know and their attitude was there's always going to be an event that potentially steps on what the president's trying to do and one of the things -- one of the mistakes they think they have made in the past and inability to they believe sell what they believe is a good record for the president on the economy is that they have allowed themselves to get distracted away and pulled away so their attitude now the plow forward. >> same time doesn't the president also potentially act

as the person who can give force to the emotions americans are feeling at this moment? >> well you saw he did -- what did he do yesterday? came back from phoenix and then goes to the french embassy. pays respects signs a condolence book. today, top of the remarks in tennessee, talked about france as an important ally longest ally of the united states et cetera. i think that's their mind-set to show that they can walk and chew gum at the same time. but i think the bigger challenge they have, kelly srks they have been very concerned about on one hand when it comes to this paris indins ent, they want to america on alert and always want to see something, say something but not over panic the country, either. they believe it's not an imminent threat here to the united states. >> speaking of presidential politics, chuck, we have some news breaking on this front. on the 2016 presidential race really starting to heat up. john harwood, when's happening? >> we have reports of dow jones

and politico that mitt romney told a group of donors in manhattan that he's considering a run in 2016. now, i'm not sure what to make of this report because i think it is highly unlikely that mitt will enter. we are in a period where jeb bush stepped forward and really sort of galvanized the race and all of a sudden gotten other people anxious about how their role in the republican firm is changing. i just got off the phone with a top political adviser to mitt romney and asked about this possibility. adviser said i don't have any guidance. when i talked to mitt this doesn't come up. on the other hand i wouldn't be totally shocked if he ended up running. so i will just say, kelly, i will be shocked if he runs and i think the fact that they haven't been talking about it is some evidence it's unlikely. >> john, stay right there. i'd love to know, chuck todd, if you're surprised by this and if you think mitt romney is running. >> look. i am not surprised by this.

he'd been sort of toying -- he had been having the donor conferences, talking with people. and he sort of holding out this idea that, you know, look if nobody else emerges and there isn't a viable person that he is the only guy in the field that could raise a billion dollars or more that's necessary, but that was all pre-jeb bush and i'm with john harwood here. now under the new world that we have of jeb bush as not just saying he's thinking about running but doing the things you need to do they share the same donor base support base. and i think the among those donors if you were going to do a straw poll i tell you, jeb's going to beat out romney. they would prefer jeb over romney i think and that is a -- i don't know how romney does this with jeb bush in the field. >> i just want to -- sorry, chuck. open it up to the panel, as well. guys, could you have though at this point if this happens a romney-bush ticket? is that an attractive option

possibility? >> i know very little of politics compared to the two people you spoke to but i'll say it's unlikely. hard to see either jeb bush or mitt romney as individuals running for vice president. >> really? >> ain't going to happen. >> nobody runs for vice president. is that ultimately -- >> for the older people on the panel watching it sounds like 1968 mccarthy, you know drags bobby kennedy into the race. >> jeff? >> older people on the panel? are there older people on the panel? >> just you guys and me. >> john nice steve you and i are saying we're young. how about that? >> you don't have to be that old -- no no. you know chuck, you don't have to be that old to remember mitt romney come paining in 2012 and right on a lot of issues and a lot of issues that are gripping america's attention right now relating to foreign policy. right on russia. right on sort of this threat from iran and from a lot of the parts of the world. do you think that rez naits with

the american people more now than then? >> i bought the idea of a third romney run before jeb bush got in and i can't figure out is where does mitt romney find his base financially, is sort of in the mainstream of the republican party. these are the folks that they always preferred jeb bush. these are the people ended up with romney financially, ended up with him '08 and '12 and people that were pining away for either somebody else. either jeb bush or chris krity at christie. i don't know -- i think christie has a set of other problems now, so that's where i can't get my arms around this. >> okay. >> in the pre-jeb bush world, i'm with you. i do see how romney makes the case, hey, look what i said in 2012. i think you guys owe me and say, hey, i was right about some of these things. >> this sunday will be interesting. john, thank you so much for bringing us that news.

our thanks. be sure to tune in this sunday with chuck and the panel of experts what the paris attacks mean in the context of a huge global issue on that front. now it's nearly two months after the ferguson grand jury decision in the michael brown case. looting and riots followed and businesses are starting to rebuild. kate rogers joins us with a small business owner who took a big hit and using creative means to get it. and a check on the health care industry by ceos live from the jpmorgan health care conference. we're back in two minutes. stay tuned.

welcome back. rioters in ferguson missouri, destroyed much in the wake of the decision. now many are making a comeback thanks in part to small business loans. our kate rogers is in ferguson. hi, kate. >> hey kelli. you can see some the damage behind me here. but the message now is really about positivity and moving forward. we met with a man named bryant k. mitchell. this guy never missed a day of

work despite riots and unrest happening literally footsteps from the door of his business. he's located down the street if the ferguson police department where there were riots, fires, overturned vehicles. but he decided that he was just going to simply board up his windows, keep holding class cautiously but persevere. now mitchell scored a $10,000 loan over the next five years with 0% interest from the st. louis economic development project. he says he plans to use that cash to start a new advertising campaign and hopefully regain some of the business that he lost. >> we're going to do advertisement on the front to let everyone in the community know we are still open. and, you know, that has really helped. >> and also his logo at his business is you will survive. it's a phrase that's taken on new meaning for his business and all of the city. it was on full display last night. the sense of community and

survival. we went to a jam packed boot camp at his gym where people were there to be a community and to support his business. back over to you. >> thank you very much. evan, that class was packed. >> i could use a few of his classes. maybe more than a few. >> 0% interest ten years. >> look. anything in the scheme of actually capital acquired or anything like that anything done to get the businesses to rebuild, i'm all in favor. this is a very small example, but any cities that have typically gone through serious rioting really really really struggle, you know, in terms of rebuilding. so anything can be done in terms of getting the small businesses up and running, all the power to them. >> one of the issues they probably lost their insurance coverage. a lot of the small business insurance policies exclude rioting. i don't know if he had

insurance. but if he did, he obviously didn't get it. >> and it's a question we can perhaps ask our next guest who was also a victim of the vandalism. his cell phone shop looted twice. once back in october and again in november. he came on the show to talk about it. these are the pictures from that store back when it was looted. now ferguson and his store is on the mend and little by little rebuilding. the owner joins us again from ferguson. great to have you back. let's begin with the question just raised. do you guys have insurance? how are you recovering? >> we do have insurance. at the moment just to give you an idea we had to invest $15,000 just to recover and to be at the point we are today. we are so far received $695 from our insurance. so it's a battle and it's uphill battle for us to get what's coming to us from the insurance. but we do have a lot of other

communities and churches and wonderful folks who helped us recover some of those that we lost. so we are way far away from where we need to be initially as a community, as business owners. >> are you using social media, sonny? just quickly, or are you relying on old fashioned word of mouth here? >> i use both. i use social media. i also had a website that helped me recover some of the funds. but the bottom line is we can put as much money into the business. if the community doesn't come back to what it used to be before and there's no trust in those who reside here to go out on the streets and spend the money and feel like they are a regular community, we will never recover. so the money help us put a nice face on it but we do need a lot of changes in the community to help this as a whole to come up

with that looking a lot better. >> and we can certainly see that even from where you're standing now. sonny, thank you for joining us. please keep us poed. we hope to see you again when you make a full recovery. five days of triple digit moves for the market. what about next week? we'll look ahead with quick final thoughts when we come right back. u know "hidden things..." ok, why's that? no hidden fees from the bank where no branches equals great rates. for fastidious librarian emily skinner, each day was fueled by thorough preparation for events to come. well somewhere along the way emily went right on living. but you see, with the help of her raymond james financial advisor, she had planned for every eventuality. ...which meant she continued to have the means to live on... ...even at the ripe old age of 187. life well planned. see what a raymond james advisor can do for you.

these ally bank ira cds really do sound like a sure thing but i'm a bit skeptical of sure things. why's that? look what daddy's got... ahhhhhhhhhh!!!!! growth you can count on from the bank where no branches equals great rates.

welcome back top time now for some final thoughts with our panel. evan, kick us off. >> a question for you. is the u.s. going to end up like japan? that is the one question all investors should ask themselves in the coming weeks. if you think we're going to end up in a deflationary spiral, end up no economic growth, that should guide your investment. i happen to think we're a lot better than that. >> sarah? >> one would be retail sales are out next wednesday. that's a big chunk of the u.s. economy and it's an important month. it's december. so we'll see whether the consumers were out spending and whether those lower gas prices and lower prices at the bump actually helped. >> great point. final thought? >> if retail isn't up and gas prices are down that --

>> and there's not a polar vortex this year. >> thank you so much. the book is "america's bitter pill." we'red we're thrilled to have you joining us. "fast money" is coming up in just a few moments now. time for melissa lee and the gang. over to you. >> have a great weekend. "fast money" starts now. overlooking new york city's time square, i'm melissa lee. what is behind twitter's late-day pop? the stock closing up nearly 3%. is this the beginning of twitter's turnaround? that's coming up. but our top story tonight, stocks selling off. numbers coming in strong this morning but hourly wages were down this morning. the big question now is when federal reserve will raise rates. something charlie evans discussed this morning on "squawk box." >> we shouldn't be raises rates before 2016. employment's been good. i've been expecting