tv Street Signs CNBC January 16, 2015 2:00pm-3:01pm EST
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has been, sue, and next week with that ecb meeting holds the promise of even more fascinating stuff to follow. there you see the industrial, the s&p all in the green today. that will do it, folks, for this day's edition of "power lunch." >> it's going to be interesting going into the close. remember, it's a three-day weekend for the markets. "street signs" starts right now. have a good weekend. a rough week trying to end on a bit of i high note. welcome to "street signs." stocks, bonds, oil all on the move this week. your full playbook ahead. >> the latest news on how many oil rigs are being shut down in america, and what the heck is a dupe and why is it so hot? we'll dig into that. >> we will, indeed. five days in the red, and almost six straight. there was green. before we say -- stocks are still on track. both gold is interesting, brian. it's back on its feet this year. getting a four-month high, and
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looking to process the biggest weekly gain. sitting around an 11-year high. best five-week run since june of 2012. >> all right. well, this week the global markets were and you will forgive the terrible pun, burned, by the swiss. they were moved to peg to the euro, and sellers came in in droves. it was a shocking move for sure. what is the fallout for the now even mightier greenback. let's bring in sarah eisen. parted pardon the french city pun, but what does it mean for those invested in the u.s. dollar? >> i wouldn't expect anything less of you, brian sullivan. for the u.s. dollar, it's a winning trade what the swiss did. you can see that the dollar free action. just in two days here, euro weakness, dollar strength is really the big story here in the currency market after, of course, the strength in the swiss frank. you see it in power lunch.
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it's a good etf. it tracks dollar strength. clearly, as you point out, equities are not feeling the pressure from the strong dollar. so far the dollar's note has been very sizable compared to normal. these moves that we're talking about in currencies with 1% today for the euro dollar are something. that's unusual. you can imagine how crazy it was to see the swiss frank surge 30% on the back of the surprise announcement. i was joking with one of our guests about the fact that i was there maybe just maybe the chances are higher now. don't you think? >> certainly more wall street firms are joining the chorus calling for euro dollar parody, which would be still another 13.5%, 13% move from here. lower for the euro, stronger for
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the u.s. dollar. a lot of folks look at the swiss franc moving the euro to the floor as a signal that the ecb was definitely going to go ahead with qe it's a crowded strayed treyed. it's because of ecb qe or the swiss are though longer going to be buyers of that. it's crowded. beware of any snap back in the move. long-term, though, you're right. there's a lot of bearishness. if you look at the economy of europe and the economy of the u.s., you can see why.
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about half of mortgages in poland and hungary are the prices of the swiss franc. for middle class families over there, they literally wake up one morning and the value of their mortgage, they owe 20% more. their purchasing power is down. suddenly they're 20% in the hole more than they were the night before. there's a huge human impact to this as well. >> that's just one of the ripple efforts from this gigantic move. think about if you are a swiss saver. today we saw the swiss ten-year bond yield go negative. i mean, imagine if we had a negative year on the ten-year bond. we're not too far. we're low. we're below 2%. but negative. that crushes in a. not to mention the impact that it's having on the swiss market in terms of stocks and all the exporters getting hurt over there with this currency. >> so strong so fast. the eastern europeans. there's a lot of loans denominated in swiss frank. it's definitely in the top ten. >> talking to expo that scathing open letter from the head of an old swiss watch maker.
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basically saying that the swiss watch makers were 187-year-old watch maker. they'll be extinct because of this particular currency. >> this is digital currencies as well as regular with you, sarah, so be prepared. big coin falling again. it's $200 basically in change. it's down 85% from its all-time high. it was quietly obliterated this we're. >> it went below 200. a lot of folks say, see, it was a bubble. there's no such thing as digital currencies. go back to january 2013 and the price of bitcoin was $15 maybe? maybe $13?
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it's not such a bad return. a lot of, a lot of air is coming out of this trade and jeffly on his trade last week say it's been going to the ash heap of digital currency. mark since came out in a tweet storm in defense of it. clearly we've got a lot of action, and the money into the u.s. dollar as the main currency right now. >> the fed said it's because of an ecosystem, a method of payment as opposed to sort of just the currency. thank you so much. great explainer there. very complicated topic that had lots and lots of implications. indeed, the nature of the swiss banc move caught currency brokers off guard, and as a result, a number are getting hit hard. the biggest retail foreign exchange broker here in the united states has been -- shares took a huge whack, like 88% kind of whack. one london firm went belly up.
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they've been working on that story for us from our london bureau. who exactly are we talking about here? >> yeah. well, in general, mandy, severe ramifications as you were just pointing out. four brokerages that have exposure to the swiss banc. the one watching here in the u.k. is elperi that has 200,000 clients. it entered insole vensy. they said that the unexpected swiss national bank decision that policy reversal resulted in exceptional volatility and an extreme lack of liquidity. they tell me too many investors basically got caught on the wrong side of the trade. they trusted the swiss national bank will keep that pay of $120. that made them even more vulnerable, more exposed to the volatility and we had seen over the past two days. their clients endured big losses. some didn't have enough money in their accounts to cover those losses. what happens next? well, the brokerages have to
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step in, but it doesn't look like he had enough money on their balance sheet to cover those losses. now we should expect some type of action to be taken from u.k. regulators. worth knowing that he was a sponsor -- was the sponsor of a popular football team here and uchl k. the west ham. thankfully a club has said that the collapse won't affect them. taking a step back, guys, this is london. this is the financial hub of europe. not only are they a lot of swiss here, but there are a lot of investors that trade the swiss frank actively, that have a lot of exposure to the swiss franc, and not to mention a lot of wealthy families that store their capital in switzerland. as you guys are pointing out, the fall-out, the bad news may continue in response to that unexpected move by the swiss national bank. >> thank you very much. if you are a currency trader, it is the biggest and most liquid market of any and all the world. what do you do? let's get to analysis to currencies. probably also one of the most technically driven of all the markets. cnbc contributor todd gordon
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trading analysis on set with us today. when everybody loves something, right, except for the beatles, i get nervous. are too many people in the long side of the dollar? >> no, brian. i think this whole debacle with the stay with us frank, we got to remember with the currency trading, it doesn't matter if we were talking about foreign exchange back and forth or if we're talking about etf's or futures or whatever it may be. there are two sides of this trade. europe is coming apardon. we broken through 116.40. that is the 2005 low in your wroe. that is a significant level that went through that. it looks to be you might get down to 107. there's a lot of side of this story that's the dollar franc. remember, there's been a long dollar. long s&p position. as euro has fallen, the run has a lot of the opportunities for traders to be involved in this
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market. the fed and ecb as well. in great detail and in great advance, what kind of moves are they thinking about? what kind of move? what kind of scenarios they're looking at. in other words, the market has a little bit of time to adjust. the smb said we had to take the market by surprise, and i'm sure a lot of people were caught flat-footed and very, very annoyed. it's almost as if like it's tough, but why would they buffer against the potential move. >> as soon as they gave wind that had move was going to come, it's the most dynamic market in the world. current traders around the world would have gone after that euro swiss. they would have gotten ahead of those guys. they had to take the market by surprise. it was a little surprising it didn't kind of just discuss this with the imf.
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they are switzerland, and they are the banking center, and they are secretive, and they're going to do what's best for them. they stay out of wars. that's the thing. who can't believe? read history. the swiss have done stuff like this before. >> absolutely. you know, it's -- it's not a bad fx brokerage story. full disclosure, i have worked for an eh brokerage. i have worked for capital and vcap, and they actually did jump ahead. i have no interest in the company anymore, but they did jump ahead and increased the marginal requirements for this euro swiss. this stock is doing okay today, and, unfortunately, they're -- >> come ownering todd. the u.s. dollar, is it still a buy? >> no, it's not. right now it's not. with clients i have actually guided them away from long dollar positions because the trade is too extended. there's no ability to maintain
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risks. we're waiting for a little bit of a rally right now. i think this trade is extended. i think you need to maintain control risk and pick your spots carefully. that's the name of the game. a lot of good news baked into it. thanks very much. there's a way in which you -- >> no, no, no. i know you have some twists, right? >> regifting. five canadians. they have beautiful money up in canada. put that away. >> wow, thank you. >> we'll see what happens with euro markets. it's a way of calling. >> this is his way of calling me a looney. >> that is true. tim horton's in manhattan. you never know. >> coming up, folks, you got to choose a side. stocks or bonds, where does your
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money have the best chance of a solid and safe return right now? two market masters making their case for each coming up. >> plus, if your plan is to get away for the long weekend, have you to stay with us here on "street signs" because i think it could have an even bigger impact on your travel plans. when "street signs" returns. every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. start investing with as little as fifty dollars. your mom's got your back. your friends have your back. 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.
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2,000. it's at 2,007 right now. they're moving higher. right now it is finally the leading sector on the s&p. bob on the floor of the new york stock exchange. bob, what do you make of that? >> well, you know, we -- take a look at the s&p. i'm talking about a slow melt-up in the afternoon. usually it's right down in the afternoon. the futures. the volatility. we move 30 handles from the bottom. we were 1970 at 5:00 m in morning. we're over 2,000. on the s&p on an average day will move 15 points. 30? that's a lot. that's typical since the start of the year. stability is what we've seen today. are we happy with stability? commodities, stable crude. we have stable copper. and gold is up a little bit. all right. you know, gold has been up all week here. it's done -- i think that's the
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highest in september. 12.77 on gold here. should we buy oil stocks? i get emails. dying to pick a bottom on oil stocks. the xop is the hot etf right now. gas and oil exploration production. you see it's fallen out of bed. it's bottom twice now right around that 42, 43 area. it's really trying to find a bottom because because people try to pick bottom, and so far they have been wrong. someday people are going to be right about it. they're covering going on. the real estate ones, that's the xkf. they are seeing huge volume. 300, 500%. these are people that have been short in the market, and today they're definitely covering their positions. guys, have a good weekend. >> you have a great long weekend as well, bob. very well deserved rest. reminder to all of our viewers and listeners, we have the crude
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settle coming up in, you know, less than ten minutes from now. >> we're also going to bring up the latest recount data. just release from baker hughes. we'll tell you how many rigs are going to shut down here, and a surprising number of out of my new favorite country, canada. the impact of the dollar and oil, let us bring in now russ costrich from plaque rock and a man who you saw on television in canada, actually. he was on tv. i took a picture. i sent it to him. it's good to see you stateside, my friend. tell us what the best opportunities are right now? >> it's not because the fundamentals are better, and it's not that the u.s. are two advantages we don't have right
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now. accommodative central banks, and lower valuation. >> what about the dollar? we were just talking about that a moment ago. i think that are you in the camp of dollar strength for 2015. you know, okay, might be a problem with the margins for some companies at the moment, but if it keeps on strengthening, it might be much more of a problem for the overall markets. do you agree? >>. >> you are going to see a significant diversion from the fed and every other central bank. the ecb is teeing up its own quantity takive easing program, and it's buying $8 trillion yen a we're. with the fed going in one direction, all of the other central banks throughout the world going in a different direction. that's lending support to the dollar. >> you know, first 19 minutes of this show, ross, i think have been quality as usual, but they've been exceptionally macro. you talk about the swiss bank. we're talking about the indian
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central bank. think a lot of our viewers are driving down the road thinking what do i do about my 401k? sfroo well, look, i think for the long-term you probably are doing what you should be doing all along, which is i think at this level i would still be overweight equities. yes, equities are not cheap, but they're cheaper than bonds, which in more and more cases have negative yields. we've been looking internationally. we see big opportunities. select in asia, and then with fixed income, you got to pick your spots. nothing is cheap within bond land. we have a couple of opportunities. u.s. high yield i touch on, and right now u.s. tax exempt. the long end of the curve. >> i have a ten foot pole with me right now. what is out there i shouldn't be touching with it? >> well, let's see.
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>> have you to expect more volatility. what's adding to that is that for the first time in nine years, investors are going to have to contend with the fed tightening rather than easing? >> not necessarily, according to some people. that could be next year. thank you so much for joining us. have a great weekend. >> okay. >> you too. take care. >> you just heard the case for stocks. up next we have the case for a bond. the man who helps the bond will make his case next. >> later on, dr. seuss makes a sort of guest appearance on street talk. we'll stick around to find out what exactly we mean by that rather bizarre statement. back after this.
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hp helps business move on all the possibilities of today. and stay ready for everything that is still to come. u.s. treasury yield rebounding just after a slip below 1.7%. let's bring in rick santelli with more. i don't know what is the bigger defining story of 2015. is it oil? is it now the swiss national bank? is it the 17% drop in the ten-year yield in two weeks? >> well, i think that's it, but i personally think the biggest
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story this year is the whining. i think it's the whining. the markets are starting to have a life after all the central banking issues are starting to break up and go in different directions, you know, foreign exchange. all of this is actually getting back to normal, and i'm not sure if market participants remember normal or want normal. tafs whole lot better when you came in and looked for everything to keep going in one direction, but, yes, at 8:28 in 14 seconds eastern time we traded just a whisper under 170. it didn't last long, but you think it's very significant to realize we closed, you know, well above 190 last friday. the all-time low from july is 138. as much as the last guest said that valuations are obviously stretched and richard in everything he is looking at, if we're destined to go to 1%, they're not as stretched as people think. i think the stretch story is more of a european counterpart. >> you know what, rick, you would not be complaining about all the whining that's going on if it didn't have a name, right?
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thank you for joining us. >> true. >> i got you. >> how should you be playing bonds right now? the man who helped to manage the world's biggest bond fund. joining us now pimco cia mark keith. we've just been looking at the ten-year, and as brian pointed out, probably one of the biggest stories so far of 2015. where does the ten-year go? where does it end this year? >> hi, mandy. hi, brian. we think that u.s. rates ultimately are going to head higher. clearly the reason why u.s. rates are where they are is because global disinflationary factors. you're going to have to move out of the u.s. treasury market and into other markets like, for example, emerging markets, treasury inflation, protected securities and bank loans to outperform this year because these yield levels are so low with the u.s. economy improving we think ultimately rates are going to be headed higher. >> like how much higher? end of the year target mark? >> don't really have an end of the year target, but we would
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clearly stay if these yield levels you are better off at bank loans that can deliver 4% to 5%. it's going to be very difficult to get 4% to 5% in the bond market. unless you buy bank loans or unless you buy emerging market bonds. negative interest rates in many major countries around the world to me is simply astonishing. sfwroo you're right, brooen. it is. >> and scary, by the way. >> it is. >> i don't know what the heck is going on. >> well, there is not a huge need for income in the world, so technicals are supporting bond markets, but it's also a sign of global disinflation. we actually strong fundamental
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that is are targeting the u.s. consumer like lodging, gaming, cell towers. we think that is a very good proposition. >> for a lot of our viewers looking to retire. where are some opportunities to make, i don't know, 4%? is there a safe and stable 4% return? i hate to be greedy by going to 4%, mark. you can get 4% to 5%. you're basically investing in a structure that protects you from higher interest rates. bank loans reset higher as the fed raises rates. the companies were buying had four times asset coverage. we're talking about companies like mgm and hilton where you're actually seeing them raise prices 3% to 4% and growth is, say, 8%. these are companies that are
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doing very well offering 4% to 5% returns in bank loans. >> i have to ask you about this. it's in the past, right? i think the fund grows but 4.3%, right? nonetheless trails, 7%. what would you say right now here on cnbc, on street signs, to everybody who -- to give them confidence that this year is going to be a better year for your fund. >> well, actually, the team has taken over as of september 26th. since we've taken over, we've outperformed about 80% or 90% of the competition. we're actually off to a very strong year this year. we're outperforming about 90% of the market, and the reason is that we're looking internationally. we have some bank loan exposure. we have some exposure in tips, treasury, inflation protected securities, which you think are very cheap with a wraek even inflation rate of 1.5%, and we're favoring international markets like brazil in mexico. take a look at our returns.
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they're very strong, and this team has been in place for 15 years. we have a very good story. >> mark, we appreciate it. i'm just going to end on this note, which is not really a question, but it's amazing to me. when i hear a respected investor like yourself say that tips and bank loans are the hot places to be, i know what kind of world we're in investing-wise. mark, thank you very much. >> you just have to get out more. >> it's a low or no return world. that's what -- i mean, it's unbelievable. >> it really is. >> they're paying banks to save their money. >> well, let's take a look at the oil close right now. it is definitely back and they close down for the eighth consecutive week.
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>> 24%. >> 38%. >> worst losing streak since 1986. >> i did because calgary, alberta, they were selling houses for $1. plus, the assumption of any mortgage because it was that weak of a market. well, guess whash the canadians are not stopping pumping oil. the weekly recount data was out over the past hour. >> canadian recount up. kind of odd that it's the exact same number. >> it's really -- >> if are you hoping for a production in oil, you're not getting one. >> okay. we're going to be up after the break, and we're going to introduce you to a guest we can sort of kind of call it a dr.
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seuss stock. sort of. >> this is ryan. >> it's the lorax. >> i want a sthnead. what makes it an suv is what you can get into it. ♪ [container door closing] what makes it an nx is what you can get out of it. ♪ introducing the first-ever lexus nx turbo and hybrid. once you go beyond utility, there's no going back. so this is a great opportunity for an upgrade. sound good? great. because you're not you, you're a whole airline... and it's not a ticket you're upgrading, it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪
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day. street talk. you do need to know about these today. burlington leading higher. brl loost boosting from a buy to neutral. the burlg stop store story continues to gain traction. now, the analyst does admit -- good friend says, yeah, i missed it. i was late to the party. he is still bullish target. $58. >> moving along, stock number two. a $155 target. it implies up to 10%. kelly beatty likes the product. stocks not up today. down .2. a bullish call nonetheless. >> stifel initiating 21st century fox as a buy. >> price target there $41. about 17% upside. they also name the company as a top pick. they're talking sports, man. listen, while fox and new fox sports still does lag espn, the increase in the sports expansion has been rapid. they love that at stifel.
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a buy ragged. >> stock number four, boston beer. sam. sam. >> proof that goss god loves us and wants us to be happy, right? >> it's called an industry leader in the craft beer space. they have all kinds of brands you probably don't know about. with target on sam, $3.62. 20% up side to the current price. stocks also up 2.5% today. >> the last stock this is our under the radar name. it's called -- it's a new name for the combination of rf microdevices and tri-semiconductor that decides to go easy on us. >> i see -- >> all the analysts starting to come out. green capital starts with the buy. also started with the buy. qrvo. now for an under the radar
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follow-up. back on december 22nd it was so last year. we pointed out a company called hortonworks. take a look. >> there's something called a dupe. hadoop. it is software that helps move big data around computers. i'm sure i got that completely wrong, but that's the most that i can understand about what hortonworks does. if anybody works there, let me know if i got that right or wrong. >> well, hortonworks heard our who and what. rob beardon, ceo of the company joins us. we got all these comments. you don't whan hadoop is? >> as a good southern boy, i expect this to be in plain english. what is hadoop, and why is it hotted? >> it's a new data platform. the companies build their big data strategy on. it gives them a new way to store, process, and analyst new paradigm data sets. things the data sets from mobile, social, web log data, sensor data, and it gives them
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the ability to understand what their customers are doing before they ever drive a transaction so they can interact with them in a way that creates value before that transaction ever happened. >> who are the biggest competitors? >> we have a number of competitors and partners. they create a richer environment for their customers. >> that was a -- who do you sell against? we have another win for hadoop? who are you beating, or is it an entirely new thing that's on top of something else? >> our model and strategy with hadoop is to insure that we're driving the core innovation of the platform. we're making it enterprise-ready.
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twhen partner with the existing date extra platforms so hp, microsoft, red hat, ibm, and allow hem to bring more data under management. the viewers are sitting on their couches, and how do you come up with a name hadoop? >> the hadoop mascot is an elephant. this is why we said dr. seuss. mascots are -- hortonworks. horton hears a who, and is this a dr. seussian reference here? >> it is not. it's just an association to the elfapt, and horton hears a who, and we do a lot with hortonworks. >> any logo that features large ears i'm in favor of. i think that's perfect. >> he can be your mascot next time. thanks for joining us. >> thank you for having me. >> i think you laid as a tech guy can. it's hot. you vies have been booming,
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right? hadoop is a strategic part of the landscape. it's the only platform that can bring the volume today to under management and almost horizontally stay on an infinite basis. it's an economic that's not been fair to achieve. >> is it fair to say that in some ways you guys have created or tried to create a new market? >> it's a messy market because it's data that's not under management today, and no one is monotized. >> i was just seeing that since we mentioned your company on our show, you have been initiated five times. most of the things like outperform, buy outperform, et cetera. you know? don't prove goldman saks wrong, they don't like that. >> thank you. >> thank you for coming in and explain it to us. somebody is paying attention. it's great. we ask, and you come on. thank you. >> is it a sign of what's to
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signs. let's take a look at the s&p financial sector, because, you know, it's still early. so far the earnings season have not been great for the banks, and this week financials are down about 3.5%. that is the worst percentage loss since april, folks. let's bring in mary thompson now to talk more about what's going on with the banks. we haven't heard from all of them, but what we've heard so far has not been crashed. low interest rates, regulatory restraints, and a difficult environment weigh on most of the banks' earnings, and all of the banks stocks. so far this year. remember, coming into 2015, many had expected u.s. rates to rise, a scenario that would greatly benefit the banks, and overseas all of that has pushed back a number of and have also helped to push down stocks in this sector. year-to-date, the banking index is up 9% underperforming the s&p 500. profits for financials which include the results for those that have reported so far to come, down 2%. goldman sachs stock is down 10% so far this year. extending a loss today after the
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investment bank reported better than expected fourth quarter profits. still earnings drop from last year's quarter amid trading and a declining revenue from debt and equity underwriting. now, it reports on tuesday and its results forecast to be up in 20913 and down from the third quarter of 2014. it could benefit from trading as well as stability and its wealth management business. then next week we also get numbers from the regional banks. here investors will be focused on a couple things. loan growth on their net interest markets. it could be impact bid competition in this area. again, the big banks come out. their numbers, again, impacted by the traegd revenue or the trading revenue for the most part. that's hurt them. the regionals will wait and see. loan growth, if you looked at wells fargo and jp morgan, they have good loan growth, and whether or not this pour tends good use. we'll have to see as well.
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the interest rate outlook, hurting. >> i bet it is. thank you so much. mary thompson. now let's get to dominik for a market flat. >> mandy brian, we're watching shares of gilead. aetna says it's negotiated a discount with the biotech company for its hepatitis c treatment and will offer it as a preferred choice for its 20 million commercial customers. gilead up 2.5% on the day's trade. back to you. >> thank you very much. once the canary in the coal mine, bank earnings not so hot. what can we expect for the rest of the earnings season? joining us now mark, chief investment strategist with janny montgomery. do earnings in this environment even matter? >> well, i still think that they do. obviously we want to hear about what had happened, but that's all rearview mirror. we also want to hear what management has to say about conditions going forward, and i would be less concerned about what we hear about domestically because there the picture is pretty sturdy and brightening.
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i want to hear more about what multinationals will be saying, and a lot of hem are in the cue as to what they're seeing in foreign sales and the opportunity or lack thereof and obviously to the fx headwinds they're going to be facing, which we have an inkling of, and i expect this could be more pronounced here in the fourth quarter. >> just looking at the banks specifically, though, mark, friend -- one of the things that he pointed to this morning was energy stocks are getting all the attention, but we really need to pay attention to what's happening with the banking stocks and if they continue to decline and sort of take out the october lows in a meaningful way. it could have negative implications for not just obviously that sector, but the broader market as well. do you agree? >> well, sort of half-heartedly. i know financials have historically had a signalling mechanism where you wanted see the financials lead the market. that would be indicative of an improving economy. so far the institutions that are reported are mostly money center banks. it's not outright capital markets banks.
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as a consequence, most of the activity that they have seen oon erosion with are trading related or currencies or commodities and, you know, not necessarily mainstream activities. i'm actually more interested in hearing like a wells fargo or the commercial side of jp morgan or as mary had said, some of the regional banks reporting. i understand that net interest margins are under pressure because we've had a 37 basis point collapse in yield on the five-year treasury in the last year, and 100 basis point collapse in the ten-year yield over the last year. certainly that's going to put pressure there, but at the same time hopefully we're going to hear about long volume increases, and that will be an important reflection of domestic economic activity which ultimately is the key and, therefore, why i would not saddle up with necessarily financials being a leading indicator at the moment. >> when we go back and read the history book about this period in time, mark, will we say that oil's drop was a net negative or a net positive for the stock market? not the economy, but the stock
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market. >> i think it's going to be a positive for the stock market. i mean, clearly it should be for the economy, but ultimately, yes, of course, energy has taken the brunt of it at the moment, but there's going to be other industries that are going to be beneficiaries of the decline in oil prices, and as a consequence, i think more than make up for some of the losses and even the effect of lower oil prices as it spills out just beyond the energy patch. >> mark, thank you very much for joining us. we'll get you back on shortly. >> okay. one sector really getting whacked because of the stronger u.s. dollar. >> we're also going to take a look at how the sudden drop in oil prices is affecting the travel industry. don't go away. stopping you, and a lot helping you. technology that's with you always. this is our promise. it's never been better to wander, because wherever you go, you'll find us doing everything we can,
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this is interesting with oil. crude oil popping here late in the day closing up just a hair under 5%, and, mandy, that was enough that we actually ended higher for the week. it would have been eight straight weeks of declines for crude oil. we finished the week higher. oil, you wonder if it it will a lucky seven. the price slide done? where is waldo? still a lot of questions to be answered but this is a positive for oil. it no longer -- we can say it's a seven-week down streak, it's over. >> yesterday i made the where's waldo when we were asking where
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is brian going to be today. you were in toronto. there you go. found you. >> i was trying to go to montreal. >> i'd go to hawaii. low oil certainly helping with prices at the pump but what about other means of travel like airlines or even helping with the cost of next hotel you check into let's bring in jason clampett, co-founder of skift, a magazine devoted to annual travel trends. let's go 2015 kind of annual travel trend. how has low oil changed the equation for a lot of these places and means of travel? >> i think 2015 in terms of air travel, we're not going to see prices drop a lot because of oil. i think the last bit of news you just shared about the price inching up a little bit shows airlines will be reluctant to drop any surcharges or chings li things like that. in addition, they like the money they're making right now. the net profits for airlines are relatively slim. 3.5% or so, and so even massive
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savings in fuel prices, they're not going to try to get rid of those fuel surcharges anytime soon because they don't know if they will come back up. >> also, if you can charge more and get more, you're going to do that. >> exactly. >> i have been on a lot of planes lately and they all been full and the fares have been high. it seems like good times for the air airlines. >> an organization said they're going to make a 25% increase in profits next year. a lot of that will be happening in the united states with the fleets in good shape. we're seeing some sharls decide to forgo buying new planes, pushing them back a year or 18 months because the new planes are more fuel efficient but fuel efficient when prices are low isn't as important. they will try to cut into market share by cutting fares a bit but as i said holding joen to the fuel surcharges. >> let's talk about who is going to rule the world of online
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bookings. yesterday priceline and trip adviser took a whack at the foreign currency thing. so that's by the by, but in terms of who is going to rule the online booking world why do you say priceline and expedia will not be the rulers for very much longer? >> both of them are in very good position. expedia, think of its two traditional rivals, orbitz and travelocity. expedia is basically running travelocity and orbitz is in distant back place. booking.com and priceline are doing very well, too. i think we're going to see some new parties enter from the side, whether it's chinese organization like sea trip making an ambitious push into the u.s. or somebody like amazon who has a great relationship with consumers already moving into travel. we're not going to see it necessarily from a travel startup coming in but it's somebody who already has a lot of money who has great relationship was consumers and
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knows how to sell. >> jason, it was a prael plerea pleasure, buddy. so what are the stock that is stood out to us in this very hectic and wild week for the markets? we have to stick around and find out. >> our stocks of the week. standout stocks of the week. and also the dow. look at this. it's not quite at but near the very highs of the day right now. it's currently up by 110. stick with us to see how this day will end. is that a gandalf reference?
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time now for our standout stocks of the week. i'm looking at game stop. it's up about 10% this week. also the s&p's most shorted stock. but on wednesday it got an upgrade to outperform because physical software like what you actually play with your console will finally return to growth this year and gave it a 48 buck price target but highly shorted stock. >> ain't no sunshine when she's gone. your segment is over. de depomed up 12%. they bought a big portfolio of products from johnson pharmaceuticals. de depomed the best performer this week. >> it's a very under the radar
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stock. we find these gems, these nuggets down there in the coal mine and we pull them out and let them shine. thanks for watching "street signs," everybody. have a great long weekend if you're off on monday. >> "the closing bell" will have a big couple hours. the dow up 113 points. can we end on a high note? you have to stay tuned to find out. have a great weekend. >> brian and mandy, thank you. welcome to "the closing bell," everybody. i'm kelly evans down here at the new york stock exchange. >> and i'm bill griffeth. buckle up. who knows what's going to happen. if we've learned anything this we can is that the final hour holds most of the cards for how the market will finish whether it's up or down. and this week i think we've seen it all in terms of volatility, news events. it has been an unbelievably volatile week not only for the markets but for news events as well. >> that's right. we have to keep an eye out to see how we finish. we just had oil pop 5%
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