for example, the decision we've take yesterday about the repurchase -- about repurchasing bonds that come to maturing so that rather than maturing them and draining liquidity from the market, they will stay on our balance sheet for whitequite a time being long-term bonds was actually meant to avoid a fall in liquidity that would happen, and there are very powerful factors in the euro area that would actually cause this fall in liquidity even without our policy action. so we have to counter them to make sure that liquidity conditions will stay quite ample for a long time, so even -- if we were to experience inflationary pressures as we

would have called them in the '70s, we would, one, the first thing we would do is simply let things go without addressing them, but we have also plenty of instruments to do that, to drain this liquidity. >> mario, first of all, thank you for a terrific speech which really does clarify to an american audience some of the thoughts that went into your decisions of yesterday. i'd like to ask you to elaborate on a theme you touched on and you've discussed in many speeches previously, and that is the structural reforms. it seems to me one of the difficulties that markets tend to have these days is an over reliance on what central banks do or what they expect them to do. with very little emphasis on what governments are not doing that they should be doing in order to deal with these

structural problems, the unemployment problem obviously is one. improving the competitive environment which is, of course, a big eu issue. i wonder if you could take a few moments and comment to a greater extent on some of these fundamental changes or if there's a risk that over reliance on central bank policy in itself will give policymakers in capitals or in brussels a way of avoiding some of these more important structural issues because they simply say let the central banks do it and we don't really have to take the tough political decisions that are needed. >> well, first, we've experienced in the last -- during the crisis time actually that the effectiveness of our monetary policy was seriously hampered by the lack of certain structural reforms. let me mention one of them. the state of health of the

banking system. banks were given very generous liquidity lines at the beginning of 2012, what we talk long term refinancing operations, namely 1 trillion euro was extended with a maturity of three years at very favorable interest rate conditions at that time, and it was a good decision, it was important because it avoided massive bank failures which were possible at that time, but we, frankly, would have expected much more transmission of all this money into actual credit to the real economy, and we've seen very little. we've seen very little for the reason that these banks were unhealthy, and so we needed what was actually a very important structural reform, namely completely overhaul the

supervisory system in the euro area, and we did it creating a one single supervisor located in frankfurt and, therefore, independent from national vested interests, and basically revisiting deeply many of the sort of rules and procedures used in carrying out this supervision. and the amount of capital that the euro area banks raised as a response to this, i can't remember the number but it was very significant, but even more significant was that after that credit recovered and it's still recovering now. so that is one structural reform that actually improved the transmission of our monetary policy. without that there was no transmission. so we lowered interest rates. it was no lower lending rate -- >> we break away from mario draghi's q & a session.

an interesting session. we'll continue to monitor it as you observe that he sounds rather dovish. >> did he make some very dovish statements like quantitative easing is here to stay and they will deploy further stimulus if needed. so let's get down to dominic chu now at the floor of the nyse because we're currently sitting around session highs with the dow up by 338 points, dom. a very good session so far. >> we were up by about 353, 60 thereabouts during mario draghi's speech, but to echo something you were talking about, it does feel like you have a very dovish tone coming from ecb head mario draghi here. it has some of the undertones from that whatever it takes speech. the ecb will stand ready to do whatever it takes to make sure that the economy there is on solid footing, that things are going well for the markets and stability overall in the eurozone. so that's what a lot of traders are taking this to be and this is going to be a very big deal. now, if you take a look at

overall the market reaction, draghi speaks and it's as if he talks down the euro and talks up the u.s. stock market. we'll show what you we're talking about here. if you take a look at the euro, you see that big dip there during the course of mario draghi's speech. we've at least recovered some of those losses down, but we're still, again, a sharp move higher for the euro yesterday, perhaps correcting a little bit of itself with those comments and that speech. if you look at some of the other ripple effects from the market overall, the dow is, like we said, heading up to the best levels today, up by 340 points thereabouts, and, of course, that's translating into other parts of the market as well. the overall market is up about, yes, 2% there. the apple, the jpmorgan chases of the world are doing well in trading, up about 3%. you have the integrated oil companies like chevron and exxon really dragging things down. at one point today -- i have to check, energy still the worst performing sector. we'll keep an eye on what's happening overall.

back over to you. >> dominic, thank you very much. it's been a week of consequential rhetoric and co consequential actions from the central bank, and steve liesman has been following it all. steve, you're on. >> i got to correct it, you said it was interesting. from my standpoint it's awesome cool what's happening right there behind me. you have mervyn king, the former governor of the bank of england asking mario draghi questions, some of the things that were elic elicited, what happened yesterday, how did you blow it and draghi tried to change it saying we didn't propose a revolution in monetary policy, we proposed a recalibration and he went on to sound very dovish. we have the commitment to act. he said the ecb will respond again without delay if needed. let's take a listen to what he said in the market-moving comments. >> there is no particular limit

to now we can deploy any of our tools, and in this context it is important to recall that we operate under a clear framework of monetary -- what we call monetary dominance. we are ultimately driven by our mandate of maintaining price stability. >> on practithat price stabilit said they will secure 2% inflation with undue delay and they can deploy further tools if necessary. he said the ecb policy measures are having their intended effect. the euro, you have this initial reaction where it weakened and then kind of came back and now it's weakening again as the market takes these ideas in. remember, we started yesterday before the ecb announcement at around 105 or 106 level. but stocks like what they heard. really when you get back to it, here is the issue. the issue is yesterday did we hear additional measures with a period or with a comma?

in other words they can and would do more or was that the end of what they do and that was really the debate in markets after draghi's speech yesterday. today we're hearing more of a comma as in if we need to do more, we will. >> should we get a -- stick around why don't you, steve, as we talk a little bit more about the jobs report this morning. >> absolutely. let's bring in bill rogers, professor of public policy at rutgers university. he's also former chief economist at the u.s. department of labor. so very qualified to talk on this subject. great to see you once again. you know, in light of what we saw today, why are you still saying it would be premature to go ahead with a hike this month? >> if i can just -- before i answer that question, if i can just add, i was in brussels last weekend or the weekend before when the city was on the lockdown and there was the imminent threat and i think even though draghi doesn't talk about the threat of any paris-style attack or any kind of attack, i think the comma that steve added in there i think is possibly related to there still could be this concern that you may have

something -- destabilizing effects or even the thought or the fear -- >> the material knock on effect on economic activity you're saying. >> that's right. i was holed up in a hotel room for three days and the classic sort of cafe that you sit out and have a tea or latte, you know, shut. there was no activity. >> but back to the fed -- >> sure. >> your view is it would be premature for them to move in december. give me your data-driven reason why in this data-driven fed environment. >> sure. i feel like i'm actually having the same data i had back in 2000 when i was working for alexis herman when she was labor secretary. and that we have a skill shortage and not a worker shortage. and, hence, that's not creating wage inflation. we have 16 million americans that make up this untapped pool of potential. the people who are unemployed actively searching but additionally as janet yellen talked about the other day, those who want a job and no who are working part time but want

to work full time and it gets you up to 16 million americans and finally today -- another point about wage inflation or wage growth in this report relative to cost of living, still relatively modest. >> steve, jump in here. >> yeah. you know i have enormous respect for you which you know is a great preamble to a criticism. >> exactlying yes. >> jur a bit like going to war on a horse when everybody has a tank in that i think you got to stop fighting this notion of the first rate hike. i think it's a done deal and the point i'm trying to make is that all incoming data including today is no longer expressed in terms of what happens a couple weeks from now in december. it's in terms of what happens with the next rate hike. so if there's a battle to be fought, it's when the next one comes and john riding this morning was very clear. he thinks it happens again in march and the fed may go as much as -- say get to 100, 125 basis points by the end of next year. i don't think the december thing is even under debate anymore.

>> i agree with you. i think the odds are about 80% in terms of a december hike, and as i said last month on "squawk box" my concern is the path. i believe -- we will have the increase most likely in december. do i want it? in my eyes do i see it in the data we need it? no, but i accept it's going to happen. but the path of increase will start to have that effect. we're getting to a point -- one second, tyler, we're getting to the point in the economy where today we began to see it looks like people who are the lower or middle rungs of the job ladder are finally starting to be pulled into the labor force and getting jobs. if the fed not only raises rates but starts a path, we put ourselves in jeopardy -- >> but the moves in participation were really, really small. >> i said it was the beginning of a tip. >> really, really small and wage growth has been really, really slow throughout. is it going to be that much slower if rates go up a quarter

point or even a half point in 2016? >> this was the same conversation we had -- similar conversation we had last month, and probably, probably not, but it's the path. it's the path -- >> there is no predetermined path. they keep on reiterating, yellen keeps saying it depends on the data that comes in. >> the speech she made yaed, when i read it, i got the sense they're starting to talk about the path in terms of what the increases would look like. >> we'll see. thank you very much for joining us. >> good as always to see you. >> thank you. >> thanks, steve, as well for your input. >> the investigation, of course, continuing today into the mass shooting in san bernardino. nbc and other outlets have gotten now a first look at the shooter's apartment. jane wells is live in san bernardino with the latest. hi, jane. >> reporter: hey, tyler. we're going to have a news conference with law enforcement at the top of the hour, 11:00 a.m. local. that would be two days to the minute when the massacre here started. we have so much news coming out. first of all, law enforcement sources are saying the wife, the

woman in this case, tashfeen malik, the woman from pakistan pledged her support to the leader of isis on facebook just before the shootings and they are now investigating whether she was the, quote, radicalizing influence. look at this video. kerry sanders got inside the home malik shared with her husband. he found so many normal things like children's toys, but also a very busy shredder. and in the garage investigators said it was a veritable bomb-making factory complete with machines, pipes, soldering tools, wires. some new photos of the pipe bombs found by police. there were 15 of these devices including three here at the massacre side and inside a lexus, not the rented ford suv they died in, the fbi found things like shooting targets, gopro packaging. there had been some rumblings that maybe the shooters were wearing cameras.

the police chief told us yesterday there was no evidence of that. but gopro packaging found in the lexus. finally we learned who the victims are, 14 people, 12 of them county employees. families are releasing these photos of loved ones ranging from age from 26 to 60. 48 hours ago, 48 hours ago they were alive. now 14 families are planning funerals. we hope to get information at the top of the hour, and one last crazy note, kerry sanders' crew inside the house is saying people onlookers outside are coming inside and taking things like refrigerator magnets or pins as souvenirs. back to you. >> where are the security guards? where is the police? where are the fbi? aren't they guarding the apartment? >> reporter: i would assume the crime seen must be cleared. they must be done with their work and have left and now it's up to the landlord to decide who gets to come or go. >> it seems crazy. i mean, i feel like we need to speak to someone in a position of authority. i believe we're working on it to

try to talk to someone about what the procedure is in this kind of situation because it does feel, quite frankly, just a little out of line. >> reporter: if the police are done, they're done. if the police are done, they're done, and the landlord is in charge. it's his property to do with as he wishes. whether he's on site, whether he's letting people in or not. if, in fact, the investigation at that location is finished, it's no longer an fbi issue. >> okay, jane, thank you very much. great reporting as always and as we mention we'll keep on exploring this situation later on in the show. let's get back to what's happening in the markets and jackie deangelis is at the nymex with a news alert. >> good afternoon to you, mandy. we are watching for the baker hughes rig count number. it did come out and we saw another decline in rigs, down ten, to 545. these are oil rigs i'm talking about. the total is down to 1,030 from a year ago. we're down 13 in the last 14 weeks. we're still hovering around $40 a barrel.

in the eia report on wednesday, production in the u.s. actually went up. it went up to 9.2 million barrels a day. until we see the rig count declines translate into production declines, we don't have a meeting of the minds. oil prices trading around $40. >> and let no one ever say, jackie, you can't count rigs as well as sully. >> thank you. >> just don't let anybody say that about you. thank you very much. treasury yields on the move following the jobs report this morning. how is the mortgage market reacting? diana olick is tracking it. hi, di. >> high tyler. the number was in line with expectations. the bigger move actually was yesterday when mortgage rates took their biggest leap in two years on a daily shade on news from the european central bank. the average lender saw a full eighth point hike. that's about one point or 1% of the loan amount in up front costs for a borrower. a move like this is pretty rare. mortgage news daily points out

there are only 14 other days in the past five years that we've seen a big jump like this. yes, it only equates to about 14 bucks a month on a $200,000, but it still freaks out today's borrowers. rates are higher than month ago but mortgage applications to buy a home are at their best levels since october. >> let's get a check on treasuries right now. they are all rising following that strong jobs report. on the cnbc newsline -- and there you see the yields on the notes there. the ten-year at 2.27. the yields going up. dan fuss is chairman of loomis sales and one of the legend forces in the world of fixed income investing. dan, good as always to speak to you. thank you for spending time with us today. >> thank you. >> there are two sort of overriding issues confronting it would seem to me the bond market right now. one is the potential for the damage that rising interest

rates could do to principle of people who own bonds and bond funds. how big a risk is it? >> well, if this were a start of a continued stream of fed funds increases, it could be quite serious. the presumption seems to be that, okay, the fed funds rate is going to go to 25 basis points. it's already 12, 13, 14 basis points, not very big. possible. some people say probable. quick second move to 50 in january. now, this is all tea leaf or quite frankly speak reading at this point. it's quite obvious, tyler, there is a division of opinion within the fed. there always is, but some of

this has been public. janet yellen's comments yesterday said that this thing is coming, and let's be clear on that. and yet you've had two of the fed governors come out and say, well, now, wait, we've got to check some more numbers. that was earlier. and a few of the regional bank presidents have said, well, you know, there's a few more numbers. if they were waiting for the jobs report, the jobs report is not spectacular but it's good, so that looks all right. the question is really is this a one step or even a two step and stop, which i think is the market presumption, and i would add, let me add this -- >> so at what point, dan, does it start to pinch and hurt? if i'm doing my dan fuss tea leaf reading, it would be that a couple of hikes of 25, a quarter of a point, aren't going to do too much damage to most bond

investors, but where does it start to pinch and where do you start to change your duration or the kinds of bonds or bond funds you hold? >> well, it's time to do that right now if you haven't done it already. we already have. >> you have shortened duration, i assume. >> yes. >> right. >> and it's key to look at average maturity along with duration because they're two different things. >> uh-huh. >> now, if you're a very, very high quality, they're pretty much one and the same. but as you move down the quality spectrum, they differ. the key thing here though is that to look at what the fed does in the context of the other major central banks around the world, and the feds' hands i think are really tied by what happens if rates go up too much in the u.s. does that suck the money out elsewhere?

it's already happening. >> i want to pivot very quickly and squeeze one more question in about concerns about credit quality and whether you are worried that there may be a looming crisis in the high yield market, particularly tied to the problems of some energy companies. how worried, if at all, are you about that? >> well, i am somewhat worried, not as worried as i am about the red sox but we are past the midpoint of the credit cycle, just in general. >> uh-huh. >> now, it's been very slow, and with rates being relatively low, very low as a matter of fact, it will likely be possible as long as, as long as the business aspect of the credit looks reasonable. >> right, okay. >> you can probably continue to

extend. energy is another matter. it depends on the price of oil and, importantly, natural gas. >> right. >> both of them up, and you don't worry. mark them down and you worry. >> dan, thank you so much for your time today. one of the best, dan fuss of loomis sayles. >> nbc news getting a first look inside the apartment of the san bernardino shooters. law enforcement sources say the female shooter posted her support for isis in a facebook post before the attacks. we're going to answer the important question surrounding that. we're also watching a huge rally on the street. the dow is up 349 points as we speak and you've also got wti down about 2.7% or below the $40 a barrel mark. we'll get the oil close in "power lunch" in the second hour coming right up. do not go away. equals great rates.

hello, everyone. i'm sue herera with some breaking news. the u.s. embassy in nigeria says that it has received information that groups associated with terrorism may be planning attacks against hotels frequented by westerners. the embassy goes on to say that it has no further information regarding any timing or method of any planned attacks but once again the u.s. embassy in nigeria says it has received information that groups associated with terrorism may be planning attacks against hotels

that are frequented by westerners. we will keep you posted. it's a still-developing story, ty. i'll send it back to you as we watch the wires. >> all right, sue. thank you very much. less than an hour ago media, cameras, crews, permitted to enter the apartment of the california couple that killed 14 and injured 21 others in san bernardino on wednesday. and there are some photographs of that scene, and there is the landlord who apparently allowed access to that once boarded up apartment. let's bring in cliff van zandt. he's an msnbc contributor and former fbi profiler. cliff, welcome. good to have you with us. it surprised i think is a mild word for some of us in the newsroom, it surprised a lot of us that camera crews would be allowed access to this scene less than 48 hours after these shootings. is this unusual? >> i think surprised a lot of people across the quhount watched it on live tv. i mean, as you well know, it

turned into a media feeding frenzy, and there's a couple of reasons why i think this took place. number one, the subjects are dead, okay? the two primary shooters in this we know are dead, so we don't need to assemble evidence to show that they committed this crime. but, and let me continue with that, but there may be still other things in there, and we hope the fbi evidence team has gathered everything they needed, but latent fingerprints, dna, other physical evidence. for example, in one of the cars they found a receipt for a goprocamegopro cameras. well, the police says no, they didn't have cameras. where are those cameras and is this video going to turn up on a isis type of video within the next couple days. just the things you see that are being handled in there. could they have fingerprints of other co-conspirators?

we don't know. >> that's what occurred to all of us here was the idea that what if the fbi decides that they need to go back or local police needs to go back and comb that scene again? now that whole contaminated, right? >> absolutely. any physical evidence that would be found from this point on that would be used in any type of case or at least prosecution -- of course, they'd say, wait a minute, that's contaminated, you let the media in. common sense for you and i say if i was the fbi, i would have paid the rent on the apartment for the next three or four months until i knew that i didn't need it anymore, but the fbi, the local authorities turned it back over to the guy who owns it, and he just told the media, hey, have at it, have a field day. so they better have gotten everything they needed out of there because any hidden compartments, hidden evidence, physical evidence, it's either gone, people are going to be taking souvenirs out of there or

it's going to be contaminated. >> what are the rights of the family members or relatives of the attackers, clint, in a question like this? after the fbi said, okay, we've got what we want? who has then the first right of refusal of the personal items? >> well, you know, you got to bring your lawyers in here, but, number one, we're in the middle of a month. you assume the rent would have been paid this month so would that not convey at least to the two deceased shooters, to their family members, and should the family members not be given first opportunity to come in and pick up anything and carry it out before the feeding frenzy starts on the part of the media and everybody else in the community who chooses to walk through here now? >> let me ask you a question that broadens out the conversation, and that is it is becoming more and more evident that the female shooter in this case was using facebook to either pledge her allegiance to

isis -- >> sure. >> -- and that the male shooter was connecting via social media and other means to other radicalized individuals. how difficult is it for the fbi given, you know, sort of the rights of free speech and of privacy to pierce those kinds of communications in this day and age after some of the laws that would have allowed the metadata collection and other things have lapsed? >> well, we know in the united states, for example, the fbi has made almost 60 isis-related arrests in america so far this year. the majority of them in minnesota and new york. we know, too, that terrorists have been right up front. we found out that they use game boys and they use concealed chat rooms to talk to people that they're bringing along either full blown terrorists.

maybe this is a cell in california with other individuals involved. we don't know. and then they may have gone black. look, the authorities are looking at computers that have been smashed, cell phones that have been smashed by these two shooters. that is absolutely terrorist trade craft, which says swear your allegiance in this case we know she did to isis, and then destroy anything that would link back to other members of your organization. >> right. >> we don't know how wide this is at this point. >> all right, clint. thank you very much. i'm sure we'll be in touch in the coming days. clint van zandt. >> and we'll talk more about the role of social media later on. in the meantime, gold is having its best day in nearly a year. let's get to jackie deangelis as the final trades are crossing at the nasdaq. a very interesting day for gold. >> yeah, big pop in gold prices, mandy. we're up about $23. looking at gold around the $1,084 level here. this is a two-pronged play. one piece of this is currency

after mario draghi yesterday. the strength in the euro, the weakness in the dollar. the other piece of this today is the jobs report. gold traders still waiting to see if we're going to get that december rate hike. that's part of it but they think we could potentially move a little higher before that december date when the fed will make its decision. so $1,092 is the level they're watching to the upside. we're not quite there yet but we're getting pretty close. "power lunch" will be back in two. you pay your car insurance

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welcome back to "power lunch." draghi for an encore performance today, stock markets moving up to the upside rather dramatically. if this was the 17th century maybe i'd say the draghi dot explain too much me thinks but no matter how it works out the markets have listened on the equity side. let's look at fixed income, one day of 10s, it looks as though rates have moderated. two-day bunds very similar. close to unchanged today but yesterday made a big difference. you can see it on the chart if you open it up to november with bund rates significantly higher and may 1st, the euro versus the dollar, which came off a bit in the euro. many are looking at the 108 to 109 in a level. now, "squawk box" will return in about two minutes' time. wallapop makes it simple to sell anything!

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hi, everybody. i'm sue herera and here is your cnbc news update this hour. opec oil ministers have decided to keep producing oil at their current high levels.

the decision has been pushing oil prices lower. the nigerian oil minister saying opec could hold another meeting before june if prices continue to slide. crude is just below $40 a barrel right now. thousands of police officers from across the country' attending the funeral of a pennsylvania police officer killed in the line of duty. officer lloyd reid was slain while responding to a domestic violence call saturday night. in madrid, city officials have put anti-pollution measures in place for the second time in a month. metered parking spots have been restricted to stop cars from being used in a bid to combat those high air pollution levels. this comes after three straight days of high pollution. miami university introducing their new football coach, mark richt. i was hired after being fired from the university of georgia after 15 seasons where he won nearly 75% of his games. the dow is up 340 points so let's get to kate rogers who is

at the nasdaq. >> the nasdaq is in rally mode today, up nearly 2% for the composite on the heels of that november jobs report. among the biggest gainers, ea. the company's coo telling fans about the video game publishers new lineup for next year, including a new battlefield game at a credit suisse conference. that's up by 4.5%. fe activision blizzard up by 3.5%. the ibb biotech etf also rebounding by 2% after seeing losses yesterday. apple also seeing a big jump here today by 3.1%. news that its biggest rifle samsung announced it will hand over $548 million it owes for patent infrangment. >> so is today's strong jobs report the catalyst for year-end market rally? joining us now, steven freedman from ubs world management research. good to see you, sir. to what degree did the strong

jobs report basically vindicate what the market has been expecting all along, at least most of the market, and that is a december rate hike, and, therefore, today we're seeing sos sort of a sigh of relief. >> absolutely. i think the jobs report really delivered on expectations. it was a bit better than what consensus figures were predicting both in terms of the actual number but also positive revisions for prior months and i think at this point there's really very little to prevent the feds to go ahead and hike in december. i think it's a good thing generally speaking because they can finally rip off the band-aid and i think they're likely to see once they remove the band-aid that the wound has healed fairly well. the whole discussion now is going to turn more towards the pace of tightening rather than the time point -- the point in time, and we think probably once a quarter on average is going to be the pace. the futures market seems to be more settled on three hikes for the year. either way, i think it's generally speaking an environment which is supportive for stocks because this is all

happening due to improving fundamentals, not because of an inflation scare. >> even if it is supported for u.s. stocks, would there be even more support from the fact that mario draghi of the ecb sounded incredibly dovish. he's going to provide more stimulus if needed, qe is here to stay, all these comments suggesting maybe you get more bang for your buck or your euro over in europe? >> that's exactly the way we've been recommending that investors position themselves. we believe that as far as the u.s. stock market is concerned, you can expect high single digit returns over a year where yazidi -- where yazidi in tas in the 40% lower than the first peak. there's really an earnings growth story here and that's supported in addition to that by the very dovish stance of the european central bank. >> stephen, enjoy your weekend and thank you for joining us. go to powerlunch.cnbc.com to see his global strategy in 2016.

ty? >> mandy, we're all over this big rally at this hour. take a look at the heat map and that graphically shows you just how powerful this gain is of 1.75% in the s&p 500. you've got basically 85 out of 100 of the s&p 500 stocks moving higher. newmont mining, skyworks the biggest gainers. when is the last time you saw a miner at the top? power is back in two. year after year. then one night, you hydroplane into a ditch. "power" is back in two. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year.

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stocks rallying today on a strong november jobs report. 211,000 positions added. unemployment rate, 5%. joining us, mark moriel. we also have joe watkins, republican strategist and former white house aide to president george h.w. bush. does this jobs report suggest an

economy that's strong enough to deal with rising interest rates? >> well, you know, i think we're kind of on the right track, but i still worry, tyler, about some of the other indicators. i look at, of course, the labor force participation rate which is still steady at 62.5%. that hasn't changed in a long, long time. that's not good news. i look at the fact that for part-time people, people who are working part time for economic reasons, that number actually spiked up by 319,000 to over 6 million now. people working part time for economic reasons. i look at the long-term unemployed. they fully make up more than 25% of the unemployed number. those are all issues we still need to work on. we're not where we want to be. we're not as strong as we want to be. it's a delight the rate of unemployment remains low. it's great to see new jobs being added, but i'd like to see more strength. >> joe points out some of the weak spots in what was basically a fairly optimistic report, mayor, but would continuing interest rate policy at its

current levels and stimulus, would that necessarily do anything to address the things that joe i think correctly identifies as lingering problems? >> i think it's going to require more fiscal measures, if you will, and i think congress took a good step this week by passing a broad five-year transportation bill, something we discussed many, many times over the last several months would be a help. so this is a good sign for 2016, but my concerns are about income inequality, continued wage stagnation, and we're going to have to address that if we want the growth we see to not only continue but to be augmented and to increase. >> all right. i'm going to turn, gentlemen, away from jobs to a couple of other very hot topics. maror, i kne o mayor, i know you happen to be in chicago and earlier this week the release of a police video showing the shooting of a person

of interest on the streets of chicago, but the video was not released and the individual was not charged with murder for 14 months or thereabouts. the whole way that mayor emanuel and the people in chicago have handled this, mayor, to me really smells. what do you say? mayor emanuel was in a very competitive race all spring as this event was still festering there and a $5 million payout to the family. >> the video should have been released a long time ago, ty, and transparency and openness in the face of difficult circumstances is better and there's a great sense here in chicago that there was an effort to cover it up with the hope that maybe it would go away, and then there is another videotape from another incident which is going to be released. i think all of this points here in chicago to the need for comprehensive reform of the

chicago police department. the way to build confidence is there's going to have to be systematic changes. there's a confidence issue here in chicago, but i do still believe that the mayor by leading the charge for reform can rebuild not only confidence in himself but confidence in the chicago police department. >> joe, i want to get your thought here -- i'm sorry to interrupt, mayor. we're very tight today. joe, i want to get your thought on the situation with the release of the video, the charges against this police officer and ask the question, can the chicago police or chicago more broadly, can chicago police itself or does the justice department need to come in here and set up some kind of watch dog or some kind of investigation into what's going on there? >> well, i think we need to give that some time. i don't know that we right away call in the department of justice to do this job. let's give mayor rahm emanuel a

chance to right the ship, to get things straight. he's done -- at least taken the first step by firing the police chief in chicago, and now he's got to do the hard work on restoring confidence in the police force by hiring the right person to lead that police force and then making sure that that police force begins to communicate more fairly with the community. right now the community feels very wronged as well they should and they have a lot of work to do to restore that faith. >> gentlemen, thank you very much -- >> ty, here is where we are. it's important, the urban league, the state attorney general, and even yesterday now the mayor have called for a pattern and practice investigation by the department of justice. so i think it's fairly clear that with both activists and now the city aligned, there is going to be, and i hope there will be, a pattern and practice investigation by the justice department because it's sorely needed. >> all right, gentlemen, thank you very much. i appreciate you indulging our time pressures today. marc morial and joe watkins.

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welcome back to "power lunch." julia boorstin speaking just moments ago to facebook officials about the connection such as it may have been between the murderers in san bernardino earlier this week and the use of social media. julia, what did you find? >> well, tyler, facebook identified and removed tashfeen malik's profile for violating facebook's community standards. now, the question is did they pull it down before or after the terrorist attacks? it turns out that they did pull down her profile after the terror attacks, about you she didn't actually post her post on facebook pledging allegiance to isis until just around the time the terror attack started, so just around 11:00 a.m. pacific the day of those attacks. now, facebook tells me that any statement in facebook praising

isis leaders would violate the community standards and would be removed. they say they don't allow people to praise acts of terror or promote terrorism. now, the company says it works aggressively to ensure it does not have terrorists or terror groups using the site. how do they do that? facebook responds to any report about terrorist content on the services. they have a 24/7 team monitoring for any people complaining or alerting facebook that there is someone talking about terrorism. now, facebook won't say whether or not it has its own team monitoring both through algorithms or through people for terrorists on their own, but we can probably assume that they are keeping an eye out for any of those key words because facebook does say it's cooperating with law enforcement in this matter. they do obviously have a relationship with law enforcement when it comes to issues like this. so facebook says if they ever become aware of a credible threat of violence, they do alert law enforcement, but i'm sure they don't want to give away their secret sauce of how much attention they're really paying to terms like isis.

>> we want to bring in eamon javers in washington, but before i do that, julia, as i understood it this female murderer was using an alias on facebook, not her real name. >> yes, that is what i do believe and they pulled down the profile of that alias, although the question is if someone had alerted them maybe a month, a week ahead of time that this person was posting things about allegiance to isis, could they have figured out who she was and used that to alert law enforcement? perhaps. i don't know. but no one turned her in. >> the relationship, eamon, between law enforcement intelligence gathering and silicon valley has been a difficult one over the past several years. as julia points out, facebook may have rules that say we take down posts that are incendiary, supporting of terrorists and so forth, but at what point does or should a social media company have a responsibility to report that kind of speech to law

enforcement? >> well, tyler, this is a totally different question than the encryption debate we had after the paris attacks. all of these technology companies, facebook included, work routinely with u.s. intelligence and u.s. law enforcement. they respond to lawful warrants for information about this. there's an ongoing dialogue between these companies and u.s. law enforcement about what they're seeing in this regard on the internet. the question in my mind is it's clear the united states is engaged in a global informational war against isis as isis tries to reach out, recruit, and inspire new jihad dyes all around the world including the united states. the united states and the rest of western civilization trying to prevent that. the question is when does the united states and the western world respond in kind in the information sphere and shut down the isis recruiting websites, their communications on twitter, facebook, and around the world? there's clearly the capability inside u.s. intelligence cooperating with these companies to shut them down or

dramatically curtail their recruitment activities. there are a lot of reasons why that hasn't happened to date, but the question is now that we've had an apparent terrorist attack on u.s. soil from isis or isis-related individuals, will that debate change? will the united states go on the offense in cyberspace against isis in a way we haven't seen so far? >> fascinating conversation. much more to be covered there. thank you both, julia and eamon javers. so the first hour of "power" is down. you can begin your weekend. >> almost. i'm going to stick around -- >> still have "trading nation." >> but over to you for the second hour. >> hi there, tyler. i want to draw your attention to these live pictures in san bernardino, california. we are awaiting a press conference that should begin momentarily and as soon as it does begin, we'll go straight to it for the very latest in the developments in the investigation to that mass shooting that happened earlier this week. meantime, we do have a big story

on our hands in the financial news world and that is the market rally we're seeing at around 12:30 or so. that's when the markets really perked up and we're seeing massive gains across the board. it is as if yesterday's sell-off never happened. the dow jones higher by 343 points at this hour. the s&p 500 up by 38 points. microsoft and apple are up 3% apiece. let's get straight to dom chu at the new york stock exchange with the latest on this rally. dom? >> melissa, it's been a heck of a day so far. we talk about the market action, you just pointed out some of the big movers in terms of apple and mishti microsoft in the dow. the laggards today have been in the energy space and we've been talking about this trade for quite some time but it's worth pointing out today, if you look at the energy sector overall, it is still the only sector out of ten in the s&p that is in the red and it's being at least broadly based to the downside, right? it's transocean. so drilling type stocks, exploration and production companies like newfield. oil services like halliburton.

exxonmobil interestingly enough has just peaked into positive territory in about the last hour or so along with chevron hovering between gains and losses. as we start to see the trade pan out, the large integrated oil companies are at least starting to catch a little bit of a bid. it's not major but still worth pointing out it's marginally higher. if you look at wti crude oil, we're hovering around that $40 per barrel mark overall and that means as oil goes lower as we've seen today, some of those airlines do pretty well. you look at alaska airlines, southwest, american airlines, delta, all of those stocks moving decidedly to the upside, up by 2.5% or more and crude oil again, we're hovering right around that $40 mark. we had crossed below it earlier today. so as we watch what's happen with the energy stocks and airlines, certainly a focus for traders down here from the floor. we'll see if that continues into the final hour of trading, melissa. back tophover to you. >> let's go to steve liesman. yesterday we all thought the lid was going to be on easing

monetary policy and yet mario draghi speaks today in new york city and it seems like he's showing his dovish shid. >> a leg up from jobs and another leg up from mario draghi speaking at the new york economic club where he said there is no limit on deploying ecb tools. he said they can deploy further tools if necessary, and the action they took thursday, he said, in an attempt to walk back the market reaction actually increased liquidity by 680 billion euros through 2019. give a listen to his speech. >> there isn't any specific limit in this, in using this. so as a conclusion, i think we have the power to act. we have the determination to act. we have the commitment to act. >> he went further. he said they will respond again without delay if needed and policy measures are having their intended effect. i want to play you this one bit of somewhat amusing sound where mervyn king, the former governor of the bank of england, asked draghi if his comments today

were specifically in response to the market reaction yesterday. >> was that deliberately designed to try to offset some of the reaction yesterday? >> the speech today? >> yeah. >> no, not really but -- well, of course -- [ laughter ] >> that's the kind of fun you have when you're a central bank reporter, folks. and not so much fun in the euro market if you were short. there we go. it depreciated today against the dollar somewhat, went down a lot further and has come back. so you haven't gotten back, melissa, a lot of the strength you had yesterday but you did get some walk back. >> i think that's an interesting fact, steve, that we erased what happened in the markets on the equity side but not in the currency market. steve liesman, thanks so much for that. we will trade this but look at this. it's a live picture out of san bernardino, california. we are expecting as you see there a press conference on the shooting that happened earlier this week. as soon as that starts, we will go straight to it. in the meantime, let's get to

cnbc contributor brian kelly who joins me at the nasdaq. the equity markets are acting as if nothing happened yesterday with all the volatility between yesterday and today but not so in the currency markets. why is that do you think? >> the currency markets were over positioned. you had some very, very big short positions expecting more from the ecb. people really got over their skis there. so that's going to take a couple days to kind of unwind itself. now, in the equity -- the u.s. equity markets in particular, we did have that jobs number, and if we look at what happened over the week, we had weak isms earlier in the week and a strong jobs number today. so you get one of these not too hot, not too cold economies and the dow takes off. >> you think at this point it's sort of clear -- a clear path, as clear as it can be, for the markets and a clear path for the dollar to resume its rally and the euro to weaken even though we're seeing that stutter in today's currency market. >> in terms of the currency market this is all noise. yesterday was not an economic event at all. yesterday was a purely market phenomenon. yes, i think the dollar ends up

going higher as our interest rates go higher. you're going it see more demand for dollars, fewer dollars on the market out there, dollar is going to go much higher. >> weakness in energy stock, strength in the airline stocks, strength in the banks. where do you put your money right now? >> i'm short the banks because i think the yield curve is going to flatten a lot more than it has been. you know, crude oil goes much lower as well. to me the trades are you buy tlt -- >> the bond etf. >> the bond etf. you can buy the u.s. dollar, the etf is uup, a good way to play that. i am short the banks. those are probably the easiest trades right now. >> have we just reduced the volatility surrounding the fed meeting because we saw it yesterday and today? >> probably so. probably so we have. i can't imagine that the fed is going to do anything that mario draghi did yesterday, right? that clip that steve liesman just played, that was clearly -- it's obvious that mario draghi is trying to use the communication channel to walk back a little bit about what

happened and just because people got over their skis. >> if the euro had kept appreciating that effectively would have offset loose monetary policy. >> right. that's exactly the problem. now, the other thing is, and this is going on further, is that as the euro weakens we will get that stronger dollar so european qe is not the same as u.s. qe. it actually has a drag on our economy due to the stronger dollar. >> so that will hurt us. >> it will hurt us eventually. that's why i'm still short the banks. that's why i say you buy tlt, the bond market, because i think the economy will continue to roll over. >> european stocks, that continues as a trade. >> i think it can. you want to be hedged. dxge is a hedged german. you're short the euro, long european stocks. i think there's another one hedj, again, buying -- >> you want to be hedged on the currency side. >> you have to be hedged on the currency. that's really the play. but for equity investors you can do it via hedged etfs. >> brian, thank you. over to you. >> thank you very much. let's look at oil and how it has been performing today.

news earlier today that opec has decided to keep output levels basically unchanged, and right now as you see, there is west texas crude right at the $40 mark basically, $40 and a nickel. down about 2.5%. yesterday, of course, oil was a little bit higher, partly dollar related there, but today selling off in the wake of that news regarding the opec decision. melissa? >> let's bring in michael cohen, the head of energy commodities research at barclay's. great to have you with us. >> thank you. >> we got exactly what the markets expected and yet we're seeing this reaction. how do you explain this? >> so there's been a lot of misinformation this week. first off earlier in the week we heard some sort of prospective hopes that saudi arabia would be willing to cut and then also this morning we heard that opec as an organization would raise its quae ota.

both of those ended up being false and what they ended up doing was rolling over their quota and not even acknowledge the quota as they did in prior meetings where they acknowledged members should adhere or maintain the quota. it is essentially a nominal target, so basically the meeting was a nonevent and that's what we expected earlier in the week. >> the saudi oil minister had said that they are hoping that global demand, an increase in global demand next year could offset the supply that will come from iran. do you think that could happen? >> it's possible. i think basically what's happened over the last year is that opec as an organization passed its first grade, so they were able to stimulate non -- they were able to stimulate demand and demand is going to rise by 1.8 million barrels a day. they were able to see non-opec supply basically rollover, but next year with iran coming back, with the pocket that libya comes back, and the pocket that macro issues will result in a demand

slowdown that we could see demand growth only about 1.2 million barrels a day, the challenges are much bigger next year. >> demand growth could be 1.2. iran pumps 1 million, right? >> right. so essentially what you have to see is non-opec supply continue to decline. that's what we expect next year. >> okay. michael, go the to leave it there. thank you. tyler? >> we're awaiting a press conference in san bernardino, california. we have been waiting for it. it was scheduled to take off about 2:00 p.m., but as is often the case, the press conference a little bit delayed. meantime, the rally continues apace. you want to see a graphic picture of it? there it is. that suggests that a little less than nine out of ten of the 500 stocks in the s&p 500 are higher today, and a mining company is the top of all of them. more on this friday rally when "power lunch" returns. best day since late october. romantic moments can happen spontaneously, so why pause to take a pill?

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we make the most contact with the customers on a daily basis. i work hand-in-hand with crews to make sure our gas pipes are safe. my wife and i are both from san jose. my kids and their friends live in this community. every time i go to a customer's house, their children could be friends with my children so it's important to me. one of the most rewarding parts of this job is after you help a customer, seeing a smile on their face. together, we're building a better california. we're waiting for the press conference out in san bernardino on this day of more developments in the case of the murderous terror shootings at that social services center in san bernardino. we now expect that press conference to take place in about five minutes' time and we will go there when it begins. melissa? >> let's get another check on stocks. the dow is up more than 300 points at this hour. the s&p 500 is up by 1.8%, and the nasdaq a winner as well up

1.9%. let's bring in tom porcelli. fed funds future, chance of a hike in the december. what do you say? >> my own humble view is it's near 100% at this point. i think it would take something borderline a calamity for the fed not to go. make no mistake, i don't think today's report was necessarily the linchpin to this view. i think that the hurdle was much lower than people appreciated. even if you printed something with a one handle, a 150 or so, i still think december was a done deal. >> part of that is because you say there's a whole list of reasons in 2016 why they would not be able to do it, so now -- december is their chance. >> exactly. so this is sort of a laundry list of things. i'll keep it tight, but if they don't go in december, the next set of meetings will be challenged by several factors. one is the fact that you always have slow q1. i think the fed would be hard

pressed to justify raising rates in that environment. in the second quarter you have to wait to see if q1 weakness was transitory. this should sound familiar because we literally lived through it. at best i would push it well out into 2016. but these are not issues with he have to worry about at this point. i think more sort of for today the conversation for today is pace and we still think it's going to be every other meeting starting in 2016. >> every other meeting even though you said there's fa whole laundry list of why they had to do the first one in december. >> those are first hike issues. basically by the end of next year you're easily at 150 basis points on fed funds and here is the other thing to keep in mind -- >> sorry to interrupt. let's go straight to san bernardino where the press conference is just beginning about the latest developments into the investigations of the mass shootings. >> good morning, everybody. are we ready to go? okay. jarrod burguan, chief of police, san bernardino police department. i'm going to talk real briefly about something that came up overnight. i understand there's some things

that went out on social media kind of bringing some concern to the area, people talking about online about cells and law enforcement not sharing information and a potential threat at a movie theater, something of that nature. i saw at least one of the tweets. i don't know how much you guys are aware of it but i want to address that right now. on monday night/tuesday morning before the incident, right around midnight, 1:00 in the morning, there was an incident at the regal cinema in downtown san bernardino at fourth and e street and what that case was is that a gentleman described as appearing to be middle eastern came up and spoke to the security guard around the time the theater was closing and he was asking the security guard some questions about the movies and sometimes and things like that, but the security guard kind of thought it was odd. that person ultimately left in a silver volvo four-door vehicle 2012-2013. we do not have a plate.

the security guard thought it was weird. shortly thereafter the security guard then noticed a red late '90s dodge durango driving around the area with another person that was possibly middle eastern in appearance that appeared to be taking some photographs in and around the theater. so the security guard took it upon himself, notified our police department. we've gone out that day or that night, we took a report, and we put that out in a bolo to every law enforcement area -- i'm sorry, every law enforcement agency in the county as simply some suspicious circumstances that were noted. so that is all we have on that, and then it went into the regular investigative channels and protocols where the local areas were notified and they are doing investigative follow-up, looking at video to determine if there's a real threat or if there are plates associated with those vehicles. at this point we have zero connection -- or zero evidence

or information that connects that event with what happened here at the inland regional center on wednesday morning. so i want to make that clear. but as a result of what happened on wednesday, the san bernardino police department has been basically in a tactical alert type situation, meaning we have every officer in the department working. we are on 12-hour shifts, so it's a 12 on, 12 off for all of our officers. we'll maintain that until we think it's appropriate to stand down. we don't have any credible information to indicate that there is a threat to this region right now. but i wanted to address that because of some things that came out to imply that we were hiding information. we are not hiding information from anybody, okay? and then lastly what i want to do right now is this is going to be an official transfer of this investigation in terms of information and how information is going to flow on this to the fbi. we certainly talked a lot about what that partnership is. i want to make it clear that our

agency, the sheriff's department, the fbi, and the other federal agencies that are involved in this investigation continue to walk shoulder to shoulder in this investigation to make sure that we are doing the best job that we can, but in terms of information regarding the investigation on this incident at the inland regional center, the home in redlands, the search warrants that have been done, the officer-involved shooting that occurred as a result of this, this is an fbi investigation. they will be the lead on everythi information regarding that. myself and sheriff mcmahon will be the lead talking about local safety issues and security. i will turn it over to dave bowdich. >> good morning, everyone. first off, i want to stress again to the families of the victims, to the friends of the victims, let's remember they are first in this scenario. we had victims who lost -- one gentleman lost six children, one gentleman lost a baby and he was

taking his first trip to disn disneyland next week. other people did not have a chance to have that. every one of those lives counted and we want to offer our sincere prayers to those families. secondly, i want to stress the partnership. you have seen this united front which is incredibly important for an investigation of this complexity. this is a very complex investigation. it is a very long-term investigation. my partners here from the san bernardino sheriff's department, county sheriff's department, the san bernardino police department, and the atf have been incredibly important in this investigation and we are lock step in how we are handling this matter. i do want to go forward today and tell you that as of today based on the information and the facts as we know them, we are now investigating these horrific acts as an act of terrorism. we have uncovered evidence that

has led us to learn of extensive planning. obviously we've uncovered evidence of explosives, multiple armaments. you know that. you know the ammunition that was out there, the high-powered weapons, the explosive devices. we are continuing to go down the path to assure -- ensure that we find all the evidence that pertains to this matter. we have also uncovered evidence that these subjects have -- they attempted to destroy their digital fingerprints. for example, we found two cell phones in a nearby trash can. those cell phones were actually crushed. we have retained those cell phones and we do continue to exploit the data from those cell phones. we do hope that the digital fingerprints that were left by these two individuals will take us towards their motivation. that evidence is incredibly

important. i want to ensure that everyone understands that just because the fbi has now taken the leadership based on the trajectory of this case, we're not just taking this on our own. we are going to continue down the same path we have been, which is a lock step operation with these partners. that is important. they are the protectors of this community. we have the mandate to investigate terrorism to its fullest extent. we are working hand in hand with our other federal, local, and state partners. we are also working hand in hand with our foreign counterparts to ensure that we find any connections that pertain to this matter. next i'd like to introduce to you that we have established a national task force line -- i'm sorry, a national hotline that i would like to invite the public to call if they have any information that pertains to this. i would ask the public to please be judicious and make sure that even though if it's small, send it to us. please do not send us things

that are obviously not pertinent to this matter because we have a lot of work to do in the faux tour but if you think what you have to offer pertains to this matters, please call us and give us this information. the number is 1-800-call fbi or 1-800-225-5324. once you reach that number, you can choose option 4, and that will take you to where you need to be in that call tree. i want to ensure the public your local, state, and federal law enforcement officials will continue to uncover every stone to ensure we find all the facts that pertain to these two individuals. i don't have all the answers now. i am going to take some questions. >> how are -- >> are there other suspects, sir? >> sorry. >> how are these two individuals linked to terrorists? >> we don't know all those answers yet. >> can you give us an example of some. it's widely been reported some of the links to terrorism.

i'm cbs news -- [ inaudible ]. communications with people overseas. what of that are you ready to confirm? >> what i'm ready to confirm is there are some telephonic connections between these two individuals, at least one of these individuals, and other subjects of our investigation. >> was there a link to isis? >> was there anything inside the room during the shooting that led you to believe this was terrorism? >> we don't have the answer to that, but so far the answer is no. [ inaudible question ] >> i'm sorry in. >> is there evidence they were being directed by isis or al qaeda or they were inspired by them. >> i don't have any answer to any direction. were they inspired? we don't yet know the direction. i'm aware of the posts that's out on facebook and i'm aware of it. we're looking into it. but we don't know all the answers to that question yet.

[ inaudible question ] >> i'm not going to confirm that at this point. >> what have you recovered that moves the dial for you that it's an act of terrorism? >> there's a number of pieces of evidence that has essentially pushed us off the cliff to say we are now investigating this as an act of terrorism. >> sir, other suspects -- >> i'm not going to get into that today. [ inaudible question ] . >> there are other suspects currently under arrest. it is possible that maybe some in the future. we don't know. >> can i ask you about the digital information you may have found -- >> sir? >> the computers at the home. can you talk about that? were they damaged and also potentially for any investigators, how important is potentially information you can find on a hard drive, on a cell phone in an investigation that now is focusing on terrorism? >> good question. question, some of the digital media was damaged as i discussed before, and, yes, that is -- i have said from day one, we are continuing to go down the path of what was the motivation for

this attack because that will tell us a lot. as important, if not more important, is are there others and are they based in the u.s.? are they outside the u.s.? we don't know the answers. >> with so many questions why was the media allowed in the apartment? >> because last night -- so we executed a search warrant on that apartment, and last night we turned that over back to the residents. once the residents have the apartment and we're not in it anymore, we don't control it. we did leave a list of items seized i know some people are asking why did we give that? we have to give that out by law. any time we execute a lawful swarnlt, with he have to leave for the residents a list that lists all the items seized during that search warrant. yes, ma'am? >> with all the ammunition they had on them, do you believe they were planning a second attack somewhere? >> i don't want to speculate. it's certainly a possibility that we are looking at. >> sir, do you believe -- where did they get their orders from? were they acting independently just with the idea that they

were doing this for isis? >> that goes back to the direction question i took earlier. we do not know that but we are looking carefully into that. do i believe travel was a big part of this? >> i don't know. he traveled overseas in 2013. >> any kind of money angle, where the money came from? >> remember, folks, we're in day three. we're in day three and i don't even -- we're barely two full days into this so we'll get there. we're not there yet. remember, all these resources you see back here, that's why we're utilizing all of those in partnership to try to find every piece of evidence that's out there from digital media, which should lead us hopefully to motivation to connections via phone, e-mails, anything like that, to human intelligence that may give us some -- that's where we're going but that takes time. that's not a three-day process. yes, ma'am. >> the cell phones that you found that they tried to dis -- >> i was told they were in a

nearby trash can. they were found by our investigators. >> was there any indication -- someone asked was there a secondary target. do you believe that this may have not been initially been a target? have you moved forward on your thought process about this? >> we don't know. and that's what we hope to build is a working theory and then ultimately some sort of a design of what we believe they were going to do, but, again, day three, we just don't know. >> december 7th is monday -- >> pardon me? >> does this seem to you -- are you moving to the idea that this is a case of self-radicalization. >> we don't know yet. it's certainly a pocket but ssit we don't know that. [ inaudible question ] >> we are still exploiting the data. i have not seen it yet. we are still exploiting that and it will take time but i truly believe that's going to be the potential golden nugget but we just don't know.

>> december 7th is monday. do we have any information that there may have been something planned for that particular day and for some reason it got moved up? >> december 7th you said? >> yes. >> yes, i don't know any reason it was on that day. remember, there was a christmas party that took place inside that room, so you had a lot of people. you had a lot of management. you had a lot of people and employees in that room at that point. [ inaudible question ] >> he was not under active surveillance. i am not aware and i do not believe there was any type of an investigation pending on him. >> did his name come up in connection with -- [ inaudible ] i'm thinking similar to the boston bombing and tsarnaev? >> i don't have any information

that indicates that. >> there was a man there who took the landlord away and said he did not have permission to let people enter the apartment. the apartment was reboarded up a short time ago. do you have any concerns about that being entered even though -- >> you're going to have to repeat that. >> do you have any concerns about the press entering the town home this morning even though you're saying you had completed your investigation there? >> once we turn that location back over to the occupants of that residence or once we board it up, anyone who goes in at that point, that has nothing to do with us. >> you said this is an act of terrorism. does this mean this is first time if you conclude it's isis, this is the first time isis has attacked america? >> i think you're taking a leap. we're not there. what i am confirming is we are currently investigating this case as an act of terrorism. [ inaudible question ] >> i'm sorry? >> were they in telephonic communication with people in the u.s. or elsewhere? >> we know they were in

telephonic conversations with people in the u.s. i am not aware of all the overseas connections yet. we're working with our foreign partners on that. >> i can only hear one at a time. >> the family and the lawyers question the veracity of the terrorist connection. is there anything there? what do you have to say to that? >> questioning the veracity of their locations. good question. yesterday i said to you the fbi is an organization that is apolitical. we're a fact-finding organization and we deal in facts. i don't have all those facts yet, so i don't know the answer to the question you just asked me. >> isis has claimed responsibility. do you have anything on this? >> not unusual that they would -- >> that's their official website where they post all their videos. they've claimed pocket. >> i'm not surprised if they would claim. maybe they did, maybe they didn't. it only helps them to be able to

attach themselves to an act like this. i don't know the answer. >> is the someone detained that gave them the rifles? >> there is a person -- we don't know -- okay. let me go back on that one. there's some differentiations there. there is a person that we know of their location who purchased those weapons, but i'm going to let atf answer the questions on the guns because that's what they're here to do. >> are they in custody. >> the person is not under arrest at this point. >> so they are under custody being questioned. >> they're not under arrest at this point. >> why do you think they stopped shooting inside that room? >> i don't know the answer. >> did they pledge allegiance to either isis or baghdadi or any other principal connected with a known terror organization. i >> i'm aware of the facebook post you're mentioning. i saw the same thing you did. we are continuing to look into

that. >> mark zuckerberg confirms that post was made and had been made just as the attack was starting. >> i know it was in a general time line where that post was made and, yes, there was a pledge of allegiance. >> do you worry about the dynamic of marriage? there's a lot of curiosity there and some people are saying perhaps the wife may have influenced him. can you give us any more insight? >> i have been asked that, and i don't know the answer, whether she influenced him or not. being a husband myself, we're all influenced to an extent but i don't know the answer. >> what you learned about her, does that influence your belief more so this was an act of terrorism as you learn more about her? >> we're investigating it as an act of terrorism for good reason. pardon me? >> had the fbi known of her -- aware of her before? has she been under investigation prior to this before? >> we did not have her under investigation previously.

i'm going to take three more questions and then i'm going to end it. >> the telephones were found near the center or near the townhouse? >> i believe they were found near the townhouse. >> were you concerned they were flying under the radar? >> pardon me. >> are you concerned they were flying under the radar, that you didn't know that they were -- that they were active? >> well, of course i'm concerned. any one of us would love to have stopped this act. when you go into a crime scene like that, it's one of the most heinous things you will ever see. it's horrific. >> no awareness that you were tracking them, that they weren't on your radar? >> of course i'm concerned. we didn't know. there's nothing we've seen yet that would have triggered us to know. >> the government -- >> yes, ma'am. >> -- the existence of a cell? >> pardon me? >> do you believe in the existence of a cell of which they would be a member? >> we don't know. what i can tell you is we are not aware of any further threats in the u.s. at this time and i want to go back to your point, ma'am. you said government spends a lot

of money on surveillance. we are also, the fbi is also a federal law enforcement agency that is bound by federal law, so we don't do wide sweeps massive surveillance without legal process. last question. >> will you please speak to this community who is now listening to this transition that this is, indeed, an act of terror. what in practical terms does that mean for them? >> so what i would say, first of all, i think this community, i'm going to leave that to the chief and the sheriff to deal with and talk about, they are the true protectors of this community. i would say to this community you have been incredibly resilient. we are with you. we stand by you. we are focused, the fbi's number one mandate is to protect the homeland from attack, and we will absolutely engage whenever we see potential threats. as the director said many times, we have a number of terrorism investigations across the country currently that are going on. that does include extensive surveillance.

so what i would tell the community, to answer your question completely, is i would tell them continue to do what you do. if you see things that are concerning, push them up to local law enforcement immediately. if they rise to a certain level or if you want to push it to both the fbi and local law enforcement, feel free to do that. these are your protectors. do as you do normally. go about your day. do not let this cause mass hysteria. we're not there. we're not there at all. we have a long-term, very complex investigation that we have to complete, and that's going to take time and a lot of energy and a lot of hours and a lot of agency expertise, but i assure the american public we will do everything in our power within the law to get that done. thank you for your time. >> they didn't leave any notes? >> i would like to introduce sheriff john mcmahon. >> thank you, dave. very good question, and that's why we're here today. the primary -- my primary

responsibility and the primary responsibility of the law enforcement leaders you see behind me is to ensure the safety of the public that we serve. you have already heard there is apparently evidence to suggest that there's a terrorist connection to this event. we have no known credible threats to the communities that we serve. i would ask that the community remain vigilant. don't hesitate to report any suspicious activity to the local law enforcement. we have added additional resources as had my partners from law enforcement that stand behind me to ensure that we have the staff necessary to investigate and to protect the communities that we serve. we have nothing to suggest there's anything additional associated with this event, but we remain partnered up with the law enforcement from the fbi, atf, homeland security, and then

if any threats come about that appear to be credible or not, we will fully investigate those to help ensure that the public that we serve is absolutely safe. i will echo what dave bowdich suggested, that this is a team effort. we all have to work together as a team to address situations of this magnitude. we remain committed to working with the fbi, our local partners, as well as our federal partners to ensure that the resources that are needed are applied to make sure we investigate everything possible and keep the citizens that we serve safe. thank you. >> sheriff, sheriff, isn't it a concern though that there was no credible threat and then this occurred and so now we're back to an environment where there's no known credible threat and could san bernardino or any other town in the country be facing the same kind of thing happening an hour from now? >> certainly that's the possibility, but crimes across

our county and across our state oftentimes occur without any notice. you saw how the men and women of this law enforcement agency as well as the partners that we work with in our region performed two days ago. considering how they performed and addressed the issue, i truly believe that we are prepared to deal with whatever threat or incident occurs. law enforcement is staffed up, as i suggested. our local law enforcement leaders remain in constant contact with one another, and as i suggested, my top priority as well as those that stand behind me is the safety of the public that we serve. thank you. all rig >> all right. there is a press conference, an extended 20-minute session involving jarrod burguan who is the police chief of san bernardino, dave bowdich, and

sheriff john mcmahon. the most notable reveal is that the fbi has now taken over this investigation and is pursuing it as an investigation into an act of terrorism. one of the other notable findings which jane wells will fill us in on here in just a second is that the murderers involved here did some extensive attempts at destroying their digital fingerprints. so let me bring in jane wells who is on the scene. jane, tell us what you have just heard. >> reporter: well, tyler, you flo know, for the last 14 years we've been able to say with relief we haven't had another terror incident since 9/11 of this sort. well, now apparently according to the fbi, that is exactly what it appears we have had here. the assistant director for the l.a. office, dave bowdich saying we are now investigating these horrific acts as an act of terrorism. what they are saying is that they have uncovered some digital

evidence, some of it was the two murderers tried to destroy including two cell phones in a trash can which were crushed. they were able to retain and exploit some of the data on there. going on to say they're working with their foreign counterparts on this. that at least one of the two killers was in telephonic communication with known entities. however, what they cannot say is if these two killers were directed by isis or al qaeda or if they were inspired by one of those groups. the fbi is very much aware of the facebook page posted by the female in this case, tashfeen malik expressing her allegiance to the head of isis shortly before the killings and the shootings took place but they are not sure if that means isis was involved or if isis even knew they existed. the fbi didn't know they existed it appears.

reuters is reporting that police have not found any -- or investigators have not found any evidence directly relating them to these organizations overseas but again the fbi is not yet saying if they were directed or inspired. what everyone here is saying is there are no known current threats, no other suspects under arrest, though that could change in the future. there is some question about this other person who bought two of the guns. the fbi saying repeatedly that the guns that were bought legally, by the way, that the person is not under arrest. refused to answer questions over whether that person is in custody and being questioned. but, again, no further threats known right now. no direct connection established yet that they were directed by isis or al qaeda or merely inspired, but they are calling this now a terrorist act. tyler? >> that is quite an escalation, not that it comes as a terrific surprise in light of what we've learned over the last 36 hours

or so. i thought a point you just hit on, jane, was a very interesting one, and that is that assistant director bowdich referred to the atf, the firearms investigating unit of the federal government, the question of who bought those two assault rifles and that they clearly know who that individual is, where that individual lives, but as you say that person is -- it's unclear whether that person is in custody or whether they've been in touch with that individual. >> reporter: yes. he did not seem -- he pointedly did not seem to want to answer those questions, and the other thing he may not know yet is whether this was the intended target or if maybe there was some other plan. they're still trying to piece together information about the exact motive and the computers and thumb drives and cell phones they've been able to recover, but they have enough evidence obviously to indicate this was a

terrorist attack. under the definition of terrorism, this is a terrorist attack and you have to think this has to be the largest such attack, the first such attack of this nature on u.s. soil since september 11th, 2001. and for over a decade we have wondered when and if, and it has happened apparently if the fbi is correct here in san bernardino. what was also interesting is the police chief said there was another incident monday night, early tuesday morning before this happened near a movie theater where a man who appeared to be of middle eastern descent talked to a security guard asking questions about when the movie times are and another person in another car also of middle eastern decent appeared to be taking pictures. they called police, they looked into it, they ought it was odd, made investigation. after this happened, they have been they are orough lie trying check it out and at this point

can find no connection. >> given the developments it was probably with shock that the nation got a chance to take a look at live pictures in the apartment of the suspects. the fbi actually addressed this as well because it was sort of amazing for cameras to be able to just go in and poke through their things. >> well, it may be the first time you have seen that sort of thing on live television but having been a local crime reporter for many years, it is certainly not uncommon that when the police clear a scene, it's no longer their issue. it is the landlord, the homeowner's issue, and that is when the homeowner can call the police if they say people are trespassing. it was my understanding the landlord was there present while people were going through the apartment, and obviously could you see like a computer monitor but the hard drive was gone. there was a printer but there were no laptops around. and everything was a little bit askew which is often the case after investigators have

thoroughly combed a place and gotten the information they want. >> they took pains to point out they leave a list of things as law requires, leave a list of the things they did confiscatco. i don't mean to split hairs, jane, but obviously the boston bombings were the work of radical terrorists and the ft. hood shooting was also the work of an alienated -- >> a mentally ill -- >> -- individual. >> yes -- >> but this is search it seems to me the first time we have had in a long, long time a clearly direct connection to a nexus back to either isis or isil or al qaeda in the committing of a terror act. >> yes. and with 14 dead. >> right. and with 14 dead. all right, jane. thank you very much for your reporting. i know there will be more developments throughout the afternoon from san bernardino and maybe elsewhere, but, again,

the keynote here as you reported, jane, is the fbi is now investigating these acts as an act of terrorism. melissa? >> all right. tyler, we are taking a look at a big rally here on our hands and it does look like we are at or close to session highs with the dow jones industrial average higher by 363 points on this friday. that's good for a gain of 2.1%. the nasdaq is higher by 2%. apple as well as microsoft some of the big gainers in today's session. take a look at the nasdaq winners. wow. skyworks solution up 5.7%. dollar tree, mattel, mondelez along the leaders. "power lunch" will be right back.

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oil had a very big move off the move from opec, essentially no move, no production ceiling. we see wti down by 2.4%. tonight on fast we will check in with helima kroft. we will see what she says about the future of oil prices. >> we do have a big rally on the equity side of things. >> certainly do. all of the dow 30 are in positive territory right now, microsoft the biggest percentage gainer up about 3.5%. the dow and nasdaq in positive territory, melissa, for the week. the s&p just a smidge below it. this stacking up to be one of the best days for the dow since the early fall. >> and it's interesting to see,

tyler, the sectors reacting to the lower price in oil today. we do have energy stocks, they are probably among the worst performing, but they are just off by a quarter of a percent as measured by the etf. airline stocks seeing a big pop today. a lot of big losers in yesterday's sessions recouping some of those losses in today's session. biotech was a big drag on healthcare and today that is higher, much higher, in fact, i am just going to pull up the screen for the ibb, up by 2.6% at this hour. >> most of this tracing back to mario draghi's speech and remarks earlier today where he seemed to walk back a little bit from the sort of disappointing stance yesterday. that will do it for the hour, "closing bell" comes up after this. at ally bank no branches equals great rates. it's a fact. kind of like playing the boss equals the boss wins.

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liberty mutual insurance. hi, everybody, welcome to the "closing bell" on this friday i'm kelly evans. >> and i'm simon hobbs in for bill griffeth. a big rally in stocks today. erasing yesterday's losses. a solid jobs report cementing expectations that the fed will hike interest rates in two weeks and arguably the economy can take it. we will debate whether the market can add to these gains into year-end. >> former labor secretary robert