local revenue and centralized revenue is very strong. we have the cba coming up in year. we have to keep going. >> we have to go to san bernardino with a live newscast. >> -- from san bernardino pd. san bernardino city and sheriff john mcmahon from the sheriff's department san bernardino as well as assistant special agent in charge john deangelo from the atf. today we're going to go through a number of things and we are going to answer some of your questions, we are going to open it up for a few questions, but first off i want to talk about the work that the atf has done, the joint terrorism task force and our local and federal partners throughout the weekend. our job is to continue the investigation at breakneck speed as long as we need to do that and we will do exactly that. i want to correct something because it continues to come up. there was a search warrant that

was executed at the center street address in redlands this past weekend. in that search warrant i want to make it clear because we are getting a lot of calls about misbehavior. when the fbi or any other organization executes a search warrant we obtain legal process that is signed by a federal or a state judge. we then make entry into those premises and we will take the items that can be seized under the scope of that warrant. that is exactly what was done that day. when we leave the residence, we will either hand the keys to the owners, we will hand -- or we will secure the residence if it was breached as was exactly what the case in this incident. we secured it with screws and wood and left the premises. once the fbi and our local partners left those premises,

anything that occurred as far as forced entry or if anyone who was allowed into that residence has absolutely nothing to do with us, whether they were allowed in by the residents or by the landlord so i want to make that clear. that's an important thing for the public to maintain confidence in your law enforcement professionals. secondly i want to clarify, we briefed you a couple days ago about the pipe bomb components that were taken and some of the pipes and some of the components of pipe bombs that were removed from the house on center street. if you recall we gave you a number of 12. i don't want to get too technical because i am not an expert on bombs, however, we do have experts that did that search, they did some removal of all of those devices from that house and ultimately it appears there are 19 pipes in that house that we have removed. somewhere in a bag, we are not going to unpack them one by one and they had to remove all these components and these devices and

take them out to a range and then they began to safely extract them from the bag and safely ut pull them apart and count all the components, photograph all the components and ultimately submit them into our evidence. so the number has changed from 12 to 19. now, that is not 19 pipe bombs, let me be clear, that is 19 pipes that could be turned into pipe bombs if all the components are there and present for them to actually be construed that way. next i want to talk about the radicalization issue. many of us questions about did the female radicalize the male in this case. the answer is we still do not know, but i will say this as the investigation has progressed we have learned and believe that both subjects were radicalized and have been for quite some time. now, how did that happen? the question we're trying to get at is how did that happen and by whom and where did that happen?

and i will tell you right now we don't know those answers at this point. next thing i want to -- along those lines is foreign contacts. we are working with our foreign counterparts to determine as much as we can, it's like any other investigation, but this one is incredibly large. we are attempting to expand that investigation out and build it and build a picture of each person, the timeline and ultimately the crimes that they committed. that takes time. we are in day five and i want everyone to recognize that, but we're working with our foreign counterparts, we're alsos working with the fbi's legal attache offices which are all over the world and they are assisting in those efforts with our foreign counterparts. the next thing i want to mention has come up already. yes, we do have evidence that both of these subjects participated in target practice in some ranges within the metro area or within the los angeles

area. that target practice in one occasion was done within days of this event. the scope of this investigation i want to discuss very quickly. this investigation is massive in scale. everyone knows that. we have conducted between -- i would say well over 400 interviews by now of people around this city. and i know some of them have called you and said they have been investigated -- or interviewed, rather. that's fine. that's what we do and we will continue to do as many interviews as necessary for this. finally there has been some questions about the total -- total station, the recreation of the crime scene. what we are essentially doing is applying survey technology to the crime scene and when i saw -- when i'm talking about the crime scene i'm talking about the initial crime scene at the irc where all the victims were. i'm not talking about the officer-involved shooting.

yes, we are still holding that location because we are continuing to be extremely methodical and we have actually brought in a reconstruction team to apply those tools, those survey tools to ultimately paint that picture of why -- of how everything transpired that day. we have transported over -- we have collected over 320 pieces of evidence in this investigation so far and we have transported a number of those pieces of evidence to washington, d.c., primarily to our fbi laboratory, to our bomb lab back there, the terrorist explosive device analytical center. the last thing i want to talk to you about very quickly before i open it up for questions and then i'm going to introduce some of my counterparts up here to address you as well. we have found evidence of planning, participation, financing. what i will tell you -- i'm sorry. we have found evidence of preplanning. let me correct that. what i want to say is i want to make sure the public rest

assures, again, we have an apolitical organization and we will get to the bottom of this and we want to find out everyone who participated in the preplanning, if there was anyone else, we don't know everything yet, we want to find out everyone who profited from it, financed -- financed it, and i'm not saying there is anything like that, but we will leave no stone unturned. just like i've said in the past. the last thing is we have to remember this is a human tragedy. this is truly a tragedy what occurred. we have brought out office of victims assistance personnel from washington and this is what they do, they are very familiar with this. we are going to at some point hopefully this week meet with the family members of the victims, both the decedents victims and the injured victims and that is a crucial part for us to allow them to ask questions and so that we can address them face-to-face and

talk to them about our full commitment. if they don't want to meet with us, that's their choice and we understand. if they do want to meet we're there for them. very, very important. i'm going to take a few questions, not as many as the other day. >> do you have any sense at this point who was in control during the attack? did tashfeen malik fire the first shots? >> we do not have any sense who was in control. i will tell you i want to be crystal clear here. we do not see any evidence so far of an okonas plot outside the continental united states plot. we may find it some day, we may not, we don't know. right now we are looking at these two individuals and we are go i think to focus to build it out from there. >> are you done questioning the grandmother at this point of the baby? >> i'm not sure we are done questioning. >> you may question her again? >> yes, ma'am. >> has anything in your investigation uncovered evidence of that [ inaudible question ] >> i've heard those same reports, i am aware of that and we are continuing to work with

our overseas workers and legal attache office to determine that. >>. [ inaudible question ] >> i'm not going to get into that at this point. yes, sir. >> syed farook was reported to the fbi several years ago by somebody who was suspicious about him and his behavior. can you confirm anything about that. >> >> i'm unaware of this. i can tell you we did not have an open investigation into mr. farook at the time of this incident. >> last night president barack obama said there was no evidence that they were part of a broader conspiracy here at home. begin all the evidence that you are gathering and finding isn't the president incorrect? >> no, i wouldn't say he is incorrect. we are still in the investigative phase, we are in day five. >> you reported that they had been radicalized for some time. you mentioned that they have been radicalized for some time both of them. do you have any indication are we talking years, months? >> no, we don't know that. we don't know that. we have some indications of timeline, but we don't have

enough for me to speak on it at this point. we were they both were. that's the question for us is how and by whom and where were they radicalized. maybe there is not a by whom. oftentimes it's on the internet. we just don't know i don't want to speculate. >> do you know anything about the guns. there was a raid in riverside this weekend. what can you tell us about the origin of the guns? >> i'm going to allow -- ask the atf to address that question. all things guns ask your questions to the atf agent in a minute. >> there have been reports that farook had interaction on social media with a man from minneapolis who you all had been tracking who goes by mohammed hassan, can you confirm that? >> i have heard those reports, i'm not going to confirm that at this point. >> what's the status of enrique mar kez? has he been arrested or charged? >> i'm not prepared to discuss mr. marques at this point.

[ inaudible question ] >> i don't know the answer to that. [ inaudible question ] >> we have not found any evidence of suicide vests yet. >> any idea how long, weeks, longs, years the pre manage was on this? >> we don't know. we're still building that out. >> yes, ma'am. >> -- video was there in the irc and does the video show any of the [ inaudible ]. >> we're still going through what type of video is available. back to the data exploitation, you bring me to that. there is continued data exploitation that is going on as we speak and that will continue for some time. that is a painstaking process. that as i've said in the past we hope to get towards their intent with some of the data exploitation of the digital media. at this point -- at this point i'm going to introduce atf assistant special agent in charge john deangelo.

john. >> i'm going to talk briefly about the guns. it's been widely reported in the media that there were five guns involved in this investigation, recovered throughout this investigation. what we have -- we have traced those guns and what the trace results reveal is that all these firearms were originally purchased from ffls in california, from a time period between 200.and 2012. ffl is a term that we short your honor an abbreviation for federal firearms licensee, commonly a retailer who sells firearms. farook himself purchased a lama and springfield armory 9 millimeter pistols that were recovered at the scene as well as the savage 22 caliber rifle that was recovered during the search warrant. we have the federal documentation and california documentation to establish that he actually purchased the firearm. his name and identifying information appears on all that paperwork.

enrique marques purchased the two assault rifles that were shown on the media, the dpms and myth and wes some rifles. we have the paperwork documenting those purchases as well. right now our rach major concern is determining how those firearms, the rifles in particular, got from marques to farook and malik. the firearms at present are at the fbi laboratory where the fbi is performing forensic examination on them. after that forensic examination is done we will do a complete and thorough examination and determination of just exactly what these firearms are. right now i will turn it over to chief burguan who is address other issues in the matter that are pending. >> good afternoon, everybody. i'm going to talk a little bit about local response and what's going on in the city of san bernardino as well as the region. everybody saw what happened in the city of riverside yesterday,

what was believed to be an active shooter incident, it brought about a massive police response. i think that's indicative of the fact that people are on edge and people are a little extra cautious, which is good, that's what we're asking people to do. the massive response really came as a result of local law enforcement has really stepped up their patrols and stepped up their presence in the region. the city of san bernardino we have been on a 12 on 12 off tactical alert status since the incident happened on wednesday. we are getting to the point where we are going to start letting some of our guys have some days off and be home with their family but rest assured we will have increased staffing, a number of additional folks working overtime to provide safety and security to the region. i think i speak for sheriff mcmann as well when i say we have stepped up our efforts. we will be there for people. you will see an increased police presence in our city and in the immediate region through the christmas holiday season. future press conferences will be announced by the fbi. we will see you in a bit.

>> all right. that wraps up this latest news conference, developments out of san bernardino. the headline being that they've determined that the shooters did some target practice in the past several days prior to the shooting last week in san bernardino. >> i think he had even mentioned if we are to believe the reports about his dating profile the way in which he met this woman, his wife, that he talked about target practice, bill. the way in which that fits into this investigation, let's ask our jane wells who is in san bernardino and she joins us now. hi, jane. >> just to have summarize for those of you who didn't see everything, they've interviewed over 400 witnesses, they've collected 300 pieces of evidence, a number of which have been sent to d.c. still don't know who radicalized whom. both subjects were radicalized, quote, for quite some time, that begs the question if that happened before malik even came to the u.s. they don't know how or by whom.

there were 19 pipes, we had earlier heard there were 12 pipe bomb type devices. 19 pipes, not necessarily 19 pipe bombs but 19 pipes found in the house. both subjects had gone to local target practice including within days of the event. one reason they are not reopening -- county government has reopened today, they are keeping the inland regional center closed still because they are doing this massive reconstruction with the fbi where they are using surveying techniques to try to recreate what happened. we have no idea. what's happening with surveillance video in the facility, we do know that outside the building there were cameras at least at the intersection there so one would think that those were working there would be some video that they could use involving this. they say there's evidence of preplanning, they don't know if anything else is involved. evidence of financing perhaps they don't know if anyone else is involved. no evidence yet of some sort of bigger international plot, no evidence of suicide vests. still going through the video.

as for the atf, atf's john deangelo, five guns now, that was news to me. i knew there were two 9 millimeter pistols and two assault rifles but now apparently farook had bought a savage 22 caliber rifle, marques bought the two assault rifles. we also don't know exactly his status right now. he is being we are told through nbc news detained by the fbi for questioning, that he is not a suspect but they, quote, want to learn more from him and we didn't get any more information on that here. >> jane wells in san bernardino. by the way, we welcome you now officially to "closing bell" for this monday, i'm bill griffeth along with kelly evans. >> let's get more reaction from fbi assistant director chris sweker. what jumped out to you about what you just heard from san bernardino from that press conference. >> he gave a mess measured, deliberate press conference. what he avoided talking about

was anything involving someone who was going to be arrested or might be arrested, they're giving you things that they know, you know, are pretty much out there in the public sphere right now, in the public domain about what happened at the scene, how many pipes were found, what was found in evidence, but what we're not hearing about is any evidence of facilitation, i will use that as a broad term, facilitation and financing and those are the key things here to look for because i see a potential straw purchaser on the firearm, i think there is a big focus there that they are not talking about much, whether he lied on the firearms application, whether the grandmother may have been complicity, aided and abetted an or new anything about it and any international ties or ties up in minneapolis that they mentioned. >> we talked last week with you about the possibility that we are looking at lone wolves who were not affiliated, were not directed by isis to do anything like this, that they did this on their own and that this may be the mo in the future. so what's the fbi looking for

right now? i mean, they're looking for possible signs that they might have missed or things that they can think about in the future? is that what's going on here, do you think? >> well, all of the above. i mean, they always want to learn what isis is doing currently or all the terrorist organizations are doing currently in terms of recruitment, in terms of facilitation especially and in this case they're very interested in this bride connection, i think, as to whether that was a deliberate strategy on the part of isis to actually send potential brides to this website to recruit americans born in the u.s. but looking for a bride as is the custom in some cultures. looking at all angles and i can tell you one intense angle is the financing aspect of this. >> yes. and he alluded to that, but then caught himself and decided not to talk about it, but i'm sure we will be hearing about that in the near future. thank you. appreciate it very much. we're keepingen a eye on markets here which are having a

difficult session especially in the energy space. with 40 minutes left to go we will have much, much more on this coming up. dow is down 157 points, s&p giving up 20, nearly 1%, nasdaq down more than 1% and there is crude at its lowest settlement level since 2009. >> big, big day there. also green mountain posting its biggest gain on record after a green to be taken private by an investor group led by jab holdings. we will come back with mike santoli. he has a special report on who jab is and why it's buying the k cup maker. also ahead consumer reports will be here explaining why t-mobile grabbed the top ranking of your telecom providers. stay tuned.

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welcome back to "closing bell." crude oil and natural gas both sinking big time today, jackie deangelis has had her hands full keeping track of all of this. >> it was a tough session for crude oil finishing at $37.65 down 6% on the bay. 37.75 was the point to watch and then the selling pressure continued. pricing come down after opec

decided it was not going to can you tell production on friday. but the same story still stands, people digesting it within the marketplace. we are awash in oil right now globally. if you think about the fact that opec is producing over its quota, here in the united states rigs keep coming off line but production went up last week, the secretary of energy telling cnbc europe that he expects production to go up. retail gas prices they are down $2.03. we're watching them tick towards that $2 level. $20 oil that's the talk of the town again, goldman had forecasted this, it wasn't the base case but traders on the floor are saying it could be possible at this point. you also mentioned that the gas, this is another kns side story if i know thing at $2.04 another near 6% sell off, this is because of the el nino effect. predictions for temperatures are far warmer than they should be at this time of the year for the

next few weeks. so this isn't necessarily about the price that you're paying for that the gas because some of those contracts are prenegotiated, but if you're not turning the thermostat on you are not using as much heat certainly you will see your heating bills are lower, guys. >> i have a theory if winter starts late it's going to last longer. >> please don't say that. >> we will be having snow he in april, you watch. you mark that down there. we are glad for the lower prices as far as consumers go. joining our "closing bell" exchange today mark mat sent, steve grasso and we've got rick santelli in chicago. steve, you you and i have been a long running joke it's always about oil it is -- or is it. we had the huge rally on friday after the jobs report and then this pull back. this just a consider ex-from friday? >> energy has been so beaten down and everyone looks at the underlying commodity for direction nalt for the

underlying trade subsector. i don't know how much oil has to do with it anymore. let me preface that. it has a lot to do with it, but if you look at the charts it's not as correlated as it used to be in the underlying energy stocks. plenty of people have been talking today about capitulation. i don't know if you can call capitulation the selloff we've seen, we broke major support levels, jackie smoke to that in wti, i think further lower to go. >> this is exactly the problem. we would love to get your upon on some of this, mark, as to where you invest or if you just stay away from the entire sector. if you look at a williams down 16%, kmi, you know, console down 15 rs, alpha natural down 8.4%, southwestern down 8.4%, oasis down 14%, chesapeake down 8%. i mean, we are talking about -- i don't know if this is capitulation yet, but this is a horrendous day for the entire premise of the energy space.

maybe what the refiners accepted. do you start hunting around in here or is the fact this is happening on a day when the key commodity and natural gas are moving down another 5% are telling you this could get really ugly still from here? >> this is an important message for investors and that's think long-term. it's kind of like eating this time of year, everybody wants to look good in their swim seat in august and everybody wants to eat pies and candies in december. you need to stay focused on the next 10ed on 20 years. when these oil companies are down buy depressed stocks has a long-term premium. buy equities now and, yes, gas is part of that and you have to think 10 and 20 years. even millennials have become scared of equities and they have 30 or 40 years to invest. focus the long-term and, yes, own some oil and gas, absolutely. >> rick, what does this do to inflation expectations? we all know the fed, we all expect the fed now to raise

rates next week when they meet, but if oil is destined to go to $20, you know, according to jackie, some of her sources there, does that change the equation and do you see any of the markets setting themselves up for that? >> well, what you've described is an old school version of trying to fight deflationary forces at all costs. i think that's what needs to change. having low oil prices is nothing that's going to be cured by monetary policy tools. as a matter of fact, if you are an investor, buyer beware. if you're anything outside of that on the receiving end of the low prices it's a good thing and it continues to go right after the notion i just don't think deflation is something that the fed should worry about and these falling prices are probably a long-term correction to prices that were too high for much too long. think of markets in a 10 or 15-year mean-type process. where is the average for oil

going to be over the next ten years? don't try to play the extremes because when these modities are too high priced it lasts a long time but the other side of the mountain is no different. falling prices are ways that markets clean themselves out. there's only two ways things get fixed, they climb to themselves and it's usually some form of overpacking so you always see prices whatever it is go down, but to think that that's a negative process to stop the only other way is to get the government or fed or treasury involved in trying to create a certain type of correction. i think we all learned the last seven years that doesn't work very well, either. >> we've got to go at this point, guys. thank you for your patience and being with us as well and your thoughts. see you later. we've got 30 minutes left heading into that crucial last half hour of trading on a down day. the dow down 148 points. >> no surprise, a lot of that has to do with exxon. exxon and chevron are down 3% for their part today, bp down 5.

up next the battle for the top telephone company takes an interest twist. the surprise winner found in their research. another big story today keurig green mountain shares piping hot after being acquired by investor group led by jab holdings but what is jab holdings and why are they making this deal? we will get to that coming up next. stay tuned.

we mentioned green mountain

is having its best day before. agreeing to be taken private by jab holdings. >> mike santoli joins us with this suppression report on who jab holding is and why it is spear heading this deal worth $13.9 billion. >> this is a private investment vehicle of a multi-billion dollar austrian family. what's relevant is they have been a consolidator of the global coffee market for four years now. they combined european brands with another bunch of grands owned once by sara lee and brought brands like peet's, cara buy, stump town. so keurig green mountain seems to fit in here mostly as a producer and packager of coffee for the retail market. >> i had no idea that the owner of caribou coffee and peet's coffee and tea is jab. >> they also have big money

backers byron trot, he had some rich families involved as well. >> 77% premium over friday's price. we know green mountain has had a tough year. couldn't they have gotten there this for a better price? >> i think this is a good smart money buyer. seven months ago this stock was over 100 bucks. >> but it wasn't now. >> it's not i'm sure a coincidence that this price basically means coca-cola breaks even on their investment in keurig green mountain. maybe no deal happens unless you get up to that point. the you might argue that the company if you can strip away a lot of the distractions will new models of z giz moss and gadgets and countertop machine that strictly as a packager of coffee for its own and third party brands maybe it has a platform for the other company to run its products. >> i wonder if this is the end of the cold. >> it would be easy to take a

big right down and say we are not going to make a big idea out of this cold machine for making your own soda. clearly their interest is mostly in coffee. >> exactly. >> fascinating story. >> thank you. see you again shortly. >> less than half an hour to go here. a tough session for equities today. we're focusing on the energy sector, a lot of the pain we're seeing across that space and with the modities down again, i think the ft commodity price index is at its lowest, oil, natural gas but all sorts of things, lowest level since 1999. that will continue to oil a lot of these investments. >> yeah, this is big. get this, t-mobile named number one among the big four carriers in the latest consumer reports survey, first time verizon has not been in the top spot nchts it's making that guy right there pretty happy. we have the editor behind the survey to explain what is going

on right after this.

dwroo welcome back. 20 minutes left. if you are just joining us down day on wall street following the huge rally of friday, energy leading the stock market, lower today, wti crude at a six-year

low in today's trade, down about 5%, same thing on natural gas, the dow down 152 points and the volatility index, the vix that we keep an eye on sort of the fear indicator has jumped by 12.9% today, but it is still well below that number, that magic number of 20 that usually signals some sort of yellow flag for the stock market. >> and some of our guests pointed out the vix itself has been volatile this year, it's at 12, then at 20 and then goes back down. >> mean time a new survey in consumer reports ranks t-mobile now the highest rated large cellphone carrier based on consumer satisfaction. >> but t-mobile and it's big three competitors are at the bottom of the ratings list despite having 99% of the market. joining us is mike beekus. >> thank you for having me. >> who is at the top of the list, these small guys. >> small carriers with names like consumer cellular, king,

republic wireless. they found like they are foreign countries, but that's where you will find the happiest customers. we looked at three key areas, one was service, customer care and the third one of course was value and that's what helped propel t-mobile ahead of verizon the perennial leader. >> i guess the message is that, you know, like people when they start kinking with a bank, that's it, they're done, and when we go with a mobile carrier we're done, we don't change, we don't shop around anymore and maybe we should and you're suggesting looking at these small guys, right? >> that's right. only a small 6% of our survey participants had the courage to change, but most of them at least almost half of them were very satisfied. they were pleased to save at least $20 or more a month on their bill, they got better service and better customer care to boot. >> let's talk about t-mobile for a second because it has been

such a high profile disrupter in this industry, signing up a bunch of people, luring them with big incentive packages and innovative offerings. what does this data tell you about how happy noise new customers are? >> they're very happy. t-mobile is doing something that appeals to -- the most expensive part of owning a smartphone is data. the days of unlimited data plans are long gone and it's like the most expensive thing that people do on their phones, streaming things from youtube and uploading big files, the cameras now take really big pictures, pictures that are large in size. >> yeah. >> and these all consume data. t-mobile basically has pretty good rates off the top but they're doing things like allowing their customer to stream from youtube and other sources, potentially heavy data lost areas to save money. they are not counting it against their plan. they are doing that right. plus they started all this with

this no contract. as you recall just a few years ago people were spending close to $100 per cellphone and locked into these contract plans with heavy early termination fees. t-mobile really knocked that out of the park by dropping that. >> you give them a 73 overall. then there's verizon 70, at&t, verizon and sprint -- >> a little more than 15 minutes to go the down 132 points, the s&p down 17 points today, the nasdaq giving up 46. >> we will go live to the nasdaq market site, get a survey of today's damage in technology. >> later billionaire investor jeff green explains why he thinks technology will wipe out white collar jobs and widen the gap between the rich and the poor. stay tuned.

welcome back to the "closing bell." we have some news concerning knew we will rubber made and jarreden. apparently those two firms are in talks to combine, the dow jones reports that knew we will rubber made has a market value of $12 billion jarred ens is $10.5 billion. both of those stocks are moving smartly on that news. newell rubber made and jarden on talks to combine. we will watch that stock performance as we go closer into the close. >> it must be a monday because these mergers continue with a pace. global deal making just topped $4 billion i think it's 4.7 --

>> we're close to 5. >> just another manic monday. >> let's send it to dominic chu for a market flash. >> which it were sunday. we're watching shares of netflix which are taking a hit in trading today, currently one of the worst performers in the s&p 500 being helped lower over concerns over its plans to sign content deals on a global basis and the efficiency of those deals and how they can be executed. the company was presenting at an industry conference hosted by ubs in new york. they also erchs ared not only the difference in how content is licensed but says they plan to double the number of shows they produce next year. they are up by over 155%, even with the losses today still a juggernaut in terms of stock price performance you can see there on a year to day basis. back over to you guys. >> all right, dom, thanks very much. the nasdaq composite falling for a third day in four along with the other major averages,

bertha coombs keeping an eye on that. >> today it's really a question of the small caps dragging things lower, in particular biotechs no real lift for biotechs and they are among the biggest drags here at the nasdaq. large cap techs you heard the story about netflix and xpi which is getting set to ring the closing bell after completing its free scale merger today. apple down for the fourth day and even though it's a record merger year there ares those regulatory hurdles and the ftc has come out in opposition of the office depot staples deal. the ftc staying they worry about it eliminating competition as far as large companies being able to get good pricing on their office supplies. back to you. >> bertha, thank you very much. >> that one has me scratching my head. they are not going to let office depot and staples?

what about amazon? >> too few operators in that industry. >> i need to read more about it. >> 12 minutes to go, the dow making a little bit of a come back, down 015. >> you would make a good ftc commission err. art cashin pointed out we have $250 million to buy. not a big number but we are already seeing a come back for the namer averages. up next td ameritrade's chief strategist tells us why annisters should by amazon and nike on these dips. that's coming up.

about ate minutes left with the dow down 113 off the lows of the session. joining us is jjkanahan from td ameritrade. you always give us a sense of what your customers have been doing. this time around you're telling us how they've been buying financial -- no, they've been selling financials and buying dividend payers here, just the opposite if we're expecting a

rate increase from the fed. >> it's interesting. as you're saying theory tells you we're going to raise rates buy financials, but what i think it is, bill, if you look at the fed funds pricing at a 79% probability right now i think it may already be baked in and our clients are saying, okay, we want to take some profits on the bank america, city groups of the world, they're still holding some, but let's look for other opportunities and they found other opportunities in high dividend paying stocks like at&t and ibm, et cetera. even though -- i think one of the things we all lose sight of it's a 25 basis point raise. you have stocks here that are yielding 3%, 5%, why not continue to get a nice yield. >> when you say yield i'm thinking a little cautiously about the energy space where now obviously you have what look like attractive yields but how much is the retail investor playing into these names and are you worried that they could be, you know, burned if, for example, a lot of these mlps can't fund their payout?

>> it's really interesting because we saw in september and october they were more aggressive in buying the exxons and chevrons of the world, in november they sort of cut back on those names quite a bit and made more neutral on them. i think that they have that said seng that you do, yelly, even though the yields are nice nchs, the jund lying product being crude is obviously as you've been reporting all day suffering significantly. >> before we let you go we teased that you were saying keep an eye on amazon and nike on these dips here. >> the last two times they have come down our clients have come in to buy them, last time i was on we talked about amazon versus walmart and i think that our clients are voting not only with their shopping dollars but with their investments and it worked out well for them. mid-november amazon got down to 625. >> there it is at 669. jj, thank you. >> always a pleasure. thank you. we will be back with the closing countdown.

a quick review of a newell newsy day for the market. >> our me go tir rel will speak with the company trying to lead the fight against leukemia.

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closing countdown. we've come back a bit. so the this $250 million to buy probably had some impact but we are well off the lows with the industrial average down 121 points as we head toward the close. oil the big story today, more than a 5% decline hitting a low it hasn't seen since february 2009. going the other direction keurig green mountain a 70% plus today. and then just late today this deal announced between newell, rubbermaid and jarden. >> i wonder if we could look at kinder morgan intraday. it's a pipeline company, oil pipeline company and on friday they announced they were reviewing the dividends, didn't say they were cutting it and that's created a second wave of

panic in the oil market, not just oil being below $40 but could the dividends be cut for some of the big oil companies as well. there is a whole little panic about that. for the moment the big oil companies, the exxonmobils and chevrons of the world are integrated ultimately national companies, they are not can you get the dividend right now but there is a crowd that believes lower for longer is going to be the mantra. we could have $40 oil a year from now in 2017. if that's the case even big guys like exxon and chevron could have potential problems with the dividend. it's expensive. exxon is a billion dollars a month, somewhere around there. >> that's the bayout. >> it's huge. it's about 25% of the tax flow. >> chevron is 5%. 5%. >> now, this is one of the concerns. remember, none of the big companies, chevron and exxon they announced the dividend is safe, that dividend is safe, but the concern is a year from now oil is at $40 will the dividend -- they created another

wave of anxiety because people thought that company was going to hold on. >> great stuff. thanks, bob. we're going out with decline of about 120 points on the dow right now, here is the big board, new park resources a ringing the "closing bell" and over at the nasdaq sem conductors. goodnight, kelly. >> goodnight, bill. welcome to the "closing bell," everybody, i'm kelly evans. here is how we're finishing up the session on wall street. what a start to the week it has been. an awful one for the energy complex, whether oil or natural gas, 5% declines. the impact on the exchanges has the dow down 115 points, the s&p down nearly 15, the nasdaq down 40. the declines of two-thirds of 1%. exxon/chevron having declines to the tune of 3% today. let's take a look at those key commodities now. energy we are showing crude oil,

wti down -- settling below -- it might have been 38 and change, lowest level since 2009, down 5.6%. brent crude same sorry, natural gas down 5.3%, the hits keep coming for the commodity complex and i lot of the link names. we have our own mike santoli and catherine mapell from the "washington post" and guy adami and anthony grasanti from grg energy. mike, what do you make of the shakeout today? >> anybody who thought $40 crude was going to be some kind of a floor was taken out today so it seems as if that also created a lot of that i think stingt to sell the losers of this year. it wasn't just energy and energy related stock it was a lot of this other housecleaning stock. big cap stocks pressured by weak credit markets which is related to weak energy. the big cap indexes did not

really give up that much more xd energy and commodity stock. >> going back to that story here, in a way we haven't seen much fallout even from these enormous drops in crude and natural gas a lot of the producers are kept afloat by access to capital markets. these stock prices keep dropping, capital markets won't be here and the whole premise relies on that or the price of these commodities rebounding which toy it doesn't look like it will. >> oil prices, energy prices will stay low for a while now, everybody had been mobile -- maybe not everybody, the companies it be mobile for a bit of a rebound, there is some good that could come of this. it is good for consumers if it looks like they will be spending less of their paychecks on gas. it's not all bad news. >> guy, adami -- >> it's all bad news. >> it's all bad news? >> i get the whole consumer

things, it's cool going to the gas station and instead of spending $95 to fill up your tank you're spending $40, i get that, but this whole argument that it's somehow great for the consumer, i just don't see t they might be saving money there, but they're spending it in other places not least of which is rent and healthcare. so although i get the headline for the consumer, it ain't manifesting itself. so now what's your question? >> the consumer sentiment surveys which often should be the first to which can pick up at least a bright thing of attitudes if not immediately se spending that money they're volatile lately. where does that leave investors when they're trying to look for further ramifications of what we're seeing today? >> the energy match -- we've said this with you for almost probably the last year and a half or so it, that oil volatility index, do you want to put it up for the viewers, the ovx, we've talked about that forever saying this is elevated,

that is you go signaling another leg down and they are seeing the leg down now again in crude oil. the trade in energy is lower as opposed to the s&p trade, the pain trade for the s&p is hire. if the pain trade continues to be lower on the energy sector, exxonmobil has given some back, but at 20 times forward earnings with a 38 power wti doesn't make sense to me. >> the decouple is maybe the best you can hope for, energy from the broader market. i want to bring anthony into the conversation because one interesting phenomenal here and please let us know what the very latest s when you look at some of these oil curves and others, but oil especially, it looks like investors are still expecting the price of oil to keep prizing for this delivery for months further on out. is that still happening and how much longer do you expect that to persist before reality may finally settle in? >> it's happening but to a lesser extent than what it was

about at six months to a yearing a. that curve was a lot wider at that point than what it was now. kelly, it's a matter of we are in it now, we might as well stay in it. it's almost like saudi arabia not cutting production. they're doing it now, they've wlthed all this and figured we're going to keep it the way it is right now. what the curve is telling me that oil prices are going to stay low through 2016 and possibly into most of '17. >> so at least that is taking place. i guess what i'm saying is the concern for a lot of folks is that if that starts to drop and goes even into backward dags that really puts into question even more so the business model for a lot of these energy names doesn't it? >> you also get that drop in production that everybody was looking for. whether it's forced or not that could be the catalyst that finally gets production to start falling and that could actually boost prices. the other thing is if the interest rates start rising which we expect they will that could cause a drop in production, too.

you might have 4, 5, of more dollars on the down side but when we start hitting the spring i imagine the market will be a little bit supported because of gasoline demand because of that drop in production. >> in a way it's a triple whammie from friday which is opec does jog nothing, inventories are high, the jobs number looks okay so that all adds up to more difficult conditions. what was the mood like there at the exchange on the floor today? >> we expected this. we actually expected a lot of this to happen on friday which it really didn't after opec said that they were rolling over their production. you know, people say they raised production. we've known they've been producing 31 1/2 to 32 million for the last six months so they finally admitted to cheating. we expected this big sell off on friday. when we didn't get it on friday he we felt it was a geopolitical issue, carried it into the weekend but we also felt on monday this was going to sell off and that's exactly what we saw today. >> mike. >> by the way, one of the warmest decembers on record, we now get the forecast for the rest of the month, that's what's

sending natural gas choice prices plummeting. >> demand for oil heating has dropped, too, on the refinery level you are not taking crude and making heating oil at the point. >> if you look at a chesapeake, oil and gas, any of these companies that have tried to move from oil into gas or diversify somehow they are getting hit. no matter where you turn the move is lower. i wonder what boarder implications does that hold for the federal reserve? do you think that is anything to keep them from raising interest rates? >> the mechanism through which that might happen is that we already have really, really low inflation. the fed has been underperforming in terms of hitting its inflation target for years at this point and having persistently low energy prices is not going to help further that goal. if they raise interest rates now if anything that is e. that's going to discourage inflation from filtering its way back through the economy. >> you would hope that the savings rate is quite high, it's -- what's the word, it's

left over from what people spend versus -- we don't know if they're actually saving that, if you want to see that come down maybe you finally get real spending power. >> perhaps. consumers have been more optimistic about their holiday spending plans, they say they will spend more this year than last year. >> real total consumer spending has been running around a 2.5, 3% rate. we get blinded by the retail stocks that are having a hard time. >> discretionary versus nondiscretionary -- >> the average run rate of spending. >> you hope there are more people able to buy the pair of shoes. >> speaking of optimism, though, more deal making today, 2015 the biggest year for m&a, rubbermaid and jarden are in talks to combine. jarden owner of coleman, crock pot, mr. coffee, a lot of different brands. >> jarden is an unbelievable company that we probably don't talk enough about.

their stock is not mini. they took the daniher model and took it for their own. year after year they make acquisitions, tuck a few things in. seven or eight years ago when accounting scandals were all the rage these guys got caught up in it in terms of stock price but turns out they were pristine. a well run company. jarden is one of those companies we don't do it enough service by talking about it. here is a merger that again -- i don't know what entity it's going to look like after all is said and done and i'm sorry for talking about jarden now after the fact but this is a fantastic company and fantastic stock. >> what these companies do is they buy established very slow growth brands and try to translate that through financial engineering into pretty decent corporate earning growth and do that through leverage cost cutting, buying back stock. both these companies do that. to me it is a roll up of slow growth consumer brands.

>> exactly what we were talking about with ken moelisa last week. very few options if the top line isn't rising to drive those costs out. >> what do you do for a next act. >> anthony, i want to bring you back in for a second. one place where we have not seen a lot of deal making this year is in the energy space. there have been a couple of high profile deals but is that because the price of the commodity, key commodities keeps calling? >> how do you place a valuation on any of the assets that are there. i'm not going to look at an oil company and say i will pay you blank for this when the possibility is that oil could be sold off another 10 to 15%. same thing with natural gas. i would imagine it's going to happen once we find a bottom in oil prices. i tried to pick that bottom two or three times. i'm not going to play that game anymore. i'd rather rally it from the low $10 and then i can look back and

say now that's the bottom. i think that's when you will start to get the deals made at that point, not right now. >> that's the problem with a move like today it pushes that timeline off again. anthony thank you for joining us. >> let's move over to breaking news on nicy. sara eisen joins us by phone with the details. >> i can report that nike has just signed lebron james for life. we don't have the exact terms of the deal, but this is a new structure for nike, it is a lifetime deal which means that he will remain a star for nike, an endorsed star for nike throughout his career and then beyond his career. again, nike has never done a deal like this, but makes sense for them to do that on lebron james who are one of the biggest endorsement stars of all of basketball and one of the biggest earners nor nike including to a website that tracks the numbers nike sold almost $350 million worth of lebron james shoes last year alone. clearly he is one of the stars

for nike now they are securing this deal for basically the lifetime of lebron james. nike says we can confirm that we agreed to a lifetime relationship with lebron that provides significant value to our business, brand and shareholders. we've already built a strong business with him over the past 12 years and we see the potential for this to continue to grow throughout his playing career and beyond. already nike is the star performer of the dow jones industrial average for 2015. it prides itself on making these kind of endorsement deals. keep in mind steph curry which many argue is the best basketball player right now is in under armour. >> do we expect -- thank you. do we expect under armour to turn around and sign a steph curry? is this going to be the beginning of signing these guys up for life now? >> you wonder if nike will look back and rearview the day, my sense is no.

to talk about nike the stock for a second. here you have a stock 3% or so off its all time thigh, they deserve that premium multiple. they don't use weather, they don't use a dollar rallying or going lower and uses in their earnings report, they just do it the right way. here is a stock that regardless of tape, good tape, bad tape, this is a stock and i rarely say this, this is one you don't want to trade you just want to put away, i think you will see continued appreciation over the years. >> we should mention shares looked like they were slightly higher after hours. is any price too high paying for the lebron deal. >> they know essentially what the business of lebron james can continue to deliver. we don't know the terms. lebron is 30 years old, about to be 31 i'm glad he has retirement security, he doesn't have to worry about it if he stops playing. >> a little bit on that front. sara, thank you very much. our sara eisen reporting there. lebron james will be signed to a

lifetime deal with nike. be sure to stick around to catch guy on "fast money" at 5:00 asking ed yardeni why the collapse in commodities does not signal a recession. first green mountain shares are piping hot after being a fired for nearly $14 billion. which hedge funds are cashing in on the deal. those shares up 72% in the session today. later billionaire rel state investor jeff greene on why technology is becoming a serious threat to white collar jobs. you're watching cnbc first in business worldwide.

welcome back. let's start with breaking news on outer wall. dominic chu has the details. >> this is a company that's the parent of coin star coin counting systems and the red box dvd kiosks. they have announced they are have had a leadership transition for the red box unit of the company. mark horack is leaving the company and the current outer wall ceo will serve as the interim president until a search for the position can be filled. also the kpts also saying that they have offered guidance for the full year of 2015. their consolidated revenues they now believe to be between 2.17

and $2.19 billion. that is below their prior estimates of 2.21 to $2.24 billion. they also say that red box kiosk revenues will be between 1.75 and $1.765 billion lower than the prior range they offered of 1.79 to $1.815 billion. they are announcing a leadership transition from the red box division and also guidance for the overall company for 2015. their revenue guidance for red box and overall company comes in below their prior forecast. we now estimate or they have now said that trading will resume, it's been halted so far in the after hours, trading will resume at approximately it looks like 4:45 eastern time. again, we will keep you posted when they reopen but for right now those shares perhaps will move on this forecast cut as well as the leadership change at red box. back over to you. >> thank you very much, dom. keep an eye on those shares when they reopen.

>> green mountain coffee one of the big movers on wall street. kate kelly joins us with a look at how this deal impacts hedge fund investors, kate, some real happy investors today and some will wr it must be pretty tough. >> despite the fact that hedge funds are barely eking out returns so far this year this is a case with winners almost all around. in the aftermath of jab's take over deal which was accepted by keurig the stock has rallied up to $90 a share for most of today. that's proved lucrative for many funds. eminence capital the largest among hedge funds is up by more than 30% based on rough math in terms of when they got in and what it looked like from their filing. other hedge funds, high bridge, de shaw, aqr and citadel appear to be doing pretty well, too. then there's darren ion horn, president of the green light

capital shorting keurig has appeared to be one of his most winning trades based on a late october investment letter. as of friday assuming he was still in the trade his his short had generated almost 50% return. as of today those gains have been shaved substantially he is still to be fair in the black by $12 a share. his main fund is down more than 20% through november and other things just aren't going his way. >> i guess, though, kate, this is a risk when you are in a deal room which we are which is at any point a company when it is a good short for fundamental reasons still could get taken out. >> that's absolutely right. this is a stock that as described to me by some other hedge fund managers it's a complicated one, you have the brewers, the k cups, you have a lot of different aspects of the business to understand and the investment community has been very divide as to whether to go long or short. i must say this was a surprise deal and the premium is enormous. i have yet to hear a great explanation sort of figuring that out, but, yes, i mean, you

don't know when something like this is going to happen, you don't know when the premium is going to be this large and that's -- that's just on the takeover side. i mean, think about some other names that have both long and short interests, i'm thinking of herbal life or valeant, we have real honest to goodness debates going on about the very, you know, direction of -- literally whether a stock is going to be up or down not just on the margin, is it going to a big winner or marginal winner. yeah, it's been a tale of polarized opinions for much of this year except in make row land where everybody seems to be getting hurt on the same group thing. >> it's interesting to me and ironic on another level i think because so many hedge funds have been decrying this environment where it's about easy money and essentially being able to do any deal you might want or make these big leverage bets that's exactly what might be compromising some of their attempts at having company specific outperformance.

>> i think that's right. it's a very unpredictable environment, it does feel like -- we certainly feel now after the jobs report and other factors that we're poised for a rate hike although it's probably going to be small but that makes you wonder does the cost of capital get higher? i think people have asked the legitimate question in pharma is the deal making craze ending or starting to fade? yet it continues the pace in some other areas. i think we might be deal making in energy in the new year. the deal making activity continues to roll along, it's going to affect these investments but you have to look sector by sector, company by company, you always do, but i think it's true now perhaps more than usual. >> kate, thank you very much. great reporting. kate kelly back at headquarters. biotech, up next the ceo of one biotech company using gene editing to develop promising new treatments in the fight against cancer and may have already cured one child of leukemia. increasing calls for silicon valley give the government more

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biotech was also hit hard in today's sell off. a number of companies sharing results at the national hematology conference down in

orlando, florida. one company potentially making huge strides against leukemia. meg, over to you. >> that's right, kelly. treatments for leukemia and making headlines was a company called selective which has tried its new therapy in one patient so far. check out that story. >> one-year-old baby lela had been battling an aggressive leukemia for more than half her life, a few months ago the doctors ran out of options for approved therapy to so he turned to an experimental testing. lela was the first human to try this new therapy. it appears it may have worked. her doctors say lela is now cancer free. the treatment is a form of immunotherapy designed to harness the immune system to fight cancer. treatments being developed by novartis, geno therapeutics and others take a patient's own t cell out of their bodies, modify

them to better detect and kill cancer and reinfuse them. lela didn't have enough of her own t cells so her doctors worked with celectis to try its method. celectis uses gene editing technology. lela's doctors say while her results are staggering it's too soon to know whether the treatment is suitable for all children. celectis plans to start human testing of the treatment next year. >> joining us now from the hematology conference in orlando is the ceo of celectis dr. shalecta. this has been tested in one patient but the results are incredibly exciting. what can we extrapolate from these touch early data. >> it's always very difficult to extrapolate from one case.

nevertheless there are certain boxes that can be checked. the first one is it's the first time cells from a donor were given to a patient and the patient has no immune system to react against them. so the real question is these cells are going to be toxin and attack the patient, the consider t cell melting down the tissues of the patient and there was no strong adverse effect and this first box of the toxicity was checked. there is no clear strong toxicity. the second thing is the persistence of the cells, the cells stayed in the patient and was not -- were not immediately rejected. and after this to know if the job was done or not obviously the leukemia has cleared and this is a good outcome, better to have no outcome at all. >> so much being invested here in the patient's own t cell approach from juno and novartis and others. does your approach obviate the need to use the patient's own t cells. >> well, for the approach that

was described before like in the presentation the patient comes in, you draw blood, extract the t cells and transform the t cells and reinfuse it into the patient. in our case the patient comes in, you open a fridge or free r freezer, pull a vile and can immediately inject the vile because we industrially lly pr it ahead of time and it can be given immediately. >> very exciting results but the stock reaction has been a negative one as we've seen for so many stocks coming out of this conference. >> the market reaction is pretty difficult for me, there is things i don't understand in the current reaction, i think the markets are oversensitive, always waiting for things that are extraordinary. i think this is a huge advancement for medicine in general. things presented by novartis are spectacular in terms of complete

remission. there is a long time to invest in this product but it is very a very promising advantage in cancer and i think it will expand a lot of different typed of indications in the future. >> lots more to talk about that. we will leave it there for you. >> kelly, back over to you. >> thank you both so much. time for a cnbc news update. let's get over to sue herrera. >> here is what's happening this hour. the largest u.s. navy destroyer ever built headed out for its first sea trials today. the massive uss sem walt glided down the quebec river in maine on its way to the atlantic. it cost $4.3 billion. it is named after a former navy admiral. it pays to be smart, the u.s. transportation department says that it will award one midsize city up to $40 million as part of its smart city competition. communities must submit a plan that uses technology to cut down on traffic congestion and the winner will be announced in june. a new poll shows hillary clinton beating every major

republican contender in a hypothetical general election match up. the msnbc telemundo maris polled shows clinton holding an 11 point advantage over donald trump. look what washed up on a beach in north carolina. beachgoers in writes vil found this 8 foot shark on the shore this morning, the animal was not alive and it was removed by ocean rescue officials but it has an active shark season so far. back to you, kell. >> sue, thank you so much. >> jeff greene warning the technology threatened to biden the nation's income inequality gap. he will join us to explain why he is so worried and how we should address this potential crisis. later why regulatory challenges for some of the biggest names on the cnbc disrupter list could be seen as a good sign to early investors. you just need a strong stomach. back in a moment.

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welcome come back. the greene institute's closing the gap conference is under way in palm beach, florida. robert frank joins us there with a special guest. >> billionaire jeff greene has been sounding the alarm about the destruction of the american

middle class. today he had some of the greatest minds from academia, the economics world come to palm beach to his conference closing the gap how to create a more inclusive global economy. thanks for joining us. this is a new model for a conference where you're basically spending your own money to address a single issue. why is it so important? >> the biggest issue for me for years has been that the exponential group of technology and equal zags of wages has destroyed millions of jobs. what i have learned preparing for this conference is that what globalization did to the blue collar working in manufacturing over 30 or 40 years, ant initial intelligence, machine learning, big data, robotics i believe will do to the white collar work force in the next five to ten years. this is a national emergency and i'm going to address it myself it no one else will. >> you've often told the story you worked as a busboy at the breakers down the street now you

live at a $100 million mansion, this is your hotel. somebody would ask ufk so successful why do you think that system is broken in america? you're proof it can work. >> i am proof that it can work but the system we have today wasn't it system i grew up. i grew up in massachusetts, it was a working class community, i went to the same public schools as the bricklayers kids and pediatricians kids and we all got solid educations. there were opportunities for people to get jobs factories, good paying jobs. all my friends whose parents were bricklayers and who were factory workers they lived in homes that these families owned. today people get out of school, i have friends whose kids graduate top law schools and can't get a job for a year or two. we have to do something about it because the jobs are getting worse and worse. >> let me jump in if i may. i want you to listen to something that ken mole police told us the other day about the

changes he sees in technology while disruptive aren't threatening to our society. take a quick listen. >> in our world right now you have so much technology driving price transparency, pricing power, efficiency. these are great things. what amazon is doing if you are a retailer, you better take your profit down and give the consumer an awfully good deal or amazon is going to replace you. >> in other words, jeff, a lot of the changes that we're seeing even if they create people in law school who aren't getting the dream job they wanted are fundamentally for the good he would argue. what would you say? >> it's a disaster. the way price is going to work we are going to all have such perfect information. think about when you buy an airline ticket you can go on one of the websites you will know in less than 60 seconds what the best fair is going to be. that's going to be how you will buy everything. margins will get squeezed, retailers will go out of

business. you will be able to guy buy every product from everywhere in the country. with technology it's not going to be long before you will be able to price every product from every country in the world. >> listen, i hear your point, but amazon is worth a pretty penny. let me bring catherine mantell in here she has a question. >> you have raised the question of robots stealing our jobs of course which a concern that has within around for centuries, arguably millenia, i think socrates said that one day some sort of automated system would replace the weaver. we had lodites, destroying precious urs and looms. every time this concern had been raised mankind has been able to adapt. it was painful initially but there was an ability to adapt. we transitioned so an industrial society and so on. why the doom daying today given what we've seen historically? >> well, i mean, look, you do

talk about amazon, you know, look, if you want to talk about jobs, just look at an amazon distribution center, the robots are stocking the shelves, go take a look at the video of a tesla factory, the welders are robots. this is really happening, this is not the jetsons anymore. this is happening today. >> but it's happened in the past. but it's happened in the past and we've adapted. >> well, it was different. first of all, we had a relatively closed economy, when i was a kid basically the economy got good, everyone bought a whirlpool washing machine and the whirlpool workers went back to work. now if you want a washing machine that is going to be made somewhere else because what happens as soon as wages got high today the labor gets replaced either with a technology solution or laner from a chup err country. >> i want to ask you about solutions. we know this is a problem, the degree of the problem can be debated. what is one hard concrete solution that has either come

from this conference or will come from this conference that you hope have been implemented? >> that's a good question. i've been here all day with some brilliant minds. i can say rob reich talks about some kind of guaranteed minimum income. i think that a lot of the talk about lifelong education, people we are he had kagts our kids not just in a vocation which is anecdotally being talked about, but teaching our kids that they may have 20 jobs in their lifetimes and they have to learn how to adapt so we have to get our education system -- we have retraining programs, we can't just say -- some people they work in a job, it's not their fault that that industry gets automated and they lose their job. we have to have a safety net to hold them over until -- and then we have to retrain them and give those that want to work a chance to have another job. >> bringing together everyone from tony blair to mic tyson talking about the economy. some interesting ideas to bounce around here whether we solve it

or not is the open question. kelly, back over to you. >> hope for some better weather. thank you, both. we have a new look at yum! brands. >> yum! brands the company behind taco bell and pizza hut has announced they have to go through a cfo succession plan. they have announced patrick grismer will step down from that position effective in february of next year, so, again, effective february 2016, february 19th to be exact. so he will stay on and continue to serve as cfo until that time and finalize the filings through that period. he is also going to be at the upcoming investor conference as well to ensure an orderly transition. the board is going to conduct a search, internal and external candidates to try to find a success successor, no successor has yet been named. we also want to bring you a bit of an earnings alert on what's happening with h & r block, the tax preparation giant. those shares are down by 4.5% on

relatively light volume, this after the company reported a loss of 51 cents a share, analysts were looking for a loss of 48 cents, also reported revenues of $128 million of revenues versus $132 million estimate. now, just to put it in context, h & r block's quarter that just complete sd not typically their big quarter. we all know that tax preparation time comes in the first quarter of any calendar year. it's not at all uncommon to see these kinds of results in terms of a loss for h & r block at this time of year but they do expect the tax season to go on. kelly, those shares down on light volume 4.75%. back over to you guys. >> dom, thank you. our dominic chu. coming up, why the diver divergence between stocks and junk bonds are raising concerns. silicon valley under pressure to give the government access to encrypted technology. what that potential increase in

security could mean for the privacy of americans. stay tuned. you pay your car insurance

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this issue. joining us is herbert linz at stanford center for international security and cooperation. welcome to the program. i guess the most significant fact today is that silicon valley has successfully managed to block law enforcement from accessing its devices. >> well, what they've done so far most successfully is to prevent the government from passing a law that would require them to provide access. in the past they have cooperated under government warrants to provide information to encrypted communications and data. >> let me just ask because you are in california so i'm sure the san bernardino massacre hits close to home. if it turns out that there are a couple of devices that have information but we literally can't access it them, would that change your mind, my point is would that make the case for allowing these devices to be accessed by law enforcement? >> i think that the san

bernardino case in particular doesn't change the argument. the analytical argument, the intellectual argument one way or the other. it does change the political argument. the question is whether or not you want law enforcement to be able to have access all encrypted communications even if they are not just of the bad guys but of the good guys, too, of you nd me. so the attitude of most people -- of many people anyway is to say, yes, let's have the government have access to encrypted communications everywhere except until it affects me personally then i'm not so sure about it. >> so i have a question on this. so the argument that had mostly been raised for why it's not a good idea to give the government more access is one about civil rights and privacy and that sort of thing. is it also the case that it puts commerce at risk in some way, that if you create a back door that's available to the government that also creates vulnerabilities for hackers to come in and, you know, maybe see

transactions or contracts or other things that companies and individuals may not want to be viewed by not only the government, but by other third parties? is there sort of a commercial risk as well that comes with this? >> sure. the answer is yes or at least potentially you could imagine -- it depends on how broadly any law or requirement is written. if you have financial transactions that are encrypted, that's -- that are encrypted for protection and the bad guys somehow get into that -- you know, use that for their own purposes then obviously you can't trace their money laundering or whatnot. so if you prevent the government from getting access to that maybe you're facilitating a crime. on the other hand, if you don't -- if you let them have a back door into it, if the bad guys can get access to that back door, they can also tamper with

your bank communications and that's not so good for you. >> a lot of bad options to choose from, but a lot at stake. her be, thanks for joining us, that's herb linz. we want to get back to dominic chu with more on this outer wall story. dom, those shares a spear to be plunging after hours. >> they are. they reopened for trading four or five minutes ago and outer wall shares this is the parent company behind coin star, coin counting kiosks and red box dvd renting kiosks, shares are down by 24%. relatively heavy volume 193,000 shares are traded after hours. around 415,000 trade per day on a regular basis offer the past three months. again, this after the company came out and reduced its full year guidance a and also announced that its president of the red box dvd rental division was going to leave the company and they were going to start a search -- anyway, the ceo of the company is going to take over an

interim bases they started a search on the executive side of things, outer wall shares they have reopened for trading down by about as much as 30%, currently down by 24% on almost 200,000 shares worth of worth o. we'll keep you updated throughout the afternoon but a very big story for a high-profile company for those who use coin star and red box. >> just to quote from the release, consumer rental patterns have not returned to the levels we have expected at this time. can't say it is a terrible shock given the way we are all streaming. thank you, dom. a tough one for outerwall. draft kings threatened by big regulatory hurdles. which other big-name companies are at risk when we come back.

welcome back. cnbc disrupt or list challenges the status quoch and a number of them are facing a hurdle, regulatory challenges. julia boorstin is on the disruptor beat and she joins us on set here today. >> great to be here. this is a sign of just how disruptive a company is, which is a good thing as long as the battles didn't threaten the company's existence. uber is banned in cities around

the world, battling with government agencies for the ability to operate everywhere. take a look at this map of the regulatory action taken against uber. and that is just since september. number five, air bnb is fighting regulation city by city. that is major undertaking considering it is in 34,000 cities around the world. and growing concerns about safety threaten to drive up their costs. now these regulatory challenges have hardly dissuaded investors who poured $2.5 billion into uber and air bnb since july alone. a couple of other disruptors examples of success drawing scrutiny, number 45, draft kings fighting to prove that its variety of gambling should be legal. and then hampton creek, facing off with the fda for the right to use the word mayo for eggless spread. not all disruptors are lucky enough to sufficient vive the regulatory fight. we saw 23 and me.

which was basically almost put out of business by the fda. and then it worked with them and it came back on the market and now it is offering different versions of the original genetic tests and analysis but not the full breath of tests. >> first they laugh at you and you beat them and then you win. that reminds me of what is going on with a lot of these companies. julia boorstin here at post nine. the version between junk bonds and others are getting bigger. how worried should investors be? that is next on "closing bell." and knewel and jarden are in talks to merge. we'll hear from one of the reporters that broke that story. stay tuned.

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just $30 bucks a line and no sharing. plus get the samsung galaxy s6 for $0 upfront and $10 bucks a month at t-mobile. welcome back. despite today's losses, stocks have been on the rise in the last couple of months. now this interestingly, while credit markets in the high yield sector have continued to weaken. mike santoli wrote about this today. is this a concern for now. >> the wisdom is the credit markets lead the equity markets because they are focused on the big risk. it is one of the main indictments of the stock market rally. there are ways to explain this away. to some degree.

one is the weakness in credit is about energy and other commodities. it has bled over to other areas. and the kind of stocks leading the stock market higher are exactly the growth stocks that don't need the credit markets, they are self-financing and strong balance sheet company. so maybe the divergence isn't as dramatic. but it is something that everyone is talking about and i think probably caps equity valuations if nothing else. >> if we don't just look at it as a sheer indicator of the stock market, there is also consideration of is this a good investment and what kind of return in a rising rate environment could we expect. >> you brought up people on both sides. goldman sachs said last week, the credit and high yield market is giving a false recession level. and the problem is i think everyone could agree we are late in the profit cycle. we're somewhat late in the credit cycle given the fed is just getting around to raising interest rate. that might change-up the rule book a bet. >> anything you are betting on, you are betting on one of the

longest expansions we've had. thank you for joining us. mike's piece is on cnbc pro. that does it for us on "closing bell." up next, mandy in for melissa lee. >> "fast money" starts right now. we are overlooking times square. hello, i'm mattie, sitting in for melissa lee. our traders on the desk today are dan nathan, david seaberg, guy adami and a special appearance by the kmoditiys king dennis gartman. and oil hitting near seven year lows. and the one group of energy stocks that could take off after the collapse. plus new rubber maid and jam are hooking up in what could be a $20 million merger. so we have the reporter who broke that story and she will give us the very latest. on top of that, small caps are doing something this month that they haven't done in a long time.