something, the problem is a lot of these other businesses aren't worth that much and that's the question they are going to have to deal with. there's a lot of costs to take out, a lot of things they can do and it's going to be down to management to make those decisions. >> dave, thanks for coming on. >> they're playing our song. we have to get out of here. >> see you tomorrow. hi, everybody, and welcome to the "closing bell," i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth. we have a little bit of a rally, up 157 points rye now but nowhere near the highs of the session earlier in the day, the dow was up 271 points as we were up maybe 40 points, maybe 30 minutes ago. art cashin was calling it the chesh shire cat rally, it was slowly disappearing. >> that's what we're keeping an eye on. >> oil having a rare up day today, it's the new front month,

march contract was up a dollar and change on the settlement 30 minutes ago. the big we q. he is what is driving the market, oil, signs from mario draghi that more stimulus might be coming what about china? one of the big leaders on the dow right now is verizon. that company posting strong earnings this morning and touting the strength of its skinny bundle. isn't that a tv term? that's right. remember, verizon a big player in in space. we will look at what this all means for the media landscape. the shares up 3.7%. >> b bchb&t keeps getting bigget the stock hit today after an earning miss. we have the ceo to talk about his business and why his firm has been on this acquisition binge. we have another deal that's going to close in april. >> more breaking news to corporate america, we will get you ready for earnings from american express, starbucks and

slumber shay, that will be right after the close. >> let's start in the pike of crude oil. jackie deangelis tracking its movies at the my next. >> a volatile day but this time good news we did move to the upside. 4% pop on the day, we finished at $29.53. extra day we did cross that $30 mark. interesting because as you mentioned we have some volatility in the february contract today, more stability in this march contract, it was definitely expected, but we got some inventory data that was not so great from the department of energy. it worries a lot of traders and they are saying they still think there is another leg down from here, but having said that we don't always go down in a straight line, even though we have been. so this was an unexpected activity. why did we move higher today? there are some substantial reasons. short covering explains part of t also this buy the dip mentality, probably some people just getting in for the day. that rebound in equity as the draghi comments this morning

definitely helping as well and partially some selling fatigue in general. these swings are being described as violent in either direction and that really takes a toll on people. i do want to mention before i throw it back to you the bearish day that we got today, gas inventories the highest we have seen in 25 years and also u.s. production increased slightly again for seven straight weeks in a row. when this market decides it wants to return and look at the fundamentals again the picture is pretty much the same, guys. back to you. >> jackie, thank you so much. also want to draw people's attention to what was happening yesterday at the time that the stock market was at its lows, the dow was down 550 points, but what was going on, we were following moves in oil there. here is something to keep in mind, yesterday that february contract that was still trading, it's on the bottom. that february contract was down to about 26.50, a huge decline. what was happening, though? there was almost nobody in it. if you are trying to get energy exposure through your business you are in the march contract,

you don't want getting stuck having to deliver or receive barrels of oil especially if you are a trader. the march contract never got that low, at 2:30 when we settled we switched from february to march and all of a sudden the price shoots up a couple bucks. there are some calling yesterday's lows both in oil and in the stock market a mirage. that's brian reynolds saying, listen, if we never, quote/unquote, really got that low, anybody who would have realized they could have jumped into that contract and maybe posted down before we rolled over also took the market down with it. there was a lot of short covering going on as mike santoli reported then and a lot of people could have made a lot of money if they figured out what was going on. >> not a genius or anything but that was one of the reasons i felt like yesterday when the contract expired at 2:30 eastern time that's when we would start to see the market really start to come back and it did to a great degree even though we did lose some of that ground late in the afternoon. and then the same thing happened last month, i was pointing out

to you, the divergence between the expiring month and the new front month was quite striking, it was about a full dollar at that time as well. >> something to keep an eye on when the next one rolls over in about a month's time. but again, for those looking for what happened, why was oil off the lows, well, the real question is maybe why did oil get quite so low in the first place yesterday afternoon. something else that's gotten the market's attention these ecb comments from mario draghi in morning, he was waving the qe bazooka around this morning. >> the ecb president went as far as any central banker almost ever goes in telegraphing future policy this morning. coming as soon as march perhaps, in his opening statement draghi said down side risks from increased for the european economy since the ecb announced any measures in december and the bank will respond when it updates its forecast in march. >> also continue to be weaker

than expected. it will, therefore, be necessary to review and possibly reconsider our monetary policy stance at our next meeting in early march. >> that got the market going. later in the q & a session with journalists draghi said the outlook for inflation was significantly lower than it had been a few weeks ago because of the plunge in oil prices. they announced new measures in december that landed like a thud, but the expectation was that the central bank would not react again until june. so draghi's comments push up that timetable. he says he is not acting in the face of a charging forecast. it would damage the ecb's credibility and those comments raise questions about how the fed will respond next week to a change in the economic outlook. the market, oil and gdp estimates have fallen since the fed's last meeting and seems likely those realities have to find their way into that statement next week, guys.

>> that's a great point. a good place for us to kick off well as well. thank you so much. let's get to our "closing bell" exchange for this thursday. joining us now we have brian perry from hennessy funds, steven sarge guilfoyle from deep values at post 9 with us today and rick santelli checks in from chicago. sarge, yesterday's last rally, you know, a come back of over 200 points on the dow, we are up 110 points right now but you are not ready to call a bottom here yet. you are remaining defensive, aren't you? >> i'm going to remain defensive. if you look at the nature of the buying that we've seen in the last day and a half or so the russell 2,000 and the biotechs say it all. they led the way yesterday, they are underperforming today. i think that tends to say this was maybe a large short covering and short sell is when they cover their positions there's nothing behind it. somebody who is buying for a long position says i will buy some here, i will buy some here, i will buy some here and there is more behind it so it sustains the rally. once a short he willed covers

his position he's done. >> brian, where are you guys seeing value? are you looking at the transports thinking that's over done or are you worried about the larger demand picture? is it all about china trying to keep away from exposure from international stocks and staying domestic? >> that's exactly what we're looking at. we're trying to keep the focus on the domestic economy. we're looking for stocks that are in the middle consumer domestic stocks. stuff that's not really going to be impacted by china as much or, you know, currency fluctuations, really domestic businesses that are doing well and that are growing the businesses in a reasonable class. >> reminds me actually goldman had put out a nice chart showing the difference between revenues for companies without international exposure versus the ones here domestically, pretty wide gap. you can see it when you kind of look at just those high domestic bills, that blue line on top a vastly different picture. >> we just saw the other chart there, the dow and the s&p still

positive, but the nasdaq has now turned negative. that's that lack of follow through that you were talking about, sarge. rick santelli, clearly today the markets showing that they still love when central bankers talk dove i wishly, don't they? >> i'm not so sure. as i look we are up now less than 100 -- >> well, yeah -- >> down here -- >> as you often say my friend it's all about how we close not how we trade during the day. >> there you go. >> i pay attention. >> my informal poll just talking to traders walking around the floor around lunchtime was they'll rally. i know many of our guests are saying buy the dip, short covering, a lot of things i don't he is in i will disagree with, but i haven't heard so many people say sell rallies in equities in a long time. in terms of mario draghi, there's tomato, there's tomato. i hear sovereign welfare. i really think the qe program in our country proved to be less

than successful. i think it will be less to the second power successful in europe. as for china, you know, i think sometimes we confuse catalysts for reasons. you know, china, the fed tightening, these are all catalysts but they aren't necessarily the reasons markets are going down. i think the reasons are clear. look no further in today's rescission on a number that i like to pay close attention to, this month philly fed. last month revised 10.2 took last month to the lowest levels since the end of 2012. i continue to say that if you want to keep things simple just look at the chinese stock market. it closed on its lows today at 2880, the important pivot is 2927, that was a significant bottom in the summer of last year. >> just want to mention, brian, a couple of the names amid all of this that you actually think are worth owning, jetblue, kc's general stores. jetblue, the airlines are not

having a pretty day. >> well, you know, i think that they traded down with oil which is kind of -- goes against what you would think. if you look at jetblue's numbers for december, their traffic was great, their capacity was up a little bit, overall i think it was pretty healthy. i think right now if you can really kind of take some of the volatility out of it and figure that you're trading not for the next week or so, but really take a longer term perspective, i think there is great entry points in these. you do have to be cautious about it and kind of pick your points in dollar cost average into them because as rick said you never really know what's going to wind up happening. it may be just we get a rally and people sell into it and you wind up lower the next day. i tell people to be cautious in here. >> sarge, regarding what rick just said there in that change of mentality, you and i have talked a lot about that off camera, the buy the dip mentality is gone, it's now sell the strength lately. what do you expect to happen here in the last 45, 50 minutes of trading today?

>> or what do you hope happens, i guess? >> i'd like to see the s&p hold the 1866 level, if it can't do that it absolutely has to hold 1857 that's the held it held yesterday and it turned into an okay day so far today. my level to the upside is too far for traders to be concerned about today. >> finishing negative would not be a good thing it goes without saying, i guess. >> no, it would not. the pboc, yesterday the rumors about the pboc taking some action was fueling the rally a little bit on this floor, guys were talking about what the pboc might do, they did considerably less than we expected and you saw that selloff in shanghai this morning. >> all right, guys, thank you. appreciate it very much. see you later. well, the markets decline in recent weeks has not been totally unpredictable. eric chemi was found a pattern from the daily intraday charts and he says this hour may not be the most important hour of the trading day, eric?

really? >> well, it's close. it's almost three to four, but not quite there. we know the markets have been down this month, that's not a surprise. here is the thing, there has been a consistent and almost predictable reversal in the late afternoon, specifically around 2:30 p.m., bill. first let's go back a month. look at how the s&p did in late december, nothing special, stocks opened flat and gradually increased during the day. look at january, much lower overall, but here we see two reversals, an early one at 10:00 in the morning and a big one, giant spike after 2:30 p.m. today we're seeing the same reversal this time dag dragging down an otherwise up day. in the last 20 days oil and stocks are at a 96% correlation. that's the highest level in four years. many traders think one oil closes at 2:30 of the market can psychologically shake it off and get back to trading stocks independently of energy.

2:30 to 3:30 is the nonoil real trend in the stock market, that's a trend you will have to watch for the next few days and weeks. back to you, bill. >> it also by the way confirms how important oil is to this market. overall the message seems quite clear. >> the other influence lately has been the european market when they close at 11:30 we get a different tone in the market as well. we often point out that it's the last hour that is the so-called smart money trading hour. do you agree with that. >> it's interesting. 2:30 to 3:30 we see this reversal on the big down days that 60 minutes things starts to come up and in the final 30 minutes people are trying to sell those gains. if you want to see what the smart money is doing they wait until 3:30 and lock in that from the previous 30 minutes. >> i like your analysis, i'm just not sure i agree with your conclusion. >> thank you very much. eric chemi.

>> there are -- >> nice guy. >> 40 minutes to go in the session today. the dow is up 138 points and we are keeping an eye on the s&p 500. up 12, the nasdaq, though, only up about by 11 points and it was the one yesterday that was kind of a little bit more of the tell. >> we have a blizzard event of earnings coming up. see what i did there? not to be confused with the winter storm doing the same thing. american express, starbucks, slumber jay among the big names reporting. tonight we will highlight the numbers wall street has been expecting, we will bring them to you and break them down with our team of reporters with all the analysis coming up. >> also ahead will skinny bundles, so-called, bring fat profits to verizon in we will get yous details on what's happening with that giant next. you're watching cnbc first in business worldwide. >> on the most important hour of the trading day.

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okay. dow up 109 right now with about 40 minutes left in the trading session. the dow was up 271 points at the peak today, so we are well off the high. you can see that more of the dow components are higher than they

are lower, verizon leading the way, united health is the biggest loser right now. verizon the big leader there, the giant telecom reporting better than expected profits this morning. >> it saw subscriber growth of tb and broadband services. while ver gallon continues to lead the way they announced the net video subscriber growth saw a drop last quarter, only added 20,000 customers in the fourth quarter versus 116,000 in the prior year. >> more customers are president oing for choice in their video selections the so-called skin gee bundles, fewer choice that is they take and subscribe to. the company says custom tv now makes up one-third of its vios video sales. so are skinnedy bundles the new key to verizon's bottom line? joining us with his thoughts is rich tullo. what do you think? >> that seems to be the future.

>> we don't coverer zon but they added 20,000. we like skinny bundles. >> because? >> our friend at turner, cbs, they all think skin gee bundle is the way to go. first reason, the millennials get all -- they're moving out to what we call -- they're watching less tv out of the home in bars than more tv in the home and the skinny bundles is a nice package. second, it gets back to the mvpd roots, we didn't always have 9 hup channels, that was a manifestation if the regulatory change in 2010, prior to that we had a few channels and then really what you paid for hbo, starz, show time was what showed the dig adoption. this is getting back to that. it's probably makes a lot of sense for verizon to customize what they're offering you than to bundle 900 channels. >> yeah.

>> more margins. >> i'm thinking through these skinnedy bundles and what they really are. does it come down, rich, to a bundle that doesn't offer sports or are you saying there might be one that offers sports, there might be one that is totally different? do we have any sense of what verizon is trying to do and what ultimate growth might be capped if it doesn't have some of those core offerings you are looking for. >> i can't speak to what verizon is trying to do but if i were verizon what i would be trying to do is offer somebody a package that covers all the bases, you know, turner has, you know, some of the top performing stations by ratings, nbc, cbs, top performing. give them the top -- the favorite stations >> what about espn? >> espn, that's tough, right, because anybody who derives their value from stuff that's not being watched a lot and you have one big channel surrounded by a constellation of 19 other

channels not being watched a lot, that's the tough part in the skinny. that's who loses. who wins is cbs. >> where does this go, though? >> you talked about the proliferation of channels. do some of them go away? how many hbo channels are there, how many sin a max channels or starz channels, there are a lot of them where they slice and dice into categories and genres. do they go away. >> the hbo channel you are paying for that, so that's just an alternative. >> if i want one hbo channel do the others go away? >> you would pie hbo for $14.99 a month. >> what do you think is going to happen here? >> it makes it accessible. for you to get hbo via apple t-v, it would probably cost you a good $70 or $80 for your month of watching hbo. so that bundle works for you. there is not a lot in common. so what drove cable adoption is starz and showtime and hbo.

didn't have a lot of in common with network tv, therefore, people paid for that. netflix has a lot of in common, amazon has a lot in common with cable tv. so when you go skinny, all right, where verizon is going to make its money is on the margin on the channels that they're offering you. >> final question. as people start to slim down offerings and maybe it's that households are able to pick a couple different ones, i want this bundle and that bundle and whatnot. but you think that the profit margins in knows narrower offerings will be good enough to be good businesses for the providers? >> in the long-term, why he. >> how good compared with current cable? >> current cable margins have gone down from close to 40% in 2010 to 35% today on tv,el 5% on broadband. they want to be in the broad wand business. that margin is only going to go down and down and down over time because there's push back. >> right.

>> the margin on something like an hbo showtime is going to resemble a normal retail margin, 40%, 50%. >> rich, thanks for joining us. >> rich tullo. heading to the close here, we've got 37 minutes left in the trading session with the dow up 117 points right now. >> up next, find out why rock bottom fuel prices are not necessarily boosting profits at some of the nations major airlines. also, the ceo of bb&t will tell us about the regional bank's earnings miss this morning plus the acquisition plans he may have down the road. there may be plenty to talk about with kelly king coming up.

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welcome back. watching to see if we can hold to a nice rally day. the dow still up 140 points. we had people expressing skepticism about that. the s&p up 12 for the time being, the nasdaq is the laggard up about 10 points. obviously crude could have a lot to do with what happens here. a nice rebound today, we have discussed some of the reasons why it was extra low into the settle yesterday. nevertheless it's up almost 5%, wti still below 30.

>> today march becomes the new front month. united, southwest, alaska air all have reported earnings and it turns out those lower oil prices do not necessarily pump up profits as you might imagine they would. phil lebeau has that part of the story for us. >> they certainly help, the airlines all enjoy seeing lower jet fuel prices, having said that it is not the complete windfall that everybody expects. it's a bit of a mixed bag when you look at what the airlines are going through right now. demand is strong, gary kelly was on squawk box this morning, they said they love where they're seeing demand in terms of people wanting to fly, however, fares are falling primarily because of competition on the lower end with discount airlines, more of the airline, even the legacies adding in those lower fare seats, that ultimately brings down passenger revenue per av l available seat mile, that's under pressure and that's the reason why a number of the airline stocks have been falling over the last three months. when you take a look at shares of united, this is an example,

its passenger revenue per available seat mile is expected to be down in the first quarter 6 to 8%. that's weaker than what analysts were expecting. on the conference call today oscar mun noz. he was on the call and talked about the need to improve united's performance. >> the other day over the long-term we certainly believe our relatives earnings profile will improve and when and how and all that, that's the work that i have to get done over the next few months. >> encouraging news for inn cresters in united that oscar muñoz expects to be back by the beginning of second quarter. when you look at united versus delta, southwest, it clearly has lagged. it's a slightly different beast than southwest and alaska because of its international exposure and it certainly is nowhere near as profitable and doesn't have the profit margins that delta has right now, but the bottom line is this, guys, a lot of people say, well, it's lower jet fuel costs therefore the airlines should be --

immediately that goes right to the bottom line. not necessarily. it certainly helps but it doesn't all go right to the bottom line. >> i've got to say we were going to ask you about something else but i know they keep making progress in medical technology. i am blown away that oscar muñoz was part of this conference call soon after having a heart transplant. that was unbelievable. >> and he has been in meetings, at least on the phone he has been in meetings and he has been more active, increasingly, even over the last two weeks. he had that heart transplant about two weeks ago, three weeks ago. >> holy cow. >> it's amazing the image of him with the doctors smiling and standing there. phil, real quick again, you cover all of these spaces, the airline, i mean, we are talking about trains, we're talking about, you know, ups and fedex and all sorts of transports that just aren't benefiting from the drop in oil like you would have expected. what are people in the industry saying? is this finally going to come through? is it positive? the transports have been dropping for more than a year

now. >> right. here is the problem, kelly, there is a benefit, no doubt about that, all of the industries that are impacted because fuel is such a huge cost component, they are benefiting from the lower fuel costs. the thing to keep in mind, however, there is a limit to how much of that benefit, you know, can come through to the bottom line. that's clearly what we're seeing with the airlines. when you look at passenger revenue per available seat mile it's still under pressure at least in the first half of this year, it's supposed to improve in the second half of this year due to a number of factors, that's when i think wall street says, okay, we are feeling a little more optimistic. there is no doubt they have benefited over the last three years as fuel prices have come down. >> for sure. an interesting move in the market today. phil, appreciate it. >> thanks, phil. >> phil lebeau. sometime for a cnbc news update. let's get over to sue herrera. >> hi. here is what's happening this hour. american airlines is canceling the bulk of its flights in the northeast ahead of that major snowstorm. all 654 flights from its charlotte hub have been canceled for friday.

the three washington and baltimore area airports will see flight cancellations starting friday afternoon through saturday. new york's three airports will see cancellations beginning saturday afternoon. a los angeles zoo employee has been rescued after falling into the gorilla enclosure this morning. a search and rescue team was called in to get the 61-year-old man out of the note. he was taken to the hospital with a possible broken leg. security video showing two thieves robbing a dallas area pharmacy. they cut open the safe and stole nearly $1 million worth of drugs. police are still searching for the suspects in the new year's eve theft. and thousands of infant car seats are being recalled because the carry handles with crack and break. the recall involves those manufactured between october of 2014 and july of 2015. the company receiving 74 reports of injuries. check the dates on those car seats. that's the news update. i will see you in an hour, back

to you. >> we will see you later. on heart transplants i always remember -- i'm trying to remember how long ago it was, might have even about 20 years ago when jack vogel he was to be the keynote speaker in chicago, he had to cancel at the last minute because he got a heart transplant. >> really. >> >> they found a donor. the next year he came and was the keynote speaker and said last year i was supposed to speak, but i had a change of heart and i'm here this year. one of my favorite all timelines. >> i feel bad laughing about that. >> but it worked out. he has done so well after all these years and we certainly wish oscar muñoz well with his heart transplant. unbelievable. 30 minutes to go. the dow up 160 points hanging on to the rally although off the highs, the s&p up 15, the nasdaq up 20. a leading trader will tell us what he is watching as we head to the close with this market hanging on to these gains. and the head of bb&t will give us the low down on the regional bank's merger and acquisition plans when we come back. stay tuned. al thing?

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securities. >> very important time of the day. >> what do you make of this bounce, is it real? >> i'd like to believe it is, bill, you have to be somewhat skeptical of that. it starts with congratulations to doctors brad and jessica tiger, they were married this weekend and i was in the tampa area, those crazy love birds. here is what you need to know. the real estate market turned around there, markets are cyclical, oil, i don't know. is this going to be what we will be talk being all year? i don't think so. we're settling into a level, we're starting to get to the spot where people will figure out exactly how to factor the new paradigm into their business model. i think that the other countries, the sovereign, some of the states maybe, but overall i don't think america is going to get hurt. you have the china problem, again, i don't think we will lose there, either. >> but what does that mean for the markets? a lot of people have said this selloff has been overdone because they -- we are not the ones that are suffering right now, unless you're producing oil or moving oil or financing oil, but beyond that, you know, our

economy is doing pretty well. >> certainly from a technical level you have to think we are in an oversold position right now. it's interesting. here we have been talking about focusing on the fact that it was earnings season. >> right. >> in point of fact the macro issues are dwar if i think the earnings. what was happening in december, we're waiting for fourth quarter numbers, now we are getting it and everybody is talking about oil and china and all these other things. a lot of things in play and still feels like this might be room to come in before they find that level for us. >> thank you very much. you scared the heck out of me. i didn't know where you were going with that wedding story. >> i'm with you, bill. >> thank you, gordon, very much. kelly. all right. bb&t shares meanwhile are down today, they missed earnings estimates this morning by 1 cent. revenues were up 4% last year mainly on acquisitions. kelly king is chairman and ceo of bb&t cooperation. been with bb&t for 42 years and he joins us now.

good to see you again, kelly. welcome. >> thanks. thanks for having me. >> i want to just begin with the fact your shares about 25% off their 52-week high, "new york times" saying one in five loans made by regional banks is exposed to energy, oil keeps dropping. are you guys being unfairly punished here or is there a legitimate reason for you and others to be concerned about the impact that these prices are having on the economy? >> well, i think there's a bit of overreaction that's going on now, kelly, with regard to the -- you know, the current events around the stock market. you know, the truth is up until christmas things were pretty good and then all of a sudden for two weeks after christmas it was like the sky is falling and when i look at it objectively, you know, while things aren't robust, things aren't as good as i would like them to be, nothing is fundamentally changed in the last three weeks to create all this doom and gloom. the fact is oil long-term is

very stimulative, the strong dollar is stimulative to imports so consumers get a double break in gas and purchasing power. so i think the consumer is strong. certainly those that are focused on the energy sector are going to struggle for a while, but i think there's a bit of overreaction. a bit of overreaction to our stock price today. we formed really well over the last couple weeks, we are a safe haven kind of stock so we had performed really well so we gave back a pill of that today, but those things tend to correct over a few days so i'm not particularly worried about that. >> you're still making acquisitions, you have another one that closes in april, thereabouts. what's the objective here? when will we know when bb&t is finished making acquisitions? what's your -- what's your final goal with all of these? >> well, you know, our long-term strategy, bill, is to achieve the kind of scale that we

believe we need to optimize returns in the new world and by new world i mean with the new regulations coming out of dodd-frank. so with the announced acquisitions we will be about $220 billion in size we really think we need to be about 350 or $400 billion over a few years in size to really optimize the returns for our shareholders because, you know, a lot of the money that we have to spend today on systems or processes or technology really get leveled up when you add more scale because you don't have to spend those same dollars again. >> right. >> you can expect us to continue to look for acquisitions along the same long-term strategy that we have had. we kind of have our plate full right now with two great acquisitions in pennsylvania susquehanna, national pechb. we will take a cause, get through that but i think long-term we will be a buyer. >> at the same time i know you are emphasizing that you think the u.s. consumer and economy

should emerge from this okay if not in better shape, but interest rates are -- they rely on global trends, u.s. interest rates just keep going lower, defying everybody's hopes and predictions that they would would go the other way. how much of a continuing head wind is that going to be for you guys? >> well, obviously low protracted interest rates are a challenge for the banking industry, but i think we -- and probably most of the better banks -- are kind of resigning ourselves that rates will be relatively lower for longer than we had expected. so, for example, we are only building one rate increase into our 2016 model, towards the latter part of the year. you know, it's not ideal, you know, you get some kind of low fruit increases in profits if rates go up, but we can do quite well without that. but it does for us a real need to be intense about expense management, but for bb&t, you know, we have these new markets. when you open up new markets,

you know, we've added over $30 billion of assets in the last year, we moved from 0 to number four in market share in pennsylvania. those new markets allow you to expand even if the market itself is very slow. so we have a multi-facetted set of strategies that allow us to grow and prosper even if the economy is slow. as i said this morning i do not think we are heading into a rescission. i think a lot of this is really overblown at this current time. not that things are perfect, but they are not bad, either. >> kelly, good to get your views on all of this. appreciate it. >> thanks. good to see you. >> ceo of bb&t. 17 minutes left in the trading session here and moving higher. the dow up 181 points, looking for art cashin in the crowd to see what the bias is toward the close, we will he let you know as soon as we know. the s&p up 18 and the nasdaq which started this hour negative is up 26 points right now. >> keeping a close eye on moves

in oil. big earnings announcement at the top of the hour, we have schlumberger, american express and starbucks. still ahead what new warnings that russian leader vladimir putin is taking russia to the economic point of no return, the risk coming up.

all right. so far so good for the bulls as we head toward the close with a gain of 154 points. it was up 270 points at the peak today, but, hey, they will take any gain today. >> especially after this month. >> some very big names releasing earnings in less than 20 minutes. we have mary thompson who will be telling us about american express, jane wells has what's brewing at starbucks and morgan brennan is tracking schlumberger. mary, start us off. >> the stronger dollar hurting the payment giant's results. ref niece dipping to $8.33 billion earnings dropping a dime from last year to 1.12 a share. what clients spend increasing 1.7% last quarter, climbing over 4% in the u.s. but dropping over 5% internationally. the fourth quarter results likely to take a back seat to the firm's outlook for 2016 and

'17 which will be given on the analysts call after the report is issued. investors anxious to know how the firm plans to reaccelerate revenue growth that's been lagging the company's long-term goals. jane, what's ahead for starbucks? >> well, bill, we will see if starbucks can provide some caffeine to the market. the street is going to want to hear how many gift cards were sold over the holiday, it was supposed to be big and how the company's mobile order and paying system is working as it has finally rolled out nationally and whether starbucks plans to open 500 stores in china every year for the next five years. the company is expected to post double digit growth, sales projected to rise 12% to $5.4 billion that will be a record. earnings per share to jump 13% to 45 cents on same store sales growth of 8%. we hope for updated guidance as coffee and milk prices have come down, something the stock hasn't done much of. back to you. morgan brennan keeping an

eye on schlumberger. >> that's right. schlumberger kicks off the energy sector after the bell. the oil services company is considered a bellwether for global oil and gas production, it's outlook will be in focus. commentary on oil prices plus cap ex, expectations for producers, how drilling is faring in north america versus overseas and also expect more layoffs. in december the company said it would take a $350 million restructuring charge that they are going to be adding to the already 20,000 jobs that have been cut in the past year. lastly updates on schlumberger $12.7 billion acquisition of cameron international, that stock is up today on the heels of higher oil but down 11% year to date. we will be tuning in. >> morgan, jane and mary, thank you for now, we will see all of you in a couple minutes. that will all happen after the closing bell. for now the dow is up 150 with ten minutes to go. >> art cashin just stopped by, he calls it a nonevent, it's

$100 million to sell going into the close here. >> all right. >> we will see what that does. will we hold on to these gains into the close? up next amy woo and david darst offer their take on the recent market volatility.

welcome back. we're close to wrapping up another day here on wall street. this one, though, could be a break from the recent trend because we're seeing some green on the board. the dow is up 148 points right now and for more joining us amy wu and david darst. >> i'm curious what your readings are on the market sentiment right now. had we gotten so oversold and we seem to be staying there, just bounce notwithstanding here. >> do you know what's funny is yesterday when we were talking to people they were saying, you know, i wish i had put on some protection. >> yeah. >> now today it's kind of like, this is your time to do it and people seem to be unsure whether or not they want to. i think that's just so telling which is for the levels of volatility right now it feels like there has been a lot because it's all about intraday but they still remain very reasonable. so my view has been, look, if you have the opportunity like days like today where the prices come in this is when you do put

on that protection because i think the same risk an uncertainties still remain exactly the same. >> tuning it's worrying -- you were talking about risks, i know you like to be i will lit ra testify, david, is one of those risks recession and if so here. >> i think you have the risk of a recession, you have the manufacturing sector is in recession, there is a risk of a profits recession and many countries around the world are already in recession, we're talking about russia, brazil, japan flirts are recession or very low growth. that having been said i think the keys for the next couple of weeks, whether this is just a bounce or a real bottom is oil prices. have they stabilized here? secondly, china, will china show some of the 4713 new year, is february the 8th. they have to do something between now and february the 8th. will they do it? and finally corporate profits, are they going to show up this yeek and next with a good outlook for 2016. that's going to determine

whether this is just a bounce or not. >> yeah. very quickly, how high does the vix need to go to tell us that we're getting near a bottom do you think? or are we there? >> look, the highest the vix has ever been is in the 80s and we are obviously -- >> we hit 40 in the summertime in august. >> truth. >> 31 yesterday. was that enough? >> do you know what, we have actually talked about this morning about the vix. the vix tends to be a concurrent indicator if not a lagging indicator. people love to make it predictive but that hasn't been the case and it tends to break down more in bear markets like in 2008. >> they say when the vix is high it's time to buy and it's said by men basically in chicago wearing wide lapels and platform shoes like they are in a john travolta musical. >> phil, it could be sound advice or some -- >> backward looking like their outfits. >> thank you, guys. see you larts. we will come back with the closing down doun with the dough

up 150 points. >> it's starbucks, schlumberger, american express all on tap. stay tuned. back in a moment. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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see car insurance in a whole new light. liberty mutual insurance. we've got 90 seconds to go here. miss answer is with me. let's show you the intraday. at the peak we were up 271 points on the the industrial average. we're up 146 right now.

for the year so far the dow still down 8.7%. wti crude now the march contract is the new front month, rally day up 5%, we are at $29.78. it did touch 30 for a time. we have the earnings coming out at the top of the hour from starbucks, american express and schlumberger. do you want to tell them what you said to me off camera. >> this is one crumby rally. >> that's sort of what you said. >> we had two of the best things that could possibly happen, mario draghi coming out and basically reiterating we will do whatever it takes, we have powers you can't even imagine and basically what happens here in the u.s. -- and implies by the way many people believe he wants the fed to basically back off. what do we do? we rally for four seconds and then they sell right into it. the only thing that saved us was a big turn around in oil as you pointed out and then it took the market up, but when oil stopped going up the market stopped going up and gently rolled over. oil up big, draghi promising the

big bazooka and this is all we can do. people who are enthusiastic about the idea this is the bottom, not a good day for them. >> up 118 right now. stay tuned, we have getty realty corp. and the new york city police foundation at the nasdaq. here come the earnings in the second hour of the "closing bell" with kelly evans. see you tomorrow, kell. thank you, bill. welcome to the "closing bell." i'm kelly evans. keeping a hawk eye on stocks here, looks like we're going out with gains on wall street. i haven't been able to say that a lot this month. the dow up 113 points, well off its highs, though, s&p 500 up less than 10 points at 1868, the nasdaq just barrel closing higher, closing at 4472 and we are expecting earnings results any moment from three key companies, among some other, mary thompson will bring us numbers from american express,

jane wells is covering starbucks and morgan brennan for schlumberger. first joining today's panel to talk about these crazy markets we have our own mike santoli along with cnbc contributor self knee link from tiaa cref, did he have grass so he will also join us off the floor momentarily. >> you heard bob saying, this is it, you throw mario draghi say i will do more, a big rebound in oil, a gain but not a convincing one. >> no, not convincing. i don't think really going to change anybody's opinion about what happened yesterday. in other words, there are people long, look, that was plenty enough evidence of a washout low, we got at least some refusal to go below certain levels and if you look at two years of the s&p 500 we've hung around a level we are at right now, only twice before, and it held. so i do think there is nervousness, but about a third of today's upside was energy, small cap energy, by the way, up 6% today. really it was not a lot of fundamental let me find great stocks to own. these things do start with short

coverings, with the most beaten up stuff going up the most. bank stocks weak i think to me is the most glaring negative to today. >> stephanie, did you get any solace from trading action today? >> not really because i think we have to see a couple days of stability in oil. we can't have down 7% oil, the next day up 6% oil. i think we need stability number one, with he need to hear more from companies number two in terms of earnings and what they're seeing. you bring up the banks, mike, they obviously dr they could be losers in this whole oil situation, that's clearly what's on people's minds, how much of their book is energy loans. they are clearly the losers, the rails are clearly the losers, union pacific today got hammered. and that stock is down 40% in the last 13 months. there were winners, airlines, discretionary and the energy stocks but i'm not sure that was real. >> i was talking to someone who said maybe people have finally realized low oil is not good for erk ma. is that overstating it or is

there more truth to that than we previously thought. >> i think it's overstating it. low oil is very low oil that refuses to find a bottom is not good for the capital markets, it's not good for big chunks of corporate america. i don't think you could say it's not good for america. >> it's very good for consumers, very good for consumers and if you listen to any of the airlines, i mean, they may not have posted great top line numbers, but those margins are seriously improved, right? i mean, delta, people were expecting a 15% margin they dlifd 18 and if i hadded 18 to 20 for the full year. they will be able to pass those it cost savings through and see that operating leverage. >> the airlines are not a big part of the s&p 500 so the overall market doesn't get the full lift from that unless you see consumers come through on their part. >> that's why it was interesting to see the discretionary stocks rally today. i don't think if it's real or short covering because they have had hit hard but across the board, department stores, discounters across the board -- >> welcome steve grasso off the floor. sir, what did you see happening today?

i mean, most of what we heard in terms of just taking the pulse of people around here is that they're selling these rallies. talk about the psychology. >> i think that was the psychology for the last couple weeks that everyone had garnered a lot of the headlines saying sell the pops instead of buying the dips. i heard mike say it earlier on air and i think this holds to be true, short covering rallies is how every rally starts. you have to see how long they maintain that short covering rally because people get spooked, they buy the things that are underperformed and say, what am i look to go do here? oil went from 110 to 26.5 dollars. what are you looking for? you have to buy something, are you looking for 20, are you looking for 19, do you have this so precise and specific end of the game play? >> right. >> that you are going to be right, you only know where it's going. i think this makes perfect sense. let's revisit it in a week. i know people feel a little bit better, but we are not out of the storm yet. >> let's take a quick look at starbucks shares, see if they are responding after hours to what looks like a beat on the

bottom line. it looks like the company reporting earnings of 46.cents a share relative to the 45 cent estimate there for the company. now, we will keep a close eye for the comps which people want to see almost 8% growth there for a company that was up, i think, about 3% on the session today. so a lot priced in. howard schultz not long ago on this program talked about his expansion plans in china which is the one country everybody has been worried about. we will see if there's any update on the 500 stores they plan to open a year for the next five years, but to reiterate, starbucks reporting a bottom line earnings per share number of 46 cents, one cent above the estimate and those shares are down by about 1%. let me just ask this oil whipsaw that we saw yesterday that we are now seeing today, the 96% correlation, steve, once everybody knows about that correlation does that mean perhaps it's finally run its could rs? >> no, i don't think so. i think that we are going to stay correlated to oil because

oil signifies that global growth, global demand that the market has been lacking or questioning when china goes from 11 to of and people saying that there's probably no growth there at all. i think oil there stay correlated. >> let's get over to jane wells. jane, what can you tell us? >> just a couple things you mentioned it they did beat a little bit on the earnings per share at 46 be cents. they had record -- record revenues of $5.37 billion. that is just shy, the street was looking for 5.388. they had 8% same store sales growth, a little better than the street, but china they uls only saw same stores sales grow 5%, the street was looking for more like 6%. it looked like full year guidance from what i've been able to see so far has been reaffirmed, no change there. they also said starbucks cards, dollars loaded increased 18% to a record $1.9 billion. i'm going to keep looking through these numbers to figure

out why the stock is dropping. it could be that china situation. i don't know. i will look through it and get back to you. >> jane, thank you very much. it also looks like there might be some weak guidance here to account for. guys, anything jumping out to you with of starbucks? >> first of all, top line slight miss, if nothing else that's something that you don't love. also this is a stock that had an all time peak in october of just over $63. there aren't that many stocks out there that are only down 10%. so i do think that it's not necessarily something that people are work looking to drive this thing to new highs because not that many stocks are necessarily sitting in that range. >> the whisper numbers for same store sales also started to move higher, maybe it was 8 to 9% kind of thing. i think 8% is impressive for a company of this side but when you're trading at 30 times forward estimates when you don't make those whisper numbers it's a slight dis a imt po. we have to hear what they have

to say about investment. this is what this company does. they will not use a top line beat in terms of their comp and plow it into the bottom line. they want to invest, focus on digital, technology, that's what makes this company so unique. actually i think if you see the stock pull back more i don't think 2% is enough, but i think it's a buying opportunity. >> looking through to hear what they have to say about their fiscal 2016. they mention global comp store sales growth somewhere above mid single digits. they introduced second quarter earnings per share guidance in the range of 37 to 38 cents on a gap basis. >> i think you have to beat and you have to raise substantially when you're trading at 30 times forward estimates. i think the stock is very well owned at this point, it's very well known as well, right? but i do think it's a good story for the long-term considering there's growing earnings at 15 to 20% when most consumer companies are having a hard time. >> fair point. by the way, still opening about

700 new stores in the americas, 900 in china, asia pacific, 200 more europe, middle east and africa there. so starbucks shares down by a little more than 2% after hours after those earnings and starbucks ceo howard schultz will appear on "squawk on the street" tomorrow at 9:45 a.m. eastern. there will be much more on these results. american express results are also out. let's get over to mary thompson. on an adjusted basis the company beat earnings expectations coming in with $1.23 a share, of revenues of $8.4 billion were slightly ahead of expectations as well even as the company said the strong dollar impacted its results. what's most important here, i believe, is the company's outlook for 2016 and 2017. the company is going to be cutting a billion dollars in costs and it now expects 2016 earnings to be between 540 to 5.70 a share, analysts were looking for $5.41. in a statement the company's ceo

says this reflects the outlook for 2016. a substantial benefit from the planned sale of costco co-brand portfolio offset by the continuation of elevated spending on growth opportunities. as well as the loss of of the partial year of costco related earnings, the portfolio transaction is expected to occur midyear. the company said that the reason they are cutting costs is the number of cyclical factors in the brord economy have been weighing on its performance an influenced its outlook. for 2017 it provided earnings guidance of 5.60 a share for 2017 and that would be below analysts estimates which stand right now at about 5.99 a share. again, so some of the headwinds that are facing american express taking their outlook down for 2017 and the 2016 outlook certainly to be positively impacted by the sale of that costco loan portfolio. again, which is expected in 2016 or midyear. the firm of course taking out costs by a tune of a billion dollars in order to shore up its results in the faces of

continued -- i should say difficult environment to grow revenue for the company. kelly, back to you, you can see its stock initially rallying on the news and then pulling pack a little. those cuss cuts should give investors something to hold on to at this point. >> i was going to say they do something which investors love, a billion dollars of cost cuts and something they hate which is bring down the earnings guidance for 2017 for american express. we're talking about the kinds of things getting factored into the shares and they're saying 5.60 versus 5.99 estimates. >> seems they are trying to reset the earnings trajectory for a while. look at american express and what the stock has done. it got down to 11 times the formal estimate. so they were not getting much of a premium for growth anyway in the stock. you might as well retrench and reset that trajectory. i don't know that the market is going to love it today. what do you pay for a slow growth blue chip that is losing its brand premium. >> let's go back to share bucks and see those shares which were down 2% after hours are moving.

more from jane wells. >> just real quickly, kelly, you had mentioned they introduced second quarter guidance saying no gap eps could be in the range of 38 to 39%, the street was looking for 40. the stock was up 3% during the day today. >> thank you, jane. steve, what do you think? >> starbucks there's not many other places you will go for that type of return on your investment. the chart looks great. as far as hitting some technical levels i believe the 200 day is somewhere around 56.25 or thereabouts. but i think if you get a chance to buy it lower you leg into it like you do with this market, you buy a 20% position, but starbucks is not going away. china's economy, this is not the area you have to worry about in china's economy. >> by the way, american express there, what would you do with that stock? >> the longer you are in this business and i think all of us can collectively say you never thought american express would be a cost efficiency savings plan when you look at the stock but i think you have to go

mastercard or visa, there is a couple other places to go in the area. the charts look similar, but no one is near the head wind that american express has faced off the costco head wind that we saw just a short time ago. >> let's flip over take a look at schlumberger briefly as well. if i'm correct here it is doing a $10 billion buy back and beat on its bottom line by 2 cents with 65 cents a share there. so one certainly to keep an eye on. before we get more the bad news continues to roll in for the energy space. let's get to eamon javers with details on this one. >> bad news or good news depending on how you look at it. this is a major win for the obama administration's environmental policies. a federal appears in washington, d.c. has rejected a bid by 27 states to block the obama administration's so-called clean power plan. that's a plan to reduce carbon emissions at power plants. it was vociferously opposed by the coal industry and a number of states. the court here this is a three-judge panel, the u.s. court of appeals for the district of columbia issuing a

brief order denying an application seeking to stay the rule while litigation continues. the battle will continue in the courts but for now what the court is saying here is that this rule will stay in place and that is a defeat for the coal industry. >> eamon, does this basically mean the baton is passed to the supreme court? >> i think what it means is they are going to have to sort this out in litigation, there's ongoing litigation on this. what they asked for the states and some of the coal companies here were interested in getting a stay of the obama administration new power plant standards. they wanted them to stop implementing that rule all together. what the court is saying now that that rule will be able to stay in place and those people who are planning for its implementation will have to keep planning for it. ultimately the litigation will continue as well on a separate track. this is just an incremental thing here but it means that the obama administration gets to continue to put its plan in place at least for the time being. >> eamon javers in washington. let's get more on schlumberger's earnings.

>> schlumberger reporting adjusted earnings of 65 cents per share, thatest 2 cents better than the 63 cent that the street was expecting, revenue of $7.74 billion just about in line with the $7.78 billion that analysts had been looking for. the company announcing a buy back program worth $10 billion that has been approved, it's also maintaining its dividend of 50 cent per share. some of the commentary here in the release that north america revenue declined 39% with land falling 45%. the company saying -- or the ceo paul gibbsguard saying the decrease in land activity was the sharpest seen since 1986 as cap expend spending declined by more than 40%. full year revenue for international areas holding up slightly better, that only declined about 21%. currency a big issues there. also worth noting that the company is for activity outlook

for 2016 that they are further reducing their head counts, they are expanding their incentivized leave of absence program and in the fourth quarter schlumberger recorded a $430 million charge associated with these head count reductions. before this release we knew they had let go of something like 20,000 workers, no details on how many more have been let go but a charge there. shares of schlumberger are up about 3% in after hours. morgan, thank you. really interesting that they were going to do a buy back of this size. they were completing the first $10 billion buy back, doing another $10 billion. i guess they don't have a choice. >> what oil company do you know that's holding their dividend and doing a $10 billion buy back, that's a best in breed company, they can and i think they should given the stock decline. i looked through the numbers briefly and all four revenue regions in revenue beat a

consensus, margins in three out of the four regions beat. this is a margin story. they're really great at doing that, at taking down the costs and getting pricing where they can. i don't think they got good pricing this go round but i don't think it's add good as people feared. i think this is a good report. i'm not sure it bodies well for the whole group. >> do you own this name or will you now? >> we own it, yes, i like it. i am owning in energy best in breed, number one or number two when it really gets hammered. i've been looking for more dividend stories where i think that they are covered, well covered, like a chevron, for example, but these guys are really delivering in a very tough environment and i think expectations are really low enough so i like it. >> well, the shares are moving up about by 3% after hours. we will leave it on that note, steve, thank you for joining us. much more coming up with steve and the "fast money" crew at 5:00 today, they are asking wall street's biggest bull why he could be changing his tune on the market. much more ahead here, we have starbucks earnings, details on that still to come including

whether this is now a buy on the heels of these results. plus it's not just big oil being devastated from plunging crude price. he will we will hear from one business owner in texas whose town has been crushed by the oil selloff. you're watching cnbc first in business worldwide. , with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained. and in albany, the nanotechnology capital of the world. let us help grow your company's tomorrow, today at business.ny.gov

welcome back. starbucks shares mother lowering, down 3.6% after hours after they missed revenue slightly. china sales also coming in a little less than expected. i spoke with ceo howard schultz last k week while he was in china and he was quite bullish on the growth opportunities there. >> over the long run we believe that we've got a significant opportunity to build a great enduring business here and i'm on the ground and i can tell you that all the noise and perhaps some of the propaganda is a bit overdone and i don't think people should draw the kind of conclusion that china is going through some cataclysmic event because that's not the case. >> well, let's get more on what this report and these numbers now mean. joining us on the phone is nick setlin. what do you make the results? >> thanks for having me, kelly. i thought it was a very, very good quarter. the north america comp actually

beat expectations at 9%, even the whisper numbers were in that 8 to 9% range, i was also looking for upside from the cpg segment delivering 16% annual growth. >> that's a consumer package group. >> and that's also the highest margin business which also drove the penny beat in the eps. me it was a little disappointing in terms of the comp at only 1% and their guidance which is not surprising because these guys are traditionally very conservative. they haven't raised guidance in a number of quarters now, although as the quarters progress and the year progresses they tend to beat and the numbers continue to come up. they are reinvesting in the business at an increasing rate, which only increases the ability to drive 20% or high growth. so going at the 2017/'18. so us it's not very surprising,

the stock might be trading down because the q 1 guidance which was a penny below consensus but that tends to happen given the seasonality of the business. >> so that's your read on how the stock is reacting here, just the near term guidance is not good enough? i guess what does that tell you about whether starbucks can hold its multiple at these levels? >> well, you know, we'll see what they will be able to do with the kind of rate that they're growing, high single bimgt comp in north america, mid single budget comp in china they deserve a 25 to 30 multiple which is where they are today. if you think about the fact that they are adding stores north of 30% per annum in china and still doing mid single digit comp even with all the capitalization that's taking place, if they were to cut that unit growth the growth is more supple. to me these guys are -- the momentum still there and who else is posting these types of

comps in this environment globally? >> nick, thanks for joining us. he has a $70 price target on starbucks and outperform rating talking us through those results today. starbucks shares are down 3.7% after hours. we will see what happens when the market opens tomorrow and also when starbucks ceo howard schultz joins the "squawk on the street" team in the morning in an exclusive interview at 9:45 eastern. don't miss it. it's not just corporate america feeling the pain from the crash in crude, up next we will get a firsthand account of how hard this has hit small oil producing towns in texas.

welcome back. low oil prices having a ripple effect across the country and our next guest is seeing the struggle firsthand. jill pots is the owner of summit oil field supply in texas. she joins us with what she's seeing in her town at her store. jill, welcome to you. explain what the last couple months have been like. >> the last couple of months have been -- people walk in our store and it's like there has been a death in the family. there is just a black cloud every single person that walks in. we want to have something good to look forward to, but we -- we are at a breaking point. i have a lot of people that unemployment is about to run out. >> what kinds of things do you sell and what are people buying these days? >> well, you know, safety is always an issue.

it doesn't matter what's going on, you are always going to sell the safety items because those are required. so that's selling a lot. we sell valves, hoses, fittings, just the general -- the general store, if you will, of the oil field and, you know, the larger items, they are finding a way to pull them out of somewhere else and use those. they are just trying to cut costs at every corner. >> jill, how long have you been down in -- there in the community? i mean, there's probably been booms and busts in the past, right? >> oh, sure, there has been. i've had this business for 11 years, we've only been down in the eagle ford for two years, we were in the barnett shell before that, and we've seen the boons and the busts and just this one has lasted so long and this up and down roller coaster of $4 up, $3 down, it's emotionally weighing on myself as well as -- as our industry. and i'm talking about the

subcontractors is who i really deal with, i don't deal with the big -- the big money guys, i deal with the guys that work for the big money guys, the small businesses. >> hi, it's stephanie link. i have just a quick question for you. when did you start to see the decline in sales, the decline in traffic? i'm just kind of curious because oil prices have been under pressure for so long but it just seems like this might have been a point or price level that got people a little bit more panicky. >> i'm going to go with about a year ago that really was a marked alarm on everyone across the board for us as well as the fracking and every point of the industry about a year ago marked a decline that we have not had any -- any rise from. >> jill, what happens now? for you guys now that there has been this drop in business are you having to -- you know, are you making wage cuts, are you cutting back hours? has it gotten to that point yet.

>> you better believe it. you better believe it, yes. if you want to know some true numbers, my sales are down 90%. it's catastrophic, if i can use that word. and my guys are coming in wanting to know how much things cost that we never really dealt with that before. i'm talking about $20 items. these are safety things that they need, but their wages have been cut so much and they still have to have these items that they are really in a position where they don't know what to do and if they're lucky to have a job their wage has been diminished so much. >> how long, jill, do you think you guys can stay afloat and are you getting any help from bank loans or do you have any source you can kind of turn to to help keep you going? >> i could, but i don't know that i would want to. the volatility of this industry right now is depressing for so

many of us that are on the subcontractor small business level. we have this breaking point, this magic number and for some reason all of a sudden we push it a little bit more because honestly this is what we know how to do. we don't know how to do anything else. i mean, if somebody tomorrow said to you, okay, the media is over, what are you going to do with your life, it's a tough deal. i mean, these guys are guys that their fathers taught them how to work in the oil field and now they do it. they don't know what else to do. >> a last question, jill. back when things were -- i'm sure there were times in the last couple years business must have been great. did anybody talk about we better enjoy it while it lasts and squirrel away your acorns. >> was that mentality at all that there's no way that this can keep going? >> oh, yes, this certainly is. that's why i'm still open right now, you know, if you put away enough acorns you can see it through but it just seems like from what we read and what we

see, the market is not going to be favorable for another year. well, you may as well tell my guys that's another century away because we don't have a year. the fellas that i work with don't have the 401(k)s that they can go dip into, these are guys that are living week to week and they don't know what to do. what's so frustrating for us is when we see a third of the oil that we consume still being imported while we are sitting over here on barrels of oil. how can that work for us? >> right. >> we've got to save ourselves and it just seems like that's something that isn't eminent enough for everyone. >> jill, thanks for joining us, giving voice to what's happening down there. >> you bet. >> best of luck. that's jill post owner of summit oil supply in texas. >> time for a consumer news update. kelly, thank you very much. here is what's happening at this hour. the national guard has increased

its presence in flint, michigan, by tenfold and is going door to door to deliver water and filters to residents. this is all in the wake of the ongoing contaminated lead water crisis in that city. more than 22,000 homes in flint have been visited by water response teams. democratic presidential candidate hillary clinton expanding her criticism of rival bernie sanders during a speech in iowa. she calls his ideas for a single payer health system impractical, saying, quote, theory isn't enough, end quote. a huge fire engulfing a tampa, florida, condominium complex earlier this morning sending flames shooting 20 feet into the air. luckily all the residents were safely evacuated but seven families were displaced. and it took an act of congress, but people are now welcome to sled down capitol hill. the capital police say they won't be enforcing a long standing sledding ban.

lawmakers instructed police not to enforce the decades old ban. >> and in about 24 hours they will have an awful lot of snow to sled down. back to you. >> we're wondering what happens here as well, sue. thank you so much. our sue herrera. we have breaking news on boeing. let's get to that with phil lebeau. >> boeing is cutting production of its 747, that production cut will take place in september of this year, that means it will be building just a half of an airplane per month, that's what it averages out to once production is cut, it's currently building one per month so they're going to cut the production in half on the 747. that means it will be taking $569 million after tax charge in the fourth quarter, that works out to 84 cents per share. this should not come as a surprise, the 747 like all of the really largest of the jumbo jets have been under pressure because of less demand internationally as you have newer planes like the dream

liner and other aircraft flying further, extending their range, there has been less demand for the 747 and now we're seeing it reflected in boeing announcing that it's cutting its production of the 747 in half starting in september of this year. kelly, back to you. >> and the shares, phil, thank you, down 3.5%. stay there if you would. stephanie, what are your thoughts? >> i'm not surprised, it's 747. if it was the 777 or 787, 737 those are more important to the grand scheme of this. but i'm not sure that you're not going to see some cut backs. phil, in those other lines, just begin the macro environment do you get a sense at all. >> stephanie, the order book is much stronger and much more extended with the other primary products, whether you are talking about the dream liner or the 7777. remember, they are making a new version of the 7777 that will be coming out soon so they're transitioning into that. the 737 max, we will start seeing deliveries relatively quickly with that. i don't expect we will see any

other cuts from boeing when it comes to production of those other models. the 747 we've been talking about this for some time, stephanie, you have talked about this as well, there's less demand by airlines around the world for those big jumbo jets. the idea now, point to point, that's what the dream liner i wish erred in, where you have smaller cities that can be connected and routes, you don't need the big hubs as much as you used to. >> when we think about the broader implications of this happening that is a big deal. >> it is and has been part of the story for a long time. i will join phil and stephanie saying i'm not surprised by this but the fact that the market was surprised -- >> wait a minute. >> it shows you maybe something about the environment. everything is red as this must be wayning demand from asia and all the other areas we were counting on, whether it's true or not that seems to be the response. >> klaus kleinfeld ceo of alcoa was optimistic about the

aerospace city. it was a wow in terms of the results. >> one last thing, kelly, everybody is optimistic about aerospace except for when it comes to the biggest of the airplanes. the a-380 is on its death bed, it needs more orders or at some point airbus will face more -- whether or not to pull the plug. >> iran is apparently ordering a bunch, right? >> that's the expectation. whether or not they order those a-380s that's the key. these are the biggest of the big planes. >> the really, really big ones. phil, thank you very much as we mention the market still not taking it well, boeing sharing down about 3%. we will keep an eye on those. will the fed be forced to follow mario draghi's lead if he puts europe's interest rates? larry kudlow weighs in next.

welcome back. let's take a look at how we finished the day on wall street. we were up almost 300 points at one point earl whyy in the session. the dow managed to hang on to half of those gains, we went out with a gain of 115 points, the nasdaq was up less than 1 point today. central bank activity seeming to drive the market action, stocks did get a point

after mario draghi highlighted in stim police in march. top names in business have been voicing their concerns. >> i think they've got to temper it a little bit given obviously the emotional state the markets are in. you hate to do that, you hate to think that your monetary policy is driven offshore markets but i would be surprised if we don't see more rate increases in year. >> it's hard to believe the impact people ascribe to moving from zero rates to 25 basis points in the u.s., but i think governor draghi has credibility here. it wasn't that long ago when he came out and said he will do whatever it takes. >> i think the first 25, 50, 75 doesn't have this tightening effect, as long as the american economy is strong they should raise it a little bit more. >> i think the next major move in fed policy will be toward a quantitative easing not toward a tightening. >> this will be a negative for the economy, this market

movement, and that will mean as we look at that that the fed should remain flexible, right. it shouldn't be so wedded to a path. well, joining us right now for more on what central should do from her ron kruszewski along with larry kudlow. welcome to you both. larry, you've been the one saying here don't get ideological, the fed made a mistake. so is mario draghi going to do the right thing here? >> i reckon so. i mean, none of the central banks should be tightening at least in an interest rate sense, none of them should, if they're data driven and you look at the economies, not good. commodity prices including oil are falling. in the u.s.a. profits have been declining. so if the fed is data driven, they should stop yaping about quarter point rate hikes every quarter for the next three years

which is what they were saying a week ago. just be on hold, just play it cool. right now the inflation rate a low, profits are low, commodities are low. just leave it be for heavens sakes. >> ron, would that be bad for your about is? are you in the please just raise rates camp? >> well, look, my business does well when the economy does well. so i agree with larry. i think that, you know, look, we have an effective tightening, the dollar increasing drives oil lower. both of those are deflationary and both of them are effective monetary tightening. so i think that to say that we're going to have three to five rate increases in this environment whenever one else is -- you know, basically doing easing is probably not a good thing. i think we should just sit tight and be data dependent. >> okay. >> ron -- ron makes a really good point. the u.s. dollar exchange rate relative to various indexes has

been rising since the end of 2011 and i think the net increase is about 30%. that actually does tighten financial conditions. a very, very important point that is often overlooked and that has helped nurture the drop in energy prices. now, in the short run the bads tend to come out first, the bad gs on energy, the bads on petroleum, the bads on companies going out of business. i get that, although our banking system is in great shape, but in the median to longer run the goods start to come out, lower energy prices are fantastic for industrial companies. >> that's what we're hoping, yeah. >> and consumer -- and consumers themselves. that's 90% plus of the economy will benefit from lower energy prices, and don't forget when the republicans sweep next year we're going to have big drops in the corporate tax rate so you're going to have low energy prices,

lower corporate tax rates. actually, i don't know, if i were in the short-term business which i am not, if i were, i might want to actually do a little buying here. >> all right. larry, speaking of the bads while we have you, earlier today secretary of state john kerry made some comments on consumer that are causing quite a stir among members of the gop. take a listen. >> i think that some of it will end up in the hands of the irgc or other entities, some of which are labeled terrorist, you know, to some degree i'm not going to sit here and tell you that every component of that can be prevented but i can tell you this, right now we are not seeing the early delivery of funds going to that kind of endeavor at this point in time. >> secretary kerry in an interview on cnbc referring to the possibility of money ending up in the hands -- just one moment -- of some of those mall actors there. republican officials including

house speaker paul ryan turned to social media to criticize the iran deal and the republican national committee put out a statement saying this is, quote, aimed at democratic presidential candidate hillary clinton. secretary kerry admitted what we suspected all along that the nuclear deal hillary clinton spearheaded with iran is a giant stimulus bill for radical islamic terrorists. larry, what do you think? >> what do i think is this, we should not -- we, the united states and the allies -- should have taken a good year or 18 months to watch the behavior of iran with respect to the nuclear deals because iran has a history of lying and cheating and dis sem blng. so you're going to give them $100 billion soon, maybe more, they are going to use that money to sponsor terrorism, to kill israelis, to kill americans. we should have put that out for at least a year or so --

>> okay. >> and the second thing is, just real quick, kelly, democratic senators are blocking a vote to have a moratorium on new visas. i think that is completely wrong. the fbi said this. the defense intelligence said this. we have no way of knowing who these people are except that isis wants to come to the u.s. to do damage. so i wouldn't give iran a dime and i would have a total moratorium on new vees cass and new immigrants coming into this country. we are at war, let us not forget that, please. >> larry kudlow, thanks for skroing us, ron can a she have ski, come back, they will have a fuller discussion on the full impact to your business. >> i love listening to larry. that's fine. >> that's why we have him on. thank you both. appreciate it. jpmorgan ceo jamie dimon getting a big raise.

details when we come back.

welcome back to "closing bell." jpmorgan paying its ceo jamie dimon $27 million for 2017. that is a 25% raise from his

2014 pay. approving members to the company's bylaws. jamie dimon getting a hefty raise for 2015 earning $27 million. >> no wonder he was in a good mood this morning. the russian ruble getting slammed over the past month. more and more markets are focused with oil prices dropping. we'll talk about whether the economy there is on the brink. its sleek design... is mold-breaking. its intelligent drive systems... paradigm-shifting. its technology-filled cabin...jaw-dropping. its performance...breathtaking. its self-parking...and self-braking...show-stopping. the all-new glc. mercedes-benz resets the bar for the luxury suv. starting at $38,950.

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i will take brilinta today. tomorrow. and every day for as long as my doctor tells me. don't miss a day of brilinta. welcome back. crude spiking today but its recent collapse along with the falling russian ruble is causing concerns russia won't have enough money left to support its economy. >> i don't think you can underestimate how bad the situation is in russia right now. you've got oil well below any measure where the budget can survive, where the economy is doing well. then you add on top of that, you have sanctions coming from the west. so russia is in what i would say is a real serious economic crisis. they just don't have the money to support the ruble. so russians are suffering. >> joining us for more is professional of international

affairs at the new school. it is good to see you again. the news flow keeps getting worse. especially for the russian people themselves who seem to be paying more and more for access to less and less. how much worse could this get? >> it can get much, much worse. it's bad but the russian argument or the russian government is arguing the promise was the russia economy would contract 5% and only contracted 3.5%. next year will only be 1%. this negative news is being presented as positive. putin does present himself also as a good stern ship for the russians because he is trying to control the situation. >> what happens if it becomes disorderly? >> it seems as if the currency has been weakening in this steady but kind of ordinarily way. it's not something that really has taken the banking system or the markets by too much surprise.

i just wonder in the heart of the ukraine crisis, putin told his people it's going to be two tough years. didn't he say with these sanctions, this is what we have to do? >> i was going to mention it any way if you didn't ask me. thank you for bringing it up. putin still has another year, year and a half to say look, i told you it's going to be two years. i told you the west is going to try to screw us over any way it can and so it does because now there is all this bad news from london with the new inquiry about ail commandlexander litvig

killed. >> russia has been on a steady increase of a better life for 25 years. if i look back to the soviet times it can get really bad. it can get as bad as flint, but they are not going to protest. >> a reference to the crisis there nina, appreciate you joining us talking about russia. everybody concerned here as to the next moves in these markets. that does it for us on "closing bell." "fast money" is up after this. me that can help your company grow steadily and quickly. great job. (mandarin) ♪ cut it out. >>see you tomorrow. ♪

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"fast money" starts right now live from the nasdaq market site overlooking new york's times square. i'm scott wapner in for melissa lee. tonight, is the world's biggest bull about to wave the white flag? tom lee is here and says he knows the one thing the bears are missing about stocks. he'll explain. >> plus starbucks falling on weak guidance despite an earnings beat. we'll hear from ceo howard schultz and his take on the expansion plans in china. >> deutsche bank hitting a new all-time low. what'seh