second quarter in a row, can get more fundamental guys involved. valuation be damned. >> microsoft? >> microsoft very similar. still very popular. see if the cloud is still working for them. d.r. horton monday also important. >> good stuff. guys, enjoy the snow. great weekend. "power lunch" starts now. scott, thank you very much. welcome to "power lunch," everybody. along with michelle caruso-cabrera, i'm tyler mathisen. >> stocks have started the day off very bullish, but they have fallen back to earth a bit. right now the dow jones is higher by 159. nasdaq is higher by 2% and the s&p 500 by 1.75%. >> straight ahead this hour, something may be bubbling on wall street that will force the already beaten markets maybe even a little bit lower. >> and when big energy companies start reporting their numbers, will things be even worse for those stocks than they already are? big question there. but we're going to start with today's rally.

it actually doesn't feel like much of a rally. >> if this is a rally, why don't we feel better? >> why is that? it feels so complacent about what's happening with the markets overall. there are a number of reasons why there are traders out there who believe that, yeah, this is nice and a small victory for the bulls, but that maybe there is more downside ahead and there have become a number of reasons why, we'll highlight just a few of them to give you an idea, a sense of what they're talking about. traders are talking about what's happening with the 10-year yield. interest rates on risk free treasury securities in the united states, the 10-year u.s. treasury yield still hovering around that 2% mark. 2.06% the last trade. we are off the lows we have seen with all the volatility in the markets but still it used to be 2.3% back in december when the fed tried to raise interest rates. a macro factor. let's go down the funnel to the stock market and maybe sectors overall. check out what's happening overall with the transportation stocks. those are going to be a big focus because people look at them as a gauge of the economic

activity in this country right now and for a lot of those stocks, they are seeing marked will you lower prices and have for the last six months. this big divergence between the s&p 500 and transportation stocks is still weighing on sentimentness and then one more to round out the three. if you take a look overall at what's happening with the f.a.n.g. stocks, facebook, amazon, netflix, and alphabet/google, big performers, large cap, mega cap -- the heavyweights with a lot of market cap ex poe sure are the ones that are not really helping things out this time around. a reason some people don't believe as much in this rally. >> that last point explains a lot, dom, because we focus so much on those. when they don't move, it doesn't feel like much. all right. we've been talking about this for weeks now, china growth fears, plunging oil, fears about

high yield bonds. are sovereign wealth funds to blame? are they the next shoe to drop in bob pisani joins us from the floor of the nyse and mike santoli and jack ber rurouroudj. >> stocks have been dropping all over the world for several weeks and uniformly dropping. telecom stocks are down. stocks in japan are getting hit. they're a huge beneficiary. what cause would explain this effect of stocks coming down around the world almost uniformly? somebody is out selling fairly large portfolios. one possible culprit would be sovereign wealth funds. i'm talking about particularly oil sovereign wealth funds. your saudi arabia, your kuwait, your qatar, those kind of funds. collectively they control about $4 trillion in assets. i'm talking about liquid assets, not illiquid assets.

they are known to be under pressure to keep their budgets going, and at this point it's logical to start asking questions about whether they've been big sellers in the last few weeks. unfortunately, they don't put out press releases on this. >> mike santoli w do you ma, wh make of what bob is saying. all these guys accumulated all these petro dollars and started investing them in the markets to generate returns, diversify the economy. now, of course, they have to pay the bills as bob points out. it would make a lot of sense that this would explain some of the selling. >> yes, it would. yes, the absolute amount of money managed is tremendous by sovereign wealth funds. not a whole lot of it in equities, so i think the idea of this direct selling of sovereign wealth funds into equities, jpmorgan estimated for the entire year of 2016 net selling by sovereign wealth funds could be $75 billion. not a very large number at all, but i do think the general dynamic is absolutely in place. fewer dollars leaving this country to buy oil, less --

fewer dollars in circulation around the world because global trade has slowed down so much. so you have net exporters and countries that have less dollars to work with. they're turning what they have into dollars, some of that is equities around the world. >> let's assume some of it is equities, but where is the rest of that money if not much of it is as michael points out in equities, where is the rest of it? in government bonds or in corporates or where? >> nope. notice real estate. it's in private equity. it's one -- >> but they can't sell that quickly. >> that's the problem. and they're not liquid. that is exactly the problem, tyler. it's one of the reasons -- and that number, that $75 billion number is low estimate and a low number. the top ten revolsovereign weal equalled $6 trillion in assets. that's talking about russia. we're talking about saudi arabia.

we're talking about countries that as bob pointed out, and he was spot on, are having huge budgetary issues. now, we're not only talking about the state's capital. we're also talking about private portfolios. many of these countries are run by oligarchs. you're talking about liquidation of people that have $100 billion in net worth. that money is also going home. this is a stealth liquidation. it's one of the reasons we haven't seen any rotation, any real rotation. >> you know what, guys, we have real evidence that this is happening, i think at least. the qatari shutting down al jazeera. now, maybe that -- >> that's exactly right. >> that investment maybe didn't return what they expected in terms of ratings, however you don't think the falling price in oil helped them make that decision. >> put pressure on them. >> and look what happened to saudi arabia -- >> it's only a question of how many more. once we took out $40 in crude, all right, both in brent and

wti, the entire world changed. until we find stabilization, it feels that instability will stay with us. >> and the saudi arabian budget, that was announced two months ago. there were drastic cuts there as well. they're clearly under a lot of pressure and need to raise money. >> they have started raising gasoline prices and getting rid of subsidies there because they're so desperate. thanks, guys. >> the east coast is bracing for, have you heard, a blizzard. thousands of flights already canceled across the southeast, mid-atlantic states. this is a live shot of reagan national airport in the d.c. area. my hometown. d.c. can handle snow, man. they know what to do. >> they cannot. >> they know exactly how to handle it. the farther south you go, the better they are, charlotte, richmond, raleigh. they can get more than 30 inches of snow in d.c. that would be an all-time record. there is a blizzard warning for the new york city area as well. it starts at 4:00 p.m. saturday and it will run until noon on

sunday. new jersey, new york, connecticut expected to get a fairly modest 6 to 10 inches of snow. we've really had none so far this year. think back to last year when boston was walloped the way it was. storm right now moving through western virginia, the carolinas, before it marches up the east coast for the first nor'easter of 2016. >> am i allowed to say the federal government barely works on a good day? >> the d.c. government are closed. did anybody notice? yeah. my uva cavaliers were supposed to play syracuse tomorrow night, they canceled the game. we'll be watching, flipping between that and the nfl game. dom chu has an alert. >> those of news connecticut, we know how to deal with snow. let's bring you up to speed on what's happening with rig counts. baker hughes says total u.s. rigs are down 13.

the key number oil rigs are down 5 to 510. oil rigs in the u.s. down 5 this week to 510. this represents the ninth out of the last ten weeks where rig counts have declined. also pointed out that canadian rigs up 23 do 250. so the headline u.s. oil number, michelle, down 5 rigs to 510 for this past week. back over to you. >> thanks, dom. check out this incredible picture. the ceo of athena health carrying out cpr on a person who suffered a heart attack in the street. that ceo, jonathan bush, joining us live first on "power lunch" to talk about it. tell us about one red hot area of health care as well. you're watching cnbc. jonathan, enjoy that coffee. first in business worldwide. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be.

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here i come! can't find you anywhere! don't settle for u-verse. x1 from xfinity will change the way you experience tv. welcome back to "power lunch." i'm michelle caruso-cabrera. general electric out with earnings beating on the bottom line but revenue coming in short of expectations partly due to the strong dollar. apple rallying 4%. piper jaffray recommending investors buy ahead of earnings next week saying the stock could jump 50% by the time of apple's anticipated iphone 7 launch in september. suntrust out with earnings. the bank beat estimates despite a decline in wealth management revenue. hi. dominic chu, market flash. >> chu, nothing but chu. >> all right, guys. suntrust, interesting those shares were down despite that earnings report here.

home building stocks also having a very strong day following a big jump in monthly sales for existing homes. shares of hov nannian, d.r. horton, and pulte group up. back over to you, ty. >> dom, the ceo of athena health can add the title of hero to his resume. i bet he's chuckling at this. take a look at the picture. it shows jonathan bush springing into action to administer cpr after noticing a man collapse on a street in san francisco. he reportedly suffered a heart attack. mr. bush applied mouth-to-mouth breathing while another bystander did chest compressions and thanks to their quick action, the man began breathing on his own and was rushed to a local hospital. first on cnbc is jonathan bush, chairman and ceo and president of athena health. the irony of all this is you were in san francisco, jonathan, visiting for the jpmorgan health care conference. tell us how this unfolded and what happened on that street

that day. >> well, tyler, thanks for having me. i hope we don't spend too much time on it. anybody would have done it who new cpr. we were talking between meetings up the embarcadero or from the embarcadero to our office on hawthorne street and the guy was rolled over and, you know, a lot like the health care system. everybody sort of looking at it going what should we do here? and i'm like, you know, roll him over, and sure enough, he had turned blue and -- >> had you had training in cpr? >> sure, my first job in health care i drove an ambulance for the new orleans health department. best job i ever had. >> do we know what happened to this gentleman? >> we don't and we called and they said for patient privacy they're not allowed to say. >> patient privacy -- >> not a lot of guys who have dropped dead of a heart attack make it. i hope we did. we did get him back duringc pr but you don't know. >> congratulations on your quick action and you heard about jamie foxx pulling a guy out of a car, a burning car not long ago.

these things happen and you just have to -- >> i always get compared to jamie foxx. >> people will mix you up. >> yes, yes. >> i can see how people would mix you up. shall we talk a little bit about business? how is business and what are you looking forward to this year? >> well, as you guys know, the big idea behind athena health, the creative fant sasy is to create a health care internet. a chunk of the internet that safe enough, secure enough, connected enough to the offline world that the mainstream of us would trust us. for us it's that proposition but for doctors, hospitals, patients, nursing homes, the whole health care supply chain. so the big deal for us was we got our toe into -- here to fto we've only served the doctor's office. we now are for the first time entering the hospital during --

tyme at jpmorgan a year ago we announced the acquisition of a small cloud-based hospital i.t. company. we then dismantled it and built it into our core athena one services so that hospitals, very small ones initially, can basically not have to have an i.t. department, not have to have a billing department, not have to have much of a medical records department but can just join our network as if they were a little clinic. the big news for us in this year in 2016 is we're able to get to work on a larger hospital. so university of toledo medical center in its infin gnat wisdom, who knew that the health care internet led -- the road led through toledo, has agreed to be our alpha partner on our first real academic medical center setting that will be the first cloud-based medical center in the country when we're done getting it set up. >> jonathan, what do you make of the markets lately? >> i can't follow them. thank god we have you guys to obsess all day.

i don't know. i know things are great in athena land. it's not like china made health care more efficient so no matter what they do, the opportunity to clean up all the mess that doctors face -- you know doctors are dieing in this doesn't because they can't be doctors. such a huge percentage of a doctor's life is not doctoring. just this whole idea of when you send a patient to the hospital from your office, the new chart is created in the hospital that's not connected to yours and you don't know what's going on with the patient in the hospital. this is absurd. we know exactly where our fed ex package is but we don't know as a doctor is what going on with our patient in the hospital where we sent them. nothing going on in the larger market regarding currency or inflation or production in china is going to affect the ability that we have to knock it out of the park on our core business. >> what about a slowdown in the economy -- wh at if there's a slowdown in the economy and that means there's less capital expenditures at places like hospitals and medical centers. >> we love that. as a cloud-based business

service we don't ask for any capital. you know, just recently the top management at university of denver medical center quit because they had to put $170 million into an enterprise software system they couldn't make work. we don't ask for any capital. and these little hospitals wouldn't have it anyway. >> so they pay a monthly fee? >> yeah. >> you're a vendor. >> give me a percentage of what it costs you to do your own billing, i will do it for you and i will use my system. a side effect of my business service is you get a new system. >> let's talk -- i want to get your quick thought, you talked about hippa and the fact that medical establishment could not share with you i assume his name or medical condition without his permission. have we taken -- >> which he may not be in a position to give ever. >> have we taken that too far? >> no. i mean, in general the good news about our society is we do take things too far. something doesn't work, congress gets together, over fixes it, but then our ability to invent

exceeds the complexity that we create. health care has been way behind. so for the last 25, 35 years health care has had negative returns to investment, capital investment. you actually get less efficient with every dollar you put in. every other industry is the other way around but we're catching up. we needed the internet to work in health care. it does work now. we have access to millions of paid claims data. athena net alone has more patients connected in one database than the entire national health service of the uk so we're getting over it. it was annoying but we're getting over the obstacles of hippa and we have the social benefits of protecting people's privacy. >> jonathan, thank you very much for being with us and congratulations on your quick last week. >> thanks a lot for checking in. >> i hope that guy is okay. coming up, football and the state of small business. this guy knows a lot about both. former miami dolphins quarterback, nfl hall of famer dan marino. he's going to join us to discuss his latest venture and who he's picking in this weekend's playoff games, of course.

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call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. welcome back to "power lunch." i'm michelle caruso-cabrera. a rally on wall street today. check out the dow, the biggest movers, apple, goldman, and disney leading the way. american express the biggest loser and overall the dow is up 176 points. sue her rare herrera is standing by. with this big winter storm,

united is updating what it is going to do to its major hubs which include liberty newark and dulles. united airlines is saying it will start to shut down operations this afternoon at liberty and newark and also dulles and a few other airports in the washington metro area. they're canceling operations in the new york city metro area which is liberty newark. so liberty newark here in new jersey and also dulles and surrounding airports that united continental services will be shut down, ty, later this afternoon. >> all right, sue. here it comes. batten them down. if you know football you likely know footbaldan marino. the former miami dolphins quarterback making a name for himself in the business world and dan marino joins us live from ft. lauderdale. good to have you with us. >> hey, guys. how are you doing? >> i want to get to how you jive

your investment with anthony coal fired pizzas with your endorsement for nutrisystem. we'll get back to that. one works one way, the other works the other way. >> i get it. >> let's talk about the game this weekend and particularly about the duel or the rivalry between tom brady and peyton manning. this will be the, what, 17th time they have met, many of them in the playoffs. who do you think is going to come out the winner today and why do you think brady has had the better of manning in so many of those contests? >> well, i tell what you, i think it is going to be a great football game obviously with two great teams that are playing in the afc championship game. you know, there is going to be that advantage for denver because they're playing at home. you know, i love both of these guys because of just their careers, how they play, they're both going to be hall of famers, they both won super bowls. you know, how it's going to play out, i don't know. hopefully it's going to be a tight game going down to the

wire for the fans because everybody loves football. >> is there a reason brady has such an advantage head to head. is it as simple as he's had the better team or could he be getting in the head of peyton manning? obviously he doesn't play against manning per se. >> yeah, exactly. i doubt very seriously it's getting in the head of peyton manning. i mean, he's played 18 years in the league. i think over time it's the fact that new england has played a lot of those games at home. the fact that tom brady and bill belichick, that continuity, you know, the great coach/quarterback combination for all those years, and, you know, peyton has another chance this week, but it's been a great rivalry as far as, you know, the quarterback match-up but you said it right. they don't play against each other. >> what do you make of l.a. getting a team again and the nfl going back to l.a. after all these years? is that a good move? >> you know, i feel bad for the people from st. louis, you know,

because, you know, the loyalty a lot of those fans have had there. i know the nfl has been talking about getting a team in l.a. or maybe even two teams in l.a. and, you know, it's something -- it's the number one market in the united states, so they do their homework on it, and i kind of like the fact that they're getting a team in l.a. >> so you have just made an investment, you're now an equity partner in anthony's coal fired pizza which tyler brought up earlier. >> yeah. >> why did you pick this as an investment? >> well, you know, first of all, it's been a while. my original investment in the company was in 2002 with anthony, and anthony had one coal fired pizza, and now there's 50 coal fired pizzas in florida and in delaware, philadelphia, pittsburgh, new jersey, long island, and we're putting one in boston next week actually -- or second one in boston. how i did it was really relationships. you know a guy that i trusted. anthony was a friend of mine before we got into business

together. he is a superstar when it comes to the restaurant business. he's been in the restaurant business since he's been a kid, and it turned out great. you know, what i love about it is to see it grow and how it's affected people that work there and we're employing a lot of people and it's just been a lot of fun. >> there's one very nearly in clifton and i will have to check it out. i just haven't gotten by there yet. you have had a lot of investments over the years and this one a successful one. some investments like most of us don't work out as you would like. what have you learned from your investing successes and your investing mistakes? what has distinguished the ones that worked from the ones that went blooye? . >> you're right. everyone is not perfect when they're investing money and we all make mistakes in life especially in business and how we handle our financial situation, but i think it's doing things with people that you trust, people that love what

they do and have a passion for what they're doing and something that you're interested in. you're interested in the restaurant business like an anthony's. you know, anthony, if you see anthony in action, it's amazing what he does and what he's been able to create with all the employees and the people that work in this business. it's really having a passion for it, doing your research, understanding the people that are in that business. >> i bet you learn a lot more from the failures though, right? >> well, yeah. you want to try to forget about the failures. it's like a quarterback throwing an interception. you just forget about it. >> let me ask you, i'm going to get two for the price of one here. i want to get your picks for this weekend's game and you were known as probably the greatest passer of your era. i wonder who you think the greatest passer is today, may or may not be the greatest quarterback. >> well, that's an easy answer to that question. aaron rodgers is probably the greatest thrower of a football

over the last years that he's been playing, and there's a lot of great quarterbacks in the nfl and he is definitely one of them, and he's going to be a potential hall of famer some day. but as far as his flat out throwing the football, arm strength, location, velocity, it's that guy, aaron rodgers. >> what are your two picks this weekend? >> so i'd like to see denver win, and i think my pick on the other game is going to be carolina because they're playing at home. i think, you know, they're a strong team, the way they play. cam newton is having an mvp year. he's going to be tough to stop. and i'm just looking for two really good games because i love the game of football. >> dan, thank you very much. glad you're with us and hope you'll come back. >> hey, guys. thanks. appreciate it. have a great weekend. >> you, too. dan marino. it's nice down there in ft. lauderdale. >> the weather is a hell of a lot better than where it's going to be for the football games. gold prices closing right now. let's show you what's going on. last i checked they were higher

and -- it's gone pretty much flat. lower by $1.90 for comex. $1,096. silver, copper, played pallad m palladium. a little higher for silver. "power lunch" is back in two minutes. a little higher for sil. "power lunch" is back in two minutes.

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welcome back to "power lunch." i'm tyler mathisen. another rally today. the dow up about 170 points as you see right there. 171, about 1%. the nasdaq the biggest winner up more than 2%. 2.25% to be exact. wild trading week, of course. telecom the biggest gainer among the sectors. it's up about 4% for the week and about 2% today alone. let's get to sue herera for your news update this hour. hi, sue. >> hi, ty. here is what's happening right now. the obama administration intends to clamp down on oil companies that burn off natural gas on public lands. new rules will seek to reduce harmful methane emissions as president obama addresses climate change. energy companies frequently flare or burn off vast supplies of natural gas at drilling sites because it doesn't make as much money as oil.

a major winter storm, as you know, moving up the southeastern seaboard and along interstate 81 snow began falling overnight. in rhone no contest crews were starting to clear the snow before day break. a bomb threat caused a scandinavian plane to divert to an airport in as we hadden. air traffic was interrupted briefly. pope francis receiving apple ceo tim cook at the vatican this morning. the two exchanges gifts. cook came to italy following the announcement of a new apple development center in naples. you're up to date. that's the cnbc news update this hour. michelle, back to you. >> loved to have been a fly on the wall in that situation. >> the pope uses a droid phone, i'm told. i'm just kidding. stocks are holding onto

solid gains. we're in positive territory for the week believe it or in the. this is katy nixon from northern trust management and kate moore, chief investment strategist at jpmorgan private bank. two days in a row we have gains. does that mean the worst is over? do you believe this rally? we were highlighting it doesn't feel like much of a rally. >> it really doesn't feel like much of a rally. i think we've had some stability off a low base but we're telling our clients to expect more volatility in the months to come. some headwinds you referenced earlier, a china slowdown, rout in commodities or fears of a global slowdown will be with us for some time. i think we should expect more volatility. >> and the volatility that's happening, is it because those things can be cataclysmic if they go very poorly or is it simply we've got to find out on the other end what the real story is and then we all can settle down? >> that's a good point. we don't think there's anything cataclysmic on the horizon, but what i do think is that the

outcomes are just more uncertain now. the tails are fatter and that unsercht is being priced in equity markets. >> kate, how much of the u.s. stock market's travails over the past six, eight weeks is related to tightening of interest rates and how much is related to worries about china and so forth? >> look, we think the biggest drivers of the weakness in the market over the last few weeks really have been china and concerns over policy missteps as well as a real uncertainty about the impact of lower oil prices on many different asset classes, not just the commodity itself. you know, as we're thinking about it, we also, like katie, expect there's going to be some volatility in markets for the foreseeable future. one thing that makes me a little bit anxious about the rally over the last two days is it seems to be very policy rhetoric driven, and for the last seven years, that's what we've really been focused on. every time there's good news from apolicy maker or a promise, markets breathe a sigh of relief. i want to see the next leg in

equities really coming from confidence in the fundamental story. >> talk is cheap. you're saying that the draghi comments the other day is what triggered the bounce. >> i think that was a reason that people were more comfortable reversing their shorts and maybe taking a little bit more of a long position, but i would suggest that going into the fomc next week we can't expect the fed to promise to hold off on raising policy rates for the balance of 2016 as long as the labor market and the u.s. macro picture remains strong. that means what then? so many have come on and said the fed is going to have to blink here. draghi gave them a pass so they can blink. if they don't, do we get selling? >> there's a chance we could get selling. look, i think if the fed meaningfully changes their language, it's also going to reduce people's confidence i think that the fed really know what is they're doing and they're not reacting to asset prices and they're reacting to the metrics and to the economic data that they promised they

were going to react to. so i want to make sure that they stay the course and keep a steady hand. if the market reacts negatively to the fact they don't change the tone of their language, well, you know, we'll just have to take that. i want the fed to feel comfortable normalizing policy because the u.s. economy is in pretty good shape not being very reactive to changes in asset prices. >> katie, one quick question. kate referenced oil. why hasn't oil's fall helped the u.s. economy the way everybody seemed to think it would? when oil goes way up, it hurts the economy, when it comes down, it should be good, but it hasn't really. >> well, we know there are more consumers than producers here, so it should be a relative tailwind but the problem is it happened so quickly and so suddenly i think it's been alarming. you don't often see these kinds of moves in commodities without a recession. so i think it's really heightened anxiety, frankly, which is why you see the energy dividend being put in the bank. >> we're always asking oil, is

it a tailwind or a tell? a tailwind or a tell? you think it's a tell it sounds like. >> yes. >> okay. katie and kate, two ladies, good to have you on. northern trust wealth management and kate is with jpmorgan's private bank. you can go to powerlunch.cnbc.com right now, see what kate and katie say are the biggest risks to the market. that's powerlunch.cnbc.com. all right. folks, let's get a check on the bond market in this rally for equities. rick santelli at the cme. yields up a little bit today, rick. >> yes, they are. they're up a little bit today, but really if you really look at a macro, yields haven't moved in a huge fashion over the last couple months. but if you look at intraday of 10s, tyler nailed it, we're up. but the important thing is a 205 field, we're up on the day. we're up on the week. we settled at 204 last week. october 1st of the chart clearly shows you 2% is important. look at a two-day hyg.

july of '09, wednesday was the all low going back to that period but it has stabilized. dollar index you ask? once again watch 100. a lot of derivative-type trades that will get triggered should we close above that. michelle, back to you. >> all right, thanks so much, rickster. >> sue herera reporting a few minutes ago the oabama administration will try to clamp down on oil companies that burn off natural gas on public lands. morgan brennan has more on what could be a major change in policy and have a big impact on energy companies. morgan? >> it certainly could, tyler. and it comes at a time when we've got natural gas at $31 a barrel. so a lot of energy companies saying this is going to feel like more pain. so the obama administration basically proposing these new rules that would curb how much oil companies are flaring in terms of natural gas at well sites on public and tribal lands. this as the president looks to address climate change. the rules would attempt to limit

flaring at oil wells where producers have been burning gas because there's not infrastructure to take in that natural gas and, b, because prices are so low it's been less expensive, it's been cheap for them to actually burn that gas off. so operators would be required to check regularly for leaks, replace equipment, basically use that gas to power operations at those sites wherever possible and potentially pay royalties for any gas they do decide to flare. this development could have particularly large implications for north dakota's bakken region which we have seen state regulations put in place there. but a third of all natural gas pulled out of well sites is flared. it's the largest flare site in the country. a lot of that happening on tribal lands. brian sullivan will be in the bakken next week and he will be reporting on the state of oil and the effects it's having on that region. certainly this will be i would imagine a topic we'll discuss more on the ground there next week. back over to you. >> morgan, thank you very much. another big rally on the

street. the dow is soofering triple digits. small caps have taken a beaten since the start of 2016. i will speak with one five-star fund manager who is betting big on small caps when it comes to earnings. plus -- >> coming up, "power pitch." got camel milk? this startup does. >> it's time to give the old cows and goats a rest. >> will the panel get over the hump? >> how have the consumers responded to the price? >> i actually was surprised that it tasted a lot more like cow's milk than i expected. >> stay tuned to find out. when a moment spontaneously turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom?

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tonight on mad money, the ceo of avon. 6:00 p.m. don't mass it.

time for another "power pitch" where one startup is betting on a new super food to shake up the dairy aisle. >> hi, i'm walid and i'm the founder of desert farms. it's time to give the old cows and goats a rest. they're tired. camels are known for their stamina. if they can trudge through a hot desert climate for a month, they can boost your energy and nutrition. we're america's new dairy generation and we sell camel's milk. that's right, milk from a camel. camel milk is a natural dairy beverage with a sweet refreshing taste. nomads and bedouins have prized it for centuries. it does not contain many of the allerge allergens, has half the fat, and almost no lactose which make it is easier to digest than any other dairy alternative on the market. with a growing demand of dairy alternatives and the growing epidemic of dairy intolerance, camel milk makes it on top of

the grocery list as the world's next big super food. so who would like to try nature's most wholesome dairy beverage and make every day a hump day? >> now let's meet the panel. joining us on set, we have jean terminiello. jean has 20 years at coca-cola and invests vp of sales and marketing. also alicia syrett. she advises and invests in over two dozen startups. and david wu, general partner at maveron. david has upwards of 30 consumer investments in his personal portfolio. so welcome to the show, everybody. great to have you with us. walid, you're in the hot seat. jean, first question. >> at $18 a bottle for a 16 ounce bottle, it seems like it's a bit cost prohibitive for many consumers. how have the consumers responded to the price? >> well, the response we're

getting is they haven't been able to drink milk for the last ten years and as soon as they discover camel's milk it's the milk coming from a mammal, not a nut or fruit or vegetable that is easy to be digested. >> where does this fit in? how should consumers think about this option? >> it's in its own category. it's the only real dairy alternative that can be digested with anyone with food allergies and lactose intolerance. not only outperforms almost every dairy beverage out there in terms of health properties, it has three times the amount of vitamin c, almost ten times iron in it and almost half the amount of fat. >> i was surprised that it tasted a lot more like cow's milk than i expected. do you think that the fact that it's not that different and not that cravable is a little bit of a disadvantage in building a brand? >> when people first try the milk they expect something different but then it's something they can resonate with, they're used to, and with

a growing epidemic of dairy intolerances people just want to get back to drinking dairy. >> i know that some people with autistic children have used it and have found there to be some positive benefits. is this scientifically proven or is it just purely anecdotal at this stage? >> at this stage in the u.s. all studies are purely anecdotal but we have tons of customer testimonials that they have seen as soon as they drink the milk within the first couple weeks children are more calmer, their motor skills get better. >> if you had a huge order from a large major retailer, how would you ramp up? >> in the u.s. there's a total population of 5,000 camels and we're only milking about 200 total in the u.s. so there's a lot of room to scale up if that position started to come where retailers are asking for more, then that's where we'd ask for investment, outside investment, around start to import camels. >> david? >> especially with this high cost structure, how do you think about your channel and retail

strategy? >> depending on where most of our customers are ordering the product, in which states, we reach out to local retailer and start supplying them to make it a little bit more convenient. >> alicia. >> how are you estimating the total market sales potential of camel milk in the u.s.? >> the market sale potential is estimated by the number of camels that are currently residing as well as the total population of the autistic community that are purchasing the milk currently. we put the estimate around 160 million. it's a lot larger because australia on the other hand has the largest camel population in the world and the u.s. has opened their doors for importing the cam 'ems into the u.s. >> we all heard what walid had to say. we need to know if the panel is in or out. jean? >> i think that the camel milk definitely has some unique health benefits and walid has done a phenomenal job bringing a very complex product to market, but my concern is really with the $18 price point, so i think

that's going to be pretty tough for consumers to swallow. so until that can be resolved, i'm out. >> alicia. >> so i give walid a lot of credit in terms of pioneering the concept of camel milk. i understand the health benefits but i'm not convinced this is going to be the next big super food or it's going to be a large enough niche at least from an investors' perspective to attract me to it so unfortunately i'm out. >> what but, david? >> i think camels are super cool and i was surprised that this milk tasted a lot better than i expected, but i just can't see how this becomes anywhere near a mass market product. so i'm going to be out. >> okay. we've got three outs. walid, what's your reaction? >> we are working towards cutting down the price. as soon as we get more camels. >> thanks to walid of desert farms and also to our panelists, alicia, jean, and david, and that, folks, is today's "power pitch." >> let's hope he gets over the hump. all right. are you in or out on camel mill snk follow the conversation on

twitter using #powerpitch. and for more on power pitch, go to powerlunch.cnbc.com. 5,000 camels in the united states. >> and only 212 of them are being milked. >> there's room for expansion. >> that was my favorite "power pitch" ever. >> there's so many lines on there that could end up on youtube. i just won't do it. no. >> from camel milk to financials, dow component american express tanking. it's down more than 10% on the back of its latest earnings. it's down 30% in the last six months. what is going on? is this iconic american brand in ye serious trouble? "power lunch" is back in two minutes. this bale of hay cannot be controlled. when a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast.

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welcome back to "power lunch." i'm sue herera with breaking news concerning dole foods. the centers for disease control and revengs, the cdc, says that one person has died and 12 people have been hospitalized due to a strain of listeria that is now linked to packaged salads produced by dole foods at the springfield, ohio, facility. the company notified the cdc on thursday that it has stopped all

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the white house is starting to get a lot whiter. the snow has arrived in washington where they expect something on the order of two feet, maybe 30 inches. the snow has just started there. you can see it just beginning to pile up and there is the capitol which is sort of in a honeycomb of scaffolding as they refurbish the dome of the people there. >> they've had to cancel some games -- >> canceled the caps game and the wizards game and so everything is shut down in d.c. >> glad you know those teams. i'm from there. >> yeah, i know. >> stocks in rally mode right now but it has still been a dismal start to the mode. one of the hardest sit se esest has been small caps. brian is portfolio manager of the five star rated hood river small cap growth fund. brian, welcome. good to have you with us. i know that macro market forecasting isn't your thing. you're a stock picker's stock

picker, but i have to ask you why do you think small caps relatively speaking are down so much more than the s&p 500? the russell 2000 is now in bear market territory, off 22%, 23% from the high. why? >> i think the driving factor driving the small cap bear market you've seen since june of 2015 is credit spreads. they're at the widest level you have seen since 2008 and it's a high correlation with high-cap stocks and performance. i feel pretty -- >> i'm sorry. is that because -- that means it costs more for them to borrow money and hence it's more difficult for them to grow? >> exactly. small cap growth stocks are contingent to a large extent on the capital markets to fund their working capital needs and their growth prerogatives. so when credit spreads tighten, it's harder for them to hit those targets. also there's several segments within the small cap market that have been hilt by a lot of the macro forces like energy and industrials. industrials are basically in a recession, so those stocks have

been hit pretty hard. and in general -- >> what about biotech? biotech small caps have been hit hard, too, right? >> yeah. biotechs were actually pretty strong through the end of the year in 2015. year-to-date they've been hammered. they're around 25% and there was a lot of froth in that market. if you looked in 2015, for example, there was a huge swath of ipos and secondary offerings so i actually think that's a healthy correction that you're seeing in the biotech market. >> do you have -- give me a name of a stock in your portfolio that it would be kind of a classic choice of yours and describe why you like it. it could be your largest holding, it could be something that typifies or personifies one of your choices. >> yeah. so proofpoint i would say ask an example of that. they primarily provide e-mail cloud software. they're the leader in the space as evidenced by the fact that one of their biggest competitors intel mcafee decided to cede the

business. they're expecting to grow at about 30%. that's where the street is. however, we feel like that intel mcafee partnership could give them a couple points. they're stealing share within a market that's growing at 25%. and they're pretty much the last man standing in the cloud e-mail security space. >> brian, thank you for your time today. we appreciate you being with us. >> that was insightful about the credit spreads. the fed hasn't moved much, so you think interest rates haven't gone up and yet -- >> high yield has widened a lot. >> it's just after 2:00 on wall street and here is your setup for the final two hours in the trading week. right now the dow is in rally mode up nearly 20 poin0 points. the nasdaq is up 2%. oil is higher $2.34 a barrel. reapproaching the $32 level.

olig a aarchs all over the worl breathing a sigh of relief. the williams company, kinder morgan, mare than. >> look at those moves. >> american express down lower by 12%. freeport-mcmoran, it's not gaining. it's lower than 7.5% and ensco and legg mason. it is really hard to beat the market. however, it's even harder to beat the market over the very long haul, three years, five years, ten years, 25 years. but at the end of 2015 the pairness fund has done just that. jerome dodson has managed that fund for over 30 years and he joins us now. good to have you here. >> thank you very much. thank you for having me. >> we want to tell everybody

you're a fund that's considered socially conscious, so you don't invest in things like weapons. last year you stopped investing in fossil fuels. you don't invest in nuclear, guns, et cetera. so those are the things you don't invest in. we'll get to that, but you have to buy stuff to be in your fund so what is it that you buy and the way you think about it that you've been able to beat the markets for 25 years here at least? >> one of the important things is we invest in companies that have good workplaces. they treat their employees well and we think that pays dividends and that's really helped us a lot. also avoiding companies that have environmental problems and looking for companies that have a good environmental policy. we think that give us an edge because they're not subject to being fined or lawsuits. i think our environmental screen, employees, and just in general buying companies that have -- are good corporate citizens, that makes a big

difference. the second general area is we invest in companies that are out of favor. so we're value investors. so if i give you, say, a list of companies we have right now, some of them don't look too good because the stocks have gone down. we buy good companies when they're out of favor. those two things help us beat the market over the last 25 years. >> you have large holdings in intel, whole foods, seen that, sandisk, applied materials. how many companies in all do you hold in your portfolio typically and how much do you trade year-over-year? >> of course typically it varies over time, but i would say in general about 40 companies more or less at any one time. >> so fairly focused. fairly focused. >> yes, i would say in general for a diversified fund we are focused. >> and how much do you trade? >> our turnover rate, it varies but we try to keep it down low. i think last year was like in

the range of about 50%, but typically we really try to keep it down lower than that. we try to keep it at around 30%, 35% so that would mean over three years it would be. and, of course, the less we trade, then that saves on commissions and it saves on taxes and -- >> right-o. >> you do socially responsible investing, and tyler and i were looking over your list of stocks that you hold. your second largest holding is whole foods and we were wondering, this is a company that really faced a big issue in new york, were accused of overcharging customers when it came to weighing produce and things like that. do you take that into consideration? did you look at that situation and think, wow, should we stick with whole foods at this point? >> absolutely. it certainly did give us pause, and there was a waitieighting controversy. they were selling items and the weight -- they were short weighted, and so we did look at

that. very concerned, but we concluded that it was not a companywide policy. it mostly happened in new york. not to blame new york people up here in san francisco, but it is an issue that -- we're concerned about you people in new york. >> values on the scales. >> exactly. to be clear if you thought it was a companywide policy, you would have sold the stock? >> absolutely. it's unethical. but in general we like whole foods. they've had trouble not only because of that, but also because people are afraid of their new 365 unit cannibalizing sales. so the stock is down quite a bit, so it doesn't look very good i admit, but we think its upside, it's a great place to work. they do a lot of things in terms of self management. we think they will come back as well as having quality food despite that incident you mentioned about the short weighting in new york. >> with some trepidation i ask you about a stock that i don't

believe is in your portfolio. it's chipotle. here is a company that has sold good quality food, locally sourced, healthy and good for you food. they've obviously had a lot of problems throughout it seems like their system. how would you think about that stock under those circumstances? would you say, oh, we can't touch it or -- >> no. that's interesting because i don't follow it closely enough but let me give you my general idea on chipotle. first of all, you're right. it's high quality foods, reasonably priced. it's a good place to eat. now -- but they've had the disease problems we've had. there's contamination going in, and i think if we were interested in investing in it, we would have to look and say, okay, is this a mistake or could they have done things to prevent it and i don't have the answer to that, but those are the questions we would ask before deciding whether to invest. >> because it's gone from growth to value pretty quickly as a result of that. >> it sure has.

that's a good analysis. >> all right. thanks very much. >> jerome, good to have you on. congratulations. 25 years. all week long the biggest minds on wall street are weighing in on the markets from the world economic forum in davos, switzerland. today blackrock's ceo larry firng told us where he thinks there are big opportunities. >> first of all, stay invested in equities, be there in equities. these are just market corrections. you know, as warren buffett says, it's a long, long race, and i think too many people are panicking over these corrections that are necessary and the reality is over a long cycle you're going to do fine. i actually like canada. our great northern neighbor. where the canadian dollar is it's probably overshot itself. you know my views of mexico have been consistent. especially now with mexico with

the peso at its -- devaluing to a point where i think mexico investment is going to be good. >> so larry fink likes you heard canada and mexico. we're going to break down both of those calls. cnbc's deidre bow sa is with us from vancouver. first, let's start with mexico. larry fink has actually been bullish on mexico for a long time. here he sat down with our colleague brian sullivan who happens to be out today. we hope he feels better. he sat down with brian back in october of 2013. >> you both love mexico right now. is that your favorite place to invest in the world? >> so -- >> besides america, outside of the united states, of course. >> it would be mine. >> it would be yours, mexico. >> so mexico is at the beginning of a real revolution. the president has proposed liberation and changes in how -- in the whole energy complex.

through this change, if it's approved which it looks like it's going to be approved, you're going to have a tremendous opportunity for mexico to become one of the largest providers of energy. >> all those things are true and when you look at the mexican stock market, this is a custom built chart. we went to the same day larry fink made those statements, mexico in that time period, higher by nearly 2%. that's, however, if you are mexican living this mexico buying mexican stocks with mexican pesos. if you are a u.s. based investor, you're down a lot, like 24% because the peso has devalued a lot. and so he talked about that, how he thinks finally the peso may be near a bottom and that's why he -- >> stabilized. >> -- expects a turn in the market. leads head to canada. deirdre is with us for more. >> michelle, when it comes to canada, it does feel like the doan has almost shifted overnight. ahead of the bank of canada's rate decision earlier this week, it felt like there was no call that was low enough for the canadian dollar and a lot of

folks were down on canada calling for a return to recession. that's still possible but we have seen a bit of a change here. now, the bank of canada refrained from cutting interest rates and we saw a significant bounce in the loonie. folks now seem to see more opportunity in your great northern neighbors as fink put it. it doesn't hurt that oil has bounced as well. the loonie and oil have a nearly perfect correlation. we also had some good news, economic news, this morning in the form of better than expected retail sales. the canadian dollar now trading above 70 cents. the initial move likely due to a lot of short sellers being squeezed out of the market. the dollar was at the -- the canadian dollar that is, has been hit very hard. down 8% over three months' time. so fink though and others do think there could be a longer term play here. i spoke yesterday to mark chandler at bbh, and he think that is the loonie could actually be the currency that investors look to later in 2016 and that is if oil reaches a bottom and if the bank of canada is finished with cutting

interest rates. he also said canada, the economy and the dollar could ride on the coattails of an improving u.s. economy. that said though, guys, there's still a lot of naysayers out there, a lot of folks that say there is more room for the loonie to fall and more pain for the canadian economy because, remember, we are so tied to resources. back over to you. >> deirdre, thank you very much. let's move from north america across the pacific and when it comes to growth, india steals the limelight surpassing china now as the fastest growing major economy. so once the volatility subsides, could this be the year that india shines? seema mody joins us now. >> and that's the big question. india has surpassed china in terms of growth and that's expected to continue. the imf forecasting growth of 7.5% in india while china is expected to slow at around 6%. but growth not the only factor to consider. unlike other emerging markets, india net oil importer which has helped bring inflation down plus it has a strong demographic story. 50% of its population under the

age of 25. that's expected to help boost its workforce. it's also being head by this guy right here, prime minister narendra modi seen as pro business. stocks soar to new highs and stayed there on hopes that modi would revamp india's economy. a well watched etf, wisdomtree india down 14% over the past three months. but still when you talk to investors, fidelity among others, they see india as the better emerging market to invest in. interestingly enough, if you look at the year-to-date performance of the bombay sensex, it's down 6.5% but not as much as the shanghai composite as well as some of the emerging market peers. michelle? >> yeah, i hope this is india's time. they've been waiting so long and this -- another billion people

that could improve their standard of living if they get it right. >> that's right. a lot of focus on prime minister modi. >> thanks, seema. tyler, one story out of china that got completely ignored this week but i thought it was worth talking about, it was if "the ft" regulating reincarnation. >> they want to do that? >> there's an online database of certified living buddhas. they say this is a consumer thi thing. so the critics say, no, no, no, this is actually china trying to control the legacy of the dalai lama. there's a big controversy when it comes to china and tibet. the dalai lama has threatened to not rein kcarnate himself becau

he doesn't want his successor controlled by the chinese government which leads to this line in "the ft," i kid you not, communist officials then declared that he must be reborn. >> they are ordaining this. >> they are telling him he must be reborn. just to highlight how the chinese zil are trying to grip so hard -- talking about triing to take control of the economy and the stock market, everything. >> they want to control the supreme power. >> exactly. by the way, they're supposed to be ath yiseists, right? you must be reborn, tyler. john scully will join us. we'll find out what he has to say about what is happening over in the world's second biggest economy. and more on the rally we're seeing in the energy market. what a couple days it's been. we are below $27 a barrel a day before yesterday. today back around $30 and more than that. we'll take you live to the oil

pittings in new yo pits in new york ahead and we are all over this oil surge after the purge. all three indexes solidly in the green. we have much more coverage coming your way on "power lunch" on cnbc.

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want to highlight oil back above $32, $32.15. a gain of $2.62. that's up 22 cen% from the rece low earlier in the week. $6 in a week. that is a huge move. you won't see $26 in this chart because we rolled over to the next contract, but basically we're having a very big move in oil which is a lot of what's helping out the stock market today. welcome back to "power lunch." other stocks moving, united continental and its pilots union agreeing to he can tend a labor contract covering 1,200 pilots. it paves the way for a 22% wage increase in the next two years. untu tiff surgical reporting a better than expected four quarter profits. and a if you financial stocks hitting new 52 week lows in today's session. that's a big deal because we have a big rally and yet they rnt going along, legg mason, people's united financial and sun traus banks. >> our next guest says there's

never been a better time to build from scratch multibillion dollar companies with the power to transform industries. with us now is john scully. always great to see you. >> thank you, tyler. >> you just returned from china. tell us what you saw there and what your sense is of the economy. >> sure. so i'm in china about three times a year. i just came back from a few days there. i talk regularly to the ceos and the leaders of the largest funds over there, so i get a pretty good sense with those trips how people think. they're much more relaxed about what's going on in china than maybe the rest of the world seems to be. but here is the thing to think about. they have 7 million graduates from college every year. only a third of them actually get jobs. and so as the china economy, the government, tries to poft towarpivot towards a domestic economy, it

means they have to create jobs for a lot of young people who are coming out and not getting jobs. so the big focus is really on that, but in terms of hitting a growth rate in the 6% or something better, i think people are pretty comfortable that's going to happen this year. >> how are they trying to put people to work and the 7 million graduates presumably don't want to be stitching nike sneakers. >> well, it's very interesting. what they're doing is you may recall that the banks had been controlled by the government. they lent a lot of money to the provinces and the cities to go and build infrastructure. they way over built buildings and so now they're giving the space in those buildings in cities across the country to entrepreneurs telling people they need to start their own businesses. they're even funding them with seed capital and so they're keeping young people at work by filling the buildings which they have an oversupply of. >> so if they're very relaxed about what's happening there, the rest of the world is so not

relaxed about what's been happening with china when it comes to that. mostly the currency, not even the stock market. we've had guests saying they say they're growing nearly 7%, it's more like 4% or 4.5% based on what we see. what do you make of the moves in the stock market, the international markets over the last several weeks because of china? do you think it's overdone? are you willing to make a call like that? >> well, i'm not an expert on the international markets but what i would point out is the difference between the china stock market and the international stock market. the china stock market is a very small part of the china economy, maybe 4% of the population actually owns stock. we have over 50% of our population owns stock either directly or indirectly. so we tend to overreact because it's called the stock market but it's not nearly as big a factor in their economy as it is ours. i was really there though on health care because they have real interest to try to learn what we're doing with health care here in the states, and

health care is probably the biggest area of focus for me in terms of building billion dollar companies right now. >> i want to turn to that. i'm curious to hear you say the chinese are interested with what we're doing with health care because from where i sit it doesn't seem like it's going that well. maybe you sit in a different place and have different perspectives so tell us how you think technology is going to create a better marketplace, a better delivery system, and a better cost structure for health care. >> okay. well, let's start with the u.s. presidential election year, a lot of people will have points of view on health care. i would say my advice is completely ignore anything the politicians, the lawyers, the lobbyists have to say about health care because they're going to have very little to do with solving health care. health care is going to be solved, if it is solved, and i think it has a good chance of being greatly improved, by the private sector. just last week i was at the jpmorgan health conference, i go

every year, and there is a lot of really good things that are going on with innovation, particularly digital health innovation, that i think is going to have a significant factor in terms of changing the way we deliver health care. i'll give you an example. a company i'm involved with called rx advanced, the first clo cloud based pharmacy benefit management company. it's a $300 billion industry of pharmaceuticals and another $300 billion of related services. and this company has built a cloud-based platform that reduces the cost for its partners about 35% to 40% in terms of administrative costs but more importantly it brings in a whole new level of machine learning, artificial intelligence, the ability to generate predictive analytic data all focused at the providers and it's the providers

where the real pivot in health care delivery is taking place and it's not at the traditional employers that we've seen in the past but it's what's going on in hospitals. >> sounds very exciting. can we ask you a question about apple. it's higher today but it's gotten hit recently because of concerns that they're just not going to see the same level of iphone sales, the iphone 6, there's just not enough reason to upgrade. do you have any sense of what's going on or any opinion on the current state of iphone sales? >> i will give you some observations. when you're in china, as i have been, everyone has an iphone. the market is totally saturated for smartphones in china. no growth basically, and yet apple continues to grow double digits. apple is now moving into india more aggressively, but more importantly is watch the way in which apple approaches the lower price end of the market and they're doing it with preowned phones. so when people buy a new iphone, there's a market now for preowned phones, and apple

really dominates that. so apple is building its brand in many of these developing countries, and i think that the company is in much better shape in terms of its outlook in terms of growth and profitability over the next year than what you hear from a lot of the stock pundits. >> all right, john. thank you so much. 100 bucks a share for apple. we had it up on the screen. it looks beautiful where you are. >> thank you. thanks, michelle. >> coming up next, a credit card calamity. american express falling hard right now. the stock is now down 35% over the past year. it's down more than 10% today. is this iconic brand in serious trouble? we'll do some digging ahead. right now the dow is higher by nearly 200 appointments. a gain of more than 1%. who is leading the way? apple, higher by more than 4%. keep it here. "power lunch" is going to be right back.

welcome back to "power lunch," everybody. let's take a look at the markets right now. the dow, the s&p, the nasdaq, the russell all higher. industrials up by almost 200 points. 1.25%. the s&p up by almost 2%, 36 points. nasdaq 110 points higher, almost

2.5% up and there is the russell, 2% on the up side. sue herera now with a cnbc update. >> here is what's happening. in a speech at the world economic forum, secretary of state john kerry commenting on the fight against terrorism. in his keynote address to the delegates in davos, he voiced optimism about the future. >> in country after country, citizens of all backgrounds have responded to deadly attacks by showing that we will not be intimidated. we will not be split apart, and we will not be provoked into abandoning our values. >> meantime, here at home "washington post" owner jeff bezos traveled to germany to escort jason rezaian home to the u.s. he had been imprisoned in iran since july of 2014. in a statement this morning rezaian said he and his family were heading home on bezos' private jet.

economy minister akira amari declay ee eed -- delayed explai corruption charges. and a snowstorm not stopping the carolina panthers from practicing today. players were in pretty good spirits as they tried to stay warm and loosen up despite a blanket of snow and ice on their field. they host arizona in the nfc championship game on sunday. i'll be watching. hope everybody who has tickets, michelle, can even get there. >> that's true. >> back to you guys. >> the oil markets closing for the day. got a big rally. jackie deangelis at the nymex with the news. >> epic moves in crude. the volatility continues this time to the upside. we're going to close over $32 a barrel. it's more than an 8% move in one day. we've pared our losses. that year-to-date chart was very ugly but now down only 13%.

some people getting into the trade. the thought is if the market continues to go higher we will see more demand for crude and there's also a piece a little bit smaller but the storm coming this weekend. the blizzard is likely to boost demand a little bit, too. right now it appears the bulls are in control, but, again, the crude oil trade is anybody's game at this point. back to you. >> let's discuss more about that, jackie. despite that surge in crude oil today, prices as you know, they've still fallen 13% on the year. next week is set to deliver some big energy earnings. halliburton on monday, then thursday where next tara energy and valero will report along with newstar, shaef rchevron, p 66 on friday. let's bring in pavel, senior vice president and energy analyst at raymond james. good to have you here. what do you think will -- first, what do you make of this move in the price of oil? is this the rolling of the contract, a bear market rally,

what? >> well, crude was ridiculously oversold, and, in fact, got so low earlier this year that we saw something we haven't seen in at least a decade which is companies shutting in existing oil fields, not just cutting cap ex, but shutting in existing operations, particularly in places like canada where a lot of heavy crude, 28 bucks a barrel sounds pretty bad. well in canada it's 15 bucks a barrel for heavy grade. so those fields are getting shut down. that is immediately helping rebalance the market. the longer oil, you know, stays in the 20s or a little higher than that now, but if it falls back, we're going to see a lot more fields getting shut in, and that is really kind of the true bottom when we're seeing companies do that. >> i was going to say, one, this is exactly what the saudis wanted, right? two, this is what needs to happen in order for oil to

bottom. you have to reduce the amount of supply out there. >> that's right. it is reducing supply, and, of course, even though we're not seeing a ton of production shut ins, what we are seeing and have been seeing for two years now is, you know, tremendous austerity. companies curtailing investment in extremely harsh ways. the last time we saw two consecutive years of global oil and gas investment declining was all the way back in the '80s. so 30 years ago. and we're seeing that now down at least 30% last year, down, you know, probably as much this year, and, look, these are operations that will decline without investment. >> do we get a third year? what do you think? a year from now or sick months from now, where do you think the price of oil is? >> a year from now we think oil will be in the 60s, possibly higher, so roughly double from current levels because the industry cannot go on like this. and, you know, outside of profitability and dividends, the

fact of the matter is supply from non-opec countries is going to be falling off a cliff 6 to 12 moments from now. in the u.s. we're already down 400,000 barrels from the peak last spring. we're starting to see a lot of declines. brazil has flattened, russia has flattened, china looks like it may decline this year, and, in fact, even some opec countries are starting -- are really feeling the pain of this. iraq is a good example. the government is running out of money. venezuela is running out of money. so a year from now we're expecting a very meaningful improvement in prices even though it's still going to be choppy in the near term. >> all right. pavel, thanks so much. we have to cut you off because we're going to breaking news. sue. >> thank you very much, michelle. this is out on the wires right now. lloyd blankfein of goldman sachs will be awarded $23 million in stock and cash for the near 2015. that is down slightly, roughly

4% from what he received the year before in 2014. it will be in cash and stock for the year. once again, awarded about $23 million in cash and stock for 2015. down about 4% from 2014. ty, back to you. >> sue, thank you very much. american express sticking with the financials plunging 12% right now. the stock now down 35% over the past one year. is this credit card giant in trouble? "power" is back in two. we'll explore it.

we may have a rally but ge and american express are both trading lower. seeing red after reporting earnings. mary thompson joins us now. let's start with general electric. >> ge closing out its first year of its transformation into a digital industrial giant with weak results. falling oil prices continuing to dog its energy businesses but here aggressive cost cutting helped to limit the damage. the topline miss, the bottom line beat helped by aviation tax benefits better than expected results from its finance businesses as well.

even in what ge called a volatile environment, it did affirm its 2016 outlook aiming to get to the promised $1.45 to $1.55 a share this year helped by a record order backlog of $315 billion, a doubling of cost cuts in area like oil and gas and expense cuts in other units including transportation. as for american express, well, there was a little good news. earnings did beat estimates, but the payments giant cut guidance for 2016 and '17. it's countering the disappointing outlook with $1 billion in cost cuts. still even on the call the cfo questioned whether the firm could achieve its long-term earnings growth goal of 12% to 15%. among the issues, billings or customer spend that's been impacted for longer than expected from low gas prices and a stronger dollar. margins being squeezed as retailers push back against a bigger cut demanded by am ex. the firm's growth initiatives have yet to deliver on its promise and losing its exclusive

deal with costco. the ceo is saying the firm will lever its brand to improve results. he said data from the network can help am ex to deliver more value and the firm is on the hunt for acquisitions and will look for other opportunities to replace that lost costco business. they said it's difficult to be con vuk tiff given the long lead time. >> 8% of their revenue. >> of their build business which is their customer spend is from costco. >> that's amazing. >> obviously the stock is down 34% over the last year and that is reflected in part of the business that they're losing from coastco. >> is this a company in crisis? they went through 2008 and 2009 compared to the other guys relatively unscathed, and then there's -- >> right. and look -- at that point people were focused on credit quality and the ability of customers to pay it back. that's one of am ex's benefit. i have been talk fog a number of

analysts who say they have a great brand, a great management team, but if you look at the prit performance in the stock over the last couple years and even the response today to the initiatives they outlined, a lot of people are questioning what they can do to kind of regenerate that growth. yes, they have this great brand and the closed network which is very important but whether or not they can lever it to deliver the earnings still remains to be seen. >> mary, thank you very much. have a great weekend. all right. we have a huge week ahead for earnings. 3m, dupont, caterpillar, apple, also hear from facebook. online retailer amazon thursday. chevron on friday. financial stocks have badly lagged the overall market this week so what's behind the bank pain? let's ask the "trading nation" team. larry mcdonald is with societe generale, craig johnson with piper jaffray. larry, what is the problem with the financials? >> well, the credit profile of the major commodity multinationals, the anglos, the glencores of the world, the

petrobrases, they need to improve in order for the financials to improve from here throughout the year. >> craig, let's talk about -- i want to ask about the company that mary was just talking about and that is american express. do you think the turmoil is overdone there or is this a company in crisis? >> well, when you look at a chart, tyler, of american express, this is a stock that's been rolled over in early 2015 and it sold off quite hard since then. from my perspective it looks like you kind of in your ka pitlization phase and a real zaz that all these problems are now here. stock looks pretty oversold. i'm not ready to step up and buy it yet. i want to see some sort of indication that that low 50s can start to turn higher, but a lot of the negative news looks priced in. >> thank you very much. find more trading nation at tradingnation.cnbc.com. >> straight ahead, we're talking all things bonds with morgan

stanley's fixed income portfolio manager. we'll ask him about investors who are looking for safety and corporate debt it and what it all means for the high yield market. you're watching cnbc. we are first in business worldwide.

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welcome back to "power lunch." i'm phil lebeau with breaking news coming from the national highway traffic safety administration in washington. the organization is holding a conference call right now announcing that there are going to be new air bag defect reports being filed by takata which will lead to several recalls being announced by automakers totaling at least another 5 million vehicles. that brings the total number of vehicles that will be recalled by takata or automakers with takata air bags to total approximately 5 million -- or 4

million vehicles i'm being told between these recall reports and the defect reports. in addition, nhtsa is announcing that there is a ninth fatality in the united states linked with a defective takata air bag. it happened in late december in south carolina. so, again, these are the latest news flashes coming to us from the national highway traffic safety administering. >> thanks for that, phil lebeau. despite the recent market volatility in the kompt bond market, we have companies borrowing money again today. morgan stanley, rbc, wells fargo, transcanada. energy bonds though lately have been causing a lot of concerns. there you see what's going on with the 2 year and the 10 year treasury note. want to talk to jim caran. we have companies borrowing money today. if you're good quality credit you can still borrow even now. >> and i think that's the key. if you're good quality credit and if you're not so tied

necessarily -- the less tied you are to the oil story or even to, say, a global commodity story, the better off you're going to be. so the yields right now for many of these companies given the set back we've had in bonds and in credit spreads widening are actually quite attractive right now. >> where has -- where is something that's newly attractive -- so if the spreads have widened -- >> i'm going to become very boring here. you have to look in areas like consumer noncyclicaling, the pharmas, the health cares. the home builders. >> what kind of yields are you going to get there? >> somewhere around 3.6%, 3.5%. it's not -- look, you're not going to get extremely wealthy on that right away but given where the markets have gone since the start of the year, they're running about flat on a total return basis. excess return, they're certainly negatives. spreads have widened.

in high yield you're getting a 9.5% -- >> i was going to ask, i want mo are yield. i want mo are. >> you can get it in high yield. even ex energy you're getting 8.6% in high in investment great corporates you're going somewhere north of 3.6%. if ris premium starts to come out of the market, more stabilization in oil prices and calming in the markets i think a lot of these names that are out there and particularly in the consumer-related names, the home builders, the pharmaceuticals, you know, the food and beverage names, these are names that will do well. >> this is the kind of time in a bond fund where if i am an investor in a bond fund it pays me a shareholder to know what's in my fund. you just can't just -- it may have that sweet yield, 9% but may be getting it with lots of very risky credits in oil that you want to be away from. >> that's how i think that's a great point. one of the things here and this

is one of the reasons why we stay away from just focusing on the index levels is that you really have to be a bond picker or stock picker in this market, if you will. you don't want to hold some of these names. when i talk about the index and i say yield is about 9.75%, it's about 20% of the index, i wouldn't even want to touch, i wouldn't even want to own these names. >> mostly energy. >> yeah, energy, metals and mining and things like that and that may change, but the point, though, is that you really want to be able to select, you know, some of the companies that have had less bench, better balance sheets and good stories, less connected to this commodity story, less connected to the oil story that have unduly been beaten up relative to their economic fundamentals. i think there's great opportunities within fixed income. fixed income is more priced today for the negative story, for the people talk about a recession and a big global downturn and things like that. fixed income is priced for that more so than any other asset class. you are buying into something right now at i think pretty good

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federal government closed, d.c. government closed, the snow is falling, the white house bathed in white. an artist bridging the gap between the trading floors of wall street and galleries of chelsea turning trading stocks into performance art. robert frank joins us with this story. >> interesting. sara has turned the market correction into a work of art. the 24-year-old artist has been trading stocks for two weeks at the 303 gallery in mount town manhattan, she took the stock charts and turned them into abstract paintings. she had no idea she would be trading and painting in the middle of this massive collection we're having. she picked small thinl traded stocks with market caps under $40 billion. she used her own money for this. she ended up losing tens of

thousands of dollars of money on the trades. luckily she will make that back on some of her paintings. each are price the at $10,000 each. she has already sold most of the 12. these for traits of a market in turmoil about hang on some expensive walls. >> the way andy war hall's art was about commoditization my art is the financial markets which have grown in size and importance over the last 25 years in such a phenomenal almost sublime way that i'm just responding to the world. >> and, you know, she made a great woipoint that war hall ma which is making money is great art. she's fused them together and a lot of the buyers are wall street guys. >> i bet they are. >> you know, you would think they have enough of this stuff in their daily life, they

wouldn't want it on their living room walls but they're buying it up. >> robert, thanks a lot. >> busy day, pussy week. we come to the end, michelle. >> thanks for watching. "closing bell" starts right now. hi, everybody, welcome to the "closing bell" i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. i have my own heart work for the stock market, there it is, that's what the chart looks like, too. >> it's a masterpiece. >> we have a pretty good rally going on to close out a big week. coming off the lows that we hit during the session on wednesday and now we're maybe, maybe we will finish positive for the week for the first time this year, but that remains to be seen this hour, we're up 194 points right now. >> one of the big drivers of this rally, you guessed t it's oil's move higher, we will tell you what's behind that and whether a bottom in crude is officially in this ti