>> lots to do. >> big night on fast money. 3:00 somewhere in mountain time zone, wlfr that is. >> it's 5:00 somewhere. >> it is in about two minutes. >> thanks for watching "power lunch" everybody. >> "closing bell" starts right now. hi, everybody, welcome to the closing bell i'm kelly avenevans and you've grown, bill. >> i'm wilfred frost in for bill. the two big stories facebook and under arm our, whether these are the must have stocks for investors. >> oil rallying on reports that russia and saudi arabia are considering production cuts. >> health care and biotech stocks have a hit today the the massachusetts attorney general is wants the company to cut the

price of hepatitis c treatment and will make her case coming up a bit of wild ride for harley-davidson despite cutting guidance, shares up better than 3% and the ceo will join us live coming up on "the closing bell". >> facebook soaring after smashing the street's estimates in its earning report last night. apple has reigned as one of the most beloved stocks for investors for some time. is it time for facebook to take that spot? >> an internet with jp morgan, $127 price target, doug, thanks for joining us. i don't know how you compare facebook and apple other than quite obviously facebook has the entire market's momentum behind it. >> in our view facebook is really just in the sweet spot in terms of the market if you think about really where they are with secular growth and shift to

mobile, ton of dollars moving to mobile advertising. we think about the background with facebook in terms of having 1.6 billion users in that accounts for around 20% of total mobile time. in our view, they really have a strong back drop for setting up for sustainably strong growth going forward and also across the other new businesses as well. >> there's so many parts to facebook, the original facebook part, instagram and what's app and dedicated video page to directly challenge you tune and google. which of those parts is most exciting and which has been driving that stock performance today? >> in terms of what's really driving facebook, it's one of the things where investors always want and if something new to see in facebook to account for the growth but the reality is it's core news feed in facebook the biggest factor and

monday tiesing and higher reading to higher demand and ultimately higher prices. core facebook and then what has been somewhat new is instagram and we think that's north of a billion dollar business in 2016. what we're looking for over the next 12 to 18 months is really more around messaging and oculift. >> before we leave facebook, does it become one of the biggest holdings by hedge funds, mutual funds, maybe the retail community after these results? >> we think it does become that way. it has worked that way over the last several years and it's difficult to find this kind of growth and profitability and this kind of scale really anywhere else in the market and in tech. so we do think it takes that position going forward. >> doug, let's talk about amazon. reporting after the bell.

what are you expecting there? are we going to get a blowout bounce like we've seen for facebook or disappointing set of numbers like from apple. >> we expect strong growth out of amazon. it's certainly been a mixed retail backdrop in 4q, but we think that grew at 2 x rate overall e commerce. we think they'll do around $36 billion or so in total revenue. le prime eco system working extremely well and getting good growth from the cloud business awf. >> real quick, doug, on amazon, the report came out a couple of days ago, half of u.s. households have amazon prime. do you think that's right? >> in terms of prime numbers it sounds a little high to me but i think it will work its way there. the key with amazon prime menz, they spend so much more with amazon and are much more loyal

and less price sensitive and that drives the eco system. >> incredibly rapid growth already anyway. thanks for joining us. >> thank you. >> today time for closing bell exchange. >> jim lowell and rick santelli. steven, let's start with you, what are levels you're watching on this rally day? >> every time the market bottomed out, since 10:30 when we had the low it has bottomed lower than the time before that. we want to keep this above 1888. our level of resistance is hour high of the day, 19:02. you give any 1902 i could probably give you 1907. if not we're talking something a little lower. >> we had ten days in a row

where u.s. stock markets and oil moved in the same direction. we broke that yesterday and today we're back to very much strong coupleing is oil price driving the market today? >> it may be. but correlation is not necessarily the same as causation, what we're seeing is a spillover of fear that oil is signaling a slowdown in the global economy whereas we really view it as signaling an absolute glut of supply. we know oil demand rose last year by between half of one percent so we don't see a slack in the demand story coming out of the oil patch just yet. what we see a classic tale of oversupply. >> what's going on with currencies here? is this having to do with the fed or what else is going on here? >> it's your fed transparency at work.

the market is definitely thinking less. >> the market expects them to and another correlation that has more causation will be another relationship that people should pay attention to and that is interest rates and the dollar index, especially after the fed meeting, and what's more, even on fed day, we had volatility. but if you look today between the data and the notion of the dollar being spongy, looking to have the weakest close since first week of the year, i think those two are definitely going to start moving more in tandem egs especially if it breaks this 98 area. you have to think like a technician. if 100 was significant for a breakout to the upside with lots of momentum with sustained trading above it. you'll see the other side of the

mountain. >> so what extent do you see we're seeing people trading stocks they can trade as opposed to ones they could trade. are people focusing on the most liquid names and the stocks they should be selling have been left alone? >> it's a good question. we're seeing a lot of positive momentum into the fastest growing stocks, things like facebook and nike. we think they'll be hard pressed to sustain long term valuations even at the current level, that's not to say they don't have a few months or years to grow and gain. that's come at the expense of investors for stocks deeply under valued and could get more undervalued. long term, the low price you're paying today will help mitigate of the risk of holding them for what ought to be a profitable period down the road. when we look at the economy in the u.s. in particular, ford's report, north american sales at record highs, what we look at things like caterpillar, being

able to lower sales guidance but raise profit guidance, this suggests there are definitely selective opportunities where bottom line and top line management are going to turn into significant profits down the road. we look for managers who know how to find exactly those kinds of opportunities. >> you see that come out today, any sense people are starting to buy here at these levels? >> obviously there's buying going on. i kind of don't agree with what my colleague just said about good spots in the economy. we saw industrial production, cap unitization and retail sales and regional fed districts, all horrible numbers, about a quarter. the economy is in a tough spot. what rick said about trading technically for the currencies that works great and stocks have been trading extremely technically for a few weeks now. >> one final question on the u.s. dollar against the yen. year to date the dollar has been

weak. we got bank of japan tomorrow. what are we expecting? do you think we've have dovishness where the yen starts to weaken. >> i don't think there's any question. the bigger the d the more japanese seem to like it. the other currency you want to watch, the you'euro versus the >> everybody fighting against each other. we'll leave it there for the time being. 50 minutes until the close. we have a nice rally but it's a counter trend for january, dow is up 140 points but on pace for the third worse december of all time and thord straight -- i'm sorry, january, and third straight down january consecutively. >> busiest day of earnings season, amazon and microsoft pick up reigns after the bell. what to expect in those numbers

coming up. and next the massachusetts attorney general threatening legal action against biotech guy and gillyads in it lowers the price of its hepatitis treatments.

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welcome back, keeping an eye on markets where the nasdaq, gains of nearly 1%. remember after the sharp sell-off yesterday after the fed decided not to further raise interest rates and then we had facebook's earnings report and did a lot to bolster the whole internet space. dow is up 149. celgene is lower, reporting disappointing earnings and rising development and research cost and slowing sales of one of the cancer drugs. sparking a larm in the world health organization, meg has details. >> the word about zika is ramping up, a press conference was held today trying to show they are responding quickly trying to differentiate how they responded to ebola.

as of now zika is in in more than 20 countries, and as for the united states, travelers have returned to the united states to 11 different states here where they've carried the virus in but it hasn't been locally transmitted in the united states yet. what are we learning that's new? the w.h.o. says this could explosively travel through the americas. and saying as many as 3 to 4 million cases are possible in the americas over the next 12 months. the cdc on its call gave new numbers on the number of cases in the u.s., 31 travel associated cases, that's from folks who traveled to the affected areas and come back. we don't have local transmission here except in puerto rico and virgin islands all under the c d. d.c.'s travel guidelines and the nih has said there is work under way on vaccines. this is a fairly lengthy process but hoping to use lessons learned from other similar diseases like west nile to get this going a little bit faster.

we shouldn't expect anything imminently though. >> this is really all over the headlines and people are afraid of the speed it's spread. we saw images of authorities trying to spray down different places where people might be susceptible. what preventatively can people do or is this a matter of hoping the mosquitos don't come near you? >> preventatively is the key word. all we can do is try to control the mosquito population and wear bug spray ourselves in areas where there's a lot of mos keet toes and we're going to be talking about this tomorrow. there are efforts under way to genetically modify mosquitos. they are working on this for the mosquitos to wipe out their own population and we'll have the ceo joining us on your show tomorrow to talk about that. really right now the traditional methods are spraying for mosquitos in this area. >> playing around with apples and different things and able to

really tweak things. that's one area to watch. while we have you, gilead is facing pressure to lower the cost of hepatitis c. is this another chapter here opening in this story? >> it certainly a new headline. yesterday it became public that the massachusetts attorney general had sent a letter to gilead asking -- raising the probability that pricing of hepatitis c drug could violate massachusetts law. this is something that surprised a lot of people. it's not totally clear how that would work. as you mention this has been something going on for years. i think we have a time line looking back how this pressure started to mount on gilead, first hepatitis c drug, this represents a breakthrough for patients and cures more than 90% of people and don't have to use horrible ingestions that made every sick. a couple of months later, waxman sent a letter to the company questioning the pricing of the

drug, $84,000 for 12 weeks of treatment, $1,000 a day. and that letter really affected the stock and industry. the combo pill was approved and it eclipsed all systems billions of dollars in sales. december 2014, it's competitor was approved and the pdm, struck an exclusive deal to provide that drug. it is all in terms of the pricing debate. february 3rd, they disclose their gross to net discounts on drug that turned out to be bigger than anybody expected, 46% expected for 2015. at the end of december, we saw the result of a big investigation that the senate did into the pricing of gilead's hepatitis c drugs. they said they priced it to maximize profits not concerning affordability or access and people are saying what a shock. they are capitalist driven

company and just this week the massachusetts attorney general. >> we're talking about 80 to $90,000 for a 12-week course of that drug. is the u.s. price higher than elsewhere? >> it is higher than elsewhere in countries like egypt, $900 to cure patients. we reached out about this letter and they did provide a statement saying that they provide extensive discounts to medicaid and va of more than 50% and in massachusetts they do that. we look forward to working with the attorney general's office to address questions and concerns and ensure a mutual understanding of the work we're doing to deliver a cure for hcv to as many people as possible in massachusetts and around the world. >> we're joined by the official leading the charge against gilead, maura healey. let's begin with why you think they have broken the law? >> well, i want to be clear at the outset. i'm all for biotechnology

companies and pharmaceutical companies being rightly rewarded for their risks, recovering profits, record profits even and all of the costs associated with research and development and legal work and marketing and sales and the like. but here's the situation and here's why we've raised this issue. hepatitis c rates are spreading here in massachusetts in part due to our heroin and opioid crisis, we have a pill on the shelf that will cure as meg said, this is a block buster drug, breakthrough drug that will cure this infectious disease. but gilead choose to price at a at a point they knew would prevent people from being able to access it. companies should be rightly rewarded for their risks and innovation. we want to incent that but at some point when does that cross the line. that's why we have concerns and

that's why rereached out to gilead and look forward to sitting down with them to get to a sensible place. >> in your letter you cited the price they provide in other countries like egypt. where do you think they should price it in the united states that you think would be fair that would cure the most number of people and enable them to still make a healthy profit. >> where they are pricing it right now doesn't make sense to me. where it should be priced? i don't have the answer to that. what i want to have say real conversation and honest conversation, when you look at how gilead prices here versus other countries, the difference is significant. i understand their arguments and reasons offered for why that is so. we have a drug sitting on pharmacy shelves right now today that can cure an fektous disease, a disease whose rates are continuing to spread. >> frankly, i don't really understand obviously you want everybody to be able to access this drug, but you're saying exactly what it is doing, it's

curing people and long-term hopefully that will bring health care down in other parts of the system for sicker patients who contribute to hospitalization rates and so forth. it's going to be less expensive in other countries. it was developed here and u.s. is probably going to be the most profitable region because there are additional government subsidies for these drugs. who is at fault for paying up for access to a drug that's curing people? >> well, let me tell you, it's not curing people when last year in the united states alone only reached 2% of the people who actually needed it. in the first year alone, it made back the entire purchase price and continues to reap record profits. that's why we have issues and this is an issue for taxpayers, we're footing the bill and the costs are exploding for medicaid population and medicare population and also private insurers increasingly having to pay out huge amounts of money for this as a result people's premiums will go up. that's why we're raising this

issue, issue for taxpayers and issue about access and issue fundamentally about what makes sense in terms of pricing structure when you look at these type of drugs. >> what gives you confidence that your lawsuit can be successful? we saw a similar suit filed in court that got dismissed. >> i've not filed a lawsuit nor have i said we will file a lawsuit. what i have said is that gilead's pricing structure and pricing structure that the senate said was designed to maximize profits knowing that individuals would be prevented from accessing this drug, that raises serious questions about fairness. so that's why we sent the letter and that's why we've invited them to the table talk and hoping we can arrive at the solution that makes sense for the patients and company and taxpayers. >> one last question for you, i really would love it if you could clarify how this potentially constitutes an unfair trade practice in violation of massachusetts law? everything you're saying about

it being unfair, a lot of folks have said that. how does this break the law? >> well, look, as i said, we are taking this issue up with gilead, you have to look at the facts and law and circumstances. but right now what i want us to have is an honest conversation with this company and in this country about the pricing structure for these drugs. it just can't be that we're going to bankrupt our state budgets when it comes to what is available in terms of treatment. gilead last year alone, $20 billion in record profits, kudos to them, that is half of the size of the state budget here in massachusetts to give you a sense of the proportion and potential effect. so no lawsuit has been filed. i do believe this raises questions about fairness. companies should be rewarded for risk, but what good does treatment do if nobody is able to access that drug? >> a fair point. how does it break the law? >> how does it break the law?

>> well it's something we're going to take a look at. to me what's important is we're able to sit down with them and have a honest conversation about what it is that's kbon gone into the pricing structure. they are in a different place in other countries. they can do better here in the united states. >> massachusetts attorney general maura healey, thanks for joining us. >> we want to draw your attention to solar stocks, the california public utilities commission approving increased fees for rooftop systems to obtain net metering. it's seen as a positive. credit suisse saying it's a sign of growth for residential solar developers in the state of california. sunrun up 9.8% and solar city as well. >> the dow is up about 140

points, s&p about 12 points. >> take a look under arm. it is absolutely surging today, this after its strong earnings report this morning. the shares, look at this, up 22%. hear what ceo has to say about the quarter next. >> keep it right here for the storm of earnings due out less than an hour, amazon and microsoft and visa among big names leading the charge. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro.

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welcome back, the dow is up 125 points, nasdaq 37, also gaining ground, mattel, debuting a new line of barbie dolls, will come in three body types curvy, tall and petite. and she'll be available in seven skin tones and 22 eye colors. wilfred, i know you wanted full details. >> no new ken dolls though. >> come on, mattel. >> they could work on that with another pop in the stock. up little less than 1%. >> wilfred, let's talk about the stock pop. underarmour is the best performing stock, up around 22% as we approach the most important half hour of the trading day. this could be the best day since

january of 2014. earnings and sales both beat analysts estimates. so the trifecta. ceo plank said some of the positive drivers were curry of the nba and cam newton playing in the super bowl and em ifphasd the importance of women's line as a growth driver on the earnings confidence call this morning. >> we also expect to continue to elevate our brand where women want us in places like ecommerce and to be clear, on ecommerce, women's was our number one and largest selling and fastest growing category that we had. faster than men's and faster than youth. what we merchandise correctly, we believe we will win. we understand her expectations are incredibly high foreus and that's where we want them to be. we firmly believe our women's

business should be as we said for a very long time at least as large if not larger than our men's business. >> just to tell you how important the women's line is. for context, we're talking about shares hovering near 52-week lows before today, dropped 35% from record highs from last september. still though the bullish case going to facts, the average price 96 bucks in change and 15% than current levels and upmove still leaves that and an interesting move here. under armour the hot spot for the day. >> when this was all first coming out, men's, they didn't have women at that point. we're standing in front of where under armour trades. he did not say anything about the global macro environment. >> it's interesting, you're right, there wasn't a huge amount of commentary but they did talk about the growth element in china and asia and it

was interesting enough, kevin plank started off the conference call with a reference to the bee lated happy new year in english and also happy new year in mandarin chinese. it goes to show you how much perspective they have on china being a growth engine. they also said this, wil fred and kelly, on the shoe side of things, kept reiterating, right now athletic shoes make up 17% of the overall sales profile at under armour where it was zero percent a decade ago. where they are putting their eggs in terms of the bet, that will be a big side of things. >> thanks very much for that. >> you mentioned how this was mainly men's clothe rather than both sexes and mainly under armour, base layer clothing. >> are you suggesting a name change? >> i don't know, it doesn't apply. >> over armour, armour everywhere. >> you can take that if you want

for free. let's get an update. >> we've seen a big reversal in shares of general growth properties and here's why, exploration an acquisition in general growth properties, u.s. mall operator has a value of $24 billion. it's important to note that brookfield actually owns 34% of the company and you can see shares of general growth was down as much as 2.5%, now up better than 3% as we close trade here. back to you, kelly. >> thank you so much. time for a cnbc news update. let's send it over to sue herrera. >> republican presidential candidate rick santorum and mike huckabee plan to join donald trump at a rally in iowa later today. this as mr. trump still vows to skip tonight's republican debate hosted by fox news. democratic presidential candidate bernie sanders releasing his medical records, the wuchb page letter says the

74-year-old is in overall very good health. it was from his physician of 26 years, who said sanders has been treated for high cholesterol and gout over the years. >> austrian police say an autopsy has not revealed the cause of death of a 25-year-old american woman whose body was found in her vienna apartment. the state department identified her as lauren mann from colorado working as a nanny. a teenage terror suspect in australia is accused of planning an attack on police officers by packing a kangaroo with explosives. the teen has pled not guilty to four charges to commit an act of terror and will face a supreme court trial. that is the cnbc news update this hour. back to you. >> just minutes to go before the close. we've got a little positivity into the close. we have the dow up 126 points and s&p up 11. and nasdaq leading the charge, up 1%. >> a leading trader will tell us what he's watching into the close next and we'll see if

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welcome back, less than half an hour to go in the trading session. we do have a rally today but it's been a pretty awful month. what are you keeping an eye on? >> the volatility has been crazy. everyone is focused on oil so much but we've gotten technical levels where oil may prove to hard to get through, so the stock market may face a little pressure. >> to the upside, you mean? >> 35 is probably resistance level. we got close to that today on news that maybe a 5% production cut from opec in russia is that really feasible? >> if it even happens in the first place. >> that may have already played in. a big day tomorrow again. >> we had facebook, a huge mover today, bolstered the whole internet space. how much does that matter for the broader market? >> it's more than oil, sector rotations, retail doing well after under armour and tech which underperformed the last

few days and oil services we had dividend suspensions and they've gone up. what's bad is now good for the market. what the fed came out and said they weren't as dovish as they could have been but the market sold off yesterday and rallying saying this is all going to be good. we're going to slow this thing down and things are acting accordingly today. >> we'll keep an eye on it. 20 minutes to go here. thank you. >> thanks, kelly, let's go to harley-davidson, bouncing back in the trade while the company came in three cents above earnings estimates this morning and missed on revenue. we're joined in a cnbc exclusive. morgan? >> thanks, wilfred. thanks for joining us, matt. >> my pleasure. >> great to see you again. just to chick this off, the year that was, you came in as ceo last may and it's been quite a year for you to take the helm here, we saw shipments down and

sales down and stock down nearly 40% over the past 12 months, us market share is down. is this the year where you reverse that downward trend? >> that's your expectation, it was a tough year, the currency shift that favored our competition here in the united states, our biggest market really hit us hard and i'm really proud of the team here because we rallied and put solid plans together, talked about that a lot in the third quarter earnings release in october. and now today it will start getting specific about what we expect to see for our growth, 1 to 3% this year. and the specific actions that are going to drive it and back it up. we have a lot of solid plans and confidence behind it. there's a lot of good energy within the building what we're setting out to do. >> talking about that guidance, shipments of 1 to 3%, you cut that down from 3 to 5%, your guidance last quarter for this year. why the cut? >> well, it wasn't actually guidance. officially this is our guidance but in october we came out and thought that based on our

actions at that time that we could drive 3 to 5%. lots changed in that three-month period of time when you look at sustained and lower oil prices, uncertainty coming out of china, asia pacific is increasingly important region for us and the effect of china within the region. and possibly cascading across to other regions and oil itself and the oil patch regions not just in the u.s. but in places like russia, western canada, the middle east, these are important markets to us, as we look at the macro economic drivers, we wanted to temper that back a little bit. we're very confident in what we're going to do to lead the motorcycle industry but the general economy is pretty shaking around the globe right now. >> tell me what the demographics is of your main customer base. i don't get the feeling and correct me if i'm wrong, that millennials are big buyers of harly davidson. are you trying to change that? >> it's a big focus not only going forward but it has been

for the last five years. we have this initiative to drive sales to outreach in the united states which is basically nonwhite males and in particular young adults 18 to 35 of all genders and ethnicities and made really great progress. we lead in our outreach segments with core and increased our leadership position. we were selling more of our mix today to young adults than we were five years ago, we're selling more harley-davidsons to young adults today than baby boomers when they were young adults. there's a lot being written about this but the facts aren't bearing that out. we're dedicated to it and committed to it. we've got great results to show behind it and more to do. >> i want to go back to something you mentioned before, matt, you said low oil prices and that was a subject on the earnings call earlier today that economies, be it texas, middle east, russia, western canada, have a lot of exposure to oil

and the impact we're seeing from the low oil prices that you're seeing declinecies on bike loans go up and retail sales come down. how much is that denting business? >> we've factored that into the caution in moving from 3 to 5 to 1 to 3. it's not a significant part of our business but it's important. we're seeing early signs of what not only the current low but the sustained low oil is starting to really pressure these regions and our customers in the united states are blue collar hard working americans that are working in those sectors and a lot of those oil fields and related industries are shutting down -- >> i'm so glad you're making this point. would you say on net the plunge in oil prices has been supportive or harmful to your business? >> well, we certainly thought in the beginning that hey, low gas prices will have money in people's pockets and they want to see that nn.

we're seeing more conservatism on that. consumers are cautious and uncertain about the future and strength of the economy in the united states. there's a little more reluctance on the sales side of the business and then the job risk for specifically the folks that are in the oil and oil-related industries seems to have more of an immediate impact. >> sounds like it could have come out of the federal reserve, matt? >> yeah. >> thank you, we appreciate it. morgan, thank you as well. >> do you think i should embrace my american move and get a harley-davidson? >> yes, the biggest one possible, one of these two ton hogs as they call them. >> you could or once they actually eventually we didn't get to this, once they come out with their electric bike, that might be a good option for here in manhattan. >> sounds much less cool -- morgan, you hit the nail on the

head. >> smooth ride, we tested it out 18 months ago. street bikes have been a big push. >> i'm going to stick with the trusty yellow cab. the dow is up to the tune of 115 points and s&p up 11 points and oil looking pretty, 33.6. >> we're just a few minutes from the release of earnings from amazon and microsoft after the bell.

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two huge companies reporting their earnings at the top of the hour. josh lip ton is all over microsoft. >> analysts expects to be up driven a a strong holiday season and growth in the cloud. that's not even the top end of amazon's guidance, last quarter they said they could be up as much as 25%. consensus calls for revenue, 39.5 billion, $1.56, if the core business performs reasonably well, expect more to go to the cloud business expected to deliver 2.4 billion in revenue

>> let's send it over to josh lipton for a preview of microsoft? >> microsoft cfo amy hood has a 90% hit right on hitting or beating her guidance since taking over in 2013. can she do it again? today wall street wants to see eps 71 cents. the focus will be on microsoft's growth in the cloud. revenue in the company so-called intelligent cloud segment expected to hit 6.3 billion. also, what is the company's broad outlook for the pc. intel telling us that market does remain weak. finally what did the ceo have to say about the broad macro environment. a range of ceo, including apple's tim cook have expressed new concerns. >> thanks very much for that. we've got 12 points in the green for the s&p and 138 for the dow with about 11 minutes left to

trade. >> and is this two-day come back for real? we'll share their thoughts on that next. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. weinto a new american century.

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welcome back, everybody, the dow up 133 points, we're heading into the close and joining us for more, anthony chan and david darst, is it friday? >> it's thursday and because i went to houston last week i've got to go skiing with my son on the other sibling. >> that's a tall order. >> you mentioned houston. is that the overwhelming influence on these markets? >> i think crude, china, corporate profits and credit. those are first four cs, the varsity four cs. the junior varsity, the consumer, the consumer confidence, currencies and commodities and the final four cs are capex, capitulation, cam newton, central bankers and

candidates, those are the 12 drivers, cam newton is a baker's dozen 13. china is the key. capital outflow, currency weakness, we've got to see a china turnaround to get the market moving. >> let's bring in another important c. anthony, what have you been watching and the fed yesterday that's relevant? >> i got the impression they pushed a pause button because the economy is sort of hitting a pothole in the fourth quarter and look for first quarter to be as strong, but not as strong as they wanted. i don't think they are going to do anything in march. with regard to following up on david, oil is very important. i recently did a studly looking at the relationship between oil prices when they are low, 20 or $30 and also above $100. 64% positive correlation when oil prices between 20 and 30. whatever happens to oil, happens to the stock market. negative relationship. >> if those panthers win, the

super bowl indicator will be working in the market's favor, right? >> yes. >> it's been a horrible january. >> i think cam newton and panthers and our friend mr. manning, who's a tennessee under grad are going to determine the confidence this country needs confidence right now. and the confidence can come from the authorities knowing what they are doing. chinese authorities, the european central bank, not doing that bait and switch in december. okay, be telegraphic and do it. >> guess what, if you look at consumer confidence as 3.9 times higher than it was at the bottom of the last recess. >> thank you. mike crow soft, amazon, visa, many others. >> stay with us. >> close starts with the letter. >> you both have a

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welcome back to closing bell. breaking news on zeer ox, they are planning to split in two, the announcement expected tomorrow morning. services business and hard wear business expected to get three board seats. you'll recall acs was xerox's big for a into services for $5.75 billion. that was quite a bit of market cap ago for xerox, expected to

get three board seats in the services created from the split. wilfred. >> thanks very much for that. we've got just over a minute left of trade, 136 points to the positive for the dow, the s&p is up 12 points,.85%. matt chesslock is with me on the floors. was it fed yesterday or oil price? >> i think it was a little bit oil but more earnings related today and that's a good sign going forward. if earnings are going to be what dictates the market, it's better than oil. the oil moves of 5%, they are not usual. we can't be correlated if we're a market expected to go higher. >> when we consider the oil prices moves, yesterday and today, bigout earnings like facebook, shouldn't we see more than.8% in gains? >> you would think so but all of the news so good isn't so good for the economy. durable goods number was really weak and we may have a slower first quarter and temper our expectations for the fed going

forward. >> thanks very much for joining us there. we've got just about 10 or 20 seconds left of trade. ringing the bell is the women in bioexecutives including christy sarno, five seconds left of trade, we're up 126 points on the dow. kelly, over to you. >> thank you, wilfred. welcome to "closing bell." let's take a look first how we finished to talk about the reasons why the dow is up 123 points today, s&p adding 11 and nasdaq up 38 points. the outperformer was tech and internet heavy nasdaq. facebook had a huge pump today and other things going to oil prices were higher and retail names like under armour and another wave of results to come in now, john fortt is awaiting amazon and josh lipton will cover microsoft and mary

thompson and meg terrell and julia bringing you electronic arts. thank you to everybody for standing by. joining today's panel first, mark santoli and stephanie link and fast money trader will join us off the floor in a moment as well. oil? what's going on here? >> oil pop gave us clearance, credited better, stocks can take advantage of that. i will say only six tenths of the s&p 500 and facebook and under armour earnings gave the green light for people to chase the growth stocks. >> that look growthy again. >> and managed to drive earnings. >> it's kind of an interesting day, you did va the fangs lead but you had energy and financials lead and what got hit the hardest was health care.

>> amgen's numbers are out. >> a big q4 beat coming in at 2.61 per share. revenue just about in line, $5.54 billion in revenue versus estimates of $5.53. they increasing its guidance after it just issued guidance earlier this month, 22 billion to $22.5 billion and eps of $10.60. raising guidance. on the call they will listen to how the launch of the cholesterol drug is going and any comments with biotech valuations coming down across the board. big beat for amgen. >> we'll see how those shares react and let's go straight to john fortt. >> it's a miss for amazon on

both the top and bottom line. slight miss on the top line, $35.7 billion in revenue compared to 35.93, the street was looking for a dollar of eps versus 1.50 that the street wanted. amazon said there was $1.2 billion worth of foreign exchange head wind. services came in at $2.4 billion of revenue. so that line, which is so important to growth did come in and you could call it fractionally higher than wall street on the cloud but the other numbers not exactly what the street was looking for. >> can you give us any more context on what they are talking about in terms of these different businesses? because usually when you see a nun on the earnings miss this much, you think maybe it's a gap versus nongap issue, maybe there's a one-off item we weren't anticipating? this is a big miss if it's apples to apples.

>> amazon tends to give a big range in guidance, it's not unusual for that to be somewhat off and for it to move after hours based on commentary that amazon gives. i will say that in terms of year over year percentage growth, electronics and other general merchandise in north america did grow 28%, which is in the range that we're used to seeing. in international media actually shrank and electronics and general merchandise grew 19%. it seems like international definitely lagging north america in terms of how growth happened for them. i will also look under the shipping revenue and cost line for amazon, to show how they did as far as third party retailers are concerned. as you can see from the action after hours, the stock now down more than 8%. investors in the afterhoushz not at all happy with these numbers. >> we welcome steve off the floor here. we a big run-up in shares ahead

of the results and given all of that back and then some. >> stock was up 52 bucks in the rel session, we'll give that back. the options market was handy capping 8% move. it typically has a big swing. this was a $570 sotock a week ago. i wonder if people will take comfort in the aws numbers. if so it's because that's the reason is the earnings driver going ahead. >> that story is kind of known. so that's the whole problem. a year ago, that was the positive surprise. learning about cloud and how profitable they are in cloud. this is a good number but i agree with you totally ran up. let's hear what they say about currency and in general about trends. the comp score data in terms of underlying growth was quite good. it had a nice run. >> but i do think to jump in on the amazon web services, it was known for a long time the

potential of business and last earnings cycle it whip sawed a lot of people, they had no idea how good the profit margins were and what the scope of the business was going to be. let's go back a couple of years. they never reported any type of earnings. so they screwed up with the minds of the analyst community and played a game here. let's take that back. they surprised a lot of analysts community that never thought they could show a profit. and then once they did that, i think a lot of people start to say, they are always going to show a profit. this is the new amazon. but i think you have to temper it a little bit on the results and i think that's what we're seeing and to mike's original point, aws is what people will hang their hat on and this is the retail of the future while we see brick and mortar go down the drain. i think people will turn around after it settles in and be buyers back in amazon. >> you mentioned we've been discussing the foreign currency impact and said $1.2 billion unfavorable impact year on year in the fourth quarter.

after some of the results we've seen, whether facebook or under arm our, amazon is the kind of company you wouldn't want to see any real excuses, right? >> without a doubt. the reason the stock was up today because facebook had a blowout number, fang got bought, maybe this starts to kind of interrupt that pattern a little bit. >> microsoft results are back we'll come back to amazon in a moment, shares down nearly 10%. josh lipton has more on microsoft for us. josh? >> microsoft just reporting 78 cents on 25.7 billion. analysts were looking for 71 cents on 25.3 billion. looking for the different business lines, revenue in the company's intelligent cloud, 5% to 6.3 billion, that's about in line with estimates i was sy seeing, revenue in the personal computing declined to 5% to 12.7 billion. and revenue in the productivity

with business processes and that includes office products, that declined 2% to 6.7 billion. that call starting at 5:30 eastern and we'll be on it. >> thank you very much. microsoft shares up nearly 3% but clearly guys the story is going to be amazon and what's happened here. how significant it for the market? >> well, first of all, when you look at microsoft, you have to decide -- >> amazon. >> either one, either one. >> i think amazon, mike has hit it on the head. you have too look at do the fang stocks after the sell-off in the marketplace start to gain a little more momentum back when people look at it and say where do i put my money? we have fang stocks -- >> that was today's trade. people thought this was the place to go to again. >> but the problem is, it's a bigger scheme. do you tail the money off on those trades in this year and say the underperformers have been the energy names?

forget about the commodity. do i have to start segueing out of these fang stocks perpendicular tudty or get back in. i think they get back to what's working. >> for first three weeks of this year it's been value on, growth not. so this might fuel the momentum to keep the trade going but they are selling off sales force.com and red hat and amazon. it will be interesting to see how they -- >> to me the big thing, if f, a, n and g went their own way. if facebook can stray strong, that's probably healthier than they all go up and down and sink. >> which we've seen, green on these names that we're showing you and today it's the other side of the story, amazon down 10% but netflix down almost 3 and alpha get 2%. >> think about where you're going to take that money off the table if you have profits, you're not going to take it off

in the losers, human sighology is to take it off the winners -- >> it will be interesting to see if apple can catch a bid. that's more of a value stock versus growth stock for sure. >> microsoft shares check in on real quick on how they are moving as well, up 4%. does that flesh out the narrative for people who would have -- >> i do think so. i also feel like because so many stocks had huge moves, this was a $56 stock a couple of weeks ago. they have a lot of room to move within the range they traveled in the past few weeks. that's why people optically it looks cheap. >> 15 times earnings versus 900 times earnings. there's a lot of ways to value amazon. it's amazon expensive stock with high expectations and microsoft not expensive with mediocre expectations but there's room to grow. >> it depends on sentiment.

>> and they can build on the cloud momentum for sure. >> that argument has been around. we've been talking about this for years now on fast and we've been talking about the valuation on amazon and everyone continues to say, you have to sell it based on the valuation. but it depends on what prism you're look at this through. >> let's pivot for a moment and get a broader read on things with visa. >> visa coming in with adjusted earnings that beat estimates by a penny. 69 cents a share. in the quarter, gain of 225 million linked to the put option on visa europe. once you include that, it earned 69 cents a share. revenue in line with expectations at $3.6 billion. the company saw strong payment growth on a constant dollar basis, up 12% processed trans skss, limb bttle bit lighter th expected and cross border value, a little better than expected,

up 4% during the quarter. the company did not change its outlook for the full year despite what it said subdued domestic activity across all geographies as well as cross border volume that could impact the full-year outlook. for now it's not changing the guidance. the company will be holding a conference call at 5:00 eastern. we'll listen for any headlines. back to you. >> what do you think, stephanie? shares up 3%. >> down 10% from its high and low expectations, everyone thought they were going to lower expectations because of currency and the fact they are not, maybe they see more synergy from visa europe so they have a little cushion, a special situation story at visa. it's not cheap but it's come down enough that maybe this is good enough. >> all right. >> let's get back to amazon now. those shares really hit after hours on a big earnings miss. john fortt has more. >> specifically on aws, that's

cloud growth up 69%, i want to point out versus 78% growth that we saw last quarter. also, as far as logistics goes for amazon, 5.5% net shipping cost as a percentage of revenue. that's slightly higher than we had seen recently but also 47% seller units, that's third parties bringing their things for amazon to deal with. that is actually higher, which is good for them. want to switch over to microsoft. this is a strong cloud quarter for them in context. they say that azure, their equivale equivalent, was up, hard to compare apples to apples, about 140% is pretty strong. office 365, gained about 2.5 million consumer accounts in the quarter. they had been going about 3 million account clip but still shows strong growth. also, server, that's windows

server and both cloud and noncloud was up 10 percent revenue wise, weaker than 13 percent but still double digits and considering what we saw from intel, it looks like they are better executing better than its peers, whether cloud or more traditional i.t. enterprise setup. >> he mentioned the net shipping cost at amazon going up. i wonder if this is going to be yet another new chapter for the company. we've seen a number of new initiatives come out of them, whether involving trains or container ships and if you warrant want to stay with us, this is what it's going to look like. is that going to change significantly. >> potentially, if they keep wanting to do more and essentially still do the whole mega long term thinking, yes.

before they reported earnings in january of last year, it is a $309 stock. it's doubled. noz at if we're discovering what is driving the business in the near term. there's a lot of room to go either way but that's not what you have to -- flip a switch and cloud growing tremendously every year and about moving stuff around the world. >> and investing significantly. we have electronic arts coming in. let's get to julia with more. >> kelly, ea shares moving lower after the company's revenue missed estimates as well as its fiscal fourth quarter guidance missing estimates as well, revenue coming in at 1.8 billion, missing estimates of 1.8 billion by a hair. earnings beat estimates by two cents coming in for $1.83 per sha share. one of the reasons it is move sog far lower is off by more than 8% because ea raised its full year adjusted revenue

forecast, we're currently 4 at the time 25 billion from 4.5 billion and raised profit forecast per share. only raised it slightly and they did come in lower than analysts hr expecting. they did have one other interesting note, sales of battlefront already surpassed 13 million units, which is the number of copies it had expected to sell by march. some strength in the current quarter, the holiday season does look like fiscal fourth quarter is not so strong and that's why the stock is moving lower. >> julia, thank you so much. steve, they sold well star wars battle front but it wasn't good enough. >> when you see what's factored into the names, we see it with disney and the star wars play, people really got in front of electronic arts with that star

wars angle and judging by the after earnings activity, people are already factored into the price. >> they think its run its course. >> thank you for joining us, steve. coming up next hour, the man who called the january swoon has a bolder call for crude. carter worth will explain at 5:00. amazon shares are down 13% after hours and microsoft up 7% and how you should be trading these stocks and could an oil production cut spark a crude comeback and fuel a wall street rally? we'll try to get a longer term answer to that question from one of the most widely followed analysts on the street.

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welcome back. checking in on shares of amazon and microsoft, big movers after hours, amazon shares down 14%. microsoft up more than 7%. and we'll get to more on those in a moment. first, carl icahn talking about the plan to split into two companies. >> that deal expected to be announced tomorrow and mr. icahn will get three seats on board. just hung up from a conversation with him, we think this is a

major move and will greatly enhance shareholder value. i've had several meetings with the ceo and applaud her for doing what she believes the shareholders want just as they did with ebay and paypal. i hope the results will be just as good and board and management of aig will respect the wishes of shareholders the same way if it turns out, which i think it will, that the majority of shareholders want to see that company split. what's interesting here, this is sort of the forgotten play. there's been other stocks he's been involved in, wlz it freeport mccorpsen. he'll get three board seats as well and calls out aig. that company just announcing a bit of restructuring but doesn't appear to be quite as much as icahn is hoping for and this

statement that he wants to continue to push for what he wants and references what ebay did with the split between ebay and paypal which he argued tore some time before the ceo made that move. the latest from carl icahn, instant reaction to the deal with xerox. >> what the journal is saying about the story, planning to split itself in hardware and services. i don't think xerox is in a position to say don't bother us, our plan is working. i don't know he would love the hp example either, neither of those pieces has performed particularly well. and still it's not a good idea, to separate these things out and value independently, not the same business. >> we'll see if aig is next. >> amazon missing on top and

bottom line, down 14%, 13% after hours. joining us for more is benchmark company and our own john fortt. dan, what do you do with the shares now? >> i think this is a buying opportunity. look, something nobody is talking about, the guidance wasn't that bad. the consensus is comfort my within the guidance range and operating income line, consensus at the high end of the range but typically other than this quarter, amazon that's beaten that range in the past. i would use it as a buying opportunity. >> how do you think margins on the cloud business are going to progress throughout the year? do you think we're kind of at the max in terms of what we can see or do you think there's upside there? >> i mean, when you've got over 50% down margins in the cloud business it's hard to argue for significant upside.

john mentioned earlier, growth of 70%, exceeding aggressive consensus estimates, they are going continue to be price cuts but amazon with this investment spending, they are starting to realize kpacht in warehouses and data centers, as they continue to fill that capacity, clearly there's -- ideally they would get margin expansion or keep it stable. >> john, you agree? >> yeah, i would agree. i would point out that the results that amazon turned in stand in contrast to facebook, not quite as much of a home run adds those were. you probably called these a solid double. within the range that amazon gave and did face significant foreign exchange head winds and looking at the international line on their business. if you take currency out of it. electronics and general merchandise grew quite a bit, looking at this, 29% for 12

months and then on the quarterly basis, 31%. so it grew quite a bit if you take currency out of it, you have cloud growing quite strongly. i would watch the action on the conference call when they talk about how much they plan to invest because it does tend to move all over the place. >> even if you see this as a buying opportunity, if you're a long-term holder, this was your holiday quarter for amazon. what are going to be the catalyst or sign posts out there for an investor who still at these prices buying in at tremendously higher prices than a year ago? >> that's a great yes. i think amazon till needs to continue to execute. one of the biggest concerns is they've got maybe distracted with the other areas they are investing in. but for us, as long as you have that solid back bone of amazon web services growth, that's really been the profit engine for the company.

until that decelerates meani meaningfmeanin meaningful meaningfully, as i said earlier, looking at international as john pointed out, even with fx consumed in the guidance, it is above consensus given their historical conservative nature. there are no changes to the fundamental trend and this stock was even higher almost $700 at one point. i think it's still worth a good value here. >> sticking to the target, 700 bucks. update us if that changes. >> you got it. >> john fortt, thank you so much as well. microsoft is higher after hours, shares up better than 7%, little shy of that more. ivan from tigress and both have hold ratings here. would you be more bullish now? >> not really. you still have declines in their sequential declines in the core business of the azure cloud

services and the microsoft office and of pc sales. you have just because they've declined less than expected and that's why the stock is up, you have the three key business areas in decline. >> robert? >> well, we would be a little bit more positively inclined. i agree with the comments. what we see here happening is investors were concerned going in in terms of eps multiple and the fact they were able to beat by almost 10% on the bottom line gives investors more confidence here they can grow into this expanded multiple over the last five years. >> so for either of you, this company is generating an enormous amount of cash flow and people have constantly been speculating that they buy sales force.com. do they need to do a big acquisition to keep the momentum going? >> yes, i think -- i still say they should buy sales force.com. it would be a great fit. as far as investors, i would be a seller of microsoft and buyer

of amazon on the dip. amazon's comparable cloud business was up sligtly while microsoft was down slightly. >> say that again? >> i would be buying amazon on this weakness because their cloud business was up and selling microsoft on the strength because their cloud business was down. >> okay and robert, bringing it back to stephanie's question, sales force, do you think it would be a good fit for microsoft? >> i personally think it would be a great acquisition, approximately three or four years ago when microsoft was going to buy yahoo! i wrote a note suggesting they buy sale s force. it would be a great anchor complication and combine that with office 365, two of the most dominant anchor applications within the enterprise cloud. it would be a great acquisition. >> robert, granting that for microsoft's perspective, it seems that people are looking to sell sales force to various

buyers, is there a sense in which this company is prepared to sell itself to an old pc tech company? >> well, i think it comes down to what position you could put mark benny hoff him in you made him the chief operating officer and sat side by side, they could get a deal done. at some point it comes down to what kind of position can you offer mark. >> we've got to go. i but i want your opinion before we do. >> i agree. i think the merger between microsoft and sales force will create a new company and i think that mark is a phenomenal leader and would do a phenomenal job leading both companies together. >> i love how this became a discussion about sales force. it tells you a lot about sentiment. thank you both. appreciate your views. up next, beyond amazon and microsoft and sales force, a few

smaller names are making big moves after hours. oil prices still near multiyear lose but we have somebody who says gasoline prices will rally over the next few months, regardless of what happens to crude. stay tuned. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday.

there's been a huge amount of afterhours action. >> some of the big tech names like apple among others, reporting a beat on earnings, 35 cents adjusted versus the 30

cent estimate. revenue topping analysts forecast at $6.76 billion, that stock better than 4.8%. a mixed report from western digital. earnings beat estimates 1.60 adjusted versus $1.54 and revenues at $3.32 billion. of course western digital has been hurt by the decline in pc sales. and even after hours down about 1.7%. >> thank you for now. time for a cnbc news update. >> a man found to be carrying two hand guns has been arrested at a disneyland paris hotel. a 28-year-old european whose bag contained the guns and copy of a koran. the female companion that he was traveling with also was detained but no one was injured during the arrest and the park remained

open. viacom executive will undergo an exam by a doctor hired by his exgirlfriend. according to her spokesperson, part of a lawsuit over redstone's mental capacity. a judge has scheduled a february 9th hearing on a motion by bill cosby's lawyers to toss out an defamation lawsuit by janice did inson, while the hearing is pending on a dismissal motion. they are closing the well necessary center in paloalto after deficients at the lab that pose immediate jeopardy to patient health and safety. a story meg terrell has been following closely for us. i'll turn it back to you and see you tomorrow. >> thank you very much. >> oil rallying after the energy

minister said saudi arabia posed production cuts, how that could impact oil prices is straight ahead. plus, we'll explain why the oil sell-off has everybody in canada talking about the soaring cost of cauliflour, we'll be right back. it's hard to find time to keep up on my shows.

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here's how we finish the day on wall street. we did have oil prices moving up today for some reasons we'll get into later but we had a big pop of shares of facebook. and now on back of that, of course, some disappointing results from amazon could flip things the other way tomorrow. let's take a look at the names reported earnings earlier this hour. amazon shares are down more than 11% and electronic arts down 7%. on the flip side, visa and microsoft are in the green. microsoft up 7%, now up 4. amgen slightly in the red. we mentioned oil and may have rallied on possible opec production cuts but my next guest says he's not sure we've seen the bottom.

tom, good to have you with us. you think it could get worse here? >> i think it could definitely get worse for crude. when we really look at it, nothing happened today. you have russia saying that they want to have a dialogue with opec countries, which one would expect them to say. and all of the rally and volume was in the front month. i think these were speeshs reasons and i think the next 90 days be going to be incredibly ugly for oil fundamentals. >> why? >> there's a glut. you could put numbers on this and say there's 2 million or $3 million barrels a day. refineries are just starting to get into the middle innings of their maintenance season and that means less demand. this is the tough spot. then you get better in the spring and summer and then the next tough spot comes in the fall when refineries don't need as much crude oil. >> are we not yet in a position

where even a whisper of this potential talk will change the psychology of the oil market, or does it not have a chance against the supply you're seeing? >> i think it has a chance to change the psychology for 48 hours, 72 hours. look at last year. brent traded at $46 in january then it was all the way up to 62 or 63 in february. this tradition to buy february, to buy some of the front months and so forth, but that proved to be kind of a fool's rally last year and proved to be a point that probably kept the oil glut going with companies hedging some of their production in that little spring rally that put us above $60 a barrel. this is going to be a long slog for crude oil at least. >> stephanie, is that the last thing you want to hear? >> yes, because i was adding a little oil today. but i still think you want to own some oil. i think you want o own some quality oil. i'm owning best in breed, like

the number one guys in each industry, like chevron, because they've been able to weather the storm and i want strong balance sheets and don't want dividend cuts. last week was very encouraging with slumberger. you don't need to go to bottom of the barrel in this space. you can find some values elsewhere. >> that's a view that many are now coming around to, where and how do i get selective in this space? anything you would say in rely? >> if you're buying multinashlts you're probably fine and five-year time horizon you're probably fine. if it's five weeks or five months, you're in trouble. i do like refineries over the next five months because gasoline will scream higher in the spring under usual reasons, cheaper prices drive a little bit more consumption and refinery maintenance -- >> if it screams higher, you're going to hear screams across this country. wait a minute, oil is at record

lows, why am i paying more at the pump? >> we're going to pay more at the pump because refineries are going to be processing less crude. there is a glut of crude oil but just in time inventory, shallow inventories across north america don't allow for a glut of gasoline. at some point there will be plenty of gasoline in the seconds half of the year. in the spring, it's like hope spring eternal for cubs fans every year, it springs eternal for gasoline prices every first quarter, early second quaurtder. >> do you think we start to see more m and a from the stronger player snz. >> there's a lot of weaker plans hoping for it because they may not be able to service the debt if we get back down in the 20s again. i do think that's a possibility. i absolutely disagree with what dennis said i think this week about oil never getting back

above $44 a barrel. but i don't think it necessarily gets there in the next few months. probably 2017 and 2018 considerably higher than that. >> tom, thanks a lot. couple of things for us to keep an eye on there. >> take care. tom kloza there. let's send it over to sima. >> a big tech mover on the move, fortinet, reporting a beat on earnings -- in line with estimates, 18 cents adjusted versus 18 cents, revenues did come in higher than expectations at $297 million thanks to an uptick in billings and the company also announcing a $200 million stock buy-back plan. you can see the stock up better than 13% after hours. >> a big pop there. thank you. meanwhile, amazon getting crushed after hours. the conference call starts in a little more than 15 minutes. amazon was down 14%. now down less than 10%.

nonetheless, stakes are pretty high. we'll tell you what to listen for coming up. how will oil prices have turn eed cauliflower into a hot topic in canada? you're watching cnbc, first in business worldwide. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him.

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and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. welcome back, some american consumers may be cheering lower oil prices, our neighbors to the north are feeling the pain. how crude's drop is affecting

canadians. hi, deirdre. >> oil may be lower here as well but canadians need those savings to buy things like cauliflower, this humble vegetable is a national talking point. seen in the aisles as much as as $8 and 6 u.s. dollars. and celery for triple the price it was a year ago. that's because canada imports 80% of its produce and hovering around 13 year lows they are feeling the pinch for every day items. the finance minister telling me it could stay that way for a while. >> i'd like to see the increase, canadian dollar, i don't see that happening in the immediate future but ultimately it will. >> now that's a problem because especially since there's talk of dipping back into last year's recession. if oil stays at these low levels, it could get a lot worse

because canada's economy is heavily dependent on resources. oil here is expensive to produce and it sells for less. the pain now is spreading beyond the oil stands to the energy heavy stock market to foreign investment, to the canadian psyche. remember as well, that canada is the number one export market for the u.s. so if the economic mood darkens here, that could spell trouble for businesses over where you are. >> that's a point, deirdre. how expensive is cauliflower. >> $8 canadian that's about 6 u.s. dollars. nearly perfect correlation with oil. if oil goes down, and the dollar goes down and this will be more expensive and some restaurants taking it off the menu. >> perfectly illustrates the double whammy for canada and a lot of countries. >> the stuff you're buying is not going the same direction as the stuff you're selling.

>> and income may be going down too. >> i guess if climate change is real and has momentum, he can plant for vegetables, we're getting rain in california, which was a big issue with produce prices. >> his competence in the loonie, i don't know if we see that. >> i'm worried about the banks and now the consumer being pressed here. >> and housing market got overheated. >> they really have had. it's been bad there for some time. >> up next, much more on amazon's big earnings miss and what that means for the market. we're back in two. breakthrough. this morning i read over 4000 articles on leukemia. in less than a second. (speaking japanese) thousands of new laws were published yesterday and i'm up to speed on all of them. i know every detail of every public quarterly report in the last 20 years.

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welcome back. amazon shares sharply lower after reporting a big earnings miss this morning. john, what are you going to be listening for on the call. >> the more i look at these numbers, the more i think they're actually good. >> really? >> you know, i'm looking across some of these lines. you take a look at aws. there was more operating profit that they delivered in this quarter than in all of 2014. the operating margin was 28.5%. that's the best that we've seen

in several quarters. and amazon prime actually had a very strong showing. they point out in a couple of lines, one, prime video internationally nearly doubled over 2014, as far as the number of streaming customers. and worldwide paid prime memberships up 51%. 47% in the u.s. so those are all really strong metrics. now, granted, computers trade, people trade based on the numbers that were expected. but when amazon breaks these down in a call, we'll be listening for how optimistic they are in growth overall. third-party sellers, nearly half of them are now using amazon logistics system. you're able to get that stuff through amazon prime. that flywheel is working for them. yes, the stock is down, more than 10% at this point after hours. that can't make investors feel good. but there's a lot to like in this corner. >> listen, if it's down for the

right reasons, that's an opportunity. there can be a couple of kind of earnings. you're investing a lot in the future of the business. that's ultimately going to be a positive thing. or the kind of miss because demand isn't there. given a sense of what's going on here? >> it certainly seems like the demand is there. i think people got spoiled with the beets, and leverage. you didn't get off on the leverage. that's fine for the long term. it might give a pause in the stock in the shortchange. >> companies don't particularly trying to make the quarter. amazon is one of them. you have to filter that into the process that they didn't do everything they could to get $1.50 a share. >> a lot of people will ex out the impact of the currency. up against major trading partners. the question is, is it something you should look past or is it a legitimate reason for the earnings to suffer? should they be somehow punished for it? >> i think when you have, at least from my point of view, when you have the underlying operations that look good, i can

look past the currency. particularly when i think we're at sort of the peakish across the board. underlying business is good. >> mostly a translation effect. you should look past it. if you're going to hold the stock for a long time, currencies should even out. >> it's like running. john, last word? >> i don't have a last word, kelly. i am going to let the call speak at this point. we've got a number of numbers we've done through. they did make those cloud numbers. those have got to be important and they did it with a strong operating. "fast and furious" this hour, for many of the companies that just reported their results. we'll tell you what to watch for and bring you numbers to listen for as well. ursula burns will be here to discuss the just-announced moves her company is making.

splitting under two under pressure. tomorrow at 7:00 a.m. eastern. stay tuned.

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will you be watching and which will have the more impact on the market overall? >> i think amazon will whip around the nasdaq depending how it trades through the conference call tonight. i think chevron matters. honeywell, i want to see the industrial earnings streak. it's been okay, if it might continue. >> the durable goods number this morning was horrible. >> for sure. we talk about that for a couple of months now. it will be interesting to see if honeywell trades like 3m did. they were able to deliver. really clearly the best number. you've always been seeing some of the second tier or some of the companies that have the exposure like caterpillar because of expectations have come down so much. that's a group that i agree with you, that will be very important to hear what they have to say, and how they react. >> as you just said, if amazon can come back off some of the lows as more people get more detail on that call. >> last trading day of the month, too. it's been weak.

this is a strong historical stretch the end of january. >> we've got to get rid of this month. >> mike, stephanie, thank you both so much. what's on tap? >> of course, we're going to be tracking all the conference calls. one top technician said three-day rally in oil, not so sure. we'll show you the chart. >> okay, over to you. "fast money" starts right now. i'm melissa. i have the traders on the desk here. the tale of two techs. amazon was a huge miss. the stock is tanking. microsoft is out on the top of the beat. shares are rallying. we'll bring you all the headlines on both conference calls as they break. there's something wrong about the charts, and he'll tell us what that is. b biotech stocks lower. first, we start off with