year by golly. >> a rally from raleigh. >> are we seeing a shift away from growth and value with net flex? >> and convergence. >> thanks for watching "power lunch". >> have a great weekend. >> "closing bell" starts -- >> right now. >> hi, everybody, welcome to "closing bell" i'm kelly evans. >> and i'm wilfred frost. happy friday, a big rally on wall street but don't let today's green fool you, it's been unugly january for stocks and dow and s&p on track for the worst months in august and nasdaq since 2008. >> i don't like any comparison to that year. the reason for the rally today, surprise move by bank of ajapan, a negative interest rate policy overnight. what this could mean for the broader markets and for the fed. >> two stocks clearly sitting out today's tally, amazon and

netflix. disappointing earnings yesterday, alphabet is the last company in the fang complex to report earnings, we'll tell you what to expect when they report. >> i fang complex. what a term. concerns about the zika virus are growing, could the best way to tackle the virus be more mosquitos. what he says could stop the vir is from spreading coming up. >> negative interest rate strategy and impact it could have on the fed, steve liesman joins me now. >> you have to say the rally seems based on the surprise boj move and speculation about the fed. robert cap lin saying the boj move will affect the dollar and fed takes note of that. there's good reason for the fed to be patient on policy

especially because of oversatisfies challenges that will affect the u.s. economy. the impact of the weak overseas growth and stronger dollar showed up in the gdp report this morning. falling 2.5% in the fourth quarter. decline in investment, dragged down by sharply by the falloff in sprending for oil wells and equipment. one bright spot, consumers who were weaker than the third dwaurter but still grew their spending more than 2%. they are a big reason why economists do expect growth to improve this year. but it's likely the fed will have to see real growth and real movement towards the 2% inflation goal if it's going to hike again. right now with the boj, european central bank sporting negative deposit rates, the fed is more alone than ever and looks like the bet on the street it won't move much further from the central bank partners. >> we saw an interesting response innic quits globally, particularly in asia, everything was green, even the likes of

korea, rivals with japan. that spread across to u.s. trdel as well. as opposed to reigniting a global currency war, is that fair? >> i think both are possible in the sense that we did see the yen depreciate today. i looked by the way at the trade deficit with japan. it grew 12% through the third quarter this yir compared to a year ago. i think there's a short term negative that has to do with even more pressure on the u.s. manufacturing industry but longer term if the foreign economies can get their act together, we have the head of xerox say, if you can get japan going, that's going to be good for us and ultimately good for the u.s. >> it could complicate things for china, steve. as the yen gets weaker what happens to the chinese currency and what are policy makers there going to do? >> each policy maker right now is doing what's best for them.

it would seem and some economists are already calling for this, there needs to be a little more global coordination here, that these potential begger thy neighbor policies will cause more serious issues. the u.s. has taken it on the chin. and there's a question how much politically we have a stomach for that. >> we even have people drawing comparison to the 1985 plaza accord when there was a period of dollar strength and took a global response, maybe it's the shanghai accord, g-20 meeting. >> good point. let me point out the san francisco fed president john williams will give a speech at 3:30, we'll be monitoring and breaking with market moving comments. a person who was dofish and moved to center and hawkish on rates when i interviewed him in january. he'll pay close attention if he's changed his opinion to where rates will go. >> one point as well, bank of

japan, global accord a long way away, even the bank of japan accord was tight, 5-4. we're expecting more easy but it could turn around quickly because it wasn't a unanimous decision. >> great point. on the point about discord, let's get to the closing bell exchange. and peter kosik and rick santelli, a little bit of oracle of the market thing going on with you. we got down to bargain lows and back up to 1928. what do you do here? >> obviously you know i dip my beak a little bit when we got trarked two weeks ago and i think we'll have another opportunity. i'm not buying kool-aid that everybody else is buying about the bank of japan going to a negative interest rate. if the fed decides to cut rates back to zero again and then starts thinking about going to a negative interest rate, i don't

think that's a positive. there are some people that have said that's -- the potential of that happening at some point if there's not an expansion in the economy that they want or whatever, that they might even go to that level. i'm not buying that. it's time to get off -- it's let the economy go where it's going to go sean let's look at earnings, what we should be doing now, talking about earnings and go from there. we have to deal with oil obviously but it's about earnings and what these companies are looking ford, second and third quarter. >> what are you attributing this rally late in the month to. >> they had money to spend and you have some positive news this morning, i don't think it's a positive but there are people taking it as positive. and i think that they are trying to get back into the market a little bixt starting to think maybe there's a possible for some erngsz growth or at least not earnings growth but price appreciation in the stocks as they move money. and i think they are going to be sadly disappointed.

i think there's going to be another opportunity and another pull back where we'll be back in the market again. >> flesh out the story if you would. explain why you see if you guys do the bank of japan's moves as a positive and how it could possibly bolster stocks elsewhere. >> it's a positive for japanese corporations, talk about earnings, japanese companies have doubled earnings over the past two years, that's one of the reasons the japanese stock market has doubled in value. it's not just about gdp in japan. it's about these japanese companies that are multinational and that are a wash in cash. there's about $100 trillion in retained earnings now in the japanese stock market. some estimates say that's close to 30 prsz of the market cap of japan actually in cash. what are those companies going to do? they are under pressure now from pension managers and from the government to increase return on equity. how are they going to do that? likely to put that cash to work in terms of paying dividends to share how olders and buying back

stock. some of the fastest dividend growth is happen being in japan. >> do you think we'll see the ecb and pboc have to follow suit of the bank of japan? does that mean we're back on a u.s. dollar strength story for the rest of the year? >> i would say the first part is yes, the latter part, i'm not sure, yoo know what type of staying power the fed has to follow what i would consider a better strategy. i think if central bankers greatest fear is disinflation, what the bank of japan is doing and draghi is doing and janet yellen continued to do in my opinion, actually cements the notion of mutually insured disinflation and they are going to get the worst fear because they are baiting it to happen. whether the japanese stock market goes up or buy shares and do sade rerun of everything that

happened here before the fed realized it can't go on forever, i don't know. peter made a very interesting comment. many think it's a good thing, i'm sure the receiving end of dividends and that's a great thing but there is a larger question about global economies and debt and servicing debt and think of the notion that japan is getting ever closer to 300 percent debt to gdp. it's mind boggling that anybody could consider this good policy and good outcome. >> do you think this is mutually assured disinflation as rick put it? >> well, definitely there are long term concerns to be mindful of. in the case of japan, half is owned by the central bank, not as if they are facing a pending crisis. it's hard to make a call on the long-term debt cycle. in time in the last 45 years you've been wrong. i don't know if it will come to an end the next six months or

six years. but in the meantime it's hard to fight these central banks and not take advantage when the trend is your friend. one of the most powerful trends in the world is the weakening yen and run-up in stock prices in japan that are still only trailing at 15 times earnings. >> rick, with japanese bond yields at .1%, 10 year negative through five years, germany 10-year, even if we do get all of the hikes that the fed has talked about this year, are u.s. bond yields anchored by what we're seeing around the rest of the world? >> it's very difficult to get a handle when boom yields were moving lower in anticipation of firing of the bazooka and 10-year boone yields lower sentiment was 7%, had a huge influence on us because the globe is interconnected. i think that our federal reserve -- and i know their heart is in the right place but i'm not sure there's in way to

extrick indicate. handfuls of individuals in fancy offices are never going to get it right. i can't tell you which part of the water balloon will squeeze out but there will be one, guarantee that. >> i can't believe the 10-year, 1.92%, just extraordinary. >> absolutely right. the other thing to finish off on that point with the japanese yild, only.2 to.1, it's marginal -- >> it dropped by 50%. i take your point. >> because on vix we say 50%. >> i know, inconsistencies abound. >> that's a good example. >> thank you for joining us. watching markets here with 15 minutes to go and you've said a lot of notes already off the top of the hour. >> start saying zero. >> what are we going to do with him? >> the dow is up 311 points, s&p

500 and nasdaq despite amazon up 75 points. >> we heard from first three fang stocks, facebook amazon and netflix. we'll discuss what to expect when alphabet reports on monday. >> the latest on the spread of the zika virus and treatment and development that sounds like sci-fi but pretty high tech. we'll tell you what that is. you're watching cnbc, first in business worldwide.

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>> eric: clo -- closing out the month of january and what a tough month it has been. the dow is up 310, we're near session highs and s&p up 37, nasdaq up 80. let's take a look at the biggest gainer in the dow this month. by the way, there's the month to date performance. what a tough month it's been and nasdaq down 8% and these are like full year declines you wouldn't want to have. >> but not as bad as china, down 23% in a month, so relative.

>> thank you, there are parts of the market that have been hard hit including biotechs. >> let's look at the dow. walmart, american express, two sides of a coin. walmart up 8% and amex down 23 a month. we have breaking news on fan duel and draft kings. what's going on? >> the new york times is reporting that the payment processor vantage entertainment will stop working with fan dual and draft kings, suspend processes related to daily fantasy sports in the united states and territories own february 29th. "new york times" saying this is the biggest blow yet to the daily fantasy sports industry. cnbc has reached out to draft kings and fanduel and will bring you any statement we get back. >> thank you, sima. we'll have more on the story but

this is what happened with online poker. once you have the payment processor we're not sure we can get involved, it puts pressure on operators. >> and drag on this news flash on this once a week i think. a quick market flash on facebook. bertha has that for us. >> today we're watching the markets cap, within about a billion dollars or so of exxon-mobil's market cap. some would say, list p, exxon-mobil has ten times the revenues of facebook but when you take a look at the growth, you can see why. exxon's revenue last year were down 6.5%, facebook's was up 58% and facebook is one of the few stocks here on the nasdaq that is up for the month of january and only fang stock that is in the green year to date. back to you. >> bertha, thanks very much for that. so far three of the four so-called fang stocks reported

earnings, facebook, amazon and netflix. on monday we get results from alpha gbet formerly known as google. >> mike santoli joins us. >> we're watching to see if google changes the story. each company has gone its own way upon reporting. the fang stocks are not trading as a unit, netflix was the first to report a net disappointment but the market didn't take it well. performed rather poorly since that report and not really been able to catch much of a break since then. facebook is kind of stealing all of the oxygen. cross the board on a sailable beat on earnings. i would say that amazon is somewhere in the middle. a 10 percent runup in the week before the report. it seems a mixed report, eye of the beholder but desell race in the metrics and down 8% tbd.

that's the set up for google or ago if a bet reporting for first time in a new setup with the main unit separated from the other -- >> what's it going to look like? how might it be from what we're used to seeing? >> hope flfully you get more transparency on the core business and you'll know how much each of the other bets will have it in terms of revenue, if not in fully in profits. what's interesting, the street's expectations are relatively high going into this report, not because the stock is only 4% off the all time high but the estimates for this quarter or for 17.5% year over year profit growth. that's the fastest pace in five quarters and revenue growth, fastest in two years, there's some premise for that, not as if people are pulling these numbers out of nowhere. the earnings estimates have not come down, been solid since october 31st. it seems the bar is relatively high here. >> either way the results this week have seen massive moves in

both directions, amazon again today very big one and facebook in the opposite direction. google is the most mature of these companies. can we expect more like a one or two percent move or is this now par for course, we'll see huge moves? >> you're absolutely right. not only most mature but largest, half a trillion dollar market value and i do think also it's been reporting since 2004. we kind of know what this business is. i do think if they have a shortfall, you're going to start to hear perhaps a little chatter that nasbook is stealing market share from google advertisingwise but people love the new cfo and focus on productivity. >> mike, thank you so much. we'll see you in just a bit. >> the dow is up to the tune of 310 points. the s&p 36, the nasdaq 80 points. a nice finish to a tough month. >> apple down 8% so far this year but we've got a retail

investor who still lostz the stock and he'll explain why. >> the latest developments on the alarming spread of of the zika virus and ceo of intrexon speaks to us. stick with us, you're watching cnbc first in business worldwide.

welcome back, we're looking at about 2% gain and of course it hides the falls that we have seen throughout the rest of the month. gilead is hitting a all time low as moerk moves higher. john martin is being replaced and remaintains his post of executive chairman. >> the zika virus can cause feverish symptom and birth defects. so far 31 travel associated cases in the u.s. and american airlines saying it's too early to tell what impact this will have on travel. >> in the fight against zika, oxi tech is working on a

genetically modified moss keet co-to help combat the spreading virus. joining us now is randal kirk and meg terrell who closely covers the space. >> thank you for joining us. >> thank you, meg. >> i'm very curious to know, given the status of where you are testing this technology and concerns about it, can this make a dent in this zika outbreak we're seeing right now? >> very definitely. we think we have the only proven practical and ready to deploy solution. >> tell us where it's being deployed already and whether it's even being considered to help with olympics ahead of when they start this summer in rea i don't -- rio? >> currently deployed in brazil and field tries in the kay mans.

>> is it being considered in rio around the area for the olympics? they are doing a lot of control efforts to get rid of standing water but what about this method? >> well the olympics are a little over six months away. it would not be possible for us to scale to that size at this point. but that's not to say we may not be able to do something. we're in dialogue with numerous officials in numerous governments and nongovernmental organizations at the present time. i'll leave it at that. >> well, it was last summer that we had bill miller on show that first flagged intrexon and what you're up to. take a listen to what he had to say back then. >> intrexon has the technology, first genetically modified apple that has approved doesn't turn brown. it lasts longer. that's another thing that this can do.

also involved in like salmon fisheries and could be the largest market cap company in the world. >> so genetically modified apples and now mosquitos. going back to bill's point whether you could be the biggest market cap company in the world, wait a minute, the shares are down 45% said he said that and people are wondering, how are you going to make money on this particular application with the zika virus? >> that's a lot of questions, meg -- >> it's kelly. >> sorry. >> with regard to value, we focus on intrinsic value at intrexon. we don't try to really influence to any great extent the market value other than by growing intrinsic value, it seems that's the best strategy to obtain the ultimate result. with regard to how large intrexon can become, it genz on how well we execute.

we all live today in the most poignant moment in history and that the engineering of biology recommendation the greatest industrial vehicle tore that has been seen by man kind. it will keep me busy throughout the rest of my lifetime and will keep people busy for thousands of lifetimes there after. >> is this treatment for the zika virus profitable for you? >> not today. not today but if the question is can it be? yes, it most did he haefinitely >> if it's a great use of your technology to influence mosquitos in the way you are, why is it not used already in other diseases that mosquitos spread like malaria or could it be used in those and thus how big technology or biotechnology could it be? >> yes, so this subsidiary which is oxitech, based on a technology out of oxford university, includes embraces

programs in quite a number of agricultural pests and disease vectors. we clearly the mosquito responsible for zika and dengue is the lead but there are others behind it. whether we could use a similar tech no long cal approach to the mosquitos responsible for malaria, we think the answer is yes. >> rj, there has been local pushback here in the united states where oxitech roled out testing of this technology and perhaps this is a question about everything you guys do with genetic modification. what do you say to people who say it's dangerous and shouldn't be done? we should ban it? >> well, the first thing is, to observe that genetic engineering is the first true industrial

technology of man. so what we all learned in school was the agricultural revolution of 12,000 years ago. really was the beginning of man's influencing through breeding and selective breeding all of the species around him. if you think about the origin of cows and pigs and chickens and sheep and dogs and tomatoes and strawberries and what have you, a lot of things people think of as natural are not natural at all. today we have technologies to allow us to precisely control much more deliberately and intelligently influence -- >> they allow you but i'm still worried about crazy killer mosquitos ks messed with by someone else, coming after me or something? it's spandora's box, right? >> it's funny, you think about the origin of that story and the

mosquito, it should be born in mind that the mosquito itself is a monster. i'm not saying we should eradicate all mosquitos but appreciate before we become overlyphobic about technology and i do understand that man is naturally technophobic, i don't use social media and probably should. i'm afraid of it. it's my own ignorance that makes me fearful and that's true for a lot of us with regard to a lot of technology. most of the progress man has been technologic -- >> fair enough. >> once we deliver -- once we deliver products that consumers like, then the phobia tends to go away. this has been the progress of technology throughout time. so in the big miller clip, you heard him reference the arctic apple. this product is phenomenally popular with consumers and retailers and regulators.

and i think we set an all-time record for favorablety impression on gm o because it has a trait that consumers recognize as beneficial to them. >> randal kirk and meg terrell following the story so well. wilfred, he called the mosquito a monster, you're not alone. >> i'm not a fan of mosquitos, i wouldn't being against his screw view of scrapping them all together. 2% of gains for markets as we approach the final bit of trade for january. time for a cnbc news update with sue herrera. >> the state department declared 22 e-mails on hillary clinton's personal account top secret and won't release them. the documents were not marked classified at the time that they were sent. michigan's governor rick snyder signing into law emergency funding to flint to address the

water crisis. that funding will provide immediate resources to the city. for the first time since being deported from mexico, ethan couch appeared in court in ft. worth. the judge siding with couch's attorney, for now the teen will remain in a juvenile detention facility. dozens of people rallying at the wisconsin courthouse for convicted killers steven avery and brendan dassey, after the net flex series highly lighted the murder case and convinced many they did not get a fair trial. i'll see you in a little bit. back to you. >> thanks very much for that. minutes before the bell the dow is at session highs and it's up 2%, 332 points, the s&p is up 40 points and the nasdaq up just shy of 90 points. we're looking to close out an ugly month with plenty of green and leading trader tells us what he's watching into the close on

this final trading day of the month. >> retwo retail investors will tell us whether the volatility scared them out of the market this month. stay tuned. it's hard to find time to keep up on my shows.

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finish up the final trading day of january. the dow up 344 points. let's have a look at the heat map for the month as a whole for the s&p. look at the sector performance unsurprising to see sharp declines for s&p materials down 12%, financial suffering too. the safe haven telecom sector up 3.5%. >> i'm on the floor joined by steve grasso, the question people have, the dow is up 350 points after this brutal month. is this a real bottom and b, is it because the bank of japan and didn't they move because things are bad? >> you have the bank of japan stole the headlines but you also have the end of month pension rebalancing, that's a fair amount of the move-up we're seeing today. i don't want to say it's all of it but the two incidents really propelled this market to a higher price than it probably

would have ordinarily been, it's going to be interesting to see. >> what levels do we need to launch? >> right now we're at 1934. if we're at 1934, the legal of resistance i was looking at was 1928. we hit that and didn't really take it out substantially yet but the next level, 1965 to 2000. if we get there, that's where you want to be a seller and reassess. >> we'll see if we get there in the first place. >> despite today's rally markets have had a scary start to the year. we know the pros will tell us not to panic but what do retail investors doing with their vexts? joining us now, kristin ruby and guys thank very much for joining us. let's start with you. when we see a month like this, scary moves day to day. does it make you want to run for the hills?

>> i say don't panic. this is a really good time to refine your portfolio and look at other things you may have wanted to get but not have been able to. things are less expensive right now and it may be a great time to buy them. >> which kind of stocks? >> for example, amazon, google, youtube, any of the tech stocks that are doing say little bit worse than before, you can hop on them right now. >> this, i think you're going to strike a similar cord here. >> i said i like facebook, what i like about companies like facebook, they win if the economy goes down. maybe you're an advertiser and switch your messaging more promotional, they have the attention spans and run their ads to their platform. >> it's not really new. >> you're making it sound like a defensive play instead of growthy kind of play. >> i feel where all the consumer eyeballs are going to facebook and on that platform, i like

linkedinif that's a great place to look for a job whether the economy hits hard or things go well. >> facebook as well? >> yes. in terms of what i recommend for biggest growth picks i would say things like bristol-myers and right way foods, things that are more so recession proof than other things, things that people need. >> i was going to say facebook is not a new stock anymore. what do you think the next facebook is going to be? >> 100% snapchat. my fiance is 25 years old and does not watch tv, all of her eyeballs are there. everyone thought it was a joke when he made pay play for $3 billion, disappointing photo guy not taking the deal and now you watch what's going on. it's clearly 2.0. >> i tried to use it once, it was a disaster. >> i struggle as well. >> a lot of these private

companies have been huge valuations and you're talking about recession plays. do you still think that can work fundamentally and maybe the best way to play it as part of somebody else? >> what i like about these platform companies, they don't have inventory. if you're going to spend money and get the younger people where the growth is going to be, you'll use the platforms to reach them. >> over the last month, crazy negative in markets, you sold anything over the last month? >> no, right now i haven't. >> you sell anything? >> apple got dinged a little bit but i had it since 2002 so -- >> luxury of not having to sell i guess. >> thanks so much for joining us. kristin ruby and ian. >> dow is now up 338 points. we're pretty much at or near session highs and s&p adding 39 and nasdaq despite amazon really getting hit today -- >> drove in oil markets sent chevron numbers to the worst posting since 2002.

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welcome back, the dow is up

339 points, closing out what has been a brutal month. >> we're standing by the post where chevron trades, it's slightly negative and did report earnings today and stock took more of a tumble at first. the first loss since 2002. >> let's discuss it further, blake fernandez, director and oil analyst. blake, thanks for joining us, let's get to the earnings. how big a miss were they? >> the headline numbers reported a loss of 31 cents but you need to strip out the none recurring items to the tune of a billion dollars. now admittedly well below street expectations of 45 cents but don't think it's nearly as bad as headline number would suggest. >> let's talk about dividends and reasons to be in the stock. how confident are you in their cash flow going forward? >> yeah, you know, it's interesting, it's really hard to

make a compelling argument to own chevron or a lot of names on the traditional multiples or valuation metrics but point out the dividend and that's where the upside is. when you look historically, chevron trades at 3% currently we're around 5% and that represents 60% upside should we get back to normalized levels. the key data point to keep an eye out for is march at their an lift day, a new cash flow break even point to something below $50 a barrel. >> this isn't a little services company, it's chevron. what does it mean for the rest of the industry if chevron is missing earnings? >> it's a good point. one thing we look at is the operating cost as a whole, roughly about $30 a barrel of which about $10 is dda. if you want to get to a cash operating cost it's about $20 a barrel which is how you land at

these $20 a barrel calls. but i think that's very short term in nature. if chevron and rest of the peers report next week, i think that's pretty indicative of this this cannot continue at this level. >> that's exactly it. you mentioned you hope they bring down the break even cost and should that put them back towards moving higher on dividend, as you know, the main reason that the yield is so fat now is people have concerns about their ability to service it. so barring some opec meeting and some real consolidation in the u.s. energy space, how likely are those events to happen? can chevron really bring costs down enough themselves and can the industry consolidate enough? >> i think management pretty much confirmed today that beer looking at about 15% operating in capital cost reductions this year. i think you should expect something similar next year and at the meeting in march there's downward pressure on that. i think we're going to find out they can probably break even, something below $50 a barrel in

2017 and my view is that long only energy pms have been underweight energy and want to own the names in advance of that event. i think that will set up well for the integrated space. >> we appreciate your views on this. blake fernandez there. art cashin just stopped by. dow is up 352 and 4 billion to buy on the close and we heard steve grasso referencing institutional money that may be flowing in. >> near session highs for the day. china has been a massive driver of markets so far this january. after the break we hear from the chief equity strategist at wells fargo and says china is not as bad as it seems. we're back in a couple of minutes.

happy friday, up 2.25%. let's discuss markets a little more, joining us is john from wells fargo. great response from the markets

today, that all predicated on the bank of japan. why did u.s. markets respond to that? >> i don't think it should have gone down in the first place but i've been wrong before. people forgot central banks see the same thing we do. they worry about the things that worry the markets and do things to try and stop them. >> you don't think we should have sold off at all. nothing has changed. >> market is never wrong and never right. i can't say it -- there's fundamental change so we found out what it was -- >> china i should say, i'm showing my age. i think it's the u.s. economy was slowing a little bit. durable goods, a classic situation, going down for no good reason. when we find the good reason, there's no reason for the market to go down an awful lot. that's been my experience. >> triple digit moves in the dow for the last eight sessions and 12 of the last 13 sessions, this is crazy stuff, these big, big moves. is that going to continue throughout this year? >> i don't see why it stops.

i turn 62 in a month and go on social security so i may retire early. i think it's volatile but i think the volatility goes both ways and people weren't that unhappy when it's to the upside. >> do you think people should buy from the hardest hit parts of the market if there's no reason to sell-off? >> there's still risk, i didn't mean to imply that. but i think base he canally that the market is still fairly valued and they still the chance to put this whole panic thing behind us. >> energy? >> i buy the big high quality multinational integrated energy. technology corporation is still going to need technology to make employees more effective and decisions more current. i don't see why that changes. i think the situation is sort of shaking itself out right now. never say it shouldn't have gone down but reasons weren't clear. there will be reasons why it goes up to.

>> walmart and verizon, would you sell those now? >> i'm not a seller of stocks and can't speak to individual stocks. i like energy and technology. my growth play is health care which krrted in terms of valuation. >> thank you very much for joining us, have a lovely weekend. we'll be coming back with the closing countdown. >> after the bell, it was donald trump versus fox news and john harwood will report on who may have won the contest and larry kudlow and barney frank will preview the campaign, we're talking about iowa. it took dozens of prototypes. hundreds of crash simulations. thousands of hours of painstaking craftsmanship. and an infinite reserve of patience... ...to create a vehicle that looks, drives and thinks like nothing else on the road. the all-new glc.

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welcome back, the dow is ending at session highs, up 236 points, a nice finish to what has been a tough month. let's have a quick look at the month as a whole. interesting charts to look at. first of all the shanghai composite and s&p 500, shanghai down sharply 23 points. to the end of the month we start to see the s&p decouple from shanghai and china led things for first few weeks. what about oil? let's have a look at that. correlation between oil and s&p remains very strong. yes they bounce but both bounce together. those two do seem to be coupled. we're going to discuss this a

bill further. oil still tightly linked to markets but not so much china. >> it was really funny, when i first got down to the floor this morning and asked a couple of traders what's going to be the theme of the day before things kick off. one said to me, where is oil going? and we all laugh, that's exactly what's going on right now. people are still paying close attention to what's happening with the oil trade and that correlation, that relationship is still there, it's big. what's interesting now, we all thought that the china story would be much bigger than it was and it's the world's second biggest economy but that decoupling is an interesting move. the die vergences we're seeing are going to be close points to watch as we go into february after one of the worst starts ever for stocks. >> the other big development of this final week of january, earnings is having an impact and big moves off the back of company individual reports. >> we're getting into the heart of the season right now, less than a third of the companies have reported.

after next week we're going to make that big push until almost 40%. it's going to be a heavy week. we haven't been talking about earnings because of the macro bigger picture headwinds but all of a sudden folks will start paying apension to more to what's happening with the corporate fundamentals, there are those who will always argue that earnings are ea backward looking mechanism. perhaps a move higher if we can find stabilization, all of the damage this month was in the first two weeks, it's been relatively stable since then. >> tech has been the focus for earnings this past week and chevron reported lots more energy names to the floor this week. >> we want to watch the big ones like exxon and chevron. but some of the mid level, mid range middle market players the ones you'll see signs of stress, that's going to be a real key. a lot of these big tech ones will be a focus. >> also next week you've got to watch worldwide exchange, dom is taking my place, the one keeping

sara in place. >> a tall shoe to fill. tune in next week. >> the bell is ringing and rounding off this week and this month. we've got the dow finishing up 380 points. closing session highs, a 2.4% gain. that's it for this hour of closing bell. over to kelly. [ applause ] >> thank you, welcome to "closing bell." i'm kelly evans, what a day to close this month. it's been a stronger rally as bad it has been a month. the dow going out with a gain of 383 points. good for about 2.4%, same kind of gain for the s&p 500, it's up 45 points, closing 1939. the nasdaq even with amazon really being around underperformer today after earnings miss we told you about last night, still seeing gains of about the same magnitude, 107 points, closing the 46.13.

we did have big buy orders and couple of different things going on right here. joining today's panel we have our senior commentator mike santoli and beth from standard and poor's and guy adami. this rally got more powerful as the day went on and closed up almost 400 points. >> you mentioned the almost exact same percentage gain on the major indexes with different stocks and waitings and that showed you big institutional money feeling under invested at the end of a badly formed month. you can see it coming before the open and green light with japan's negative interest rate move and the sense that global liquidity is not really drying up very fast. the gdp number was as expected and consumers held up okay and you had industrial earnings and it was kind of like of all of the reasons you were negative in january, you took a few away and

i can't emphasize enough, big investors came in the year defensive and stayed that way until today. >> what was the significance of the bank of japan cutting rates into negative territory? do you think that's part of the reason why we just had this strong rally today? >> i think that's part of it. but i would say when you mention the gdp report which was a bit disappointing although expected because trade was at play and business investment was much weaker and tied to the energy crush, what did that also mean, that the fed will delay. very few expect a march rate hike and very few -- >> you guys expect one? >> we were expecting march and now took that off the table. we thought maybe four rate hikes and probably will be two. >> i think -- in a weird way i think with the bank of japan does is kind of irrelevant. the problems that japan has are structural. they are demographic. and the bank of japan can cut

rates negative. i don't think that's going to fundamentally change what's going in japan. the bigger picture for me, whether or not you get a recession globally and the market today was saying you know what, they are going to cut rates in japan but there's not going to be a recession globally. we've had a great run in oil prices for over the last week and a half and xle year to date -- >> energy etf is down less than 4% compared to the s&p which is still down 5.5%. >> biotech down more than 20%. >> biotech has been bad. but i can't say whether or not it's going to continue but the truth is it's been -- if you were short commodities, it's been a bad couple of weeks. >> it an interesting point, people are talking about a cyclecal down turn and looking at interest rates, did this move from japan, whatever else the impact might be, does that mean that u.s. interest rates are

going to go further downward? what would that mean for the economy? >> lower shall and i understand japan in itself in a vacuum isn't a huge deal although as the third largest economy on the planet, it is significant. what it does is it green lights the chinese to you know further devalue their currency and for whatever reason as you've seen the chinese devalue their currency, the knee jerk reactions have been negative. i understand why markets went higher. if you're long stocks, the reasons why don't matter. up 350 is a great day whether for right or wrong reasons. i don't want to get crazy about this. i would submit 85 to 90% of today's action was up what the japanese did and interpretation is going forward and what it means for our fed potentially giving their air cover to do nothing for the rest of the year. i think it speaks volumes as to how lousy things are across the

planet. and it also doesn't mean stocks kbts go can't go up in the interim. >> let's show the dollar index as we talk about this. it's one of the places where the push comes to shove in away. if we have this move out of japan and easing relative to everybody else, dollar index pops a point. back at 99.5. how does this impact us? >> although against the yen and mostly against the yen what you're seeing right there. weaker yen tends to be better for risk assets, notwithstanding how the dollar index goes up. that's kind of getting in the weeds but i do think to maybe modify what guy said, i think it's an easier fed relative to what we were expecting a week ago thanks to the bank of japan when u.s. economy is not falling apart and you actually had real consumption growth, personal consumption expenditures last year that were at a high since 2006. it's not falling off the cliff. if you have both of those things

together and industrial earnings maybe troughing, it's a decent picture for stocks for the moment. >> let's get dominick in here to close out the picture for us. january was dreadsful, dom. >> dreadful, yes, because the first two, two and a half weeks of the year were the worst start in some cases ever for the u.s. depending what you look at. the s&p 500 down maybe year to date 5% by the time things are done here. if you look at the dow jones industrial average on that year to date/quarter to date, month to date, may be down 5.5 points as well, the dow around 16,466 and the nasdaq composite, one of those ones we're watching to see any signs of life. down by 8%. that growth maybe technology/biotech heavy index down more than everybody else. let's put in perspective on the nice layer of the onion for the sector side of things, a lot of

people may be poo pooing this little rally at the end of the month here just because it makes it so on a month to date basis, it's the telecommunications stocks that are posting the best gains, two of the smaller sectors in the entire s&p also the bigger dividend payers and financials and materials, i want to point financials out, two worst performing sectors, a notable one because of bank earnings and second biggest sector in the s&p 500. you'll notice like you said energy not among the two worse performing sectors on a year to date basis. if you look again at the markets overall, the volatility index, it sounds jargony but hovering around 20 for the vix. it was as high as 30 during the real turmoil that we had in the first couple weeks of the year but overall, remember 10-year yields, 1.94%. safety of treasuries put

interest rates lower and gold prices as well. it was this month we crossed over that $1100 an ounce. all making an interesting setup for what's going to happen in february. lots of moving parts here but maybe less bullish argument here that telecom and utility and consumer staple stocks are the ones that have seen the most traction so far in the early part of 2016. >> corporate profits peaked out some time ago on a broad level. do you think this is going back to when the fed began to taper and all of that? >> in terms of the slowdown in corporate profits? >> i think there's a lot of factors that could be at play. certainly the slosh in less liquidity is one factor but you also have the fact you are seeing some slowdown abroad. basically jobs aren't there -- the revenue that would come from

abroad either the strong dollar or certainly energy companies like to see it taking out what the impact was because of energy companies getting slashed. there i would say that's a part of it but overall i still think -- i'm a bit more optimistic on the u.s. economy and still -- i wouldn't say -- to quote the fed atlanta fed president, it would be a mild not wild recovery. >> dennis lockhart there, i think, we're getting more fed speak today but to your point about confidence, we did 650 million shares on close. we saw that as things finally settled out the dow closed higher by 397 points. you've been putting money to work in energy for a while. >> since last summer. >> like at console, up 22%. chevron even -- >> look at the bigger -- i've said it a number of times sean it may be a little misguided but still stand by, i rather own a

share exxon than facebook. >> you know the market caps are about to cross. >> not because facebook is not a well run company that has generated -- >> you're not a mill lennialmil >> i don't believe in paying 80 times forward earnings. there's something against -- i would rather take -- take a safe dividend with a stock like exxon and the idea that if oil prices go up, there's a lot of upside. the downside probably limited. >> safe dividends for exxon and chevron and the like. mike, can we take these statements for granted? >> you can take for granted that they will do absolutely everything in their power like a chevron to protect that dividend. they are basically gambling that oil prices and gas prices don't go down much from here. they think they can work it out from here. but when you get a 5% dividend on chevron, they are telling you there's some risk to the dividend.

it would not be there well above the prevailing right for all companies if there wasn't some doubt about the sustainability of it. if oil prices rebound from here, they probably can win on that gamble. >> you've got to look at the overall dividend structure and s&p 500, it's paying out more than the 10-year. the 10-year is paying 1.9, what that is telling you, it's pricing -- it's going -- the pricing is going off the bond markets in other countries in the world. it's not going off the state of the u.s. economy. and that's an important distinction. i'm not saying that stocks are cheap and you should rush out and buy them. i'm not saying that at all. if you don't believe the u.s. is sinking into a recession, stocks are a better bet than bonds. >> would you take issue with that before we go? >> i understand -- i get all of the arguments about valuation and about energy stocks with the leverage they have if the crude price can sort of rach et a little higher there. i understand everything. what i will say is this, rates

continue to go down. i understand the instrument that measures rates and appreciation there is not 2%, it's far greater. look at the movement at tlt over the last year or so. you're not earninging 2%, you're earning what the instrument has gone up in terms of percentage. if you think about it makes a little sense. i would submit that the interest rate should tell you everything you need about the u.s. economy and global economy for that matter and global currency war that is taking place right before our eyes in my opinion almost by definition can't end well. i'll give you this, i know you've got to run. the big thing is for eighth grade kids, everybody does eighth grade over again. if you have a advantage and your kid is in eighth grade for two years, you'll have an advantage going forward. if everybody holds their kid back, there's no advantage. then you have to do it again and that's what's going on in currencies, everybody is in this global race to zero by definition it can't end well. >> guy, thank you.

we had a double box going there for a moment. more coming up with the reflt of the crew at 5:00. tim seymour is becoming a new york ranger thanks to virtual reality and how the national hockey league is getting in on the fastest pace in tech. everybody is talking about this space, coming up next hour. we're going to hear from an oil trader who says the recent plunge in prices is proof the free market works and critics need to stop blaming speculators when prices spike and steve harvey is here to discuss his infamous miss universe number and doubling your tax refund. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital,

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welcome back, remember back when wti crude was at $100 a barrel. fast forward two years and oil is less than half that price, trading at just around 33 bucks. there are a few complaints on the consumer front, earlier this week, energy broker brad shaffer penned an op-ed, where have the speculators gone.

why are alarmists so wrong? because they don't understand futures trading. brad shaffer joins us here. we see this everywhere, right, people blame the shorts and in this case it's the opposite. they hate it when oil prices go up -- >> they don't even know what shorts are. when i traded oil for an oil company, what would happen every time i would come home, people would say oil was up, you had a good day and i'd try to explain, no i was short and got killed and rather not talk about it. and i think what happens is because look where we are, it's understandable, i think most people in the public and pundits too like mr. o'reilly and whoever, confuse it with the equities market. equities market -- >> what do you think people are confused about? >> you kind of in a capitalist system you come out of the womb believing that long is good and up is good and down is bad.

dow jones had a good day, up 400. >> but what about in the oil context? >> these futures contracts are just agreements to buy or sell a price of -- some sort of commodity sometime in the future and very cyclecal. use as hedging tools and speculators and funds and whoever have gotten into the investment game side of it. when you think about it, it's not investment per se. if you think the market is going up, you buy. if you think it's going down, you sell. whereas when you think of equities and buy xyz company, you have got management and activist shareholders and everybody trying to push that up. we're all on the same page. what happens is the general public confuses the equities market with the futures market and it's not the same thing. >> even if you -- granting that the criticism of speculator when oil was over $100 a barrel, even granting that was misplaced, it is true, is it not that the

number of big investors in commodity funds, assets in commodity specific index funds, for example, is probably down by half in the last few years, was there not a premium to let's say the oil price just because you had a lot of people buying it as an investment as opposed to because they deal in oil? >> well, i think what you just said, the numbers have been reduced by half, right? maybe it was a trade, not necessarily an investment. in futures trading egs specially, for every buyer there's a seller. maybe there's a speculator who might have gotten -- might not had a particularly good day. what happens too some of these funds will come -- these i guess the equivalent of mutual funds, let's say we're going to ael r allocate 2% going forward. why do they do that? they don't say we're going to push the market up. they look at the market and say we think system you list will create inflation and china will increase by 8% and global

consumption of energy will continue. we believe that in the future just like a cfo at a oil company, just like somebody trying to manage risk within at an airline who has to buy fuel at five years and can't put it in five years of a -- either way it's going to go up. >> isn't it more about history? i don't mean too -- more to do with history, if you grew up in the '70s with opec, the oil embargo and prices, people very much relate to what a price of a gallon of gas is -- >> go to 80s and 9's when they were low. >> it involves politics and politicians and easier to target than wall street in general. you've got the oil companies and wall street and money and you have middle east countries. it's a much more for the average american citizen out there, it's a much more -- it's a good dk

black and white story as opposed to equity which gets confusing. >> we'll see if going forward the next time prices spike, hey, don't blame us, remember when they plunged that time. it's not all that bad. thanks for joining us. coming up next, elizabeth warren bashing the justice system saying it's in favor of corporations that commit crimes and barney frank and kudlow join us to talk about if donald trump will get a win at the iowa caucuses. [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

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let's begin with breaking news. steve liesman has the details. williams says -- he wasn't asked about this but even amid the japan and market volatility, williams saying the fed is on a path to gradually raise interest rates, no obvious warning signs of a recession, worried about europe and asia and transition of china but he says the u.s. is well suited to weather the current economic storms over there. he says quote the economy is doing pretty well. and he expects growth of 2, 2.25% and expects unemployment rate to decline this year, more jobs to be created and inflation eventually to come back up.

he was not asked about the direct impact of what happened in japan today on u.s. federal reserve policy. but he's basically saying rates will go up and it will be data dependent. i would have asked him more direct questions but i didn't get to moderate this one, kelly. >> to be clear, he didn't sound any more dovish in light of recent market events? >> he was very dovish during the period of qe then moved to the center and even became a little bit hawkish. i interviewed him in january, 3 to 5 rate hike seems about right. he hasn't given a number here. maybe that's a little more dovish, but i would have come back and said you said 3 to 5, it still 3 to 5. i can't really judge that at this point from his answers. >> we look forward to him joining you tomorrow to answer your questions -- >> i'll fly to san francisco monday. >> you don't have to work

tomorrow. >> steve liesman. >> the final gop debate before the iowa caucuses featured a fair amount of fireworks. let's get out to john harwood with more. >> reporter: kelly, donald trump wasn't there but we did have the last republican debate before the iowa caucuses last night and donald trump won it anyway, even if he wasn't there. the debate itself, his closest rival ted cruz got smacked around very aggressively by both moderators and other candidates but so did marco rubio who's hopes to emerge as the leading establishment candidate got questioned about his flip flop on immigration where he originally couple of years ago supported a path to sit zenship in a major bill then had this exchange with jeb bush which didn't go too well. >> it's interesting jeb mentions the book, where you changed your position on immigration, you used to support a path to citizenship.

>> so did you, marco. >> that is not what marco rubio wanted to experience as as trying to come up with a very close third place, maybe even sneak into second place here in iowa. hoping to emerge later in new hampshire. donald trump meanwhile had an event with veterans which took a lot of the coverage away on local television here from the fox debate. ratings were somewhat down from the last time it was on the full fox news channel. they were up from the last one on fox business channel. donald trump was in new hampshire bragging about how well it worked out for him. >> what happened last night that was amazing because i wasn't treated right and did something that was very risky and i think it turned out gray. i'm on the front page of every paper, getting more publicity than if i -- you know? >> reporter: so a lot of us have been making a lot of predictions about donald trump for a long time, kelly, and we've usually been wrong. looks like donald trump pulled

off a victory again last night. but i'm going to have to wait and see whether his supporters turn out in caucuses, that's going to be a real test, both the polling we've seen with a slight lead over ted cruz but also whether or not the enthusiasm he has will be reflected in actual turnout on caucus night. that's the big question around donald trump right now. >> john, thank you, john harwood. let's bring in our politics experts barney frank and larry kudlow, cnbc, senior contributor. larry, just basically hours left to go. is trump going to pull this over? >> politics zpert, i don't know if i can hold that mantra. >> that could be a bad thing. we heard with john harwood said, all. forecasts have been wrong. >> that's true. we're very humbled about in. about the trump gamble pay off? we won't know until the caucuses on monday. we'll find out. the fox ratings were way down. 12 million or so, they were

hoping for twice that much. he's on front page of all of the newspapers across the country and one of his leading competitors ted cruz i think really had a hard time last night, this was not mr. cruz's best debate. everybody was ganging up on him. trump is supposed to have the momentum, we'll see. >> tell us about these caucuses though. is the caucus the kind of event where you think donald trump no matter what he's polling will emerge as a candidate? >> you can't say that. caucuses are tricky. there's literally thousands much them and you can register your party affiliation as you go into the caucus on monday night. and that's why polling i think is much less helpful than let's say in a primary state like new hampshire where you're pulling a lever. it's tricky business to forecast this. i would say trump came unite of this pretty well and cruz got a little hurt by it. >> do you think donald trump can

emerge winning the iowa caucuses? >> sure, there were two things that are fighting each other. one is organization, which is very important in a event like a caucus where it takes not simply showing up and voting and the other is enthusiasm. trump has not been strong in organization but enthusiasm can trump that. and actually what i'll be looking at and there's two interesting races, trump versus cruz and this is a question frankly for democrats to be watching. can marco rubio emerge as the nontrum p cruz alternative. if it were bush or christie or kasi kasich, none of them what they are, really is going to go all the way. kasich because of his medical position, bush has got a lot of weaknesses and christie is too far left by their standards, there are two races going on. the question for rubio, if you run third or fourth in the first two primaries, how do you

recover from that? from the standpoint obviously there's a great deal of republican interest in trying to have somebody to stop cruz and trump and it's only rubio. >> kind of similar on the democratic side. i mean, it is alleged that hillary clinton has the good ground game. and she probably does. and the other hand bernie sanders has tremendous momentum, like trump he draws huge crowds, not as big as trump but pretty huge crowds and mrs. clinton does not. that's a tough one to figure also. >> i agree too although over the long term it's becoming clear now that hillary clinton is going to win. a lot of people on the democratic side gave bernie sanders a pass. there are two candidates who interestingly have no support from their congressional colleagues, one is ted cruz and that's because nobody likes him and the other is bernie sanders and he's fwot a little support, people like him and admire him but don't think he can win. people have held back not wanting to make things angry. you'll seal more of a focus on how do we govern and --

>> how much of a tell -- the journal pointed out iowa and new hampshire have unemployment rates almost 3%. average hourly earnings are up 6%. this is an area that's doing much better -- >> and they are very white. >> it's whiter as you mentioned. how predictive is iowa even new hampshire but let's just stick with iowa? how predictive is monday's win going to be? >> probably not very predictive but it's not irrelevant either. look, to get this story right, you're going to have to look at iowa and look at new hampshire and you're going to have to look at south carolina also, kelly. then you're going to emerge before you go to florida and sec primaries you're going to emerge with a pretty clear picture. polls are polls but votes are more important than polls and votes can change polls. i think it's a little premature. >> let me reinforce, these can be predictive for rubio. he's really on the line here.

he's got to run no worse than third it seems to me in iowa, second or third in new hampshire. if he falls behind bush or kas i have or christie, the chances to coul coalesce around him will be difficult and -- >> bloomberg is getting into the race. >> one disappointment, there was virtually no discussion of the economy -- that's my point. it was funny chris christie, why don't you ever talk about housing affordability? because nobody ever asks. >> iowa and new hampshire are in relatively good shape but these are national audiences watching a national debate. you see today, 0.7 pfrs gdp. the fed is freaking out. williams said they are going to tighten rates, the economy is almost in recession and profits are falling and williams wants to raise rates?

it's nutty and the candidates should have talked about that last night and they didn't. >> i agree. >> it does not appeal to the anger on the republican side and that's why you don't hear it. >> it appeals to me, it appeals to you -- >> i understand that, larry. >> larry, i've long said there are two republican parties, yours and the real one. >> well, i can hope. i'm an optimist. >> okay. >> we'll see what happens come monday. time for a cnbc news update. >> here's what's happening this hour, california authorities say they have captured one of the three inmates who escaped from a california jail last week while facing violent crime charges. 43-year-old was argsed by police in santa ana, the same city where the trio made their escape from the county jail. the u.s. military calling an anne armed iranian drone in international waters in the persian gulf an unprofessional move. earlier iran released footage of

the drone and said it took precise photos of the carrier as part of as ongoing naval drill. a new study suggests one in four adults over the age of 45 talk to their doctor or nurse about memory issues during routine checkups, experts say it is important to bring up any memory problems because they could be related to very treatable conditions. a german teenager climbed atop the great pyramid this month in brought daylight and has gopro pictures too prove it. he was halfway up the 455 foot structure when police finally spotted him. he was taken into custody spon his descent. >> pretty amazing. but illegal. >> amazing but illegal. >> they should toss him off the pyramid. missing can a couple thousand year old -- >> hundred years ago they all used to climb it. >> last 50 years they didn't climb it. come on. >> even if i could get up there,

it's the going down when you have to look down and realize how high up you are. >> it's hard on the knees too. sue, thank you so much. >> have a great weekend. >> you as well, our sue herrera. >> i'm not pleased at all. alphabet set to report earnings after the bell on monday. we have a preview what it means for the market coming up. first comedian steve harvey is here to explain how you could potentially double your federal tax refund and ask about his infamous mistake at the miss universe contest.

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welcome back, the dow was up almost 400 points, 2.5% gain, almost identical gains across the major averages. we mentioned earlier, 650 million shares changed hands, $4 billion buy-in balance before the close there and talk about pension and institutional money getting in after a really tough month. the s&p finishing up 46 points in the last trading day and nasdaq up 107. we have breaking news warren buffett. >> for first time warren buffett plans to web cast berkshire as annual meeting according to dow jones, the web cast will only

cover the q and a session which is typically a six-hour marathon. last year 40,000 people attended that discussion. this is the annual meeting in omaha that we're talking about that draws people. we have reached out to berkshire hajaway and received a no comment. >> it would be freely and publicly aavailable. >> this is just a web cast of the q and a session between charlie and warren buffett, in their arena that draws thousands of people. >> that would be so much fun to watch. >> the only people unhappy are all of the omaha businesses who are thinking to themselves now people -- you don't have to get on a plane to come to omaha. >> after the close, buffett's acquisition, $37 billion in cash went into the market, a lot of people were anticipating that as

a reason to buy the market. >> americans are starting to think what they are doing with the money from tax returns, green dot is offering you a chance to double your federal tax return if you deposit your balance on one of their cards, you're automatically enrolled in the sweep stakes for a chance to double up to $15,000. joining us no is steve harvey, the official spokesperson of green dot. i didn't realize. why green dot? welcome. >> well, you know, first of all, thanks for having me. a huge part of my fan base are working class people. you know, they watch everything i do. and so these guys came to me and had a really, really exciting thing they were going to do around tax time. i know how i hung out waiting on my tax return when i could get a tax return. i would love to have one again but it's not going to happen.

and i think you said it already but came up with a great sweep stakes where they give a person an opportunity to double their federal tax refund by doing exactly what you said, buying a card and then downloading their deposit directly on to this card. and automatically puts you in a sweepstake to get a chance to double your tax refund. i would have loved to have had that opportunity. >> steve, obviously it's a great deal if you happen to be the winner who gets the tax refund doubled. but what about just in general, what are the virtues of using a green dot card and putting a little bit of cash you might have around on it? at times these pre-paid debit cards have been criticized for having higher fees and stuff like that. how much of that have you gotten comfortable with? >> well, i mean, one of the things was i actually tried it myself and what i did was i put all of my kids -- my kids are in

college and so i gave my kids green dot cards. what was happening with me, i don't know if your kids are my like kids, my kids can't count. they are always, overdrafting and things like that and when i found out they could do it without a fee attached to it, that was attractive to me. then when i was wiring money -- when i wire my money to their account, i had another fee attached to that. i found out if i just put a lump sum of money for my kids, their a lotment, when i shift the money to their card, i didn't have to pay for a fee for that. those were attractive to me personally. >> you emphasize how you don't get a tax return anymore. do you have a beef with the government? >> well, i mean, look, i wish this tax thing was a little bit more fairer having been in all of the tax brackets, you know, i

wasn't born with a silver spoon in my mouth. and i've been pretty poor even as an adult, living in a car, people that know my story. i've been in all of the tax brackets, i would love for it to be a little more fairer -- >> does that mean lower for you? >> spread more evenly. >> i love for it to be lower but -- >> i don't think that's what everybody is thinking, they want yours to be higher, like steve harvey. >> no, no, everyone wants it lower. i wants yours to be lower. i want my kids to be lower. i would love to lower it a little bit. >> i think you have a platform here for some sort of political office. we have to ask you, about the aftermath of last month's miss universe contest, the confusion between miss colombia and miss philippines. what have you learned? have you heard from them? >> it's been a great -- turned out to be a great thing for both of us actually.

i had them on my tax show, which turned out to be quite a blessing and had a chance to sit down with miss colombia, a great heart warming moment for both of us but especially for me because i wanted to be for given by this woman who obviously had to suffer through a tremendous embarrassment because i made a mistake. it was really important for me to meet with her and if you saw the show it was really great. it went viral. but it was great of her, she's very forgiving and her family very warm group of people. we had a chance to sit down and talk about it and she accepted my apology and you know, we've moved on. and we got a couple of surprises for people me and miss colombia, working on a couple of things together right now. >> we will stay tuned for that. >> my wife is going to let -- my wife -- >> well, your wife is going to let you. okay, before we do move on, steve, just a question people are wondering, how -- your own

money, your investments, do you dabble in the stock market? do you have guys who do that for you? what's your approach here? >> i mean, yeah, i'm in the stock market, you know, i got hurt pretty badly when it crashed a few years back and swore off i would never do it again but i'm back in it. i have a broker. -- >> buying facebook. >> i try to be a little bit more diverse now and i was the tech king back then. i only had tech stocks, i was waiting on the big runup and missed yahoo!'s big turn and kept situate waiting on the split and it was $4 and it doesn't split. >> you're in it now. >> i'm back in it. i dabble in it, not much. real estate now, i try to you know, they ain't making no more dirt -- >> you and everybody, everybody trying to get in on it these

days, thanks for joining us. >> thank you very much. >> thanks for having me. >> steve harvey. the earnings parade marches on next week. we'll preview those results when we come right back. who do you work for? your boss? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

welcome back, we've already gotten earnings reports from facebook and amazon and netflix rounding out the fang stocks. next week is google or parent company alphabet. josh lipton joins us with a preview. >> hi, kelly, alphabet will be

reporting in a brand-new way. the big change here company is going to report data for two segments rather than one. investors will see results from google which includes the company's main internet produc youtube. the metrics disclosed will include revenue, operating income, capital expenditures. investors will also see results though for the so-called other bets segment. that includes fiber, nest, venture investments and moon shots like self-driving cars. important to realize other bets will be grouped together so don't expect to see a revenue number, for example, for each specific business line. still, bulls think the new reporting structure will excite investors and send the stock higher. it's already surged some 50% in just the past 12 months. other analysts think investors might be disappointed by just how much transparency larry page is really offering. we'll find out after the bell on monday. kelly. back to you. >> thank you, josh. interesting point because the

transpatiency is what a lot of people will key into. >> absolutely. any incremental amount of energies information will probably still be welcome. what's really going to matter is are they going to hit this number which is relatively aggressive, looking for a pretty year over year gain and it's been pretty steady. the earnings estimate has not declined in the last three months. most companies have had a hit to that and also the productivity, the margins are going the direction the street wants to see. that will matter a little more than a little granular detail on the secondary business. >> i wonder if steve harvey is in it. forgot to ask him. massachusetts senator elizabeth warren has some harsh records for the justiced did and the s.e.c. that's next. we're back in two.

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welcome back. elizabeth warren releasing a scathing report on the justice system. i'm on javers has the details. >> reporter: here is the scathing report in question called "rigged justice" put out this morning by elizabeth warren's office. here's a quick summery of what's in the report, saying this will be a new annual report thee sputs out each year. today she's saying the doj rarely seeks prosecution for individuals. she calls the s.e.c. in this

report particularly feeble and cites 20 cases in 2015 where the government, quote, failed to require meaningful accountability, and she highlights cases including standard & poor's, gm, major banks, novartis and other major brand name companies. i asked the department of justice for their reaction and what they said a few minutes ago saying the department is committed to aggressive investigation and prosecution of corporate wrongdoing. as deputy attorney general emphasized in announcing the new policy on individual accountability in september 2015. asked the s.e.c. for their reaction, s.e.c. not giving us a comment but i can tell you i know people over there are particularly proud of mary jo white's efforts to force companies to admit accountability when they are involved in s.e.c. cases. previously it was often the case that they could not admit or deny wrongdoing. now in many cases they do have to admit wrongdoing so that is an improvement in the eyes of folks over at the s.e.c. clearly not good enough though for elizabeth warren.

>> thanks so much. >> reporter: you bet. >> chipotle will also report its earnings after the belt next tuesday. that stock down 38% in the past sikhs months after outbreaks of e. coli and norovirus slowed down sales. a preview of those next. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. e*trade is all about seizing opportunity. so i'm going to take this opportunity to go off script.

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welcome back. there's a look at shares of chipotle with stock, of course, getting hit hard, of course, by e. coli outbreaks across the country so close attention will be paid to last quarter sales when the company reports tuesday, mike. what's the most important thing here, mike? >> what did sales do in january? because they have already essentially announced how bad comp sales were in the quarter. they haven't reported earnings but the comp sales are out. also said december was down 30% so have you to see what the trend is in january and also ongoing cost increases from different practices that they are now following in the stores. >> yeah, i think the problem with chipotle, really sales matter but it has a bit of, you know, the broken growth stock aura around it and that's bad for growth sgloks is your son still going? >> he still goes. it's going to take more than some e. coli -- >> i did participate in the group order with some of the friends at work today. >> it will take more than e. coli to deter him. >> the whole team would be wiped

out if there was something wrong in this region. rest up this weekend, guys. thanks so much. that does it for us on clegg. "fast money" begins in moments. melissa lee. what's on tap? >> we've got ultimate, ultimate game of would you rather take your position going tonight so we're going to talk about the earnings coming out next week, yahoo! versus google and buffalo wild wings versus chipotle and bp versus exxon. "fast money" starts right now. i'm melissa lee. traders are tim seymour, brian kelly, tim nathan and guy adami. tempted to buy stocks after today? well, maybe you should just hold on for a minute because a historical anomaly is pointing to more pain ahead for stocks and what that is and how you can still make money. one stock that's ground zero for global growth connection and it's flashing a serious warning sign. we've got that name and how you can profit. later, virtual reality is growing like crazy a