discussion. we got some financial action in there as well. thank you very much. have a terrific day. folks, thank you all for watching this program. >> a pleasure to have you, "closing bell" starts right now. . welcome to "closing bell." i'm kelly evans. >> i'm simon hobbs in for bill griffeth. a wild day for stocks. the dow was down 193 points earlier, oil seeing a big move higher, and financials raptly cutting losses from earlier on the session, el and arguably a lack of confidence. >> and the oil drop is far from over. we'll dig deep into the ripple effects of what's happening in venezuela. yahoo, one of the biggest loser on the nasdaq, shares

accelerating the decline at ceo's marisa meyers interview. david faber will join us lynn. go pro results after the end of the day. we'll tell you what to watch for. we begin with what's driving these markets higher now. bob pisani, what in the world changed the sentiment so dramatically just recently here? the dollars has been getting killed. dallas turned around about an hour ago, and another thin was oil started strengthening as well. so we get a dollar rally and oil turning around. bottom line, suddenly the s&p turns positive, same thing with the dow jones industrial average. one sector that's gotten very beaten up, is banks,

particularly regional banks. subtly just about an hour ago the whole sector started turning around. the intraday chart of the kre, the regional bank index, which has been down dramatically, you can see it turned around just about 30 minutes away, 45 minutes ago. zions bank, same situation. take a look at some of the big banks here today. a big robust debate about whether these kinds of selloffs are justified. there's no emerging market debt here. there is some oil exposure. the question is, is the loans on oil that some of these banks have virtually worthless? a lot of people on the air today have been say absolutely not, but the market seems to imply that's what they're worth now. a lot of debate about this, and the stocks ver volatile today.

>> bob, thank you very much. financials rebounding from the lows, some of the big names erasing earlier losses. the financial sector, though, is still the worth performing this year, down about 12%. >> and some of the biggest things we have pointed out are down much worse. with you, charlie is still bullish, and larry mcdonald from society gen ree general. are you a buyer here? >> well, it depends. but the higher quality names, yes, so the morgan stanleys of the world trading -- kkr, which is not technically a bank, but has a big balance sheet is trading for almost book value. no value on the 2 and 20 fee

structure. so there are certain segments don't have exposure to china loans that are very, very cheap. >> larry, would you like to explain what is going on here and whether it's over? >> well, the point we made on this program over the last year is there's about 2 1/2 to potential $3 trillion of debt, but because central banks have been so accommodative the last five years, even seven years, there's a lot of questionable loans that have been issued around the world, and now since you have a global economy that's softening in response to a viciously strong dollar, those loans are in question. that's essentially what's going on, but i think in the very short term, you have this mr. draghi tomorrow, the bar is very, very low for mr. draghi. he disappointed the street in the last meeting, so i think in the short term you can't have relief bounce here. >> i wonder, charlie, as people are parsing remarks out of federal reserve, if the message

is they're shifting from a hawkish to a more dovish stance, let's just say it is is that fundamentally positive for banks? or is it simply a negative, because investors had bid these names up -- >> short term it's the latter. these banks maybe more money when there's a positively -- so when the ten-year is dropping like it.

it's too hard to analyze. that's the beauty of a morgan

stanley. wow, but that's not as much as morgan stanley, which is down 29. so it's not as cheap. >>. all right. gentlemen, thank you very much. appreciate it at the start of the hour, and larry mcdonald. two big players. larry from blackrock and miller from llm, both joined "squawk box." they both had bullish thoughts on how to play equities. >> this is buys opportunity. whether it's the low end of 2 1/2 from 3 1/2 we're still going to have global growth. in my opinion it's one of the opportunities to buy things cheaper. >> let's talk about what they said in our "closing bell."

kenny polcari from o'neal securities, and our very own rick santelli. jason, it's clearly a buys opportunity relative to where we were six week ago. is it greater as we go through the year? where are these markets going? >> we've done a bit of work on correction, and big surprise, the ultimate results of that work that turns out to be a buying opportunity. you tend to be equity markets recover within the next eight months, now if it happened to be one of thoset 12

another. dramatic, in the we can wit and the global financial arena. let's be frank here. let's not call it a mistake or good move. let's say the fed's move in december was is the chinese central bank's -- or bank of china and of course what's going on with the ecb. it's their action in context that's given a recalibration a very long life. until this is all done, until we see the landscape of how the markets are managed, it's different to get a handle. wow, we're having a 400 -- go

on. i wonder if that's what we were, where you have dudley saying effectively, maybe we won't raise rates, then you have the storm, this snail. >> why would you believe anything that mr. dudley says? >> let me finish the point. that pummels yields, further into negative territory. that seems hugely significant. because the fed may not do what they thought it would do. >> exactly. on the latter part i'm with you. when you say nothing really happened, about what you said just happened today. on a two-year, we traited below on 30 basis points, but in terms of mr. dudley, the heart might be in the right place, but they

looked up in the eyes many times. and the data reflects that goodness. maybe -- but 2015 was not a good year. he says raised four times in 2014, and the market sells off big. so the market is reacted anytime one of the fed governors opens their mouth. >> i grau. >> you're making the sump if they pull back -- >> i think that's a mistake -- we don't normalize the market is going to be lost -- >> let me jump in the midding with a fine thought. >> sure. well, let's put this in the context, the fed's target based on the dual mandate, those number are basically sitting around that they raised rates in 2004. the thing that's different is the economy's growth rate is

half of what it was running in 2004. there is no way that they're going to have the same quarter point of meeting or anything close to that sort of pace at raising rates. that's what the fed is finally starting to think. >> how much has that gone up in that time? dollar denominated too as well, right? so there's the quandary. >> that string is unraveling most of the global landscape. we have to leave it there, but we appreciate it. jason, kenny and rick this afternoon. we are pretty much as session highs, the s&p is up 12, but we'll watch it. coming next on the program. thank you, kenny. yahoo shares as pressure mounts on marisa meyers to tern the internet's fortune around or sell it. david faber will be here with highlights from his interview this morning, next.

we spent much of the morning deeply in the red, but now we're

seeing positive. we'll look to see if the nasdaq can join the s&p? positive territory. >> yahoo's ceo marisa meyers plans failing to impress wall street today. speaking with our own very david faber this morning, and david joins us now. >> thank you, simon, very nice to see you again. as you well know, kell did speak with maria mayors this afternoon. in our conversation this morning, i did remind her when she's talking about increase in revenue new, back, the ebitda then was said to have been the low. that turned out not to be the case, something she explained. >> we had planned in 2015 to see

it grow and we did not. that's one of the things that hurt ebitda. so we felt it was by the expiration of our alibaba, as well as some legacy headwinds has our margin improving over the course of the year. >> my understanding, though, is maven, which has been a key part of your growth or endation, the growth part of yaw hulu 44% in '15, butter seeing a significant deceleration of that in '15. in part because of mobile search? >> that's right, we're seeing when it becomes a really large number, you're going to see some trailing off in terms of percentages of growth.

>> of course, not that large a number about $400 million. the growth deceleration from 44% year over year to 9%, perhaps yet another reason why that stock is still down rather substantially, though well off the lows. >> david, you also this morning spoke with kyle bass about his big bet against the chinese yuan, where a lot of people are saying if they just would let it go -- but policymakers don't want to let it happen. >> he says it's based on the banking system, simply put $34 trillion in assets in the banking system, a tenfold increase in just over the last ten years. at some point they'll have to start taking losses. he doesn't believe it's going to be armageddon over there, but at the same time he thinking that given the losses that are going

to take place, a recapitalization will also have to take place. the chinese will take part in that, that will deplete the reserves, and when you come back to them and say, listen, china has a lot of leverage they can pull to prevent that from happening, kyle says the following. >> the fact that there's such a high percentage in and around the subject leads me to believe we're right there. i meal, if some fund manager in texas is saying your occurrencery is dramatically overvalued, you shouldn't care if you run a $10 trillion economy, and i have some -- call it a billion, it's so small it should be irrelevant, yes somehow it's really -- >> he hayes devoted much of his find to that relevancy, at least in his opinion. again, that's a key consideration for them. 4 trillion on a so trillion economy. and when you get up to those levels, kelly, bat things can

occasionally happen. >> you know, daismt i worder if it's not spoke about as much in public as in private. there are a lot of banks that want to be in on that deal, and there might be reluctant to talk about the china currency being lost on a major devaluation. if what he's saying, he's talking about a 20% or 30% fall in the currency. that's devastating for asia, for a lot of the commodity plays, and for his -- i wonder the degree to which that is a theme that's not spoken about in public as much as it is in private. >> that's an interesting point, simon. it would be a lot of emessaging mark economying that depending on china so much on their trade, and that is part of the bet at least that mr. bass is making. it is interesting to know that

syngenta deal, money coming out of china, going into other assets, this by far the largest that we have seen of a deal in term of chemchina making, or any chinese country, but a lot of moving is moving out in part because of these transactions. >> it's 20 or 30%, you know, devaluation that happened in china, it would have, to some extent a negative impulse, but might also unleash a positive one. we've seen it time and again, whether it was for the uk economy for china, when it did a similar one-off move. onkyle pass himself would saying. he's probably say i think this ought to happen in order to get back off for a better footing and the rest of the world, too. >> that's what a lot of people bled. it would not get good for the

chinese economy. he does think it would be a reflex, but to your point, kelly, i think you're right. they see it as a reset of a type, but something that has to happen and not the end of the world. >> but it is traz since to risk assets would be horrible, wouldn't they? look at what happened in august, when they first started to move, a the gyration that is they have there. >> but 20, 30% devaluation, that's a whole different stor s stories. >> simon, i don't want to make light of it, it would be very significant if he in fact turns out to be right. >> i don't know whether he will turn out to be correct. again, he tends to focus on things like the growth in the banking system, which is a part of a larger issue, that you simply built this compares, and the demand is not there. and he's been mistaken in the

past. >> everybody makes mistakes. >> and very correct on other things. >> on japan he saw interest rates rising sharply, he was not right on that, where retches would not even meet of ability, at the same time he would short the yen, which would -- >> yeah, true. david, thank you. appreciate it. david faber. all right. hedge fund manager mark lazzeri weighing in, all this negative bond yield action. seema mody has more. >> i just spoke to hedge fund manager mark lasry, who says the european banks tend to be a big opportunity for distressed investors. what is real interest is the loans these banking are sitting on. lasry says, are able to buy them at a, and the ecl he says

they're currently working at northern europe, baugher their legal system is the best. lasry also said they don't make sent, nobody gives us money to lose money and it's better to stay in cash. last less hi understands why investors are shorting the yuan, however he said, i have no idea whether the chinese government is going to defend. rnb or not. that's one of the ricks, whether the chinese currency will fall and whether it would be allowed to going forward. >> there's so many. seema, nice to see you. thank you very much. now 33 minutes to trade. we're losing ground from the highs that we had, but the bigger picture is we rallied off a low of cloud to 200 points down on the day. up next, venz waita says opec and non-opec members have agreed on an emergency meeting

on oil production rates. what that could mean for oil prices, straight ahead. i've been called a control freak...

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off the low of the session. we have a news alert on the zika virus. sue herera has details. >> here's the story. florida's governor rick scott has declared a health emergency in four counties in florida because of the zika virus.

at least nine cases of the mosquito-borne illness have been detected in florida. health officials believe all of those cases are from people who contracted the disease while traveling to affected areas. the governor did put out a statement basically saying he wants to stay ahead of this and wants florida to be prepared. so as a result of that, in preparation, in case there are no cases he has declared a health emergency in four counties. nine cases have been dover there from travel. >> >> watch the cruising took. >> yes. they say in an attempt. russia and iran will parent attend the meeting. the economy has been stag are by falling oil prices. joining us for more is if saudi

arabia is not participating the the proposal is dead on arrival. what happens if everybody else still decides to go ahead. we know the prime minister has been making the rounds. is there a possibility of still some kind of agreement? >> i think you absolutely need saudi arabia. saudi arabia is really the driver of the opec. you need them on board. the saudis did say throughout 2015, they would cut if the russians would cut, so we'll see if that comes to the table.

we're stalking about a whole host of measures to get through this environment. sure, if the russians would take the bait, i think the saudis would consider it, but they don't want to balance this market on their own. they really need to see that russia is serious. >> so you think this game, this very public creating of meetings, you think that's a real lever in these markets? because there are others who think it's completely dead and a complete waste of time. >> again, i think if the russians were serious, prepared to sit down and not rebrand, if the russians were serious about sitting down 500,000 barrels, i think that they would probably consider it. if they don't, it's dead on arrival. >> record highs, they say. >> in the meantime we talked about venezuela. i mean, how long until they'll have a government-dead default. >> they are -- if you look at

the opec countries they are in the most severe economic distress. 720% this year. i mean, no country is facing quite the catastrophe as venezuela. but for the pure humanitarian economic crisis, vejz waila tops the list. >> do you think it becomes systemic if -- >> i think venezuela alone, no, but you have to watch for the rest of latin america. i would watch brazil. that's a big situation. >> is there anything that perhaps venezuela is perhaps the most desperate. i mean, is there really anything else that they can do at this point? >> they have to hope that china continues to open their balance sheets. i mean, what has khem venezuela afloat is very generous chinese loan -- china has given about 50 billion in 2007.

we are talking about a dow of 150 points. by the way, the dow is by far the outperformer today, as we're sigh the nasdaq down about a third of the%. >> in the meantime. a leading trader will tell us what he's watching now 25 minutes into the close. and mergers and acquisitions are still hot this year, despite the wild swings in the market. which sectors could see the most action, coming up.

welcome back. losic a bit of steam, but it's been a wild ride for the markets. we have sharply positive, just at the top of this hour. with a little more than 20 minutes to go, the dow is down d. it the s&p could turn negative. the nasdaq is still down. what should we watch now? martin joins us from grey wolf with a technical view. teak it away. >> two key developments, first the u.s. dollars secondly the commodities have started to

rebound this is a technical sector. technically there's a couple different things to break out. you have also regained this area near prior lows, both of these are positives, suggest that we should see mean reversion. a lot of these -- i mean, we have seen that a lot. >> big move. is this setting us up for a big are move? >> i think that's a result of a lot -- starting to see real pressure. we're at a period of time where the energy and material stocks are now starting to stabilize. i think the s&p is still moving more as a result of what treasury yields you doing, but it is a positive. markets starting to stabilize. this is just one piece of the

puzzle. >> great telestrator as well. thank you for joining us. >> he's scarily good at that. we have also seen deal activity heating up. three have been allowanced the latest being chemchina. we're going to ask you pointed out in the first place the deal activity has been pretty healthy despite otherwise woeful markets. so what's going on? what was driving them? >> very surprising. we looked ahead to it could be a down year. companies have to bring the new acquisition into their fold, and then you look back historically when -- we had some cycles and they were down in 2000, 20007, maybe in 2016 it could be a down

year, but year to date numbers. the strongest pace of 2005, over 130 billion, just in the u.s. >> so what sectors are we talking about where we've seen the most activity i think a lot of activity we are -- companies are under pressure. i think one of the catalysts, earlier where stock prices may be in 2000 due to a lot of m & a. in 2007, i think now the -- could be the absence of earnings. >> feels out of desperation? >> you know, you see dow chemical and dupont coming together, somebody looking for partners to find costs that they could move forward, but rich, the situation changes.

what about the available of credit? >> sure. that's a good question. first, we talk about cash. we know -- we talked $2.1 trillion held by non- -- >> they may not be the ones -- >> you look at the middle markets, companies may be more vulnerable. that being said, we talked about a lot of deals maybe in health care, in -- looking for the big acquisitions, the big rollups, going back to financials, because it's the large swath of businesses from real estate to insurance, asset management to banks, one of the bigger bank deals this year in terms of -- bancshares, you know, bank regional bank deal in over six months. >> and tyco there as well, but just before we go, energy, that's the one everything is

this finally the year? >> the fact is year-over-year numbers are up -- 2.5 ilen, i think we still have some stabilization? crude, some stability in prices. you won't see deals go forward. >> we know you'll keep us abreast. >> 17 minutes to trade, the big news of the trade is rebound in dow terms we've got from negative 200 to positive 150 in broad terms, so 350-point move. once the symbol of action and adventure, but go pro has been more a symbol of inertia and legacy, lethargy for some. [ laughter ] >> hanging on with my fingernails. up next a preview of what earnings they'll come out with tonight. and his name sends shudders up and down water.

bernie 34yrnernie madoff hits t interview on what it took to play the part.

wild wings ceo, how wing prices and labor costs could play the bottom line.

"squawk box" tomorrow on cnbc. welcome back. what a session. less thank 15 minutes from the closing beg. some interesting individual names driving the action like caterpillar and like exxon. meanwhile, the broad market, the s&p is up about five points. it's down half a%. well, keeping an eye on barnes & noble, that amazon is planning to open up over 400 brick and mortar book stores it remains an open question just to amazon's attention with a physical store footprint really are. >> our intentions turn to go pro after the close. josh lipton has a preview of what to expect. josh, take it away.

a month ago they plan to late off 7% of the workforce, so today a couple big themes on the call. one is gross margins, especially after the company -- what's the trajectory of margins from here. any commentary that the ceo will offering us about new products in the pipeline, including maybe a new camera and that drone expected to be relee leased soon. even bulls on the street say it might be too little too late, but if it's a turnaround, then it starts today after the bell. kelly, back to you. >> we look forward to see what the results do turn in. 12 minutes to go here, keeping an eye on markets an the oil price as well. there's been rumors or story about what opecs might do. that may be feeding into the positive sentiment. >> the bigger story are still done. up next danny hughes says

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welcome back, 175 points higher on the dow. it's been tougher this year to find a number of positive

trading sessions. that was true until about an hour ago, but the dow turned things around. dollar is weaker, oil is up, nasdaq slightly in the negative. keeping an eye on it. dhani hughes joins us. what do you make of this market? and where do you find value? >> it's been a crazy market. that's been a driver on a lot of the decision-making that we've been making. we like to see sectors that are beat up. not necessarily being contrarian in a global sense, but looking at areas of the market that have been so beat up and so downtrodden, that we know that ultimately will lead to some up side. in particular centering and financials. energy down about 30% is due to financials down about 15%, but that's where we're kind of picking and choosing. >> you know, the burning question that you inevitably have to ask, are we anywhere near the bowl?

is the recession coming? if you know that to be true, you would be a fool to buy that. >> and i don't care about that. and i don't mean that today is a perfect camp of staying back. not doing anything and all of a sudden the market is up in your face. this is valuable. i think 5, 10, 15 years, depending on the time horizon looping the road it will be valuable based on the underlying assets or underlying market's potential. ire abu i bp. >> not city. that's supposed to cincinnati insurance. they have pretty good number.

and then cincinnati, they've been increasing their different for almost 5 years ago. very few companies having done that. just because that entire segment has been beat up, we sigh that as value. >> is that comforting at all. >> intrigued. it's like, wow, okay. >> it takes the danis of the world to -- up next, we're coming right back with the closing countdown. >> after the bell, finally good news, bill miller picking the social media over facebook. you're watching cnbc, first in business worldwide.

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milk it. e*trade is all about seizing opportunity. three minutes to trade, and wow what a session it's been. >> the important thing here today is we were down early in the day, of course, on concerns about the services report. weaker than expected. when services are weak, that's a problem. when that report came out at 10:00, stocks sold off, the dollar weakened, buy yields weakened. raising rates less likely in the first half of the year, then all of a sudden down most of the

morning. the market stopped going down, then about 2:00, boom, the dow rose 250 points in an hour, and everything was -- i kept getting messages, what is going on? there are vague reports that maybe oil-produces countries are getting together and make they'll get an agreement to reduce production. weft heard this so many times. maybe that was a factor, but a lot of this was stupidly oversold. we've got talking about these banks for the last couple days. you cover european banks, but in the u.s. bank sector, regional banks have no exposure, they are pure domestic plays, they are trading like they're practical by going out of the business or the oil portfolios are useless, you know that's not true. >> on the big financials, the reversion win was the big story.

they raise -- there's still, of course, the banks sector is now 12% of the year. bank of america down 22, morgan stanley down 25%. year to date, i guess that all has to do with raising rates. today we saw how that -- >> and we get the idea that rates staying low is not a good idea, but again, look at the regional banks, these guys make 30%, 40% of revenue off the -- not interest rates. there's a whole other component. they're trying to get fees up to make for the lower rates they're going to have to charge. again, all this offsets these concerns here, trading these bankseses way way below book value, and i'm talking about those regional banks, some of this doesn't make sense. >> thank you very much, bob.

a huge -- on the session, now we wind other way towards the closing bells, executives from an thenal, and as discovery prepares for the animal planet's 12th puppy bowl. cloig cloig continues now with kelly eva -- "closing bell" continues now with kelley evans. thank. thank you, welcome to "closing bell." i'm kelly evans. you have 183 points, which is basically the mirror image of what we saw this morning. by the way. it was dow puff specific in some ways. and the nasdaq, closing just above -- joining today's panel, as we wait on this afternoon, we

have dennis if you weren, from "wall street journal," welcome to the both. more on today's market action. brian -- lindsey belle from s&p capital iq. great to have everybody on board. we are truly witnessing not just volatility, but historic sell-off almost. >> what the heck is going on? i don't have the answers. i think the dow's performance as suggested is people want dividend stocks, which means people are expecting interest rates to stay lower. it seems the market created its own rally, basically coming to the terms that rates been not going back up. >> it's a great point. a couple things building into that, walking back maybe or acknowledges the fed will consider the volatility, maybe respond to it. the dollar itself, way down on

the session today, so i guess everything was kind of playing into this. >> i certainly think this has a lot to do with the oil/dollar scenario, however it's kind of funny that the free markets we supposedly live and breathe are po temp-- potential collusion. >> you mean opec. >> i still remain optimistic. i don't see is the catalyst that's going to change the demand side in any ways. i still think we are going to muddle through it at best. if you take after the that together i can't tell you how much -- oil, china, they're not

related, they don't matter, then they look at the european banks. >> the stronger the dollar gets, the worse it is for the global economy, because it makes debts much more expected. when the economy starts to roll over and the dollar is stronger, everything starts to unravel. china is important because it's -- it shaw somewhere around $9 trillion that they have to pay back. oil, again, as the dollar went higher, oil went lower, but oil is a symptom of this whole thing. that's what it is. what it really is, we're seeing the end of a credit cycle, like we see all the time for a business cycle, and that they'll bring into the rest of the

market. >> let me push it further, then. what you're saying broadly is people are caught somewhere between the end of a cycle, air worry the end turns into some kind of crunch. is that fair? you have a credit crunch going on in china, european banks exposed to a lot of the commodities. and people are concerned that not only that, you have a very longer term debt cycle and it all could be combining at the same times to create a bit of a crunch here. that's what introducing the fed into the equation. >> i have to agree with carol about her cautious optimism. we're in a position where it's certainly a weakness, but it's almost as if the fed's salvation of the markets is a good thing, but it's really an indicator of how weak the underlying economy is, earnings, you can go up and down the line. you can't say the fed's action is a sign of -- >> just one thing to throw out

here as well. if the fed is responding to a global grab for dollars, that's not -- it's a sign of something happening that it can then respond to. it's not necessarily because of the mac roy variables are so horrible. >> i don't know that that's necessarily the case. i'm going to go back to something that b.k. said, it's not the expos injure to some of the commodities, but it potentially is really being exposure, and i think a lot of people are ver worried about it. if you look at the valuations of some of the international bank, they are so low -- that is the market telling you they don't believe the numbers being reported are really reflective of what is going on, so i think that the market is really understanding that there's a bigger underlying problem here. >> so watch deutsche bank? carol, quickly what might be some of toss products? >> the full alphabet soup.

>> i think i'm going to pass, but it's where people are digging, you're absolutely right. >> it's rem necessariant of the last time. i think that that is somebody especially in the european bank not just the quarter, but going forward. it just goes to show that ceo as analysts are expecting less interest rate hikes this year, and goes to every single point you just made. >> and energy weighs in as well. >> terrible. we're talking year to date. it's not july, okay? >> you can't make the argument's we heard on the street column

today, that bank of america among others is actually oversold. is it worth a quarter of what it was? basically six weeks or so? >> precisely. we heard from charlie last hour, we asked him the same thing. morgan stanley has sold off even more. he says bank of america is still too opaque. here's the problem. the crisis narrative plays out. markets are giving it to us, but what happens if it doesn't? what happens if -- just enough to kind of keep things on track? >> well, you know, here's -- the u.s. banks are actually in a relatively good position. they have -- they're not really the problem this time, because their capital has been boosted so much, because they haven't done the time of lending, and not only that, they are not as exposed to the equity markets, so there will be a time here in 2016, that you can buy the

banks, i don't think it's right now. and possibly what's going on in japan, so in the meantime, watch those banks, put them on the list, it's going to be a time to buy those. >> fair point. sue herera has more details. >> it isly it us concerns general growth properties. you may recall the chief executive on the conference call held on february second indicated that amazon was going to be opening a lot of stores and malls around the country, well, now he is saying he did not represent amazon's plans. he misspoke on the conference call. the market interpreted it as amazon committing to doing that, but apparently that is not the case. the chief executive officer indicated in the statement that he is not representing amazon's plan when he spoke on that conference call.

>> dennis, i'm surprised it took this long. >> i love this story. >> the reporters picked it up. whether it's 300, 400, 200, of course he's not relating their plans, but. >> had the pesky nbas. >> tall about mole trapping, what are going to be the future driving? the response is well, we have amazon opening 300 to 400 stores, so -- >> so people were taking this obviously in the fuller context, but still sold barnes & noble hard today. what do you think are the intentions here, dennis? >> i do not know. whether it's 100 stores or 200, it doesn't matter. >> if i was a betting woman --

>> we heard that maybe they're only going to open a dozen or so. maybe it's about providing them a closer distribution point, and maybe getting people in there picking up a few things -- >> do you think amazon is just going to open a couple? it's not like amazon to do something on a small scale for an extended period of time. >> and by the way, the check on amazon's performance today. it started year -- the outperformers, apple, net flick, and alphabet last year, of course, but amazon spent much of the day in the red. brian, any thoughts on this one? >> i think they should just buy barnes & noble. just buy them out. it would be a small buy for them, but clearly they have to be doing something. i would not buy amazon on this news, and i wouldn't sell it on the fact that the ggp ceo said

they were going to do it. >> there isn't one anywhere around here. >> amazing, barnes & noble is worth $600 million, that is it. basically a them able full of bezos' riches. >> we did have yahoo shares under significant pressure today. the question about whether ma e marissa mayer would still be ceo by the end of the year? >> i think it's unlikely. she walked into a job that most everybody knew it would be a possible task to turn it around. she just hasn't been able to do anything there that shows the investor community any signs that they're on the past in the right direction. >> let's get some breaking news on -- julia? >> sumner red mon has been

resigneds cvs. -- cbs. of course this comes as among various lawsuits claiming that sumner redstone is no longer able to operate as chairman of both cbs and viacom, so this says that there -- redstone will continue as eye mer tuesday, and his daughter sherry redstone will continue to serve as vice chair. so this raises questions about what's going to happen at viacom where redstone is still chairman, and also we'll see what happens with the shareholders lawsuits that are being filed against -- as well as sumner redstone. currently a lawsuit filed bits his ex-girlfriend. back over to you. >> looks like the shares of popping on the news. frankly there's been a lot of concerns, so what does it mean strategically, do you think, for the future of these companies?

>> reporter: i'm sorry, what does it mean for the future of cbs? it was long expected that les moonves would take on that role, so i don't think it's surprising here. cbs is certainly considered the healthier of the two of sumner redstone's companies. vie an com has been struggling, and i think this raises a lot of questions about how long sumner redstone will be chairman of viac viacom, and i think as the sumner redstone lawsuit filed by his ex-girlfriend continues over the coming weeks, it will be interests to see what comes out, that he was still participating member of the board and giving him input and feedback. dennis, anything to add? >> i don't see how he can remain

chairman, if he's somehow infit fob chairman of cbs. the big question is whether they rem remain joint companies, will there be a fight over to controls them, and potential m & a. >> or even a recombination. >> i think this is obviously great news for cbs shareholders. less moonves is an excellent operator and manager, and i i imagine you will see this spilling over, but i certainly think on the viacom side that is a very viable m & avan& a candi viacom shares up 8%. that does seem to be pricing in a lot of this discussion if they're now an attractive

target. >> probably positive for viacom, but i'm a little late on that comment. if you can resolve the uncertainty around viacom, that's going to be good as a short-term pop. then the question is, what is the company going forward? thor are they handling this transition that's going on in media? so far they have not handled it probably as well as others, but maybe with a new leader, or threats some limp clarity, they'll handle it better. that's 2 1/2 times viacom. there's a lot of reasons why it doesn't make sense, but it show yous how much the value has shrunk. we'll leave it there now for a moment. and brian, there's much more coming up with the "fast money" crew at 5:00 p.m. they're talking to a too many-ranked analyst who will explain what he thinking could drive the next leg of the energy -- and shares down 80% in a

year, plus the ten-year treasury yield drawing. could that heat up the housing market? when we come back. cnbc, first in big worldwide. the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained. and in albany, the nanotechnology capital of the world. let us help grow your company's tomorrow, today at business.ny.gov

welcome back. seema mody has an earns -- >> 60 -- hired 6 $663.95 billio. and for the fourth quarter up 3%. pizza hut chrks has been a source of concern for investors, that division is seeing same-story sales. and of course on the conference call, further news around a spin-off likely a topic, specifically now that we know there are other board members, so we'll keep you up to date. now downs fractionally after hours. buffalo wild wings missing straight estimates on its bottom line. revenues as $490 million versus a $507 million estimate, so it's

a disappointing earnings report, also weak 2015 earnings guidian. kelly? >>. >> first, though, investors have been rushing into bonds, pushing the yield on the ten-year treasury to a one-year low. diana that is more. >> the ten-year is at a one-year low, and that means mortgage rates are at a one-year low. take a look at this drop. not only did we break below the 4% range, but just in the last three days, home buyers gained considerable purchasing power, but i want to talk more about reifies. this drop isn't going to be a game changer for the buyers, but let's talk. this is yet another opportunity, i know everyone has already gotten the low rate on the reify, but consider this.

home valuing are way up, which means people can refinance not just to get a lower rate, but to take cash out. nearly half of all mortgage refinances in the last six months were cash out, according to black knight financial services, on average they took over $60,000 each. but not taking out as much as they could. borrowers taking cash out on average leaving 33% of the cash in the house. this, even though their average credit score is really high, so lenders would let them take more. homeowners today are seriously conservative. we see it in the savings rate, but some may be missing out on making that home equity work for them rather than just sitting in the house. >> they're saying people should take all the cash out of their house? >> no, no, no, not all of the cash, but when you put 20% down on a mortgage, that's considered a conservative down payment, but we're looking at these borrowers

refinancing and still leaving considerable money on the table, leaving 33% equity in the house. some people would say, look, that money could work for you in a different investment opportunity. so why are buyers -- or borrowers being so conservative. >> because we're all conservative they see days. post-crisis mentality still prevails. thanks, diana. we appreciate it. some more on redstones resignation. we're joined by brian wiser who has a buy rating on the stock. what's your reaction? >> well, i mean, i think it's not surprising. in i think there's no question about it's going to continue at some point. frankly i think the bigger news is the compliments on viacom. we're seeing that stock shooting up more, because there's more issues on viacom with respect to redstone chairmanship, and

making enough at this time definitely has a favorable real-through in terms of some kind of change that i think investors want to see. on the cbs side, there should be no surprises. he ran the company until he doesn't want to run the company, and i think everyone is happen with him in that position. >> yeah, brian, in regards to viacom, do you think it's more likely that if there is new leadership that's brought in here, that they will pursue sort of a -- not a full turnaround, but trying to right the ship and try to do better with the stock organically, or do you think it's an opportunity to sell the company and, you know, let it sit with another media company as a parent? >> well, i think both are possibilities, frankly for both cbs and viacom. i think that possibilities are opened up in post-redstone ieye era.

i think the main thin with v viacom is notwithstanding whether he's done the right job or not, i think there's a lot of investors who believe there would be no alternative under any circumstance. it's the undesirable element for most investors in the current situation. >> julia boorstin back into the consideration. >> i think it's worth pointing out something in the cbs press release, announcing that les moon dves, they say here before electing, nonexecutive redsony, his daughter, but she decline citing other responsibilities, in recognition of her confidence in mr. moonves. the fact even though she was offered the job of chairman, but she turned it down, speaks to

the fact that cbs is the one of the these two that seems mob more on track and managing this digital transition much, much better. there have been plenty of reports that sherry redstone would be interested in chairman of viacom, but that's also a position that -- even as people are calling for chairman redstone to step down from his role as chairman of viacom. >> and brian, it's just a matter of time before we get some kind of word out of viacom of what they'll do, but julia brings of a good point about shari r redstone. to what extent does she feel in control here? >> that's difficult to know. i would also say it doesn't necessarily says that anything happens at vie am com anytime soon. it's possible. certainly some of the course cases that play out my push that

faster, but i don't think it snell means them to going anywhere. there are limits to how long the situation would go on >> brian, who is the best buyer? >> well, you know frankly it could go either way. they could be buyers or sellers. i don't think it's accurate necessarily. i'm sure they would love to have a bigger platform under the right circumstances at the right price, so yos it's a given that they're necessarily a seller. >> okay. you keep your rating and price targets on cbs? >> buy ratings on both. viacom is good for the -- not for the faint of heart, though. >> julia, what were you going to say? >> i was just going to say that cbs is much more likely to be a buyer, whereas viacom is more likely to be split up.

so i think there's fewer questions whether or not cbs would be sold off. that's the main core television business. there's a lot more potential for cbs to combine with some of the other media companies? >> julia, thank you so much, brian, you as well for joining us, as the shares do respond positively to the news of sum mer redstone stepping down. >> up next, you saw go pro shares there, expecting earnings in a couple minutes. we'll hear from analysts who are bullish, despite the 80% drop in the past six months. stay tuned.

welcome back. we have more breaking news. this time on viacom specifically. david faber joins us. >> as people might expect, when you see mr. redstone rye sign, you wonder if he's going to respond as chairman of viacom. my sources indicate that viacom's board will be meeting tomorrow, kelly, to elect a new chairman. they have not yet done so, but that is the expectation that the meeting tomorrow will take place, of course, and that mr. redstone will be replaced as the executive chairman of vie am com as well. unclear who will take his job, as you we noel, felipe demonday is the ceo, but it's not clear

if he would step up to the chairman role. and perhaps no big surprise here, that mr. redstone is doing this. there's been a lot of questions on the corporate governance front for some time as to why and whether he really should be remaining as executive chair of these two companies. as i reported, while he is certainly still capable of doing certain things, people tell me he's not engaging in any strategic discussions any longer with either of the managements. he also has the interesting -- not interesting, but you have a scenario until which felipe is the health care proxy, you have the ceo being the proxy of the chairman. that's somewhat odd. not to men mr. redstone's pay for the last year, it's been recently lower, but was fairly high exec for an executive chair that was not particularly involved any longer, and

certainly not day-to-day, but bigger decisions. when can tums to cbs and viacom, i notice the shares may be up on this news, but he still remains the controlling shareholders through national amusements and is control of that company. so it still remains i think hard to imagine that any significant changes, strategic changes certainly, what we know is a very quickly changing lane cap will take place, given that mr. redstone is still in control, but the board, kelly, meeting tomorrow, expected to name the replacement at we have reporting and you've been dug leslie moonves stepping up as chair of cbs. spech david, we have a question. >> what's your read on shari redstone's angle here? how does she play it as a

businessperson? >> good question. i think the frustration she may have -- i certainly don't want to speculation -- is more on the viacom side and perhaps the relationships on that side are more different based on many conversations i've had about people over many, many months. it's not clear to me exactly how or what she would do, but i think that's where the focus would need to be. my understanding of the relationship between herself and mr. moonves quite strong, i'm not sure about the case on the viacom side. you well know the stock price has been hammered. the company has not done a particularly good job, many would say, in this current environment, that they're dealing with. for a number of years. that frustration has come out from any number of shareholders as well. who have wondered out loud, and certainly she one of them, so i think that's the part of the story that perhaps is the most interesting.

in that case perhaps less of a focus for her than viacom. david, real quick, before we let you go, especially on the deal aspect of this. anything you would add there to the assumptions people are running to make about acquisitions and possible targets and who is buys whog? that sort of thing? >> i wouldn't rush to judgment, i think. in part to my point. mr. redstone remains the controlling shareholders, through the control of national amusements. frankly, by the way, even when the day come, and apparently his health is unchanged, but when the day comes that he passes, the trust that he has in place doesn't necessarily dictate that there needs to be anything that's done with either one of these two companies. there's no need for a sale to be forced in any way given the provisions that he's already made and who the trustees will be. so kelly, i think people would

love to rush to judgment on these things, okay, maybe this means that consolidation is coming in some way or decisions can now be made when you have a new chairman for cbs and viacom, but you still have the same controlling shareholders, and i think that's the key. >> thank you david. the board will be meeting to elect a new chairman tomorrow. meantime, go pro's earnings are out. josh lipton has the results. josh? >> well, kelly, go pro is just reporting. reporting a loss of eight cents on $437 million. remember, analysts had been looking for break even on the bottom line. about a month ago, go pro did preannounce results. at that time they said they were looking of revenue around $435 million. that was a disappointment to the street. go pro is saying looking for 160

to 180 million, and the full year also a miss, full year 2016 go pro is saying 1.4 to 1.5 billion. analysts had predicted 1.6 billion. in the release the ceo saying the second half of the year growth did slow, that we need to recognize the need to develop software solutions to make it easy for our customers to off-load, access and edit their content. on the conference call we'll be looking for more color on the guidance as well as the product portfolio, the new camera, the new drone. will we hear for users to share in content. that conference call kicking off at 5:00 p.m. eastern and we'll be a it, kelly. back to you. >> josh, thank you. joining us for more is charlie anderson who has a buy rating on go pro. continues to maintain that rating, charlie. first, though, why do you think the shares are up on the results? >> well, it's a total wash, i

think everybody expected a bad quarter. they preannounced obviously before. what's interesting about the guidance is that it's honestly not that far off where our estimate was for the full year despite way lower q1. it would anticipate that the last three quarters of the year are roughly where the street is already, which is kind of interesting. so they have a fast start to the year, and we'll have to find out why that is. >> go pro -- i saw 1.2% gain which you're looking at, but it does not reflect current trading. why do you think have a buy rating on this company? >> it's a simple -- that we have to judge the stock on where it is today for it's it's as simple as it's been on the estimates close to a one-time sales multiple. one times the sales, a bit less than that. that's generally where stories

like this have bottomed. with a new number, we'll have to revisit that. >> i have been contending since this company went public, that this is really more of a product than a business. at the level that it's at today, perhaps it becomes an acquisition targets for one. can you tell me where the value might be for a potential acquir acquirer? is it? the patents? where might a potential acquirer find value? >> to be clear, it's not my investment e. they probably will never be. it's probably too niche of a product for my purposes. i don't think there's a huge portfolio here to be frank. i think it's a great brand. i think it will afc be more valuable on its own if it can develop good products as opposed to under someone else's roof. josh lipton has more news from the company. josh?

>> kelly, more news here on go pro, announcing that brian mcgee is going to be the cfo effective march 11th, replacing jack la czar. no more details except that headline, but big changes here. hopefully we'll here more about this change in the conference call that kicks off in about 20 minutes. brian mcgee will become the cfo march 11th, succeeding jack la czar. >> thank you, josh. what you're saying there is a gain from the session today. >> what's the over/under on the time it takes for an unknown chinese company to buy go pro? carol? >> i don't know that it's necessarily an unknown chinese company, but i think it's the only thesis that i can come up why you may not want to sell the stock. i certainly wouldn't buy it. i think if you have it, the only reason somebody might not want to sell it is a potential

acquisition. >> there's another complains from people sometimes, that it has an advantage in the virtual reality segment. >> what they need to do is come out with a camera that can capture in 360 degrees. they have rigs today, they're very expensive, but if you have an inexpensive consumer camera, that would fundamentally beat the content of a vr headset and that could be compelling. >> how far are we from that reality to the reality of the shares today? >> yeah, my guess would be the earl yes, sir we would see something is the end of 2016. >> all right. charlie, thank you so much. joining us from dougherty and company. we'll le you know when the shares rehope, see how they digest the information from the earnings. we have more news to get to,

though. this time it's on delta, and phil lebeau joins us. >> big news from delta air lines, ceo richard anderson says he will be resigning effective may 2nd, he will become executive chairman of delta air lines. it will be longtime president of delta. he's been richardson anderson's -- he'd be point president of delta, also effective on may 2nd yes, the shares are unpressure this year. the merger with delta air lines back in 2008, since then, delta shares have just done an incredible job under richard

anderson, and he was in charge, a long and very successful tenure, but he will be stepping down, retiring from the ceo job and moving into the executive chairman job, effective may 2nd. kelly, back to you. >> wow. yeah, he is -- dennis, at least since i've been here, an executive extremely well respected. >> as phil, he's done extremely well. at these moments you write the professional obituary, even though he's very much alive. he's definitely one of the winitious during the wave of consolidation. it's interesting to see show airline stocks have suffered despite tremendous profits. >> i would say this is the engine news to the yang news about sumner redstone, right? you have one situation with a ceo that has done a phenomenal jobs, versus the scenario that we were talking about where investors are clearly cheering

that. >> a bit to speculate here, but why now, and why for an executive that would seem to have quite a bright future. >> i don't know richard anderson's age, but i know he's been in charge of delta, and since then -- so it's fair to say he's earned the right to finally say, you know what? i have done the day-to-day operations for 15 years. it's time for somebody else to take over. by the way, ed bastion, the longtime president of delta, highly regarded within the instrument industry, and he's not some johnny come lately. so, he steps into that job, certainly there's a transition from richard anderson to bastion, but it's not as though they're bringing in a complete unknown. >> so some turnover at delta after the turnover we also just witnessed. after years of success is under

quite a bit of pressure. for now, phil, thank you so much. >> you bet. before we go to break, let's check in on shares of -- as we await go pro's reopenings. we'll have more on this when we come right back from a break. up next, we're also going to hear from the author of a new novel who spins a tale of what it's like for a woman working on wall street, all based on her experiences ago a manager at bear stearns.

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watch discovery. record this. voila. remotes, come out from the cushions, you are back! the x1 voice remote is here. welcome back. former wall street trader and executive maureen sherry spent 12 years, the return on that investment is a book, features d., all this and more in the new novel called "opening bell with a knee." and maureen sherry is with un. >> why not "closing belle"? what's been the reaction to the book? >> so far very good.

what's surprised me is many, ma many. >> so, carol, anything you would add? >> i'm an former investment banker. i felt that having the men working there, they were incredibly supportive. they were the ones who brought me along. i know you feel as though leaving and doing your own thing, but as women, we lose something when we don't have the women to bring everything look, and create another table on playground. >> right. i think that's a good point, but i also thing that they are going off for a very explicit reason. they're finding a work environment they don't feel is particularly comfortable for them, or after a while maybe they feel their career has stalled for a particular reason? so the idea to leave almost becomes a nonstarter, something they feel that they have to do.

>> they're chased down. >> is wall street ever going to change? >> your tale is a more recent chapter. i wanted a character not particularly whiney, kind of fun and breezy, so the idea is she would take you into this world, a world that i feel is still hermetically closed, see it through a woman's eyes, explain the mortgage cries through her eyes, and after that, she opens herself in a sense to learning more just about herself. but you asked about is wall street going to changes? but perhaps not -- anywhere where the money and men are. >> maureen, thank you for joining us. maureen sherry, the book "opening belle."

more earnings to come. and bill miller's twitter. stay tuned.

welcome back. shares of gopro set to reopen. what you're seeing is today's trading price, reopen at 5:00 p.m. after reporting much lower lower than expected shares in guidance and ambarella down more than 5%. more hon both stocks coming up.

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i love twitter at $16. i mean, everything that can go wrong with twitter probably has gone wrong with twitter. twitter is a network of interest and facebook is a network of friends, and from a monetization

standpoint, again, i'm -- i mentioned larry summers. it's easy toe monetize larry summers or joe kern than it is my grandkids' faces on the beach. three cents a day to be on twitter. $1 a month. how many subscribers would they lose? 10%? maybe. but what if they lost had a third? what if they lost 100 million of the active twitter and said no way, not paying 3 cents a day, pay three bucks a day for starbucks but not three cents for twitter. >> would you guys pay three cents a day? >> no. >> i've advocated for a premium model where it's free for the base users and you pay for access. if i could search my feed and find things, i'd paid even more than three cents, i'd pay five cents. >> like spotify. >> have the users are bots, half developing countries. you might have 10% to 15% takeout based on bill's analogy. >> the valuation of where this

company is, this is a company that the management team can't get out of its own way, somebody else should. >> she's a bank, wants to sell. >> with all the breaking news today on the show we didn't get to bring you our interview with richard dreyfuss and blythe danner. the interview will be posted online on cnbc right away and putting it on the "closing bell" facebook page. check it out and send us your tweets and thoughts. that does it for us on "closing bell" today. "fast money" begins next. drop i. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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a reputation at stake? tomorrow, what's up with thanle's apps? walt mussberg takes a hard look at the tech titan's software. "squawk alley" 11:30 eastern cnbc. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square. traders are tim seymour, dan nathan, brian kelly and pete najarian. tonight on "fast" one of the hottest trades on the street involves you losing money. hmm. got your attention? we'll explain what that means coming up. plus, crude oil surging 8% today, but one group of stocks is predicting that surge is about to come to a screeching halt. we will tell you what that is and how you can profit. and later forget the vix, the real fear indicator is on fire, gold hitting a three-month high. we'll tell you why a super surge could be right around the corner. but, first, we start off with the markets. a massive reversal for the dow closing 376 points off the lows of the day, but the move was a little schizophrenic.