the next couple of hours. >> that should be a good one. stocks on the move. one of the most talked about out there. thank you for watching "power lunch". >> it's been great to have you. "closing bell" starts right now. ♪ >> hi, everybody, welcome to "closing bell." i'm kelly evans. >> i'm bill griffeth. today the energy sector is the biggest loser after being the biggest winner yesterday. we'll tell you what's behind that reversal and the next hour by the way, chevron ceo will be here for a live exclusive interview and questions continue to swirl around the company. they've cut back on their capex and investment in their own business and you wonder about the dividend. john watson still maintains it is safe. >> a big project of theirs came online. we'll talk about all of that and more and global investment strategy with rick rieder and

mohamed el-erian. >> the drama at united continental airlines continues, activists looking for board changes as the ceo is set to return. david faber and phil lebeau will join us. >> i think we got him even to come down to the stock exchange. >> just flew in. >> you can see on screen, just breaking in the last hour, whitney tillson is back shorting lumber liquid ators, he'll explain why the shares are down another 9%. it was about a year ago that that first 60 minutes report about the harm potentially done to folks about this flooring came out. it's been quite a saga. >> then covered that short position of his in december but put it back on again. we'll explain why coming up in a little bit. let's start with the today's move in energy and materials, the stocks. bob pisani joining us.

>> thank you, goldman sachs, we had material stocks going and this morning they put out a note pouring cold water on the idea of further rallies. here's what they had to say, oil supply and demand is not in balance and don't pretend it is. a rlly now will prove self-defeating as it did last spring. don't repeat the same mistakes of last spring. same with the metals, rallies in the metal stocks are not supported by the financial environment in china. that's what it is, a china play. china's credit con strained and will be more limited even with system you list. what's the effect of that? all of the metal stocks and energy are done. here's cleveland cliffs, big iron ore company, down 17%. this company was $3 in december, goes to almost $1, like its going to go out of business in february and then rockets back up to $3 as the environment improved and now back down again today. these stocks have had big round

trips, the same thing with the energy stocks. come over here. you want to talk business to be in. how about being a driller, a contract driller. ensco gets hired by exploration companies and the business is lousy, they were $15 in december and went down to $7 in february and back to $13 yesterday. it's down 10% today. what is all this mean? it means we have absolutely no idea how to value these companies because nobody has a clue what the business is going to be like six months from now, nobody has a drill what the drilling business is going to be like and what the iron ore business will be looking like and that's why we get these crazy swings. we need a little more certainty and stability and commodity prices will be fun but goldman doesn't think it's going to happen. billing probl big problem. >> brian youngberg with edward jones. good to see you. one of the things that's really

interesting when you see plunges like this in the valuations of these companies, if you find ones that are trading below asset value or that -- regardless of the next 10% move in oil have become so cheap they are attractive here that could finally present you with a good opportunity. do you see names like that jumping out as you look across the sector here? you think beaten down too much? >> i think there are some great opportunities. i think investors initially should focus on having a good core and chevron and names you can compliment that with companies that have a little more risk. you have to have a tough stomach but names like apache, marathon and we think there's great long term value. not going to happen overnight. that could reverse here any time. but you think out three years, five years, ten years, we think these companies will provide great value for investors there

in need of energy in the portfolio. >> and that move higher last few weeks has been on hopes or anticipations or fears or however you want to put it, opec and nonopec members will be able to freeze production at january levels. do you think they'll be able to achieve that? >> i think they may. we're not really going to see much production growth out of opec but i think the bigger picture what we're seeing, we've seen short sellers covering, that's part of it and we're seeing production values come down here in the u.s. 100,000 barrels per day. month over month, i think we're going to continue to see that. the comments from all of these producers we're going to reduce our production and we think the market is going to anticipate that. you want to own in front of that and think long term and try to get away from this day to day volatility and that's more of a traders -- we think investors should think long term. >> why apache and why marathon?

>> i think they are both under valued. they have good assets, apache, new ceo took over last year and they are operating very well. marathon oil, you know, their balance sheet, i think the shares are really pricing in near bankruptcy. we reduced spending and so forth, they are nowhere near bankruptcy or having any dire situation like that. they are trying to weather the storm here and if we're looking at $20 oil a couple years from now, talking global recession, we probably have bigger problems and likelihood is very small. think long term and oil and we think 60, 65 is a good price for long term. >> the last thing anybody should try to do is invest where they think the oil price is going. that's the one thing that nobody can forecast lately.

>> they have enormous amounts of cash and in prime real estate in oklahoma, you know, we think there's good underlying value and investors need to be very, very patient and have a strong stomach and for day to day stuff. long term we think these companies will be survivors and will come out at the other end and it's a great time. >> thanks for joining us. >> thank you. >> john watson will join us next hour. we'll talk about if he thinks oil has bottomed. >> joining us in our exchange today, cnbc contributor from index financial partners and ben willis at post nine as the floor erupts for some reason and we've got rick santelli from chicago as well. >> it was clear that oil

continued to call the shots and that's the story. if oil is going up, so are stocks and vice-versa today. >> what you're seeing is really the effect of traders in the marketplace. what we've seen for the last several weeks was a short covering position in the mining stocks and oil stocks and other related energy stocks and when citi bank and goldman made commentary today suggesting that if you were trading for fundamentals there was no reason purchasing as a long-term investor, you had plenty of time to wait. it gave the distinct advantage to those covering the shorts to walk away. as that came over early in the morning to the group on squawkbox saying we're seeing the short restrictions on all of the stocks up 50, 100% in a single day hitting limit downs for short restrictions and 10% on the opening tikz, that's an indication to those wondering what they should do, you do have time in this marketplace if you're a fundamental investor

and looking for the opportunities of previous guests pointed out. there are investment opportunities and probably not going to raise their head as quickly as they would have with the short covering rally. you'll have to have a little bit more patience. >> jack, we welcome you. it's been a little while. we're wondering -- taking a pause today is your rally cap on? >> not yet. there are still a lot of uncertainties hanging over this marketplace. we can go on and on and talk about numbers that came out of china last night and election, but when we do the final analysis, what we have to do is think about this. we just went through an entire economic cycle and tomorrow marks the anniversary march 9th seven years ago we set that low. we've seen an entire economic cycle with no fiscal stimulus. we can call cash for klunkers

stimulus, but there was nothing that would convince me that we saw pro-growth policies that came out. what that meant, you had a federal reserve which did all of the heavy lifting for the last seven years and unfortunately the market became a bit addicted to that, much like a patient become being addicted to steroid injections. >> that's about to turn over. you got your pick, trump and hillary, who's going to deliver the is it stimulus you're talking about? >> i don't see it happening with either one. we're talking about trump and hillary and about socialists maybe becoming the president. these are things that in my lifetime i never thought i would hear about. i'm a product of reagan revolution, for to be even talking about what's going on in the election process is more of a circus than anything else. what we need is another reagan. we need something who will deliver us with supply side economics that's going to create

real jobs. >> i have a question for you but i suspect you're going to want to talk about other things as well. that three-year note auction was underweming and some people are interpreting that the markets are still anticipating a rate hike sooner rather than later and they don't want to get in the way of that. >> i would think that you're spot on. although i would also put many as ter isks, if they do a rate hike unexpected considering the yield curve and fed's balance sheet and global economy, it really does draw us to the attention of what's going on once again in europe and japan. look at a japanese 30-year or the fact we're back under 20 in a european boom and all of these are really highlighting -- and jack gave a good summary.

i don't know, i feel like when it comes to fiscal policy versus monetary policy, there's a word that's missing and it's trust. i remember and harken back to stimulus and tarp and we can debate but i don't think shovel ready effectiveness is there. on one hand, without that type of trust, maybe we're all better off that they didn't dabble much but on the hand of central bankers, seven years, we're still in crisis mode with regard to policy. i know that jack says that they did the heavy lifting, i don't disagree. i think their heart was in the right place and tried to lift the economy up. but rethinking and kicking the tires, all of that was avoided and i hear talk about productivity and how to address it. a little long in the tooth but i would have liked to have heard those discussions several years ago. >> we brought baking soda and vinegar together today and

nothing happened. >> i don't know what to make of that. thank you, guys. >> watching a market that is is under pressure, the last couple of times we saw this in the past year we took a pause and continued it. we want to see if that's going to be be true this time. >> continental under pressure to shake up its board. we'll talk about what could turn out to be the battle royale of airline industry coming up. lumber liquidators getting hammered on news, stock down more than 10%. whitney tilson will be here live to talk about the risk he sees. you're watching cnbc, first in business worldwide. the lexus command performance sales event is on. with extraordinary offers on the visionary ls, the generously appointed es and the new, eight-passenger lx. ♪

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we're always looking for ways to speed up your car insurance search. here's the latest. problem is, we haven't figured out how to reverse it. for now, just log on to compare.com... plug in some simple info and get up to 50 free quotes. choose the lowest and hit purchase. now...if you'll excuse me, i'm late for an important function. compare.com. saving humanity from high insurance rates. welcome back shall, jetblue is down 18%, citing tougher comps and capacity across the country. >> united continental is under pressure as well. a story was broke that a major

proxy fight is brewing. david joins us with more details. >> that proxy fight has broken out into the open court with the releasable letter from two funds that have gotten together, only. and they filed a 13 v some time ago but followed it up saying they want six board seats and also want gordon bethune to become the chairman of the company. they don't say that specifically in the new release but did inty mate it in the many conversations they had and that was the threshold issue for them despite back and forth between the two what they might accept or wouldn't. they wanted mr. thune as chairman and hence the proxy fight with six directors being proposed by this grouping of significant shareholder in

united airlines. we'll see where things go from here. earlier, i did have an opportunity to sit down with the aforementioned mr. bethune, ceo of continental airlines sometime back. here's what he had to say whether he does or doesn't want oscar mun ez as the guy in the top job and what he believes the board really needs. mr. munoz needs help in learning aviation and how it works. >> he was a board member for ten years. >> don't learn anything on the board. you earn things about doing stuff. >> you don't learn anything by being on the board but the board is at fault. >> unless it's out there loading bags and flying airplanes and scheduling and those things that make an airline run. >> mhe says there's no reason i should be number four. united comes back and says we have 2.5 in free cash flow and

buying back billion and a half stock, on track to achieve goals and cost savings, bill and kelly, this will fight on for a while. nobody expects they are going to get six seats necessarily, that would seem to be a pretty about ask. but we will see how it ends up as it relates to mr. bethune. >> i'm not sure the board will hold a party welcoming him after those comments. >> let's bring in phil lebeau. you don't have to read between the lines to hear he doesn't think oscar mun oz knows how to run an airline. what's the history of people running airlines? >> it's hard to say that anybody who has not been in the industry can't run it. there are people who have come from outside who have done well in the airline industry. what is interesting what david brought up the fact that gordon bethune is ripping into the

board and saying they don't understand what it takes to run an airline. well, where have these two investment firms been for the past two years? this is not a new story in the world of aviation, that united has lagged competitors. the most interesting thing here, why now? why do they believe that it's the right time with oscar munoz in charge? by the way, most people who have looked at munoz's elevation to the ceo job says he brings in what they need, one, improving labor relations and two, he's have good on the logistics side of a business. that at the end of a day is a lot of what the airline business is about. >> he was at csx. >> yep. >> i thought the same thing, the timing of this move now by the two firms, why do you think they are going after him right now? obviously you have this change in leadership with munoz finally being able to take reigns. is that the reason why they are going after now?

what do you think. >> you would have thought that might have been key. he supports mr. munoz in that position. when we asked him about it earlier and back in september when mr. munoz was originally appointed, he was supportive. i'm not certain i have the answer for you, bill, specifically on that point. there was a lot of back and forth here between the firms and company. so they said they wanted six, then they said they would take five and company offered two without him being the chairman and they decided to go and fight. not to mention they added three board members yesterday morning to bring the size of the board up to 15 for now. >> one quick point, oscar mun oz is the beneficiary at the end of the day to a certain extent. he's already made it clear he wants so shake things up and they don't perform. they need to improve performance. he has a little free reign to go back to the board even if they don't bring on as many members as this group would like and to say look, we need to be more

aggressive. i suspect that's what he's going to do at the end of the day. >> what they really need, a passenger activist on the board to improve -- >> are you nominating yourself, bill? >> sure, why not? make sure their flying experience is fun again as it should be. thanks, guys. phil, good to see you. >> good to be here. >> safe flight. >> on united. wlet us know about the experience. david faber there with the latest. >> 40 minutes left and the dow is starting lawyer again, down 79 points and s&p is down 18. and the nasdaq, big lag ard down almost a percent or 43 points. next hour, mohamed el erian and john watson will discuss the oil giant's cost cutting measures. stay tuned, whitney tilson discusses why he's

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>> welcome back, the dow is down 79 points, we have specific movers, urban outfitters have the best day since august of 2012. as you heard on this program late yesterday, fourth quarter profits beat street estimates

thanks in part to a shift towards higher margin merchandise such as house wears and vinyl records. some solar energy stocks on the move today, vivid solar, terminating its deal to be bought by sun edison's terraform. they said sun failed to meet obligations that would have completed this transaction. as part of the deal, sun edi did the son's yield was going to buy the roof top portfolio. this was a big point of concern for david, a big shareholder of terrace raform, they sued sun edison, so now tep per is telling cnbc this is a good thing for terraform. >> lumber liquidators down 11%. on news that whitney tilson is

shorting the stock again. he joins us now in a first on cnbc interview. great to have you with us. >> good to be back. >> you first presented this as a short idea, november 2013. let's begin with why did you close it out in dis? when you did that the stock was trading at about 120 bucks. why did you think this had run its course? >> with the stock down 90%. i thought it was time to declare victory and in particular, i had gotten new information from two sources who i can't identify but who i thought were credible who told me that the company contrary to my belief that the company must have known they were selling dangerous for ma da hide laminate from china, that they didn't know, they thought the product was safe. that led me to believe that

rather than being evil and nefarious, that instead they like many companies got blind sided by their chinese suppliers. that led me to believe the legal and regulatory liability resulting would be manageable and the company would probably survive with the stock down 90% it was probably time to declare victory. >> in the meantime with had the cdc report which revised their earlier estimate of the incidents of cancer as a result of exposure to the form ma da hide in products there. is that what brought you back to the table? would you have been less inclined if we haven't seen the rally after you closed out the short position in november? >> the cdc report was critical. fs business was devastated by the 60 minutes report and the name associated with a chemical with formadehyde.

the cdc issued a report in early february that confirmed what "60 minutes" and i were saying, they were elevated levels but they bend over backwards to assure people it was -- might cause ear and nose and throat irritation but wasn't likely to cause cancer and people probably didn't need to have testing of the air done and don't need to rip out flooring. the headlines in the media -- there wasn't much media coverage, said no cancer risk from lumber liquidators floring. the stock rose 20%. then an outside researcher discovered that the cdc made a terrible mistake in the test room where they measure the formaldehyde, they had the ceiling of the room at a height of 8 meters and of course the height should have been 8 feet. so all of the calculations were incorrect and the formaldehyde

concentration was three times higher and anderson cooper on 60 minutes did a two minute segment on february 21st, identifying this mistake. the cdc admitted the mistake and this was a media frenzy and the headlines were flooring three times more likely to cause cancer. when you associate a business with formaldehyde that's bad but with cancer is devastating. in the last couple of weeks, the business has gone off a cliff. one store manager said january and february were already the worst months in my store's history then the 60 minutes came ot and week afterward the worst experience of my life. >> that brings us to where the stock is trading now. it's one thing to short $120, a lot of downside room. but especially with the cash

positi lumber lickaid ators had. are you talking bankruptcy now? >> based on what i'm hearing, the last four quarters since the 60 minutes story aired, they are losing 20 to $30 million a quarter, same store sales are deep in the negative double digit territory. i figure once they started to lap the 60 minutes airing, they might start to show year over year gains. i now believe the business has gone from worse to truly horrific. i'm hearing multiple reports from the field and this is anecdotal but this cancer scare has really crushed the business. so the company did have $7 million of net cash and 67 million on the credit line. as of q4. on the conference call they had drawn down 10 million more on the credit line now in a negative net cash position today. the credit line is half used up. if they continue to lose 20 to 30 million a quarter, this is a business at this point given the

cancer scare out there, is at least a 50/50 bet this company doesn't make it now. >> we reached out to liumber lickaiders for a response and we've yet to hear back. you sound you're in for the duration here? >> i don't have a specific price target. i'm going to continue to monitor the news flow. my core thesis, this well publicized cancer scare will lead to even worse store sales and operating losses. the company with withstand for a few quauters maybe but all of these contingent liabilities, all sorts of legal and regulatory investigations and lawsuits and so forth going on. they have yet to settle any of them related to formaldehyde and with the new report out that there's triple the level of

formaldehyde, those are going to be much more expensive and difficult to settle. so this company has got multiple swords hanging over its head and lastly, i don't think they have the right ceo to fix the business. they pulled the ceo off the board. all of this stuff was going on and now ceo of the company and has absolutely no retail experience. he's been a banker his entire career and has a good reputation as a banker but isn't the guy who i think can turn this around. you would need a miracle at this point. >> that brings up an interesting question. i'm with you until you say they have the wrong ceo. you think some ceo can turn this around if it's such a hopeless situation? if you were ceo, what would you do to turn it around? >> i wouldn't be the right ceo either. i think what you have is look, this is a basic blocking and tackling retail business where you've got a tremendously demoralized work forsz and regional managers and sales people haven't evened a business

in a year, but from my sources and who have been accurate in the past, more ral has gotten even worse under the new ceo. he doesn't know how to manage and motivate a retail team. he implemented a bonus team that uses precrisis sales level that people have to achieve to get bonuses, sales were down 17.2%. nobody has any chance of making bonuses leading to further demoralization and hearing store managers are looking to leave and because they say there's a sinking ship here. >> i wonder, again, to speak to people who may be skeptical, this is too good to be true, to what extent have you been bringing 60 minutes attention to these issues? are you ben fitding from the

fact the stock rose after you got out and you can get back in? >> i got back in at a lower price. it was a less attractive short than the price at which i covered, which is a little over $14 i got back in around $12. it's very, very rare. it's unprecedented in my 17-plus year investment career that -- declared victory and two months later gotten back in at a less attractive price but the facts have changed. there's new cancer scare and impact on the business. >> this is one of your bigger positions now? >> this is my larger short positions, so 4% is a good size short position for me. >> and you think there are about a million people here potentially could be exposed. as we let you go, i wonder if i'm donald trump and hear you telling me this chinese-made laminate is causing cancer, that's a narrative i take on the campaign trail and attention it's going to bring and lawsuits that may come of this won't be

resolved quickly -- >> the last thing i want to do is help donald trump frankly to stir up -- at least some people in your audience, i suppose. but look, this is lumber li liquidators, over a million americans may have been exposed to dangerous levels because this company got duped by its chin suppliers but that sadly happened in a lot of areas, remember the toxic wall board that creates health effects due to mold. you have to be super, super careful when you're sourcing in china because if you don't have air tight compliance, you'll get inferior and dangerous product. >> thank you for joining us. >> whitney, thank for joining us, they are going into much detail about the new short position as lumber lick

liquidators. >> the s&p is down 19 and nasdaq under pressure and transports actually are down 198 points. >> we have a leading trader telling us what he's watching coming up and rick rieder will speak to us exclusively and why one of his mutual funds is cutting exposure to the euro and japanese yen and british pound coming up. those new glasses? they are. do i look smarter? yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker. how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab.

welcome back, less than half hour to go and the dow is down 104 points. cnbc analyst, what's this later pressure coming from? >> you have japanese move out there in the structure just causing a lot of lack of confidence and low yield environment. you have the 10-year, minus 11. what does that mean for the 30-year and all japanese debt? how does that translate here? we've had decent numbers but in

a low rate environment there's not much they can do. we got kind of toppy here and it feels like there's pressure and we're going to back in here at this level. >> the european central bank is scheduled to cut almost -- people are saying mario draghi has to deliver. what if he delivers the kind of thing you're saying is a problem? >> he's -- he's front and center. he's got to do something now. people are counting on him to do something to stimulate. we're sort of stuck. you look at the s&p growth we had recently, it's been unremarkable but here people are blaming it on the dollar and election. domesticically we have to look what happens today and next tuesday and of course be focused on what mr. mario does in the near term. >> and political, too, interesting you mentioned that. gordon charleses.

>> black rock strategic income opportunities fund cut all of its net exposure to the euro, japanese yen and british pound in february. one of the things we want to talk about with our guest exclusively and we welcome about rick rieder, global fixed income at black rock. good to see you again. >> good to see you. >> can you confirm that? >> we move currency around a lot. one of the things about current sips, they trade liquidly and they move around quite a bit. you can use currencies to move risk expressions on. we generally have been long the dollar. but there was a point in time particularly long yen was a good exposure to hedge your other exposures and we had -- talking about negative rates, we had a view that the yen could strengthen and that was one of them where we got out of the long dollar -- >> but now you're going back to

that strong dollar position. >> as we anticipate the fed raising rates and everything else -- >> you know, i would say when you talk about other expressions, i would say the currency whereas we've run a longer time. the currency today is pretty hard to come up with where you see dramatic move. draghi will do a fair amount and europe still runs at a current account surplus. we're net long the dollar but pretty small relative historically. >> something we heard from stanley fisher of the fed yesterday, talking about the first stories of inflation. take a listen. >> since the u.s. economy is now below our 2% inflation target and since unemployment is in the vicinity of full employment rate, it is sometimes argued that the length between unemployment and inflation must mean broken. i don't believe that. rather the link has never been very precise but it exists. and we may well at present be

seeing the first stirrings of an increase in the inflation rate, something which the fed would like to happen. >> it's interesting he said this on a day when the 10-year backed off, 183%. what do you think is the next move there? does it relate to better inflation prospects? >> i think the fed -- there was a lot of discussion a few weeks ago about the fed would cut rates and yellen was grilled about negative rates. this is a fed that is moving towards raising rates and i think fisher was pretty clear about this. we think it's going to be hard and impossible to move in march. i do think they move as you get into june. i think we're going to learn more about how many times they are expected to move, probably three times this year. i think it's probably going to be one or two times they'll be able to move. we were worked up last year at the payroll number, that being said the month before they were very strong and it's 2.2% year on year growth. the fed has a window to move.

as long as the rest of the world is stable, the fed would like to move and i think they will move. >> where's the best opportunity to get the income right now? >> one of the things that's happened over the last, there's a lot with the overnight funding rate and central banks, i don't think the transmission mechanism of negative rates is that profound. the yield market and mortgage rates and securityized assets, emerging markets widened dra mat ially. we think some of the spread assets and emerging markets represents a value. >> safe to get back in the waters. >> it's the risky rates are interesting today. >> thank you, rick. >> rick rieder chief investment officer at blackrock. >> the dow is down 93 and s&p is down 20. it's a 1% decline for the broad index and nasdaq down 1%. >> we're looking to leadership of the financials and take a look at the biggest issues facing the fang stocks right now. >> also ahead, chevron ceo john

watson will join us to discuss whether he thinks crude oil prices have already hit bottom. stay tuned.

stocks lower and the financials are among those

getting hit today. >> art cashin was just saying, a 1.4 billion is a huge number to sell. we'll see again if that has any impact on the markets which are briefly down in triple digits. dominic chu are seeing some companies are sees signs -- >> we took a look at average analyst prices for s&p financial companies and we wanted to focus on parts of the banking sector. according to the average analyst estimate. share citi among the large money center banks, diversified financial institutions, they have the largest average target price. we'll see if that holds up. they take a big hit after the comments from the cfo about their investment bank trading revenues being down a lot moreover the course the past year. you can see those shares, possibly 38% from current levels. the lowest ones among the big banks, just 18% upside for wells fargo. we know analysts are generally

bullish. look at the regional banks, different story as well. citizens financial, the highest target price among regional banks in the s&p 500, up 30%. people's united bank, average price implies 7% downside. among the regional banks two standouts and we'll focus on the pure play larger cap broker dealer investment bank plays, morgan stanley and goldman sachs, 25% upside. only two major competitors in the space publicly traded. financials a different story here depending on where you look among those types of banks. >> all right, dom, thank you very much. ten minutes to go here the imbalance was $1.4 billion to sell. >> one of the bigger ones i've heard. >> we'll get stock picks from a leading dividend fund manager.

>> and mohamed el-erian will be our guest. we'll he'll explain the drivers of volatility coming up. e*trade is all about seizing opportunity. so i'm going to take this opportunity to go off script. so if i wanna go to jersey and check out shotsy tuccerelli's portfolio, what's it to you? or i'm a scottish mason whose assets are made of stone like me heart. papa! you're no son of mine! or perhaps it's time to seize the day. don't just see opportunity, seize it! (applause) seize it! we built our factories here because of a huge natural resource. not the land. the water. or power sources.

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seven minutes left and the dow down 100 points. we want to talk about dividend payers and growers and a lot of questions about oil stocks and whether they are safe or not. would you look there? >> we have a very good back drop for income investing, low economic growth, you've got a yield well over the 10-year. that's a great backdrop. we'd like to concentrate on some of the better balance sheets out there and more positive free cash flow. we've dabbled and energy has gone from a green light to yellow light but there's a lot of free cash flow out there and we're in the midst of dividend cuts. >> it seems you've green lighted lowe's companies and zimer and pfizer. >> lowe's is very u.s. sen trick and u.s. is the consumer is carrying the u.s. economy right now. it's been great, 20% earnings

growth and raised dividend 20%. we were talking about lumber liquidators and wage growth, there's a lot of good tail winds for lowe's. it's not executing quite as well as home depoet but a significant discount. we like it. >> zimmer only a 1% yield though. >> zim mer is a self-help story that we like. pfizer in the health care space, better than 4% year at 13 times earnings is a name we really like with a hefty yield. >> we're going to come back and head to the close. we've got the closing count done in just a moment. >> and lots more coming up at the top of the hour.

e*trade is all about seizing opportunity. and i'd like to... cut. so i'm gonna take this opportunity to direct. thank you, we'll call you. evening, film noir, smoke, atmosphere...

bob... you're a young farmhand and e*trade is your cow. milk it. e*trade is all about seizing opportunity. less than two minutes to go and dow down 110 point. here's what the dow has done today. a sell-off on the open this morning and tried to come back, almost hit green just after 2:00 eastern but it has since moved lower and oil hasn't helped today. price of wti down 4.3% at

$36.25. >> you notice the parallel, we're a slave to oil. market went down and oil moved down to about 11 clrk. when oil moved side ways, the market started drifting up again. 2:00 oil fell apart and the market kind of fell apart. you want to talk about a lousy business, oil drillers, a very tough business to be in. you're hired to drill contract drillers deep sea particularly and you have no idea whether you're going to have any business six months from now. we saw these bill names, transocean, all down almost double digits today, thank you goldman sacks. it was going to be a significant rally. if you look at the rest of the market, outside of energy and material names, the damage was fairly modest overall. only down 100 points on the dow considering what we had here, the package in the commodity space, pretty modest. no big selling volumes so this

is not the middle -- or the early part of february by any means. >> thank you, bob. going out down 110 points on the industrial average and both the new york stock exchange and nasdaq on bell ringing in, celebrating international women's day. stay tuned, a special panel member on the second hour of "closing bell." i'll see you tomorrow, kel. >> thank you, bill. welcome to "closing bell." i'm kelly evans, it's a weak close here today across major averages on wall street. dow giving up 110 points and nasdaq down to 1979. the nasdaq worst performer down 1.25%, 59 points. following a sharp five-day rally. we'll drill down into what is happening in the market today. we have our own mike santoli and mohamed el erian and brian kelly

joins us as well. we want to begin with crude oil. if we can show interday what's happening here. people are getting so excited about a bottom being in the incredible 45% rally off the lows now but you can see there just really sliding all day and down almost 4.5% at the moment. >> you actually had a lot of non-oil players backing this idea that you're in rally mode. you could have both things be true, it could be a bottom in oil and the market could be well setup for a big pullback. you mention the five-day rally in stocks, it's been a 16-day 6% rally, a pull back in equities, all things considered. >> no relation to mohamed here, but etf that's really gotten kicked today. one interesting thing that happened, u.s. bankruptcy judge chapman in man at an did rule

that they could break the contracts. that closed down 6.5%. if you did break these contracts, mohamed, that might be a signal to other distressed players that they could get relief in bankruptcy court individually but more of a problem for sector at large. >> it's brad news for creditors, either they get contracts change on them or weaker negotiating position and they have to voluntarily change terms. this is bad news for creditors. more generally, all it took is a little bad news out of china to hit oil and again we've seen 3 to 5 to 7% moves and this is on a daily basis. >> i almost want to call it the bk on and off kind of trades. when the world is acting as freaked out as you sort of would diagnose it and other days where everything looks fine. what does it come down to here? >> the reaction of the last two

or three weeks has been all a switch in sentiment. things got so over extended on the negative side and everybody was done selling. i guess sort of better news, we had a pmi interpreted as a little better. but in reality nothing has changed since the beginning of the year and mid-february when you have this reversal. you have -- exports were terrible overnight in china and that's really the catalyst that brought everything down and it looks like it's only one day but maybe sentiment switched back negative again. >> but china is not a short-term fix, he can't respond to by moving rates around or anybody here even. they have their economic -- legislative gathering right now and they already raised or lower the growth target. we have prominent chinese coming out and saying you can't look to us for -- we need to build sustainable growth.

does any of that sound like a fast fix? >> none of it is a fast fix. what we've seen in the market, a period of intense volatility and followed by calm and then in volatility. the question for investors, do they exploit the period of calm. why coming back for three reasons, global growth continues to weaken and central banks are not as effective and three, there is simply isn't enough patient capital in the system anymore. we will have periods of calm but be careful volatility follows and this is where investors have to be more tactical than in the past. >> it brings up the question, if you're mike again, as people wonder what is the u.s. going to do with this -- >> it absolutely does. obviously oil prices rallying good news for credit and therefore good news for stocks. at what level does it become less good news because it stokes the inflation story and brings perception of fed aggressiveness higher. i do think it's a issue of

global liquidity, if you added up the balance sheets, china, foreign exchange reserves, it's been on the wayne. it's not as if you have the effectiveness to rely upon. >> do you worry if it slowed below 3 trillion, it slowed a little bit. what kind of signal, what the rest of the world does with that? >> listen, if they fall below 3 trillion, that is the psychological level. and we won't know it until after, see it happen in the currency market but we won't get the data until after it happens. here's why the chinese expert sparked such a concern. what's the solution to the chinese export problem? they've devalued their currency. it will likely mean a devalued yen and euro and stronger dollar. the stronger dollar has been the global wrecking ball. it's part of the reason why oil dropped so much and the reason why the global economy is slowing. that's at the center of it all.

that's why china is important to watch. it's not a short-term fix and won't be a short term fix. this is a long-term process. >> earnings estimates have been kind of a problem in the meantime and it's not just there's different ways you can see it's this or that with the s&p, we know for the economy, the profits probably paint a couple of years ago. how much time is their natural left for the expansion? >> corporate profits have flat rned out at stalled at best and maybe in certain sectors they've troughed right now. and market never got cheap base on those earnings. that's why you've had the ceiling in place and it tells the story of main street over wall street. kind of the individual household sector doing better but the corporate sector and the stuff that investors care about, they had their fun already a few years back. >> one of the things that happened this afternoon, news of whitney tilson is shorting

lumber liquidators stock. it peaked about $120 a share less than two years ago now trading at about the $12 range. in february the cdc first came out with a report that seemed to case less concern about the potential cancer causing agents l l laminature flooring and then saying it was three times as large. we had whitney ti lixtson on to ask him to explain what further damage he sees in the stocks. take say listen. >> when you associate a business with the world formaldehyde, that's bad and with cancer, that's devastating. in the last two weeks, according to my most reliable source, the business has gone off a cliff. >> brian kelly, what's reaction to that? >> i would think if you have those words, it's very bad for

the company. i know still in my head when i see a lumber liquidators ad, the first thing i think of is a problem, formaldehyde something like that. it's not a stocky would want to buy. is it a good short? i guess, $12 stock at this point in time. i generally would rather be the person shorting at 100 and have 100 points no the downside rather than 12. the risk/reward is xuled for the short position. >> to me when you have a stock down as much as it is, you have to have a plausible possibility that it's something close to zero and it could be bankrupt. you're handicapping potential liabilities and the fundamental business waining because people are skittish about buying the stuff. both things have to work together for the short to be a successful one. >> let's pivot to the ipo market which has been ice cold so far this year but pisani saying things could change. >> the two most important

factors are the state of the makt right now and how earlier ipos are performing. since the february 11th bottom, the s&p 500 is up 9%. but the ipo, etf is up 17%. these are two good signs, if this comes up, it's likely to reopen in the next couple of weeks. what kind of companies do investor want right now? stable companies that have low debt levels and most importantly of all, they've got to be profitable. that's number one. i asked renaissance capital who might be likely candidates, here's a few on the list. soul cycle, 150 million in sales, growing 50% a year and highly profitable. hits all the points. second tactile system, at home compression therapy devices, it's small but growing 30% a year. and another one, equities and bats global markets, they are profitable and growing fast and got competitors like nasdaq and

ice and they are performing welwell acacia, growing revenues, 80% a year. what about the unicorns, those with the market capitalization over a billion? there's over 100 of them out there right now. most of them haven't even filed for an ipo. there's been very intense data here. 1.8 billion in sales and 20 billion private ee val yags but it's still not clear that they do government contracts really wants to go public but let's watch and give it another week. market holds up and you'll see more ipos. >> as always, thank you. >> are you a fan of soul cycle? >> i'm not but bob has said this, that the minute liquidity conditions improve, there is huge scope for issuance. lots of people standing in line. and buyers have to rel lies,

it's not just a function of the company, also making a call on the market liquidity. >> that's true. >> if the market liquidity goes, these prices move a great deal. >> you would hope if you're talking about ipo, you can wait it out at least a couple of years, right in the. >> look at the crop of ipos in the last couple of years, you had one or two quarters to get it rides, otherwise the investors leave and you have a pretty poor track record. a window that's opening a crack and a very specific company can get through it. it's still a sober market in terms of supply and nand. >> i do like he -- would you be putting your capital to work? >> sold to you. no way. not on any of those. what do we need in this market? more supply of stocks? we don't need more supply of stocks. none of those companies would interest me whatsoever. >> we need people starting businesses and -- >> exactly. >> people selling businesses. >> these are not starting businesses, they are selling the business.

>> i know, all right. thank you, brian, for joining us. fast money next hour, talking to one of the wisest on wall street, joe grano about why he sees the s&p 500 taking a major dive by year end. coming up, an exclusive interview with chevron's chairman and ceo, we'll get his outlook for oil prices and whether the company can increase its dividend with so much pressure on energy space. which presidential candidates should american businesses be rooting for? ceo of primerica will join us in a minute.

we have an earnings report. >> blue buffalo, revenue topping expectations at 265.2 million versus the analyst estimate of 259.8 million. this company went public in july of 2015 and priced at $20. since then the stock has been trading below the price but today above 20, up about 10% after hours. back to you.

>> seema, how can we not be bullish, pet food. >> there's one of those ipos that didn't do it out of the gate but does seem to have the secular trend. >> they make -- kittens are very sensitive in their diets which i found out the hard way. if you switch them from salmon to like a chicken, they might -- there's -- buddy had a little -- >> he looks satisfied with whatever you're feeding him there. >> it might have been the yogurt on that day. they lose a taste for it. you're a cat household. >> we have an agreement, we keep our distance but those are our cats. i cannot keep up with the fickle taste and fact they would eat whatever road kill is in the wild yet they don't like a particular can you put in front of them. >> so must have -- mohamed, that's bosa. >> you're a dog guy. >> i don't understand who have cats. >> how much money do you spend on the dog? >> quite a bit.

>> buffalo up strongly after hours. the economy has been showing signs of strength. why is business optimism on the decline? kate rogers it taking a look for us. >> optimism took a dive last month hitting a two-year low according to the national federation of independent businesses monthly outlook. optimism fell 92.9, 1 point from january's read and below the average of 98. out of ten index components, sill fell and four were flat. growth in real sales volumes and trends have fallen and expect sayings remain negative. another point of note, owners are continuing to report higher wages but aren't raising prices, more firms reduce than raise, which means small companies are finding ways to ab sord cost without finding customers. the standout point was the fact this political climate is the

second most frequently cited reason for their reluck tans to expand. this is the first time we've seen a big mention of politics in the election cycle. back over to you. >> thank you. >> speaking of politics, mitt romney tweeting out an anti-trump ad today. john harwood has details. >> reporter: you remember when he noted the fro fant by a former mexican president to say mexico wasn't going to pay for wall he proposed. if i said that i would get hammered well he's getting hammered from a super pac associated with mitt romney. it goes over a litany of cases where donald trump used profanity. take a listen. >> i went to an ivy league school, very highly educated and know words and have the best words. >> [ bleep ] gets a mom nation, their going to sue his [ bleep ]. she said he's a [ bleep ]. we'll beat the [ bleep ] out of

them. ripping the [ bleep ] out of the sea. >> what are we doing? you're not going to raise that [ bleep ] price? you can tell them go [ bleep ] themselves. what now, donald trump has responded with a couple of tweets. he said mitt romney was a failed candidate, why is a a spokesman against me and few minutes before on air. when you look at that ad, it's being paid for by politicians and bosses and it's a media fraud. this is running in the florida panhandle where there are conservative christians. the florida primary on march 15th, winner take all and ohio primary, winner take all. if donald trum ip wins the primaries, the establishment republicans know he's going to get the nomination. they are trying to stop him with help from john kasich and marco rubio.

we'll see if they can do it. >> we'll see how that ad contributes one way or the other. today primaries in michigan and mississippi could cement donald trump's status as front-runner. author of real leadership, nine practices for living and leading with purpose. is trump one of your vig nets? >> no donald trump. >> does he qualify as a real leader? >> certainly he's successful but there's a big difference between being successful and being a leader. in my book and what i believe great leader, whether it's business or politics are unifiers not dividers. they build people up and pull them together. you've been talking about oil prices, you would have a better chance picking oil prices than picking the winner out of the food fight going on right now. it's very easy to yell and call names but it's difficult to pull people together. >> it's the kind of point that

michael bloomberg made in his editorial as to why he will not -- he didn't think he could do it in terms of getting the delaware gat count but thought they should be the party of the lincoln and unifiers. >> we live in such an unusual season. it's almost a civil war within the republican party. and markets are having enormous difficulties getting their arms around this. it could go any direction. once it's clear we'll have a market reaction but there's nothing yet because there's so much potential outcomes. >> last hour we heard talks about markets waiting on the outcome of super tuesday -- i don't know what to call this, super tuesday until it's clear which direction. >> i think that's the hope that the market wants this to sort of settle out a little bit and get clarity, in terms of being able to handy cap how it's going to go. are we going to honor the republican candidate who gets the most delegates? i don't have a lot of hope

before july we have a great sense of that. >> who do you think quite simply would be the best candidate for business? >> it depends orn the debates you've watched but right now the last debate i thought john kasich was the adult in the room. and you know, many of these -- i remember the fifth grade the teachers all left the cafeteria for a meeting and we had a giant food fight. that's what it looks like. you hear so many of them claiming i'm like reagan. with nancy reagan passing away i've been seeing a lot of video of the president. if you watched reagan, he was always smiling, he lifted you up. he made you feel better about being an american. and so -- i'll disagree with one thing, on the democratic side, we're so divided. we're so divided and now everyone is focusing on what divide s us, not what unites us. >> who do you think month haham?

>> we haven't had enough substance in debates and enough of an adult conversation as yet and it's difficult to make that call right now. >> kelly, if i can say this, 19 trillion in debt and climbing, 19 trillion in debt and no one is even talking about it. they are talking about who has the biggest hands. and so you know, we have real elephants in the room that we've got to deal with and leaders deal with the problem that's in front of them. and that's not what we're doing. >> thank you for joining us. >> thank you for having me here. >> the book is called real leadersh leadership. >> how a scandal in malaysia is affecting goldman sachs and trying to prevend its dividend, chairman and ceo john watson tells us exclusively about these cuts. stay tuned. sales event is on.

with extraordinary offers on the stylish, all-new rx... and the dynamic nx. ♪ this is the pursuit of perfection. the department of justice has subpoenaeded the head of the southeast asian operations. part of the investigation into money laundering, tim liessner left after violating rules. let's bring in the wall street journal's columnist ken brown who has been closely following this story. it was the journal who first broke that the malaysian prime minister had $600 million in his account and nobody knew where it came from.

where do we stand now? why should everybody care so much about this scandal? >> it's a huge amount of money and swiss investigators, this is being investigated all over the world say there was $4 billion misappropriated from the government vest fund. one mdv, they borrowed it and most of the opinion was spent on things that haven't made a return and now struggling to get out. >> it reminds me when we had ken on the show and one thing that happens when the tide goes out in this case for emerging markets, the last couple of years you think about what's happening in brazil, obviously in malaysia too. will they ever recover these funds? >> it's not clear where some of this money is and what it was spent on. it's hard to believe they are going to recover the funds. they are selling off assets they bought and hoping there's enough to make up the difference. >> one of the implications for other business that united states companies might be doing down in malaysia or the region. >> malaysia is an interesting country and it's been growing.

people like to invest, it's a busy hopping city but it's a problem. there's corruption there and corruption in the region. so companies get tripped up. the foreign practices act has been a real problem for companies in asia and then the situation with the goldman case, mr. liessner was supposedly violating a firm policy writing a letter in favor of someone who was amalaysian to open a bank account. >> that's a pretty low standard in some ways if what we're talking about, i love your thoughts as well, what is the bar for companies doing business in one of these kind of emerging developing potentially nefarious areas? >> the key issue is the bar moves and that's what makes it so hard. picking up on what kelly said it's not just malaysia, it's brazil. are we going to see a more general phenomenon as countries have more difficulties you get this reaction and de facto

regulation goes up and slows growth even more because -- are we on the verge of something like this? >> it's hard to say. you can see goldman sachs' reaction, they have been combing through everything he did in the business in southeast asia. they pulled out of a deal in indonesia, another country, to sell a gold mine and pulled out of it because a person involved in the deal made them nervous. they felt there was a reputational issue. that deal may or may not get done but that slows things down. this big global bank steps back because they are nervous. >> what do we watch for now? the former prime minister help make the country as prosperous as it is today, 91 years old. some of his formal rivals are all banding together trying to get this guy out of power, correct? >> the current prime minister has held power and he's a powerful and smart guy. there's a big coalition building up to get him out. there's a standoff at this point and nothing has broken.

the 91-year-old former prime minister is also a powerful guy. it's not clear how it's going to go. the interesting thing, these investigations are global and they are picking up steam and this u.s. investigation where the subpoena came from is very interesting. that may be the thing that tips things over. >> thank you for joining us. ken brown of the wall street journal. time for a cnbc news update. let's send it over to sue herrera. >> an american tourist was stabbed to death and at least nine other people wounded by a palestinian armed with a knife on a popular boardwalk in tel aviv. a police officer shot him and he died and multiple ins debts in jerusalem as vice president biden arrived in israel for a two-day visit. blocking a major road in cairo to protest uber. leading to a decline in the availability of cars on the uber app. some carbs like those found

in white bread and bagels may increase the rate of lung cancer. raising glucose quickly. kelvin johnson calling it quit after nine seasons in the nfl, nicknamed the mega tron, the most prolific receiver in detroit history and good bet to make the hall of fame. see you tomorrow. >> thank you so much. up next, an exclusive interview with chevron chairman and ceo john watson. is the energy giant's dividend safe if oil and nat gas prices keep falling. facebook making a play for streaming nfl games, would that could mean for social media giant's future when we come back. man 1: [ gasps ]

man 1: he just got fired. man 2: why? man 1: network breach. man 2: since when do they fire ceos for computer problems? man 1: they got in through a vendor. man 1: do you know how many vendors have access to our systems? man 2: no. man 1: hundreds, if you don't count the freelancers. man 2: should i be worried? man 1: you are the ceo. it's not just security. it's defense. bae systems.

welcome back. into the close there was a big sell imbalance but oil moving lower again and the s&p down 22 for more than 1% drop. nasdaq was down 59 and there is crude on the screen, down 4%. chevron announcing spending cuts to preserve its dividend. what happens if oil prices continue to drop?

joining us now in an exclusive interview with chevron ceo john watson. welcome back to post nine. >> good to be back. >> raised your dividend 28 years in a row. will you continue to do so? >> that's our objective. we pay the dividend continuously since 1926, 28 years in a row. we do invest continuously in the business and through the price cycle we're seeing. we got low prices today but we have a number of projects coming on screen which will add revenue to bottom line. as we finish these products under construction. we'll be able to take our spend down. between those two things we'll stay well balanced in our cash flow and look forward to maintaining that record of dividend increase. >> want to talk about a big project out of australia, it's on the nat gas side in just a moment. but you announced a big decrease in your capital expenditure plans. is that because you need funds to make sure investors are getting the dividend they are clammering for here? the capital spending is a

projects we started years ago. this year we talked about previously, $25 billion, but next year and year after spending would move into the 17 to $22 billion per year range. spending will come down but interesting thing we have, we'll be able to maintain production. grow production to this period and then continue our investments in shorter cycle activities such as the shale. >> that's one concern people have, if you take down the investment too much, will you be able to produce as much in the years ahead? why not take the capital spending to zero? >> toward to maintain production over time you need to be able to invest. what distinguishes chevron from our competitors in a lot of small players in this country, as we take spending down our production will be growing because we're completing projects under construction. >> in australia you have a big natural gas project, gorgon.

this is an area where prices are in decline and jackie was just in the u.s. facility where we're now going to be exporting liq d liquidfied natural gas. more supply coming in where prices are depressed. what's at stake for you guys if nat gas prices stay this low? >> prices are under pressure both oil and gas. natural gas prices are very low. lng prices on spot market are low. but we've sold 75% of our gas on two big projects in australia to oil linked pricing going forward. as we see strengthening in the oil market, we think there will be growing production into a rising market. in fact, if you look at the cost of the gorgon project, the headline cost is $54 billion, per barrel, we think it will be profitable at about $40 blent we're seeing today. >> what do you say to people who say the cost is way more than we

were told. how do we know what you're saying today will bear out? the project costs are in the past and we're concluding that spend. it's just arithmetic to look at the reserves and divide by the costs incurred to know what depreciation will be and operating costs for lng are well known to be quite low, around the $5 a barrel range. we'll be able to generate 'normous cash flow as we bring on three trains of lng production and two trains of wheatstone. >> i assume you'll be selling that to the japanese, chinese? can you displace russians from the european nat gas market? >> in general, it's been so forward into the japanese and korean utility market primarily. we'll be over 80% sold over the next as we ramp up projects. we feel good where we sold that gas and feel good about the status of the projects now.

>> let's go back to oil for just a moment. we're getting conflicting reports out of the middle east and opec where they agree to production freezes and declines and many ways they keep pointing the finger back at the u.s. and saying it's up to you guys. you're the swing producer now and dictating prices. is that true? the most leverage -- people have the most leverage on the oil price today are u.s. producers, yourself included? >> we're starting to see the market forces come to bear on the oil markets in this country. we expect oil production to decline 100,000 barrels a day per month. month over month. so that million barrels a day of surplus production is starting to dissipate. that's why you've seen strengthening in the oil markets over the last couple of weeks. markets are forward looking and while oil is being produced in surplus to what demand is, we're starting to see the change. rig counts down 75% and international rig counts are declining and the u.s. will be

the first to be affected but i think you'll start to see production decline in many other locations around the world. >> do you expect we're going to peak here now at total global production and u.s. production and it's going to continue to decline going forward? >> well, u.s. production has declined 500,000 barrels a day sits its peak. you could see u.s. oil production continuing to decline. that doesn't mean there is an opportunity to continue to invest going forward. right now with the kinds of prices we're seeing today, not much projects are economic. a lot of companies are withdrawing capital from the market but cutting short cycle spend in many of the shale plays in the u.s. and we'll see markets coming into better balance. >> i know you have a benefit of some of your leases, you don't have to be drilling for them to be active, that's not always true for other people. want to ask you about another thing that hangs on the oil price. merger and acquisition activity.

they are looking to you and exxon to sop up the assets. at what price level for what period of time do you feel comfortable enough to be inquisitive? >> we're in the business of acquiring leases and acquiring discovered oil properties and companies over a long period of time. we're in the enviable position of not having to do an acquisition. our production will grow even at lower levels of capital spend. if there are opportunities we'll take a look at them but we tends to be value driven in what we go through. we want to acquire resource at the competitive cost and something that would fit in our portfolio. we don't have to do that. >> you think the oil -- you think the bottom in oil prices is in? >> i think we've seen the bottom but there are forces at work. you could see decisions made by opec nations or others that would add to supply at a time we don't need it but fundamentals are moving in our favor with the pressure on post governments in their spending around the world. >> no cut to the dividend? >> we've increased the i have

dend 28 years in a row and it's my intention to keep growing it. >> thank you for joining us. >> thank you very much. >> john watson, ceo of chevron. the bidding for nfl streaming rights heating up. amazon and verizon want a piece and facebook is trying to get into the game when we come right back. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade.

we have a news alert on

valeant. >> reportedly in talks to add new members to its board, considering adding pershing square executive to its board. we're not sure of the name of the person. this report says other candidates include a pharmaceutical company bought by by allergan. they already have two members from another activist hedge fund. it will be interesting to see if someone from pershing square gets added. >> i'm still chuckling thinking about what gordon bethune had to say about the efficacy of munoz aegs tenure. >> obviously kind of expanding the ranks but pershing square owns 10% of the company. you feel like they are hunkering down. who are friends and allies and

let's figure it out from here. >> a two-year television deal with cbs and nbc for rights for thursday night football games but the nfl has said it's looking for a digital partner for streaming rights and there are reports gentleman yahoo! and verizon are interested and now facebook. he recently wrote about the possibility -- possible players in the fight for these rights. peter thank you for joining us. what would facebook streaming the nfl look like? >> we don't know. what don't know what any of these things will look like. my hunch is they'll make it available for free because there's no way to pay for stuff on facebook and the nfl values having as much distribution as possible. having facebook in the market is a big deal, even them announcing we're going to pay for content is a big deal. >> mohamed, you're a jets guy. what happens for the thursday

nights games? >> there was a migration to platforms and facebook is starting to capture more and more of the market share. i would love it, would mean i could see it traveling much easier than otherwise. >> that's interesting. >> i wonder what it means, we're talking about incremental rights on top of the existing network rights that would be sold by the nfl but it would mean that the nfl has perhaps decided not to maintain the streaming rights and do it on its own website? >> yeah, no, they don't have any interest in that. they are happy to bring in someone new from the outside to add more cash to their coffers. they are looking ahead towards several years when the tv rights will expire and maybe even actually have a digital player move in and take rights away or compete with cbs and nbc and abc. >> also peter -- not finally, but i wonder about the integrity of the actual stream. what does the yahoo! experience

tell us about the experience of watching a game that way? >> that work -- that i canya ho worked pretty well. and no one expects you'll see tens and millions of people watching online. most will prefer to watch it on tv where they'll see it. the think the nfl is thinking, this is the incremental audience of a couple million people, the internet can support that and we'll try it out. >> the rights could get more lucrative as morbe bidders ente the fray. >> i love the story, it's good. >> speaking out on the markets and fed, we'll get you details next. >> jack dorsey will break down results exclusively on the "closing bell." don't miss it.

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welcome back. we do have a news alert on jeff gundla gundlach. >> reporter: it's been reported he hasn't altered his bearish outlook singling out risk-year assets by saying the attitude towards the investors seems similar to the attitude towards ted cruz and the people that think both are stronger than they are and that has negative implications for stocks.

here's what he had to say. >> i know there's a lot of belief right now in risk markets. i think risk markets have a very poor risk-reward setup. if we use the stock market as a proxy, it seems to me that the s&p 500 maybe has 2% of upside and probably 20% of downside for a 10-1 risk-reward ratio. >> that being said gundlach saying he doesn't think there's a risk of recession in the u.s. so he is monitoring it. he also warnings that china appears not to be growing towards forecast and that in turn will hurt global growth and he believes it's very risky for the fed to raise rates in march and he expressed hopes that the fed doesn't go negative on interest rates saying it would be hugely harmful to the financial system specifically, of course, the banking system here in the us. kelly, the presentation is ongoing. more headlines coming up on "fast." back to you. >> our mary thompson. what do you think, mohammed? interesting as well that he's coming out there and saying negative rates will do more harm than good? >> i agree with him. already they are doing a lot of

harm. we don't have a system that can be negative rates and with negative rates you're starting to see distress on the banking system and the insurance companies. i think what's interesting is we're going to see a lot more central bank divergence. on thursday the ecb will press even harder on the accelerator and the fed while it won't raise rates next week it will guide towards the possibilities of a rate hike in june and it's interesting to see how markets reacted to the greatest devergens in central bank policy. >> weighed in on the s&p 500. double line has repeatedly tried to have equity funds and only in the last couple of weeks has shut down another one of its stock-picking funds but still he's saying he sees 2% upside for the index and 20% downside. >> he's going to implement his world view he'll probably consider the ten-year treasury a pretty good barometer of whether his thesis plays out. probably thinks when it got down to 1.5% that wasn't as overdone as the rest of the world seemed to think but you're right.

in terms actually tactically playing the stock market his firm hasn't had great success though i do think they have equities in some of the other funds. >> quite clearly he's emerging as the new bond king so people will pay attention to all of his prognostications in terms of his macro picture. >> we'll hear from the ceo of scopely next.

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it already has one of the hottest mobile games on the market, and now scopely is scoring another big gaming deal. julia boorstin has more. hi, julia. >> hi, kelly. scopely announcing it's partnering with wwe, the mobile game network working with wwe and its new game called wwe champions. scopely telling cnbc that it is profitable with the $200 million revenue run rate, a 600% growth over the past ten months. now scopely's august release drew $4 million downloads in the first week and it's not just a one-hit wonder. it was scopely's sixth consecutive number one game launch. they project its yahtzee with buddies game which launched in april will bring in $650 million in revenue over five years and has eight more games in development. >> we believe the future of

entertainment will be much more driven by interactive experiences in software rather than linear experiences and the mobile gaming market will be a $45 billion market by 2020 and many of the world's biggest most established brands don't have really compelling interactive mobile experiences. >> and driver says partnering with brands and working with different studios helps minimize its risk and also diversify its different revenue streams. this is in contrast to hit driven zynga whose stock has fallen off the cliff over the past couple of years. there's a range of company from concole game makers and even the asian internet giants. kelly, back over to you. >> julia, thanks you. reminds me again of the discussion we were having about facebook and stream and where this is all going. want to remind everybody where we finish in the market today and the discussion in the oil market that we're having to and the move lower and what chevron ceo john watson just told us, you know, morals the bott

tomorrow is in. >> the bottom can be in and there's still a lot of room between where were in the bottom and do we have to kind of knock around a little bit and digest this rally and maybe threaten $30 a barrel just to see if it holds. maybe so. i mean, that's the way asset markets tent to bottom. >> mohammed, what are you watching? >> thursday's ecb meeting, not because the question is whether they will do more. they will do more. the question is how close will they get to the point where the bank of japan is which is when a central bank becomes not just ineffective but counterproductive. people were shocked when the bank of japan went negative on policy rates and got the opposite of what it wanted. >> yes. >> instead of getting a currency depreciation they got an appreciation so the ecb will do more but monitor very carefully how close are they getting to the point where they become ineffective because we cannot afford to another importance in the central bank bomb effective. >> will bora be there? >> thursday. >> by the way, need to do a little shout-out to nick and

norror, bill griffith's puppies. if you haven't seen them they are totally adorable, guys. pet plays, there they are. >> and they seem very attentive. >> they are actually watching the "closing bell" in that screen shot. thanks so much for joining us. that does it nours on "closing bell." "fast money" begins right now. very cute dogs. "fast money" does start right now. live from the nasdaq market soit overlooking new york city's times square, i'm melissa lee. our traders on the desk are pete najarian, brian kelly, steven sieberg and brian grasser. lumber liquidators getting taken to the wood shed and a shocking call on the market. why one well-known insider sees a 10% pullback in the s&p 500 right arounded corner and where he's putting his money to work and later is one of the hottest trades in 2016 about to come to a screeching halt. what it is and why it cou