this according to ryan hum. 107 stocks on the nasdaq 100. >> how is that possible? >> two classes of various sessions. >> let's look at the eagle. the eagle flies. flies like a beagle. >> great shot of the eggs. excellent. >> double egg shot. more eagle shots. hello. welcome to "the closing bell," vrn. i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth. don't adjust your tv screens. the dow has stalled despite moves higher. the major averages are now on track for their first decline in three sessions with materials and real estate dragging down

this market right now. i had forgotten it was possible to have a triple digit decline for the dow. >> this is a big move. the dow down nearly 100 points right now as we enter the final hour of the session. plus, run-up of financials have been losing steam. analysts tell us whether that sector has come too far too fast. the president-elect makes a major announcement a short time from now. we will give you instant analysis of that announcement when it happens. bob, as we continue to move lower, what's happened? >> i'll make it simple for you. we have two problems for the markets. number one, for the past week and a half, there has been no leadership. that problem is continuing. but now we have a new problem. there are no bids. nobody is aggressively trying to buy stocks going into the close of the year. let me address the no leadership. remember when those industrials were roaring in november? here's boeing down just a little bit. boeing was $158 a couple days

ago, now it's $156 and change. not a lot but a drift downward. merck was up a few the other day, now it's drifting down slowly. procter & gamble, about $85, somewhere around there a few days ago, now it's down in the low 84 range. big moves to the down side but noticeable. golden sachs, went to 242. it's still about 240, 241, but it's not adding to the leadership. maybe we should stop analyzing this too much. 1 19,847, that was the dow last tuesday. light volume and very, very small moves off the top.

back to you. >> thank you. we'll see you at the close, bob. let's get to our "closing bell" exchange right now. she's at post 9 sitting next to keith bliss of katonin company and we hear from chicago as well. keith, we highlight the fact we're expecting some selling pressure thursday and friday as pension funds rebalance their portfolio. so it felt like today was the last chance for the dow to hit 20,000. do you agree with that? >> potentially. i still think we'll hit 20,000. probably not this week. my call was we were going to do it last week given the seasonality effect, but you're right t looks like we're drifting here. when you have a market that's trading near the top from an aggregate basis. when you have a market that's trading near the tops, and you have a market like we have today, and we had just bad enough news today. the pending home sales was below

expectations. secretary kerry, of course, is firing some shots at israel, netanyahu is firing back, donald trump is weighing in on this. you've also got some real weakness in that financial sector because it has been overbought for so long. the financials in the dows are weaker. take a look at the russell 2000. that one is down over 100%. that tells you what's going on there. but the market is weak across the board. not a single sector is in the green as i'm talking right now, so there is no rotation going on, there's basically people trimming positions right now. you're right, they could have gotten a head start before the end of the year. >> gabrielle, as people watched from the sidelines when trump was elected, is this a chance to get involved? >> it could be. for us the story was positive even before the u.s. election. we had already seen a big improvement in u.s. and global growth, so we expect 2017 to be another positive year. speaking to our clients, we still find that many of them are

underinvested in terms of equities and still very heavily vested and still very heavily interest rate fixed income, so there is still moves that need to take place over the next weeks and months. >> and some of the yields, i forgot you could buy bonds here. what's going on here? >> i know. it was like all of a sudden a bell went off right around the time of the auction. the auction went terrific. we are dipping below 2.5% and they haven't done that since the day below the fed tightening. the dip below a five-year hasn't happened since the fed's tightening. it's not only the act, it's also the speculators that get in front of that, and i think they've been biding their time here. i totally agree with you, bill, just the sense of how the market is traded the last several hours, it certainly looks as

though a little buying here will match the he can with equitieeq. today it skyrocketed up. it's at 103.29. it looks like it may miss that. i think we'll be coasting in a counter-trend way for the rest of the year. >> keith, i was just going to ask you about the dollar, and also about oil and gold, all of which are kind of related. what's the most important thing the market is keying off here? >> i think rick is right, when you look at the dollar, but the dollar and the bond trade for us is a little bit of a fear trade. those two words, geopolitical issues, have kind of crept back into everybody's thinking today. it will certainly have a play on commodities. as it relates to oil, what we can see, again, we'll get the bigger rig count on friday. i think we'll see the permanent base to keep ramping up production.

when you take a look at the dallas fed manufacturing survey yesterday, that was up substantially, and that tells you those companies are coming back on line. that's going to keep a real lid on oil prices. i don't see it going above 60 any time soon. >> i think it was ftn pointing out that people are long on crude oil here, and maybe that telds y tells you the positioning is too much on one side, even though the oil prices haven't moved up that much lately, but everyone seems to be bullish here. >> the energy sector has been the best performing sector in 2016, probably because they were the most beaten up sector in 2015. i'm not sure i would be shorting oil substantially here, but as far as getting in really heavy duty positions and expecting a big increase, i just don't see that any time soon. >> the story, as you were saying, is more natural gas the last couple of days. >> natural gas at a two-year high. it's been skyrocketing the last few days here. before we go, gabriella, rick

mentioned the strong high here. is it because of the dollar and favorable overseas? >> not necessarily. when we say we favor investing internationally, that's specifically out of market. we just don't think u.s. policy will change enough next year to become a negative for this improvement in growth we've started seeing this year, and we also don't think the dollar will continue rallying enough, also to derail this opportunity in emerging markets. so that's one of the big stories for us for the next couple years is stilley mer emerging markets. >> they make me so nervous. andy kessler in the journal, he's got a whole op-ed basically calling the whole world a distressed asset that will be able to be bought the next few years. >> when she says op-ed, she's

talking about an actual paper. throwback here. >> just an old-fashioned girl. >> that's her. thank you, folks. happy new year. president-elect trump, we mentioned, is going to make a major announcement on the economy in short order. john harwood joins us now for a preview. what are we expecting, john? >> what we know is that our president-elect is a matter promoter and he put those skills to good use here during the slow holiday week. press secretary sean spicer announced on a conference call that he has daily with reporters that the president-elect would be making a major economic development announcement later in the afternoon, as soon as 4:00. don't know what that is. he met with david reubenstein. could it be something from that meeting? stocks and consumer confidence have gone way up since the election. is it a firm like carrier saying

it's going to move fewer jobs out of the united states than expected? is it a new investment in the united states as he discussed with the softbank chief executive a few weeks ago at trump tower? we just don't know. we just know that he's got us all waiting for it, and he'll let us know within an hour or two. >> all right, john. thanks. we'll check back with you next hour when that announcement comes out. let's talk more about it, though. american enterprise institute economic policy institute and cnbc contributor joining us right now. what do you think? >> it was interesting you mentioned the carlisle group. there was some talk about moving the private sector in to do his big infrastructure plan. i think the market would like to hear more details about that. but to be honest, listen, there are ceos all across america praying right now, do not mention my company in this announcement. no good will come from having your company mentioned. >> if you're featured, though.

if he chooses to say, hey, these companies are going to be hiring and they're going to be involved with me whether it's an infrastructure or something else, that might not be a bad place to be. >> if there's one thing i think they would like more detail about, it's about the trade policy stuff. there are rumors coming out we'll have a 20% across the board tariff. peter navarro head of a trade concept. the fact he's talking about workers makes me think there might be an infrastructure or trade component. the big fear is that we're going to be in some sort of trade war, so anything that would dampen down those fears would preebl be good. >> a this point, though, we're still in a transition. we still vl a month to go before the inauguration.

>> i think details -- it could be a huge tax reform. is it going to be tax credits, mostly private sector money or the trail deally. we started to know what the best case scenario. now i think invest would like to hear a few more details so they don't have to worry about the worst-case scenario. >> happy new year if i don't see you. >> happy new year there as well. we've got about 40 minutes to go. we're trying to look at 19,900. all the other averages are doing worse. the s&p down 3/4 of a percent. >> we're going to talk about the risks of those gains cooling off in the new year. that's coming up next. how about chip maker and

video coming off a 10-year winning streak? it's now one of the worst performers in

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. if you're just joining us, look at that. the market can go down and it has. the dow industrial down 105. we're down 92 right now. the s&p is down 16 points, the nasdaq down 42, and the russell is the big lagger today, down 1.25% at this hour. >> bank of america, jp morgan, citi and wells fargo some hefty moves. but has it all been too far too fast? >> what about the bank stocks? are they going to cool off at some point? we all have figured out, marty, that if the yield curve is going to expand, yields are going up,

that's great for banks, just buy the banks. it's that simple, or is it? what do you think? >> well, the yield curve is really just kind of a proxy for what expectations are for interest rates. rising interest rates like we got in december is positive for the banks. it has a 3 to 4% of earnings for every hike we get in the fed fund rate. so that's really what the old curve is b. it's about getting the short term rates in the fed to follow what the market expects. we need two to three more next year to really get to where we can kind of catch up and justify a little more up side next year. >> tony, how much is the earning power of these banks grown and changed since the election? >> it's interesting you ask that -- >> this is for tony. go ahead, tony. >> sorry. >> thanks for the question. the earnings power hasn't changed in any three or four-week stretch at all. what's changed is the expectations of what's going to happen going forward. you know, it's going to be a

different environment businesswise and regulatorywise for the banks in very positive ways. you know, the thing is that people have been very underinvested in this sector coming into the election. a lot of this move is for investors and portfolio management to shore up their waiting in the group. >> i see you like certain regions, strongly so. why them? >> two reasons. along with the rate sensitivity that they have, there are several that we believe have strategies, sun trust organically, huntington more of an acquisition strategy to earn momentum in addition to what they get for interest rates. then also we get deregulation. as they raise the thresholds, you'll have more capital deployment with some of these banks that have been shackled with c-carb process in the past. >> tony, how much further

deregulation do you price in at this point? is it wait and see, or can you go ahead and start thinking about going back to the higher earnings power for these companies going forward? >> great question. i mean, the stock market, as we know, is a forward discounting mechanism, so we don't know what it's going to look like. the idea on maybe curbing back a little bit on dodd/frank and maybe some burdens put on these banks are real. we don't know what it's going to look like, but we think it's going to be substantial. >> if it's that vague it's either a huge opportunity or it's a, you know, no one has any idea. just trying to figure out how much of this move is based on this kind of general sense that it's going to be better as opposed to, you know, a little more specific ability to say, you know, hey -- i think someone was saying more power just by raising corporate taxes, that kind of math. could you quantify any of this

at this point, tony? >> we're talking about the banks right now, but look at the economy, right? it has more to do with the bank, it's the economy. for example, new housing is start ng november. the data we just got was up 16% year over year. it's going to be a new trend. if there is any idea of maybe some animal spirits coming to light here in the economy, who is going to benefit most from that? banks are going to play very big into that, so they're going to be big lenders into what's going to go on as the millennials get their household formation activities underneath them. so there is a lot of other things that is at play that the banks will positively participate into. >> let me just ask you, who would be your picks here, and would a name like wells fargo that has issues specific to itself and hasn't participated as much as some of the others, would you look at a company like that kind of trusting they're going to navigate through this period, or do you just pick the winners, stick with the winners and that's the story for 2017?

>> well, you know, with wells fargo they do have several issues they have to work through next year. it's one if you're a long-term invest investor, we think that franchise can stay intact, but there is some turbulence along the way. so we would say lower long-term perspective on wells fargo. grilling into just 2017, what we're going to look for is, again, those who can participate in higher interest rates. on the money center side, you got bank of america. when you look at these super regionals, huntington and sun trust. we also look at those that haven't participated so far and can benefit as this economy gets better, and that would be like state street, one of the trust banks the benefits of rates, and also the market going higher. so once the fundamentals come through, they'll catch up and really be able to outperform going forward. >> all right. very good. marty moseby from vining.

good to see you. 39 minutes left in the trading session with the dow down 94 points as down 20,000 just fades off into the sunset here. >> the nasdaq slowly retreating. it hit that 5500 level below the session and now we're below that, clearly. i want to see what's dragging. look at that sea of red. also, later, is it time to invest in gold? there's something we haven't talked about lately. the precious metal is down about 10% since the election. two leading gold traders will weigh in, coming up. rered tireretire wit*trade. i'm in vests as a vested investor in v i invest with e*trade, whee aninstn vest..

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welcome back as we keep an eye on these markets moving lower. how about kate spayed, 23%, kind of holding at times. the aparrel maker saying it is exploring a possible sale. >> they are a 23% gain today. let's get to what's pulling the nasdaq back from record close. just back from skiing. >> montreal, yes. we're about 70 points off that level today, and this is fast becoming the nvidia markets.

the graphics chip maker nvidia are falling sharply after researchers said the stock should really be priced at $90 apiece. that's because of stiff competition coming from intel and others. citron researchers will be on later to talk about nvidia. some hedge funds have recently cut their stakes in the bioforma. qualcomm down 65%. they have a refusal of licensing its ski technology to a rival and rival chip maker. >> i thought you said you went skiing in europe. you went to canada? >> something like that, yes. >> international woman of mystery. >> she is. susan lee. thank you. 30 minutes left in the trading session.

a little less than that with the dow down 103 points. >> the ibb is still down about 20 points this year. which stocks you might want to consider adding to your portfolio when we flip the calendar. stay with us. hthis badoy is a bile trading dk

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welcome back. the dow down 100 points right now. home builders are under pressure with the national association of realtors reporting a 2.5% decline in pending home sales. that was in november, and that's the lowest reading we've seen of contracts to buy previously owned homes in 10 months. not a great number and it's pressuring the builders here today, kelly. >> that's true. bill, thank you. i'm on the floor with tim wilson, managing director of t and s investments. where do you look for the leadership today? >> well, today, you've got still some interest in technology and oil, although oil seems to have hit a lot of resistance at the $55 level. technology that nasdaq got above

5500 yesterday and today for the first time. we're having a little bit of a pause there. we've had some really strong moves in the last six or seven weeks from a lot of big sectors. i don't think it's unreasonable to expect a pause, maybe even a little bit of a consolidation. and there's talk of maybe an old-fashioned asset allocation trade the next couple days out of stocks and into bonds. we had a very successful five-year auction earlier in the day. i still don't see anything going on that's really bothersome or unhealthy for stocks. >> except for the focus on dow 20,000. which you say is a huge distraction why? >> i think we just got a little bit ahead of ourselves. i think we got really close to dow 20,000 a lot faster than people might have anticipated, even a month ago, and then everybody got all excited about it. it is obviously a very large psychological milestone. and going into the end of the year, people thought the market always gets pushed hard into the end of the year, this is going

to be a no-brainer. but now some people -- >> it does what it always does. it does exactly what everybody is not expecting, so it's once we give up all hope you think it finally happens? so how does this get resolved here? >> we're less than 1% from there, otherwise it will happen probably sometime in the first half of january. >> well, i'm not going to make -- force you to make any calls here ask jond join the lo list of those who have been wronged by this market. we're going to continue to watch it, nonetheless. >> of course. time now for a cnbc news update. it's ty matheson. ty? >> reporter: all chicago police officers will be outfitted with body cameras by the end of next year. that is a year ahead of schedule. today's announcement by mayor rahm emanuel comes as the justice department looks into civil rights abuses by the force

in chicago. a gofund me page has been set up for a disabled marine veteran whose home was partially destroyed by a fire the day after christmas. so far more than $17,000 have been raised to rebuild sergeant joshua bouchard's wheelchair-accessible house. great charge. the princess diarist is now topping the list of best sellers. carrie fisher died saturday. cam newta panthers fan got surprise. cam newton of the carolina panthers visited him in an atlanta hospital. it took him a minute to realize it was cam newton. as we come to a close on

2016, cnbc has been breaking out the 2017 playbook, looking at ways maybe you can make money in the coming year. >> this hour pro forma is looking at biotech. >> if investors expected smooth sailing for pharmaceuticals, they were in for a big surprise. uncertainty in the drug industry is as high as ever, and the focus in 2017 will continue to be on drug prices, the fd aa s d and mma. donald trump will be looking to bring drug prices down. expect also increasing scrutiny of the rest of the health care system with mounting pressure on the middle men by drug distributors and pharmacy benefits managers. next, an eye on fda. after two years of historic highs on medical approvals, they sank to six-year lows in 2016.

2017 brings multiple pieces of legislation affecting how we regulate drugs, both branded and generic. finally, mna, hope or hype? they hope for a rebound rest boost on buying. pharmaceutical companies hold billions in cash overseas and the expectation is that they bring it back at a lower tax rate. they'll gobble up smaller companies. companies working on research for cancer and rare diseases. meg tortuurrell, cnbc business . >> and if you should add biotech to your portfolio for 2017 and what we could see on the space. welcome to you both. david, i'll cut right to it. what do you think is attractive in this biotech and pharmo space? >> i look at companies like cell

gene and bio pham. you don't normally see them trading on a multiple. biotech has been down quite a bit over the past year, and it begs the question, what's wrong with the sector? when you look deeper, you start to see some of the issues. on some of the last conference calls, it became clear with companies like amgen, the ability to raise prices and make up for the fact there is a lot of competition, that game seems to be over and biotech seems to be depending on that and they'll have to look to other drugs to make up the difference. >> you recently wrote a piece for forbes where you broke it down by disease or themes for 2017 and alzheimer's was number one for you. we've been teased. we're making incremental gains in that area, but boy, there have been some disa appointmepp

as well. what are your expectations in 2017 for alzheimer's? >> it's been a very disappointing field. the success rate is pretty close to zero in the pharmaceutical industry in the last 20 years. but now i think with the most recent story that you probably saw with eli lily selling, this was a drug for removing the plaques that build up in the brain. a lot of money has been invested in this area, and i think the pharmaceutical industry is coming around to the idea that they may need to put different eggs in pharmaceutical baskets, so to speak. >> what would be some examples of those? >> inflammation is one area of research. this idea that excess inflammation could be damaging neurons and synapses, and is there a way to get in there with a drug and mitigate that somehow?

that's one. there's also just basic discovery work on, i guess, the multiple mechanisms that may be at work in addition to analoid protein buildup. >> i know you're an active manager, but everybody loves etfs these days. would you buy the etf, the basket, and let it just trade for the year? >> i actually think below the surface is where the real action is. i think luke would agree with this. i think the real hope for the industry is these real small bioteches, they've come up with a real molecule, something exciting. unfortunately, it's a binary investment. >> we've seen these things blow up 70%, 80%. >> even if you buy a basket, you may not buy the right basket. this is where active management can really play a role, and i think there are great bio funds out there to actively manage. >> any examples? >> i don't have one. >> you're not the guy trying to do that? >> i'm not the guy trying to do

that. >> david, good to see you. luke, thank you for joining us today as well. >> thanks, you guys. >> thank you. 22 minutes left in the trading session. the dow holding at 122 points. a leading money manager will tell us why he's shorting netflix but he's hot on apple and amazon. then later, president-elect trump is apparently just minutes away from what his team is calling a major economic announcement. we'll get you details and analysis as soon as that happens. stay with us. that's all coming up. . you got the amazing neiphone 7oo at&t... what??.... aand you got unlimited taecause you he directv? (laughs to self in disbeli) okay, just a few more steps... door! it's cool! get the ipho 7 on us it's and limitedata wh you swih to at&t anhave directv.

welcome back. the dow is down 112 points, as we speak. there is a tiny blip of green where it first opened and it looks like 20 k will be in the picture. now we'll be lucky to get back to 19. >> we were told santa is checking into a home. >> if santa claus fails to call, the bears will come to growl at the wall. >> and there they are. meanwhile, gm is under pressure

today. >> don't try to go shopping at your local gnc store today. 4,400 stores are closed today as they try to overhaul their pricing system. it comes after two months a retailer complained about inconsistent prices on its website and stores. there are also discrepancies over what gnc charged loyal members versus casual buyers. these also come during the busy post-christmas season. back in may, gnc started working with goldman sachs to review its strategic options, including a sale of the company. investors don't appear to be sold on gnc strategy. shares are down 4% today, contributing to a nearly 64% decline over the past one year. bill? >> there was a lot of confusion about their pricing. in some cases one product would have like four different prices on it, depending on where in the hierarchy of customers -- >> i know it's a little archaic,

but we've seen this time and again. jc penney, whether it's restoration hardware or bed bath and beyond, we all know you can get a deal. >> you want a bargain. >> so they elicited $79.99. maybe there is something to be said about the art of distraction. i don't think i ever bought something at a gnc store. have you seen the size of the whey protein bars? these things are like barrels. >> like going to costco and buying vitamins. gnc down 4% right now. while it is one of the big laggards in today's trade, the s&p tech sector is still up 13% so far this year. can the momentum continue into 2017? >> joining us now, trip miller from galene capital partners and marcus wolf from 55 capital.

all right, guys. trip, tell us who the tech names would be on your 2017 list. >> thanks for having me on today, kelly. as a valued investor, we're looking at great businesses run by capable management teams, and we really think apple and amazon fit that bill. in the case of apple, we're getting a business selling for a little over 10 times earnings adjusted for cash on their balance sheet with multiple product lines. they've returned almost $200 billion in capital shareholders over the last few years, so we think they're doing the right thing in that area. on the side of amazon, the continued growth, as well as ams and alexa as well as some of their other potential product lines they're moving into. we like those two names a lot as we go into 2017.

>> let me jump to next year where a unicorn like snap is expected to go public. how well do you think these guys will be received on wall street? >> i think we might see an air b&b late in the year, i think we'll see a snap. i think the strongest of the unicorns are going to come out in 2017 and they're probably going to do pretty well, but they're going to come out of these nosebleed valuations and they still have a problem. 2016 is not one for the record books. worst ipo year since 2009. not much money raised and a weak trade on some of the names that did come out. a relatively strong trade on the tech names. we think some of the other tech names come out, snap, air b&b, et cetera. a big separation from tech and we expect the winners to do well. we do think amazon will be one of them. apple clearly, as well as amazon and google, a mass reduction in repatriation tax rates as well. >> it's interesting to hear a value stock picker picking apple

and amazon, some of the biggest cap companies in the world. maybe the argument is some of the good deals are right in front of our face. i notice you don't like netflix, don't know how you feel about facebook, but it is interesting that the two companies you're picking that in the past would have been momentum plays, but clearly times have changed. >> yes. we really like apple because even though it's a large cap business it's trading at a low valuation. in the case of amazon, we like the free capital growth potential. so while we don't get tradition multiples, we do feel like over the long term we're playing in a business that will return a high degree of cash flow to shareholders. on the side of netflix, we are short that company. it's probably our most controversial short. what we don't like there is the fact they've got such an increased cap x spend on content going forward. people talk about 6 billion on content spend going into 2017. when you look ahead two years,

that number easily gets into the mid-teens. on stock that burns billions in capital, we don't think that's sustainable. >> netflix is like a liquor trade. you're joining a long list of people for years who said content cost is too high, can't work, but take your point. >> but then watch the movies, anyway. thanks, guys. happy new year. trip miller and wolf. the dow is only down half a percent. the russell is down 1% and the nasdaq down 1%. it may take a christmas miracle for the dow 20,000 today, but investors may tackle a more tactical approach to investing. we'll explain all that when we come back.

eight and a half minutes left in the trading session here, and art just told us the market on closed orders have paired off so we'll see no buying or selling pressure with the dow down about 110 points right now. today we're waiting on the economic announcement from

president-elect trump any moment now. although there aren't many details on the subject of the announcement, a transition team did say it could be or would be a boost to workers. shares of the video plunged. they tweeted about the stock going back to $90 next year. the plunge comes after 90 days of highs in that company. okay, joining us on the floor of the new york stock exchange right now to discuss more of today's markets is director of research jay jacobs and manager ed washington, adviser kevin krone. kevin, down 20,000. is this a disappointment? >> the big story is that we've got a stock market that's gone from under $10 trillion just a few years ago during the financial crisis to roughly

$20,000 today. that's the big number we need to be focused on. you have a very prosperous stock market, and then there's the bond market. >> is the selling exacerbated into next year that this starts to look worse before it starts to look better? >> i think i agree a lot with what kevin is saying. we're starting to see value markets stretched in the market. s&p is about 10% above their averages. it's been great for investors so far, but it could start to hurt future returns unless we see the earnings growth we're expecting. >> we are expecting some selling pressure in the next couple days here as pension funds balance their portfolios, and chances are they'll be selling stock and buying bonds, which is what we're seeing today, as a matter of fact. >> it could be, because you've had a big shift in terms of bonds moving down, stocks moving up. so anybody who is looking to rebalance the portfolio is going to need to make some of those

changes. >> if you want to achieve that 60/40 portfolio balance, you have to get back to that, right? >> that's more of a technical adjustment, and i think markets tend to absorb those things fairly well. the bigger things you need to focus on are what's happening with the underlying economy, and the biggest story of the year was the turnaround we saw around june and continuing to the latter part of the year. earnings have improved, the growth rate is improving, and that's something we should hang our hat on as we move into the new year. it's really the more important story. >> we had negative yieldings, 10-plus trillion dollars of bonds back in the summer. while summer is still there, it's a very different picture. are bonds an adjustment here for 2017, or do you need to stay away? >> we're worried about bonds from the individual perspective. people buy bonds for interest and capital predser vaservation. right now if rates are rising, there's not much capital preservation. we're looking at high dividend stocks, mlps, places where

people can gain yield but it's going to act like an equity, possibly strengthening from the economy. we'll take a quick break here. about six and a half minutes left in the trading session. the economic announcement from the president-elect is just minutes away. we'll have the analysis and details coming up. you're watching cnbc, first in business worldwide. what's tm spiritorth? hes) what's it woh totalk to you? at'sthe value off but thin that matterealth, moantanley

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about two, two and a half minutes left in the trading session for today. these pension funds will have to be selling into the end of the year, maybe as much as 35 to $50 billion worth of stocks, so that's not going to happen. so the dow today down 105 points. inside the industrial average of the 30 components, travelers for a time was the only positive component of the 30 stocks. caterpillar was the big drag today. so that was where the extremes were for those markets. the 10-year yield down to a two-week low today. as they were selling stocks, they were buying bonds. what do you know? the 30-year down to a two-week low as well, and the 10-year dipping below 2.5%. oil continues to creep ever higher. even the dollar continued strong as well. wti today up to $53.91.

that wasn't even the high today. and very quietly, natural gas hit a two-year high today. it's been on a tear, up 11% in just the last three trading sessions. it's up 68% this year. big gains for gas here. vics. it's been a while up today about 8%. almost to 13 right now. >> the real heartbreaker has been the oil stocks. as you mentioned, oil at a new high sitting there. normally you would get a nice move up in exxon and chevron. it hasn't happened. remember, chevron was 105 when the election happened and now it's 117. it's been 117 for two weeks. it hasn't moved at all. we all thought, this would be it, oil stocks are moving. they are high priced. the analysts say we're trading on 2018 earnings now, that's how they justify the price, so i understand the point. but that relationship between oil and the stock market, in

particular oil and oil stocks have kind of been severed here. everything has just sort of settled down. we're 130 points from the historic eye. so let's not overanalyze it too much. analysts bringing the closing bell today. stay tuned. analysis of the second hour of the "closing bell." see you tomorrow, kelly. thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. big declines on wall street. the dow dropping 20,000. 19,834 is your closing number for the blue chips. s&p 500, also down nearly 19 points. 2249 is your closing level for the broad index. the nasdaq down about the same amount.

the russell is down about 1% today. we'll get into why this is happening and especially some of the losses focused on those financials in the russell. the dow the outperformer even with that drop. president-elect donald trump is said to make an announcement on the economy any moment now. we'll bring you that message as soon as it's out. we have senior commentator and pro analyst michael and fast money trader carter worth joins us to kick things off here as well. what do you think, mike, about these markets? >> in two weeks we've kind of been going sideways with a narrow range with the major indexes. along the way, fewer stocks were hitting new highs. you didn't really have a refresh to the bullish story line. it basically became, hey, the momentum is strong, we're expecting power moves. nothing came along as reinforce m reinforcementes to the buyers. when you have semi-bullish over

a few weeks ago, it's kind of hard to pull out. the russell was down 1%, so it was a genuine rotation of stocks. i don't think there's much to make of it just now. >> michael, is it just kind of a pause? is it a shakeout as mike described? is there any reason to start thinking these markets are poised for a bigger correction? >> well, my view is that we're still in the seventh or eighth inning of the market rally. i think there is still sentiment in the market to push higher. investors are concerned about missing out on rallies. caterpillar rotated out today, some of the financials have lost capital value. i think the market is a bit ahead of itself, but i wouldn't read too much about this. it's an astounding statement when we're saying the market has fallen to just under 20,000. it's just kind of an incredible state of affairs. bill griffeth on his twitter feed, i thought, was the best

twitter line i saw today. with the market down 100 points, i didn't even think it was possible, bill said. >> i think it's only the second triple digit decline since the election. the upper drive was so strong and now it's stalled. do we kind of go back to that strong upward move at some point, or does this now change the narrative? i think what i'm hearing from you is nothing has changed so we should expect this to gather force and continue to march higher, right? >> yeah. well, what i'm saying is i think there is still a sentiment in there. i think where you're really going to see problems in the market is when economic data really comes head against what the market is doing in terms of its price appreciation. the market right now is all based on expectation. i was on with you live in new york a couple weeks ago and i talked about fundamentals, and one of the other panelists said this is not a fundamental rally. well, that's exactly right. if it's not a fundamental rally, it's a momentum-based rally.

fundamentals are eventually going to impact the stock market. i feel that's going to happen in a couple months. >> carter, what would you say to that? >> whether there's momentum or not, it's a funds flow rally in the sense that up until at least today, it's been better to be buying stocks than has been buying bonds for the last, let's say, six months. so the question is this. as we look forward to next year, are we going to have a january swoon just as we had this year, or will the market be able to fight that off? my hunch is the buy is on the down side, and what's important is really it was hyper rotation, almost epic rotation. we have an instance of unrecognized underperformance on the part of managers for about 18 months. can that improve? it's very hard for that to improve when all the leaders, staples and those, all become the losers and others become the winners. very hard to navigate that type of market. i suspect you'll see one thing

next year. health care, the only sector down this year, will play big catch-up in 2017. >> that kind of rotation, though, could give us new sources, new levers to pull, right? >> absolutely. it's one way to kind of keep the market churning for a while, it could be both a positive and a negative, but i do think to carter's point that it's very hard to get those flips of the switch correct successive times in a row. so unless you're extremely tactical, looking for what's working now and what's the mean aversion trade and what's the momentum trade and being able to nail those, it's pretty hard. i think you can, to his point about health care, look at the beaten down pharmaceutical names. people saying, look, we can't see any daylight for these guys because of pricing and every other reason, and all of a sudden just because of c contrarian logic, it works. >> i think it's on track to hold onto some gains for the year even though it's bayne healthy period the last couple months. it's been good the last couple years. >> it works more often than not,

but not every single year. >> there's no sure thing. >> kelly, i want to underscore that i completely agree on health care. health care has been beaten down based on all sorts of concerns, the big concern about pharmaceutical prices. you look at the yield, you look what the price has been right now. they've been completely left in the dust. while it's difficult to tactically call sector locations, i think they're really cheap right now. >> hang on, guys. we're going to bring bob pasani into the conversation. he's on the floor here with a recap of what's happened in the session as we stalled again. it did more than stall, bob. it moved significantly lower today. >> just shy of the historic high. let's recap the two problems we have. number one, a week and a half ago, we had a drying up of the leadership, basically, and we haven't had any leadership in the last week and a half. the second problem is sort of new, and that is no bids. we had buyers essentially walk away, and when you get normal

amount of selling and less drop. but do remember the dow is less than 1% from historic highs. we have that whole period where industrials did great in november and december, but boeing was stuck around 158 and now it's moving down a little bit to $150. merck is down a few dollars. procter & gamble is down a little bit. goldman sachs got to 240 today. most of the concentration is on the big names. when you have oil moving in the markets and even energy stocks have been completely severed. exxon not doing anything, chevron not doing anything. chevron went to 117 when the election happened and it's just stalled out the last two weeks, so there is sort of a complete lack of leadership where you think there should be. do remember for the month, i just want to put up the dow, 19,974 was our closing historic

high. that was last tuesday. we are 140 points below historic highs, so let's not overanalyze this too much. guys, back to you. >> stay with us, bob. carter, what were you going to say? >> i was just going to say, talk about the spread of health care. since dick's data begins in 1990 for the sector location we now have, there's only been two other times where we have a spread of 100 base points between financials and health care. and the way it's likely resolved is the way history suggests, which is the menial version is very powerful. when others were saying it's really quite dark here, i think contrarian move into health care is going to be a very judicious thing in 2017. >> people got really excited as we've had this kind of -- he's not with us -- has that extended into the market because it's more about positioning and people have been so far on one side of the boat? have we course corrected yet?

>> it's not clear that we've entirely done that. i really think people are back on their heels. you kind of want to not break something in the last few days of the year and then reassess when it comes to the new year. i think health care is the kind of sector that's neither necessarily a bellweather or always on the opposite side of the dominant trend. essentially it can work whether the overall market is going up or not. it's not financials and such where you really want to see them for what they signal about the economic side. >> michael, outside of health care, anything you think makes particular sense as we head into 2017? >> one thing i want to point out, kelly, is what's happened in the market. as markets were hitting all-time highs last week, fixed in connection with -- fixed incomes, yields were rising. in the last few days, markets are showing some weakness, yields are coming back down. just as exciting as the spike in

he can with equities has been, more depressed for income investors. the equity market is probably ahead of itself in terms of equity values, in terms of fundamentals, but i also think the income market is ahead of itself and probably oversold. investors will need to have fixed income for some stability in portfolio strategies. as long as you stay short to intermediate duration, you're not out there buying 20-year bonds. i think fixed income actually could be a reasonable investment, particularly given how far the markets have rallied or how far markets have sold off on the bottom market. >> i hear you. carter, i was going to ask about the dollar, too. we're at 103 on the dollar index. we moved up another quarter point today. when does it end? >> when you have a breakout, there is something known as a measured move which goes back to some rules in the '30s and '40s just before the war. what it means is if you have a

well-defined range and the range on the dollar index for two years was 92 to 100. in an eight-point range, you tack on eight to the top. so a measured move from a breakout from this range would be 108. here we are, is it going to work out perfectly like that? it doesn't have to but that's a good price injector. >> we'll see if the president-elect has anything to move this further. carter, we'll let you go. thank you for joining us this hour as well, michael. be sure to stick around, everybody, and catch carter coming with the fast money crew next hour. he's back with a new target and he'll reveal why the party is over for one of the hottest stocks this year. he says it's nvidia and that will begin at 5:00 p.m. eastern. the precious metal has plunged more than 10% since november 8. up next, we'll debate whether now is a golden time to buy back in. the trump rally stalling on the dow at 20k.

we'll discuss if stocks are still the place to be or if bonds could make a comeback, like michael was saying. we'll also bring you trump's latest economic announcement as soon as it begins. you're watching cnbc, first in world business nationwide. ♪

welcome back. stocks pulling back today but they've been on quite a run since the election. gold has fallen over 10% since the election. is now a good time to buy the precious metal and where does it go in the new year? jim, you're our bull here. do you think gold can recover? >> i do think it can recover. you know, the strong dollar and the higher rates are a very real reason to have sold gold. you threw in the fact that the stock market has been rallying, so the risk on thing -- that's kind of been factored in. there's other fundamental reasons that in my mind seem to be developing that make kind of a case for gold. one is the fact that it seems like people are a little unsettled by the new administration's willingness to express foreign policy opinions via twitter. whether or not you agree with the foreign policy decisions, that's a little bit different for people and it's going to take getting used to and it

makes people nervous. if you look at the chart of bitcoin over the past couple months, it has skyrocketed higher, mostly because of india's cash ban. gold and bit coin are both currency proxies, but gold has been suffering these headwinds. so if any of those headwinds falter, they can go higher. >> you're saying bit coin is the new gold here. an anthony, you're not as much a fan of the precious metal here? >> i'm not, kelly. when i looked at the peak for gold it was in 2011 when we hit 1800, and it's not a coincidence that when the economy started to improve, the price of gold started to slide. investors looked at gold as a hedge against bad economic times, or in the case of 2011, almost an economic meltdown. when we didn't get that and the economy started to recover, investors started unwinding their positions of gold. if you look at hedge funds over the last few months, they're really liquidating all their

longs right now. gold -- 5% of my portfolio, fine. anything more than that, i don't see it happening. in fact, i think you could see gold probably go back to $1,000 early in 2017. i understand jim's concern about the economy and trump policies and things like that, but what we've learned about trump so far is the bark is worse than the bite, it seems, at this point, that he makes these extreme positions -- >> go ahead. >> i was not talking about his economic policies. i'm per febtfectly for his econ policies. i think what people are questioning are his foreign policies. today was underscored with john kerry giving a speech to the middle east. again, whether or not you agree with it, the way he goes about it, i think, could cause a little bit of worry. and, a day like today -- go. >> jimmy, i just think if you look at anything he's done up to

this point, the bark is worse than his bite. he was talking 40% tariffs on products coming into the u.s. now it's down to 5% at this point. it might be nothing by the time the policy is actually implemented. >> hold on a second. >> hang on, because if this is about geopolitical issues, we'll have more to talk about than the price of gold. what were you going to say about bit coin? are they taking a luster from gold today? what's going on? >> i think they both share the set of proxies for global currencies. bit coin has shot up because bitcoin hasn't had to worry about higher u.s. rates and the stronger u.s. dollar. that's kind of teased out of it a little bit. if any of those two things start to falt ter, we saw rates rever a little bit. if any of those two things falter, gold shoots up in a

hurry. he started to talk about gold uncertainty. when i hear uncertainty, i think of a safe haven. >> uncertainty is a lot less than it was about a month ago from now. as far as the dollar, i don't think you're going to see anything that's stopping the dollar right now until we get about 105, 107, in that area. the dollar has more to go on the upside. >> mike, how would analyze it? >> i think the way you split the baby a little bit is to say gold could certainly bounce from here up to where it was back in july, $12.50 an ounce, $13.50 an ounce and still be in the bear market. that's a bit higher than following this shadow bitcoin trade. if gold didn't get above $1300 in the absolutely mania for negative rates and all this other stuff that was climaxing in the middle of this year, it's hard to see what mix gets you beyond that. >> if that happens, everyone can

claim their right. anyway, jim, anthony, thank you both for joining us. feisty, i love it. i will check back in with you. the dow rallying 14% this year, despite brexit, negative interest rates we were just talking about. up next we'll look at all the big market moves abroad and what they say about 2017. plus, president-elect trump expected to make an economic announcement any minute now. we'll bring it to you as soon as it happens. stay with us on "closing bell." s i won't t th aomplishment go to head. get help on options trading wi thinkorswim, only at td ametrade. oy aligprobiotic. inyour d? r aholdn to yourt tiara kind of day. the #1 dtor recommended ppprobioc branig now in kids chewables.

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welcome back. despite a rocky start, 2016 has been a good year for stocks, but it's been a wild ride overseas. >> political shocks have been a prevalent theme in 2016, starting with the u.k. referendum, a decision that shocked the world and sent stocks lower. but equities have rebounded as we await the actual negotiations between the u.k. and the european union to kick off in 2017. meantime, the u.k. stock index up 13% this year helped by a weaker pound. that's, of course, a boon for the exporters. germany and france higher as well, but much higher gains in latin america, with the argentina stock market up an astounding 41% as investors bet that president mckree's policies will boost growth. higher commodity prices also helping stocks in brazil rally, while mexico shares around 12% with the prospect of weaker trade relations with the united

states as president-elect trump enters the white house. proposed low for 2016 include italy down about 10% on continued uncertainty when it comes to politics after the italian referendum, plus distress in the country's banking sector with some banks down as much as 50% year to date. lastly, china. the shanghai composite down 15% in 2016 as analysts say perfectionist trade policies proposed by donald trump plus those growth worries will continue to hurt china's economy. kelly, the contentious relationship between beijing and washington plus a chinese leadership reshuffle expected in the back half of 2016 means politics will not only be a story here in the u.s. but in asia as well. >> it all has a way of feeding into itself. seema, thank you. >> it really does. it was a great buying opportunity in the early part of the year for emerging markets. a lot of those kind of left behind areas of world. it seems to be interesting to have been timed during that

february 20 g-20 meeting, and now you have pimlico saying there is a cold currency war going on. that's supportive of equities right now, but it doesn't feel like a very stable relationship all around. >> it's so true. so many times the flip side of emerging frontier markets is just the fact of whatever the dollar is doing. if you're a u.s. investor, if the markets are down but the currency is up or the currency subpoena and the marke is up and the markets are down, you can't get away from that. >> we'll see what happens in the next couple days in the coming year. the dow still up 8% since the election. bonds have fallen 9%. up next, two financial planners tell us whether stocks or bonds are the better bet for the new year. and the big business of college football bowl games. the number of contests has more than doubled in the last 20 years, but can all of them be

sustained? look at that empty stadium. when they get tiny crowds like that one? it's coming up on the "closing bell."

welcome back. we dropped 111 points at the

bell to close 1933. the s&p was down 13 points. the nasdaq and the russell were worst performers. the nasdaq down 19% and the russell down 1%. there were not many green spots on the screens today. it's time for a cnbc news update with tyler. thank you, tyler. >> reporter: president-elect donald trump spoke briefly with reporters outside his mar-a-lago estate earlier today. trump said he was meeting, quote, great people, but declined to elaborate on a tweet this morning in which he accused president obama of making inflammatory statements that were impeding the transition. a two-story building outside of rome was reduced to rubble following an explosion today. that was not the building outside of rome, folks, but you knew that. two people were missing while two people were rescued. a gas leak may have caused the blast. large numbers of dead starfish, lobsters and other sea life washing up on the shores of

a nova scotia beach and nobody knows why. canadian scientists already looking into large numbers of dead herring when more creatures began showing up dead. now, three teenage boys lucky to be alive after their boat capsized two and a half miles off little coach key, florida. the boys were anchored in 30 feet of water when the boat began to sink. that's when one of the teens sprang into action and used his cell phone to call for help. and that, folks, is the cnbc update at this hour. the picture is a little out of order over there, kelly, but we got through it, didn't we, kelly? >> that's scary stuff with those boys. two and a half miles offshore? it doesn't sound like a lot but that's a lot. >> they were young kids. glad they're well. >> me, too, tyler. thank you. as the dow goes down, stocks or bonds as we gear up for the new year? joining us now to discuss, two

members of the cnbc digital financial counsell. gary glasgow of gas gao services and mary harrison. >> do you pick stocks or bonds for 2017? >> you have to pick both. >> you're not allowed. one or the other. >> i like neither. >> all right. go ahead with what you were saying. >> let's imagine this. we're sitting a year ago today, and everybody believed that interest rates were going to soar and we had no idea that brexit was going to occur, nor did we think that trump would be elected, and if i told you all of those things, there's no way you would have thought that the dow would do what it did and that bonds would do what it did this year. i still believe diversification makes sense. the difference is this. one other investment that i do like this year is that stuff in between. too many people focus on just bonds and stocks, and there are a lot of strategies in between stocks and bonds, and i think

those are going to be some great places to be. >> zanelia, same question. i see here you like stocks, right? >> i do. i do. >> why? >> the reason why is i've noticed over the years interest rates have been, you know, at an all-time low, and i just feel that there are more opportunities in high-paying dividend stocks. so for my clients who are, you know, still in the work force and are not necessarily focused just on retirement that their focus is on accumulating those assets. i feel that's a good place to be in order to accumulate those assets, is to be in the dividend-paying stocks that are also growing at the same time. >> so barry, why don't you like stocks here, as you said? >> i do. assuming that you can have stock market risk. and also, when we talk about bonds, we can't just talk about boring treasuries or high quality municipals. one of the areas we've been invested in over the past few years has been short-term high

yield bonds. high yield bonds, yes, they're riskier, but they move more with the economy than they do with interest rates. so since trump's election, interest rates have really jumped. high quality bonds have come down, but high yield bonds have actually stayed about even to going higher because there are hopes of a faster growing economy. >> so zanelia, when you like stocks, barry has laid out a number of different stock options. why not get more exotic and why stick with the plain vanilla. >> because i feel like it works, so why not stick with what works? what i do with my clients is in evaluating those stocks that have performed well, and because of the euphoria after the election, what i found is that these are opportunities where you would do some selloff and you would capture some of those gains, ask thnd then you would into areas where there's less performance or high performance and take advantage of what's on sale. >> she likes it because it works, mike. words to live by. >> i think it all is very

plausible. it makes sense you would stick with these areas. i do think one interesting area or tough spot we're in right now is trying to manage people's expectations of what they can get out of a stock bond mix, right? basically with bonds, you more or less get the coupon over a long period of time, and stocks are a highish valuation, no matter how you slice it, even if earnings come back. it seems as though we're priced for both stocks and bonds to not give you wonderful returns over a period of time. >> how do you square that? go ahead. >> i think mike is a quiet behavioral economist. i really think so. i love -- it really is true. the problem with most retail investors is they chase -- they have chased the past trend, and it's really a shame because they've missed out on the stock market rally, they moved to bonds. bonds came down, they're moving out of bonds and into stocks. 2016 is a year in which diversification finally worked. a well-diversified portfolio did

risk versus return just fine, and a real estate investor who stayed pat at the beginning of the year probably would have done well at trading. >> what do you think about investing this year? >> one of the mistakes i see is exactly what we just said, they move when there is a euphoria instead of maintaining a diversified portfolio. and having that contact or relationship with their financial planner in order to discuss when moves should be made. one of the things i like to do with my clients is maintain a percentage of their portfolio in cash. therefore, they can take risk in areas where there may be opportunities based on what's going on globally or nationally. >> and just having the sort of wisdom to realize the time to do that is right when everyone else is saying not to. all right, guys, thanks so much for joining us. barry glass man, zanelia harris with more ideas for 2017. the fiesta bowl, the dollar general bowl, sponsor ships in television are largely responsible for the college

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welcome back. president-elect trump meeting with more ceos today.

rubi rubienstein, and he also met with the head of entertainment. michael, welcome. it's hard to kind of group all these ceos into an entry, though there was some health care names, obviously, but what do you think he might be up to? >> i think that he's doing what he does best. he's using this opportunity as he's gearing up for the presidency to negotiate, to set expectations among the corporate sector and let them know how they can succeed at new leadership among the governmental level. what that means is he's going to be developing these relationships so they can be somewhat isolated and insulated from those twitter fears that corporate ceos and board members have now that they might be exposed. these individuals who are doing these meetings are much better off and well poised out of that relationship that protects them from the sort of shock of twitter, nighttime tweet that could sink a stock. >> maybe, maybe not.

we're also faced with the president-elect having some economic news. do you think that would tie into these gatherings somehow? >> i do think so. i think generally he's setting the expectations and giving the opportunity for these companies to get in line with what the policy is in terms of trump making it clear that he expects companies to look out for american workers, american consumers as well as the american taxpayer. and so with notice, these individuals can then build that into their leadership plans for 2017 and beyond and make sure that then they are the leaders in their market, and that actually winds up better for business if they don't have the individuals who are breaking the rules or exploiting consumers, workers and taxpayers to compete with. >> when we see david rubienstein there, he's not like a big republican, so it makes you wonder what edge he might have. also they might be involved with different water assets and municipalitie municipalities. >> they are creatures of d.c. that's where they came out of. they're investors alongside many

government-depend industries, so that's where they came out of. it seems to me the nexus of business and government is pretty much where they live, so that makes sense to me that he would at least be that kind of adviser. david rubienstein has experienced himself back in the day with both administrations of parties. >> would you push it back further to say naturally that would mean there is some infrastructure programs and who is involved. >> who knows if that's involved in this particular announcement. if you can try to infer what donald trump's main priorities are, it is trying to wrest production back into this country one way or another. either keep it here or bring it back here. we're talking about immediately being able to write off the expense of capital investment here, no longer allowing the dedu dedu deductibility of investment income. >> mr. barnes, if there is like

a carrot approach, there is a stick approach, but this kind of touches a number of different business facets in this country. is he going to be able to push everybody in the direction that's going to give us that 4 or 5 or 6% gdp growth? >> i think he's doing well so far and heading in the right direction, again making use of this time right now as he's in this learn on the job period, he's making progress of what he knows best. he's letting them know what the expectations are, but also, as we heard from michael, getting the input he needs to do something like comprehensive reform and replacement of the affordable care act. so with this input of ndiadialo between the two of them, i think he's setting up for corporate ceo leadership and the government approach which could be new for perhaps the first time ever and could be a good approach. >> we're seeing trump prepare to walk out of mar-a-lago right

now. we've watched him a number of times walk out, perhaps make sole remarks now, perhaps when he dismisses everyone. let's try to listen in for a second. >> speaks for itself. everybody knows. thank you. >> mr. president, do you think they're trying to undermine you? >> let's bring in our john harwood. john, i don't know if you caught that, but what i heard the president-elect say was that it speaks for itself. >> yeah, well, he's made terse comments after a number of these meetings this afternoon. no real substance. the only thing of real interes , he said coming out of a meeting was when a reporter asked about his tweet earlier today when he said president obama was impeding the transition, that it wasn't a smooth transition. when he was asked about that he said, oh, no, it's going very, very smoothly. so he said just the opposite of what he had said earlier on

twitter. he is dragging out the suspense about this economic announcement as long as possible. his aides had said sometime in the 4:00 to 5:00 range, we're getting up on 5:00, and, you know, it's possible there could be no announcement, but we'll just have to wait and see. he has not lingered at the doorstep to entertain questions for more than a minutes or so after any of these meetings. >> right, that's true. john, thank you. john harwood there. michael barnes, thank you for joining us this afternoon as well. appreciate it. let's send it back to seema for a report from headquarters. >> api data shows a surprise build in u.s. crude of 14 million barrels compared to the analysts' expectation of a decrease of 2.1 million barrels. again looking at oil prices turning negative. back to you, kelly. >> seema, thank you. got $20? you can get into a variety of college bowl games if you do. why these tickets are so cheap,

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it's college bowl season and you won't have to shell out much money if you want to attend one. eric is here as to why stadiums are so empty and bowl games are so cheap. eric? >> bowl games make money in several ways. tv and sponsorships. i'm just going focus on the tickets. we see plenty of stadiums with so few people in them. even expert tv cameramen cannot always hide that fact during the games. it's basic economy 101. too much supply. there are so many bowl games nowadays, that plenty of teams without winning records are playing in them. these less prestigious bowls attract lower level schools that

don't have a big ticket fan base. many bowl games this season have get-in prices of less than $25, $10 and even $5. but cheap tickets can be found for the major bowl games, too. you can buy $4 tickets to see the upcoming cotton bowl between wisconsin and western michigan. part of the problem is the same teams playing over and over again. larry mann at revolution sports marketing explained to me that if the same schools -- think if clemson goes to a college bowl year in and year out, it's hard for their fans to think of keeping paying for flights and room and board. for a lot of games it's just not coming together, making them rely even more on tv or sponsor money which, of course, is a whole other conversation. >> it is. let's have it. stay right with us, eric. while there are 41 college bowl

games this year, five of them won't even have a title spons sponsorship, meaning they won't make as much money. last year these all brought in $100 million or less per team, the cotton bowl or orange bowl paid out $60 million last year. let's bring in ponchura for ponchura management. what's with all the bowl games and why are there no sponsors and why are there so many empty seats? >> as eric said, supply has outdistanced demand. why is that? espn. espn needs content. they do 35 of the 42 bowl games. it's better than repurposing some of their other shows or even sportscenter. so even though some of these very small bowl games have very little appeal, they still may get a million viewers and a sportscenter gets 500,000

viewers. so it's still better than. >> it might seem like a money-losing proposition, mike, but for espn, it's still a good investment. >> right, the threshold of what makes it worthwhile -- espn is pretty low, i guess. as far as i half of all divisii football teams get to a bowl, is that right? it seems 60%, if you have 42 bowl games. >> wow. >> is there any talk of lengthening the season? clearly they think there is appetite for just a little more college football than the regular season. >> well, i think the overall problem in sports right now, and we're seeing it with the nfl and other things we have too much content. for us the consumer. we can only absorb so much. now with all the broadcast community, they need content to fill their air. >> but football plays a lot fewer games than basketball or baseball. so especially the nfl, where there are 16 games. these are actually big events. and so why can't they do a better job of marketing these big events even at the college level? >> well, i just think at the end

of the day there is probably five to seven really big national college schools that people want to follow. everything else, then, is their local community. the other thing just to keep in mind is espn has paid the ncaa $500 million roughly a year for the three games, the two semifinal and the championship play-off. >> wow. >> you can't get your money back with those three games. so you package. so it's the capital one bowl games, which is all these 35 games, and you package them in order to try to at least get to that level. >> as we're seeing now, there are quarterbacks who are more concerned about being able to play in the nfl than play in one of the bowl games. it's a tricky message to send when you don't have the marquee quarterbacks, when the stadium is empty and you can tell on tv. i wonder if it's going to be as viable going forward for espn? >> so when i talked to larry mann at revolution, he used to work at espn 20 years ago when they went into the business of creating and owning their own bowl games like the birmingham bowl. it doesn't matter if nobody goes

to the stadium you. get enough of a rating on tv. and even if there is not a title sponsor, you get some ads. it's an infomercial for the city like birmingham, alabama, wherever it is. it's infomercial for the schools. it's three hours on tv. fourth quarter advertising. companies that want to push christmas sales. so his point is they wouldn't have grown the business unless it was profitable for them in the long run, even if an individual bowl game may not pay off that particular day. >> and tony, the strategy going to work? if espn's concern is cord cutting and losing subscribers and they're not getting enough viewership of the other things they could offer during the day, is this long-term fundamentally going to work and sustain that? >> they're walking a very fine line. they put $4 million into the rights fees, nfl, nba. they did that with the projection of 5% subscriber growth. they're thou doing about 5% subscriber decline. i don't think it's ever going to go up.

can they flatten it out? i think that's their goal. they have a real struggle to pay for the rights which was try to attract the young consumer to stay with espn and not cord cut. >> and they have all these other issues with football. now they better stick with moana, rogue one. >> but interestingly, so those are events when you can get people to pay 15, 20 bucks for a movie ticket. but this is every single day. the air time is right there. it's not going away. >> young people, they're watching ufc, watching all sorts of other stuff. tony, thanks for joining us. a restaurant in san francisco is going high-tech with its place settings. we'll tell you a crazy story when we come back. don't let nus sytoms brinyou down now!

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alexa, ask cnbc how are the markets doing? alexa, ask cnbc for the latest news. >> here is top news from cnbc. >> the markets, the news, the data you need. just ask alexa. welcome back. let's send it back to seema mody for a check on today's markets. >> the dow transportation index, a notable underperformer in today's trading, closing at session lows off by more than 1%. and nearly all 20 members were negative with avis, budget weighing the most. airline stocks were also under pressure shares all down around 1% as we keep an eye on the price of oil. this also, keep in mind on news

that delta is cancelling an order of 18 787 dreamliner jets. that order was one that delta assumed when it merged with northwest airlines back in 2008. now despite today's decline, dow transports still up 20% year to date, kelly. >> and the most, probably the most significant thing that happened is when they finally joined the record high club after two years. >> it's been almost three weeks since they peaked. down about 4% after today's losses. i don't think it's more than them coming off the boil. they got overheated on the way up. we'll seattle. i don't think it's really an economic signal yet at a 4% decline. >> we love that dow theory. the transports and the industrials, that's how you know you've got a market. anyone can use his or her ipad to find inspiration for a dinner recipe. but a restaurant in san francisco is incorporating their tablets directly into the dish. three michelin star restaurant quince is serving truffle croquettes on top of ipads, call

it a dog in search of gold. it's what has the blue there on the bottom of that plate. the ipad has a video of truffle hunting dogs in the forest to make the point of how the dish is served, mike. >> it's an immersive meal experience, i guess. this is sort of the one-upmanship that goes on in a very rarefied dining economy out there. kind of, you know, a little bit of innovation involved with it. >> naturally, we had a few questions. and we reached out to the restaurant. one of them being what happens to the ipads? how do they get cleaned? and we're told that the ipads are sitting beneath a glass surface so there is no sanitation risk, which i'm sure wouldn't keep the three michelin stars there for very long. there is this whole thing about they worked with the local woodworker to build the box that the ipad is sitting in. apparently there are some uk restaurants already doing this as well. >> it's where did the truffles come from. it's a little more of an

education. obviously, everything that is a twist on these experiences. this is hopefully going to persuade you to awhat they're asking for the truffle dish. >> people going wow. now we've gotten to this point. nevertheless, a clever idea. but a new -- if it doesn't tell you that the ipad is possibly a commodity, that it can now be used as a tray to be served as a dish? >> pretty disposable. >> they're expensive, but they're fundamentally, it's like they're trying to find new things to do with it. all right. getting back to the markets. bad day today. >> a bad day today. it seems like it will be hurd tomorrow for the market to kind of lift itself out of this little down phase. we're looking at, you know, losses during the santa claus rally period people might think be important. it definitely looked like a rotation today. it definitely looked like a methodical exiting from equities into bond. we'll see if that still has to work its way through or if we mostly got it out of the way today. >> also not clear how strong or weak the holiday sale season

was. >> yeah. >> seen conflicting reports on that front. >> it seems like it was okay, but probably not enough to get you to rush to buy retail stocks to be holding through the first quarter. >> and the nvidia story, up ten straight, tripled this year. and then andrew citron's report hits. >> i'm looking forward 20 that. "closing bell" is over. "fast money" begins now. >> "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. your traders are pete najarian, brian kelly, carter worth timothy seymour. the short seller who called the decline in valiant is charting the hottest stock in the s&p. nvidia. the man behind the big call andrew left will be here to tell us why the huge run in this stock is over. plus apple's ceo tim cook making a surprise visit to the new york stock exchange today. we'll hear his comment about why he is calling it a great holiday for am. and we're waiti