have more of a crazy day. >> another day of volatility there's yet today another 1,000-point range. >> and gaining steam in the last 15 minutes from basically flat to down to up 332. >> that means you got to watch the next hour. thanks for watching "power lunch". >> "closing bell" begins right now. women come to the "closing bell." i'm kelly evans. >> and i'm bill griffeth if we do a special tonight, it will be happy days are here again. after that historic day we saw on wall street, more volatility today and it's happening right now. the dow this morning, we saw a swing from bottom to top of roughly 900 points we were down 567 points. then suddenly up 367 points. now -- >> going up towards those levels. >> -- setting highs for the day. up 1.75 on the dow and other

major averages are moving higher we have a panel of experts coming up here shortly. >> don't forget about earnings we have a bunch coming our way after the bell, including disney we'll have an exclusive interview with ceo bob iger. looking forward to that. first, though, there's also some news out of washington at this hour let's get down to aeamon javers with remarks from the president. >> reporter: it came about the dangers of the ms-13 gang. the president talking about immigration saying he ultimately might want to shut the government down if he can't get a deal on immigration this week. here's what he said. >> i'd love to see a shutdown if we don't get this stuff taken care of. if we have to shut is it down because the democrats don't want safety and unrelated but still related, they don't want to take care of our military, then shut it down. we'll go with another shutdown >> reporter: the president there seeming to embrace the idea of

another government shutdown on february 8th, later on this week that's the opposite, though, of what mitch mcconnell has been saying within the past hour up on capitol hill. he just said on capitol hill that once we've established the government is going to be open, which needs to happen by february 8th, we'll then go forward with an immigration debate going to structure it, in a way, he says, fair to everyone. mcconnell saying they'll get the government funding deal and then have the immigration debate. the president here seeming to suggest he would like to have the immigration debate first and shut the goth down if he can't get the resolution to that that he'd like to see another interesting moment a few moments ago at the white house was an exchange with barbara come stock from northern virginia, which has a lot of federal workers living there she and the president seemed to disagree on the idea of a government shutdown. she said republicans and democrats agreed last time was a bad idea this time would be a bad idea, too, she said. the president seemingly rebuked her and said, you can say what you want but we're not getting

enough cooperation from the president. the president seems to be in a fairly combative mood regarding government shutdown. republicans seeming to back off that and looking forward to some sort of cooperation, a government deal this week and then a negotiation on immigration after that, guys back over to you >> eamon, thank you. ordinarily comments like that suggesting a higher likelihood of a shutdown might spook investors but the dow is up 393 points nearly 400 as we just kick things off inthe final hour. >> bob pisani is on the floor around the corner here here we go again, robert. >> on the other side, in the morning we were concerned, trying to find some selling clim climax, where is the bottom? we seemed to hit it at the open. the s&p 500, that bottom, 259s 3. that was the bottom. here's the difference between yesterday and today. yesterday we saw waves of selling and lows throughout the day. we're not seeing that. we got heavy volume but buyers

are out there. you see we're sitting at session highs. same with volatility, when will that slow down we saw over 40 with the vix. that was the high for the day. we tried to move it up higher but not dramatically you can see it's down on the day. how about the volume it's been titanic inspect we're getting 400% volume on a day the three big etfs i follow. this is only 3:00 of the normal volume people are moving a lot of money around what's changed in the last 24 hours? let's talk about the big three risks. inflation risk hasn't changed. that's still out there how about political risk, what's going on in washington and the debt ceiling that's unchanged here's something that has changed. the valuation risk, that third risk factor we talked about is much lower the markets are just getting cheaper. remember people were complaining, the 345shgmarkets o expensive. historical average is 15 to 16 yesterday we were open at 17.9

today we opened at 17.2. okay, still a little pricey, but that is much, much cheaper so, the risk, at least one of the three risk, definitely lower. guys, back to you. >>. >> we'll check back in with you shortly. around this time yesterday we all recall the dow entered full meltdown mode what was behind that rapid plunge leslie has more now. >> the declines in equities and surge in volatility, we saw about 24 hours ago, can you imagine, only 24 hours ago, was not really due to negative economic news or company earnings it was the computers, hard at work one could argue they're doing the same thing today many of the quant-oriented funds had been positioned and betting on lower volatility. when that volatility increased, it unwound and caused broad selling across the equities.

plummeted in after-hours trading, was stuck this morning, wasn't able to open on time. opened around 1:30 and currently halted again according to four prime brokers that handle hedge fund flows, three type of strategies were major participants, cta, the type of hedge fund, risk parity which matches up multiple asset classes based on their volatility and, of course, volatility targeting, which is what you're seeing with the xiv there. jpmorgan wrote in a note to clients that the spike in voluntari volatility and they predicted yesterday that 2735 could be the level, that could cause computers to aggressively sell, which is what happened around 3:00 many on wall street say the market moves we've been seeing

have plenresented a buying opportunity to enter the fray. it's time for humans to take back the steering wheel from the machines and buy, guys that could be some of what you're seeing today. >> i'm going to tread carefully with this question but i'll ask anyway i don't know if you know when they halted the xiv again but i wonder if it coincides with the sudden buying we're seeing in the market. >> dow is up 450, by the way, on our screens. >> it's been on and off halted all day. i would say the trading hasn't gone on for a few minutes before they halt it again so, it's up with of those things where it's plummeted so much credit suisse, which manages it said it's going to liquidate the fund on january 20th it's something at this stage it's not as much tied to volatility as it may have been previously because it's a defunct etn as far as many on wall street are concerned.

>> let's look at the dow for a moment here. we're seeing extraordinary action to the upside almost like we were seeing it to the downside yesterday as soon as i'm writing down we're at 472, up -- we were up 500 a moment ago still flirting with that level i wonder if that's something to your question, if there's something about not having that inverse product trading. now we're over 500 points higher recoiling to the upside. we'll be asking people throughout the hour. >> we're just wondering how main street has been reacting to all this volatility. cnbc tock to the streets of new york city to ask if anybody is panicking due to the recent market moves >> they don't concern me this is very short-term. this is only a few days this has been happening you know, if this went on for a month of down 1,000 a day, it would be a lot but i don't think that's going to happen. >> the stock market will return. maybe not right away, but it will return. it was a bubble, of course i mean, everybody understand that it was riding up like crazy, like a rocket. >> i just lost a year's worth of income. >> my thoughts are a little

stressed but i remain calm because i've been through a number of market cycles and i realize time is on our side. as long as you hold on, it will come back. but i wish i hadn't had to go to a meeting this morning because i would have bought something. >> it's worrisome. i'll definitely still contribute i mean, there's wax and wanes in the stock market we'll wait it out. >> what are the pros telling clients to do with their money joining us, ed slott and rick edelman. thank you for joining us what kind of questions are you getting and what are you telling people >> the primary question we're getting is, shall i add to my accounts right now we're not seeing any panic or concern among our clients. they're either sitting tight, shrugging it off or wondering, can they invest more >> let me just point out, we said a little while ago that the credit suisse would be

liquidating on february 20th january 20th is already passed. >> good prediction. >> yes, i know so, what are you telling your clients right now? >> it's a buying opportunity >> if you can get in. >> if you can get in i'm talking about in retirement accounts those are long-term investments anyway, your 401(k), your i.r.a. this combined with the new lower tax rates may be a buying sign to do a roth conversion now. move some of that money into a roth and the rebound will be all tax-free but you have to be careful because the new tax law changed the rules for roth conversions there's no going back. so, you have to know what you're doing. maybe some dollar cost averaging into roth i.r.a.s over time to smooth it out. there's another play you can have irs recently gave us a ruling on last year's conversion so, you still have time to undo the conversions that you did in

2017 if that has tanked, maybe it's a play,like an arbitrage, to undue those. you have to look at the value and then reconvert at lower rates, at lower rates and lower values that combination is very good for retirement investors looking to push into tax-free territory long term. >> rick, you mentioned that people aren't panicking about their stocks what about on the bond side? here's a question we got on twitter. jess asks, at what point do i put all my 401(k) in bonds temporarily? what would you say to that >> oh, my goodness yeah, that would be the absolutely wrong them thing to do at the wrong time for all the wrong reasons, especially if you're talking about long-term bonds. people need to recognize that during a market decline is not a reason or an opportunity to change your investment strategy. and certainly not going into long bonds now while interest rates are rising because as interest rates go up, bond values go down. it's a terribly wrong thing to do at the wrong time that person needs to stop being their own adviser and hire a real one >> well, people tend to

overthink things, too. >> they're emotional. >> everybody says they have a long-term time horizon until they don't. >> it's like when the financial advisers ask you, they do a risk tolerance questionnaire and you say, yeah, i'm okay losing 20% it's a lot different saying you're okay losing 20% than actually losing 20%. >> let me point this out there are those who say the market looks more attractive today than it did yesterday or friday, but i would point out at these levels, these are levels we were at in early december when we were there in early december, people were saying the market was overbought at that point. >> right >> now suddenly -- >> you're absolutely right. >> i mean, that's why we have to change our perspective correctly. in other words, it's not looking back at last december because, you're right, that's silly we need to look at the december 10 or 20 years from now, by that metric we'll turn around and say, gee, 10 or 20 years ago, 2018 was a bargain that's the only metric that

really matters. >> rick, let me show you this question from frank for a moment because this has been a talking point on our network for the last day or so he says, how does the retail investor deal with program trading and flash crashes? it seems to be getting worse first of all, do you agree with his premise? what would your advice be? >> i'm not sure i agree with the premise it's getting worse but i do agree that it's virtually impossible for the retail investor to compete on that playing field. you don't have the computing power, the tools or, frankly, the attention span to be able to compete. that's why you need to stay away from that kind of ridiculous ultrashort-term trading and focus on long-term strategy and your goals it's not about a risk tolerance questionnaire. it's about your goal setting investing should be based on what goals you're trying to accomplish that's how you build a portfolio truly in your best interest. >> guys, we'll let you go back and answer your phones some more i'm sure they'll ring offer the hook thank you for joining us

appreciate it. 45 minutes to go you know, i'm just reminded a lot of people who might be trying to buy on the weakness might be running into trouble with the popular trading platforms. the s&p is up 36 nasdaq is up 117 and the russell up 17. >> boy, do we really mean it today, a lot more ahead on the "closing bell." >> announcer: the trump tax bump has helped keep investors' hopes high, but a tax adviser says the benefits could be overheating the market to dangerous levels plus, what carl icahn just said that should make you think twice about your move in this market the "closing bell" is back in to minutes.

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toyota motors also trading higher the automaker reported strong earnings this morning boosted by strong sales in japan and by a weaker yen it raised its full-year profit forecast by 10%. that stock is up 5.25 right now. >> same story for general motors, by the way, after results this morning that's been a tough stock. how about the markets broadly. another volatile day, the dow swinging much lower as 567 points then up more than 500 just in the last 20 minutes or so. could stimulus from tax reform be behind these roller coaster moves? joining us to discuss is nicholas from data trek research. >> i saw you mile when she said that are you poo-pooing the premise or - >> or that is your story >> the last 24 hours it was much more mechanical in nature. we've gone fromle playing checkers in the market, making it simple for the market to go up, to moving very quickly to three-dimensional chess where we have to worry about the deficit and what the tax reform package

will do to that on top of ak t accelerating growth to the - >> wait a minute i thought this was about an inverse vix product blowing up why does this have to do with wash >> if you look at the action from the peak of january up until the last two or three trading sessions, you've seen the rates come off the bottom quickly. that's caused investors concern. what is the interest rate you're supposeded to use to discount cash flows we've had volatility piling on top of volatility, as we often do. >> that i get. why isn't the dollar going up? >> that's a wonderful question over the near term the dollar is getting a safety bid it did bounce off the lows that weakness you see, primarily driven by the fact that other areas of the world are growing faster now than we are europe is recovering japan may actually be recovering we'll see. you have a much more balanced growth picture it isn't just the u.s. doing well anymore as it was kor the last couple of years. >> that's your macro hat what do you make of the moves

we've seen and what's happening with volatility and the way it had kind of turned into this whole huge trade and now blowing up is putting it too strongly. >> i'll put the new yorker hat on and say there's never just one cockroach. we saw the first one yesterday we're waiting to see the second, third, fourth, fifth we just saw a slice of it yesterday. >> you think there's more volatility to come >> yes we have to see what ctas do, what algorithmic traders do. >> let's say some products were inverse, in other words, they're betting against volatility - >> and leverage. >> if they are forced to liquidate, what happens to people plugging them into their models >> and how do you rethink the whole volatility approach to managing a portfolio if you don't have that benchmark to understand. >> now, is there something out

of washington that could put a pause to this, that could calm the landscape and make everybody step back and keep all of this from playing out >> everybody's waiting to see what the new fed chair has to say about the old first greenspan then bernanke and yellen put the fact the fed uses interest rate policy to help the stock market along so far the fed has been doing taking a step back i think it's healthy for the foed take a step back from the historic fed put the absence will drive a little more volatility as well. >> nothing out of the president, nothing out of -- just because that's where we started with this conversation is that a catalyst might have been putting that stick lus into the economy and anything there could -- i mean, i'm not saying he's going to say, never mind, everybody, give those checks back it's not worth the selloff in the dow. >> it's interesting to see what will happen in february because the withholding changes happen for the average worker they'll get more money in their pocket how does inflation shape up with

that flush of money into the system >> thank you nicholas from data trek research joining us here. if you just came out of the fetal position after yesterday's trade, we're up today. up more than 400 points. in fact, the dow is up 1.75% it's one of the better performers among the major averages. still ahead, you get your pepto-bismol ready because one analyst says pullbacks of 5% to 15% will be normal for life going forward. can disney power the dow the company set to report its earnings at the top of the hour. we'll speak exclusively with ceo bob a giger and how his company fared. [ click, keyboard clacking ] [ click, keyboard clacking ] [ keyboard clacking ]

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the dow is up 357 points for now. we've had tremendous volatility today. kind of moving side ways until this last half hour and now we're up another 366 points off the highs for the session. >> that's after we were up 500, so as we said, buckle up here's a check on some sectors, see what's happening under the hood today for the broad s&p 500, it's in

the red, utilities, rates, even though the ten-year has been volatile itself. materials leading the way, up 2% technology has been a stalwart amid all this. consumer discretionary up there as well. the dow is up 403 points the vix is back down so it's settling down a bit. as we said, we're still getting full sense of the ramifications. still ahead, earning season is in full swing amid all this voluntarily sti volatility we will tell you what to watch ahead of those reports and whether that might drive the next market move. we'll tell you what billionaire investor carl icahn said about the volatility. we're guiding you through the most important part of the day, "closing bell" is coming back.

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welcome back exactly halfway back we opened with the markets opening quickly 500. up 442 with broad gains more than 1.5% in the dow nasdaq up 1.3% right now time for a cnbc news update with sue herera. >> hello, bill hello, kelly here's what's happening at this hour we begin in asia where a magnitude 6.4 earthquake struck near the coast of taiwan killing two and injuring at least 144 more the ground floor of a local hotel caved in and people are believed to be trapped inside. this is the second quake to hit the island in just the last three days iranian president rouhani says the country's establishment has heard the voice of demonstrators who staged protest rallies last month on a news conference on the 39th anniversary of the islamic revolution, he told reporters that the people's voice is being heard. israeli prime minister

netanyahu and security cabinet ministers visiting israeli-controlled parts of the golan heights, which overlook syria. israel has been worried about iran's growing military presence in syria and lebanon, causing netanyahu to say syria is ready for any scenario. and pepsico says it is not developing lady doritos. a line designed specifically for women. this despite online speculation that it was going to produce them it was trending on social media after pepsico's ceo said women don't like to lick their fingers after eating a bag of doritos. so, there you have it. that is the news update at this hour >> i hadn't even heard that. >> i have no words. >> oh, yeah, it was trending on social media this morning. >> i like cool ranch, personally never thought about the mess thank you, sue >> see you in an hour. let's get to our "closing bell" exchange joining us michael joins from

riverfront investment group, andy capran, along with steve grasso from stuart frankel and rick san stelly at the cme in chicago. steve, what's your first plush thought about the kind of action we're seeing today after yesterday's historic drop? >> when you haven't seen volatility for such a long time and then you get a dose of it, a large dose of it, it's shocking to all of your senses. so, i think everyone's trying to absorb this. everyone's trying to make sense of it. but the bottom line is if most people think nothing fundamentally has changed, it was a deleveraging, a risk issue. if the fundamental story is still intact, then the buying opportunities should still be there as well. >> same question to you, rick, veteran trader the kind of volatility we've seen today art cashin says in his 50 years what he has seen is this kind of action signals the market searching for a bottom of some kind what do you think?

>> i think with respect to today's action and how we're trading, yes, i think we're trying to find a bottom to the slight correction we've had in the big picture. i also think you can take a step back and look on an even larger picture. i think you get the highest volatility at tops and bottoms even though i agree, totally, and i would be less surprised to see us go up a couple thousand points over the next week or two versus going down, but i still am not sure. we've broken the m.o., the fingerprint of the market that lasted for all of last year has been broken. and leslie picker has done a great job showing some of the risk parity programs out there which simply are that you owe more stocks when vol is low and try to control that when vol goes up. there's a variety of different permane areas of how that works. i think that's over. the one thing we can learn is when all the pieces of the puzzle don't fit correctly, it's

not going to be the same as other last times the way the interest rate complex, domestically and globally is acted today and around the globe the way foreign exchange rates behaved didn't much the mini crashes or big corrections of the past i would still be a little concerned that we don't want to just think that the controlling conditioning that many traders get -- today, for example, when we opened lower, popped up, went back down. it wasn't until we popped up and stayed up because many traders remember we have broken this pattern of steady eddy it's going to take a while for that conditioning to wear off. >> andy, what do you think the market is telling us here? >> i think this is more than a garden variety correction because we haven't seen one for a while. the biggest reason is because some people thought they were more clever than the market. if you're playing poker and you think you have everybody else

beat, you're about to lose a lot of money these clever folks were making strategies they didn't get, making the vix fall to its all-time low a few weeks ago what happened, the options market taught them a very expensive listeesson. >> michael jones, you have the luxury of being hundreds of miles away from wall street in richmond there does that change your perspective? are you as -- do you feel the same emotions as we do most of us here are sitting at ground zero on wall street. >> it gives us a little perspective. i'm sure it's an exciting day to be on the floor, though. from our perspective, whether the market -- the market's been searching for where it can find support. it is the 50-day, 100 or 200 and none of that is ultimately important because this market will find support. what the message of the last week of volatility has been, one, as andy said, clean out the

people too smart for their own britches, but more importantly, as we rode in our 2018 outlook, the combination of faster growth and accommodative central banks that rocket us higher with no volatility in 2017, that's over. this year grur going to get the growth but central banks won't be as friendly the cocoon of zero interest rates and quantitative easing is starting to dissolve and that means we'll go back to normal markets with normal 10% and 15% corrections as a part of every trading year this is -- if you believe in the story, and we do, then this is a buying opportunity >> i hear rick santelli applauding there in chicago. go ahead >> i was going to say as we watch the dow climbing up now 502 points once again. steve, do you think everyone sounds too comfortable too complacent we were talking about how the noise on the floor -- it got a little noisy yesterday but nothing you would think for a 600-point drop. >> i think it is a shock, as i said before, to the senses no one is taking it lightly on

the floor or in the financial community. i think that when the vix dipped below 30, that was a buying opportunity and that inverse correlation between the vix and theequity market when you see this extension between the to markets, when you see them spike higher and lower, people start to take notice. so, if this lasts for a couple more days because this deleveraging doesn't just happen in a one or two-day event, it's a longer time span than that, but once we get through that stage, and the fundamentals are still in place, you will see the buying opportunities and the sectors that did well will do well again. >> can i point out something quickly, we were at session highs back 532 points. the vix is above 30. it's red but still elevated, climbing as stocks climb. >> it's still elevated but when you look at where we came from, when you look at the historic highs in the s&p, we were at

2882 and now 2680ish or thereabouts. you've lost 200 handles in quite short order. people are a lot less rich than they were a couple of days ago nonetheless, this has been historic performance for the bulls. with a tailwind of lower taxes and with higher growth, you're going to see the markets settle into a higher rate environment. >> last week we said, oh, boy, we're up to 30 today we're saying we're down to 30 it's amazing thank you, guys. appreciate your thoughts on today's market action. just over 20 minutes to go here we also have disney stock a little higher with the earnings coming up after the bell dow component we'll talk to bob iger about the results as soon as they're released. we want to go to morgan brennaman, kennedy space center, waiting for a major rocket launch >> reporter: kelly, that's right. this is seven years in the making this is the maiden flight of spacex's falcon heavy. if everything goes to plan,

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earlier today on "the halftime report" scott wapner spoke with carl icahn. here was carl's take on the market selloff. >> eventually, this is a little rumbling, a little fault line. i think this market will bounce back probably. you see the vix going up to $50 on the spot market, it's almost insane >> a moment ago, the dow was up 600 point while in the break 18 minutes to go michael santoli is here, senior markets commentator. carl icahn had a lot to say about the role these volatility products may have played in this what do you think? >> i think the people in the market decades have suspicion about these financially-engineered products. if you remember carl icahn had some unfriendly things to say about high-yield bond etfs a few years ago, thinking they would be the epicenter of some disaster didn't really happen but i get why you see these really outsized moves in indicators that normally were kind of

gently within a range and say, this is some kind of extraneous influence. it's kind of the tail wagging the dog on some level. on a short-term basis i get that. >> eerily similar to portfolio trading, cdos -- >> to some degree. >> the bad guys of the past that we tolerate until they cause market dislocations and then we point at them and say, what are they doing here? >> true. the question is how pervasive did the use of these strategies were did people really think they were getting something than what these products could deliver that's when you run into trouble. portfolio insurance was a free lunch. it's a little more of a side show right now but you saw the dramatic impact it could have when you have this radical unwound. >> i don't think this is the last we've heard wells was find by finra back in the fall for mislabeling these various volatility products. what happened now?

fortunately, the damage is pretty contained so far. >> there is going to be an absolute -- an inquest that goes on with lawyers and everybody else in terms of how this whole episode happened yesterday after the close, quhapd to the vix to essentially knock this product out of the box. by the way, it's not over. this is kind of the visible piece of a strategy that exists elsewhere. also, if we rally, you know, 1,000 points one day and the vix gets cut in half, it's the other products that bet on higher vix -- >> you'll have the problem. >> that are going to have an issue. >> former s.e.c. chair harvey pitt next hour i'm interested to see what he has to say coming up. spacex is getting ready to launch the falcon heavy at the kennedy space center in florida. private sector's most powerful rocket ever to make it to a launch ad. >> 30 seconds, morgan. >> reporter: that's exactly right. less than half a minute right now from lift-off for spacex's falcon heavy

this is a moment where potentially could get made most powerful rocket to attempt a launch since the early 1970s if this hits orbit, all three boosters, spacex will attempt to recover them that's a big if. there's a good chance this rocket explodes. we'll take you to it right now as it fires up and gets ready for lift-off >> reporter: guys, you can really feel this in your bones right now. the ground is shaking. 5 million pounds of thrust

the equivalent of three falcon 9s put together. history is being made. >> i hate to even talk over it it's really -- it's something to behold. >> it's so majestic, even from hundreds of miles away by the way, this is the one that's got elon musk's cherry-red tesla on board. they're launching it into outer space there. here we go. >> we're going to keep an eye on this. >> so far, so good. >> as it continues up into space. >> falcon heavy made it. and the dow is making it, moving higher as well today >> we're going to keep that on our screens as we talk more about this market. jeff, man, what a moment you know, hopefully it continues to go off without a glitch there. i heard they wanted it to have a few minor glitches to learn about it.

>> as a learning experience. >> not major ones. >> what kind of learning experiences have we had from the latest market volatility, mr mr. saut >> periods of volatility are followed by periods of increased volatility andrew and i have been writing in january that our short and enter media models targeted mid-february as first sign of downside voluntarily stilt there's a three-session time variance in there so the market started down three days before february 1st so, the decline came as no surprise the magnitude did surprise us. >> more to come? >> typically what you get here, bill, is you get a climax selling low, which is what i think we got, and then turning tuesday. this is what happened in the 1987 monday crash. again, in the 1989 monday crash. you get a tuesday turn the market rallies for a day, day and a half, maybe as much as three days then if a picture perfect -- it

comes back down and tests the recent reaction low and you get a double bottom. i agree with carl icahn. i think we're in a secular bull market and you'll have a chance to buy stocks again. >> that is the way the playbook should go, jeff. i wonder if you actually think there's any relevance to the overnight low in the futures we've been so all over the map in terms of the way that things have been whipped around is that something we'll have to keep an eye on in terms of deciding when we've -- when we tested it? >> the overnight trading is thinner than during the session trading, so the e-mini s&p 500 futures were down over 12 handles overnight last night that's what gave you to woosh to the downside this morning. it looks like a picture perfect recovery so far, but i don't think it sticks. i think it comes back down

we get a double bottom and then you're off to the races again. >> what do you think about interest rates higher rates better for the rally, lower interest rates? what's going on there? >> i just spoke at a lunch at rivera country club here in miami. the ex-head of the federal reserve down here, i talked to juan for a while and we are both of the that interest rates are going to gradual, i mean very gradually, edge higher. this is supposed to happen as the economy strengthens. >> i've just been told -- art cashin just told us the market on close orders are 2 billion to sell, but as they put it, nobody on the floor believes that for one second here. we have come off the highs we were up to 600 points a little while ago but now up to 498. we're holding onto most of these gains right now. >> just back to the point you were making about interest rates there, washington policy, fed reactions here, what are you looking for at all for -- you know, after the last couple of

sessions we've seen? >> i think you're going to see interest rates go up but slowly. i think you'll see monetary policy normalize i think the economy, as identify said before, is stronger than a garlic milkshake you saw the federal reserve of atlanta come out they keep upping their gdp estimate for this year >> jeff, let's just say the atlanta fed gdp which printed 5% in the early estimate was anywhere in the ballpark was the market not having a panic in advance of the possibility of some kind of an overheat and would that exacerbate it? i guess the question is, how good is too good >> i will tell you the market would set up to go down and you can pick your reason for why it went down? the fisa memo, the nafta stuff, the talks have stalled, back up in interest rates. but earnings keep going up before the corporatetax cuts, standard & poor's was at 143 for

this year s&p 500 earnings, now up to like 154 and change. and ubs a week or two ago put out a number of 157. i think earnings are still going to go up from here we're trading now at 16.9 times this year's estimate >> jeff, what are you a buyer of here >> i still like financials i think they are cheap, vis-a-vis the overall stock market i still like technology. and i like industrials i would stay away from the defensive names, consumer staples, utilities, telecommunications, names like that >> all right jeff, thanks for your time >> thanks, jeff. >> you bet >> jeff saut from raymond james. we're gearing up after bell, disney, chipotle snap moved 17% in either

direction on average after its results. over the last eight quarters, chipotle on average has moved 6% disney seeing a move of 2% to 5% over the past eight quarters even for the big cap it's been swinging around a lot. julia boorstin will have an exclusive interview with bob iger we'll get his reaction to the earnings he can talk about what he sees going on in his business as soon as they cross. mike, so timely given all of what's -- even when we were talking about super bowl ratings over the weekend, the declines there, and some rumors that even our parent company might try to make another go at fox. >> absolutely. plenty going on. and also the stock like so many is in a fascinating position right now. basically came off a cliff from recent highs but still above where it was four, five, six months ago so, what i'm mostly interested in, kelly, is just how the market pays attention or doesn't to corporate news. i mean, right now we're in one of those zones where can it really capture people's focus? and so we'll see if that's the

case by the way, gm was up today. >> that's what i was going to say. >> off decent numbers. >> this is not -- gm is not a stock on its own is doing so well that it doesn't matter what's going on with the market. what did you think about the fact it managed to buck that trend? >> the stock was hammered into it that probably helped in terms of the reaction but i think it's on the -- on the margin it's encouraging when you basically see that investors can at least for a while get refocused on the corporate fundamentals, which was the whole story going in before we had this market break. >> this morning it was also the health insurers. they were raising things to the tax reform tapestry, even coach did pretty well, dunkin was a beat. >> i think we're at least 60% of the way through earning season the majority is out, is done i don't want to say it's going to be all about corporate news and stock picking from here on out because this market is still kind of dealing with the tremors of what happened and it's whipping around based on things that are really not

about the economy. >> and mack co-data, which has taken a backseat to earnings a lot of people say the moves we see go back to friday morning's job reports, inflation concerns, rates moving higher. the trade gap today probably not a big one, but anything about inflation, anything that talks about the atlanta fed readings on the economy feel like they're the market move -- >> that's the raw nerve right now. that doesn't mean we're going to be in panic moeld but it's the conversation happening right now more than any other about where we go from here in terms of the economy and the market. >> as we showed you the sectors there of the s&p 500 the underperformers today, those rate-sensitive ones with the dow up 503 back to bill on the floor. >> thank you we'll let you get ready for the earnings at the top of the hour. we have a whole slew we'll get back to normal, if that's possible. >> the market actually looks

fairly normal. sector leaders, semiconductors are doing well, some industrials and materials are doing well the ten-year has come back a little bit. >> the intra-sensitive sectors are lagging. >> telecom, real estate. but that's a normal looking market we're resuming concerns about potential higher interest rates. we had a one-day move down in yields >> so, i'll ask you what i asked jeff saut, what have we learned? in the last 24 hours yesterday we stood here and down 1175 points. today we're up 500. >> we've learned there are buyers at a certain level below the market in this case it's about 10% down below the market, number one number two, what's changed political risk hasn't changed. that's still there the overall issues around inflation haven't changed that much one thing that has changed is valuation risk we said the market's pricey, too expensive. well, we were -- it's cheaper now. market was 18 and a half times

multiple a week ago. today we open and it's 17 -- >> i get your point but the last time we were - >> you wanted me to say nothing's changed. >> no. the last time we were at 24800 we were on our way up and people said the market's overbought it's too expensive now we're back down to 24800 and people see value. >> that's the way things work. >> i know, market psychology and the dollar is not -- if you're expecting a higher inflation, as some are saying, maybe this is a mark psychology that's switching from disinflation/deflation period to inflation, the dollar is not participating. >> the dollar has been moving down it's stabilized and looked up until recent volatility like it wanted to move to the upside there is a big debate about why the dollar isn't going up in a period where we're supposed to be seeing higher inflation the obvious argument is either there's not real dramatic inflation, the dollar is reflecting that and we're

misreading the inflation signals. that's one interpretation. >> now, these leveraged volatility vehicles we are pointing fingers at yesterday, how are they doing today we've had start and stop all day because of the volatility, because of liquidity problems. >> one competitor that's being liquidated opened earlier this morning, down 80%. it's still active. here's the fallout from all of this it's true these leveraged products, these volatile products are a very small part of the market. i don't think they have any systematic risk. that's the key issue for us. is it going to affect the markets? i don't think so but i think this is a big enough issue for regulators to start looking at it. we saw the cboe down today they make a good part of their revenues from the vix products i think there's concerns out there, regulators will take a closer look. i'd be happy with that this is a overall part of the etf, etn universe, leveraged

products, exchange traded notes and people wonder, do we fwheed all that risk? professional traders, fine but i think they'll tight continue the regulations about who should possibly be owning -- >> jim cramer made that point yesterday, carl icahn made it today. you wonder if the s.e.c. is participating and watching this carefully. is this a warning shot they should be heeding -- >> absolutely. >> -- to take a second or third look at some of these leveraged vehicles right now. >> you watch there's going to be lawsuits over this closing of this fund and, of course, the firm that put it out had all sorts of disclosures. i'm quite sure they were very thorough but that kind of attention, a big closing like this attracts the attention of regulators. i think it's fine. the plain vanilla etfs we talk about every day, the spy, russell 2000 don't have any problems they trade fine. they're the ones that have 99% of all the money going into them the etf business wants to keep it that way. if that means more regulation about this tiny little group of

leveraged and inverse exchange-traded notes, products, and volatility products, i think the rest of the industry is fine with that. >> i think tomorrow's going to be very interesting. now, yesterday, we were all talking about we'll probably see more of a selloff in the open. we didn't know what would happen after that tomorrow -- now that we've had a huge selloff, a decent comeback, what happens tomorrow? i wonder if earnings have anything to do with that we have disney coming out today. >> this was a volatility-driven event. when the markets started dropping, nobody had any protection below the market very much we talked about why the vix hasn't moved in so long, why it's been at 9 for so long because nobody went out and bought a lot of protection suddenly when we started dropping 2700, 2650, nobody had protection they all went out and bought it. now i think people are more alert. i think it's terrific. they'll be a little more aware of the potential drops

and i think we'll have elevated vix levels but i don't think we're going to 60 or 75 on the vix at this point. >> we gained back roughly half of what we lost yesterday. it's a start, i guess up up 575 points on the close we have earnings coming up, disney and the exclusive interview with ceo bob iger on the second hour of "closing bell" with kelly evans and company. see you tomorrow, kelly. >> thank you welcome to the "closing bell." i'm kelly evans. after the dow's biggest one-point drop in history, today the dow gaining back 569 on the bell, closing just shy of 25,000 we first punched through 25k a couple trading days into the year today a little rebound better than 2% for the dow and the nasdaq today the s&p 500 up 1.75% to close at 2695 the nasdaq level 7115.

the russell 2000 is lagging with the 1% gain, still puts them back above 1500. take a look at the volatility index. today the vix dropping but still at a high level. flirting around the 30 mark there and we'll continue to keep an eye on it and talk about the fallout that's had on so many different volatility products and on the markets themselves. we also have earnings. it's a big hour and julia boorstin is covering disney earnings and sitting down with carl icahn we'll see you in a couple minutes. we also have our market reporters at the ready to recap today. bertha coombs and bob pisani let's walk through today's big rally which look the like it

might be another selloff with dom chu. >> i remember being on with becky quick and andrew ross sorkin on "squawk box" and he with were looking at a 500 to 6700-point drop at the opening bell and we saw 567 points at the opening bell let's take you through how that turned into a huge rally day for stocks overall as we take a look at the dow industrials, up 568 points, that means from low to high you're talking about that 1100, 1200-point swing we saw during the course of today. you can see as we see that opening dip, a nice rise right up after the bell to around 10:30 in the morning only to see this up and down move throughout the later course of the morning and then a nice rally in the afternoon. only to say, oh, it's. not going to hold. we won't see this rally into the close. we saw it dip down to 80, 90, 100 some points only to see the rally in the last hour or so of

trading. all told, we had a huge move from low to high also want to point you to three stocks that were a huge part of that story today boeing, home depot and goldman sachs. three of the biggest point contributors to today's move in the dow overall. a handful of stocks, six or seven, accounted for the bulk of today's action we'll see if the trends continue into tomorrow's traileding or if we get a pause in the big rally higher, guys back to you. >> as robert points out, this is the first time the dow has been up and down 500 points in the same trading session bob pisani with more. >> there's a robert um quote for you, my old producer we started with a selling climax and ended with a buying rush take a look at the s&p 500 the low was right at the open, 2593 we ended up at 100-point move in the &p it was rather remarkable started ten to one down stocks

and ended even on the day. the vix, again, the low print was -- the high print was on the day, we were in the 40s at the open quietly moved down throughout the day, ending down about seven points there the important thing, what's actually changed in the last 24 hours? bill was just asking me a minute ago. inflation risk, we keep talking about those concerns that hasn't changed. we don't have any headlines. political risk hasn't changed. the same washington issues, with the debt ceiling might be raised the thing that's changed is the valuation risk the market is cheaper than it was just a few days ago. we keep talking about the pe multiple, historically high but yesterday we closed 17.9 at the open today we're at 17 or so. remember everybody who kept saying, oh i'd love to buy the market 10% down because it's too expensive, if it drops 10%, i'm a buyer. we dropped 10% and it looked like a whole bunch of buyers

materialized maybe there is something to that brag i'll buy 10% lower. back to you. >> you have cboes down 10% in one session today, bob bob, thank you let's send it on to bertha coombs with the movers on nasdaq. >> apple today closing near the highs of the session and crossing back above that bearish indicator, really flirted with that all day a two-day chart, you see the inverse action on apple. yesterday it closed near the lows today we're back up near the highs. and that really carried over to one of the sectors that's been pressured by apple and concerns and apple cutting back on chip demand we see today big moves when it came to chips. particularly skyworks and micron both stocks are up for the

month. they're still in correction territories, nonetheless, though a lot of the stocks vaebt regained their losses since the 1st of february. uncorrection, i'm calling it, some stocks down 10% have moved out of correction territory. those include some of the f.a.n.g. names, google and netflix. and vertex, you can read about their drug trend names online. >> thank you, bertha we had a lot of earnings coming down the pike. disney's results are out let's head to julia boorstin for that report. >> that's right. disney earnings per share beating expectations the company announcing earnings of $1.89 a share, up 22% from the year ago quarter and beats expectations of $1.61 per share. i have to say that that earnings per share is excluding a 1.6 billion one time tax benefit associated with the federal income tax legislation

if you were to include that, the earnings per share would be $2.91. if you want to do apples to apples, it's $1.89 versus the $1.61 expected and up from $1.55 a year ago revenue coming in a hair lighter than expectations. it's up 4% from the year ago quarter. analysts were expecting $5.48 billion. you see disney shares moving 1.5% higher. if you want to look at the divisions driving there. park and resorts beating expectations on the top and bottom line. revenue growing 13%. parks and resorts operating income up 21%. studio entertainment just a hair lighter, as home entertainment fell short of expectations but the box office did well. commentary on media networks, lighter than expected on advertising revenue. we have here to talk with us, disney ceo bob iger.

thank you for joining us to discuss your earnings. parks and resorts, what's going on there to really drive this upside in the top and bottom line >> it starts with success across the globe. particularly in some of our international -- in one particular international park in resort in paris that had a number of years when the numbers weren't that good. we've had record revenue, record bottom line. it's an across the board success story. it also includes our cruise ships which had a great quarter. >> there's always a big emphasis on your cable networks, business, particularly espn. you see networks what's going on there and what's the health of espn >> there were some ins and outs in this quarter, particularly when it involves some high-profile events like the college football playoffs. if you look at the underlying business, what we've seen is

improvement when it comes to sub losses they abated somewhat in the quarter. that's a good sign particularly important or encouraging -- or noteworthy, something that is more noteworthy, i'm sorry, trying to get this out, is the fact that the adoption rate of new over-the-top basically digital mvpds has grown significantly. and that's important for a number of reasons. first of all, there are signs that young people are coming into to multichannel television. people that were once called or thought to be cord nevers are starting to adopt to packages less expensive hulu, about $39 a month, fewer channels but more mobile-friendly. that's a very good sign. espn as well as our other channels are on all of those services and packages offered. >> for your overall subscriber numbers, are you seeing the losses in traditional packages being compensated for by growth

in the digital packages or have they not compensated for it? >> we've seen continued losses on the nontraditional side or traditional platform front but they have been eclipsed by terms of growth -- they net down to more positive story because of the growth in the digital platforms, the over-the-to the platfor platforms. >> so your subscriber numbers are positive >> they were not down as much as the quarters before. there was still a decrease, a net decrease, but the decrease among the more traditional services was greater but the increase in the nontraditional or over the top services was significant. >> you're about to launch your first true over the top service app. what can you tell us about when it's going to launch and how much it's going to cost? >> some time in the spring we're going to launch a completely

revised and basically redesigned espn app that one app will have three primary features to it one, scores and highlights the scores and highlights will be with better audio, better video, better user interface as well as more customization and personalization. in addition to that you'll be able to watch on the same app streamed live espn networks, provided you are a subscriber to one of the services, traditional or nontraditional. then the third feature is a plus service. we're calling it espn plus, that will include an array of live programming that is not available -- live sports, live sports events, not available on the current channels that's by the thousands. in addition to that, a lot of other programming like the 30 for 30 series. >> can you tell us how much that's going to cost >> we're announcing today that

will be for $4.99. >> breaking news, $5 very interesting we also have to ask about your fox deal, of course, which you announced a little less than a month ago. where does it stand now? how close are you to closing it? >> where it stands is -- as you know, when you do a deal like this, you immediately essentially apply for regulatory approval in multiple jurisdictions around the world that process is under way right now where we are filing in places that we must file that process will take a while as we said when we closed the deal, we don't have much insight in terms of the timing of that except we're following basically the rules of the law we have to follow when something like this occurs and we were encouraged when we made the deal about the prospects for regulatory approval and we remain that way. >> you're still on track for 12 to 18 months, you think? >> yes there's very little news there except we spent the last six weeks or so, you know, learning

more about their businesses, in particular i've been meeting with their senior executives knowing what we know now, we're more encouraged by the assets we're buying and the talent that comes with it. >> are you at all kerpd about another buyer, say a comcast, who put in another offer, trying to come in at a higher price >> idon't have a reaction to that i'm not privy to any information that would be newsworthy in any way. if you've got a question regarding what their intentions are, you can ask them. but we don't have anything to say. >> just a final question about the tax regulatory reform, you announced $1.6 billion impact. you also announced you'll be giving bonuses to employees and investing in education what else is changing? are you investing in parks and rides here anything we should know? >> we've had a good track record of investing in organic growth, parks in particular. i think the results we just announced are the result of

those ininvestments. we also increased our dividend nicely and we bought back a significant amount of our stock and we have been acquirerers of other business, lucas film, pixel, marvel and now 21st century fox. i think you'll see a blend of investment going forward that will be somewhat similar to the way we've been investing before, at the size of this acquisition suggests we won't be acquiring anything of any significance for quite a long period of time. the fact that our tax rate goes down from roughly 35% to 24.5% is in fiscal '18 and down 24% thereafter will give us access to more freecash flow. i'm guessing that will result in more investment but we haven't determined where that will be. >> you will have to keep us posted i'll let you go to your conference call. bob iger, ceo of disney.

thank you for joining us back over to you. >> julia, thank you. the shares still up 0.5% they were initially about 1% higher misses in media network we can talk about chipotle earnings just crossed joining me, by the way, michael santoli is here, so is cnbc contributor dennis berman from "the wall street journal" and courtney gibson from loop capital. welcome to you and thanks for joining us let's get a look at the dow. leader, dow, dupont, exxonmobil, a laggard. it was true for the selloff. true for the fourth biggest point gain in history, 567 higher for the dow on the bell on the s&p 500, trip adviser surged again one of two stocks in the s&p that were even positive yesterday. sebo trailed we'll come back to that.

zufd when it comes to disney, i think it's on a net-net pretty reassuring things are on the path people hoped. slight softness in media networks is not what you want to see, but bob iger saying the rate in decline in traditional cable subs has maybe been ebbing, which is good. i think in general it's okay and the my espn app, got new details on that. no blockbusters. i get why the stock isn't moving too much market wide, we bounced where we had to. you have to keep it in context we regained today a little less than half of yesterday's losses and about 20% of six days of losses this was a bounce but it was really -- nothing like an all-clear. you have to see if the market settles down in the coming days. >> snap, as you can see on your screen, those earnings are crossi crossing let's get deirdre with those numbers. >> we are seeing what looks like

some nice numbers from snap. that is sending the stock surging in the after-hours up presently nearly 30%. smaller loss than expected of 13 cents versus the 16-cent loss the street was expecting on the revenue side a beat as well $285.7 million versus $252.9 million. global daily active users, bigger than expected jump to 187 million. the street was looking for 184 million. remember, this is the number that majorly disappointed investors last quarter higher revenue translating into a bigger average revenue number. the previous quarter at 157 versus $1.36, which was forecast last november snap rolled out a redesign of its app to make it simpler to use in prepared remarks to investors released with earnings, ceo says it will provide a strong foundation for the evolution of the business says it separates social from

media and pleased with the initial results. he's also addressing in those remarks what analysts were concerned about with the advertising strategy, which is from direct sales to auction model. saying over 90% of snap ads were bought programatically in q4 so the auction transition is largely behind them. investors happy to hear that we'll be on the earnings call at 2:00 today, in a few hours, 5:00 p.m. eastern ahead of that, we'll be talking exclusively to snap's chief strategy officer kelly? >> holy cow, we have to talk about snap it's up 25%. what do you think? >> i'm personally a huge fan of facebook i still believe facebook will likely eat snap's lunch in the long term. if you're holding this, take the pop and get out.

i like the redesign, candidly, they decided to go with. but if i'm investing my ad dollars, i'm not giving them to snap i'm giving it to facebook and leveraging it across their platform and google. i'm not buying ads on snap. >> what do you make of this with the shares up 28%, 29% after those results? >> as we know, happiness is a function of expectations and there the expectations were pretty low after some pretty bad quarters to put things into context, i think snapchat has 1% of the online advertising market whereas facebook and google combined have roughly 60%. so, again, we're talking about -- >> it's a base to grow from, dennis >> a lot of market for them to capture. >> it seems incredible that a platform with 187 million is small but it is small compared to the facebook network. i think that the world is rationalizing, perhaps, a snapchat that's not as troubled as it did appear the overall picture remains that

facebook and google continue to annihilate their competition that's been shown in the stock prices >> snap up 25% on those results. i take your point about expectations let's get to kate rogers with chipotle numbers. >> the stock is running not nearly as much as snap we'll take you through the numbers. eps a two-cent beat reporting $1.34 adjusted for the fourth quarter. the street was looking for $is.32 revenues right in line at $1.11 billion for the quarter. comp store sales a slight miss street was looking for increase of 1.1% came in at 0.9%. guiding comps in the low single digits for 2018. full year 2017 same store sales rose by 6.4% they also mentioned affected federal corporate tax rate will be between 30% and 31%

their ceo is on his way out. he mentioned the ceo search is still ongoing. they're making progress on that front. in 2018 they'll be focusing on digital catering and the overall experience for guests. the stock is slightly in the green. we should mention year-to-date up around 6%, trailing only domino's in the fast food space. back to you. >> thank you chipotle slightly weaker we'll keep an eye on that. gilead's results are out meg joins us. >> it was a beat for gilead in the fourth quarter, coming in as $1.78 versus estimate of $1.67 revenue at $5.59 billion versus estimate of $5.4 billion we look at the health of their hepatitis contract franchise, in line with estimates at $1.5 billion total versus estimates of $1.47 billion the stock is down right now, though, because they diplomat put this in the release. if you look at the slides up

ahead of their 4:30 conference call they gave 2018 forecasts for that hepatitis c franchise of around $3.5 to $4 billion for 2018 that's short of the $4 billion the street was looking for the company breaking out a lot of expectations for taxes in terms of 2018. they say their tax rate will be 21% to 23%, basically in line with expectations. they say they expect to repatriate $28 billion within this year. they are taking a $5.5 billion charge in the fourth quarter related to tax reform, not in the adjusted eps numbers we gave you. the company raising their dividend by 10%. you are seeing gill yard weaker, down 3%, probably because of the 2018 hepatitis c forecast. back to you. >> thank you down 3%. disney was fractionally higher at last check. chipotle with a 25% or so pop in the last couple of minutes dennis and courtney, i want to circle back to you in the broader markets.

we should show everybody how many points we have traveled >> it's exacting >> what do you think is going on here what are you talking about >> well, we like to put it in context. again, if you thought 24,000 was a crazy mark to hit at the beginning of 2017, i can't believe we're at 24 or 25,000 on the dow, you have to put -- the media -- people who don't watch krnsz, kelly, they focus on these point drops. it could not keep going the way it did i think bob pisani was talking about people buying going naked. seems like a healthy sort of -- we're not in full correction territory but it seems like a healthy reminder this can't go on forever in the way it has for the last 12, 13 months. >> courtney, are you looking around and kind of picking things up, opportunities created by the selloff now, of course, we're on our way

back up. what do you think is going on here >> i think that's absolutely the case permanently yesterday i looked at it like some of the names i loved went on sale i decided to pick them up. today our clients were absolutely doing the same thing. i think throughout the day there were folks looking for dips in names they actually liked. you saw them picking up those names, putting them in their portfolios and keeping them. we might see another dip this isn't over by any stretch of the imagination but i think folks savvy enough to go in on the retail side and on the institutional side came in and decided to pick up some great names they saw there >> one last thing. it seems to me the big intellectual names remain hanging over this market is inflation coming in a real and substantive way and is the fed behind the ball in reacting to it that still, i think, a lot to be learned about that

>> absolutely. thank you. there's a lot more ahead on the "closing bell. >> announcer: it's a full day of big earnings movers. we've hit disney and we're also watching chipotle and snap closely. plus the qqq we're talking big cap after stocks like amazon and alphabet, nvidia all took big hits the "closing bell" with kelly evans is back in two minutes [ click, keyboard clacking ] [ keyboard clacking ] [ click, keyboard clacking ] ♪ good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours. talk to one today and see why we're bullish on the future. its technology was engineered (beeping).

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kelly, strong set of earnings, 69 cents adjusted versus analyst estimate of 63 cents driven by cloud security services. nearly 8% rise in quarterly

revenue. if you look at sales, 663 million. the estimate was for 649 million. the company also says media platform grew faster for internet traffic as a whole and looking at shares up 5% in extended trade. >> thank you, seema. let's check on chipotle, it's higher and lower after reporting its results. kate with a recap. >> take you through this once again. slight beat on eps at $1.34 adjusted for fourth quarter. comp an increase of 0.9% for the quarter. opened up 483 new locations. same store sales grew by 6.4% in 2017 for 2018 they're guiding for comps in the low single digits for the year and mentioned their effective tax rate should be between 30% and 31% thanks to

tax reform hoping to open between 130 and 150 new restaurants in 2015. their ceo search is still ongoing. steve els is outgoing. he says this year they'll be focused on digital catering, overall guest experience and making progress on that front but no news other than that. back to you. >> i was there for lunch kate, thanks joining us for more on chipotle's results with stock up 1%, is nick from webbush securities thank you for joining us remind me where you stand on this stock. >> i'm neutral i think we need to wait until the middle of the year to see their stuff step up or down to see meaningful results. >> what did you think, anything jump out of you? >> we have to see the comp in january. that's the number one driver today. ultimately we need to know who the ceo is and what his plan is. whatever they say now is irrelevant until the new ceo comes in and tells us what his plan is.

>> i just wonder if chipotle is flat, is that the new up >> it's good enough to get people to wait it out. the stock still struggles. it's still a 30 times multiple on this year's earnings and that's after coming down a whole lot. the consensus estimate this year, $10 a share, is two-thirds what the company earned in 2015. it's a long road back. the question is, what's going to get investors excited enough to fix it >> what would get you excited, nick >> i would need to see a credible plan. once a new ceo comes in, lays out a plan, we'll see what he says i think there needs to be a need to concentrate on your level of margins. they're a 2 million store and they need to maximize margins on that. >> the margins actually were a miss in the quarter. the restaurant margins, if

that's what you're saying you want them to focus on. thank you for joining us chipotle up two-thirds of 1%. let's talk about the volatility in the markets. it's the word of the day for the day, the month, the year, for that matter. we'll look at the impact of volatility and trading the last couple of sessions and a former regulator to weigh in on the viability. with snap's stock up about 28%, we'll look at how it will fare against other social media nas.me where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do.

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risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. welcome back here's volatility index, there are cboe shares. the vix soared over 50 today in wild trading as two institutions shut down products tied to volatility bets. then blackrock warning customers about buying into such products. lesscy picker joining us. >> collapses emblematic of some of the most famous events in financial history. the focus is on two securities whose purpose was to bet on the calmness of the markets. in exchange-traded note, ticker xiv, has crashed, coming after a spike in volatility yesterday triggered concerns that the etn would need to liquidate.

credit suisse gave notice the etn's last day of trading would be february 20th today xiv continued the slump that began in yesterday's after-market, at the etn was halted several times before closing almost 93% lower another security had a similar fate, though ticker svxy. that security is also betting against volatility but it's structured as an exchange traded fund by pro shares it won't be liquidated, but it's value was also down today, more than 30% both have raised red flags among many in the market, including the largest asset manager in the world. blackrock put out a statement urging regulators to classify other exchange-traded products differently than plain vanilla etfs, kelly. sdmrootd we're sort of learning a lot about this, but at the same time, it's interesting because we -- it's not like this was a secret, mike. >> not at all.

>> it wasn't a secret but it also -- we had spent so much time talking about different parts of the market, bitcoin and all this i just don't know now where that leaves people who were trading it was one of the most popular. >> i think the idea is, and if you look at -- earlier looked at cboe, the stock of the cboe, down a lot because people just assume the entire realm of volatility trading has peaked for now in terms of volumes because this is now getting so much notice. the xiv -- look, these are literally in the prospectus they're designed to go to zero over time. that's structurally the way they operate. they mimic daily moves i will say the one thing about them is they're more bought than sold in other words, it's not like your broker dials you up and says, hey, you really need some of this stuff, these etns. >> leslie picker with the latest joining us by phone is former s.e.c. chairman harvey pitt. harvey, thanks for joining us, especially after the comments from carl icahn and blackrock

earlier. we wanted your perspective have regulators been too lax >> i don't think so at all i think we're seeing a market corrections. there's a lot of volatility but a part on regulators to deal with any of these issues that they see the need for that >> the other thing i wond he, we're reminded -- finra fined wells fargo $3.4 million for advisers recommending volatility products from 2010 to 2012 it looks like they were making moves on this but is that as far as it was going to go? now do they establish that as some precedent and start to go after these existing products? what do you think? >> i think finra's action will stand this precedent and the regulators will look at the

trading that's taken place over the last few days and try to assess how much of that was the product of either improper sales activities or failure to make appropriate disclosures to the people who bought some of these highly leveraged instruments so, i think we'll see regularities look at this but i don't see that the regulators have been lax at all up to this point. >> last thing i'll say on this page 197 of the xiv prospectus states, to the point mike was making, the long-term expected value of your etns is zero that acceptable to say, we disclosed this, put it on page 197, you should have known better >> no. i think there are basically no human beings around that have the patience to get to page 197. that is not the place where that kind of disclosure should be made it should be made right up front

on the cover and on the first page >> fair enough if you hold this is a long-term investment it's likely you'll lose all or a substantial portion of it. we're seeing this play out right now. harvey, thanks for joining us. >> my pleasure. >> that's harvey pitt, former s.e.c. chairman. spacex launched its latest rocket today and the biggest ever, the falcon heavy it was just last hour. morgan brennan is at kennedy space center in florida. she's got the latest >> reporter: hey, kelly, that's right. this was one quite literally for the history books. elon musk and his privately held spacex successfully launched the falcon heavy a short while ago from this launch pad behind me it will now become the world's most powerful rocket in operation. it is surpassed only by the saturn v that brought americans to the moon in 1960s and 1970s it's not just the launch itself that's historic. it's also what happened a few minutes after lift-off two of the boosters on that

rocket separated and made their way back down here to earth in what i can only describe as a synchronized feat of aerial acrobatics, coming down to earth at the same time, self-correcting and landing a few miles from here at cape canaveral amid four sonic booms and a tidal wave of cheers from watchers in the area now, this gets really to the crux of the spacex business model of reusability, why this was so important and why the company is able to ask launch prices that are just a fraction of its competitors for that reason, commercial customers like satellite operators but also the u.s. government, nasa and the u.s. military, were watching this launch very, very closely. i'll just leave you with this. musk is now down one car his 2008 cherry-red tesla roadster was the payload it is on its way to make orbit around the sun back over to you

>> yeah, earned sacrifice. i mean, that landing was amazing. morgan, thanks for bringing us that and following this launch for us morgan brennan down in florida. let's get to some of the other big stories today. here's our rapid recap breaking news, stocks around the globe dropping sharply once again. here at home, the dow is pointing to a more than 500-point decline right at the open. >> i don't think this is puzzling at all. the market went up too far too fast. >> we came into the open looking as though we would be down sharply. that quickly reversed. >> markets remain thin and volatile frankly doing this 50 years, that's just what you need for a bottoming process. >> people should be focused on the long-term investment america should focus on the stock market over the long term has been one of the best investments. and we'll continue to monitor it. >> we're witnessing yet another incredible day of volatility

stocks falling more than 500 points at the open followed by one of the biggest comebacks we've seen in years. now more whipsaw action. >> this is a precursor of things to come. i don't know when it's going to come a year, two years, five years or it could be shorter. i think the market has become a much morel dangerous place. >> down, up, down, up again, higher by 88 points. if we can hold onto these gains, it would be the biggest comeback for the dow in more than seven years. >> the dow gaining back 569 on the bell, closing just shy of 25,000 remember, we just punched through 25k a couple trading days into the year >> unvesters are pulling billions out of major etfs that track the s&p 500 and the nasdaq, the qqqs joining us to talk about what that means for the market are "fast money" traders guy adami and pete what do you think retail is

doing and what does it mean? >> i don't think retail is doing anything i think the fundamentals of the market are still intact. i don't think has anything to do with stocks. i think stocks are the collateral damage of a much bigger picture that bigger picture is something pete knows about and my friend dan nathan knows about a lot and that's volatility. for years complacency has set in that's manifested itself in a volatility that's been, in my opinion, artificially low but it's back, so i don't think today should give you the all-clear. i would submit, and brian sullivan said this to me earlier, that the markets were in turmoil yesterday they're still in turmoil today obviously, we closed higher, which is a good thing for 99% of the populous >> turmoil to the upside, i take your point pete, we talk about what's been happening with the nasdaq, but actually it's kind of held up relatively well. it's interesting, and this theory has been floated in the last couple of weeks, but is big tech the place to go to hide

is it becoming defensive >> i've hated the term defensive or a place to hide but i would say, if i look at the valuations in the marketplace, there are certain areas that have maintained a fairly low valuation level and they've got growth and we already know that from some of the earnings we've already heard. when you're talking about big cap tech, apple or google or microsoft, all those kind of names, they're great names and trade, in most cases, at low valuations they've gotten incredible also of cash. it's not defensive to be in those names but you see rotations happen in the market all the time we've seen that for the last year and a half. the rotations have gained in velocity as well it's interesting to see where people are moving the money and where the next spot is they want to move it >> i know. so much more to talk to you about. we have to let you go and get ready for the show. >> look at these slimming poses we were -- >> we did bob pisani, sideways pi sachlt

pisani. >> you could stick a little flex in there another day. be sure to catch all the "fast money" action beginning at 5:00 p.m. eastern they'll be seated, though. top of the hour snooth. the pullback could scare some but a retail investor joins us and w hhye thinks this is a gift and where he'll be bargain shopping ronoh really?g's going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.

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deirdre bosa with more >> that's right. he told me that the team has been working hard to build a scaleable foundation and that they're beginning to see that hard work pay off. he adds they're excited to keep the momentum going of course, snap has had a tough time as a public company the question analysts are likely going to be asking now, is this quarter a flash in the pan or is it a real inflexion point in the fundamental business back to you. >> deirdre, thank you. shares up 22%. it's a $3 gain for snap. and how about this wild day for stocks and wild week it's only tuesday. how is main street reacting to these moves. joining us is wayne smaulz we like to check in with you month to month when we do our investment club, but just had to ask what you think of the last couple days. what are you buying, what are you selling, what moves you're making >> i think the last two days of trading were just incredible it was just an incredible ride from the drop on friday of about

600 toinpoints to monday's 1,000-point plus decline the magnitude was completely breathtaking i held feirm -- >> wayne -- go ahead, what >> go ahead. what did you do? >> i held firm with my 401k position didn't make any change there is. basically i'm still sitting 70% in cash. i'm prmd to do bargain shopping on apple, stm, crm, and the s&p 500 index itself >> you didn't own the inverse have tilt etf, did you >> absolutely no that's not why i find my comfort level. >> what do you think about these leverage products in general do you ever toy around with those or not >> no. the only time i deal with anything leveraged it's just plain trading. you know, just buying on leveraged margin trading but nothing more exotic than that. >> yeah. i mean it just feels like there were a lot of people who were

piling into those and perhaps now wish they hadn't you are sticking to your shopping list, things that you like, no major changes but you are buying on this action. wayne, did you have any trouble accessing your platforms or anything. >> no, i didn't. i made one trade last week and that was just anoptions position and that's just before the recent pullback. but no, i haven't had a chance really to look and may my move yet. but today was one of the best days ever to actually start buying into this pullback. and tomorrow i will be at it >> wayne, thank you for joining us >> thank you >> love getting that point of view that's wayne smalls let's get back to snap as we mentioned it's up 22% or so after reporting its earnings earlier this afternoon joining us now, jonathan keys from summit redstone and victor anthony from agis capital. both of them here with us. wow. >> yes. >> this is a big move for snap victor, what does it say to you? >> you know, it's just one

quarter. we have to see how the rest of the quarters of 2018 progress. but you know, the numbers are pretty strong. they beat revenue numbers. they beat my number. the daily active user number was in line with my estimate some of the tracking data i was looking at pointed to a snap back so to say in terms of user volume but it was a good quarter. the guidance was okay. i think it gives some of us a second chance in warding off some of the expectations from wall street that things were going in the wrong direction for them. >> yeah. >> i was going to say, it seems like the worst fears were that they just weren't going to be focused on executing on all of the measurable ways that the street wants to see progress jonathan, does it mean that they are kind of putting up a decent fooid fight against instagram or is it just kind of doing the basics at this point the stock has bounced back to where it was in june or so >> instagram results that were reported with facebook last week were very strong they were actually better than

facebook core. the number of daily active users there were far exceeded a lot of what people were expecting there. so i think it is a fight, yes. and they are finally catching up but as victor was saying, it's one quarter. one quarter a trend does not make i would look forward to hearing more of the details during the call in terms of everything from the pricing -- they had pricing issues facebook again during the call last week had said they raised prices and they still got more advertisers. >> right >> snap had said that last quarter that they had to lower prices and they lost people and it would go on probably a couple of quarters. i want to hear about pricing, about their products you go on the internet you see bad reviews in terms of the redesign of the their app. >> but the numbers speak for -- but we will see what they say on the call

>> yeah. >> victor, is it only winning at someone else's expense i remember there was a "wall street journal" program where someone didn't like the instagram experience, the add load was getting to high is that a risk for facebook. >> i think it is a rising tide i think ultimately for the companies that are able to execute, flawlessly, benefiting, you see that from google, alphabet, from facebook. instagram, i do share some of those concerns my own add lowe's loads are starting to increase beyond my own expectations from a good user experience. that's something i think facebook will have to watch. i think this is continuing instagram is executing people like the platform facebook is making changes i think over time you will get time spent on facebook to come back and alphabet is the a business that continues to grow and twitter i think it's

positive twitter on their results as well. >> extended hours trades, twitter is up 2% another check on today's earnings will come right after on "closing bell." stay tuned hey, need fast heartburn relief?

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welcome back what a day on wall street. let's look back. at the open the dow tanked before an early morning comeback you can see that there the trading then kind of was back and forth in the red n the green we rallied midday. we were up like 500 or 300 at that point anyway, by lunched, positive, and negative, positive, and negative and then right around the start of 3:00 the bulls came back with a vengeance. stocks turning decisively higher climbing as high as 600 points in the last hour of trade. and then we finally finished the day up 567 points. i don't know if we can say markets and turmoil to the upside but it didn't feel like a coast is clear kind of day. >> not at all. >> maybe people were looking to see if we have put in a bottom. >> it is an uneasy tape. definitely unsteady. it bounced like you wanted to see. i think that shows that the dow

was wearing a fitness tracker, it would be dragging over how many steps it took today. >> three sessions. all we did was reverse friday's declines we were down 2, 2.5% on friday >> i mean, even if the low was in or close to in and we have to knock it around a little bit i still think it's going to be a challenge. the most surprising outcome would be racing back up toward those highs. i think you have unleashed the volatility jeanne. >> it is the path the market takes, the most surprising one. >> sometimes. >> after hours earnings came out, from disney up 2%. chipotle is down 3%. gilead town 1% what is going to happen for disney. >> more clarity on the fox deal. he said they were going through the process. didn't say it was a slam dunk.

and the over the top offerings and details on that. i always say, ever quarter, that the stock tend to do okay during the conference call because they are able to kind of point to, the studio and the things that are going well and the film pipeline. >> julian said the subscription loss has abated in the quarter talking about -- that was "closing bell." "fast money" starts now. >> "fast money" starts right now. i'm brian sullivan your traders on the desk tonight are pete najarian, tim seymour, dan nathan, and guy adami. tonight on fast, we are all over the after-hours movers, disney, gilead, snap, and chipotle all reporting numbers hoemts ago. their conference walls are underway as we speak we will bring you the details as they break. plus he has been sounding the alrm on the ticking time bomb in your portfolio volatility as it ripshr