6% dividend yield. i think it's too early to make a call this is a safe way to make some money while you're waiting for oil to recover. >> josh brown. >> jpmorgan has bounced off support at 102, 103. i think that's your down side ris zblk good enough for buffet, good enough for you. >> that's right. >> send it over to our friends at "power lunch" begins right now. and thank you, scott and the gang i'm melissa lee. the dow trying to avoid a fifth straight day of losses time to go bargain hunting or hunker down. the ultra wealthy, we'll tell you why and the stocks they're snapping up now. plus, facebook under fire. a new expose reviewing alarming details on how the company is dealing with scandals. does zuckerberg have to go what about sharyl sandberg carnage in crypto land plunging below 100 billion it is down 60% in 2018 are bigger losses ahead or is a big rebound coming

"power lunch" starts right now and we do welcome you to power lun. i'm bill griffeth. another wild day here. the dow was down almost 300 points the nasdaq is carving out gains right now, at least it's trying to it changes by the minute like weather in denver crude oil changing its rebound after posing the longest losing streak on record the british pound has been under pressure following a series of departures in the ranks of british government including the brexit secretary we're watching the news conference in london with prime minister may apple, one of the few bright spots in the dow and tech overall. that stock higher after morgan stanley said buy on the current deal and k.b. homes get being slammed on a downgrade today tobacco stocks are getting smoked following an fda decision on ecigarettes and investors

have been bailing on walmart as you heard despite the earnings beat and a strong holiday outlook. melissa, what a day. >> what a day, bill. we do begin with breaking news on the fed steve liesman is here with all the details. steve. >> atlanta federal reserve raphael bostock saying u.s. conditions warrant a move towards a mutual policy by the fed. said the fed should proceed cautiously and keep an eye on the data he would support a more aggressive path of the fund rate he did agree that global growth agrees to be slowing these comments mesh more or less with those from federal reserve chairman jay powell who was upbeats on the u.s. economy. he indicated some flexibility if the outlook changed and that changed the outlook for 2019 for the funds right now. the government reported that retail sales grew by 0.8%. the report coming just after

retail beat them off walmart now the report showed strength in autos, department stores and gasoline station sales along with sporting goods and electronic appliances. now the control group, that's a piece that feeds into gdp from retail sales, a bit weaker than expected what does it do? the effect was to lower slightly the outlook for third and fourth quarter growth each by .1 of a percentage point third quarter remains at 3.6%. worth noting bostic sees the growth within, quote, shouting distance of neutral. don't know what you do with that maybe he thinks shouting distance is 3% how far can you shout in interest rate terms? >> i would say it's a sand wedge from neutral so the -- >> and you >> i would say it's two good casts which is not the first one you would make but maybe the second one i would make so maybe

two or three rate hikes? how many yards would that be >> a short par three. >> it's bohemoth. >> reading rather than speaking. here's the thing what's happened to the probabilities on the funds rate came down a little bit for december still in the 76% range but it's next year that's kind of taking a tumble here. what was above 50% for march has now gotten to be more may and now what was sort of september is now kind of more october. >> i was surprised the market didn't have a better reaction to the comments last night personally. >> because you thought he backed off more >> i thought the door was open a little bit more to being more dovish, yeah, but thank you, steve. >> don't forget to tune in for steve's exclusive interview with vice chairman richard clarida

8:30 a.m. eastern time this will be his first interview after taking his role at the fed. as we mentioned, british theresa may is holding a news conference over the fierce battle of brexit the british pound sinking amid all of the brexit problems wilfred frost has the data. >> reporter: the main takeover is prime minister theresa may is facing down her critics and fighting on with her plan for brexit. >> if we do not move forward with that agreement, nobody can know for sure the consequences that will follow it will be to take a path of deep and grave uncertainty when the british people just want us to get on with it. >> reporter: she also said, am i going to see it through? yes, resoundingly she answered her own question two other quick take aways she spoke about the natural interests a lot, and she said she understood why some of her colleagues had resigned, because they believed in a different

route for brexit to deliver in the national interests, i.e.,, she was trying to take the heat out of things, trying to make it less personal and hoped that it would hold the naysayers at the door, but the third take away on that topic is that we also learned in the press conference that she hasn't yet replaced the outgoing brexit secretary. it's been widely reported that she offered it to brexiteer michael gove and that he turned it down. there's now speculation that he may well be the next person to resign if we look at the pound today, we can see how all of that played out it came off of its lows. it was down 1.8% when she started talking. it got back to 1.5% now is back down to the session lows down a full 2%. she has a tough task still ahead despite her defiance an hour ago. >> wilfred, thank you. the markets as we have said, all over the map bob pisani joins us live from the floor of the nyse.

hey, bob. >> hello, melissa. the markets is all over the place because it has a lot to deal with. look at the checklist. the powell speech, digesting that the china trade response to the u.s. trade issues there that we're still trying to figure out what's going on with that. the brexit issues and then the italy exit question, the economic advisor to the northern league they'll exit the eurozone if they win the next election he walked that back a little but that dropped futures as well here in the u.s., consumer discretionary weak because we have problems with retail and home builders. walmart had great numbers and it's down. macy's had great numbers it's down the second day that's not a good sign jcpenney, it's up. they withdrew their guidance dillard's also did not have good numbers in general and inventory issues folks, look what the retailers are dealing with right there this is as good as it gets you're having retail inventory issues in this environment we have a handful of retailers

doing well here. walmart, macy's, home depot. the rest, this is as good as it gets the home builders today, you saw k.b. home down these stocks have been all over the place. generically down 15% this quarter. kb home sort of summarized the problems we've been having in the last six or eight weeks. the orders are down year over year we have to pause because of higher prices and rising mortgage rates, we knew that they mentioned the impact of the california wildfires they may have some impact. it's the higher prices and rising rates back to you. >> bob, thank you very much. check out some of these staggering stats about this recent selloff not counting today's trade the dow had lost more than 1100 points in the past four sessions it's a crosby low the 200 day moving average same goes for s&p and nasdaq

paul tudor jones warned about one crucial area of the market >> credit was actually real estate mortgage credit that got us into so much flubl '07. this time i think it's going to be corporate credit. the break jodowns are somethinge have to pay attention to in the last day or two. they're really scary because one of the things about this credit bubble is we've had liquidity absolutely dry up in so many markets. >> joining us is ron sanchez and art hogan, chief market strategist with b. riley fdr ron, kevin o'leary called this a heavy tape witness the response to walmart. decent numbers not the best ever, but decent and the stock tumbled here we've been seeing that for a while, for several weeks when

the market doesn't respond the way you might think it would even on good news. >> that's right. and so we've been in a very short period of time experienced a massive shift in sentiment from being more positive and constructive to being negative even good news is interpreted as negative this has occurred in a very, very short period of time. it's hard to remember five or six weeks ago we were up 10% ten days later we were down to negative territory, now we've been everywhere in between. >> art, p.t. jones is not the only one calling a bond bubble out there and he sees that as a worrisome trend at this point. what do you think? >> well, it's interesting. obviously interest rates being at low for a long time got a lot of corporate borrowing and perhaps, you know, when the tide goes out we're going to find out who's swimming naked i think of larger concern in the near term for us is getting china right. i think the indications coming out of the administrations and coming out of china is we're taking some of those baby steps

in that direction. to me i think we've fixed a lot of things we're concerned about in the here and now. if we can have some concrete evidence that we're trying to get something accomplished with china. that takes pressure off the dollar and the global economy. it takes inflationary pressure off the fed and i think that would drive a lot of positive back into this marketplace, but right now, you know, the messaging has been terrible up until yesterday. >> let's say those things don't happen, art. what do you do in this environment? >> i would get much more defensive if this is a long, drawn out, mutually destructive -- >> is that what you're doing >> we have a higher level of cash in those portfolios, but that's been the case since the summertime because we didn't see much head way getting through. we thought around mid term elections we would get better news it seems like it's heading that way. if you're concerned, the best thing to do is bicarb. >> what about you, ron

go to cash defensive. mike santoli talked about quality issues what are you doing >> i would describe our positioning and view on markets as constructive. i think it's best -- the best of the returns are behind us over the last seven or eight years, but i do expect a constructive view around the corporate and economic fundamentals over the next year or two it's very long and elongated economic cycle and i think a return profile going forward is moderate i'll describe that as mid single digits but i think it's too early to be overly defensive here i think the markets have moved from peak conditions, meaning peak growth, potentially peak earnings, probably peak profit margin, but moving from peak to late cycle to end of cycle to over is a little bit too prema tore for ture for us. >> the extreme of being defensive is cash.

there's a huge spectrum in between. so if you're constructive but it's not optimal conditions, it's no longer goldilocks for equities. >> that's right. >> what does that allocation look like? >> it's still modestly underweight fixed. we're in an environment where they will moderate or normalize. slow and gradual i think slow and gradual from a fixed income standpoint is a slight under weight. i think th is still constructive for equity or risk assets and i think you need to be on the more of the high quality side of the equity trend. >> all right thank you. >> art hogan is celebrating one of the two birthdays that we're celebrating on "power lunch" today. happy birthday, my friend. >> one of the two birthdays? >> you'll find out later no, it's not my birthday. >> not mine. we've eliminated. >> happy birthday, art thank you for being with us. >> art and ron. a lot of fear and uncertainty on wall street the ultra wealthy not worried.

they're still bullish on one favored part of the market, the stocks they're buying. plus, california's utility facing a potential cash crisis pg au g pg&e losing half of its value. facebook eose xpand how management handled the scandals. none of it is good the fallout straight ahead

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"the new york times" out with a scathing investigation into facebook crisis management titled, delay, deny and deflect. how facebook's leaders fought through crisis the article raises troubling details about facebook's tactics navigating russian activity during the 2016 election and also during the depths of the cambridge analytica zanld. let's bring in cara. great to have you. >> thanks a lot. >> people who follow business news closely, maybe those who don't, feel like they know the story except that the details are just mind blowing in terms of how many times they were just sort of -- they passed them by in terms of getting hold of this

problem. >> yeah. >> mark zuckerberg, petting cows, kissing cows across the country. from an investor standpoint, who should we be pointing the finger at >> it's a good question. the question of accountability is very high a lot of this has been reported but there were so many details of the activities and how it happened that it was -- and a lot of -- especially around these kind of dirty tricks in terms of keeping themselves out of the news rather than facing their problems pretty straightforwardly. i think that was most disturbing is the efforts that went into denying the problem or deflecting it versus dealing with it. and so that's, i think the most troubling part of this, especially when there were people inside that were warning of these problems including alex stam mows, who is a top security official they were more worried about how he said it versus what he was saying that's most disturbing who's accountable, i'm not sure. >> how damaging do you think this is to the future of facebook in terms of the leadership here? will it just continue to be business as usual or do you

think there are going to be some changes as a result of this? >> i'm not sure. i don't know who's -- there's almost no accountability in silicon valley in general. most people say, i'm sorry i'm sorry. i can't count how many times mark zuckerberg has said i'm sorry over the years that we've been covering him. he's not going anywhere. he controls the company, and by control he completely controls it and he's the ceo and founder. someone who came off very badly in this article is sharyl sandberg she's supposed to be the adult supervision of mark. i think that's a bit of a kinard he's supposed to have some responsibility other people like elliott schraag and joel kaplan, man in washington who made a lot of decisions and it seemed problematic. there's lots of blame to go around. >> unfortunately the board is handcuffed with mark zuckerberg as being the controlling shareholder, there can't be

change forced upon the company -- >> no. >> -- unless perhaps it's politically born in the article this is a great sentence this has finally captured the political consensus that got into the beltway interference. is this the end of it, the best times are behind it at this point? >> yes i've been talking about this a lot. this idea of regulation is coming and this is going to make it worse especially because they testified in front of congress i'll give you the time line of what they knew here. there's a public problem here, there's a personal problem the people may be horrified to work there, that kind of thing, then there's a user problem if people find this not to be a distasteful product to use that will be the real problem. i think one of the vulnerabilities is politically if they had said things on capitol hill that's not quite accurate, especially when something like this comes out, there's more revelations to come that could be an issue

especially with regulators. >> how do you reconcile that when they told one senator to another to back off in his criticisms of facebook and try and work with them instead >> right i did a podcast of chuck schumer around this time and he was so positive on facebook i actually challenged him i'm like, are we talking about the same company it was really striking to me i thought initially he didn't know about tech and obviously from this anecdote he does know about ech. i don't know if that's a strength right now it's out in the open he's not going to be able to help them in that regard anymore that i can tell. >> do you think the problems will get worse for facebook around the world we've been focusing on the influence here in the united states but they've also had issues when it comes to the recent brazilian elections too the influence is not just here in this political system it exists everywhere that facebook is operating effectively. >> yeah. europe has been particularly hard on facebook and google and other tech companies but you're going to see it around the

world. it would be really interesting if one country bans facebook because of this. you could see all kinds of things happening i think it brings to mind the larger issue is can one person run this massive company properly when it's a global company, it's a complex company, it's got ethical issues coming out of everywhere there are so many ethical issues that are so hard would make a harvar problem they've got and able to fix it it's having so much impact on society it's hard to know where to go actually. >> here's the question i keep asking myself. why has no other company come along to try and provide some decent competition for facebook that clearly has a strangle hold this's so many -- anecdotally, i admit. there are so many people out there that are disillusioned with facebook but yet they still want to remain in contact with their friends. >> right. >> facebook is the only one that can do that. >> people have tried think of snap chat snap chat did that very well and is a much safer environment.

facebook copied a lot of its best features and has sort of knocked them out of the loop there have been tons of efforts including former facebook people having billions of people on your platform, besides owning instagram on top of it is just impossible to get by this company. they're verywhere. >> mark zuckerberg will only step down if he chooses to step down what are the odds in your view that he would? >> i don't think so. >> never >> he's very stubborn and he's gone through other crises and he hasn't moved i would be shocked if he did. >> kara, great to speak with you, thank you very much well, a lot of fear and uncertainty in this market right now, but the ultra rich completely are unphased by all of this as you might imagine they're still bullish. oc ty' binrit why and be the stkshereuyg ghnow when we come back. who wants customizable options chains? ones that make it fast and easy to analyze and take action?

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what we deliver by delivering. what's the market doing today, that's a very good question. the dow now is up 89 points. that's the high of the session in fact, all three of the major companies are at the highest rate of the day. we were down and now we're coming back. we'll see as we make our way through the afternoon. the vix has been spiking this week and hitting its highest level but some of the nation's wealthiest investors are not too concerned about all of this

volatility they're still bullish. joining us is michael sonnenfeld he's the founder of tiger 1. it's an investment club for a group of high net worth individuals. welcome back. >> thank you. >> you're still 23 -- of the portfolio you have, 23% still in public equity but you're starting to nibble a little bit more into private equity and real estate. what's going on? >> right. >> first of all our members meet in groups and try to figure out what is happening. in recent weeks we see this shift from monetary policy to fiscal policy but normally when you have that shift and the market always gets choppy when that happens, you don't have a trillion dollar deficit against wanting to have more infrastructure, one or the other wins out. >> right. >> so when you add that in china and all the other things that have been on the show today, our members are concerned. it's not that they're bullish, they've created an all weather portfolio to the extent they

can. they've cut back on fixed income because they're concerned about interest rates rising. hedge fund exposure still low. only 23% to the market over 50% in private real estate and equity where they can roll up their shirt sleeves and touch and feel and see it. >> this is their version of defensive then, i guess? >> our members, when you build a great business, we have 650 of the top entrepreneurs in north america. when you build a great business, that's where the big score is. now you're preserving well you want to be defensive but in a low risk environment you have to take risks where you have expertise. owning building, building small businesses. >> i'm curious, michael, how does age impact their allocations? i would imagine the younger members might want to be a little bit more offensive as opposed to defensive. >> classically you would say younger members have a higher equity market. that's not what happens.

our members have such entrepreneurialism built into their spirit, they're entreprene entrepreneurs until the day they dye. i was with a member who's still in his mid 70s still investing in little companies because that's what he's been doing for 40 years, that's what he knows, he doesn't care about the stock market what he wants to know, is this a great idea is it scaleable? can we make a success of it? if he has enough of those planted, he's going to -- >> good for him, still buying green bananas. overall, what is your group buying in terms of the stock market you still like amazon, for example? >> yeah. where else can you get a shopping center on a desk? it's still the best place to do it the tech stocks are unique because of their scaleability. that's what's attractive obviously facebook is running into real -- >> i was going to ask. are you worried about what's going on there >> you've got to be. you have heavy regulation and condemnation

google doesn't have as bad of a rep today but it's facing privacy regulation in europe and it will happen in the umpt .s if you believe in the interoperability of its systems and the quality of its units, the member who did the portfolio defense owns apple for ten years. his costs is a fraction. he doesn't care that it's in bear market territory. it's still up for the year he's a long-term number. >> and you're a member of health care. >> yes >> if you can cure in good times and bad, you'll have a winner. we have huge wealth in this country. what are people going to pay forex september their health we can talk about the high cost of medical care, but at the margin if you have extra dollars, you want to improve the quality of your life. >> are you worried about what goes on with brexit? does that affect how the group makes decisions?

>> it does only in the sense that europe is having a tough time across. so the economy is slowing in europe even here in america the expansion was a little long in the tooth. i think s&p, $1.79 more likely to be $1.50 on earnings. our members aren't bullish, they're just well positioned to whether the storm, their sailors who have been through the storm before and when you learn from one another, we have 50 groups across north america, each month they sit and say, how do we deal with all of this complexity? as business owners they go with the basics and it's done them well. >> very good always instructive >> thanks for joining us coming up, victims of the deadly california camp fire suing pg&e for having started the company. shares down 27%. we'll have the very latest next.

welcome back, everybody. i'm sue herera here's your cnbc news update in her morning briefing, nancy

pelosi pushing back at her critics saying she is the best candidate to be the next speaker of the house >> i intend to win the speakership with democratic voeks. i have overwhelming support in my caucus to be speaker of the house and certainly we have many, many people in our caucus who could serve in this capacity i happen to think that at this point i'm the best person for that. the national transportation safety board issuing an investigation update on the likely cause of last march's deadly pedestrian bridge collapse in miami. it says errors were made in the design of that bridge. six people were killed and eight others were injured in the collapse >> day long curly was caught spitting on a customer's pizza he will continue with his therapy and anger management classes. you are up to date that's the news update

back to you. >> i don't know if you heard me say earlier. today is art hogan's birthday. did you know that? >> i did not. >> i mentioned how there are two birthdays we're celebrating. >> yes, indeed. >> happy birthday, my dear. >> thank you, my love. >> how many birthdays have we been together? >> a couple. double digits at least. >> there will be a few extra balloons on "nightly business report." >> i will see you there. >> melissa. >> oh, happy birthday, sue. >> thank you, melissa. stocks trying to stage a comeback hitting session highs just this hour the dow is up 160 points or .6 of 1%. it was down almost 300 points earlier in the session s&p up by 21 nasdaq up by 1.3% or 93 points apple one of the big drivers here on all of these indices rebounding from bear market territory after morgan stanley said you should buy this jpmorgan feeling the gains it is at session highs by 2.1%

and boeing turning positive moments ago adding to the dow's triple digit gains it is up still, bill. to the bond market we go rick santelli. >> the treasury is paying attention to stocks. it's bouncing around a bit it's bouncing around levels that we saw in october. two day 30s trying to hold yesterday's low yield range and it's doing the best job that other maturities have lost a little ground versus yesterday, although the rally in stocks has helped if you look at a mid september start to 10s, the 308 bottom we had is what many people are focusing on along with the double top if you use the date for barclays high yield index, what you'll see is a much different performance and "the wall street journal" had a good article about that big tech flyers don't have a lot of high yields

maybe that signal is a bit broken finally, let's look at one week of the pound versus the dollar a whole lot of volatility. melissa lee, back to you. >> rick santelli, thank you. california's largest utility, pg&e being sued shares down 26% today losing half the valuein the past five days aditi roy is live with the very latest. >> hi there, melissa two suits that we know one was filed by two dozen plaintiffs who lost their homes in and around paradise that's the town destroyed by the fire investigators are still looking into the cause of the camp fire which has killed 56 people it's the deadliest and most destructive wildfire in california history pg&e notified regulators that they experienced an outage shortly before the camp fire began. if it is held liable for the fire, they said its liability

costs could exceed its insurance coverage the utility which has a market cap of just under 10 billion at the moment could face up to 15 billion in liabilities according to some analysts if the utility is held responsible for the camp fire. in a statement pg&e telling us because the cause of the fire has not been determined, it is uncertain if pg&e could be held responsible. they've been held responsible for a dozen fires last year. shares of edison, international, which could be held liable for the woolsey fire in southern california also down now. >> aditi, i'm going to assume that is not fog behind you right now. yes? >> yeah. we've been -- we have been dealing with this for almost a week now, bill what you're seeing behind me, that's the remnants of smoke, which by the way, we are -- i mean, about three hours, three and a half hours away by car from the camp fire so it just goes to show you just how toxic it is. you walk in the city and you see

people regularly wearing gas masks. i heard from one of my colleagues she was trying to buy one and they're sold out it's not just north of sacramento but all over the state. >> thanks. see you later. >> you bet. first it was amazon, now walmart. senator bernie sanders targeting america's biggest brick and mortar retailer over the stock buy back policy. ylan mui has details and i hear it's snowing there today. >> it is snowing here, bill. this bill is called the stop walmart act, and it would prohibit companies from buying back their stock unless they do three things first thing is they've got to pay their workers at least $15 an hour. secondly, they have to give workers seven days of paid sick leave that they can use either for themselves or for taking care of a family member. finally, companies have to cap ceo compensation at 150 times the median wage for workers. senator bernie sanders is the sponsor of this bill in the

senate and over in the house it's congressman ro conna who introduced the legislation he told us he thinks the public will be on his side. >> the tradeoff is pay employees more for the work they're doing or give that money in stock buy backs to shareholders and investors. the americans i think will choose that people who are working hard really deserve those pay increases. >> reporter: now this bill is aimed at walmart, but actually it covers any large companies with more than 500 workers so a lot of other names could potentially get swept up in this net. the reality here is that this bill is not going anywhere it doesn't stand a chance of actually becoming law but, guys, it does show you that democrats are really determined to use the bully pulpit in order to pressure companies they believe that's going to be a winning strategy, both practically and politically. back to you. >> there's no faith that people

would get to work on this? because many companies said they would raise above the federal minimum. companies want to be more competitive with others to find workers. >> what you hear them say is that they want to speed this up. it was amazon responding to criticism that was targeted at the company that encouraged it to take that initial move. they said the same thing happened when bernie sanders started going after disney the company decided to raise its minimum wage they want to see this happen and start that conversation at other large employers as well. >> what we've learned about the amazon deal as they move their headquarter 2 to, you know, crystal city, virginia, and to long island city and even nashville, there are incentives. as long as they keep their pay at a certain level for employees in those areas, they get those tax incentives there's the free market to some degree there, right? >> well, i think the other thing that these lawmakers would say is there might be an incentive

for companies to raise the wages when they come into these areas, but what kind of benefits are they getting from local benefits in order to locate there i think that there are a lot of tradeoffs and democrats are determined to make sure that they have this kind of conversation as they look forward to the 2020 presidential election they're testing out this populus message and seeing if voters respond. >> ylan, thank you home builders getting crushed. a closer look at what is driving those losses, plus a real estate mogul's meeting in new york city we are live with a look at the state of housing stay tuned

welcome back to "power lunch. home builders getting crushed today. let's get to eric for a story on

that. >> stocks hitting a 52 week lone for kb home. other home builders taking a hit with names like toll brothers, lennar today's moves come amid a tough year for housing related stocks which is under pressure as mortgage rates and material costs rise pushing home prices higher and weakening sales back to you guys. >> eric. thank you. eric chemi. real estate's power players meeting in new york. diana olick is there live for more hi, diana. >> hi. we're at nyu's capital markets and real estate comments the title of the panel inside is the outlook for new york city which has changed pretty dramatically in the last few days with news of amazon's hq2 moving into new york city. the chairman and ceo has a major new office project going up in brooklyn's navy yard he says amazon will change the landscape for development throughout the entire

metropolitan area. >> it's an incredibly positive message, not just for long island city and queens but for the entire city and it sort of ratifies the fact that new york is a technology hub. you have obviously amazon, google's expanding, facebook's expanding. all of these other companies are coming here. they're expanding out of silicon valley and coming to new york city. >> just the prospect of amazon's 25,000 employees are exposing rentals. high end real estate is expanding with prices down in the double dibgits i asked richard why that was down his answer was crystal clear. >> i'm very concerned that rising interest rates because that's one of the if you have been touch stones of real estate values it's a business that relies somewhat on borrowing and on debt and tighter underwriting standards, higher interest rates

all affect the valuation of real estate and we've been in this kind of golden age with low interest rates for a very long period of time >> and for the softening of the high end real estate market, he blames the changes to state and local taxes, so called salt for local real estate. as for amazon moving in, here's the headline, he said. queens is the new brooklyn discuss. back to you. >> yeah. interest rates are one thing, but what about the lack of deductibility of your property taxes, the salt deduction that went away in new york and new jersey and other places where the taxes are so high. that's got to have an impact as well, right? >> that's what he was talking about as well, exactly he said it is going to lower prices for some. prices have to correct a bit he was not particularly bearish on the real estate market residential in manhattan he said it was getting a lot of jobs coming in, google, amazon, but he did say that that's going to hurt. it's especially going to hurt on

the high end. >> people in long island city and the environs around that are excited about amazon. >> i'm sure they are. >> at least our travel infrastructure is in good shape. handle that. >> ready for that. >> diana, thank you very much. cryptos getting crushed. will they fall further or is this the bottom? this the bottom? that's cominupg this the bottom? that's cominupg yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

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we're working to make things simple, easy and awesome. >> bitcoin is the asset that has held strength. over 50% market dominance. all other are in the midst of a liquidity crisis and we are at a point where projects are running out of money and they'll need to start firing employees and we'll see consalidation aolidation an get marked to zero that was on "fast money" last night will we see some assets drop to zero or have we finally hit a bottom joining us is chris.

chris, always great to have you with us. >> thanks for having me. >> first, i want to do a little housekeeping here in terms of why we're seeing this massive drawdown across the crypto universe and that has to do with the bitcoin. in a nutshell, can you explain what's happening. >> it unnerved the markets and last year we had a fork that spawned off bitcoin cash from bitcoin and two parties now within bitcoin cash that are in two currencies the thing to keep in consideration, bitcoin cash is a totally different than bitcoin i don't think of it as relative but it has applications for market sentiment >> let's get back to what melten said if you're not bitcoin you probably have a liquidity problem. to what degree would you agree >> bitcoin is the bloodline of

liquidity to the eco issist issm what everything is priced in and that is definitely the case. the interesting thing about protocols is protocols don't really die the way companies do. right. they, from last year, a lot of n them have balance sheets balance sheets in the tens of millions of dollars and one note, one computer online running the software and you have the protocol and if you have two computers online, the network is live. we haven't had this model before we saw last year many crypt oassets come back to life that were preserved dead in bear markets in past years. so protocols don't die the way companies do >> we did see a bitcoin in the universe, basically, sort of flatline for a period of time before taking this most recent dip, chris >> bitcoin is the new stable coin >> i guess so. on a relative basis, it sure is.

but do you think we've seen the worst of it for 2018 some people so bullish and sticking by their 15,000 for bitcoin by year end and those prognostications >> i'm a veteran investor. i have a ten-year time horizon here really, what i'm looking at from a long-term perspective is the 200-week moving average. this goes back to my prior work at arc where we were the first to buy bitcoin in 2015 at that point we based on the 200-week moving average. a lot of conversation around the marginal cost of production and if that was the level minors needed to continue to sell that in order to cover their operating expenses, there's conversation around the same thing right now a. so, if i look, certainly, history doesn't always repeat perfectly, but it does rhyme and it fells like that 200-week moving average, which also represents an 85% drawdown which is what we had from 2013 to

2015, to me the real capitulation point that is where you see me starting to feel sick. >> thank you, chris. >> thanks. facebook releasing a statement responding to "new york times" ex." >> this statement in from facebook's board that "new york times" bombshell investigation as mark and sheryl made clear to congress, the company was too slow to spot russian interference and too slow to take action. as a board, we did indeed push them to move faster. but to suggest that they knew about russia interference and either tried to ignore it or prevent investigations into what had happened is grossly unfair in the last 18 months, facebook with the full support of this board, has invested heavily in more people and better technology to prevent misuse of its services, including during

elections as the u.s. midterms show they have made considerable progress and we support their continued efforts to fight abuse and improve security guys, back to you. >> doesn't answer all the questions, but we will get to that in a little bit here. josh, thanks very much. we will have more on that story coming up. plus, much more on the other side of this break about the market nice rally going on, at least for the moment what's fueling the gains we'll talk about it, coming up

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ray says we're late in the business cycle, maybe the eighth inning is he right? if so, how do you position your portfolio? consumers opening up their wallets and going shopping as retail sales beat that number this morning what names will benefit into year end your playbook is ahead real estate reality. miami dolphins owner steven ross will join us does he see a slow down coming in the market as some are predicting we'll find out "power lunch" starts right now welcome to "power lunch. room melissa lee

right now close to session highs up to 166 points or 0.07 cisco, caterpillar and jpmorgan all leading the dow jones industrial average and the nasdaq composite up by 1.5% tech and energy are your leading sectors today. real estate is lagging and the retail on pace for its worst day in a month first negative week in four. take a check on semi-stock they're moving higher across the board. micron and nvidia and bank stocks getting a boost for more on today's volatile session, let's go to bob pisani. >> we're positive. we were down 200 points almost on the dow put up the s&p, 20 points or so. i'm just looking at it here in the last 45 minutes or so.

an ft story saying the u.s. trade representative had told some industry executives that the next trench of tariffs on china were already on hold that phrase on hold, very important. we haven't confirmed that. trying to work through these sources. it definitely moved the market you see that about 20 points on the s&p 500. in fact a little bit more than that predictably chinese stocks moved down here and alibaba moved $2 or $3. $155 or so a lot of issues today. just a lot of moving parts and hard to figure out we had china trades response to the white house. trying to figure that out. we had the brexit issues and italy issues earlier on. a lot of things moving the market around today. two big problems were retail and home builders. comps 3.4% good commentary overall and good guidance i think the problem here was

down a second day in a row and retailers and put them up. macy's yesterday had good numbers. also down. jcpenney did not dillard's did not. very mixed commentary in terms of what is going on in the retailers and home builders. orders down 14% and very simple. higher rates, higher prices and that's weighing on the home builders overall groups down about 15% so far this quarter back to you. >> thank you very much as everybody knows ray dalio warned investors earlier this morning on "squawk box" the end of the bull run may be near. >> we're in the late stages, maybe the seventh, eighth inning of the business cycle. right. we're in the part of the cycle where there's been a lot of monetary easing, potential banks bought $15 trillion worth of assets, pushed them a lot. we had the benefit of a corporate tax cut. all that stimulation and, as a result, we're in the late part of the cycle where there's a

tightening of monetary policy. we've raised interest rates to a level where it's hurting asset prices >> let's bring in nancy tangler, chief investment officer at hartland financial and matthew joining us from the new york stock exchange i think you agree with ray dalio to some degree, yes? >> i do, bill. thanks for having me i think it's more about the pace than where we are in absolute terms. we're still at a zero real fed funds rate that is not, that is not difficult to get over for asset prices but i do think we got some encouraging tone from powell when he said we'll think about how much we'll raise and when we're going to raise i think we're at two next year and that pace is much better than equities than the three to four that the dot plot would indicate >> matt, what do you think are interest rates started to

crowd the stock market at these levels >> most of the headlines we've seen are quite negative and that's why the market is acting the way it is. you put your head in the sandilatal while, market up. maybe if we get some clarity out of the fed where we talk about maybe only two rate hikes next year, maybe this market does have some legs l listen, retail sector. if they can surpass any of these expectati expectations, that sector has been beaten down enough to get enough reward. >> nancy, have you been using the pull back in november and month to date to add to some of your positions >> we have, melissa, thanks, also good to see you we sold out of our position in e bay and aebay and added to star.

we do like the consumer here they're in great shape we own mcdonald's, we actually added a little bit to home depot and we've been adding to things like broadcom and the tech space. we're already overweight cisco and oracle and apple and microsoft. we haven't been adding there little bit to health care. we're overweight in health care. we're underweight, we sold some of our energy holdings we're underweight there and we're underweight financials >> what about the banks? you just said underweight financials and now we know that roughly half of warren buffett's portfolios is in banks right now. i know he's a long-term investor, what about you, nancy? >> we like jpmorgan. the regional banks got out of our ranges pnc and we've been adding to bank corp, a very noncontroversial kind of bank

and sold out of wells fargo a year ago because of the management problems, more like two years ago. we own berkshire and t.rowe and initiated in goldman >> matt, is this bounce convincing to you? >> it certainly is i think we -- >> really? >> yeah. we actually got higher lows throughout the day here. so, we started out really negative most of these news headlines that we've gotten have been, we traded on the buy side to them that's encouraging to me that we're not seeing that proliffic sell program going on every program. i'm definitely more encouraged today than i was yesterday on these headlines. >> very interesting. the always skept icical matt. good to see you. thank you. >> thank you xhnchlthsi. coming up, the big tech

reversal the nasdaq up 1% and it had been down 1% at the lows of the day. plus, can nvidia keep the tech momentum going when it reports after the bell tonight this once high flier is down nearly 30% from the beginning of october. we're about to be joined by bob diamond and former ceo of bar clays. we'll get his take on what is causing this recent selloff. the fed, economy, brexit and erhi aevytngs we continue to listen to "africa. the engine management systems coordinate with autonomous vehicles. financial data, so now we can predict the future. our new flexible propeller design. by collaborating with public schools on a program called p-tech, ibm is helping students build the skills they'll need for tomorrow. revolutionizing. aerospace industry. it's an entirely sustainable approach. any questions? when you rethink education, everyone can put smart to work.

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the consumer seems to be in a good mood heading into the holiday season retail sales coming in stronger than expected. walmart raising its outlook and macy's say consumer environment what is ahead for retail will the consumer actually remain strong? let's bring in joseph feldman. joe, great to have you with us >> thanks for having me. >> for the positive data points, you can also say amazon, apple, they lowered their fourth quarter guidance and home depot was a concern that they didn't raise their full year as much as they beat in the fourth quarter. that was a q4 revision lower what is the true picture of the consumer >> you know, i think the

consumer is pretty healthy right now. i thought walmart's commentary today in the transcript of the call, as well as the conference call they did after was quite positi positive they're seeing good momentum and ready for the holiday season and they believe the consumer has aper ample money to spend and we are hearing that from other retailers. all want to see beat and raise and we are getting some of the raise and then it wasn't enough. well, i don't know, i think the consumer is ready to spend we're forecasting up 5% for the holiday season >> i was just going to ask what yours was because i have been hearing 5% more and more and more the market with their response to earnings in sales reports are saying, okay, 5%, blowout christmas and that's it. maybe we're at peak retail what do you think? >> there is concern. as you head into next year, the consumer will have some money. the tax benefits will continue a little into the spring at least. there is some concern about the

amount of withholdings from this year and how that will impact taxes next year and what that will look like i think things will probably hang in okay and what's interesting is there's still going to be pockets of retailer that will work the discounters for sure the grocers. those are stable-type retailers that are going to continue to work walmart fits squarely into that. i think there is definitely going to be room housing will hold up relatively well even though new home sales haven't been happening as rapidly. people are staying put they do remodel. >> investors are concerned what macy's effectively said on its conference call and that is that delivery costs are increasing. even though they make great strides in e-commerce it is costing them they are able to increase the revenues, but margins are staying the same are we going to see other bricks and mortar retailers are going to sacrifice and pay more for

d delivery costs to compete against? >> i think that is the cause freight costs are up oil costs have come down a lot, that might help a little next year absolutely, wage pressure, freight pressure and i don't think that will necessarily go away any time soon the retailers are getting better at delivery, they're getting better at online and more efficient leveraging technology, but a lot of cost pressure and we don't expect margins generally speaking to go up very much for most retailers. i think you have to see sales will continue to grow a little bit and then you kind of hold the line on operating profit and you drop some to the eps and you have some growth of mid to high single digits for a lot of these retailers. >> anybody you're worried about? i think of jcpenney. if you can't make money in this retail environment, when can you make money >> there is always some concerns there are players like the jcpenney that has been struggling a bit you know, we've seen how long

it's taken sears to go away effectively. so, i think it's going to be some time before that happens for most retailers there's definitely some bigger guys get bigger and stronger and that's likely what we'll see >> joe, great to speak with you. thank you. >> thank you well, gas has been soaring everyone forgot that winter is cold you need heat. how to play the weather with wall street's weatherman, coming up how to trade nvidia aahead of trading report. "trading nation" is next as you can see, e worlde this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,000 credit on select models now during the season of audi sales event.

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welcome back to "power lunch" i'm mi gina sanchez and todd gordon with tradinganalysis.com nvidia chart down 30% off its highs in a hurry still off 200% how does it stand to you right now? >> actually quite a boring period in nvidia here for over a year the market was very range bound.

really not gaining any momentum, what you'll look at here is a relative strength index. measures the momentum of the trend. you can see we're making lower highs here we did a huge flush. $110 move down into the 180 mark which is right here on the shelf. this is the weekly chart and let's flip down to a daily chart and each bar we're looking at we'll represent one day. here's that big $110 drop. this is the $118 that i just referenced the overall semi space we're showing relative space in the semis which was a major source of nasdaq weakness i like the move up we made a higher low and we're starting to see semis move back. i'm not involved in nvidia >> gina, it was only a couple of months ago that the story on nvidia, the perfect company and the perfect part of technology

and mobility and gaining chips and has all that gone away all about stock positioning or fundamental issues here, as well >> look, i think the big overarching theme was the concern around china and trade tariffs and that certainly weighs on the semi stocks. you also have this combination of oversupply semi stock along with waning demand nvidia bread and butter is gaming they have to show positive growth in the gaming space but the up and comer has to be the cloud. they have to also really knock the lights out on the cloud. it is still well, you know, i think it's still pretty well priced and there are some v vulnerabili vulnerability. >> thanks to you both. for more "trading nation" head to our website or follow us on twitter at trading nation. bill, send it back over to you >> michael, thank you very much.

coming up on "power lunch. the race is on and it appears the u.s. is well positioned to come out on top. we're live in corpus christi, texas, with that story, next a lot more power lunch just ahead. and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> position size and risk. you don't want a single position to be too big a position of your tradeable assets additionally, you want to make sure enough profit potential to justify the risk you're taking construcngti suitable trades and adhering to your exit plan can help you build on trading successes.

right now facebook is holding a media conference call responding to that "new york times," what are they saying? >> the call is going on and mark zuckerberg kicking it it off saying that he is going to address the allegations laid out in that "new york times" article

detailing mismanagement at facebook take a listen to what he said. >> i've said many times before that we were too slow to spot russian interference too slow to get on top of it and we've certainly stumbled along the way. but to suggest that we weren't interested in knowing the truth or that we wanted to hide what we knew or that we tried to prevent investigations is simply untrue >> zuckerberg went on to talk in great detail about a note he's publishing today on enforcement saying this is a very important topic for the company. of course, this ties in to all these concerns about the spread of fake news and manipulation on the platform he said there is a conflict at facebook and something they are very much concerned with is this idea of balancing the idea of giving people a voice, but also keeping people safe. he said they're investing a lot in artificial intelligence so they can be more proactive instead of reactive putting these systems in place to identify harmful content and

they are working on stopping the spread of sensational and the sharing of sensational information or provocative content. the call is still going on right now and there will be a q and a session after the speakers wrap up it will be interesting to see what happens facebook shares down 0.5%. back to you. >> you're not listening to everything they are saying right now, but i haven't heard anything where they respond to the allegations in the article where they are hiring pr firms to solicit negative stories about rivals like apple and google >> well, yes, it's interesting he opened up with that first statement. the sound bite we played there was zuckerberg's first comment on the call and then shifted gears and said that he has been working for a long time on this note about the spread of inappropriate content and safety on the platform. and that they're putting that out there today and then he went through four different ways they are working on stopping the spread of misinformation, talking about the technological component, et cetera, and

building more appeals process that people think content has been pulled down that shouldn't have been. but they haven't gotten into more of the nitty-gritty details laid out the article, i suspect some of that will come up. it is worth noting in a blog post posted earlier this morning, they were not hiring firms to write incorrect or to spread misinformation through articles that they were publishing so, they did address that earlier today in that blog post and they said that was not true. they said various inaccuracies in that article, but they haven't gone into it more on the call yet today >> it struck me as unusual that josh lipton brought us the statement from the board in which it said that the board urged faster action by zuckerberg, as well as sandburg. are we witnessing what could be a division between the board and management the board sounded almost like it was trying to insulate itself from blame. >> well, it's interesting because we have to remember,

melissa, zuckerberg does control the majority of voting shares. this is a company that he does control. he does want to have good corporate governance from a stock market there is incentive for that and i think that there has been a big push at the company towards transparency the fact that zuckerberg and his colleagues are on calls right now. they have been sending out statements and posting these blog posts they are trying to show that they can be transparent and they are changing their ways after the manipulation on the platform back in the 2016 election. so, they're making a big effort here it will be interesting to see what kind of dynamic we hear in the q and a portion of this call but that both the board and management are making an effort to show transparency >> we will see how this all unfolds. thank you very much, julia else where a volatile few days for the market. the dow down 3.5%, bouncing back today about 00 points.

a lot of concerns remain for the market including worries over the domestic and global economies, brexit among many other things let's get perspective from bob diamond and former ceo of b barclay's, of course, he joins us now with leslie >> thank you for joining us on this day where we're trying to make some sense of what to expect with brexit, especially as it relates to the banks who saw their shares in europe decline on the news of theresa may's deal that caused some resignations over there over brexit what would a no deal mean for the bankz over in europe >> right now it's not a no deal as much as it is a soft brexit i think that most importantly whether it's banks or the financial markets with the level of sterling or corperates in the uk the one thing they want is certainty. and the one thing they got is uncertainty.

and i think they read on this if this were to go through, then the uk stays under the european union for an indefinite period that kind of uncertainty that we're seeing really impact the financial markets right now. >> how easy for barclay's and british banks to make their way to the mainland continent? in the case of brexit and the need to do so? >> my g assumption is that brexit will go through. i don't think what happened overnight is a brexit or not brexit the real question now is soft or hard and the real question now is what level of uncertainty is there. >> now, you're invested in across europe and also in italian banks, which have come under some scrutiny lately and how difficult is it to invest over there with italian and greek banks? how much is a moral hazard in that you feel some sort of

comfort from the government that stepping in with the potential bailout if something goes wrong, versus an actual opportunity to the upside for those assets? >> so, we have 100% of a banking platform in greece we're the largest investor in italy. and we're very comfortable in both these are not large systemic banks. these don't fall under the category of too big to fail. but most importantly these are platforms without legacy performing loans, without legacy technology and if we're able to have lending platforms and decan posit taking platforms without nonperforming loans with the technology necessary to take, you know, digital offerings, then we're getting very, very strongly supported by the ecb and the regulators >> now, i want to get your thoughts on the regulatory environment here in the united states because yesterday we saw representative maxine waters, her mart aparty, the democrats,n

control of the house she said they do intend to push forward with greater financial scrutiny over the banking services industry. compare that with some news we saw from berkshire hathaway and many other hedgefunds which are actually investing in the banking industry here in the united states. do you see opportunity in this sek sector do you see the potential for greater regulatory risk? >> i think the actions that we're taking in light of the financial crisis ten years ago from tarp and putting equity in the u.s. banks and forcing them to pass the fed's stress test really advanced, i think, the u.s. banking industry relative to europe. much earlier post crisis i think what we've seen in terms of regulatory rollback is not addressing too big to fail or systemic banks where the larger

levels of capital rules are still in tact. but it's been reducing the complexity and the burden on small and medium enterprise financial institutions and i think it's been successful i think it's been necessary. and i think it's made financial services in the u.s. more investable >> so, are you worried then that with the democrats in control of the house, that those new protections and the lack of regulatory environment would be taken away >> a lot of the rollback of some of the unnecessary is already done they'll continue in their role of rule writing and the financial industry services is quite strong relative to europe. >> all right, bob diamond, thank you so much for joining us we really appreciate it. send it back over to you, bill, in the studio. >> all right, leslie, thank you. our thanks to bob diamond there with atlas merchant capital.

sue? >> hello, bill hello, everyone. palm beach county will not make a 3:00 p.m. deadline for a recount. malfunctioning machines are to blame. they overheated during the recount. the delay tdisappointing for th county election supervisor >> as a supervisor i take full responsibility that's my job. you know what, it was not for lack of human effort you saw, the human effort was so incredible and i thank everybody who participated >> tensions between mexican and central american migrants who have aarrived in tijuana have now ervscalated locals gathering wednesday night that they demand they leave the mexican border city. hundreds of migrants have arrived by bus since tuesday overflowing the little space available in that city's shelters and country music star roy clark, who headlined the tv show "heehaw" has died. it was from complications to

nuammnu pneumonia at his home in tulsa, oklahoma that's the news update this hour, melissa, back to you >> did you watch "hee-haw" >> no. i know about it, though. i do the oil market is closing for the day. let's get to jackie deangelis. >> crude rebounding slightly today. by slightly less than 0. 5%. this is a trade that may fall fast, but then it springs back stronger as well we haven't seen that this time today the eia out with production numbers and inventory build of more than 10 million barrels and u.s. production up, again, 11.7 million. both of those figures are pretty bearish. and, also, of course, we're heading into that time of what is opec going to do? that meeting is on december 6th. they may make a move to change

the dynamics a little bit. that is something we'll have to watch very closely, guys >> thank you very much. as oil is sliding, natural gas has been going the other direction. soaring up 28% in one month despite today's pullback and growing worldwide demand could be a boom for u.s. exporters. brian sullivan is at the brand-new liqueification facility in corpus christi and energy ceos from around the world have been there, as well brian, what is going on? >> i mean, right behind us is the ship that will carry that first load out, bill you talk about it. wilbur ross, secretary ross and the governor will join us live in about 45 minutes. over there sell braying, widely celebrating the opening of a natural gas facility because this is the first export facility built from the ground up to be an export facility in the continental united states. not one that was converted from an import facility

we talk about the shale oil boom all the time this is an offshoot of that. when you drill for oil, you get natural gas. the country is awash in natural gas. the world needs natural gas. companies have come together and said, let's fill that need however big you think this might be, it's probably bigger with the opening of this facility today there are now four export facilities however, 12 more that are in project status and five others that are in prefiling status so, in other words, four now with the possibility of 17 more. that's a lot so, the question is, we got a lot of natural gas, but do we have that much natural gas the ceo answered that question for us earlier >> i'm not, you know, the u.s. grew natural gas by about 8 billion cubic feet a day this year alone and that's forecast to grow dramatically more than

that and we exported four this first round of lng terminals that are being built in america will consume around 10 billion cubic feet a day. so, there is just a lot of runway we're having trouble keeping up with what they're finding. >> the question is, guys, if the price of gas keeps coming up, will it be economical? what he basically said, we're in a price taker environment. if the price goes up, cheniere doesn't pay, the buyer they made a big deal with the government of poland they're the ones that will absorb that cost you have exxon, a number of others out there sempra, there is the names the governor just showed up and we'll have him live on cnbc in a few minutes. >> brian sullivan, thank you, in corpus christi, texas, for us.

only temporary especially as it appears winter is headed our way sooner rather than later joining us is dan, the senior energy meteorologist at the weather company. dan, great to have you with us it seems like it has been an extremely volatile month assets up 28% this month, including today's pullback can you give us an idea to what the direction can be now, especially as winter weather does appear to behere. >> it's unbelievable the traders i've been talking to say they haven't seen volatility like this since 2006 when we had katrina and rita in the gulf this is an amazing time. so much cold weather and snow storm on the east coast today and we still have the worst cold to come. early next week, tuesday into wednesday of next week, if you're in the northeast. highs won't get out of the 20s and wind chills near zero and feel like mid-january. no surprise that gas has been so volatile and so up over the past week or two weeks or so.

>> it snowed in louisiana yesterday. earliest it's ever snowed there. it's not supposed to snow in louisiana. i can't hearing, dan, that this winter was going to be a little warmer than normal overall i realize that is a vague forecast that you have to for the whole winter but are we going to have a little warmer winter or not? >> yeah, bill. this is the great debate right now. and this is why you saw a lot of pullback today in the price. i mean, it's just in crazy volatility right now for the traders. we're not sure where we are going to go. we had a cold november right now beginning around thanksgiving or so we'll go through a moderation period and turn quite mild for the following week or so is this a new mild pattern that continues into december or do we flip back to the really cold pattern? now, we have el nino, normally el nino winters if they're strong enough, you tend to get a lot of warm weather, especially across the northern tier of the

country. but to be honest, this looks a lot like 2002 and 2014 during the fall of both those years if you have a good memory, you'll remember both those winters '02, '03 really cold, snowy winters in the east. if all goes similar to those two analogue years, we'll have a lot more cold and snow to go and probably a lot more volatility in the price of gas. >> we were talking about the moderation pattern and whether it is going to be very cold and the east coast in general, the northeast, specifically. but bill had mentioned the snow in louisiana it does look, at least for today, the feels-like temperature even in the south is in the 20s and the 30s, which is highly unusual so when we're talking about colder winters or warm winters, are we talking about across the country or specifically in the northeast? >> your prime consuming region is across the midwest, south and east coast when we're talking about as forecasters, we're really looking for that area to get really cold. that's what drives a lot of the demand sure, you get some demand in the

west, but, typically, all your strongest demand is in the east. especially in the northeast with regards to heating oil and across the south with natural gas. the extreme volatility you mentioned snow all the way to louisiana that's extremely rare for this time of year no surprise gas has been up so much over the past week or so. >> good to see you, dan leonard with the weather company take a look at the markets right now. up more than 200 points on the dow. now, remember, we were down about 300 points earlier in the session. nasdaq had been down nearly 1% leading the dow, cisco, caterpillar, 3m and apple. apple rallying after falling into bear market territory yesterday. just ahead, the technical take on apple. "power lunch" is back in two

so, you see home builders getting hilt today kb home on pace for the worst day in 25 years in the stock market the company reported a decline in orders for new homes in the current quarter as rising

interest rates hit the housing market overall diana joins us from nyu real estate conference. she's with owner of the miami dolphins all yours, diana >> well, i'm not going to talk about football, that's for sure. i will talk about rising interest rates with steven ross. thank you for joining us. >> pleasure to be here >> we've been seeing rising interest rates how is that affecting developers like yourself? >> well, i mean, today the housing markets are overbuilt in most areas of the country. whenever you increase rates, you reduce the affordability issues and, therefore, you limit your market, you have a smaller market you're selling to and in soft markets you want as broad a market as you possibly can. so, those rising interest rates will certainly have an impact on the number of buyers and what they are looking for and what they can afford. >> and your building costs as a developer. >> we're still at pretty low

rates than what we're used to and what the job has projected and today there's just so much available capital today to real estate from alternative sources. the ability to get capital for real estate. those rates will not impact developers if they have money, they're going to build >> you talk about softening markets. manhattan is one of them especially on the high end prices down in the double digits is that rising interest rates or state and local taxes? >> you know, people haven't really felt it in their pocketbook yet but certainly the smart and really wealthy people understand what is coming and the question is, you know, i think they're looking to see what happens out there. people are hesitant. they're on the sidelines >> will it get worse in manhattan before it gets better? >> it could. because there is a lot of supply so, therefore, from the standpoint of, you know, being able to sell and people know they have a lot of alternatives

and no really rush to buy today. i think it will change all that with hudson yards when they see what we're selling there because it's so unique and unlike any other market in the marketplace. >> you have condos and rentals will this help the rental market which we're seeing >> the rental market has been really strong across the country today. because i think today people are, young people especially would rather buy, would rather rent than buy. i think it all goes back to the housing crisis when they saw what happened to their families in 2008 and the dislocation that that occurred. today i think we have with the younger people more of a desire to rent than buy >> so, is new york city overbuilt in your opinion? >> i think you could say new york city is overbuilt >> you can with amazon, we can't not look at that news there 25,000 potential new workers. >> that's over ten years the amount of jobs new york produces it really shows you, one, that

new york, how great a city it is where people want to live and they come to new york. amazon why? to find great talent corporations only survive being able to attract the best talent. and, certainly, new york and the place where most millennials like today, as you can see, the demand is great. the city is growing and i think amazon is here to really capitalize on that >> do you wish hudson yards was on the east side a little closer to long island city? >> i like where it is. i think hudson yards will change the way that people really look at new york. we're creating a live, work, play environment in an environment that never existed before i like to say as new york should be >> okay. stephen ross, thanks so much for joining us back to you, melissa. >> thank you very much, diana and our thanks to stephen ross another wild swing day for the markets. the dow was down nearly 300 at its low and it is now up by one

full percentage points we'll get toy'das action and what we could see in the final hour before that bell rings. stay tuned

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stocks coming off of session highs. pulling back from pretty big losses what's behind this bounce back let's get to fast money trader good to see you. we talk about that woosh moment. i don't think we are out of the woods yet. this is the level i have been asking for the market to test. i mean thinking ability this level this is the february low this is the most recent low here so in the cash hot from that level once you got these trade

headlines we popped up by are at 2725 whether you want to get back in this market today or you want to sit this one out we are here are here it's the clearest reverse head and shoulders. >> it is >> a lot of tech nixnicians. if you get a pop from here it finishes off the reverse head and shoulders. >> yes this was the left shoulder that's 2710 over here we broke that level here to go below it it is a violation here

you don't want to see that we held where we should have held it's not if we have that right shoulder we are stuck below that mark >> apple finally showing some you buy this move. >> i would agree with her at this point this is back in february this is april 30th it was the last day. this is the february break over here it would be day three. last time we are still below it. i believe we are still below it. you have to wait to put new money to work until we close above that 200 day moving

average. >> you to shoot to get back in the apple tree >> sounds like not yet for apple at least for today >> look for lower prices every time we see a trade positive headline moves the market it only moves the market inkr k incorrectly. >> check please is next. melissa is gng toio love this one. >> i can't wait. >> you'll love it. i'm telling you.

>> we have the ceo of acreage holdings we'll talk to the ceo about the dynamics of legalization in the country of canada and around the world. >> don't forget to watch nightly business report tonight. john lewis and they ra famous for their annual christmas add vert it is out there now and it features elton john. it is fantastic. it features all phases of his career you can find it all over twitter i'm sure today

>> that is amazing >> they play one song throughout look at the video that they have from various teenagestages >> thank you for being with us today. >> always my pleasure. >> closing bell starts right now. >> it's time for the closing bell at the new york stock exchange wall street is watching the u.k. amid high level. we'll explain what it means here in the u.s. >> it is what is the bubble. we have more ahead >> i'm morgan in for kelly evan