there. now the dow down 368 >> here's your stat from bespoke. worst month for the last hour of trade since 1987. >> what a way to tee um the "closing bell" for the last hour of trade it starts right now. how cheerful thank you. kelly and tyler. welcome to the "closing bell." i'm sara eisen and it is a fitting end to a very rocky week here on wall street. major averages all over the map. currently sitting at the worst levels of the day. down 2% on the nasdaq. almost 7% for the week. >> good afternoon. i'm wilfred frost. have a look at what's driving the action pulling down other streaming names with it, the stock could

turn in the worst session for nearly a decade. treasury yields are pulling back sharply. 10-year down bitcoin dropping well below $40,000. as we've seen all week anything can happen in this final hour of trade. might be negative on the screens and trying to deliver it with a smile. >> anything can happen it's why it's always so fun. we have a great lineup to navigate today bank of america's jill carey hall joins us. tony dwyer will tell us how long the selling could last scott black with three major concerns for the market and a new stock pick he likes right now. >> first let's get to the big action with mike santoli and joining us is luke munster

mike, the broader markets selling off in the session. >> untrustworthy bounce after the morning sell-off 10:30 the low and below that not a lot of sort of convincing persuasive buying power coming in the market looking oversold. some of the sentiment and positioning data making it look like we should have a relief rally but no saying when that comes and what the start of a deeper downturn looks like 200 day moving average something like that. didn't come within 3 or 4% of it at the lows in october and pierced that now not anything that's immediately decisive but the major uptrend line in a bull market. still sloping higher that's okay. but that shows you that there

was really nothing special about that of buyers waliting there. 4300 about 2% below this. a lot of things coming into the mix here gone back in months with this pullback this week take a look at the credit markets. it is a thing to point to to say this doesn't look like a panic and look like a whole lot of credits stress in the system these are the etfs that track the high yield, the investment grade corporate bonds and government you see high yield still over a few months outperforming today underperforming a little bit and still a cushion there. that's something that says it's less about credit risk that's building up and the fed, the fact that we have an earnings step down and then the reactions to netflix

what's it done to valuations we continue to compress forward valuations if the earnings come through at all nasdaq 100 had peaked around 31 times. this goes back here in 2020. it's now down below to 26 let's call it. above the peak that we had before the pandemic. the s&p 500 is right at 20 20 times forward earnings. down from 23 above where we sort of peaked in prior runs to previous highs and then the equal weighted s&p looks reasonable around 16. valuation's not a timing tool but tells you how forward returns perhaps might improve compressing valuation today. >> clearly a negative week s&p down 5.4% for the week we have talked about selling off intraday and closed at the lows. does it make it worse that that's happened when yields have

stabilize? >> i don't think it makes it worse. it explains what's going on with yields at this point the treasury market is in a sense orpt operating with the equities and maybe we have to pull on the horns about growth and inflation to look like and happens sometimes the latter stages of a stock market pullback and need people to start to giver up and start to bid for bonds i don't think that's an it makes it worse it is the same equation of backing away from risk. >> only staples higher in the s&p 500. mike, see you soon thank you. what's not happening today netflix. shares are tanking

gave weaker than expected guidance and noted intensified competition. stock down 23% on pace for the worst day since 2012 bring in managing partner at loup venture just welcome. is this a thesis changing quarter for netflix? because that's how the market is treating it. does that make sense >> makes a ton of sense. it is the right question and it's the right question because what netflix is, it's a company, a stock, a tale of two cities one is, of course, the incredible business that their built. sticking 220 million subs. they're world class at making content and many, most would say if you keep one streaming service it is likely netflix that's one side. but we turn the page to what's next and where are they going? what's the next city

i want to put some context around the sell-off means. before the pandemic, netflix adding 25 to 30 million subs annually in the pandemic that stepped up to 35 million plus now if you take the guidance for march and apply it to the balance of 2022 it would suggest below 15 million for the exiting pace this is a growth story there is one pressure point on netflix. it is sub adds and some of their commentary was it will be transitional and when you mentioned that your question is, is this a thesis changer, i think it doesn't change the thesis for someone who wants to invest two to five years but investing in 2022 needs to take into consideration that typically when you see these pressure points move in a

different direction, when you see them miss in a quarter with a growth stock it is rarely done after one quarter. typically two to three quarts. peloton is a perfect example of this dynamic i think zoom we'll see how the quarter plays out. this is something that needs to -- people need to make readjustments. i expect the june guidance is difficult and stock low every and then starts to work after that. >> down of the%. like tell upon wiped out the pandemic gains it's going to close at the lowest level since april 2020. my question is the other stocks knocked pretty hard as a result. the market is down but in sympathy disney down 7% why does that make sense a lot of these companies with the streaming businesses at very different points in the cycles of growth than netflix or does the

category get rerated and revalued >> no. i think it's the former. doesn't make as much sense obviously part of that sell yaufr is related to the broader market but sympathy selling on netflix. we talked about the importance of sub growth. it is really important for the other two companies so i suspect those are ultimately opportunities and when i say -- use the word opportunity i do it cautiously i'm a technology investor. when i think about when is the proper point to get more involved with buying these that pulled back we talk about disney, for example, i think the fed needs to sort itself out and give investors confidence with the trajectory and the rate.

i would feel comfortable to be aggressive with the stocks that sold often. >> the nasdaq at session lows. composite and the 100. which of the mega cap names in your view has a chance of doing something similar to what netflix has done this quarter? not to the same scale but a bit of a miss on the earnings to the result of selling off the following day. >> amazon. the way i think about it is if we think about faang as being a series of generals, five -- the first is taken out here and i think that there is risk that some of the other ones will come why that's an appropriate question amazon's business has had a nice pull forward because of the pandemic all faang did. but amazon and netflix in particular have seen a pull forward because of this and i suspect given the valuation

amazon's stands alone as an outlier in faang i'm a big believer in the company long term but to answer your question which is most at risk it is that and then the safer ones is i think apple and facebook are the two safer ones. >> okay. gene, thank you so much. >> thank you. we're at session lows across the board for the major averages down 2.4% on the nasdaq. coming up, we'll discuss the case for the small cap part of the market russell 2000 down around 10% this year and a guest will make the case to stick with the group and why now's the time to buy that you're watching "closing bell.

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welcome back an ugly day on wall street small cap stocks have seen a major part of the selling of late down about 11% over the course of the year so far where the s&p down 7.6%. let's bring in jill carey hill of bank of america clearly small caps suffering of late are they always expected to move more than the bigger cap stocks? >> thanks for having me. yeah this is a buying opportunity for

small caps we were positive for the year and that's not to say that they're without risks because there are things going on. covid and uncertainty of omicron is one small versus large caps relative performance is core lated. the good news is starting to see that turn around which could be a positive for small cap performance. and it was interesting if you look at the benchmarks mentioning the performance year to date, not all small caps are down as much as the russell. nasdaq 600 is performing in lean with the s&p 500 so when you look at sector performance within the russell health care is a big detractor and cautious on that area.

sort of a lot to unpack there but overall the valuations have been pricing in a lot of bad news and cheap versus large caps. >> which sector stands out to you most of all? >> within the work the cyclical sectors are ones that are very cheap and rank well in the work. energy, financials, real estate and consumer discretionary is ranking better than in the large cap work the domestically oriented cyclicals and from a style attribute factor we like quality. within regimes like now where fed is expected to tighten, later in the cycle, typically

quality is an outperforming style and earnings rather than don't. value performs well in these spaces and sticking with cyclical growth stocks surprisingly the stocks that have the highest expected consensus long term growth rates are not ones that tend to perform well in this phase of the cycle. >> i feel like we should underscore the underperformance. small caps are off like 19% from the intraday record highs. it's been dramatic underperformance why is that? just omicron hasn't the market moved past omicron? >> going back to the -- if you look at the different small cap benchmark the 600 is performing in line with the s&p 500

the biggest difference between the s&p small cap bench mark and russell is health care the biggest drag on the russell 2000 last year and year to date is a key driver. omicron certainly is a factor but i think at this point valuations are really severely discounting that looking at consumer discretionary which is the most covid exposed sector the relative pe multiple is trading at covid lows prior -- financial crisis lows and baking in the worst-case scenario and with the sell-off seen small caps trading between 25 to 30% discountn pe typically trading at a 2%

premium and extreme valuation discount 2000s and despite the volatility and similar pullbacks we saw in the early part of that decade. >> been a tough week and start to the year. thank you for joining us from bank of america. >> thank you >> mike, this final hour has become so painful for so many investors who are long and an unfortunate pattern. what is the significance of the sell orders in the final hour? something about russia and ukraine? seeing a bid for safety? >> yes at these times anything that can give you pause in terms of taking risk higher or prevent taking risk lower is in the mix. and i think russia is in the

back of the mind go back to 2014. looking back at 2014 when russia invaded crimea not as if that's the story of that year but it shows you that there's a broad active investor retreat from equity exposure. that's redundant but no longer the case to allow exposures to go higher and profit taking ready to spill into the market this year and all that means that we are looking for a kind of a more extreme version of an oversold level and people upset and thinking it is nothing lower from here. some stuff to watch intraday is for example the put call ratios spiking to levels that mean people are worried and no longer do you have that accomcome placn

sy in the market most years in history will have a touch of the 200-day average it doesn't necessarily tell you which way it goes from here. in early 2018 coming off a great year and then we had a correction basically touched the 200-day average. managed to recover and then when the credit markets rebelling you just sliced right through the 200-day to a 20% decline not as if it's a bounce point but it is a place where things gather up demand and see if that uptrend will stay intact. >> ukraine is a factor and today is netflix how significant is it that the likes of amazon and disney are down more than 5% each in lieu

of that? meant to be blue chips don't have the same valuation multiple as netflix. does it suggest that like what we saw with goldman sachs everything is vulnerable to the slightest of misses? >> yes at least though within the sector that seeing the aftershocks. amazon is in the sector. as far as i can tell about did they overearn in terms of prime sub adds over the pandemic that seems to be -- plus a media company like disney and netflix. at least it's siloed into that but in general yeah. underwhelming responses to earnings won't help. i could see it being the case that netflix is punished this way and then by contrast if you see the alphabets and the microsofts and the -- yeah, and the facebooks come through and just display their much sturdier

business models assuming they do as they usually do that could be support. i don't think you can say a straight line from the negative reactions and the way it will be for three weeks. >> mike, stay close as all as we head into the close. take a look at where we are. dow down about 400 points right now. biggest drag is disney with netflix. things that are working? excu consumer staples mcdonald's nike trading at new 52-week highs or a record high. take a look at the nasdaq down 2.3% just a brutal week for the nasdaq down 7% on the week 10-year yield at 1.74 as buying of bonds picks up. peloton stock bouncing back after a brutal session

yesterday. we'll tell you what's behind the comeback next. also check out the top searched tickers on cnbc.com. netflix taking the top spot. down 23 prts 10-year at 1.74. peloton up 12% nasdaq down and bitcoin taking wn on the chin today do 11% we'll be right back. r man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.

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peloton is rebounding today after a big sell-off yesterday shares fell sharply when cnbc.com broke a story that according to internal dock ms the company planning to temporarily halt production and looking to cut costs the ceo now denying claims that all production of bikes and treadmills halted writing last night we feel good about

right-sizing the production and as we evolve we're resetting the prurks levels for sustainable growth the stock moving higher epa today upgraded to buy with $40 price target saying the stock overcorrected. it is trading up almost 12% after a tough week and follow the developments here for peloton on cnbc.com. wilfred? >> yeah. 12% bounce is only small all things considered. check in on citi upgrading under armour from a sell to buy. the stock is up 1.4% sunpower sinking after an update of the fourth quarter results expecting irnings at the lower end of guidance with weather and omicron. down 17% as you can see in

today's market, sara. consumer staples turned red. every sector in the red. crypto is under pressure we have more on what's driving the drop >> it's been a rough start to the year bitcoin recently hit a low of $37,728. a level that we saw this past summer and still not for the faint of heart second large esz crypto ether down on pace for the biggest weekly decline since last may. throws in others down double digits and then cryptocurrency stocks that tend to track bitcoin like coinbase plunging today down 13% and microstrategy and also down.

but a trend. as of late especially this year cryptos and stocks falling in tandem as they worry about fed tightening policy and seeing a relationship over there. no doubt 2021 is a watershed year and regulators are starting to catch up like in russia adding to volatility this year wilf >> thank you so much by the way, saw a tweet that they think and hope that the next support is 2600 down 10% is the 2700 at the month employment so maybe a level to watch out for there jim cramer will talk about crypto calling dogecoin a bubble in the update today. make sure you sign up to the club and point your phone at the qr code on the screen now to do so. we have a news update next from rahel solomon hi. >> hi. yumpt of florida will not be

able to stop faculty members from giving expert testimony in cases that oppose to the state of florida six professors sued citing freedom of speech. they said there's a lawsuit that kritdices say restricts voting rights. prosecutors issued charges against a lawyer acued of stealing nearly $8.5 million and praise continues to roll in for the larger than life rock star meat loaf composer andrew lloyd weber tweeted the vaults of heaven will be singing. it would go on to sell 100 million records. and in 2016 stopped by the new york stock exchange for an

appearance on "closing bell" and spoke about the new album at the time and bemoaned how little money artists make from streaming. he was 74 but always young back to you. >> i think i was lucky enough to be on set that day thank you. let's bring back mike because we have a big sell-off again and starting this year with a third week in the red for stock just the main culprit is this backup in treasury yields and worries of the fed and inflation. yields are back lower and everything is down what's the flavor in this final hour >> i think it's just the market continuing to get twisted up in the fed is behind the curve narrative. the idea that in this fed official speaking blackout week it is allowing imaginations and speculation to run wild with

ideas to stop expansion next week an maybe raising. i think that combined with the fact we are in an economic soft patch and the market itself has just been too unstable i think the volume liquidation of first the story stocks has carried on deeper than many expected, than i expected i thought january was a time to actually get a lazarus trade in the names. it did not happen and massive portfolio destabilization. in some respects it is textbook. coming into the year it was expect more volatility than last year perhaps less rewarding market for up versus down volatility. expect less universally great earnings that was what the playbook told

you to expect and i think it's a concentrated dose front loaded and i think the market's gone a long way to price in whatever this fed path that we can imagine from here. >> in terms of the cross currents are working not like a massive flight to safety the dollar is lower. so along with other commodities. let's bring in paul hickey from bespoke on the news line you have the stat on the final hour of trade. today is another ugly ride with a bunch of sell orders what's with the final hour lately >> we have seen an environment this year where the market can't hold on to any rallies we are seeing in the last hour the last hour of trading is a few more days in the month but ending the month today would be the weakest last hour of trading

to october of 1987 that was a bad month as most people remember or has been told there's been really steep selling pressure this week we saw two days in a row where the nasdaq was up 1 prsz intraday and finished that day down more than 1% not happening since 2001 and a handful of days back to the mid-'80s seeing that happen back to back days there's just a complete lack of buyers out there maybe the retail money in the market is not as eager to buy here smik was outlining the riskis in the market the fed is tightening. the economy is slowing down a bit. and those are all headwinds for

the market and i think people are just trying to take profits where they can. >> i think what's particularly ugly is the action in some tech stocks amazon down 5% why these are the most widely owned stocks in the market how much do you think that is contributing, the fact that it is causing retail and institutional pain and potential margin selling with the names? >> you don't see $250 billion companies lose 25% of the value in a single day so that's definitely volatility that people aren't used to seeing we're seeing that we saw jpmorgan chase with the worst earnings reactions day in over 20 years goldman this week. there's sell the news reaction in stocks reporting earnings

of companies that reported this month on average declining close to 2% from the open to close even if they gap up higher so what we are seeing is investors again they eesh taking the opportunity to raise cash and when you look around you haven't seen anything going up in price, even the dollar you mentioned was down it's been a lot of -- not been many places to hide but eventually hitting the extreme oversold levels. sentiment is in the lower range even before today and yesterday's trading. so those kind of things should at least set the stage for some sort of short term bounce here but it is a midterm election year and known to be extraordinarily more volatile

than the average year. >> what would you give you confidence to have a bounce? what factors do you look for >> a short term bounce looking for the extreme oversold readings and depending on where things shake out today we could be close to the levels but next week we have the fed meeting. we'll see what the fed says. coming out of that meeting unfortunately we are in a blackout phase right now and won't hear anything. i think if you -- i think there's a concern that the fed will hike too much as we are hitting slowdowns in the economy. housing data isn't strong. retail sales has shown some weakness we have fiscal head winds facing the economy here so very aggressive fed could be a

one-two punch that would really hurt sentiment and could pose a roadblock for the economy. >> paul, thank you so much we appreciate it. >> thank you have a good weekend. >> you, too. financials one of the worst sectors this week down 6%. among the names hit is citizens out with earnings. stock down measure than 10% since tuesday and chairman and ceo joins us now in a "closing bell" exclusive. it's been a bizarre quarter if you are just looking at the earnings and the guidance and the shash price reaction for the sector clearly based on the last conversation have you been surprised how negative the stocks of yours and the sector reacted to what should be a great environment for banks? >> i would say coming into earnings the whole sector ran up

and we were up 17 at one point we published very strong earnings for the fourth quarter and full year and had a great guide for next year and sold off quite a bit since then i think this is retracing. we had a lot of hope that the fed would move up and the 10-year curb would steepen and benefit baengs and the 10-year is retracing so maybe the bank stocks got ahead of thoems and we are still going to be up about 7% year to date which isn't so bad in this market. i would describe this really wilf as a wobble i think conditions are set for a strong economy and so, i still would call 4% gdp for the year, up employment down to 3.5% the companies with individuals,

credit outlook is very strong. so we think there will be a pickup in loan demand and the rates will be helpful. put that together and we are pretty confident this is going to be a very good year for us and banks in general. >> people have been focusing on outlook for costs and got hsbc acquisition to put through the books. if uyou are able to strip that what's the outlook for costs >> interestingly what we have done consistently is had the series of tap programs to look to take out 100 to 200 million per year in efficiencies we have another program for 100 million and they allow us to invest in the business and going digital, in technology and so while still keeping the overall rate of growth under

control. if you strip out the acquisitions we had a 2% expense groetd growth rate and looking at 3%. so we're doing the job on expenses not shorting the pot making the invest. s and capital market revenues for the quarter exploded riding the wave of private equity putting that to work and want to buy middle market companies so we are able to source deals and find -- make an m&a feed when they want to sell themselves and another fee when private equity buys them and there's good secular trends to invest in years and assemble the pieces to ride the revenue wave and that will continue throughout the year. >> bruce, i wanted to pick up on something you said describing the economic outlook you said you see 4% economic

growth this year even with the federal reserve in tightening mode you think the consumer is that strong >> yeah. i would say you still have to look at negative real rates and even if the fed moves three our four time this is year rates are relatively low i think the fed will -- are data dependent. how's the economy going? is supply chains issues curing inflation is starting to come down may not have to be as aggressive but i don't think they take the punch bowl away too tsoon we can grow and be calibrated to what they see in the year. >> thank you so much. >> okay. my pleasure. back to the markets with 15 minutes left of the session.

we are now in the "closing bell" market zone. mike santoli will break down the developments and we have nancy tengler as well. the broader markets sharp selling today. we have just bounced a little bit. now down only 2% on the nasdaq and 1% on the dow. which is at least a break from the last couple of days closing at the lows. >> right 1 15 minutes to go it just continues to churn around that 200-day average level. it is not the cause of the overall pressure on the markets but it's made things whippy. you have this kind of offsetting factors. also a market that's acting of a

different character than last year the dips were shallow irand the recover ris very quick and now how many times last year did you want to buy the s&p at 3-month-old? the vix looks like it wants to go lower. >> nancy, what are you doing on a day and a week with the nasdaq looking like a 7% decline for the week >> thank you for having me we have had a hedge in place for the klclients. there's protection to add around the edges. we were in yesterday adding to some of our tech names, industrial names and energy. those have been the overweights with materials i think you have to be prepared for this kind of volatility with three years in a row of robust returns 100% total in 3 years.

so we wanted to have protection and then moved defensive because we knew growth was slowing and wanted to barbell the portfolio with the sectors to do well in a slowing environment and some to do well in the middle of the cycle and seems to have worked pretty well for us. >> mike, in terms of earnings season continuing is that the biggest threat at the moment seeing the reaction to netflix and the way it's dragged others down getting into next week and the sectors that are reporting >> it is tough to characterize it with confidence as just a risk because earnings season often goes in these phases of everyone knocks the expectations down and then the following week a net relief hard to generalize as you know

earnings forecast didn't move that much for the fourth quarter. could be a positive or a negative and seems to me when the s&p 500 is down 400 points in 17 days or something like that it's not as if most of the stocks are priced for beat and raise scenario and got to figure out sector by sector and usually what happens is net basis deutsche bank said that the tendency is an upward drift in the s&p 500 with ton of offsetting movement. that would be a relief to mean less index level selling the way we have seen the last couple of weeks. >> the drama continues we are off the lows now on the dow. consumer staples and real estate

green in the s&p 500 i would hardly call it a rebound but off the lows with minutes to go nancy, where do you see the biggest opportunities in the sell-off would you dip a toe into amazon which is now more than 20% off the highs? >> yes with a three to five-year time horizon yes. this is an opportunity we know that the ism manufacturing is positively core lated with operating earnings. expansionary and slower. we think peak eps in q2. may have hit peak inflation in q4 which is not to say it will go away so we want to continue to -- if things are slowing we want to continue to add to the technology names with the growth at a reasonable price growing the dividends. look at microsoft trading at 34

times with 15% growthand 36% margins versus a p&g and mcdonald's that i own with 8% earnings growth. look longer than the scare technology has been one of the best performing sectors looking at the rising interest rates than the others. this is an opportunity to add back into names that we have been trimming in the summer and fall. >> what's not helping the nasdaq's correction is netflix shares plunging after warning of increasing competition julia boorstin is here julia? >> that's right. netflix shares down 23% on far lower than expected guidance for the first quarter. netflix forecasting the addition of 2.5 million new subs rather

than nearly 7 million anticipated. co-ceo writing to covid and competition and talking about future potential. >> we're building the muscles steadily with the consumer products both like the "squid game" track suits and experiences that are mobile and portable and set them up quickly. obviously the games muscle we are very young on and building. >> we have counted at least nine analysts downgrades on this news the report raised long term questions about the growth potential. concerns that the investment in content is not translating to subscriber additions cutting the price target but maintained the outperform rating saying investors should consider buying the dip

back to you. >> kind of a split on the analyst take on this downgraded the stock jpmorgan stuck with it thank you. mike, what does this do to netflix's very premium valuation after a sell-off like today? >> we have to see where the forecast go for earnings, revenue. it's been at a massive premium 30, 35 times enterprise value to cash flow before yesterday's report mostly because it's a simple model and when you get enough subs in the model the scales really works well and a question of that point when aufll of a sudden the content costs are spread o the base. mentioned yesterday the consensus before the report for 24 million net adds in global subs

this year and next year. starting this year at a 10 million annual run rate of 2.5 million and expect it to pick up and the difference of what we valued the company based on before the guidance and where we are right now. netflix had the massive draw downs in the past. so it's not game over. it is going to have to convince people that the overall progress of the model is still intact. >> nancy, your take on netflix >> yeah. we have had trouble with disney. i think streaming is fragmented. i agree with mike. this stock has a history of big moves so i'm not willing to step in here. we are rethinking the disney story, as well priced on streaming and not necessarily given credit for the rest of the businesses and i would let it settle down and

then maybe take a fresh look after earnings season and companies buying back the shares. >> have you saying that you don't have faith that disney streaming growth can surprise in a good way >> yeah. and when you have a company like disney and also an amazon where they have multiple businesses you usually head the headline business that pulls the stock down disney is a great company. maybe not such a great stock we own it in the 12 best ideas portfolio and rethinking whether or not it is a best idea at this point. little late and rethinking it. >> railroad csx under pressure frank holland here to explain why. frank? >> really appears to be a case

of blaming the messenger csx flagged hiring constraints expenses and trucking acquisition and contractors to increase by 44%. still volume down 2% the question investors are trying to figure out is where can csx grow they make act four times as much volume by the autos. back over to you. >> thank you how do the railroads in general look off the csx call today? >> obviously everything is suffering but they come off a relative decent spot in terms of where the stock had gotten to and the volume just considered a beneficiary of the logistical

issues out there i don't think that's a main trouble spot within the transports and the airlines that d dragged things around. so i think -- i don't think it changes the overall story. >> nancy, when you consider the broader industrial space is that cheap and therefore buyable at this level or only cheap relative to the netflixes of this world >> yeah. we focus in transports of u.p.s. and federal express and we own infrastructure names like a water treatment company and jacobs i own csx personally it is a great company. it is an efficiency metric that's missed and has people concerned. stakes are high after the kind of earnings of last year and any stumble or stutter puts pressure

on near term but well positioned for the intermediate term. >> mike, back to the broader market and the tech impact in particular because we haven't seen a day like this since 2012. a stock cut 24%. that is so widely owned and come back to the point because i wonder if there's a snowmobile effect with retail investors and margin call selling and everything else in the miss with a netflix and an amazon down 5%. these are not your typical stocks. >> no. and this is typically the way of a sell-off drags on long enough to migrate up to the super cap names and the ones that everybody had comfort in i don't see it as driving a huge washout in the names apple doing 1% sort of plays to its own tune

usually so it is not sweeping across everything. microsoft, massive upside overshoot. looks like it is hard to chew through a lot of the prices above, coming down from, doesn't mean it is busted. doing 1.5% today there's distinctions drawn even if it is indiscriminate in the selling starting in the speck lative small stuff. >> just understoo two minutes. >> pretty close to a 90% downside volume day on new york stock exchange not going to click to that quite negative as you can see. 4.1 billion shares on the downside 00 million on the upside look at the new highs and lows in the nasdaq. new highs and lows this is washout stuff.

1 in 4 nasdaq listings today made a new 52-week low there's bond funds in there and whatever else but that is a massive number and may feed the idea that maybe we are getting a fuller flush today we'll see. volatility index back up to 30 you want to see it up there and then pull back going into the weekend in a pretty agitated state so not a lot of relaxing on a friday close, guys. >> no. not a lot of relaxing at all a friday and a week to remember. look at where we are boo the close. the dow down 370 off the lows but still a very negative final hour of trade getting used to lately boeing, visa, goldman sachs at the bottom mcdonald's holding up the best s&p 500 into the close every sector down but staples and real estate.

communication services down the most thank you netflix and amazon materials down as well the s&p 500 is now about almost 9% off the record intraday high. it is about 7.7% down for the year and for the week it's lost about 5.7% really a tough week for stocks overall. nasdaq closing down 2.75%. down for the week 7.5%, wilfred. >> tried to bounce there at the close. didn't achieve it. welcome to "closing bell." i'm wilfred frost with sara eisen and mike santoli scott black will join us. hedge fund manager dan niles to help us navigate the tur moim in the tech sector.

one of the fiver choices is cash nancy tengler is with us and joinings is tony dwyer tony, let's get your take on the action we have seen this week and today in particular. rounding off a week to date decline for the s&p 500 of 5.7%. >> it was a little bit flushy. i was on last week with sara on "fast musoney." when the market is up 25% in a calendar year history shows early pullback by 5.2% so what you have been talking about you have gotten some tactical stuff washed out and you more than met that median drop and it was this week's

action that did that >> tony, in terms of the sectors that you're more confident of buying at this point, is it very hard to differentiate in a broad sell-off as we are or sectors you think is the time to put money to work? >> the call for the year is plus or minus year. that's in the december 2022 outlook. concentrated the first half is tumultuous we have uncertainty and getting worse and will have the periods of whooshes and the idea is to take idea of those so to answer the question directly if you get a bounce back at this point i think it's 6% of the s&p 500 is trading above the 10-day moving action the rate of change on the vix is i think 50 those are two tactical indicators to suggest that the environment is ripe for a

bounce the bounce would have to be in the growth stocks that have been beaten down. remember that's been because of interest rates how interest rates spike in expectations of fed moves and some is given back so given the oversold nature from i think you get a bounce but it's temporary takes a while to repair the damage there. >> it is official. s&p having the worst week since march 2020 we remember what was happening then today there's buying of treasuries and yields came back down to 1.74 which is a different characteristic than the selling in stocks lately geopolitical factors, do you think that's playing a role here if so is that justified? >> i think it's everything when the environment was ripe going in to the year and you

find excuses along the way and certainly the move in interest rates to me and what -- if you remember we talked about this last week they haven't stopped buying bonds yet and all of a sudden we have them raising 50 basis points in march and tightening the balance sheet. >> will they get a chance? >> i think exec tass got too far ahead of thms and created a concentrated market in these high valuation, high growth or mega cap tech names. >> mike, in terms of the move in the vix up to 29 by the close. what levels trigger people say we have enough of a shooter higher >> doesn't go the absolute level. you think you want to see it race higher in a steep way and then the fever breaks and comes

down there's a kink in the future curve. sometimes means the market is that much unsettled on the guard. want to see 3 or 4-point drop from a high and a start to i think it's interesting even with this pretty comprehensive carnage out there in the market today you did see the equal weighted s&p outperform the regular s&p by almost a percentage point so it shows that there's a little bit of more resilience at the average stock and a top heavy decline as the fourth quarter was a top heavy rally. >> i wonder how much crypto is playing a role here, tony. today was double digit declines in bitcoin and ethereum pummeled there was a blog that warned because crypto is so widely owned and so big it has more

systemic implications, could have snowball effects on stocks. do you see a connection there? >> the connection is the werlt effect we are not discussing the pain in the stocks that are very widely owned that are down 50, 60, 70%. crypto is hit. those are really widely owned and have a significant wealth effect going into the whole mosaic that i didn't think that the fed is raising rates like so many analysts have adjusted the forecast to and part is this weakness from the underlying assets that people own it is not pretty like mike said, an opposite of last year and the cap weighted indices rally and now those cap weighted indices are in pain with the widely held assets.

>> falling markets like this tightens financial conditions and might give the fed cover to not hike or whether it's cover or legitimate reason not to so do you think that's enough to stem the short term negative momentum >> i think so. we are in the minority on this but we are not convinced that the fed is going to raise five, six, seven times some same people thought we wouldn't see rate hikes until 2023 we are still expanding the balance sheet. i think the will to raise more than -- i think they will be aggressive in the beginning and then as the tenor on the federal reserve board changes and see a decline in inflation which we think we'll see i think that the fed will relax and maybe work the balance sheet a little bit i was talking to an old colleague that started in this business in the '60s and this is the most complex investing

environment in our careers it is difficult to navigate the moving parts you have to be disciplined how you invest in the next six, 12, 18 months. >> it is such a predicament for the fed because you see a few week just the nasdaq lost almost 7.5% this week with the fed not having stopped buying bonds at this point or having raised rates at all are they going to have to be less aggressive if this starts to have a triple effect? this factors in. they watch the markets factors in to financial conditions and what happens in the economy even seeing the crazy elevated inflation prices. >> seeing the ism come down from above 60 what created the inflation a good part is demand and it was demand because you threw so much

money at this, the historic money in excess liquidity because the market gains from that as well created this amount of money to buy stuff because everybody was home they bought stuff. now add on to that the supply chain constraint which creates a supply side issue. inflation is real. no question. getting into the middle part of the year what if we've had this effect of the wealth half which is the call and you have inflation back to the 2.5% there is no question inflation is high. labor inflation. going to stay elevated but what if it trends to 2.5%? and you have started to resolve the supply chain issues. that's what the 10-year inflation break evens suggest.

the fed is going to be successful or is at least perceived to be successful to contain inflation. >> tony, what is your take on the mega cap tech names in light of netflix's reaction to the earnings today >> extraordinary and there's far too high concentration there i think there will be a bounce there and i could see the headlines. dwyer says buy i'm saying that there's a nice reflex bounce here in the growth stocks because the interest rate environment looks like it's imp improved there's been so much dablg damage and represent a significant portion of the s&p 500 relative to history. >> tony, thank you so much >> thank you >> nancy, we wanted to get your

zone in top trade idea right now. >> freeport mcmoran. we're buying it not on global growth or strong dollar. we are buying it because we think the narrative, the move to green energy will grow the stock. kicking off free cash flow about to explode this year to 5 billion and they solved a mine problem and so that will also improve free cash flow if it declines add to it initiate you want to own this three to five years >> that hit by 5% today. nancy, thank you >> thank you. we are just getting started on the second hour of "closing bell." next scott black weighs in on the market sell-off and the under the radar stock he thinks

is a bargain right now and investor dan niles joins us with the take on the sell-off in tech and whether it could be an opportunity for investors. nasdaq lost almost 7.5% this wel rhtac 'lbeig bk.

major stock averages sinking into the close january shaping up to be one of the worst months of last hour of trading since 1987 joining us now is scott black, founder and portfolio manager at delphi management. what do you make of this volatility lately? >> i think it's related to the fed policy i sent you some notes. from the standpoint of the man date on full employment they did an excellent job and the other is price stability and they got a flunking grade i think bernanke and powell did a good job but way behind the

curve. inflation is 7% is unacceptable. highest rate since june of 1982 and the fact is interest rates are way below where they should be to stem the tide of inflation and there's polly anna from the fed why they think they'll get to the low 2s. i think that's a wild card nobody knows two other things overhanging the economy and the fist one is the duration of the pandemic of the omicron variance and whether we improve global supply chain. there's issues there on the plus side, though, corporate profits is defined by the s&p up 9% this year. full employment will be good under 4% and i think that it's going to be healthy season in terms of corporate earnings. >> so what is that environment shaping up to as far as value stocks which you are a

traditional value manager? what does that mean? looking at the russell 2000 it is underperforming dramatically the s&p. >> yeah. the russell 2000 actually if you take out the net negative earnings 37% it is 25 pe nasdaq is 26 you have to be an item selector the way we are with strong companies with rising earnings at low pes and viewership, don't buy etfs on the nasdaq or s&p. the top ten stocks in the s&p are almost 30% weighting and the top 5 in the nasdaq of 40% weighting. actually out of the top 25 in the s&p, you have 11 of them have a 25 multiple interest rates going up don't expect expansion on this market. >> scott, within the s&p 500 you

see 9% earnings growth this year but the multiple for the group is stretch trade off that for us. does the multiple need to come down 9%? >> no. you have to look at it in interest rates forward earnings of $220 so you can't look at itin a vacuum the pe is 16 or 17 times earnings but we didn't have nominal rates of 1.75% but 3 and 4% bonds are a terrible place to be because interest rates probably back up to 2.5% during calendar 2022 but i think you have to be extremely cautious don't go buy all the new economy stocks with 0 earnings

the snowflakes and spotifies this is the greater fool theory. some have 50 and 100 billion market caps and no earnings. i don't care about runways and motes. if you don't make money it is not a good market in my view. >> so let's talk about the stock picks. previously you pitched dr horton home builders are right in the cross hairs of rising rates. we have already seen mortgage rates go up. what happens to this call? do you hold the stock? >> we hold it with a low koths last year up over 65%. stock selling at about six times expected earnings. short term they are hurt conventional mortgage rates today close to 4% first time in a while.

fbly it is going to dampen the enthusiasm and hurts affordability but i wouldn't be buying home builders. >> let's get the stock that you are buying you have got another new one for us what is it >> i got two of them synix. 10 billion market cap. it is the largest i.t. distributor in the world we figure the company will do very nicely this year with $11 up from $9.40. the return on equity's about 13%. run on total cap almost 10%. they're basically the who's who of vendor with sisqo, check point, intel, microsoft. they address all the key areas of technology.

big data, cloud, networking and mobile so you get a nice surrogate play on the companies and the distribution business is good the latest quarter is back to 2.6% operating margin. they had merged with tech data and about 200 million in cost synergies to be claimed over two years with a year into it so i think it's a good quality company. not much risk. balance sheet is bullet-proof. a billion in cash on the balance sheet and it's a triple b minus and generate free cash and the goal next year is generating a billion in free cash and 50% returns from dividends so i don't think there's much risk and a good play on technology. >> there we go great to have you join us.

thank you so much. >> thank you for having me. cryptocurrencies didn't have a good week. bitcoin down more than 30% over the past 2 months. 11% today. we'll discuss if it's a comeback dan niles will give us his take on the brutal action this past week a ierti, ndntesngindeed he will discuss in a moment. ll,? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪

welcome back yesterday we got jamie dimon's pay. $35 million. james gorman of morgan stanley is $35 million a little bit above dimon's an increase of 2 million for gorman year over year. 33 million last year hard to argue he didn't deserve a pay rise we could debate what the starting point should be but a fundamental year for them. records set in most areas and strong share price performance and the award coming as an only pay for the year and didn't get a special award middle of the

year that dimon got about $50 million and solomon got for $30 million. the pay for the full year up from the year before morgan stanley is -- share price performance over 12 months were strong up 32%. crypto getting crushed in the broader sell-off with bitcoin falling the move comes after the announcement of bank of russia with a ban on crypto and investors move out of riskier assets let's bring in jill gunther. what's the trigger for the selling until last week? >> yeah. look you have to come back to the macromarket just what we are seeing in crypto isn't sympathy with tech, isn't sympathy with risk assets.

in fact it looks like there for a moment this week that bitcoin might outperform for the sec sector but today we think otherwise. >> do you think that people consider bitcoin or crypto more broadly in the portfolios as the most risky asset they have or does it hold any of that aspect that gold did compared to gold that actually it could be a safe haven >> look. i think theoretically bitcoin specifically can be placed in that category of a scarce asset. some of the same fundamentals as gold but as we are seeing it is not get at a place of maturity and bitcoin still viewed and crypto as an asset class as a whole as riskiest of risk assets i think that's right for now

with the uncertainty with the tech and where it is going i think what we are seeing is impatience within the tech sector specifically for real use cases outside of speculation of cryptocurrency and the web 3 time and i don't think that's helping. that's providing an additional headwind in addition to the macromarket considerations that we spoke about a moment ago. >> are youseeing an impact in the prooifrtd market and what you do and venture capital funding to bitcoin and blockchain as we have seen the significant correction over a few weeks? >> not yet there's a bifurcation starting to happen. i suspect this is a theme for the year the market caps of these things will fetch in the private market versus public markets where we

see the public markets obviously taking a beating suspect that they may continue here over the comes weeks and months into rate hike territory, as the narratives take hold. whereas in the venture capital space we see more money than ever put to work and dedicated and mandated for crypto and web3 projects in particular i wouldn't be surprised to end up seeing projects that are still privately traded and privately held actually trading through projects that are publicly traded in the coming weeks and months meaning, that the private markets will outstrip in terms of valuation the public which is a reversal of what you expect with the discount to normally expect to see in private markets and worth noting to see this in equity markets

cathie wood just yesterday on twitter pointing out the dislocation in the public and private in equities, too. >> why do you think that is, jill do you think it's a matter of time before the private market catches up >> it is a difference in time frame where for venture capital investors with tokens becoming liquid on three, four years in general the funds based on the man date and the outlook they're looking at ten-year time horizons here and on a ten-year time high roson looking at the technology like web3 you can putt the macroeconomic dynamics out the window for a moment at least whereas a lot of the investors who invest in the publicly traded cryptocurrencies they have the luxury perhaps in a way of trading on a shorter

time horizon and time themselves and buy dips which you can't do in the private markets. >> it's an interesting gap thank you for joining us. >> thank you very much thank you. time now for a cnbc news update with kelly evans. >> hi. thousands of abortion 0 opponen held a march and rally today in warnd looking for a victory at the supreme court. the justices are considering a mississippi law would allow states to further restrict accessibility to abortions another delay for the next "mission impossible" franchise it was supposedto debut last july paramount pictures said it will be released july of next year.

it's postponed until june of 2024. a novel use for drones dog rescue they dangled a sausage from a drone. feel like i'm reading an onion story. to lure a lost dog out of a mash she was found and rising tides threatened her she was led to dry land and reunited with her owner. back to you. >> >> happy ending the sausage and a drone. after the break, dan niles joins us with the take on the nasdaq's sell-off and forecasting for 2022 later the russell 2000 with another 52-week low. 'lbeig bk "osg bell."

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march 2020 let's bring in dan niles dan, always great to have you join us. i was saying in an earlier tease a top five pick for the year is cash i'm sure you're feeling good about that pick three weeks into the year probably should have had it for all five picks have you deployed that cash? >> yeah. two of the other five topics are up for the year. one is uso up about 12% why the regional bank index up 1%. cash is third best right now to the question on deploying some we did deploy some today. we actually took 10% of the cash in the portfolio and put it into a basket of small cap stocks today in the russell 2000 and about 5% of that cash to work in regional banks which we sold before the start of jpmorgan's

results because looking statistically and we can get boo the reasons why but banks tend to go down and you typically get a better spot to buy in and got lucky i guess and able to buy some of that today in general, we still actually have even with putting 15% of the cash to work we have a lot of cash in the portfolio so we're looking to deploy that going forward. i think the next 3 to 5% move in the s&p is up and not down the next 10% move is lower but things oversold on the 17 technical metrics that we look at and as much as i hated to do it we put money to work and covered the shorts latter part of this week. >> talk us through what gave you

confidence to do that. 15% of the cash to work and think there's another pullback in a few days or weeks but what gave you conferred of a short term bounce? >> as i said earlier there's about 17 technical measures we track and i think emotions are horrible for investing in the market. you want to be selling when everyone is euphoria and buying when everybody wants the throw themselves out a window. the vix spiked on close to 30. you look at the number of down stocks relative to up stocks percentage within bond or bands. there's different things but have things to look at 52-week lows getting do levels where there's

panic in the market but if you look at today you go, well, what really happened? netflix missed now the third quarter. out of the last four you go, yeah, we knew there was pandemic giveback. peloton had another problem. you know e-commerce sales are bad so you're not learning a lot of new stuff and had analysts throw in the towel and i guess there's issues with the pandemic and still some giveback but last year netflix stock was up despite missing the june quarter and the march quarter following amazon being up last year missing two quarters in a row as well this is a continuation the big difference is the fed and the inflation. fed will jack rates this year. working down the balance sheet it is not the 10-year treasury

the yields down 2 or 3 basis points this week you can't blame that for the tech stocks 0er the sell-off in the market it is a combination of thing just we'll see if today was the bottom you are always scared the worst crashes in history bad week, bad friday guys go home and monday they just come in and wholesale selling so you have to be siraned but that's why we look at technicals to take emotion out of it. >> wanted to hit the other two stocks you chose for the year which are alphabet and meta swept up in the tech sell-off. facebook is 20% off the highs. do you add to the positions or less conviction part of the nasdaq where the brunt of the selling is >> i said google is a riskiest

pick from the bunch up a lot and have to be concerned about that giveren in the nasdaq as you rightly pointed out. there's a big difference between facebook and amazon. airlines will open up this year and should have benefit from that and not a pandemic beneficiary. you look at facebook they got stuck in the whole apple tracking stuff they benefited definitely in users i think and got to think through that but gave you conservative guidance for next year you feel better for me we had a ton of shorts coming into this year and now we have basically close to nothing on the short side. because we expected this to occur and i think you interviewed me late december and this is the scenario but you want to match up against tech

stocks with no earnings. something will think out to the future and how big they will be and those are the ones you match up on the short side against it to get through weeks like this feeling better about the cash generation and margins for facebook and google. >> would you apply similar rationale to amazon and apple and microsoft? because i know they weren't in the list of five but do you think they'll held up or are they vulnerable to join the significant tech sellers >> that's an excellent question, wilfred. this is what i would tell you. if you think about 2020, what worked were things that benefitted from the pandemic so whether it's peloton bikes or e-commerce, you have seen a lot -- streaming, obviously.

you seen that giveback and people bought stuff. you can make a case doing hybrid work weeks you need to upgrade the pcs at home and now you need one at work to work two days at home et cetera that cycle could be ongoing. don't need two cell phones if you upgraded the cell phone and the analogy i always make is you had i think four years of down units year over year for four years prior to the pandemic and then massive surge in smartphones and pcs. my point is 4.5 billion people on the plan wet a smartphone and a lot of us upgraded over the course of the last two years to work at home and now you go, well, you don't need to upgrade again and the trends were lower before it start sod the middle part of this year and the

holidays that's the next space i think will have a similar reaction to the oh big surprise that streaming had a problem i think that's the next one. i think demand is fine right now because i think you wept through the last phase of the upgrade in pcs and smartphones but the smartphone stuff is a thing to worry about the most in middle june quarter, september quarters and pcs probably i think more staying power and the valuations aren't crazy in pcs. pretty good value stocks in the pc space but not the smartphone space. >> thank you for joining us. >> my pleasure thank you. up next, it is a tough start to 2022 for the russell. mike will have a look at that big move earnings southbound shifts into higher gear next week. that's late iron "closing bell."

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tough week for investors in small caps even worse let's go back to mike santoli. the russell 2000 closed at a 52-week low and lost 8% on the week. >> just three weeks after the s&p at a record high widely divergent market and a

worst performing small cap gauge. this is the s&p 500 -- 600 s&p 600 is profitable companies. russell 2000 is lots that are not profitable the 600 small cap on net are bigger than the average 2000 stock. what happened to earnings forecast that's the question that maybe explains the underperformance of small caps ned davis research points out the indexes eps expected groelt and both curled lower. a similar expected growth rate i do think that relevant question is the small cap valuation accounts for this? the 600 under 14 times forward

earnings so that's the debate right now in the market, guys. >> jill carey hall covers small caps of bank of america and making the case that they're cheap and you did that in another way. >> yeah. absolutely are relatively cheap. >> why such underperformance >> lower -- just in general lower liquidity, concerns about the withdrawal of liquidity in general from the system and credit spreads going up and credit costs going up, those do hit smaller cap companies and you think about the s&p 500 index. five stocks more than 20% of it why they have all the cash they need and explains it somewhat but is a 6-point forward pe spread big big enough make small the opportunity that's the question. >> you see what sara there

politely point out that jill got there before you i thought the chart depiction is important. >> true that jill got there before me today. we have had this in the works for a while and sara trying to get me to fight with jill carey hall didn't work. >> i know. never does. >> everyone just agrees with you. >> you are too smart. >> thank you, mike. up next, on fed watch. and any clues about when the central bank will start hiking them, a preview is next.

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the major averages finishing out of the day deep in the red and the whole week has been challenging for the bulls. dow down for a sixth straight session, the worst week since october of 2020. the nasdaq worse week since march of that year goldman sachs and jp morgan among the biggest drags on the dow. and netflix and moderna and applied materials and ford the biggest laggards on the s&p. and red across the screen for nasdaq with chips among some of the biggest losers

it is very hard, sara, to find winners. all of the s&p were lower an comfortable so >> but three stocks that did have great weeks, act vision blizzard, take two, electronic arts off of microsoft deal for blizzard and the speculation of who could be next. up next, yeah powell in the spotlight with a few days left until the fed decision what a set up in the markets for him. plus a slew of big tech earnings are on the way everything on your radar next week when we come right back ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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tough week for stocks. wall street look ahead a huge week on deck for earnings from results from ibm, ge, microsoft, intel and tesla and apple and more an the big event very closely that will be watched, the fed decision. steve liesman is here with a preview. >> the fed meets next week amid

higher expectations for rate hikes than at the previous meeting and new expectations for balance sheet reduction this year markets will be looking for confirmation or pushback for the new hawkish consensus. among the questions looking to be answered, first will the first hike come in march as priced in. how many more and at what frequency, and will future hikes been aced will the fed reduce its balance, when and by how much and finally, fed fund futures. confidently forecasting the first week in march and a quarterly hike for a total of four next year including a 63% probability on the fourth hike coming at the december meeting of course a new set of presidents will have the vote beginning in this meeting including new people from st. louis and kansas city and they are among the more hawkish it may not be until the next meeting before president biden's nominees to the board join the

committee and have their say it is interesting, as you know, sara >> anything could happen went now and then steve, the market, we're just coming off of our worst week since the early days of pandemic, for the s&p, how much does it take shake the fed and make them concerned? >> well, there is thinking that the fed needs to be shaken a little bit more now than normal. that the fed needs financial conditions to tighten. that is part of how if t does policy it raises the short rate and lets the markets do bidding for it and unless stocks come down and bond yields rise, the fed could not have an influence on the economy and they have to abide some decline in the market, where that pain level is or to put it more technically, the federal put strike may be lower than it other wise would have been.

>> steve liesman mike just a brutal day for investors, for those who hold 401(k) and retail investors, institutional investors and it wasn't just tocks. so much else got caught up in the selling of risky assets. we saw oil prices down and cryptocurrencies were a lot lower. how oversold are we and what does this por tend for next week. >> for the broad equity index, we're as oversold as we've got let's say in early october of last year when we did see a pretty good low. and market rated higher. it is never a magic moment or level. but it is the precondition for what is going on so there are the iengs are lining up to get some relief there is a lot of work to do to get back the benefit of the doubt for the bulls at this point. you're down 8% or 9% and it reminds me of the lead up to the first rate hike in 2015. the market was very squirrely and also had an 8% decline

they did eventually get the first rate hike. >> all eyes on netflix today but my takeaway for the week, goldman sachs reported the best year by some distance in a long time yet still declined 10% this week it is not like it was an expensive stock, nine times pe, so it is tough for everyone. we're out of time on "closing bell." thank you so much for watching "fast money" starts right now. live from the nasdaq market site overlooking times kwar, this is "fast money. i'm melissa lee. tonight's lineup tonight on "fast," netflix or chill. shares plunging by the most in a decade and erasing almost two years of gains but the move has not one but two of the traders dipping their toes in. we'll find out why plus a bitcoin breakdown in our bitcoin baller, b.k. is here to give us his thoughts and later tail of two tech trades why two of the biggest names in the space