index is volatile. [closing bell ringing] liz: the russell 2000 just gave up the farm. it turned negative after being one lone holdout there. the bells ring on wall street. the losses are on your screen. the dow loses 104 points. they were rather pronounced. s&p crossing flat line 38 times. unusual. nasdaq was always having trouble. russell held some strength. one bastion of safety people were looking at. you know what? smaller names, gutsier names don't have as much international exposure. guess what? they had to throw the towel in at the end of the session. let's get going. "after the bell" starts right now. david: what is heck of a day for trading. let's break down the action with hank smith, haverford trust. why he is betting on energy sector. a lot of people were buying and

why. hilary kramer will tell us why recession in russia is threat to markets. mark sebastian in the cme. mark, what happened to the rally win point we were up 200. what does it say that a market can't hold a lead like that. >> what a ripper after day. rallied up close to 20 and down another 15 handle this is serious volatility and serious uncertainty. so the first thing i was noticing we're starting to see s&p 500 and oil start breaking that correlation. >> okay. hold on a second, mark. i will stop you dead in your tracks. don't get into the weeds. tell me generally what it means that a market can not hold a lead. >> spike in the vix there is serious fear out of russia and this russian situation is scaring a lot of peep. they don't know what will come out of it.

they have this fed meeting, are they going to try to raise rates? at a minimum ins disinflation nary environment. it is causing uncertainty in the market. we'll not see release of volatility at least until tomorrow afternoon when the fed makes their announcement. liz: okay. starting last week we were talking about russia and potential default of their debt or rosneft, one of their oil companies can't pay back banks in europe who they have followed. that would be a problem. sure enough today chickens come home to roost. we haven't seen default on the debt yet, hillary but russia can be serious, can it not? what about u.s. investors do to protect themself against this threat. >> it's a threat, unfortunately, liz, to the u.s. market. look at general electric, ge. ge had an analyst day guided from $1.08 to 1.70.

why? directly due to russia. there for there is that impact. we're seeing companies like microsoft and home depot were hitting 52-week highs. suddenly now have really awful days in the market of the answer in terms of investors, have no fear. the fed tomorrow, the good news they will come in and certainly reinforce they're not raising rates. maybe even until 2011 because this russian weakness has too much contagion in it. david: 2017? i hadn't heard that yet. that is very interesting. hank, let me go to you first about energy stocks as well because people were buying into energy stocks. they lost a lot of their lead in the last moments of trading but halliburton, schlumberger. there are good stocks and good companies beaten way down. maybe now is the time to get in? >> well, look, for long-term investors, yes, for near term traders, perhaps not. we don't know if a bottom has been had or not but include names like exxon-mobil and chevron with yields of over 3%

and over 4% respectively. you're getting paid to wait and oh, by the way, these companies also increased dividend as well. so this is, for long-term investors we think a very attractive entry point. liz: attractive entry point. as mark began discussion in pits of cme it, was a ripper of a day. why are we ending at session lows? what do we interpret from that? could it simply be people are waiting on the good ol', all american federal reserve and that is at the heart of this issue? because we have the meeting tomorrow and announcements. >> that is what is going on a, liz. tomorrow we have the meeting. the selloff today is also a lot of trimming of positions. we're really close to year-end. we should see a rally right after christmas. but right now there is a lot of fear out there. it is interesting. this comment about energy companies, yes, some of our finest companies in the s&p are oil and gas companies. however that being said we have to worry about the debt many of these companies have taken on.

if you really want to be in the energy sector, halliburton is good money to spend in the $38 region because companies will need to dig for oil and do it cheaper and many in many ways halliburton is technology company. david: they bought 300 tons of gold september. buying gold for the whole year pretty much. so happens that liz and i are both wearing gold today. i wonder what do you think of gold as a possible hedge against what is happening in the world? >> i mean i get it. but, i just don't see it. i don't think there is a lost strength in gold. i would actually go with the dollar because it is strengthening against basically every currency in the world. just us not doing qe is actually strengthening the dollar. so, i actually think that is where the strength, if one is really afraid of the world, cash is probably a better play than gold. david: interesting. >> i think gold could go -- david: how do you buy into cash,

mark? what is your favorite way of doing that. >> how do you buy into cash? 10-year note, that was a joke. the 10-year note is about, is going to between 2% and 2.3% yield. until 2016. i think rates stay really low. >> the yield, by the way yields are down five basis points today. clearly people were buying, right? >> absolutely. so that's the smart, that is the smart, safe play in uncertain market. quickly back to oil, energy, a can madian energy company got bottom this morning, really small deal. i think that is a sign we might hit the bottom of oil. when you see the bigger fish start to swallow the small fish that tells them they're seeing money in many solve these deals. >> i would still be careful, i would still be careful of trying to catch a falling knife. that is the real concern here. these are fine companies but a lot of these acquisitions could also be interpreted as moves of desperation. liz: hank, let me bring you back

into the conversation here because you are the guy who is really going in with both fists when it comes to buying some of these energy names, everything from exxon, to chevron to schlumberger but are we missing something here? take a breath and say, january 2nd, 3rd, 4th when we come back from the holidays and look at this market, we look at companies in america actually doing better and an economy with a few tailwind behind it? >> you couldn't have put it any better, liz. let's step back and realize the u.s. economy is gearing to a new level in this expansion called 3% from 2%. oh, by the way, the decline in energy prices is a net positive, not only for the u.s. consumer but for the global consumer. a faster gdp environment going forward. we think that will translate into better earnings growth. companies continue to buy back shares, increase dividends so we think this pullback like the

previous four pullbacks in 2014 is going to be short and relatively shallow and serve to be a good buying opportunity. david: on the other hand, hillary, the u.s. is not sit as an island immune from what is going on in the world. we saw russia default in 1998. even then one could argue with the stronger economy. there were ripples in the united states that lasted for a while. will the same happen if they default this time? >> yes, david. it is such a great question that you ask and the answer to that is even will be more interesting this time. it may not necessarily be worse but we're looking at countries like venezuela at that could fall. really russia is just the tip of the iceberg. think about the cost that it takes to extract oil from some of these countries an investment they have made. we'll see entire change in the political landscape of the world. liz: we'll be watching it. here is russia's gdp. that may go lower. david: i would think so. liz: hillary, great to see you. hilary kramer, hank smith and

mark sebastian. mark, we'll check back in with you see how the s&p futures closest specially after today's rock and roll moments. david: thanks, folks. liz: the cyber at attack on sown any pictures take as potentially dangerous turn. the hackers are threatening movie-goers saying that there would be a an attack like september 11th. david: adam shapiro is doing work on the story. what a dangerous turn this has taken, adam. >> this is first threat of violence against people not working at sony but it is pretty incredible. this is quotes from an email. dow jones news quotes, remember september the 11th, 2001. this threat goes on in the email we will clearly show to you very time and places "the interview" be shown, that is movie interview, including premier, bitter fate those that seek fun

and terror should be doomed to. some movie theater stocks should be checking this. not taking a hit because of it. cinemark, regal, carmike all of these theater chains part of this threat. fox business this morning we contacted a former nsa and ceo of immunity and he was telling us that one, the hackers who have hit sony, they're leaving their demands unspoken other than don't show this movie. he said this is clearly state-sponsored. and he went on to say they will start hitting distributors and others who profit from businesses with sony. finally, there is the ceo of sony entertainment, michael linton. he said in a meeting with sony employees, that quote, our business has a strong economic foundation. this won't take us down. not good for sony right now. david: not at all. adam shapiro, thank you very much. >> coming up, you had to hold on to your hat today due to wild swings we saw in the market.

really just jitters before we learn what the federal reserve is thinking about a potential interest rate hike in 2015? david: what happened in russia definitely causing jitters over here. will russia's economy get worse before it gets better? and how should we play it? cima global's david malpass will be here to tell news a moment. liz: still looking for a perfect holiday gift but an affordable price? david: yes. liz: living social, david, is offering last-minute deals. we've got them for you of the they may be too good to pass up so don't miss it. ♪ she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently.

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liz: after quite a dramatic day the s&p futures closing just seconds ago. let's go back to mark sebastian in the pits of the cme. mark. >> weakness in the close brought weakness after the close. we gave away another couple points. although we were down as much as 20. closed down 17 and a quarter. that's it. so look just about the same or possibly worse tomorrow, mark? >> yeah. i think we're going to open, i think we'll open weak into the fed, i'm almost certain. >> maybe things can turn around. the again the federal reserve making its announcement in the

2:00 p.m. eastern hour. melissa francis women have it. mark, thanks. >> have a great night. >> you too. david: apple has taken down online stores in russia due to extreme fluctuations in value of ruble. what happens to the rest of the world if the ruble crashes and splashes into default? cot ripple splash up on our shores? we have david malpass. certainly did in 1998, david. >> hi, david. russia's ruble has already gone down a lot and we're seeing some of the ramifications from that. remember in asia in 1998 there were huge devaluations, much bigger than what russia is going through in malaysia, in thailand, in indonesia. david: was it caused by russia's default. >> i think, no, no. david: '98. >> that was before. actually the devaluations in asia started in '97. david: i see. >> they were caused because they had their currencies pegged. once the market could see that, if they broke it would be a huge

downward move, then it wasn't stoppable. remember the imf had programs in each of those country so that also made it vulnerable. those don't apply to rush share, what is happen together ruble right now? a lot of traders were wondering if there is any market at all for rubles today? >> i think there was a, after the central bank last night raised interest rates they also raised repo rates, borrowing rates, so it was hard to get a hold of rubles and the market stopped functioning today. i'm not sure that is a negative sign for the ruble that. means russia is finally taking an interest. david: i talked to one currency trader probably only place you could buy rubles on red square if you have a pocket full of $100 bills right now. >> that is probably a positive for the ruble. david: why is that a positive? >> russia has international reserves of $420 billion. entire monetary base now that they had devaluation is only worth $120 billion. they have 3.6 times as much

money, i mean, dollars as they do rubles that are liabilities of the government. in fact the whole m-2 -- david: they could go to dollar currency in russia? >> they could. david: that has, by the way is not unprecedented. happened in other countries. i think of argentina. is it conceivable in order to shore up russia, to make sure they don't default they do something like that, go to dollar currency or gold-backed currency? >> they don't need to go that tar. they need to make it clear they like the ruble to be stronger and willing to spend a few of their dollars on it t wouldn't take very many. if they spent $50 billion actually buying ruble, not wasting them on friends of the president but actually buying rubles, the monetary base would be down to $60 billion. you would have coverage that would be six times as much reserves as you did for the monetary base. david: what do you make of putin's move doubling the interest rates they allow for the ruble, almost doubling from

10% to 17%? was that a futile effort? >> i'm not a fan of high interest rates. malaysia did that in 1998 under the guidance of the imf. put them to 20%, still nobody liked them. like malaysia was saying we'll make our economy so terrible, you're going to love us. it doesn't work. and then they stepped in, bought the ringet, stablized it and immediately the market was under their guidance. david: okay, now aisle stablized a little bit today. lord knows what is going to happen tomorrow. i talked to one trader who has interest in the "brics," countries like russia, what happens in indonesia, mexico, venezuela, brazil. he said if oil goes down to $35, which is, it is not inconceivable, lights are out. that we'll see a default of russia. we'll see a default of all the emerging markets including indonesia, mexico, venezuela, et cetera. that will lead to recession that will not leave america out? >> we don't know. you know we're in extreme

conditions with the rates at zero. remember how odd this is. six years of zero rates and, everything begins to go highway. david: usually only happens when things are very bad in the united states. >> rates have never been zero. david: usually only touches that way. >> goes that way when you're in deep recession. we've gone six years after the recession. so the markets are beginning to break down. there is a difference from the '90s, a lot of people are looking back to the '90s. a lot of, most of the sovereign debt was in dollar terps. nowadays it is often in local currency terms like in brazil there. is not as much contagion from that. i agree if oil goes down, then the oil producers will be under strain. but i do think there is a difference in the markets, longer term, local currency debt in emerging markets. that means they can hold up if they want to. critical variable here what does putin do? if he comes out and says he would like the ruble to be stronger i think he has got the power to do that.

david: okay. let's leave it on a positive note. david malpass. thank you very much. liz, over to you. liz: david, the fed's last two-day policy meeting is underway right now. investors are anxiously awaiting any sign when the fed might decide to tighten interest rates. up next we're talking to former federal reserve bank of minneapolis ceo gary stern. he has been on inside of some of these meetings. we'll talk to him about whether he thinks the fed will raise rates. 20 minutes ago, ceo -- t-mobile ceo, john legere, always an interesting carrier, talked about their new offer, uncarrier, 8.0. will it be enough to lure you away from your current carrier? we'll discuss that and much more. telecom wars with our panel. stay tuned. ♪ (vo) rush hour around here

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while the fed is deciding right now what to say, if anything to start tomorrow. they haven't raised rates since 2008. liz: could things start to change? joining us somebody who might know. gary stern, former federal reserve bank of minneapolis and ceo and president. they have been behind closed doors most of today and will tomorrow make announcement. do you expect them to change that language, we'll keep rates low for considerable amount of time? >> yes i do. i think they will mod fight that or eliminate it because it is the right thing to do. the u.s. economy has been performing well. labor markets have improved. most other measures of activity are positive. the time to raise rates has moved closer. it is not imminent and but it is closer. i think it would be misleading to leave that kind of language in. david: now the economy may be looking good from some macro levels certainly, but the american people still don't feel good about it. one reason savers have been losing money. the money i earn today seems to be because of all other costs

worth less. interest rates are below inflation. as we go back many, many years, when that happens we're usually in trouble. i know we've had deep recession, back six years ago, five years ago. but isn't it time to change that? to put interest rates above inflation so savers are not hurt anymore? >> i think there is a couple of points that need to be considered. one is of course the rationale for the low rates is to try to stimulate the economy -- david: i don't think you can call them low. they are zero. >> short-term rates are zero you about other rates go up from there. however you want to describe them, the purpose is to stimulate the economy, lead to gains in employment. which is very important because we don't want an economy with huge amounts of labor resource, lots of people not working. so i think the fed's purpose in low rates has, is clear and has at least on the margin helped. when is the start to time to start raising rates?

i think time is roughly the way the fed is hinting, middle of next year. the reason is, first of all, the economy is improving. secondly it is important to normalize rates. thirdly, to the extent that you're concerned about excesses in some financial markets and those concerns are probably diminished as a result of what has been happening in the markets overs the last week plus, but to the extent you're concerned about excesses in markets, a little increase in rates might, might, serve to moderate that as well. liz: every single thing you said, i'm with you on that except that the united states is no longer an island. if we lived independently of every other nation, yes, but, does it put the fed in a tight position if russia's gyrating and europe is all but in recession right now? >> well, you're certainly right, that what happens abroad matters more to us than it did a few decades ago. because the scale of some of economies like china and india, they're much bigger and

therefore more important. and those economies are slowing. europe isn't growing as you indicated. so we shouldn't expect to sail through this entirely smoothly. the united states is still, on the other hand, the united states if not an island a major bastion of economic activity. maybe the major bastion of economic activity in the world. as i think we've seen in recent quarters, it is perfectly capable, the u.s. economy is perfectly capable of growing at a pretty nice pace with lots of chaos elsewhere in the world. david: you mentioned the markets. some people have criticized the fed, particularly since bernanke came in as being too heavily influenced by markets. sometimes the markets interests run counter to the interests or the motivations of the fed to raise or lower rates, vis-a-vis whether they fire people. do you think that the fed is too motivated by what the markets do right now? >> no. in fact, while i'm sure the fed

is paying lots of attention to what is going on in the markets, who wouldn't be paying attention in you're in public policy on the economic, in the economics sphere, i'm sure the fed is paying lots of attention but i don't think they are going to be driven or their policy decisions determined by recent fluctuations in the markets. it is really, economic and inflation fundamentals and the outlook for those things. because, policy has to make decisions based not just on today's conditions but prospective conditions, six, 12, 18 months from now. >> gary, it's a pleasure to have you. saying they will jettison considerable amount of time language tomorrow. we'll see if you're right. >> we'll see. david: thank you very much. good to have you here. liz: gary is former federal reserve bank ever minneapolis ceo and president. david: t-mobile announces its bold new plan to shake up the wireless competition but will it be enough to make you switch carriers? liz: while many investors watch the russian ruble and falling oil prices, what about the gutsy

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david: time for a look at today's market drivers. lots of uncertainty and volatility in the markets today. the dow posted its largest

intraday swing in two months while the s&p crossed the unchanged level a total of 38 times. all major indices ended the day in the red. gold prices erased earlier gains falling below the key $1200 level. the precious metal closed down 1.1%. housing starts slowed in november falling the first time in three months. starts fell 1.6%, to annualized rate of 1.03 million. liz? liz: there was one area, david, that held on as long as it could and that was the small caps, ending slightly lower, the russell 2000, posting the smallest drop of major indices today. that is the best we can get it. is now the time for investors to start favoring small cap stocks? let's bring in our panel. we have, be still my heart, gary b. smith. are you kidding me? we have fox business contributor. and larry shover, we love larry, sfg alternatives chief investment officer along with fox business's all fabulous all

the time, tracy byrnes. i know, listen by the end of the session a russell 2000 and it also did not make it into the green today but the russell showed some muscle. talk about that, gary b. is that the place to put your money now because it is the least scary? >> well, yeah, i think it is one area. look it, i favor large caps for the majority of this year and they have done very well. i think they have outperformed the russell. so maybe a lot of the money is going to kind of an underperforming sector, but, i think the main point you're on, the world except the u.s. is, seems to be in pretty dire straits. russia's struggling. europe's struggling. the ruble, it seems like the only safe harbor right now might be the u.s. so if you want that safe harbor, the russell 2000 is potentially a great place to look. liz: okay, tracy, is there an area where you look at and say within the russell that is the place?

we had a couple of people in the past hour 1/2 say simply stay with the u.s. right now? >> that is the thing, liz. most of those companies, homegrown, u.s., don't have exposure to overseas as my bulls and bears partner gary b. just said. go with an index. don't even try to cherry-pick this. these guys can hold on especially coming into january. don't forget the january effect where everyone gets christmas bonuses and holiday money to put it back into the market. you can see the russell tank off for a while. liz: larry, give us a name. is there a rush sell bush for a name -- russell. >> really good old insurance companies, colonial penn, bankers trust and casualty, washington national. the stock has been hit and rightly so in the low interest rate environment, $16 stock. well deserves, mid, look at balance sheet, mid $20 stock once we see interest rates rise

given fact they're with a lot of insurance companies the stock will take off. liz: i have a large cap to talk about, that is t-mobile. t-mobile rolling out a brand new offer today. it all started from people like you writing in on social media to the ceo john legere, who explained what they said on fox business just in the last hour. here's john. >> i picked this phone up and i go on twitter and people tell me what they want. 40,000 social media messages say, why can't we role over data? i think it's a great idea. >> 40 how. >> let them have a data stash. liz: so he called it a data stash. right away, gary. about, i'm looking at this, kind of so intuitive and so smart, why did other guys think of this. >> well i will take the other viewpoint. think this is too inside baseball for most users out there. by that when i saw this, i'm like huh? what is that? i still don't understand the whole data cache. i think people now want -- liz: if you don't use what you

pay for you get to keep it at the end of the month? >> look, i agree with that. i don't know how much data i have on my plan. i don't even know how much i pay for my data if i use it. am i using wi-fi? liz: tracy byrnes know because she has kids. she is watching every minute panned every gigabyte. >> they watch frozen on their phones one more time i might blow my head off. i think to gary's point, it is such a pain in the neck to leave your carrier. you don't even know the current amount of data you're getting right now. now you're saying i need more? i guess i need more. i keep getting cut off thanks to frozen. the administrative part of flipping over is so onerous. i'm not sure he will get as many people as he thinks to jump. >> they are the fastest growing telecom wireless carrier, larry shover. they're doing something with this uncarrier idea of making it easier for customers to simply pay for what they want, what they use and if they don't they keep it and use it again.

>> yeah is a brilliant idea. also a novel idea. the problem, like me, i'm with sprint right now and i know, if this thing works it is just a matter of time before sprint rolls it out as well they're like chopping each other at the knees to compete. i'm like tracy. i don't want to go into the store. i feel like the guy in times square, the three card monty game, the sucker. there is always some kind of hidden agenda somewhere, some fee i don't know about. great idea. great pr. it will not change my carrier. liz: price cars are great for the consumer. not so much for stocks. we'll watch it. coming up, hackers claim to behind the sony hack@act, not -- hack attack, not just threatening movie theaters but people that grow to the movies. this is an outrage and terrorries tick. we'll tell you about google's top searched words for 2014. david: i love those. have you finished your holiday

shopping yet? for those looking out for a good deal, we'll talk to ceo of living social on some of the company's biggest deals and how he is refounding the business. we've been asking on facebook with t-mobile roll over unused data month to month, will this new offer make you switch carriers? send us a message on facebook or tweet us fbnatb. tweet us. your answers coming up. ♪ often enough, but thank you. thank you mom for protecting my future. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life.

liz: this has gone from, listen the to the latest gossip is at tone sony to highly disturbing threat. a latest email allege led from the group that attacked sony pictures a division of sony, threatened theaters showing "the interview," a comedy with seth rogan and james frank cope. because it is rude to north korea that there will be attacks similar to sep left vent. it has caught the attention of fbi and homeland security. we're back with larry shover, tracy byrnes and geir b. smith. we looked at theater stocks today, they got hurt.

what do you think win hall? and will this get worse before it gets better. >> i think it will get worse before it get the better. so much in the ecology we're unaware of, mentioning might be a lot of words and technology and hacking is a real threat. it will get bigger, more deceptive and evasive. i thing get a lot worse before they get better. liz: on the other hand, tracy they could be a troll underhiding under a rock in their parents basement. they have done sophisticated stuff. >> we experienced shootings in movie theaters before. your daughter has a crush on franco. she is not going to see this probably, you will say to yourself, why take the risk? charlie gasparino was talking about this all day. this become as financial story because i'm not going to go to the movies? probably not growing out to eat, that means, therefore the economy unfortunately gets hurt. liz: you don't want these guys to win, gary b.

that is the problem. i'm so standing with sony, amy pascal on this they had a very bad hand dealt to them at the moment but looking at the potential here you don't want to stay away from the movie theater because it affects every movie company and you let terrorists win. >> well, yeah, i agree with you. i think this, you know, sony's profit or potential profits who knows how much these companies like sony make on a movie like "the interview." but their profits on that could take a hit. but then we're on to the next movie. fortunately or unfortunately maybe it is for the wear. i think americans have a very, very short memory and they will move on from this and go see the next movie. the bigger issue i think are movie theaters which you mentioned. i think those are on a downward spiral but not for any short-term thing. with people watching at home now and netflix and i would be surprised if you see movie theaters 10 years from now. liz: we have regal, cinemark,

amc, they all moved lower today on this news. it is definitely an investment story from that angle. let's get to google, releasing top searches for the entire year, for 2014 for the first time in five years, and apple product did not make the cut. so here's this year's list, topping it, robin williams, who of course died but tracy we were followed there by world cup, ebola, malaysia airlines, and of all things, flappy -- >> which i don't even know what it is but if you continue down a little to number nine, "frozen" yet again. you can not escape. this i do not understand. the big one, what were the most popular questions asked? one of them was, what is gamer gate? i don't even know what that is? liz: that just shows you that the people who game -- >> i lost then. >> what are you mumbling, gary? >> i was -- liz: never mind. >> i lost my ifb connection.

>> we loster larry. liz: was larry saying ifb? interruptible feedback. many different trend and we forgotten some of them that were so hot earlier in the year, gary but ice bucket challenge, which i was challenged. i did my own little ice bucket thing which i thought was a very, very fabulous movie in itself. those are my two kids surprising me as i was reading the journal. go ahead. >> no, i say you know what? along those lines of kind of trendy things, you know you take that list. you had ebola, world cup, malaysian airlines. i was kind of surprised robin williams, may he rest in peace, with all due respect was so high on that list? liz: oh. >> i understand he was beloved but number one on the list? that was a little surprising to me. liz: well, it was a big deal i think. maybe people related to depression perhaps. larry you are you're back with

us after threw out the term ifb which is very fancy. google, notwithstanding the fact it hit close to a 52-week low today. people look at the list, realize the collective minds of americans and what they're interested in? >> yeah, fascinating especially with robin williams. i just kept thinking what would he say if he was alive about this list? looking at top 10 i can imagine him saying, top six are tragedy and four losers, bread and circus or something like that. just imagine, interesting list. it's balanced by tragedy, war and bread and circus. liz: malaysian airlines was easily one of the biggest stories as we know. >> yep. liz: thank you for all of you. thank you for a spirited discussion on the panel as always. gary b., larry shover and tracy byrnes. david? david: do you still have some who dave shopping left? up next we're talking to the ceo of the deal site living social about incredible deals he has for the new year. >> hi, everyone, i'm gerri willis. coming up on my show at the top

of the hour, we'll preview next year's real estate market. will housing become more stable? and what happens with mortgage rates? we'll have great advice. one of the big stories coming up on "the willis report" in just a few minutes.

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cut it out. >>see you tomorrow. ♪ liz: holidays are upon us. have you finished your shopping? this year, 56% of the americans, david, say they will do holiday shopping online. avoid the traffic and crowds,

for those who haven't done shopping looking for a great deal, might want to give digital marketplace, living social a try. we have the company's new ceo. gotham, thanks so much for coming in. i want to talk about what you've done for the company. then we'll get to the deals. you're reinventing it. that comes at a cost. you're laying off 400 workers. who are you laying off? what kind of positions are you laying off and why? >> glad to be here, thank you. one of the most exciting things right now as we think about refounding the company how we become much more of a experienced marketplace and have a much more of a focus on technology product and mobile. so those are the areas we're investing in. and in the past we've had much more of a sales and marketing focus. we were shifting to technology and mobile company. david: you're leaving, letting go some of the sales force? >> i think that is all behind us now. i'm looking forward to the holiday season in 2015 and investing in mobile. liz: the theory with living social.

it is not just opportunities to buy items. but it is opportunities to purchase experiences. let's talk about some of those. perhaps we go with your number one you really feel will be a huge seller right now during the holidays? >> yeah, absolutely. so one thing we're seeing as a trend, we launched a new gift store some weeks ago in the preparation for the holiday season. while we have everything on our site is giftable you can have standard things like massages, restaurants, et cetera but locally there are some exciting deals today. some of the more popular ones in the d.c. area is our night at the zoo. the national zoo here at ice skull upstures. , ice sculptures. and two story ice slide fun for the kids. in new york we have the great deals on "the nutcracker," on cabaret on broadway, et cetera. then there is also a little bit more exotic things like ferrari rides you can rent. helicopter tours for the city of

new york city. there are a lot of experiences. you should check out living social. david: it is true, the events and activities you can do with the family provide you with more lasting pleasure i think than specific items that look great under the tree but fall by the wayside shortly after. but what are some of those items, specific items that you have on your website selling well receipt now? >> so the experiences like i said, the most popular ones are in the, all local as you know. so every city has different experiences. but the most popular ones in d.c. are family events but there are some products which are evergreen on our site and pick up during the holiday season. blue nile is one much the merchants on our site during the gifting season. sales of that merchant go up. harry and david's. that does really well during the season so you exist that. a whole host of things we're excited to bringing to our consumers. liz: we showed an all exclusive

trip to mexico which looked like a good price point, $399 in mexico. it looks like a lovely resort. how willing are people to take that shot and purchase something like that online? >> you see a lot of people are buying a lot more expensive things every year. mexico is one. we had them purchase papped gift trips to china from the u.s. people are getting more ad ven russ and 50% off with a trusted lender living social backing it there are confidence for people to buy and check it out. david: you provide great hope tore people like that wait until the last minute. thank you for your work. >> check out the gift store if you're a last minute shopper. liz: good luck to you and the team. we talked about it. mobile's new rollover offer. does this offer allow to role over data thaw haven't used and make you switch carriers. dawn says, not as long as

coverage stinks. when good is data if you spend 50% or more of your time with no signal. david: dave says, if price is the main focus is could draw customers in. liz: time for number one thing to watch, let's bring gary b. smith and fox news contributor. i don't want to read your mind. does it have the word fed in it? >> it does not actually. it is oil stocks. maybe the trader at heart. i own them. they're killing me. they're drowning me but i'm looking to buy more and i'm just wondering where is this bottom? maybe it was today. they actually stood up, held up fairly well. i might start buying a little bit more tomorrow. david: would you buy the straight oil and energy stocks like chevron for example? or might you go into something like schlumberger or halliburton that are also into crux? >> the former, david. i own actually chevron. i own conocophillips, cvx, cop. those are the ones i pick up more and hope to average down a

little bit and dig myself out of my hole. liz: doubling down, gary b. great to see you. david: good stuff, gary. tomorrow will be the day the fed announces what it will do. i will join melissa for that announcement. liz: "the willis report" is next. >> hello, everyone i'm gerri willis. tonight a big win for us, team usa. opec over a barrel, gas prices plummeting, putting more money into your wallet much the market spent most the day into the green before once again turning negative after oil prices snap ad four-day losing streak, closing just shy of $56 a barrel. but looking ahead, what is the impact going to be on your portfolio and the broader economy? joining me now, doug holtz-eakin, economist and president of the american action forum. shane cider man, founder of bay ridge financial group, and moody's chief economist john lonski. great to have all of you here. shane, i will start with you.

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