this is "n"nightly business report" with tyler mathieson, funded if part by, the street.com and action alert plus, where jim cramer and fellow portfolio managers share market insights. you can learn more at the suite.com/nbr. stocks retreat and oil prices drop, extending last week's ugly performance as investors look ahead to this week's meeting against the reserve. the firm he founded, he talks about his new job and investment he says looks great. crunch time. health exchange websites are put to the test as people get

insurance by the start of the year. we have all that and more on the "nightly business report" for monday, december 15th. >> good evening, a reversal on wall street with wild swings in stock ahead of this closely watched federal reserve policy meeting. stocks soared higher, oil dade slick and started to slide again largely on worries of the globe economy, is slowing so much demand will fall, prices will follow. at the closing bells, stocks extended with a di klein, another big loss for the do you, the fax lower by 48, more than 1% slide will. the s&p dipped back below the 2,000 mark. crude oil fell to fresh multi-year lows again today with domestic light sweet crude down

nearly $2 to finish belor $66 a barrel. stocks and commodities struggle, one of the biggest names in bond investing is speaking out, in his first television interview in september and he has a lot to say about the federal reserve inflation protective securities and his new concerns, we have more with the bond king buildup. back on september 26th, bill gross shocked the investing world, leading the firm he founded pimco, we go to the headquarters for the first tv exclusive interview with bill gross. i began by asking him with everything that had been written and said about him, he didn't feel a bit misunderstood? >> i think the vast majority of the public understands exactly who i am, but like i suggested for the past 25 years i must say. and so, i think they have a

sense of things, they know that will continue as well. >> and with a man known as the bond team, you, of course, have to talk to financial markets. it's a big week. have you the federal reserve and the drop in the price of oil. i asked gross, is he watching the price of oil these days? >> we will determine currency movements. they determine the spread markets, rick markets, high yield markets. the potential for bankruptcy or solvency, not only with companies. so once you have a major commodity like oil, not just the real term, the financial term and emotion like it has been moving down rapidly, then financial markets, try and readjust. >> we want advice on investing. i asked bill what he thought of the better ideas right now. here with his tips. >> the tips look great. >> treasury inflation protected

securities. is this where this interview is going? >> the downside is the adjusted price. you can boy a ten-year tip, now, with the inflation cessation of about 1.5%. it simply can't reach their objective, they can't print enough money. i think they can, to the extent that inflation goes to 12ki67b89s. >> bill gross in his first tv interview with the cdc, he likes treasury securities. he is concerned about the price of oil, indeed, he feels a bit misunder stood. from colorado, i'm brian sullivan for nbr. our next guest has been closely following the saga of bill gross, broken many of the news nuggets as a part of

today's "wall street journal,"-two need to be getting over their ugly divorce. greg zuckerman describes how pimco is doing since the exit of the founder and sar manager. he's a special writer for the wall street journal. greg, always good to see you. has pimco steadied the ship after all the heavy withdrawals that they went through? >> yeah, i think so. i mean, it was an ugly divorce and you could argue maybe that they're both getting over it, maybe it's not happy ever have for both of them. they're both moving on, so pimco isn't moving as much money as they used to. clients aren't fleeing. what i foundism pressive is the performance has been quite respectable. even impressive because all the money is coming out, everyone is betting on performance and what we write in today's story, they maneuver aggressively behind the scenes, they ended up buying

cheap bonds and profiting from that and selling things people didn't expect like pressure treasuries. all in all, they're doing quite well. mr. gross is moving on as well. >> so from an investor's point of view, greg, i don't know that you can really answer this, if you stayed with pimco, were you better off than following bill gross? to jan us? >> yes, sir, at janus, bill gross is doing unconstrained bond funds. in other words, he can bet on bonds and short them like a hedge fund, whereas, his own funds, the total return funds, is funded by the whole bonds. they're not really apples-to-apples. it's beating fine% of the gettors over the last month or so. long term, we'll see how that lasts and brill gross obviously will claim the investors in that time. so far, so good, for stock with pimco. >> so if i stayed, i would have

been paid to stay. what's gross, unfairly tarred for his performance in the years leading up or the quarters leading up to his departure. as i understood it, there was one year where he lost money for the first time. even in that year, he was outperforming his peer group. >> yeah, i wouldn't say unfairly targeted. here's a groi who is seven years of age who have had employee, college we've written about. just unhappy to work there, not a conducive argument not a couldn't duesive argument long term to top performance. he's umpbdz performed relative to peers, to his indexes, relative to his amazing career. so, yes, he's not a guy who will do against. i think all in all, it's a good break for all of them. pimco moved on, they have good investment professionals who got overshadowed and bill is doing quite well at janus. >> i was fascinated reading your

article, greg about the an next dotal stuff going on, it's a culture. a lot of the people were happy that bill gross wasn't at the christmas party, to what extent does the change of the culture impact the performance? reading between the lines, what is your case? >> it's a good question, for years, there is something of a miserable environment there, it's extraordinary. it's the yankees, back in the day, they were all hating each other. they won championships. the performance is much more important. i think it's created a much more relaxed vierpt, which can be conducive to a smart investment and picks. i think people are happier there. the morale is better. bill is a fascinating guy, sometimes he rubbed people the wrong day.

in a surprise move by the russian central bank today, it hiked its key interest rate to 17% from ten-and-a-half percent they cited the rising devaluation of the ruble and deflation risks. the ubl fell to a record low, it has been tumbleing. just last thursday, russia hiked rates to 10.5% co combat inflation. back in the u.s., despite sell-off in the markets, there was good news about manufacturing. industrial production last month was much higher than expected, up 1.3%, thanks in part to peak auto production. today is a big day for the obama administration. it is the deadline for people to sign up for the health insurance plan under the affordable care act and be covered by january 1st. we take a look at this year's rollout and how many americans

have already signed up for a plan. in new york, even the coy ceo can handle last minute enrollment calls. the government exchange websites are working well, this year, meeting the deadline surge for january 1st coverage. they are reaching out to enrollee. >> it's information you can find, they're using it. they are using a plan of sorts when they go in and say i believe in these conditions. >> for small and large insurers alike, the real challenge will be processing reenrollment in time nor january 1st coverage. the back end of the chang chain health care.gov notifies insurers automatically whether people re-enrom or switch plans. federal officials have been

sending the plan's lists of enrollees, which officialers have been comparing with their 2014 enrollment files. the real test will come this week with the surge in volume. >> there will be a significant amount of information that comes tonight over the next few days and weeks, and the plans will be with that quickly. it helps to have information come in a staged way. >> mario says it pays to review new plans and subsidy options. >> have them push through the balance and what conditions when i have become a member of another insurance company. i think you can realize what the insurance company is going to drafr good service to you. >> those who do nothing will be auto renewed but may find themselves paying more than if they switched.

bertha coombs, "nightly business report," new york. still ahead, how is the holiday shopping season shaping up for one of the major retailers? the interview with macy's next. . good news for drivers, gas buddy.com reports that gasoline can be now found for less than $2 a gallon in 13 states, from virginia to new mexico. if you ever wondered where your money goes for each gallon of gas you buy the government's energy information agency breaks it down. right off the bat, 13% of every dollar spent goes to taxes, in

connecticut the most. this pays for marketing and distribution and trucking gas to the station. 8% goes torre finding costs of turning crude oil into gasoline. and the biggest costs of all, 63 morris of every dollar goes to pay for that crude oil. now, profits for gas station owners have to pay rent, salaries, rental equipment fees and the like usually work out to a few penneys per gallon. with fuel costs steadily heading lower and airlines pulling in profits, should airfares will less these days? senator chuck schumer of new york thinks so. >> oil price versus gone down dramatically from over $100 a barrel to $60 a barrel. that's at airline prices profits go way up. why are the ticket prices going up as well? that is just really unfair and wrong. >> schumer wants the justice department and the department of transportation to investigate

why air fairs are so high and why some carriers are still tacking on a fuel surcharge? we begin tonight's mark focus with the largest private equity buyout of the year, petsmart has agreed to be acquired by dc partners for nearly $9 billion. this group will pay $83 a share for the pet retailer. partners had been pressuring the company to put itself up for saechl shares rose from 4% to $80.97. river technology agreeing to be acquired by a private equity firm. it will be bought for about $3 billion. the deal comes about a year after the company's biggest shareholder, elliot management, pushed for a sale. riverbed rose 8% to $20.hundred. pfizer enters into a deal. two companies will develop and commercialize the growth hormone treatment that could replace

daily injections with weekly ones. the partnership is a part of a five-84 increase on rare diseases, pfizer announced plans to raise quarterly dividends. shares of pfizer fell slightly to 30.86. a coca-cola shareholder is criticizing the company's chief executive. they added a advise it should be replaced because he is incapable of leading coke's turn around. wintergreen has been critical of the executive compensation plan, saying the shares are deeply discounted bus of poor management and govern fans, secondly, coke sees steady growth coming next year, 2015. coke shares fell nearly 1%. amoco a announced plans to further expand the aerospace business. it has a german titanium manufacturer. the move is a part of alcoa's shift away from mining and pumping aluminum.

shares rose fractionally to $14.93. in its annual revenue outlook for next 84, the industrial conglomerate honeywell is a conservative forecast for 2015 saying it expects only modest economic growth around the world for the 84. shares today fell just a bit, 95.81. only nine more shopping days until christmas and retailers are going all out to ring up holiday sales, including macy's. the iconic store heralds in herald's square, housed workers and is pushing sales and special promotions not only at its 850 stores but also online. macy's is now the 8th largest in the u.s. after netflix. as we continue our series, we hear tonight from macy's ceo terry lundgren. >> there is my baby right here. >> reporter: he is having his

own miracle on 34th street. sense he took over a decade ago, he's increased sales to $28 billion, doubled the stock price and spruced up the new york city flagship store with a massive $400 million makeover. the most expensive renovation in the company's 111-year history. the payoff would depend on consumers spending money. there were thousands waiting online for hours on thanksgiving day to get a jump on holiday bargains. >> we had the biggest back friday ever. this is an exciting time for us. we always paced the season on how it looks on this very, very busy day. we had a great macy's thanksgiving day parade, followed by 15,000 outside herald's square, waiting to get in the doors. >> we talked to customers, what is your sense of how they feel about spending? are they free spending or are they stingy with their money? >> i definitely say the consumer is focused on value and the

consumer is thinking how i get the most for the money i have here, to spend, will it be on gifts for for themselves? i think that saturday trend that continues to be that way and is actually companies like macy's benefits that. we have all the core brands, but, yet, we are constantly making sure we offer the best value. >> you must feel so much pressure to offer these bargain deals to beat out your competitor. >> you have to be sharp. the consumer can see everything today, more than ever. using their phones, they can quickly determine whether this product out to be at that price or you can find it somewhere else. you just have to be on your toes and be totally focused on making sure you are always needing great value. there is no hiding. >> are you finding that lower gasoline prices are making a difference on how much they are spending right now? >> the consumer has to fill up his or her gas tank a few times before they realize there is more money in their pocket. it's really the beginning.

i do believe over time this will be a positive for the consumers and, therefore, a positive for consumption. obviously, we will get our share of that. >> you know, a lot of people are worried about a data breach and having the repeat of what happened with target last year. are you noticing that people are usinging more cash than credit cards and debit cards? >> we haven't seen that trend change. half of our business is transing aed on our own macy's and bloomingdale's credit card. we would see that quickly. we haven't seen that change yet. >> every week with ehear some big retailer has gotten hacked. how worried are you about macy's getting hacked? >> i think any ceo in the position of having consumer data, it's on our minds. it's something we take very, very seriously. what i think about is what are we doing in terms of prepared inside, in the event something like this would happen? i think you always have to be on edge. you have to always believe they're coming at you from every angle. we will do everything we possibly can do.

we are investing significantly to make sure it doesn't happen. >> let's talk a little bit about the economy. we are getting more and more evidence that the job market is stronger. >> i think the economy has been sluggish. it's been slow. we have all been hopeful there are faster growth than what we have seen in gdp growth. the pfizer are looking positive as we look out. it's not robust, but certainly better if '15 than we experienced in '14. as a ceo of a major retailer, what do you look at? what do you monitor that tells you, gives you a temperature of how the economy is co doing? >> i look for where the trends are? the size of their baskets, the kiensd of items that they're buying. when you can buy a handback and use it and carry it, five days a woke, if you wanted, you change quite often, that's a sign of a consumer focusing on value and getting the most out of their

money. >> it's interesting that at a time when everybody is so worried about the global economy, macy's is announcing expansion plans to open stores overseas. why are you confident about that? >> you can't just focus on today and think it will forever be that way. you have to believe, where is there growth? where is there opportunity? and you think in terms of five and ten and 15 years if advance. i'm very confident that the decisions that we're making both here and other countries in terms of potential locations for macy's and bloomingdales are very solid and built to last for the long term. >> will higher interest rates make you think twice about some of your expansion plans or hiring more people? >> i will not do anything differently from very slight interest rate growth. it's not going to be a material difference to me in my decision-making for the next ten years. i believe that if interest rates are rising, it's only because the strength of the economy is

evident and it's the strength of the economy is evident, companies as large as macy's will benefit from a stronger economy. >> well, as for the federal reserve policy this week, lundgren believes the feds will raise the interest rates in the fall of 2015, not in the spring. to watch my extended interview, go to our website nbc.com. coming up, it's been a profitable year for america's dairy farmers, but can the industry continue to be, you knew it was coming -- a cash cow? that story next. a real shake-up at bob

evan's farms today, the long-time ceo is leaving immediately. he resigned under pressure from the board, which just wrapped up a costly fight with an activist investor. he is either going to sell or stand off the products business along with other changes. the folks at bob evans farms may also be upset by the price of milk and dairy products, which hit new all time highs this year. so what's do soaring dairy prices mean for u.s. farmers? morgan brennan has our story. >> how long have you been on the farm? >> my family started it in 1961. >> reporter: he is having a good year. the price of raw milk, cheese and butter all hit new highs in 2014. after production slowed in every major mim milk production in the world, except the u.s. dairy grew to the highest value and with larger feed prices, the

windfall farmers have seen is allowing them to re-invest in their operation. >> it's an amazing updating on some of our equipment that maybe didn't get to be updated when the prices weren't as good. we will have some money stored so we can work off of that and not have to go back in debt. >> and that's important. because production levels have been returning in other countries. coin put its dairy purchasing program on hold and perhaps more importantly the u.s. dar has rallied to ament-year high, making american milk more expensive overseas. >> exports have a large influence on the price and it's a very good period for the united states in terms of exports and wisconsin exports have grown significantly over the last few years. >> the u.s. dairy export council says exports have already started falk. this quarter, they project a 20% decline in volume and a 30% drop if value. nearly 20% of u.s. milk goes overseas. without international growth the

steady supplies, can push prices down and fast. >> we're anticipating for 2015 that will average out to about 1650 per 100 pounds, so that's a significant drop. that 1650 per 100 pounds is historically a reasonable price given what the current grade markets are. >> reporter: that's why some farmers are focusing on genetics and they are developing cow embryos to sell to china. >> it's allowing us to have another form of income and not have enough for cows. it's diversification, it's a really good thing. so diversification helps us to fog prices higher or low. we have other options to help our business. >> despoit those falling prices, economists expect 2015 to be another profitable year. cash cows, for cnbc business

news, i'm morgan brennan. >> he wants to go milk one of those cows. >> it's fun, actually. >> that's the cnbc "business report." >> i'm tyler mathieson. thanks for visiting us. >> cnbc "nightly business report" has been funded in part by you can learn more at thestreet.com/nbr.

watch your step, a bit tricky along here. their nesting site's not far now... we overnight ahead... and push on first thing. yeah, and i was lucky enough to get to cyprus, finally. yeah, i did cyprus. it was okay. i got a red-backed shrike and a bonelli's eagle on the first day. boom. good lord. yeah, yeah, yeah. i had my own guide. i don't know, it was a-mazing. i bet it was. so have you ever seen a bonelli's eagle, alec? it's okay to say no. i'll make a start with the clearing up then. oh, that's my job. no, no.