oil is back on the slide with wti below $52. disney blows past wall street expectations as frozen fuels earnings and ford unveils plans to hike pay for some lower level eun youn union workers. trading higher after analyst expectations despite currency head winds. let's join carolyn for more in a sunny yet chilly day. >> you're right. there are a number of headwinds. we have low crop prices and that gives farmer's less incentive to invest in their crop protection and second of all you have huge head winds. they report a very strong dollar. it has a big cost pace where the swiss has been rising and has very high exposure to the emerging markets. so we're seeing very volatile fluctuates there as well but it's not all bad because look this company is also benefitting from the lower oil price and that may not be visible as well in 2015 but certainly 2016. >> the lag effect for us is about 12 months so the decline in oil will have a tail wind and improvement in our cost base. that won't help us until 2016. >> that was the ceo of synge

oil and basic resources leading european stocks higher as the price of oil continues to climb with wti holding well above the $50 per barrel level. >> beyonds fall sharply after the country's finance minister backs on demands that they write off the debt. instead proposing a swap. >> they send the aussie dollar to a six year low. the indian central bank keeping it's powder dry. >> you're watching worldwide exchange bringing you business news from around the globe. >> hello everybody. good morning. welcome to a full two hours of worldwide exchange. good to be back on the show. >> great to have you. >> great to be back. lots going on today. bp shares are already trading higher this morning despite a fourth quarter loss on deplacement cost basis. it will reduce cap exspending this year. in a short time we'll be speaking with the bp ceo bob dudly for his take on the numbers. we'll be talking to the man himself any minute now. >> let's take a look at oil prices. they have been rallying in fact gaining about 11%. we're looking at light crude trading at $50.67. up about 2%. brent crude up abo

if you see this as a shale problem, where do you think the wti brent spread could go?agree with people who think that can widen out to maybe $10 or so with wti taking most of the weakness. so i think that's a good story for refiners. the wider the spread, the better the story for u.s. refiners, particularly in the center of the country but also at the gulf coast. it's been a decent stretch for them. >> i'm a consumer or investor in discretionary names. do we see a decline in gas if we see oil with a two handle? >> i think gasoline -- no. i think gasoline margins for refiners widen, but i think prices will still, on margin remain about $1 to $1.10 cheaper than they were. last april they peaked and were on track. we may peak $2.50 to $2.70 on gasoli gasoline. good story for restaurateurs, people that can grab on to that $140 billion of additional money out there. >> when we hear about all these companies cutting capex and you are saying the rate count is deceptive, does that mean we'll see deeper cuts to come? >> they'll be deeper cuts and they won't be u.s. cuts. you'll

wti over 51 brent crude over 56.udy out by ihs saying we will see as a result of the cap x cuts and rig count reduxs and lay-offs at big oil companies, we'll see probably a month-to-month reduction in terms of production here in the u.s. in the back half of 2015. some people expecting to see this potentially later than that. it does take a while, when you turn the spigot off, for production to start to clam up and that's why there's a lag factor there. but interesting, traders looking to the technicals here saying that once this momentum starts to bill to the upside people start to pile on you get the short covering and that's why we get jumps higher. this is a production-side story. nothing has changed in terms of the demand side of this. so if the stock market is rallying because of oil prices there may be something to consider there. back to you. >> thank you for that. jackie deaneangelis. is raiddioshack going the way the do-do. why it may be on its last breath. ♪ your dad just kissed my mom. ♪ turning two worlds

about $16 in wti from the lows. what's impressive to me is the fact that the term structure, the carrying charge has not done what one would want to see the carrying charge do in a rally. we've seen the market continue to have a large crude continues to bid for storage. we're actually seeing storage increasing and pushing. we're beginning to see huge numbers of ships out on the water used for storage. in that environment it's very hard to think this is anything more than a much needed technical bounce than any further one or $2 rally in crude oil should have been sold. those that didn't get hedges put into place are going to be forced to do so. if you look at two and three year forward crude oil wti is trading at level 65 66 $67 where any hedger would say that's a nice return. i'll sell the deferred futures. i think the lows have not yet been seen. maybe $20 is still possible. >> let's move the debate on to the u.s. bond market. we've seen a bit of profit ticking up the last couple of sessions but relative to the ad

could see that today in wti.the thing about oil from the perspective of being a physical shop is the spread is normalizing again. the spread between brent and wti is normalizing. while the price stabilizing is going to have an effect on u.s. fracking and the crude actually in the market we continue to see rig counts paul but not the actual production. but when you see the spread normalizing it came out to over $8 yesterday. that's a good sign for the flow of oil. that's a good thing when you talk about the energy producers so energy stocks continue to lead when we go on these runs. >> is there a specific trade to be made around about the spread at the oil market? >> well not at the moment. we really expected to spend most of 2015 between 8 to $12. it's hovering more around that $10 range but whenever you see that spread tighten up late last year and into this year it got actually positive where wti was over brent. people have to remember the land locks and transportation costs have to be factored into the price s

the difference or spread the better for refiners because they use oil as an input, pricesed in had wti, and then sell their products based on higher brent prices. if that spread is wider these guys make more money. refiners are an interesting trade to watch in energy given what's happened with oil price movements not just in wti but brent as well. back to you guys. >> thanks. and jim lebenthal, this plays into your portfolio. >> it does. i want to make one point. dom is exactly right, that these stocks have been trading on the spread between west texas and brent for the reasons that he listed but when you actually go into the companies and do the fundamental analysis, particularly marathon petroleum we own and are long, these are extremely well companies where despite the fact that their raw material costs number one and almost only raw material cost has collapsed they're actually doing a great job of controlling all the other costs that go into refining fuel. so they've got great demand for their end product, they've got a collapse in their cost of goods sold and they've got good mana

wti not quite, but well off its lows.dlines, at least from the financial times, nigeria's oil minister apparently telling or being reported on by the ft that there may be an emergency opec meeting to deal with the price slide. wti still down but well off its lows. brent crude now positive. will this turn the tide on oil permanently? we'll talk more about that and much more when "power lunch" returns. financial noise financial noise financial noise zimplt welcome back to power lunch. they're coming just a bit now. they're being 4e78 helped along by analysts at citigroup. they're remaining positive but if prices for the products can be raised, it would help profit estimates here. international paper, rock ten, packaging corp. of america were mentioned in the note as beneficiaries of the possible higher prices as well as lower input costs. mandy, back to you. >> thank you. >>> over the weekend a disturbing threat from the islamic group al shbaab based in africa. they said they would target american shopping malls, specifical

wti crude trading at $47.47.rude holding on to the $52 level. >>> exxonmobil is set to report earnings before the bell. all eyes on the call tal spending plans. analysts expect revenue and earnings to come in lower than 2014 fourth quarter level. the shares are trading around 5% over the last 12 months. joining us now is ian reid. thank you very much for being with us. throughout the show we're talking about the russian effect. it's hitting luxury brands to automakers. we'll see that effect with exxonmobil through the business. how do you think it's going to play out in the earnings cycle? >> they don't have a huge -- bp has a big shareholder. that have a big project put on hold because the sanctions. it will certainly upset exxon medium term value. it's not going what-- we have estimate of 11%. shale has a $15 billion. >> we know declining oil prices will hit. it's bottom line. do you think the oil giant could surprise to the upside? i was looking at my notes on average earnings forecast for exxon have come down

on monday wti crude traded at $53 per barrel. that's $55 less than the peak price of $108 of june of last year. american energy producers are repositionre repositions their operations. they are delaying capital investment shutting down productions of higher costing existing wells. they are refocusing their attention. as of last friday the total number of oil and natural gas drilling rigs fell to 1,456. that's down 17.8% from a year ago and the lowest level in five years. energy companies are scaling back capital expenditures in 2015. this means layoffs and they will not just be in the oil patch. hotels, transportation, restaurant, construction could all take a hit if this low oil price environment exists. >> lower oil prices are in large part the function of booming u.s. oil production which is increased by 4 million barrels per day over the last six years. producers need to reduce their costs. >> on the other hand we also have energy producers who are challenged in a low oil price environment. we have a lot of workers being laid

wti is still under 60. rig counts are collapsing. that tells me the oil price isn't going to go back down to 50 40 50. you're going to have to trade it because it's been massive volatility. >> and inventories yesterday came in five times higher than we expected. so will you see today's fall back in the oil price and yesterday's fall back was justified? >> i think we have bottomed. i think we have bottomed but the process can be volatile and take a number of months. with these statistics you get one good one and one bad one. the market reacts one way one day and another way the next. we will see a slow gradual climb in the oil price. >> does the nasdaq break 5000 this year? >> of course it does. >> should investors stay to the sidelines? >> no but they shown buy stuff like facebook or go near the new ipos because they're ridiculously overpriced and they should stick to apple and microsoft that generates good earnings. >> doesn't that worry you that that's a pretty consensus trade? >> yes. which is why i like oil. most people are scare

right now down 2.30 on wti, trading at 50.74. telling me when we went over 54 yesterday, that's where we saw resistance. not surprising when you see technical move like to see a push back down. the perfect storm to go lower today. rising dollar, that's one of the issues. but also waiting for the department of energy to release its crude inventory report at 10:307 got the api report last night, bearish. we saw 6 million barrel build. people in the marketplace saying we could see u.s. production go down, say, in the second half of the year at least right now it doesn't appear to be the case. so that's a little bit of a reality setting in. the talk on the floor from trader is is $40 oil still possible. last time we went down we didn't necessarily go down in a straight, steep line. so these kind of moves are expected. back to you. >> thank you. >>> when we come back former staples ceo, tom stem berg his take on the company to buy office depot. you know jason lee, now on the amazon original series "cocked," joining us live. dow down 1

percent of domestic production anticipated in 2015 would break-even between $50 and $69 per barrel wti. on monday that crude traded at $53 a barrel. $55 less than the peak price of june last year at $100 per american energy producers are repositioning operations to better withstand a low-price environment to delay capital investment to shut down production and refocusing their attention from currently being produced in this we spots progress of last friday the total number of drilling rigs actively exploring fell at 1,456 that is down 17.8% from one year ago and the lowest level in five years. energy companies are scaling back capital expenditures that means layoffs and not just with the oil patch exploration and production companies equipment manufacturers hotels and restaurants and transportation construction could all take a hit if this environment exist. lower oil prices are a large part a function of booming oil production which has increased by 4 million barrels per day over the last six years. to keep up the flow flow, producers need to reduce cost. on the one hand, we have low

. >>> the prolonged decline in crude oil prices continues with benchmark wti crude oil futures plunging nearly 50% over the last six months. malaysia, asia's major exporter is feeling the impact both on its national finances, and in daily life. nhk world reports. >> reporter: last month, nation prime minister expressed deep concern over the decline in crude oil prices. >> translator: the decline in crude oil prices is directly linked to falling government revenue. >> reporter: malaysia's annual exports of petroleum and petroleum products are $26 billion. the government collects nearly 30% of its revenue from taxes on the petroleum-related industries. the drop in crude oil prices has posed the malaysian government to take exceptional measures cutting its budget for the new fiscal year by around $1.5 billion. >> the demand for oil is still low. i think the government, the multilateral agencies will pressure. the opec and non-opec nations to adjust their projections. >> reporter: declining oil prices have also affected the nation, which has fallen more than 10% since last august. but it ha

>> well, i'm a little bit more on the optimistic side that i believe the average oil price on the wti basis this year probably was hovering around $70 a barrel. if that being the case and the government recently revised the fiscal budget with assumption of oil price at $50 a barrel, so this higher oil price would boost our government revenue and in turn if they maintain the revised expenditure, we should be able to achieve a fiscal deficit of around 3% of maybe even slightly lower. >> thank you very much. >> thank you. >>> the most important holiday in the chinese calendar are just around the corner and people are busy stocking up on supplies. millions of these shoppers are heading for hong kong. mainland chinese believe they can find better quality goods in the territory. retailers stand to prompt profit, but not everyone is happy about the tidal wave of terrorists. our reporter has more. >> reporter: the streets of hong kong, they are calling for mainland visitors. one group broke into a shopping mall popular with mainland terrorists. police used pepper spray to control the unrest.

crude reversing what was a four-day rally hovering close to the $50 mark on wti.res of chipotle slipping after revenue missing analyst expectations. sales growth at the restaurant chain came in below estimates. sales growth 26%, wasn't good enough, and food costs are rising. that stock down nearly 8%. staples announcing this morning it will buy office depot in a deal worth $6.3 billion. office depot is moving to the upside, staples down by about 11s%. carl, that deal would be merging number one and number two players in the office products retail space. that all depends on how washington comes down on that. >> not a slam dunk by any means, at least that's what symptom stemberg said this morning. when we come back lending club announcing a partnership with alibaba yesterday. the ceo of lending club will join us in a first on cnbc interview in a moment and move over amazon, another company getting ready to test its delivery drones. we'll tell you who a little bit later on. and speaking of amazon, talking to the latest star of an amazon original series, jason lee at

wti crude trading higher 8 cents. brent crude, the international gauge for oil right now trading just above $60 a barrel. taking a look at european markets, another crucial day for greece after germany rejected its bid in an effort to extend its bailout by six months. that of course happened last month. markets responding today so that lack of negotiations taking place between greek leaders and european policy is makers continues to dominate. the tax down. we did get a whole dose of disappointing manufacturing activity that has been weighing on investors sentiment. in france a loss of around 25 points. remember the ceasefire over the weekend, fighting continues. the micex index, the russian equity market down about half a percent. wilfred? >> seema, thank you very much. let's move on. telecom italia unveiled its new three-year investment plan after a drop in revenue for 2014 broad ly in line with analyst expectations. let's get out to steve sedgwick who is standing by with the ceo. >> the shares coming out a little bi

>> so the etf supposed to track wti here, this is one where there's an interesting setup as far as options go to zero and calls are more expensive than puts. it's a scenario where at the moment it's not idea but probably better than buying uso which has been volatile. i would set puts and use proceeds to buy call spreads and actually have exposure to the upside. >> what do you say? >> right now options premiums are relatively elevated. oil has been volatile. i wouldn't be reaching out and buying it but you can get long exposure and if you do end up having uso put to you, it will be lower levels. >> consensus was we were going to 40 and -- >> 30 even. >> that's why it stopped and started pushing back towards 52. if one can put enough time on the trade, i think selling puts makes a lot of sense. >> ww granmy asks, please follow up with carter worth regarding the numerous calls of retest of 1820 on the s&p. >> september 19th, in october we plunged. that's a foreshadowing of what's going to look like, which is worse. the further this goes without that kind of drawdown the worse it will be. not

this is wti, the red line. it is also up 13% on wti.founder of cups capital management and a tesla shareholder. andrew, it's interesting how closely this stock has tracked oil. are you concerned that at least in the near term it's going to face headwinds as we have oil looking like it's sort of stagnating here? >> no i'm not concerned. i think it's been surprising that tesla and dozens a dozens of other stocks we didn't think about when we thought of oil have been so highly correlated. i think over the course of the year or year and a half or so oil will tend to drift higher but, frankly, tesla is going to i think, decouple here over 2015 or at least probably have a positive bias regardless of whether oil does. >> what is your number one concern going into this quarter? is it china because of those elon musk comments he made saying that the china rollout is a little slower than he had expected? >> it's not because i really -- i think in any perspective as we step back a year from now, two years from now, it won't be whether they had a s

>> so the etf that's supposed to track i think wti here, one where an interesting setup as far as optionsto zero. not going to zero, calls more expensive than puts. at moment not ideal but better than the iso. i look to sell puts and use the proceeds to buy call spreads and look for a ban you would get much loet lower and have exposure to the upside. >> mike? >> options premiums are relative youly elevated. oil extremely volatile. i wouldn't reach out and just buy it, you can get long exposure, paid for taking it. if you end up having uso put to you it will be at significant lower levels than where currently traded. >> and consensus, we're definitely going to 40. exactly -- 430. why it stopped and pushed back towards 52. if you can put enough time on the trade, leave it to you all, it makes a lot of sense. >> ww granny asks, please follow-up with carter regarding his numerous calls of retest of 820 on the s&p? >> that drop, think about that time frame, september 19th, october 15th, plunged 10%. a foreshadowing of what the next one will look like, which is worse by all accounts. the furthe

>> you know, so the etf that's supposed to track wti here. one that's interesting as far as options prices. it can only go to zero and it won't. and calls are more expensive than puts. it's a scenario where at the moment it's not ideal but probably better than buying the uso right here which has been very volatile. i would look to sell puts and use the proceeds to buy call spreads and look to create a band with long much lower and actually have exposure to the upside. >> mike? >> right now options premiums are relatively elevated. obviously oil has been extremely volca volatile. this is one way to get long exposure, get paid for taking it. if you have uso put to you it will be at significantly lower levels. >> consensus is we're definitely going to 40. that's -- >> or 30. >> that's why it stopped and started pushing toward 52. if one can put enough time on the trade i think selling puts on uso makes sense. >> and please follow up with carter worth regarding his numerous calls of retest of 1820 on spx. >> if you can think about that drop, sept

the blue line on the bottom on the left is wti. american oil prices have been lower than global oil prices pretty much consistently since 2011 when the boom in u.s. oil production commenced. the u.s. has been producing a million barrels per day of oil each year for the last three years, 2011, 2012, 2013 all had it. so this has been upsetting the order of global crude prices. there's also been arbitrage against the crude prices but the arbitrage has grown to the point where it became extreme. most oil market observers believe that this meant that the united states was going to have an oil price advantage for the foreseeable future along with the natural gas advantage shown on the chart on your right over there. but no one thought that would weigh precipitously on the national oil prices. of course what occurred over the last six or seven months is that all oil prices have been dragged lower by the increase in u.s. production. so the question is really what changed? the first thing that changed was the distribution of global oil supp

wti 49.13. >> it will be interesting to see what janet yellen says about oil prices. yellen heading to capitol hill for the first part of her semiannual testimony to congress on the economy and monetary policy. some believe yellen could strike a hawkish tone keeping alive the idea of a june rate hike. last week they suggested many officials were inclined to keep rates low even longer but since the fed's last meeting such as a strong january jobs report may have changed their stance. you can see her testimony right here on cnbc starting at 10:00 a.m. eastern. >> and we are playing janet yellen bingo here at cnbc. which single word do you expect the fed chair to say most often? oil perhaps? inflation? the word patience we might see or employment. >> yes. >> and europe. what she has to say about europe is going to be seen as a tail wind versus a head wind. >> i wonder if she'll lump that in under international. >> will she call it actual markets? >> i'm interested to know where she gets most of her news. perhaps she'll say worldwide exchange. >> she must be watching this

the reason being is the wider spread between brent and wti.or for this group. >> right. we didn't hear that also from the integrated that the refining was very strong. we do appreciate it. >> even though oil is nearly $10 off its 52-week low from 352 weeks ago, kate, you have been working hard as always. many out there, many smart, successful oil speculators are betting that oil will move lower. >> retail investors, i should say, are stampeding to buy oil and speculateors overall, if you look at the cot numbers are generally long. many commodity hedge funds are betting it will move lower in the coming months rather than higher. they're not thinking about them being blocked in yet. at $3.7 billion, january marked five-year high for oil etf as an asset class as smaller investors bet that $45 oil would surely snap back. that influx has pushed kroid crude higher as discussed. as have cuts in capital spending. drillers and big reductions. sandridge being the most recent example. some analysts and hedge fund traders are seeing much the opposite. we'

that pressured prices, wti down $1.18 to $44.84 and brent crude also fell as you see there. >>> it was a busy day in washington. the president asked congress to authorize a three year fight against isis. the house passed the keystone pipeline bill and the debate over how to fund homeland security is really heating up. john harwood is in washington tonight and you have a lot on the agenda, john. should we start with keystone first? >> reporter: sure. the house is now passed the senate bill on keystone with 29 democratic votes. that's not enough to override the veto that president obama has promised. so we're looking for that bill to go to the president fairly quickly. for the president to veto it and then we're going to find out whether or not there are negotiations between democrats and republicans on some sort of compromise in which the president might allow keystone to go forward in return from some concession for republicans, but republican aids on capitol hill telling no negotiations have begun yet. >> the president sent i guess a resolution up to capitol hill today seeking the abi

the oil market fluctuating today after the international energy -- sprint is up while wti is down.to bringing you the most important stories you need to know before the bell. let's head straight to number four. u.s. prosecutors putting pressure on the world's biggest banks come asking them to plead guilty to criminal charges. investigations including currency manipulation. >> i thought this was pretty shocking. i did not expect the justice department to ask banks to plead guilty to criminal charges. those are things that historically they have not done because they're worried it will have a negative effect on the u.s. financial system. >> i agree with you 100%. >> do the guilty charges fall in the subsidiaries in question? some customers might not want to or be able to deal with planks that have pled guilty that some banks that have pled guilty to criminal charges. >> on the other hand, a little part of me was sad the age of frontrunning your clients is coming to an end. >> wipe that tear and let's move on. oil fell for the first time in four days amid speculation that he was suppl

so you do have wti actually rising today by better than 2%. however stocks are falling.g back in eric irvin and anthony chan. eric, what about this tracking and the correlation to oil, how closely do we need to be watching that now? >> it's precisely it. this perfect is priced to perfection. everyone is so concerned about any small move in volatility. in the case of the oil sectors, it's been interesting. you have seen dividends increase. of the 45 companies, 15 of them increased. nobody has cut their dividends since the announcement. i'd be very careful. utilities is another one that's kind of frightening. they're the single best performing sector last year. there could be some -- >> so you think -- do you think this financial engineering story is going to be as prominent in 2015 whether it's dividends, buybacks, things like that? >> so at reality shares we focus on stripping out the growth of the dividend from the market price. so we truly do isolate that growth of the dividend as opposed to the overall story of the equity markets. equity markets are going to be incred

. >> below 50 again on the all-important wti. and the ten-year, after yesterday, of course fed minutes, we saw prices up yields down. and we are still lower certainly than we were yesterday at least because i remember we were at least 2.1, if not almost 2.2 on the day. our road map starts with walmart, earnings beat on the bottom line. and this very important announcement, it's going to raise the pay for roughly 500,000 employees. >>> the markets, well volatile. yes, they are. premarket germany rejecting greece's debt plan. oil is sliding. earnings beats from t-mobile marriott priceline. those stocks moving higher. first, let's get to carl. he's in arkansas. he's got more on today's news from walmart. carl? >> yeah interesting, david. the quarter looked pretty good 1.61 beats 1.54 estimate. u.s. comps up 1.5, better than expected. recall that back in the third quarter of last year was the first time u.s. comps went positive in about seven quarters. talk to doug mcmillon about that later. the big news is this news on wages, giving

explain cushing here. >> it's a hub there, and that's where the main wti delivery poins2Ñis. 25 bucks a barrel, though? >> 25 bucks a barrel. if we become full -- part of the problem is the stoj issue here. traders look to the far enof the curve. they say later on prices are probably going to be higher in the 60s or whatever. they are looking at the prices here at 48 saying let's store this crude and sell it later at a higher price. well, if you finally fill up the storage points and nobody can do that anymore and stocks continue to go up, the inventory's go up every week. crude -- >> you have to sell. >> exactly. >> you have to sell it. can't horde it. great point. we are full, full, sell it off, and there's too much of something and not enough buyers? >> price goes down. >> wep exactly. >> demand's part of the equation there right now. >> listen, i have -- jackie, i talked to oil producers, scarry numbers, what oil is selling in the markets, not imex, not repeating them because you cannot verify, but there's people out there starting to desperatelq i can verify that, talked

it's bounced easily 30% off of its dead low for wti and brent. if you take a look at the longer term picture, in fact, it's still down about 47% on the spot price. let's look at how xle has been since crude fell. which was right back here. you notice the xle is down approximately 20% in that time frame. actually if we took a look at crude prices, in fact, long dated crude was about $88 a barrel before all of this started to happen. now about $72. a comparable decline. so, the next question is, are we trying to see a breakout? is this actually going to bounce back? in fact, we crossed the hundred-day moving average today. i think one of the most interesting things for people who have been playing in the energy space is the fact that the counts dropped so quickly. it showed that the producing community is responsible. here's something else that's interesting too. here's a look at the short interest in the energy stocks going back to 2008. and if you think about what's a good time to buy securities, it's when everybody is basically throwing everythi

we finished at 5116 for wti. down 90 cents on the day.aders asking if this is us trying to find a bottom or if we are going to see builds like this in the next few weeks. do we take that big leg lower? gold. we saw a little bargain hunting when we hit the $1200 mark. 700 on the uncertainty in greece isn't exactly safe haven buying. this has been a rough trade and most people aren't expecting it to do much from here. back to you. >> jackie thank you. we're going to drill down on gold. it's down 10% over the last year. that's not as bad as shares of gold corp down double in that time. >> joining us charles jenesse, chuck we call him. he likes to be called that. president and ceo of gold corp. chuck, welcome back. >> thanks, bill. pleasure to be with you. >> so a bigger loss than expected. this impairment charge had something to do with that yes? >> right. of course it's a noncash charge to the balance sheet and the value that we carry an asset in argentina on the balance sheet, and that's due to the conditions that we've seen down there in

let's check brent crude ahead of the close and wti as well. we're up $50 in wti. brent crude up $2.e about wti. that's what gasoline is priced off of. we're up $120 a barrel. also, the triple q's that mirror the nasdaq as we are watching a march towards -- back towards, i should say, nasdaq 5,000. the qqq is up one-tenth of 1%. here's the menu for the rest of the hour. the next big battleground for tech is not your lig room. this song should be a big hint. has apple's record run created fantastic opportunities in other stocks. we'll give you our theory and names ahead. >> and three stocks that have been red hot in my world, wall isn't a street. return on investment isn't the only return i'm looking forward to. for some every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. start investing with as little as fifty dollars. . >> every day is a big day. we have not one, but two dif

oil prices falling in terms of the wti contract. mixed reaction in terms of pricing.s is 10% of production being affected in the u.s. it could get as high as 64% if we do see all of the united steelworkers union refineries the terminals, the pipelines, if they all get hit by this strike action, we could see 64% hit. it looks like more strikes could be called. more refineries are thinking about standing up and taking this position because they are not getting anywhere in their contract negotiations. shell negotiates on behalf of and they are locking heads. five contracts have been offered up and rejected. what do they want? better pay and better protection of this none your workers and getting their jobs and better health. not an agreement here. when we saw it before we saw three months of action back in 1980. they are really worried. what trouble upstream and downstream and how are companies reacting? >> we have the key negotiator here, when he got a statement saying we are committed to resolving this and we want to go back to the negotiation table. what of the compan

frankly, for wti we see those pressures being very pronounced over the next few weeks. we do think it's going to be very close to full capacity. brent is a bit of a different story. the market internationally has held up a little bit better. there are a couple of reasons for that. first is that libya has actually gone back to producing very little oil because of the domestic perm owl, and iraq has faced also some disruptions because of weather, so we've seen some less oil being produced out of opec for unexpected reasons. the market is still pretty over supplied. >> so fran chifko, just to connect the dots then if you think they can hold up better than wti and in six to eight weeks we're going to be at capacity when it comes to storage and, therefore, there could be another leg lower, where do you see the spread going. it seems like it could widen much more beyond where we're seeing right now. >> it could widen. we do think ultimately that getting close to full storage in the u.s. is also going to impact the international market. we are seeing obviously inventories fill

brent is above $60 and wti is above $50.express, one of today's top dow gainers, up 1.5% or so. the company says it's hiking its interest rate on some of its credit cards by an average of 2.5 percentage points in recent weeks. >> thanks very much. it said that because it did a survey recently and discovered it's competitors were charging more than it was. so they knew they could get away with that. by the way, it may be a top gainer today, but american express is the worst performing dow component so far this year. even so noted investigate mario gobe lli told "the halftime report" he's still buying it. >> i like it more. if i liked it two weeks ago at $95, i have to like it at $78. >> do you add to your position? >> tiny. >> joining us right now in the bull corner, cnbc contributor michael yosh ka mi and david nelson from bell point asset management. welcome to you both. michael, first to you. why do you by am ex here? >> you buy am ex number one, because it's one of the few companies out there that actually has top line re

wti is below 52. brent is at $60 per barrel. euro will cost you $1.14. 118 yen for every dollar and pound will cost you almost $1.54. >> you'll meet the man behind the new company trying to keep the tradition of handwriting notes alive. he has a big time wall street backer betting on his idea. i'm excited about the next segment. >> plus real estate mogul and minority owner of the nets and chairman paul jacobs. a must see coast-to-coast edition of squawk box this morning. we're coming back in just a moment. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of

west texas intermediate wti -- the supply picture has not changed yet. >> therein lies the problem for u.s. talk had another record built last week. the largest four-week build on record. they are still producing even if there is no demand. that paints a very grim picture. the board of directors will be meeting on friday to find a replacement for the current ceo. it is unclear if she will remain at her post until then. there have been accusations of mid-level executives at the company inflating project prices and using the money to pocket for themselves and for kickbacks for government individuals to help wrap up the project faster. that is at the core is what is going on. the current president of brazil wears -- was the chairman of petrobras until 2010. will she be implicated? are there any accusations that might run up the chain to her? >> who were some of the candidates and -- in line? >> the company has a massive amount of debt, what are the $5 billion. -- $135 billion. reduction falling 9% year on year. this company cannot go to the public market. it cannot sell bonds until it rep

we have wti 48.9 at 1%. brent at 54.9. up 1.5%.therford international, one of the world's biggest oil services farms will cut about 5,000 jobs this quarter. the cuts equal to about 9% of the company's work force and the majority will come from the western hemisphere. they're offering voluntary buyouts to reduce head count. rivals have also cut jobs. weatherford so far in frankfurt trade it's appearing as closed today. over the last three month os down 22%. >> coming up on the show how big of an opportunity is india for the social media giant twitter? well we are delighted to welcome valley wagner. the founder and ceo of zipdial. that's coming up after this break. >>> welcome back. investors are counting down to twitters earnings report after the bell. one focus will be it's expansion overseas. twitter snapped up indian mobile start up zip dial for about $40 million. joining us now is the founder and ceo of zipdial valerie wagner. it's been a tough year for the company. wall street disappointed with the lack of user growth. tell us

i'm looking at wti. flying high the one day. what is going on with the price of oil?t behaving this way? >> it is extremely high uncertainty in the market. opec-related uncertainty, demand relating uncertainty coming from europe. on top of that, you have got the euro versus the dollar. all these aspects have led to increased volatility in oil markets, which if you look at the money they have gone up to 60%. historic highs. we are looking at high volatility causing the up-and-down, increase in decreases we are seeing in oil prices. >> the question i will ask you is when i've asked a few people. this time last year, no one was saying that this was an oversupplied market. we sit here now and everyone says it is. what has changed in terms of supply in the last 12 months? were we wrong then or are things wrong now? >> if you look back at the same time last year, we were slightly an oversupplied market but the slight oversupply was really taken away by the outages or geopolitical risks or premiums attached to it. it was balanced in that aspect but july last year we started

energy shares were the big winners after wti brent crude gained more than 4%, and pfizer's deal to buy hostile rougher $17 billion lifted the shares of both companies. verizon wants cash to buy spectrum and to pay down debt. the company says they've made two big deals. verizon is selling to frontier communications for $10.5 billion in cash. verizon is selling wireless towers to the already indebted american tower corporation. a quick round up of tech earnings -- "call of duty" maker activision, stocks tumbling. the company says a strong u.s. dollar will hurt profits going forward. former parent vivendi plans to sell the rest of its stake in activision. $867 million worth of stock, although a little bit less after-hours now. go pro, shares surging 75% in the key fourth-quarter. the camera on the stick is going to get better. they are talking about a new camera on a stick called the hero 4 camera. go pro profits, $122 million in the quarter. earnings report, not so rosy for pandora. the internet radio service added 5 million active listeners in the quarter, but the overall growth rate is

oil has been trying to find a bottom and it's just about staying above 50 for wti. it's 50.8 and brent above 60 at the moment. so quite an interesting dissection today: seema, back to you. >> wti crude gaining about 4% in yesterday's trade. that might have been one of the reasons we saw the dow close at a record high. playing a big role in yesterday's rally. however the s&p 500 and the nasdaq did close slightly lower on the day. pu tours pointing to a different picture. perhaps a positive day on wall street. we'll have to wait until we get that open but right now the focus will continue to be on the nasdaq. striking distance of 5,000. we want to hear from you. does the milestone matter? does it mean anything to you? we had tweets from you this morning. let's get straight to them. james thinks every thousand points is a plateau. while will believes milestones are meaningless particularly when compared to the black monday correction. i actually disagree with that. i think it's a psychological level for traders and many times traders look to levels where they're tradin

wti crude now at $49.16.imed at getting rid of conflicts of interest among brokers and financial retirement advisers. focuses on practices that critics argue lead to excessive fees that eat into investment returns. >>> and i'm going to consider one of you -- >> it says anchor. it must be me. demand is fueling ticket sales for the grateful dead's 50th anniversary reunion shows this summer in chicago. steve leisman sat down with bob wier in his first extended interview since the shows were announced. do you remember bob wier when he was, like 25? >> yeah. i actually met him back then in the '80s. >> how did -- i mean there were groupies, weren't there? bob was so handsome. >> there's a documentary that was done on bob's life. he talks about doing it for the sex, not the music. >> he was so good looking. and his voice and everything else. >> this is a band that's been around for 50 years. the base player still sells out the capitol theater for extended runs. >> does he do "unbroken chain"? >> he does. they have

wti crude on track to end it's monthly losing streak at 7. that's one of the reason we have been seeing a rebound trading below $50 barrel. yesterday down as much as 3%. in today's trade up about 2%. >> we had a bit of a bounce back in oil but only about 2 or 3%. oil has a big impact on the russian market but only 2% of gains there has lead to much bigger gains as we look at it at the moment. it's up about -- this is this month when in fact it has returned much more than this is showing. the micex up 20% over the course of the month. it also had a boost from also if we look at the rouble because the rouble made the return much stronger. 5.3% we have seen over the course of the month. over the course of the month here in europe that's up 20.1% even though it's giving up a little bit of ground today. >> we've been watching shares of aig moving sharply higher after beating earnings estimates. the parent company increased it's profit outlook by 20%. the company said it is still interested in acquiring the irish carrier. what's driving the company

really a big pivot point here between 48 and 52 in wti crude.hat will weigh on the stock market. as a whole, i think the s&p that's pretty good. we don't see the runoff to the upside. i think that's holding back and getting us better evaluations. and that's one of the reasons why it's still very bullish in stocks. i think at least precious metals and most of the common i did complex themselves will see a lot weaker price action this week. >> michael, thank you very much for joining us today. michael, founder and president of bruin hill partners. and of course whether the nasdaq will hit 5,000. seema will be posting her own analysis today. that's all we have time for on "worldwide exchange." >> don't move. squawk box is next. good morning. battling to keep stocks an three week winning streak. the nasdaq coming off the fifth highest close ever. we have a call on crude. oil prices dropping right now but the same cannot be said for cost at the pump. >>> and the woes of winter an ice storm now threatening travel in one of the nice's busiest airport h