halliburton and baker hughes. want to talk at&t. downgrade from morgan stanley of the media names. all of it coming up after this. welcome back to showdown! i'm jerry rice here discussing the upcoming big race between the tortoise and the hare. jerry, the hare always brags about his speed. fine, but he crossed the line when he told... hey, turtle neck. want a head start, how about a week. yeah, my performance does the talking, ok. jerry, thanks for having me, i have film to study. hey, how about you rice cake wanna race? you don't want none of this. vote on twitter for your chance to win a mercedes-benz big race viewing party. do y ou like to travel? i'm all about "free" travel babe. that's what i do. [ female announcer ] fortunately, there's an easier way, with creditcards.com. compare hundreds of cards from every major bank and find the one that's right for you. creditcards.com. it's simple. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degre

baker hughes as well. companies rose more than 1% today. not everyone though is suffering because of the falling crude prices. delta airline said lower fuel costs should save the economy more than $2 billion this year. its results topped estimates as it was also helped by an increase in passenger traffic. shares soared by 7% on delta to $49.17. outer wall the parent of red box. the video rental kiosks announced executive changes today. ceo is stepping down and resigning from the board. no explanation was given and another board member was appointed as interim chief. investors didn't like that. shares plunged as a result by 20% to $62.05. investors bought smith and westman. hiked for the third quarter and this year citing improving consumer demand for guns. shares rose 16.5% to $11.67. and there was an interesting day for shares of orbitz. that stock was halted at one point and then it was reopened on a report that the online travel site is exploring a possible sale and has drawn interest from private equity firms as well as other internet c

you see mixed bags for the stocks, halliburton and baker hughes are higher.by halliburton, and the chief operating officer saying there, well, we'll adjust our head count as needed, right? so being a little bit vague. but they employ 80,000 people, cut a thousand job ises in the fourth quarter. we know baker hughes, they will have a work force reduction in the first quarter. might be -- and thaw might take a charge for that of about $160 million or maybe more. but that's what's going on n. the big picture, they've got to cope in line with what the activity is, and you know, obviously, oil prices have been to the downside. and this all comes on the heels of the imf cutting its global growth forecast, so it's also an economic indicator. lori: nicole petallides, thank you. the uber for home improvement. porch.com is a start-up that helps homeowners find the right contractors based on their project and cost history as well as relations from friends and neighbors -- recommendations from friends and neighbors. porch cofounder and ceo matt ehrlichman is our guest. s

you're seeing companies like baker hughes have the lay-offs. u.s.eel laying off people because there's less demand for equipment like pipes that the oil industry uses. all is not lost. there's a silver lining here. >> i'm ready for it. >> it never feels good to be laid off. it doesn't feel good. if you're going to be laid off anyway i guess now is the best time if there's ever a best time because your prospects forgetting work are better than they were let's say two years ago if you were laid off. you look at how the jobs picture is right now, last year was the best year of job growth here in this country since 1999 almost 3 million jobs created. the sky isn't falling. if you want to see the downside to the jobs picture, it's wages. our wages really are stagnateing. >> the old jobs are good paying jobs. >> these are good paying jobs. these are people losing their jobs. once again, the sky isn't falling for the overall jobs picture. >> i feel a little better now. then i'm not the one being laid off. alison kosik, thanks so much. >>> still to come bil

baker hughes and halliburton announced layoffs today, too.y're going to have -- >> i don't have a problem with the layoffs, i have a problem with the layoffs and the billion dollars happening simultaneously. i think that's a problem, and historically, these guys don't have a great track record for picking bottoms. the idea you must buy back the stock today, keep the billion in the bank! >> you have to do the best for your money, and right now, if you're in the oil services business, putting it into rigs for drilling is a crazy -- >> i'm not saying, that you're missing my point. >> if the stock goes down 20% for the rest of the year, is it a smart move? >> no. >> it will go down less because of what they did. >> time for the marching ordering. want to get final thoughts on the state of the union, how it's going to impact the economy, main street, and main street more than anything else. president obama says he feels embolden. forget the midterm elections, have you seen the poll numbers? he's going to hit the populist thing hard? >> he thinks h

check out the latest oil and gas oil rig count data from the big firm of baker hughes. there were 1,840 operating oil and gas rigs in america last week, this week down to 1,811 that is a drop of 1.5%. it was nearly 10% higher last week. it is not too terrible for us yet. canada is beginning to get crushed. their cost of production higher and rigs shut at a more rapid pace. last week 256 operating oil and gas rigs. this week just 208. that means that 18% of canada's oil and gas rigs as measured by baker hughes have been shut down in just a week. for the job impact keep this rough guide in mind as we learned in texas there are about 25 people directly employed by each new drilling rig. there are 100 different companies and hundreds of workers who are indirectly employed and attached to each drilling rig. this could be, in other words, a big hit to jobs. >>> u.s. steel announcing it is laying off about 750 workers because of the drop in crude. u.s. steel will idle a plant in ohio. so for the week the stock is down about 7%. >>> let's bring in cnbc contributor, listen, at t

you have the lower rate count since baker hughes managed that in 1987.utch shell canceled a billion dollar project in qatar. you are seeing a huge cut. this is a gain back. >> is cheap gas better than a loss of jobs? >> there is a loss of jobs in the oil industry. it is a gain in jobs for the airline industry, for example, which had to lay people off when fuel costs are so high. we can't stop agreeing today. what's this mean? it means $500 a year in the average consumer's pocket. $100 billion in the economy in a more efficient way. it's not for anyone to lose a job but one sector it's another. >> schlumberger cut jobs. if you have extra money from gas savings, where did it go? it's in homes going onto your food bill because food prices have gone up. i'm not sure this is going to work out the way everyone is hoping it is. >> last word there. thanks, guys. thank you, sasha for joining us. >> thank you. >> now the government is talking about running the >>> terrorism is real. defend yourself. smith and wesson up 15% over the next 12 months. >> your predicti

oil soaring 8% after baker hughes released the latest rig count data showing the number of rigs fell by 94 this week this. is one of the steepest, fastest declines we have seen for oil. >> it is the biggest move on a weekly basis since 1987. another time oil went through another contribution in price. if you listen to all of the guys, they tell us they think the end of the first quarter is where you see the bottom because a lot of guys are hedged through that and will produce to the end of that. the market always leads the underlying fundamentals. if you look at a six-month chart from the summer, we are bottoming here. in fact we have done it over the last three to four weeks. it is not just a pop today giving me confidence. if you look at the fact that the cash cost of $65, it is an interesting time. >> in crude oil it was. i think the rig count is part of it. there were rumors out of iraq. i think that is part of it. if you look at where it closed and when it didn't, a lot of these commodity funds start with an allocation of say $100 million. they have to be back up to that $100 mi

halliburton, baker hughes. they did beat on the bottom line, but management cautious about the future. specifically citing potential problems of low oil prices in 2015. overall these factors put together sending prices lower. i know i heard that tease that you're going to be talking about gas prices. your guest may be saying they could go back up to $5. $2.05. we could be under $2 very soon. back to you. >> thank you very much. >> let's get more on the continued downward spiral in oil and natural gas and bring in eric lee, a commodity analyst at citi. eric, any floor for gas and/or oil anywhere on your radar? >> i'm going to focus on oil today, but certainly for the short-term, there are a lot of downward factors, and it's going to be hard for exactly where and at what level the oil price is going to fall to. that said, it would not be surprising and it's quite possible to see $13, $20 even in the short-term. that said, we do see a recovery in 2016 back to potentially $70 level. >> when do you think the recover

. >> i mentioned the comcast-time warner cable, halliburton and baker hughes.hat characterizes a mega-deal? over $10 billion? >> it is kind of a moving line. we see some deals of more than $50 billion like time warner and comcast directv and at&t. but there were also deals over the $10 billion range, and that added to the total volume in 2014. >> we talked about the telecom and cable deal also pharmaceutical companies and energy. are there any sectors that were dormant in 2014 that you expect to have more activity this year? >> we didn't see a lot of energy deals in 2014. there were some but it wasn't a sector that was particularly hot. that's likely to change in 2015 especially with oil prices as low as they are. that's making some companies a lot more vulnerable. and big companies he would never have thought of as takeover target a few months ago are now a lot cheaper. >> the u.s. dollar at a 4.5-year high against the euro. does this also mean maybe u.s. companies get to go by things in europe? >> i think so. people we talked to about 2015 m&a are calling for

. >> because of the pending acquisition of baker hughes buying baker here is a cheap way of getting halliburton a year or so from now. there's about a 12% spread on the two. essentially buying baker today is like buying halliburton at 33. >> michael carl thank you very much. quick answers. we appreciate it. >>> csx kicking off an earnings season later today for the railroad stocks, and let's take a look if we might at csx shares. there you see them down about one-third of a percent on the day today at 33.80. plummeting oil prices causing pros and cons for this sector. they carry out and consume it. >> hey, tyler. well, pros and cons is right. that's why this earnings season will be so important. there are three major railroad operators -- three major ways that railroad operators could feel the effects of falling energy prices. >> oil shipments. this has been a fast growing business since the fracking crude. searching more than 2,000% since 2006, and so far those volumes are still increasing. if that changes, keep in mind you can sort of see that here. it's still just a fraction of overall rail

two of that city biggest employers, halliburton and baker hughes poised to cut jobs. not just in houston. american express and ebay the latest two announcing layoffs are coming as well. the sudden drop in profit about 40% in the first quarter, i imagine it's a matter of time before they're cutting back in a flash as well. sandbag. maybe not as well. with an economy the president has been trumping and pumping. you don't go around the country relate patting yourself on the back if this reversing recovery risks kicking folks in the ass. or something like that. john paul, of course the brains behind the paul mitchell hair products. and the pa tron liquor products. i need a drink. >> me too. neil: what's going on? >> i was a bit disappointed, on the state of the union message, politicians were taking all the credit. they never said the people. that's the businesspeople of america. that four or five years ago when things were bad, we grabbed it by the horns. we turned things around. neil: you don't credit the stimulus and all that? >> i would say that with all due respect t

and baker hughes. sen thousand people. 11 percent of the work force globally to be laid-off. jenna and jon, it is amazing when we think about this and we continued to hire in 2014. think of that wave about to crash and it is 25000 people and growing. >> the president talks about the job growth and the state of the union and a lot has to do with the jobs in this industry. >> we'll have big lay offs and the dallas federal reserve in texas alone with all of the jobs related to the oil industry, you could see 140000 people unmuched. >> and we'll see evident of that in the jobless claims. adam nice to have you on set. don't miss adam on the fox business network. go to fox business.comslash channel finder. >> just when it feels like we were climbing out of the recession. middle class are not seeing a rise in income. president obama said it is time for americans to do their fair share. a new debate on what is fair. you followed the rules and vaccinated your kids for measles. what if your child's classmate did not get the measles

two of that city biggest employers, halliburton and baker hughes poised to cut jobs.in houston. american express and ebay the latest two announcing layoffs are coming as well. the sudden drop in profit about 40% in the first quarter, i imagine it's a matter of time before they're cutting back in a flash as well. sandbag. maybe not as well. with an economy the president has been trumping and pumping. you don't go around the country relate patting yourself on the back if this reversing

. >> why did you bail on baker hughes, that could be a huge winner. >> i do like baker. like it. i just how to joe it had done so well and they have that deal going on with halliburton, assuming nothing breaks up from that deal. i still like that going forward. but this is for beta. for this portfolio i was going after ones -- >> that deal happens there is a lot of lot of beta potential there wouldn't you agree. >> so much of this is stock too though. it is not a $77 deal like it was when halibut rn announced. it is going a less deal. so it's not as much upside. i have two in here that are takeout candidates i think. stratasys i have them in here because they were down some 40 odd% last year. and i think they are a take out candidate. and the ak you ray therapy. this one one the same. i think someone out there can buy them. >> what if you are mid year. >> i don't think i'll be in these la long. i hope to be making trades every week. maybe even in week, judge. >>> coming ups. blackberry ceo says his company is on the right track. john chen's first on cnbc interview up nex

baker hughes rig count. the biggest recount in 24 years, this was the biggest recount week over week, and since the drop in rig counts began, that's a sign we're going to see u.s. oil production start to level off, if not decline later in the year. so this is coming fast and furious. we've also had this incredible week of every energy company talking about capital expenditure cuts, that's going to take its toll on production not just here in the u.s. but globally. everybody will put it in a market that can continue to spike next week. liz: joe, as you spin it forward to next week and you look at the eminis and the s&p futures. what happened in the last couple minutes of trade that would have dropped the market to its knees? >> i think right now everyone saw the move in the bonds. at 151, i mean, i didn't expect this pullback into the close, i'll tell you that much. we were buying vix options going into midday today, volatility has been all over the map. you got the curve in a weird position, so right now, yo

texas-based oil company baker hughes is the latest plans to slash 7,000 positions, cut capital spendinghat's a big trim folks. cheap energy is great for consumers, but it's devastating for those energy companies, which have expanded and expanded and expanded and now they're trimming a bit. >> big problems in texas ahead. all right, "early start" continues right now. >>> president obama defiantly pushing his agenda in his state of the union address. he proposes free community college, higher taxes for the wealthy and a promise to veto bills that dismantle his executive action. we will break down the big moments, the surprising moments and the response. it is all generating this morning. good morning, everyone. great to see you. welcome to "early start." i'm john berman. >> i'm christine romans. it is wednesday, january 21st 5:00 a.m. in the east. president obama struck a confident tone last night, seemingly undaunted as he gave his first state of the union speech to an entirely republican-controlled congress. the president putting forward the agenda of an

the week before baker hughes announced combined reduction of 16,000 positions. wide spread layoffs expected in oil producing states like wyoming, north dakota oklahoma and louisiana. economists say there is a silver lining that people are spending less on gas they have more cash to burn elsewhere. >> thank you. >>> next in the grapevine political correctness rears its ugly or maybe we should say cosmetically challenged head again on campus. this time no more mr. anything. for many prescription nexium helps heal acid-related erosions in the lining of the esophagus. it's my prescription. there is risk of bone fracture and low magnesium levels. side effects may include headache abdominal pain and diarrhea. if you have persistent diarrhea, contact your doctor right away. other serious stomach conditions may exist. avoid if you take clopidogrel. it's my prescription. nexium 40mg is available only by prescription. pay only $15 a month. visit purplepill.com today. >>> mr. and ms. have been kicked out of city universe. "wall street journal" reported school officials sen

also, layoffs, big reductions happening at big names like bhp, and baker hughes.s in the oil really no better off than their smaller counterparts. we'll pose that question and nba valuations gone wild. well, we'll see. lots of things coming up. power lunch returns after this break. "street signs" starts at the top of the hour. 12345u hi. jon and pete najarian here. the popularity of options trading has skyrocketed. but we still hear from viewers every day who don't know how to profit from them. so we wrote an entire book to show you how we trade options. and if you're one of the first 250 people to call in right now and just cover the shipping and handling we'll send you a copy for free. look at the rates of return we've made on some of our recent options trades versus what we would have made if we'd just bought the stock. there's no comparison. to make the best returns in today's markets you have to learn how to trade options. and our book will show you how we do it for free. it shows you how to use options just like we do to make more money from every dollar you

the halliburton/baker hughes calls terrific. great technology plays.azing come been nation. the only one we've not talked about, the market's turned. unitedhealth reported a great quarter. goldman sachs upgraded that last week. picture perfect quarter. they can make more money next year. good play on employment growth. very clean quarter. >> up sharply. >> very clean quarter. terrific job by those guys. very good job for years now. >> yeah. so, quick 90 points down 90 points up. bob pisani's on the floor. bob. >> i've been standing here a few minutes. dow down more than 100 points and now it has turned positive. a strange morning. at the open weakness in defensive names. utility stocks consumer stocks telecom stocks weak. it's all turned around. from the very start we had a rally in energy stocks and the important thing is west texas intermediate stabilizes 45 47 it's roughly 47 today. put up energy stocks. more volatile names, den bury anadarko, sw energy you're getting 3% 4% moves right at the start. exexxon and chevron helping the dow. everybody's w

we saw conoco phillips slash 20% of the capital spending and schlumberger and baker hughes and the big services companies cutting tens of thousands of jobs because the demand isn't there to produce it at this price. >> well keep in mind it's not so much a question of producing it at this price. there are other factors that are at play here. part of it is being able to move that product whether it's through a pipeline like keystone excel pipeline having the refinery so we can refine the product, so there's so much more that goes into it all impacting jobs or americans around the country and an opportunity for energy independence and north american energy independence that we should not overlook. >> no doubt this is going to be a big, big battle in washington. senator, i appreciate your time. >> thank you. >>> alaska not the only state in this oil battle. as i was just talking about, most of north dakota's economiy depends solely on oil, but will the boom in the boom town keep going? that's next. also coming up can lsd make you a billionaire? seriously, some in silicon valley swear the p

baker hughes out with its latest showing rigs down 29% from last week to 1811.ig count still up from the same time one year ago. it's been a tough session overall for energy stocks leading wait lower here. noble energy, dan bury resources, trance soegssoceantransocean, out of the top 20 decliner, 15 were energy related. >>> while most people will be flying in to las vegas for the annual consumer electronics show this week phil lebeau is driving. sort of. he's got access to a new hands free technology. so phil is in the car right now. and you are watching his car. it is especially equipped audi. where are you and what do other drivers see or how do they react when they see you're driving a driverless car? >> a few double takes. in this fact right now we have a few cars passing you. but this will show you how the technology works. we will be able to essentially do lane changes without having to worry about other traffic that is around. but right now you see i'm not controlling the vehicle at all. as cars are going around us at some point we'll speed up ahead here

the baker hughes and the halliburton numbers don't, won't take into account all the bad numbers going that's why i wouldn't want to fet in front of it. i think there's a downside. >> two huge movers, netflix and ibm pulling in weak guidance. more on those calls and the trades and moves ahead of tomorrow's open. stay tuned. >>> want more "fast money," catch full enseeds anytime anywhere on your mobile device. >> and i do mean everywhere. >> go to cnbc.com/livetv to watch "fast money" on your smartphone, your tablet or your laptop. watch live or get up to speed with the latest full episodes all with one simple click. with market advice this good, you can't afford to miss a single trade. get your ticket to "fast money" -- >> everywhere at cnbc.com/live tv. >>> still ahead on "fast money," the netflix ceo and the company's earnings shares are popping in the after hour session. on the pete we have the latest from the conference call and big blue's big blunder. the call just wrapping up. instant reaction from a top analyst, plus, shares of delta soar we've got our first ever, first ever tag

today you may have seen schlumberger and baker hughes announced 16,000 layoffs combined between them.out drilling by unemploying people, then production comes to a rapid halt production grows and is so that will ease the equilibrium between the supply overage and the demand shortfall. gerri: but $5 a gallon? how fast can that happen? >> when i said that, i said 2020. so this is -- gerri: okay. >> -- moving towards 100 million barrels a day demand by 2020. i don't know how we get there but when you're pushing 100 million barrels today it's 93. where is 9 million barrels additional coming from? and remember the other thing that happens, there's a natural decline rate of 4-5% for conventional oil an accelerated decline rate for shale oil of about 30-40% and that means we have to find 5 or 6 million new barrels a year just to stay even, let alone to get to 100 million -- gerri: i do want to point out you have called for $5 a gallon in the past, so you've been here before. why might it happen this time around? >> well, it all depends on global growth. and i was assuming the kind of global

just release from baker hughes. we'll tell you how many rigs are going to shut down here, and a surprising number of out of my new favorite country, canada. >>> the impact of the dollar and oil, let us bring in now russ costrich from plaque rock and a man who you saw on television in canada, actually. he was on tv. i took a picture. i sent it to him. it's good to see you stateside, my friend. tell us what the best opportunities are right now? >> it's not because the fundamentals are better, and it's not that the u.s. are two advantages we don't have right now. accommodative central banks, and lower valuation. >> what about the dollar? we were just talking about that a moment ago. i think that are you in the camp of dollar strength for 2015. you know, okay, might be a problem with the margins for some companies at the moment, but if it keeps on strengthening, it might be much more of a problem for the overall markets. do you agree? >>. >> you are going to see a significant diversion from the fed and every other centr

texas-based oil company baker hughes is the latest announcing plans to slash 7,000 positions and cut 20%. cheap energy is great for consumers, but it is devastating for these energy companies, and we've seen one after another, job cuts and cuts to their exploration and development. so watch this space. the down side of falling crude. >> a lot to talk about today. the aftermath of the president's state of the union, big economic news and breaking news from the war on >>> the president of the united states. >> the shadow of crisis has passed and the state of the union is strong. >> it's time to move on. beyond president barack obama. >> i wish i had better news for you. all is not well in america. >> americans have been hurting. >> i have no more campaign to run. i know 'cuz i won both of them. >> this morning, yemen under siege. >> it may be the most volatile situation on the face of the planet. >> we apologize for the error. >> we apologize for the error. >> the mayor of paris plans to sue fox news. >> fox news has been embarrassed, humele yat ed lhumiliated. is a joke. >>> this is "

as an industry since 1987 with baker hughes, started counting rigs in this country.d the biggest laydown, over 200 rigs were shutdown, 4% drop. supply will come off line. the floor on wheel prices are close to where we are right now in the mid 45 range. stuart: earlier today on this program we had on hofmeister, former president of shell and he said with prices at these levels for any length of time the drillers stop drilling but demand for oil stays where it is. you are going to draw down that service and keeping prices go straight back up. we have a $100 bet. he says the price of gasoline will go to $4 a gallon later this calendar year. i said $100 is you are wrong. what do you say? >> i hope john is right. i hope he is right for the sake of the industry. i know consumers love cheap gasoline but the reality is there are consequences with the jobs, over 9 million people in this country supported by oil and gas with hospital workers and restaurants and things of that nature. not just guys on rigs but keep in mind these are the highest-paid workers in this country, wi

pink slips to employees in the houston area. 16,000 combined jobs will be lost between oil giants baker hughesland, texas has been hit especially hard. that region as you know experience ad modern-day oil boom in recent years. local experts tell me 25 to 40% of the drilling there could eventually come to a complete halt because if companies are not letting people go, most are at least scaling back produc been running four rigs most of 2014. we have already dropped one and gone to three. and we will be in the process and in late february, early march and we'll go to two. >> reporter: texas certainly not alone. other top oil producing states like oklahoma louisiana, wyoming and north dakota also taking a pretty major hit, martha. martha: with the bad also comes some good right? >> reporter: of course. we paid lowest prices we paid for gas in this country since 2009. that is good news. and of course, you talked to economists we spoke to one at federal reserve bank here in dallas tells us it is simple economics. if people spend less to fill up their cars then they have more cash to drop elsewhere.

you get a halliburton, baker hughes they don't need all these people. when you see this tremendous capital expenditure budget that's people. you just don't need as many people. >> the rig count will be 20% off their highs in a couple of months. >> go back to that great conference call they told you below $70, it's all bets are off. we are way below $70. >> what do you make of the idea after the fed says we might have said the word "patient" but that doesn't mean we won't height and with inflation under the target market's not convulsing on that. >> it's interesting. every time the fed minutes have come out the last few years there was a big trade. people ignored it. a bigger global trend is happening. >> there is the s&p at the top of your screen and look at the opening bell. trust and fiduciary management services celebrating the recent listing of its master income etf. at the nasdaq it's sprouts farmer market participating in nasdaq's fit week. >> sprouts introduced me to all the things our parentsed a in their pantry they are being depantried. if you

those are still -- the bakers hughes discount is dropping but not as much. >> 114th congress sworn. in president will face a republican controlled house and senate. mitch mcconnell says legislation to approve the keystone pipeline will be the first item up for review. the white house says he believes the pipeline would have little impact on gas prices. what do you make of that argument? >> i don't think it will happen under this president. this is one of those issues frankly, where the canadian companies, where people don't understand. canadian pipeline companies, you think they are waiting for keystone? they've taken direct action to get that oil into our country because they don't believe president obama is going to approve it. when they do come on "mad money" they are, can you believe we want to create 60,000 jobs do this and that? what matters is that the pipeline has been obviated by u.s. companies. it is dirty oil. they spend billions upgrading refineries to take care of keystone. only nigeria has cleaner oil than eagle ford. >> depends where you are. >> i think continental su

big fourth quarter for baker hughes, oilfield services, he soared past estimates adjusted earnings pere of $1.44. analysts surveyed expected one dollar -- $1.07. google is close to investing in space exploration technologies which was to provide internet access via satellite. the investment of roughly $1 billion would value mask's spacex at more than 10 lead dollars. google wants to spread internet access as it tries to boost its user base and sell more digital ads. huge opening weekend for "american sniper." the top grossing movie in the u.s. and canada over the holiday weekend to a collecting a record-setting $105.3 million per ticket sales. the four-day total was the highest ever for martin luther king junior holiday weekend. the warner bros. film nominated persists -- for six oscars. those are your top headlines. we also heard or overnight we learn china's economy grew 7.3% in 2014, slightly better than forecast but it is the slowest expansion since 1990. leland miller, you're now is with the beige book for 7.3% growth? >> we assume stabilization in the economy since q2 strong job

instead i look at schlumberger halliburton, baker hughes, deeply involved in the oil business and they did not complain about the price of oil as much as caterpillar did. >> yeah. >> not the only big component. microsoft shares down sharply after weaker than expected revenue guide 'for the quarter and fiscal second quarter in line with forecast. on the conference call the ceo spoke about some of the challenges the company faced in the second quarter. >> as expected the one time benefit of windows xp end of life pc refresh cycle has tailed off. additionally, ran into unexpected issues in select geographies. where there are execution issues, we will address them. where there are macro economic challenges we will weather them. >> jim, software up five new york where near the double digit. citi takes it to a sell. amy hood mentions the dollar moving to office 36 pa5. >> my charitable trust owns this. bad call. body language was like we're not that good. don't worry, we'll get better. in the meantime, when you have companies like adobe going to the cloud, they tell a good cloud story. satya

leading the way higher for this morning at least for now are anadarko petroleum, marathon baker hughesgreen. the question is whether or not they stay that way over the course of today's session. back over to you. >>> for more on the paris situation, let's bring in bob liscouski. welcome back to the program. clearly it's a difficult day in paris with these shooting. i believe 12 confirmed dead at the hands of machine guns and people reportedly running away shouting "allah." what is the reaction to what you know? >> good morning, simon. it certainly seems look a farley well planned attack. the attack started off, it must have had some pretty good operational, preoperational planning given the fact they understood when meetings were going to be taking place, when most of their targets would be present which apparently wasn't that frequently. they knew that the police protection was going to be there, based upon preoperational surveillance. it looks like a fairly well planned attack and as well as their ability to excoordinate with the getaway car. >> i am in no way condoning the murder of

oil soaring 8% after baker hughes released the latest rig count data showing the number of rigs fellhis. is one

also, some earnings out from baker hughes and halliburton. numbers were good but cautious commentary from management on oil prices in 2015. price for a gallon of regular price according to aaa, $2.05. everybody is watching to see when that national average goes below $2. >> it's already happening in many states. by the way, one of our next guests say forget the current price of oil, it's the oil futures. those stand at $53 for december of this year, under $59 for december of '16. >> joining us why is john kingston director of news. thanks for joining us today. campbell, what do you see here? on the one hand you've got a guy like the prince who is one of the savviest investors who says we will never see $100 oil again. and then john hofmeister says we'll see 100 bucks by the end of the year. what are we to make of that and where do you see it going? >> what i think is way too much attention is put on the spot price. just a few minutes ago we heard $46. there's much more information in the market about the price of oil, and the logical place to

here is the bad news texas oil layoffs, 9,000, baker hughes, 7,000. halliburton, 1,000.f gas. >> these are jobs that are high paying. these jobs require certain skill sets and they've been trained to do these long-term projects within the energy business. look, if you look at the dallas federal reserve research, they will say all of the jobs created since 2007 came from texas. they were energy related. now the dallas federal reserve is out with its new annual report and they are saying that yes, we will see job losses as a result of this weakness. they're not predicting recession. they think texas will continue to grow. however, you are seeing a real dent in what was one of the bright spots in american jobs. >> the other side of it is it's bright for awful us because now we're paying a fraction of what we were just a year ago. >> it's true. but what are we doing with that money? so far we have not seen that money filter through the economy. lot of people were saying this is a big positive because at some point you have that extra money in your pocket, you spend it in the