principle, caterpillar cannot withstand this kind of pressure from crude. so here is the bet we're making. caterpillar, crude, and then reverse. so you have a% 30% and a perfect 30% decline. the risk is we're hovering right at these well-defined lows. put this in the context of a long-term chart. triple top, well-defined level and the bet is that caterpillar is going to break. and a bad break here implies something along the order of 75 or the lows of 2007. sell caterpillar if you have it, looks to us like there's downside risk. >> what do you think? >> a lot of people make commodities super cycle argument about caterpillar, been bearish, jim's argument for quite a while. part of what you're seeing is a correlation to commodities more generally. they have a lot of exposure to things like materials and mining. however, it's hard to figure out how this will impressive us on the 27th when they announce earnings. the other nice things about this as an options trader not ridiculous that catalyst, 4% move. this is a situation we can take a short punter by buying

caterpillar is a great american manufacturer. the fact is caterpillar is trade like a commodity, iron like cliff's natural, like freeport -- nothing is bad as freeport excuse me. i look at caterpillar and i say to myself why am i in it? after today, maybe for yield protection. they do a lot of cash flow. but, david why didn't this company preannounce? why didn't they at the begin of the year look at order book and say we're not going to make the number? >> they do issue rolling retail sales, jim. you could have taken a clue from na that. >> look, i think in the end if you look at their end markets you were hoping that nonresidential construction you were hoping that road building hoping that anything might offset what caterpillar had. 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 a

this is a three-year chart of caterpillar versus crude oil. the plunge in crude -- and while caterpillar has been weak and not commen-- the commodity crud shoots on the upside. and let's say it's over shooting on the downside. the principle here is the caterpillar cannot with stand this kind of pressure from crude. caterpill caterpillar, crude and then reverse, i have a perfect 30% advance and a 30% decline. you have something of a triple top. you have this well defined level and the bet is that caterpillar is going to break. and a bad break here implies something along the order of 2005. we're back to 2011. sell your caterpillar if you have it. >> i think a lot of people have been making the commodity's argument that they have been bearish for some time. part of what you're seeing there is a correlation to come out of these more generally. they have a lot of exposure to materials and mining. it's hard to figure out how this one is really going to impress us when they announce earnings on the 27th. the options aren't ridiculously expensive to

sell your caterpillar if you have it.ooks to us as if there are down side risks. >> mike, what do you think? how does it set up? >> a lot of people have been making the commodity super cycle argument about caterpillar. they have been bearish nfor a long time. >> part of what you are seeing is a correlation to commodities. they have a lot of exposure like materials and mining. it is hard to figure out how this one is really going to impress us on the 27th when they announce earnings. the other nice thing about this situation is that the options aren't ridiculously expensive to play that catalist. looking at a 4 plus move, it is not implying a move that big. we can take a short punt by buying some short-dated options. that's what i was looking to do today. earlier, when the market was a little bit higher, you could buy the february, '86 puts and that will give us a little time to make that bearish bet. that's one way you can risk a relatively small amount of the stock price and make a bearish bet. >>> management has had a r

and i think this caterpillar story is a bigger story beyond just caterpillar.e start with the storm. it's not as big of a storm in the new york city area. and even then they were playing down the economic impact. here's the reason. it takes a lot to derail the region's economy, the nation's economy. a single storm is usually just not up to the task. >> referee: what's really important from an economic perspective as it relates to metro areas and the costs to cleaning up snow it's more important the number of storms not the amount of the storms. if you've got ten storms where you've got five inches that has a bigger impact than one storm with 50 inches. >> all we have to do is look to last year which is a good example of how winter weather affects. lots of storms affecting a wide area. remember, that surprise 2.1% decline in the first quarter mostly thought to be weather induced. and some of the gdp in the next two quarters which you can see there averaged a strong 4.8%. that was a weather induced snapback. now we get a 3.3% gdp number expected. that seems more

i'm bullish on caterpillar, by the way. cheapest its been. don't give up on caterpillar.harles: 70% of their business outside of this country. all right. before we wrap it up, how can viewers make money off the idea that maybe we're seeing something with the rails, a glimmer of something on the ground, some industrial growth here. >> union pacific, up. last week, their auto sales were 9% up over the week before. that's good. gravel, sand, up 34%. that's that switch i'm talking about. matt: i'll piggyback, i'll go with freight car. ril. fifty-six cents to 2.21 next year. nonliquid rails is what they make their cars. >> cfx. dominant presence in the east coast. like a monopoly turned down an acquisition. charles: i believe something will happen. i believe they'll get an offer they can't refuse. >> gbx, 90% earnings growth. this is a long-term hold. charles: all right. good. hey, guys, i'll answer a loyal viewers question on a couple of stocks. i could be answering one of yours physical therapy i hopyours.i hope to he. strict around. here to make you money back in three minu

the bet is that caterpillar is going to break. bad break implies something along the order of 75 or back to the lows of 2011. >> you can buy the february 86 and that would be about $2.80. it will capture those earnings. >> carter, 75. still in the cards? >> we are not quite there. there is massive run over 20 or 30 years, lower implications. >> mike, what are you doing? >> i am going to sell and roll down and out. we are not going to have that much gearing in the options we have. take the profits and apply them to something else. >> i was skeptical of pressing it. it was a great call. the stock found a home at 80. even today it did not budge much from 82. the company bought $4.2 in accelerated buy backs last year. i think maybe that give its support between 75 to 80. >> it wasn't just caterpillar. a few weeks before that carter bet against qualcomm. are you staying in this trade? >> this was so aggressive. the gap is so big. we would say move along and declare victory and walk away. >> the biggest disappointment is that we did not

caterpillar. >> caterpillar cannot with stand this pressure from crude. caterpillar is going to break and a bad break applies something along the order of 75 or back to the loes of 2011. >> you could buy the february 86 puts. those were costing $2.10. that's going to give us time to make that bet. it will capture those earnings. >> so carter, 75, still in the cards here? >> we're not quite there yet. we would say there's more down side and the long-term structure here is a massive run over 20 or 30 years. >> mike, what are you doing? holding on to the puts? >> i'm going to sell the puts and roll down and out and we're not going to have that much gearing in the options right now. take some of the profits and apply them to a lower strike put. >> i was a little skeptical of pricing. it was a great, great call. >> fantastic call. >> the stock did find a home at 80 this week and it didn't budge much from 82. i'm hard pressed to think the company back $4.2 billion and i have to assume they get back an start buying again. maybe that gives support between 75 and

because we look at caterpillar as a bellwether for the global economy, and caterpillar earnings comingimates. coming in $1.35 versus estimates of $1.55. u.s. can guess the reason -- oil. caterpillar say make the global growth of only 2.7% this year. they blame the large front of the decline on a sales and revenue outlook again on oil. a little but of cost from recovering -- from restructuring. we know given the dramatic collapse in the price of oil, it is really changed a lot of big oil companies' plans. >> a lot of it is the new mediocrity coming to roost. >> where they see their growth long-term is in emerging markets. it is not an accident. we are talking by the president right now was just in india. one of the key relationships right now with india is a congressman from illinois peoria aaron aaron schock and he wants to make sure that company is there so caterpillar can export to india. >> construction equipment sales in china, so your.mac caterpillar's dependent on emerging markets for growth, it is a worrisome time from the will's largest consumer. >> this goes to the linkage on

we heard from caterpillar and a host from other companies there is an fx problem. apple just looks like super man compared to the rest the s&p 500. >> and here is kind of an up loved part of the story. macs are taking share. so microsoft doesn't sell into the mac. but so to me, these guys are doing a lot of things right. i want to actually make one point. there is the iphone company. there is a huge number, 687. that was the asps on iphones. and they have larger capacity and we have larger screen phones. i'm not certain that's the one thing, if you want to pick this apart, i'm not certain in an environment that we are in going forward where they will be a lot of the growth, which will is geographically whether that is an asp that will stand none a world where android really dominates market share. >> i'll get back on my horse now. gross margins were 39.9%. they beat by 140 bips over what the street was and this is a the a time where i think this refreshment, people are willing to pay this. apple should be defended here for their ability to defend their margins and

again, look at caterpillar.ew product market is slowing dramatically, so titan makes secondary market tires and wheels. people aren't going to buy new tractors and farm equipment, so they're going to replace their tires and wheels, and it's a great thing. it's just been marked down 15 points not because of anything fundamental with the company. liz: brent, do you have an etf that you like for those investors who simply want to stay put in the? >> sure. i guess in the u.s. we've stuck more with the value type stocks. the big fear is deflation, and we believe it's highly unlikely in 2015. in fact, as the eurozone reflates, that will actually with, you know, cause bond yields to move higher, etc. liz: okay. >> so in the u.s. we would focus more on value type of stocks. iwd, ticker symbol, and since the recovery has began value versus growth has been delineated by whether yields are moving up or down. you should focus your portfolio more towards value stocks. liz: okay. value stocks it is. good to see all of you. ro

another point on caterpillar in addition to the dollar that you mentioned is that jpmorgan also cut caterpillarns of its oil exposure with worries that that, too, is weighing on caterpillar. it not only affects the sector after energy which is the worst performer of 2014 and kicks it off today as worst perform per as well but also moves on to some other areas such as caterpillar, right? earth-moving equipment and that's a laggard as well. stuart: yes. that strong dollar hurts caterpillars of this world. national average of gasoline down again, $2.19. but remember, this time last year the price of regular was $3.31. look at it now, $2.19. come on in scott shellady out of chicago. all right, scott you correctly said when oil was at 70, it would go to 60. then you correctly said when oil was at 60, it would go to 50. what are you predicting now? >> somewhere between 30 and $40 a barrel i think is where we're going to finally watch this thing end up bottoming out. and, stuart the automobile associations will tell us that $75 billion is being put back in the consumers' pocket right now, but on a $16

the fourth quarter numbers for caterpillar disappointed.-- they make big earthmoving equipment. you sought ucf numbers. we are seeing that play out along the big pharmaceutical companies. pfizer will see a drop in sales this year. proctor and gamble had 67% of its sales from overseas. ditto for bristol meyer. i want to point out a couple of things. yelp is getting an upgrade from raymond james. corning also reports core earnings up. it does them -- have some hedges. parker hannifin says adjusted earnings will be analyst estimates. it rates its full-year profit forecast. >> at least some green. >> thank you. much more ahead, the coke brothers are playing big in 2016. how much they will pump into the presidential race. we have today's big number 40. we are talking content and movies at the sundance the vessel. we will talk to john sloss the producer behind "boyhood." ♪ this week, hollywood executives are at the sundance vessel. studios are feeling the pressure from rivals like amazon and netflix. it's really netflix. is this a game changer fo

although, caterpillar said it was oil prices, not the dollar.he dollar starts to have an impact, it is going to weigh on business orders. the question is, how long does the consumer keep the company -- keep the economy propped up? >> how low does it have to go for it to have a broader impact for the u.s. economy? >> you will see the economy growing more slowly than people expect. morgan stanley lowered their forecast for gdp growth from 2.8% this year to 2.6% in 2016. they are seeing a weight from that. they think the fed is not going to move until the first quarter of 2016 at this point. >> the two companies that stood out to me or png and dupont -- >> microsoft too by the way. >> if you are looking at investors spending on the decline because of oil or other reasons and you are looking at consumer spending and confidence that is up and consumer spending accounts for a lot more in gdp than business spending does. wouldn't that outweigh? >> that is why we are still seeing growth and not any kind of recessionary forecast. consumer spending, two t

the earnings from caterpillar, the comments from caterpillar's ceo disappointing as well.re down 390 points. we're down 284 points right now. will things turn around with earnings coming out at the top of the hour? we'll see. apple reporting they're down 3.25%. yahoo! is down 3%. amgen down half a percent. at&t reporting, they're down 1%. obviously mary thompson of those apple will have the biggest impact. >> without a doubt. it was interesting to watch the stock. sold off a little bit coming into the close. the key is houp iphones did it sell into the quarter. >> do you like apple, jeremy hill? >> i don't like apple right now because i think there's a tremendous risk around the watch. i think we're hearing a little bit about some of perhaps the manufacturing problems they're having. this earnings season i think is all about how many new iphone 6 they sold. that's a given. >> better be allowed. >> if they have guidance at all vis-a-vis the watch, we start to see kind of coming out of silicon valley a little bit of chirping about a watch. i think we're going to see some pri

caterpillar down big time. the biggest drop for that stock in four years.hat stocks biggest drop in a year and a half. combine those two. move on down the list. united technologies. dupont. they are all down. dragging the dow industrials. the technology sector are. the worst performing their own fault. locate the big names. apple. google. amazon. twitter. all of them down. cheryl casone is here this wednesday morning. what does it tell me about the economy? or perhaps there is more going on. that is what i think actually hurt the market. down 3.4%. even if things bolstered are both good orders, taking all of that away. you are seeing manufacturing slowdown. i cannot make a lot of sense of this. single-family home sales. volume went up even as prices were slowing down. >> the economy is beginning to slow. retail sales were down in december. >> it is accurate. i wanted to throw in a couple of data points. >> you have 5% growth in the third quarter of last year. we get the numbers first name friday morning. that is a less of a growth rate. >> a little disappoi

. >> well he's right but corporate earn frtionom caterpillar

. >> well he's right but corporate earn frtionom caterpillar and procter & gamble is telling quite a different story as well

apple and caterpillar bringing down the dow. we're down about 250 points, but below the day was 17,288. we're about 140 points off that low. still, no consolation especially for microsoft investors. that stock is on pace for its worst day in a year and a half. you do have gold rallying, though, up over $13 per ounce. let's get to it and get around the horn and hit everything thaw need to know beginning with mary thompson at the new york stock exchange. >> thank you, brooirn. as you mentioned, the headlines are the earnings disappointed investors along with the goods numbers. those numbers putting pressure on the markets guidance which, of course, investors watch when these companies report. very light. the 18 s&p 500 companies report are issuing guidance. all 18 have issued negative guidance. a beg reason for that is the dollar strength that we have seen over the last several months. that impacting a number of multi-nationals as they release their earnings today. among those companies, pulling down their 2015 forecasts because o

don't go out tomorrow and short caterpillar but tim talked about the bottom in commodities.on't see another super cycle coming. so could you get a pop? great but it wouldn't be anything b.k. holds for a long time. >> i tell you what though, 52 week low, it held 80 all through 2014 and breaks $80 and it's broken. so it's typically early which means wrong in our world which doesn't mean he totally missed the boat on this cat trade. this thing has a long way to go. >> were you asking to make the analysis comparing the cat trade to this call? to the drillers? >> no, i wanted to discuss another one because that's something he called for and it wasn't working in his favor at all and it peaked and came back down. >> this chart looks like every commodity chart. 83 is three year support on it. guys it's a very important level but also a level that held countless times through a lot of main. >> in terms of the production trade you at one point wanted to put on a short of xop. >> i wanted to go long. i was short xop coming into this for a portion of the oil route and i thought, you kno

among the other leaders are people like caterpillar. people exposed to the world economy. so this is a sign that things may be slowing down not only in europe but generally. >> caterpillar and other companies that do a lot of their business outside the united states are finding their products more expensive to sell. if earnings suffer well you know what happens to stock prices. likewise for big retailers selling not only overseas but to tourists who are suddenly finding it more expensive to buy here. think macy's abercrombie & fitch, and tiffany, which noted back in november that foreign tourist spending in the third quarter of 2014 was flat compared to the year before. so what happens next? if as most people think, the fed begins to raise interest rates later this year the dollar may get more expensive, but there may be a bright side. cheaper imports here in the united s falling oil is holding down prices at the gas pump and other cheap imports could mean low inflation numbers. if that in turn becomes a stimulus for exporters like china, japan and especially europe it cou

caterpillar in particular.aterpillar comes out and basically says commodity prices are hitting their profits. going forward, the low oil prices will bring a soft 2015. looking at copper basically five 1/2 year lows. iron ore coal these are things which they're involved with. with that down 7 1/2% for caterpillar. so right now the dow is down almost 250 points. we had been down 370 and on the these of some weak economic news in particular and tough earnings we're really just seeing selling across the board today. back to you. melissa: nicole, thank you so much. much of the northeast still digging themselves out from a massive amount of snow. some parts of massachusetts got more than two feet. it is still coming down. poor molly line braving the elements in boston. how is it going there molly? you look fantastic. >> thanks melissa. it is actually pretty surreal. kind of interesting. the travel ban is still in effect for eastern part of massachusetts. just listed it for the western counties, four western county. w

caterpillar they're getting hit hard. a lot of headwinds.'t it be surprising to see $75 billion to go back into consumer pockets because of the cheaper gas prices and still have the economy take a nose dive. that's the one thing the fed is the most worried about. melissa: it would be surprising. a lot of folks say that math doesn't work. that we're getting such a tremendous discount from these lower energy prices. we're not taking that into account scott. what do you think? >> no. we're robbing peter four times to pay paul once. yes, your gas prices will be cheaper. but at the end of the day, your 401(k) will be cheaper. the stock market will come off. a lot of the stocks have energy in them. you'll be losing a lot more money in the market then you will be gaining at the gas pump. that's the simple skinny. melissa: i don't know. you're talking about people who are invested. not everyone who is invested. a lot of folks who benefit from lower oil prices are not invested. i hear the -- the argument. folks are on your side. as global tensions es

starts to feel panicky to me. >> but that's a great area when you talk about caterpillar, that makes sense. that is would not of those that gets sold off and i'd agree with dan, that makes sense. >> rightfully sold off. so squwhat is wrongfully sold o? >> anything in the airline world. i'd be buying those hand over fist. >> our next level of support for oil, carter worth is over here at the smart board with the details. what are we looking at? >> we know one thing, it's a mess. it's a good rule to learn some of the lessons again. buying weak sness is treacherou. wti, well confined equilibrium and fairly epic collapse. we've gone from $110 a barrel, even broke $50 today. so now what? when you are in a free fall, there is no level really to cite. you have to go back further. take a look. this is going back over about 25 years. basically we know that crude traded in a well defined range from 10 to 40. if you go back even further, always between 10 and 40. and this is the epic emerging markets boom when we got up to 140 a barrel. the collapse -- we are approaching the top of this range.

caterpillar on a downgrade today, one of the worst performers if not the so far.on the big laggard so far. coca-cola and merck the only into in the green bucking the trend. so two positives out of 30. back to you. >>> amazon announcing that its third party sellers sold more than 2 billion items in 2014. and that accounted for more than 40% of the total unit volume sold on amazon's site. morgan stanley warning that some of its wealth management clients had client data stolen by one of its employees. and american airlines pilots union tentatively accepting a contract offer that would mean a 23% wage hike if the members of the union go for it in a vote later this month. sue. >>> gold prices are closing right now given the volatility in today's market, let's check on things. we're up about 1.5% on comex gold for the february 15 contract. let's see about silver, cop, platinum and palladium. a mixed bag. copper on the down side but that's worries about global growth. the silver market platinum and palladium are all on the up side. platinum leading the way. now to the bo

caterpillar missed, guidance below, blamed oil. pg blame currency, pfizer, microsoft guides below expectations of some. >> yeah. let me go back to your original question. i don't think captain america is crumbling. i think the oil patch in america does have a problem and that will last for a little bit. caterpillar is a mess. we can talk about that at a later point in time. the other companies you mentioned a common theme of a strong dollar here. now here's thoughts on that. the strong dollar is actually going to have demand elsewhere in the world where the help needs to be and frankly, look, we're all, you know, wise, older men shall we say here. we've seen the dollar go back and forth. i like a strong dollar, but frankly it's not going to last. let's just not worry about a temporary phenomena. >> pete, what are your thoughts as you have all of these companies, big, big companies, out of the dow, examining out, and giving disappointing earnings, their stocks are getting hammered today, do you yourself, someone who's been bullish,

. >> is that a reason why companies like caterpillar landry's yam ha fund the project. why are they interested? >> we are starting to see fortune 500 starting to understand that the great countries that built the planet will need to create a future for the planet. when you see someone like chairman of caterpillar adding sustainability as a core value we need a robust future for the planet. shell is now dipping their toe in the water to help us maximize our science. you know the millennial, they want to work with organizations that are doing good while they do well. we are a perfect vehicle for that. >> talk to me about cool technology that you use? >> some of the latest tracking technology in the world that we mount on the fins of the sharks so every time they stick their fin out of the water it beams their location into our office which we share on the tracker with the world. so the whole world is involved in probably the most charismatic research project in recent times in the ocean in real time with the phds. while the students follow the sharks and pick their favori

that's going to eat into caterpillar's profits. that's one of the things that really affected the stock market yesterday. it was down more than 200 points yesterday because of the strong dollar. and the dollar could get even stronger if the fed scales back all of that quantitative easing. >>> uber this morning says it's going to continue to help solve the scourge of drunk driving. in a blog post, uber, which has teamed up for a study with mothers against drunk driving, says when you measure up all the markets in california where uber operates, dui arrests have fallen more than 6% since uber started operating. and you do have a control in this experiment, sam and kris, in markets where uber does not operate. there was no change. when you have a drink, it's about that instant decision. do i go to my car, do i press a button. lots of people are smartly pressing the button. >> that is good to hear. >> thank you very much. >>> let's check in with meteorologist christina loren for a look at our weather forecast. a little cooler today, is

. >> if you ask you about caterpillar you say what? >> we don't own caterpillar. we own deere.erpillar is a great company but not cheap enough yet for to us make a 3406move. >> how cheap is cheap for a name like caterpillar which now is sporting almost a 3% dividend yield? >> i'm not up to date on caterpillar. i am up to date on deere and we're waiting for it to fall into the high 70s. we own a little bit right now. caterpillar is an outstanding company. we're looking at it. i'm not at liberty to tell what you we're going to do. >> let's start with the three you brought. oracle. >> here is a company that has $3 a share in earnings power on its way to $3.50. everybody is upset with the cloud. 50% of their business is repetitive. they are really a sticky type company. their transformation to the cloud has been successful. they can go up to $3.50 to $4. here is a stock at $42. everybody wants to buy the linkedins and these other companies. we think oracle two to three years down the road is $60 stock. >> marsh & mclennan. >> what's more blurring than insurance. marsh & mclennan ha

caterpillar shares have been trading down. we have seen a slide in copper and gold prices as well. report says that they were affected by that. -- freeport says that they were affected by that as well. the increase in the dollar is also weighing on companies who get their revenue from abroad. proctor and gamble and dupont were a couple of companies that make comments. of course, microsoft coming out with disappointing earnings compared to what analysts are looking for. all of that combining to create this weighed on stocks. >> scarlet fu, three weeks into 2015 and we have seen in up and down in equity markets. >> a lot of that today was driven by weak economic data. durable goods orders came in surprisingly we, a fourth straight month of decline reflecting weakness in emerging markets like china but perhaps also the selloff in oil prices and what that means for energy company's willingness to spend. the question is if this weakness could spread to the u.s. and if it is a drag on growth and if it does anything with the federal reserve's decision to raise interest rates eventually. m

caterpillar. yeah i have never heard anybody campaign as aggressive as the ceo to get on the "mad money" wall. this man is on a mission to get there. i may have to grant him his wish. he stumbled pretty much everywhere overseas complaining about weak markets for equipment use to mine iron ore, copper you name it. the biggest one? how the oil and gas industry has led to decline. i heard him whine about the impact on the oil impact on his company's business than the oil service great. when you sell goods in another currency that is depreciated by the minute you're not going to get a good return here you know when you go to one of those weaker places overseas, i am saying you don't have to take their whining. let me give you my guideline on skipping the corking fee. i'm talking about passing on the wine bar of the would-be byob joints on how you can navigate in the market, by worrying about something that has been going on for months now, worries that have been discovered by the ceos and their analys

a company like caterpillar, that's a proxy for the american sector that's where the jobs are.do get worried when they report lower earnings. that reflects the stronger dollar because exports become more expensive in the global markets when the dollar goes up even though it makes it easier for us to go on vacation. harder to sell products. >> let's talk about apple. >> yes. >> wow. >> even tim cook the ceo of that company said wow. he said it's hard to comprehend just how they sold these iphones. 74.5 million iphones. unheard of. comes down to 34,000 every hour 9 every second. people are buying these things like crazy. high value high margin product. they made 18$18 million in a quarter. the story is different from the overall tone where the world -- investors were concerned. there were alarm bells ringing for them about how the u.s. -- whether the u.s. could be the sole strong economy to drive the world. the two stories. apple is probably up 7 or 8%. >> you have to say, steve who? tim cook has come into his own, right? >> really has. >> the thing about apple though is when you

caterpillar another contributor to the dow, 350-point decline.llar impacted by the stronger dollar, taking down its 2015 forecast significantly. so it -- these two are the biggest tee cliners among the -- decliners in the dow. among the s&p 500, came in with earnings that were ten cents below estimates. the company is cutting its capital expenditures and that's hitting joy global as you can see right there is down 5%. this is a provider of equipment for the mining sector. now on the nasdaq, we have weakness and microsoft and the other big name tech companies, of course, i.t. that's the weakest sector today. take a look at sanmeana on a percentage basis one of the biggest decliners on the nasdaq, down ability 10%. its earnings coming in line with estimates but the company forecast lower than expected results for the second quarter and it's being taken to the wood shids down 11%. another company that's jj snack foods, maker of slurpees, wouldn't want a slurpee after today's snow but take a look at this. investors obviously disappointed with the fir

caterpillar, the drag on the dow.ngraded to underweight from neutral and a tough day for momentum stocks. netflix, priceline, amazon tesla all in the red. lastly, we end with a transports. having the worst day in over a month and ch robinson worldwide leading the way lower, very tough day for the bulls on wall street. >> that's a point, morgan. thank you. meanwhile, as oil keeps falling economyists say it's a tax cut for americans and might seem odd a plan in washington to hike the gas tax is gaining steam. a 9% tax. joining us in a first on cnbc is gop senator bob corker of tennessee supporting a bill to raise the federal gas tax and lower other taxes at the same time. senator, happy new year. thank you for being here. and do you want this do you think this is going to happen raising the gas tax? >> kelly, thanks for having me. look. since you like to inform your audience, look, this is something that's a heavy lift. everyone should know that and proposed by chris murphy and myself over the last six months. but as yo

he was a service manager for three caterpillar stores in oregon. and i thought it might be a good time, i need some money coming in i wanted to put it into something -- >> caterpillar is a great company, fantastic manufacture. but they're tied to oil and mining. you'll have to suffer through a bad quarter. if you can hand that will and buy with a yield of 4% i bless it but not right here. ron in maine. >> caller: hey, jim. with oil getting killed i'm looking for a survivor in the oil patch for the next few years. i see that a hedge fund is accumulating oasis petroleum and i want to know if you think that will help my investment. >> all right. look, my charitable trust owns the best oil company there is right now, royal dutch. royal dutch sold a huge amount of assets when oil was much higher. it got a great balance sheet, a great dividend. you know what? we're getting killed on it. oasis, it ain't no oasis. the plunging commodity prices tells a bigger story. don't underestimate it. these changes are big and they ear just beginning. much more "mad" a

apple and caterpillar bringing down the dow.re down about 250 points but below the day was 17,288. we're about 140 points off that low. still, no consolation especially for microsoft investors. that stock is on pace for its worst day in a year and a half. you do have gold rallying though, up over $13 per ounce. let's get to it and get around the horn and hit everything thaw

the two losers in the dow 30 are jpmorgan and caterpillar.many of the banks came out with numbers, and jpmorgan led the way on this one, the legal fees. and that was problematic. that stock is down 12%. and caterpillar, they came out, numbers were atrocious and the forecast going forward, you mentioned commodities, liz, they thought about oil and how it's going affect the 2015 numbers. the theme is the strong u.s. dollar. liz: that is the big theme, got to watch. some companies are very adept at maneuvering through a strong dollar and hedging. others have no idea what to do. it shows in earnings. this season has not been kind to big banks. financial heavyweights from goldman sachs to bank of america disappointed investors in the fourth quarter. many are lagging. is it time -- forget shake shack! is it time to shake up the investment playbook and bet on the banks. pnc, state street, fifth third and investors bank. kevin cummings is the ceo of investors bank. great to have you here. >> good to be here, liz. liz: make your case, if you say i hav

one of the things that's dragging things down for the dow is caterpillar shares, one of the laggards on the dow today the stock moving lower after jpmorgan analysts downgraded the stock from an underweight to neutral weight on its direct gas business and the mining business. u.s. construction and emerging markets play into that thesis as well, all under pressure as a result of the lower oil prices. those shares you can see down by 5% in trading today. not just the energy side but agains the ripple effect coming out of the industrial sector as well. back to you. >> thanks so much. again, perspective, went through this last year, probably felt many of the same ways we're feeling now as we're watching the major averages decline in the manner they are to start off this year. not changing anybody's overall dynamic on where we think the market could end up several months from now or is this different? >> i think there's salient points where maybe we got carried away with this idea that u.s. is the best house in the bad neighborhood just buy u.s. stocks you'll be fine. then you start to thi

caterpillar got slammed today. >> they are. i think consumers were feeling confident because they were sniffing too many gasoline fumes, when the prices feel good, they get better. liz: phil, sorry to interrupt you. we have yahoo! numbers. definitely something we need to hear about. cheryl casone. >> we're going through them right now, liz. here's what we got. yahoo! coming in. 29 cents, that was an adjusted number, company coming in a 30 cents. that was beat estimates on revenue as well. 1.18 billion was estimate. they came in 1.25 billion. a few things we're looking for, let me bring this to you. plans for a tax-free spin-off, this is big, alibaba group. this is big. yahoo! announcing plan for tax-free spin-off of remaining stake in alibaba group. a lot of shareholders wanted to see marissa mayer to do this. they are returning total of $50 billion after the spin-off of alibaba to shareholders to date. this is very, very good news if you own shares of yahoo! right now. that is pushing up the stock, that plus a pete. the stock

except caterpillar has been completely out of touch.they can't do anything about their end markets, but they can be in touch. you can't miss virtually every quarter for years. >> i guess i'm a frustrated short seller on cat. remember when i sold it. >> absolutely. >> that's the market. >> that's the market held it up because it is a market stock. the only reason. weren't for the market it would be at 40. >> to microsoft, before we move on, not so much nadella on the hot seat by virtue of anything he's done. it's the fact that maybe the honeymoon period is over from when he came in to where he got the stock now, and is he the right -- does he have the right strategy to move microsoft where the stock can go in the future. none of you guys own the stock, right? >> no. i've been in and out of the stock. the call options they're going to go out worthless now because the stock has dropped on the earnings drop, 10% on the stock those will go out. that's why i think sometimes you own the stock, start to roll into some of these call spreads to r

look at caterpillar. at its lowest level since january 2014. you. >> of course we will continue to follow what is going on on wall street this monday. it has been a whole market for tech stocks the past six years. the index has been up nearly to 70% since 2009. for those who remember the 2000 crash, they may be tempted to draw parallels to the.com bubble. "street smart" anchored trish regan joins me. you have a column in "usa today" on this very subject. >> yes, i do. it is hard to say how this will play out, but some may will see this -- but some may see this as an opportunity. remember back in 2000. i can remember. no matter where you wanted someone wanted to know what was the next big thing? and one of those was something called cmgi. it was the stock to have. i do not think anybody knew what the heck it actually did. all they knew was it had something to do with the internet. people fundamentally want to understand how a business is going to change. how is it better at a locating --better allocating resources. that is the big difference. >>

. >> interesting with bar lower, company like caterpillar 52-week low, cat will exceed expectations, and about the industrial, utx is a good one. charles: why in your mine, kurt, have they come down? are we in a goldilocks period? 5% gdp growth, 800,000 jobs in the fourth quarter, strong dollar, why would corporate earnings estimate come down in the face of that goldilocks thing. >> they needed to. the volatile in market will pick up, to me this is going to look like 2011, we'll probably end un, up for the year but it will be a wild ride, i think we'll get a bigger correction. i said i thought we'll have a 8 or 10% correction in january. charles: if we het bottom today? >> we have to wash out, we'll have a 20% correction i am sure probably first half of the year, rotating out of retail stocks. people will sell other positions go in chasing energy. charles: i like what you said about the -- expectations, i think that intel was a good example, initial reaction was sell it, as day moved on, people said, they are doing good. >> and intel's message was that pc sales are down. that is the

interesting downgrade on caterpillar.tarted the years last year at 90, went to 110 and then circle back to 90. here it is underneath where it was. mostly because the piece that i read the downgrade is literally about how related it is to oil and gas. and that's not wrong. it does have huge exposure to it that sector. the oil and gas that we were looking at think about the gigantic tar sands projects. they just use so much heavy equipment. >> biggest you've ever seen when you go up and take a look. >> did you go? >> i've seen the pictures. >> i'm really torn as an environmentalist and a guy who thinks i'm an associate with neal young. i wish they didn't do that. but it's kind of been done. >> it is. that's why people are opposed to the keystone pipeline. >> times yousometimes you just have to say they won. do you want to send to china where they won't clean it or do you want to send to the refineries where the honeywell after the great russell buy and i say fine. >> which one are you saying fine to? >> i'm saying it's alre

. >> is that a reason why companies like caterpillar landry's yam ha fund the project. interested? >> we are starting to see fortune 500 starting to understand that the great countries that built the planet will need to create a future for the planet. when you see someone like chairman of caterpillar adding sustainability as a core value we need a robust future for the planet. shell is now dipping their toe in the water to help us maximize our science. you know the millennial, they want to work with organizations that are doing good while they do well. we are a perfect vehicle for that. >> talk to me about cool technology that you use? >> some of the latest tracking technology in the world that we mount on the fins of the sharks so every time they stick their fin out of the water it beams their location into our office which we share on the tracker with the world. so the whole world is involved in probably the most charismatic research project in recent times in the ocean in real time with the phds. while the students follow the sharks and pick their favorite sharks we

by the unlikely from microsoft or caterpillar or dupont or united technologies.problem is the

. >> caterpillar getting downgraded yesterday. >> not enough to stop -- >> you hate to admit you are wrong. maybe we have had it wrong. maybe instead of asking why is oil at $50 maybe we should have been asking why was oil at $100? >> why above 90 for so long? >> maybe the high price was the anomaly. maybe we should have been asking why did it rise so much? maybe i'm wrong. >> we were tight for many years there and we couldn't afford another outage. while that was happening the fracers were working away like busy bees. when it hit the tipping point earlier this year u.s. gulf coast got flooded and oil production over 9 million barrels and iraq came online and the russia production came back. it's a wave of oil. it's flooded the market and it is a commodity. there is no intrinsic value. >> i hope you are wrong about the low 40s. they are going to get pinched. >> i agree with you. >> every boom has a bust. >> so now you know the setup. stocks looking like the new york knicks. all potential, no performance. let's speak with one guy smily. david tice, we also have head of global strategy