liz: thank you, david lutz, lee munson. todd horowitz we come back with you for s&p futures close. speaking of close, jcpenney breaking news, is going to be closing a bunch of stores, david. here are the flashes on the wires. jcpenney announces that it as a strategic initiative to advance the turnaround it will close 33 unperforming stores, underperforming stores. they expect that this will save approximately $65 million. they're going to offer all kind of buyouts for employees. david: also taking a pretax charge of $26 million in the fourth quarter. all this news not really affecting the stock after-hours as you can see. that much at all, if anything it is ticking higher. that may change. again, an after-hours pretax charge being announced, not a good sign when they announce it after-hours. we will see what happens to the stock. we'll follow it closely. >>> meanwhile you may wonder about the connection between a netflix stock dive this morning and that court decision to knock down the obama administration's desire to regulate the internet. we're going to spell it all out for you wi

nonetheless, we bring in david lutz to talk about what's going on. as goes january, so goes the year. hope that's not the case. >> right now, obviously there's a lot of stress going on in the marketplace but i can tell you here on the institutional trading desk, there is not a ton of big sell tickets coming through, not a lot of big sellers coming from the mutual fund complexes. a lot of the activity we have got going on is protection buying. there is definitely some fear out there, whether it is from the china credit issues that have been well talked about here on your network, or whether it's what's been going on in the emerging markets with argentina having to devalue. the vix right now as it stands was up about 23% when i sat down in this chair. if it closes here, mandy, that's the biggest surge we have seen since april 16th of last year. that was the bottom and we ended up running about 9% in the next four weeks to the upside because all that stress bled out into the marketplace. >> got to leave it there. thank you very much for your snap total

let's bring in jpmorgan's tom lee and david lutz.e expended all of my dickens quote knowledge. i googled that one, i will be perfectly honest. do you expect to see a solid 2014 or three down days looking likely right now? is this something maybe wicked which comes our way? >> no, i honestly think we are going to continue to see a solid 2014. let's look at the end of 2013. we had a tremendous amount of momentum coming into the end of 2013. the s&p saw well over 400 stocks in the green for the year. that's fantastic breadth coming into 2014. over the last six times that that's happened since 1980, the following year, so 2014, every year has been positive. all six years, for an average return of about 14.5%. that would make tom lee, who is high on the street right now as far as his s&p forecast, maybe just a little bit too low. there's a lot of wind for the bulls' back right now. >> i believe that tom, you said the s&p has a one in three chance of rising 30% this year. 30%, another 30% on top of last year's? >> that's right. you know, i

david lutz is the managing director at stephen nicholas. what do you make of this? >> a lot of it just had to do with positioning. look at what has been going on in the bond market. short and does in the bond market were up five year highs. we are probably up arguing about two and a half in the tenure. at the end of 2013, bowlers sentiment was near 20 year highs. what we are saying right now is just a rotation back. adam: this is normal to you. you are not fearful of a crash. i have to tell you, here on the institutional trading desk, we have not had a lot of big sell orders. if anything, these guys have been buying value names as things have come back down to a more reasonably priced level. they just have the fastest pickup in inflation in five years. adam: sandro was just here. i want to know whether or not you think that these massive outflows, if they are justified. >> i definitely would think so. the first is obviously the fed tapering. what we will start seeing is these of merging market investments over the last couple of years when rates were held artificial

joining us with more of our special coverage of the market's reaction to what's happening, david lutznd jeffrey saut. it's great to see you both. dave, your thoughts on the market here? >> kelly, thanks. we have gone from over bought conditions to getting close to oversold conditions. right now the number of stocks in the s&p that are above the 50-day moving average, it's really near lows, and a lot of this has revolved around tapering. earnings are coming in significantly better than expected. we've had about 169 reports. 120 beats so far, kelly. but it's the emerging markets that are really stressing things out. i'll tell you, one big catalyst is going to be the china pmi number tonight. that's what really set things off last week when their flash number hit and started hitting a lot of commodity linked currencies. >> dave, it was the hsbc number this week. this one is the official one. do you think people will read as much into it knowing it is china's official one and perhaps maybe less reflective of what's actually going on? >> i think it just depends what that number ends up bei

david bradford. >> wow. great. >>> eight clever tricks to get you and your home organized for the new year. got to keep the theme going. >>> and next kellan lutzhese messages. hey kevin...still eating chalk for heartburn? yeah... try new alka seltzer fruit chews. they work fast on heartburn and taste awesome. these are good. told ya! i'm feeling better already. [ male announcer ] new alka seltzer fruits chews. enjoy the relief! >> i don't want to offend him. it says actor and all around hollywood hunk. kellen lutz. >> he wants to be known for his work. >> now he's into a new role he gets to show off the a famous abs and arms again. >> he plays the demigod hercules. you may not want to mess around with the son. >> may want to. >> how are you? >> doing fabulous. >> last time you were here it was a while back and it was for the one of the twilight movies. you've moved on. >> yes, i have. >> how's the transition been? >> amazing. life's a high right now. i've been traveling quite a bit. i brought the hercules storm for you guys. >> thank you for that. everybody's grateful. >> stay warm. >> we heard, and you tell us, you got this role and had nine