a little dom not chu. >> stay safe, dom. >>> let's check on the top headlines including cool news abouter. phillip mena has that. >>> cities across the u.s. and canada were on alert after a wave of bomb threats the fbi is now investigating what law enforcement sources tell cnbc appears to be a widespread hoax. schools, businesses and hospitals in 21 states and d.c. were evacuated after threats were received by e-mail demanding $21,000 in bitcoin to keep explosives from detonating. no bombs were found. >>> the annual geminid meteor shower is back nasa says you could see about one shooting star per minute meteor showers are a name for the constellations they emanate from in this case the constellation gemini. >>> snow was not causing a backup on a new jersey highway thursday morning, it was cold hard cash. bills blowing around during rush hour some drivers got out of their cars to grab those lioose bills >> tens of thousands of dollars and an accident costs for 60 bucks on the road. >> the markets flat would seem good right now dow futures down nearly 300 points. it's early we have a long

bob pisani, dom chu, seema mody are watching things for today's trade.osh lipton is about to speak with oracle ceo mark hurd in a few moments, following the company's earnings surge >>> first up, we start with the market rally i know you have been net constructive here. did the weakness monday and rally today, is it giving you any kind of all clear? >> i think that would come sometime in early 2019 the reason is we need resolution on both the rates front and trade front, and maybe the fed wants to soothe things down, but on the trade front there's no clarity. until we have that, the up trend in the market cannot be very sustainable. >> has the market graduated from trade political concerns to overall slowdown concerns? or would clarity on the trade front be enough? >> i think that's absolutely true i think the market sentiment today is meaningfully different than september and october, and the expectation that we are facing recession, which is being built in in our view is just not correct. i think in the new year as we get closer to a more robust econom

dom chu in the newsroom. few high dividend names that could help you pump up your name carter breaks it all down. >> hey, thanks look at some sort of really long-term charts and fee cuss on two names, one quite good, one bad but staying away from utilities as picks because it's obvious, yes i like them both so this is since the 1990 recession. 28-year chart. we all know the importance of compounding. you've got the s&p here. and you've got the total return with dividends reinvested, basically a double now what if i add the following, now take a look? you've got here the s&p 500 dividend aristocrats index well established, old line companies that have paid quarterly dividends and make every attempt to raise those dividends. this really speaks to the power of total return and yield. with that, let's look at a few things that are sort of obvious here top chart is the utilities over the past two years and the bottom chart is relative performance. obviously in a bullish phase a defensive heir will do this. what's

dom chu is back in the newsroom with more. >> gold is glitering again, melissa.is a little bit of an overstatement. while we have seen a pretty sharp pullback in major stock indices, gold prices posted modest gains as have gold mining stocks both the underlining commodity and the equity and reclaim the gold line. options are the instrument of choice for some in the gold trade. options trading spiked when it comes to key exchange traded funds. same goes for the contracts tied to the gold trust, for instance gld, more than doubled in terms of last week trading volume. that ticker gdx. even cnbc's jim cramer getting in on the trade telling investors to seek safety in the precious metal on "mad money" last night. >> what happened to there is always a bull market right now it's in gold that's perfect i always bring on the gold pch the mine he were 3.2% yield. of buy the gld that mirrors the price of gold. >> while the trading action has been bullish for gold and miners they are off the highs from earlier gold prices 8% on highs and gold miners the etf around 17% below

dom chu is in the newsroom with more. >> gold is fwlit -- glittering glenn, melissa we have seen a pullbackld prices, they have posted modest gains on the week as have goldmining stocks. both the underlying commodity and effort leveraged to them are trying to move above the 200 day earning average. options are the instrument of choice for some of the traffickers in this gold trade options trading has spiked when it comes to key exchange traded funds and tied to the spider gold trust, that ticker gld, more than doubled in terms of last week's trading volume same for the contracts tied to the gold miners etf, that ticker gdx. even skbrjim cramer, getting in the trade, telling investors to seek safety on the metal on "mad money" last night. >> what happened there is a bull market somewhere right now it is in gold. well that is perfect, isn't it that is why i like the rand gold, a nice production growth or the price of gold -- >> and while the trading action has been bullish for gold and miners, about 8% off the highs and gold miners, etf around 17% below so with questions about economic growth

dom chu is in the newsroom with more. >> well, there are two fairly distinct chapters in the consumer story through the course of 2018, melissa. in a little over the first half of this year, the strength of the consumer and rising consumer sentiment has really played out in many parts of that retail landscape. you have to look at the year to date chart of the spdr retail etf and equally waited fund that de-emphasizes the amazon.com companies. through the latter part of the summer it was a nice, gradual rise in the last three months a topping out that got embroiled in the market turmoil in october. a notable lagging part of the retail has been on the luxury side of things tiffany is a recent example after shares tanked on the heels of the earnings report earlier this week. the shares topped out late summer just like michael kors did. check out coach and kate spade, tapestry, those shares tapped out as well. the story has been mixed with athletic apparel where under armour is trending higher, albeit off the press levels. nike and lululemon have seen the optimism fade as markets have pul

dom chu has a look at some of the big movers dom? >> i've been listening to this discussion one of the other intended or unintended consequences with this huawei news, to joe's point, how many people are out there thinking they want to buy a zte or huawei phone at this point? this could put a damp on demand for huawei, maybe that's the reason for going after huawei in this particular way, because maybe there could be security risks, maybe they're not big players on the stable front that many think they are. with all of that in mind, we talk about these foreign companies. let's bring it back down to the u.s. markets and u.s. companies. many of the stocks and companies tied more closely to china, whether that's fair or unfair on a relative basis, companies with a good amount of exposure to china are taking it on the chin. boeing in the premarket trade, off by 3.10% caterpillar, another stock with exposure to china from a revenue basis, off by 3.33%. apple, a lot of sales in the greater china region, they're off by 2.5% as well. we're w

dom chu has a closer look at potential up side outside of amazon for a lesson in sector n nomics >> iteven with the pull back in the market at a premium to the overall market valuation, based on next year's earnings estimates, something they call forward price to earnings if you look at the yellow orangish line, forward priced earnings of discretionary is 18 times versus red line, s&p 500, which is 14 times. then equal weighted version of retail a spider xrt, equal waited eft that doesn't place as much emphasis on amazon, trades at a discount, showing you amazon effect for valuations. when it comes to where the opportunities could be, it might be in some of the most beaten down names check out the average analyst estimates for target prices and what the potential up side could be best buy, possibly 39% gain if analysts are right tiffa tiffany and company, 40% t tapestry, 57%, michael kors, 71. one thing they have in common with the exception of amazon is that every one of these names is now negative year to date and hit a 52 week low or worse in the last couple of weeks, so as we watch

> meantime, ceo outlook for business conditions hitting a two year low, according to a new survey dom chu results and what's worrying industry leaders. >> this is like you said from chief executive group. they put out a monthly survey polling hundreds of ceos across various industries and size companies and their numbers for the month of december are rather telling. a two year low in confidence show you how it looks graphically speaking we have seen a steady decline, a trend lower in ceo confidence since the beginning of this year in fact, from the peak back in january, we're off by about 16% in terms of overall ceo sentiment in conditions for the next 12 months this level in december was the lowest level since 2016. big concerns are the cooling economy. rising interest rates, in the fed category and trade and tariffs. china becomes a big part of that discussion, and current levels of corporate debt, echoing concerns that former federal reserve chair janet yellen had about corporate debt situation and the amount of it on corporate balance sheets take a look at this. if we temper expectati

joing me now, dom chu. you know there is barely any volume next week. how do we absorb all of this? head into january where things aren't going to be any smoother. >> an interesting point to that you're right. typically we do see a falloff participation because of holidays. we'll get that for a technical region. they have to close out and reinitiate in the futures and omgss market. with that being said you might see a flurry of activity on the sol y volume side of things. we have a week we are already down 5%. it is down just this week alone. this is the last full day of trading they have. monday on christmas eve is a half day of trading for u.s. markets. that's lot of jockeying. we have seen a more seasonably strong move in markets to the upside because of this time of year. we are not seeing that this time around. some money managers are going to be watching for whether or not there are any issues in the coming weeks. one thing i will point out, we did get reads on u.s. gross domestic product where we did see 3.4% growth in the third dwarter. -- quarter. so we'll get more reads. >

dom chu has more. >> just absolutely brutal day for oil prices, kelly. we'll start with those u.s. crude prices they are now down by -- five, ten minutes ago it was 5%, 6%. now we're down 7.5%. $46.29 for the january contract. brent prices down 5% for the february contracts a barrel. for west texas intermediate we are talking about over 15-month lows at this stage supply concerns still very much in focus as both the u.s. and russia are continuing to pump out oil at record high levels. this of course all comes ahead of the start of opec and partner country production cuts slated for the new year you add concerns over slowing global demand and you get the data that we are seeing here, a really red day a couple of things to note, we are going to get private sector oil inventory data later on from the american petroleum institute. tomorrow is the last day of trading for wti crude january contracts, something to watch. we also get of course, melissa, the official government data on inventories as well tomorrow morning. back over to you. >>> as dom as mentioned, oil prices falling sharpl

dom chu is at hq to track how energy fare this had year.way bet for so many, dom. >> you're right. you were looking at your charts of the year. the pain trading in energy have been very limited. wti crude has been fallen. about 25%. that's a huge deal but even just from the highs that we saw in october here, we are now down around 40% on wti crude so that pain train in oil very much one of those themes in 2018. we'll see if it continues into 2019. one other place to look at is the relative performance of energy stocks to the overall s&p 500. look at that performance gap that we can see between the s&p 500 energy sector and the overall s&p 500 about 14%. that percentage point in gap there. that's also something to watch as well and the other one that we'll watch as well here for this particular chart is the oil majors. exxon and chevron because on a relative basis they held up okay compared to the rest of the energy complex. as we finish off exxonmobil trading about 24% below its recent 52 week high and chevron just about 19%. all hovering a

they have nowhere to put it, they say dom chu, get the oil.you have to pay to get it somewhere just -- it's like a pool table in your basement you want to get rid of it. you have to pay somebody to get it that's kind of what's happening in canada. >> let's get this straight, you're telling me if you have a tanker truck, you can go up to alberta, canada, fill up your truck for free, and bring it wherever you want. the only cost you incur are the transportation costs that you bear >> effectively i'm probably oversimplifying for tv basically you're right here's the problem, if you have a tanker truck, everything is full pipelines are backed up. tanker trucks, railcars, everything is full that's why they have this issue and that's why the canadian government came out and said 9 39% of production, cut it off naturally or shut off the pipes. that 300,000 barrels a day may factor into the opec decision here because it gives them a little more cover. don't blame us look at what canada is doing why doesn't president trump tweet at the canadians as well

i want to bring in dom chu and . we might neat a correction. sometimes it's a buying opportunity. i don't see a buying opportunity. >> if you like where the markets were a week and a half ago, you'll love where they are now. we're cheaper than we were back then. the issue comes down to whether or not the same things driving the market downside since the beginning of october are still in play. you mentioned the arrest in canada at the u.s.' behest. that's what will drive more tension in the marketplace. pundits will say this, this does not signal some kind of trade truce happening. add on to that lower oil prices which is not as good for the american worker who's tied to the oil and gas industry. we're the biggest producer of oil in the world now. none of those things really resolved. it's not as if many feel it will be a straight path to the downside but they feel there are reasons to be a little more risk averse. it's not to say there aren't opportunities for those who have the tolerance to take back on risk. >> josh, you call this the year no one made money. walk me through this

let's bring in dom chu. who had a wild week last week. what are we doing today? been -- forget about wild week last week, it felt like a wild market ever since the record highs we saw just back in the early part of october, stephanie. things in the stock market was doing pretty well. all the market activity was supporting it. there seems to have been a shift from an accentuate the positive-type sentiment on wall street to accentuate the negative environment. albeit from record high levels. this is a seasonably strong time for the overall stock market. there's a lot of concern out there. because of things like trade policy, tariffs, slowing economic growth or the fear there of. brexit concerns. all of that is now coming together in a bit of a mini storm. now panicked but certainly something that many traders were not expecting to see. especially in november and december when markets typically have been pretty decent with holiday cheer, stephanie. >> stay there. i want to bring in our next guest, felix salmon. i want to talk about the metric. something in common be

> apple receiving another downgrade this morning from hsbc, taking the stock down to holdfrom buy dom chuas more >> that's right. we're talking about apple, it is one of the most influential stocks in the marketplace. the hsbc downgrade weighing down the shares one of the price targets is that 200 level. that's where hsbc is seeing that they say it is too levered to the iphone and maybe phone sales are slowing. as we talk about apple, we have been talking about market values at apple, amazon and microsoft are showing the past few days because each of these stocks is trying to vie to be the biggest publicly traded in the world microsoft, biggest company out there, $858 billion, 857 at apple. amazon, 853. watching that play up closely as well also, with regard to the yield curve and flattening, the difference on two year and ten year bonds, you can see here, lowest level since back to 2007. we're just at 12 or 13 basis points as yield curves play out in the marketplace, the place we see it play out very well is in regional banking stocks. those stocks have been holding up relatively well, g

morning with investors eyeing some of the mega cap tech names to power stocks higher what month is it dom chuback at hq with a look at why the new boss of the next rally will likely be the same as the old boss dom. >> so traders are watching for a number of key stocks to make moves higher to be the leadership and assume that position for the next leg of the market higher if one were to come if you take a look at stocks like amazon or apple or microsoft, there's a reason why many traders are focused so intently on those. that's because they are among the leaders of that run to record highs will they be the leadership for the next leg if you look at the s&p 500, a handful of very large cap names have been powering the gains between the year to date period through october 3rd, near those record highs, microsoft shares have gained 35%, a gigantic company moving not far to the upside apple up 37%, nvidia, amazon an netflix. as we look at the old bosses to become the new bosses, howard silverblack points out that the year-to-date returns of the s&p 500 through the month of november, 42% of those ga

let's get to dom chu for a market flash on biotechs >> getting hit hard. the spyder etf now down more than 4.5%. that fund is down more than 30% from its 52-week high that hit back in mid-may. this etf, the xbi, has now fallen nearly 20% since the start of 2018, which makes it on pace for its worst year since the fund's inception in 2006 worth noting biotechs in the broader health care space under pressure for the last week after the texas judge ruled that the affordable care act is unconstitutional the health care sector dipped briefly into a pullback earlier this week. >> interesting you brought up the xbi. it is the big cap biotechs that are doing much better than the smaller ones the ibb is doing better. >> and again, like you said, this is the equal weighted one kind of a broader look >> all right dom, thanks. >>> when the father of index funds says there's too much money in index funds, you should pay attention. he's not the only one sounding the alarm on passive investing are th rht 'ldetehat next closing bell. (sighs) i hate missing out missing out

joining me now, cnbc reporter dom chu and ron insana. to say the media harps on things, it's only negative. i'll sh i'll share something put out by jpmorgan. they write it doesn't seem like anything was agreed to at the dinner. and white house officials are contorting themselves into pretzels to reconcile trump's tweets which seem, if not completely fabricated, then grossly exaggerated with reality. this is from jpmorgan. >> it speaks to many of the things it we've been speaking about and elsewhere around the news media. this idea we're still looking for clarity exactly and what happened at the g-20 and what exactly will happen going forward. the issue now is whether the white house, the president of the united states and his first trade negotiators and advisers can get on the same page with regard to what they're telling everybody out there. it's also telling wall street and everybody else that china has to answer and xi jinping. right now, we thought from larry kudlow, the senior economic adviser for donald trump, that the 90 day windo

. >> i want to bring in cnbc market reporter dom chu.o with me, the chief economic correspondent for axios. and corey choppy, for the international institute for strategic studies. this trade war. jpmorgan put it out. what china has offered is the same thing they basically offered months ago and the united states said no deal, this isn't good enough. for me, it is unclear what we are so excited about today. if all they said is let's wait 90 days and now we're excited about something we turned down months ago? i don't get it. why does the market love it so much? >> the market loves it but the market loves it to the tune of 400 points on the dow at least for the time being which is around 1.5% overall. this is not a stock market that has surged 1,015 points because of a done deal with regard to trade tensions. ma enoughen mentioned kicking the can down the road during that interview on cnbc earlier this morning. that's the phrase i've heard so much this morning. the idea this is a pause. even with this pause there are not a lot of details

. >> we're going to dom chu with i guess breaking news. >> we got a market flash johnson and johnson not helping the dow cause today. off by over a percent but off the worst levels of the day. this on the heels of multiple report that a judge in missouri has rejected johnson and johnson's appeal of that massive $4.7 billion multiple class action suit over its baby powder and talc products. that did send shares lower we are bouncing just off there at this point. that's the reason why johnson & johnson shares are moving lower when the rest of the market seemingly is moving higher back over to you. >> dom, thank you. dom chu alt headquarters while the broader markets are higher ahead of the fed the dow transports are lower a huge reason why it's lowering its guidance the company blaming nearly everything under the sun, saying political decisions around the world are hurting the global economy we are delivering a huge fed day edition of "power lunch. stay with us this isn't just any moving day. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help

bob pisani, seema mode and dom chu at headquarters looking at moves in treasuries and financials bob, let's start with you and what's happening with stocks. >> better than 2% move i think it's important just to review what chairman powell said this was a dovish statement by any stretch of the imagination he lowered the growth and inflation expectations, the 2019 hikes came down from three to two. the neutral rate came from 2.8% from 3%. put up that full screen, so those are dovish statements, and then i think he went further in the press conference he came out and said there is significant uncertainty about the path of any further rate increase that says we're not sure what's going to happen, and then he said our forecast is going to change if the data changes that's as data dependant as it gets there are concerns about quantitative tightening and i think a lot of problems that we have now are technical problems. you see the dow jones industrial average, this would be a new low for the year if we close 23,533. that was the old closing low that was back in march at the same time, let's

. >> you got, guys >> dom chu are the transports signaling more trouble for the broader market if you still believe in dow theory i don't know, do you, tim? >> injury it's a useful theory to apply to markets especially considering growth and the transports are the place we often look to rails to get a feel for what's going on below the trenches in the case of fedex and ups, the amazon thing is overdone if you consider the akregs of at any time to fedex earnings it's not even priced in it's 16 times. this is a $300 stock in this environment probably doesn't change at 16 times even at 14 times it's worth owning. >> i think fedex trades around 11 times next year's number. it topped on the at this time basically last year at 275 they report on december 18th i don't know if the -- if there are any tailwinds from the lower energy price but it doesn't hurt i think the setup into earnings on the 18th sets up well on the longside. >> fedex ups take them out of the picture they may have some idiosyncratic things with amazon air. the rails don't look good or trade well rail carloading up through

and the floor of the new york stock exchange meantime let's go to futures now and dom chu. >>> thank that this is "futures now." the dollar under pressure ahead of the big fed decision. despite that move lower the dollar still trading near its highs of the year. how do you think the fed talk impacts the rally? >> it's in this wedge range that's going on with the chart if you look at the technicals that wedge is tightening up on the high side. 96 on the low side when we get a fed decision this afternoon that will start to break out from the wedge formation and move one way or the other. they'll take steps going forward if they're going to ease off the pedal on rate hikes or one or two more in 2019 f. we have a couple more rate hikes the dollar probably goes to 100. or we fall down to 92 or 93. that's when we get the big exporters, the ones that rely on the dow jones and the s&p 500, they will benefit. >> anthony, brian just mentioned some levels. what levels are you watching >> i have the support at 95.92. i think the fed will raise rates. when they meet later on this afternoon, i thi

let's bring in cnbc markets reporter dom chu and analyst and commentator ron insana. we expect to see today, given what we saw unfold yesterday with some of the volatility in europe? it wasn't as bad as we thought it could have been yesterday. >> yes, and that's the key. the expectations are all over the board right now, ammyman wi record to the market. the recent trend has been lower. record highs in early october. it has been down ever since. the confluence of different factors that man fested in a move that traders call accentuate the positive, turns into an accentuate the negative type of environment. there are economic head wind at play globally. concerns about things like brexit between the uk and europe. there are things on our home shores with regard to whether or not we see possible economic growth slowing here as well. and of course the ultimate impact of trade and tariff discussions on not just our manufacturers but our trade relationships all over the world. all of that stuff got a little bit of a pop earlier this morning on some reports that perhaps there

i want to bring in dom chu and david gura.mer colleagues of mine, all of us back together again. walk us through this. what is the mood on the floor? when traders see this jobs report, it sort of says yes, it's below expectations. slow and steady is the economy. where are we this morning? >> as we talk about the developments on the trade front, they stay are front and center. this be zwros report was seen all week as a real catalyst for the markets. a lot of what we saw in the sell-off. it was positioning ahead of what could have been a huge move in the markets ahead of this particular data. the reason why it was important is because the fed has been front and center. and what this jobs report did, it is still positive. let's put that in perspective. it is not up as much as some economists thought. it puts this idea into play the economy is still growing. although not as a very, very fast rate. what that does do is allow the fed to take a bit of a moment, a bit of a breath if you will, and maybe raise interest rates just one o

people in the area what they think about this and expectations and it's down across the board yet dom chuhis glasses >> long discussion about the contact lens issue >> we were worried he just seemed much smarter. you did that you worked the glasses for the cerebral look. >> no, no. these are $19 glasses. if i wanted to look good, i would wear something more expensive -- >> but you look good with them. >> do i? >> it's a low bar. >> by the way our all-america survey had the lowest plunge in the 12-year history of it. navigating between a prior forecast to hike amid strong growth numbers, a market and a president screaming no more and a weakening economic outlook fed officials' commentary indicates they're having a significant rethink of how much higher they need to move interest rates okay let's look at their 2019 forecast this is the dot plot put in a hopefully understandable way this is how many fed officials are at how many quarter point hikes on your left assuming december okay >> okay. >> work with me on this, becky >> two are at two and a half >> and the median looking for three to s

. >>> speaking of the deuce, dom chu is at the -- i don't know why. i don't. good morning >> and you made it stranger and more awkward well done. >> can i just say, folks, that i have no idea what any of you guys are talking about right now with regards of what happened at -- yeah i'm just saying. >> okay. >> because my wife is probably watching right now with my daughter who probably doesn't understand anything. >> she probably isn't watching right now. but go ahead >> anyway, let's take that turn from joe and talk about some of these market movers this morning. because you heard from becky and joe about some of them let's look at some of the other ones we're going to keep a close eye on industrials tied to china. caterpillar and boeing in particular you can see a bit of a discrepancy in those two both stocks moving higher on the heels of those headlines about maybe some developments coming out in terms of tariffs and autos and whatwhatnot. that's playing out very much more so in the automobile related stocks, in the premarket trade. they are catching a bit of

. >> i mentioned that the nasdaq has entered a bear market officially dom chu has a flash on tech getting ripped apart pretty well >> mike was talking about the idea of the corrective phase of 15%. the s&p 500 tech sector has dipped into a bear market. which some traders call a 20% drop from their recent highs the record highs we saw on october 3rd. 13 stocks within the sector are trading 20% plus below their recent highs as well salesforce, symantec, adobe, amd, all down side leaders certainly technology the biggest sector out there ones to watch. >>dom, thank you >> so rich saperstein, the last time were you with us, you were still optimistic brenda is trying to remain optimistic, looking for stocks that have gotten pummeled and looking for opportunity. have you changed your point of view >> so in the last 38 years the average correction has been about 14% a year and in 29 of those years, the market finished higher so when we look at our equity exposure, we have three components to client portfolios, equities, bonds and nonmarket-related securities the equity component right now represe

dom chu. >>> joining us right now to talk more about the markets is james lou.t clearnomics. also eric knudsson eric, i want to start with you and get your feeling about what's happening with this market because it's been hit after hit after hit. you think we are getting to the end of that? or would you just be sitting on the sidelines at this point? >> so we are moving towards being overweight global equities we want to do that earlier in the new year we're looking selectively at this point, but there's so much technically driven and sentiment driven selling going on right now and lack of liquidity that we want to be cautious between now and the end of the year. >> when you say global, does that include -- -- everything else was down. guess what you know, some of the other areas overseas that actually kind of caught up to the u.s. on the debt side. we're now including the u.s. as being part of the opportunity set because we think markets have gone too far in rerating global growth and reassessing global liquidity >> so you are right now neutral? on your way to

time for an update on what's been moving in the premarket dom chu joins us with more of that. >> good, becky it looks like bank stocks will catch a bit of this relief rally. they've been beaten up so much let's look at two in particular. they are the subject of analyst downgrades bank of america downgraded to market perform same thing with morgan stanley both of those shares up now albeit in a down take for the financials generally speaking. but still up a percent here generally for these two big stocks despite a market perform rating from an outperform to put that in context, all of these big banks have been just real laggards in the overall market move to the downside. you can see here jpmorgan chase, citigro citigroup. jpmorgan the better of the bunch. only down 5% year to date. goldman sachs losing a third of its value. all requewith the exception of jpmorgan, they have a trade discount just to take a look at the more agate picture in general, three big etfs the spdr s&p bank etf. tracks larger banks. not like the financial does. then the regional bank etfs. you can see here the d

. >> dom chu, thank you very much. >>> jon fortt is in san francisco today with a look at what's coming good morning, jon. >> the continuing evolution of the cloud, maybe some m & a and consolidation coming up on "squawk alley. (baby crying) ♪ ♪hold on, i'm comin' ♪hold on, i'm comin' ♪hold on don't you worry,♪ ♪i'm comin' ♪here we come, hold on♪ ♪we're about to save you i'm comin', yeah♪ ♪hold on don't you worry,♪ ♪i'm comin' >>> welcome back german automakers are meeting at the white house. elon mu ee has more. >> they are meeting with the trump administration, including wilbur ross. the goal for the administration is convince executives to expand the manufacturing capacity in the u.s., especially for electric vehicles. the goal of the german execs is avoid new auto tariffs we have seen daimler's outgoing ceo arrive at the white house, outside the old executive office building we caught up with him as he arrived. >> we don't know, we're optimistic >> positive way forward. what would be considered a positive way forward >> that's what we try to understand inside. >> we are expecting bm

. >>> let's get over the dom chu with a market flash. >> we're watching shares of canadian alternativetal group which is down by 16% or so right now on the heels of the company repaying back or buying back a good chunk of its stake from warren buffett's berkshire hathaway group which last year offered it a rescue package, bought equity at $9.55 canadian. you can see why the shares are right now but an interesting development, warren buffett not leaving on sour terms. he said it was great investment but shares taking a big hit on the exit of berkshire hathaway. >> let's check in with jon fortt and see what's coming up on "squawk alley." >> facebook continues to be in the news, when it comes to data, who it shared it with, should it have shared it with these large 'll anies particularly webe joined to talk about the implications not just for facebook but for the business of data into 2019 that's coming up on squaul alpha seems more elusive today. is it because so many go after it the same way, chasing after short-term returns? instead if getting caught up with the crowd, the investment m

. >> domino, thank you dom chu.check of the best levels of the early trading session, a 174-point gain for the dow. art cashin is with us as we close out the laugh day. happy new year. >> happy new year. >> santa claus showed up, better late than ever i don't think he'll stay around long. >> he came with an empty bag he didn't come with much when he got here the viewers will have to watch i think we're at a transition phase here if i were to look at any particular group, i would home in on the stocks here. we might see the rally begin to fade. >> how important is it as you go into 2019 for that group of stocks to lead back up you know, they certainly had a big impact on the way down. >> i think you need them to be unified and consistent a couple will always look a little bit better, but if they start to fray around the edges, if facebook starts to get hit again and fall apart, i think you want to see if they can all demonstrated unified strength, which was clearly what they had done. >> it's interesting. there are p

let's go to dom chu at the desk. >> trading off the best levels of the day west texas right now tradingt $51.19 off by about a percent or so we had a few key factors in the bull case and drop in oil production in libya and drawdown in u.s. inventories and lingering optimism that an opec deal could be in play but, again, a wave of selling just in the last few minutes into the close has caught a lot of attention. traders are still keeping a close eye on not just the supply side, but also any signs of softening demand around the world but certainly, tyler, a steep move lower and that, of course, is taking energy stocks and perhaps a little bit of the air out of this overall market >> very close to 52 at the top of this hour don chu, thank you very much. >>> what it could mean for investors, many who are very excited about this eamon. >> created under the tax care act little known as provision at the time and some investors are excited about this prospect. distressed communities around the world or around the country where investors can get tax preferences for putting money in so, here's wh

to cover it all, we've got dom chu. >> we've got oil prices closing higher, though off their best levelsf the day. wti crude about $51.69, brent crude $60.30 prices had been helped along earlier in the day with relative weakness in the u.s. dollar which still sits near highs of the year we've also got a shutdown in production at one of libya's biggest oil fields that's helping prices, but traders not as convinced gains could hold after bullish positions in oil futures have been cut to their lowest levels in around three years. analysts at bank of america and merrill lynch are more bullish and predicting brent crude prices to average $70 per barrel in the coming year on a relatively balanced oil market, kelly. back over to you. >> just hanging on to $51. dom, thank you. >>> it's been a brutal past couple of months for investors in apple the stock down about 20% about 25% in the quarter it's its worst quarter since 2008 could the stock be ready to take a technical u-turn or more josh lipton is here with the details. >> kelly, apple has given up all its earnings for the year. given the warn

bush dom chu gets us up to speed this morning. >> good morning, andrew, becky, and joe.out what's happening with the markets, we did mention the fact that u.s. equity futures will be open until 9:30 a.m cashwise, equity markets will be closed in observance of the day of mourning. also u.s. bond markets so no treasury trading, corporates, bond futures not trading as well. "x" through there. as to what is still going, we will still find prices in u.s. equity futures like we said until 9:35 a.m. eastern time also if you look at oil markets, they are still trading metal, agricultural futures. we have normal trading hours for those particular instruments so that's something to watch there. also what's happening, no action in the treasury bond market. so no action on the yield curve. but still just to point out, that big down trend we have been seeing as of late in yield curves the 2/10-year spread is trading a little bit higher. and of course that played out in a massive drop for u.s. equity financial stocks in yesterday's trade. the spdr etf that tracks that not trading agai

dom chu joins us now with that >> good morning, mike. a few things we're keeping a close eye on let's check out what's happening first of all on at least the stock side of things we are watching shares of apple right now down by about 2% you can see that down trend we've seen as of late since the record highs back in october this on the heels of an hsbc downgrade on the stock saying that the iphone at least maker could be seeing some slowing signs of demand for its flagship product. of course emerging markets demand might be more tepid we're watching those shares move lower here and of course as we talk about apple in the crux of the market cap battle, if you want to look at it that way, we are seeing apple, amazon, and microsoft currently very close neck and neck right now in terms of the biggest publicly traded company in the world as we finished yesterday, apple was number one amazon was number two. and microsoft was number three if you look at the overall market caps at the close yesterday, apple was worth around $877 billion. amazon

let's get to this morning's biggest movers dom chu joins us from the newsroom with those. >> good morning growth concerns and the trade tensions weighing in, computer chip stocks continuing to feel the pressure mai kr micron down a percent. we are still down around 20% in the highs we saw earlier this year so that vaneck sector important. and oil prices are showing a bit of weakness. continuing that near term down trend we've seen since opec agreed to cuts 1 10-year note yields showing relative stability right now 2.85% the last there we'll see if that trend down will continue. then also watching what's happening with the utility stocks because this particular sector as measured by the spdr utilities etf up margely now it hit a two-week high in trading last week. this sector now trades at a premium to the overall market. it trades at 17 times expected next year's earnings versus 15 overall for the s&p 500. back to you. >> we don't know anything about rates anymore, dom all bets are off anyway, thanks, dom. dow's been on a wild ride during the past two months. swinging more than 2,000 poin

joining me now, cnbc markets reporter,.com chu. domt even work in there that janet yellen a couple of days ago says that a recession could be on the horizon. how are markets reacting to all of this. we know they like to climb at the end of the year. >> and janet yellen's comments about whether there's a corporate bubble, notwithstanding. let's take those comments. the federal reserve and jay powell and whether president trump feels as though interest rates should be raised. this has been something in play for months now at this point. the issue is whether the economic data is there for the fed to keep on its path of raising interest rates. right now, markets do not expect that the fed will be as aggressive with interest rates hikes in the coming year, given the fact that we have some softer economic data out there. namely, in the housing market and certain parts of the economy, besides just the hnl jo -- headline jobs rate. if that's true, the fed will move to raise interest rates this month and hold a little bit next year. that's perh

i'm joined by my friend dominic chu from cnbc. dom, i'm trying to figure out what this is. there are a bunch of options, right. it could be dysfunction over congress, could be something to do with interest rates rising. it could be, coming to the end of the year and a lot of people who invest for a living saying, we're not going to see a big improvement over the next several days, so they're getting out of their positions. what is this? what is making this market go down with this volatility? >> ali, how about all of that you said and more? we're not even talking about like the tax implications for people trying to sell some of this rally here. we're not even talking about the idea that perhaps treasury yields, interest rates are behaving in not the way people had anticipated, given the fed. all of these things and this general sentiment for risk aversion in the marketplace is what's grappling a lot of traders right now. the reason why it's important is because this is seasonably, usually a strong time of year for the overall markets, from a psychological estimate, from a s

dominic chu and ceo and co-founder of wealth management and cnbc contributor josh brown. man, oh, man, domn the world should we expect from the markets today and what exactly is driving it? >> we got from markets today at least a saturday, stephanie, a nice up day. although need about another 30 or 40 points on the up side from here just to get back half of what we lost in yesterday's session. let alone what happened friday. this just speaks to the market sentiment we're seeing now play out. that is a sense of more pessimism. not panic. just more pessimism. we're about 13 or 12 -- at this point, 12%, 13% away from record highs in the s&p 500. uncertainty with trade policy, something we'll keep a gloclosee on. whether or not that can stick this time around. >> josh, a methods to his madness. day in, day out look at it realtime we say it's nonsense. is there a chance it's working? stay with me. how long has it been? a month now? he's attacking, attacking jerome powell. does not want rates raised. forever people said, jerome powell won't listen to you. fed is independent. think about the last