i think the issue is very much related to exxon's ability upstream. given that the overall strategy was pointing toward russia. they have problems not wanting to grow their gas production much more and they're relatively short of u.s. unconventional oil compared to a name like chevron. so we think that it's structurally we think chevron is a better place to be from an asset base point of view and chevron has more oil price leverage and we're bullish oil long-term. >> i appreciate your time. you think oil is bottomed. >> we were debating that this morning. there is a lot of risk over the next six weeks because we're going into u.s. refining turn around season and after that the market just tightens forever more. >> we'll talk to you soon. senior oil analyst. joe your trade. >> pete brings up a good point. the activity m&a. why isn't there any right now. oil people -- >> people are preserving capital aren't they? >> no, when you look historically at turns and bottoms for sectors it usually ends with a name like an exxon mobil. a name like chevron recogn

exxon is showing relative strength versus the index. in fact it's the best for that ratio going back to june of '09. so if you want to be constructive here look at the large caps with the best balance sheets those probably give you your best chance to play this if oil gets better. >> the exxon ceo in the building as we said. we hope you'll hear from him in part during this hour. the stocks that you would buy, do you agree with josh? the bigger names the exxons of the world? what's your take here? >> right now they're waiting for the shoe to drop. there's healing as the economic numbers get better. that also helps oil. they actually bought the dip the other night. the index is up like 80% in the last 14 days. i think that we're going to see a lot of m&a in this area. obviously exxon mobil has a huge war chest and you look at stocks and market caps are under $10 billion. there's like 20 stocks in the oil index that have market caps less than 10 billion dollars that are really fallen angels. do you want to be the guy that buys it at 30 and

what kind of options are on the table for exxon? exxon raised about $12 billion monday.between six and $7 billion up the cash flow in 2016. dividend is sacrosanct. 3.5% yield on that dividend. paying a roughly 12 million last year -- billion last year. they definitely have the financial flux ability to whether that storm and look internally for those investment opportunities. in terms of oil prices, where do they see them going in 2016, do they see that we have had a floor? the visibility has, indeed, interior -- deteriorated more broadly. management was clear, there is a lack of detail because of that uncertain environment. china is in transition to u.s. gdp will likely go sub 2%. there is some tension because of the lack of clarity more broadly . also, given the geopolitical tensions in the middle east, that also as an element of additional uncertainty. tracy: thank you so much, vincent piazza. joining us on the phone. carol: let's move to the markets, a volatile start to 2016. the s&p 500 climbing up of its february lows but still in negative territory year to date. s

so exxon talked about previously unmatched shareholder returns has now got the lowest dividend yield amongst the integrateds with no buybacks. >> exxon put on credit watch by several agencies next month raising concerns about the future of the coveted aaa credit rating. the company maintains it will continue to pay a reliable and growing dividend, stressing the business is raw for people to own shares for a long period of time. >> the dividend is safe. again, part of what we felt is the obligation to our shareholders. >> reporter: for "nightly business report," i'm morgan brennan in new york city. >>> agriculture giant cut its earnings outlook for the year and that is where we begin tonight's market focus. monsanto blamed ongoing impacts from currency headwinds and lower commodity prices for the forecast which also included downbeat guidance for the current quarter. despite a challenging macro environment, company said it sees strong long-term growth opportunities, shares of monsanto fell nearly 8% to 8,530. >>> canadian specific railway reportedly explored a potential $20 billion me

exxon's attempts to block shareholders from demanding the oil giant disclose how its business woulde impacted by the two-degree target limit on global warming. following the hihistoric un climate accord in paris in which , 195 nations endorsed efforts to limit global warming to no more than a 2-degree celsius rise above pre-industrial levels, a number of exxon's shareholders have advanced a proposal that would force the oil giant to tell investors how its profits will be impacted by the global target. a new "new york times" investigation has revealed the national football league and more than 100 diagnosed concussions and published data -- based on flawed data. the investigation also exposes deep ties between the nfl and the tobacco industry, showing the two industries shared lobbyists, lawyers, and consultant. accused "the new york times" of publishing pages of innuendo and speculation. immigrant rights activists say authorities have begun transporting a group of bangladeshi muslim asylum seekers to arizona in advance of a mass deportation. many of the men participated in a series

look at the companies, apple, exxon, ibm, pfizer. they spent tens of billions of dollars on buybacks and if you compare their performance in the five years only one of them has beaten the market average and that's apple and that's been going down a lot recently. they are a good example for what you're seeing in the broader market and the companies that spend the most on buyback tend to go more and go past that when you look at buybacks. >> in terms of the five-year time frame, five years from the buyback, initiation. buyback or a flat five years ago from today this is what the companies did. >> we played with it a lot of different ways, initiation, five years, ten years, different groupings and however you sliced it you got the same message. obviously the numbers differ in their details, but the point is the same. the vast majority of them. they lose compared to the market. >> thanks so much. eric chemi, confirmed the general belief on this desk. >> that to me is the big issue, right? so what's happening, the mechanics behind it they

the justice department has asked the fbi to evaluate whether oil giant exxon mobil broke federal laws by lying to investors and the public about climate change. the move comes in response to a request from california congressmen ted lieu and mark desaulnier, who have sought a investigation of exxon mobil following exposes by inside climate news and the los angeles times revealing exxon knew that fossil fuels cause global warming as early as the 1970's, but hid that information from the blic andnstead pred millns into imate deal. calirnia attney genel kamala harris and new york attorney general eric schneiderman have also launched investigations of exxon. the increasing scrutiny of exxon mobil comes as record-high temperatures in alaska have forced organizers of iditarod to transport a train full of snow to age because there is not enough snow for the famous dog sled race. organizers also say the teams will cover only 3 miles on saturday's ceremonial start, rather than the usual 11 miles because of the lack of snow to , sled on. this is the second year that the lack of snow has forced

why don't you explain why you like exxon? >> rockland trust, when we make investments, we're looking out three years. we look at the time horizon that far out in the distance and suggest that today's stock prices look incredibly cheap because we're discounting discounted oil. and so exxon is a great example of a company that will ultimately survive. its balance sheet is rock solid. so it has an opportunity, we think, to take advantage of the market correction and be in a choir of assets of companies that either go bankrupt because they're overleveraged or they have to sell assets to pay down debt. with exxon's significant balance sheet strength they will be out there purchasing these assets either out of bankruptcy or ultimately from the balance sheets of other competitors. >> next on the list is slumberjay, in the energy field in a different way. one of the reasons you like it is you think there's consolidation, a trend going on in that particular area of energy that might benefit slumberjay? >> that's correct. what we're se

exxon oil is putting mobil into a budget crunch.s they get on capital spending as they scale back their production target. tracy: breaking news here, mitt romney is set to speak out against donald trump. plans toformer nominee say as they try to slow down the momentum of the former gop front-runner after his big super tuesday. the fed saying at

we heard becky quick got an exclusive interview with rex tiller of exxon today. that's incredibly rare. they hide unthe ray dare. to your point, mcclendon was the opposite. he was in the froont row of the thunder's games. >> willing to be a very tall -- >> he was pretty much the face -- >> willing to be a very tall male. >> i also think it's interesting, look, we don't k w know, whether he took his own life or the tragic accident, but at least last night with his statement, he sounded very defiant. he struck a tone of anger and resentment, and 110 years, nobody in my industry has been charged under the sherman act, he hired a lawyer from williams and connelly, which can put up an aggressive defense. it seems out of character to me to think that he would decide to take some sort of tragic step. i'm not speculating either way other than to say he seems to be going down swinging in terms of the litigation. >> this is somebody, kate and jim, on the cover of "forbes" 2010 as americas's most reckless billionaire. his media reports and board dissatisfaction had been swi

bearish stancea in exxon. julie: what is your trade here? a simple trade.pread, 85 puts selling 80 , pay one point $.5. 1.25 dollars. julie: we will be right back. ♪ carol: a quick correction, we segmentnner in the last investigated in the labor funds scandal. he was subpoenaed but not the target of an investigation. crumpton is over at the news desk. mark: good afternoon. merrick garland, president obama's choice for the supreme court, met with a pair of senators. al franken spoke with supporters. >> this is the danger of this. precedent of making this, of making the supreme court political, more political. that is very dangerous. mark: judge garland also met --h a new york junior center senator. leadership refuses to consider the nomination, saying the next president should choose the successor. they will not be charged in the fatal shooting of a black man next december. one officer is white and the officers hasn't been released. mark was recent -- reaching for officer's gun when you were shot. clark was handcuffed. his death led to massive protests and a

exxon already announced it would cut spending by 20% this year. if they cut capex further, it could raise conditions for future growth. second, keep an eye on its dividend. the firm recently announcing it will no longer buy back shares to prop up its stock price. so its dividend could be in danger. and the third thing to watch, cash flow. listen for how aggressive exxon will be on the m&a front as its threat to the its rare aaa credit rating keeps mounting. >> what's been interesting is the stock price of exxon, which clearly is lempled for the price of oil but has really outperformed the other energy players. >> exactly. we've seen the stock up about 10% in the past six months. what i'm heari inin ining is de lower gas price, they have a strong balance sheet and exxon has the ability to withstand this longer than some of its competitors. >> interesting perspective. landon, thank you. now to the story everyone is talking about this morning. hillary clinton and donald trump moving closer to securing their party's nominations for president. clinton

so exxon was a good place to hang out. don't want to hang out anywhere when oil prices are declining, but if you did, that's guy place to hang out. we have been trimming a bit of exxon to make -- to fund the purchases of companies like murphy that i talked about earlier. >> great to have you here. thanks so much for coming on. >> sure. >> see you again soon. look at the markets, we have been up for four straight weeks. this is the anniversary, the one month anniversary of the february 11th low. stocks coming back by tremendous amounts since then. "power lunch" picks up that story, a whole lot more right now. >>> and welcome to "power lunch." i'm michelle caruso-cabrera. along with tyler mathisen, melissa lee, brian sullivan. let's get you up to date on what is happening in the markets now. stocks trading in the narrow ranges as investors shore up their positions ahead of wednesday's big fed meeting. the dow, nasdaq and all the small caps as you can see, dow higher by 29. s&p, flat, lower by two points, nasdaq higher by six

so is exxon's top rating in jeopardy and does it matter? rex tillerson spoke to us yesterday about this issue. >> hopefully we provide a little bit of insight with our forward expectations on volumes and as we told the group today we don't set volume targets we set investment programs and the volumes are the outcome. having said that even at the reduced levels because we have a lot of major projects that are nearing completion that's coming off this high period of investment, we have a lot of new volumes coming online this year and over the next two years so our volumes are expect said to in the 4 to 4.2 million barrel a day. going forward as i said that deep hill resource base the quality of it is still good and i think as we look over the next certainly five to ten years we've got plenty of capacity to maintain our volumes and continue to bring reserves online. so, i understand and we're -- we want to give the rating agencies all the information we can give them to help them understand how the future looks. you know, over 90 years of bein

liz: i would say. >> one of your earlier guests talked about exxon.hat is one of our stocks we talked about. fullness of time when you have all these people exiting the stock market, when you have all these people selling bonds into the bond market which warren buffett is also doing, you have to get, these are persistent facts you have to pay attention to them. that means $140 billion come out of the market. this is where the prices are after it is gone. great companies are selling at reasonable prices because of this. you and i talked about these companies in the past. companies like google, chubb, jpmorgan. they have very modest valuations because of the selling. liz: what do you consider modest valuations? 11 price earnings ratio? >> yes. talking about valuations with these great companies, google selling price earnings multiple less than its growth rate. these are crazy things. where the companies pay off big, fat dividend yields this is no-brainer time. liz: what would you stay away from, mike? >> interesting. warren buffett you cited before, jus

exxon is betting on higher prices to generate more cash flow. earlier this week, the company successfully raised $12 billion in its biggest bond issue ever. >> we're coming off a five-year period of very high capital investment. if you look at the previous five years to 2015, we had invested about $190 billion back into the business. some of the major projects that would have funded, they were to have partners. the partners and we have agreed we should take advantage of this market situation. let's go back and relook at the costing of those projects, the strategies, and is there some value we should be trying to claw out of this market before we make a final decision. governments have been working collaboratively with us on that. the second is in our north american drilling activity. we've been bringing our rigs down like everyone else, not because the opportunities are no longer economic at this low price, but clearly the returns have been diminished. as i told the group today, i said, i just don't see pushing a rope into this market. we're goi

tom: what does exxon do? >> i don't think exxon thinks that way from the years i have been there.e is a fundamental demand for energy. they will look for the higher return projects. hurdle to set a for these investment but the hurdle rates will not be based on a bond rate. they will be based on what they think the shareholder rate of return is expected and then exceeding that expectation. the price of oil is putting deflationary pressures, where does the euro go from here? it bringss a brexit the euro down? from got the hint of qe mario draghi. were has been a big move but could get further weakening of the euro relative to the dollar. we expect mario draghi to notnd qe but probably anything like the 25% move. most of the move in the euro versus the dollar, we have already seen. francine: what happens to the pound? it's impossible to predict the referendum. how do you position yourself as an investor? >> as we got the news of horace johnson revealing his opposition, that hurt the pound. going into the referendum in june, the pressure on the pound will be to weaken. if the out come

exxon mobil is not going to move.ex. >> up next, costco and kroger getting a hit. kroger is down 7% after it reported weaker than expected sales. both stores pointing to the warmer weather as a factor during the quarter. dan? >> listen, costco has been a massive outperformer. they've been killing walmart and target, who kind of cater to a slightly different consumer. but what's happened here is these -- this was really bad. i don't mean really, really bad, but there was a whole host of things. fx hit them. lower gas prices. they sell a lot of gas. that hurt the numbers here. there's a lot of things to consider when you think about a company that's only supposed to grow earnings, trading at 27 times. when you think about a target or a walmart that has actually been stuck in the mud a bit, they traded a much lower multiple but don't have the same groethd. if you get target back in the mid-70s, i think that's the way to go. >> i think it's actually that the s&p traded down to 1810, give or take. there was kroger for the

we have breaking headlines about exxon mobil. >> good morning.obil will meet the street in half an hour to give details about full year plans and beyond. a slight decrease expected in 2017 in part from its chemical operations. exxon expects production to be 4.2 million barrels a day through 2020. flat compared to 2015. cash flow from operations is expected to grow over that period. that's based on oil price scenarios ranging from $40 to $80 per barrel. that's key. analysts have been concerned spending cuts could pressure exxon reserve so cash flow is a reason that s&p put aaa rating on credit watch. they will pay out reliable and growing dividend and tapered share buyback program is flexible. the other thing to watch when exxon meets with analysts in a short while, the company just recently raised 12 billi$12 bil largest bond sale ever. they'll look for commentary regarding prowling for assets. back over to you. >> thank you very much. we should point out we'll talk with rex later this afternoon and we'll have that interview on "squawk box." >>>

. >>> meanwhile, exxon has said it'll slash cap ex 25% this year. analysis day taking place here. and morgan brennan was there all morning with the latest, hey morg. >> hey carl, exxon speaking with analysts down want hall federal here and in a meeting that's expected to go for a few more hours. now the energy giant giving more color on the plans to cut cap x by 25% to $23 billion this year. that'll mainly come from upstream operations, oil and gas production, as more projects come online. another decrease is also expected in 2017 in part from the downstream chemical operations, and ceo rex emphasizing the benefits of an integrative reduction and defining model whether commodity downturns like this. he expects 4 to 4.2 million oil equivalent barrels through the day. about flat up slightly from 2015 levels. cash flow, however, is expected to grow over that period. and not just on the back of crude oil prices, but thanks to operational efficiencies as well, reserve replacement, which has been a focus of the street, saying at the current rate, exxon has reserved life of 16 years that

go with the large integrated names and exxon mobile that's up 6% year to date and chevron basically flat on year and maybe slightly off but you have to believe that the stabilization is going to happen to allow you to buy the emp space and the downstream names and everything else. you want to play it safe. you buy the integrated names. i do believe that it's going to be dead money but you'll be earning a yield to your point. >> let me ask you this question. what if there were no dividends? >> that's a problem. >> look at our target. >> it changes the equation completely? >> our rating on the stock is predicated on that and that's why we have an outperform rating. we have a $122 target and predicated on that dividend. if it gets cut, all bets are off. >> and if oil stabilizes. >> which all of you don't think is happening so far. >> let's assume that it does it for a long period of time which actually if you look at the natural gas market that's what it did, right, we had an oversupply and went sideways and oil goes sideways at $40 for the next two to three years that chevron dividend is n

ahead, exxon joins the race to export u.s. crude overseas. is this the sign that u.s. experts are finally picking up? -- exports are finally picking up? ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. carol: this is bloomberg markets. that started with the first word headlines. says he wouldney support an effort to deny donald trump the party's nomination at the convention in july if trump does not have enough delegates to win outright. he spoke with mark halperin in an interview for "with all due respect." romney says he might contribute to super pac efforts attempting to block trump from getting the nomination and added

last month, exxon sent oil to a refinery in sicily. u.s.an on exports ended in december and independent traders have taken the lead in exporting american oil. amazon says customers were not using the service. they made the switch when it inroduced its new fire september 2015 with new flyer tablets. that is your bloomberg business flash. a minority owner for the yankees are selling a 1% stake in the franchise. scott broke the story and joins us now. who are the owners, the minority owners? scott: we'll know who is selling this particular stake but we did get the teaser. bankers whosent to might have clients for the purchase so we got hold of that. we do know with on the market, we are just not sure whose share it is. >> how can you market more than one share? scott: it is like an option. how do you bid on it? they will sell the full 1% as is but there are married reasons people would be involved. some lps use it as a training ground for future purchase of a majority of the team. be ablek it's cool to to close a business deal or bring them in

is going toe exxon provide a customer base rate credit of $40.6 million. saying in several different states it is going to wave a prohibition on pepco filing cases. like they are basically trying to satisfy the concerns over any kind of rate increase. both of the stocks are moving higher. they have been under pressure on the concerns that the deal was not going to get done . >> it is a tough time for linkedin. hit bigk has gotten time, dropping as much as 43%. what is it like being the ceo of the company on its worst day ever? we had an exclusive sitdown interview with jeff weiner. she asked whether it was a fair reaction. a surprise, weas were not expecting that kind of response. when you look at the core elements of our business, they remain healthy. if you look at north american cells, store growth there has remained consistent. , still theates fastest growing business we have at scale. post the launch of our havegined application, we seen an exhibition in engagement on both mobile and desktop. as tolysts went so far say we are sorry, we got it wrong. i

you'll hear from exxon mobil ceo. he is in the building. where oil prices could go from here.nd managers really buying the best stocks in the market? we're going to debate a list of names they have been snapping up and tesla is in the spotlight today. after andrew left is short the stock. we'll see you in 15 over at post 9. >> we'll keep a seat warm for you. now to rick santelli with the santelli exchange. >> thanks. my big number. 2073. any idea what it is? i'll tell you. it's a cumulative rate of inflation. 2,073% which leaves me to the title of this piece. the traps are trappings of grading on a curve. see when you benchmark your currency against another currency, you're really limiting the information that you get. especially at a time where everybody is tinkering with their interest rates and currencies. so the best way to really look at a currency is a bit in isolation. whether it's mind mode here, adjusting it for inflation and starting back in time or looking at how much each currency actually buys like the index. but grading on a curve's problems aren't only relegated

in the question of liquidity, the liquidity for exxon right now is tloertically unlimited.porting the dividend is important for them for the long term business model. if they were to match cash flows yeah, i think you could argue if we were to live in this lower for extremely longer environment you would have to adjust your pay out ratios but you would also see costs come down for and start to see margins improve. one of the things we have been spending time on this year is focusing on the ability of niece companies to go out and raise secondary equity in this mark. we've seen $9 billion from large cap e and ps. by and large the investors are loving the ability to raise capital because it prolongs the duration of these names through a down cycle which is viewed kshly as unsustainable. i think if this was not viewed as a cyclical business, you would see those pay out ratios change. >> david, is there real concern some of the big guys are going to go under? one of the conclusions at a conference i was at is that bigger doesn't equal safer. would you agree? >> i certainly thin

to shut other people up and you wanted to put them in jail. >> >> no, what they want to do is soak exxon money. this is a civil -- >> -- this is ideological at its consider. it's about changing our economic system. this is not about environment at all. if they can shut people up along the way it will be great for his legacy, he thinks. >> that's it for the panel. stay tuned for theg$ú primary that wasn't. you can't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence. type 2 diabetes doesn't care who you are. man. woman. or where you're from. city. country. we're just everyday people fighting high blood sugar. ♪ i am everyday people, yea, yea. ♪ farxiga may help in that fight every day. along with diet and exercise, farxiga helps lower blood sugar in adults with type 2 diabetes. one pill a day helps lower your a1c. and, although it's not a weight-loss or blood-pressure drug, farxiga may help you lose weight and may even lower systolic bloo

i'm only recommending occidental, exxon, chevron and slumbers in that group.'s go to linda in maryland. >> caller: buy, sell or hold, two harbor investments. >> you cut me to the quick, that is such a hard one. i see that 13% yield and all i can say is red flag. you shouldn't be able to earn that much. let's go to rusty in new jersey. >> caller: how you doing, my stock is cheesecake factory. >> the mall is so crowded who would like there? i like cheesecake factory, i think that restaurant segment is on fire. one more, john in tennessee. >> caller: hey, jim. john from tennessee. what about frontier communications? >> i never like to reach -- companies like verizon give you a better one. that, ladies and gentlemen, is conclusion "the lightning round." >> sponsored by td ameritrade. ♪ he has a sharp wit. a winning smile. and no chance of getting an athletic scholarship. and that is why you invest. the best returns aren't just measured in dollars. td ameritrade. came courtesy of james and patricia thompson. this tv? margaret and tom lee. the championship game ball

exxon mobile says there was no major impact to the community or operation of that refinery. >>> a man from washington state who ran a so called christian prayer website must return millions of dollars to consumers who paid for prayers. he will pay back or has been 165,000 customers who were victims of what sdeptive business practices. -- deceptive business practices. he created fake religious leaders at his christian prayer center and posted false moanal -- test moanals t testimonials for prayer. >>> a wave of change coming sea world. coming up on eyewitness news, the big shift announced a few does it mean the end slow, building african-style music it's the little moments that make the biggest waves. kalahari resorts & conventions the world's coolest indoor waterparks. . >>> major changes at sea world. the marine theme park teaming up with long time critic the humane society to end the killer whale shows. lori stokes has the story. >>reporter: they've been swimming in criticism for the death of one of their whale trainers and the release of the 2013 documentary black fish. >> when you

take a look at a stock like exxon up today when oil was down. you got to go with quality. jeff in new york, jeff? >> caller: hi, jim. jeff here watching your great show. i'm buying -- >> i looked at sunny today because i thought it was interesting, that collection was so good. you need to see the yen be debased and i don't think they can take the yen down much more. i am not a buyer of sony. today, listen, i'm calling in a victory for the bulls. i don't know what else to say. it was. we should have gotten killed. we didn't. this market doesn't know how to stay down, i guess. i mean, really. it should be down big or at least some. on "mad money" tonight, this company puts people on literal roller coasters but with the gas prices at lows, can cedar fair be worth buying? does today's massive drop confirm it? the most important lesson and if you have the most sensational breakup in 2012 involving tom cruz and katy holms, you're wrong. i'm taking a closer look at the breakup to see if it's time to retool. my suggestion, i think you should stick with cramer. >> don't miss a seco

exxon fored out morally reprehensible conduct an exxon says it snows apprise they sold the stock sincealready funding a conspiracy against them. that's your latest bloomberg business flash. theie: turning to politics, comeback of stephen spinner -- you may recognize him as the man who oversaw the government controversial role in solyndra. he created a software that is revolutionizing the way politicians are raising money. thank you so much for joining us. tell us about this revolutionary software. in 2008 was aer volunteer fundraiser for barack obama, somebody who had not in involved with holick -- with politics and was not a risk i managed over that campaign to become one of barack obama's biggest fundraisers and he did it by drawing on his own social network. he is a small entrepreneur in silicon valley. programs like linkedin and facebook were just been taking off. he figured out that if you could leverage your own social network, you could raise a lot of money in politics. what has happened as he has taken that approach and he has written it into code. will allowam rebv up anybody

i'm only recommending occidental, exxon, chevron and slumbers in that group. let's go to linda in maryland. >> caller: buy, sell or hold, two harbor investments. >> you cut me to the quick, that is such a hard one. i see that 13% yield and all i can say is red flag. you shouldn't be able to earn that much. let's go to rusty in new jersey. >> caller: how you doing, my stock is cheesecake factory. >> the mall is so crowded who would like there? i like cheesecake factory, i think that restaurant segment is on fire. one more, john in tennessee. >> caller: hey, jim. john from tennessee. what about frontier communications? >> i never like to reach -- companies like verizon give you a better one. the conclusion of "the lightning round." >> "lightning round" sponsored by td ameritrade. geico motorcycle, great rates for great rides. man (sternly): where do you think you're going? mr. mucus: to work, with you. it's taco tuesday. man: you're not coming. i took mucinex to help get rid of my mucusy congestion. i'm good all day. [announcer:] mucinex keeps working. not 4, no

do you know exxon was hired today. what else? europe was hammered. average losing almost a full percent. we've traded almost in lock step with europe of late even though that makes sense because their central bank is easy and ours is tightening. their central bank is determined to send the eros lower and get banks lending like mad. our fed is doing the opposite, which brings us to the last of the negative lit knee, the parade of horrible. we're on the verge of a fed meeting. it's almost impossible. if janet yellen and company believe the economy is too strong, we'll get a rate hike as early as june. who knows, they can do a little shock treatment give us one tomorrow. that would be disastrous. a hard-line fed statement saying inflation is coming back because oil rebounded would be horrendous for the stock market. how about if they think as a group that the economy is getting weaker, though? they aren't going to take back the last hike and there will be hawks saying we need to tighten regardless. i heard people talking in the last few days about how a

exxon's yield, 3.5%. chevron, a little less than 5%. still, number of companies cutting dividends nearly hit a 12-year high in 2015 topped only this 2009. the energy sector led the s&p 500 this dividends cuts last year with pay outs dropping more than $6 billion. at this point energy dividends could be tied to oil prices. >> i'm not ready to call this a bottom foil. we've had a nice demand. we're still well supplied in production is too high for the market to stay in these prices. >> reporter: barclays saying $45. there's also risk to the upside. equity, fed, europe, all issues that have jostled the market. >> i don't think the rally in crude oil can be sustained. when we traded down to the 30-dollar level some frackers came out and started producing. they're still around and waiting on the sideline. you'll see them come back and start producing again. >> reporter: higher prices will be sustainable but remember there's still a big supply glut out there. also as prices rise, producers will ramp production. will that start to push those p

. >> exxon, chevron, conoco, and utx honeywell, bank of america, goldman, morgan stanley. is this for real? >> look, you have really important things going on internally in the market which is always something that i look at and you have this much higherer is sen tajh of names now above their 200 day. it's constructive and helpful for active managers that tend to own value oriented sectors. the bulk of the money being run actively is value money and these names are finally starting to work after a year and a half of not working at all. xle is a great example of what's going on here. forget about the fact that it's up now on the year. >> it's up 17% since january 20th. >> off the lows in january. it's made like three years worth of moves, worth of a move to the upside. so you have that happening and then you look at something like the new york stock exchange, at 106. something we haven't seen since 2009. so you have really big outside moves in sectors that have not made anyone money in years. it's really healthy and important that this continue. that being said this is the

tiny compapyand with innovations to pduce nural gas from shalelehe mhis chesapeake energy second only exxon in gas produduion. welllltoday,lone behininthe wheel, he ed i ia one-ca crash. ththtiming, suspicious. the circumstances, under instigation.here's omamavillafranca. >> reporter: it t s ju after 9:00 this morning when 56-year- h old d ey mcclend's s s.v. oklaho cy highway overss and odo ames.a lice captain paco o o errama. he prettyucove straight into the wall. there was plentytyf portunity r him to correct a get back t r rdw andndhat didn't cur. >> reporter:he dth o othe former c.e.o. of chesapepee en enengy comes one day aftft the depament of justste chchchd hihiwithiggigi b bil lelees, claiheenieie mcclcldon n s nsidided a pioneein the oil and nural gadril business. e boom made chesapeake energy billions of dollarsr 20101e ld leslistahl on "60 minutes" that america was sitting on aenergy gold mine.>> in the la years, , 'veeerededhe e eivivent t two saudi arabias ofofn the form aturalas in the united states. not one, but two. >> rorte aft the b e bust.t. he was forced out asas.e.o.o

the tycoon, he took a country and with natural gas from shale, he made chesapeake energy second to exxon in gas production. well today alone behind the crash. here is omar villa franca, 56-year-old mcclendon's suv crashed into the wall in the overpass and exploded into flames. police captain paco valderama. >> he drove straight into the wall there was opportunity to correct or get on the roadway. that didn't occur. >> reporter: the death of the former ceo of chesapeake energy comes one day after department of justice charged him with rigging bids on oil lease is a claim he denied. mcclendon was considered a pioneer in the oil and natural gas drilling business. the boom made chesapeake energy billions of dollars. in 2010, he cold lesley stahl on "60 minutes" that america was sitting on an energy gold mine. >> in the last few years we have discovered the equivalent 6 of two saudi arabias of oil in the form of natural gas in the united states, not one but two. >> reporter: after the boom came the bust. he was forced out as ceo of authorities say, mcclendon was going faster than 50 miles an

exxon and chevron up 1 or 2%. they addressed the major issues everybody was concerned b.id exactly what everybody said they shouldn't do. don't touch this dividend. now look at the way the stock is performing. same thing with kmi. 70% cut. people are doing what they need to do, scott, because they know that there is an opportunity coming forward at some point in time, where they're going to be able to buy some of these in a very, very big discount. >> even if it is short covering, joe makes the point, who cares? the trend is -- >> that's why you trade. look at my disclosures. everything i've got now, xme, cliffs, names are absolute trash names. but in the short term, they are going to move the very fastest as you go. i mean, it's all about putting your money where your mouth is right now. when you see what's moving, it's the trash names. joe talked about the trash names. those are the names that are getting these unbelievable moves, and you've got to be there for the very short-term. but do not overstate your welcome. >> treasure for the market then. if you remember, when

exxon mobile is 5% year to date. we have just overweighted the energy sector. >> history also suggests the sector could be due for a comeback. after flat februarys, energy has been the best performing sector in march. no such luck for two of the most beaten down sectors this year. technology and financial. they performed no better than a coin toss in march trading negative about half the time. as always, past performance is no guarantee of future results but for investorsi looking to shake off a cold winter, they may find warmth in market returns next month. >>> gold is shining. the medal had its best month in four years and the top performing asset of 2016 so far. prices extended their gains settling above $1200 announced. why is this sector on a hot strike for being so cold. bryan sullivan has big answers from a mining conference in hollywood, florida. >> reporter: 2016 has been a disappointing year from inves r investo investors. the yellow medal has been red hot. here at the conference, ceo told us why. >> fundam