mlps. some of the credit. or look at the emerging markets. >> right now, how they've traded off, which really doesn't match up with their fundamentals. you get a really good dividend yoeld. y yield. you get paid while you wait for energy to recover. >> the portfolio manager there. ahead on the half, the tech rally you're probably missing. stephanie link joins us with the trade that's quietly killing it. less than 20 trading days left in 2015. take a look at who's at the top of the halftime leaderboard. now it is josh brown up nearly 13%. stephanie. separating himself from the pack a little bit. stephanie, joe, have some work to do. you're watching cnbc, first in business worldwide. >>> coming up at the top of the hour, it is turning into a investment in housing. reits to cash in on the rental boom. many call it the problem that will start the next financial crisis. a crisis that could do a lot of damage to anyone holding stocks. you do have to hear this. and former heavyweight boxing champ mike tyson. and our

it's not an mlp, but are you going to see many of the walking injured? >> there really has been a differentiation -- or i'm sorry, there has not been a differentiation to date between companies. >> right. >> i was in a meeting recently with one of our large investors. i was telling of all the good things that we had going on. and as we kept going, i was getting louder and more intense in terms of trying to demonstrate all the great work that was being done. he final said, hold on for a second, we love the work you're doing, but let me tell you, right now it doesn't matter. the investors are waking up every day to a terrible market. so we have a dislocation. i think in time we will see a differentiation. there will be the haves and the have-notes. i think the tpg capital and goldman sachs investment in us is a demonstration of the ones that want to be in a platform that's got an opportunity to do great things. >> maybe that's the final thing that people have been waiting for. i think that enlink is in very good shape. barry davis, president and ceo of enl

unique and well-positioned mlp because of the financial strength that we had as an mlp, also because of the unique and strategic alliance relationship that we have with devon. thirdly, broad scale diversity of assets, and lastly, great growth profile. those things we think really are what differentiate us. we've only gotten stronger in >> this acquisition, were you able to get it at a good price? kinder morgan was making acquisitions, they kept saying they're buying at depressed prices. is this a case where you had a seller who had to get rid of it? >> jim, this is a great opportunity to highlight the relationship we have with devon. because of working with them and that partnership, we really feel like we know this asset and we know the technical assets of the i will be very clear, though, when you buy top tier premier assets in premier locations, you don't see the type of degradation of value that you might see in some other places. so this isn't a firestorm sale. we believe this is a buying of a really quality asset. >> let's say the goldman scenario of oil at 20 happens or that n

really interested in mlp's. there's a lot of uncertainty and is there a way to purchase a bait on that structure? we love infrastructure mlp's. they are not as correlated. withopose contracts long-term contracts to transport energy -- i think there is the possibility of dividend rate cuts, but they will not be very extensive, particularly when you look at 8% and 10%. ok, all right, bruno. appreciate it. bruno del alma. much more in the next half hour of "bloomberg markets." theshaking up with dismissal of for senior executives. a. the best two by josep. bank of bad idea? and she is out just three months after valeant. the -- bought the company. faces questions over its pharmacy practices. that and more straight ahead. ♪ betty: good afternoon. welcome back to "bloomberg markets." i betty liu. it's time for the is no splash. talk facing an increasingly crowded u.s. fast food market is ramping up its locations overseas. s mexicands says it' chain will grow by 1000 locations abroad. to better help customers understa

that is why we are focusing on mlp's.e a seriouss problem because they have been hit from both sides. betty: these are master limited partnership with talking about, different tax treatment. eric: these are companies that have to pass on 90% of the income. the etf's come along and wrap up a bunch of them -- betty: you can buy direct -- matt: you can buy directly into mlp's. eric: they come and wrap them up. of about 6-10%. this was a big fat pitch, one adviser told me, because i can get a big deal and not take on that much risk. this is the downside to that from this environment. is down 31%. no open and fund -- it is structured as a c corporation. a tax of 34%. does, youhe index will fall short of it. that has been a real issue with the mlp's. matt: there is one from jpmorgan that is etn. eric: they are just like any other stock you may buy. the issue with those is you don't know what they hold. they're basicallyif you look at them, they have credit risk. actually lose your money. people like that because of the tax trea

because in the mlp sector for example not every mlp is having serious problems.nds on what part of the stream you're in that makes it work. but some of the other -- some are getting killed and rightfully so. some are getting killed just because they're in the neighborhood. >> the lesson here is beware of the analysis. the analyst on mlps from the very beginning of the year is guys, we're not in the oil business, we're toll keepers. they're sending oil through our pipelines. we are collecting a toll. there's only going to be a modest drop in what they thought was volumes. so far, they've been right. but the investor response has not been like that at all. the investor response has been like this business is in trouble because volumes could drop significantly and now dividends could be cut. and kmi was kind of the last straw. they cape out and said, well, we're looking at our dividend. they didn't even do anything. they did -- all they said was we're looking at our dividend policy and that was enough. >> good to see you. let's hop over to the cme and check in with

the crisis between 2007-2009, the mlp back then fell just under 50%. over 50%,ll is just so it is already worse than it was during the financial crisis. in terms of the oil collapse hurting retail investors, a lot of evil on these for the dividend. absolutely destroyed in a very short time. kinder morgan coming out potentially to cut their dividend. 10% dividend yield. can they sustain the yield? joe: there's probably some extra bidding up of them. scarlet: i want to put the oil weakness into perspective. month of averaging below $50 a barrel. go back to late july in this chart. belowgust oil averaged $43. september.45 in right now so far this month in december we are looking at $40 a barrel on average. ugly one where we got to as low as $37.50. so much for that recovery. you can see all these charts and more on twitter. bill joins us now for more on the markets. we are approaching the fence december meeting and the potential first increase in rates in nine years. can the central bank deliver on gradual path of tightening? the forecast is more hawkish

>> these -- when mlp, this is not an mlp, but when an mlp cuts dividend, it tends to go down 60%. some of these are factoring in the decline. many of these companies have coverage and are being brought down etf-like. if somebody -- a large one, transcanada, these companies, were to go and buy one of these companies, or berkshire hathaway were to buy one of these companies and take it out of that realm it would change the face of things. if rich kinder were to come on and explain why he did the last deal that would matter. right now, it is gripped with a level of fear that i have not seen in many, many years. now, debt downgrades, you taught me a lot about credit. financial times with a story here, corporate debt downgrades reached 1 trillion. defaults rise to post-crisis highs, but a lot of that is oil. >> let's get back to the jobs report. the labor department reporting that 211,000 jobs were added in the month of november. the unemployment rate staying at 5%. joining us for the first reaction from the obama administration, chair of the white house council of economic. i have to

mlp shares mlb -- are up at least 5%, which in my mind is quite a rebound.i can see some rationale, they have cut dividends, cutting back on spending and doing what they need to do. but some of the others, i am not sure exactly what is driving this rally. david: something else paying attention to, what is happening in the banking sector. >> this is one of my other favorite stories, if you look at s, and things,tech you can see the pain from lower oil prices. the big thing, these companies have made a lot of money from shale and if oil prices are low, those companies suffer and they are not taking out loans. it's a revenue at the bank starts to fall. and another thing that you touched on, the idea that things , if they get bad, we start to have bankruptcy and losses and potentially have restructuring with loans and things get really bad for energy lending specialist. david: really quickly, when you look at credit compared to equities, what is the relationship like? >> i have a bias towards credit, i like to say that it leads the equity market. it does prove t

the alerian mlp index down dramatically. an index made of these mlp names.ned by people looking for yields in a low-rate environment that we had for years and are watching much of their principle or the equity value going away what is going on? a change is happening with regards to what these companies can do when it comes to funding deals by access to the equity markets. that is no longer what they can do. many may be forced to cut distributions to allow for their internal cash flow to fund their cap x needs, as opposed to going to the equity markets. they won't be able to fund what they've been doing in the past by issuing and/or using equity to do so, hence they'll be retaining cash flow. that changes the entire dynamic for the group. that's what investors and others are trying to figure out now as they watch just an incredible dissolution of value. in an important group. certainly for many of our at-home viewers who own these things widely or own the funds that own them. >>> the rout in crude prices zapping momentum in the market, down 144 points on the

i invested in an mlp within an ira a.ecifically a roth in 2016, mlp merged with another, and based onicles i have been reading, it sounds wouldhe sale of the mlp have triggered a positive is this related income and that is what hits the ira account. stock, have now sold the and took a significant loss, it sounds like the unrelated business income is still going cause me to owe text to the government. what i tried to get my head around is how infinite the value could be that i only government based on the income tax? i can't seem to get any answers. i probably won't find anything out until the k-1's come out, but what can you tell me and what was the purpose of the government deciding that something like this should be taxable? guest: it is a fascinating question. it can create something called unrelated business taxable income. i'm not sure what the purpose is. designed to stop .he shenanigans going on i have an mlp in my ira. it has never produced $1000 per year of unrelated income that could be taxed. you are not the one who is taxed. you do not own the m, here are a the ira is a tr

. >> most of this week's most popular topic is mlp. we are adding mlp's midstream. you have to be careful. you don't want to own the integrated. we absolutely think that's true. the manager that we're working with there is creating portfolio that is have about a 9% yield. people think, well, swree, are they -- is that absolutely dollar good? anybody that says they do know that, i would question? say it comes in at an eight. that's massively better than the 20 2 20 on the ten-year. everything is a relative gain. we're in a low return environment. we have to be more creative. we want to stick to this focus on cash flow. ultimately over three to five years the prices converge on the earnings. they converge on the cash flows. where are those cash yields today? in the united states they're in snft areas we talked about. overall is only priced to give a real yield going forward as opposed a 6 to 6.5 on average over time. >> you're not looking for much many the market next year? >> you have to be careful. i don't want to buy the index. i think going forward what we have is

the deadliest shootings in recent history. 2012 in aurora cole james holmes used the smith and wesson mlp to kill 12 at a late night movie. months later 20 children and six adults were filed by a bush masser at sapped audio hook elementary. >> could i potentially learn how to use this gun in an afternoon. >> in two minutes. >> reporter: law enforcement say the couple tried to alter one rifle to make it fully automatic but their attempts thailand failed. they also used illegal high velocity magazine clips. they had mag deans that could hold 30. so when one magazine finished all they needed to does do was flip and it use the next one. the l.a. times reports that fbi investigators took security video and records from this gun lange. but with rifles as easy to use as these are, the couple might not have needed much practice. law enforcement officials tell nbc news the man who originally bought the gun has not been able to tell them how or when they ended up in the couple's hands. they say he has been too emotionally distraught to give them that level of detail. >> a fascinating look at assaul

the alarian mlp index is up. but the klm is down over 3%, kinder morgan.ht near the 52-week low. it responded positively to the 75% cut in the dividend. >> for a couple minutes. fofrnlgts fofrnlg >> for a couple days, now revisiting lows on the year. the loss in value of kmi -- >> you took it out of -- terrible timing to move it to a c corp from an mlp. the group doing well, really well, are the solar stocks. because people did not expect paul ryan would include a solar provision to sweeten the democrats. all we have seen is such rancor for so many years, we cannot believe there was an olive branch, which is why i'm optimistic that things can get done. i don't know if you have ever met congressman ryan. >> i have. i've spoken to congressman ryan. >> he wants to get things done. >> yeah. >> i think boehner may have wanted things done and wasn't able do so. there was a heavy short position in solar, people felt it will be business as usual, but solarcity has been remarkable. first solar is on fire. >> right. >> i think it's important to talk about groups mak

mlp's, a lot of the especially the upstream mlps, which have price sensitivity to crude oil, are goingal gas has to come through those pipes, and they stand there and collect tolls. warren buffett has said the streams and downstream's have hard assets and good cash flows, so i think the baby is being thrown out with the bathwater. a newhe midstream, it is phrase. it is a massive jargon alert for "bloomberg surveillance." with in the medium today, ian shepherdson and jeff saut. a conversation with olivia blanche hard. this is -- with olivia -- with olivier blanchard. stay with us. from new york, from london, we get your morning started at "bloomberg surveillance." ♪ tom: you wonder where currencies will be, on the commodity moves we see this morning after a .eaker yen russian ruble, we have a 69 print. that is a huge deal, indicative of the hydrocarbon pressure. right now, to look forward to "bloomberg ," here is stephanie ruhle. stephanie: thank you, mr. tom keene. on friday we saw the markets close up, so we are monitoring, and we also are monitoring oil, which continues to slide

the first is the commodity pressure we're talking about but second the whole mlp space as a whole is seeing a rating lower. that could have something to do with the fed action over the next 6 to 12 months or because the commodity environment is that week and nothing in supported that well. there's headwinds coming from all sides on the mlp side and some dividend cuts are probably in order because at this point the equities just aren't getting paid to keep the dividends less. >> sam, thanks for joining us. >> kelly, the energy sector is so hated that that's the primary reason why i like it. >> we know how you work. >> it seems -- i mean, you just -- you can't imagine the stock market going up 20% next year unless something good happens in the energy sector. >> as we've heard time and again for the long-term you always want to go to the places the people hate the most. >> unless they're retail stores. >> that's right, you don't like those. >>> the inspectspe the connecti shooters may have been with the terrorist group. we're back after this. >>> this afternoon the fbi officially callin

mlp, they live and die by their dividends.is why you would own these guys pit it speaks to the fact that they need to trim their dividend to pay back their credit. they've been getting clobbered for a wild. alix: what is the index tomorrow, because this could have ramifications. we do have some news regarding yahoo!, and this concerns the alibaba spinoff. >> the board met to figure out what to do. companyanded the changed their approach, spinning off the alibaba asset. they haven't found a way to do it on a tax-free basis. for is been a long problem this company going back to the last ceo and the one before that. notrently, yahoo! will spinoff alibaba. saying thatuidance we will not give you any guidance. they've been making hence that future -- hints that future spinouts would be fully taxed. it is a spinoff of the rest of the business, sell the web , a video yahoo! japan ad serving platform, and keep alibaba. instead of cutting the head off the body, they will cut the body off the head. we do expect yahoo! to give us a state

so, you see somebody never talks mlp's and is finally talks about how much they are down, that is a good time to buy. because they are surging. alex: you are the shoeshine boy and out. it. i never talk about so this is the time to buy. scarlet: you can see all these charts on twitter. alex: joining us now is a portfolio manager. he leads the equity team. joe: benjamin, thank you for joining us. we were just talking about the --o, it is above a dollar 10 $1.10, everyone is now talking about parity. delivered last week, did that change things? >> i think it will go much higher. i think toward the high teens. alex: what does this do to the appeal of u.s. stocks? >> i think it makes them off the nationals who have clearly suffered from a strong dollar and the lower value of foreign earnings in u.s. dollar terms and that makes those names look a little more attractive. but it also made more attractive the domestic european businesses that have all of their earnings in euros, they will suffer from a stronger euro and dollar-based investors, or european investor, this looks compelling. scarlet:

the 30-year-old is a free agent helping the toronto blue jays to the mlp playoff. without a salary cap. it's the highest paying player. it earnt 13 million a season. that's 300,000 more a year than the previous record for a picture held by clayton kerr sure of the l.a. dodgers, matching the highest ever salary. along side miguel from the detroit tigers. the richest contract is the 325 million deal between miami marr lanes and slugger juan carlo stanton >>> in the boxing ring mike tyson rarely stood still. his fans will be able to stare at him for hours in los angeles. the former heavy weight champion unveiled the wax works, taking 20 markets creating the figure of the photographs, going on display in the madam tuesday outside museum there. >> they did a remarkable job. i brought my nephew in to see a picture. stats, he thought it was me. >> that is all the sport for now. >> thank you. i talked to you about the press conference with jens salten burg. the secretary-general of n.a.t.o., it's under way. we'll listen in and bring you the highlights of what he has to sta

. >> what do you tell people who own these mlps? >> remember you what said at the beginning? people don't want equity. >> they can't use equity anymore. it's ratcheting down instead of up. >> they all go -- >> they have to be self-sustaining somehow from their own cash flow which means cutting the dividends. >> then there's no reason to own the stocks. the only reason people own them is income. >> haven't they already adjusted to the expectation? >> the expectation is they would not suspend the dividend they would reduce it. >> there's no evidence that the day or two after the stocks cut, they would rally. >> all these funds would keep spitting them out. >> individuals own them. it was a great way -- this will turn out to be the reach -- each time there's always a reach. there's always somebody reaching for yield. there's always someone trying to get a little extra juice, borrowing money. and this is the group where honestly people right now are trying to figure out is this model completely out the window? rates go up. >> i think back to when they were putting trailers in nor

gary: you're right, erik, if you look at the mlp mess it comes back to what is the yield of the instrumentcomes back to what is the yield of the instrument. again, it depends on what that rate of increase is. gary: i think we will always come back to what is the quality of the asset, and that's the point i make about marathon and mark west and this transaction, is that we have a tremendous backlog. of thisnswered 50% growth is in drop down. that's assets we already have. i sayors -- that's why there's going to be more consolidion. want to move towards the quality-based earnings. erik: what about crude oil exports? gary: we will see what happens. the point i make about crude oil exports, we have to be careful in the industry, and as i said, we are a free market company. you have to be very careful in just peeling one slice of the it's kind of like squeezing something in your hand. it's going to come out somewhere. if you are going to try to fix one thing, repealing the ban, what is going to happen then, this renewable fuel standard, that is upside down. consequences, that's upside down. we

that's what you want to stay away from, and you want to look at, for instance in mlps, everybody has away from mlps but there are assets within mlms that are not exposed to price, not even exposed to volume where we see the shakeout taking place that have been thrown out and people have sold them off not realizing that actually they're very good assets. >> interesting conversation. quincy, thank you so much. nice to be with you. and patrick, we appreciate your time as well. go to powerlunch.cnbc.com to see a little bit more on those plays for 2016. let's go to dominic chu for a marketplace. >> i want to pick up the conversation on energy. we have seen this turnaround. oil prices showing some signs of stabilization. of course, we're very much in a down trend still. if you look at some of the best performers within the overall oil complex, you look at exxon, also chevron, conocophillips, some of the larger integrated type names are doing well in today's trade. as we have seen this at least rebound in oil prices, short term as it may be for right now, large integrated oil companies like

>> we are big on mlps, but we are quite convinced that the rear peer player, some of which have beenffected the most i think of enterprise products, epd, that really have absolutely no threat to the growth of the distribution that we think are a good fee based business. we think that into 2016 probably when crude oil starts to improve a bit, but even apart from that the natural gas infrastructure story is going to carry epd higher through time. >> jim chanos has said what he doesn't understand about the energy investments is that you have people betting on oil to be higher based on lower supplier and people betting on the mlps to keep producing oil. if the oil price is going to move higher does that mean we have to be pumping less oil through the pipeline? >> i think that the difference is that it's a global story. the u.s. producers will continue to produce, there's significant capacity for them, the economics get better at a higher price but if production will come down globally it will be on the you -- not the u.s. frackers. >> he says, god, i have two questions for you, first one

it has nothing to do with an mlp, nothing to do with energy. not that those things can't be great.n. but i think it's a nice valuation. >> pete? >> amazon's taking over the world. amazon is going higher. $500 is spent more as a prime. giddy up. >> i'm back tomorrow. "mad money" with jim cramer starts now. >>> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. my job is to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. sometimes you have to play the hand you've been dealt. you just can't throw it back. i can't give up. you have to look at the cards,

. >> versus the s&p index and energy stocks, the mlp is getting beat up more than oil prices and mores&p energy index. >> they caught it perfect storm because they are income producers of the fed rate rise that has been promised in december. investors whoome tend to run for the hills more quickly than other investors. the largest independent pipeline country. have a price target of $150 per barrel for oil. what did opec's decision due to that? does it change your thinking on it? is ist the saudi plan they opened up the spigots to the market. not only shale players but offshore players from brazil, and so on. what we are seeing in the second round is opening up in acceleration of that strategy. delivered intoot those opec producers. they are ramping up the battle another level and looking to accelerate the construction going on. i think that is what the market is reacting to, some of these players are not going to make it. what we thought might survive this now looks like they won't. >> they did a three tier thing. they say we are going to have a supply adjustment. then we are going to

>> besides the mlps? >> an exxon out there has increased dividend for, what, 35 years? don't think they're not going to increase their different. yet the saturdays are pretty good. it's been a pretty good idea to buy them. good things tend to happen to cheap stocks. >> we expect the fed to raise rates maybe beginning next week. they might raise them a quarter of a point. it does depend. it's kind of question. but that's really not meaningful to the long-term aspect of the safer dividend names. i still think ute get a much better return in the market. >> same question. i think there's a lot of technology names that we were be in. i like the social media names. >> twitter? >> i like twitter. i think it's either going to get itself together or will get bought. it's a risky name to play, and i also like facebook for the long term as well. >> twitter, jeff? >> i don't know anything about twitter. i like the legacy technology company that is look cheap. they are cheap for a reason. they have missed the curve on cybersecurity. i think any one of the cyberstocks is ripe for acq

. >> looking at another note this morning, upstream mlps and debt reduction taking precedence over distributions which is what we know. your point is well taken, jim, i think. it's not just 7%, it's broader than that. we know the impact in the economy is broader when it gets the industrial economy and any number of companies we've seen lower guidance a bit because they are connected into oil and gas in various ways. hearing more concern out there among people i speak to as they approach next year. maybe that's a good thing, when the consensus turns that negative. between oil, the strong dollar which yesterday had that significant move. worries about emerging market economies, some of which are energy producers, even those who are not who have dollar denominated debt, it's certainly not that positive a tone. >> disconcerting. i spent a lot of time looking at the oil patch. natural gas is still well above where it could go to. we have a lot of natural gas in the country, not a lot of storage. lots of places where a dollar btus is break-even cost. stay on top of this sector. this sector has huge st

these mlps. this is a big story. >> i have a reporter assigned to it on the street. we have some really good stuff on it. >> i have great stuff on it. >> in the meantime, we'll get stock trading with jim after a break. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday. >>> time for cramer in stock trading. kinder morgan, the largest infrastructure company in the world. this is in free-fall. rich kinder has been acknowledged as the smartest man in the industry. people are reluctant to bet against him. he has been a buyer of stock. he made an acquisition people are very quiz i call about. i wish that i literally had an answer. i would tell you my energy expert, dan dicker, that i use, who has made a ton of money in these stocks, said yesterday

outside of that, in the mlp master partnership space, two names.ne of them, i don't know if you caught a couple weeks ago in dallas. we interviewed the guy that founded and runs the company. energy transfer equity. also of course kmi, why these names with oil still in the mid 40 range? >> you had a great segment on oil right before this. i hope people will view that online this afternoon or later tonight. lots of interesting stuff. we're definitely on the lower for longer camp. but i think the one thing that people forget is these are not exploration and production prod companies, these are transportation companies, they are toll roads and these hydrocarbons still need to be moved, whether the prices are $40 or $80 you still have to get the hydrocarbons from one place to another. these things were oversold at the end of the third quarter and a lot of leveraged mutual funds had to unwind and we think these things are screaming by at these levels. >> quickly make the case for apple. a lot of people saying it's gotten too big, the growth is gone. >> y

these names and are you worried that they could be, you know, burned if, for example, a lot of these mlps can't fund their payout? >> it's really interesting because we saw in september and october they were more aggressive in buying the exxons and chevrons of the world, in november they sort of cut back on those names quite a bit and made more neutral on them. i think that they have that said seng that you do, yelly, even though the yields are nice nchs, the jund lying product being crude is obviously as you've been reporting all day suffering significantly. >> before we let you go we teased that you were saying keep an eye on amazon and nike on these dips here. >> the last two times they have come down our clients have come in to buy them, last time i was on we talked about amazon versus walmart and i think that our clients are voting not only with their shopping dollars but with their investments and it worked out well for them. mid-november amazon got down to 625. >> there it is at 669. jj, thank you. >> always a pleasure. thank you. >>> we will be back with the closing countdown. a q

limited partnerships, those lmps that got beaten up so badly they all went in the gray, the olare olarean mlp got beaten up badly yesterday, up almost 10% today. it was not on heavy volume, it wasn't like everybody rushed in. in general with the down side today we didn't even have very heavy vome, two to one the declining to advancing stocks, it was a little choppy through the day. we were ten to one declining to advancing at the open, a gap down 20 points on the s&p. it was a lousy open but it got better from there. we retested the lows about 10:30. is the bottom in? nobody believes necessarily after all of these false bottoms that we have seen in the energy group, nobody particularly believes it. i was a little concerned that the big industrial groups, the caterpillars, the ingersoll-rands that had been beaten up were down 2 to 3% on no particular news too today. another lousy day for transports and airlines were down. >> transports a lousy day with oil at a low. >> southwest had some comments on their passenger revenue for available seat mile was a bit on the weak side. overall today not q

i love the energy space, i have not been right about the mlp space, i look at the lack of dividends cutsincome on earnings. for knows speculative investors that want income go there, but it's too soon to tell. at some point next year the energy trade will be the best trade. >> what's going to turn the tied tide for financials? >> fed rates go up, let them start to earn money on their cash, the game changes. >> shouldn't that be getting priced in now? >> it should be. are people still not there yet. remember, consumer confidence today 96. that's a sign -- >> pretty high. >> it's a matter of time. >> it doesn't jive with the retail sales numbers that well. >> look at cyber monday, the best ever, look at the christmas eve sales up. it's coming, it's just taking longer than they expected. >> phil on the u.s. >> one last thing, you've got to east lentils on christmas eve, it bringser good luck. >> you mean new year's eve. >> new year's eve. after midnight eat lintel soup. >> there you are. suddenly becoming david darst with a new idea. >> happy new year. >> happy new year. >> bob pisani and i

then there's some good income-producing assets here in the integrateds in the service side, even the mlp side for the patient, long-term holder. >> you say maximum pes p pessimism. i beg to differ a bit but that's another conversation. go to powerlunch.cnbc.com. >> let's get a check on the bond market. rick santelli is at the cme. what's going on? >> if you just looked at an intraday of 2 year note yields, you pretty much can't pick out much. if you go down the curve to 10s, the yields moved down before they came back a bit. there was some flattening. let's look at 10s minus 2s. we have the flattest curve just above 120 going all the way back to february but look at the 20 year chart of that same 10 minus 2 spread. we're on the precipice of comps going back to '08 and beyond which makes sense considering it was the first tightening in almost ten years. brian, back to you. >> rick, thank you, sir. >>> deadly weather across much of the central united states. you had tornadoes, you had blizzards, heavy rain killing more than 20 people across three states. unfortunately, more bad weather is

nonrefinery oil and gas names that went higher, new field exploration, valero energy partners, the mlp, not the refinery. diemo diamondback energy, erin energy, parsley energy, mcdermott, holly energy partners. congratulations to those eight companies for weathering the storm and to the investors who believed in them and invested in them. 8 of 169 nonrefinery stocks higher this year. wow. bad year. all right. the actual commodity oil is a little higher today. down still about 30% on the year and despite the rally in natural gas recently, we're still down big, about 17% on the year. and an interesting trend emerging in energy. corporate insiders buying energy stocks over the past few months. roberto friedlander joining us. robbed roberto, happy new year to you and your family and your friends. >> thank you very much. same to you and melissa. >> thank you. are energy executives putting their money where their mouth has been and buying shares of their own companies? >> ironically yes in the last couple weeks. you're seeing a big trend in the last four weeks starting to emerge. corporate i

a lot of the mlps are growing fast but you have to pick through them. i think those are going to be the surprise upside next year. >> gentlemen, always good to talk to you. ron weiner, dave donabedian with atlantic trust. you can go to powerlunch.cnbc.com. we are back in two. do not change the channel. when a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast. thankfully, mary miller banks with chase for business. and with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. chase for business. so you can own it. chase for business. the markets change, at t. rowe price, our disciplined investment approach remains. we ask questions here. look for risks there. and search for opportunity everywhere. global markets may be uncertain. talk to you. in our investment experience... ... around the world. call a

companies, but down stream and we'd even be talking boldly about the master limited partnerships, mlpstely been just ironed out this year, and we see value there. we see value in the part of the energy sector that refining and marketing, all those are going to do fine. don't forget, you know, there is a potential for an upside surprise if we get any type of demand growth in 2016. we're still looking for global growth around 3%. somebody is going to be looking for more btus year-over-year. so there is a good chance we see a little strength in energy and we bottom out for the whole energy sector in 2016. >> okay. >> thank you very much to both of you. drew kanaly and john buckingham. >> thank you. >> for more on where john buckingham sees stocks heading over the next six months, go to powerlunch.cnbc.com. tyler? >> all right, mandy. an animated tim cook says allegations that apple is scheming to avoid taxes is total political crap. is apple avoiding taxes or does the u.s. tax code need to be changed? a debate coming up. td ameritradk hard. wow, that was random. random? no it's all about

they have sucked people to be in the lmp's and morgan was the poster child of yield chasing in the mlp. >> maria: that's an oil story. >> keith: industrial-pricing story. it's a deflation story. it's one of the biggest leverage companies in s&p history. >> dagen: dividend cut in morgan. >> keith: huge. >> dagen: dividend cuts and mergers and companies going out of business next year. >> keith: you merge with somebody else, take your savings and take your dividend. that's not good for the economy. >> maria: the other top story we are following this story, donald trump, defending his controversial plan to ban muslim immigration plan, increasing support for the candidate, blake burman in washington with the latest. blake, good morning to you. >> blake: the vice president called donald trump's comments a dangerous brew. the white house press secretary says it disqualifies trump from the presidency all together. trump calls for muslims ban entering the country were widely reviewed from his own party. paul ryan weighed in, trump's plan is not conservatism. it's something that should be consi

real world recognizing the amount of selling pressure at the end of the year, hitting commodities, mlpend of the year, emerging markets. >> picking up in price coming in 2016? >> i think that's selling pressure will abate as the year end tax law selling gives way, and that gives us the traditional january effect and balance. i think, becky, a lot is related to currency. look, a lot of things happen, a lot of surprises. the dollar is not an island. you don't get a diverge of policy forever. if the dollar rolls over, weakness in the dollar, that's going to be good for oil commodities, gold, it's going to be good for emerging market currencies as well. so i think there's a lot of potential catalysts. what did well this year is not likely to do well next year. i think that's the important story. not looking at the major market averages. >> okay. >> there's a lot going on. >> rather than makie inine ininr the full year, but in january you expect a rebound from the losses. ed, do you agree with that, just the idea that some of the selling pressure abates? >> historically, there's been a janu