melissa. >> thank you very much, seema mody.y fundamentals. >> i was going to say that. that is a brilliant thing to say when your earnings kind of stink and the near term is bad and your stock is down 50%. listen, i think there is no reason to own this stock all year long. i will tell you, though, i name that i've tried to pick on the short side, intel, which is obviously very exposed to the pc space, acts really well. into the year end. [ technical difficulties ] >> does intel buy micron. >> they have had two chances and to buy and they haven't wanted to do it. >> why don't they come in and take them out. and instead of a chinese company. >> why buy the milk when you can get the cow for free. >> i heard that about marriage. i heard that once. i don't know. >> nike shares are losing steam in the after-hours session. sara eisen has that story. >> investors were happy and so were analysts going into the nike call. they just started asking questions of executives calling the year the best year ever for nike in terms of results. th

i'm seema mody with a market flash.the company is in advanced talks to sell its north american business and an equity stake. they are aiming to strike a deal this month, dow jones industrial reporting two activist investors are targeting avon and questioning possible deals. barrington and nuron take a 2.8% avon stake and are urging the company to cut costs and replace the ceo, sharing leaning higher by 7% on this report. >> seema, thank you. we have other movers to tell you about this thursday. kroger is higher after posting better than expected earnings and increasing its four-year guidance. the nation's largest supermarket chain said acquisitions and a more aggressive push into organic products helped to boost its results. and avago technologies is surging after the chip makers earnings beat street estimates thanks to demand to mobile phone components, apple one of its largest customers, that stock up 9% today. >> oil is also rallying ahead of tomorrow's opec meeting, jackie deangelis has more details. >> for oil pric

seema mody at headquarters. >>> what i would take from this is investors should take this and say it's starting to spread a bit. we saw high yield, particularly in the oil patch with oil going lower. we saw those companies cut their dividend. now it's in the material space in steel. the other areas showing distress are retail and some tech. i would be careful with higher-yielding names. you may see dividends get cut in the next six months or so. >>> let's stick with energy. conocophillips surging after announcing plans to cut its capital spend buying 25%. morgan brennan at headquarters with the full story. >> that's right. conocophillips slashing spending energy as energy prices stay lower longer. saying 2016 capex budget will be $7.7 billion, down 25% from an expected $22 billion this year which has been revised three times lower this year. down a hefty 55% from 2014. it's cutting operating costs again. those are down 20% from 2014, arguably more aggressive than peers. production slow growing. it expects to keep shedding noncore assets including up to $2 billion worth of sales in 2017

seema modi, thank you. >>> shorting emerging markets has to be one of the hottest topics ahead of the decision. take a look at bank of america's fund survey. when asked what managers viewed as the most crowded trades in the market, 53% said long u.s. dollar. 10% pointed to short and global equities. so what happens to some of these crowded trades tomorrow after 2:00? it's interesting, because marco was just talking about what happens with these crowded trades when there's mean reversion here. >> i started buying e.m. yesterday. i think e.m. corporate debt is largely largely an asian issue. this is tactical. i think e.m. is going to struggle. i think the currencies are oversold. >> in seema's report, we're talking about dollar denominated debt and how prevalent it is. a lot of this is related to what we're talking about with the potential contagion here with high yield and the commodity bust. if you think that the commodity structure is lower, structurally, it's a really hard trade. we know that petrobas has close to 30 million in debt coming up. i expect it is a mean reversion back to

. >> seema mody for a market flash. >> good afternoon, tyler. shares of u.s. steel nearing session highs up over 10% and a top performer in the russell 1,000. this after a more than 11% gain yesterday. the stock is moving higher today on news that china plans to ease its stale expoeel export tariff. shares are off 67% as steel prisses continue to decline. >> i think in the month of november the stock declined by 40% so a comeback there for u.s. steel. >>> republican presidential candidate donald trump's business partners are under fire over his latest comments about muslims. how trump for president is impacting trump the brand. you're watching cnbc and we are first in business worldwide. proud of you, son. ge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick i

our seema mody has the details on this big move overnight in china. >> that's right. couple of factors contributing to the selloff in chinese equities, first disappointing data, china posting its sixth consecutive month of declines in industrial profits, particularly weak on the mining front as companies battle slowing demand and falling prices. beijing is expected to reveal further supply reforms next year to cut down on capacity. investor sentiment also soured by a new ipo system that was approved by lawmakers overnight aimed at making it easier for chinese companies to go public. the concern is that this new system will lead to an oversupply of shares in the market, sbo bank kpingting 600 companies to go public. they are trying to transition to a u.s. style ipo system but investors don't seem to be too positive about the impact it will have on liquidity hence the sharp decline in chinese stocks overnight, the shanghai composite posting its biggest loss in a month. for a while bad news was seen as good news for the chinese stock market because it sugsd to many that

we're going to go to seema mody for a market flash. >> stocks are mostly lower but check out shares of tesla. shares are up over 1%. a bullish analyst note from global equity research says tesla will deliver more than 18,000 cars in the fourth quarter. that means tesla is on track to meet the higher end of its quarterly guidance and latest annual forecast. shares up 8% this year. back to you. >> all right. despite low oil prices, it's been a bumpy ride for the airlines this year. some up double digits, others dropping double digits. the xal is down 15% in 2015. the sector facing a major challenge in 2016 that may impact revenue growth. we'll tell what you that is. you're watching cnbc, first in business worldwide. we'll tell what you that is. announcer: it's time to make room for the new mattress models! during sleep train's huge year end clearance sale... get beautyrest, posturepedic, even tempur-pedic mattress sets at low clearance prices! save even more on floor samples, demonstrators, and closeout inventory! plus, same-day delivery, set-up and removal of your old set. why wait for

seema mody joins us with the story. >> another airline banning the hoverboard seen as one hot holidays gifts. delta has knead the biggs to not allow them on board, due to safety regulations, citing the lithium ion batteries, delta says these batteries can spontaneously overheat and pose a fire hazard risk. air canada, british aairways, jetblue, hawaiian air among others are not allowing hover boards on their planes. >>> back to you. thank you very much. do you often travel with your hoverboard. >> yes, i would be utterly lost without it. great way to get around the airport, though. >>> twitter will start showing ads to people, there are more than 500 million people by twitter's estimates who do that. jon fortt joins us with more. jon? >> say you do a google search for something and a tweet pops up. you don't have to be logged in. that makes an important moment to twitter investors. first twitter will start showing though adding to people who don't tweet, never even joined twitter. that's a big deal, because twitter seems to be hitting a wall to join and participate in the service. they

you got this. >>> welcome back to "squawk on the street," i'm seema modi. cisco winning a u.s.atent dispute over wifi technology, that sending shares up over 1% in early trade. the ruling from an appeals court yesterday reverses a nearly $64 million judgment against the company. shares of cisco this year down about a half percent. >> seema, thank you very much. >>> currency volatility became the new normal this year. is there more volatility for next year? joining us is the ceo of fi fireapps. you must have been busy. the dollar was one of the top concerns and excuse force corporations missing earnings and cutting into sales. do you expect that kind of pain next year? >> yes, we have been very busy. we absolutely expect that risk to continue. as i'm traveling around europe, middle east and also around the u.s., you actually see more corporations actually having the position of global head of risk. that in and of itself shows companies are concerned about it. that number one risk is currency risk. it should be no surprise to anybody that we will continue to have this volatility.

thank you, seema mody. >>> good morning, rick. >> good morning, sarah.ing at the two-year note. it is back around and slightly above 1%. let's look at a two day of two year note yields. it traded intraday on fed day the 16th at 101.5. right now, it is trading at 1% to give you some perspective. it continues to obviously respect the notion of tightening. now, how did everything do for the year? this may surprise you. year to date, two-year note yields, they are up 34 basis points as they sit at 1%. they settled at 66 basis points. the three-year note isn't much different. let's go to fives. fives settle at 165. at 1.72, they are only up a handful of basis points and if you look at the 10s, they are currently up what, 7 basis points. 30s are up 23. they settle ad 2.97%. on the polar sides, the extremes, people might scratch their heads. you have been talking about curve flattening. at the end of last year, beginning of this year, they were steeper. we started to get into 2015. if you look at the dollar index, it is up about 8, 8.25. it is closing very firm

let's get to seema mody in the newsroom. >> they are reducing their stake from hertz from 4.9% from 8.5%. it's been suffering from heightened competition from uber among other players. stock is down 40% year-to-date. slightly higher at this hour. >> thank you. >> i wouldn't have guessed up on somebody reducing their stake by half. >> i wouldn't either. we don't know they did that. where does that 4.9% come from? 4.9% is just below the level at which you need to disclosure stake. so they could be at zero. they have a duty to report they've gone down below 4.9%. i don't know why it's up. >> the sale is done. down from 20 to 14. the seller is out of the market so you get a pop for trade only. >> let's tick off your top trades. amazon up a massive 115% in 2015. you know what amazon uses to ship those packages? fedex and ups where you worked, guys. those stocks broadly underperformed. what's going on? are they sounding the alarm on retail shipping? >> it's fascinating. i would have thought as the shift to e-commerce, everyone knew that was happening, but accelerated faster than people thought

seema mody has more. >>> pershing square announcing after the bell it is cutting its stake in valeantharmaceuticals. the reason, year-end tax planning. the investor has been defending the embattled drug company for a while. from 9.9% to 8.5%. we did see shares slightly lower in after-hours trade by around 0.8%. >>> thank you so much. >>> should we believe the story any less? >> i believe that he is selling for tax laws. i think it's a story you still stay away from. there is uncertainty. it's not a name i want to own to next year. >> i would say, why wouldn't this guy have taken chips off the table around $120 which is where the stock got back to? i would think it's probably that. the stock sold off from that point without any news. >> i don't know. it doesn't pass the smell test. it's essentially friday night, new year's eve. tax law selling? it's probably in an offshore account which is that really taxable? i don't know. hedge funds have multiple different investors around the world. it doesn't smell right to me. >> skeptical of bill ackman. >> absolutely. >> it's the bow tie. >> wh

thank you very much. >>> and seema mody with details. >> what is happening to wti right now. a crude extending gains after hours after seeing an unexpected drop in crude inventories in the week by 3.6 million barrels in the week to 486.7 million compared with the analyst expectation of in crease of 1.1 million barrels according to the american petroleum ins tucson. and now up 1.8% after hours extending gains. back to you, kelly. >> seema. thank you. appreciate it. keeping a close eyes on those. >>> space x nailing an upright rocket landing. and while elon musk basks in the event, someone else isn't so impressed and we'll tell you who that is next when we come back. working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this.

let's send it over to seema mody. >> the market may be expecting a fed rate hike next week but jeffrey done lock doesn't think it's going to happened. if the federal reserve met today they would not raise rates amid market turmoil the bond investor says there is never just one cockroach in any kind of credit market and investors have been on credit overload, he said the best trade to investors sell the s&p 500 index and buy close end credit funds. for now back to you, bill. >> is that from the new bond king on wall street. >> he has been saying the fed should not race interest rates, he has been warning about the problems in the junk bond market, even though the odds of a fed rate increase have gone up he says not to do it. >> tell you about the big deal, dow chemical and dupont formally announcing their merger this morning. the all stock deal spawning a $1307 billion company organized into three businesses, agriculture, materials and specialty products. the ceo of both companies spoke with david faber earlier today about the key drivers of this deal. >> this deal you've got to underst

seema mody joins us with those names. >> a number of tech and consumer focused etfs beat the s&p 500 this year, just take a look at the dow jones internet index, which is the best performing exchange traded fund this year, up 23%, while i shares north american tech etf is higher by 13%, other winners include the qqq trust, the spider fund and the i shares momentum etf, all of these up more than 9%. what are all these exchange rated funds have in common? online retailer amazon and online streaming player netflix both stocks up triple digits in 2015, amazon shares helped buy stronger growth, specifically in amazon web services, it's cloud business, plus an upbeat holiday shopping season while netflix continues to post better than expected earnings thanks to its original programming and growth in the user base. the question is whether these two high flying tech names will continue to outperform in 2016 and analysts i speak to say it comes down to earnings and also valuation, that will be a big part of the story. sara. >> see

uk you can see on the day shares down 1.8%. >> seema mody, thank you very much. we'll see you soon. >>> by any standard this year was a pretty lousy year for pretty much every single commodity in the world. you might have heard a little story about oil. yeah, we're down 30%. gold down 10% this year. copper down nearly 25%. one other one we don't talk about much also down big. we'll give that you story and much more coming up. stick around. was a pretty lousy year for much more coming up. >>> earlier in the show rick santelli got confetti dumped on his head. let's go back to rick santelli who has cleaned up at the cme for more on the bond market which is sort of, kind of trading today. >> well, sort of, kind of finished for futures. about another 35 minutes for the cash markets, but it has been really a very incredible year with contained rates except for the short end. look at intraday of five year, it did give some back today. high settlement of the year was yesterday at 179. we're at 176. the 179 goes all the way back let's put a year-to-date chart, back to sep

. >>> let's get to seema mody for a market flash. >> a bright spot on our radar. sign signet jewellers up 1.5%. the company was the focus of an article in barron's over the weekend suggesting shares are expected to rise and the recent sell-off and credit concerns are largely overblown. for the year, shares though down about 8%. brian? >> seema, thank you. turning now to the broader bond market. how are investors balancing their positions as we head into next year? thoughts now from jeff, manager of the five-star $3.8 billion thornburg limited income fund. joining us from beautiful santa fe, new mexico, this afternoon. thank you for joining us on "power lunch." i guess the delicate balance, the basis of your job going into next year is going to be where can my client get a relatively decent yield but relatively safe yield because we have seen many bonds, especially the higher yielding junk bonds, have severe problems this year. >> you know, that's absolutely correct. our job every day is looking at the markets. it's global generalist. the team here trying to find i

seema mody, how do they look. >> take a look at your screen, bill.rude futures pairing gains after hours, after the american petroleum institute had a surprise inventory build for last week. inventories rising by 2.9 million barrels in the week compared with the analyst expectations for a decrease of 2.5 million barrels. to put this move into context, crude futures down 1% since the api number came out. you could see right there about 1.5%. back to you. >> a little bit of a surprise there. they were expecting a drawdown like last week toward the end of the week. >> lucy pulls the football away again. honestly, every time you think the crude is trying to carve out a bottom. maybe there is an explanation for this. i'm not an expert on refinery utilization. >> you should become one gib what is happening with the market. >> the week numbers are too volatile. >> we'll get the official numbers tomorrow. >> so what does seattle, boston and portland have in common? we'll tell you next. random? no it's all about understanding patterns like the mail guy at 3:1

let's get to seema mody. >> they have been awarded by the pentagon a multi-year deal, a $1.1 billion deal for a total of 32 erics which does include c-130 j milt plains. we're looking at shares of lockheed martin, if we pull up the chart, i believe slightly higher on this news. melissa, back to you. >> we'll get that chart. there it is. seema, thank you. guy adami, defense stocks. >> we've been bullish in defense stocks for a long time now. lockheed trades at what i deem to be a reasonable multiple. 18 times federal earnings. it is probably 3% off the all-time high. you get a decent dividend. tremendous tail winds and i think lmt is the best in breed. >> and still ahead, santa claus doesn't rally in the month, and there is a secret signal that could show a major move for the stocks in 2016. that is up next. much more "fast money" straight ahead. >>> welcome back to "fast money." if history is any indication, this could be the secret signal that stocks will jump in 2016. paul hicky is co-founder of bee spoke. he is here with figures that could make you bullish about the new year in eq

seema mody has the details. >> melissa, that is right. willis group is set to join the s&p 500, replacing fossil group. this following the willis group with towers watson, a deal expected to be completed soon. this change to the s&p 500 is expected to take place after the close on january 4th. and you're looking at shares of willis group holdings up 3.5% on the after hours news. melissa. >> santa may have delivered but did fedex. we'll tell you what had them working over time and why it was almost smooth sailing for one of its rivals. i'm melissa lee on "fast money," on cnbc. here is what is coming up on fast. >> while you are recovering from eggnog there is no holiday hangover from amazon. and one analyst says it is the stock to own for the next ten years. we'll take you behind the catalyst that could send amazon soaring to brand new heights. >>> and plus we're grabbing the crystal ball and giving you the biggest tech predictions ready to rock the market in 2016. from wearables to virtual reality, how you could get in on the hottest gadg

seema mody is at third avenue headquarters in midtown, mpt, in new york city. she has the latest. >> we are outside new york headquarters of third avenue, just a half hour back a massachusetts regularity is investigating third avenue. cnbc can confirm that the sec is right now inside the building valuing the fund's efforts to ensure it provides an orderly process that best protects investors. third avenue is liquidating its high yield funds and is parting ways if its it chief executive who had been with the firm for 24 years. the abrupt closure of a $789 million focus credit fund comes after a deteriorating performance down over 30% in 2015, elevating boarder concerns around the health of the high yield market, it's also drawn attention to some of the publicly traded asset management firms that have exposure to this part of the market where dell and reed, among others down 5% or more. that's the latest. >> joining our "closing bell" exchange as we begin what could be a momentous week ken mory, kenny polcari is over at post 9 and rick santelli joins us and, yes,

seema mody is joining us with the emerging markets playbook for next year. >> mandy, another challengingemerging market. hurt by a couple big headwinds. first fed rate hike fierce, china's economic slowdown, the strengthening dollar and weaker oil prices. the rout is one of the reason stocks in brazil sold off, down 13%, while india down 5%. two outperforms is china up 10% so far this year while russia has rebounded by 22%. interesting enough for 2016, strategists at b of a are bullish on russia projecting economic growth to improve in 2016 after contracting by 3.7% this year. analysts say if there are no major political surprises and if commodities stabilize, investment should continue to recover supported by growth in corporate profits. now, another emerging market investors are warming up to is turkey. strategists say economic growth may recover amid long delayed reforms, but, of course, mandy, as you know, geopolitics will be a big part of the story. >> if we can clarify, am i right in thinking with russia you have to be careful about which collar index you're talking about because t

seema mody has the details. >> data from the american petroleum institute grabbing the attention of energy traders, with a build for last week. inventory rising by 2.9 billion barrels. there was a forecasted decrease of 2.5 billion barrels. down 1% since the api number came out. melissa. >> seema, thank you. >>> b.k., what does this do because we have inventories tomorrow. >> tomorrow at 10:30. and api hasn't been as accurate or hasn't -- the move in the market has reversed typically. tuesday night selloff, thursday night you get the eia numbers. and i would watch tomorrow morning at 10:30, if we don't hold these gains, i think that rolls the whole market over. because in my view, that is what is driving this rally over the last couple of days. you wake up in the morning and check oil futures. they are up and everybody is happy. as soon as they start to roll over, that is when i would watch out. >> i thought interesting today wti was up 1.4% and the energy stocks were underperforming, or a mech as you like to say. >> and it has been $80 for quite sometime. a lot of people have been piling

i'm seema mody. d dow jones reporting the company separation will be a traditional spinoff. after the list therks will likely list on the hong kong stock exchange. they say they will return $6.2 billion to share holders before the china separation. >> some big moves happening at yum. thank you. >>> honda, no longer just an automaker. turns out tonight, it also became a plane maker. our phil lebeau is live with that story. >> reporter: last night, the faa gave certification for the honda jet, which means honda is now officially free to deliver some of the first business jets that it has built here in the united states to customers not only here in the u.s. but around the world. that's entry level in the world of business jets. the first deliveries will likely begin over the next month but ramp up in the spring. they believe that even though this is a vit is a vol tiatile market, he believes his company will do well. >> honda has good financial backing and we will be able to sustain that. if you take a look at the long-term basis, a strong corporation like honda is very big, g

seema modi has details for us. >> that's right. we're calling it a tale of two social media stocks.ebook up 37% in 2015. while twitter is down 37%. so why have we seen such different stocks stories? let's start with facebook. shares have been outperforming thanks to better than expected earnings. talking about desk top, platform, plus internationally as well. twitter, on the other hand, has been posting disappointing earnings as it continues to face challenges on the ad front. while also going through this major leadership change. bringing jack dorsey in. for facebook, analysts say focus will be on top and bottom line growth, finding ways to monetize instagram as well as its two other key acquisition, what's app in the messaging space, and occulus in the virtual reality space. when it comes to twitter, ubs says clarity will be needed for potential to be achieved. so improving its user interface in an effort to make it more mainstream, updating its advertising strategy, and putting money to work, perhaps making some key acquisitions. >> thanks. stay right there. up 37%, down 37%, a m

seema mody is live from third avenue in new york. what are you hearing? >> reporter: it's a story that keeps on giving. first, a liquidation of their high yield fund and now the ousting of the chief executive who was ceo since 2003. in a statement third avenue says barse and the firm have mutually agreed to separate and a broad-based leadership team which includes president david resnick and vincent dugan will lead third avenue going forward. this comes as third avenue's focus credit fund closes down which did invest heavily in high yielding loans and securities specifically in the energy space. the fund is down 33% in the year of 2015. it's widely seen as the biggest mutual fund failure in the financial crisis. this news has also escalated concerns around the broader high yield market. we're looking at some of the publicly traded firms, trading down by as much as 5% on the day. that's the latest. back to you. >> let's bring in senior market commentator because, mike, you wrote a piece on cnbc pro about these junk bond fears and the market moves ahead of

seema mody is here with more. this is a fascinating story. he is not the only one of china's billionaires who has been assisting. >> reportedly other cases that have also been similar to this, but imagine if a billionaire tycoon in the u.s. just went missing, poof, for overnight. >> donald trump? no, i didn't say that. >> reportedly that's what happened in china. he's worth $6.9 billion. executive chairman of fosun international. he was initially said to be missing. we have now learned that he has been detained by police and is assisting chinese authorities in an investigation. this comes as chinese regulators have been cracking down on corruption, a campaign led by president xi jinping. it's sparking concern among the investor base seen as one of the reasons that china's stock market sold off hitting a five-week low. this as beijing continues to allow its currency to fall against the dollar following a series of disappointing data releases this week. not good news for those exporters that do business in china and just to put into perspective