. >> can you recap what's dragging down energy and transocean.tom stock symbol is rig. >> there are three reasons. let's get right to it. there is a 52-week low and the people feel the dividend is not sustainable and there's been people talking about diamond offshore and having to cut the dividend and next year will be worse than this year and that's issue number one and issue number two is russia because there's pulling back of technology. people feel that will ultimately impact transocean and issue numberly and this is what's most important, the people who own these stocks are panicking. they've heard some sort of bell and they think it's over. i know. how do i know? because my charitable trust owns ensco and it's the worst performer i've ever had in your portfolio. i believe in this country, sure, some people are nervous about the decline, but the long-term story i'm still sticking with it. oil is still, well, let's say, worth something. there's much more "mad money" ahead, this market may be driving you to drink, but i have a stock that can d

transocean, the offshore oil rig giant down 36%. newfield exploration and southwestern energy each off 34%. >>> the cost of fuel, of course, one of the biggest expenses for airline, so when fuel prices decline, it's generally good news for carriers and their shareholders. here's how some of the biggest airline fared today. united up 4%, jetblue higher by 1%, american, delta and southwest all fractionally higher. >>> meanwhile, opec will likely keep production levels right where they are. reuters reports say a senior oil official from iran says the oil cartel is not likely to lower its production ceiling at its next meeting in november. >> anthony chan joins us to talk about what lower oil prices mean for the economy. okay, anthony, you've heard the conversation. there are two sides to this story. one is that low oil prices helps u.s. consumers. the other is that it hurts increasingly significant u.s. proders. on balance, is oil at $80 a barrel, at 75, at 70 a good thing for the american economy? >> well, remember, when oil prices co

. >> before we get on apple, before i brought it up, you held in the transocean company under the symbol rig, are you going to sell into this? >> i don't go into what i'm going to do with my portfolio. can you imagine it would be a stupid time for me to sell something that we're on the board of. we're on the board of that, and only be able to sell it when the windows open, i don't think the window is open. look, i don't want to get into my plans on different stocks, but sort of imagine that we're on the board and as far as i'm concerned, that means something. >> let's get back to apple. that's the main reason why you are here. you think the company is way undervalued. you might be right, but if you really believe that, if that is your conviction, carl, why aren't you buying more shares. kind of a logical question. you're not buying more shares but you want them to buy shares. >> first of all, you don't know i'm not buying more shares. >> you might be buying more shares. >> i told you, we don't go into what we do day to day and week to week, we own 53 million shares, charlie, and that's a

liz: transocean. >> not very good.balife, so far this year, horrendous, ackman is on the right side of that one. and the biggest one of all, i think is netflix. we should take a look at stock chart of netflix. this is fascinating he's taken a huge loss. netflix plunged more than 20%. liz: where did he buy it? i guess the question, i mean look at herbalife, hlf. up 10% today, but at $51. >> you know why it's up today? that analyst tim rehme went to another firm and initiated coverage and the stock is up on that. listen, i'm just saying that if you looked at the list of activist investors, they make a lot of noise. dan lobe is on the list, he's speaking at robin hood,ine horn, icahn, you wonder what would the activists be saying if they're playing it safe about their own activist record. i can't imagine they're doing that much better than the s&p this year. liz: wait, there are differented tos of success, you said his ebay-paypal one wasn't great. he did succeed in pushing them. >> theoretically there is a method to his

case in point is transocean. the stock right now yielding 10% as pe of 5.ow, those are questionable numbers whether earnings sustain that. but the stock has had more negative revisions 98% of the stocks in the s&p 1500 down. 35% in the last months and oil's been in free fall. they have issues with the gulf spill but, i mean, you have to ask yourself some point when's priced in at this point and we're now in a bear market in oil but the length, it's been about a year since oil peaked. average 20% decline in oil is 20 days and extended down trend and expect to see some sort of bounce and really help these oil companies so when they report on -- early november, it's going to be not a pretty number but, you know, it's a lot of this priced in. >> other one setting up for a surprise you say is lockheed? >> yeah. so industrials is another sector and analysts can't downgrade estimates fast enough. lockheed with 82% of the exposure in u.s. insulated from the international factor weighing on the stocks and it's a defense company and geopolitical atmosphere is not get

noble transocean. comments? stocks are down hard. oil keeps falling any reason to buy. >> i don't think so. it looks like it hasn't put in a bottom yet. there are quality names out there lying halliburton. it's down 61 and a half today. when bottom comes in i want to own halliburton. there is a lot more upside but right now why fight it? xle is going lower until i think oil puts in a bottom. >> i i think you have to buy these names very slowly. if you are an investor. and i think mike is right. it is probably not the worst of the trend just yet. but it doesn't matter. because when they turn you won't have a chance. some of these things will gap. >> we saw -- >> steel stocks. >> i like rig. and they are activists sniffing around and it is so hated. diamond offshore is also equally hated. >> activists have been in there and it hasn't done well. >> this is the worst stock there is on the s&p right now. diamond is the second worst. not a single analyst that call this is thing anything other than horrible names but at a certain point they

look at transocean. don't look at it.'s like watching criminal minds and watching the stalker. >> like indiana jones when they open the ark. keep your eyes shut. >> i don't want to see seed drills. you'll have nightmares. >> doing well today, autonation, carmax, gm. you mentioned buffet. why buy the fifth largest auto dealer if you thought autos were peaking? >> you have a 198-year perspective. i'm looking at what michelle caruso cabrera said. i'm thinking can we withstand that? warren buffett, what are you worried about that kind of stuff? go after good businesses. always if you are a billionaire, you can do it. a lot of our viewers are saying, i just lost $3,800 i didn't have. i think those people play a role. >> i did want to mention sears holdings. they came out with a press release talking about liquidity. announced their intent to conduct a rights offering. 47% of their 51% ownership of sears canada. it will provide $380 million u.s. dollars cash. they are talking about $1.5 billion they raised in various ways. whet

transocean down about 36%. so some big moves in the energy space, wilfred. >> absolutely.s that high iea report said yet, it's what is of a perfect storm for oil prices as excess demand and supply able to shrug off geopolitical concerns. could we see an uptick next month? will retail get a much needed lift from the biggest spending power? we want to hear from you on this. let us know if you're spending the cash, saving at the pump or perhaps weak oil prices are making no difference at all. slade tweeted in to say prices never really go down at the pump. prices are up 835% since 2008. there we go. if you want to join the conversation here on was, worldwide@cnbc.com or @cnbcwex. >>> moving on, it's been through weeks since the u.s. treasury department announced new rules to track crackdown on u.s. tap tax inversion deals. the impact is being felt as one big merger could fall apart. morgan brennan is at cnbc hq with more. >> abbvie is now reconsidering its $54 billion takeover of uk rival slier. that's putting it on track to be the biggest deal. the company says its board wil

there's transocean in positive territory.ite a move here. >> we were saying oil pushed energy stocks lower and the energy stocks are higher. exxon and chevron. >> in just a word, i mean, is this a good kind of rally or are we back to the bad old rally taking the fed coming out there with the dovish tone just to get us make up for what was going to be lost ground? >> it was a brilliant series of comments by the fed. they're concerned inflation is really low. they're concerned about the global economy was the real shock to me. i don't understand that. but they certainly said everything to make the market go up. >> has an impact on the u.s. they can't not take it into consideration. >> of course they have to take it into consideration, yeah. but it was the global comment that moved things. >> a big move it is. thank you very much here. 287 points higher now after yesterday's 272-point selloff with 10 minutes to go. >> they're buying, that's for sure. >>> coming up here, former defense secretary and cia director leon panetta maki

that's in the contract drilling industry here, transocean rigged the ticker there, and neighbors' industriesn 36.4 is 1. the emergency complex as a hole took a huge hit, but specifically, the part of the market hit the worst has been contract drilling, at least in that part of the industry group, and, joe, that's the reason why this energy tried is seen as huge for a lot of people. energy makes up 10%. >> a huge story that looking at the chart, we have no oil analysts left to book. >> well, if you book only the people calling for it to fall. >> no one call for that. no one left that can give us any insight because -- okay, so -- resuming the buy back? >> let's mention what's going on. hp resuming buy back and reiterating guidance for the next two quarters. >> looks like they suspended it. >> they had because of the bad news, they knew the spinoff, and now they are resuming it. it's a technical thing. they reiterating their guidance, which i think the market sees as positive. we'll see. >> all right k talk about oil, john is here to get his take on the dive in oil and impact on the energy com