transocean, driller, cutting dividend but it wasn't the big surprise.a dividend of $3. 15%, 16% dividend. absurd dividend. average dividend for the energy play is 3% 4%. conoco chevron, everybody defends numbers around 3% 4%. nobody defends dividend at 16%. that's a 3.1% dividend now in line with average. the problem is high dividends are colliding with high debt and they've got to figure out a way to get get down. they've got $10 billion in debt. they have $2.40 a share times 360 million shares, that's what they're going to save that's like $880 million they're going to save a year. you can go a long way towards paying down your debt. they want to maintain they're very high investment credit rating and that's the way to do it now. you can see the stock's down here. the stock was $40. now it's $18. but obviously, they've got to figure out a way to keep borrowing money cheap, maintaining investment grade credit the main thing. the ceo also leaving there take a look at most of the energy stocks on a mixed side today. some on the upside. now they've all mo

transocean. herbing lose, one of the big drillers. look at the moves. they too, bottomed several days ago. let's move on. base metals are strong. it's want just oil. copper bottomed several days ago, and it looks like it's trying to rally again here from the second day in a row. that means stocks like copper names like freeport mcmoran and southern copper also strong here. up 4% 5% 6%. when you are interested in this sue, there's an etf for that. you can buy the companies themselves but you can also buy the metals. the dbb has a huge volume today. on aluminum and zinc. these are futures contracts on the metals. there's an etf for that. dbb is the symbol. >> of course there's an etf for that. there's an etf for everything. >> up to you. >> terrible story to tell you. the islamic state hitting a new low. burning a captive jordanian pilot alive. amman javers has more. >> it's a gruesome video of the jordanian pilot in a cage being burned alive by isis forces. the u.s. intelligence community saying it's working now to verify that this video is accurate. jus

. >> out of transocean. >> but this is a winner.n wood, rig had a big move yesterday whether it was combination of short covering and/or the big four-day rally in crude oil. rig gave me a chance, judge, to take about $2 off the table from the beginning of the year through yesterday. so i did. on that one. and then i moved on today into alley which is the former gm ac, general motors finance corp for dealers as well as for consumers, new and used cars. i like this one. i know stef you like thin serve a lot of the financials i do too. not that i think rates are going to take off, judge, but these guys stand to benefit i think in a big way. we also had unusual activity in this so i sort of piggybacked on that to get into this when i took the money off the table in rig. >> i want to know when the genie will make a trade. >> you see that performance at the bottom. here's the tough thing for me i get caught up in the day-to-day trading, great example i bought morgan stanley yesterday. didn't do anything in the portfolio just because unfor

the ceo and president of transocean is announcing he will step down.e years, but he's going to step down effective today. the company's chairman is going to step in as the interim ceo. transocean has suffered as oil prices have declined over the last couple of months. breaking news coming in on a holiday, by the way. >>> well the players in the $22 billion toy industry are jockeying to see which products will find their way to store shelves for the next holiday season. adam shapiro is standing by at the north american international toy fair that's a happening in new york. what have you got this hour adam? is. >> you don't have to wait until the fall, this is coming from odyssey toys, it is a drone. anywhere from $100-$300 depending which drone you want. and here to talk about this from oddity soy -- odyssey toys in miami, florida, this is going to be on sale when? >> in april. this is a pre-production model but we expect it to be in stores at the end of april. >> for instance like a walmart or a target or specialty toy stores? >> you might see it in ta

they added transocean has high leverage levels and large cap-ex requirements, liz. about now could be great to be cozy in choice oat hotel, cozy in the stock. it is hitting 52-week high today, after reporting better-than-expected earnings. the stock, up more than 34% year-over-year. so what is behind its record-setting results? what is the hotel chain's outlook for the current quarter? joining me now in fox business exclusive. we have choice hotels executive vice president and chief operating officer. not easy, at a time like this when the economy is slightly murky. to get these kinds of numbers but you far outpaced both earnings per share and revenue. if you could say one thing at that really drove numbers this time around, what was it, patrick? >> really consumer demand for our product segment. we really saw consumers in the mid, moderate tier come back in droves. hiring going on, employment levels come back to where it is really, great time for mid scale travelers to come back, get on the road again. they're being hired in for jobs. when you have money in your po

>> i don't want people to buy transocean, ensco and i remember the days of '82 and '84 and a lot of companies went under and had to recapitalize and recapitalize. that's the riskiest part of the business. we would rather have a stable dividend payer than the risky part. >> we haven't seen that much pain and it's been almost five months and you know what? i'm thinking maybe we won't. much more "mad money" ahead including my exclusive with a bee biotech. should you get a dose? the market has ups and downs but i'll help you dominate any landscape when i help you play yes, i am diversified and we'll melt some snow with the lama edition of the lightning round. stick with cramer. >>> tomorrow kick off the trading day with "squawk on the street" live from post nine. >> in my lifetime i want to run twitter and google and i guarantee higher eps. [ laughter ] >> really? >> yes, let me run those companies it all starts at 9:00 a.m. eastern. ♪ grind virtually any kind of food waste into an unending source of electrical power for a city? when emerson takes up the challenge it's never been done before simp

transocean, conocophillips, exxonmobil, they all traded down. is bad for energy is good for airlines, no exception. >> good for airlines. they were all up today. [closing bell ringing] delta with a new partnership with starbucks, david. david: meanwhile the bells ring on wall street. very close to a flat day for the dow. it managed to eke out green arrows but just by a nose. again three stocks keep in mind, walt disney, visa, home depot, they accounted for 90% of the gain when the market was up. without those dow would be in the red. most indices are in the red, by a half percent. "after the bell" starts right now. >> before we get into the meat what happened with today's markets let's head to omaha, nebraska, where liz finished an

some of the other big movers including transocean and apache have been great reformsers.nteresting to see how with the strike we've been seeing with the united steelworkers union and the like how that may affect gasoline prices on the rise as well. so there is certainly a lot all intertwined together. energy a bright spot here on wall street. back to you. melissa: nicole, thank you so much. a few stories on our radar. netflix is raising a billion dollars as it fights to keep the top spot in the video streaming market. part of the debt will fund deals for content and potential acquisitions. >>> in d.c. a would-be white house intruder is in custody after trying to scale a bike rack. the temporary bike rack was in front of the main fence but the man didn't even get that far before secret service agents arrested him. >> well super bowl monday and haven't you heard nearly 1 1/2 million people are calling out sick the day after the super bowl. i want to hear from you. what are craziest excuses for skipping work? maybe you used them yourself. follow me on twitter@melissa francis

. >> caller: having a question about transocean. what's your future out look for this company based on the low prices of the oil? >> well it was smart they preserved capital. that's why it didn't go down. it's a big dividend cut. i like that the new chairman is pete miller. but at the same time if you want to own, you have to own quality. that means halliburton. you know i'm not one for fashion although i hear this boot is making waves on the style pages. but when it comes to wall street it pays to follow the trend. i think what's hot will continue to strut it's stuff. waste management up 5% today. leading the s&p but can it keep turning garbage into gains? and if you listen to the haters you likely missed a huge move in a pair of underrated stocks i have been pushing for a long time. i'll unveil them and call out the analysts that got it wrong. plus ethan allen with a weak earnings report. i'll see if they can redecorate the balance sheet when i talk to the ceo. stick with cramer. >> don't miss a second of "mad money" follow @jimcr

these are one quarter behib tran hibhibnd transocean.sv deck the amount of rigs coming on are incredible. this directly jives with what we thought was going to be petrobras and pamex huge drilling programs, no. >> fleet utilization, 72. year ago 83. >> it's going so much lower. look some numbers coming out about onshore drilling. let's get to it. i mean how many equity offerings can you have. noble, very good announced big equity offering. how come -- planes all american big equity offering. nfx, 18 million coming at you. if you want to buy oil companies, newfield exploration, 18 million. discount. nice discount. cleaning up balance sheet, maybe setting the tone for acquisition acquisitions. i thought the balance sheet was pretty darn good. >> we haven't gotten to the morgan stanley downgrade of abercrombie & fitch underweight. international business seven quarters of minus double digit comps, forex getting worse. but broadly teen retailing in structural decline. >> yeah. you know i read the piece. i think abercrombie could go down more.

it is not transocean off shore anymore. they cut their dividend by 80%. your first hint?om. the answer when "power lunch" returns. he . >> oh yes! yes! yes! we got it baby! we got it! oh, again. again. that's a two-fer. that's a two-fer, baby! yes! yes! again. that's a three -- you got to be kidding me. you got to be kidding me. >> three, baby in ten minutes. >> oh my god. >> how awesome is it to see somebody who really dig theirs job. that is the weather channel's jim cantore going absolutely nuts after he and his crew captured not one, not two, but three instances of so-called thunder snow but on camera. now, thunder snow is a rare weather event that happens when thunder and lightning are seen and heard during a snowstorm. check out this video from hampton, virginia. notice and ice-covered roads. wow. scary stuff. forcing the suv to skid out of control. slamming into a sedan. nobody was hurt. virginia is one of several southern states getting hammered with a massive winter storm. keep in mind that is near the beach in virginia. that's near norfolk and virginia beach. >>

two drillers, transocean and sea drill beating earnings estimates, but both getting hit in today's trade. a $900 million trade on low demand. >> get it out of your system. >> everybody good? >> the quarter that should have been good enough to get a relief rally in the stock, you didn't get it. the sea drill quarter wasn't great. i still think if you're looking for a trade in one of these, you've got to earn seadrill. >> even after the outperformance versus some of the other drillers in the past month? >> drirt cheap. it seems to be pricing in every aspect. including the petro bus that came out. >> if you look at the ultra deep water riggs, there's zero demand for these things.s, there's zer for these things. the cycle is so long that i think you're looking at a couple years before you see anything. meanwhile, both of these companies but rig have cash flow issues. that's why the stock to me is a don't touch. >> what about other consumer names that are ripe for a rally? tim seymour lays out one trade he's betting on. plus, the long-awaited third season of "house of cards" hitting netflix t

and after the brands ell brands and transocean will be posting results.bers the second they hit the tape and the analysis and the market response on the second our of "the closing bell." you're watching cnbc first in business worldwide. diarrhea, gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against these occasional digestive issues... with 3 types of good bacteria. live the regular life. phillips' there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood

transocean offshore, 17%, their competitor c-drill. windstream, win, 11.7% dividend yield.their competitors have cut dividends as well. the next three are oil or mining related, ensco, noble, 8.7% yield. >> that was a company we were talking about yesterday. let's round all this out with oil. it's 5u7.5% since monday. oil itself is giving up yesterday's gains today. let's bring in cnbc analyst john kilgore. i have whiplash. the inventory data that came out today, so bearish. it's so bearish for oil. what did you make of it? >> we saw rises in the refined product categories like gasoline and diesel fuel which we haven't seen the past several weeks. they were a bright spot supportive of the complex. this volatility is such when you get to the low levels that we got earlier in the week, you need the story to continue to play out. you need another log for the fire as i like to say. when you don't get it, up we go and up we went. there are shorts in there that lack conviction, came late to the party. got scared out, technical trading kicked in. >> it goes so much further than fr

steve newman stepped down as president and ceo of the company transocean. offshore drilling company. it has been slammed in recent months by those falling oil prices. newman is the highest-profile departure in the industry so far. energy companies across the board have slashed spending and laid off workers. >>> white americans have 12 times the wealth of black americans. according to a new report from the urban institute, the typical white family has about $134,000 in family wealth. that compares to $11,000 for black families $14,000 for hispanic families. that gap has grown considerably in just the last few decades. one reason the earnings gap makes it harder for blacks and hispanics to own homes and save for retirement. >>> it's the top of the hour. "early start" continues right now. >>> breaking overnight, isis repelled after launching an intense attack near a major city in iraq. what happens if they strike again? a live report in moments. >>> new details this morning about the accused gunman in the copenhagen terror attacks. what officials now say about

below $50 a barrel, and that group has been the real worst group of the day, chevron, exxon, transoceanose names under pressure, liz. so watching some of these key movers going into the closing bell. back to you. liz: thank you very much, nicole petallides. arguably the most anticipated fight in modern times is finally on. after six years -- six years of negotiations, that's one hell of a long negotiation -- it is confirmed now that floyd mayweather may face manny pacquiao in las vegas on may 2nd. it's a fight that unites two of the biggest names in boxing but also two of biggest names in cable tv. the last time showtime and hbo struck such a deal was 13 years ago when prize money and viewership just a fraction of what it is today. wait until you hear how much now. how many hundreds of millions will the fight of the century produce? joining me now, intersports founder and ceo charlie besser, sports impact's she owe patrick rishe, and boxing analyst teddy atlas. teddy, you have watched these two, pacquiao and, of course, mayweather, fight and argue about whether this deal would happen. c

1xw denbury up 30%, neighbors 20%, transocean 20, murphy 15, cameron, range, newfield, noble, double gainers over the last three days alone? >> yeah. those are high beta stocks. i think in the short term yes, but if you want to be an investor there's more room to run. in the short term hard to say they're going up tomorrow after oil is going back around $60 a barrel and that psychologically will continue to propel the stocks. another important point is, we haven't seen job declines with oil at $45 a barrel. the thing i was most worried about. outside of the oil patch the rest -- >> not yet. >> you say yet but -- >> capex cuts, dividend cuts, maybe employment cuts. >> in decline since october, september in the oil price -- oil market and still haven't seen decline in jobs. adp today, 213,000, it's making me feel that all those job gains the last year were not just oil. >> you're a guy that went all-in for the most part in energy with your portfolio. what about some of these names as i mentioned? the big gainers? >> short-term trades i think you could take profits on some of these name

first up is transocean. falling after reporting the ceo is stepping down. cutting their dividend stef by 80%. stock has been in a world of hurt for a while. >> down 50% over the last year. a lot of people expecting this. i think the ceo's departure is a net positive to get fresh eyes on the company. the dividend was kind of expected. i would just say be careful. because they are free cash flow negative and have to fund over a billion to $2 billion in new builds over the next two years. they need the free cash flow to improve. with oil here it's going to be challenging. >> nili, starwood hotel ceo resigning. >> that's right. the ceo has resigned. the stock is reacting positively today. there's a new interim ceo something in. there have been missteps here. they made an expansion into international at a time when international wasn't paying off. the stock has gone nowhere over the past year up about 3%. and still, we see starwood trading pretty expensively at 28 times earnings. so at matarin we're negative on this one. >> gt tire. >> the materials as raw mater

. >> i think the one interesting thing we saw in rig, transocean just last week, not seadrill, just for a moment, was some monster buying out in march calls. looking for upside. buying the march 22s. >> how much? >> stock trade -- like over $20,000. i mean, these are some very large numbers. actually i took on a position last friday based upon some of that unusual activity we'd seen. just because it was big enough that -- rig has been pounded enough that even on this news today, it stopped going down. it dropped initially. finished basically call it flat at the end of the day. i think that's a great opportunity. i think it's going higher. >> flat good for rig in light of the news? >> i think it's okay for rig. i think it's better for seadrill. i mean, given the two, we know that something -- when a ceo resigns on sunday night at 8:00, as guy said, there's an issue there. there's something going on where there's smoke there's fire. these two stocks to me look exactly the same. why wouldn't i just buy seadrill here for a trade only, though? i'm not convinced this oil rally is going to las

eog, halliburton, transocean, den berry, go down the list. >> i think we have a saying where i come from, only price past pays. one of the reasons it makes sense to pay attention to technical analysis than storytelling when in the midst of an asset class like crude oil you've get a signal that the story is too well-known and is already priced in. by the way, tell you the same thing about greece, grek, the etf of greek stocks up 25% in the last week. back to oil, you had this moment in the middle of december, where large cap oil stocks stopped going down along with the price of crude. that's why i bought the xle on that day. it's up about 10 straight dollars since then. i intend to hold it. i have no ability to tell you what saudi arabia is going to do, what the shale players are going to do. i don't think anyone does. when you see the stocks diverge from the underlying commodity, often times that could signal that all of the horrible news that you're hearing, is fairly priced in. now you look at the tape, you see the xle has recaptured positive on year, so it's actually up for 2015, don'

transocean ceo stepping down.ng giant also slashing its dividend dealing with falling crude prices. and nordstrom underweight. and then there's macy's at underweight. the largest investor wants the ceo ousted at tempur sealy. and then imax downgraded to hold from buy at canaccord. i think they're doing just fine. at least in the sorkin household. >> macy's got my attention more than the other calls. i think that's interesting. >> because everyone loves macy's. >> with good reason right? they've done well. lundgren is -- >> yeah. >> it's not so often you see an underweight on that. >> by the way, i don't think that was a -- i saw like two from the report. i think that was more of a call on just how much the stock valuation was than a performance issue. >> if you look at a couple years, it probably would be. >>> have you seen this video? check out this close call on tape. a reporter for an nbc affiliate. there it is. the camera was rolling when all of a sudden on a snowy road an suv careened out of control, crashed

transocean one of the world's largest offshore drilling players is in focus after it cut it's dividendby 80% sending shares lower highlighting the negative impact of lower oil prices on its business. but that wasn't the only announcement made. steven that lead the company over five years is stepping down as chief executive. shares down about 56% over the past one year. >> and despite that performance, that announcement came as a big, surprise. now let's move from offshore drilling to shipping and the u.s. government will try to intervene in the dispute between the shippers and union workers to more than two dozen west coast ports to result months of contentious talks. let's get out to meg with the full story. >> good morning, that's right. president obama is sending one of his top cabinet officials to the west coast today following a partial shutdown at 29 ports over the holiday weekend. tom perez will fly to fransisco to join in talks. reports from southern california to seattle. neither side has spoken since agreeing on friday to honor a news black out requested by a federal mediator

another very well watched investor took new stakes in transocean but did dump google apple, intel, walmart and netflix. the total value of his stock holdings fell. take a look at how some of the stocks are trading. let's take a look at apple. it hit an all time high yesterday. up about 20% and that rally could continue. it's trading higher in frankfurt by 1%. >> let's remind you of the headlines. the nasdaq takes aim at 5k. the latest sec filings show warren buffet dumped oil stocks in the 4th quarter and ukraine's president confirms that troops are being withdrawn from the strategic town. we'll be back in a couple of minutes. >>> ukraine's president is currently with drawing troops from the strategic town in the east of the country. speaking with reporters it's already 80% complete. the russian foreign minister says they agreed ceasefire is currently being reserved in all front line areas. >> now actions by russian backed separatists are being condemned. the eu's foreign policy chief says they stand ready to take appropriate action if fighting in the region continues. the german governmen

exploration, production stock put up big names, apache drillers, down like transocean as well.ut that's the big mover on downside. heartened about kb homes commentary. did you see what they said? orders year-to-date up 25 percent, optimistic about the -- i know weather was severe last year but this is better than expected. we've had good news from the home building companies. the low rates, stronger jobs numbers, home sales in december pretty good overall. bad news market knows this. if you look at etf for home builders, itb, we're near the highest levels since 2007. prices are high. this isn't the case with kb home. remember, they cut margin guidance because of higher costs a while ago. they've underperformed home builders for a while. see if that's less than an issue. owings corning, had a good report. surprised me because roofing business had been weak. fiberglass installation excellent, up 5%. if they can get the roofing business going better the stock would be on fire. ipo business switch gears, a horribly slow year so far but starting to heat up. tonight one of the first

ownership of transocean.ship of chesapeake, which by the way, chesapeake down sharply yesterday. was it yesterday? >> i mean doing 6 million shares, it probably goes up. the companies have to raise capital. every one of them. pure permian. >> apple has been the apple of mr. icahn's eye, up 73% in the last year. >> we have a date for the watch now? >> march 9th, monday. an event, spring forward as the invitation said. >> yesterday, ginni rometty did more for apple stock than ibm when she talked about -- >> you did more for apple. they were deep sixing it until you brought it up. what she had to say about the partnership announced last july to focus on mobility and the enterprise. >> you're going to see these apps. i couldn't be happier, i know i would speak for tim as well about where we respect by the end of the quarter, first 25 apps out, first 12 out already, next 25. to me they really highlight what this promise of they the gold stander for consume ability, us the gold standard for the enterprise. >> there

. >> as far as leaders today, it's transocean, eog, anadarko halliburton. >> 50 was the level where peopleeel like it's bottom. watch eog that had the best product profile. anadarko conference call didn't matter whether they had a big miss. people want to own the group. when they want to own the group, there's a lot of fire power on the sideline. i think it's kind of -- it's a little counterintuitive the majors are saying there's no bottom. at the same time look at declines in the stocks. declines have been stunning. and they're not going under, these guys that they're buying. they're not. >> airlines getting a taste of it another day here. >> got to be careful with those because they didn't go up when they reported last quarters and now they got the fuel costs, hedges are off, really -- look very inspectancive. american air at six times earnings. look at big, independent oil companies not doing badly, and i think, well they've been cut in half, do some buying. >> yeah. >> chevron reported a not great quarter and it's now up seven straight points. what does it tell you? people want to own

transocean, noble corp among the leaders. we're going to end here on mcdonald's. lower after the biggest restaurant company in the world said that comparable store sales globally fell more than analyst expectations. weakness in asia contributed to the sales slowdown. however in the u.s. the sales managed a slight increase. back over to you guys. >> that's a point. thank you, dominick. mcdonald's tackling its company turn around from all different angles. >> from the pay with lovin campaign to cutting out menu items. what strategy will forkwork for us. david david katz and scott rothboard. david, to you first, do you think this story is capable of a turnaround? >> absolutely. we think it's an evolving story. the board new made major problems. any knew the ceo was not getting the job done. they brought in a new ceo who starts march 1st. we think he has a record of success. he confronted similar problems with mcdonald's out of great britain, was able to turn it around. we think he's going to revitalize the franchise. in the meantime you're getting a 3.7% dividend yie

. >> on the oil front finally, how about soros going the other way, betting on devon and transocean?> you know what? devon, another one of the companies, they're doing okay. look, we go -- there's a company called rice energy that announced this morning and they reported a tremendous tremendous expansion in production and predicting big numbers for 2015 and cutting their capital expenditures dramatically. a lot of oil companies have that profile. they've cut back cost. i get it no one wants to call the bottom and devon has fallen precipitously. i think the problem is if you're at home every time that the futures tick down off of an inventory, you'll see, where's buffett now? where is soros now? >> i do want to make a point on soros versus buffett, buffett when you hear berkshire bought or sold he's close to the portfolio. soros' name is on the door but doing different things and not as close to the portfolio and making decisions. that is not george soros making those decisions. >> right. >> those are people who work for him and his family office making those decisions. i think it's a