. >> and the wti i think is supply and demand over there being so weak. it's now, what, two bucks which i don't think we've seen it here in -- >> which is amazing. >> the move in the spread at one point was $7. >> there was a point when brent wti was over two bucks. i don't know what it means in term of the macroeconomics story, but it clearly caught a lot of people off guard. >> let's take a look at shares of gopro. this after a downgrade. stock hitting a record high today before pulling back later on in the session. let's bring it in charlie henderson. he has a neutral rating. a big market day like today and minus the moves we saw in gopro, gopro was almost leak a saike a haven in the markets. we look at it as a momentum stock. barometer for the markets and trading. where go ydo you see gopro head? >> i'm not the expert to be honest given the fact i downgraded it $40ing a go. it's taken on a mind of its own. . it's a pure momentum stock. fundamentals are good, but pretty fast move in general off of a move in the fundamentals that probably hapts been as

wti crude trading at the lowest level since june 2012. brent settles down by 1.5%. now, fears over a broader sell-off, disappointing data out of the united states, that resulted in the vix trading above 30, indicating that there is a lot of fear out there. >> seema, thank you. a lot of volatility. what is driving that volatility? joining us now, matthew hensley. there's lots of possible fears and factors out there. yesterday, what was it? >> i think investors had quite a few of their core beliefs shaken in recent weeks. the fed having our back regardless of the economic environment, that's been challenged. members of the federal reserve talk about raising rates, not raising rates. so people become uncertain about the trajectory there. >> emerging markets are flowing not least of all because rates are rising, but we all thought the u.s. economy was the one rock which we as global investors could rely on. yesterday with the data that we saw, that was shaken. >> does that beg the question whether the u.s. economy can continue to strengthen despite global growth fears?

we did analysis today that indicates that even if the price of wti were at 70 the u.s.ould still be increasing crude production. i think if the middle east guys have this in mind they are going to be surprised at the gritty robustness of the u.s. production. >> a question about the liquidation selling on the opening that we've all been talking about and i'm sure on your desk. quite the opposite of the bonds, where everybody was bearish on the bonds, in crude oil they were holding on to these things and as it drove down to basically break 80 here there was forced liquidation selling, just no doubt about it that made that move possible yesterday. do you see more of that? or has that cleared a lot of the longs that were just basically holding onto the last minute? >> i think there are go things that work. one of the longs who are getting short if you look at what happened in ice trading, ice brent and wti. the nymex --. the other thing that happened is remember there were a lot of hedges in the market. producers trying to lock in 85 or $80 strike prices. so when you get a

we saw the wti spread, the european grade spread come, in because they thought the u.s. was going to be the only demand game in town. liz: whoa, whoa, let me just clarify, that you are so right, i saw that yesterday and said i'm not going to bring it up. only a $4 differential which is by the way, nothing. we've seen 11, 12, 13 bucks earlier this year. right now $3. they're closing that gap. what should that mean to people watching? >> means that the u.s. is establishing itself as an energy consuming power once again. showing our economy has taken hold. i wouldn't be surprised to see the day we get back to the old days of the wti spread being the world's benchmark again. because of u.s. oil production, the game has changed. the u.s. is the place where you want to judge the global economy. we seem to lose that over the last couple years, coming back and coming back because of the u.s. oil producer. wti is going to establish itself and trade premium to brent crude especially because we're seeing a lot of production here in the u.s., and less demand overseas. liz: too much,

it's going to be the wti equivalent of $70, $80 a barrel. that gives us in the 60 handle that's going to have to be that low. the profitability and rrns on oil here are very good in the u.s. it's going to take a good 10 to 15 to 20 more bucks before we see a serious scaleback. >> that would be just here. what about more global -- how sdlong it take for that marginal cost, to get down to that marginal cost where supply is less and then you get back in balance? >> we can analyze the market. it's a free market. what we said about the market has been correct. where we've been wrong is brent. brent we had libya, saudi. those are not marginal supply cost type questions. whether or not libya is back in or not, whether the saudis cut or not, that's totally -- it's got nothing to do with the price. the issue of high break veterans for some of these countries. the fear saudi wants to hurt the russians who are at a very high break even. we don't buy the idea saudi uses oil as a weapon. they've done that in the past. we think they act conservatively. th

goldman sachs downgraded the price reductions for wti and brent.new jersey, have seen the price of oil come down. if you are paying premium gas, it is just over three dollars. but regular is now below three dollars. apparently, shale oil drilling is helping to lower the price of regular gasoline. >> it is easier to turn shale oil into lower grades of gasoline than it is higher grades, which is why you have the differential. >> what does this mean for it elon musk in the future of tesla cars. coming up, our countdown continues with autonation ceo michael jackson. ♪ >> we are counting down to the opening bell. it is time to our deep dive into autonation, the largest new and used auto retailer in the u.s. with operations in 15 states. they just reported earnings, beating expectations, expanding their share buyback program. ceo michael jackson is with us this morning. great to see you. good morning. we had an absolutely brilliant quarter. all-time record, best ever. $.90 earnings per share, a 20% increase over prior year, improving all aspects of the b

i want to point out wti is about 3% on the week. the last three months wti and brent both down 20%. this is still an oversupply story at this point. that is why we are not moving materially higher. also still plagued by the stronger dollar and, of course, traders are saying some of the fluctuations we are seeing are buying the dips here. i do want to point out this is great news for consumers. aaa saying the national price for a gallon of regular is $3.14 down 23 cents in just one month. you have a third of the states in the united states under $3 a gallon. when people are filling up at the pump they are paying less for their gas and economists think that will trickle into the rest of the economy and other spending. >>> yesterday i spotted something beautiful. it wasn't a lepreconriding a unicorn over a rainbow but it was gasoline. new face to cnbc, our sincere thank you for apologies for the next interview. thank you for joining us. how low do you see oil prices go? all of america if not talking about ebola are aflutter about gas p

we are seeing wti down more than 3% at this point. there are a couple of factors weighing on prices today. the first would be that iea report revising demand forecasts. of course, this is the first concrete signal that we have a problem with demand in the market place. before it was just conjecture. iea cutting 2014 demand growth by 200,000 barrels a day and for 2015 revising down. couple that with the fact that there are no suppliers in the market place domestically or internationally that said they are making moves to cut supply and you have a market place that is not balanced. also interesting to note, prince alid out of saudi arabia urging oil minister to alleviate the substantial negative implications on the saudi budget and economy due to the big drop in oil prices. while they are saying this is not a problem we are getting a different view on that now. reports indicate that saudi arabia's break even is $86 a barrel. that is not real true break even. it only costs about $5 to $10 to get the oil out of the ground. the rest of the

wti and brent. >> that's one. the other the potential we're going to export oil. these guys make money hand over fist if any of those things. they make money hand over fist if the spread goes away, make money hand over fist if you export oil. the american refiner complex has cut its costs dramatically. upgraded all of their plants and really minting money right now. >> do you agree with that? >> i don't. i would not put money in a refiner right now and i think i shared with you last week the energy lift we had i sold into that because i believed that people are stuck long energy equities right now. i put the money into health care and happy i did it. >> i'll tell you, we get the look all the refiners are reporting with the exception of valero and examine back next week. >> okay. >> all right. >> i thought we were going to have a little fight. >> look, i mean the score is about to come up this week. >> i can only instigate so much. >> and if you want to instigate something else over the weekend i thought about this and reading the goldman sachs note, why would you

we had shortage of supply in wti crude. no shortage out of shale plants in the ground. that's not what is happening. what is happening the pipes are getting reloaded and supply in cushing, oklahoma where wti storage is low. but that supply will fill back up. that spread will widen out. like you mentioned that will be good for the consumer. right now that spread is tight. it will correct itself. that will be good for the consumer, good for equities in the fourth quarter. david: interesting. liz: is it too early to bring up christmas? brent, i've got to bring it up. you were say there were good winds coming down and, economically, certainly, but do you buy in before the holiday season and what are you expecting there? >> oh, i think it is fourth quarter will be great. i think christmas will be a great christmas. i was in costco last week and saw santa claus and snowman. they're starting already. liz: i'm not guilty here? >> you're not guilty at awe, liz. you have companies, oil prices are down. they're down low. gas prices are low, good for consumer. these will rise, i'm

what is that number four wti? is hard to say because you have these biplanes coming up but i think $70 to $75 a barrel is a number you can start to see the market clearing out pretty nicely. it is kind of a contained market. debbie ti --wti is landlocked. can't get to the world markets. it is a little hard to say but i think $75 is a good level. >> fabulous. thank you for your research. smart, smart, smart. with bank ofnch is america. >> kicking into high gear with jpmorgan releasing his results early. which industry or industries confronting the most of the overall net income? we will show you in our single best chart, next. ♪ >> good morning, "bloomberg surveillance." markets and to moral -- markets in turmoil, new york isn't. gorgeous. the yankees are in the playoffs. wait, they are not. sorry. got that wrong. >> the jets aren't going to the playoffs, either. >> the orioles, the royals, the giants and the cardinals. nevertheless, it is beautiful in new york. scarlet, yes some breaking news. this is a big announ

>> well, i think when you're looking at it, look at wti specifically and look at it fundame fundamental. saudi arabia' coming to the party saying there's so much supply globally we can't prop the price up artificially. short of a global event, the prices come down and might as well drop it. you have to look at wti and that magic number is somewhere around $68 to $70 a barrel seeing significant supplies come off the market in terms of landlocked crude oil and start to worry of energy independence and all the infrastructure that's been put in place in the u.s. to get this stuff out of the ground and to get it down to the gulf. that's where you're starting to have problems. >> peter, $68 to $70 resting here? >> i think the only thing that can save it is that expensive production coming off the market and with there being les production. if you go to an old dog like me around for 25 years, i've seen $9 crude. but also remember the dollar hit in 2008, we had $140 crude oil. where did we correct back to when the dollar came back? $33. so you have to be very careful in thinking that $82 is a c

. >>> oil extends its losses with wti hovering at $80 a barrel, its lowest level since july 2012. >>> russian prime minister dimitry medvedev says sanctions against russia have damaged international relations. speaking exclusively to cnbc, he says moscow has not closed door to anyone, but a reset with the u.s. is not possible right now. >> no, of course not. it's absolutely impossible, let's be clear. we did not come up with these sanctions, let's be clear. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> shares in shire are plunging at the bottom of the ftse after abvie said it would reconsider its takeover. you can see it's down 26%. shire has urged the u.s. giant to proceed with the deal saying the group could face a 1.6 billion if it walks away. the news is looking at overtakover targets circled by firms looking to take advantage of stable tax arrangements in the uk. as tra and smith both down 4%. catherine, a very big move for shire off the back of this. >> absolutely. despite shire insisting that this deal isn't done yet, t

wti below 80 still, 79.85.t catalyst, goldman sachs bring doupg their forecast for brent. >> 75 for the first quarter, they say. 800,000 barrels of oil need to be taken off the market next year in order to balance it for 2016, according to goldman and believe swing producers will be shale operator here this in country rather than opec, an interesting development. >> later in the hour, we'll talk about how those low gas prices are influencing. >> in the meantime, facebook, twitter, linkedin reporting earnings following an earnings beat from yelp last week but two investors punished for low forecast. mark mahaney, at rbc capital markets and joins us. >> good morning. >> it's twitter tonight, it's facebook tomorrow and linkedin in later in the week. i see from the notes, and you have outperform rating on all of them. you're an optimistic guy. it's actually twitter that you think has the most potential upside for people here as a stock, 30%, i think, is the call from where trading now? >> yes. i would say it has th

what happens if wti goes overbrand? >> nothing out of the ordinary. we're going to be exporting soon anyway. it's not a surprise to me here. so again, we're talking about markets that have been trending this way. it's -- remember, many years ago, it was the other way around. so we're just now getting back to the parity level. we'll see. there will be a battle at parity soon. >> reporter: we're following it all. for now, guys, back to you. >> jackie, thank you very much. >>> to jon fortt at an apple product event, tim cook has taken the stage. jon? >> reporter: that's right, tyler. and the most important thing out of this event so far is an update on the iphone, tyler. tim cook taking the stage talking about the big retail moment that the debut of the iphone 6 and 6 plus were says. and this isn't surprising, that it's the fastest selling iphone ever. but take this quote. he says buy a lot, a whole lot. that was pointing forward to the launch in china which is coming up on all three major carriers, he says. it's ready for 4g. so he's excited about that.

the wti brent spread, not necessarily the flat price of brent or wti.hen you compare the two, when that spread is normalized, oil floats around the world in a market-based sort of way. so when that spread tightens up, when it is as tight as $1.50 at one point, normally it is in the range of $5 to $7.50. when it normalizes, the oil prices can sustain and take effect. when you have that spread tight anything, the physical oil guys have problems moving oil because that spread is where everything globally is priced on. >> that was my next question. when do you think we'll see oil prices cut production and capital expenditure because of weak oil prices? >> well, you would really only be seeing that in some of the fringe opec nations like iran and to a certain degree even russia who is not in opec obviously, but you won't see that in the u.s. for quite a while. one of the things people don't understand is the break even level of $65 in terms of the cost per barrel is really widespread. there's shale deposits as low as $45 a barrel or $35. and then there are s

and the flip of brent and wti right now. brent is ahead yet. >> right squ. >> with what's going on over there. it should be behind by 2 or 3 dollars. not ahead. >> if we could export it would be better. >> we're exporting 4 million barrel a day of what the consumer needs, that's gasoline and diesel. i don't think anybody realizes that. i don't see cars running around burning crude oil or jet airplanes. >> right. herald hamm. he did say we could slow things down but obviously he thinks oil is not crashing here. mad money back after the break. go ahead and put your bag right here. have a nice flight! traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing if we can't get your things there too. it's no wonder more people choose delta than any other airline. the all new, head turning cadillac ats coupe. it's irresistible. ♪ >>> this whole market is about marge right now. the price of crude crushed over the

but even if we, in our model we are assuming $90 brent, $70 wti next year. are still trading below their ten-year average pe. the multiple come preciopression its course. obviously, oil will stay volatile. these are two defensive names with improving free cash flow characteristics, which means more dividends and more share buyback over time. >> exxon specifically, what did we learn about the plans to drill in the arctic waters off russia impacted by u.s. sanctions there? what does that mean for exxon? >> it means virtually nothing in the short run. the arctic would not generate any commercial production until the next decade. it's one of these extremely long-term exploration projects. it just would not move the needle any time soon. as it stands, clearly, there are technology transfer restrictions on arctic as well as shale drilling in russia. exxon is covered by those. this has zero impact on earnings estimates. >> what kind of returns are they getting at oil at $80 a barrel? what does that do? >> like i said, it's going to reduce profitability across the b

look at brent oh wti. it tells you there is no demand for oil overseas and a lot of things going on. europe doesn't look very good economically. and there is a connection. the world is connected. but, you know, until we put the fear of god in u.s. stock ownership, you know, the market really seems to be hanging in there. i mean. >> and that poses -- layer, that's the ultimate question then. the market continues to hang in there in the face of so many potential obstacles and people continue, guy, rob, to buy these tips. >> but the reason is economics growth is delivering and earnings growth is delivering. all right? it didn't in the first part of the year. economic growth didn't deliver in q one. earnings did. they both did in q two. q three is setting up where expectations are low for earnings. so earnings growth is going to deliver. the data is going to continue to deliver on the economic front. and you don't see the same things in some of the other countri countries. we were early on japan, very early on

wti closing settling for the first time in 18 months or so. brent is where you are seeing the pain.y much in correction territory. $92 the official price but we are just about there in terms of the decline from the highs last this supply glut that people are seeing in the face of weak demand with weakness in europe and even here we're not seeing as big of a pick-up in demand and seeing a huge decline in brent because the saudis this week rather than announcing to cut production did not. they cut their prices and that has people more concerned about op opec. analysts are saying watch brent at $90 moving forward here because that's where the pain is really going to hit for opec and then likely need to call for an emergency meeting to cut production. that's bleeding into the decline in gasoline futures. worst performer this year and in bear market territory from the highs we saw last june. the upside, the good side of that, we are seeing prices below $3 a gallon in some 26 states in cities like toms river, new jersey, we're down to like $2.95 and lower. >> let's hope so. viewers, if yo

we're looking at the graph of wti there. we'll keep a close eye on share of airlines, shipping, utilities and resource and commodity related shares. and analyst was telling me we need to watch out for how falling oil prices will affect inflation. we're looking at brent crude oil which has fallen closer to 25%. inflation is a key factor for central banks. let's not forget the u.s. federal reserve and bank of japan will be holding policy meetings this week, so big focus on what central banks do. also, some concern ahead of the fed and policy decisions will be keeping an eye out for earnings as well. now, canon came out with earnings after the markets closed yesterday. the camera maker reported earnings which actually fell or little bit below estimates at its july to september profits fell, but it did raise full year profit forecast on the weaker yen. so we'll watch out for that as well. >> as you mentioned, investors always keep a close eye on what policymakers have to say. where the is the dollar trading against the yen ahead

wti moving to its two-year low yesterday. gold, interestingly just off the day, but that doesn't tell the full story. it's been rallying over the last week, a bit of a safe haven trade. 1217.8. and the first in 13 weeks not to have games, in fact, it's bounced back a little bit today. overall, the dollar has come off its highs. the euro dollar is 126.65. and against the pound 1.658. let's check on what's happened in asia overnight. standing by in significant ngap. >> hi, wilfred. you look at the sacks 200. that's hurting the producers. the other factor on the commodity side, china has imposed higher on coal. and we have seen a degree of composure in the yen, but it hasn't showered until 225, down by .2%. and you're going to ask yourself, we're bound so see more volatility in the global markets and the regional markets. next week, inflation from the eurozone, and retail sales and the beige book as well. strap yourself in. wilf, back to you. >> thank you very much for that, sri. >> what's behind the markets? the central banks h

gas, actually looks fairly good and then when you look at the oil space, oil at around $85 a barrel, wti, that's where you start to get into cost of production for the u.s.-based oil. you have somewhat there. it's great risk reward to buy xop. >> i think given the choice between gassy and oily i think gassy. >> i'm not sure about that. >> no? >> if you're not giving me a trade, i'm moving on. i'm going to break. apple, the company's expected to have an ipad event in two week bus be've got somebody who says a product already announced the product. and we have marissa's disappearing act. we've got the latest on yahoo! comes up next. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us. an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen en

wti crude has plunged 25% from highs hit in june.oday goldman cut its target to 75 bucks a barrel. our next guest says prices will continue to fall in an all-out collapse could be in the cards. let's bring in dennis gartman, the editor of the gartman letter. good to see you. >> always good to be seen, mel. >> what kind of collapse are we talking about, and what are the circumstances around this collapse? >> well, there are a number of things going on here. first of all, let's understand the term structure in crude oil has been overwhelmingly bearish. you have taken brent already to con tango. it's heading to a there is more than enough crude out there right now to meet any kind of demand. more is coming. what is more important to me, something that caught my eye is petroleum reserve under the rulings required under the spr, we need to keep 90 days worth of our last year's net imports of crude in the spr. right now we're keeping, given the fact that we are soon to become a net exporter of crude oil, clearly we're importing less and le

rsonti said the break even point for shale is $65-$70 for wti.would have to go down and stay at those levels for couple of months before you see any company shutting off the valves to say we will stop the project. -october, at least a couple of the refiners -- since october, a couple of them have popped. maybe that is a sign of things to come. the pricing power wind up in the hands of the refiners. cheap oil will drive demand for gasoline. the spread would widen and they can make more money. >> it is a supplier of last resort when it comes down to it. eye on saudi arabia. >> we need to leave it there. all me i am allowed to wear purple today. flies back with more in two. -- back with more in two. ♪ rketwelcome back to "makre makers." i am stephanie ruhle. walmart pledged to put more of its money behind american-made goods. here to update us on the company's progress is michelle glockner, vice president of consumer falls at walmart. welcome. 250 billion dollar pledge. can you put that much money to work? >> we can. it is really a big urges order b

stephen, how low do you think crude, wti ends up going? >> right now we're already too low at that $81. so if we don't hold here, and i'm really skeptical we can hold here, i think we can be down to $75 level. we have a situation where we do not have enough demand. that is demand with concern of economic growth, the imf continues to downgrade the situation in europe. this is translated into a strong dollar which is bearish with crude oil. we've already eluded it to perform with regard to the equity markets. there is a strong positive correlation with oil. so equity market will weigh on oil prices. yesterday the iaea for 2009 came down. downgraded oil demand to the lowest lows since 2009. let's not discount ebola f we saw something like this ten years ago, we saw a 30% decline in sars. we saw 20% decline in jet fuel prices because of the avian bird flu situation. demand is extremely weak right now. >> but you're still saying the price is too low, stephen? that's your point? you think it's overdone relative to where the price should be? am i

so with wti well under 90, some are starting to feel the pinch and traders saying there is more pain to come. west texas intermediate could fall to $25. that is breached, the slide could continue. but suppliers aren't making any moves just yet. in canada the expectation is that output will continue to ramp but with the realization that recent growth will begin to trail off. >> there is a point where that's actually going to level off when we reach whatever maximum daily input could be taking into consideration all of the factors of development. >> reporter: what to watch for, opek is meeting next month. we've been talking about oil exports, perhaps the conversation heats up. for "nightly business report", i'm jackie deangelis. >>> a grim estimate today on the ebola crisis. the world bank calculated the price tag and it could top $32 billion in west africa alone. that's if the disease continues to spread. this comes as five u.s. airports say they will screen for ebola on passengers arriving frommest africa and the same day the first ebola patient diagnosed here in the u.s., thomas eri

wti futures are currently trading in the mid $84 range. and currency traders are pulling the dollar back from multiyear highs. analysts say people in the markets are starting to worry the dollar's recent rally risks putting another break on modest growth. at the moment dollar changing hands in the upper 107 yen range. euro/dollar quoted at just over 1.27. >>> people are flocking to a convention center outside tokyo to experience the latest itn digital technologies. there's always plenty to take in at the event known as seatec japan. and this year people are paying attention to wearable devices, especially ones focused on health care. >> reporter: some are glasses. other devices are watches. crowds rush to see wearable devices in the exhibit hall. they are fast becoming a part of our daily lives. children too can enjoy them. a fencer built into the wrist band measures the changing speed and angle of one's swing, and the matching sound effect is played by the smartphone. [ tennis sounds ] this bandage-type sensor is one of many devices for t

on that same basis, wti is at gas is at $25.ow long can a situation persist without some kind of correction on either side? >> will cover the notion of convergence is a good point. i think there will be some opportunity for convergence, that it does take time. gas doesn't have the same utility as oil in transportation, for example, and absent that, there's always going to be a differential. , high oile degree prices should pull natural gas .rices up some and as we see gas play a bigger role in the directly or indirectly in transportation, thereby through the electric vehicle, then you could get some degree of convergence. but that is measured in half decades or decades, not this year or next year will stop that said, there are other factors. the big factor that will probably create some convergence will start about a year from now when we export natural gas from sabine pass and the houston ship channel and it starts to grow thereafter. >> i think that is right. i live in a new york city apartment and we just paid half $1 million

. >> i think if you look at the parallels between brent or wti back in 2012, you see the same type of decline. so if we're worried about a global growth scare, that's what oil is signaling here. so we've circled what happened basically into june of 2012. and remember what happened in august of 2012. and quincy came out and said that we're going to have qe 3 coming up. so here we are again. we have another growth scare going on. oil seems to potentially bottom, this could signal -- i don't know if it happens or not, but it could signal qe 4. >> do you think it really could be on the table? we're talking about raising rates in five or six months. >> i think they're nuts to raise rates. >> nuts to raise rates does not equal qe 4. >> i think going from saying oil is down to qe 4 is a massive stretch. my point is we have a global growth scare going on. the last time this happened, the fed came in with qe 3. if they came in with qe 4, the market would panic. >> deflation, sister. said it for awhile. >> sister. >> you can talk about demanding with supply all you want. but this is deflationar

right now we're looking at wti at 87.39, down about 1.50.to get more color on this with one of the options traders on the floor. peter is joining us, always great to see you. your reaction to the number? >> well, there's not much of a reaction to the number. as you said, it was already in the market. i think the biggest news you have here is opec discounting barrels rather than cutting production. also, you had the brent wti spread come all the way in to $2 now. and when that spread comes in, it means lower product prices, lower gasoline prices, which all means it's good for the consumer and not good for the refiner. >> right. and we've been talking about the supply story for quite some time right now. this market is oversupplied. this number is reflecting that as well. how do we get that supply/demand balance back in check? >> i don't think you really do. it all depended upon what you saw people like opec do. i don't think they're doing enough about it. the glut looks like it's going to be around here for a while. the biggest thing we have

havey i trading at -- wti turned positive, the latter trading at $81.quarter profits that missed analysts' estimates online ubs is preparing to settle invest igations into currency rigging and have already paid $4 billion in fines. madison square garden considers splitting up into two companies that not it will put sports teams and cable networks in one company and real estate and entertainment assets in another. the idea is that it would unlock value in the rangers and knicks franchises. r paid $2melme billion for the clippers. google has an looking for ways to generate revenue from youtube, which it acquired back in 2006 4 $1.7 billion. that is the latest company news. >> this matters now to our guest toes, tobias levkovich, chief strategist at citigroup, he is focused on buckets, not binders full of concerned but rather buckets full of concern. what is a concerned bucket? >> it is what people are most focused on. people are most focused on the fed and what they might do and now they are focused on oil prices, european economic activity, potential dis

demand will be one of the key things to keep -- to support under the wti price. but at the margin, we're seeing a little bit of dollar strength. we're dollar bull. so that is lookly to keep gains capped in the near term. >> gold is one of the asset classes that underperformed significantly in 2013. >> well, the jitteriness of investment, you're seeing a lot of different asset classes. it is making investors a little bit nervous. so they are looking for some sort of defensive positioning for their portfolio. so i think you're going to see support. if you can get above 1250, you might see some sustainable gains in gold. but i think the real story here is looking at silver. now that we expect a volatility for u.s. dollar and silver, i think silver can see some solid gains in the coming months. >> martin around old, we'll leave it there. >>> jimmy chu commences trading in london, making a flat debut. take a look at shares currently at 140.50. now, the luxury accessoriesmaker known for its high end shoes is priced at the bottom of the range giving the company a value

if you take a look at brent or wti those charts are not good. when it comes to wti like you're seeing there. >> it's a bad chart. >> it was 104. >> and it was 107 in june. in the middle of june, wti west texas intermediate was around 106.90 or 107 in the middle of june. >> bear market. if you look at where the impact has been on the markets yesterday specifically energy was the worst performing sector. take a look at the down side performers. energy down 3.7%. materials the second worst. materials were 3.5%. utilities, consumer staples were the relative outperformers. hopefully people have more things to spend on things like food and beverages. take a look at the stocks that moved the most in here. exploration and production companies. you talk about the countries being the ones that don't want those things. they extract oil out of the ground and are leveraged to those prices as well. even the majors like chevron and exxon not hit as bad but still down 3% in trading yesterday. that's a big deal. now if you broaden out the scope a little bit more

right now, down 1.35 for wti, sitting right at 8043. this is the one we've been watching incredibly close, too. that story hasn't played out in stocks at least to this point. right now, 8334. that is more than 20% below the three-year average that we've seen for brent crude. that in itself has some people just trying to figure out what the gain would be in terms of additional money going into consumers pockets. about $1.8 billion a day. >> we've been looking for what the inflexion point would be. >> it shows what we're keying off of. the more i thought of everything, the one thing we had going for us all along was that valuations aren't ought of control. earn person that comes in here says there's no recession on the horizon and no condition that can cause a recession on the horizon until you throw in the ebola wild card. there is that expression what are the four great questions in the universe of what is the speared made, of what is worth roading for and what is worth dying for. it's not systemic. the one word that answers all of our

so the low where this 17 month low now below last year was 85 on wti. moves that we're seeing on tuesday, you move 3.5 bucks. we could be there by lumpbltime. >> hang on. ecb leaving on the deposit facility. unchanged at minus .2. the marginal ending one also unchanged 37 everything is unchanged by the ecb. boris, what do we expect from the european central bank and what does it mean -- i don't think the euro/dollar is that remarkable. it's not the move everybody's been waiting for. >> are you talking about right now or j u.s. in general? >> in general. >> no surprise here. i don't think -- draghi said they're not going to move on rates. i think at this point the euro is so sold out it could bounce today if draghi doesn't provide fresh policy initiative. everybody is going to look to see if they're going to commit to an expansion of the balance sheet. to buy more questionable debt. it's going to be a question of whether he's going to commit more capital. he doesn't provide any fresh details. i think we have a bit of a bounce. this is the key thing here.

this looks to be down to $84.62 for wti.he ten-year bond market is closed today for the columbus holiday. but the yield is 2.28%. the dollar this morning has been showing some weakness. we'll see at least at this point there are -- the dollar is down across the board. the euro trading at 1.2686. the yen at 107.316789 and go. and gold is trading right near 1,226. andrew? >>> let's talk about generation y and investing 20-somethings don't have a reputation for being financially conservative, but according to a study by ubs, my lillenials are as tight with their wallets as those during the great depression. we have a principle portfolio manager here and author of the new book "millenial money: how young investors can build a fortune" which is out tomorrow. first of all, congratulations on the book, patrick. >> thank you, andrew. >> why are investors so tight? >> our brain is twice as sensitive to losses as they are to the opportunity to gapes. we have been through two terrible stock crashes. a housing crisis to bring financial

price of oil today, wti crude well below $90 a barrel and sort of a line in the sand. we are at $88.78. we were at $87 and change moments ago. >> consistent with that, let's put up the u.s. 10-year interest rates. dropping. we're looking at 2.35%. pretty much a straight line down mirroring what we're seeing as you mentioned in oil and stocks. it might be a classic risk-off kind of day and we have the panel to talk about and a new warning on housing market. is a triple dip? some see it hitting a speed bump. find out who's saying that and could mean for the market and the economy. >> big day here for the cnbc next 25. three top candidates for that very exclusive list will be with us today. melody hobson, anne wojcicki and kal cole with us. they will be with us today on "closing bell." >> yes. a lot coming up. markets, as bill mentioned, pretty much the lows of the session. dow off 200. 1% today. the nasdaq losing 50 points. s&p off by about 20. russell 2000, art cashi this morning on show yesterday we should say told us watch the 1090 level and 1082 where we're hanging.

production, prices can fall to the ''80s level, which we are doing it again and below now if you get to wti at 70, is that going to slow down shale production growth? which don't think so. >> i'm sorry. i tweeted out a picture with the oil stocks and the market. i put up there. they're all down 10, 20, 30% in four weeks. i hope you are right and folks in north dakota are right, why is the market acting like it's going to slam hem? >> well, we got to look at it on two slides, one side the prices fall 20% normal. that in itself is going to hit profitability. on the other hand, what i'm saying on an aggregate base, we will start to see stress on the more moderate producers. the fact as you will cut producer, less productive wells, aggregate u.s. production doesn't look like it will slow down much. that mens even more prices, that's what the announcers will see. >> we have to leave it there. thank you very much. i think your point about the market feeling bearish is very well made over 50% are down in the past three months. >> being absolutely crushed. okay. well, you know. >> saudi arabia has

we were $2 higher in the wti ttday froo where we are right now, so i don't think it's bullish.ut the biggest news is brent picking its head up which props our products up, and our weakest market which has been gasoline all along is all of a sudden up over 500 points today and the strongest thing on the board. liz: strongest thing on the board. phil, do you want to jump in here and argue about that? >> yeah. well, i agree with him. i mean, gasoline is really what brought this market back up along with the fed. two things at play here, obviously. the gas lean numbers, we saw bigger than expected drawdown on gasoline sspplies, and i guess lower gasoline prices had peopl3 drive more. who knew? you know, hen prices came dowrntion demand went up, we had a couple of refinery issues as well. but on top of that, of course, we also had mr. bullard, of course. liz: and he's -- bullard isn't even a voting member, we should definitely point that out. so mike holland, when you see the moves and the vicissitudes including bullard weighing in, in the wake of david asman's news-making interview

. >> and that would be a bear market for wti that we just hit. they are now concerns over whether opec has to get involved with some response whether cutting output to a degree to help stem the decline in price. some of the middle eastern countries are asking for that. >> let's try to stem this macro worry and the market action to tech. what's it saying about where we are. >> september 2 snd is the nasda high in recent history. we are still really high. but dropping 3.7% in 45 days is pretty dramatic. and tech investors were rattled yesterday. no doubt. >> people are pointing out, john top of the market was alibaba on the 19th of september. and at least for now that looks like a good call. >> it really does. and this morning take a look at a number of a stocks took a leg down as we started this hour. looking at stocks down 2 1/2% or more. yelp, juniper, spelunk. >> even go pro. >> go pro. up near a hundred. now it would be nice to stay near 90 even today. especially volatile in this market. >> one name in the green at least on the back of a analy

with wti down about 15% since mid june the big solar stocks have been in rally mode over the past year going in the opposite direction and some analysts say in the next 25 years the majority of our power will come from solar. not everybody stands to gain from that. jackie is in new york with who stanz to lose the most. >> reporter: hi. good afternoon. that is exactly right. we are at a residence here where solar city is outfitting this house to transition to solar power. you can see the panel installation has begun. these crews will work for 24 hours to finish the project. one representative told me crews are in operation seven days a week to meet demand for these projects. there is a reason for that because the market for solar in the residential space is growing. analysts are expecting it to reach about $6 billion in the next couple of years. in fact, this house behind me is likely to generate about 83% of its power needs for the year from its solar panels which is pretty significant. also, in terms of costs they will go from paying 20 cents to 13 cents to solar city. they are cuttin

been in bear market territory so we are getting an oversold bounce in that sector today but watching wtind brent in today's trading session. >> those are actually big moves when you deliver that much in a day from those price levels. >>> macy's gaining ground. the department store said it will open at 6:00 p.m. on thanksgiving day two hours earlier than last year, two fewer hours for you to digest. alibaba initiated buy. shares of alibaba down about 0.25 at 84.88. orbitz. the firm citing signs of momentum and that stock is up about 1.5%. >>> we will talk volatility. the vix index cooling down a bit after we saw the big spike latenist session yesterday. just how fearful are investors and are fears holding back recovery. o'neil securities and cnbc contributor. was yesterday an aberration? the market was moving up steadily and then fell off a cliff. we saw the spike in the vix. >> i think we have talked about this. the three indexes first had broken 200 days. s&p was just a matter of time. it did it yesterday and then the vix spike. once it broke through 2122 and created more of a problem f

but when crude wti goes towards the low 80s, these become questionable.lot of people are starting concern about that. but it's not just oil i noted decline in base metals. nickel, and zinc and copper as well. these has been going on for a good five our six weeks we've seen notable declines. a the broad commodity deflation cycle occurring around the world and impacting our market here particular energy and materials. >> on a lighter note he's a legendary college basketball coach. 30 trips to the big dance. number two on all time wins for a division one coach and just home from coaching u.s.a. basketball to gold. today he's experimenting with new technology that could give fans a front row seat to the action. jim boeheim joins us from the syracuse. coach, great to have you. good morning. >> thank you. nice to be with you. >> what is a nice guy with you doing in a virtual reality neighborhood? >> new galaxy is something that, it really appeals to me because i'm a sports fan. and the people from another company they work with cell utix a cancer company and re

the front end of the wti market, the weakest crude oil market is close to 88.13. a low on a monthly. i got a feeling we're going to test the levels. with the opec members discounting barrels and not looking as though they're going cut outlook, it's bearish for the market. liz: and here come the midterm election. so if we have better growth, mike holland, and we've got from the international monetary fund, and somebody with whom you worked at solomon brothers, warren buffett saying hillary clinton, he would bet money on it, will win the presidential election. meantime, she hasn't announced, there is no opponent yet another. what does the midterm election picture do to any of this? >> stepping back to the comments earlier about geopolitical mess. anything, liz -- >> and the fact that the dow jones industrials is down 200 points. >> yeah, and it's two years out, who knows? so many things can happen between here and there. i would never get in the way of a comment from warren buffett. this market isn't trading on hillary clinton, it's trading on the message of today.

wti will keep going until economics don't make sense. those that are drilling already will pump. david: bob, thanks very much. >> "willis report is coming up next. thanks for being here. david: we'll see yoo tomorrow. gerri: welcome to the "willis report." we begin tonight with break news. the cdc just announcing additional ebola guidelines. the agency introducing four new categories of risk from high-risk, those with direct contact with patients in west africa, to those with no identifiable risk. with more, peter barnes at the white house. peteer? >> that's right, gerri. what the cdc is trying to do here is categorize levels of risk depending on possible exposure to ebola patients. and then appropriate responses. it is recommending appropriate responses to those less of risk. as you mentioned, the top risk here is the high-risk category, those people with direct contact and care of patients, particularly in best west africa, with direct exposure to bodily fluids. which would put them at risk for getting infected themselves, to some level risk. these include hospital workers in t