Transcripts For CNBC Closing Bell 20141208

This is the time of year that businesses are at their greatest risk for losses, not just from shoplifters but employees. Our kate rogers has a special report. But lets begin with markets right now. An hour to go and we are seeing significant pressure on stocks. The dows off 102. Well off the lows of 150 from the last hour or so of the session. Still as mentioned, a lot of pressure in the Energy Complex. Crude today closing at a fiveyear low. And look at some of the names taking it on the chin in response. You have a denberry off 10 . The equity not just hit and seeing pressure on the credit default swaps here. Time now for the closing bell exchange. J. J. Kenihand joining us and thomas fross, lee drogan, renee norris and our own Rick Santelli who rocked it yesterday on meet the press with chuck todd. Well done, ricky. Lets get to the conversation right here. Thank you. Thomas, to you first. So we have this really good jobs report on friday. And then you have this continued drop in crude oil. How concerned should we be about this drop in crude that doesnt seem to want to stop . Well, were not concerned at all. Lets put in it per suspect i. You look at 2008, summer of 2008 through the fall of 2008, oil prices dropped almost 80 . Right now and the economy was fine. And when you add to it people are going back to work. You have people going back to work. Making a higher wage and spending less money at the pump. How could that be a bad thing . We think thats a recipe for good things long term. Not necessarily a good thing for the stocks that are most at risk if Oil Keeps Falling s. That in part why were seeing the stock market sell off today and how concerning could that be if it continues . It certainly is a reason we saw stocks fall off today but we have this argument. Whens better for main street might not be best for wall street and thats whats happening right now. Great for main street. Spending less money in goods and services, less at the pump. Obviously, hurting people that are working for some of the oil industry companies, also hurting their stock price, but we think long term they balance each other out. This isnt just a day where the Energy Complex is under pressure and the 10year a little bit weaker today and the other more cyclical names and you thought might benefit from the argument. So the concern that were expressing is a concern of the market expressing here. Where do you think it comes from . What happens next . I think its more of a oneday thing. You are seeing Portfolio Managers cut aloe cases across the board with highyield energy debt crushed and oil in general crushed. We contribute to the platform take the consensus numbers for names considerably up over a couple of weeks and oil coming down, the market in general doing really well. The economy flying. More money in peoples pockets. Consumer sent systematic strong right now. We expect names like chipotle, Carnival Cruise lines, priceline, travel names, consumer discretion names to do really well. Already priced in . In other words, then why arent we seeing the outperformance . I dont think its priced in. We are starting to see multiples come up for the names and lagging the estimates. Seeing a positive eps in revenue revisions in the quarter, you normally see multiples come up, as well. We expect to see that throughout into the q4 reporting system. You expect that we may revisit what happened six, seven weeks ago . Oil kept falling and stocks went right along with it until oil was able to stabilize for a little bit and then the stock market zoomed back to where we find ourselves today. The 63 level is kind of a big test. Well see one day through it and see if we can go back and hold it. This could be near term, i think it is okay. Theres more money in retailers. Im sorry, consumer pockets, et cetera. The Holiday Shopping season. This could be a bit of a concern because to your point of crude coming down, i believe it can drag some names with it. We released the imx. The clients 5. 11. Lower than last month and what they were doing is buying lower beta names and net buyers, they relocated and we saw ibm and one of the main buys and the reason being i think because its not as big of a pay to stock and set a base of 161, 162. Core late almost. Yeah. Theyre also chasing yield. You talked about the 10year today. People are going to continue to chase yield. Are you buying big blue . Im interested of a contrarian view at this point, though, too. Im probably in the minority. I think we are going to see a strong year end. I think that a lot of Money Managers moving money around. 85 of them are underperforming their benchmark and so theyre repositioning their portfolios to try to come in at a stronger position. Next year im looking for 18,000 on the dow which is only about 12 higher from here. Yeah. Were almost there on friday. Exactly. Yes. Lets go to the star of the group, Rick Santelli, of course, fresh off the meet the press appearance on the weekend. Rick, how is this drop in Oil Prices Going to impact the fed in its own decision to start raising Interest Rates . That along with the rising dollar and complicate things and even when the economy is moving along pretty well. You know, its very difficult to handicap because even without the dynamic, i couldnt handicap the route the fed will take in the exit. I give them kudos. The Balance Sheet is shrinking and im telling you people ask wheres inflation and the issues . The fed vacuumed it right away on the Balance Sheets what they did putting rates negative territory and take lack of inflation into consideration so thats a good thing. You know, if you look at the hyg, pick something, yes, the lowest levels reflecting the dynamic of whats going on with credits based on whats going on in energy and hovering at 90. Even though thats low since january of 2013, if you look at five years ago when the last time oil was here, thats the last time were at very low levels in the dow 6600. And at that time, the hyg was at 61. So i really caution that, of course, theres winners and losers in every big change in the economy and energy is a big change. But i think the economys able to handle it and i think when i look at how the big too big to fail banks and the hedge funds have done in an era of easy monetarily widty i think its about time as one of the guests pointed out that main street gets a little tip of the hat in their direction. What do you guys think, either one of you can either this, leigh or jj, part sially ricks point and whether were taking it much more seriously than some of us are. Theres going to be blowups in the Credit Energy space an im hearing of funds going down and also at the end of the road some huge opportunity for distressed debt and i assume that were going to start hearing about funds set up to buy the debt once that bottom is in. Could take more time here. Oil still coming down. I expect it to play out over four to six months. One thing is looking at the high yield space over the last year, almost 20 of those who have financed that way are in the Oil Services Sector and a huge, huge affect on that and i think definitely, scott, to your point bearings watching. To my point, people im speaking with term it as a ticking time bomb and may not blow up in six months but, you know, closer to 12 to 18 months from now, who knows . To what extent, anyones perspective on this, been through an episode thats not the financial crisis of 2007, 2008, not right comparison to draw here. Its more about what happens when you have a specific price, commodity, in other words, thats collapsing, people exiting the positions. Whatever financing was involved is coming out of the picture and the impact across perhaps a localized recession of those parts of economy reliant on those parts of the highyield space, as well, but whats it mean to the broader Financial Markets and the economy . Compared to sector, it reminds me of the early 80s and farming where people at the time high Interest Rates and now high yield to finance the equipment to get the job done and when it ended it was kind of ugly and got rid of pretty much most of the small players and you could see anything but the economy kept growing. The economy at the time actually was in a very bad state and the economy really had plodded along for a while. Thats so unusual, isnt it . Remember one thing, everybody. Everybody needs energy. Every single minute of every single day. Subprime hit, people could stop buying houses. Theres no many alternative to many of these and the ultimate demand for energy is whats different in this instance. Rick, thats whats so interesti ining because we got confirmation. You couldnt ask for a better demand number than friday in terms of jobs rourt. Exactly. Its oil and natural gas and commodities weak today and theres Something Else going on. Its power generation. Not only crude. Its also natural gas. So its all tied up in some of the new technology and i do think other areas of the economy will continue to benefit like manufacturing. Well, no. One thing i would have said to rick is thats why i compared it to farming. Everyone needs the basis. Exactly. The crops. Thats yits a great core relation of the future. Got it. Rick, do you think its a perfect storm if Oil Prices Continue to stay slow and Interest Rates rise and refinance the debt at higher cost . I think that would be a problem but, honestly, its very tough to find a per menation where Interest Rates rise dramatically in the near future. Thats true. Thank you. Got to hop. 50 minutes to go into the close. Appreciate your time. Kicking off the week on kind of a weak note given the number on friday. The dow retreating well from the 18,000 marker. Down about 107 points today. S ps off 15. Nasdaq off 44. Heres a question for you. Why in the world are banks urging some u. S. Customers to take their cash deposits elsewhere or face hefty fees . Kayla has the bizarre story you have to hear. Later, if you own any of these names you may want to sell them before the new year. Find out which stocks and why coming up. Welcome back. Again, looking at the dow off triple digits today as the 18,000 mark we were talking about on friday after the strong jobs report is fading from memory. Theres pressure, severe pressure on some of the energy names. Four stocks out of the dow accounteding for almost all if not the greatest portion of the decline. Exxon and chevron from the energy patch. Mcdonalds, though, u. S. Comps bad yet again. Right. That stock is getting hammered throughout the day. Down 3. 50. Caterpillar is very weak, as well. Take them out, you have a little bit of a different story. Just the three, if caterpillar werent the fourth one, you could paint a better picture but you hate to see that name under pressure, as well. Ever thought you would have to pay to keep your money at a bank . That could be the case for some corporations next year. Kayla is here with us for a look at whens going on. What . Seems counter intuitive in the face of it but theres a reason for this below the surface. But taking deposits and lending money, two Central Business of big banks and effects of regulation may be changing that for the deposit side of the business and the fed is now incentivizing banks to keep less risky assets on the Balance Sheets, thing that is are easy to sell or shed to keep the business going in crisis and some corporate deposits count as safe assets. Others do not. Heres the ones that do not. Deposits of small banks and hedge funds. The reason, those deposits can be volatile and unpredictable making them more susceptible to outflows in a crisis and overall less reliable source of capital for the banks and those accoun s require compliance and making them expensive to maintain and the reason why some hedge funds received a letter last month of jpmorgan and they would be charged to keep them inhouse. Similarly bank of america, as well. So, guys, not to say theyre declining business from the likes of cocacola or other blue chip names. But it is a sign that some cost associated with regulation are popping up in some corners of the market and this time it could become very costly for hedge funds and other Financial Firms to actually keep that money at some of the big banks. Yeah. Interesting story. Stick with us. We have another guest. Joining us with his take, chris whalen. Chris, good to have you back. Hello, kelly fie youre a hedge fund, where do you go . Who keeps your money . Bank of new yorks been charging for a couple of years. I think you will see at least one other large bank follow the same practice. You know, it is driven by regulation. Kaylas right. Its also economics. The banks just cant deploy these funds. And what i would say to Business People who get a phone call, not a letter, but get, you know, kind of an informal nudge to go elsewhere, talk to the community bank. They want to lend the money. The big banks so overregulated and operational issues, as well, that they cant get out of their own way. The smaller regionals, Community Bankers want these deposits so there is a solution out there for american business. Not just hedge funds. But youre also talking about why you like those banks better than some of the big boys today, right . Sure. Theyre lending money. More important thing is big banks cant make money on the huge inflow of deposits. They have all grown since 2008. The small banks have grown, too. Interestingly enough. But the problem is that the big banks just cant deploy the funds. Jamie dimon talked about this. They dont want the money. Chris, some of them have a good portion of deposits on hold at the larger banks because of access the clients and different securities a they can get through the bigger banks that they cant necessarily get via their own Balance Sheets an im wonder what you think the net effect will be from the system. Will they have a new revenue stream from this or do you think that theyve been paying for the compliance on some of these accounts for so long that theyll just be breaking even . Or do you think that some of the deposits will leave the building in a material way . Well, i think over time, kayla, the deposit will leave the building because as business gets more confident, less defensive of payroll and other key funds with anything but a large bank, right, they ran away from little banks in the crisis. I think over time youre going to see the smaller banks, even the likes of a u. S. Bank corp. Which is a Biggest Community bank in the u. S. , by the way, theyre all going to benefit of this. I think rightly so. You dont want to see excessive concentration in the top banks and thats what we have today which is encouraged by the fed. You know, the feds approach to Bank Supervision is so conflicted and so ridiculous in many cases. The regulations you were just describing, kayla, they dont make in it sense if you understand the businesses and these deposits but this is the world we live in now and the banks have to deal with it. All the same, just to make chris a 30,000foot point here, it seems if im at the fed i dont mind the trend. Isnt this what europe is trying to do to fend off inflation and negative deposit rate and act to spur more cash moving around . No. I think we have gone past that, kelly. I think really the fed should raise rates. Low rates after a while is great editor of the economist noted a long time ago are deflationary. We need assets earning again. We are almost down to 3 Net Interest Margin for the industry and if they dont raise until this time year, well be well inside 2 . Thats bad. You dont want the system to not make money on carry and thats the problem of today. Is there a chance, kayla, this becomes sort of one of the unintended consequences of more regulation and this is rolled back in any manner or just here to stay, this is the way the business is at banks . Dont get the republicans talking about possible repealing of doddfrank because, of course, thats a mandate theyve been talking about for quooit sometime but regulation well telegraphed, a slow trickle and not coming out of left field because the new rule put in place this year, banks understood some deposits counted and some seen as risky. Seeing a deposit balance that fluctuates, id love chriss thoughts between 10 and 50 over the course of 30 days, can you count it as stable money youre basing capital ratio on, chris . No, no. You have it wrong. This isnt capital. All right . These are deposits and nothing wrong with them fluctuating. They fluctuate. Thats the point. But they have to hold a certain amount of Stable Assets under the coverage ratio and the fact is they dont count. Youre assuming that the regulation makes sense, kayla. It doesnt. The economists that designed the liquiddy rules dont have a clue. I work with banks every day. Trust me. This is a really bad idea. You cant measure thats my point is that if you believe its a bad idea, were just finding out about it now in a broader way and maybe the clients of the banks are paying more attention to it now than they have in the past thank god they have an alternative. To roll back some of the regulation having this impact. Well, i think you are right but theres a bigger problem which is we need to take the Bank Supervisory function from the fed. You cant have economists experimenting and saying what if supervising banks. The people that decide are out in right field an i urge you to look at this again. They said theyre willing to make adjustment when they have found they have unintended consequences and tw weeks after the unveiling of the volcker rule. That was a bad idea and the scheme of measurement and managing liquidity makes no sense if im not saying its a good idea but whatever is in place wasnt working and this is one way that wasnt the problem. This is trying to safeguard system. No. I dits agree. You dont understand this. Can we continue this again . Thank you for being here. Thank you, kelly. Kayla, thank you, as well. We need an overtime action for this. We have breaking news of deutsche banc to get to. Banks, check out whats happening with deutsch bank. The u. S. Government is filing a lawsuit over alleged scheme to avoid federal income taxes. Deutsche banc shares off 2. 5 . The u. S. Is saying that they filed this against deutsche banc and other defendants over the scheme. U. S. Attorney barra in manhattan said it seeks to recover more than 190 million worth of taxes, penalties and interest. The lawsuit does also name wells fardo in the capacity as a trustee related to the deals as a defendant and the lawsuit claimed that deutsche banc used flaud lent conveyances of Shell Companies to, again, being targeted by u. S. Attorney bharara for alleged scheme to avoid taxes. Thats what we have. All right. Thank you so much for those head lines there. 35 minutes to go. Dow jones industrial average down by 97 points today. Crude oil is one of the wig stoirls today as wti and brent continue to fall taking the market with it. Large selloff in many of the Larger Energy names today. Mega terrell in the middle of the action and a big cancer drug conference if San Francisco speaking with the ceoo Seattle Genetics, new cancer drugs in the pipeline and why his stock by the way down more than 8 today. Stay tuned. Welcome back. Markets coming off their lows here. The dow off 87. Half a percent. The nasdaq is underperformer of the day remarkable considering the stress. S p off 13. 8 preponderate 5 of the s p is energy. Keeping a close eye on that. Oil prices closing at a fiveyear low. Now bio tech and Cancer Research in San Francisco at the annual meeting. Among the companies in focus, Seattle Genetics a dive down today more than 8 and 7. 2 now. Meg terrell joins us with that companys ceo. It is a cnbc exclusive. Meg, take it away. Hey, scott. Thank you so much. Doctor, thank you for joining us. Thanks for having me on your show. Absolutely. So, you know, they mentioned in the intro your stock is coming under pressure today and some analysts citing competition of your main drug. Do you think the markets understanding the Competitive Landscape . Would you say theyre overreacting . Very were excited and we have approval for patients about three years ago for patients with relapsed hodgkins lymphoma and there was never a drug for them and our goal has been to treat those patients but and those are third line patients and had to have failed two prior regimens and then front line and second line and we have done work and presented that the conference. In fact, this morning we presented data second line showing an 84 complete remission rate and front line a 96 complete remission rate with no deaths at three years and very excited to go and treat the earlier stage patients. Were also very pleased there are other drugs such as oncology drugs that can help patients. We are about patients and treetding patients. My whole career is about that so im thrilled there are other drugs to help patients and we think it is the center focus of hodgkins lymphoma and combining them well and you will see in the future. Do you think, though, with the markets reaction is it missing in some ways the opportunity that it has . Youre testing in it a lot of other indications. Yeah. We think that it has a really great opportunity to be a blockbuster drug in front line therapy. Front line therapy is a same for 38 years and its four cytotoxic drugs and one especially of lung toxicity an trying to get rid of that and redefine front line therapy. And include this and not the other and the data for the leadin trial is extraordinary. And we have a huge amount of doctor support here. The doctors, we have been running around the halls and doctors are congratulating us on the data so were really excited. You know, this conference is about doctors and presenting data. Kelly, you have a question . Yeah. Thank you for being here. If i could just ask, for those of that doesnt follow the language, could you explain, its an exciting time for bio tech generally and people say theyre curing cancer, finding new ways of doing that and treating patients. In 2015, what are some of the most exciting areas of both you specifically and the industry more broadly . What do you think is going to be the next big headline here . Yeah, we are a really making an impact on Cancer Patients and it is very heartening talking to patients and you see how we can extend their lifetime and we have treated over 15,000 people now with ectetris and its been fun and were excited with it and pipeline and a great drug for the worst type of leukemia of aml and presenting on this afternoon showing strong control and thats great but if you look overall, there are ways the target the cell surface and ways of targeting the inside of the cell with very specific pathways you could target as well as amino oncology and targeting the cells around the cancer cells and all three are really good and the goal is to get away from using cytotoxic. They call all toxicity and with individual targeted therapies and combining them this field is moving forward. Doctor, ill take about hard of a left turn to take in an interview like this and ask you to address the 800pound gorilla in the room. That being the allegations made by the soon to be exwife of the head of Health Care Investment banking at jeffrey that is you and others engaged in whats been termed partying, perhaps illegal drug use and other things. You have responded in a statement calling them baseless. And absurd. You want to address them right here on television . They were nonsense. I was not involved at all. Id be happy to talk about Seattle Genetics but i had no involvement there. Completely baseless. Will you sue in return for what has you have been accused of . Will you continue as a firm to use jeffries for Investment Banking . You know, my goal is to spend my life making difference in Cancer Patients lived. I started seattle gentlemen in ittics 17 years and been in the business 25 years and focused on that. I dont want to spend my time trying to get back at somebody when i was really Collateral Damage in something i wasnt involved in at all so i really its total nonsense. And second of all, as far as investment banks, we have used historically maybe a dozen investment banks. We have used them on a case by case basis and any time we need to do a transaction of some sort, we meet with banks and we side whos best for that specific transaction and continuing to do what we did with investment banks. Understood. Doctor and cnbcs meg terrell coming to us there in that interview, really appreciate it this afternoon. We have 35, about 30 minutes to go i should say here into the close. The dow back off more than 100 points. 103, in fact. The s p off 15. And the nasdaq under pressure to the tune of 42 points. A bit of a bad day for stocks and what about next year . Charles schwabs chief investment strategist Liz Ann Sonders with his take and why schwab is more bullish on wall street than International Markets for 2015. You total your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had a Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. And for drivers with accident forgivness,rates wont go up due to your first accident. Learn more by calling switch to Liberty Mutual and you can save up to 423. For a free quote today,call Liberty Mutual insurance at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back. Dows down a bit more than 100. Dominic chu has a market flash. A look at a stock on the move today. What is it . Were watching shares of t l Talisman Energy. Repsol said to wave the assets. One point Talisman Energy down more than 12 and currently down 1. 5 and sharply off of the lows. We also want to bring you an update on the deutsche banc story we just gave you updates on with regard to the u. S. Saying that they had allegedly dodged taxes. They made a statement saying, quote, we fully addressed the governments concerns about this 14yearold transaction in a 2009 agreement with the irs. In connection with that agreement, they abandoned their theory that deutsche was liable and while it is not clear to us why were being pursued again for the same taxes, we plan to again defend vigorously against the claims and deutsche banc out with a normal statement against the claims of the u. S. Government making. Dom, thank you. Im just going to point out that Adrianna Lehman is in the house. If anyone is victorias secret is ringing the closing bell and bringing the stars with them. So that is happening. I hadnt noticed. Okay. Deep breath. All right. Dow jones industrials are down, oh, 106 points. Right now. Oil selling off. Stocks arent having a great day. Theyre off less than 1 for lbrands. A close eye on that one. And thats adrianna, ladies and gentlemen. Here at the New York Stock Exchange as mentioned. Victorias secret will be ringing the closing bell. Lb the ticker there just about 20 minutes time. Been a pretty good year for the markets even with a down day today. Up next, the doi up almost 8 and the s p up more than 11 . Now its time to look ahead to 2015. Who better than Liz Ann Sonders joining us with her outlook. Great to have you back. Whats the headline . In terms of 2015 . I think, first of all, i think its a secular bull market and had the view since 2009 and we are in a more mature phase and when you get to this point typically in the secular bull market after past the five or sixyear point and in particular given this year and the beginning of a rate hiking cycle, you tend to see a flattening in returns and more volatility so thats what i would expect to see 2015 and then near term sentiment is stretched right now so i have a little bit of caution in the near term and again in the context of a secular bull market that i still think has years to go. Interesting you say sentiment is stretched. That tells me that you think perhaps people are just too universally optimistic and positive x bullish . It is interesting that the traditional measures of sentiment whether its aii or Investor Intelligence recently they did get to what is historically fairly high levels of optimism. That said, if you look at the yale, the shiller yale surveys that are longer term surveys that look at the spread between what institutions are saying and individuals, that shows a very low level of confidence so thats why i specifically noted shortterm sentiment. I think longer term measures of sentiment in actual surveys and what we see aneck dotally at schwab, the wall of worry is intact and not seeing the euphoria of major market tops. Do you think, liz ann, i dont know what to extent you are aware through your data, fwhau 2015 is a year that Retail Investors get involved or do the market highs and volatility of the financial crisis keep people on the sidelines if they are on the side lines. Retail investors are involved and what we find at schwab is we have a fairly healthy and optimistic individual investor particularly those that take a disciplined approach to investing. I just think theres still a muscle memory of the two financial crisis and thats why you havent got on the that level of euphoria like you did in the late 1990s into 2000 or even in the prior cycle so i think theres participation, theres willingness to be involved investor, but you dont have the same level of enthusiasm that youve seen in the past. Liz ann, are you concerned at all about this continued drop in oil . What do you make of it . You know, the net is i still think its positive for our economy and broadly for the Global Economy within emerging markets and particularly for the consumption side but thats the net. You know, the gross for lack of a better word is that its a mixed bag and what we have been enjoying here in the United States is a pretty decent Capital Spending cycle and Energy Renaissance and then the impact there on Capital Spending, you look at the potential rep which you ares and the high yield market associated with energy. I think theres a rub that we probably have to get through. Again, i think the net from an economic standpoint is a positive but if this starts to really send a signal of weakening demand and a bigger deflation problem, thats not great for the market. Liz ann, thank you. Thank you for being here. Thank you. Charles schwab as we start to turn and attention to 2015. Almost here. 15 minutes to go before this day is over. And were still looking at a down day on wall street and really the focal point of the story is that continued drop in oil. Lets see if adrianna can improve sentiment here. She has an impact on the sentiment of the traders. Yeah. Watch activity at post 8. I dont know the markets at large. The traders are bullish. Okay. Up next, if you own the stocks, listen up. Data suggests to sell them before that ball comes down in times square on new years eve. Morgan brennan has the list you need to know about when we come right back. My baby drove up in a brand new cadillac. Look here, daddy, im never coming back. Discover the new spirit of cadillac and the best offers of the season. Lease this 2015 standard collection ats for around 329 a month. You have heard of sell by dates of foods. And now the stocks to sell by the end of the year. Whats on the list, morgan . This is the new years resolution list. Five Consumer Discretionary stocks to consider selling before 2015. Staples, Office Product retailer up about 18 so far this quarter. But analysts consensus estimates calling for an 8 move to the downside in 2015. Another name to check out, autonation. Thats a name on a tear along with other auto related companies this xwaert. Up about 16 since october but estimate project an 8 loss next year. Darden restaurants, gained 18 this quarter. But consensus says we could see a 11 drop next year. Lastly, check out two Dollar Stores and could tumble out of the gate in january. The first is Family Dollar up about 3 since october. But according to our data partner that stock fallen on average 4 over the last five januaries. Also, dollar tree. Thats up a hefty 21 this quarter and the average january loss 3 but of course, guys, that pending takeover of Family Dollar by dollar tree could affect that longer term pattern this time around. Nonetheless, five stocks to check out for your new years resolution list. Back to you. Okay. Morgan, thank you so much. We have ten minutes or so to go. Want to update you on technology movers today. Twitter down almost 6 . On a continual slide lower. Lets check apple, as well. So many of you own it, follow it and have their products around. Down about 2. 3 . Technology and even though were highlighting the energy names in the dow dragging down that index and mcdonalds and caterpillar, nasdaq is worst of the three today in large part from a slide in names like tesla which is below the 200 day. Apple down, twitter down and some of the other names, as well, ill try to highlight in the closing countdown. And over all the dow off about 111. Art cashin indicating additional sell pressure to the tune of 300 million. The widening wealth gap may have hit another gear. A million you nitd knits of pr cars and whether they should be paying closer attention to this one. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage, or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Were a force of nature, too. You never jim jam shabriver flab dry ris. O is, bliss pounds hazy dray . Drywall shboop leaver murray. Hey, big bog panorama corn salabaty . Dude, squibble bits. Mareyayzee. Mormal snap jebby rolban jebby deetle flosh. [laughter] eh. Nows the time to get in the loop. Just look for our fall tv picks with xfinity on demand. Huh. Quickly find the seasons hottest shows, huh. Quickly find the seasons hottest shows, with a handpicked collection all in one place. Only from xfinity. All right. A down day for the stock market right now. Dow jones industrial average is down by 104 points. Joining us is anthony chen from Jpmorgan Chase. Peter costa of empire executions. Good to see you. Did you knee that adrianna was on the floor . Oh really . I didnt know. Focused on the market. Im so glad youre focusing on stocks. Anthony, what do we think about this fall in crude and the fact that the stock market is selling off as a result . Crude is just towering down. I think once you see a stabilization of crude prices the markets realize and reality its good news and some point i have no doubt that opec will come in and try to stabilize prices with cooperation of nonmembers. Energy is a big part of the market with exxon and chevron and many other selling off and driving the overall market lower. Thats an issue. Its an issue but giving the big tax cut to households and Many Companies that use energy is also an issue and a positive one. How do you see the market here today . Dow 18,000 is about 150 points away. Got, you know, within 9 points or so on friday on the back of better than expected jobs report. Does it matter . Yeah. You know what . Oil is a big issue today and i think the markets are a little tired and i think that was we were really ripe for Something Like this. I thought the market was overbought last week and when you look at any time you see dow and s p making the fractional new highs, you know that theres its getting weaker. The impetus is not there. Its just making it because what i would say is its lack of any kind of sell interest and buyers moving in higher and thats all it was and now seeing people starting to take some money out of the market. Theres a good reason oil is down. Good reason to take some cash off the table. You have any doubt of whether, anthony, the u. S. Is still best place to be . I think right now u. S. Is still best place to be and the decline makes other places also nice places to be. Chinas a big oil importer and and guess what. Look whats happening to chinese equity markets. Shanghai index up more than 42 . Lower oil prices will help along with stimulative policies by the pboc and maybe more fiscal spending. Well come back with the closing countdown on a pretty rough monday down on the street and then after the bell real estate versus stocks. Big debate just happened among top money minds over which one brings investors better returns. Well tell you about it later in the show. Youre down with crestor. Yes when diet and exercise arent enough, adding crestor lowers bad cholesterol up to 55 . Crestor is not for people with liver disease, or women who are nursing, pregnant, or may become pregnant. Tell your doctor all medicines you take. Call your doctor if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine, or yellowing of skin or eyes. These could be signs of serious side effects. Im down with crestor make your move. Ask your doctor about crestor. Welcome back. We approach the closing bell on this monday. Want to show you the weakness in the dow today and we have talked about it throughout much of the day and happening with crude oil. Selloff of exxonmobil and chevron and mcdonalds. Boy, the u. S. Comps continue to be a trouble spot for mcdonalds. That stock is down by nearly 4 so thats the bulk of the weakness out of the dow. Throwing caterpillar in there and some other names, you would account for much of the selling in the Dow Jones Industrial average and show you weakness in technology. Nasdaq is weakest of the three today and you can see some real selling and continued trouble for those who own shareless of twitter. Theres the nasdaq down nearly 1 but twitter is weak today. Tesla continues to be weak. Theres even been selling in apple, as well. Heres a real point of weakness. Twitter and then tesla and then apple. Back here with anthony of Jpmorgan Chase and the executioner peter costa empire executions. How do you think the market is setding up into 2015. Pulled forward some of next years gains into what we have done these last six and a half unbelievable weeks . You want to answer that one first . I actually dont think so because i think that next year you might see corporate earnings moving for the s p 500 as high as 10 . This year as you know Third Quarter is 8. 8 . So to the extent of more earnings next year, i see a 10 rate of return for the s p 500 next year. Thats a lot more i mean tough question. It is a tough question. A lot of people were surprised by where we have gone in the last 6 1 2, 7 weeks. You know what i think it is . Flight to quality and safety and come to the u. S. , a lot of foreign money has come in. So, you know, going into next year i think that you know what . Im not going to put anything on the table for next year. I want to take a look at how the year ends out and probably this level. I think next year we set up very good year going into the end of the year. Okay. I appreciate it. Anthony, peter, be well. Talk to you soon. Stock market will go out with a loss for sure today. Dow down more than 100 points. Kelly picks it up with the gang. Thank you, scott. Welcome to the closing bell, everybody. Im kelly evans. A tough start to the week on wall street. Take a look at how the indexes finishing with the dow giving up 103 on the close. S p off 15. Nasdaq off 40 and thats interesting. How weak the Technology Names were today. On the day when otherwise the story is energy. Lets talk more about whats happening across the sector with todays panel. Contributor carol roth is here with Michelle Carusocabrera and ross ger by and tim seymour and at the nymex is jackie deangelis. Hey, kelly. Welcome one and all. Jackie, how bad a day was it for crude oil . Brutal. 4 declines both sides of the atlantic. We saw crude settle at 63. 05. It was a fiveyear low. We did break under 63 as well, a key technical level. You know, it was the third worst drop that we have seen this year and by all accounts that really is what triggered lot of selling in the stock market, as well. Traders telling me it was a tough spot because a lot of them think we have sort of bounced around a bottom here and same time nobody wants to be caught holding the bag. So they were on the selling side because thats where the momentum was today. I was pretty amazed. Jackie, thank you. Carol, putting that in context, this comes after seeing pressure and nothing really happened and no real reason and it was almost the lack, perhaps, of any news of to peck over the weekend but what do you think about whats happened here with oil . You know my perspective. A lot of people think its a good thing. I dont think it is particularly a good thing. A lot of people are focusing on the supply side of the equation. Im worried about the demand. Im worried about the weak economies, particularly je lly s and means in terms of exports and job creation and sounds great to have more money in the consumers pockets but from my standpoint im concerned. Michelle, bis lately talking about what some of the trends including the stronger dollar and saying, remember how much of the worlds reserves in dollars. Some point getting tougher and tougher from exactly. And talking about the bank of international sentiment put out a big report to them sounded frightening and the world sounded frightening and countries all over the world and businesses all over the world issue their debt in dollars, but they get paid in some other currency like a ruble and it keeps pummeled and the dollar is stronger, pay back debt is really hard. The bis is sometimes fearmongering and calling it to some extent calling the imbalances in the global system and worth paying athe engs to and whats an investor to do about it . The other thing they highlighted and talking more about, not just the currency mismatch as they call it, but lack of liquidity in the Corporate Bond market, as well, is getting im hearing Horror Stories of people who trade em, distressed and vtrade distressed em. Its you and some other guy somewhere in the world and you cant get trades done and very gappy and when the market turns its super painful and ugly. Ross, what is your experience . My feeling is im a u. S. Investor and i care about america doing well because thiss the majority of my asets by far. The drop in oil and pressure on basically enemies is not a bad thing. Lets be real. We are fighting a war right now against russia and iran. Cyber, economic. This is a concerted effort by the government. This is not an excellent. U. S. Government . Absolutely. Absolutely. Do you think theyre telling producers now uneconomic to keep pumping oil . It is economic to keep pumping oil within the United States. We have tremendous resources. Its our National Security interest hold on, hold on. As somebody with a well that needs oil to subsidize. You think the u. S. Government will subsidize . Absolutely. That should go over really well. Everybody loves the oil sector so much. To get more money to the oil industry. Were at war right now with russia and china. No, were not. And in the oil. Yeah, we are. Tim seymour . Look at ukraine and the south pacific. We have we are not at war. Were not at war with russia or iran. But i agree with ross is saying. Think about who suffers with Lower Oil Prices and where our interests lie. This isnt bad for the United States. I think prices is not truth here on oil prices. I think its a liquid market and agree with what michelle was saying and people suffering and one of the worst years for hedge fund and thats what were talking about. What does that mean then, tim . In other words, does that mean theres not going to be support and its not economic to pump oil . I think we have these issues through the First Quarter of next year and i think the supply tells you that. Not cutting and hedges and continue to produce. I think oil could go into the high 50s and not lead to a global pullback and add 50 to 60 basis points to global gdp next year. In the bakken it is there. I wonder what this means in terms of consumer demand. That is the trade everybodys hoping happens here. The black friday sales have been extended through valentines day if i look at my email and not bode well from a retail standpoint, consumer standpoint so the consumers arent stepping up here, the price of oil and gas where its at, when will they . I was talking whereabout the money is going. One theory is going to verizon data plan. Two, its going to your health care plan. Is it possible that were not seeing as much of the theres an article in wall street journal did a big data dive and discovered a huge percentage now going to those two things. Thats where the middle class is squeezed the most. Your cell phone bill which is gotten so much bigger. So important to most people. Yeah. Ross . Adding devices. But the money has to go somewhere so its either going to spending or savings and going to spending and health care is more expensive for most people but the bottom line is a lot of it is going to apple. You love apple. Its down today. Its under pressure today. She needs a new phone today. Michelle needs it. Iphone 6 . She has a blackberry. Im a contrarian. I have the blackberry. Consumers will spend the money and its good for the economy. Its that or send it to iran to build a nuclear bomb. I think you are right spending on data for the mobile phone, fine. Is it true for health care . It is more expensive. We spend more on health care now than we spent last year. And individuals are spending more. Coming the individual, once the individual actually has to start paying more, thats when the spending actually starts to fall. This, oh, the constant rise in spending in health care, et cetera, once we have to make better decisions and forced to, you will see the spending drop actually. It is a necessary evil. Scaleable like verizon. I dont think more for the data plan has created highwage jobs. I want to see more leverage out of it. I own stock in verizon so im happy with this. Theres productivity. Doing all kinds of things on the phone, drives apps, creativity. And less productivity doing the things on the phone, too. Are you kidding me . No. Were far more productive today. I have a company on my phone. Right now ire the natural segue then would be a security discussion and i just wonder as we look at the scary. You heard walmart saying its the only place to write a blank check, corporate or personal level. Yeah. If you just said you run your business on your phone. Right. Are you scared . Am i scared . Yes. Honestly. After the sony thing, im in l. A. And the sony thing is unbelievable. A country hacked down a Major Corporation over a seth rogan movie. You know . Its crazy to think about the Stock Exchange or individual companies. We use a brokered dealer and responsible for security of the asets of clients but interviewed about this. Im scared to death of turning on the computer and says zero on every account. I worry about that or the account doesnt exist. There was no im not scared of many things but thats one thing im scared of. Carol . I said it many, many times. Thats the biggest threat we face and the reality even if its something only lasts a day or a couple of days, the kind of, you know, potential anarchy to happen here in the United States of people not being able to access whether its the devices, whether its a bank account or whatnot, i dont think people are anywhere near prepared even if it was just localized its a confidence killer. Thats what im saying about the war thing is that this is a country doing this to us. Understood. This is russia, this is north korea. This is china. Theyre saying people sympathetic with them. We have to be clear. Tim seymour, give me trades here so i dont have nightmares of the fearmongering aside going on over there, a lot of whats happening today is because on friday a fix, a number of nonform payroll puts the fed in play next week and people want to know why risk assets are pulling back because you could have the extended language taken away. You have a zero Interest Rate environment and the United States well behind the curve. Thats a lot to do where investors are positioned and i agree liquidity is a big deal right now and funds closing. I talked a lot of people seeing both energy funds and other global macro funds in distress here and a lot to do with the price action right now. Jackie, a quick last word to you. Whens the next key level on the downside . Thats the big question, of course. 63 left for wti, traders said there will be more selling breaking through that and a settle under 63 and this point, kelly. You said no catalysts today. There werent. But i think the news out of saudi arabia last week, this idea that brent to stabilize around 60 a barrel, that is sort of trickling into the market here. Oh. We have to get there and remember wti usually trades at a discount. That implies we see wti in the 50s. Thats a great point. Jackie, thank you very much for sticking around. Tim seymour, appreciate your time, as well. Coming up with the rest of the fast money crew at 5 00 and asking Dennis Gartman is bottom is near. Thats all at 5 00. Now dominic chu for a quick market flash. Kelly, we are watching sharyls of mcgrawhill financial. The stock moved lower at the end of regular trading on a bloomberg report that the s. E. C. Is said to be seeking to possibly suspend the s p bond ratings unit from rating commercial mortgagebacked securities. Again, they did receive the company s p financial a wells notice earlier this summer regarding possible ratings and disclosures made about different cmbs deals in 2011 but still again a bloomberg report saying that s p may, again, the government may look to suspend s p from rating commercial mortgageratings backed securities and the shares down as much as 4 in regular trading and 2 to close the day out. Back over to you. A space to watch. Thank you. The ageold question, which gives you better returns, stocks or owning a home . Some of the best brains in the money business are taking that issue on. Well find out if they agree with shark tanks kevin oleary saying homes are terrible investments. He is here next. Plus, highend car sales are booming. Priced under 50,000 seen modest gains, though s. That more proof of the growing wealth gap . Stick around. There are people on wall street, long arguing, that stocks are a better investment over time than buying a home. But does the data back that up . Diana olick took a look and has answers. Hi, diana. Theres the case that you will build more wealth through the stock market than you ever will through owning a home. This amid other news that fannie and freddie offering mortgages with 3 down payments and push for homeownership and going back to 1987 when the s p kay shiller home price index was invented stocks win by a long shock. Theyre more vog till, yes, but they yield more. Not only through appreciation but dividends. Home prices do rise over the long term but not nearly as much as one might expect and you also have to pay into a home and the form of property taxes, insurance, maintenance, improvements. You have to pay Capital Gains tax on stocks but it will come out as less in the end and mr. Shiller charted this back to the turn of the 20th century and it has held up for well over 100 years but you could argue a home pays you in kind, that is, you live in it and its really more of a consumption good like a car than an Investment Vehicle like a stock. But really, i have to say, its a Savings Vehicle because paying down a home loan is forced savings. Kelly . All right. Diana, stay right there. We want to bring in kevin oleary with the rest of the panel. Good to see you. Listen. Diana has a point here. The home pays you kind. Maybe harder to value but more important than stocks, surely. Well, diana is trying to take a page from the past and apply it to the future. During the period dooft that, Interest Rates, nrds, mortgage loans, did nothing but go down for 20 years. I dont think thats going to be the case for the next 20 where it bottoms now. Over the next few years, rates come up and consensus in june and real estate is not a great investment in periods of rising rates. On top of that, relatively ill liquid date and theres no diversification an its a largest asset. Transaction fees are almost 12 to get in and out of it and one sector, real estate. I would rather be in dividend paying stocks across all ten sectors of the s p and i think theyll outperform, no question, kelly. Panel . I think most people buy a house, im talking the average american thinks when im old and cant work anymore, i want it paid off and nearly free to live in but the taxes and basic maintenance and cant live in a stock certificate. Right . They think enough you pile enough of them up. Kevin is 1,000 right and think of people risk averse and not convinced of ability to invest in the stock market, know that its fallen 30 , 40 in a single year. What would they do . And that fixed payment on the 30year mortgage is the same every single month. I want to know what he thinks of the 3 down and the government once again is pushing homeownership as a middle class wealth builder. Im shocked. No, no. Theres something wrong with the market. Theres something wrong with the real estate market. Im trying to rent a loft in soho. Im looking at 2,700squarefoot place recently last week on the market for 15 million. Thats insane, of course, just on its own. But wait. It gets more interesting. There are a bunch of you nitds in that building that are renting right now for 24,000 a month. That imputes a value 50 less than what theyre asking to sell it for. That cant be sustained. I think the prices of these things thats not america. Thats not the rest of the country. Thats not america. Go back to fannie and freddie. The fannie and freddie, spending the time an money on regulation of the financial Services Sector saying we cannot afford to have another financial crisis and what was the component . People getting into houses that they could not afford. Now were going to go back to 3 down . Whos the genius coming up with this idea . Kevin . Look. I think this is a big problem with this because we have lived through it already. You know, i ask people that work in the companies i invest in or i own why do they want to own a home or a condo . Whats the reason for it . Can they give me a sound financial reason . And the truth is, theyve been told their whole life that the best invest systematic their home because all theyve down is Interest Rates going down. I would rather rent a condo and thats what im going to do because i think whats going to happen is nothing, i dont think something today is more in five years and 12 to do the transaction and you tied up the money in something that has no diversification. I hate housing. Diandiana, last word here. Thats the high upper end and wealth build, maybe some of wealth building is forced savings and when you do pay down a home loan and none of these interest only a. R. M. S anymore, its the money in the bank and maybe not appreciation on the home but the savings youre foesfoes forced to make. And nobody mentioned inflation. Diandiana, kevin, thank you much. Dominic chu with news on verizon. We have verizon shares down about a percent in the aftermarket trade after the Company Issued a press release saying that they continue to see strong momentum for wireless Customer Growth in the Fourth Quarter of this year. They said that they saw very Strong Customer demand for 4g smartphones and tablets and said that approximately 3 out of every 4 upgrades strategic or high quality from a basic phone or another 3g smartphone. The Company Expects that Fourth Quarter impacts of Strong Customer volume will put some shortterm pressure on wireless segment profits and Profit Margins and there you see why investors are not liking this, at least in bit of news short term and down about a percent on shares of volume. Also tn telecom front, tmobile shares down about 4 to 5 on a relatively light trade in the afterhours. They have said that they have the stock moving lower after it announced that its beginning a Public Offering of 17. 4 million shares of a mandatory convertible preferred security, thats like a hybrid stock bond type security with 50 bucks a share, getting 50 bucks a share, they have to convert it to equity and the shares down by about 4 to 5 on a relatively light 25,000 shares worth of volume trading on that bit of news. Yeah. Some big developments. Thank you. Looking for evidence of a wealth gap, look to the auto industry. Cars priced over 50,000 selling like hotcakes. Is this the kind of dwooifd wall street worries about . If you heard of random acts of kindness, now talk about random acts of pasta kindness. Someone who has the never ending pasta pass and using it to feed the homeless. Were back in two. Boy once upon a time, there was a nice house that lived with a family. One day, it started to rain. The house tried to keep out all the water, but water got inside and ruined everybodys everythings. The house thought she let the family down. They just didnt think it could happen. They told the house they would take better care of her. Always. Announcer protect what matters. Get flood insurance. I have 40,ney do you have in your pocket right now . 21. Could something that small make an impact on something as big as your retirement . I dont think so. Well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. Auto sales pretty solid this year and sales of luxury vehicles eye popping. Phil lebeau has the details and why it might be telling us something bigger about the u. S. Economy. We are on the cusp of a milestone for the automakers. The industry will be selling more than 1 million vehicles with an average transaction price of greater than 50,000. Right now, if you take a look at those sales of vehicles over 50,000, the growth is basically between 50,000 and 100,000. Those between 50,000 and 75k 32. 7 higher and over 100,000 up over 17 this year. How do they afford this . First of all, most of the vehicles are done through leasing. 60 are through lease deals and seeing loans for 6 and 7 years for people buying the pricier vehicles. As long as they get the payment under 600, that seems to be the magic point. Doing that, then theyll swing the deal through a lease or a longterm loan. And when you look at whats selling right now, it is not just mercedes, bmws. Look at whats selling here. Big suvs. In the 46,000 to 63,000, gmc yukon, sales up almost 50 . And escalade sales up 32 . Thats why when you take a look at general motors, a lot of people want to focus on the recalls and the problems of this company this year. But you look at the higher end, kelly, they have had great sales up there whether its with these two suvs or the corvette. Thats really where they have made a lot of money this year so for general motors, pushing the vfl higher paid off. Boy has it. Thank you. Stay right there. What this report says about the wealth gap in america is a looming question. Is this an issue on corporate americas radar . Lets bring in fred hassem, welcome. Great to be here, kelly. What do you think when you hear phils report . This is very good news. People are moving upscale. People are going up. Seems like the middle class is getting more confidence. And theyre making purchases and i think its also the cheap cost of debt which is driving this whole behavior. Overall, this is very good news. Many people said, though, precisely cheap debt and rallying stock market to benefit the wealthier buyer here and doesnt extend to everybody else. Dont you see it as evidence of a problem that not everybodys able to participate in . I mean, the sales of cars less than 50,000 pretty much havent gone anywhere. Very clear that theres a lag. People with capital have done better in the last five years than people who are making money through work. And that needs to be made up and i think over the long term its going to get made up. Were just seeing this mechanism that the government has used, cheap money, which seems to have benefited those with capital. Carol . It is amazing that the feds mandate, right, trying to create jobs and i think instead of doing that they have firmed up a barbell. The people at the top ended up doing very well because the stock markets gone up. The companies gotten a pass. Financial engineering and buybacks and eps getting rid of well paying jobs and very ironic to have this discussion and to see the fed right in the middle of it in my opinion. Fred is right about a couple of things but first of all people with capital are definitely doing better and remember 60 of america in investments through 401 k s and much and were willing to help the other 40 . They have the make a call. But the reality is go ahead. Listen. Thats what i do for a living. I understand. You know, the reality is with this change weve Seen Technology kill a ton of jobs. Oh yeah. I mean, thes nobody working at the parking lots anymore. The toll place now i go, you just drive through. Sends you a bill. We have these amazing innovations that are making it so hard for middle and lower class people or lower income people to gain and then they need an Education System to bolster it. Policies that crush the lower income individuals in the country because they insist on higher and higher wages for people that dont have a necessary skill set and as a result they dont get employed. Right . We just need a better Education System for people. Theres another basic thing. We have seen countries where all the income is equal and guess what. Everyone is poor. Okay . Its true. Very true. Just a last word here. You do not make People Better off by taking it from one group and giving it to somebody else. You do it through inspiration, hard work, discipline, saving, through deferred gratification. I think thiss the way you grow the pie and we have seen that in so many other countries and our country. So thats the way to go. All right. Hope springs eternal. Thank you. Appreciate it. Phil, Interesting Data on tesla here, as well . Take a look at shares of tesla over two weeks and the last seven days in particular. We had the data team crunch the numbers. Shares down again today. This is the worst sevenday trading stretch ever for shares of tesla down 14 . And when you look at the price target, kelly, the stock is trading at 213, 214. All of the price targets moved higher and all at 277. Big gap right now. Still seems, phil, this is a correlation of oil prices, is it not . As they go, so does the incentive the momentum investor is core lating cheap gas with hurting tesla sales and thats wrong. Its a luxury vehicle. 93,000 is not worried about gas and the people that own a tesla, not one said im saving money at the pump. They dont care about that. They dont deserve a subz su. People buy it because its good for the environment, too. And what about the environment in the last seven days . Gotten colder. Ross is saying its the weather. All right. Well leave it right there. Phil, thank you. Ross, thank you so much, as well. Its been another great year for stocks. Is there still value in the market . Up next, third avenue management david barse is still defending actively managing funds. And tis the season to steal. Businesses face big losses due to thieves this month. Employees account for nearly 30 of the theft. What would mr. Oleary do to employees stealing from him . I have a couple of guesses but hell tell you coming up. And cialis for daily useor you. Helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. 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 pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. This guy could take down your entire company. H . Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. Whats happening . Not even tax time yet and watching shares of h r block after the tax preparer posted a wider than expected Second Quarter loss on weaker than expected revenues. The stock you can see there down by nearly 7 in after hours trading and pointing out typically does report this kind of a loss because of the way that the Business Cycle works for taxes. Come string, all bets are off as we head towards the allimportant april 15 tax deadline, kelly. Thank you for now. Index funds have been hot all year and investors embracing a passive management model. My next guest said active funds are the best way to go. Joining me now is david barse. Welcome. Kelly, great to be here. Thank you. Lets begin with why people should have anything to do with active management after 2014. I dont know about passive investing in 2014. I mean, to me, they dont ever study a stock. They never read a 10k or q. They really know nothing about the company. All they do is study markets and you have to be an abnormal psychology to do this. Its not them saying im closing my eyes but trusting the Financial System enough to know theres no point in paying for more than the stocks are currently priced at. We think thats a crazy way to invest and over the long term if youre not a fundamental bottoms up Research Oriented investor, we just dont understand that way of investing. Are you making a distinction of professional investors, do your research, make your career on that, fine. But for everybody else, the point is long term what matters is time in the market and index funds and time and again a good strategy and one that frankly often outperforms the active guys. The outperformance is a term measured against some period of time and to be consistently outperforming is using consistent as a dirty word. No one can consistently outperform all the time but a longterm investor and you do your work and you understand what that company does and how it makes money, how could you not want to invest that way and be a bottom up person . Because theres no point in paying the fees for it yochlt you thattic this year, the markets up or take a given year when the markets up 8 to 10 . Thats a big deal to pay. Why would you give that up . You dont have to. Jack vogel, vanguards of the world exist to say you dont have to do it that way. We have outperformed after fees. Consistently . Well, if you take a 20year time horizon. But lets look at the indexes today. Did everyone in the indexes predict opec a few weeks ago and knock oil out of the box like its didnt . Didnt matter. S p still rallied and the funds that made some oil picks have blown up. You are talking about one particular index. There are passive strategies for virtually every sector in the Market Police and people are driving into the sectors thinking they can out perform and crazy. Youre saying people arent passive but actively picking Something Like an energy etf making a concentrated bet perhaps unaware of the risks with that . Yeah. Vanguard has an index for almost everything at this point in time. Fundamental, bottom up, do your research and find a security thats going to win out for you over the long term. Thats our approach. Pivoting to 2015, what do you think wins out for investor in 2015 . We werent heavily weighted in energy or oil or gas and now trying to unearth from the Many Companies dragged down by whens happening is an invest goodment. Can you give us any particulars . In the energy space . We love devon and apa which che look for them for us. Out on a limb, i love it. Thank you so much for being here. Thank you. Really appreciate it. Winter holidays are the season of giving and how about unlimited pasta from olive garden and now theyre casho loading the less fortunate and heres here to tell us more. Not everyone has the spirit of the season. Its when businesses have things stolen more than any other time of the year and its the employees that do most of the stealing. These stories when we come back and be honest. If youve ever stolen from your job, any job even the high school one. Go to cnbc. Com vote to weigh in anonymously when we come right back. Financial noise financial noise financial noise well, it is not all sugar plums and snowflakes this holiday season. It could mean a not so Merry Christmas for store owners. Kate ronlg earls had data and advice and we want to hear from you. Have you stolen anything from work . Go to cnbc. Com vote and it is anonymous and kate is here with why christmas is a popular time for stealing. Thats right, kelly. Obviously, added foot traffic and an increase in Seasonal Workers means boosted bottom lines but fall businesses and added risk for shoplifting. Some surprising stats here, according to this years u. S. Fraud and Retail Survey of retail knowledge, an Industry Trade group, now, they say 11 of companies experience losses in stores due to shoplifting and more shocking here is that 38 of this theft is committed by employees. Small businesses potentially face greater risks because they just have fewer resources to actually screen seasonal hires but that being said traveler says that they should not skimp on the allimportant background checks for the workers and suggest here investing in security cameras and setting up near your Cash Register and that youre there and watching them and finally team your new hires with workers you know and trust for training and let them know whether its from external shoppers or by workers in the store that you have a zero tolerance policy and pursue charges to the fullest extent of the law. Kelly . Stay right there. A reminder to hear from you. Let us know whether you have snuck anything out of the workplace and particularly interested in what kevin oleary thinks about this. Hes back for more. 52 of people saying are yes right now. I think really its more like 80 or 90 if theyre honest, and young in a Hardware Store or candy store and its terrible because in todays world where security cameras and the ability to monitor in store locations is very low cost, its not expensive to put in security systems, used the cost hundreds of thousands, you can put in for 1,800 now. Youll be caught on tape. Carol, have you ever lifted something . Im sorry, kevin. I want to hear the answer to this. Are we counting postit notes here . If so, guilty. Given the fact that people are stealing, one of the things to do is give them a raise in the minimum wage. Dont you think so, kevin . Whoa. Wait a second. Where did we get into that debate . Absolutely not. Get rid of the minimum wage. Im being you should know that, kevin. Seriously. That is one of the things that they say thats throwing meat in the shark tank. Extra, extra meat in the shark tank. But lets get back i was going to say you should whack them if they steal from you and let everybody else know that anybody else does the same thing is whacked, too. Its worse. Social media today, if you actually get fired for theft, every other employee knows that. Your probability of being hired is zero. And thats why i think you have to tell young people today starting the careers, dont steal stuff. The outcome is really bad. I think he encouraged candor of the viewers. 62 of people saying they have. I have a client with a retailer and a girl stole some stuff, jewelry and she posted the video online on facebook said these people stole from us and they came back to the store apologized and returned the stuff so, you know, social media works good in shaming people. And technology in general. One of the biggest areas of theft from employees is teaming up with somebody who doesnt work there. I think sweethearting getting a friend to come in and dont ring the things through or give them an extra discount and that means you have to be as a Small Business owner focused on technology to not see personally the person is personally stealing but are they making those, you know, special kinds of arrangements at the rash register. I think the level of trust of mom and pops have of people hiring is so high and they need to realize maybe its not best for the business to skip things like a background check. And my first job at pizza hut and they had a rule about how many loaves of bread in the back. Because if you had ten loaves of bread, people far more likely to take it home opposed to three there. It is a crime of opportunity. A crime of opportunity. So you want to ive learned so much. 60 of people wrapping up the poll saying they have stolen from the workplace. Dont steal lets just generally make that announcement, as well. Thank you so much. Thank you. Good to see you. So many it boggles the mind. Thank you, phil. Grumpy cat and its a hot story online. Even on cnbc. Com. Up next, well see what made the hot list. Stay tuned. Take on the challenge of Trading Options and futures. With the easytouse suite of trading tools. At optionsxpress by charles schwab. And well give you a one hundred fifty dollar amazon. Com gift card when you open an account. If youre looking for a trade idea, start at the idea hub. Where options and futures opportunities are organized by volatility, earnings, market activity and income strategies. Then run your new idea through the trade and probability calculator to get a quick look at the possible upside and downside. Streaming charts give you the realtime quotes and customized views of the market that can help you make your final decision. And when youre ready to make it happen, walk limit helps you save time by searching for the most favorable price. Find new ideas, analyze and execute your trades with just a few simple clicks, with optionsxpress. For a one hundred fifty dollar amazon. Com gift card when you open an account, call 18889805745 today. Optionsxpress by charles schwab. We were debating, stocks versus homes. That story prompting the debate, one of the most promising stories. Managing editor of cnbc. Com joins us now. Not just a popular story, but the number one story since we put it up about three hours ago. When you think about it, the home versus the stock portfolio. Two big things there. The story touches on all the points you raised in your discussion and people are eating it up. The comments on this story are fascinating. People saying you live in the home, but what about the taxes on the Capital Gains. People are obsessed with the subject. Jeff cox looking at correlation in the market. Thats a fancy way of saying everything moving one way and the other way. It has been that way since quantitative easing. Now that the feds stepped out, things are breaking up and not everything is going when some things are zigging and zagging. It makes it a stock pickers market and makes it more difficult and finally this one, we have two smart stories and one stupid one. Is this about grumpy cat . Grumpy cat. Its a picture . A waitress had a grumpy cat and a friend of hers put it up on reddit and it became a sensation and she got licensing fees and people putting it on coffee mugs. She made 100 million in two years. They put cold water on that and said not so much. She wont say how much she made, but its in the millions for a grumpy cat. I am familiar. I confess. Thank you, alan. I top the see you in that hat. Alan is back at headquarters. Remember Olive Gardens 100 pasta pass that started in september . Our next guest bought it and used it to feed the less fortunate. That high carb feel good story when we come back. Begins with the cloud. This is titanfall, the first multiplayer game built and run on microsoft azure. Empowering gamers around the world to interact in ways they never thought possible. This cloud turns data into excitement. This is the microsoft cloud. And youll see just how much it has to offer, especially if youre thinking of moving an old 401 k to a fidelity ira. It gives you a wide range of investment options. And the free help you need to make sure your investments fit your goals and what youre really investing for. Tap into the full power of your fidelity green line. Call today and well make it easy to move that old 401 k to a fidelity rollover ira. So we just talked about employee stealing. Heres a story to give you joy for the holiday season. In september, olive garden was selling never ending pasta passes for 100. Man decided to pay it forward. He bought and uses it to feed the homeless along with his friends and family. He found out you can use it for take out and he fed over 100 people on the streets of Salt Lake City and the surrounding suburbs. Matt, its great to see you. I love that you are doing this. Tell us about the experiences you had. First of all, thank you so much for having me. This whole thing was incredible from start to finish. The entire night every night pretty much the only thing i would think about is who can i give pasta to . It was unbelievable. My favorite one was one lady took pasta, he was a homeless woman. If anyone has seen the video, i give it to her and the first thing she said is thank you, i will share this with my friends. That put everything into perspective. You dont have anything and you are giving this to your friends. It was one of the neatest things i had ever done. I want to know how you came up with the idea. Its an ingenious way to pay it forward using a promotion that so many used for themselves. What made you think of using it in this way . Originally on reddit, random acts of pizza was big. I had done that a few times and there was no possible way i can eat all this pasta. How cool would it be if i did random acts of pasta. I could show up at someones house and say heres a random act of pasta. Did you encounter trouble and did people turn it away . What were the negatives if any. The only negative is no one is ever home ever. You show up at someones house unannounced and they are never there. Some nights i would drive around for hours and lock for people to give it to. That was the hardest part. Everyone was happy when i gave them the food. Were you looking for homeless shelters or just dropping it off to neighborhoods . Just like friends and family and stuff. I could never find any homeless people. Mostly friends and family. Thats a big statement for where you live. It has to be a good economy. Matt, its a great thing what you are doing giving food to the homeless. I encourage people to do that with your leftovers. Take them and give them to people. Where i live, there is a lot of wealth, but also a lot of homelessness. Its a great thing you are doing. I hope more people stick it to olive garden. Get as many passes as possible. Maybe we can feed a state with olive garden. There were people who took issue with you videotaping it. I would say listen, how many millions of people have seen this video now. I have gotten so many people that sent me emails and messages saying it inspired them to do something. How cool would it be that everyone did a random act of something every day. Thats fine, granted i only videoed one day that we did it, but how cool would it be if this gave someone else the idea to do something nice and change the world. It would be an incredible thing. Whats your day job, matt . Im in the beauty business. I sell beauty supplies. You are familiar with going doortodoor. Random acts of making people look really pretty next. I go to salons. Random acts of making people pretty. I like it. Thank you so much for being here. Great to see you. Thank you so much. I appreciate it. We hope the viewers are inspired to do the same. With a couple of seconds left, we will give ross the final thought. I think this is a great time to be an investor. You need to invest in the stock market and look at the Core Holdings that you have and add to it. With Interest Rates the way they are and the economy doing well, its just easy money. I thought you were going to say buy apple. Go long on unusual looking felines. Grumpy cat if you are into alternatives. Thank you very much for being here. Fast money coming up. Hey, sarah, whats on tap . We have dennis live in the flesh here at the nasdaq site to talk about the bear market and oil going deeper today. We want to know how much deeper. Over to you guys. Thanks very much. Fast money starts now live from the Nasdaq Market site in time square for melissa lee. Tim seymour and big moves in the market today. Energy getting crushed. Mcdonalds hurt by the strong dollar among other things. Apple dragging down the daz nabbing and the momentum names getting hit hard. We are talking about go pro, twitter, tesla taking it on the chin. We will tell you what to do with all of those names coming up. We have to start with a move in oil