Going from here. Opportunity in the rubble. We have an Energy Analyst who says there are stocks to buy in that sector if you have the stomach for it. He will tell you what they are coming up in a little while. Plus Venture Capital allstar jim breyer, he will join us live to give us his take on the current tech environment. But we begin with todays commodities swings, Jackie Deangelis is covering the action at the nymex, bob pisani is on the floor here at the New York Stock Exchange. First we tee it up with jackie. Jackie d. Good afternoon. Tea it up, you sure did. Oil prices bouncing between positive and negative territory today. We did close in the red, 37. 51 is where wti ended. I think that tells you where the sentiment was at the end of the day. Amid some confusion about if weve bottomed here or not. A 6 sell off brings people back into the market even if its just for that short term trade. What traders on the floor tell me is this, we dont just go down in a straight line, were going to test these seven year lows like today, 36. 64 was the session low. We will continue to test those until we break them and then move through them. Tonight we will get api data that will set us up for the department of energy tomorrow. The expectation is to see a little bit of a draw but the api could change that momentum tonight if they saw something different. The other factors of course to be watching out for, the dollar and also this upcoming fed meeting. These are factors that could change the game here, but when it comes back to supply and demand, especially on the supply side, we are awash with oil, there is no question about that. Jackie, thank you. Meanwhile, bob, we are looking at the commodities down draft rippling through the equity space today. Its been a rocky start, almost ten to one declining to advancing at the beginning of the day, right now only two to one declining to advancing but still ugly and particularly ugly in the transport sector. Tonight we have the airlines having problems, look at southwest down until 9 . Revenue for available seat mile, a key metric they said was a little disappointing that stock is down, the whole Airline Sector is down. The rest of the Airline Stocks weak as well. Take a look at the railroads, Kansas City Southern among many railroads down 3 , another 52week low. They transport many of the commodities like coal that weve seen out there. Also take a look at some of the Big Industrial names. Caterpillar, for example, another one, big names, eaten, ingersollrand, caterpillar all down 2 to 3 . Just again part of the concerns about the overall global slow down weve seen. Jackie talked about potentially bottoming in oil. Oil stocks were weak earlier in the day and many of them have now turned around. Look at cabot oil which was negative earlier in the day and is now up 4 . Most people dont believe these bounces weve seen them before but it certainly is encouraging at least its not completely straight. There are some decent names out there, home depot is having an analyst day, it just turned negative today but generally very good commentary for them. Autozone another company that also had an excellent Earnings Report today. Back to you. Well done, bob. Thanks. See you a little later. And to Jackie Deangelis, too. Joining our Closing Bell Exchange we have Kevin Guinness from raymond james, Steven Guilfoyle from deep value, he is also at post 9 and Rick Santelli checks in from chicago. Sarge, is this selloff about oil or is Something Else going on right now . Theres a couple things going on right now, i think we may have gotten the tax trade a little early this year due to all the volatility. I think some cages got rattled and some people got nervous. As for todays trade we just got above that 2062 level, we ran all the way above 2068 which is another level, we couldnt hold t second time today we couldnt hold 2068 which gets me a little nervous, its going up against that 38 level for wti oil which didnt hold, either, now we are down around 37. 50, 60 for the crude and i think its trading together right now. Devin, what about you and the impact across fixed income space. Today was the perfect fundamental achievement for the bond market. When you take Commodity Prices especially oil you take a lot of that long end inflation out of the market. The long end while it didnt move down too much in yield there is no catalyst to take it up. Focus is almost clearly on the fed and what is going to happen this week which is i think theyre going to move. The long end doesnt see a catalyst to go up. Does that include the fed raising rates on the short end if so what does that flattening yield curve say to you. If the fed is going to raise rates its not a long it could be a one and done so we are not talking about a long rate cycle upwards. I think there is some comfort there that you could still buy long high quality bonds, not worry about what is the achilles heel in inflation and just watch what the fed is going to do each meeting. Rick, whats oil doing to your markets there in chicago . Oh, i think its more of what were doing to oil. I really do. I think that we could talk about demand, we could talk about all the issues but i take a little different angle on all of this. I think that you have the whole globe calibrated to pretty cheap money, you have the u. S. Breaking out in a different direction, were repricing Global Capital, especially if the fed follows through. If you reprice Global Capital at a time when the globe isnt really cooking in grease, chi client, think emerging markets i think the volatility makes sense. I think the demand equation of energy compounds that along with the Foreign Exchange of dollar denominated commodities and i think you have the perfect storm. I disagree a bit on the long end yard to how it prices in. Listen, if your hypothesis is they could say data dependent but this is not a strong stretch of Economic Data anywhere on the globe really. If youre tightening into that i think the long end is going to have a problem with that. I think there could be inversions and i think the easy inversion is they are using tenyear notes to hedge all these deals theyre trying to get done before rates rise. Think commercial property, for example, and i see a lot of hedging in tens. So i think the upward pressure in tebs and the real soft scale of 30year bond we have is going to make that part of the curve even a bit more volatile and if you dont believe the fed is tightening for economic reasons, that means the path may be longer. They are afraid of something with low rates and i dont think one and done is going to satisfy whatever that need is. Good points. We turn back to the market, sarge, and look at the fact if its a dow day were down nearly 1 , with the nasdaq were almost positive. What does that say to you and is the nasdaq the more interesting play while the energy story shakes out. Info tech has been a place for traders to hide, its been one of the more consistent sectors or part of the sector. Names like intel, some of the semiconductors, thats been a place where traders have gone. Maybe they might not gain so much but they might not lose so much and ive done a little bit of that myself. Ism coming from a place where i know why where i speak. I think thats why you are seeing a little bit of support in the nasdaq names. Biotech has been a stand out today. I happen to know you dont touch that sector but it has been wrong, it was up 3, 4 . Speaking of a guy thats been hurt once or twice when he was young biotech scares the heck out of me. Too volatile. You bet. Kevin, what do you recommend to people when theyre looking across the fixed income space, you know, i guess it all depends to some extent on the fed or does it . How is the energy shake out moving through your space as well . It has certainly affected high yield bonds, most of that market anyway, spreads have widened out on high yield quite a bit. There is an opportunity to buy in that space, but, you know, its more of a wait and see versus trying to get out in front of the trade. The rest of this looks really good in the middle of the curve, in high quality products like muny bonds, press ri agencies, even mortgages. Its not a market we are going to fear of a big rate gap up. Weve got more time with this whenever wun thinks its kind of dead but that middle quality space is where were going to try to play for as much as we can get out of it. Thanks, guys. A little more than 50 minutes to go here in this market today. As mentioned the dow is down 140 points, but the nasdaq has been fighting to try to turn positive. We will keep an eye on that. The s p down 11 points. Interesting pockets that have come back today. When we come back we will do bargain hunting on wall street. A leading Energy Analyst will share his list of stocks that could pump up your portfolio if youre willing to take the chest. Jim breyer invested in facebook early and he will speak with us exclusively about whether the age of the unicorn startups is over. Welcome back. Continuing to keep an eye on the impact of Falling Energy prices and companies are having on this market. Exxon the worst performer one of them in the dow today, that index is down 146 points, s p nasdaq holding up a little better, especially the nasdaq which is largely flat here. Kinder morgan lower, moodys has placed the Energy Pipeline operator on negative outlook. Its down 3 , a little more than that. Qualcomm falling after european regulators slapped two sets of charges against the chip maker, the eu allergies that qualcomm illegally paid a Major Customer to exclusively use its chips and also claims that qualcomm sold chips below cost to force a competitor out of that market. Qualcomm says it could face fines of up to 10 of its global revenue for each of those charges. Southwest airlines reversing yesterdays gains with the air carrier now cutting its forecast on a key revenue metric for the Current Quarter. That despite a reported increase in traffic last month. Briefly dipping down 40 a barrel, this is brin, wti has already been there. Our next guest is saying there are good buys out there still, joining us now is neil dingman. Neil, welcome to you. Thanks, kelly. First of all, how much further do you think the price of oil goes from here . I mean, right now after the ceiling opec essentially took the ceiling off on friday i look at it at really a threeway game of chicken between russia, the u. S. And opec. Based on what were seeing now we could see at least another 10, maybe 15 down side to push the pressure until we see some stabilization. Are we at the point of pain for a lot of the companies that we are going to talk about here . How much lower does it go when we really start to see the pain in these companies . Bill, a couple that i think ive given you really have very clean Balance Sheets, they operate in some of the highest return areas. So i would say those i dont feel bad but theres certainly Smaller Companies that i follow, some you have already seen file bankruptcy, others could follow, certainly even in the next coming months. I see your point about a voigsd leaf r avoiding levera. Obviously companies that are relying on straightforward Balance Sheets and cash flow from operations are they going to be able to count on it Going Forward . Thats a great point. To me as long as you are in one of the better basins, number one, the perm yan basin, eagle ferd and if you want a little gas exposure the utica shell out east. I think you can still make some money here in those three. Pioneer natural, for example, thats trading up today 2. 2 . This is one of those companies you like for that reason, right . It is, bill. They are one of the largest owners of acreage in the permian ba basen. They can up their spending or cut it back. They are in a unique position operationally and financially. What about matador. A smaller version of pioneer. They are in a little bit different area of the permian called the delaware basen. They have additional production around san antonio. A little Smaller Company but what they, too, have in common is they can dictate how quickly they want to grow or cut back right now. A lot of focus on the big guys and their dividends, you know, chevrons ceo was here saying ours is going to be safe even though we would rather have a higher price of oil we will keep raising that dividend as weve done. Do you believe that and are other dividends in jeopardy, do you think, quickly . Bill, listening to john lawson earlier thats the key for all these companies, the large Companies Like an exxon have more than enough cash to keep these dividends going, as he pointed out they will probably cut their send e. Spending but they will not cut their dividends. Neil, for now, thank you. A couple of ways he would play the energy space. We have a news alert on Keurig Green Mountain. Kate kelly is on the phone with details. Whats going on now . Bill, Interesting Development in the last day or two. One of the largest the Largest Hedge Fund holders of Keurig Green Mountain one of the largest institutional holders, Eminence Capital issuing a statement saying although they would be supportive of the current deal as its structured at 92 per share they think the current franchise is worth much more and expect to see other bids emerge. Specifically they say we are close pleased that Keurig Green Mountain is referencing a [ inaudible ] that said we believe there is significantly more value inherent in the keurig hot and cold franchises than 92 per share. An Interesting Development for a hedge fund that based on very huff math has made over 30 on paper with this investment already, but its already a note, i think, kelly and bill, to the fact that this stock has traded in literally a 100 range over the last 12 months. 92 being somewhere around the midpoint maybe even on the low side to their point. Its having to watch how Keurig Green Mountain even after this news its up 1 , its not even trading at 90 which leads you to think investors still might see space to the down side not the upside. Even though youve mentioned theyve been much higher than this current level that wasnt the case more recently. Why isnt that recent history with the price being as low as it was why isnt that making the case for the price being at least where it was but not moving higher . I think thats the more obvious question and one that a lot of people were raising yesterday. I mean, if you look at the closing on friday versus yesterday it was jie nor news is terms of the spike. 78 which on its face is just an enormous premium. So i guess that explains why a fund like eminence would say we do support the deal here, however, wed like to see more. It may be a tough case to make, though, and it is a complicated stack as we discussed yesterday with the panel. This is one that the Investor Community has been extremely divided on between the long and the short. That is for sure. You know somebody got hurt yesterday if they were short that stock. Absolutely. Thanks very much, kate. See you later. We will take a lack at 40 minutes left in the trading session. The dow was down 245 points at the low of the session, we are down 170 right now. Nasdaq holding its own, now down about 5 points. New worries for chipotle, 80 Boston College students reporting feeling sick after eating at the same location. We will get you the latest developments. Up next Venture Capitalist jim breyer tells us if tech val operations with still out of control. Welcome back. Another down day for wall street on the back of yesterdays big sell off, down 155 points on the industrial average, the s p down 13 and the nasdaq down 4. Although the nasdaq was higher earlier because in part biotech has been bucking the trepd today, the ibb was up 2 a little while ago, just below that level, celgene is up 2. 6 and biogen is up 2. 5 today among the high flyers, if you will, in that sector. Speaking of high flyers Julia Boorstin is attending the Business Insider conference. They bring together big names in media and tech. She joins us with Venture Capitals jim breyer. Thanks so much. Jim, thanks for joining us today. Thank you for having me back. You are a legendary investor, early investor in facebook but you are here at the conference to speak with the ceo of legendary the film studio. Why did you decide to invest in legendary i know you also sit on the board. Why legendary as opposed to another Media Company . I had invented and joined the board of Marvel Entertainment in 2006 and i always had a passion for intellectual property, i was a comic book geek as well i should say but intellectual property as applied to a number of different distribution mechanisms, the internet as well as live theatrical and heat al cal. When i met thomas he reminded me so much of a lot of the original vision around the marvel team which had been acquired by disney in 2009. I invested in thomas and legendary in 2010 and joined the board. Now, i know you are also on the board of 21st century fox. Yes, i am. There has been a lot of conversation about the future of content distribution. Do you believe that the broadcast tv model is dying and how does that impact your approach to the sector . My view is broadcast television is dying and its going to die a slow death but its dying in an accelerated fashion. When we look at estimates around cord cutting, when i think about how quickly the cord cutting and the different bundles are occurring, i think underneath its happening much faster. It represents enormous opportunities for new media companies, i think media as a category is perhaps more exciting than ever before, but many traditional media companies, i believe, will be under enormous pressure being forward. How does that perspective impact your advice to both legendary and fox . Well, we have two superb entrepreneurial senior teams, the team at legendary led by thomas i believe pushes innovation in so many ways, whether its Virtual Reality, data analytics, thomas has been a master at hiring terrific people to drive those parts of the business in addition to picking some very good movies and films. And at 21st century fox there is a senior team that not only recognizes the world is changing but is very good at experimenting around new models, new Business Models and ultimately very significant longterm shareholder value. Bill, do you want to jump in here . I do. Jim, Bill Griffeth here. I want to ask you about a contentious issue in the fight against terrorism. This standoff that exists between Silicon Valley and washington. Washington wants Technology Companies to give them access to the Security Systems that exist in their technology these days as they go after the terrorists, but the Security Companies the Technology Companies of course have been reluctant to do that for privacy reasons among other things. Where do you stand on that issue . Is there a role for Silicon Valley in the fight for terrorism or not right now . I believe there is a very strong behind the scenes role if done in the right way. I am a strong privacy advocate. At the same time the great Silicon Valley companies, google, facebook, apple and others recognize, i believe, at a high level that some cooperation with important Government Agencies is critical, but behind the scenes in a quiet way, in a substantive way is in my view the way it should happen because i also very much believe in privacy. Can you quantify that . On the one hand can you maintain privacy but still have this back office negotiation that goes on . What would go on there . What would be the objective in that regard . Bill, there are privacy experts who would know much more about it but the way im talking about you. You say you are in favor of privacy but you still want to see some back office negotiations to try and help with the terrorist cause. What would that be . That would be following a very detailed Legal Process where the right information is being surfaced and the right Technology Companies are providing cooperation when there is the right Legal Process in place and its simply not an openended back door. Jim, while we have you i also want to pivot and just ask if you have any personal interest or would invest in daily fantasy sports. Do you think this is an area that should exist, that should be part of our fabric . I do. I believe very much that from an underlying theme basis a year ago at this conference i speculated and believed that google would be the first trillion dollar market capitalization company. I believe its as i look forward over the next five to seven years, google, facebook and apple in that mix all have a very good chance of breaking through a billion dollar or trillion dollar market cap and a lot of it will have to do with secure messaging, privacy, communication and implementations of Artificial Intelligence and Virtual Reality if we want to dream a little bit. Now, you have invested in a range of different types of companies. What do you think about valuations right now . Are we in a bubble . Different segments are very attractive, early stage and i do believe amazon, facebook, google, apple are very attractive longterm, perhaps not for the next 12 to 24 months or perhaps they might go up and down, but as a fiveyear hold those companies are extraordinary. A chinese internet companies, bido, ten cent, alibaba are longterm extraordinary companies. What worries me where i see no longterm upside as a category is late stage private technology valuations. If i run the probabilities which i like to do there is a twothirds to three quarter chance in the late stage private markets the 150 or so unicorns there will be a 50 or better correction and a lot of that is due to the fact that the very best internet companies, facebook, google and others, are making acquisitions, working the acquisitions into their own eco systems and scaling them, such as youtube or instagram in ways we have never seen before. And does that outlook on the bubble that you expect to burst affect your investing strategies right now . Certainly affects my advice if its a late Stage Company i certainly encourage the Management Teams to keep burn rates very low, experiment but not with a lot of cash invested in the business, have 18 to 24 months cash on the Balance Sheet and have every Business Plan put together, reflect that we could have an 18 to 24month very difficult cycle. Ive been through many cycles positive and negative, we are always in a boom bust cycle somewhere in the Worldwide Technology business. Certainly a fascinating time in this cycle. Jim breyer we appreciate you taking the time to talk to us today before we head up on stage. Back over to you at the nyse. Time for a cnbc news update with sue herrera. Hi, bill and kelly. Here is whats happening. Gop president ial candidate ted you see cruz says he disagrees with Donald Trumps proposal to prevent muslims from entering the u. S. But he is not interested in criticizing him. He spoke while outlining his proposed law to freeze for at least three years the entry of any refugees from countries where al qaeda or isis control substantial territory. Apple revealing its own Smart Battery case for the iphone 6s, its priced at 99 and promises up to 25 hours of additional talk time as well as 18 hours more of internet use while on lte network. An effective cancer drug has now been approved by the fda sold generically. The drug known as glevec for the treatment of chronic myeloid leukemia. It will be available by february 1st. It was 35 years ago today that john len nonwas murdered by mark david chapman. It was shortly before 11 00 p. M. When chapman opened fire with his 38 caliber pistol as len nonemerged from the building. Chapman was last denied pa role in august of 2014. That is the cnbc news update. Thanks, sue. 30 minutes to go here. Dow still down 164 points while the nasdaq tries to stay positive buoyed by biotechs. Energy the big weigher on these markets today, the s p is down 15 points, 7 10 of a percent right now. We will come back and talk to a top trader and he will tell us wh hes watching as we go into this last half hour on this shaky tuesday. Also ahead, bank of America Merrill lynchs head fd Commodity Research saying a black swan event that could royal global markets, hes coming up next. 15 points, 7 10 of a percent royal global markets, hes ready or not we are into the last half hour of the trading session on another down day on wall street. Joining me on the floor of the New York Stock Exchange is matt chess knock. Are you waiting for an entry point, are we there yet . A lot of this is retracing this isnt that important but there are bigger things at play, oil being one of them. 38 is the price we looked at for support all along, we broke through 38, we looked for a move significantly lower, we got that is correct its retested 38 a couple times here. Thats the one thing we are probably going to look at. If youre looking at an entry point, some of the oils, not the big oils but some of the smaller ones have acted pretty good on a bounce back level. And the biotechs have also have h. A good day here. You see rotation into some, out m some not technology but transport names in particular and into the biotechs, theyve been down over some time, there is rewartd to that risk that you took. Thats another sector thats looked good today. We have fallen through a few years. Sarge was talking about 2068 maybe as a number hed like to see them get through today. Probably short term. We didnt get through 2100 on the s p and it came back to these levels here. Short term you are probably looking at that as a bit of resistance. Overall these numbers and moves arent that dramatic in the grand scheme of things, there are underlying things that show more concern, transports being one of them. You can supplement your portfolio by buying biotechs or technology, those are acted pretty well. Thanks very much, matt. Kelly. Oil has been on a wild ride these past few days, its not just oil, natural gas, copper also down 8 in the past month. Joining us with 2016 predictions is Francisco Branch from bank of america, merrill lynch. Welcome to you. Lets begin with the key commodity, oil, wti. Where do you think it goes next year . We think in the next few months wti and brent crude prices will be pretty challenged. We have more iranian barrels coming into the market over the next few months, we have a fed hike most likely in the next few days and we are going to also see farther monetary easing in china which will put downward pressure on the chinese currency in our view. Again, remember that right now refineries in the u. S. And around the world are running pretty strong, we are almost at 17 Million Barrels a day of crude runs which means the demand for crude oil still pretty strong. The next couple months we are concerned all the way into march or april the market is going to be pretty flimsy. Francisco there is a disagreement on what the dollar does if and when the fed raises rates maybe next week, maybe there is a sell on the news, kind of a sell off and we dont see the kind of we dont end up parody with the euro or there are those who feel we are destined for that. Where do you stand on that and that the impact in commodities. We see the chinese yuan weakening towards of 90 and we think those two currencies which are obviously vital to World Economy are going to add downward pressure on the commodity complex so thats where we stand on it. We think there is a clash here between the fed hiking and the rest of the Central Banks around the world easing. That we think results in a stronger dollar throughout the next few months. Against this backdrop of the budgets, the finances of a lot of these key exporters, especially saudi arabia are coming under a lot of scrutiny. You say that your black swan event if you had one that could lead to brent prices collapsing to 25 a barrel is what exactly . Well, the black swan is basically saudi gives up on its currency peg and there are many reasons to think that middle east countries should think about t look at the norwegian or the canadian or Australian Dollar or even some of the emerging market Oil Currencies like the mexican peso. Weve seen a massive move, massive depreciation move across all of those currencies and that helps accommodate domestic demand conditions. The saudis with the drop in prices are going to soon face the choice to either draw on the resurface massively and potentially risk their financial future or cap production or go for a deep cap ex plug. Its easier to pull the plug on the currency and let the saudi rialt flow. If saudi follows russia or mexico or brazil and some of the other emerging market Oil Exporters and lets the real go it will change t structure for the whole industry in oil. Let me ask you on another kmod i will i have been keeping an eye on thats lumber and the impact it has on the Housing Market in the united states. Its been acting pretty well here the last couple of months, yesterday in the face of the commodities slide it was up 2 , today earlier it was up 2 . Is it starting to tell us something about the Housing Market or whats going on there . Well, you know, the Housing Market in the u. S. Has become in some ways the new safe haven, the new el dorado, the new gold. We have seen a move away from gold and now were seeing u. S. Housing activity picking up, people buying homes, not just americans by the way, were seeing people from all over the world coming in and buying houses in the u. S. And apartments. That i think is leading to a big pickup in Construction Activity and is driving the demand for not just lumber but the demand for domestic steel in the u. S. Is going to be pretty robust here. Evening there will be a number of commodities that will benefit from that pick up in housing activity. Remember, the u. S. We only have 300 Million People here, china has 1. 3 billion. If they slow their Construction Activity thats a much bigger effect than us slowing down Construction Activity here at home. Its a big gap in demand. We will take it, though. Every little bit helps at this point. Thank you so much for joining us helping focus our attention on what to watch next year, the collapse of the energy and commodity bubble could be as damaging as the collapse of the housing bubble. Taking a break, we have 19 minutes left in the trading session with the dow down 167 points, chipotle shares have been getting crushed over the restaurants e. Coli outbreak but e. Coli was not one of the reasons their store was closed in boston. Also the video streaming war taking no prisoners, amazon ups the anti with a new cord cutting package while netflix expresses global content concerns. The latest on tvs changing picture coming up. Here at td ameritrade, theyre always working. Yup, were constantly making thinkorswim better. Like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. If youre just joining us the dow was down 245 points this morning, down 138 right now, the s p down 12 and the nasdaq holding its own down just 1 point right now. Meantime shares of staples have moved lower today, the company vowing to fight a federal trade Commission Lawsuit aimed at blocking its merger with office depot. Ftc says the deal would hurt competition in the Office Supplies market. They tried to merge back in 1997, they were blocked at that time for the same reason but they now say there is a lot more competition. Let me think what has changed since 1997, does it have six letters and chart with an a . Is. Chipotle shares down after another store closing. It does not appear e. Coli is the culprit. Morgan brennan has details. Boston college saying that 80 students have reported falling ill after eating at a chipotle in bostons cleveland circle. Now, chipotle has closed that location and the company says that it is likely norovirus, not e. Coli and that is a theory that is at least in part backed by a report of Health Code Violations released by the city at that specific location which the Company Tells me its working to address immediately. Here in midtown manhattan we have caught up with consumers all day on the sidewalk here and many seem to be very aware of the incidents that had been affecting chipotle recently. Ive noticed that the chipotle in my office the line has gone way down. I think people are definitely taking notice. I mean, theyve got to clean up their act before you start going back there to eat again, especially when you have little kids that might get sick. So it is not clear what food source actually caused the broader e. Coli outbreak thats been linked to chipotle. The cdc has confirmed that outbreak has been linked to chipotle in nine states, affected 22 people including 20 hospitalized and those cases all in october and november. At an Analyst Event later today executives for chipotle reportedly talking about all this saying they will run full page ads about how the Company Plans to strengthen their food Safety Measures also they will send customer discounts gee a direct mail and they will reach out to their customers via social media and do all of this once the outbreak is declared the e. Coli outbreak is declared over which as of right now we have no timeline for. Shares are down again today and since early november when the first e. Coli cases came to light we see shares down about 15 . Back over to you. How many people, morgan, did you say youve seen in and out of that location today. So during the lunch rush hour it was actually pretty full, we saw a lot of people going in to eat, we saw people even before the store opened going in and placing orders for their burritos. It was not jam packed, never a line out the door, but there are people still going in to get their bur reit toe fixes. To be clear, e. Coli and no other food borne illnesses have been found at this location or other ones in in new york market. Right. It just seems odd that they have yet to come up with a source. Right. I know its been two months. Point point what the problem is. They havent found anything yet. Crazy. Thanks, morgan. Ten minutes to go here. Dow is holding on with a decline of 143 but theres more disparate across the indexes because the s p is down 12 points, the nasdaq only down 2. How about the impending rate hike impact the small caps . Quincy crosby of prudential joins us after this. Eight minutes left in the trading session. Art cashin stopped by and told us it was 400 million to buy. A couple hours ago it was the bias was to the sell side purely but he said it switched a little while ago. We will see if that has any impact as we go into the close with the dow down 125 points. Joining us right now quincy crosby. What do you make of this volatility the last week or so . This is what we have had from time to time ever since janet yellen telegraphed months ago that she wanted to raise rates this year. When she would switch the market rejoiced, i think she made it really clear its going to happen next week and its the market trying to figure out whats in store for it. And that means that you are going to have more volatility and its a market that is going to move on fundamentals, something we havent seen for a long time. That means earnings, top line Revenue Growth and youve got this tug of war between those who say that the Global Growth is slowing versus those who say, huhuh, global pmis are starting to turn, emerging market bad news and bottomed and this tug of war is going to continue until the earnings season and the market gets through, you know and people are watching to tried to figure out whats happening with the rest of the world. Some of the advice we see in your notes is maybe for people to stay small, stay domestic. Is that right . Its been a tough year for that strategy. Absolutely. You know, its a trade. And theres a difference between investing in trade and end of january we will see institutional money going to work. In terms of trading lets face it, if you see the euro weakening again that is going to push up the indexes, particularly the dax. Japan, a stronger yen is not going to be helpful for the japanese markets, its been one of the best performing markets. Those are trades going in. Similarly small and mid cap ought to get a bid if the u. S. Dollar continues to rise, if the market prices in more rate hikes. So there is all opportunity for the market but the fact is its going to be volatile. Thats in the cards. We are already seeing it. We are. Thats for sure. Quincy, good to see you. Thank you so much. We will take a break, come back, pisani and i will have the closing countdown for this day. Gun maker swiss and wes son is going to release their earnings, shares looking at highs not seen in eight years. Youre watching cnbc first in business worldwide. May not work. But a few might shape the future. Like turning algae into biofuel. New technology for capturing co2 emissions. And cars twice as efficient as the average car today. Ideas exxonmobil scientists are working on to make energy go further. No matter how many tries it takes. Energy lives here. When you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. Thats where at t can help. At t has the tools and the network you need, to make working as one easier than ever. Virtually anywhere. Leaving you free to focus on what matters most. Two and a half minutes left in the trading session on this tuesday, another down day, bob pisani joining me for the closing countdown. Another down day. Oil pretty much calling the shots for much of this day. The dow was down 245 points at its low of the session and art cashin just now telling me that the bias has now flipped back to the sell side here as we go into the close. So some volatility reigning here. Wti crude hit 36 and change before it did start a bit of a come back late today, that bit a little bit under the stock market there. One sector that did well today the biotechs, ibb was a good gainer relative to everybody else. One more thing i will show that did well today, the volatility index, the vix which is still not close to 20 yet but a 9 gain. Lets call it elevated but not in the red light zone. I call 20 and above red light zone. I was i was encouraged by the fact that retailers did a little bit better today, biotech did better and those Master Limited partnerships, those lmps that got beaten up so badly they all went in the gray, the olare olarean mlp got beaten up badly yesterday, up almost 10 today. It was not on heavy volume, it wasnt like everybody rushed in. In general with the down side today we didnt even have very heavy vome, two to one the declining to advancing stocks, it was a little choppy through the day. We were ten to one declining to advancing at the open, a gap down 20 points on the s p. It was a lousy open but it got better from there. We retested the lows about 10 30. Is the bottom in . Nobody believes necessarily after all of these false bottoms that we have seen in the energy group, nobody particularly believes it. I was a little concerned that the Big Industrial groups, the caterpillars, the ingersollrands that had been beaten up were down 2 to 3 on no particular news too today. Another lousy day for transports and airlines were down. Transports a lousy day with oil at a low. Southwest had some comments on their passenger revenue for available seat mile was a bit on the weak side. Overall today not quite as destructive as yesterday in terms of the volume. Thanks, bob. Get get this, nokia ringing the closing bell at the big board, celebrating their 150 year anniversary. At the nasdaq its august home and meals on wheels ringing that bell. Hour two of the closing bell with kelly evans. See you tomorrow. I think they were making rubber boots at the time. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. Here is how were finishing the day, the dow down 159 points, we had exxon, caterpillar those under pressure today. The s p 500 giving up 13 points, about threequarters of 1 . The nasdaq closes below 5100. We have our very own mike santoli and kate kelly and fast money trader steve grasso who will join us shortly and pavel mulchano. We had we had dramatic moves in the we canities, today i guess the most dramatic thing is oil kept weakening. It continues to look like a liquidation there and the rest of the market did the familiar thing in a way, it knocked around the middle of the day, the big growth tech stocks did outperform, obvious hiding in names like facebook, amazon, price line is another one, but really were stuck, were still in the middle of this zone, we were here in late october, third week of october, were still here. I will point out almost 2 loss in the big banks that was kind of out of nowhere, i think its because Corporate Credit does not look particularly healthy right now and curve flat in i think. Just to get back to a quick point, i mean, i think the story goes beyond oil, i think its a general commodities weakness thats infecting the rest of the market in many cases. You saw renewed concerns about chinese trade today, you saw the angloamerican slashing 85,000 jobs suspending their dividend, this is not a new story for miners but that dragged down that sector as well pressuring industrials. You have concerns in the oil patch, i know we will talk about that a bit more in the show. I think the commodities story is dragging down a lot of names. We see strength in tech. Some of the best performing hedge funds are in the consumer area. I recently reported on one fund that was up 40 . What are they in . Amazon, ebay, expedia, those happen to all be tech names but consumer long picking. Consumer tech. Im glad you brought up angloamerican job. These are massive job cuts, its finally hitting home in a way. Pavel, on that note the question is there has actually been very little response across a lot of the Energy Complex to the drop that weve seen in oil and other commodities. Do you expect the pain to start getting more deep . Well, pain in the stocks . Pain in the stocks. Well, look, a lot of Energy Indices as you know are down, you know, 20, 30 year to date. This is the fifth Straight Year that energy is underperforming the s p 500. So i would probably debate on the point of not enough pain, its the fifth Straight Year of underperformance. The energy as a percentage of the s p market cap is at a ten year low. Lowest level since 05. This cant go on forever. Eventually there will be a bounce and there will be a trade in oil, but obviously we are not there yet. Our teams view is 12 months out oil can be at least 60, potentially 70 bucks, almost a double from where we are today. Well, you see that in the curve still to some extent as you look further out. We also heard that from john watson who was on power lunch today. We know there will be an upturn in this business. There are projects that we may not be choosing to fund today, but it doesnt mean we are abandoning those projects, were delaying those projects. We will need the people to develop those projects, but in the meantime we are making some choices, we are trying to get our costs in order. There are echos, pavel, where access to credit has allowed in many ways even a further reckoning as youve said, equities are down, 7 of the s p from what it used to be but a lot of these companies are able to push off even worse moments because they still have access to credit markets. Well, E P Companies do have access to credit in the sense that they have fixed assets that many be used as collateral but they are not borrowing right no right now the mantra in the industry is little within caps low. This is why global oil and gas cap x this year is down 30 in the united states, down 50 next year its going to be at least as much as for a second Straight Year. It is the deepest two year decline in oil and Gas Investment since at least the 1980s. So its practically unheard of. This is this is real pain. This is beyond the stocks, this is actual disinvestment in the industry. Look, we are already seeing a supplier response, u. S. Oil supply has fallen practically every month since march. Brazil is down, north sea is down, russia is fairly flat. By the end of next year if our oil model is right were going to be in an undersupplied oil market, undersupplied. A physical oil shortfall. That is a recipe for oil to get into the 70s. Hang on before i bring kate back in steve grasso joining us off the floor. Kind of to this exact conversation at what point if ever are we going to see we canities decouple from the price of crude oil . I think you do see it on a day to day basis. The dollar against crude seemed like an every day event. You dont see that. You also dont see the underlying stocks reacting on a daily basis with the underlying with the overriding commodity anymore. I think thats off. But i think the biggest take away fwr this, companies can cut their supply and you can see this on a daily basis, but they dont know since 8 85 we are getting guidances where they make money. But for me a defining moment was when mexico hengd out at 49 all of their 2016 output. Wow. So if theyre going to do it who am i to say its going to be worth more than 49 and for a handful of times its been below 40 this year. Just a comment on what pavel said, but i know there are others that say were forecasting for a turn around in oil the middle of next year, assuming that the riyal balancing weve been expecting in the u. S. Actually occurs. Im wondering whether that may be ambitious because the reaction weve seen still not terribly swift. I know weve laid down a lot of rigs in the u. S. Production continues at pace. We are stockpiling inventory in the u. S. , demand is growing is a bit but seems slow. The fundamentals are totally out of whack. In terms of access to credit, sort of. I have a looked at the numbers there are still a handful of deals being done, but at a far stricter terms than they were. One name that i chase often is American Energy partners, they went out with a deal with good assets that people liked, they wanted an 8 yield they ended up with 13 and stricter covenants and that repriced not just their bonds but a lot of other bonds as well. Pavel, what would you say to all of that . As i said, debt right now is tough and even the quality producers are not by and large going out to raise Debt Financing because the terms are punitive as you just gave an example of that. Right now the mantra is living within means, right . If companies did not need to live within their means they could continue to spend through the down cycle, take advantage of the Lower Service costs but were looking at two Straight Years where u. S. Oil and Gas Investment is down at least 50 , the rig count is already at multiyear lows, its only heading lower practically every week now and globally were seeing the same dynamic, maybe not to the same extent, but spending down 30 for two Straight Years. We are going to have oil and Gas Investment this year is already at its lowest level since 2010. Next year its probably going to be at its lowest level in a decade. That has consequences for supply. Absolutely. And so we take your points. We thank you so much for joining us this afternoon. Have to leave it there for the time being. That is pavel joining us from wra monday james. Morgan stanley announcing plans to cut 1200 jobs. Those cuts represent just over 2 of the firms global work force and a source says 470 of them will come from the investment banks troubled fic or fixed income commodities and currencies unit. Those 470 jobs represent 25 of fic staff. In a memo they are saying the cuts will result in businesses that are critically incredibly sized for the current market. While maintaining the ability to deliver for our clients across products and geographies. A long problem area for Morgan Stanley fic clocked in a strong First Quarter but the job cuts the latest in an effort to shrink the fic business. The source says the firm plans to take a severance charge of 150 million in the Third Quarter to cover the costs of the cuts. No word on what they might actually save the bank. Details on that likely to come in january when morgan provides its annual outlook. Back to you. Mike, its so interesting because this part of the business was the juggernaut for so many years, especially leading up to the chris is, but to some extent as commodities did have that strong rebound afterwards. If its true they cant make money at the rates previously assumed what does that mean for morgan and the Investment Banking businesses. Morgan stanley cut back too much at some point, at least in their perception, they built it back up, especially in bond trading. I really do think there is a combination of they are just not being enough to go around for the big players. Standard wisdom has been this accrues to the benefit of the jp morgans and Goldman Sachss, they only have to be faster than the other guy to the faster than the bear but their stocks are trading tick for tick, goldman and Morgan Stanley. This is a multiyear story. Morgan stanley pulled back dramatically in the fixed income area, there was a real perception i remember in 2009 they were reluctant to use Balance Sheet, they missed out on some of the dislocations in the market that was so profitable for some of their competitors and that had to do with some scar tissue from the financial crisis, but they have sort of been back and forth on how large this franchise should be, obviously they still serve clients no want to do commodity hedging. Duke that the rest of the issue shouldnt have this knee jerk response of this might for trend poorly for us, too . Its hard to say. Obviously james gore man has gone in a different direction and i think a lot of people give him credit for what he has bun u. Done on the brokerage side and building a stickier longer term business. That said, as you know, thick is often the wild card and the Profit Growth engine at a Goldman Sachs or a jpmorgan so to lose that potential upside is meaningful. Their First Response is we have to spa pay our people less. You know how well traders take that. We have a news alert to get to on mastercard. Dominic chu, what can you tell us . Shareholder capital returns. Mastercards board of directors has announced they are going to boost their Quarterly Dividend to 19 cents a share, 19 boos, they will also add 4 billion to their previously announced Share Buy Back program. Also want to bring up whats happening with Bristol Meyers squib. Those shares up fractionally after the board says they will boost their Quarterly Dividend but to 38 cents a share, thats about a 3 increase. Again, Bristol Meyers and mastercard both upping their dividends, mastercard also adding a 4 billion Stock Buy Back Program to its existing program already in place, kelly. Back over to you guys. Dom, thank you. Steve, you have Bristol Meyers, mastercard, Morgan Stanley which one do you buy . I think i go with mastercard. I like the credit card payments that end of the business. Ultimately as we go digital they will be the ben fathers of people coming in through their pipes, it doesnt matter how they get in there, you are attaching a card to those digital payments. We mentioned earlier financials did have a tough session today, what do you think is going on there . I think everyone has hung their hat on a rate increase at this point and i think theyre trading basically off of that. For me when rates rise counter intuitively utilities outperform, energy outperforms. Obviously we will see a different time with energy this time. Yeah. Usually have higher inflation, higher Global Growth. We dont have either of those at this point, but utilities there is still that hunt to get paid and i still think that even though they had a poor performance this year they could outperform next year. Where does this leave this market . The s p closed around 2063. 200 Day Moving Average in the s p cash is 2064, it closes right there, yet again. So until we get yellen, until we get two days later that huge expiration we are not going to get any real guidance in the marketplace, probably sideways grind, i think we take our lead from china unfortunately. A familiar one there, the sideways grind. Lets get back to dominic chu with an earnings alert on smith wesson auto. The gun stocks have been a focus given a lot of the tragic developments over the past month or so. Smith wesson shares are down 2. 75 in the after hours trade on 55,000 shares worth of volume. This after smith wesson comes out with earnings of 25 cents a share, that beats the equipment of 20 cents a share. Revenues coming in slightly better, 143 million there, estimates were for 139 million. They also did offer relatively strong Current Quarter earnings per share and sales forecasts. So again shares are moving a little bit lower but remember this is also a stock that has more than doubled so far in 2015. Also want to turn your attention to dave and busters, the ticker play reporting earnings per share of 12 cents that beats the analyst estimate of 2 cents a share. Revenue also better, 193 million, 185 million was the estimate there. Their Comparable Store sales up by 8. 8 . That handily beats estimates for a 4. 9 increase. Theyve also boosted their full year revenue and comparable sales store guidance, up 6. 5 on 63,000 shares of volume and dave and busters is a stock thats already up 44 year to date going into these numbers. Back over to you. Remember covering i think their last quarter, same thing for dave and busters. Autozone also was a strong performer on the back of its earnings. Some places where people have been saying where is the consumer, a few places theyre spending. Bricks and mortar, too. Dave and busters seems to have been taking a lot of the thunder that used to be buffalo wild wings, half sports bar, half game center, it seems like a beneficiary consumers have a little more cash in their pocket. Do they have one of those free shooting. Yes. I love those. Isnt that odd that thats the one thats going to gain market share. You would think everything Going Digital that they would gain market share. Get rid of the phones. I have four kids, i dont want to go there, im not touching any of their basketballs. Can we talk about smith wesson and politics. I think this is an interesting report. As weve seen afters these tragic shooting events we often see sales tick up dramatically and that would seem to be happening here. I noticed andrew sorkins call on the Divestment Movement with gun stocks, we have seen something comparable with fossil fuel stocks and university endowments. This news suggests to me that that is still a fairly isolated argument. We will have more on this story with smith wesson and what has been happening with gun sales coming up. For now we will leave it there, steve, thanks for joining us, be sure to catch more with the fast money crew at 5 00 talking about yahoos moment of truth possibly coming faster than we think. Amazon firing a new salvo by offering premium subscriptions to new partners. Chipotle shares falling 15 , but is the stock too cheap to pass up now . A stock brawl is next. Youre watching cnbc first in business worldwide. More, this time from krispy kreme. Dominic chu, how did they do . Its a relatively spars after hours trade, krispy kreme down a half a percent on 12,000 shares of volume, this after the doughnut chain reported earnings in share in line with estimates at 18 cents, revenues coming in slightly light, 129 million, the average estimate 133 million. Comparable store sales 3 gain. Analysts were looking for a 2. 8 gain. Also offered full year guidance, 78 to 80 cents a share, wall street was looking for 78 cents a share. Slightly better than estimates. This is already a stock that was down 28, 29 year to date going into these numbers as well. Perhaps just not good enough yet to give the stock a bit of a pop. Mixed picture in this Earnings Report. From doughnuts back to mexicans, shares of chipotle were lowered today on reports that 80 students from Boston College became sick after eating at the restaurant. E. Coli has not been confirmed of the cause but reports of koemt at other locations first made led lines at the end of october, the stock down 15 since then. Is this now a buying opportunity for a beaten down name . Lets ask jack moore from the street and steven dudash. Jack, i think you see opportunity here, yes . Yeah, i might be the only one. I think that everyone hates this and i feel pretty lonely here being a bull on t but im not being a bull on the short term, there is a ton of uncertainty. I think if you are looking out 8, 12, 16 months this is a steal but if they cant contain the breakout in the short term the stock could break through 500. What is their multiple right now, jack . Its kind of tough because analysts have it not all analysts have adjusted their numbers downward. Its trading i think 30 times next years earnings but thats going to come down i think once. The earnings are or the multiple is . I think the multiple will and i think their earnings per share will because the analysts having taken their estimates down yet. I think management is low balling it. I think four quarters from now we will see the stock has dropped 220 bucks in two months and weve already seen some incremental acceleration in same store sales. Im not too concerned in the longterm. Steven, what about you . Why would you say that if anything of shares could further fall . I was talking over here and one of the guys in my office grabbed me and said what are you guys going to talk about today . I said i think theyre going to talk about chipotle and he laughed and said they have been in the news more than isis lately. Hes right. Their whole Business Model revolves around the fact that they are the Healthy Fast Food option out there and thats their niche and they have been killing it for years with that niche but this is putting a stake in the heart of that. There is no way there is going to rebound next week. Its one thing if its in one store or a Couple Stores in one part of the country but now that were seeing it in multiple parts of the country there is no chance this turns around next week, i think he just mentioned the same thing. In the short term going through 500 is really realistic. I think they are completely low ba ulg it. The big question is if you concede that in fact this is going to be a long process of customers maybe getting comfortable again and concede that the numbers probably have to come down again for next year. In the earnings come through those will have only grown at 10 a year or for two years. Are we having a moment when everyone is going to rethink whether this stock in general riyal dervs a premium. I think in the near term people will consider that. You have headline risk every single day and thats bringing the stock down. Look, this is not unprecedented in the industry. In 1993 jack in the box had a more severe e. Coli brought break and killed two kids, 2006 taco bell had an outbreak and did fall for three great quarters, 11 rs, 6 then 7 respectively but then it covered. I think chipotle out of those three is the strongest brand and they are attacking this aggressively. They are going to be laying out plans very soon and i think that, you know, they are investing in technology and they are investing in their infrastructure and they are going to take care of this issue. Im not concerned. Guys, thank you. Jake morse, steven dudash. Coming up we have someone who says oil prices could slide all the way down to 20 a barrel. First could amazons move to bundle Premium Streaming Services from show time, starz and others mean dribble for netflix. We have some breaking news on yahoo. David faber joins us with the details. David. Thanks very much. I want to share with people that sources close to the situation indicate or tell me that yahoos board has made a decision involving that spin off of the stake it owns in alibaba and the decision is not to move forward with the said spinoff of that 384 million share stake in alibaba. This of course a spinoff that yahoo had been planning for for many, many months, announced early last year, was moving forward would it, expected in fact to have actually done the spin of that stake into a new co called abaco early next year. But they have decided as a result the pressure from some shareholders who are concerned of the tax ramifications of the spin, namely that it would not be considered a tax free transaction by the irs and, therefore, would eventually perhaps be challenged as such by the irs and traded at substantial discount as a result of the underlying shares of alibaba. The board of directors has decided not to move ahead with the spinoff of alibaba and instead sources familiar with the situation tell me will examine the prospects of a spin of yahoos core business. Doesnt mean they are going to move ahead with that, but they are going to examine the prospect of a spin of the core business, which sources tell me would also include the stake in yahoo japan most likely and perhaps most of the cash, leaving behind, therefore, the alibaba stake. Said another bay, its a different way of making sure the alibaba stake can be segregated and left in a tax free nature. All of this of course designed to return value to shareholders who have been upset perhaps with the direction of the company of late and the failure of the core business to really have any significant advances on the revenue front. That said, an examination of the core biz spin not to mention all of the time it would take the company to actually get there to that end game certainly perhaps could be as much as a year or more, one has to wonder what potential damage that will bring to yahoos business overall. It becomes very difficult one would imagine to hire new people and keep talented people when your company is in flux like this. Nonetheless the board, again, having decided after a series of meetings late last week that we of course were also telling people about has decided not to move ahead with that spin of the alibaba stake and instead will examine a socalled reverse spin, if you will, of yahoos core business along most likely with its stake in yahoo japan. So a significant reversal for something that frankly management and the board fully expected not that long ago that they would move ahead with early next year. David, in some ways its a mess and its also interesting because what this does is basically invert the strategy which is to say, okay, you spin off everything else, you keep alibaba, its almost like yahoo itself becomes the abaco which i thought had a Management Team and new structure in place. As you said this is almost a reverse of what it actually wanted to do but in a way that i guess avoids the tax hit. Right. It avoids the risks inherent at this point in the spin of the abaco stake. The key thing is they did not get a private letter ruling from the irs saying we will treat this as tax free. Now, that did not worry skad and arps the tax attorneys for yahoo or its board but there had been certain statements from the irs with regard to these types of spins that there has been enough certain that were they to do it regardless of whether it was deemed to be tax free eventually, were it to be challenged or even not it would trade at such a discount to the underlying value of the alibaba shares that it wouldnt be worth do. The whole purpose of trying to create value would be defeated by the concern of not being it tax free. The other way of going about separating it out and making sure its tax free is to leave it behind, if you will. Suffer the taxes that you would if you were to spin yahoos core business which might be as much as a billion dollars but nowhere near what might have been as much as a 10 pll tax hit if they were found to have actually not had the free tax free nay tush of the abaco spin. Lets bring in jon fortt for more reaction as we get a sense of what this yahoo business being spun out from alibaba will look like and if it includes that yahoo japan stake reports have been circulated about who might be interested. Can that company remain independent or do you think its inevitable that it gets snapped up by somebody or somebody else. My bet would be that it will get snapped up by somebody in pieces most likely, but that is the overall question is is this check mate for yahoo as an independent company . Everybody ever since starboard came out and put that pressure on a yahoos board not to go forward with the spinoff, even though as you mentioned they had all of the structure in place to do that, the question was, well, what are their options otherwise . Would a verizon be interested after having already snapped up aol, would another tell co, comcast, at t be interested in that big user base that yahoo has to marry ad network and all that they have into the subscriber portion of an existing business. That is a possibility, but you have to wonder given the stock environment being what it is, given that this was an important moment for yahoo to be able to separate the value of core yahoo from alibaba, if they are not going to spin alibaba how does yahoo go on on its own . Is this still about Marissa Mayer driving a product strategy that has not resulted in a turn around yet . Its hard to imagine, but we will see what this do from here. Jon, on that note, or david, obviously there has been a lot of speculation about the longevity of Marissa Mayer in this job. I would guess, but tell me if im wrong that if they pursue this inverted spinoff where the core business is spun off that doesnt necessarily go well for her job security, does it . Its kate, its hard to say, i think that that introduces its own set of risks as well, namely the time it would take to get Something Like that done and how you continue to attract top rate talent to a company that is in such transition as that. The expectation is she would continue to run the company and of course still be investing in potentially the Growth Initiatives she has been focused on as the ceo these last few years, but, sure, its a good question. I think the one thing perhaps that would come about here once they announce this and its known in the marketplace as it already almost is and those names that jon said are certainly all viable as potential buyers. You could potentially have somebody come forward with a proposal under which they are able to structure a deal more quickly, even though it would take 12 to 15 months you would get rid of the uncertainty by having a whoever it might be, verizon, at t, comcast or some other name come up and structure this thing as a reverse trust deal of some kind and that would remove the uncertainty that i believe will potentially hang around yahoo as they reverse course here from something of course that they had been planning for more than nine months. Jon. There are a number of other factors in play here, namely partnerships, you have to remember yahoo and microsoft still have some partnership on the search ad front. Yahoo and apple actually have some relationship because yahoo provides data and services to apple. So its not in a number of pretty Large Companies interests to have yahoo floating around there in limbo if it affects their ability to operate in a really basic manner. So though yahoo isnt a big company anymore in the scale of Silicon Valley, though it doesnt seem to be that important in the way you look at a facebook or even a twitter, social media has become a more Important Technology front, it still has some core value to that brand and to the services that it provides. There are going to be a number of different interests weighing in on yahoos future to make sure that it can continue to operate, guys. Thats for sure. As well if i could just add doing a spin of core yahoo is not the easiest thing either to accomplish, again, given the timeline that it might take. Theres a lot of different agreements in place to jons point that would need to be supported out and things of that nature. So it is not as completely straightforward, either, though many of these shareholders or at least starboard and others who sort of advocated one way and advocated another seem to think its relatively easy it would not be hence they are not just simply saying were going ahead with it, they are going to examine it, but the likelihood is is that they will actually endorse that route down the road. David, thanks for bringing us that news, yahoo shares higher. We will have more on the big yahoo news. Straight ahead collin gill less joining us. Welcome back. In case you just missed it sources telling cnbc that yahoo will not move forward with the spin off of its alibaba stake. We are joined on the phone by john gilles. What do you make of this news . Kelly, first kneejerk reaction is that this is a positive, but the reality is you want to separate out these assets as quickly as possible and the spin that was going to happen in january was going to happen in a timely manner. Yes, there would have been a Tax Liability potentially down the road. Selling the core business which is worth between 4 and 8 billion its the smallest asset that they have is going to take some time, for everyone applauding this just remember the whole point to unlocking the value is to separate these entities apart and we want to do it sooner rather than later. Thats exactly, mike, what you were saying. Exactly. Collin, i guess if the determination was made that a separation was not going to clarify the value here of the sum of the parts because there was going to be this overhang of the Tax Liability, one of the possibilities that it just becomes lets, you know, go along business as usual and just mull our options over a long period of time, whats the urgency . That is the disastrous path because you have a Shareholder Base that does not particularly care that much about the core business because again it is just a fraction of the total assets. As soon as you have a Shareholder Base that cares about the core, more focus will be paid attention to it, plus it will be a less sticky situation for private equity to get in there. This is a company that has about 800 million in ebitda and about 3 billion in costs across. Product dev, marketing and g a, its right in that sweet spot for private equity to come in, take it private, clean it up and improve the cash flow and put it in a restructuring Management Team. We see the shares higher by 2 . Does that make sense to you . Yeah, thats what it is. Lets see what it does tomorrow. Again, while you are removing the potential Tax Liability, you are also opening up the point that the resolution to the story could take quite some time. Now, the best scenario would be if they actually have somebody who has approached the board and said, hey, we are interested in the property. If that is the driver for why they are stopping the spin, that would be wonderful. I mean, there have been reports about Different Companies being interested in different pieces of that business. Sure. Potentially, collin, but i guess the question now is to what extent dz Marissa Mayer and her board relinquish control of yahoo or split it up into those pieces . They had a fiduciary duty to do that plus there is a lucrative financial incentive for them to [ inaudible ]. If there is a buyer that is interested and willing to pay a decent multiple then that would be a fantastic thing. Leave the assets where they are, sell out the core and then call it a day. We will leave it there for now. Thanks for joining us with your initial thoughts on this one. Thank you, kelly. Yahoo shares nearly 2 higher after the news they are not going to spin out alibaba. More detail to come. The plunge in Energy Prices taking its toll on another major energy name. We will have those details for you after this break. Make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Welcome back. Lets send it back over to dominic chu with a news alert. Whats happening is Kinder Morgan shares the Midstream Oil and Gas Pipeline Company is down 5 on 2. 5 million shares of volume. The board of directors has said they are going to slash their Quarterly Dividend by 75 . It will go to 12. 5 be cents her share paid quarterly down from 517 Cents Per Share. Again, some investors maybe already expecting a cut to Kinder Morgans dividend payment. This one year perhaps not sitting well at least for the early going in the after hours. Kinder morgan shares down 5. 75 . 2. 6 million shares on this news they will cut their dividend to 12. 5 Cents Per Share from a current level of 51 cents. Back over to you guys. Kate, thoughts on this. Is it more the end of the story here because its been muted for a while or the beginning for companies kinder and many others who will have to do steps like this. I think its hard to say based on this move. I think this is something that Kinder Morgan can get away with and a chevron cannot per the conversations that ceo john watson gave brian today. Companies like chevron, con a co phillips, exxonmobil these are mainstays of peoples 401 k s. They are in the business of paying dividends. That has to be a last resort for a company like that to slash their dividends. Anyone dock probably can and will. Kinder morgan, angloamerican being another example, glencore, they are not necessarily providing the same function for retirees and other longterm investors. Im sure its something companies would like to do as they try to conserve cash. As their shares fall if the credit quality starts to worsen that makes it hard for them to tap the markets that allow them to fund in the first place. They have to keep buying assets if they are going to grow. I think the dream scenario if you wanted to bottom fish in energy would be Kinder Morgan and the stock rallies. That doesnt seem to be whats going to happen. Those shares are down about 6 . Up next the ceo of know key a will outline his plan for the future of the company. Were back in a moment. When yor companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. Ahh. Steve, other than making me move stuff, ces. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. Come happy birthday. I just had a heart attack. And now i have a choice. For her. For them. And him. A choice to take brilinta. A prescription for people whove been hospitalized for a heart attack. I take brilinta with a baby aspirin. No more than 100 mg. As it affects how well it works. Its such an important thing to do to help protect against another heart attack. Brilinta worked better than plavix. And even reduced the chances of dying from another one. Dont stop taking brilinta without talking to doctor. Since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers. A history of bleeding in the brain, or severe liver problems. Tell your doctor about bleeding, new or unexpected shortness of breath, any planned surgery and all medicines you take. I will take brilinta today. Tomorrow. And every day for as long as my doctor tells me. Dont miss a day of brilinta. Welcome back. Nokia getting close to a purchase after 2014 sold its devices and Services Business to microsoft. This year sold here digital. Joining us is ceo and president of nokia. Welcome. Thank you for having me. I think you started out selling rubber boots 150 years ago. Thats what we did. So the companys been through many changes. What is it going to look like in this current version . The idea is we want to be an end to end Telecom Networks company. Because the operators, the carriers are getting more and more integrated. We want to be an end to end player that has strong scale in mobile. Well be number one. And also has ip routing as well as the fix line business and the transport that sort of underlies it all to be able to compete effectively in the longterm. Its interesting theres not more growth i guess that analysts see in this business. That it has kind of steadied out after years of massive expansion. Why is that . Yes, it has. This allows us to target a 50 greater market than we address today. Today we address a 180 billion market. But that market grows at a greater rate. The market we serve today wireless only is about flattish. The reason its flattish is because a lot of the 4g networks have been built out. So waiting for 5g to come on stream. So who would be your competitors directly in this business . Are there other end to end players right now youre going to be parallel to . Good we. Well be the only global end to end players serving this networks market. The other alternative is the chinese company. And well compete with cisco and erickson as well. Got ya. And thats interesting because were also seeing some segmentation because of political sensitivities or whatever youd like to call it. Now in light of everything happening with governments making sure they have data and that sort of thing, how do you deal with governments if at all do you have to . Not a big issue for us. Were present in all the major geographies. Were a leader in the u. S. Market. Well be the strongest nonchinese vendor in the u. S. Of course, being global you get the puts and take it is but its a pretty balanced footprint. The thing about this transaction is very complementary. Except for wireless where we have overlap which is a scale game. Everywhere else we dont have the portfolio to match. At that extent, you can get synergies from the over and both the geography. Youre right in the middle of it all, rajeev. Congratulations. Thanks for joining us here. Thank you. Its been a pleasure. Rajeev suri, ceo and president of nokia. We have a word on winynn. This after the company said in a press release that chairman and Ceo Steve Wynn purchased a total of a little over million shares of wynn resort stock on the open market between the period of december 4th through december 8th of this past year. Following these purchases, says the company, he will directly and indirectly own a little over 1 million of wynn stocks. Steve wynn making open market purchases of his own companys stocks to the tune of a million shares. As a result those shars moving a bit on the afterhours. This is a stock that lost half of its value entering this particular day. Well watch wynn shares. But up again up 8 . Back over to you guys. All right. Kind of like his personal stock buyback. I was having the same thought. Something carl icahn could do. Yeah. Exactly. Dominic chu, thank you. News on carl icahn coming up next. Its your grandpappys hammer and he would have wanted you to have it. It meant a lot to him. Yes, ge makes powerful machines. But ill be writing the code that will allow those machines to share information with each other. Ill be changing the way the world works. interrupting you cant pick it up, can you . Go ahead. He cant lift the hammer. Its okay though youre going to change the world. Welcome back to the closing bell here. We want to call your attention to whats happening with car rental giant hertz. Activist investor carl icahn has reported he boosted his stake to a little over 14 from a prior stake of a little over 11 . Again, icahn boosting his stake through a regulatory filing thats being disclosed in hertz shares up 3 on 350,000 shares. Back over to you guys. Thanks. Pep boys i get. Hertz . I dont know. Well, also sharing energy. It seems carl icahn likes the dollar cost average. These stocks have not gone exactly his way and hes doubling down. Ive had the same thought on shnier. He has a big stake in Chesapeake Energy as well. I have to believe hes just interested in energy, thinks he has strong opinions, wants to partner with management. I know the chesapeake team has welcomed him and hes had an agreement. Thats got to be whats behind it. He likes hes going against the rest of the world. It might seem like that. And right now the rental car company, all these questions of people using uber instead of renting when taking trips. Thank you so much for joining me. Mike is eking out the last couple of syllables you have there. That does it for us. Fast money begins next. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Tonight on fast, to the big fracking names, if oil goes as low as 20 bucks a barrel, which stocks aur vooif and which fail . Plus were worried about dividends in that could bring you big money. Well tell you what those are. And heres a question. Would you eat a burrito from chipotle . Well explain. But first we start off with the breaking news on yahoo. No longer moving forward with the alibaba spinoff. Referee we reported about a half hour ago the board of directors after a series of meetings last week h