Transcripts For CNBC Power Lunch 20141216

Nasdaq at 4,612. Trouble in russia. Russian stocks getting slammed. The ruble falling versus the dollar yet again. What is putins next move . Could there be another Russian Revolution . The former u. S. Ambassador to moscow will be with us. Oil shocker, which is at the root of russias trouble. Are we near a bottom. It was lower earlier. It rallied back just a bit right now. To sue at the nyse. And stocks are on a tear this hour despite fears about russia and its collapse in currency. Come on in, bob pisani. You and i both said it the same time a couple of seconds ago this is one of the weirdest days that i can remember in a long time. Screwy is the way i would describe it. Volatility has been amazing today. The market cant describe what it wants to do. It is volatile. We have the oil up and down. It doesnt know where it is going. We have uncertainty with russia. We have a meeting. Traditionally the markets are up the day before an announcement. We have a quadruple exploreration. Let me show you what is going on here. Oil. There is the big story. Oil goes up 2 throughout the day and then suddenly it goes up 2. Now it is about even. Let me show you gold. Gold starts around 7 00. It just falls apart, goes down 35, a twoday chart that you are looking at. It cant decide. Germany at the open thisern moing goes down 1 and then all the way back, ends up 2. 5 . That is a little strange. Tyler had it right with dow going down 100 points and then moves up 250 points. Now it is kind of somewhere a little bit in the middle. How about maybe the options guys know something. How about the vix index . Look at the screwy numbers here. 22 to 25. It cant decide. There is an options exploration in the vix today. I think that is what is going on there. These are weird numbers. Im going to go shopping for the next week until the market figures out what it is doing. Right now we cant make determination what is going on. Thanks, bob. Appreciate it. The dow and s p up for the second time in the seven days. So have we potentially hit a shortterm bottom with todays rather substantial move . Dominic chu taking a closer look at the pullbacks and rebounds. Over the last few years generally speaking when the market pulled back people bought the dip. This time around we saw stocks dip and maybe they want to buy again. We are seeing that tug of war play out today. This year so far take a look at the first one we saw. Pullback number one between mid january into the beginning of february we dropped 6 and rose 9 . On the second pullback here energy one of the leading sectors on the rebound there. The second dip down 4 and then up 10 . Energy also one of the better performing sectors there. They were most beaten down. Down about 4 well see around mid summer, january 24 to august 7. Up 6 . You look at that, Utilities Technology some of the stocks that rebounded there. Here number four down 7 and up 11 mid september to mid october. Technology and health care some of the big ones. This one here down about 3 . Of course, energy, under performer this time around, seeing a lot of activity with energy names, a lot hit 52week lows and trying to rebound. The question becomes whether or not they are trying to catch that falling knife. You look at this decline since the 5th of december. It was six or seven dow points. It isnt what it used to be. It is still a significant decline. If you talk about what is happening with the pullback we pointed out this past week that boeing was the biggest point drag on the dow during that time. Dominic chu, thank you very much. Europe also rallying a bit today. The major averages up 2 . Seema mody in her perch in london. A late day comeback in europe as the ruble came off the lows. European stocks staging that turn around. The fact that if you look at big winners they were in the oil space. There were losers. Many companies that have high exposure to russia weighing oin the index and weighed on sentiment down beat data out of germany. One of russias biggest trading partners. That initially sent the bund seen as a safe haven hit a record low today. The 600 index down about 5 since early december. Some are still betting on eu stocks in 2015 thanks to weaker euro as well as further monetary easing and perhaps sovereign bond buying. Morgan stanley projecting an 11 rise. Thank you very much. So what a volatile day for the russian currency. The ruble plunging 17 against the u. S. Dollar a bit earlier but making a comeback this hour. That drop came after russia hiked Interest Rates to 17 overnight. Take a look at the big russia etf. The market vector is russia. It has been all over the board in todays trading session right now down 2. 25 . Oil is still under pressure, as well, hitting fiveyear lows. That is the root of russias trouble. You got to stay tuned. This market day is just whacky. Dominic chu joins us with a market flash. Lets talk about some of the wackiness. Some of the Oil Exchange Traded funds etf, xle, market vectors, s p oil and Gas Exploration etf. They have a long way to go to break even here. They are all down between 14 and 34 . With the xle the white line you are seeing there one of the more heavily traded is trading in very heavy volume far above what it normally does. Thank you very much. We have been talking about russia, some developing news concerning russia. John harwood joins us from washington, d. C. Tyler was talking about whip lash tuesday. The Obama Administration is confident it has played a part in some of the whiplash for Vladimir Putin. The head of council for economic advisers came into the White House Briefing room and said Vladimir Putin was in a very difficult economic position. If i was chairman of president putins economic advisers i would be concerned. They are between a rock and a hard place in economic policy, the combination of our sanctions, the uncertainty they have created for themselves with their International Actions and the falling price of oil has put their economy on the brink of crisis. Later in that same briefing josh earnest, White House Press secretary said president obama will sign new sanctions legislation passed by congress not because he intends to implement the sanctions. The reason the white house wants flexibility, guys, is because it hasnt yet achieved its goal in the sanctions which is to roll back the russian invasion of ukraine. Thank you very much. A little bit of history here. Russia is not the most stable of countries. Revolutions in 1905, again in 1917 and basically in 1993. Is there reason to worry now that in 2014, 2015 there could be the conditions that could potentiate another one . We will talk to former ambassador to russia. First we want to hear what you think. Log into cnbc. Com vote and let us know will we see another Russian Revolution . Maybe it is not as far fetched. Joining us now currently a professor of Political Science at stanford. Welcome. Is Vladimir Putin now more dafgerous because of the Economic Conditions that are closing in on him . Its hard to say. He is very unpredictable of late. I dont want to pretend i understand all of his motives but i dont think so. I get a sense of panic among economic elites right now. And that makes putin more cautious and that, by the way, is the intention of sanctions and the policies of the Obama Administration. I dont see it right away. Might he do something to play what has been described as the nationalist card to rally public support in his country even and to distract russians from deteriorating Economic Situation . Yes. And thats what he did earlier this spring. That jumped him up from 40 Approval Rating to 80 Approval Rating. That is what the war in ukraine was in part about. Now, as you see the panic on the streets in russia you talk not just to Common People another war in kazahkstan will not stop the falling ruble or the crash in the stock market. I think he understands that. I think he may think about changing his government. I think that may be the surprise move you might see in coming days or weeks. I want to come back to putin and his vulnerabilities. You mention kazahkstan, another country that has been mentioned as a possible target of russias illintentions has been moldova. Is that a potential hot spot . It is definitely potential. Putin is definitely holding his cards. He is holding his fire right now and he has the capability of going in further into ukraine all the way to moldova. I dont see him as being that aggressive because think about it if you are a russian. Why is another war going to help you economically . Thats the debate you feel happening on the streets of moscow and throughout russia today. I dont think that will turn off the heat on his government right now by starting a second war in moldova or somewhere else. You answered my first question which was is he weakened . Is he more dangerous . Is he weakened domestically as a leader because of what is going on with his economy . Well, his public Approval Ratings are still very high because people supported the annexation of crimea. There is a nervousness i feel among my friends and colleagues in russia today that is surprising to me. Beginning of a debate about is putin really choosing the wise economic policy. I think he will have to do something to stop the bleeding just the status quo is not going to be enough. I dont know whether you can see the screen below you there. 50 of people say will there be a revolution in russia. 51 say yes and 49 say no. Where would you come down on that . I teach on revolutions here at stanford. I think about these things fairly often. I think it is low. Remember there is no real opposition in russia, no independent media. The parliament is a total rubber stamp for putin. It is difficult to lodge that kind of attack against him. The real threat to him are the elites. The elites within the circle say its time for a change. I think today i would say probabilities are pretty low. Thank you very much. We appreciate your time today. Lets talk more about this, the big rally on wall street and the global risks facing investors. Paul christopher is chief international strategist. I want to turn you to oil if you could. You put out a paper entitled reduce crude oil target. It sounds as though you think we are close to some significant support in oil at this point. Is that a correct reading . I believe we could be close but there is very likely to be more volatility, more crazy days, as you put it a few minutes ago, before we get to that stable point. You say people should not be basically holding dedicated stand alone shares of energy and instead move into a broadly diversified commodity position. What commodities do you think look attractive at this point given the risks out there . We just finished talking about russia. We have seen pullbacks in base metal prices. I think a lot of that has been spill overaffect from energy. Base metals would be one place to get back up to neutral and back to even weight and back up to the longterm desired allocation and potentially next year we will have to see as the planting season gets closer. I think the grains could be interesting as we get closer to spring. After all the low prices this year should discourage a lot of planting next year. Back to the oil scenario. A lot of people are saying that will be basically a tail wind for a number of countries and companies. What is the risk of deflation if we continue to see oil trading at these lower levels specifically for europe . Europe is the main place where disinflation is not very welcome right now. That is a distinct possibility. Fortunately for europe you have Economic Data not as bad as a recession would indicate. You have wages that are improving. I think over time we will take you will see that inflation number move back up in europe and the ecb stands ready it says to do more to prevent disinflation from turning into deflation. For right now the disinflation from oil is perhaps more an immediate risk than the benefit which is a longer term benefit that comes from Lower Energy Prices in general. Thank you very much. We appreciate it. Paul christopher, wells fargo advisers. Another big story that has certainly been kind of pushed away a little bit today entirely. The fed kicking off its final meeting of the year down in washington. You will be there tomorrow. The one that has been kicked off always concerned about the ruble and global weakness, u. S. Growth. On the way up. We have all kinds of im going to give you details. So here is the number. This is the forecast for 2014 year over year change in growth. We started in january. It came way down to 1. 9 . It has picked up again. We think we end at 2. 43. Not far off what it was at the beginning of january. What is the big story . Next years forecast. Up to 3 is the idea. They think we do quite a bit better next year. The Third Quarter was great. Other international stuff or look at this, too. I want to show you the first look for 2016, as well, which is 2. 88. A couple nice 3 quarters. What happens to inflation . I will show you now. The inflation forecast. The Recession Risk in the next 12 months alltime low for our survey at 13. 6 taking out by a percentage point the prior all time low. Inflation comes down quite a bit, 1. 74 for 2015. Watch 2016 so it takes a full two years to get to the feds target of 2 on headline cpi. That is the expectation. You can see it has come quite a bit down. What about the impact of oil on the u. S. Economy . Our panelists add 0. 4 for the First Quarter 2015 and takes about 0. 3 off inflation. I know there is concern about oil and russia and the ruble and uncertainty and systemic risks but the back drop of the data so far is that of a strong u. S. Economy. I know that oil and these other issues will begin tomorrow but so are these issues, impact on growth. The fed has the dual mandate, want full employment and want price stability. The forecast was 1. 74 inflation for 2015. That is a little shy of the ideal number. Is it enough to stay the feds hand . I dont think so. I think the fed wants to get to a place where it raises Interest Rates. What is going to happen is that as the data come in if there is concern overseas, if inflation is too low it will not hike as much as was expected and it will push it out. Think about a shallower gentler slope to the rate hikes. Our survey remains the same that people think it begins july 2015. We will be watching you tomorrow at the press conference and the event. We have lost considerable strength in this market just in the last couple of minutes. Art cashin telling me Vladimir Putin is making a speech right now. The market is watching that very closely. Right now we are only up 29 points. When we started power lunch we were up 180 points. That will tell you what kind of volatility is inherent today. We have an options exploration coming up. Stay with power lunch. We are all over this crazy market day for you today. We are back in two minutes. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Another major developing story today. Taliban gun men storming a school. Officials say at least 142 people have been killed, 132 of them children. Ten staff died, as well, including principle. Dozens of other students wounded, all seven gun men were killed. The attack at the militaryrun school is the worst attack to hit pakistan in years. And we move on to other head lines. Fed ex is buying the Logistics Provider for an undisclosed amount. The company has revenue of about 1. 6 billion. Continental hotel group agreeing to buy more bad news for sony. Two former employees filing a lawsuit over emails being leaked saying the studio was negligent ignoring warning signs that systems were prone to attack. Lets go to dominic for a market flash. A roller coaster day for Dow Jones Industrial average. The blue chips were down 99 points, up 247. You can see up by about 31 points and steadily trending lower since pretty much about noon time today. Leading the way higher at least so far chevron, also boeing which raised the dividend 25 and added 2 billion. The biggest losers on the day so far, microsoft and bank of america on a Merrill Lynch downgrade. Nike shares. A slow and steady decline off session highs you wonder whether or not we get back to unchanged given the kind of action we have seen. Tesla is one of the big stocks that we are watching today. Bertha coombs is following that and the other movers at the nasdaq. Sue, it is interesting how we are seeing these moves in relation to Energy Prices. Small cap energy names today have been part of the reason why that we are seeing the russell 2000 up more relatively than the other major indexes. Some of the stocks down 60 just during this quarter. Is this the bounce that they really need . Apple has been trending with the blue chips overall after hitting a fresh sixweek low, had bounced and moved the big caps into positive territory. It is fading along with the rest of the overall market. Chips are holding on. Those are one of the few bright spots when looking at the caps here today. Microsoft a loser on the downgrade and seeing the russian telecon and tesla today under 200 for the first time in seven months. This is a bit of an energy fallout. Are people going to want to continue to move into electric cars if oil and gasoline are cheap enough . That said tesla shares are still up 35 year to date. Back to you. Thank you very much. Telecom is rallying today, one of the worst sectors this quarter. What is ahead for that industry . The telecom unveiling a new product today. What does that mean for t mobile and rivals like at t, verizon and sprint. With the dow up 32 points we are back in two. Act i. Scene 3. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. 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The number 1 doctorrecommended frequent heartburn medicine for 9 straight years. One pill each morning. 24 hours. Zero heartburn. Welcome back to power lunch. Rising Oil Prices May be good for the market but not good for the airlines. All very much in the red. If you look at it right now it will be interesting to see how this plays out because oil has turned negative on the day. So certainly a trade we will want to watch in the afternoon. Back to you. The other thing watching the russian ruble plunged 17 against the dollar earlier. Then rallied back just a bit. Russian stocks getting clobbered. Take a look at the russian market if we can pull up that board down 89 points, a 12 decline. Thats today. Well over 50 over the last six months. What does the fallout in russia mean for u. S. Multinationals with exposure over there. General electric is one of the largest u. S. Companies operating in russia. Its stock is positive by about a quarter percent at 24. 66. Mary thompson has the details. Ge will tell you it has been doing business in russia. Russian revenue accounts for about 1 of the total. As for profits firm doesnt break them out geographically. Head count in the country has been cut. It employs about 1,500 workers in russia and operations expanding oil and gas, transportation and health care industries. Russia is one of the several resource rich developing economies ge has bet on because of opportunities to develop those resources, system Building Infrastructure and serve growing transportation needs. Ceo highlighting the growth in russia despite the political and social unrest in the 2013 shareholder letter. This afternoon starting at 3 00 investors will get to hear firsthand when he addresses at the firms annual investor day along with questions about russia he is likely to build a number. A growth driver for ge so they are naturally concerns that the growth rate could be impacted by oils drop to a 5. 5 year low. Ges spokesperson saying the area most likely to be hit first by oils drilling accounts for about a quarter of the subsidy which makes up about 15 of the un unihas a strong back log. If you want to hear firsthand from immelt tune into to squawk on the street for an exclusive interview with the ge chairman and ceo. Thank you very much. For the record other American Companies doing business in russia are watching developments very closely. One of the ripple effects will be on the consumer and American Companies with significant exports to russia. Some of the biggest names General Motors with 7 billion in net revenue followed by pepsi with 5 billion. Ford with 3 billion, mcdonalds with 2. 5 billion. John deere, citi, abbott and exxon mobil. Lets take a look given the volatility in the equities part of the equation today. What about the metals markets . Closing down 13 on the trading session about 1. 1 . And the other metals we heard Paul Christopher our guest earlier talking about the fact that copper may be putting in a little bit of a bottom but we are negative across the board with almost 20 losses in palladium and platinum. We will go out and check on the bond market but the s p and nasdaq have both turned negative. Rick santelli meanwhile tracking the bond action at the cme. Its just a down, up, down day in pretty much any market from crude oil to treasuries to stocks. Look at a chart of tens we briefly came within about 0. 3 basis point and then moved close to 2. 105. Here we sit down at 2. 06 lowest level should we close here in 19 months. With the bund 56 basis points their low yield. Jgbs just down. 36 basis points. A 19month low. If you look at a tenyear chart of the yen what was anticipated was 120 would be a significant technical level and it is. Thanks. Appreciate it very much. T mobile causing a stir in the Wireless Industry today. John fortt is with t mobile ceo. Joined now by john ledger, ceo of t mobile with an announcement today of rollover data. We have heard of rollover voice. We are pushing it to data. This comes after you have done some things and free music streaming built into plans, International Calling and data, try before you buy, iphones, wifi in the home. Why is now the time for roll overdata . With that list im assuming you are a t mobile customer because you rattled down that Value Proposition like a champion. I just pay close attention to you. Today is my favorite day. What we are doing is attacking one of the most infuriating aspects which is how carriers handle the purchase of data. And to make it quick its called data stash. And you refer to it as data rollover. If you dont use it you dont lose it. And in effect, what is happening now is i will give you round numbers. This is a 50 billion issue where carriers are taking back on average three gig bytes of data a month. This is an attempt for you to be able to buy it and use it and roll it forward. Its holidays. So what we are doing is we are giving all our eligible customers and new customers 10 gigabytes free to start your data stash. Its a big, big move, possibly one of the top two biggest moves. Your stock took a hit in late october when profits didnt come in quite where the street had hoped. Im trying to get a look at what it is doing today. You will also have to spend on your network to keep up with customers who are coming over. Youre gaining customers. The stock i understand is down a bit. What do you say to investors who are concerned maybe you are giving away a little too much of the store . How are you going to get them to pay more on the plans . I think a couple of things i say you know for several quarters in a row were the Fastest Growing Wireless Company in the united states. In q 3 we added more telephone subscribers than all other players combined. That momentum carried into q 4. One thing you havent noticed is if we have difficulty making targets we said we would make. Right now we had a little bit of impact to our stock because of convertible note offering we did. Outside of that last couple of days i saw a few analysts upgrading our stock price. When we announced q 4 im pretty interested to compare what we have done and how we go into 2015 and show how this company is really performing extremely well. I wish we had more time. We certainly have your competitors attention. Verizon would point out they let you switch plans mid month but clearly making gains and turning a lot of heads. Everybody has a smart phone these days. Thanks for joining us. We look forward to bringing you to t mobile. Thanks very much. Markets right now the nasdaq has turned negative. The s p is trying to hang on to a gain of just two points and the dow has lost a lot of strength still up 45 points on the trading session. 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Dollar. They cut the price target to 600 a share from 670. Those shares down by about 2 . Volatility is the watch word today. Bob pisani is on the floor of the nyse for me. 350 point swing in the dow i call that volatile. We are having a little bit of trouble because oil is fading a little bit. I want to point out the big bounce we have had in dramatically oversold sectors today. Put up big energy names today these all off of their highs. Names like denbury, apache. Drillers like nabors, Diamond Offshore which is a big offshore driller all up nicely. The metal stocks killed in the past month but today bouncing. Cliffs, u. S. Steel, allegheny tech up fractionally although down double digits. Europe which has had a tough time, european names trade here doing well. All on the upside. As oil touches a 5. 5 year low and the russian ruble free falls to alltime lows stabilizing just a bit we are asking how low can oil go. Ceo of harrys trust llc. Welcome. It is nice to have you here. Tell me where you think we are headed with this because we have been bouncing all over the board today. Thanks for having me. It feels like we are in a very oversold territory. I dont think we have much down side left. You can tell when we make a low the bounce back is extreme. We are seeing a lot of volatility. That is usually an indication that we are hitting a low or high if reversed. How are you trading it . Right now im scaled down buying. It is the only way to do it for me. You have to average into this. You cant pick a bottom. You can try to get a good average if it is going to be on a bottom formation. Thank you. Appreciate it very much. Thank you for having me. Back to the markets. The dow is up 70 points. The stock side of the story today. Chief Investment Officer at u. S. Trust and chief equity officer at river front investment group. Chris, i will start with you. Volatility is the watchword today. As we go into 2015 what is this market going to look like . How is it going to perform . There is two big cross currents there. Everyone comes into each year looking for the black swan event. It looks as though we have a gray swan upon us. Russian situation, obviously oil, et cetera and the collateral effects. Heading into next year everyone is watching what are the effects of high yield and further oil price fall. Some of the countries that will benefit. I think as you head into next year you will see that lower Interest Rates, disinflationary boom, better u. S. Growth, the rest of the world using the engine of world growth being the u. S. And then this accommodation even if the fed hikes of all essential banks and you get a business cycle. Do you agree in general . I would agree that you can have a little more of the same in 2015 which means mid single digit returns for the s p which isnt bad when you compare to the rest of the world. Absolutely. The reality is the math has not changed for fixed income. You buy a bond that yields 2 for ten years. You make nothing. That math doesnt change. In the u. S. We are kind of lukewarm. I think the real opportunity is international. So we like europe. We like japan. And one of the big things we have been running all year is that you have to hedge the currency. I think for those economies to turn around it will have Central Banks to have to lead that and that means printing euros. Absolutely. Does the drop in oil worry either of you chris, i will go to you first deflation or disinflation in europe could be a problem. It is actually the flip side. When you think about the drop in oil the immediate thought that people go to is deflation or growth will come down around the corner. Growth only comes down around the corner most of the time when oil prices are really high. This is actually bullish. You get a stronger dollar, you get low Interest Rates, low input costs and the collateral effect hits Corporate America and it will get a wind at its back. Except in europe. Earnings, then, should continue to perform, i would think. The energy stocks, yeah. Its really hard to take low Energy Prices and spin it that it is negative. It is great for consumers and any company because you get a profit boost for input costs. It is great for countries like europe and japan. Its great for Central Banks that are stimulating because you can push the risk of having to raise rates anytime soon down the road. I dont know how people cant be more happy about that. I think people are kind of gun shy. Thank you so much. Appreciate it very much. He has seen opportunity after previous russian falls and he got it right when few other investors did. What an experienced investor in russia is doing right now and how he is doing it. Thats two minutes away. Take a look at the main russian etf down 50 . Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Welcome back to power lunch. If you look at the volatility index it is up by about a point on the day in percentage terms that translates to about 3. 5 . The absolute number the Exchange Traded note that tracks the volatility index is actually down flat to lower on the day. A little disconnect for you etf investors who like to use it as a track on volatility. Rebounding oil prices are helping to lift another part of the market, the ethanol sector. Green plains and rex American Resources moving higher by good amount. All three are down significantly over the course of the last month. Ethanol a theme you can see over the course of the past month. Something we will be watching for sure. Russian stocks and the ruble taking a hit. Is now the time to jump in . Chief International Correspondent Michelle Carusocabrera is joined by a guest who bet on russia when no one else would. Joining us is one of the cofounders of fire bird management. Currently managing 1 billion. Thanks for joining us. Thanks for having me. What is a russian investor to do in a situation like this . Did you see this coming . How were you set up . We started to reduce russian exposure in march when the crimea invasion happened. So in our russian funds we are about 60 under weight russia although we still have a lot of russian exposure. In our regional funds we are about 50 , 60 under weight the benchmarks. We took some of that cash we reinvested in other countries in the region which were in our mandate thinking that the risk reward would be better there. Unfortunately, this last drop very sharp drop in the ruble has spilled over to a couple of the other countries that we like just because they have trade with russia and contagion like georgia, for example. And then some of our countries really do seem to be more immune like romania. For our retail viewer how do you do it . Are you buying etfs . Do you have somebody on a desk in moscow buying locally . How does it work . The Moscow Stock Exchange is probably one of the best organized institutions in russia. You can trade russian local shares now. A foreigner can trade them. You can trade adrs. We dont keep an office in russia, never have. I do it from here. So its not that difficult. Etfs, not at all. We are the opposite of an etf. We are an active manager. I dont recommend emerging market etfs period. The reason is because they are largely composed of Stateowned Enterprises with large market caps and those dont tend to be good performers for shareholders over the long term. Back in 1998 actually 1999 you bought gas prong for 20 cents. You sold it several years later for 12. That was a tremendous trade. Are we there yet now . Are we in the same situation back then, that blood in the streets movement where you buy in and you can make a tremendous amount of money or is it too early . I dont want to buy a bottom. I would say that there have been a couple of days recently where the market has dropped down into a vacuum with no buying where in fact stocks that benefit from a weaker ruble have gone down as much as stocks that are hurt by weaker ruble. That usually is a sign of cap itulation. There are signs of bottom formation. There are so many other factors at work here like the oil price, geo political situation. We need to see what putin is going to say on thursday when he gives a speech. Maybe he will say positive things that will give the market a boost. Thanks for joining me today. Fascinating stuff. I appreciate that. The dow bouncing back a little bit today up 72 points right now. Check out our heat map, the top gainers right now boeing, 3 m, chevron, verizon, two out of the three of the dow stocks are in the green. The laggers today home depot, microsoft and nike. Well be back in two. She inspires you. No question about that. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. 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. 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Another big day as we talk oil, russia, a whip saw day for equities. You are absolutely right. You named three huge market stories. U. S. Markets bouncing all over the place. The dow is down as much as 93 points snapped off as much as 247 and retreating a little bit up by 64. As for oil our second big story