Of february of 2009. Art cashin joins us as well. What is drooeg all this today . Emerging market currencies, and right. So far the s p stopped at about 2020, which is where it held wack on november 16th before it started a pretty significant rally. So well watch that. If we weaken again, if they violate that area, we could be in a little bit of trouble. Were looking at technicals here, but the markets are very nervous. The buyers are if not on strike, certainly on the sidelines. You had drawn 2040 earlier in the week as a line to be watched. This is decisively on the up side. Yep. We went right through it, and youre building a series of lower highs and lower lows, so the technical aspect of the market is not very good at all. Anything the fed is going to do thats going to surprise the market at this point aside from, i guess, not raising. The question traders have been asking all week is if the markets keep acting like this going in, what is the fed going to do . Theyre in a quiet period. They cant communicate with anybody. The fed is going to have an awful decision on its hands. It relates to high yield. Were starting to get a picture of what third avenue, what this particular fund owned. People wonder about pockets of excess risk, right . Excessive risk. Do you believe it will be limited to pockets . Hopefully its an isolated case, but everybody remembers that, and the pain returns when they remember it. So Holiday Season seems to be going fine. We have earnings from adobe last night. They were very positive. Adobe, of course, tracks ecommerce spending and seemed bullish on that. The fed presses the button. What happens around the world to all the Global Markets . Finally, well get many china data tonight, which will set the tone, im sure, for the weekend and honest morning. Monday morning could be very interesting. Art, thanks. Art cashin. As we said wrerl, dow dupont, the other big story today. The Companies Joining in that merger of equals. Worth about 130 billion. David faber talked to the ceos of both of those companies. The markets not cooperating perhaps, but the unveiling of this deal, carl, you know, we first reported on it on tuesday night, wednesday morning. Wednesday a very good day for both stocks, adding as much as 14 billion in combined market value. Not the case today as you see there. Perhaps a bit of disappointnt amongst some of the shareholders in terms of rather than wroe. 1. 282. Also, obviously, a broader down day overall. Dow shareholders i have spoken to have also asked the question that 9 billion of the 15 billion in ebida that this company will generate as dow dupont is coming from dow, so why didnt they, that being dow, get a bigger slice of the overall pie . I asked dow ceo andrew liveris. I think they got a terrific deal based on what i said. The market speaks based on equity value. Its not just ebida. Its quality of ebida and predictability of ebida. As we talk about the three business that is will be created, the Specialty Products group will have a higher multiple. The ag business will have a higher multiple. Our multiple is lower as a dow company, and as a group well have an uplift in multiple, but its the multiple verse the ebida and the quality and the predictability of ebida. Im not telling investors anything they dont know, but when you look at ebida, you have to look at what constitutes the ebida. Why not just saechl help . Why not split down the way you are now in the future . It would have been a lot quicker and conceivably you could have gotten it done in a more expeditious fashion. Why was that not preferred . This deal, you have to understand is the most taxefficient way to put the pieces together properly in no tax. We now create a Specialty Company thats going to have a nice multiple trading against it. Dow puts the right pieces from dupont in to where they belong, and we had the same issue with dupont. A lot of confusion about how do you value all these different pieces. We fix three strategy pieces all at once. Then we have the synergy on top of it. Then we have our growth plans on top of that. All taxefficiently, and that would thats not ease where i to normally could. Finally, this idea of who is going to be running these individual units . I mean, you mentioned youre not necessarily going to be out bound. Do you know what you like your role to be once, lets acall it, once this closes and the 18 to 24 months is taking place. Are you done . No. The executive chairman role suspect very clearly spelled out. Ive got direction to set up materials. The peace of that, we hope to get it done as fast as possible. Look, i have had a tremendous opportunity to be ceo of the dow company. The vision to get us here has been a boarddriven vision, and im happy that once we close it deal, execute and put the plan in place to get the deal launched, then well make the right decision and theres no need for me to be that person. Andrew veris will be executive chairman of the combined dow dupont. Ed green, as ceo, he referred to there, mr. Liveris has been the driving force behind trying to get this deal done. Its not something he really was able to get much traction on when Ellen Coleman was the ceo of dupont, but with the assention of mr. Green taking over for her once she left that office not long ago, it seems that was the first call coming in. Lets see if we can put this together. Mr. Green, of course, as you heard there, much more interested. In fact, he referred earlier in the interview to being interested in the combination when he was a board member and took over as a board member in february of this year. Simply some interesting background there. Overall, of course, as they recovery to an Agriculture Company koreaed here with 19 billion in revenues. Material sciences company, largely dow businesses. 51 billion in revenues, and Specialty Products, another 13 billion in revenues, all of which become their own companies after this deal closes and then another 18 to 24 months pass so they can get those out into the public market. Regulatorywise, it doesnt appear that this is going to be particularly focused on, although you never know. One never knows. We certainly cant say. They dont seem to have enough market power perhaps that the antitrust regulators will really come down hard on them, carl. The market today, though, saying, well, all right. Well see. Lets see if they can prove it and bring those 3 billion or more in synergy and cost synergy numbers and growth synergy numbers to the fore. Back to you. Certainly a little selling on the news as well in there. David, thanks so much. David faber. When we come back, jack ma following in the footsteps of jeff bazos. What his big move means for alibaba, and a big executive leaving yahoo. Kara swisher will tell us whats going on, and well continue to watch this decline in the markets. S p down to 2,026, and the dow still down 200 points. Were back in just a minute. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Get up to 48 monthsw interestfree financing on tempurpedic, save 300 on beautyrest and posturepedic, or choose 300 in free gifts with stearns foster. The triple choice sale ends soon at sleep train. The marketed is in in trouble, but we have tech news to get to as well. Swrak ma is one of the big stories. Alibaba buying the south China Morning post. The New York Times today says trying to polish chinas image for a western audience. What do you make of this . Well, i think they think the coverage of china has been kind of simplistic from the west, and this is a newspaper in somewhat distress, like most of them. The only reason you buy a newspaper is to have influence and impact, and thats what theyre going for here. They didnt pay very much money for it, so i think they just want to have an outlet to give better coverage of china. Thats the news version. Not so nice version is they want impact and influence and want to influence the discussion there. This is a hong kong paper that was already raising eyebrows because its coverage of china. Some critics say had softened. Jack ma essenticertainly has a interest in not ticking off authorities. Is this going to have a broader cultural bakt when it comes to freedom of speech and expression about the chinese government, you think . Im not sure the newspaper is covering itself with glory recently, so its been an important paper for many, many years, but not for many, many years. I think, you know, the survival of paper is a good thing. Obviously its going to be probably, you know, writing about china ink and the interest for alibaba is the china looks great, and well see how they cover it. I dont suspect theyll be doing investigation intuz fraud on alibaba and things like that. At the same time, you know, look, a lot of Big Companies own big newspapers, and, you know, you could question their motive too. Does it move the needle incrementally as to what alibaba may be interested even not just directed toward a western audience, but in a western audience . We shoulding they operate in on the new york stock exchange, and every time theres a small thing that happens in china, say, you know, theres a counterfeiting thing, are they is the western press covering it correctly is probably a concern of theirs because their stock gets affeed every time something gets covered, so i assume they want a smarter press or a more a press that knows the market better to explain things. Sometimes thats a good thing, and sometimes thats going to be a bad thing. I dont think its for entertainment. I dont think theyre trying to become a Media Company in that regard. Theyre doing that in video. Theyre doing that in video for sure. Meantime, on a more serious note, in the wake of the attacks in paris and in california, the fbi director is now calling on Tech Companies to stop by default end to end encryption. Thats a sentiment echoed by president ial candidate Lindsey Graham this morning on squawk box. Take a listen. Heres my advice to our friends at silicon valley. If you cant find an agreement with the fbi director soon as to how we, the government, with a court order can find out whats going on with terrorist communications, congress will do this for you. Kara, were back to the encryption debate. Has it moved although . Yeah. No. The companies Lindsey Graham doesnt know how to turn on a couter, so he doesnt understand the complexity of this issue. I think theres definitely major issues at stake here. I think there is its a little bit more complex than it is to just shut off a back door. It affects consumers. It also affects privacy around consumers, and the Tech Companies have good reason for resisting this on privacy concerns around consumers and protections, and at the same time there are very serious issues. You know, i think that focussing on the tools rather than the terrorists and i get that there is a focus on the tools, but they could use theres so many other ways to communicate and stuff, so its much more complex issues than president ial candidates popping off. I see why the fbi director is doing it to create pressure, but this is a long and complex discussion, and that has to happen with the government and Tech Companies and youre not going to see apple or google comment on this at all. Well, a, why not, and, b, are they going to have some sort of an effort third party effort to influence the conversation about this . Theyve been very, very quiet. Havent even really heard their proxies putting together a coordinated response to why breaking encryption basically its not true. Its not true . Tell me what it is then. I havent heard the coordinated response. Thats not true. There was a Software Group last week or two weeks ago. I was looking into this a couple of weeks ago. They did come out with a response talking about these complicated issues around privacy and Consumer Protection at the same time. You know, tim cook what did had he say . Just that its complicated . Thats not a response. No, that this is this impacts if you remove the ability to encrypt things, you open the door to hackers and all kinds of other things. Yeah, sorry. That doesnt count. We all know that already. Were hearing were hearing yes, it is a very important concern if you are a tech company. Thats not a response. Weve heard it already. Were hearing this constant drumbeat from the other side. I know you wan a response, but theyre not going to respond because to do this in public is really its such a complex topic, and i think tim cook, for example, has been incredibly articulate on this subject, whether you agree with him or t is a different issue. He has been out front of this thing talking about not doing it, very firm about it. The government, for their part, is going to be very firm saying this is, you know that terrorists are using imessage or other ways to get through, and i just think this is a longterm and important debate that literally Lindsey Graham has he can say what he wants, but i think its just to score points and scare people. Its not going to its a complicated issue that has lots of parts, and you cant simply just do, like, turn off, close the back door. Its just not correct from a technological point of view. It creates all kinds of issues if you do it. Yeah. Meanwhile, reuters has a story that turkey has fined twitter relatively small fine, but for what theyre saying the platform failing to reduce terrorist communications on the platform. I just wonder if you think that pressure is going to bleed across the atlantic . I think its going to go all over the place. I mean, its easy its mraming the tools is a good way to do it, and there are some tools being used. I think there have been tons of tools these terrorists have been using for a long, long time, and theres lots of ways to go if they dont if areas are closed off. This is a really difficult and important issue, and to, you know turkey is they can cut that off, and they should respond. These companies should respond. I dont know. Its a getting people to stop using twitter, where do you do it . How do you find them . Im just saying its much more complex than just a two second debate. Finally, kara, as you reported, another yahoo executive, this time its the svp of Advertising Products leaving the company. Marissa mayer talked to us about attracting and keeping talent earlier in the week. Lets listen to that. The separation of the alibaba stake is actually incredibly important in temz of attracting talent. One of the things thats happening right now is because so of our value is driven by alibaba, its hard to correlate some of our Business Results and business successes to our valuation, and that really does matter to key talent, and so we actually think that well be able to get more clarity into the value of our operating business as well as attract better talent because their efforts will be better correlated to our share price. A really Top Executive there, and theres all kinds of issues why he was leaving, but people like this is, you know, not a great not a great sign for yahoo. I dont know if its of course, every now and then quality people leave everywhere, but is there any kind of balancing idea that marissa is doing or even her deputies doing a really good job recruiting at the same time . No. No. I dont think so. I think i get that people leave and go, but i was on a radio show with miguel who had a great piec for forbes a couple of weeks ago. I think he had counted 24 major executives leaving. Thats a lot. You know, talent is at a premium here in silicon valley. Attracting people in, its harder when theres a massive exodus going on, and for most of the stories i hear inside yahoo right now is relative chaos in the management ranks, and so the question is can she get it together and for top managers, but if the top managers are leaving, what top managers do you rely on, and this was this was not a departure, i suspect, that they wanted to have happen . Finally, kara, she did say she would not consider leaving. Do you take her at her word on that . Yeah, i do. Shes a very strongminded person. I think shes got a plan that she has told people about, and i talked to lots of her mentors and friends. Glad to put this one to bed. It never will end, i think. Its a fascinating company on any measure. Kara swiber joining us from out west. Kara, thanks. Up next, the privacy versus security debate may hav hit a turning point. The latest on what may be changing minds and watching the selloff in the markets right now. The dow down just even at 200 points. Ticking a little lower. S p 500 down 1. 2 . Also, well bring you europes close and what it means for the u. S. In just a moment. Steve liesman is back at headquarters. Thanks very much. Our r nbc all america economics survey asking about the issue of terrorism encryption and government monitoring of terrorists is a very interesting result. I want to show you this first graphic here and explain a little bit. We went into the field just before the San Bernardino tragedy. We went back into the field. Originally we asked 800 americans. We went back and we reinterviewed 347 to get very different results. Flying, more concern there. More concern about visiting big cities. Then we asked these two right here about attending big events like concerts, and also going to the shopping mall. Not huge and overwhelming, but some increase in concern. What should the government do about it . When it comes to the issue of are you afraid the government wont go far enough or will go too far in monitoring terrorism, take a look right here. This is july 2013. The height of the revelations from eric snowden. You can see more americans were afraid of the government going too far. More concerned about privacy he here. We were the fist to ask about this issue of should Tech Companies offer or sell thats encrypted devices that the government even cant decode. Take a look here. Yes, the company should sell it. 53 of americans know it goes too far in protecting criminals and terrorists. Just 36 . Guys, we dont know how these results would have changed after San Bernardino, but these are very large majorities. I will say not a lot of americans were familiar with the issue. We spent time in two separate questions to explain it. In both questions, we got majorities in favor of these Tech Companies selling this. I would like to point out, though, that democrats and republicans are actually evenly split on this issue so its not political yet, guys. Im sure the framing of the question had a lot to do with the results, but thats really interesting stuff, steve. Thank you so much. Steve liesman. Back at hq. Stock selling off here. Dow down 231. Europe has recovered from the absolute lows of the session, but week to date losses, no good. Session for europe, of course, and its been a rough week for europe as well. Its an awful lot of red on the screen. This is how europe closes out now for the week. Negative territory. All the way around. There you go. Greece is doing its own thing with the banks. Its important to understand the magnitude of what is going on in europe. With one of the exchange markets, i thn currency is a oneway bet. Cover your ears because no good ever comes of it. I can promise you that. Lets get back to the moves on todays market. Whats interesting in this down draft is how some of the big banks have come through on the down side. I dont know. I dont have a specific reason, but these are broadbased banks. Is this about credit quality . Is this about loans or simply because of whats happening more broadly in the market . The south africa plays are certainly lower. That countrys president seems of its own val igs to ram the country into some sort of credit crisis. There you see again. The minors and the basic resource stocks have resumed their trajectory down after the Short Covering that we had earlier in the week. Weve got another downgrade on angloamerican. Up one more. It is, of course, the second round of elections Regional Elections in france this weekend. This is marie lapen who did so well last week had theed in six regional races. The opinion polls suggest she may actually not win one of those Regional Elections this weekend. Partly because its been no followthrough. Partly because the opposition legacy parties have moved against her to restrict candidates. Therefore, focussing their opposition in one area. Marie lapen suggested that donald trump may have gone too far. 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. So wi got a job ews . Ill be programming at ge. Oh i got a job too, at zazzies. friends gasp the app where you put fruit hats on animals . I love that guys, ill be writing code that helps machines communicate. interrupting i just zazzied you. phone vibrates look at it friends giggle i can do dogs, hamsters, guinea pigs. You name it. Im going to transform the way the world works. proudly i programmed that hat. And i can do casaba melons. Ill be helping turbines power cities. I put a turbine on a cat. friends ooh and ahh i can make hospitals run more efficiently. This isnt a competition to discuss the situations in syria and ukraine. Kerry will be in paris on monday to attend the latest talks on the syrian crisis. The paris climate talks have been extended into saturday as more time is needed to reach an accord. Climate president fabius telling french tv he would present a compromise text tomorrow morning. President obama and chinese president xi talking about phone to get a deal done. Iraq releasing video reporting to show iraqi forces held by islamic militants in rahm add where i. No date was given on when the video was shot. Iraq saying air strikes inflicted heavy losses on isis. North and south Korea Holding high level talks at a north korean border town. A small step battered by military standoff in august. No major breakthrough was reached, and the two sides deciding to extend the talks for another day. Thats our cnbc news update for this hour. Now lets get back to squawk alley. Iccheck of the markets. Theres a look at the dow 30. A couple of components in the green. Theres not been much attempt to rally here. Lets take a look at the bottom line. Simple. 51 tee clining on advancing stocks. Volume is moderate, bleechbt. Not heavy. Volatility is elevated. The vix is at a twomonth high. Lets take a look at the sectors. Energy, materials, consumer discretion. All the sick liblgal stocks are the ones that affected. This has been the story all week. The cyclical names. Energy materials. Discretionary much weaker than the defensive names like utilities and consumer staples. That trend is continuing today. Ive been asked a lot about the vix. Its elevated. Its over 20. Thats when i start paying attention. Its 22. A lot of people have noted, look, the cash vix, which we quote is 22, and the futures contracts are lower. The december, january, february contracts are actually lower. In the past this has usually indicated at least a shortterm bottom because it indicates that the shortterm panic going on. I think that whats happening here is that this particular cash contract represents and encompasses the fed meeting on december 16th, and i think thats why this is elevated because theres market saying shortterm concerns around the fed meeting. Those other three futures contracts i show you do not incorporate the fed meeting. People have been asking about this, and i think thats why the cash vix is elevated right now. High yield. Obviously theres been a lot of discussions here about the third avenue funds, spending redemptions, and i think the important thing here is this fund really looks a little bit more like a Distressed Debt Fund than a high yield fund. 50 of the securities they own not even rated, not even triple c or cc or c. None of that. That looks like a lot of high risk stuff thats in that. Obviously, though, it is affecting other high yield funds that obviously dont have as much rescuey stuff. Oil is still number one. We do see themes around Risk Reduction hfd the fed. We mentioned that. Cyclicals are notably weaker this week, and finally the credit concerns. You put them all three together, carl, and youve got a weak down market. Thank you very much, bob. Meantime, we had a little drama down here on the floor on pbyi. Lets get to dominik and see whats going on. You guys saw that kind of crowd that was gathering there for puma biotech. The shares are down by 20 . Sheer sinking after disappointing data for one of its experimental Breast Cancer drugs. The data was presented at the biggest cancer conference of the year, and back in june similar data also disappointed as well. If you take a look at this, remember, multiple halts today, john. One for news and multiple ones for volatility to the down side. Thank you, dom. Fresh off of its ipo pop yesterday, shares of Software Maker atlassian hanging despite a selloff in the broader markets. Could this be a sign of a brighter ipo market, or at least some unicorns next year . Denmark partner of Connectivity CapitalPartners Joins us now here at post nine. I think the advice people ask for tends to be consistent. They tend to ask for help raising capital. They tend to ask for help in staffing. They tend for help through scaling. When you have seen a shift is more people are thinking about strategies for how much do i raise, how long should i think im going to need to keep my current round open or more importantly, how much time should i plan for between rounds . I think thats half right. I think theyre more common. I dont know if theyve lost the stigma. I think that people are definitely much more open to the fact that thats a possibility, but no one is thinking i want to have a high valuation now so i can get a down round later. Thats still something that is relatively frowned upon from a branding exercise. Is there an eagerness to ipo in this environment . I mean, atlassian was just yesterday, and it was unique in that it went so well, or are people just trying to hunker down for as long as possible so they dont feel forced to before theyre ready . Its interesting because you have a couple of factors at play. I think the two have a number of people who are thinking that the Public Markets are a lot more difficult to manage and whether its from a Sarbanes Oxley regulatory framework, but the work required to be public is something that a lot of entrepreneurs do not dont want to deal with from a headache perspective. The sort of activist shareholder potential hall enkz in the way that you have to manage Investor Relations also something that they dont seem to be excited about. On the flip side, you have investors that are saying, well, if you dont think about going public, you may miss your window. You know, meris at Google Venture has made comments to that affect earlier. Sales force made comments to that earlier. Theres a dynamic tension between people saying, hey, look, you need to hit the window, and then entrepreneurs saying if i can get the money somewhere else, i actually prefer not to deal. Have you had anyone heard of anyone say we did a public exit, and we wish we never had done it . You hear that a lot, actually. Its theres a number of instances in life where you think you know something going in, and then you get there, and, oh, wow, this is actually a little more difficult than i expected. Getting deep on me now. Were wking together here. Is the horn coming off the unicorn. Comments were made lately saying im done with the unicorns and people reaching the valuations of a billion plus. Theyre gaming the system. Are startups less eager to hit that point when theyre talking about funding, or is that still something a ring that people are reaching for . I think that theres a couple of issues there. One is the goal of the entrepreneur, which is to get to the billion dollar valuation. That still has all kinds of positive implications. And its a branding exercise. People want to be a part of that club. Even at, you know, 90 some odd u. S. Los to 150, you know, global unicorns, thats a very small group, and to be a member of that club still has a pretty significant stat where yous. The second one is thinking about where the implications are. The late stage valuations on the unicorns and im going to give you a billion dollars, and im going to build in my return based on the exit. Yes. Some of these are horses with carrots strapped to their heads. Perhaps thanks for shedding light on that from your valuable perspective. Thanks for having me here, guys. Great to have. Stocks continue to sell off for the dow down more than 1 . 1. 25 , actually. What are you watching today . Im watching the markets. Im watching as markets around the globe recalibrate to what may be a landscape much different on the rate side as we enter 2016. Most of all, im actually going to show a few Silver Linings to the notion of rate normalization. All after the break. Coming up on the halftime report. Experts all over the health selloff. Continued carnage, to more sfeerz over china and the emerging markets. Heres heating up with high yield and one mutual fund. Blocking withdrawals from the First Time Since the financial crisis that thats happened. Better late than never. Another downgrade for go pro. Carl, maybe thats what the analyst was thinking. Raised eyebrows today. We will certainly discuss in about 13 minutes. You know, hey, stocks come down. 70 this year. Chuckles this morning, so the. Thanks. Well see you soon. Receipts go to the cme group. Rick santelli and the santelli exchange. Hi, carl. Listen, for quite a number of years i have not been a believer in the current medicine thats been dished out by central bankers to remedy what they see are the problems with regard to local and global economies, but i do see a silver lining, so lets start at the beginning, and the best way to start is one of my sources emailed me something today that i would like to read for you, the viewers and listeners, because i found it so fascinating and spot on. I still find it amazing that despite the extraordinary period of low growth and prices in japan that we all observe for years fast forward now the u. S. , europe, and china and the parallel time frame of ultra rates that pretty much no one seems to want to consider that the latter is a causative finish nonnon. Thats wordy, but what he is saying is accurate. We all notice japans lost decade and lost decade and a half and lost two decades. Now pretty much the whole globe is in somewhat the same boat. Theyre not getting enough pricing pressure, and thats for a whole other discussion, and certainly not getting enough growth. Whcant anybody other than a select few seem to look at all of these ultra low rates and all the largest economies and look at what the output of that sausage factory is and find causation . I dont understand it. Yet, in a way i do. Okay . Now, when i bring this up in discussions with traders, theres always a segment that would Say Something like this. This is the way the Central Banks and particularly u. S. Central banks have done it for decades and had some success. I dont disagree. A little bit of salt on my meat makes it taste delicious. If i put a half a pound on it, its not good for me. I think the same can be true under normal Economic Conditions that tweaking these things can result in the wrout come that is they like. I think at the point were in now where especially all the economy is in the same boat that i dont agree. This is what actually gives me hope. I think normalization of rates and that recalibration will be painful, but theres pain no matter how you slice it. Either spread it out over decades or get it over now, even though its been close to a decade. In the end rising rates are going to cause things to be much better, and the in the u. S. Way better. John fort, back to you. All right. Well see what we get. Thank you, rick. Meantime, a major setback for draft kings and fan duel in new york. Eric joins us with that story. Eric, what do you know . How are you doing, john . We just talked about it on your show a few moments ago about how unikorns, you know, theyre not doing as well as we would like to think. Two of these Unicorn Companies have been valued at over 1 billion in the last couple of months. They had a big setback today because the judge in the new york state, judge mendez, said they cant operate in the state anymore, and thats a temporary ruling while they have their larger trial to figure out. Whether these things are stoelgtsly illegal and will they go forever . To the judges point, he thinks theyre going to lose that case. Thats why its a big setback because if said you guys can temporarily keep going while the trial happens, that will be his way of saying i think youre going to win the case, and everything is okay. Its a big deal. Some of the private markets have actually said that these two companies have dropped about 50 . Companies that were about 1. 25 billion before, now trading at 600 million. Thats a big problem because new york state has a 10 of their entry fee on a week to week basis, those entry fees are down about 25 from two months ago when all this controversy started, and because new york was a key state when it comes to setting law precedent. If this goes away, what it means for the rest of the 49 states. John. Yeah. I know youll continue to track this and bring us the latest. Eric, thanks so much. Up next, stocks continue to sell off, but adobe, one bright spot to daves market. Earnings yesterday cheered the street. What the ceo of adobe told me is coming up after this break. You totaled your brand new car. Nobodys hurt, but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. Learn more by calling switch to Liberty Mutual and you can save up to 509. Call for a free quote today. See Car Insurance in a whole new light. Liberty mutual insurance. Adobe reporting a Fourth Quarter revenue and earnings beat after the bell yesterday, and raising midterm targets and digital market. I spoke with ceo where heed. Heres what he had to say about getting more engagement and revenue from cloud customers. Very pleased about what we have seen in fiscal 15. We clearly expect that to accelerate in fiscal 16. When you look at the targets that we gave and reiterated, we expect to add, again, another 1 billion of annualized revenue for 16. It clearly reflects the momentum and going back to max, the large opportunity that we think is still ahead of us. Sfwro we feel good about the set of solution spz products that we have. You know, the opportunities for adobe are greater than ever before, and the in terms of what we can deliver to our customers is greater than ever before. We remain focused on the stuff that delivering right now to customers, and continuously look for expansion opportunities. He managed to tuck in some of the things that theyve bought and get subscribers to pay a little bet more for these added values. Stuff like adobe stock. That was the first one he said was on target, what they expected for the were. All the earnings calls with companies in these transitions. Half of it is explaining how the revenue will be recognizeded down the road. Go pro joining the list of losers after the downgrade at citi. A couple more Silver Linings. Were going to look hard for them, but theyre out there. When we come back. Go pro shares falling today after the company was downgraded over to neutral at citi, citing softening demand for their products. Shares were down a lot earlier today before coming closer to the flat line. The stock recently surged, as you know, following a report that the action camera maker could be bought by apple, maybe one day, but citi states that acquisition is actually unlikely. Even with future product launches of karma and they fear consumers may trade down to newly discounted go pro cameras. A reversal for city. One of the catalysts is seeing woodman on qvc, which is not a new phenomenon at all wrfsh. Its not. This discounting thats happening given the inkren sorry issues that they talk about in the last call was concerned that the picture is even less rosy than the call suggested that it wasnt just a matter of getting the pricing on the session down 100 because theyve since dropped it another 100. You essential want to offer some deals during the Holiday Season, but you sort of if you are a go pro with those margins, you want to do it in a more applelike way. You wont see apple dropping 100 on anything this Holiday Season. Absolutely. Its even in a deflationary electronics environment, thats extreme. Week to date weve been looking at the winners and losers. Keurig Green Mountain is still by far the biggest winner on the nasdaq 100 for the entire week. Up 73 . That deal, john, given everything weave been through this week feels like a lifetime ago. It does. It feels like it was a couple of weeks ago. A little shot of expresso there in the stock price for sure. Fit bit not doing so well. Down more than 10 . Maybe somebody wilstart a rumor about them too. We will see. Weve got a lot to get through tonight. Chooun will have Industrial Production and retail sales after the close. Youll be reading about that during the weekend, and, of course, a couple of trading sessions now from a fed meeting which happens next tuesdaywednesday. Have a good weekend. Lets get to whop ner and the half. Back at hq. Lets meet our starting lineup for today. Jim leventhal along are swrosh brown and we begin today with the markets. Several developing stories at this hour. The selloff in stocks, which you see there. Drag lower by more carnage for crude oil. China fears emerging once again. Were also learning that the mutual funds since the depths of the financial crisis to stop investors froo withdrawing their money. That has a lot of people talking today. Well get to that in just a moment. We do kick things off