Lori rothman has Market Movers from the floor in the nyse. First to the cme and trader Scott Shellady. Many analysts blaming the drop in oil prices for the market loss, scott. Weve seen other days with 3 oil drop that didnt lead to 250 point drop in the dow. So what else, what else is going on besides oil . Well, i think the underlying problem here is the fact that weve got equity prices overstretched because of free money. I have said before, you know, we dont have Interest Rate problem here in the u. S. But the fed has an Interest Rate problem, right this they have pushed us out the risk curve looking for yield. That is the big problem. No, we dont have a problem with our Interest Rates as a country but the fed has to find a way town wind this thats why this little hiccup here sent things tumbling down. Bearish news in oil sent us lower didnt help things. But it is still the fed with Interest Rate problem, not the economy. David almost an impossible problem. Scott, you will join us a
Lows. And wells fargo shares under pressure. Ceo john stumpf, well take you live to washington for the latest details. Duncan donuts is teaming up with cocacola. Nigel travis is in the house and will be joining us here to talk about the news and what some are calling a restaurant recession. Get his view of the big picture in his industry coming up in a little while. Deutsche bank falling on signs that some of the counter parties are reducing exposure to europes largest investment bank. Joining us now with more on this, cnbc fast money trader brian kelly. We have kate kelly and senior markets commentator mike santoli. It started around mid day when word got out that these hedgefunds were cutting back on their Counter Party relationship. The report just to review was internal document suggesting that a bunch of hedgefunds reduced they are relationship there. And essentially this highlights concerns about Deutsche Banks Overall Health and whether it is the right place for hedgefunds to st
What gelljanet yellen does. The banks fell nearly 1 . Deutsche bank leading the way lower and with the fed meeting next week and the government probe of wells fargo leading up, are financials a no touch heading into next week . Dan, what do you say . Its not just whats going on with wells fargo and Deutsche Bank. You have two fed meetings. If we get a string of bad data, maybe its jobs data, maybe its manufacturing data, they may not go 50 50 in december and these banks need higher ranks for them to continue to go up. Like you said, mel, theyre down on the year. Its one of the worst performing s p sectors. I dont see anything that compelling. I dont see Interest Rates ramping up between now and the end of the year at any time to make net interest margins that compelling and i think it will be a political hot potato. I think the question is at this point do the banks have priced in they dont have priced in a hike next week, right . Thats over. That was there was thats over. I think ther
And welcome to power lunch. Im melissa lee. Heres what else is happening at this hour. Stocks pushing higher with the dow and the s p 500 erasing all of septembers losses while the nasdaq on pace for a record close here. Existing home sales falling 0. 9 last month. Economists were looking for a gain. And North Carolina under a state of emergency following days of Chaotic Street protests after the Fatal Shooting of a black man by police. Weve got a live report straight ahead. But first, we got to get to Tyler Mathisen live at the iconic conference in boston. High, ty. Melissa, thank you very much. And its great to be here in boston at the iconic conference where we bring together some of the biggest business icons like todd wagner whom you just heard from on scotts show just a few moments ago. And some budding entrepreneurs, people whove either made successes out of businesses or want to. And in just a few minutes im going to talk to one very inspiring guy, Daniel Lubetzky, founder and
Well break it down. The action begins right now. Lets get right to it, because the only thing that matters for your money next week is bank earnings. Financials are the worstperforming sector this year. The big question here, will it get worse when stocks like jpmorgan and bank of america and citi report next week . Lets get in the money and find out. Mike . You know, i think, obviously, it does matter. Prices for the banks actually indicate that people are really concerned. I mean, if you take a look at the banks on a fundamental basis right now, what youre seeing are what would look like very low valuations. Look at a name like bank of america. This is the interesting thing about fundamentals, people like to look at the multiple and say stock is cheap, but cyclical earnings, cyclical stocks typically trade at the cheapest multiples right before multiples turn south. If youre looking at banks and the valuations, price tangible book, they look awfully cheap. What thats telling you is t