Betty are there serious profitability concerns or is this just anxiety pushing it forward . Breaking news, about an hour away on the the close of trade, a big day, big declines. We are off of the lows of the session. We are watching oil prices very carefully after the news out from opec. Julie hyman from the market desk has the latest. We are seeing stocks come off the lows and it has to do with oil prices. The nasdaq in particular only down a half percent now. Earlier comment was down more than 300 points, and take a look at here. I have looked at the s p versus oil prices today. Oils are in yellow and s p is an white purity see a lot of as theyty in Oil Prices Close at the lowest in 12 years before seeing a big lake upward here that coincide with a big leg upward in stocks. The wall street journal reported the Energy Minister of the united said opec is open which caused some kind of talk on production cuts. Also that nonopec nations that will see production there go down by a hundred thousand barrels per day. Day. S still lower on the to be clear. It is just the upward like we saw. Here is the fiveyear in oil. I mentioned a 12 year low. In last five years, we have seen an enormous decline in the oil prices. It has been interesting to say the least, the correspondence between oil and stocks. Lets get to the imap on bloomberg here, the various sectors on a move. Shares are down 1 in the middle of the pack here. It is relatively broadbased. All the broad Interest Groups are lower. Financials have been leaving declines on concerns over european banks after we saw a tumble in particular ishares us of credit squeeze. Boeing under investigation by the Securities Exchange commission putting pressure on it and the sector as a whole. This all means the s p 500 for the month of february has seen a sharp selloff here and we have seen declines approaching 10 for the year to date. This presumption of selling we have seen it everywhere he has an interesting. Here are the groups. The s p is down about 5. 5 or february are financials, the worst form a group on the year and four february the are. Down 9 alone this month followed by can or Discretionary Technology and energy. All these groups are cyclicals, viewed as economically sensitive in this environment where investors seem very concerned about the global economy. Betty thank you. Lets get a check of the headlines on first word news is afternoon. Mark crumpton has more on our news desk. K nato ordered three warships to sale mili to end the smuggling of Asylum Seekers the waters from turkey to greece. Some very prompt, click , decisive, political decisionmaking here today in the last 24 hours as the nations a recommendation and an opportunity. Some of us worked most of the night on it to flesh out details and possibilities. Than a Million People arrived in europe last year and most of them were syrians, iraqis, or afghan. Today pluss decision came after a request from three nato members, germany, and greece, for international help. Big endorsement today for the white house did of Ohio Governor john kasich. The home depot cofounder have previous he supported the of new jersey governor chris christie, who exited the race yesterday. Finished inich second place behind donald trump in New Hampshire earlier this week. A federal judge has ordered the state department to release all of hillarys emails by the end of the month. The next batch must be released on or before saturday. The department again making the emails public in may after revelations that miss clinton had used a private server and not a government account to send emails while secretary of state. The defense calling for Broad International support from the u. S. Plan to do islamic. He outlined the new strategy today before two dozen defense ministers. The car secretary carter says he is more military and Financial Aid for the campaign are in one of 20 nations are already helping fight the nations in iraq and syria area global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world and i am mark crumpton. Back to you. Janet yellen appeared before the Senate Banking committee today and spoke about the process is of a recession in the u. S. Ms. Yellen we are watching developments very carefully. Say there is always some chance of a recession in any suggests evidence expansions do not die of old age. At this point, i think it is premature to make a judgment. We will meet in march and our committee will carefully deliberate about what impact is developments have had. Betty our next guest says the market share is focused on financials and weakness in manufacturing while the real economy is more important. A Portfolio Manager which has 300 million in assets, joining us now in boston for more. How are you gaming out a recession in the u. S. . We do not think a recession is likely at this point as you just voted. They do not dive old age. Most indicators still suggest growth. Q4 was largely inventory based. We expect to bounce back in q1. The markets at this point are pricing in a significant degree of pessimism and we think it on takes a little bit of shift in perception to shift around some of the values in the market. There is a great opportunity at this point. Betty you are saying we are oversold . I think so. Look broadly speaking. It is bifurcated. Some is very expensive, but looking at the market, stripping out energy and materials, it prices in a 5 to 6 default rate, which we think is entirely too aggressive next year or it the market should not have default that severe. Liquidity could be partially to blame but having the ability to come into the market and provide that liquidity is a fantastic opportunity for investors, we think. Betty lets talk about credit investors. Do you think, as pimco seems to have implied, that we are looking at big losses going through the end of the year, miscalculated where the fed will go . We do. Take some set hikes out of the market, or at least the perception thereof in her testimony. But at 170 or so in the 10year note, it is coming closer to a greater fools game, where the margin of safety is really nonexistent. It is hard to time when Interest Rate will rise Interest Rate rise will come. But yields are too skinny, from a total return standpoint. It is just not an attractive ways to be. Betty they are not attractive. It seems like the jobs market is doing well. Credityou think investors are so pessimistic . What are they seeing that the economists are not . There is a lot of nervousness and skittishness after a long time of fairly solid returns. A strong obviously concern. The correlation between energy, the dollar am a china, it has all become swept up in one highly correlated trade. It is easy to write a narrative with fairly dire consequences. But it is not when we subscribe to exist. The market is pricing in imminent defaults. The risk return in some of the spots in the markets offers a great opportunity for those who can have a longerterm time horizon and will less concerned about the next week or month here that is how you have to approach the market. Overall, your big take away is what . I think the big take away is the u. S. Is tied in with global Central Banks at this point and it is hard to have the u. S. Separate from the pack to aggressively, as much as they would like to. We we need to see financial conditions ease. Down, spreadse normalize, to take the shackles off the fed. Thank you so much. Henry peabody in boston. What did you miss, we will have special coverage of the market selloff and that starts at the bottom of this hour. Still ahead, it is getting uglier for twitter. The stock is down and user growth has filing or what can the Ceo Jack Dorsey due to save the company . A look at how various sectors are performing today. Are in thesectors red financials are really taking it on the chin as well as industrials. Betty welcome back. Lets check on where the markets are now. A pretty brutal tumble today so far, but we are coming off of our lows on the session. This is a second low we are seeing here. The s p is down 1 , the dow off by 1. 5 . String to thetter close than what we have seen earlier in this session. Techs shares have in the best performers right now and you can see the nasdaq is down. 2 . It is time for a look at some of the biggest business stories in the news right now. Not a great time, words of frustration for the credits we ceo trying to turn around switzerlandsecondlargest tank and some of the worst turmoil in years. Shares have lost almost half of their value since october and slid to a 27 year low today. Part of an industrywide selloff raising can service about restructuring plans. Boeing is investigating according to people familiar with the matter. Projections boeing may for the longterm profitability of the 787 and seven or seven. It involves the way boeing spread the enormous cost of making the claims over many years. No comment from boeing or the sec. In paris, uber is defending its carved looking in court today saying it has never been found to provide an illicit taxi service in france. Two of the companys executives are standing trial over allegations of fraud and illegal activity. Dozens of drivers gathered to protest new regulations they say would put them out of work. That is your update. Pandora, may be getting ready to belt out a swansong. The Radio Service has been talking about a possible sale. The stock is jumping on that news. It is no secret the base is chockfull of competition. Pandora shares have fallen more than 50 in the past five months. Investors will be listening for more when the Company Reports earnings after the bell today. Cory johnson is in San Francisco with preview. Is it odd timing that they would be looking at now to possibly sell . Swansong, really . Times or pandora. A lot of things in the business have gotten better. Strong growth, 30 in the last quarter. User growth increasing, adding a lot of users. At some of this, the industry headwinds have always been a problem or pandora and remain a problem. They do not have a lot of data about users. Mobile advertisers so key to Companies Like facebook and twitter where they have seen relative success, significant increases in the value of their users, pandora does not have the same amount of data it uses and growth in the mobile revenue per user, which has been a problem for them as other companies are coming out in a music streaming is this that do not have the same kinds of costs as pandora and you see a lot of competition whether it is from app, a music program, and modify. They are facing a lot of competition so maybe they want to get out while the getting is good. Might buy them . A great question and i will not speculate. Radio is hot. People are listening to more hours of radio than watching television in america are they have also made great inroads into the automakers. The area they are stuck on the cars rolling off the lot these days. They have got competitive advantages that could be attractive to someone, the future of audio. Betty you went quickly over that one part. More people are listening to radio than they are watching television now . Yesterday more people listen to radio every day in america than watch what and then watch television. More people are listening to radio every single day in america than are watching television. It is an interesting change and it is the first time that it happened with the advent of television. Radio is holding strong. We think every new media will be bigger than the last of that is not always the case and that is proving that area betty lets sluice to twitter. People keep talking about for twitter. User growth is stalling. We did not see much more after the earnings report. Very interesting quarter. What we see from twitter is here we have the smallest of the big three social Media Companies in terms of audience size. Twitter, and enormous larger facebook yet it is growing not only the smallest pace in growth but its all users in the u. S. Decline in the past quarter. Will not countey the sms users that have been an important part of the growth. They will discount the number but also give user numbers. Things got a little better during the Current Quarter but that is not reflecting the last quarter. Fundamentally, a memo to everyone in the world of business. You sell something for more than it is worth, sell it to more people, and raise your prices. That is what twitter is trying to do. They were able to sell some he for more it is worth, easter about confidence nation cost, and isis. Revenue per user has been increasing howbeit at a slower pace. The problem is they are not adding more customers and that is a big problem for the company that needs to grow despite the selloff in the stock. Betty did we hear any Solutions Coming out from jack dorsey . We heard suggestions of trying anxieties to see what will stick, but we did not hear about dramatic changes in the project that might affect the business and at users to the platform. Cents twont two point . 2 or user is an impressive number and you will see profit get better and better for the company. It is not the kind of massive and hypergrowth the big valuation in stock might suggest. Betty thank you so much, cory johnson. Todays options insight as we had to break. A look at safe havens including gold, up the most since 2013 and the 10 year treasury yield just keeps getting lower and lower. Betty welcome back. Stocks are selling off and paring their losses. Julie hyman has todays options. Julie joining me is tim, the lead options strategist at delta derivatives. He is out in chicago. All of volatility is continuing today. Its seems at the beginning of the jt day today, there was another wave, and perhaps dramatic, of pessimism here spurred by the bank selloff. Why are we seeing a little alleviation here as we head toward the close . Very interesting we went down almost exactly what honest exactly genuine 20th. Think well need to see a break of that level significantly to get the nervousness of. Six certainly heightened but nowhere near the august and september highs when we saw the market, actually little higher than we are now. Julie remarkably low yields. 1. 6 on the 10 year. The options tied to the rates market, what kind of action is being there . Absolutely. And we are seeing a lot of feelings being put in here right around, 1. 5 and 5 on the 10 year. At some point, the bonds may flip over into the higher yield, higherquality stocks, given the fact of the yield differential, you can look at apple by yielding 10 on a fair amount now. Poking around 1. 6 level, pretty soon you will probably see a rotation into higheryielding stocks. Utilitieshave seen outperform as well for the region. At the suiking itself, considering what is going on here. You have got a call spread. It looks like you are seeing some upside here . Class cautiously, nonbullish, if you will. Im positioning for the market to not really race up to new highs here. Im selling the 195 strike out thearch, hedging by buying 200 strike hard to define my wrist. At a bigoking resistance level here. 7 above where we are currently at here. Im able to get 7 of the money, that same spread would have only been about 4 of the money, i like selling options spread in the high volatility market. Julie you talked about 180 and 102 as the bottom was his is level there in the sui. Is that what will be watching Going Forward . That will absolutely be the critical level. Before they turned on the vigo. A lot of guys when they gore went home. We will see if they have holes. If they had brakes, we will see the markets come down and evict popup significantly. I will wait to be a buyer to see. Betty we will watch it in the coming days. Well. Nuary 20 desk low low. Betty stay tuned for what you julie coming up next area mentioned below for the s p. We are not heading back down in that direction. Now heading back down in my direction. This is a special edition of what did you miss. I am scarlet fu. Im joe weisenthal. Alix i am alix steel. Alix markets claw their way higher. Opecs is ready on production cuts. Losses of 2 . Oil is clawing its way back off of a 12 year low. Joe the question is what did you miss . Tumblingglobal stocks toward a bear market. We break down the move sector by sector. Of a globalears recession. Our guest says the focus has moved from china to the u. S. A good Interest Rate, do they actually work . Rates, doe interest they actually work . We have an extra half hour to dig in what is going on domestically and abroad. Examine all the major scenes including the strength of european banks, china, and the u. S. Economy or it lets get to three things that caught our attention in the market. , and p fast cash index index you wind up looking at. Im looking at is on a tick by tic basis so you can get the lows here. Hit,an see the lows we this one back in 2014. The low in january was about 1812, and here we surpassed that low on intraday basis around 1810 and were able to move up above that level. This is significant. Can it hold . What happens if we break below the level . Bob says, if we had closed below the 1812 for the s p, youre looking at potentially going down into the 1738 levels. A lot of room for downside. A long way off. It is good we touched that level today and did not completely deteriorate. And can we sustain that for the close . Janet yellen has been testifying on capitol hill and did not give the market any answers. Secondguess his spirit im looking at the work function on the bloomberg here at world Interest Rate probability. Raise rateshe fed in december, there has been a market for betting on a fed rate cut. Courtney, can you pull it up for me . What you are basically looking at are the odds of a rate cut. It is the white line at the bottom. It is coming up and is now higher than the odds of a rate increase, which is the line coming down for most of 2016. That is interesting. We are not talking about a gods. A notable shift in sentiment nonetheless. It is extraordinary waking up this morning and looking at this function first thing in the morning. Markets were pricing zero chance of another rate hike basically and even then, it was still 7 . S it has changed a little bit today. There is a slightl