Biggest amount in seven years. Largely because of President Trumps pro business agenda. We have the full details on how it could impact your business coming up. Meeting with saudi Arabias Deputy Crown prince. This is on the heels of opecs new report showing conflicting data on saudis Oil Production. Saudi arabia directly reported to opec it increased Oil Production in feb to 10 Million Barrels a day. This conflicts with the secondary sources that saudi Oil Production decreased. Lets bring in brenda shav schaeffer from georgetown, university. An issue thats hurt oil prices before we go on to saudi and opecs impact and that, of course, is u. S. Inventory levels. Is that a genuine fear for oil prices . I think we have to look at the short term and the long term. The short term, obviously were seeing this is having a huge impact on the oil price, a very big dip down to november 2016 levels. So its the saudi data, the confusion about the saudi data and also the u. S. Inventories. If we look into the data we could see in the long term theres indication for a rise in the oil price. The data is indicate be yup tut up tick in demand. And francisco, youre also bullish on oil saying this is a dip to buy. Why does everybody maintain bullishness on the oil price these days . Yes. I think the markets trying to do two things simultaneously right now. The market is trying to clear out the u. S. Inventory glut and at the same time were also trying to slow down share production growth. So the two things that are going on simultaneously is that brent and wti spreads are about to widen. So we start pushing more barrels out of this country. At the same time the back end of the oil price, so starting off contrasting 2018, 2019 and beyond are coming down. So that shale producers slow down the rate of increases. Two things are going on at the moment. Francisco, of course so much of the Oil Price Recovery in the last year has rested on that supply cut we saw there between opec and a few other countries like russia. The saudi arabia Production Day to day worries people once again. To what extent is there a fear in the marketplace once they get through the saudi aramco ipo that they will ignore the deals theyve made in the last year or so . First of all, its not imminent. Were a year if not longer away from that moment. Im not sure why this much of a focus right now. The saudis have always been trying to do is push the market into it. They want to encourage more hedging by Oil Producers so the back end of the oil curve, so say prices in 2020 get anchored at a lower level while the spot price rises as inventories drop. Thats been the theme. The messaging in the last few days may have been a little bit off so im not going to argue against that, but i do think the objective hasnt changed. They want to achieve higher spot prices, lower forward prices and, frankly, this is really the time to get it done. Inventories in europe and in asia have declined. We just need the u. S. Inventory piles we have to calm down and, again, that requires a wider wti brent spread. Brenda, if this becomes an all out war for market share, who is going to win, opec or the u. S. Producers . How low does that mean the crude price could go . I think its really important to discuss the spread between wti and brent because as u. S. Production rises, of course it does affect the Global Oil Price and it does affect brent but the type of grades that are produced in the u. S. Dont easily find a different market. So i think i agree were going to see a growing spread here. This actually wont be such a war about market share. And also i think there are a few bumps in the road ahead of time. Last week the executive director of the International Energy agency pointed out nigerias production going down, venezuela, china. I think algeria is a big question. And even in iran with elections coming up in iran there could be major instability around elections in the spring. We might have outages. Not everything is going to stay the same. Brenda, quickly are you saying that u. S. Crude and international crude are not substitutes . Theres some reason they should be trading at different prices . Wti and brent do trade at different prices. Sometimes the gap is smaller, sometimes its larger, but youre seeing like, for instance, even today the wti took a much bigger dip than brent. I think well be seeing a lot more of this as u. S. Production rises. That will be very interesting. Brenda shaffer, francisco, thank you for joining us. The oil price down a percent or two today as well. Below 48 a barrel for wti. At this hour President Trump is discussing the gops proposed replacement for obamacare with the ceo of Health Insurance giant anthem. That stock is up there. Many other insurers are under pressure. Kayla tausche is in washington. Kayla . Reporter joining that call with the president is health and Human Services secretary tom price who told me that the content will focus on improving access to insurance. Press Secretary Sean Spicer said its about how Insurance Companies can create new plans for consumers. The ceo of anthem praised various facets of the plans in a letter like repealing Health Insurance, taxes and offering state stability funds. He writes, quote, without these changes the market will continue to deteriorate in 2018 and, therefore, i am writing to offer my support for moving this process forward as quickly as possible, end quote. Access is a key talking point for the administration and for its supporters in the wake of this new report by the Nonpartisan Congressional Budget Office that found positive fiscal effects. But loss of Insurance Coverage for 24 Million People. Heres Senate Majority leader Mitch Mcconnell addressing the report on capitol hill saying he thinks the fiscal part is inaccurate. Reflection, the coverage part is not. I pointed out the part that i think is an accurate reflection of the tax reduction, the likelihood of premium going down. The medicaid reform. Senator blunt pointed out its pretty hard to predict coverage when the government stops telling you you have to buy something you dont want. Very hard to predict. Reporter he later went on to say that the senate will accept and discuss the bill that the house puts forward that they will decline to play a heavy hand as of yet. They will let the house figure that out and they will take it up when the house arrives in the senate. As far as the calendar, the Budget Committee will have a markup on thursday. Thats the next thing were watching for to see exactly what comes into play here. What amendments get introduced and exactly how they find this would affect the budget long term. Kayla, thank you very much. Kayla tausche in washington. Lets move on to our Closing Bell Exchange today. Weve got greg sarian group, cnbc market analyst steve grasso and Rick Santelli at the cme group in chicago. Rick, i want to start with you. Of course coming ahead of this fed decision, we cant seem to meaningfully break above that 2. 6 level in terms of the ten year note. Whats the reason for that . Well, my guess is that theres two dynamics at work. We have a lot of outside issues going on just beside the fed meeting. We have dutch elections down the road a bit, french elections, and i do think that is something and other central banks, of course, but the meat of it is, wilford, i think you have this quarter point built in. That gets you that 2. 60 level. The real key will most likely be to some extent the press conference, more likely the q and a afterwards. Are there going to really be three for 2017 . And i think the more convinced traders become of that, even though it is showing up in the markets, i think that will be enough propellant to rocket us over this 2. 60 to 2. 63 area. You really picked the key part of the curve. The only maturity today whose yields higher than yesterday, twoyear notes, that makes sense, especially considering were all pretty much one and done with regard to tomorrow, we just dont know if theres two more floating out there even though if you look at january fed fund futures for 2018 you could make an argument it is. Steve, the market is slowly drifting lower. Is the drop in oil prices playing into that today . What are the other factors here contributing . I do think, kelly, that it is mostly the oil direction. I think that is really in charge of sentiment and directionality in the marketplace. The whole thing with the saudis, i think this is now all of a sudden theyre going to use where every time they go above those production levels theyre going to say that it was for in house basically storage. I think wilford touched on a key element. Saudi aramco. Everyone is ignoring that. And for me its such a contrived effort to Keep Oil Prices higher, and it looks like the market is timely getting a wiff that the path of least resistance is lower in oil. To ricks point, im not sure what we hear out of the fed is going to make this market go even higher. I think people are addicted to easy money. If they get a little bit more of it, maybe the market screams higher. Maybe we lose the financials, but its going to be an interesting week nonetheless. Greg, lets pick up on the financials particularly, the investment banks. Are you optimistic in what we can see in this quarter and this year . I think so much of that depends possible what we see with fiscal policy. Deregulation is front and center in all the Financial Press these days so we do think if we continue to see Interest Rates rise and get some deregulation from the financial sector, that should continue to bode well for banks and investment banks in particular. I think the key is are we going to see tax reform . So much of this market is run ahead of expectations of lower corporate, lower individual tax rates and if we begin to see a plan and more importantly implementation execution, we think that could be supportive for the market to grind higher. Greg, what are your favorite areas right now . Were very optimistic right now, kelly, on pharma and biotech. We like the demographics. Look at what repatriation would do to that sector. Theyre keeping billions of dollars of cash over seas. If you start to see that money come back state side, think of what it does for hiring and human capital. R d, we think thats a real spur for m a activity and a wakeup call to the executives running these companies to have pretransaction plans in place to reduce the income tax burden and keep more of what theyve built. Interesting stuff. Thank you all for joining us. Greg and steve grasso at post nine and of course our Rick Santelli. 45 minutes to go into the close. Keeping an eye on a down session. We mentioned the biotech stocks. The dow is down 37 points, s p down 8. 5. Declines for the russell. Small caps down. Transports down 122. Well talk about the factors there. Nasdaq down 20. Is following bill ackman a bad idea for investors. Shares of valeant getting crushed after he cashed out his entire stake losing 4 billion on the trade. Well look at some of ackmans other holdings and whether investors in those names should be concerned. Thousands of Flights Canceled today because of the storm and transport stocks are taking the hit. Weve got someone who says there are opportunities to buy on the dip. Hell tell you which companies coming up. Youre watching cnbc first in business worldwide. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com im ricardo, a sales and Service Consultant here at the xfinity store in bellevue, washington. Here at the store, we offer internet, tv, phone, customer service, home security. Every situation is a little different. It could be about billing, simple questions like changing the phone number. Sometimes, they want to upgrade, downgrade, but at the end of the day, you want to take care of the customer. One of the great things about comcast, theres always room to move up. Of course, it depends on you, how hard you work. Welcome back to the closing bell. Theyre down 41 points. A little bit more than that. S p and naas dk. Energy the worst performer. Also worth pointing out that the likes of walmart, nike and disney near the top of the dow. Lets take a look at some of todays individual market movers. Money gram popping. Receiving an unsolicited takeover offer of 15. 20 from u. S. Electronics payment processor. It exceeds a bid by jack maas. Dsw rising on the back of a Quarterly Earnings beat. Better than expected gross margins. That news overshadowing the disappointing sales. Hanging on to a gain of 1 today. Valeant pharmaceutical dropping after bill ackman cashed out his position. Hes been on cnbc several times over the years to defend his valeant stake. Theyve done a remarkable job. The least well understood story of valeant is the remarkable productivity of the r d pipeline in terms of whats coming. You have a history of shareholder friendly allocation of capital. The company can very comfortably sell billions of dollars of assets without affecting any core franchises of the company. The stock suffers a lot from uncertainty. Obviously theres been a big overhang. Sold out the entire performance. This is the worst period of performance in my history as an investor. We made a very big mistake in paying a passive position. We were betting on managements ability to create value by buying other assets. We can spend an hour or two about the mistakes we made there. Such a big loss. Worry about some of his other holdings. Leslie picker joins us. Where theres smoke theres fire. Valeant shares are plummeting. Investors in his other positions are getting skiddish too. Restaurant brands chipotle, mondelez, and the big short herbalife is trading well. Some investors are more focused on what hes buying. He disclosed in january that he took two positions that represent 13 of his 11 billion portfolio, but he has not said what they are yet. Regardless, this could be a big year for the investor that was once dubbed baby buffet. His net returns have been negative the last two years and lagged the s p 500 during three of the last four years. His performance struggles are not alone though. Its an issue thats plagued much of the active investing community over the last few years leading many to criticize the concentrated bets that Hedge Fund Managers like ackman tend to make after the 4 billion loss he could use a win to assuage investor concerns. Where does he stand today versus where he began the valeant stake . Hes seeing a decline in assets under management over the last few years with this being one of the prime measures of trades having gone wrong but that said, he still has a source of permanent capital with the publicly traded entity over in amsterd amsterdam. Its unclear yet what todays trading loss number will do for investors, whether theyll seek redemptions or not. Thats still up in the air at this point. Leslie, now that this has happened weve seen the price of valeant go below 11 roughly around the area where he was selling this block of shares. This price is on the market, on the other hand ackman and valeant investors, especially ones who got in the in the last couple of months, maybe thats a big chunk of bad news for the stock to get behind. Absolutely. I mean, if ackman, who has, as youve showed in the clips earlier, has defended this stock time and time again, if he says at 11 a share its time to get out, that makes other investors skitti skittish. He had two board seats on valeant. He had a window into what exactly has been going on with this company. Obviously it has yet to do any restructuring. I think those close to ackman and they have seen that as a win, the fact that the company has not had to file chapter 11, that it kept it afloat given all of the crises that its gone through over the last couple of years. At the same time if hes exiting now the question is why does he not see the up side in sticking around and at least posting a better than 4 billion loss on his position. Im sure more people got in at higher prices than at the bottom. Leslie, thank you. Appreciate it. Leslie picker following the latest in this saga. About 40 minutes to go. Still seeing red arrows across the board. Dows down 49 points. Brittain moves a step closer breaking away from the european union. Also ahead, well get an update on Flight Cancellations on the monster snowstorm. And ceo ben bodanza can tell us what this can do to profits on airports. Is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. 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