Skip to main content

tv   Countdown to the Closing Bell With Liz Claman  FOX Business  January 20, 2016 3:00pm-4:01pm EST

3:00 pm
session, we were down 560+ points, now down just 339. doug and jim, thank you so much. we're heading into the final 60 minutes of trading. liz claman is live for you in davos, switzerland. she's going to take it from here. liz? liz: i sure will, trish. what a day! another crushing day for the markets, the dow, s&p and nasdaq hit new 2016 lose. the dow jones industrial average down 349 points right at this second. what became particularly disturbing to investors is that at low point today, the dow took a hit to the tune of 565 points. the dow crumbled right from the start after asian and european markets sold off. we have to tell you the nikkei in japan is in a bear market. just since the new year, the dow lost nearly 2000 points at its low. the s&p and the nasdaq suffering as well, both down more than 3% at today's lows. oil again, the catalyst or culprit as you want to call it, falling below $27 a barrel for
3:01 pm
the first time in more than 12 years. crude settles right here on the screen, at $26.55, switching over to the march contract which might be slightly higher. we have it all covered with the brightest minds in the business right here from davos, switzerland. we're on the markets. we're on the economy. we're on your money. we have traders at the ready on the floor of the new york stock exchange, the cme and the nymex along with my fox business colleagues. joining me cantor fitzgerald chairman howard lutnick and russia getting crushed by the drop in oil and so is george logothetis, he's a shipping magnate. china's slowdown for his company is at armageddon levels. so what do we have now? the dow down 357 points at the moment. take a look at dow 30. the index cut declines, there is a lot of red on the screen.
3:02 pm
we can look as we see. the s&p down 35. it was down 56 at one point. you have all of these names. we have green on the screen at this very second. united health group, nike, pfizer, looking slightly better, but overall we're on our worst january track in history for the s&p 500, as well as the nasdaq which is currently in correction territory. take a look at the vix, the so-called volatility or fear index spiking above 32 for the first time since september 1st. when we see what's happening with the volatility index, it is -- let's call it slight hysteria here. we're at 28.69 for it. look at ten-year yield, levels not seen since october as investors seek the safety of government bonds. not a surprise people go into treasuries and say i want to be able to be insured and promise i get my money back. one of the only other investments glittering is gold. we have anglogold, ram gold,
3:03 pm
gold fields limited, gold corp. let's remember these names nearly half a year ago were getting crushed. today slightly higher or a lot higher. so now comes the question because we have 58 minutes before we see how this day ends up. is this a market that has way more to shake out, or is it trying to find a bottom and is today that day? right to the floor show. i want to start with sarge, what is the sentiment on the floor? >> the sentiment has gone the a lot better. take a look at the small caps, almost flat on the day. the health care sector is coming back, too. the 1838 level on the s&p 500 was a crucial level this morning. when it cracked, we went way lower, we regained and tested it twice since we regained it. if we can hold that level, we might have a plain old horrible day here and nothing
3:04 pm
catastrophic. [ laughter ] >> plain old horrible day. the problem with bear markets and rallies -- we're not at a bear market, i don't want to state. that elliott this is hardly a rally. you were calling for $30 oil when it was more like 42. why the deep dive today? we were watching it in switzerland. everybody is talking about it, omg below 28 and suddenly below $27 a barrel. why? >> nothing has changed. we've been watching crude, saying 30 bucks since it was 100. nothing has changed. there is tons of oil in storage. there's no end in sight. i hate to say, that anybody who's going to say, wow, 28 or $27, we all love a nice round number, but they're irrelevant, meaningless. what's going on is a huge glut of oil. less demand and they're still pumping. there was a fella on earlier today talking about how they're pumping oil to make interest payments. banks have lent money to the
3:05 pm
guys in america so they have a ton of outstanding debt and not going to get it back in oil. there is a glut, they don't know what to do with all of it? look at canada. liz: so interesting. exactly, the canadians and the russians are nervous, i spoke to the finance minister here from finland, he said this isn't nothing we didn't expect. we knew this would be a problem. our growth in finland is a mess, we were not surprised to. mark at the cme, everyone in davos in finance is perplexed or wait for the bottom to dive right in and start spending and buying up things that are discounted. what are traders saying in chicago? >> the shocking thing has been the vix, failed to hold 30. every time we've gotten the major sell-off. we're below the lows from august and failed to see a vix close above 30. we have not seen real market capitulation. now, i hear that the reason why we bounced midday, there's a rumor floating around that the pvoc and the potential of the
3:06 pm
evb going to do coordinated easing over the next couple of days. if that ends up not being true. we may be back to where we came. we failed to shake people out of tree. haven't seen capitulation, i think we make another serious test at 1800, in short order, if the rumor turns out to be false, which rumors are rumors, you know how traders are. liz: yeah, i think that's an excellent, excellent point, we haven't seen capitulation, for those who don't know what it means, let's get on. that let's bring in the man who more than a year ago saw this coming. he called the dollar trade right here in davos. he said you've got to buy and love the dollar. joining me is cantor fitzgerald chairman and ceo howard lutnick. japanese markets in a bear market, hong kong levels at the worst since 2007.
3:07 pm
when will we see a bottom, is there not capitulation just yet? that means where everybody is failing. >> we haven't seen capitulation at all. volumes are high because there was big volatility, but not seeing institutional selling, they're just staring at it and watching it go down. go over something fundamental. oil is cheap, and when was the last time the world falls apart because oil is cheap? would we rather the saudis not pump and opec back to the days where they jack up the price? let me get this straight, if oil was up 7% today, it would be a huge rally. this makes no sense. we're seeing a giant effective tax cut. oil being cheap means you fill up for 20 bucks, the world is going to get better. i'm not saying the stock market is going to be good in the fit ha, thseco yea thstocmark wilpickt backp. eap l isreator arica not od f chi, ruia o nigeria, but for america, happy days.
3:08 pm
liz: i get that, happy days until they open the 401(k) statements for january. you have to admit there is a knockon negative effect for something like that? >> tough six months. the first half of the year feels lousy. the fundamentals are employment in the united states is going to go under 5%. we're employees people, givi energy, airlines, how much shipping? shipping prices are down 50%. so you have the shipping companies complaining but the cost of shipping for every other business is cheaper. so i think fundamentals in the second half of the year are good, you're going to see the stock market rally. end this year not down 10%, probably unchanged year which means a good buying opportunity now. and companies like mine pgc partners, we love chaos. a day like today is good for bgc. we're happy. liz: folks i need you to settle on what howard said.
3:09 pm
we will not end lower, you expect flat. the fed, the fed forget it, not moving next week, obviously. >> no chance. liz: any chance in march? >> no chance. liz: any chance that it would, believe it or not there has been discussion whether it would take back the quarter percent hike. >> no chance. liz: no chance? >> only a quarter point! you know what you do with a quarter point interest rate? you have a million dollars, you buy coffee for friends. this is not an interest. moving back from a quarter to zero has no economic impact in america. it's a show piece, not interest. liz: it could be dangerous, i had an opportunity to speak to jacob frankel chairman of jpmorgan international, you know him, and skied him is there any chance that the fed might take back the quarter percent hike. hear what he said and we can react, here's jacob frankel. >> the only way forward, it would be a great mistake for them to think about lowering rates because there is nowhere
3:10 pm
to go. liz: nowhere to go. he said it would cause a real confidence crisis too? >> of course, they went 0 to a quarter because they wanted to show the u.s. economy is doing pretty well. the rest of the world, china -- we don't know about china statistics. it's difficult. liz: they could be worse, howard. >> correct, of course they could be worse. we import from china. we don't export to china. we buy their stuff, they don't buy ours, our life is not dependent how they do. the u.s. is reasonably comfortable. we're going to have cheap oil, cheap energy, cheap shipping. i think the second half -- the first half of the year, not tomorrow or the next day yucky, but the fact is when we're done and dusted, it's going to be really good. liz: we still have our traders, sarge, what do you think what he said we may end flat for the year and now is the time to buy stuff?
3:11 pm
are you seeing flowing into certain sectors right now? >> seen a few guys try to nibble on the energy sector, it was down 6% earlier today. i've seen that a few times and each time it has failed. as i've been standing here, the s&p 500 has rallied ten points already. we're about to challenge a technical level, 1857. if we get above that -- liz: could we see intra-day? >> this day is changing right now. >> we're moving the market! we're moving it! >> it's all howard lutnick, right, mark? mark is at the cme. are you seeing the moves here? what about the futures and what do you expect for how we anticipate the market may move tomorrow? >> it's going to depend whether the rumors turn out to be true because that's really i think been the big driver of buying here, and, you know, i'll be interested to see whether that happened. obviously, the fed is not going to do anything. i think the fed should come out and say we're not doing
3:12 pm
anything until the other world powers, china, europe, lay off the monetary easing gas pedal. so if the fed comes out and says we're not raising rates until the ecb and china stop killing their currency, i think that could be a precipice for a rally. the one thing for all traders, every time we've seen this trading pattern, you know, the v-bottom and the v-correction we're all used to see wearing we bounce right back, i don't think we're going to get. that i think you have a real opportunity to buy on the way up as opposed to chasing a rally. this is a little different this time. liz: which is what howard said, and howard, i need to ask you, you still dollar bullish here? >> you have to love the dollar, you have to love the dollar. everybody is going to cut interest rates and we're going to hold ready. that means the spread is going to be there, the dollar is going to go par against the euro. you're going to touch 90 and eventually see all-time highs for the dollar. it's come to come our way.
3:13 pm
our economy is better than this is showing today. and it's just going to take some time. it's just going to take -- we're a 2% country. >> howard is saying our economy is better at 2% gdp, that's pathetic. the market is up on potential rumor that the fed is not going to raise rates from a quarter point. that's pathetic. here's what the market has to get their hands around. grown at 2% average for the last seven years, right? one of the reasons we grew at 2% is because there was a boom in the oil patch, is because we had fracking, we have all the stuff involving oil and gas and oil companies. that is over now. those folks are being laid off in droves right now. that's going to hurt the u.s. economy and it's going to hurt the stock market. it has to hurt the stock market. when you have that combined with china slowing, i don't see why anybody would be buying stocks. liz: aren't we bigger than oil industry, howard, for our economy?
3:14 pm
>> i think cheap oil is spectacular for america. >> how come it's not now? >> because it makes no sense. >> why aren't people spending? what you're saying is counter to all the facts out there. the facts are not -- are there that people, based after a massive tax cut, they're hoarding their wealth, you know why? you know why? because the wages haven't gone up. liz: we just got breaking news, the russell turned positive, so somebody's coming in and pick up names here. >> the fact is from my perspective, we are a fundamentally growing slow growth economy like we were before. >> before when? >> what's that? >> before when? >> we have not shrunk. oil going down is not going to have our economy not grow at 2%. >> are you sure? are you sure? >> on this tv show --
3:15 pm
>> one of the biggest overproducers of jobs in this country is now in a depression. you're saying that's had no impact on our gdp? >> it's going to improve the united states of america. cheap shipping, cheap oil, we'll be here. >> keep your fingers crossed. >> but we love the volatility. liz: cantor fitzgerald, is cantor going public and when? i always ask you that. >> bg is going public -- liz: i said cantor. >> maybe another day. >> why would you want to be a systemically important financial institution? >> i just want to be important, not systemically important. >> not under the radar screen. >> howard, a gutsy voice, you ran in here. thank you so much. you got stuff to do and people to meet in davos, switzerland at the world economic forum, world lutnick. the closing bell is 45 minutes away. hang on, this is interesting, while gold is up $12. we have the russell trying to
3:16 pm
straddle the flatline. the laggards on the s&p 500. neighbors industry, and look at devon energy, hess and murphy oil, same with diamond offshore drilling. crude is driving the global sell-off. as an a-list actor makes waves in the oil patch, what leonardo dicaprio has to say about big oil and coal and gas that's the talk of this town. eric bolling joins us next, that much and, much more from the world economic forum. we're live in davos, switzerland. "countdown to the closing bell" is coming right back. don't go away, we're watching every tick of this market for you.
3:17 pm
we were born 100 years ago into a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust,
3:18 pm
for the privilege of flying higher and higher, together. ♪ iall across the state belthe economy is growing,day. with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in the hudson valley, with world class biotech. and on long island, where great universities are creating
3:19 pm
next generation technologies. let us help grow your company's tomorrow, today at he ran for senate saying he opposed amnesty... then he flipped, and worked with liberal chuck schumer to co-author the path to citizenship bill. he threatened to vote against it. and then voted for it. he supported his own dream act and then he abandoned it. marco rubio. just another washington politician you can't trust. jeb bush. he's a leader, so you always know where he stands. right to rise usa is responsible for the content of this message.
3:20 pm
3:21 pm
. liz: closing bell ringing in 40 minutes. talk about a comeback. look at the nasdaq, we have it in the green right now. this is significant, folks, to see it up 25 is not the most significant thing. the fact it was down 163 points. okay, so you're talking about a 180-point swing here and a clawback into the green, same with the russell 2000, at its low, the russell down 36 points. you see it up 10. let's go to lori rothman on the floor of the new york stock exchange. what are the traders saying about why we're making the comeback? >> what a difference a trading day makes. sentiment is reversed. a couple of things are at play. oil settled at 2:30 eastern time, down about 4% on the day, that's kind of out of the picture for now, giving folks relief. we saw the dow off 566 points with the vix spiking above 3132, levels today, i think a lot of traders stepped back and said enough is enough, we've
3:22 pm
tested the scary august 25th lows, there is something in dow theory that says when the dow jones industrial average falls in tandem with the leading indicator of the transports, happened last summer, that is a significant signal to buy. that level on the dow was 15666. we came close but zoomed off of that level. technical levels at play, sarge has been on the air talking about the s&p levels, and saw the nasdaq turn positive, the russell, smaller cap stocks, less exposure to china. there is optimism that the smaller cap stocks that aren't as vulnerable to the bigger geopolitical issues and macroeconomic concerns out there. liz: i don't know, this is quite a comeback. in fact, we have the transports that are now back in the green. lori, thank you.
3:23 pm
we have to wonder what's going on. enough is enough says actor and activist leonardo dicaprio. this is what's making a lot of chatter here. the academy award nominee launched a ferocious attack on the greed of the world's energy industry here as he's accepting the crystal award in davos, switzerland. listen to what he said after receiving that award for improving the state of the world. >> we simply cannot afford to allow the corporate greed of the coal, oil and gas industries to determine the future of humanity. those entities with the financial interest in preserving this destructive system have denied and covered up the evidence of our changing climate. enough is enough. you know better, the world knows better. history will place the blame of this devastation squarely at their feet. liz: but is the solution to climate change to keep fossil
3:24 pm
fuels in the ground? joining us eric bolling, oil expert himself, former commodities trader and co-host of "the five," board member at nymex. first of all, thoughts on what leo dicaprio said, his motive on talking about greed is misguided certainly, but perhaps, if we weren't so attached to the price of oil, we wouldn't be seeing our 401(k)s implode right now. what do you think? >> i think leonardo dicaprio is a fantastic actor. on wall street, "the revenant," he's great. he's not a good trader and politician either. they blame the greedy oil companies for the price of gas being $4. probably on the way to $1.50 and he's saying the corporate greedy sob's, they have to cut jobs, they have to cut back on benefits. misplaced. so basically what he's saying
3:25 pm
is at no time in the world is an energy, a fossil fuel a good idea for energy. unfortunately what it is, it was fossil fuel that brought the price of oil down, it was fracking, it's not wind, it's not solar, it's not hydro. he's offbase on that. liz: eric, i had a chance to speak with an oligarch from russia, the largest aluminum player in the world, i said to him, what did you make of the paris climate change conferences? i need you to hear what he said about that and why he feels the only way to help climate change is not doing what leo dicaprio said but simply putting a price on it but doing a carbon tax. here he is. >> we need to stop. if people not pay, they tend to pollute. and it's not fair. liz: if you had to grade the outcome of the paris climate
3:26 pm
talks, a, b, c? >> there's not much outcome. countries, there is no mechanism of control, it's not binding. in essence, there is no incentive. liz: he didn't think the paris climate talks did much at all, eric. he said not much change. >> he wanted it to go further. he's looking for carbon tax, which i think is a horrible idea. far worse than having a meeting in paris saying everyone should meet the certain carbon standards going forward. there was a suggested level of carbon emissions that were the same across the globe. think about what he's suggesting. he's suggesting producers of carbon pay for the tax. they pay a tax or buy carbon credits to pay for what they're polluting. there are countries that won't participate. remember pollution is fungible.
3:27 pm
it is a terrible idea. >> bolling, it's gasparino. aren't you giving dicaprio a little too much credit. that was a patently stupid statement he made about greedy oil companies and given where the price of oil is right now? >> i think that's what i said, he's a great actor, he should stay out of politics. >> he doesn't really know. that was really dumb. it showed no knowledge of basic economics. >> we're not going to get into a fight when we agree with something. this isn't about boeing -- bolling looking better and smarter than gasparino. >> before we hang up, how are your holdings of twitter going? >> i have no holdings of twitter. >> you sold! >> of course i sold!
3:28 pm
>> the only thing i like right now are apple stock, and i think you can buy apple on a substantial dip. and charlie, give me a little credit here, for $100 a barrel i said we're going to 25. liz: eric, isn't it true that it is time at this moment when you start to see stocks this cheap that, yes, you may take a further leg down but there are opportunities here? >> yeah, i'm nervous about the downside, liz. people are saying exactly what you are saying today. i looked at a 10-year dow chart and 10-year s&p chart. the chart on the two assets looks awful. terrible. we've taken out lows that could retrace further. we have a 400 point snapback off the lows today. you may see it thursday and friday and in the oil market as well. but for the longer term, the dow doesn't look good and the oil doesn't look good at all. liz: what a comeback for the
3:29 pm
s&p. eric bolling, thank you, both you and charlie for my record are decent looking. nice looking gentlemen. stocks plummeted right out of the gate. right out of the gate today, as we see the dow coming back just about 127 points. live in davos, switzerland with the closing bell 31 minutes away. much more ahead on the market sell-off from here at the world economic forum, where, yes, i would say in switzerland, the nerves are frayed. we'll continue the discussion tomorrow with former british prime minister tony blair, ukrainian president petro poroshenko who is furious at the russians and nasdaq chief operating officer adena friedman and stephen pagliuca. stay tuned. we've got see how this one ends!
3:30 pm
♪ there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $399 a month at your local mercedes-benz dealer.
3:32 pm
3:33 pm
3:34 pm
. liz: coming up on 26 minutes before the closing bell rings, and we're checking these markets. we're going commercial free from now until the top of the hour. down 143 points, the dow was down more than 565 points. to the new york stock exchange floor, bringing in doreen who has decades of experience. i need ask you, i need a pointed reason as to why we now see green on the screen in the bulls are thrilled but what are you seeing that would force this big swing to the upside? >> you know, liz, managers are under weight at equities, when we saw markets fly through the august lose. a lot of talk about capitulation, everyone is talking about volumes are way high, almost double than they were at that point in time.
3:35 pm
liz: doesn't capitulation doreen look a lot more painful than now. we had howard lutnick and a trader from the cme saying we're not there just yet. capitulation looks like people are going bankrupt in meaningful numbers, you really think that's it right now? >> i think the traders are divided on the fact. i think the reason there is so much money on the sidelines, managers want to put some of that to work. this has created value in very good stocks, people have the point of view. liz: you have the experience, a stunning move, i'm sure you would agree, from the new york stock exchange. thank you very much. >> thank you. liz: let us bring in a voice of a big industrialist here, george logothetis, chairman and ceo of libra group. you are in shipping, aerospace, hospitality. i need to ask you what is the shipping business like right
3:36 pm
now? we're hearing bulk shipping is getting crushed. >> it is good to be here. bulk is getting crushed. i would almost call it armageddon level event in bulk. you have to look at the history books to get something to compare what's going on today. you have the perfect storm. a huge amount of new ships from the yards in bulk shipping, have you 900 ships delivering from chinese, japanese, korean yards this year, and a slowdown in china. the two have caused a terrible situation. liz: how much more difficult does it get? >> daily rates for cape size vessels. >> what goes on those? >> ironere, steel. the bulk market is at 363 today. liz: that's the first time it's been tli think since they kept record. >> started in '86.
3:37 pm
and in '86 that was a terrible shipping market. liz: do you blame china? >> i think it's supply and the slowdown and the fear that is pervasive given what's happening in the markets. >> connect the dots here, we had howard give a rosy scenario about falling oil prices and the u.s. economy is going to go great and don't worry about china. if you look globally, you have oil production, bulk shipping, commodities are getting crushed. this has got to point to a broader recession globally that has to hit the u.s.? >> i think that the u.s. is strong, and i see it in our businesses, energy businesses and hospitality businesses, in the u.s., advanced bookings in u.s. hotels are ahead of last year. that is insight into consumer sentiment. >> what type of consumer? >> multi. the multifamily units, 2and a half thousand multifamily units, lease rates are still up. i think the u.s. is strong.
3:38 pm
obviously in china it's a different situation, we meade to put china in context. >> you're looking past. we're saying look forward. this hasn't factored in the economy just yet. >> china growing at 7%. 7% of 10 trillion is 700 billion dollars a year. it is more than 10% of 5 trillion. >> that's if you think it's 7%. that's lie about the numbers over there. [ laughter ] >> george, doesn't part of your shipping business start to fail? or can you hold on? you grew your fleet from 3 to 80 ships? >> yes, that's one of our 30 businesses, we operate in 35 countries and shipping is one of our businesses. fortunately we have low exposure to the bulk market. we've been buying container ships. they are true mirror into the economy. it is a little in the doldrums. there was a little slowdown in
3:39 pm
august, september of last year. volume of boxes was supposed to be 4% up, it ended 4% down. that's a big shift. having said that, in the last week there are murmurings of additional inquiries, there's a little slight sentiment change. the tanker market is flying. liz: when you look at these markets, our stock market made a pretty big comeback today, we are down about 9% for most of the indices. what does that say about the stock market? you live in new york but you're an international businessman? >> it affects the psychology of upheaval more than we like. information is so transparent. we're addicted to iphones, we read it. fear multiplies in realtime. i look at things without being overobsessed by the hourly or the daily movements. >> i think that's good advice for our viewers who should not open the envelopes of 401(k)s
3:40 pm
for a couple of months. george logothetis, thank you very much. >> thank you. liz: calling it armageddon scenario. let's bring in mark madison, he's got five billion in assets. ross gerber of gerber kawasaki. what do you think of the price action continuing to really surprise people with 20 minutes left before the closing bell rings? >> demonstrates the futility of trying to predict the market in the short run. the problem with predicting the future is nobody can do it. so you have to be focused on the next 100%, and historically, the next 100% in the market is always up. so i work with mainstream investors, you should buy when prices are low, we know they're low relative to where they've been. sell your fixed income. rebalance portfolio.
3:41 pm
settle on your hands and stay focused on the next five years, not five minutes. it's very hard to do, but it's critical. liz: i always like to talk to ross gerber because he's far from new york, he tends to have a situation where he looks at things differently. how do you feel about what you're seeing and are you picking up winners that look a lot cheaper, ross? >> we like the same companies we liked 6 months ago and we are picking them up cheaper. this is a huge positive. i really like the interview with howard today. i think he's dead right. where charlie gets it wrong is the immediate pain of oil is felt on the short term but the gain from it is felt over time. every day americans and consumers across the world get 6 billion dollars of new capital that we use -- but let me just finish, charlie. >> based on what?
3:42 pm
>> because oil prices are down 75%, that money is saved by americans and europeans, okay? and that comes in every day. >> why aren't they -- >> let me finish, charlie. 6 billion dollars today, and over 100 days that's 600 billion dollars in savings that go to the consumer. so keep that in mind when you think about economics. >> here's where i think people like you make a huge mistake. you are misleading investors. in the past, yes, immediately we saw economic benefits. we saw the results of a tax cut with lower oil. why aren't we immediately seeing that now? >> because it isn't immediate. is the economy immediate? >> it was in the 1980s. >> no, no. everybody in america got their annual gas statement. >> when was it immediate? >> it never was.
3:43 pm
liz: let him answer, hold on it's not immediate, the consumer saves every day. we don't buy all our gas for the year today. >> it was immediate in the past. liz: well, you also have to -- >> you got to get out of the 20th century. i don't want to argue about the 20th century. it's over. and the oil commodities world is over now, it is all about technology and information and the future, and the oil people just got to get out of the paradigm right now. liz: okay, i know mark wants to get in here. all three of you, hold on one second. i know mark wants to get in here, we had andrey kostin of evb bank, the head of russia's second largest bank, you've been listening to the conversation, russia, the average russian and the wealthy russian are stumbling because oil, this is an oil based economy that you have here is dropping precipitously. what is it like from your world right now? >> of course, starting from the
3:44 pm
1st of january, we see a lot of bad news, including the drastic further fall of oil prices, and i think everybody is now trying to reassess the situation. the government is trying to cut down the expenses and make the necessary amendment to the budget. the corporations are reviewing the investment policy and people are considering how much they can spend this jeer does it surprise you that as you talk about the government trying to cut back, they've got to spend a lot on a campaign in syria. what does the average russian think about russia getting so involved with a nation that's far away like that? >> at the moment it seems that russia was spending within a certain budget on syria, and i don't think many russians connect with the situation. it's a different question, of
3:45 pm
course, russia is considered to be a power which she is playing some role in the world, and the syrians are an important subject for russia. liz: how, how -- >> you can't continue this for very long, because airstrikes are a problem. that's why we are very much in a political situation in syria. >> you are lending? i would imagine it's hard for a banker right now? >> we lend but we're becoming more selective because we are trying to reduce the risk and select the companies for loans. liz: before i let you go, we're talking about a quarter percent interest rate right now in the united states. russia's rates are at 11%. the ruble hit a record low today. at what point does the russian central bank have to cut rates? >> i think they will for the time being because of the concern about inflation
3:46 pm
increase, but we expect that later this year, they'll continue reducing the interest rate. liz: andrey kostin, thank you very much for joining us. >> thank you, liz. liz: we always love to hear from him, he gives honest assessment of russia. stocks plummeting today. the dow is down about 217 points. at one point, it was down more than 560 points. we need to tell you if you look at aggregate heefrm the t.o.w. lost about 2,000 points in 2016, at least at the low today. we are still in the worst start to a new year, and that's a record. gerri willis crunching the numbers and standing by with a breakdown on how badly this market is hemorrhaging. x the comeback we've seen today? >> this is quite a turnaround. about 360 points, incredible to watch when. i started out today. all 30 dow stocks were in the red. now we have 8 dow stocks that are positive, including united technologies, caterpillar,
3:47 pm
apple, pfizer, microsoft, american express, nike, united health group incorporated. take a look at names, all positive. good news for us. there are stocks still selling off. ibm in the crosshairs here, down 4.77%, responsible for a 40 points loss on the dow, and as you know, i don't have to tell you, liz, this company reported 15th consecutive year to year drop in revenues just the other night. cisco down, exxon down. home depot down. the nasdaq could be on pace, if it closes positive and looks like it will do that now, for the first, the biggest turnaround since november of 2008. the biggest turnaround for the nasdaq since 2008. this could happen, it looks like it's on track right now. the transports, dow transports turned around. the russell 2000 turned around. all good news here, all of this
3:48 pm
happening because of oil. oil and stocks been hitched at the hip for sometime now. that's what we've been seeing, oil falling and stocks falling as well. it was nice to see the turnaround, that doesn't mean we haven't lost a lot of ground already this year, we're wondering maybe this is capitulation. liz, back to you. liz: gerri, all i can say is you look great. i was so busy looking at you, i didn't see the dow is starting to fall a little bit more. we've got to see what happens in the last few minutes of trade. charlie gasparino, we can't hold the gain. >> in the past ten minutes, interesting to watch markets move. it lot of 100 points in a blink. liz: in a blink. we need to say the s&p turned negative and down about 23. the nasdaq turned back, if we looked at intra-days. it was just about 18 minutes ago that the nasdaq was, of course, slightly higher.
3:49 pm
want to bring in jeff reeves and gus, gerri said stocks and economists, what are you telling clients right now? >> telling clients that fundamentals continue to look solid. we're adding 220,000 jobs per month. auto sales at a record in 2015, i agree with earlier guests that decline in energy prices is a positive for consumers. i think we'll see solid economic growth in 2016 and stocks will come back. liz: jeff, we've got individual investors watching at this very moment. you've got to speak to them and talk about whether this is a time to panic? i ran into an economist at the haas business school of berkeley, you know how we talk about irrational exuberance?
3:50 pm
tonight we're talking about irrational hysteria. >> the worst thing you can do is buy high and sell low. i don't know why anybody would panic and punch out right now. this isn't the end of the world. we saw 17% drop in 2011. it was going to be a grexit. europe was going to fall apart and we muddled on through with our lives. i'm not going to pretend the next 60 days aren't going to be hairy. there's a lot of question marks, but i don't necessarily think a double-digit decline is the same as a great depression. oil is a big deal but overblown. 6% of the s&p 500 at large. those energy stocks are not the big punch that's behind the index that's out there and not that big of a driver of jobs, jobs are coming from the services industry or health care or the government.
3:51 pm
while i sympathize and have empathy for the people who lost their jobs or the coal miners in west virginia, in this is not a jobs growth, it's a concern, not the end of the world. liz: speaking of energy, oil brought the markets to a wild finish and a wild ride today. the oil markets close at $26.55. we switched over to the march contract. higher than that right now at 28.74. let's get to jeff flock on the floor of the cme. jeff? >> reporter: that's why they made too much of oil. the contract was expiring today. as you get close to delivery, that can drive the price down, that's what happened today. we had only about 12 or 13,000 contracts traded in the february contract compared to over 500,000 in the march contract which as you point out now is trading much higher. so you know, i think we got a
3:52 pm
little too scared and focused on the price of oil. but it is certainly fair to say, as gerri said and other guests have said, oil and the s&p hitched at the hip, joined together, whatever you want to call it. charlie brady did a great graph of the two numbers and how they're moving. the highest correlation between the two factors, the two markets, in the past month alone, 97% of the time, oil and the s&p have moved in tandem, but if what we're saying here now is correct, maybe, they come apart a little bit. but i guess we'll see, liz. liz: jeff, thank you very much. 8 minutes before the closing bell rings. as we wait for that, we need to be going to the new york stock exchange once again, and lori down 207 points. it's been rather volatile in the last 8 minutes?
3:53 pm
>> yeah, hits the nail on the head. the volatile is the word of the day, the theme. take a look at fed funds futures, curious what they think about the pace of interest rate hike. we knew the fed was expected as we saw the first rate hike in december to continue raising rates through the year. fed funds futures are pricing in one hike, predicting one interest rate hike this year as opposed to three or four which is the talk about a month or so ago. perhaps that has something to do with the oil contract rolling. i think that kind of gave investors some peace of mind, if you will. look at numbers and break it down. the dow off 233 points. 222, excuse me. looking at a loss of over one and one third percent. the russell is the only one of the indices we follow holding onto gains right now. liz: well, listen, it's a tough day if even netflix with great numbers out couldn't manage to see positive gains.
3:54 pm
i don't know what it's doing right now. earlier down about 6%. i want to bring in voices, mark matson and ross gerber. mark you wanted to get in earlier on the conversation, seven minutes before the closing bell rings, it is a comeback of sorts, not by much. the s&p can't hold onto the gains here. if you're looking at lows, you missed the low today if you wanted to scoop up bargains. >> you mentioned panic earlier. i want investors to know it is never the right time to panic. i don't get paid to panic, i get paid to do the exact opposite what other people do. when markets are down, people panic and sell into losses. you look at 2008 and 2009, the massive sell-off. investors got up, the market went up two, three, four times what it was, lot of investors never got back in. my message is calm down, look at the next 10 and 20 years, not the next 10 minutes, you could shoot yourself in the foot and never recover from it.
3:55 pm
liz: okay, but gus, people are looking at the world and wondering are we tipping into a global recession? i asked that question of many people at the world economic forum. they all said no, but can't give a sense of why. jpmorgan chase international jacob frenkel said the u.s. is -- >> i think that we are seeing slower growth in china. no question about that. but many other countries look good, europe is getting better. it's still slow. the canadian outlook is positive on the outlook today. that's enough to power through the uncertainty that we're seeing right now and should have solid spectacular growth throughout 2016. liz: okay, and jeff reeves? when you look at that, you say where are the opportunities? what looks good to you? what looks cheap right now?
3:56 pm
>> funny, i was looking before the show, i'm a crazily going to make a call on jpmorgan. i think it's trading for less than tangible book value. there has been challenges for the financial industry. branchless banking and all that stuff. lots of layoffs but the second straight record annual profit on jpmorgan. i don't think it's a bad play right now. and you got to remember too, with the junk, it's not on jpmorgan's books, they may run the bonds. call me crazy, but if you're asking for a bold call, i don't think it's bad to bargain hunt in jpmorgan today. liz: charlie? >> i think i'm going to sell based on what he said. liz: why? >> i agree, i don't want it. >> here's why, i listen to jamie dimon when they did their conference call last week on earnings, and he wasn't as upbeat as the gentleman was there. i want to make two point. if you want know why the oil contracts trading in tandem
3:57 pm
with the dow, a lot is sovereign wealth selling, the middle eastern sovereign wealth funds, selling stocks because they're getting hammered on oil. no economist on the show could give a rational, clear explanation of why, for the first time in history, in history, the oil price decline hasn't led to increased consumer spending nearly immediately. we had lower oil prices for most of the year, consumers aren't spending, because we have structural problems with the economy, and i don't think, unless they can tell me one time where it didn't happen, when was the last time that didn't go right to the economy, to the bottom line of the economy? it has every time. it hasn't this time, you know why? high taxes, low wages, crummy jobs produced. people are scared and i don't think it's going to help the economy. liz: ross, go ahead, ross. >> you know, charlie, you got to come out to l.a., man, the economy is booming here. people are spending moneyment i
3:58 pm
mean, i live in a -- >> all the movie executives. >> what about in new york? it's packed. let's be real, okay? >> go to texas. go to texas, upstate new york, people are hurting in this country. >> i'm not going to the oil areas where they've had a wonderful boom. i'm talking about -- >> and now we're getting a bust. >> they'll be fine in houston, i'm sure. >> chicago is doing great. detroit is doing great. >> the main thing to focus on is who benefits from this? and one of the best beneficiary is the consumer, whether it's paying off debt or buying new things. >> when? >> they're doing it as we speak. >> that's a different question. liz: hold on. >> dividend producing stock is a stoc i think you want to be owner of equities very conservatively right now. and dollar-cost-average into your positions over next couple months. i think you can do very, very well. 12 to 18 months.
3:59 pm
liz: on that note, on that note we have less tan one minute, 25 seconds before the closing bell rings. it does not look like the bulls can get control of this market, folks. i want to thank all of our guests but we're still down 218 points. s&p is down 19. as we stand here live from "countdown to the closing bell," from davos, switzerland, i'm her to tell you happened warmers are not workings david and melissa. that is the best i can give you. david: we could have told you that. melissa: i don't think those things work at all. david: a lot of hype on those things. hold on to your hats, everybody. market whiplash into the close. dow was down at one point, 565? right now down about 2 thirty six. this afternoon has been crazy, huge moves. what should you do with your money? we have you covered with expert analysis throughout the year. melissa: senator john mccain, says people will hold president obama responsible when the market falls like did it earlier
4:00 pm
today. former presidential candidate herm main cain weighs in. david: he is great businessman. three americans in iraq were kidnapped by an militia. was this ordered by tehran? [closing bell rings. melissa: selling off in the close. we're down just about 246 points as the bells ring. david: a lot of people retreating into gold, melissa. s as kind of an investment of last resort. melissa: what a wild ride for markets. five of the dow 30 stocks are in the green. all 30 are negative for the year. lori rothman down on floor of the new york stock exchange. lori, talk me through what


info Stream Only

Uploaded by TV Archive on