tv Fast Money Halftime Report CNBC February 5, 2016 12:00pm-1:01pm EST
afternoon. dow looked like it might have had a chance for going positive for the week this morning when it was down 50 points for the week. that's tougher now with it down 169. have a good weekend. let's get back to headquarters. thanks so much. let's meet the standing lineup. jim and stephanie, josh, sirat and on set with us is mary ann, the head of portfolio management. marching toward a rate hike. does that put the fed in play next month? countdown to super bowl 50, we size up the game with dan patrick and joe theismann. the president making a statement on the economy and today's jobs report. we go live to the white house for that coming up.
first we get to the stunning losses suffered by stocks that were once star performers, mostly tech names left for dead by investors, crushing the nasdaq this hour. all of it raising the question of what the death of momentum means for investors. josh brown, we say stunning. take a look at the wall. linksin down, netflex, splunk, workday, amazon -- >> scott, scott, i haven't taken my pill yet. let's slow down. it's just becoming more visible. but this has been happening for the better part of 18 months. now it's hitting the cool kids. i hate to say it, but they have more -- a lot lower they can go. starbucks, one of the most popular is below its average today for the first time since october 2014. facebook is into the post-earnings gap down 12% off the high.
this is just beginning for some of the names. it has been taking place for most of the market. quite frankly, most of the world for quite some time. i wouldn't be falling out of your chair at this point. >> you bought linkedin today, you must see some value in the destruction. >> yeah, it's not every day you have a $20 billion company lose 50% of its market value overnight. linkedin is the name i have never owned. i have about stalking for a long time. i think it's probably overdone. maybe it going lower. i'm starting a position there. this is a company that came out, beat earnings and told analysts, we're not going to throw money at the wall this year. we're going to refocus on six or seven key initiatives with real roi and so maybe earnings won't be the world's fair, but we're doing the right thing for our business long-term. in the light of day, that will look like a reasonable announcement versus what some other companies are doing. quite frankly, you have gotten quite the adjustment in the name very quickly. >> a year ago, it was 95. it's 57 today.
gopro, it's nine bucks. is momentum dead for good? >> momentum is having exactly what josh just said. if you look at the cyclical, the industrials, the financials, they are multiples compressed by 20, 30, 40%. you are seeing the momentum stocks. catching a falling knife in some of the stocks is hard to do. you can start nibbling at some of these, but don't expect a quick bounce unless things really change. i would start with some of the names now. we have some more -- >> they are still expensive. the average pe in the internet software is still 52. none of them -- the value guys aren't coming in for them yet. momentum guys done want them. you have this pocket. we have seen it before. >> workday, sales force. >> yeah, i think tableau is company specific but giving the people to sell off others.
but i think what's going on here is you have this rotation from growth in general and into value. the guys just said basically, last year is when the transport hit, the industrials got hit, energy just totally collapsed. even this year the first part of the year, financials got hammered. some are down 20, 25, 30%. i respect where the market is -- where the market is going. i think on top of the fundamental questions of some of the expensive growth stocks is the underlying rotation. i think this year does set up for value versus growth. >> is this the most definitive sign we have seen, jim, that growth is done and now it's all about value? >> i have to say yes. i will torture the analogy by saying value stocks last year were the nerdy kids that ate vegetables and participating in chess club. now they have having their day in the sun. >> i feel like you relate to that. >> i still like it. i think it was good. let me run with it longer. you started it. i will keep it going. this is why value investors like
cash on the balance sheets of the companies they own. it gives them a margin of protection that you are not seeing in the air pockets that you were talking about between momentum and value. so you see the netflix is down 40%. there's really nothing -- there's no safety net. there's no margin of safety there to catch them like there is in a sysco with $35 billion of cash on the balance sheet. >> i think steph and jim, last comment, i think they are dead right. you are seeing it. when you look at the russell 2000 growth, that's now down 15 and change percent on the year. if you look at russell value, down only nine. i know that's not a great consolation prize, but it's starting to play out the way they are talking about. >> where you saw value in linkedin down -- >> not a value stock. >> but you saw some value in it. it's down 40%. it's the worst day it has had from a percentage standpoint. are there other stocks of the list i mentioned and maybe others i didn't that each of you
see opportunity in like josh? >> the high growth area for sure. i think salesforce.com, that company is an industry leader. great management team. they do generate significant cash and the management has been focusing on margin expansion. when the dust settles -- i don't think you want to jump in today. >> you are not a buyer down 11%? >> when you see moves like this, it takes a while to settle out. that's on my shopping list. adobe, google, by the way, is on my shopping list. that is the cheapest. there is a great story there. they put up great numbers. a lot going on. you make your shopping list. don't run in though. >> outside of that, there's broken stocks. you have to nibble even at amazon, disney. they have some problems. amazon did have a rough quarter. >> amazon? i'm surprised. >> it's down from 650 to 500. you have to start paying attention. >> down again today. >> you have to pay attention.
>> almost everything on the nasdaq -- the nasdaq was almost down 3% at the lows of the day. it's come a little off that. i think it's maybe still down 2.5%. you were welcome looking at a 3% decline in the nasdaq. >> pick your spots. if you talk about amazon, it's getting sucked down to 500. i would look below 500 to build a position. >> biotechs, they are in this as well. some are good companies that longer term you can buy and you can start nibbling on as well. >> mary ann, you still think we're in the early stages of a secular bull market? >> yes. we're still in the early stages. but that doesn't mean that we don't have more down side. i like cool kids. we normally say that the troops are kind of down and now they are going after the generals. this is very typical of a bear market. you can be in a bear market? you can. transports are off 20%. small cap off 20%. >> i don't know about can. are. >> they are.
the stocks don't act like that in a bull market. >> absolutely not. >> secular bear possibly. >> exactly. >> i'm with you. >> the s&p and the dow can have down side. we believe the market on the s&p can get to 3500 over the next ten years. when we talked to our clients and try to build out their portfolio so they can achieve their goals into retirement, there's an asset allocation problem. cash is not going to grow assets. we don't want to rely on the fixed income market to grow assets. they diversify absolutely. but how do you grow assets? you have two choices. equity and you have real estate. >> we're looking at the s&p and 1885. even though you are longer term view is extraordinarily bullish, you think with can go to 1600 on the s&p? >> that's correct. the levels to watch out for that everybody from a technical level is 1820. we went down there. we held but we didn't get the
capitulation. >> you are a technician at heart? >> i am. i believe -- >> one of the best ones, i might add. >> thank you. fundamentally, ease under pressure. this earning season hasn't been great. we have earnings growth around 3%. top line growth is not growing. margins aren't expanding. there's concerns about a recession. fed raising rates. of course e is funder pressure. >> what happens if the fed does go in march? what happens? >> markets go down. >> we're a little more concerned about the deleveraging in energy. you are unwinding this whole big commodities secular bull market with china. so that has to go through a deleveraging process. where we see that is in the high grade corporate market. we have seen spreads there widen out. we do believe that there's risk of contagion. >> where do you want to be in the market? do you want to go after the beaten down industrials and
energy stocks? doesn't sound like it. do you want to bottom fish? >> you don't want to be trying to catch a knife that's falling. the pockets of the market that -- >> i'm sorry to interrupt. how do you know what's a falling knife and what's not? that's the problem in the market right now. >> relative strength. >> you say linkedin -- >> divergence. you can actually do t. itit. it's not easy. >> if you look at sectors that got beaten up last year that are acting well in this downturn like we were talking about, the industrials, they have acted quite well this week. i'm kind of curious, do they have legs to the up side or is this a head fake rally and short covering? >> i think you might be in a head fake. i'm concerned about that. where we want to put investors' money is in very high quality large cap companies that have great balance sheets, good cash flow, no leverage. you are still seeing the
leverage component in the energy sector. it's too early to go in there and the material sector. longer term, we're in the digital era. we want to be in technology. you do want to be in healthcare. you got baby boomers. they will have demand for healthcare. where you get the secular bull market is the millennials. the millennials when you look at their balance sheet have more in cash than they have begun to invest in the equity market. >> you like 2200 s&p in is. >> i think you can get there. if you don't have a recession and markets have a full-fledged bear market, you recover faster. i want to remind people, we had close to a bear market in 2011. stocks were down almost 20%. >> when you were going through your analysis of p and e and the e is coming down, if it comes down more you start talking about p to book, price to book. there's stocks out there that are trading close to book value. i looked up general motors which i find surprising. it has a clean balance sheet having come out of bankruptcy not that long ago. doesn't that put a floor in the
market? these companies are buying back shares at close to book value. i would think that puts a floor well above 1600. >> you always get an overreaction. you throw the baby out with the bath water. unfortunately, retail componexc sells the last. they are not necessarily looking at valuations. your point is very well taken and appropriate. at some point you get valuations within the marketplace and you will start to see those value players step up. and i would agree, the auto space is one component where there is value in long-term demand. auto sales have been good. >> love the conversation. thank you for coming in. >> thanks for having me. >> coming up, all that glitters is gold. the gold minoreminers, the surp winners of the week. whether you should stick with that. live to san francisco with dan patrick and joe theismann. find out which team they think can win it sunday. we are awaiting the statement from the president. live to the white house when we do see president obama.
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sector has a long way to go before recovering last year's losses as the sector is still in bear market territory. down more than 20% off its recent highs. >> thank you. this is the dollar, right? >> this is all dollar. >> short lived or something to build on? >> i think you gotta wait. there's so much uncertainty going on in terms of our rates. this is rate dependent. if the fed does rate, there goes the dollar and commodities. all the commodity trades are de -- it's a falling knife. you can start nibbling. >> i wonder now whether the prospects of the fed being on the table in march does undo this dollar trade this week. the dollar index had its worst week or couple of days in many, many months. if you think the fed will go in march -- >> they are not going to go in march. i don't think they're going in march. first off, the market has done all the work for them. financial conditions have tightened considerably.
>> market seems to think that march may be back on the table, that even though -- >> that's not what i have been hearing. i'm hearing june it may not be on the table. >> before today maybe. if you have a disappointing headline number of a jobs report, but underneath that you have rising wages, you've got the participation rate doing what it's doing -- >> you have one data point is the problem. >> you have a dollar -- maybe the fed is getting cover. >> here is what the problem is. they are going to say they are data dependent. next week is almost empty of data. all you've got is initial jobless claims thursday. there's not enough to move the dollar one way or the other. it's probably just going to stay here until you get more data that moves the fed. i don't think they go because financial conditions volatility has tightened so much. >> all right. switching from the biggest gainers to the biggest game this week. more than 1 million people expected to pile into san francisco for sunday's super bowl matchup. presumably many of them are there or arriving today. our next guest is in the middle of the action. joining ul ining us live is dan.
of course, the host of the great dan patrick show as well. welcome to the program. >> thank you. ready to go. >> all right. who do you like sunday and why? >> i don't root for. i just root for great story. it's the same as in your business. you are rooting for a company to do really well or maybe really bad because it gives you content, something to talk about. great story line, peyton manning walks off into the sunset or cam newton has his first super bowl. the story lines are there. just give me one and it allows me to talk about it. it's more about content than it is my heart. >> do you put more credence sort of in the vet or is it the young wide-eyed guy there for the first time? does it make any bit of difference at this point? >> well, if you look at paton's playoff record, it's not very good. it's average. i think you would think
experience would play a larger role here. sometimes talent trumps experience. i think it's up to paton to use guile, if you want to use that word. he has to pick his spots here. cam has to pick his spots to not try you win with defense. the patriots, as great as they were, what did it come down to? the greatest defensive play in super bowl history. when the seahawks won, defense. go back through the years. dallas with the doomsday defense. steelers with their steel curtain. the packers play great defense. that's what it comes down to. i think somebody defensively makes the plays. that will be the difference in this super bowl. >> presumably, denver is thought of as having the better defense. are you surprised that the spread has widened the way it is? that maybe people aren't giving denver's defense as much credit
as they should and simply looking at carolina's phenomenal year and thinking that they will be able to trump whatever they do on defensive side of the football? >> i think what happens with the point spread and for entertainment purposes only, we tend to widen it more because you need more money coming in on denver. that's what's happening. i think you just -- the people in vegas, a bookie, they want it right in the middle. you don't -- you are not losing or lose too much. if you play it right down the middle, that's what they would like to do. i think they're trying to entice people to come in on denver and take the points. >> before we go, just given that we're a business program, we talk about media all the time, i consider you somewhat of a trail blazer in the way that you moved from espn a number of years ago to do the dan patrick show. the media landscape as we know is more fragmented than ever. you have become a multi-platform
star, the way people listen to radio is different than it was the day you left to found your own show. what do you think about the current media landscape as it exist s exists? where do you think it's going from here? >> i'm not sure where it's going. i spent 18 years at espn but would not have this opportunity without espn. to have that ability to make mistakes, to develop a following, to realize what i did and didn't want to do. i sort of liken it if espn is the biggest brewery in the world, i'm a craft beer. but that doesn't mean my craft beer can't turn into sam adams. we're proud of what we do. we do it differently. but that's why we have choices here. the people at directv said, here, we're going to build you something. if you build it, they will come. i've been very fortunate that they have been all in with me. without that financial backdrop, i can't do it. they gave me that opportunity. we want to do something
different than a guy sitting there on tv with a microphone. we have 11 cameras. we show you behind the scenes during commercials. we wanted it to be sort of unplugged. here you go. look at it warts s and all. we've been able to do that. once again, i state that in all sincerity, espn gave me 18 year dozen it at a high level. i've been able to benefit as a result of that. >> i guess whatever platform you are on, content is king at the end of the day. it has been and it always will be. >> yes. thank you. thank you for the opportunity. have fun this weekend. >> dan, look forward to it very much. continued success with nbc adding thursday nights. we will see you soon. >> thank you. >> dan patrick. crude reality, another losing week for oil in the energy stocks as the first big oil company cut its dividend today. we will hit the futures pitch to
get the outlook for oil. president obama expected to make a statement momentarily on the economy and today's jobs reports moments from now. we will bring you that live. a look at the biggest winners and losers in the s&p. vo: know you have a dedicated advisor and team who understand where you come from. we didn't really have anything, you know. but, we made do. vo: know you can craft an investment plan as strong as your values. al, how you doing. hey, mr. hamilton. vo: know that together you can establish a meaningful legacy. with the guidance and support of your dedicated pnc wealth management team.
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crude oil is sliding today. bertha has more with the futures. >> hi. was the dollar stronger today after that jobs number and no sense of where the fed is going to go? we're seeing crude under pressure. what do you think? are we going to go below 30 before we go back to test 35? >> i think at this point in time, you have to remain negati negative. that number today, there's nothing really for crude to like. it was a sluggish jobs number with that tiny bit little hint of wage inflation, enough to make the fed feel comfortable about taking about tightenings. crude should have liked this number less than it is. only down 40 cents. i would expect it to be down more. you play from the negative side.
we go below 30 again. i would get short if it goes below 29.50 and expect 27.50 at that point? >> do you think we will hold 30? >> i don't think so. i want to echo jim and make it expand on that. i thought it was a terrible jobs number. 157,000 jobs created. 102 of those were minimum wage jobs. the only thing that's going to boost crude oil price, increase in demand. when you have minimum jobs, there's not demand there at all. it was a terrible jobs number. the reflection is in the equities market. it's taking crude with it. i believe we go below 30 again. >> it doesn't help when some of the majors start to cut dividends to preserve cash. it doesn't look like demand will catch up with supply any time soon. thanks, guys. that's it for us. you can always follow up on twitter @cnbcfuturesnow and on the home page.
scott, back to you. >> thank you. quick before we go to break, i want to re-visit a conversation we had a couple days ago. you told me you didn't think the conoco phillips was going to cut. is this the start of something big? >> feels like it. this is when we had the analyst from s&p on. he thought dividends would be cut. dent wa he didn't want to say that. oil is stuck at $30 plus or minus $2. it has been there a while. there's no reason to go higher. without it going higher, they can only cut so much. the dividends come into play. banking on the financials. an upgrade for two banks. josh finds the trading activity distre distressing. final prep at levi's stadium. live picture. joe theismann is live. we are waiting on president obama. he will make a statement on the
economy and today's jobs report. live at the white house when that happens. back right after this. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
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even as more americans join the job market last month. so this is the first time that the unemployment rate has dipped below 5% in almost eight years. americans are working. all told over the past six years, our businesses have added 14 million new jobs. 71 straight months of private sector job growth extends the longest streak on record. over past two years, 2014 and 2015, our businesses added more jobs than any time since the 1990s. most importantly, this progress is finally starting to translate into bigger paychecks. over past six months, wages have grown at their fastest rate since the crisis. the policies that i will push
this year are designed to give workers even more leverage to earn raises and promotions. so unemployment deficits, gas prices are all down. jobs, wages and the rate of the insured are up. i should mention by the way that since i signed obamacare into law nearly 18 million americans have gained coverage and our businesses have created jobs every month since. on that, all of them full-time jobs. so as i said in my state of the union address, the united states of america right now has the strongest most durable economy in the world. i know that's still inconvenient for republican stump speeches as their doom and despair tour plays in new hampshire. i guess you cannot please everybody. that does not mean that we don't have more work to do.
there is softness in the global economy. china is going through a transition. europe's economy is still slow. a lot of the emerging markets are challenges. that's creating head winds for a lot of u.s. companies who do business overseas. it makes it more difficult for us to sell exports. so we have to pay attention to this. and we have to take some smart steps this year to continue progress. and we also to do more to make sure that the progress that we do make is broadly based and impacting folks up and down the income scales. the budget that i send to congress on tuesday is going to make sure that we can continue that progress. talking down the american economy, by the way, does not make that progress. my budget will offer more opportunities for americans to get the education and job training that they need for a good paying job. it will offer new ideas for benefits and protections that provide folks with a basic sense
of security. will create more good paying jobs not by subsidizing the past but by investing in the future. that's why we're placing a big emphasis on clean energy. private sector solar jobs are growing 12 times faster than the rest of the economy. and they pay better than average. that's one reason why my budget is going to double our investment in clean energy research and development by the end of the decade. that's going to help businesses create more jobs faster. it's going to lower the cost of clean energy faster. it's going to help renewable power compete with dirty fuels across america in a more effective way. those are some of the steps that are going to make sure our future is even stronger. a future that is worthy of the hard work and determination of the american people. the progress we have made, going from 10% down to under 5, that's a testament to american workers,
american businesses and the american people being resilient and sticking to it. and my hope is that rather than hinder their progress we're going to continue to help them make progress. with that, have a great weekend. enjoy the super bowl. i'm not telling you my pick. because the bears aren't in it. but i'm hoping for a great game. with that, josh -- is he back there? josh, take it away. >> you seem to -- >> that is president obama commenting on today's employment route touting the fact that the unemployment rate has dropped to 4.9%, the fact that wages have increased. noting as well -- back to the president. >> you were implying that you don't get enough credit. >> this is when i was talking with the warriors. >> so were you again referring as you did just now to republicans and their message, which you could say could be
expected during an election? or were you referring to the fact that polls, 57% of americans in polls say they don't think things are going well in this country? why do you think that is? >> at the time, i was making a joke with a basketball team. but there's no doubt that while we have made significant progress -- and i talked about this during the state of the union -- there's still anxiety and concern about the general direction of the economy. if you look at some of the surveys, people feel better about their circumstances, their finances, but they're not sure about the future. and part of it is the devastation from 2007 and 2008. if your home value drops in half or you lose a job that you thought you were secure in or
your pension suddenly looks vulnerable, you are going to remember that. so a lot of people still feel that. and they are right to recognize that there's some longer term economic trends that we still have to tackle. that the economy is more dynamic and it churns faster and the pressure on companies to maximize short-term returns often times at the expense of long-term investment, the lack of loyalty to workers who built the companies, threatened to be laid off, wages and income up until the last six months haven't gone up as fast as corporate profits have or benefits at the very top, all those things people feel and they experience. so even though they know things are better, they are worried where are we going.
i think the argument i'm making here and will continue to make during the course of this year is we should be proud of the progress we've made. we have recovered from the worst economic crisis since the 1930s, the worst in my lifetime and the lifetime of most of the people in this room. and we have done it faster, stronger, better, more durably than any other advanced economy. had we adopted some of the policies that were advocated by republicans over the last four or five, six years, we know that we probably would have done worse and we know that because a lot of european countries adopted those policies and they haven't yet gotten to the same place they were before the crisis. so evidence, facts are on our side. this jobs report gives you one more indication that the facts are on our side. i think that it is important for us then to understand how do we take the next step and make people feel more secure and feel
more confident about the future, and that's why investments in education and job training, going after the high cost of higher education, making sure that issues like paid leave and family leave are put in place, raising the minimum wage so that if you are working full-tyime yu are not in poverty, invefsting n transportation, infrastructure, clean energy, going after the jobs of the future, investing in technology. all of that is a recipe for continued growth and increased security. as far as i can tell, those who are running down the economy and adding to the anxiety don't seem to have any plausible, coherent recipe other than cut taxes for the folks who have been doing the best in this economy and somehow magically that's going to make other folks feel good.
or they argue that the reason you are feeling insecure is because immigrants or poor people are taking more and more of your paycheck. that is just not true. the facts don't bear that out. that's not where the weakness is in the economy. that's not depressing wages for middle class families or making them vulnerable to disruptions in the economy. i want to make that argument during the course of this year. we should feel good about the progress we have made. understanding that we have still got more work to do. it's sort of like, you know, i'm 54 now, so i gotta work out harder to stay in shape. if i'm feeling good in the gym, i want to acknowledge that what i'm doing is working, otherwise, i will go off and have a big double bacon cheeseburger or
something, because i will think, this isn't working. no, if it's working, then we should be staying on that same path. that doesn't mean that i'm where i necessarily want to be. it doesn't mean that i stop doing some hard work to get where we need to go. all right? i was only going to make two -- i'm going to take two. go ahead. >> thank you, mr. president. how can you improve work force participation levels, because as much as people talk about the recovery, so few americans are now relatively speaking in the job force, especially compared to 2008? if you wouldn't mind, you can comment on the fee that we heard so much about for $10 per barrel? >> on the first question, part of what was good in this jobs report is the fact that the participation rate, in fact,
didn't drop. that wasn't the reason why unemployment dropped. more people are entered into the work force, they feel more confident and they finding work. what is true is that we are still at a point where the labor participation rate is lower than it has been historically. some of that is explained by demographics, the population is getting older and so you would expect that there is some decline. but it's not fully explained by americans getting older. some of this is still the hangover from what happened in 2007, 2008. and this is part of the reason why we have to keep our foot to the accelerator in terms of doing the things that need to be done to keep the economy growing and keep it strong. we should not let up from the progress that's been made so that the labor market continues to tighten, people feel more
confident that if they go out and look for work that they can find it. there are particular cases where some folks have just been out of the labor market for a long time and may not be equipped for the jobs of today. and that's where we have got to target some special efforts. i get a lot of letters from middle-age workers who got laid off. aren't confident about their current skills. so have not yet re-entered the work force. they need to get retrained. so that's a special group of folks in their late 40s, early 50s, still far away from retirement but feel like they can't adapt. obviously, there are young people, high school dropouts, folks in rural communities and inner cities, that just came of age right in the middle of this
terrible recession and haven't gotten attached to the labor market yet. so we've got to make special efforts to figure out how do we get them into job training programs or community college and allows them to get some skills? so there's a wide set of strategies we can take on that. but it's going to -- it's going to require overall though a strong labor market for them to feel like it's worth it to make these -- to make these efforts. and we want to keep making sure that the labor market is as strong as possible. with respect to oil and energy, i will probably make a larger speech about that and the direction that we need to go on this. the basic proposition is is that right now gas is $1.80. and gas prices are expected to
be low for a while, for the foreseeable future. that overall can be a good thing for the economy. but what is also important is that we use this period where gas prices are low to accelerate a transition to a cleaner energy economy because we know that's not going to last. every one of us have seen cycles where gas prices go down and then they pop back up. and the idea here is that we -- if we say to oil companies -- by the way, got a significant benefit when we -- in the omnibus allowed them to export oil for the first time. up until that point, domestic oil producers couldn't export. so if we say to them now, all right, oil companies, we know that you are having to retool. we know that prices are low
right now. you are allowed to export. but what we're also saying is that we're going to provide -- we're going to impose a tax on a barrel of oil imported, exported, so that some of that revenue can be used for transportation, some of that revenue can be used for the investments in basic research and technology that's going to be needed for the energy sources of the future. then ten years from now, 15 years from now, 20 years from now, we will be in a much stronger position when oil starts getting tight again, prices start going up again. we will have further weaned our economy off dirty fuels. we will have a stronger economy, a stronger infrastructure. we will create the jobs of the future. i think we will look back and we will say, that was a smart
investment. that was a wise decision for us to make. the point is, it's right to do it now when gas prices are really low. and they will be low for quite some time to come. so it's not going to he about a disruptive factor in terms of the economy. of course, they always say something. i only said two questions. i hope you guys have a wonderful super bowl party. thank you, guys. >> what was billed as a statement on the jobs report today, president clearly entertaining some questions from the press corps there. commenting on the jobs report, touting fact that the unemployment rate has fallen to 4.9% and wages went up. the president as you saw there in the latter stages of that event commenting on and defending his plan of a $10 a barrel fee that he is proposing on oil companies to pay to for clean energy and more instra
fr infrastructure. he will make comment on that highly controversial plan later on that. that oil plan is a story in and of itself striking many as curious given where oil prices are even with gasoline prices at their low levels. there's a sizable debate on wall street. you can see it in the stock market as to whether the jobs report today was good or bad. >> look, scott, you can tell from the president's body language that he thought it was a good jobs number this morning. i think two things are going on here at the same time. the president and the white house staff very much feel that they are starting to frame now the overall obama legacy going back to february and january of 2009 when the president was sworn in. they are looking at exactly how his economic legacy will be perceived by historians in years to come. i think they are also talking a little bit about how they can lay the groundwork for democrats in this coming election year.
clinton and sanders debating last night. so much of the focus on republicans. you heard the president talking about the doom and gloom caucus up in new hampshire among republicans. they think that republicans are out of touch on the economy. they think at the white house that the economy is far better than republican candidates for president, are giving it credit for them, and would like to get that message out. the question is, whether voters are going to hear that message as you heard, the president himself acknowledging that there is economic anxiety out there in the country. a lot of that is a hangover in his view from 2008. but it is definitely affecting the way voters are seeing this out there on the campaign trail. >> he commented on the participation rate and the impact that had on the overall jobs picture which has a lot of people talking today as well. ayman, thank you very much. ayman jafers live for us. quick break and back to talk more about today's market moves and look ahead to next week's big earnings, including disney, twitter and tesla. plus, we talk to nfl legend joe theismann on the big game this weekend. you're watching cnbc, first in
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all right, welcome back. our next guest, a former super bowl star who can hold his own both on the field and in the stock market. with us now, super bowl champ, quarterback joe theismann. good to see you again. >> you too, scott. great to be with you. >> tell us what is the difference -- what the difference is going to be in sunday's game. >> i think the difference in sunday's game will be how well the defensive front seven of the denver broncos are able to control cam newton. this is really cam versus the defense, wade phillips the defensive coordinator of the denver broncos, this is their football game. i expect peyton to do exactly what he does all the time, manage the game very well. doesn't challenge down the feel as well because of his arm, missed some opportunities in the game against new england. he will be masterful.
that's what i believe. and so to me, i think it will be denver's d versus cam newton and that offensive line of the carolina panthers. >> sounds to me like you're saying denver is going to win. >> i am. and i oddly enough said it in the beginning of the week and here we are on friday and i haven't changed yet, which is unusual for me. i'm staying with the denver broncos on this one. >> i want to get your opinion of the stock market, while i have you, i know you love talking stocks. particularly biotech ones, which we both know have been obliterated with other parts of the market. what are your thoughts as you sit there on the stock market and what exactly are you doing these days? >> well, actually, i'm looking at the market as almost a day trading market. i think if you decide you want to put your money some place and hold on to it, it is a risky play. stock like google, look at google under 700, you have to realize it was an $800 stock, where are we going? i think we're in a pullback now. oil affects what is go on what
is happening in china affects us, and oddly enough and nobody is talking to about it to a large degree, i think what happens in election debates and conversations going on is affecting a little bit of what people want to do regarding the stock market. there is a lost anxiety. there is a lot of uncertainty. i think it is time you really have to trust the experts, you have to study what you want to did and look at it closely, and maybe if you do have a portfolio that is somewhat varied, bring it down it a smaller number so you can manage it in a much more efficient manner. >> joe, i appreciate you coming on. i wish we had more time. we'll have you back soon. >> you bet, scott. great being with you. thank you. >> likewise. joe theismann with us. let's get a final thought. what do you look for between now and the end of next week? >> the earnings. there vice president be there haven't been, on the tech side, the googles, they're good. if their valuations are too much, stay away. >> you told facebook today, did you? >> i did. it took a nice profit.
i don't think there will be relief from earnings. if you look at the way the with days, they end up selling off the rest of the market. >> no data next week, all earnings. >> great weekend. enjoy the super bowl. "power lunch" begins now. and welcome to "power lunch." eye michelle caruso-cabrera with tyler mathisen and melissa lee. brian sullivan is out today. we have three big stories we're following for you at this hour. >> top of the list, the wall street sell-off. nasdaq getting creamed today. the tech index is down, about 2.5% right now. dow and s&p 500 falling hard. >> and then the jobs report. wages rise as unemployment falls. we'll hit the front lines of america's job market to find out, we'll hear from the people who are doing the hiring. >> and then oil outrage over the president's proposal to impose a $10