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tv   Street Signs  CNBC  December 18, 2014 2:00pm-3:01pm EST

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this follow-through. the thing i don't like is there's not enough volume to support this rally. >> exactly. >> we're 15% below volume from yesterday and today's rally. clearly tomorrow we've got a lot of volume there. >> thank you, jonathan. that does it for us on "power lunch." >> sue, thanks very much. "street signs" begins right thousand. ♪ i'm going to take you higher and welcome to "street signs," everybody, where we are watching the markets take us higher. almost everywhere you look, we are up, and good things are coming in packages of two. the s&p enjoying its best two-day gain in nearly two years. the dow is now up nearly 600 points over these two sessions. and the index is also seeing its best day of the year for the second day in a row. all of this despite crude oil futures turning negative. so it's all largely thanks to an early christmas gift from janet yellen. hello, everybody, i'm mandy drury. broo
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brian sullivan is out on assignment. steve liesman is with me. 24 hours ago our heads were spinning. we are calling this the wtf, what the fed? >> is going on. >> yes. >> a couple things. first of all, she clearly took away the possibility of earlier rate hikes. we know there's at least a two-meeting hiatus before the next rate hike. she says she's not concerned about oil leverage, theyed that there's a lot of debt that could go bad in the system. it's not a concern. oil, yellen says, is a net positive. and finally, she wasn't too worried about this global weakness. she gave a relatively upbeat view of the u.s. economy. and if there was something bothering the market about what the fed might say, that seems to be out of the way. and then whatever else is taking over, the better economic fund meants, and who knows? maybe just desire to buy stocks is out there. then that's taking over today. >> there's a lot of fodder out there, right? when you get down to the semantics of considerable time versus patience and which one is more dovish than the other?
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can you explain that to me? >> i don't see patience as being less dovish or hawkish than the term considerable. what the fed is trying to do -- and i must say it's not succe succeeded at doing -- was moving away from calendar-based guidance and go towards data dependency. that's where they want to be. and they did this in a very gentle step. instead of saying considerable time has gone, they said we're going with patience and that's the same as considerable time. >> but if they want to move away from a calendar-based timing, why on earth did she say at least two meetings? >> you asked an extra question because i don't know the answer to that one. that is definitely a contradiction in what the fed is saying. >> yes. >> i think she knows -- the fed knows, yellen knows there's some incurable desire on the part of the market for some time guidance, and they're going to give it, and they're going to give it in a soft way. and i'm sorry, mandy, but your plane "taking me higher," i can't help but think of the jerry garcia song "the harder
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they come, the harder they fall." couldn't i don't want to be debbie downer, but you've got to think jimmy cliff at a moment like this. >> well, the fed rally continues. the dow is up triple digits. bob pisani at the new york stock exchange, rick santelli in chicago and jackie deangelis in the oil pits in new york. bob, a couple of days of meteoric gains steve was talking about, and also the higher they soar, the harder they fall. are people worried about maybe this as being a head fake down there? >> no, the three things that matter, oil trying to stabilize, the fed helpful and europe is all in on the u.s. markets. big move up this morning here. take a look at the sectors. very unusual move today. all ten sectors up, but almost all of them up more than 1%. very rare. that's a broad market rally. germany, 3:00 in the morning, our futures went through the roof as germany opened and they all wanted to get into the united states. and they were even buying german stocks at that time. we've got news on the german confidence numbers better than expected. finally with oil trying to stabilize, we had oil negative today and oil stocks are
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generally on the upside. mandy, i think we're making a real attempt here, maybe the fed's helping to try to decouple a little bit from the recent drop in oil. any stabilization would be a big hell. >> bob, you're a massive rock 'n' roll fan. what's your song for this rally? >> "you ain't seen nothing yet," maybe? >> that's a good one. >> if global mashrkets stabiliz more, the u.s. market is definitely helping. >> rick in chicago, are you going to give us some chicago blues? >> we're on the same freblgt qu. here's what i was going to say, zz top says it best, gimme all your lovin'! and they did! and afterwards, it turns into the grateful dead, if you're trying to trade free markets. and it's just "truckin'" when it comes to the stock market. but all in all, you can't spin straw out of gold forever. and i think strangers to tightening will the song down the road. >> all right. thanks, rick.
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let's round it out -- is that my read or yours? >> that's yours. >> my read. let's round it out with oil. jackie deangelis is live at the new york mechanicrcantile. >> reporter: bruce springsteen says we're taking it down. 55.20, down 1.60. and brent now back under 60 bucks a barrel. traders are saying look, it may be too soon to say we've stabilized. the sentiment is also to go lower. also the supply/demand economics have not changed. that picture is stable. having said that you mentioned the issue about bank leverage to oil companies and a lot of traders and analysts are saying the fed may not be speaking honestly about it or necessarily understand the kind of domino effect that we could see in the credit market in 2015. they're worried about it. and i'll also pose this question to you. a lot of people are worried if the fed can reach its inflation target if oil prices do go down from here. we are still talking about that four handle in oil coming just
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around the corner. if that happens, can they reach their inflation target? last point on gas prices, we are under $2.50 at this point. and that was very, very significant move. traders were thinking that we would see that by christmas. but it's happened well in advance. we could see those retail gas prices continue to decline, guys. back to you. >> and we're going to talk more about that and what it means for retail later on in the show. thanks, everybody, for playing our very impromptu rock 'n' roll questionnaire. more on the big fed move and what it means to your money. joining us now, executive vp and cio with bmo private bank and jim mccorgan. i was intrigued, jack, that you were saying that the s&p 500 right now is like tickle me elmo at christmas. explain, please, sir. >> i think we are -- we are the toy that everybody wants. the fact is, we're the ones that have a favorable valuation. we're benefiting by lower oil prices. we've got strong momentum. and that's something that most
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every other major market can't boast right now. and everyone wants to be in our market, which means that, you know, that prices are being run up. i think it was the eisley brothers that did "for the love of money." at some point it's going to be "slip sliding away." >> wouldn't you say at some point it's going to be "slip sliding away," and what will be the trygger? >> the trigger for me is momentum. i love cheap markets that are moving in the right direction. and i will stay with expensive markets as long as they keep moving in the right direction. but if we get, you know, already credit spreads have broken out to the upside, meaning that lenders are starting to rein in their horns, and that's not just energy. that's of the six sectors i track in credit, five of them have broken out to the upside on spreads. and if momentum continues to roll over here, which we had a flirt with the 200-day moving average, but if we stay either
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bounce off the 200-day or drop below it substantially early next year, i'm probably going to use that as the opportunity to raise some cash and then take a wait-and-see. >> jim, in the words of the great spiritual song, is this train bound for glory or some other ignominious end? >> i think it's bound for glory, steve, because weak oil prices really should be positive for most equities. in fact, they're good news for any company and any person who doesn't own oil wells. you're getting your energy cheaper. the reason there was a positive correlation, oil went down and equities went down last week is really, i think, fundamentally to do with technicals and to do with margin calls. as we get into the later part of the year and into next year, i don't really fear the continued weakness of oil prices because i think unless you're in energy business, unless you're an oil driller or oil services, the cheaper energy is going to help economic activity. and i think really this rise
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today is well based on the fundamentals of the u.s. private sector. better profits, better growth. >> can i address that? >> yes, go ahead. >> yes, steve. >> you're absolutely right, jim. i think fundamentally cheap oil prices are great for u.s., japan and europe. however, if we had a 50% drop over two or three years, i'd say that's fantastic. when we have a 50% drop in less than six months, the problem -- we have problems in the credit markets. >> mm-hmm. >> remember, credit markets were at equilibrium at oil at 100. when you cut that in half, i think we're stretching a rubber band and something's going to snap. it could be russia. it could be some other funds that are on the wrong side of a trade. i'm just holding my breath waiting to are something to happen. >> i want to ask jim about that very question. i'm not a guy that focuses on the short term, but in this case when you have these kind of back-to-back moves like this, is this something -- specifically the way you would otherwise deal with it -- is this something where you would essentially stay
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out of the way of this huge gain here? >> i think maybe you can stay out of the way of the gain. but last week was clearly one of those buy-on setback times. and if there is another dislocation, you know, it could well be russia defaults or something, you know, something really bad happens in the credit markets. if that happens and you get dislocation, do not forget to buy it because that will not fundamentally affect the strength of the u.s. market. i'm expecting u.s. stocks to be up at least 10% next year because of the stimulus that is happening to the competent. >> another 10%. jack and jim, we'll be watching. thank you very much for joining us. it is now a turning point for cuba. how the major overhaul of u.s./cuban relations kwo s coul a really big impact on big business. louis we'll hear from the first cuban-america elected to the u.s. senate. and "shark tank's" own damon john is in the house. we'll get his take on everything from cuba to gas prices to the
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last-minute holiday shopping. who's winning, who's losing the retail battle? stick around. "street signs" coming right back. i have a cold with terrible chest congestion. i better take something. theraflu severe cold doesn't treat chest congestion. really? new alka-seltzer plus day powder rushes relief to your worst cold symptoms plus chest congestion. [breath of relief] oh, what a relief it is.
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good news, all you drivers out there, pump prices continuing to drop. aaa saying the average price for a gallon of regular gasoline now below $2.50. that hasn't happened in five -- count them -- years. in fact, pump prices have fallen for 84 straight days, the second longest streak on record. >> okay. well, we have a very special guest with us today. damon john, one of the stars from "shark tank," founder of the clothing line fubu. i believe you'll be joining us for the rest of the hour. we just saw gas prices. i'm glad you're with us. >> i love it, gas prices are. dropping. this is like the saudis doing a guilt sale at the end of the year, right? like trading places. you know, it's going to drop. they need to get their g.i. joe kung fu grip. >> say thank you very much? >> thank you very much. thank you very much. >> but anyway, let's turn to retail which is your area of expertise. >> sure. >> because this -- >> big saturday. >> -- is super saturday. do you think it's going to be maybe better than black friday,
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maybe top sales day of the year? >> i do think so. i think, you know, everybody's feeling good about gas prices. i think that the indication is showing that retail is doing great. and now the power is going back to the people. you look at black friday, 20% of people purchased just the iphone. it's eneasier to make a purchase and that's going to help. >> when you scour the landscape and you see all the advertisements that are out there, all the products, who's going to -- who's a big winner this christmas selling season? >> this christmas selling season, let's me see who i picked. i like nike. i like the fact that they can deliver very specialized shoes very quickly to you. i always love victoria's secret. i just went out to the show and i think they can really position something that is one of the most googled topics in the world or items in the world, but they can sell this image but really sell, you know, a lot of product direct to the consumer. >> weren't you just mentioning victoria's secret two seconds ago, steve? watching a football game, 15-second spots? >> it seems like they're doing a market to the guy thing. it start of what they do. and they're very short spots. they're, like, 15 seconds.
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>> they're doing a market to everybody because you really look at lingerie, 95% of it is really, really, affordable. it's in tj maxx and things of that nature. but they're doubling and tripling the cost of it. they're marketing to everybody. i also like tumi. along with andiamo. >> we were going to do "street talk." elle brands was going to be one of the stocks. they've initiated it as a buy because they're launching victoria's secret around the globe. >> every woman around the globe wants to look beautiful. every man around the globe wants to have his woman look beautiful. >> absolutely, hear, hear to that. a big turning point for u.s./cuba relations as america moves to thaw that icy relationship that's lasted since the cold war, more than 50 years. cnbc chief international correspondent michelle caruso-cabrera is where history is being made live in havana. michelle.
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>> reporter: hey there, steve. when you talk to american businesses who have long wanted to be able to come into cuba and at least sell products to people here or do investing, they say think of it like this. think of it like a 51st state. it's so close to the united states. more than 11 million potential consumers there. and if we can sell to them, it's so close, no shipping costs or low shipping costs. now, it's one thing to want to sell paint and pepsi which they desperately need here, especially the paint, but it's another thing to be willing to actually construct something here, pour money into the islands. when you're not sure what rule of law is going to be, what corporate governance is going to be like, whether or not you know that in a court you're going to get enforcement of private contracts. so that's one of the big hurdles. that's one of the ways that businesses look at the situation. but make no mistake, what happened in the last 24 hours is absolutely historic. and american businesses are waiting to see if it leads to bigger things where they could actually get down here and whether or not there will be enough changes in cuba as well
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to make it -- to make the situation one in which they are willing to invest. we spoke with a woman named sara stevens. she is the head of an ngo located in washington. that's a nongovernment organization. she's been the head of it for 15 years. and she has traveled here with members of congress and also members of the business community. she runs the center for democracy in the americas. when she heard what president obama said yesterday, she was absolutely thrilled. >> it was fantastic news. it's basically more than i could have imagined happening. i think it's brilliant. very carefully put together. i think it works for cuba, and it works for the united states. obviously, it's just the beginning. i mean, the hard work comes next, i think. >> reporter: she completely rejected critics who say, you know, the obama administration should have extracted more promises and more changes from
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the cuban government. you read "the washington post" editorial today, they talked about the fact that potentially with the situation, the decline in the price of oil and what venezuela is going through, remember that is the patron state to cuba, provides them so much oil, a lot of help. and without them, they'd really be in a very difficult position. the situation with oil means that in a few months, maybe you could have gotten a much better deal. and she says you don't necessarily want a cuba that's on its knees. you don't want instability here. it's so close. you could have thousands and thousands, even more than already tried to do migrating to cuba and it could lead to some kind of humanitarian crisis on that front. so so many divided opinions about what's happened in the last 24 hours. and it remains to be seen just whether or not there are going to be enough changes to make a difference to american business. guys, back to you. >> thank you so much for that report, michelle caruso-cabrera live in cuba. we should also just mention with about ten minutes to go until crude oil is going to settle for the day, we're really selling off hard.
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we're currently down 3.5%. we're currently sitting at $54.50 a barrel of the black stuff. well, let's go back to cuba because just how significant is this shift in policy for cuba/u.s. relations? former florida senator mel martinez, he is the first cuban-american to serve in the u.s. senate. so senator, great to have you with us today, sir. i have a question. and that is do you think that we got enough concessions from cuba? i mean, they're going to benefit greatly from this. do you think maybe we're giving too much away without getting terribly much in return at this stage? >> well, we really got nothing in return, really. i mean, alan gross should never have been in prison. he returned, which is a wonderful thing to see happen. and we had a long-term-held apparently someone who collaborated with us who also was released. that's great and that's good. we also gave them some very significant, you know, convicted felons, people involved in conspiracy to murder in return in their spy network. so that's a swap. beyond that, what did we get?
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really nothing. they freed 53 political prisoners that could really be in prison again tomorrow. i think michelle gave a wonderful report. i enjoyed, first of all, that shot. i can remember as a child in the back of my parents' car riding down that very street that was shown on the shot. it was nostalgic for me. i think she got it right in terms of the necessary changes the cuban government has to make in order to make this work. in other words, had i been involved in the negotiations, i would have insisted that they take some measure, some steps to improve the lives of the cuban people. then and only then, really, is cuba a good trading partner, a good neighbor, a good economic and more importantly geopolitical partner to us. as long as they're a hostile state, it doesn't change. >> senator, president obama said that the policy of isolation has failed. do you agree with that? >> look, it depends on how you measure it. and first of all, they haven't been isolated. the whole world trades with them. it's maintaining u.s. sanctions as it relates to tourism and some other things.
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we trade over $4 billion a year with cuba. so it is really about opening up diplomatic relations, about giving them legitimacy that having a u.s. embassy in havana would accord them. so having had this policy in place for so many years, it would seem to me to have been wise before we unilaterally change our policy, we could have extracted concessions that would have made them a better neighbor to us. >> damon? >> i think there is some opportunities to open up, but it's not can we build down in cuba, because we don't even know if they want us down there. canada is down there. it hasn't changed much. but i think there are opportunities of us importing, businessmen importing more sugar, tobacco and things of that nature. i would go down there, the tourism opens up, it's a pristine, you know, area due to the 30 years -- >> would you invest in cuba, though? >> i would only invest in personal real estate at the moment. i think it's too volatile at the
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moment to make that decision until i can get accumulated there. i think we're 10, 20 years away from seeing whether it would pay off to invest in that with regards to real estate or building. >> senator martinez -- go ahead. >> if i may disagree just a little bit because the truth is cuba doesn't produce enough sugar to provide for its own needs much less to export. that's how failed the cuban economy is. and the rule of law just doesn't exist. so to me, frankly, i would love to see a transformation that would make cuba a dynamic trading partner for the u.s. but only free people do that. >> i totally agree in one aspect. i totally agree with one aspect. the cuban government hasn't been suffering for all these years. it was really the people and it is the people. as long as something to put the people to work, i'm totally for it. >> senator, i'm afraid we have to leave it there, but it's been a real pleasure to have you on the show. i hope you'll come back another time. senator martinez. we have a news alert now with mary thompson. >> hey there, mandy. we have news concerning goldman
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sachs, john wauldrin has been named one of the three co-heads of investment banking at the firm. he replaces john weinberg who is a vice chairman and will continue at the firm. but he's giving up day-to-day management of the investment banking division. mr. waldrin has long been a rising star at goldman sachs, holding a number of different roles at the bank. in a memo that was issued to the bank, this is coming from "the new york times," the company's ceo, lloyd blankfein, writing that john has helped us to develop many of the firm's most important client relationships and drive our global coverage strategy. mr. waldrin joining goldman sachs back in 2000. mr. weinberg who he's replacing joined the firm back in 1983 and his bloodlines are deep there at goldman sachs, having a father who also worked there as well. back to you, mandy. >> thank you very much, mary thompson. up next, why gm is saying nyet to russian car dealers. we'll be right back. plus, crude falling hard into the close. right now crude oil off about
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3.5%, 3.75%, actually. we'll talk this over and we'll see if the selloff continues when "street signs" returns. thanks. ♪ [ male announcer ] fedex® has solutions to enable global commerce that can help your company grow steadily and quickly. great job. (mandarin) ♪ cut it out. >>see you tomorrow. ♪
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we are sliding, only a
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couple minutes to go until it settles. we are ending down over 4%. we were actually positive early on in the day. >> do you know what the low is? >> what the low is? >> 53 or something like that? not today, but in general. >> yeah, i think about 53 and change. another bumpy day for the ruble. the russian president, vladimir putin, addressing his nation today in an over three-hour news conference. let's bring in our deana guzovski. what was the biggest takeaway? >> it was putin in classic form. he was blaming the west. he did say everything would be fine in about two years. he obviously addressed 9 ruble. also took a little swipe at the central bank saying he agreed with the decisions that they made, but maybe they should have made them a little sooner. he obviously was referring to the rate hike. the big thing, the bone he extended to the business community. there are several rich men in russia who have lost a lot of
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money. one of those was an olel oligar. he's been released. putin understands he needs the business community, cooperation and most importantly their money. and of course, after putin's news conference, the big moment there was gm, suspending delivery of cars to dealerships. this is something we reported in the past sefrveral weeks. what happened was the ruble dropped so hard and so fast didn't have time to adjust the price, right? the exchange rate, the ruble is so volatile. they really weren't making that much money, and russians were snatching up cars. we spoke to ford dealerships as well because they saw no value in the ruble so they wanted to buy tangible goods, big-ticket items that at least have something. >> you just described in practice the theory of inflation, when you have a currency move like that. >> yes. >> bernie setcer, 1992, the first to open a gm dealership in moscow. it's been there a long time.
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eunice is here. let's bring her in. she's in town from our beijing bureau. eunice, putin still has one big ally out there, they say it's china, but i'm skeptical. >> no, no, it is china. he is isolated in so many other parts of the world, right, the west, but he does have a friend in china. overnight the chinese government talked about its support for russia. it said the trouble in the economy is temporary. they'll be able to work through it. and this whole year you've seen the relationship between china and russia tightening. they've been able to work through a lot of historical differences to get through a natural gas deal. actually two deals. and they've been able to do quite well. and so a lot of this is because of the fact that you see russia and china both isolated in their own patches. so russia isolated in the west. and then china alienating a lot of its neighbors. japan, the philippines, vietnam. mainly over territorial disputes in the south china seas and the waters in the asia-pacific. that's one of the reasons you're seeing these two now getting
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together, overcoming big differences. but the question, of course, is whether or not it's going to be able to provide enough of an escape hatch for president putin to be able to help with this economy. >> what do analysts say? >> a lot of analysts have been saying that you wouldn't see any big aid or something going to moscow, but that you could see a couple of different steps. one, they recently just announced a currency swap line. that would normally be used for the settlement of trade, but that could be potentially at least in some of the discussion is that it could potentially be used to help stabilize the ruble. also, infrastructure and investment projects could be green-lighted by the chinese. we could see more. >> i just want to say historically this notion of there being a china card for russia to play against the u.s. interests is thought in many foreign policy circles to be a red herring. they come up, they talk, they talk nice, but in terms of real things happening as a result, it's usually minimal. now, this may change this time. and the world does change over time. but historically it's been something that's not panned out at the very most. >> china made out really well,
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right? >> china did make out really well. like you said, it ebbs and flows. and in history right now, we're at a point where both russia is isolated, china is isolated, so just out of necessity, they're working together. >> i love the way putin was playing the victim, was saying whatever russia does, it always meets with criticism and opposition. >> and a lot of bear rempsferen. >> don't poke the bear. thanks for your expertise on the show. coming back to the main story of the day which is this massive gain in stocks today. a big drop in crude also going into the close and a big gain for the dow and other indices. here's a look at the dow 30. >> yep. and we're also not taking our eyes off the bond action either. we've got it all covered for you. that is next on "street signs." they're still after me. get to the terminal across town. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪
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does he even work here? don't listen to the naysayer. take the comcast business speed test. get faster speeds or more savings, or we'll give you $150. comcast business. built for business. oil selling off hard into the close. straight to jackie deangelis. >> the momentum to the down side here, we're trading around the $54 level. brent did break under $60 a barrel, but still watching that low from tuesday. 53.60. we haven't seen that low since may of 2009. a lot of this having to do with the fed pushing the dollar a little bit higher.
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that 89 handle certainly going to have an impact on crude. but also traders saying what we saw the last couple of days was a dead cat bounce, classic when you see this kind of selling and that the momentum right now is still to the down side. so watch this one. back to you. >> thank you very much, jackie deangelis. let's get to "talking numbers," a look at something from a fundamental and technical perspective. we've got todd gordon of on the technicals, ira jersey of credit suisse on the fundamentals. ira, will the rebound rates continue? >> we think it will. we think by year end, we'll be another five or ten-year basis points higher. next year will be the story of 2s and 5s are going to sell off as the fed gets more hawkish. ten-year yields closer to 3%. we think by the time the fed hikes in the middle of the year. >> todd, what are the charts saying? >> i agree with my friend ira. if we look at what ten-year yields have gone from 2008 to
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2011, we'll see a striking similarity of what's happening now. we like to look at the past to predict where we're going in the future. if you look at that 2008, 2011, you'll see the pattern happening now. let's go back to 2008. and you'll see a sharp move up from those lows. that was the credit crisis low. we've pulled back to a higher low. and then we got a 150-point base point. fast forward to today and today's interest rate environment, we're seeing the same pattern. we're seeing a spike low, a sharp move up and looks like we have just put in that higher low following yesterday's fed that should give us another 150 basis points up to the top side which actually gets us through that three handle. >> okay. to both of you, we've got to leave it there. >> i need to do the math for viewers at home, that's 3.5%, if i'm not mistaken, right? that's your number? 150, 370, even. that's a big number. >> yeah. >> our forecast for the end of next year was 335. >> 335. >> something in that range,
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yeah. >> that's blood on the streets if it happens fast. anyway, interesting call. >> thank you very much to both of you. and check out the online edition of "talking numbers" in partnership with yahoo! finance. sony may be throwing away millions of dollars by not releasing "the interview." plus, we're all over the market rally. right now the dow is up 286 points. the s&p is up by 31. nice rally going on there, folks. stick around. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪
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sony decides to pull the movie "the interview" after some theaters decided no the to show the movie because of threats of attacks. a lot of reaction to this. here's just one example from actor rob lowe. "saw @sethrogan at jfk. both of us have never seen or heard of anything like this. hollywood has done neville chamberlain proud today." for people who don't know what the reference to neville chamberlain is, that was the british prime minister back in 1938, you might remember, who had the appeasement policy. >> why do you think i remember? >> because you're a history buff. you know these kinds of things. he signed the munich agreement
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conceding part of czechoslovakia over to hitler and of course the rest is history. damon, do you think this sets a dangerous precedent? some are saying this is a cowardly move. others are saying they didn't have any choice. >> they didn't have any choice. sony is about entertainment. and i think if one person got hit even by a copycat, i think it would set a different precedent and that they were about greed. i think sony will find a way to monetize this, whether it's acrackaon crackle. the movie is getting a lot of advertising as we speak. they could not put that movie out in case one person got hurt. >> absolutely. >> if i had to bet, i think this movie sees the light of day, i do not believe it will stand in america. whatever the threat is, that's going to stop this movie. >> that movie will see the light of day. and you have a lot of other outlets. it's not just movie theaters we have to go to. you know what? maybe even a sneak preview and actually make some money on this thing. >> would o'leary invest in it p. >> o'leary would probably invest in it because he loves to sell fear. >> ooh. ouch. okay. >> call me, kevin.
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call me. we've got to play guitar. that's sony's sponsor lack of response, but what is the u.s. government able to do about this attack, if anything? joining us now is eamon javers. >> reporter: hi, steve. the u.s. government options are going to be fairly limited. i've talked to a lot of former u.s. intelligence officials today who say they range from simply doing nothing to all-out military escalation. each of the options from getting a u.n. resolution to a cyber attack of its own comes with really intense drawbacks. there's a lot more the government to consider here. also a new development just within the past little while here. white house press secretary josh earnest said from the white house podium that u.s. officials did view a rough cut of this movie in advance. sony showed them that. what the white house is saying now, though, is that u.s. officials did not weigh in in way on the content of the movie. that's an important nuance here going forward. one of the key questions, guys, is what can business do to protect itself, and that's why we're here right now. this facility which i can only
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tell you is somewhere in northern virginia is what's known as the fsisack, a complicated acronym, but this is the place where the financial services industry develops solutions to respond to those threats in realtime. i'm joined now by bill nelson, the ceo of the fs isack. thanks very much for joining us. tell me a little bit about what it is you guys are doing here. how many cyber attacks are you seeing against the financial services industry every single day? >> we see thousands of attacks against financial services every day. some of them are just probes and scans. some are cyber attacks by cyber criminals. others can be nation state attacks looking for intellectual property. it's a growing problem. >> with sony, it was an attack to destroy the company and root out some of their most sensitive secrets. what you've seen with the financial services industry is generally different. how? >> generally they're after stealing money. it could be out of a corporate account. we saw that back in 2009,
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proliferate corporate account takeovers, hijacking of accounts. lately we've also seen distributed denial of service attacks which are really overloading your online banking so your customers can't get in. and it's massive in terms of bandwidth attacks. >> it's a little bit different from actual cyber terrorism. >> we've been planning, looking at some of the things that happened before sony like aramco where 30,000 machines remain unbootable back in 2013 -- or 2012. 2013, there were two banks in south korea, a media company, an insurance company that were attacked. the same thing happened, 3,000 machines were actually made unbootable, wiped clean. >> so what's going on here is all of the big banks are sharing in realtime the threats that they see. you've got a screen here that shows a lot of these cyber attacks in realtime. they're sharing that information with each other and then developing responses to it, is that right? >> exactly. it's really one company's incident becomes everyone else's response to detect and prevent
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that attack from being successful. >> and are you confident, as you stand here right now, that what happened to sony could not happen in the financial services industry, or are the banks just as vulnerable as sony was? >> we've been under attack for victims for years, the financial services industry. i include banks, insurance companies, stock exchanges. and integrity of the payments system and the settlements system is very important. so we've been exercising various types of attacks for years, even if they haven't occurred. destructive malware is one we exercised two years ago for payment systems and settlement systems. >> bill nelson, thanks for joining us today. >> you're welcome. thanks. >> guys, back to you. this is really a crowdsourcing effort here by the banking industry itself to share all that intel, respond in realtime and come up with solutions. they tell me they also get a lot of input here from the u.s. government as well which will tip the banking industry when they see things that might be a problem coming down the pike. >> okay, thank you very much, eamon javers.
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another look at the markets. clearly the dow up by nearly 300 points. at the height of the day, up by 309. if you do the math over today and yesterday, steve, that's nearly 600 points. early christmas gift from janet yellen. we'll be back to talk more markets and oil. stay with us. [woman] can it make a dentist appointment when my teeth are ready? [girl] can it tell the doctor how long i have to wear this thing? [man] can it tell the flight attendant to please not wake me this time? the answer is yes, it can. so, the question your customers are really asking is, can your business deliver? dad,thank you mom for said this oftprotecting my thank you for being my hero and my dad. military families are uniquely thankful for many things,
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built for business. the rally in the markets, despite the drop in crude. here is chad morgan lander of steifel. what you be tellsen nothing this rally, chad? >> i would probably be sell nothing this rally. the last 18 month, our group has been overweight risk and we went neutral about a week ago. that's based off the fact that we believe that the global economy is somewhat decelerating. u.s. growth is getting a little bit better, nonetheless, growing 2.2%. can you justify 600 points of
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dow movement based on that? >> no "snl" skit, change one word, market will be patient and takes off. perhaps spec later think over 2015, raising rate, perhaps q 3, perhaps late q 4. maybe that is the reason for the rally. >> yesterday in the 4:00 hour, jack runlg yes said it is not that we are lal leg, should have never sold a tough begin. >> you think that is the case. hold on a second. >> just quoting jack. >> it's killing me. look, you had oil prices plummet for $40, okay? that's based not only on supply that is somewhat demand-driven as well. the demand -- >> gonna push back own, chad, on that, i don't know that that's right. i saw and still see the drop in oil a positive for the united states economy and for a while here, the negative part of that story took over market sentimentment >> u.s. economy that may be positive but a reason why oil has been dropping as well and
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that's because the global economy excluding the united states, really having a hard time. look at china, china's growth, lucky to get 7%, maybe 6 1/2%, demand for fossil fuel there will be well belotion expectation. when you look at the eurozone what are we look at for growth there? half a percent, quarter perks the disinflationary trend occurring. what is happening is the feedback loop into the credit markets because ol of the oil and gas shale plays on the credit side have been coming down sharply. much my friend david here, selling retail is counting the money. >> counting the money, equipment, everything else coming, lower hum ber. >> a trillion of transferring. as a portfolio manager, kevin and myself, we run a value portfolio, we have been overweight consumer discretionary names like the walmarts of the world and t.j. maxxs of the world, but we would be short the oil and gas complex
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this inflection point. we do believe there will be a point you're going to have to switch that trade but not there yet. okay. >> that's what we are doing, telling advisors to move up the quality spectrum, pragmatic risk. >> ready to call bottom for the names. chad, great to have your thoughts on the show, talking consumer discretion, there is an iconic toy coming back home to america. we are going to have a live report from the factory itself in new england. plus, hollies queens native damon john with us for the whole show and haven't asked him about shark tank yes. i want to know what my teammate's son, why is he such a big fan of the show? talk to damon about that next.
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welcome back. does made in america really matter to consumers? one company is hoping the answer is yes, ma'am the maker of, get this lincoln logs recently bought manufacturing back to the u.s. it was in china. courtney reagan is live at the factory in maine where lincoln locks has come home. that's right, steve. i'm here at pride manufacturing in burn ham, maine and this company has been working for 17 months to bring the iconic lincoln log back to the united states after being made in china for the last 60 years and it matters, because "consumer reports" say that give the
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choice, 78% of americans would prefer to buy a product made in america versus an identical product made abroad. something the ceo, kinects, the company that makes lincoln logs, seeing also. >> families with discretionary income who are buying things during hot i day season, like our especially for young children, love to buy things that are made in america and there is no more powerful brand in the world than made in the usa. >> and walmart has pledged to spend $250 billion buying american-made products by the year 2023. the company says that, in fact, it's the second most important thing, where a product is made, tos shoppers behind price. and while it has often been more expensive to produce goods in china, these not necessarily the case every time anymore. even though 60% of consumers say that they would pay an additional 10% for american-made product, if you are in the
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market for lincoln logs, you don't have to the ceo says the surprise going to be the same as it was before when they were made in china. steve and mandy, back to you. >> thank you so much, courtney reagan. good for them. okay, damon, do you a lot of retail, right? you find the consumers really care about where the product is made? >> consume ers do care but if they have to pay a premium for it, unless it is something like italy and fashion, two rather just get a better price on it and they will deal with the fact it is made in china. but like she was just saying, prices are coming down in america and china prices are going up. so, it's much better to be made in america. >> and damon -- i was going to poll olympic, not all your cloths are made in america either? >> some are made in turkey, some made in india, some are made in america and value of making in america, nowadays with technology, people want immediate gratification, you can short the time, the quality control is there and you can give to the con sirmd nobody makes it better than america. so, that's why made in america is always better. >> dame., i holdself home from washington, come into the house
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who is on my television screen with your mug with my 14-year-old sop out there watching it. what is the attraction that you have to teenaged kids? >> you know what kids these days are opening up a comp pirptd becoming a entrepreneur and no longer up in their bedrooms just watching tv on their -- on their co computer, something we would like you would like, bringing people together and thank god, we are the kardashians of cnbc. >> something you are enormously proud of, teaching boys to a whole generation. >> like infotain.. >> is enjoyable. business theater. >> also been told to keep the lingo down a little bit. claw back. put it in language that every able can understand. >> please no ebidta, claw backs, mess mean financing. we want everybody in america to understand the simplicity of the doing business. >> thank you so much for joining us. >> thanks. >> thanks to damon john for joining us for the entire hour,
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thank you, steve, as well. catch "shark tank" every tuesday and wednesday starting at 8 p.m. on cnbc. brian is going to be back tomorrow. >> returns from texas from the permian basin. >> yes. thanks everybody for watching -- a funny photo of him. looks nothing like him. "closing bell" starts. welcome to a very special edition of the closing bell, i'm kelly evans. bill grieve lieutenant off today and we are live from the yale summit from the waldorf astoria at midtown manhattan. stocks are rocking again today, incredible two-day snap back rally, get into that and full roast other of all-star guests in the next couple of hours and that includes steve schwartzman of the blackstone grourn the former ceo of barclay's bob diamond, now the ceo of atlas merchant capital and legendary investor, jim chanos, co-fer


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