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tv   Closing Bell  CNBC  February 29, 2016 3:00pm-5:01pm EST

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stock. >> not that close. >> all right that wraps it up for this edition of "power lunch", turning mildly negatively. >> "closing bell" starts right now. don't move. sfl i'm kelly evans. >> nice to be back. i had the flu last week. my strategy every year, i never get the flu shot because everyone around me gets it and i figure i'm covered then. clearly somebody failed me this year. and i want names. >> i still didn't get mine so -- maybe we better -- >> there you are. where were we? stocks giving up modest gains within the last hour. the dow and s&p 500 are still on track to post the first monthly gains since november. oil prices had been sharply
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higher but giving back those gains. we've been me an dering much of this day. >> one stock not doing so well is valeant and michael pearson is returning from a medical absence and what that means for the company's future with the shares doin almost 10%. >> meanwhile, billionaire warren buffett, hope you saw it this morning, told us that he's still a net buyer of stocks even though there are signs the economy is wavering right now. we'll talk about whether you should be following warren buffett's investing advice. and saying privacy has its limits and security should trump privacy in matters of homeland security and michael chertoff will tell us where he stands in just a few minutes. we start with mr. buffett's joining "squawk box." here's what he said to say about where he thinks stocks are headed in the long term.
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i think you can guess. >> there's never been a time in my life -- i know what markets are going to do over a long period of time, they are going to go up. in terms of what's going to happen in a day or week or month or year even, i never have felt i knew it and never felt it was important. i will say in 10 or 20 or 30 years, i think stocks will be a lot higher than they are now. >> joining us to talk about this among other things, mark matson and keith bliss from cutoton an rick santelli. >> he makes a case for buy and hold. jack is a huge proponent of that as well. does that work for you are we in a different era? are you going to argue that? >> it works for everybody, long term every investor can be a bull. no matter how severe the downward movement of the stock
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is, in the long run they are all minor blips. no one can tell you what's going to happen in next six or 12 months, stop trying to forecast it and own not just the u.s. market but you have to be looking in europe and asia and 12,000 stocks long term then you won't have to worry what's going to happen tomorrow. >> 12,000, all right. >> keith bliss, speaking of numbers, looking at the s&p 500, we're pretty close to where we finished january even though february has been a dramatic one. quha does th what does that say? >> we built a lot of momentum over the last couple of weeks and we got one of our best indicators along that line and picked that up last week. the markets just stlruggling here. if we can't close positive for february, i have a long-term negative bias on what's going on. you'll have peaks and valerleys but we've essentially gone nowhere. some of the bears came in and tried to reassert control.
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we saw the vix pop above 20. that is a longer term indicator that shows weakness and then i always look at the russell 2000, that came in right with that move. i will tell you that on the new york, we have a billion dollar sell balance that we're dealing with right now. there's probably some indications people started selling into that. >> aren't people listening to warren buffett? >> they are. i do agree with everybody. i'm paid to try to happen what's going to happen on the market but warren is right, equities have always been the best investment and performed best, even better than gold or bonds or any other asset class. your time horizon is all important. we have lots of firms that manage money and have to be a little shorter term in their time horizon and they have to pick their entry and exist points. >> i'm curious where you would stand on that especially in light of the context that the market has been in for the last
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several years with the unprecedented intervention by the federal reserve. does buy and hold still work in that environment even? >> you can have buy and hold even during times like now. since january of 2015 you've had chicago purchasing manager under 58 of those months, under 50 tomorrow and already four in a row under 50. you can still say it. i don't know if it means anything though. they used to say that about real estate. the way i look at it, time sg quite important. if you're going to retire around the time of the credit crisis, all of those cute addages wouldn't have made a heck of af lot of difference in how much money your investment would have been worth when you need it in terms of a day or week or year, i would think those time hori n horizons are less important for billionaires but he is technically correct. i do think that this time could be different. i think when you look at the
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global debt scenario and central banks, i think there's a 2% chance there could be a world type reset. i don't think that would play well in mutual fund land, do you? >> i wonder if you're not betting against history to take that view, not to mention needing everything to go wrong like it did in 2008, to usher in a new period where stocks don't perform as they have historically. >> we're not really betting against history. during history of financial markets, real history in our lifetimes central bankers were nudg nudgers, now conducting the entire orchestra. things are significantly different. >> you've been rebalancing your client's portfolios and selling wi winners and buying value? >> it's not just buy and hold, but buy and rebalance. to an extended investor is a r adverse to equity risk, 15% in fixed income when the market
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drops you sell fixed income and buy more equities. to rick's point, 2008, 2009, small value stocks are up over 300%. if you tried to time it and panicked, you never got back in. forget trying to time it. rebalance it if it goes down. >> words to the wise. thank you all for your thoughts on today's market. let's talk about valeant pharmaceuticals tumbling. hey, meg. >> the headlines keep on coming. presumably it was the day all investors had been waiting for, mike peerson after a illness sent him on medical leave after chris ma, severe pneumonia and other complications and that role will be split between ceo and chairman. just taking the ceo role. that announcement seems to have been overshadowed by some uncertainty about the company's financials. they were going to hold the
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fourth quarter earnings call and postponing that and withdrew guidance on the return of mike pearson. the company also had scheduled some of an informal call this afternoon for 4:00 p.m. but after quote media interest they said they were not going to hold that call with analysts anymore, never intended to be a formal call. analysts said maybe that was trying to reassure the street when people were feeling uncertain about what's going on but clearly it can't deal with any more uncertainty. add to those headlines, moody's coming out saying it's reviewing valeant's ratings that performance is weaker than the previous expectation. valeant shares take a hit on all of that this afternoon. >> some of the analyst community was initially split whether these restatements may be a positive thing for the company to get out there and work through. now i wonder in light of
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everything that happened today, whether this leaves everybody with a worried tone. >> worried is the word there. folks are wondering why withdraw the guide aeps, maybe they would update it. why withdraw it completely? is there anything -- another shoe to drop behind this whole situation weighing on them for so long. a lot of uncertainty which is the last thing they need right now. >> where does that stand, that relationship with fill la dore and aftermath? that's there been an investigation? they were doing their own internal investigation. but where does is it stand in terms of the sec or fda or whatever? >> there are some congressional investigations looking into v e valeant's operations, the company received several subpoenas. they did put out preliminary information about the
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relationship, which they did shut down completely and now looking to see how that turns out. the fear seems to be will there be something else that investigations turn up beyond that. there is optimism, folks think that means the investigation didn't reveal he had wrong doing associated with that. >> that's a point. we'll see, meg. thank you very much. >> meg terrell joining us to recap the latest. those shares are down significantly but the market, the dow is down 93 points, half a percent. we see this a lot. last week we could see gains of the same size and losses of the same size. declines in the major averages today with crude oil what parz appears to be moving positively but i don't want to hang too much on the number. >> don't put that one up there. >> up next, we have former secretary of homeland security michael chertoff, weighing in on pt controversial battle with apple and whether or not the
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tech giant should be forced to give the fbi access to the shooter's iphone. plenty of attention on tomorrow that super tuesday vote but there is another election americans may want to watch that could have big ripple effects in the u.s. seem d seema has that story next. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound)
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man 1: i came as fast as i man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get? man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems.
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welcome back the do you dow 101 points, a billion dollars to sell, typically that adjusts as we go through the hours, they start to pair off but the buys and sells, but anything can happen but right now it seems to be having an impact. in fact the dow and s&p are the worst performers right now. paypal is trading higher today. jeffrey says the digital payments company is not getting enough material credit for the potential of its pay with venmo program, the program could add as much as 5.5% to paypal's earnings in 2017.
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>> if you haven't used it, wonderful. easy, yeah -- >> i thought that was a sesame street character but i wasn't sure. >> it's amazing. the case of apple versus the fbi continues to pit voices against technology interest and everyone has a point of view including warren buffett who weighed in on cnbc this morning. >> certainly if you were in the early days of september of 2001 and you were receiving credible information that something major was happening and had reason to believe it might be connected with certain people, i think that a that case security trumps privacy. but if you have people fishing around on smaller type things and low probabilities of finding things or anything like that, think privacy trumps security.
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>> well, joining us is michael chertoff, former secretary of security. always good to see you, thank you for joining us. >> good to be on. >> you're one of the few former government officials that i know of, you side with apple in this. why? >> well, first let me put it in a larger context. this a debate whether the government ought to require platforms or companies that design and build encrypted devices or networks to have a backdoor or duplicate key that is available, that covers the vast amount of people who want to encrypt data so criminals don't get it and it's ineffective because there lr other devices and platforms the bad guys can acquire overseas that will deliver them the encryption they want but meanwhile the innocent people wind up having a less secure device. this particular debate is about
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a narrower issue having to do with the ability to bypass that function in the cell phone that prevents someone from repeatedly trying different password combinations. it's important but not quite as broad as the larger issue which is being debated. >> i understand the large issue, but in a sense, if it's going to be the case that police cannot penetrate these devices for evidence, doesn't that mean they are going to -- effectively unpoliced? >> again, there's always going to be the availability of encryption and devices that can't be broken even with a backdoor or duplicate key. how do you protect the privacy of innocent people recognizing there will be a little but of a plus because you haven't built a vulnerability, but this is a nar
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rower case. >> my home doesn't feel unsecure because the government can break into my neighbor's if they suspected him of doing something wrong. >> if criminals could break into your home and kick the lock and terrorists could pick the lock, then you would feel insecure, and that's the concern here. it's not that the government is going to abuse at least the u.s. government, now a separate issue, whether foreign governments would abuse it? the issue is whether hackers or criminals could use it to steal your personal data or otherwise interfere with your life. >> let me advance this further then. what happens now in the san bernardino case, we don't get access to the shooter's device and his secret information remains secret? does that send a signal to other terrorists out there that there is going to be a safe haven in the apple iphone? >> first of all, you have to recognize that these individuals destroyed a couple of their phones. this happens to be the one they
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didn't destroy, which may tell you something. what do you do when somebody destroys a phone, you're out of luck. fortunately law enforcement and intelligence has a lot of tools out there that can be used. for example, in this case there was backup data that apple made available to the government. there are records about who called whom and who communicated with whom that are available from network providers. so-called metadata. it's not as if it's truly a case of the government going dark. it means there's one avenue closed off but many other avenues remain open. >> remain open now but apple has said they are going to try to clamp down on access to the cloud going forward. >> it's different with the cloud because you need the ability for the provide to access the cloud and want to get your date at that time from different devices, there are inherent limitations as to how far you can clamp down. if you look at both the terrorist in san bernardino and
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boston marathon bombers, they were family members. most family members talk to each other face to face. the government doesn't have the ability to get that after the fact. >> right after nef9/11, we can safely say if the government came to apple at that time and said we need access, they would have given it. there's a tremendous -- you know, move to want to put a stop to the terrorism at that time. now we're 15 years down the road, are we starting to swing the other direction more in favor of privacy over security? is that what's happening here? >> i don't think it's so much that. i think everybody degrees where the government has a lawful order they ought to be able to get anything available. what's happened is the internet has changed. vulnerabilities are greater and threats to innocent people are greater. if people are going to continue to transact business over the internet, they have to believe it's not going to be interfered with. if people start to believe when they buy something on ebay or engage in some kind of transaction, it's going to be
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comprised by criminals you'll seal a real negative impact on the u.s. economy, not to mention the tech sector. >> thank you. appreciate your time. >> thanks for joining us. >> michael chertoff. 40 minutes left in the trading session. holding now, the dow is down 107 points. that's the low of the session. >> we took a tumble there in the last couple of minutes, you mentioned how we heard there's a big sell order on the close. sometimes we see that after a tough start to the year. >> happy leap day by the way. >> happy leap day. >> we'll talk more about the economic effect later. we'll talk to investors and find out if the apple stalemate i am packed their decisions to invest in the tech giants. stocks making huge moves on this first trading day of the week after this.
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welcome back, the dow is
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do down. >> lumber liquid ators reporting a loss and centers for disease control saying people exposed of sifrnt types of flooring were three times more likely to get cancer. >> bit of a bounce there. >> we have other movers to tell you about, signet jewelers reporting better than expected quarterly erpgz and profits at its lending program. kay jewelers and zale's and jared. consol energy is selling some coal assets as part of the plan to shift to natural gas from coal and will suspend its quarterly dividend once the sale closes, stock up 10%. despite the viewing alternativ
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alternatives, comic books have never been hotter. disney's marvel has dominated feature films it is d.c. comics that that's proven more powerful than a locomotive on television sfwl one of the first of the recent comic book hits is fox's "gotham" jim gordon tries to fix the corrupt city and tonight's episode introduces a new villain but familiar name to bat man. mr. freeze. ben mckenzie plays detective gordon. >> welcome to post nine. >> thank you for having me. >> this is my first time on the floor. this is wonderful. i love it. >> this is gotham. >> it's better than most parts of gotham on the show. lights abounding, seems very safe here. >> you'll have to come down here and shoot an episode. >> we would love that. amazing. >> this is where most people seem to think the villains in gotham are.
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>> i didn't want to make the joke but -- >> seem to come from a simpler time. >> yes, it is interesting how appealing these comic book tfrn tv shows and movies continue to be. >> it is, what you see there, i'm a little bit of a student of the entertainment game. i don't know your business all that well but i think what people are responding to in terms of the viability of these shows is the depth of viewer experience. you can only have on television. features you have to wrap it up in two hours. on a television show you can make 100, 200 episodes or more. it allows these companies that own these properties to have very loyal viewers for a long period of time. >> we're am the midst of a golden age of storytelling on television right now. >> 100%. >> the simple sort of number of shows on air it's over 400 or something i saw a study recently, just it's a tidal wave
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of product and people are seeing -- you're seeing niche markets develop where if you want a super hero show, what kind of super hero show do you want? we're doing a darker one and then there's lighter ones, ones geared towards kids and women. >> the last tv show i really watched was "the oc" in college. wednesday nights, 10:00 p.m., little late by the way. >> we were risk kay. >> everyone would gather and we would watch "oc". >> bill watched the show. >> that wasn't that long ago and now it's totally different. >> when i started, 15 years ago, the networks were still in a dominant position. now it's every man and woman for him and herself so -- >> what do you make of of the explosion of different distribution channels, the netflixes and all of the streaming services that are
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competing with you guys or are they competing? >> they are competing and they are also sort of complimentary. in our case netflix owns the streaming rights to the show after a year of it being on the air. so fox owns the domestic distribution, netflix owns the streaming both domestically and internationally. they are complimentary and competitive in others. what we're seeing if i were to guess this sort of beginning stages of this all getting sorted out. there are a lot of players in the game. not all will survive most likely. and it's a fascinating time to be alive. >> you're still waiting to see if you get renewed for a third season, of course you should. you have to become commissioner some day. >> i know, ten years of this. >> that's where it's heading. >> ben, good to see you, getting ready to ring the bell, we look forward to the top of the hour as well. james gordon from "gotham", but the winter season premieres tonight on fox at 8:00 p.m.
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eastern. >> time for a cnbc news update with sue herrera. >> the white house says the united states remains committed to implementing the cease fire in syria despite violations over the weekend. josh earnest telling reporters some violations were to be expected. vote counting is drawing to a close in ireland as the two biggest parties say they will try to form their own government over the next ten days after no clear winner emerged from friday's national elections. gop front-runner donald trump's midday rally in virginia turned rowdy after it was repeatedly interrupted by protesters. >> we have a problem over here? we have a problem? get her out of here. get her out! get her out! out. get out. out. >> the tv audience for the oscars on sunday dropping to a
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seven-year low according to preliminary ratings. early data showed viewership dropping by 6% from last year. it's not clear throw whether the smaller audience was due to cause to boycott because of the absence of black nominee or some other reason perhaps. >> how exciting to have spotlight win, my perspective, i good old fashioned journalism movie and important story as well. >> did you stay up late to watch? >> i did. >> you stayed up saturday to watch steph curry. >> i long have said the super bowl and oscars should be on saturday nights. >> completely agree with you. >> somebody, please, i mean, what else are we doing on a saturday night. >> the makeup room has to put a lot more cover up on under there these days. >> thank you, sue.
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>> what did he score 51 points? >> 12 threes with tied the nba record for a single game and beat his record from the previous season with 25 games left but just the fact that they caught up to oklahoma with his three -- and iguodala sinking the two free-throws and hadn't had much of a game and go into overtime, unbelievable. >> welcome to sports center. 30 minutes to go and markets not too inspired, dow and s&p down half a percent and nasdaq a third of one percent today. a leading trader will tell us what he's watching into the close. plus, two main street investors will tell us if they are still buying these market dips and if apple is on their shopping list. that's still to come. this just got interesting. so why pause to take a pill? and why stop to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction
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we've got 25 minutes left in the trading session here. joining me -- aren't we lucky to have gordon join us here on a monday. nice to see you. >> leap year. >> happy leap day. that's what this is all about. you feel we're in the summer
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doldrums here? >> sure, we haven't had the same -- retrace february, but there will be something here at the end of the day, we're expecting some action beaming to the south side, we'll have to pay attention to it. >> do you think we'll continue to grind higher after that or another shoe to drop? >> i think first off you've got super tuesday. that -- will that bring some clarity? if we get front-runners to emerge as first ballot winners maybe able to start to focus what sectors will be affected and maybe you'll see some rotational move that way. >> jobs number on friday. >> that's always important and then you have the ecb march 10th. where is the stimulus going to come from? what is the gross profile here as we move forward? one thing that was interesting, a little decoupling between china and american markets. people are noticing that too. a lot of loose ends that have to
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be thrown around here but i think the trend has been okay lately, we'll continue to the upside. >> thank you so much, gordon. >> you've got it. >> thank you both. as the volatility continues in the markets, what is main street doing to protect their portfolios. many investors look to this man for advice, warren buffett on "squawk box" this morning. >> we're almost always a buyer in stocks and more aggressive buyer when they are going down. i feel much better when they are going down, but it's hard to think of very much months when you have buyer stocks. >> dmi tri, who is a forensic psychiatrist, good to check in with you, we want to know whether you're buying and whether you're scared at all? >> well, the shoe started
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dropping really strong in january and bad timing for me, i had a planned share in some of my shares of apple at that time. i moved -- i sold some shares and went with cash and going to move that cash into an etf, maybe spy and later around may i'll reenter another position with apple as i reride into the release of the new iphone 7. >> we typically on this round tables talk to people buying and selling individual securities and look for value or growth or whatever, you're probably more typical of the average cnbc viewer in that you trade options? >> yeah, volatility etfs out there. more sophisticated trading here. >> i guess you could call it that, yeah. >> is it a hobby? >> it's a hobby at this point but it's kind of slowly progressing to something more than that.
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i took over my -- ira she asked me to do. >> started trading options and volatilities etfs. >> not in her ira but -- >> it's wreaking havoc with wayne's portfolio but you would be embracing this. >> it's better than it was last year i'm more prepared for it now. i prefer the market to go up. i still have a portfolio where i bought a long time ago and still holding it. did sell a bunch of stuff at the beginning of the year, but 18 core stocks and still holding mutual funds and iras earn almost certainly never going to sell them now. but as far as day to day stuff as a hobby, right now it's in and out on a day to day basis, maybe i'll hold overnight. >> wayne, you mentioned some entry points for you, you mentioned the transportation stocks. we know you know they've been
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per performing since the end of 2014. what looked attractive here? >> a lot of people are -- a lot of my friends are traveling a lot more than ever, including myself. and i believe that with the fall in oil prices, profits should be fairly strong with airlines and any business that uses gasoline. so i see a lot of upside with that. >> this a double edged sword because like some of the rails and others that move that energy are -- the oil are not finding good business because of the drop in oil prices so your point is well taken but i wonder if some of that -- some of the strength you would otherwise get from the drop in oil is being taken away because of the drop in oil, you now what i mean? >> there's two sides to this. i would definitely not commit a large percentage of the portfolio to a move like that but this is something that is on the back of my mind right now. >> what about apple? when you were evaluating names
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you want to hold, have in a portfolio or add to, apple was one popular stock -- >> i like it here, somewhere around 97 right now, 95 seems to be a good support level. bounced to 93 or so in the last time. that's a better area to buy it. because of how i see the market, i wouldn't buy anything right this moment. >> you think there's another drop coming. >> i do. i think we're probably selling off some of the overbought a little bit. we'll probably have a little more of this counter trend rally up to 2,000, maybe 2050 but i think we're in a bear market. >> all right. there you are. >> wayne, good to see you. >> our retail panel day. we have a market flash on valeant. >> what do you have for us? >> shares of valeant farm cals moving sharply to the downside.
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it is under investigation by the sec. this report sending shares down by as much as 21% at the lows of the session. just a short time ago there was talk of valeant canceling an analyst call due to media interest. perhaps this may be the reason. you can see shares under a lot of pressure here down about 15.6%. we'll keep you up to date on this story. >> just talking about that. >> just asking if that was a potentially a case with this question. >> holy cow. thanks. we have 18 minutes leflt in the trading session and dow off the lows, down 87 points, attention value investors mike santoli joins us. russia's leading oil executives for tomorrow, we'll talk about what will likely top that agenda and how the meeting could play
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shares of some of the mutual fund companieses have dropped to the bargain bin. are they worth buying? that's something mike santoli has been thinking about. >> it's a big question. you expect these companies to decline at least as much as the overall markets do. their main product is management stock and bond funds when markets have a hard time, their revenue potential is positive immediately down. a lot of stocks have been hit harder than you think. legg mason down 50%, that's affiliated managers group. black rock is the bwould heel o in the group. expected earnings on on market cap relative to how much assets they manage are down on the lower end of the historical ranges. clearly the market is seeing something besides the market has been tough. fund flows have been poor. a real withdrawal from stock and
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bond funds, december and january. also, just there's a sense out there that the traditional mutual fund is a sort of endangered product category. almost like the old pc tech of finance. it's kind of caught between let's say the cloud which might be the big etf and index fund shops and the more customizable hedge funds. >> all of these names have a big etf, isn't that supposed to be the fast growing future of the world? >> etfs and traditional funds, institutional and retail and fixed income and equity. it's why it's held up better. if it went back to lows in march of 09, it traded just below 1%. right now it's at 1.2%. people think flows aren't going to come back or fees are going to be compressed. i think because the businesses themselves are still very profitable, asset management remains, if markets stabilize
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and they can show they are not going to continue to hemorrhage assets some will be buys. smaller ones, 1, 2 billion market cap companies out there will probably be ripe for some type of mop-up consolidation as happened with small broker dealers generations ago. >> you wonder then, we had two retail investors on, i'm guessing those guys aren't trading in mutual funds, they are -- >> not much, with e trades and tdamer itrades -- >> nobody is really trying to beat the market. active management has been too many people discredited and that's what they mostly try to do. indexing could get too popular as has been suggested in last couple of months. that's obviously the big question. is this a secular decline? we don't know at this point. >> thanks, mike. >> all right. >> see you soon. >> be sure to check out
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cnbc.com/pro. >> art cashin still telling it's it's $900 million to sell. dow is down 80 points right now. >> up next, march madness is coming but we're not talking hoops, we're talking markets from peter anderson. he's going to give us his forecast for march after this. v, i invest with e*trade, where investors can investigate and invest in vests... or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade.
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the dow is down 98 points as we head towards the close. peter anderson from congress wealth management. after a rocky start to the market last year then spring time came and it was off to the races again. you're expecting more volatility as we head to march, aren't you? >> i am, i talked to clients day in and day out and they also feel very unsettled about this market right now. and there doesn't seem to be any real catalyst to make us think that that's going to go away any time soon. that isn't to say you have to be negative about this. it can still pick some nice stocks, whatever happened to the highly contested trades you would do, there's no really conviction anymore in these
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trades. i would say this migts be a good time to do conviction trades. >> what do you like here? >> healthcare, for instance, that could be very volatile based on what the candidates say about health care. an animal pharmaceutical company, that probably will trade down with every negative talk we're going to have about pharmaceuticals and that might be a good entry point to buy something like that. >> until donald trump says he's going to fix the price of your pet medicine. >> that's true. maybe you're going to give him that idea today. >> are you ready to step in on energy yet? do you -- oil has been acting better here lately. >> it has, but i think until we get a real trading range of oil, new trading range, people are confused where that new trading range is. i would pos it it's anywhere from 30 to 50 bucks a barrel. once every gets settled to the new trading range, then it might be time to buy, but i would wait
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until the market kind of reassesses the trading range. we're not there yet. you can tell by the volatility. >> does it help when a guy like warren buffett gets out there and satisfies we're talking decade long holding periods but stocks are the place to hold your money. >> whatever to those? they are kind of gone. you have hedge fund trader that have to get out of names and the second they miss earnings. so i think buffett is on the right track to say let's go back to long-term trades, absolutely. >> good to see you, peter, thank you for joining us. >> we're coming back with -- do you see those attractive people walking along there. >> that's ben mckenzie -- >> the whole cast of "gotham" is going to be ringing the closing bell. are they good looking people. >> meg whitman slamming donald trump just as a new controversy involving the ku klux klan
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involves the gop front-runner. we'll talk to another ceo taking aim at another presidential candidate. you're watching cnbc, first in business worldwide. with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. and in syracuse, where imagination is in production. let us help grow your company's tomorrow - today - at business.ny.gov frank abagnale. convicted felon and con man. that was a long time ago. you know, they made a movie about it. you were shown to be quite skilled at fraud. times change. now i help catch the bad guys. me too. i help banks detect fraud by applying cognitive analytics to public financial records and social media. so if somebody said, "catch me if you can...?" we can. let's do a sequel.
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month for the major averages the dow for the month, i have to look at the monitor, finishing virtually flat. with today's telloff. for the price of oil for the month of february, we're going to finish about a gain of half a percent. even with the 3% gain and finally the 10-year yield, i suspect will have moved lower because we're down at one point and started at roughly 2%. >> it looks like the s&p and nasdaq will be lower for the month as well. >> you saw the s&p break below a moving average and in a rare break from the correlation we've seen the markets moving lower as oil maintained its gains. but we didn't get good data either here in the u.s. and poor
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data from overseas as well. even though that raised expectations for added stimulus, investors weren't buying it. volume continues to be light as it has been. we have a lot of important economic data coming up in the week ahead. investors maybe sitting on their wall lets. >> -- that jobs number, that will be the last one we see before the march fed meeting -- >> that's right. >> certainly that's important, durable goods, the beige book. >> you wonder whether super tuesday will matter. we haven't seen much impact on the markets in terms of the politics. >> i keep waiting for this to happen maybe you need solid fiction who the front-runners are. maybe the rhetoric about the concerns about potential policy and et cetera will have more of an impact but we haven't seen it yet. >> thanks, mary. the sell and balance that art cashin having an impact, with
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the dow now down 120 points. as we mentioned, the very attractive cast from "gotham" is ringing the closing bell here at the new york stock exchange and at the nasdaq it's black rock's ishares. i'll see you tomorrow, kel. [ bell ringing ] >> thank you, bill. welcome to "closing bell." i'm kelly evans. here's how we're wrapping up the day on wall street. let's begin with the session today, the dow going out on the lows, about 129 points on close here, call it 128. we heard there was big sell imbalance and that seemed to push us even lower from where we stood into the close. the dow down 127 points. it is higher for the month though it needed to close above 16,466. it did that and it's the only one of the three averages on the screen which is in the green to the month of february.
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the s&p down 16 points, 1932. it opened at 1940 for the month. the nasdaq down 32 points, closing at 4557, below 4613 where we opened february. two out of three in the red for this february. joining today's potential we have our own mike santoli and susan ox from the new american foundation. for more on the market action, michael joining s from mfs and tim seymour. mr. santoli this will make the headlines complicated to write. >> not only that, complicating today's action as was mentioned, oil up, actually high yield credit was firm today. often means a green light for stocks to go up. stocks were much more listless, seemingly a sell after a great two-week rally type dynamic at the end of the month. it wasn't necessarily a wash out. up and down stocks were about even. we rallied up to this level and
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everyone has been watching, it's either the obvious place to reverse lower and resume the down trend or to kind of rest for a while. both of those cases can be made after today's session. >> i'll double check this, but for the s&p i think we're down three consecutive months for the first time since 2011. >> that sounds right. i would say listless felt like the word for today. we had bad news out of the rest of the world, deflation in the eurozone and bad moves in china, producing capital requirements reserve requirements for fifth time in 12 months. the markets there are down significantly still. and then the markets here didn't react much. i think we're in a wait and see hold. >> the downside is surprising the chicago pmi. you can't shrug it off. it did interrupt this trend of better than expected domestic data. we'll see if that continues tomorrow. >> tim, what would you add to that? what are you watching here as we head into march to figure out what direction the market is going to go? >> there's a ton of mac co-data
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and central banks taken out of the equation so equities were allowed to go higher. if i look into friday's payroll number, there's asymmetric risks. i think a very, very strong payroll number which 175 or north there of where people are coming in, could put people concerned about the fed, as much as you want to say chicago pmi a volatile series and that's something i might shrug off. a stronger payroll number on friday means the fed is someone we have too worry about. tonight we have chicago pmi, you get a horrendous number out of china and people would be even more concerned. puts more pressure back possibly on banks but it's a case where equities had such a good run, and all day the yen was trading stronger. that's unwind of capital carry trade and that says markets were risking off already earlier today. >> we'll come back to that in just a moment. mike, thanks for joining us, we heard a couple of people mention
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credit and high yield in particular, having an okay session today. what are you doing with this market? >> well, the way we think of high yield today for investors looking for yield, whether that be relative to fixed income or looking at yield relative to the equity markets and seen the higher yield segments which have outperformed, we think investor should be looking at high yield. we think there's little risk of recession and strength in the high yield market is 7.5%. you're getting equity like risk with a current yield of 9%. in year to date, the high yield markets outperformed equities by 3% because of the current yield. we like the high yield market. i wouldn't argue there's a lost near-term volatility today, i think it's priced in and investors have to ignore it and think about rerisking their portfolios. >> i guess the big question, even if you don't get a technical us recession, the parts of the high yield market
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that have had as much trouble, they do seem subject to these maturity risks and can we roll over the debt and these financial dynamics that don't bleed into a main street recession or not. >> the rollover risk for the market doesn't occur within the next couple of years. most of the companies term data over the next several years and rollover exists on an out year basis. what i would say, that spretd at 7.5%, if you look at the recover rate in bankruptcy, you assume that recovery rate, the market is pricing in a 6 to 6.5% default rate. current rate is 3.5%. we think it's likely to stay low. ir respective of negative things in the marketplace, we think they are priced in. >> here's another one susan, super tuesday. >> huge, it turns out there is kinds of a historic market effect where the market tends to trade under pressure and five sessions into super tuesday. if the consensus candidate
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emerges front of the pack, then wall street feels it has its arms around the narrative, maybe into the next four years. and then the rally can pick back up. what happens this time around? >> you know, i always say the thing the markets want most is certaintity. they want to know how bad and who's making it bad. then i can find my way to price around it. this election has been so unpredictable, the entire way through. i mean, people have been discounting donald trump and discounting bernie sanders, there's been no way to get your arms around this thing. i think super tuesday could provide a glimmer of hope but i would say don't get too comfortable yet. even if it starts to look like trump and hillary clinton are going to be the runners and nominees, there's so many surprises and it's a long time till november. >> if trump is in front of the pack tim, what are traders saying about it? >> people are looking at this from all sides, i have to agree, it's tough to handicap super tuesday's impact on markets here. people are shrugging it off
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almost in disbelief. donald trump is someone people can say it good for markets but if he raises much broader concerns about either the politics and geopolitics of our country, it's something we're greater unsure of. there's no way markets are trading super tuesday data, no way you can. this is ultimately a case where markets got ahead of themselves, these are technical. the russell bounces off and you look at even where oil is trading, a very technical range after a very big move. that's what markets are going on. we need more information. it's a side ways market where your range bound. >> do you agree? >> i agree that we're not going to get any sense of certainty after tomorrow. mostly because even if donald trump does actually have commanding wins across the board, his own party is looking for ways to stop him. there's no way this gets settled and i think there's no way that the unsettle d disdance about the what the populist is saying and what the ee leets want,
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that's nothing go not going to change. i don't think we trade off of that but i think it's an overlay of kind of nervousness that surrounds the whole thing. >> mike, any thoughts on it? >> normally the market doesn't really focus on the election until after labor day. i think you may see day to day volatility as candidates emerge. i think we'll have to be well into the fall to understand what's going to happen with congress as well. two candidates and some sense of what's going on with the senate and house. i don't think we'll know for a long period of time. >> i think it was dow who settle ld the case it was previously hoping would go to to court and saw the vacancy now and felt it was the right thing to do instead to settle that. every different branch here is casting doubt on what actually will happen over the next couple of months. just want to quickly mention oil today. what was the significance of fact it was kind of trading higher in the broad market broadly was moving lower? >> i do not know. to be honest, as long as oil has
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stayed a couple of dollars or few dollars above its lows, it gives stocks freedom to do what they are going to do otherwise. banks were the weight on the overall equity market and they were trading down because the yield curve flattened. i think we loosened p that tejer. >> let's get straight to meg with more on valeant. >> stocks dropping even further today after an undy closed probe by the sec. multiple fronts from congress and other organizations, bloomberg and others reporting that there is an undisclosed investigation into valeant by the sec. we have not heard back yet to confirm that. but again, folks saying given everyone that's been going on this year and late last year with valeant, it's not surprising that the sec would be looking into it but that weighing even further on the shares today. >> meg, thank you.
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based on some of its biggest holdings, pershing square down $280 million and based on the interday drop in holdings from the most recent filings, there's been a ton of wealth destruction in this name. i wonder given how how today itself unfolded, what they are thinking. >> as meg just said, really you would almost expect as a pro forma matter the sec would be looking into this on some level. i feel like they loflt a lot of reasons to believe that this was a contained problem. with the ceo coming back, you had the conference call scheduled and earnings pulled off the calendar. all of these things that said we don't know if they have it together. that really was the big question. >> tim seymour? >> that's the state of this market environment. the entire biotech space, where you see political linkage.
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and i think with valeant, why do you need to be in the stock not only with the inherent business model but if there's i am propriety that's a no touch but that existed even before today and gets you back into the market playbook, a lot -- this is not a high momentum stock bumt the stocks that were under the microscope or the high momentum stocks are ones that you think you stay out of the way of. after a good run, if anything those are the ones that should be faded the hardest. >> down 32% this year. meg, i'm wondering when we are expected to hear from the company again? >> that's a great question, kelly. they had postponed their earnings call due this morning then said they would have an informal call about just sellside analysts then they canceled that call saying it wasn't supposed to be a formal thing. they have not set the date for the earnings call and folks are wondering when we'll see their 10 k as well. no real word yet. >> we're all ears, thanks for
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joining us with the very latest at this hour. thanks everybody for joining us to talk markets today. be sure to stick around and see tim seymour at 5:00 talking to carter worth saying a number of stocks have entered the quote/unquote kill zone. russia was a major player behind the decision to free oil o output. putin summoning executives to a meeting toemg. when it comes to the economy, deutsche bank chief explains why if he should listen to the fed story and not the markets.
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welcome back, we were just talking about elections here but moderates in iran winning majority in that country's parliament. what does it mean for the global markets and u.s. relations? seema is working that angle for us now. >> the outcome of iran's election is seen as a big win for global business as the moderates which posted substantial gains have been campaigning for stronger relations with west and the answer to increased foreign
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investment. you're raise i canthis will adv implement igs of the iran pe troel yum contract and boom for iran's economy sh has been suffering from sanctions and corruption and lower oil prices and could be a benefit to the european and asian companies looking to do business in iran. keep in mind, while president rowhani's moderates beat out many opponents, iran is still led by an idealogical conservative supreme leader, ayatolla khomeini. also responsible for electing a supreme leader will pick a more moderate successor to khomeini when the time comes, which could redefine the role of global politics and its relationship with the west, which has been marked by great tension over a significant amount of years. this election could potentially have greater implications for
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not just the middle east but for the west as well, kelly. >> seema, thank you. are people too much of how mod ral these characters are? >> when you think about what's happening in our country where people are shifting towards the extreme positions -- >> i think ultimately it lays a groundwork for down the road. john kerry talks about what happens a decade from now and this sets the stage nice lr for politically what could be going on in iran a year from now. >> we have putin calling for a meeting with top managers tomorrow. saying it might be why oil had a bid today and global oil markets and low oil prices will be on his agenda. what does this mean for oil markets? we're joined by georgetown university professor brenda shaffer and john busscy of the
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wall street journal. is this a routine thing? are people expecting too much? >> i was talking with nathan hodge, our moscow bureau chief. he calls it a gesture without substance. they are probably going to be talking about the reduction in export duties on oil that putin had initially signaled but says may not happened and as a result the oil companies are going to have to continue to pay taxes to the government. you know his economy is in very, very bad shape. they are in recession. he's got two wars going overseas and protests at home, he needs the money. the other issue he may be talking with the companies about is privatization, he raised that possibility as well. no one is holding that out as a likelihood for all sorts of reasons, including that he doesn't want to lose control of the companies. >> brenda, what about this whole idea of freezing output? is that something you expect on the agenda tomorrow and how realistic is something like
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that? >> the russians have learned the trick, you announce a freeze or cut or meeting and the price jumps up as we saw today. already a result of these different announcements. i am sure at the end of the meeting, even though there will not be a talk at home with the different oil companies about a cut, there will be some kind of announcement that alludes to a cut and actually can add momentum to the price rise. i think they did he haefinitely the trick. >> it does seem like there's some theatrics to this. are we looking at wishful trading, and there's no real substance behind it? >> that's a nice expression. take the idea of a price freeze. the price shot up significantly for about four days, brought in tens and millions of dollars of income into saudi arabia into
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russia. even the freeze at january rates, january russian production was the post soviet high. over since 1991 their highest month of production. why not freeze that. that's something that probably in february and march will be lower than the freeze in january. but yes, you're right, the market just responded to it. i think it is in a sense very nice expression of the wishful trading. >> we already hash tagged it. >> >> john, i wonder if setting aside the particulars of this meeting, whether putin and russia and oil industry there has maybe can be seen to have weathered this, this downturn? if prices of oil and natural gas maybe at or near lows without necessarily further dire consequences and they've weathered the sanctions from two years ago, was this the two hard years putin promises people coming to an end relatively soon? >> i don't think so. that's a good question, mike. i don't think they are coming to
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an end. you're seeing protests increasing in russia. they had a budget that was deviced based on $50 a barrel oil. it's at 30 and 31 now. the price freeze or production freeze rather from january didn't happen. they negotiated that with the saudis and there was discussion of it at least. it hasn't happened and iran is coming online and saudis are not going to ced exe market shade t the iranians. it's not looking like it's going the way putin would want it to. >> i have a different take. we shouldn't have wishful policies, vladimir putin came to power when there were $12 billion in the currency reserves of russia and now $350 reserves, oil was at $9 a barrel and now it's still trading between in the past months between 30 and $38. and at the same time, the
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sanctions up for renewal in june with the state europe is in and its need also for trade with russia, it's not clear when these sanctions are sustainable. we aren't seeing changes in russian policies, no connection between their economic situation and changes in foreign policy. >> we'll see then again if there's disappointment in the oil markets which priced this in. thank you for joining us. good to see you both. >> is the u.s. economy on the verge of another recession? i get asked all the time in hallways in the gym, or are those fears being overblown? deutsche bank chief international economist weighs in next and more ceos are taking on some of the leading candidates, we'll hear from one of those executives later on "the closing bell."
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welcome back. a couple of earnings to get to. >> workday, the cloud based services company, reporting a narrower than expected loss for the quarter, loss of run cent, revenue slightly beating expectations at $323 million. but the q1 guidance a bit light. fiscal 2017 guidance is inline with estimates. the stock has been under pressure after hours down about 3/4%. if you look at the year to date chart, down over 25% due to the broader tech sell-off we've been seeing. also want to point your
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attention to diplomats pharma, that stock is sinking, better than 15%. reporting a beat on earnings and revenue, revenue of $6987 million versus the estimate of 970 million but their earnings guidance a bit light for 2016 and that seems to be what the stock is reacting to. diplomat pharma down. >> to the point of work day, we saw when sales force report d its results, the fact they sold off having an impact. >> it's way down from its highs above 90 last year. bumt the entire space seems to be under a lot of scrutiny at this point. i do think you want to hear exactly how they are saying the rest of the year will play out. >> those shares down just fractionally. markets bouncing around today. we're still talking about the disconnect between what the market is seeing and the feds seem to be seeing, chief
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economic economist at deutsche bank. what's the disconnect? >> the fed continues to say that the macro data is okay but the market says you had interest rates so low for so long stock prices are too elevated and there's too much risk and asset prices are too overvalued and prices have to come down. it's a very different -- economics text book versus finance textbook. >> i understand these things are run up and they are somewhat expensive, but or saying we need to be paying more attention to what the fed says. >> the market is overpricing many risks and the more it's overpricing -- it's difficult to quantify what china and brexit, how do you get a handle on this? ironically it was easier to quantify what a higher dollar meant but we're fading the
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dollar and oil story and starting to look about risks that are very difficult to handle and therefore the market is saying there has got to be a negative. >> if the market were to take the fed on face value and say the indicators that we loork at that are most important to us about the u.s. economy are looking better and therefore we think we can raise rates, they might not be all that friendly to the corporate economy and corporate profits and what investors care most about. is there that possibility? >> absolutely. that's why the corporates have been hard hit by lower oil and higher dollar for quite some time. >> and higher labor costs perhaps. >> absolutely, those issues in the corporate sector matter and for the fed the picture is different. last friday we got numbers showing both consumption and inflation are trending higher. the fed is saying macro data is okay but the market is saying there's some risks that they could become more problematic down the road. >> one of the things janet yellen has consistently since she got into this position said is i'm looking at wage growth.
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she's looking at inflation but very specifically wage growth. we got a good wage number last month. it was up half a percent. but i don't know anybody thinks we're going to continue orn that kind of tra jekt tri. if that levels off, do you think the fed starts to reconsider where they are going? >> absolutely, that's why the headache for the fed that numbers are moving in the right direction and wages and inflation, but some of the leading indicators and high yield spreads are wider. as the cost of capital has gone up it should create some slowing in the economy, the question is is the fed right saying we're good enough but next we'll get that that slow down. >> we have to go but if the fed will be more lucky than good in this case -- >> certainly a big amount of luck going into this. >> if britain does or doesn't exit from the eu, then sure we can look back and say there was no reason to be worried but the fears that wall street has are genuine. it's just that, they are trying
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to discount something and by definition that doesn't guarantee it's going to happen. >> absolutely, that's why risks come and go and sometimes we have no idea how risky some things are and other times we'll say this risk may be low, oil price wasn't that bad, we didn't get a recession 19 months into falling oil price. maybe other stories are coming in and they are not upside, still a lot of downside risk which the fed also recognizes. >> a lot will hang on the jobs report on friday. >> absolutely. >> time for a cnbc news update with sue herrera. >> here's what's happening this hour. four students were hurt after a shooting at an ohio high school. police say a 14-year-old student open fire inside the madison junior/senior high school cafeteria and shooter was taken into custody and injuries to the students are nonlife threatening. an amtrak train bound for bakers field was shot at by what officials believe was a pellet
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gun. meantime republican presidential candidate ted cruz campaigning in texas trying to defend his home turf. he told reporters in dallas he's confident his chances of winning the state's primaries. during a midday rally, cruz continued to attack donald trump as a fake conservative, his words. a new study released by the aarp finds the average cost for a one year supply of a prescription drug doubled in just seven years to more than $11,000. that's about 3/4 of the average annual social security benefit. that's the news update. back to you. >> thank you so much. our sue herrera. it only happens once every four years but leap day does have big economic costs, details are coming up. plus meg whitman says donald trump is unfitd to be president. she's not the only tech ceo weighing in. we'll hear from one blasting bernie sanders over his plan to raise taxes on successful
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>> time for the market rapid recap. what started out as modest gains
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went south in a hurry. a sharp turnaround during last two hours of trading, despite the set back, it did close out february in the green. first positive november since november. the nasdaq posting their third consecutive monthly declines. stocks may have struggled today but oil prices actually rallied and crude up 3% to settle at nearly $34 a barrel. super tuesday is tomorrow. and donald trump and hillary clinton lead respective parties in the polls. john harwood joins us with a preview of the big day. >> you could say the republican race is down to the wire and also say it's falling into the toilet with donald trump ridiculing little marco and lying ted and cruz and rubio are swinging wildly bark. cruz compares trump to pt barnup and connections to the mafia and rubio ripped his weekend are
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refusal to condemn the kkk. >> rehe refused to criticize the ku klux klan. this morning on the "today" show he blamed it on a bad ear piece, he couldn't hear the question. i don't care how bad it is, ku klux klan comes through very clearly. >> to the alarm of republican and business leaders mitt romney called trump's stance disqualifying and disgusting and meg whitman called him a dishonest demagogue. 11 states vote tomorrow. check out the new cnn poll showing trump with 49% more than double any rivals. new university polls show he has double digit leads in alabama and oklahoma and one point behind. if trump wins there and across the board on super tuesday, the realistic hopes for ted cruz and entire republican field may go away, kelly. >> it will be so fascinating to
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see what happens tomorrow. ceos have been quiet during much of the early primaries but speaking out about presidential candidates in time for super tuesday, when more than half of the delegates need are at stake. meg whitman, the national finance co-chair for chris christie's campaign, calling it an astonishing display of opportunism and said trump is unfit for the white house. and an op-ed in fortune entitled dear bernie sanders, sorry, i'm the problem with america. rob, it's great to have you here. i guess before you get into details of what you were saying to bernie sanders, any thoughts into super tuesday as a ceo about what's at stake with this campaign? >> i think my only thought is that i wish we had a different batch of candidates on both sides. i'm not that happy with what i see. >> why?
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we hear from plenty of people who support a candidate like donald trump, and say listen, he's not perfect but he's going to get out there and fight for this country. he understands business, going to make america great again. what is going on? what are you thinking through here? why doesn't that resonate with you? >> i think part of the problem is that as you have seen politics become more polarized. people who run businesses have struggled with is the lack of legislation that gets passed and people aren't pragmatic anymore, we don't get a lot done because everybody is so polarized. i think it makes everybody cling to their one or two issues that are most important to them and really try to push for those. that makes a very fragmented electorate. >> your own life experiences kind of a test amount to what you think is and isn't working in the country right now. you said in your open-ed piece, i agree with bernie sanders it is rigged, but rigged how
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exactly? >> well, i don't know, the way i was raised, my dad taught me from a very early age, yes, the economy is rigged, there are certain people who will always have more than you. life is not fair, it's very much like playing poker. everybody gets different hands but you still have to play the hand you're dealt the best you can. and that's what's important. and so you know, i wrote the piece because i was a little bit upset at people like me being sort of blamed for a lot of problems in the united states. i think this is a great country and there should be more people who can put their heads down and work hard. when you tell people that they are victims, that's when they really struggle and don't have the right mindset. >> rob, you in response to a lot of criticism for this column you wrote a follow-up piece or blog post clarifying that you weren't talking about kind of the structural i am pediments that certain low income people face that you were talking about an elite level of college kids who
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are in that millennial, i don't want to work that hard phase. do you want to elaborate? >> i got a lot of comments all across the board when you write a piece like that. but the biggest comment i got was people saying hey, look, college is way more expensive than it used to be when you went to score, 28 years ago. so i did write a response to that to journal my thoughts about what you could do. my piece wasn't meant to say anything bad about the people who grew up poor or anything like that. but i hire a lot of mill len yans or interview a lot of millennials, a lot of people have a similar pattern, massively in debt. studly something not very useful and don't have work experience, not even at the restaurant. they haven't done anything, they goofed off and want to enjoy the college experience, which is fine and great, but i personally think you shouldn't do that unless you can afford to do that. you should focus on being self-sufficient. >> saving your first 25 grand to
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start a business that failed and starting two more and going door to door to start next one while taking vacation days at the other ones, you haven't seen the classic tv shows people like to discuss of sopranos and breaking bad and this stuff, point being it's not easy out there to start a business and run a successful one. you want to tell us who you would endorse at this point? >> you know, i don't know. i was a rand paul guy, he's out of the race, i'm going to see if bloomberg gets in and what shakes out before i make a decision. >> keep us posted. thank you for joining us. >> thanks for having me. >> rob may. >> let's send it over to seema mody, we're watching marathon oil announcing a secondary offering of 135 million shares of common stock, marathon oil intends to use the net proceeds of this proposed offering to strengthen the balance sheet and corporate purposes including funding a portion of its capital
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program. this comes after the company recently announced a reduction in its cap exby 50%. and disappointing earnings due in part to the drop in commodity prices. we're looking at shares of marathon down about 3.8%. as you know, down significantly year to date as well. >> thank you. mike, the secondaries continue a pace. >> this is a drum beat. this is going to be a feature of this market for a while. they have to raise equity. it's going to be short term bad news, doing it at low valuations or prices. the market does absorb it now that oil is stabilized. it's how you have to restructure. >> you recognize her from movies like "sleepless in seattle", rita wilson joins us. it happens once every four years today, february 29th, we'll talk about the i mpacts o
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the economy next. cnbc, first in business worldwide. oh, look at you, so great to see you! none of this works. come on in.
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ngo to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com. today is leap day. what's the economic value of an extra day on the calendar? >> a lot of pros and cons. if you took it normally without any changes for the things that we'll talk about in a second, it would be worth $50 billion, that's what one extra day of gdp is and more than four states, their entire gdp. a big impact in you don't do it
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right. if we're salaried employee, you don't get any extra pay for coming to work but if you have to pay for gas or pay a toll or transportation or for food, then you end up losing money for a salary you didn't get. think about the flip side, if you're an hourly worker, you've got an extra day of earnings and let's say you walk to work, you didn't have to spend anything. there are adjustments but it's not clear who's winning and losing. think about your bills, an tremendous bill you used more electricity, cable bill, netflix or insurance and mortgage, those are flat. you didn't pay anything more. it's not worth a full $50 billion, it's worth something and that's where all of the adjustments get interesting. we know gdp makes an adjustment but we don't know if it's too much or too little. china doesn't make an adjustment, so in 2013, they miss their gdp estimates by a third of a percentage point and everyone wondered what happened and it turns out because they didn't adjust for having an extra day. if you mess up that one
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percentage point in a quarter, it annualizes to 4% per year. >> my favorite out of the uk of course, which is like, wait a minute if we're not getting paid more, we should stay home the next leap year, leap day. >> a labor issue automatically. we don't we add one minute to every single day and get rid of leap year? >> then the sun light and 3:00 to 5:00 p.m. may be darkness and light some days. >> it would definitely happen. >> wouldn't take that long, 60 days would be an hour, pretty soon it would be out of whack pretty fast. >> eric, thank you very much. let's see, are we going back to headquarters here? we're going to the tease, she's tackled major roles and big and smoel screens but now taking her talents to the clubs, rita wilson joins us to discuss her second career as a singer. and we'll get her take on last night's oscars maybe. we'll be right back.
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professor richard thaler. you are called the father of behavioral economics. i've been called a lot of things. i have read all of your books. did you learn anything? i learned that humans are complicated. we're emotional. absent-minded. and we make some really bad decisions. my trade-off analytics can help companies make better decisions, but i am still learning what makes people tick. what makes you tick watson? natural language processing, reasoning algorithms, statistical parsing. now you are just showing off.
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are. welcome back with some more breaking news out of valeant. meg? >> reporter: bloomberg and
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others were reporting valeant had an undisclosed investigation by the s.e.c. and they are confirming in the fourth quarter of 2015 it says with respect to the s.e.c. investigation the company confirmed it received a subpoena from the s.e.c. in the fourth quarter of 2015 and in the normal course would have included this disclosure in its 2015 10-k and say they do not have further detail, this from an outside spokesperson for valeant. confirming the new investigation subpoena from the s.e.c. in the fourth quarter. back for you. >> meg, just to make sure i'm following they are saying we wouldn't release this news -- we wouldn't release word of this notice when we got it. we would wait and put it in our 10-k. >> reporter: they say they got this in the fourth quarter of 2015 and would have put in their 10-k. same thing with verizon. got the subpoena in november i think and the stock is down on disclosure of it today. >> mike? >> it's a legal and judgment call saying is this material today or something we have to package in with all the other
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legal proceedings and like that in the filing and since it was an annual filing there's a long lead time before they actually put that out. >> it does seem, meg, by the share reaction that investors at least seem to find it material. >> absolutely. >> the shares down about 18% after hours on the news. meg, thank you. up next, actress rita wilson will weigh in on last night's oscars and a second career as a singer and barclay ceo jes staley will be live on "squawk box" tomorrow at 6:00 a.m. eastern time. don't miss it.
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apple faces off against the fed. the issue, privacy. a closer look from inside the hearings with representative jim jordan. "squawk alley" tomorrow at 11:00 a.m. eastern cnbc. welcome back. often on wall street traders are talking about loafing it all behind for something else. if they node a role model actress rita wilson is a great choice, familiar face to movie an tv fans show's made the move to music and is releasing her second album on march 11th, this one self-titled and kicking off a concert tour tomorrow night at care carlisle and welcome rita wilson to "closing bell." >> pleasure to be here. >> ten years ago you were in a movie was "beautiful ohio" and written by the director of "spotlight" which won for best
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film last night. >> i remember asking him questions on "beautiful ohio" because i wanted to pick his brain. very exciting to see him win that last night. >> can you tell when somebody has that talent? do they stand out from a crowd, even in a place like hollywood? >> sometimes people stand out for the wrong reason and doesn't mean that they don't have talent. so there's really not an indicative trait. >> probably a loaded question. you made the move. made the move from acting to music, why? >> i would say it's not necessarily that i made the move, but i think as artists and you're a creative person we're all able to do different things hand music has always been a first love of mine but never really something that i thought i could do professionally because you're just scared to death. everybody is afraid to take chances. i mean, you guys know. you're dealing with risk every day. >> yeah. >> but it's really something that i feel like if i didn't do it, it was going to hurt me, like i -- >> on the inside. >> exactly. >> susan? >> cafe carlisle is an intimate
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setting. the stable is real small. >> yes. >> how does it compare to acting and the connection you're trying to make with the audience and how exposed you? >> i love perform live and i low of performing with audiences whether a broadway play or an intimate setting like the cafe carlisle. i love the audience because i feel them and i understand sort of like i get energy from them. what kind of mood are they in and you respond to them and it's like a wonderful symbiotic relationship and you play with each other so live per forming i've always loved. >> we showed an image of the front of what must be your c.d. if there was going to be a c.d. how do you spell music right now. >> obviously it shows. >> look at me. i'm down here at the stock exchange. come on, people. >> look, here's the thing. i really believe that's an excellent question, but i really believe that women are a huge demographic buying music and
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expendable income and i really feel like if people want to -- it's like if you can say to a woman this is an album for you because for me it's been my experiences over the last couple of years, i'm hoping people will buy is, a, because the music is good, but i think the story telling will maybe be something that they will find familiar in their own life's experiences. >> did you write a lot of this material yourself and i would love to know how did it all kind of originate? was it that you would write lyrics or did you have a tune in your head or just decide i'm going to the studio and get these people around me and we're just going to make something? >> it's so interesting how music is written and i did co-write everything on the album, but each time it was a different experience, so sometimes i came in with a song title or sometimes an idea of a theme of something i wanted to write about, something a co-writer would come in with a melody and on a song called joby that i -- on joni that i wrote about joni
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mitchell, i was inspired by seeing an american masters special on her and her music is so important to me. everything is different but i often described it sort of like this. songwriting is like falling in love with with a complete stranger, stripping naked emotionally, having musical intercourse and giving birth to a beautiful song baby. >> well. >> on that case. >> it's sort of sexy and intimate and you can't fake it. you have to really be real and authentic and truthful in that songwriting experience. if you're not going to dig deep it's not worth it. >> what's it like at home? have you ever felt -- >> are you asking what's it like at home? i just told you. musical intercourse and you go there. >> the next question, do you ever hesitate to write about an experience that might be too personal because people know you so well? >> that's what happens when you're an actor and an artist.
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it's like you are going to write about things that are personal and when you're co-writing you're having one of the other co-writer's impression of that experience or theme, too. so hopefully it is personal. >> yeah. >> because you don't want it to be, you know, something that's just generic. >> rita, thanks so much for joining us. >> thanks for having me. >> the album, as they say, drops march 11. that does it for this show. "fast money" begins right now. thanks, kelly. "fast money" does start right now. live from the nasdaq market site overlooking new york city's sometimes square i'm melissa lele lee. tonight on "fast" you may think it's been a tough year on stock and the biggest bull on wall street say traders are missing something big for the rally and tells us why he thinks stocks could hit new all-time highs and in honor of leap year, the stock you can own for the next four years and a top technician says one group of stocks has

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