but shares of valero moving higher. key equipment, competing enterprise refinery in texas could be offline for some sometime. shares of valero up to lead the s&p 500 higher. looks like shares are up more than 3.5%. brian, over to you. >> thank you very much. >> i-want to take a look at g m garmin. mapping replacing google maps. through siri you will have turn by turn navigation. you see another leg down to that stock. just a little while ago. down almost 8%. michelle, i don't know about you, but i tried to use my ipad for directions in the car sometimes but you have to look at it. it is dangerous. if it can talk back to me, what do you need your gps for? >> very good point. >> exact there reason to have an ipad. >> i have a laptop. >> too much technology. >> i'm all spread out at once. okay. how many minutes? >> where were we? >> 15 minutes before the closing bell. negative territory by 71 points. >> how long have we talking about this? big u.s. banks bracing for downgrades from moody's. going on for a while. jamie dimo

. >> the market sector has been beat up today, and the best of the bunch today valero. it is up 7% right now. they had a loss last quarter, but they have a upgrade based on valuation. >> thank you, brian. we have 30 minutes left in the session. if you're just joining us, the major averages up bouncing blow session highs on hopes that they will extend stimulus measures. right now the dow is up 116 points. financials among the leaders today in today's advance. the banks index hitting a one month high. it is up itself about 2% today. >> bill, there is plenty of talk of the death crisis in spain, but could something like that happen in the u.s.? allen simpson is calling for fiscal reform before things get to that point. he co-chaired a federal commission charging the federal deficit, but their recommendations were shut down. he joins us right now in an exclusive interview, thank you for joining us. >> before we get into this, any thoughts on the jamie dimon testimony today? >> yes -- go ahead, was there a specific question? >> what exactly happened with the simpson-bowles p

john manly from wells fargo funds management, anthony valero and anthony chan. let me kick it off with you. your characterization of the jobs report today, what does it tell us about the economy and about tapering? >> a couple of things. it's weaker, but by no stretch of the management is it a different number. i remember doiuring the financi crisis, we had declines. this is not a bad number. we've got about 175,000 on an average. people are going to complain about part-time workers but by and large, the economy is decelerating. >> we're impatient to expect higher numbers right now. >> i think we are ball the real gdp numbers have slowed down and you should see a little bit of a slowdown, but these numbers are still suggesting we have positive growth. >> john manly, does this change your view of the stock market here? >> no. think this is a number no one's going to talk about. there was no c change here. it's still going to be slow because of the way ceos run their money. that gives you the boy ansi we're seeing today. >> all of that is fair and well, but what d

one of the factors driving up gasoline futures, valero saying it'll close. you add it that the east coast concern that is being reduced down 610,000 barrels today in the last year or so and this adds what we are seeing in gasoline. the reason, maria, we are seeing an 8% rise from the pump from a year ago, it cost me 70 bucks to fill up my suv on saturday. >> that's expensive, sharon. thank you. >>> meanwhile, apple's new eye spad costing newer to build thanks so the higher resolution screens and batteries. the 16 gigabyte wifi only pad cost there are 316 to manufacture. that's at least 21% more than it cost to build the ipad 2. the most expensive model, the 4 gig verse cost about $4 '09 to make. the components may have been upgraded but the suppliers have not changed. trquimt provides semi conductor parts. st micro electron supplies parts. and cirrus logic supplies parts. bill, you got all that. >> i got it. >>> i know how you pay for the apple ipad, you sell a stock and have money left over. we are talking numbers today. stock up 80% in the last year, up an

some real rolling over here recently as some of the big names like oil service companies, baker hughes valero, hess, going nowhere. demand has been weak. capital expenditures weak. this makes a little bit of sense. that too has been underperforming the market. you want a little bit of a referendum on health care? how about an ipo right smack in the middle of the space. mdion is going to be pricing tonight, a pretty big ipo. we'll interview the ceo tomorrow that does medical billings systems. the president has made trok nick delivery of systems a real centerpiece of his health care reform bill. $13.50 to $15.50. it hasn't happened yet but as soon as we get the numbers we'll let you know. >> thank you, bob. we've got what i think are explosive headlines coming out of court. rebecca jarvis is standing by. other people knew no sales were taking place. >> did i pascally said other people noou on top of that, he's saying madoff knew since the early '90s. here's statements coming out right now. he says i represented trades were taking place when they were not. most of the time money just went into b

imports the most oil from, you guessed it, mexico some of the top names include shell, valero and chevron. in total about 9% of daily imports, which works out to 680,000 barrels a day. i spoke to john kilgoff of again capital earlier today, who said the biggest concern is softening demand because of the impact to the global economy and taking a look at prices right now, chevron at one point was down this morning. it looked like the energy sector in general was down. we'll get an update on those prices and get back to you guys. sara, i'll send over to you. and all right, rahel, thank you very much. we've got 27 minutes to go excuse me, 17 minutes to go before the closing bell. here's where we stand in the markets. good probably for the best >> yeah, really. wrapping up the month here on a sour note. appropriate for a month in which the market is down more than 5%. down 334 right now on the dow. not too far off from session lows s&p down 1.3%. losses picking up here we'll see what happens in the final moments of trade >> you know what else is falling sharply as well this week have been bond

and that was because of the valero closing one of the large plants on the east coast in delaware city. a 210-know-barrel-per-day city permanently shut. it was only operating about 40% capacity for the last eight months or so. it's not the only plant to shut down recently. their aruba plant shut down in january and we also had sunoco in new jersey shutting down in october. so what has been going on? we've been telling you for months that refiners are having a tough time. you know it. you know what has happened to refinery run rates. they're below 80%. as a result, we're looking at really weak positions there for margins. but heating oil is actually faring a lot worse than gasoline right now, and that's because there is so much out there in floating storage and on land. supplies up about 28% versus a year ago, gasoline up about 5% from a year ago in terms of supply. when we get to the spring, and if demand starts to pick up like it did in early 2008, there is some concern there might be a little bit of shortage in capacity. that's why we saw a bit of a bid higher in gasoline today versu

public traded refiners like valero 345marath petroleum 2% and and 1.5% holly frontier big day for the energy complex back over to you >> thayou. charli there names you >> as opposed to defense, the year this has been a really, really oil is up and gas is up from 30% more than five years ago things are a little out of i can't get excite >> we do some people call t vendo no other vendor has a great positi but as people spend more monoland, there is less >> shares of growth under close. >> shares are down under 7% from a big bottom line miss that pouring a lot of first. increa production capacity also marketing and development then the push into the hemp they are ramping up medical that is causing operating to >> thank you very much we 51 minutes left of the s&p remains higher on pace only fractionall high. the nasdaq down 1/10 of 1% over 2% higher for the week and let's markets. the ceo of etn database joins us for discussion i start with you you said at the top, people are recess time closing high, up 7 to 8% >> that's why we have gone up. people have been s are pessimistic and the mar

is the worst performing sector today with significant drops for names like devin energy, occidental, valero and marathon oil coming up we'll hear highlights from sara's panel with wells fargo ceo charles scharf including whether the u.s. is heading to a recession and his latest read on the housing ma market jerome powell vowing to fight inflation speaking at the european central bank forum earlier today saying the biggest risk to the economy would be to fail to restore price stability but a soft landing still possible >> we think there are pathways for us to achieve that, to achieve the path back to 2% inflation while still retaining and sustaining a strong labor market we can do that that is our aim. there's no guarantee we can do that it's something that is going to be quite challenging >> joining us now from jeffrey's, david, how are you feeling now about the markets and about the fed's chances of this soft landing? i mean, he's not saying i feel really confident we can do it but maybe. we're still hoping >> yeah, i think his message has been very steadfast and i don't think there's much

valero up on the weak dollar today. health management, the hospital operators improve operating performance, and lower debt total. maria? >> bob, thanks very much. here we are in the fourth quarter of the year. we are talking about investing in the new period. we've got concerns persisting over the potential pullback in this market, as the market remains up strongly from the lows back in march. even as the economic data remains somewhat muted. joining us to talk about long-term investing at this moment, tom mcmannus at wells fargo advisers. great to have you on the program. what are you looking for for the fourth quarter? >> i think earnings probably set the tone and the earnings announcements, the conference calls. i think companies have managed to gain a lot of improvement by cost cutting. i think as they go out into 2010, i think they're going to need top buying for revenue growth. >> that's the crux of it, sure, we had better than expected earnings for this second quarter. now here we are waiting for the third quart

you can look at the refiners like valero and marathon, all of them on the upside today. what's hurt sing big industrial names. tied to the global economy. that's where we were talking earlier, general electric, most important name this week. i want to hear what they say about the global economy on friday because the china and asia slowdown as a concern. finally, not to bring up europe or getting anybody into a bad mood. deutsche bank hit a new low for the year today. that got a lot of commentary on the trading desk. talking about the biggest bank in the biggest and best performing economy in europe now. back to you. >> good point. are we on the cusp of a bear market? we may be if you follow the so-called ultimate death cross. >> that's from the 15-month moving average falls below the 200-month moving average. it is not a good thing for the bulls. the s&p 500 is now on the verge of hitting that mark and last time we have come this close was back in 1978. it is with that into context, japan suffered a death cross in 1988. and 14 years later we are still in the firm embrace

others have, valero only 5, 6% away from their highs we have seen recently. we will see if the oil trade, correlation, trading relationship between the two continues into the closing bell and of course into the coming weeks. it's been that way for a while, we will see if that trend continues. >> we shall, dom, thank you. >>> jeff gun lock saying a couple years ago he believes today marks a near term bottom for oil. joining us is cnbc contributor helema croft from rbc. is this a surprising one to you? >> i think we could potentially move into the 20s and stay in the 20s for a period. i'm not sure this is the bottom yet because we have iranian barrels about to hit the market pretty soon, that is a fundamental change we will be looking at. if you look at between october and now, we have a lot of additional barrels on the market, no real signs of that much softening demand. iron coming back is something we have to watch. we don't see a really bullish catalyst out there right now in the near term. >> that's the thing i keep asking people about, what would bring th

right across the board, whether you're looking at refiners like valero, some of the middle-level companies like murphy or the big guys like exxon, all up 1%, 2%, and 3%. our team covering the markets right across the board, let's go to my friend scott wapner first standing by at the nasdaq. >> all right, bob, thanks so much. the market is flat but dell is not and that's the story that i've been following throughout the day today. the stock is up 2% and take a look at the reason why today, because amtech came out and had some very positive comments about the stock. they upgraded it to buy with an $18 price target. and here's what the analyst said and why i think it's pretty significant not only for dell but for the technology sector in general. he says, "we are now more optimistic on the pc demand outlook and believe the downward mix shift has played out for the most part." interesting commentary there from broad-point amtech. the stock is up as i said about 2 1/2% today. other big moves in stocks today in terms of large cap tech, take a look at oracle. the stock is up better than 1% and it

a name like valero's getting hit today. it's still down 8.5%. perhaps an overreaction to what is coming out of the commerce department on export policy, perhaps not. where do you see opportunity across this sector? >> i think that it is an overreaction to the announcement that there is the condensate form of crude oil that's going to be able to be exported as early as august. it is a symbolic change in policy that has been in place for four decades and it could be opening the door to broader exports of oil, so, that's affecting wti prices and affecting domestic refiners. but overall, when we look at energy globally, the long-term prospects for energy stocks are very good. we look at these developing nations, china, india, countries in africa, where people are buying more and more petroleum-hungry vehicles. and until a cheaper alternative is developed, fossil fuels are going to power those engines for years to come. >> david, just to be clear, though, does your bet on the energy sector imply higher prices that u.s. consumers are going to be payin

we talk to valero, and they have shut down to refineries. >> it's very much out of the ordinary for us to shut two refineries down because of the storm. as far as the company and earnings and things like that, it's not pa big deal. this can be absorbed into our overall operations. >>. >> the stock was up hitting on extremely heavy volume. today, they said that they would need weeks to a month of this kind of shut down for it to have a material impact on earnings and we're still waiting for the storm to hit. it's a wait and see moment from here, but they expect the weather to get progressively worse. >> thank you. >>> so aside from the threat of rising gas prices, hurricane izac and the republican conventi -- isaac, and the republican national convention. they want to give control to individual states to do what they wish with energy resources in their own borders. >> it could make a bad situation like hurricane isaac worse, and our other guest disagrees. why would this plan be so bad? why would it be so much worse if the romney plan were in place? >> first, my heart and prayer goes out

it's, like you say, not just valero. they're the biggest, but then you look at marathon, philips 66, you look across the board at all the different refiners. instead of just getting that, not free, but that very low competition trade out of the bocken and marcellus as well as texas and louisiana light sweet, i think they have more competition from outside our borders that's not here yet, i'm not saying it's here yet, but it is coming, and investors are already ratcheting down their outlook as far aprofitability for the refiners. >> in the meantime, even as the energy piece is one side of it, we'll get auto sales next week. it indicates, susan, like you were saying, to what extent are u.s. consumers, to bring it back to the consumer here, able and willing to buy big-ticket goods? >> well, you know, we're starting to see an increase in credit card debt. we're starting to see loosening of some credit standards. and so, you're starting to see, i think, people starting to borrow more and moving more in that direction. it stil

well as lake charles these are just the areas to keep track of marathon, exxonmobil in bay town texas, valero has four across texas and louisiana. total and citgo and more bp, shell, and chevron removed workers from off shore rigs. the about 15% to 20% off shore production is currently off line actually not that bad b 300,000 barrels we are day on 10.8 million barrels thats why oil is not moving much right now. >> yeah. energy stocks tell will you are up nicely. to your point on oil, brian, i wonder if if, you know, what's different about this time is that the pandemic is still raging we're seeing rising prices in europe and asia. i wonder how you think about the demand picture which is starting to pick up a bit does it make this sort of supply issue that we could see in the gulf less serious or less of an impact on the price of oil >> i have to think of a clean word about demand. it is terrible jet fuel demand down still 40%, 50%. here's the other thing too h with the storms now, you have millions of people on a new lockdown, not covid-19 related, storm lockdowns. that has a subsequent hit o

look at the reversal today in tesoro and valero. i think they work but something to look at over the next couple of days. >> it's underpinning a lot of decisions people are making today. how serious a problem is it? >> certainly something we are all keeping our eye on for. the actions in china, we don't know what's going on. we know the economy is slowing quickly. we don't know if this devaluation will be controlled and not going to be this 10% or 15% move. we are all watching the china news and oil. on the flip side, i'll give you a positive. that's in my nature, right? retail sales. retail sales was very good. they beat expectations. it confirmed to me the consumer remains choosey. within retail sales you had better auto. >> choosing restaurants. >> and choosing auto, furniture, housing. they are buying. revisions there the prior months are encouraging. we are all saying lower oil. what's happening? the consumer is not using that lower oil to their advantage. they starting to use that to their advantage. that is a silver lining. >

. >>> we saw a spike in valero after epa eased standards for gasoline. that means refining companies like phillips 66 and valero won't have to spend as much in ethanol, improving those profit margins so refiners showing midday moves today. >> big movers, thank you so much. >>> yesterday eamon javers told us all about the leaks about u.s. government spying maybe taking a toll on corporate profits. today we learn the u.s. is also collecting our financial data. eamon javers with the story. >> here's another industry to pay attention to the potential impact on bottom line. wall street journal reporting this morning cia is monitoring transfers, money transfers at western based financial firms, western union in particular. wall street journal saying a lot of these transfers include data of american if they're transferring money overseas. they don't include entirely domestic transfers but overseas transfers is fair game under the patriot act. we reached out to learn more about this. one intelligence official told me today saying any activity conducted by intell

refineries still look good, as long as you have less exposure upstream some of the traditional refineries, valero which is well diversified is doing well. this is still a tax benefit for americans paying less. certainly oil prices falling along with the rest of commodities and really the whole economy right now suffering from just concerns. >> patrick, thank you very much for that >> my pleasure >>> today was meant to be half day, low volume. we had quite high volume was do you expect for the rest of this week is it hard to shake off the negativity >> i don't think anything will change between now and the end of the year. we won't get answers that's the problem >> what answers do you need? >> trade and the fed that's not an overnight solution so that's the problem. back to the whole discussion on oil. low oil, low interest rates. job market strong. those are good things for the consumer, which is 75% of our u.s. economy i actually think if the consumer can stay strong or solid, 2in te face of a dollar that's stabilizing, that's a good sign. i think it's good for the economy and you want to pick y

look at valero energy, other companies like darden. >> the yield is a furntionnction of the price. the more the price drops, the better the dividend yield looks. >> these are gainers, too. they have had strong gains at least so far this year. that's what this story is looking at. it's a great way. there are ways you can go in there and look at not just what the dividend is but overall if that's the type of company i want in my portfolio. >> story you mentioned in the introduction is interesting because it looks just at the s&p 500 but if you actually look within the industry that pays the most in dividends, it's actually private equity of all places, and these are companies that are less well known conventionally to investors at home, about you they actually make their executives the richest. steven schwartzman made a cool $570 million in dividends from blackstone just this last year. we talk about wall street compensation at the banks, but really the pockets are getting lined the most at private equity firms because of their holdings in their own shares. >> dan, do you guys come d

refiners like valero and tosoro were up. oil is down 4% but gasoline was flat. that spread between the two means that the people who do refining are going to be making more money. so today the only thing you saw green anywhere consistently was most of the big refining stocks. so right now, kelly, we've got the dow down 7 out of the last 8 trading days. we're not seeing volatility. we're seeing individual stocks move but the vix overall still sitting around 13 where it was eight or nine sessions ago when this current slide began. a little bit of complacency on the upside yesterday. complacency on the down side. in between, you have significant damage. back to you. >> that's a point about vix, bob. thank you very much for now. take a look, everybody, at shares of gm, they were also down more than 3%. china being the company's largest market. gm issuing a statement regarding the impact from the devaluation of china's currency saying, quote, we believe our exposure is limit and manageable and do not expect the deval will have a material impact on the company's finan

they were down tosoro and valero. there's action for you. >> i love it. michael block, a quick last word to you. >> yeah, with me still in the lower for longer camp, i've lite the reits here. you want to start playing it through the shopping malls, get the retail element in there, as well. i think that's an interesting trade. it's one i've been on. it's still working and it's going to work. >> thank you so much for joining us. trying to make everybody, all six of us, thank you so much. be sure to stick around and catch guy adami coming up at 5:00 p.m. one big oil stock that may have finally found a floor. can't wait to hear that. much more on the market's roller coaster ride here and which s&p stocks are in correction territory. that's straight ahead. and oil prices hitting a 6 1/2 year low. look at that 4051. will that spark a flurry of deals? you're watching cnbc, first in business worldwide. ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable n

which the european counterpart to wti and long at left two refinery stocks, specifically mentioned valero and marathon, buying cheaper prices, ie, wti prices and selling them at brent prices, bill and kelly, which is obviously a very good trade so they are positioned to benefit in a from what he sees extremely bearish conditions due to bottlenext of supply at the gulf coast. >> is that a change in view tore him, though, or a position that he's had this bearishness on oil? >> it's an interesting question, kelly. i don't think zach schreiber has ever done one of these investment conferences, a low-profile guy so we don't know about his position. he gave the impression that this is something he's used to doing and his mentor druckenmiller advised. he still thinks the sly end issues in the u.s. will keep us far end lower. >> this goes back to something that warren puff fet and charlie munger were discussing with charlie, asked charlie whether he's opposed to exporting natural oil and gas in this economy and they basically have the view deplete others first before the u.s. a lot of information

next week on deck we have results from halliburton on monday, chevron, valero and phillips 66 to name a few. >> it's going to be a busy one. rest up, morgan, thank you. >>> the price of oil a top topic at this week's forum in switzerla switzerland. the price itself is irrational if you ask me prices are supposed to be set by the marginal barrel. the marginal barrel is way higher than $30. joining us now for more brenda shaffer, an adjunct professor at georgetown university. welcome back. it's good to see you again. >> thank you. and let's just begin with these comments from aramco. are they right that the marginal barrel of oil is 30 bucks? >> not only is his statement that the oil prices irrational incorrect but the oil prices are exceptional right now. if we look at the oil price over the past 45 years it averaged $30 a barrel. so actually what was exceptional in recent years is the high oil price between 2012 and 2014. what we have now is actually a quite normal price if we look over the past decades in current dollars. >> brenda, i wonder what you might interpret out of the saudi

anadarko will be tomorrow as well, and some of the refineries like valero will be coming. i'll be interested to see what they have to say. a lot of these companies, earnings are predicated on oil being -- >> all right, bob, thank you. always start the week with minus signs off record highs. the ceo raising the bell at the new york stock exchange. and nasdaq celebrates its first anniversary at the nasdaq today. stay tuned for those earnings and a lot more coming up on the second hour of the "closing bell" with kelly evans and company. see you tomorrow, kel. >> thank you, bill. welcome to the "closing bell." i'm kelly evans. stocks declining across the board today. the dow closing lower, 77 points. the biggest decliners in that index, chevron and exxon after oil crashed below $43 a barrel in trading today. now, the s&p broadly closed down about 6.5 points, 2168 is the level there. the nasdaq was just down by 2.5. a live shot of the floor of the democratic national convention in philadelphia. baltimore mayor stephanie rawlings blake will be banging the gavel to officially kic

terms of the sector standouts, the energy stocks led the way higher in the s&p 500, think murphy oil, valero, as the best performers for that sector. on the downside, the worst performing sector, utilities today were down about 1.3% as a group on the day. in terms of some of the big companies' stories, shares of regeneron, after its new drug was approved by e.u. regulators to treat eye diseases in europe. it had already been approved in the u.s. to treat the same diseases. also shares of cbs finished up nearly 5% on the heels of their agreement with time warner cable to end a month-long blackout of programming. on the downside, microsoft, one of the biggest losers in the s&p, down after spending $7 billion to buy nokia's wireless handset business. and let's end on a few after-hours movers. linkedin getting hit by a 3% downside move on a $1 billion secondary offering. they're going to sell more shares at these higher levels, of course. and h&r block out with earnings. it was a miss, but a revenue beat. h&r block really lost about 40 cents per share versus about a 37% per share estimate. the r

let's take a look at the ones that led the stocks higher starting with valero with a big earnings beat and hess told analysts that the company is looking carefully at a proposal to break the company up, and pitney-bowes, fourth-quarter earnings might have fallen 56%, but adjusted earnings per share beat expects and jdsu bringing up the year as they posted stronger margins and revenue. best performer on the dow this week, verizon communications, but along with the winners there were also big losers. real estate investment trust of a von bay had a tough fourth quarter, incomes slumping 62% and seagate technology reporting second-quarter profits down 16% and harmon international a 20% drop in profits and the company cutting at least 500 jobs as part of restructuring. twc losing ground at its fourth-quarter profits fell 9% and constellation brands trying to block the anheuser-busch takeover of modelo. worst performer on the dow this week, merck after reporting that profits declined. maria, back for you. >> yeah, not participating in the rally, for sure. thanks. much more ahead on this edit

strong as we saw all of the groups right across the subsectors including some of the refiners like valero energy, murphy oil, and the middle-level group, and exxonmobil also to the up side today. and the problem again, maria, is we've got to get a little more market leadership here outside of the energy stocks and the financials. >> that's for sure. good point there. because we need a much more broad-based situation to really believe in this move. although 40% is certainly something to believe in, bob, from the bottom. thanks so much. see you a little later. bob piss nu. let's take a look at the other business headlines we're following tonight. projector & gam sbl selling its prescription drug business to irish drugmaker warner chillcot for 3.1 billioned. it allows p & g to focus on its consumer health care business which includes over-the-counter medicine. nokia, the world's largest cell phone maker getting into the computer business. the company is launching its first ever netbook. dubbed the booklet 3g, the netbook will use microsoft's windows software and intel chips but other details

they have lagged, so a company like valero is still interesting to us in an energy sector that probably has moved too far too fast year to date but has a lot of legs in front of it >> mike, in terms of the move in oil prices, clearly there was geopolitical premium built in. the question from here is how much those stocks give up ground if it does dissipate further from here. >> exactly i mean, they're up still tremendously, they were up month to date even though they're down 4% this week obviously coming from a position of strength. the thing to watch and you started to hear indications of maybe we're getting toward prices in the commodity where supplier discipline finally does buckle a little bit. incrementally. that's complicated by a bunch of different factors as to whether, you know, companies can really get that much more aggressive by turning on supply in these current supply chain conditions and everything, but i do think that right now, energy, the s&p energy sector has moved in lockstep with the commodities. it hasn't been an overshoot in one direction or the other >> oblox, on

in a second companies, exxonmobil shutting down at least two refineries, biggest refinery shut down, valero, shell, they are all there. that beaumont area lake charles, that's going to be the center of the storm. kind of where the m in beaumont would be, thais the direct path. you can see there, that's the really hard hit area there is a few reason why gasoline is down right now one, gasoline inventories are higher than last year and can absorb some hit to production for a while. number two, you've got refineries that are staying open only running at 80% capacity they can make up some of the slack, guys. of course, demand will drop as people stay home because of the storms first, all the ports are closed, galveston, port arthur, et cetera, so all the ships are stuck. check out this from marine.com that is amazing. the dots, red, blue, green, those are ships. if you are not in port, you have scurried over to corpus christi or the coast of mexico because laura is coming right through. hundreds or thousands of ships all running away i think that, kayla, and sara, is an in verse map of that sto

valero still up, but in the red today. >> thanks very much, josh. much more ahead on this tuesday edition of the "closing bell." a lot of money still flooding into dividend-paying companies. is that where the so-called smart money is investing? we'll take a look, next. also, still ahead, tesla ceo elan musk revs up for a key investment less than an hour from now. he may have the car of the future, but is it the stock of the future? we'll debate that. and also ahead, did you know that hollywood studios are changzing content to appease the chinese government? it's happening more than you may know. how far should u.s. business go to make sure they penetrate the chinese market? you're watching cnbc, first in business worldwide. using technis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity i

but very much off the high so far on the independent exploration of petroleum, an outsed winning and valero, refiners, noticeable weakness. not participating in the energy rally. let's go over here to what's happening with post five some the biggest moves today not come from the integrated oil companies, we're talking about offshore drillers, check out up here. this is nobel corporation. those two stocks, you can see up up about 4%, well off of their highs, two stocks with good amount of shortage there, short covering part of this rally giving back now also marathon and chesapeake as well. a whole bunch of names really driving things in the energy side right now and appetizer plate if you will of the energy stocks are still outside performers but given a lot of gains as we head to this important hour of trading. >> everyone is wondering is this one for real? can we believe these rallies, let's talk more about it with anthony grisanti. good to see you, what are you picking up there? >> thanks for having me. you know, the state on the floor the long are we stay above $30, the less likely it g