Transcripts For CNBC Closing Bell 20140129

Are across the major indexes. The dow the worst performer today, off 200 points. Thats roughly session lows here. A lot of that though we should mention is boeing. That company reporting earnings that were better than expected but guidance for 2014 that was weak, its contributing about 50, probably closer to 60 or 70 points now of the slide were seeing on the index. Here is a look at the other indexes. We have the nasdaq which is off about 48 points at this hour. Some of the big tech names weighing on it, while biotech doing a little better. Finally the s p 500, this is one to watch. Its off about 19 points, 1773. 1770 and 1765 have been some of the key levels of support, simon, people are watching closely. Its quite clear were losing ground as we head towards the end of the session. Lets talk about the Market Action and that decision from the Federal Reserve. Joining us now, gina sanchez, Nathan Bachrach from financial network. Keith fitzgerald is here from money map press, and ron weiner from rdm financial and Steve Liesman and rick sansantelli. Gina, let me kick off with you. Kiven that t given that the fed has done exactly what we thought it would do, what do you think of the Market Reaction . I dont think the market is reacting to the fed. This was obviously kicked off ahead of the feds decision. They did exactly what everybody was expecting. Anything different actually should have sparked a reaction. So really this is about nervousness i think going into the earnings season. We knew q4 was going to be a challenge and i think that really we have to wait until the q4 earnings season dust settles. Nathan, whats your take . My take is theres three great lies, kelly. The check is in the mail, ill call you, and tapering was priced into this market. There was no way tapering was priced in. We dont know how to analyze the statistic. Inventories when people were freezing and they cant go out, truck sales are roaring and yet nobody wants to put a dishwasher on the back of their truck when its minus 20 below. I think were going to go through the great repricing and the great reassessment and thats happening right now. Where does that repricing take us to . Its going to take us to where real revenue is, where real earnings are once we get rid of the fed taper, and i think the big surprise today was that bernanke said hes going to keep unemployment at 6. 5 . Good luck. I think as soon as yellen gets in there, she says night night to that, were going to 6 and everybody will relax. But if thats the case, steve, why are markets so jittery here . Is it that were placing too much emphasis on the fed . Because it seems like whether its todays decision or the general stance of Monetary Policy this year, its going to be a problem for some of the emerging markets. You know, i always thought one of the more curious things was the market rally on the day the fed tapered on december 18th. I would think the market declining makes more sense in light of the tapering, and the question im asking myself now is, is there a tolerance at the Federal Reserve for some decline in stocks at which point it becomes a troubling macroeconomic event or something that changes the forecast . I dont think were there yet. I think the fed got half of what it wanted, which is stable Interest Rates. Last i checked, the tenyear was trading around 2. 70 . I think they will be relatively pleased with that. I think that gives a green light to their policy. I think when they see the market declining, its back where it was when it tapered on december 18th. At the same time thats wealth effect. Thats a wealth effect you have going on there, steve. What happens when yellen gets in and she wants to create jobs and she doesnt care about the wealth effect . I think theres still a wealth effect out there. I dont think weve seen tremendous wealth effect in the economic numbers so far, so the idea that the wealth effect from the stock market has been something thats been pumping up the economy, at least it hasnt shown up very well in the data so far. Let me bring in some of our other participants who havent had a word in yet. Keith, by implication the fact that they have continued to taper solidly as we expected them to do, as ben bernanke laid out, really means theyre saying to emerging markets you guys are on your own here. Well, yes and no. I think the fed is making it up as it goes along. The idea the market has priced it in is a complete fallacy. I think what were seeing in the emerging markets is an overblown reaction to things weve seen before. Weve seen the asian currency crisis, weve been there, done that, got the tshirt what are you talking about . What relevance do prior crises have with whats happening today . Because the four most dangerous words in the english language, it will be different this time. No, it wont. But those are crises. Youre saying were going to have another crisis. Were going to go down to 1755. Theres more sellers than buyers. We have to take 30, 40 billion off the table then well find out what real value is. If the economy really is strong, thats where you step in and you buy these good companies. For new this is not unexpected in terms of the reaction of the traders. They want their money off. This is a risk off day. Thats all it is. Well, it may be more than that, ron. Let me bring you into the conversation. People watching at home will be mindful of the fact the market is negative for the year. Is the market changing direction here after a great run . You know, its been three years since weve had a 10 correction. I dont know what all the crying is about. This is normal. 408 days. 108 days. Thank you. If, in fact, theres got to be a correction somewhere, why not here. What im asking you, is there something more than that happening . Are we changing fundamentally direction and were flat to negative for the year . Because then the people have to make a different set of decisions surely. I dont think so. I think whats happening is that consumers around the globe are still growing, maybe not as fast. No, the world is not great but its still growing. Thats more apple. Thats more people buying apple things, deodorant, toothpaste. More energy. I think the ceos in america are doing a great job of managing this slightly growing world economy. So i think our job is to take what were given. If the fed is data dependent, they see something good, okay, lets give them the benefit of the doubt and lets pick things that stocks that make sense in this market. I dont think weve got to be fearful. It is a little ironic, rick, that today is the day treasury launches its first new product since 1997, a floating rate note. We have had quite a rally. Rates have dropped so far year to yet. Yet that auction went off well. I guess people are buying anything that has the word treasury on it . Especially when its the first auction. A lot of these dealer types with large clients, they need to know what the product is about, they need to own it. Its like when they brought the sevenyear back. Lets look at whats going on today. If you look at a chart of the dow and the tenyear note yields, enough said. The treasuries are a natural hedge against whats going on in equities. The fact we havent been down here since midnovember. We moved the compact since the last time we were under 2. 68 from the end of november when we were 2. 70 . Dollar index going nowhere. When something is expected, it doesnt mean there isnt a reaction. I fully expect, as brian has been saying all day, that my bill for natural gas is going to be really big, but it doesnt mean when i actually open it up, im not going to blow a gasket. And as far as the microphone and the fed, the 6. 5 threshold that was discussed, if you read further into the statement, pretty much it sounds to me like theyre throwing that guidance out the window, and i think its normal they should. And how powerful is a mic . The super bowl is sunday. Yes, theres great smart announcers, but the real game is on the field. You know, you make a good point there. Let me pick that up then with gina about when theyre going to move on zero Interest Rates. Hilsenrath writing for the journ journal says hes seen five indications in the statement about when they might move away from zero. As we move through the tapering process that seems to be set in stone, increasingly the market will have to rely on this promise of lower rates. Gina, do you think that the promise, that the guidance is solid enough to support the market, that these words alone will be loose enough to enable the economy to move forward in your view . I think its more than just the promise of guidance. I still actually think that underlying all of this data, while the economy is recovering, its still not recovering very robustly. And so we still have to take into account the fact that while we have seen earnings, we havent really seen great sales. And so at the end of the day, that comes down to the fact that wages arent growing. If Household Incomes arent growing, we continue to rebalance from household profits to corporate profits which is what has been happening for the last few years. That is going to create a very tepid recovery. So i think that rates have to stay low in that kind of an environment. So well beyond 2015 in my view. At the same time that the fed is trying to stick with its plan and there have been such encouraging signs for the u. S. Economy, you cant ignore the risk from the recent tightening of Financial Markets weve seen and also from the fact that asia and now a lot of parts of the emerging world are going to be exporting deflation. I think those are important risk, kelly, and i think the fed is probably aware of them. One of the guests earlier said the fed is making it up as they go along. I think theres a lot of truth to that. One of the things theyre certainly making up is the notion of, well, why under what conditions will the fed continue its 10 billion taper and the little bit of message we got today surrounding that parameter is whatever just happened. The weak durable goods report, the weak employment report, the decline in the stock market, and the volatility in emerging markets is not enough to keep the fed from tapering. So whatever you do, you put that into your program and you come up with whatever we all the reaction function here. That was not enough. We dont know what the real parameters are. Just one of those things you will know it when you see it, kelly. Ron, for people out there with their Shopping List for equities, for companies in this market who may be hit because of the macroenvironment and saying maybe this is time for me to identify a couple names, what might those names be . If we think the world is growing at least a little, first off, i was going to talk about google but i got to talk about apple. I think down here you should just buy it and hold it. Nine times earnings, when you take out the cash. But google, theyre growing. The world is still growing. Were not going to go into let me challenge you briefly on that. The stock market has run up on the basis that the world will grow. America will grow, and earnings will grow to justify where we are at the moment because the multiple is quite high. Actually, the marginal news at the moment is theres less support from the fed, Interest Rates are rising in emerging markets, and they may slow down, europe may not be growing as fast as we want. The question is have we already had the gains simon, can i just add to that list, simon, that list should also include the idea that Interest Rates in key developed markets are pretty much unchanged. So i think the idea that theres marginal because the equities are far from unchanged. No, thats true, thats true but but who are you going to trust . Interest rates in developing markets, its just a very small piece of it, the impact of Interest Rates were almost at 3 . What were you going to si . Were almost at 3 on the treasury. Now its down to 2. 70 . Where is it going to go . 2. 50 . If youre a bond owner, you what tonight take profits. 2 , if we knock off another 1,000 points in the dow is that a 2 . Listen, ill make that call. If you tell me if the stock market goes down another 15 or 20 , absolutely, absolutely, absolutely. I think you buy a little, you keep a little on the side, but the world is not coming to an end. This is not a crisis. This is a correction. The oldest rule in the book is you sell high and you buy low. Thats what you need to do. You need to look at it as an opportunity because we know then its going ton an opportunity every day as it goes lower. The deep south ow is down 20. Thank you so much. 1. 3 off the dow right now. The s p off 20 points. The nasdaq off 50. Stocks may be plunging, but Natural Gas Prices are spiking in the meantime. Lets get over to Sharon Epperson with a recap of whats happening there. Were looking at a fouryear high in natural gas, kelly. A 10 jump today. We saw Natural Gas Prices get to 5. 72. Thats 5. 72, and thats going to have a Significant Impact on many consumers. We are looking at prices that have been jumping here as we are seeing the expiration of this front month contract today. Some traders saying there may be some short covering. Were also going to get a report from the Energy Department tomorrow that could show the large withdrawal on record of natural gas supplies. Were anticipating we will see a decline somewhere around 228 to 232 billion cubic feet when that report is released tomorrow. Add to that wsi, the weather forecasters there, saying we are going to see this peri isistent cold all the way into march. All of that is having an impact here on the natural gas futures market and as we said, were looking at prices that have gone up some 30 just in the month of january. Okay. Sharon, thank you very much. This market will shut down in 45 minutes time, and as you can see, we continue to fall. Now down 212 points on the dow. Just before the fed decision, we were down 125. Clearly the market has been selling off in the wake of that, and you can ask whether thats the reason why or just a general concern about where we are specifically with emerging markets. Up next, two top Money Managers tell us how you should be investing in the wake of this move by the fed. And no one is saying yahoo about yahoo s earnings. Is the honeymoon now over for Ceo Marissa Mayer . Coming up, well hear from somebody who says mayers time at yahoo may be running out if she doesnt produce results. Your best tweets will be revealed later on the closing bell. cnbcclosingbell is the way to reach us. Its all coming up in about 45 minutes. Keep it right here. Youre watching cnbc, first in business wordwide. Ldwide. Heres a word you should keep in mind unbiased. Some Brokerage Firms are but way too many arent. Why . Because selling their funds makes them more money. Which makes you wonder. Isnt that a conflict . 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Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome back. If youre just joining us, the market is deeply in the red. Its been in the red all day today but since the fed minutes weve gone further into negative territory. Were now down 191 points on the dow. Whats interesting is on the s p 500 there are only four stocks that are positive at the moment. Thats the breadth of the decline so far, kelly. That statement hit about 90 minutes ago. Joining us with more of our special coverage of the markets reaction to whats happening, david lutz and jeffrey saut. Its great to see you both. Dave, your thoughts on the market here . Kelly, thanks. We have gone from over bought conditions to getting close to oversold conditions. Right now the number of stocks in the s p that are above the 50day moving average, its really near lows, and a lot of this has revolved around tapering. Earnings are coming in significantly better than expected. Weve had about 169 reports. 120 beats so far, kelly. But its the emerging markets that are really stressing things out. Ill tell you, one big catalyst is going to be the china pmi number tonight. Thats what really set things off last week when their flash number hit and started hitting a lot of commodity linked currencies. Dave, it was the hsbc number this week. This one is the official one. Do you think people will read as much into it knowing it is chinas official one and perhaps maybe less reflective of whats actually going on . I think it just depends what that number ends up being. The slowdown in china is stressing things out. Tapering at the fed, they can handle that on their own but not with the chinese news, and, of course, a lot of the political issues they have going on, kelly. We have had seven emerging markets Central Banks step in to try to shore up their currencies over the last couple weeks. Thats getting relatively unprecedented. Theyre trying to defend themselves but the market keeps calling them on it. Well come to jeffrey in a just moment. I just, dave, have to pick you up on one statement you started with. Weve gone from overbought to oversold. Were only 4 down from the high. Overbought to oversold on 4 . Yeah, its just been such a rapid move, simon. Right now last week we had just look at the sentiment. Last week 80 of the traders on the street on the daily Sentiment Index were bullish. Today 35 . That number is drastically come down exponentially. Also youre looking only 3 of the s p technically is above a standard deviation above its normal trend. Thats what traders look at for overbought and oversold, simon. How much is it out of whack from normal . 97 is tracking darn close to under. Thats pretty oversold to me. Jeffrey, your thoughts here . I think you said something really important that got glossed over, that Interest Rates are actually down yeartodate and they were down from a little over 3 to 2. 7 before all this carnage started. So to blame whats been going on because of an increase in Interest Rates and tapering at the fed i think is a misnomer. What david said i think is really important, the pmi over in china showed that chinas growth is slowing, and then you had news that theyre probably going to let one of their Wealth Management products go bankrupt. Thats being called Chinas Lehman moment, and then youve got the huge unwind of people that were borrowing in yen over in japan and levering up into argentine bonds and all of a sudden rates went up, bond prices went down and theyre having to unwind that trade. Jeffrey, isnt the reason why treasuries continue to rally despite what the fed has done precisely because the fed has said were not going to step up to the plate, were not going to slow the printing of money to help the emerging markets . Isnt that why you continue to get the treasury rally . The fed is saying to the rest of the world, you are on your own. Yeah, thats a fair point, but my point was rates had already come down prior to when this worldwide dive started taking place. So i dont think the cause was a rise in Interest Rates. It doesnt square with the actual data. It is fair to say that we are the worlds reserve currency, and, therefore, were probably the worlds central bank as well. Thats a fair point, simon. Yes. And thats exactly it. Thats why todays decision is so important. Guys, thank you so much for your perspective this afternoon. Thanks for having me. Yesterdays rally is being erased today. The dow is down Something Like six out of the last seven sessions. Kayla tausche, whats driving the selloff . Kelly, whats not driving the selloff . Well begin with boeing. Its leading the dow lower. You mentioned it earlier in the show. The jet giant posting better than expected Fourth Quarter results after the stock led the market in 2013, but the company said 2014 guidance will be below street forecasts. That spooked investors. That stack down better than 5 . Outlook causing issues for mccormick. The spicemaker beating estimates by a penny but marketing costs will eat into its outlook for the new fiscal year. On the flip side, dow chemical, it beat analyst estimates. Giving back more to shoareholde. Its boosting dividend by 15 . Medivation to the upside after they reported positive data from a clin trial of its Prostate Cancer pill. We end with yahoo . It continues its slide after disappoin disappoints disappointing investors. That stock is down nearly 9 . Back to you guys. Okay. Lets pick up thank you, kayla. Lets pick up on that. Yahoo stock is really taking it on the chin today. That has some wondering if the turnaround plan is working but is that fair . The stock has more than doubled since mayer took over the company a year and a half ago. Some say give her a break, shes got a plan and it will pay off. Collin gilles from bgc financial says the bloom is off the rose and mayer really isnt doing anything different from her predecessor. Collin, youre a mildmannered man. Those are fairly harsh words. Listen, its a difficult job. You have to put it in perspective but lets look at some of the Big Decisions that have been made while shes been ceo. Its the coo, brought in a hand picked coo, paid them reports north of 100 million and he saw revenue display advertising decline his entire time while he was there. This man made about 1. 5 million per week while he was there at yahoo . So thats a degree of destruction of capital. Second, the tumblr acquisition. For a company that had 12 million in revenues. A pretty penny to pay and its adding in traffic but it hasnt moved the needle on revenue. We completed our first full year with marissa at the helm and we saw net revenue decline every quarter. I guess the elephant sanding in the room is the stake they have in alibaba. Thats the point really. Todd, where do you stand . I think first off she took over a ship that was sinking already and revenues are still down but we have to give tumblr a chance. Facebook is finally trying to monetize instagram. I think theyre doing a great job. You have katie couric, david pogue i also think we have to look at their smaller acquisitions. Thats where real growth will come from. In 2005 google bought android, inc. , and shall awhere are they . The best thing theyve done is the alba alibaba its about 20 of the share. That was driven primarily by dan loeb when he was on the board and when Ralph Levinson was ceo. I dont think its correct to give the Current Management Team credit for that agreement. Just finally i know we have to go is this. Would someone else have done something much better, more significant, more ad Revenue Generating for this company . No. In fact, i think doing the smaller acquisitions is the way to go. Any sale with alibaba will give them more money to work with. These things take time. Were out of time. We have to leave it there. Thank you very much. Its an important conversation for a lot of people. Collin and todd, have a good evening. Those shares having their worst day in two years. Keep the tweets coming. Your thoughts will be revealed later on the closing bell. The dow is down 180 points. Were off the lows but still it has been a very deep day of red. Thats right. Global market turmoil continuing to impact stocks in the u. S. What the fed just did will have consequences. Up next, what you need to know to protect your portfolio. And all eyes will be on facebook and qualcomm when they report earnings after the bell. Nus under half an hours time. Those results clearly could move the market after market so you cant afford to miss our instant analysis of the numbers. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Were here to help you turn your dream into a reality. That its given me time toabout reflect on some of lifeseen biggest questions. Like, if you could save hundreds on Car Insurance by making one simple call, why wouldnt you make that call . See, the only thing i can think of is that you cant get any. Bars. Ah, thats better. Its a beautiful view. I wonder if i can see mt. Rushmore from here. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. Welcome back. Turmoil in the emerging markets is taking center stage, but not enough to give the fed pause on expanding the tapering of its bond buying program. At least beyond what it Just Announced today. With us now is ken rogoff from Harvard University and also importantly joining us from turkey, arguably the eye of the storm so far this week, is our very own michelle carusocabrera. Michelle, important moves, of course, overnight from Turkeys Central Bank. What has been the fallout locally from what you can tell us now . Well, theres disappointment here that the currency didnt react more positively. When the announcement came almost 24 hours ago, it was a huge, massive hike in Interest Rates, a lot more than most people expected. We saw the currency improve dramatically, and by the way, u. S. Stock futures also improve pretty sharply on that news when the central bank did a lot more than what people were looking for. But the pull back in the currency has disappointed some here. I spoke with one economist who said, wow, if they hadnt gone this big, what if they had gone small . It could have been even worse today. It highlighted the tough situation that turkey is in right now. Ken, how much control does Turkeys Central Bank really have over this situation and the same for other emerging markets . You cannot fight the fed, can you . I dont think this is just the fed. This is representing deeper political instability in turkey and do we have central bank independence. This was a big move but is it credible . I dont think its just the fed going on. I would highlight china, i would highlight some political backsliding thats been hidden by the boom, and probably also the current account surplus that europe is running. Theres a lot of Different Things that are weighing on Exchange Rates and equity markets. Its a big recalibration of these markets. That doesnt yet mean its an all out debt crisis collapse. Is the fed however you describe it, is the fed right to ignore it and to continue steel like in its determination to reduce the printing of money by 10 billion a month . I think if the fed had done Something Different today, it would leave the markets even more confused. I think in the feds own mind its actually not planning to tighten policy. It just wants to change it, but the markets are kind of confused. In emerging markets there are a lot of things going on, and i think the fed would be wrong to deviate from its path just now. Obviously if it gets a lot worse, that would be different. Ken, given how much youve looked at the examples through hit history, what is your biggest concern . Is it certain parts of the world . Is it how markets unfold in the next sessions . There are a couple countries which are just accidents waiting to happen, argentina lying about their inflation rate, venezuela with its heavyhanded controls and turkey, of course, i hope nothing happens but a lot of political instability, but the big one is china, of course. Theres a scare about china. If it turns out that china stabilizes, i think everyone else will. If china runs into bigger problems, then its going to get worse. Michelle, we obviously have a long delay on your satellite to turkey. How would you respond to that . Is that also your assessment . Yeah, absolutely. I would agree with ken. When the u. S. Federal reserve is making Interest Rate policy, it makes it for the united states, and its not their job to fix the fact that all these countries ran current account deficits. They should have worked on those problems when they had the freedom and when they had low Interest Rates. They cant solve everybodys problems all over the world. Theyve got to focus on the united states. We have our list of places to watch, china, venezuela, turkey, argentina. R ken and michelle, our thanks to you. We have about 20 minutes into the close. The dow is off about 181 points. Slightly off the lows of the session but still a weak Performance Today that extends this month we should say. The s p 500 is having one of its worst months in some time. The question is, is the direction of the markets changing . Thats the central question. Yahoo , amazon, apple leading the parade of players to the downside at the nasdaq today. Up next, our sheila d. Will look if things could get worse from here once facebook reports or whether Mark Zuckerberg and co can turn this around. Later president obama calling it my ra. Its a brand new retirement investment plan. Well tell you how it works and if it will work for taxpayers and for you after this. [ chainsaw whirring ] humans sometimes life trips us up. Sometimes we trip ourselves up. And although the mistakes may seem to just keep coming at you, so do the solutions. Like multipolicy discounts from Liberty Mutual insurance. Save up to 10 just for combining your auto and home insurance. Call Liberty Mutual insurance at. [ thump ] to speak with an Insurance Expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. Personalized coverage and savings. All the things humans need to make our world a little less imperfect. Call. And ask about all the ways you could save. Liberty mutual insurance. Responsibility. Whats your policy . Welcome back. Well, its been disappointing tech earnings weighing on the nasdaq today. Sheila previews the big names on tap in a few minutes. The nasdaq is at a sixweek low, near session lows and a big part of that story are the earning haves and have nots. On the losing side, yahoo , of course, hitting that twoyear low. Marissa mayers turnaround plan not turning into sales. Take a look at apple, down for a second day. At one point we were below 500 a share. All eyes on apple and whether that down trend will continue. Freescale semiconductor popped higher helping to lift other semiconductor stocks. Biogen swinging between losses and gains. It did have a little bit of a cautious guidance which worried analysts. Coming you have after the bell, a big day for some nasdaq movers and shakers. Qualcomm is the big one. It is lower ahead of earnings after the bell. The big reason is apple is one of its big companies. One of its being customers. So everyone waiting to see how the apple results may play out into qualcomms results. And, of course, you have to talk about facebook. Zuckerberg is taking center stage with his Earnings Report after the bell. All the talk about facebook these days has been whether the site is losing cool, whether teens are still coming there, is User Engagement still high. Those are key metrics investors will be focusing on. The hot word when coming to tech stocks, mobile, mobile, mobile. Can facebook still post the mobile sales which it has been doing but is that uptrend still working in its favor . Back to you. You know, sheila, do you think that qualcomm could be the bigger deal even than a facebook when those hit after the close . Yeah, absolutely. I mean, look, qualcomm has a big impact on the index and not only is it a big supplier for apple but a lot of other component companies. In terms of its breadth, qualcomm could be a big deal. Interesting. Thank you. Weve got 50 minutes to trade still in the red. Just down 166 on the dow. 1776, that patriotic level everyone has been watching on the s p 500. Were 20 minutes away from those facebook earnings we just referenced along with qualcomm. Last quarter the social network blew away wall street expectations with strong mobile growth and revenurevenue. Well have instant analysis right here. 1776, really . In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Nbc universals coverage of the 2012 london games was the most watched Television Event ever. So, whats next . The upcoming winter games from sochi. Where every second of nbc universals coverage will be available on every device. On tv, online or streaming on the nbc sports live extra app. Beginning february 6th, experience the winter games everywhere. Welcome to whats next. Comcast nbcuniversal a nice little bounce on the averages here. Weve come back about 40 points from the lows of the session within the last few minutes. Joining us for more on the big day for the markets is bob from Mqs Management and j. J. Burns from j. J. Burns and company. J. J. , where does the markets go from here . Its going to go a little sideways. Investors are pretty much wondering where is the future going to go . The earnings have been delivered for 2013. Theyve performed, were here. Now businesses are asking and theyre table pounding saying where am i going to get my future returns from. Its not what are you doing for me now . Its what are you going to do in the future. Whats going to fortify my portfolio. Whats working for you now . Gold, gold miners, precious metals. What was unloved in 2013, gold going down, miners have hit a bottom. And those stocks which you can play by individual, you can go look at gdx which is an etf, you can look at those and theyre up 9 to 13 so far this year. The number one performing asset class. You think that will continue. I think it will continue and i think investors are getting smart. They will demand i get it. Bob . I think the fed is probably at some point going to provide a floor to the market. In what way . I think one of the most important things in the fed statement which really didnt change from last time is theyre going to keep Interest Rates low. Can they take the strain, those promises to keep rates low for long, can it take the strain of the entire market . Because in the bank of englands case where they have done the same sort of thing, he has egg all over his face. I think for better or worse, you have true believers in place even with bernanke gone. Yellen is going to continue down that path, continue with the taper or not. But the point im making is theres a big difference between printing 75 billion and forcing it into the economy and taking somebodys word that rates will stay low for long. I think they enough of a background you can see these guys dont have a hawkish hair on them and that theyre going to keep rates below where they should be, where i think they should be for to that point, were making an assumption that everything is going to go really smoothly, that this taper is going to go nice and easy as you go. Who says that . Thats not the way it goes. Geopolitical issues, macro global issues. Businesses looking at obamacare. What are you saying to me . Im not sure what it means to Market Participants . Average participant will look at where are the quality of earnings going to come from because businesses are not giving you any guidance whatsoever. Theyre saying were not really sure. So how can an investor really look at staring down 2014 saying, yes, im going to really do it, im going to the stock market with all fours . But there are pockets where things are going to go and that is Capital Spending and technology and i. T. Because the businesses that are spending out there are looking at it saying im not going to increase my Human Capital. Im going to increase technology. Look at mcdonalds. 1100 restaurants in the uk are Testing Technology on getting Human Capital out thereof and putting kiosks in there. Actually this is my hometown, i immigrated. But dont worry about it. The solution is going to be more easy money will that support the market . Until we get to the point that people have real concerns about the value of the dollar, about real systemic risk, i dont think were anywheres near that. Its a big day. Good to see you both. Thank you for joining us, bob and j. J. Up next, were coming right back with the closing countdown. Dont forget that tonight facebook and qualcomms earnings, those could be out within ten minutes. Real important for social media, and our star team is standing by our instant analysis and reaction to those results. Will social media still work for you . Youre watching cnbc, first in business worldwide. Mine was earned in korea in 1953. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Tax return has not been good to the stock market. Take a look. As a result of todays losses where we stand on the dow industrials. We have corrected now exactly 5 yeartodate on that 30member index. Lets focus in on today in particular. Today felt brutal. We were down from the beginning, half the losses on the dow initially from the very cautious guidance we got from boeing. Then we had to go through that statement from the fomc. They are going to continue to pull back on the amount of money they print each month by 10 billion a month. So its 65 billion here on in, and as you can see, there was a short bounce. We were down about 200 points. Weve attempted to come back, but still we are mired in the red and very close to key support on the s p 500 as well. Lets bring in matt chesslock. This felt bad today. This was rough. It certainly did. The moves were very quick, especially around the fed decision. We can see the volatility in the chart there. But all in all, we were down 5 . This is what people were looking for, the retracement to reinvest their money. Now we have the 5 move. Lets see if people put their money where their mouth is. The bigger question is whether or not this is a its not even a correction because a correction is 10 . Whether this is a buying opportunity or an indication that the direction of the markets is changing. After what was a phenomenal run up for a very long time. We need to find a new leadership group. We cant just count on netflix and apple and tesla to take us through. Biotechs have been strong and gold miners. Those were laggards last year. Youre not going to hang your hat on that certainly but were seeing rallies being sold, not bought right now. Until that direction changes, were going to see some pressure. These are not big enough sectors no. Its not on that scale. The transports had an enormous rally last year and you see them sell off and thats been a major factor on the rally side as well. When the transports were strong, the market was extra strong. One thing thats worked for people is social media. The fact that Mark Zuckerberg learned to monetize what facebook is doing has been a gamechanger and an awful lot of people have made an awful lot of money. What will facebook say tonight and will it move the needle . It will certainly move the needle. People are watching that and qualcomm. Facebook, enormous returns last year. Can you continue that . Can you continue to monetize . What is the next step . We talked about them, whats the forecast for the next five years. Are they going to lose an audience . Thats stuff thats going to have to be addressed. Right now you could see a bit of retracement even with good earnings. Really . Its a healthy thing. Isnt the classic bull argument that facebook and google are innovating so fast that, for example, Marissa Mayer at yahoo is left in the dust . They certainly are, but can you quantify it, qualify it, explain it to the average investor, somebody who has made 50 , 100 in your stock . Are they satisfied with that investment . If i gave you 1,000 for your children, where would you invest it . Right now today id probably invest in gold right now based on the emerging markets and thats youd invest in gold. I think theyre so beaten down from last year. Everyone is now finding a source of strength and while its not a big part of the market, as you said, its somewhere where weve seen some strength. I find that really interesting. To many people gold was a broken trade. I see weve bounced. I see the miners have bounced in particular. But its from a terribly low base, isnt it . Yeah, you know, and im a bit of a contrarian. I will take that approach on that trade. I will stay out of the high flyers right now and get into something where i think i can make 5 , 10 on a stable basis. And its not the stock market in your view . No. Wow. Mark chesslock thank you for your time. Have a good evening. The closing bell continues now with kelly evans. And welcome to the closing bell on this wednesday after the fed has just delivered its policy statement saying its going to taper by another 10 billion. That hitting just about two hours ago contributing to the red air os were seeing here on wall street. Lets take a look at how were finishing off the day. The dow off 183 points. It was down 200 at some points but its still going to close down more than 1 . The same for the nasdaq, off 46 points today. The s p 500 off 18 to 1774. Lets get straight to it with todays the closing bell panel. Our d. C. Correspondent eamon javers joined by seema mody, Herb Greenberg and from los angeles, the always intrepid jane wells. Also joining us for more on todays Market Action, bob pisani with us on post 9. The arrows were clearly pointed down today. Is this all about the fed . No. I think theres a continuing concern about whats going on in emerging markets, but it was a very strange day, kelly. Im a little concerned about the fact that the russell 2000 again was down more than the big cap s p 500. Wait a minute. If the u. S. Is the best place to invest right now, why are call cap stocks down a lot more . I saw material stocks that are up that are subject to whats going on in emerging markets. So i think the market has a lot of contradictions it has to work out right now. We got a couple of tech bellwethers reporting earnings. As we await to get into those results, seema, big tech was weighing on the nasdaq all day. And even yesterday as well with apple obviously significantly underperforming the markets after reporting results. Today its yahoo . The big concern is on the display ad revenue. Going forward in terms of where we saw the losses today, all ten s p sectors trading in negative territory. What im hearing is that the rise of Interest Rates coupled with volatility in emerging markets, those are raising a lot of red flags on wall street. When it comes to emerging markets, will the volatility in emerging market currencies be a prelude to economic slowdown. I dont think we have the answer to this question just yet but thats rattling investors on wall street. By the way, how emerging markets go is going to matter to a name like qualcomm which is on the screen right now. Its jumping around searching for direction a little bit after hours. The numbers have hit. The earnings x items 126, thats about an 8 cent beat relative to the consensus estimate. The revenue line, 6. 62 billion, just ever so slightly shy of the 6. 67 billion figure, a 10 increase year on year. Lets get to josh lipton with more. Josh . Yeah, kelly. Qualcomm the chipmaker just reporting. A lot of interest in this release because of the relatively soft numbers we saw from apple and samsung. Those are qualcomms two biggest customers. So the street was looking for 1. 18 on 6. 7 billion. The numbers qualcomm reports, 1. 26 on 6. 62 billion. So a beat on the bottom. A little light on the top. As for msm shipments, we were looking for 204 million. Qualcomm reports 213 million. So a pop of 17 yearoveryear. For guidance q2, qualcomms guiding the street for 1. 50 to 1. 25. Those are both light. Thanks very much. Thats the point. Its the forecast thats important because thats what youre looking at. These smartphone makers are trying to work off their inventories. For a name like qualcomm which was already bringing its growth down from 31 annually to something in the low im sorry, the high single digit range, if were talking 5 to 11 , that was before the quarter. Youre going to be out to june. People are going to be looking way out to see as the guidance really starts to work out because you have that backlog. Thats what it boils down to. But isnt it in line with what apple was saying with the iphones on the lie sight side . Thats what will be fascinating. How much of this is related to apple. How much is related to whats happening in china right now with this company which is relying on high margin growth in places like china and india but dealing with chinese regulators potentially fining them in the neighborhood of 1 billion. Look at the stock. The stock is up on this. Isnt that interesting . Theyre ignoring the guidance here, which is light. Makes no sense. It looks like were moving to the upside about 2 . It was yahoo yesterday that was jumping around, casting for direction a little bit. Were going to need some more detail on that one obviously. The context is going to be important here. Now, again, this is a read through more broadly on whats happening in one of the most growth areas of the market. Want to bring in fast moneys steve grasso into the conversation. Steve, commenting on qualcomm tech or the market more broadly, until about five minutes ago it was all about the fed. A couple things going on. You saw the s p tested that level we breached the other day. It was 1772 in the cash. Everyone has been trying to guess, second guess taper. I mentioned it the last time is on the show. December 18th was the first time we saw taper, and we were right back to those levels intraday with 1767 on the cash. Other than that, people have been playing for this one off event, kelly, and the market should move sideways to higher here. We got exactly what we were expecting. And what does the action say to you . It says to me everyone is still locking in their gains from last year. No one wants to look a gift horse in the mouth. As far as qualcomm, we were dressed down on apple and samsung. People sold that first, asked questions later. That got pulled into the ramp up of selling going into taper. Im personally long qualcomm. Theres so much more wearable stuff coming down the pike 2014. This is a stock that will benefit from that. And to your point, steve, qualcomm was down in the range of 1 today. Its now made up that ground. Its up about 2 after hours after beating on earnings, slight miss on the revenue side, slightly lower on guidance but it appears investors give them the benefit of the doubt when it comes to future growth. You look at a number of reactions to qualcomms that make you want to make any other trades tomorrow . No. I actually want to judging on the negativity thats feeding through from apple and samsung, im actually thinking about buying more. Qualcomm had that run from 63 all the way up to basically mid 70s, and 70 has been support in that name. It touched a couple moving averages recently, but i would be a buyer in qualcomm. I just think that going forward, especially for all these health care wearable devices that were going to see, subcutaneous devices to check your sugar levels, qualcomm is involved in all of that. Its a good point and were starting to see the intersection of tech and health care it seems. When you talk, bob, about the sectors this year, its been more of a defensive play so far. It has until recently. Its a little concerning were seeing, for example, consumer stocks are now among the weakest sectors in the s p 500, and i think that has to be paid attention to because if you believe that the u. S. Economy is a safe place to stay and that consumers are defensive names even on a global weakness, that would be a normal place to stay and yet were seeing today particularly a lot of big selloffs like avon, standard consumer names. Materials stocks that should be more exposed to the Global Markets are up today. Owens illinois had a pretty good Earnings Report, dow chemical, dupont the other day had pretty good reports. Were seeing some sector rotation in areas you wouldnt think are very obvious. So far today is the onethird mark for earnings, about onethird of the s p and its brch a pretty good season. Earnings growth is 7 . Thats the best number weve had since the end of 2012. Much of that growth is coming from the health care, biotech, amgen beating street expectations and that sector is getting bid up on that. Jane . Im wondering what was happening with the Home Building sector today. The one interesting thing as bernanke pulled a cantore and then left the room today is he said the housing recovery is slowing, and while theyre not going to taper the taper and i dont really care about what happens in turkey and argentina and whether or not they should taper over that, when he said the housing recovery is slowing, that for someone on the left coast, thats really a big deal to hear Something Like that because Interest Rates are not going down. Thats not going to help that. No, but here is whats interesting. Even though thats the case, the market is also pushing in the other direction here for some of the builders because rates this year have gone from opening at like 3 on the tenyear to 2. 7 and you saw then the mortgage figures last week. Mortgage rates have been sinking. Theyre still off the lows, but this gives perhaps a little more breathing room, eamon, as you know but if people cant buy the houses, then we dont have a recovery. Sure. And thats a different story, but it does if you wanted to play the builders as a function of rate and a good enough economy, you could see that happening. First off, d. R. Horton had a very good Earnings Report if you look at that. But i think theres a feelings amongst the Trading Community that the housing recovery story is a little bit of last years story and while its true they got robbed a little bit in the middle of the year because mr. Bernanke talking about the taper, thats a little bit of an old story and people are looking for a new story right now. Facebook shares are on the move. Thats what youre looking at right now, popping about 6 to 7 , now pulling back a little bit but still higher after again closing down about 2 today as we look for the numbers from the Earnings Report. It looks like 31 cents is the figure x items relative to the 27 cent estimate. Julia . Thats right, kelly. Facebook results coming in better than expected with earnings of 31 Cents Per Share. Thats beating expectations of 27 cents. Its up from 17 Cents Per Share in the year ago period. Revenue also coming in better than expected at 2. 59 billion. Wall street was looking for 2. 33 billion. That revenue is up 63 from last year. Mobile ad revenue is 53 of total advertising revenue. Up from 23 in the year ago quarter. Thats also a bit higher than wall street had expected and up 3 Percentage Points from the prior quarter. About to get on the phone with the facebooks cfo. Ill be back shortly with more details. Great stuff. Thanks very much. Want to bring in brian weezer from Pivotal Research group for his reaction to the numbers. Jon fortt is with us as well. Brian, first to you. Why the 4. 5 move to the upside . Well, it looks like the numbers certainly beat consensus. They look like strong numbers. I think the street had gotten a little concerned about the numbers. Yeah. It does obviously look like let me put it differently. What do you think about the quarter . Well, so far they look good. I know my expectations were above street expectations. Theyve got a lot of strength from new products, International Growth is doing better than most analysts are forecasting, and so its not that surprising that they have come above where i was and well above the rest of the street. Okay. Jon fortt, sir, what do you think about the facebook here . We have julia talking about the share of mobile ad revenue as a percentage of total. Thats been one important metric. Active daily users. How theyre able to monetize video and instagram. Yeah. Its really interesting. Daily active users add 757 million. Their yearoveryear growth rate is holding up. Monthly active users at 1. 23 billion. Thats also within that 15 or so percent range up yearoveryear. Mobile monthly active users at 945 million. The operating margin, nongap at 56 , and the cash balance up to 11. 45 billion. Just shows that theyve got expense discipline as well. So i know julia is going to be on the call and shes the best at digging out all the details as far as mobile growth and as you mentioned their plans to monetize video, but it looks like a pretty wellrun company thats still growing gangbusters. Mobile advertising revenue, thats the key metric people look at, representing approximately 53 of advertising revenue. Thats approximately a 23 of advertising revenue in the Fourth Quarter of 2012. Thats a huge change, that 53 . Remember what that was last year some were looking for a figure north of 60 . Its definitely an improvement but this is a company where we expect a lot of improvement. A year ago i believe it was in the 20s. Thats a huge move up. Absolutely. The company is moving in the right direction. If you think about a yahoo yesterday who said we sold more ads, we just didnt get as much money for them, how does this make yahoo look in retrospect. It makes yahoo look like they havent figured out how to monetize mobile. Theyre a couple years behind facebook. Facebook had the apps most popular on android and ios. They figured out add units that are working. And you see the revenues following suit. Yahoo just now trying to position tumblr as a key content management system. You saw Marissa Mayer talking about putting their tech channel and food channel on tumblr. Theyre trying to figure out through native ads on tumblr. Facebook has been doing that for several quarters and you ste it showing up in the results. Great point. Kelly, the Options Market has been imply being a 10. 5 oneday move in shares of facebook which is slightly above the Fourth Quarter average of 9. 5 . Investors were expecting this big pop to facebook either to the upside or downside. Kelly, here is what i love about this. Yahoo and qualcomm are both based in california. They both beat. These people are making so much fun and they pay taxes. This makes me happy. And herb, we would be remiss not to go to break and not mention new sisttar. The stock is off about 28 right now or thereabouts, 17 . The company was waiting a contract. They control the contract that allows you to take your phone number with you. They oversee that entire database, and they have had exclusivity on this and there has been a bidding process going on, and what theyre basically doing is putting out a press release that says they wanted a new bidding process. The fcc says, no, thats not going to happen, so the suggestion is they may lose some level of exclusivity here. Obviously investors are waking up that this is quite a story. Herb, thanks very much. Thanks to everyone for walking us through a couple of big reports after the bell. Well keep an eye on them. After a quick break, you can catch steve grasso coming up on fast money at 5 00 p. M. We have more on the market selloff today. We cant forget the fact of what happened. Up next, Goldman Sachs chief economist jan hatzius on what it would take for the fed to perhaps increase its bond buying program. Also what does it say about the economy when someone buys a 30 million home only to tear it down and build something more expensive . This is a tale from Hollywood Fae touring a Silicon Valley rich kid. You can separate runway ridiculousness. Kid. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. natalie ooooh, i like your style. vo so do we, business pro. So do we. Go national. Go like a pro. Olets say you pay your tguy around 2 percent to manage your money. Thats not much, you think except its 2 percent every year. Does that make a difference . Search cost of Financial Advisors ouch over time it really adds up. Then go to e trade and find out how much our advice costs. Spoiler alert. Its low. Really . Yes, really. E trade offers Investment Advice and guidance from dedicated professional financial consultants. Its guidance on your terms not ours thats how our system works. E trade. Less for us, more for you. Welcome back. The bears have their claws out in a big way on wall street. Kayla tausche with a round up of after hours action. We begin with facebook which you have been talking about. It reported better than expected Fourth Quarter earningsnd revenues. The most important part though, mobile ad revenues make up more than half of its total revenues. Two years ago that was 0 . Qualcomm also out with earnings. The company reporting better than expected First Quarter numbers. Revenue coming in a bit light. This comes as the smartphone growth has shifted from developed economies over to china. Finally, citrix issues a weak 2014 revenue outlook. That stock down better than 4 . Kelly, over to you. Thanks very much. As the fed continues its taper downward and turmoil reigns in emerging markets, lets get a take from one of the savviest minds on wall street. Joining us in an exclusive interview is jan hatzius, the chief economist at goldman sa s sachs. Its great to see you. Did the fed do the right thing this afternoon . I think so. I think the goal here was to show that things are basically developing the way that theyre expecting and that they want to see. I mean, things have clearly been a little weaker on the data front over the last month. Financial conditions have tightened with the latest market selloff, but net net youre back to where you were on our Financial Conditions Index in the middle of december. So i think it makes sense for them to keep going and shift away from qe. The question really is for the next meeting what do they do with the Forward Guidance as janet yellen taking over from ben bernanke. And before getting into that, jan, i just wonder, as people today are extrapolating some of the poor activity that weve seen across markets into something worse to come, what would it take for the fed at this point to pause, to have to increase, return to Something Like buying 85 billion . What percentage likelihood would you give that at this point . I think that would be very low. I think even a pause in terms of tapering down by 10 billion per meeting would require quite a bit more weakness than what weve seen. If you had another two weak employment reports between now and the next meeting because theres more information to be released, then i think you could see that, but that wouldnt be my expectation. I would expect the numbers over the next six weeks to be stronger than what weve had over the past six weeks, and i also think that if they did really want to add accommodation, rather than increasing the pace of asset purchases, theyd be more likely to further strengthen the Forward Guidance because i do think that they want to shift in that direction. And its interesting because many of the people that we talk to around here say theyre much more interested in action than talk, and the fed hasnt really been tested on this yet, and this will be a huge test for a janet yellen early in her tenure there potentially. Yeah. I mean, theres different types of action. I think if you move forward rate expectations and make those more accommodative what would be an example of that . I mean, if they wanted to do something aggressive, they could talk about the need to for inflation to move back to the target and, you know, spend a lot of time talking about the fact that over the last few years its generally been below the target and that they want it to be at target over the cycle as a whole implying that youd want to see a period above target. I dont think they would be really explicit about that at this point, but that i think would be a possible direction for them to go in. Is it safe to say, jan, that in some ways the inflation reports have become more important than the jobs report . Yes. I think thats right. Its actually been a little puzzling that Market Reaction to inflation reports has not been a little greater than what the weve seen over the past six months or so because were at 1. 1 for the core pce index, and if you you know, over the next few months you went to 1. 5 or you went down to 0. 7 , 0. 4 in either direction, that would make a huge difference to the market discussion. How much it would really mean . You can always debate that with any of these Economic Indicators because, of course, theyre pretty noisy, but it would make an enormous difference to the way that the fed thinks about the outlook and the market thinks about the outlook. Finally, jan, would it also be the case that if we get inflation just moving a little bit higher as the labor market has gotten a little firmer and the economy is doing a little bit better, that could be a real problem for some of the emerging markets who would like the fed to take an easier for longer stance . Yeah. I think if you moved away from the forecast path, and i think we should remember that the forecast path that the fed has and most people have is somewhat higher for here, so it would be evaluated relative to that path, but if you went up more quickly, then i think it would be more of an issue because people would pull forward the first hike in the funds rate. We still think thats a long ways in the future, but we also have a low inflation forecast, but i do think it matters a lot. All right. We know what to watch. Jan hatzius, thank you so much. Appreciate it. Julia boorstin has some details just off the phone with facebook. Julia . Thats right. I just spoke to the cfo. He said that the most important number in facebooks Earnings Results is its 76 growth in ad revenue versus last year. He says thats a clear indication that facebook ads really work. Now, i asked him specifically about those concerns of weakening engagement among teens, younger teens in particular. He did not answer specifically but he pointed me to the companys significant growth. Mobile daily active users increased 49 from a year earlier. So he said that theyre seeing growth across the board in the size of the network to people who use facebook and that was sort of his way of answering my question. We do hope to hear more about that concern about teen engagement on the call. He said that theres a big emphasis on mobile. Obviously were seeing an increasing percentage of facebooks use and also revenue coming from mobile, and hes saying theyre seeing all the investments they made paying off. He pointed out these numbers do not include instagram. Instagram has just touched the tip of the iceberg when it comes to moon advertising the service and the user numbers are not included. Some of us use it quite a lot. Thanks very much as the shares move up more than 6 . Timing is everything. Maybe president obama is on to something when he promises a new way for americans to save and invest with no risk theyll lose money. I will direct the treasury to create a new way for working americans to start their own Retirement Savings. My ra. Sharon epperson will explain how the socalled my ra program will work and if it could help the middle class. Some arent so sure. Our panel weighs in on this one. Stay with us. And it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your gastroenterologist about humira today. Remission is possible. Welcome back. Straight over to Kayla Tausche for a market flash. Kelly, we want to take a look at shaves of las vegas sands. Its getting hit in after hour trading because the casino reporting weaker than expected earnings and revenue for the Fourth Quarter. Stock is trading down by 3. 18. Thats a 4. 25 drop. Kelly, back to you. Another big mover after hours. Kayla, thanks. Some 401 k plans may have taken a hit with the recent drop in the stock market but a proposed new Retirement Plan called my ra laid out by president obama in the state of the Union Address could be immune to such market gyrations. It would also be immune to 30 gains like we saw last year. Sharon epperson joins us now. Its for low and middle income earnings who are concerned about the stock market and want to stay away from it. Want a simple and relatively safe plan to invest in, and this is geared to folks who dont have a Retirement Savings plan at work or have little or no savings. It will work like this. Companies will start to roll this out perhaps by the end of the year. Were going to get initial Pilot Program going, and then its geared to folks who are making 129,000 or less or married couples who are making 191,000 or less a year this year. You can start with a minimum investment of just 25 and then payroll contributions of as little as 5 bucks. Employers are not running that plan and are not responsible. Its backed by the u. S. Treasury, the u. S. Government. It works like a roth i. R. A. Contributions will be taxfree and you can take that money out anytime you want taxfree as well. The principle guaranteed with the u. S. Government with the same investments federal workers are investing in now. The government Securities Investment fund. The runs on that not very high, 2. 25 over the last three years but something to get nonsavers going. When your account grows to 15,000 in this my ra, you have to roll it over to a private individual retirement account. Okay. Sharon, thank you. This is so fascinating. Herb, do you like this idea . Im on the fence. And it makes me pine for the old days of Pension Funds and what . Well, because when you look at returns, you probably depending on the duration, Pension Funds actually didnt do that bad. But the point isnt about the performance. Its the companies cant afford to keep them funded. That may not be as true right now i understand. The treasury is saying the employers will not have to pay a lot of money to do it. It can be done through direct deposit. They are anticipating it will cost so little for the employers to do and the funding of this Overall Program will come from treasury. Theyre saying and eamon, thats a fascinating point. A lot of employers are interested. Obviously this was announced in the state of union. Obviously its political. Probably will help some people. There are going to be people who learn a lot about investing as a result of this but lets be clear. This is a small bore financial proposal, and what struck me last night as i was standing in the capitol watching the president deliver this speech, was how diminished his financial objectives are compared to where he was when he came into office in 2009. This was a president who was saving the entire financial system, who was bailing out of the auto industry, he was doing big, tremendous things with real historical import and now hes reduced because of the political gridlock in washington and to some extent because of the financial recokor recovery t these small but, jane, why should we be putting people in treasurylike investments when there already is an option to start a roth, invest in stocks, et cetera . First of all, when is 191,000 low or middle income . That was sort of eyepopping to me. Right. My thing is i guess its good if 38 million households have no retirement assets. When they say theres no risk, thats because the rest of us are backing up that risk with the good faith of the government. And if youre going to do this with these low returns, you better get started now or like yesterday. I saw or 1981. I saw fiveyear cds for 500 that get better returns than this. It really is more of a Financial Education program when you think about it. Wh they what theyre trying to do is get people who have had little or no interest in saving at all get a program through their company that allows why not have Companies Push people into a roth. They have to do that on their own, they have to set it up we have to go. Thats why its political. With this, they dont have to. And of course its political. Theres a lot of questions about the rollout what will that be especially given the trouble with obamacare. My ra. Were going to watch this one. Thanks. Fed tapering and emerging market turmoil, the two are connected. How long will it take for the chicken and egg relationship to stabilize. Blackrocks rick reider will way in on that. Make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Fifteen minutes could save you fifteen percent or more on Car Insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Welcome back. Want to begin with a quick market flash. A hot m a story coming out from multiple reports that lenovo is close to buying googles motor motorola mobile unit. A short lived foray into these mobile hand held devices for google. Unclear if google will take a write down. Routers says lenovo will be using cash and stock to finance the deal and that it could be announced as soon as today. Well send it back to you. Kayla, this is fascinating. Stand by for one sec as google shares are moving up 1 . I want to bring in the panel and get some thoughts about motorola mobile going from google to lenovo. Give google credit something may not be working as they originally expecting and not looking back. It seems lenovo has been on the acquisition hunt. There were rumors they were looking at blackberry. Lenovo has been talking to ib m potentially about buying a low end server business. It seems this company is going all in whether its the mobile side of the devices business or the storage side. They can have it. Good for them. Kelly, can i weigh in on the politics. Always politics in play. Lenovo obviously a company with chinese roots and something that you have to Pay Attention to there in terms of chinese acquisition of Major Telecom assets in the united states. Given everything weve seen in terms of concern of chinese espionage, concern of u. S. Espionage, theres an interesting subtext to this. Oh, sure. And the vulcanization of tech will be an interesting theme. Does everyone kind of inshore, onshore, whatever you want to call it, try to protect their own systems from interference or not . Youre talking about potentially another major deal. It may have more to do with the performance of Motorola Mobility than anything else. But it is interesting to see such an aboutface from a company that was accused of overpaying at the time around now is saying, yeah, we probably did. I would be interested to see what actually happens when this gets announced. You mentioned lenovo has been sniffing around a lot of u. S. Assets. Ibm and blackberry. Also rumors they were looking at hps pc unit. They have been looking for a foothold in the american companies. Finally google was willing to throw in the towel it seems. Thanks. The fed met, the fed tapered, and stocks continue to sell off today over 1 across the major averages. Lets bring in rick rieder who oversees 700 billion in fixed income and torsten. Were down to 2. 7 and what do you make of it . Yeah, a bunch of things. A bunch of things happening. I think whats been the most surprising is the adjustment of the emerging markets as fast as its happened and you think about the news last night with regard to turkey and how markets reacted in a positive fashion to turkey which was amazing to us. At the end of the day theres an adjustment period that has to take place amongst a number of countries to deal with what are fiscal challenges, inflationary challenges isnt part of that adjustment if theyre doing the right things to some extent, then why arent they seeing any benefit for it . How much more aggressive do they have to be . Sure. Well, i think ultimately you will see the benefit. The problem is that it creates economic duress in the interim. You talk about when you have a real impact on your lending mechanism, a real impact on your ecosystem, it has an impact for sure. Ultimately its the right decision. I think what markets were looking for was for them to do it but you also have south africa and india and brazil and there are a series of these that have to adjust and it takes a bit of time. To go back to the tenyear and what its telling us right now, aside from the stock market today, you guys make the point that every month we get closer to the fed hike. The tenyear rate will move up eight basis points. Its done the complete opposite. Does that suggest the prospect for the fed raising Interest Rates has been pushed off by many months . Its Pretty Amazing when you think about it that the Economic Outlook over the last several months has improved dramatically. Weve seen an improvement in momentum, consumption, industrial production, cap ex, and nevertheless rates are lower. This is all driven by em. Weve got to go back and look at the u. S. Data and is the u. S. Economic outlook improving. Particularly the labor market is getting better. We have a lot of people that are running off extended Unemployment Benefits and this is going to have a Significant Impact on the Unemployment Rate in the u. S. One case, one example of this was in North Carolina when people ran off benefits six months ago, the Unemployment Rate there fell 2 Percentage Points over the following six months. The issue now is can you imagine what the fed would be saying if the Unemployment Rate nationwide in the u. S. Would be two Percentage Points lower . Wasnt the case in North Carolina the lions share of that was people leaving the labor force. Employment went up in North Carolina. They also cut the extension of benefits to how many weeks you can get benefits to a lot lower level than others. The bottom line is we will see a decline in Unemployment Rate. Thats what the consensus expects why is the market moving in the other direction . Because of the risk off mode we have at the moment. If external factors are pushing rates lower, if people will look to the u. S. As more of a safe haven, shouldnt that be supportive . I think it also has to do with the fact weve had a significant run up in risky assets more broadly. Were probably just taking a break for a little while. I think fundamentals will come in fairly strong. Lets wait and see what nonfarm payrolls will be, what unemployment is. What positions do you guys see here . So i would go back and say a kunle things to agree with what torsten said. Everybody pointed to when the fed tapers and said that would create there wouldnt be a buyer of long dated assets. Thats not true. Taper is already in the market. The fed is doing the right thing today in terms of removing quantitative easing. Thats not helping unemployment. Its not helping true unemployment at all and the marke markets long end of the curve is fairly priced. What now the fed is moving to is trying is to keep the front end of the curve down. You have moved the volatility to the three to fiveyear part of the curve. We run Strategic Fund thats flexible. The long end is okay despite the fact that taper was going to start happening and is happening today. And the fed is doing the right thing but the volatility will now be in the front end. The Economic Data is pretty good. Now theyre going to try to keep the front end down. And so people should be careful there for now. Yeah. Thats where we think rick, thank you so much for joining us. Torsten appreciate yaur thoughts. So much going on on a busy day and a busy after market session. Cold temperatures have literally frozen traffic across the south. We have a special guest coming up who will share his own personal travel nightmare. You wont believe how long it took my supposedly vacationing coanchor Bill Griffeth to drive just one mile yesterday. Yes, hes down near atlanta, and bill is phoning in next. And yahoo shares getting crushed on the heels of shrinking ad revenue. We want to know how you would rate Marissa Mayers performance as ceo. Tweet us cnbcclosingbell. Your best thoughts on air at the end of the program. We believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Its been that way since the day you met. But your erectile dysfunction it could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, seek immediate medical help for an erection lasting more than 4 hours. If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet frrial. Well, in case you havent heard, its pretty cold up here in the northeast. Its winter though and we should be used to it. Down south its a much different story. Its where snow and ice have put a glacial like cover on cities such as atlanta, charleston, and new orleans, and my poor coanchor Bill Griffeth thought he was going on a vacation, thought hes caped the cold this week. Hes visiting family in atlanta, at least trying to. Bill, whats going on down there . I came down here to get out of the ice and snow and look what happened. I brought it with me i guess. It followed you, exactly. So you got stuck. As you know, my moms 97th birthday is on friday, kelly, and we came down here to spend the week with her and my brother and his family, and we just got caught in this storm of the century or the storm of a generation as its been called. Were up in alpharetta, 30 miles north of downtown. Its outside the 285 loop that surrounds the downtown area which was a parking lot and it started yesterday afternoon. People just left all at the same time because they knew the snow was coming, and, you know, atlanta is a city that doesnt expect to get this kind of weather, so they dont have the infrastructure that we have in the northeast with the plows and the salting and all that to the degree we have and they just werent prepared for this. So it has been a nightmare for the last 24 hours. Its getting better, but its still far from normal right now. And, bill, a cousin of mine was stuck on the road trying to get home last night for ten hours. Yeah. How long did it take you to get out of the mess . We are in a hotel in alpharetta thats about a mile and a half from my mothers and we left there at 7 00 last night. It took us an hour and a half to go that mile and a half which was incredibly frustrating. And then we had to find a place for dinner. All restaurants but one were closed at 8 30. I bet they were doing a good business. That little pizza joint, we were blood to see that oasis open. He did land office business. That pizza never tasted better. But its getting better. Its thawing out now but its still far from normal here. Our hats off to the pizza guy and also, bill, to your mother because 97 is a big deal and i think even that traffic is worth it. Yes. The next trauma we have to worry about is getting her to blow out 97 candles. Please tell her happy birthday on our behalf and i miss you. Well see you back here on monday god willing. See you monday. Thanks. Freezing temperatures not cooling off the action on our website. Allen wastler joins us now. Is it the fed taper, the market is it the Market Action . Ive got plenty of hot, plenty of hoot. Right now the hottest is still the facebook earnings, okay . We havent had less than a thousand people reading the story since the time we put it up per minute, okay . Its chalk it up. Lynn oh voe is come up the reader. The fed, of course, the big story of the day. We had over 50,000 people already look at that story. And the counters are still churning up, churning up, churning up on it. Finally in the speech last night, president obama listed the m. Y. R. A. Security device . Well, everybody this morning woke up this morning saying what is m. Y. R. A. Its been doing gobs of traffic all day long. So those are the hot ones for you right now. People want to know what to call it. M. Y. R. A. , m. Y. R. A. M. Y. R. A. Thank you. Thank you. Weve been asking how much is his performance as ceo. Tweet us at cnbcclosingbell. Well highlight the best tweets coming up at the end of the show. And how do you know when you have too much money . What if you have a 30 million home and you tear it down and build another one . That might be the case if your fathers name is larry ellison. Well have a look at this story when we come back. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Well, teardowns are nothing new in the Real Estate Market but 30 million ones are relatively rare. We have the incredible circumstances behind this case. So whats more excessive than buying a 20 Million Dollar hours . Well, buying a 2010 million house and then tearing it down. Thats whats Megan Ellison is likely to do with the new home she bought in hollywood hills. Shes combining it with the property she bought next door to become queen of the hill. Lets take a look. Why would anyone want to bulldoze a ,200squarefoot mansion . Its worse than ugly. Its out of style. Its maybe arguably the last time we may be able to see it. When you hear how much someone will pay to tear this down, you may fall off the sofas. Ultimately wealthy people are likely to be drawn to buy this for one reason. Its more line a throne, to reign over all of l. A. So even before shes laid a single concrete block, shes already spent 30 million. Indeed the Ellison Family has been good for california real estate. Back to you. Yes, it has. Dont miss all new episodes of secret lives of the super rich. They begin tonight at 9 00 p. M. Eastern. You can also catch a little more shark tank. We asked, you tweeted. Your thoughts on the ceo coming up next. Humans we are beautifully imperfect creatures, living in an imperfect world. 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Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of Prostate Cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. We know were not the center of your life, but well do our best to help you connect to what is. Welcome back. Weve been asking you to tweet us your thoughts on Marissa Mayers company yahoo . They had their worst earnings in two years. Tony says i knew she would fail. She never ran a company, yahoo ouch. On the other hand, before mayer started breathing new life into the company, bravo, mari a marissa. And finally, we need to give marissa time before we judge her. Shes only been there a year and i see you nodding in agreement with that last point. I agree. How much time do you give a ceo time to turn around a company. Thats a good question. I bet you have an answer to that. There is no set time but i bet she gets at least another year. In other words, if were in a downward spiral a year from now thats sort of a different story. It begs the question. What is yahoo here for . The way steve jobs stripped out everything with the company is instruct ivg here. Yahoo s got the sprawling services. Jane, last word . To me i love it. Shes like the kardashian of the business world. We cant get enough of her. Is that a good thing . Well, i love watching her. In fact, though in the movie i would cast kristen wiig. Great to see you as always. Its time for fast money. Melissa, whats on tap. Im melissa lee. Your traders are facebook just reporting earnings moments ago. Strong mobile ad growth is sending shares higher. Julia boorstin has got clues exclusive comments from carla samberg. Thats coming up. Weve got bob monitoring it in studio so we can trade it live. The s p now down 4 for the month. Todays selloff sparked by more concerns about the emerging markets and it continued as the fed announced it would taper by ot