Transcripts For CNBC Closing Bell 20140130

The market. Big surprises already this year, in this young year. Gold and treasuries not acting the way anybody thought they would. Absolutely. Speaking of earnings, its a huge day for earnings today. The biggest day of the season. We get some big names after the bell that could have an impact on the market tomorrow. Amazon and google will be out with their results in just about an hours time. We will get you the numbers first. We have a ton of experts standing by ready to break it all down. These are widely held names. Gotten a lot of read through. No doubt about that. The neverending search may be ending. Our partners are reporting the microsoft search for a new ceo could be coming to an end within the next week. Who could it be . Whos behind that question mark right there . Why is it taking so long . And a reminder, heres where we stand across the major indexes right now. The dow up about 110 points. Its off session highs. The nasdaq adding 79 at this hour. The s p 500 up 21 points. It looks like a strong day across the board. All right. Lets get right into these markets on the biggest day of the quarter for earnings. Capped off with google and amazon just about an hour from now. Were all over that. Joining us for our closing bell exchange, kimberly foss, steven wood from usz russell investments, greg ipp, and last but certainly not least, our own man rick santelli. Steven, to you first. What to make of yesterday followed by today, whats real, whats not, whats likely to continue here. I agree with you. The volatility is real. We think its going to be here to stay. If you look at 2014, weve dubbed this as the year of confirmation. The markets ran hard. Risk assets ran hard in 2013. Now the fundamentals. Certainly revenue fundamentals need to grow sufficiently. So we think were going get a lot of that. We saw some of the economic numbers come in right now. I think its important to dimpb shalt between emerging markets being kind of the effect, not the cause of whats going on. Valuations ultimately matter. In the u. S. , where youre looking at fairly valued environments, where are those pockets of opportunities where valuations are more attractive . Yeah, bob, talk about some of the fundamentals here. You cant ask much more for an earnings season ready to grow 7 , 8 year on year. What does that tell you . What do you do with the market here . Gdp report today was great on the heels of 4. 1 in the third quarter. Back to back, thats the strongest gdp growth weve seen in over two years, just about two years. So fundamentally, the economy looks great. You touched on a point earlier about valuation. Valuation is very important here because the price action currently makes a lot of sense to us at s p capital iq. Why . At 1840, were trading about 16 times forward earnings at the end of the year. Now were closer to 15 times because the market is treading water. The mark has had a chance to digest some news. The news has been mixed, though. Its not clearly pointing higher. We have the december employment report sort of mixed and influenced. The market needs to sink its teeth into solid, fundamental news, which were getting from earnings right now. Kimberly, to that point, biggest day of earnings thus far on the heel of what facebook delivered last night. Whats the takeaway and what would you do with a portfolio given whats going on over the last 24, 48 hours . Well, you know, i think the big thing here is volatility, as you said. But that shouldnt spook investors. The ici. Org numbers still show theres a ton of money on the sidelines. With the feds decision to repurchase and increase that by 10 billion, i still think that theres still a lot of money on the sidelines and a lot of growth. People should just stay the course. Dont get spooked by these numbers and by this noise. Stay your course and make sure you have that emerging markets in the portfolio. So youd keep exposure here, kim . Thats interesting. I wanted to bring up one more point with you as well. As we move towards the retailers that are going to report this earnings season, theres a lot of questions about how these individual names did in december, a month where we had a lot of changes a lot of bricks and mortar guys struggling, this big move to cyber. So do you like exposure to the market here . Do you think amazon tonight will tell us something about how the rest of the season will go . Absolutely. We will have exposure to the markets, and we have that broad diversification. We have 44 Different Countries and over 12,000 different stocks. We dont pick individual stocks, but that being said, i think theres a Core Portfolio of, say, like your google, linkedin, facebook, your twitter. These are like the cores that were 30 years ago like at t and ibm. That has to be in the portfolio. Amazons numbers will obviously drive this. Theres still a ton of money on the sidelines, so this will drive the market. If you dont have that in your portfolio, you absolutely should. Rick santelli, looking at a tenyear as we speak at 2. 70. Given the way the market as a whole reacted over the last 24 hours to the fed, you think weve gotten it right . You think the market clearly has an understanding about where it wants to go from here forward . And by that i mean both stocks and bonds. I think everybody was a bit off their mark because of the notions, the logical notions of taper and what it means when the biggest buyer of treasuries is going to become less of a buyer over time. Officially rates go up. The reaction in may was that. By far, the biggest factor we all need to be cognizant of is it really isnt about that anymore at this point. What its about is stocks. If stocks perform, volatility is going to go right back down and Interest Rates will stabilize and most likely go higher. If equities move lower, all the sudden treasuries are going to be the love affair again with investors as the buying instrument of last resort. And theres a lot of logistics going on in the here and now in the market. You know, we had a bit of an end of supply rally, which is normal. We saw rates pop after a gdp number you could say was as expected. But there were many nervous traders out there thinking it would be under 3 , and it was not. But dont underestimate what youre pointing at. Stocks have been down for the first month, and treasury prices up. So the allocation thats going to take place tomorrow, some of thats come into the market today. So youre going to see some selling of those overperforming treasuries and buying of underperforming equities. Yesterday we talked about how the inflation reports at this point are almost becoming more important than employment just in terms of what the fed does, how tight conditions are here. The Fourth Quarter gdp number, the core number was 1. 1 . So either the fed is tapering when theres incredibly low inflation and hoping it turns around or perhaps it sees something that the market doesnt. The feds got a view that number is artificially low and its going to move back up over the coming year or two. There are things going on. For example, the deceleration in Health Care Costs 37 that might explain some of that. To me, the issue the fed is going to have to grapple with within the next few weeks isnt about inflation. Its about the real economy. Its striking that just like youre saying, earnings have been beating estimates, but the economy has been missing estimates. Weve now had december employment, new home sales, durable goods all well below estimates. I did not like that Fourth Quarter gdp number. Too much of it was inventories. Jobless claims up higher than expected today. Keep your eyes closely on the purchasing Managers Index number today and the employment numbers. We might be hitting another air pocket. Thats a real risk here. Steve, thats a fact, right . We cant really debate that. The data has been squirrely. It has been. And that would suggest that you could still have some issues with equities from here and you could certainly have an issue if you thought that there was going to be a rotation from bonds to stocks. Well, weve established that volatility is going to be our travel companion for some time. It is a rotation. And it aint from bonds to stocks. If i can bounce off something rick said, the Federal Reserve, the bank of japan, the European Central bank is what we call the squeeze plate. They know what theyre doing. Theyre trying to squeeze investors out of safe haven interests. Investors need to look in fixed income, global credit, as well as equities. All the above approaches are going to be necessary to hit your investment goal. If you own enough of it, somethings got to work, right . Im just giving you a hard time. No, youre right. Youve got to be diversified. Guys, thanks so much. Really appreciate the point of view. We have to watch out for that air pocket, greg. Emerging market fears calmed a little today. That was one day after a big rate hike over in turkey. Cnbc chief International Correspondent Michelle Caruso cabrera is in inis istanbul. Whats changed . Reporter well, you know, we are wrapping up four days of intense drama, not just for turkey but for the emerging markets all over the world, as you point out. Whats changed . Lets tell you what we believe to be true right now, at least at this moment. That the turkish lira has stabilized and the turkish stock market turned around sharply today because of more strong movements from the ministry. There will not be capital controls imposed in turkey. That seemed to help the markets. Then we got the minutes from the central bank meeting. The same meeting that was held earlier this week in the middle of the night. The emergency meeting where they raised Interest Rates so sharply and the tone of those minutes was extremely hawkish. The central bank said, we are willing to impose a recession on this country in order to scare away the speculators and make it clear to everybody that we will not tolerate inflation. They didnt say explicitly we will bring on a recession. They said we are willing to invert the yield curve. It may be that their tonality finally worked because what often happens is people who speculate on shorting a currency will move on to a different country they perceive to be less strong if fighting inflation, and we see hungarys Exchange Rate getting hit quite hard. That may be next target on the international markets. Turkey, its going to be time before we know for sure whether or not theyve convinced the markets that they are going to stand strong and stabilize the currency. Back to you. Chbl chbl well be watching, michelle. From the looks of it, if you thought you were going to go over there and have a respite from the freezing cold, not exactly happening. Looks brutal. No. Looks chilly there. See you later. All right, michelle. Be well. See you soon. All right. We have about 45 minutes before we close it up. The big board, dow is up 124 points. The big weight is for these earnings after the bell. Were heading back towards session highs. Investors are going bargain hunting today, it seems, after yesterdays big selloff. Could renewed fears about chinas slowing economy ruin the party . We go to beijing next. And todays the busiest day of earnings season. The parade marches on after the bell. Amazon and google among others reporting. Full Team Coverage of those marketmoving numbers. And speaking of google, we want you to weigh in on this deal to sell motorola to chinas lenovo. What, if anything, bothers you about that deal . Is it okay for this, well, communist country to own motorola . Youre watching cnbc, first in business worldwide. Honestly, im a little old fashioned. I love chalk and erasers. But change is coming. All my students have the brand new surface. It has the new windows and comes with office, has a real keyboard, so they can do real work. They can use Bing Smartsearch to find anything in the world. Or last nights assignment. And the battery lasts and lasts, so after school they can skype, play games, and my favorite. Do homework. Change is looking pretty good after all. I takbecause you cant beatrning for my frzero heartburn. N. Woo hoo [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. One pill each morning. 24 hours. Zero heartburn. Bulldog you know, not all heroes wear capes. Bulldog you know, some wear fur. And mattress discounters good deed dogs is here to help them. Meet yara. She helps veterans like marv stay independent. This is caspin. He helps wallace with things she cant do on her own. And goldie helps children with developmental disabilities, while suzie works with people in the hospital. You can be a hero, too. Give it mattressdiscountersdogs. Com, or any mattress discounters. Mattress discounters good deed dogs helping dogs help people. Welcome back. Today notwithstanding, the recent pullback in the market has been pinned on three things. Today a report from hsbc indicating chinas Manufacturing Sector contracted this month. The big worry is how much influence thats going to have on markets. With us now is our china expert, gordon chang, from forbes. Eunice, lets start with you. Can you set the stage on whats taking place as best we have a gauge in china . That remains the biggest question. Right. Everybody here is celebrating the lunar new year. What we know is when policymakers come back from the holiday, theyre going to have to face a lot of serious issues. The economy is slowing down. The latest pmi number that you guys have been talking about showed that the manufacturing contracted in january. Its a little bit of a seasonal factor here. Its not particularly an active time of year. But at the same time, the overall trend is negative. So really what we saw this week is investors adjusting to this idea that china is slowing down. Theyre going to have to industries around the world probably wont be able to sell as much into this market. China could shift from being a promise of the World Economy to a problem. You know, gordon, if youre right thats whats going on here isnt just a deceleration in growth but a shift to a growth model that china needs to adapt to, what does that look like . What effect does this change in the worlds second biggest economy have back here . I think the chinese economy is growing. If its growing at all, like 1 or 2 . They have a debt crisis. Essentially, weve pinned our hopes on china. Were not going to be able to sell very much in china. American multinationals in china are going to have a hard time. The promise of the Consumer Market really has not been born out in the past. And the other problem is that beijing is attacking american and other multinationals as we saw with the pharmaceutical companies about six months ago. So this is not a good story. And were not going to get any bump at all out of china. Its just a negative implication of all of this that are going to shock people. Thats a pretty negative story there, gordon. I think certainly a bit more ominous than were giving it credit for here in the United States. Well, you know, china, even if its growing at the initial number of 7. 7 , that means nominal gdp is growing about 9. But china is also creating debt somewhere, between 15 and 30 . So you do the arithmetic. That says a debt crisis is virtually inevitable. China can postpone symptoms, but it cant repeal the laws of economics. One of those laws is you have to pay back debt. Either that or you have to forgive it. If you forgive it, theres going to be problems. So all of this looks very, very bad when you think about what happened in our country where the debt crisis was not nearly as serious as chinas. Eunice, against that backdrop, are there any lines you would draw between this and lenovos deal to buy Motorola Mobility . There are certainly going to be people here taking a look at that, taking a look at the pressure china is putting on american tech companies. Right. I think that with lenovo, what was interesting about that deal is it really just showed it was almost an admission that for chinese companies, they didnt really have what it took to go overseas. Lenovo has been trying very hard to make end roads in the mobile market here in china but also overseas and hasnt been able to do it. Now its got its hands on motorolas technology as well as some of its gadgets that have more cachet i mean, you might not believe it, but actually have more cachet at least globally than some of lenovos gadgets. Theyve done it in the past with ibm. So its very possible that they could actually work out this deal. Eunice, what are those in industry over there saying about credit crunch versus credit crisis, and whether they really truly believe one is going to morph into the next . Right. Well, i thought it was interesting what gordon was saying as well. What here people are worried about isnt only the pace of the economy but also the health of the economy. And this week we had a situation where there was a potential default in the shadow banking industry. Eventually there was a bailout that was worked out. It didnt actually come to a head. But what it did was really focus peoples minds on the dangers of shadow banking, how large it is, the lack of transparency in that sector. And so because of that, people were really focused on what the dangers were in the economy and what that could potentially mean for the rest of the world. All right, guys. Thanks very much. Its one were going to watch and watch for the next set of pmi figures c as well. And eunice, great dress. About 40 minutes left to go to the closing bell. Gee, i wonder why you said that. Can we talk about the nasdaq for one second . We can. Its up 83 points, 2 . Its best performance since october. This despite the fact that apple is struggling today. A great stat i just pulled up. After falling 4. 4 in the past five days, the nasdaq 100 as of at least a few hours ago was having its best gain if nearly four months. Up 2 . And the nasdaq has even added to that since then. So its up a little more than 2 , up 82, almost 83 points. Some of that bidding into what were going to hear from amazon after hours. That stock up 5 today. The bar is rising. Well see if they deliver. Microsoft, could they deliver . Could they be finally settling on a new ceo . We have details on that exclusive search. And facebook sharing hitting new highs today. The stock is up 63 since going public. Keep it right here. Youre watching cnbc closing bell. Welcome back. This stock market giving investors whiplash this month. Todays stocks are rallying back after yesterdays sharp selloff. One stock not participating is apple. Its threatening to close below 500 a share. Seema mody rounding up other big movers today. Facebook setting the tone today, hitting a record high after reporting better than expected Quarterly Earnings and revenue. That helped boost other social media stocks. Check out that list. Twitter, linkedin, groupon and p pandora all to the up side. And Harman International surging after reporting a 53 jump in quarterly profit as a recovering european Automobile Industry increased demand for its auto equipment systems. The stock at a sixyear high. On the flip side, adt, the Electronic Security company reporting weaker than expected earnings. Google, amazon, and chipotle all moving higher ahead of their earnings after the bell. Well have those numbers for you after the bell as soon as theyre out. Scott and kelly . All right, seema. Thanks so much. Microsoft has been on hunt for a ceo to replace steve balmer for about six months. According to kara swisher, that search could soon be over maybe as early as within the next week. And joining us now on the phone is kara swisher from re code. Nbc universal has a Minority Stake in re code. Kara, its really going to happen . Well, ive heard. This has gone on. Its like who shot jr taking six years. Its fascinating its taken so long in the tech industry. Google goes out and builds 50 companies in the interim. I think they have to make a decision now in february. I think going any longer just really is dangerous for the company. Are you ready to go on the record with who you think its going to be . I am. Right now the key candidate i think is an internal candidate whos been running the Enterprise Business there. Longterm microsoft executive, there since the 90s. I have one that i keep mentioning who i still think is an ideal candidate, but hes not commenting. Lots of the outside ceo possibilities have dropped out. Theres not a lot of outside names right now. Maybe theyll have some pop out of the blue. So presumably, you would believe and i think youve reported this in the past about, you know, bill gates having a greater presence on campus of late. Does that suggest that mr. Gates would have signed off and he would be behind nidella 1,000 if hes the man to take the helm . Well, he has to be. I mean, bill gates is a key character here. Theres stories saying hes not. He cofounded the company. Hes a strong personality. I think that it just depends on how much involvement he should have. It can go very well. It just depends. You dont want to get overshadowed either. They have to feel like theyre in charge. I think thats one of the issues around this, whats taken so long, is whos in charge here. And kara, if it is nidella, who runs the cloud and enterprise group, is that a strategic symbol as well about the precome nancy of this . He knows how to work within the company. Its a very complicated company. Someone coming in from the house is a huge learning curve. If he can keep the other lieutenants in place, that would be good. So i think hes more the known quantity candidate. That might be what prevails here in the end. Just back to something you mentioned a moment ago because it sort of peaked my interest here. Did i hear you correctly, are you saying that no matter who this next person is going to be, whether its internal or external, that bill gates is going to have some sort of increased presence in microsoft in the road ahead . Yeah, ive written a story about that. It was a couple weeks ago. I think that it depends on who it is. I mean, you can have someone very dynamic. I think the presence of bill gates will increase. I had written that the presence of steve balmer already decrease. Although, he still owns 4 of the company. I expect him to come off the board. That would be my thats my report showing that. You just never know with these people. Theyre very volatile people. It just depends on what happens. I suspect youll see a lot more of gates and a lot less of balmer. Interesting. Kara, thanks so much. Thanks a lot. The dow up about 129 points. It is the nasdaq thats really raising eyebrows on a 2 move ahead of a couple reports from google, amazon due out in half an hours time. Stocks rallying back today, but the dow is still down more than 4 this year. So coming up, weve got a list of beaten down stocks that could be bargains right now. Also, famed tech investor dan niles says good riddance to motorola. He likes googles deal to sell the hand set maker to chinas lenovo, but does he think u. S. Regulators will approve . Also, his best ideas in tech. Thats next. And we want you to weigh in on what, if anything, bothers you about that deal between google and lenovo. Is it okay to sell a mobile phone business to a Chinese Company . Were going to reveal your best responses later on in the closing bell. You are watching cnbc, first in business worldwide. Go [ male announcer ] its chaos out there. But the mclass sees in your blind spot. Pulls you back into your lane. Even brakes all by itself. Its almost like it couldnt crash. Even if it tried. The 2014 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. 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Want to take a quick check of the markets. The dow is up 123 points. A couple stocks i want to mention here. We obviously have our eyes on apple for the very reason its in danger of closing below 500. Haven hasnt done that in a while. I dont know if you can pull this up. Take a look at jcpenney shares. Down 9 . Theres apple. Just under 500. J. C. Penney is getting hammered today. Not sure what the news is there. Im looking as we speak, but i can tell you that those shares have been beaten up pretty good. Back below 6 a share now. Thats one to watch between now and the close in the next 25 minutes. Certainly. All right. Well, google is making news today with its deal to sell off motorola to lenovo and releasing earnings in half an hour. Josh lipton has a preview for us. Yeah, scott, two big names delivering results after the bell. Lets start with amazon. Analysts are looking for big topline growth. 26. 1 billion on a net income of 274 million. Investors will also be paying attention to shipping costs. As for google, street wants to see eps of 12. 22 on revenue of 13. 55 billion. That would be a 20 pop on the top line. Google making news, obviously, announcing its selling Motorola Mobility, which remember in q3 reported an operating loss of 248 million. Well see how it performed in q4. Investors are also going to focus on cost per click. The street also thinks the number of paid clicks will jump 26 . Kelly, back to you. Wow. All right, josh. Well watch for it. Thank you very much. Googles planned sale of its motorola phone division is drawing the attention of the u. S. Government. Uncle sam may have some concerns about the deal because of National Security. Ayman javers is tracking this story out of the nations capital. Ayman, what kind of National Security concerns . Yeah, kelly. We talked about this a little yesterday when this news broke. The issue here for this deal, if google is going to sell Motorola Mobility to lenovo, a Chinese Company, it will likely need approval in the United States. Ive been talking to some experts today on what their reaction might be, whether theyll bless this deal or noft. A lot of folks im talking to say there are Serious Problems here potentially for this deal. One expert said this deal could be a bridge too far for the u. S. Government to allow the sale of Motorola Mobility to lenovo. Take a look at a couple bullet points here. One expert said there are Major Concerns here. The key is u. S. Concern around cyber security. Of course, lenovo is chinese owned. It has said in the past it is not state owned. What lenovo has to do in order to convince the u. S. Government to allow this deal to go through, they have to stress transparency and lack of connection to the chinese government. They have to commit to u. S. Tech transfer rule and give the u. S. Government access to their technology development. One expert on this area is telling me theyve got to convince the u. S. Government that they wont be able to install any technology back door into motorolas equipment that might threaten u. S. Network security. Thats one area where theyre going to really look very carefully. The whole thing could take a long time. The initial review process itself could be as long as 30 days. Eamon out of washington. Thanks very much. We want to know if anything bothers you about that deal. Your thoughts later on. Maybe they pay 12 billion and sold it for 3 billion. Does that bother you . Shareholders might have concerns. Facebook is up a whopping 15 after reporting Strong Revenue numbers last night. Dan niles, speaking of shareholders, has probably been the most accurate analyst on this stock in its brief history. He joins us now. Dan, we do want to start or we do want to talk facebook, of course. First of all, your thoughts on this google le novo deal. I think its a great deal for google. Motorolas revenues were down 50 year over year. Googles standalone business is growing. Google managed to lose 25 margins on that business. Meanwhile, you look at their base business, about 33 margin. This is going to help boost them by a couple bucks just by getting rid of it. When you look out in time, theyre not going to have any conflict with their phone partners anymore. Microsoft is buying nokia. All of the sudden if you were thinking of putting a microsoft operating system on your phone, youre thinking these guys are going to compete with me selling devices. Google ee googles not doing that anymore. This is more important when you look down the line. Dan, it was about three weeks ago you were on the halftime show. At that time, you said you did not have a position in facebook. You thought the fundamentals were good and that you were waiting to hopefully get that stock at a better price. Did you misyour chance . Well, were buying some today. We own some. So were buying some today as well. Our thought is well actually be buying more over hopefully the next couple of days. Were hoping it comes in a little bit. Because our big issue with the current quarter, and we talk about it at the time, is your ad impressions were going to be down. They were actually down about 8 . That was counteracted by the fact that they show a lot more in terms of high price stats and their average revenue per user was up 51 . If you think about fast bike, stepping back from the quarter, its interesting. The biggest thing for me looking forward is their opportunity to sell video apps. If you look at that, u. S. Tv advertising is about 85 billion. U. S. Online video ads are only about 4 billion. Facebook just this past quarter started testing their own video ads with marketers and they want video ads inside instagram. If you kind of think about what happened with mobile, that went from 300 million in revenues a year ago. This quarter it was over 1. 2 billion. The video revenues are likely to be even bigger than that when you look out over time just given what you can charge for it. And thats the next billiondollar business. Thats what should really drive the next 12 to 18 months of growth. And thats hugely profitable. Because right now, lets face it, when you watch anything on tv, you skip through all the commercial. You cant skip through these ads. Thats what advertisers want. They want you to have to watch this. They can measure it. Thats why to some extent this is the holy grail. Its amazing how quickly the landscape changes. You also told us yahoo was your preferred Internet Holding ing that time. The earnings came out the other day. I love your opinion on what you think now. It appears the bloom is off the rose. However you want to say it, the honeymoon is over. Why dont you say it best. Yeah, i mean, i think we talked about this before. Just because somebody is a good leader of a division inside one of the best companies in the world, which is google, does not mean that theyre going to be a good ceo of yahoo . The reason we own it, its still the same. We own it for ali baba. That business is growing 50 year over year. Even that was a bit of a disappointment, though, dan. That wasnt actually a disappointment. If you look at the way the stock reacted when the earnings came out, the stock was initially up. Then when people got to the guidance with the profits for the company, thats when the stock had issues. Now, what we did was when we saw the coo get fired, we immediately went ahead and sold, keeping the money against our position to hedge ourselves, which thank god we did. When we look at things going forward, we actually still like the story because my view is that the base business right now is being valued at zero. And if you look at what they own in yahoo japan, which its easy to forget about which is actually up year to date, believe it or not. Yahoo japan is doing better than yahoo is. And if you look at ali baba, their business is still growing strongly. So we still think the stock is going to do pretty well. Dan, great to hear from you on a couple of important tech companies. A couple more reporting after the bell. Have a good one. 17 minutes left to go. The dow holding up at about 120 points. A 2 move for the nasdaq, up 77. The biggest day and the busiest in the quarter for earnings thus far. 10 of the s p 500 companies are reporting today. Coming up, well talk earnings with michael monahan. After the bell, its under armour seeing its shares hit an alltime high today. Ill talk to ceo kevin plank about the companys game plan. I always say be the man with the plan but with less energy, moodiness, and a low sex drive, i had to do something. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. 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. To manage your money. R guy around 2 percent thats not much, you think except its 2 percent every year. Go to e trade and find out how much our advice and guidance costs. Spoiler alert. Its low. Its guidance on your terms not ours. E trade. Less for us, more for you. Well, dont look now, but apple shares are in serious danger of closing below 500. Theyre currently down about a tenth of a percent to 499. 83. We havent closed below that level since september 4th, 2013. I want to get to sheila at the nasdaq taking a look at the impact or lack of impact this is having on that index today. Yeah, the nasdaq has been doing fantastically well today. It has been roaring back to life here, up 2 . In fact, one of the best oneday gains since october 2013. So certainly having a big impact today here on stocks, all thanks to earnings, kelly. All right, sheila. Thanks very much. Sheila, by the way, do you have any bargain stocks for us today . I do have bargain stocks. Lets talk about them because, look, it has been a rough and tumble year for 2014. A lot of stocks have been getting beaten up. We actually have found three names that have underperformed in the market so far this year but could potentially be some good longterm buys. Number one on the list is yum brands. Getting hit hard over concerns about china growth, also an outbreak of avian flu. Analysts are saying, if you think about this company longterm, china gdp growth of 7 to 8 , still very good for overall growth for the company. Also, the companys u. S. Business is a cash machine, which bodes well for shareholder returns. Number two on the list is mattel. If you look at the stock outside of the u. S. , the company has been growing there rapidly. Also, has a great product mix. You have all these cool products like monster high and american girl. Really high margin, which all flows to the bottom line for mattel. Finally, number three, lets talk about a retail name thats ralph lauren. Its been a very weak retail tape overall this year. Ralph lauren has gone down along with that. If you look at the company, the brand value of ralph lauren is huge and eventually should pay off in emerging markets around the world. Also, the company has been working hard to scale its accessories business, so that could potentially be the next engine of growth for the company, kelly. Okay. Great ideas in there. Sheila, thanks very much. As we head towards the closing bell with about 12 minutes to go, the dow is up 105. Storms are storming back today. Should you believe in todays ral rally, or will Global Market turmoil keep putting pressure on the u. S. Market . Thats next. Im telling you, do not go anywhere. Were hoping to get a shot as well of eli manning, whos going to be walking the floor. I know you want to see that. So stick with us. Were back after this. 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. I nethats my geico Digital Insurance id card gots all my pertinents on it and such. Works for me. Turn to the camera. Ah, actually i think my eyes might ha. Next Digital Insurance id cards. Just a tap away on the geico app. Could save you fifteen percent or more on car insurance. Everybody knows that. Well, did you know that when a tree falls in the forest and no ones around, it does make a sound . Ohhh. Ugh. Geico. Little help here. Open to innovation. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. Were open to it. Start a taxfree business at startupny. Com. Nwas the most watchedage otelevision event ever. S 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 all right. We are back on the floor of the new york stock exchange. You are looking at a live photo of new york giants quarterback eli manning, who has shown up for the closing bell here alongside pepsi, which is a major sponsor, as you know, of the super bowl. Eli having two super bowl rings. His brother, peyton manning, quarterback of the denver broncos, will be going for his second in elis house. How interesting is that going to be . So they take a photo op here. Theyll go up on the podium. Duncan is here with us watching the festivities unfold. This is a big day on the floor of the new york stock exchange, of course, as eli is here. Im going to try to work my way in here, see if i can get a question or two in for mr. Manning. Eli, let me ask you quickly, were live on cnbc. What do you think your brothers chances are on sunday in your house . I think hes got a great chance. Theyve had an unbelievable season. Hes had a great season. Theyre a really good team. Obviously, the seahawks are very good, but it should be a good game. Ill be rooting for the broncos. What role is the weather going to play in the cold temperature . I dont think itll be a factor. It seems right now its going to be around 30 degrees at kickoff and not much wind. Should be great conditions to play a football team. Peyton is tired of hearing about your two rings. He wants another one so youre even. I know he wants a second one. Ill be rooting for him, hoping he gets it. All right. Best of luck to your family. Thanks so much for spending time with us live on cnbc. Eli manning here again with pepsi for the closing bell. Kelly, im going to send it to you as we get set for that. Great stuff, scott. We want to give people a look at where we are here on the markets. The dow is up 106 points. Its a strong session for the nasdaq, which is up almost 2 today. Its best performance in a couple months. Well be right back after this. [ male announcer ] what kind of energy is so abundant, it can help provide the power for all this . Natural gas. 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[ 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. Were back down on the floor of the new york stock exchange. That was a great moment with eli spending some time with us. The dow is up 110 points heading into the close. Were joined now by rich and john. Bob posani will be along in a minute. Rich, as we look set to go out with a tripledigit move, following what happened yesterday with the fed, what do we take from all of this . Right now we have emerging market volatility leading to volatility here in the u. S. Our views have stocks ending the year higher. Right now with rates dropping, the fed has covered the taper even further right now. Hows the market feel to you here . Is the correction finished or not . Is it going to be a volatile and bumpy right throughout . Scott, i got to say, i dont think volatility is gone. It could easily come back, but i think yesterday the fed threw down the gauntlet and said, focus on the u. S. Its the economy. Its earnings. The u. S. Is moving ahead. Bob, you know, the top of this show with kelly, we mentioned how there was no volatility last year, really, whatsoever. It was straight up. Now all of the sudden volatility has reared its ugly head. It is up and down and up and down. A lot of people question why were down 4 . Why were we up 30 last year . And why did it go so smoothly . I think this is more normal that we should be seeing right now. I think well see some allocation tomorrow into stocks, out of bonds. I want to point out, you were wondering about j. C. Penney. Some tabloid articles out yesterday saying they were going to be hiking prices. Thats all i saw. The volume picked up dramatically. I mean, we saw 50 million shares coming down. Thats two, three times normal volume. If we could look at jcp, the stock was down 8 or 9 . It had broken back below 6. Right about 2 00 or so. Whats more disconcerting, whirlpool down 9 right now. A decent earnings report. The ceo is very buoyant, but i think it got caught up in the weak housing number we had this morning. The hole buime builders are als. Because you have macro conditions dominating individual stock movements right now. Once we get past this period of volatility, were really going start seeing earnings kick in, Monetary Policy easing, and were going to start seeing stocks move higher. John, how do we feel about earnings thus far . Today was the busiest day yet. Its only going to get busier. When i look at it, i see revenues are up ova little over 2 . Earnings are up. It looks good. Its the same as weve seen before in the sense that its orchestrated to a great degree by analytical conservatism, so to speak, going into an earnings season. We got to say, its getting better. John, great to see you, as always. Rich, to you as well. Bob, see you in a second once the bell rings, which its going to do in about 15 seconds. There you go, pepsi here ringing the closing bell. Eli taking center stage as his brother tries to win his second super bowl sunday. Kelly evans picks it up with big earnings from google and amazon just after this. And welcome to the closing bell. You can see there eli manning with the closing well action up with pepsi. Im kelly evans. Were moments away from two huge earnings reports, google and amazon. Well get you those results the very moment theyre out. In the meantime, heres how were finishing. A bounceback day on wall street. The dow up 108 points after a series of weaker sessions. The nasdaq the strongest performer today, up almost 3 at 71 points higher. The s p 00 adding 19 to reclaim the 1794 level as it eyes that 800 mark yet again. Lets get right to it with lots of action. Jo i love weve caught john fort literally on the phone right now. Also with us for todays Market Action, fast money contributor karen finerman. Dr. J, talk to us. Whats the most important thing here in terms of markets . Well, in terms of the after hours, i think its going to be google more so than amazon. Amazon, again, thats all about retail and the web services in particular, cloud and so forth. I think theyre both very high tech. Im not calling amazon just a retailer. So many people want to focus in on the Christmas Season that we just closed the books on. I want to focus on aws, the website services, as well as what amazon has been doing to facilitate other businesses across the web. And karen, what about the Market Action today generally . The fact we had this strong rebound, is it earnings related . I think it was somewhat of a relief rally. Weve had a pretty miserable seven or eight days. We saw overnight some of the emerging markets bounced off their lows. So relief hopefully will calm down in the next few days. All right. Were starting to see action here across these two major names. For the one part, google sitting there we go. A Little Movement now. Up about 1 after hours. I think if we can show amazon right now as well, we had a pretty big pop there on that chart. Indeed, its up about 5 . Full details on those numbers are coming shortly. And natalie, the question is going to be, what is the read through for these two bell weathers but also for tech more broadly. Exactly. What were looking for here is what kind of companies these companies are defining themselves as. Because theres so many verticals across them. Theres mobile, desk top, web, web services, cloud services. Its interesting to see not just how the companies do, but how they do within the sectors. Amazon was up 5 today. That is todays session move. You are not seeing the after hours move. Those results are due any second now. Google is reporting now. Lets get over to josh lipton. Yeah, kelly. Google just reporting. Remember what the street was looking for here. 1222 on 13. 55 billion. Google reports 1201 on 16. 86 billion. Just going through the release here. Paid clicks, the street thought that would be up 26 . It was actually up 31 . Cpcs, the street thought you were going to see that down about 8 . Theyre down about 11 . Also, Motorola Mobility remember in q3, the operating loss there was 248 million. In q4, the operates loss is 384 million. Kelly, back to you. Josh, thanks. Want to bring in a pair of analysts now with a bit more context. Tom, your take. This is a big miss on the earnings number. Yeah, i think for google, i think theyre going to pass to the extent that yesterday they announced theyre divesting the hand set business to lenovo. I did think, though, as far as going into the quarter that expectations were pretty high. So not overly surprised that they missed on the bottom line, but i think investors will give them a pass given that the more Important News is theyre getting out of the hand set business. So that overshadows the earnings. David, do you agree . Yeah, the stock has run a lot. Its gone from being very cheap to being, you know, not an inexpensive anymore. The top line is very good, although the cost per click is still an issue. In other words, prices may be down, but units are way up. Search is clearly growing really well, and theyre moving to mobile, which is lower per click. So just like facebook, it looks like the volume is moving from desk top to mobile. Theyre going to benefit, but it has not hit the bottom line because of other investments. Oerk. Google shares are moving up about 1 after hours. Guys, thanks. Were also getting an earnings surprise right now. Zynga is out with results a week ahead of schedule. Julia boorstin has the numbers. Zynga shares are halted with news of its biggest acquisition yet. A deal to buy natural motion for 527 million in cash and stock. The ceo telling me the acquisition could accelerate zyngas move to mobile. More news, theyre slashing 15 of their work force, a total of 314 employees. 147 million beat projections by 6 million. A loss of 3 Cents Per Share in the Fourth Quarter is a penny better than forecasted. Users, though, continue to decline with monthly active users down 16 just from the third quarter. Though users average daily payments increased 10 from q3. Zynga predicts revenue and adjusted Earnings Growth will improve each sequential quarter this year with full revenue projections better than expected. You can find more on cnbc. Com. Kelly . All right. Zynga shares im not even going to go there. Julia, thanks very much. Important news for zynga, out with earnings early and talking about making this acquisition for natural motion. The biggest yet. So 527 million. Lets get to john fort now off the line. As we work through a couple of big reports here, what can you tell us . Well, weve got amazons numbers. It looks like amazon is reporting revenue of 25. 59 billion. That compares to an expectation of 26. 05 billion. Earning per share of 51 cents. Theyre also guiding to a range for q1 of 18. 2 billion to 19. 9 billion and a break even on operating income plus or minus 200 million. Looking through here for some highlights. They say they had a recordsetting Holiday Season for amazon prime. Their membership program, prime instant video selection increased from 33,000 to more than 40,000. They still dont seem to be giving kindle numbers. But they do tout, which they had announced that the mayday button, which is the Customer Service button you press on the kindle, their Response Time was just nine seconds. Interesting guidance. The revenue a little weak based on what we would have expected. Of course, thats whats driving the stock, the expectation of revenue growth. So i want to look through and see how much of this is a shortfall on international versus north america. North america has been growing a lot faster. Let me see here. North america net sales are 15. 3 billion. International, 10. 2 billion. Looking at expectations, looks like the shortfall is split equally between those two based whereon the street had expected them to come in. And amazon shares are moving lower by almost 8 after hours. Karen, your thoughts here. You know, amazon is just always astounding to me. Seems like there was a miss here. Margins came in close to zero. I dont know why this stock has got an pass for a couple hundred points. To me whats happening at google is more interesting. It makes more sense to me. Theres some semblance of valuation. I cant focus on an amazon. Im much more interested in looking at what a google can do. I want to go to tom and david on this as well. Tom, reacting to amazons numbers here, a big move lower after hours. I think if you look at the report, i think johns looking at it the right way to determine if theres something going on, on an international basis. All the numbers certainly pointed to a blowout Holiday Season for amazon. You looked at 20plus million amazon prime members who were taking advantage basically of being able to sign up on saturday and have packages delivered in time for the holiday. Sales is really the big determiner of the stock price. Id like to get a little more details on what happened on the top line. David, its not uncommon for amazon to miss on the holiday quarter. From that point of view, this isnt as much of a surprise, but what do you think it is here that spooked the shares down now almost 9 . The stock has been a huge success. You know, obviously no one looks at it on earnings because its over 100 times earnings. Therefore, all of the expectation is on revenue growth, and while it was good, it was pretty much expectation. So a lot of people are just, you know, looking for beats. Valuation Means Nothing to the current investors. A lot of them get off if they dont continue to beat the up side for whatever reason. And what worries us as fundamental investors is when will the Company Actually be make real money . They just forecasted to break even for the next quarter. John, when are they going to make money . I dont know that, but looking through this report at some of the numbers, it does appear to me that media sales, sales on the media line, both in north america and international, are weak versus what they have been typically. For example, a year ago we saw media come in at around 24 of revenue. Its coming in a little lighter, about a point lighter than that. International had been 40 of revenue a year ago. Its a little lighter than that. I dont know exactly where the street had projected media to come in. I dont know whether this is perhaps a bit of a netflix effect taking place. We saw strong numbers from them perhaps. Amazon not gaining as much ground as netflix is in that aarena. Thats something i would have a question about. And just to update people real quick on zynga, that story julia was just talking about, those shares will resume trading at about half past. Well let you know what the action looks like. Natalie . We also have to tie the media sector in with the amazon prime. Amazon prime means you can watch amazon on demand. Theyve been trying to build out that library and establish themselves as a content company. Were thinking of amazon not only as kindle sales and book sales but Digital Media streaming. Thats why we take a look at put them against other Companies Like apple and google. Thats why these names are important to go together. But where is the difference here . Amazon will always say theyve had a record quarter. We had a record this, record that. How many people are getting prime to stream video, and how many people are getting prime because they want that package at their door in two days or less . That makes that a emessaging problem. Then people who have prime for the retail benefits of it dont know they can use this as a netflix service, so theyre paying for both things. Dr. J. . Id say its a little confusing. I use prime and find the site difficult to navigate. You have to go to the amazon video site to basically get what you want on the amazon prime under your account name and password and then push it over into your library on the other side. Its not as easy as netflix, for instance. I was just going to say, netflix has this, to some extent, blowout quarter. At least the shares responded that way to it. So what does that tell you about the challenge here for amazon . We saw a lot of user interface snags like this with netflix too. We saw it with hulu. Especially when they started to go to different set top boxes and devices. Maybe its still early. I hate to say that about a company like amazon. Shouldnt they have user interface figured out by now . Tom, Amazon Web Services has been such a juggernaut for this company. Some are calling it i think a 9 billion or 10 billion business within a couple years. I understand they dont necessarily break that out as a line, but were talking a lot about the consumer side. Thats equally a big deal. Yeah, if you look at their northern american other revenue, which includes web services, thats been growing very strong. I think the story on the media front is if you look at Consumer Electronics, especially during the holiday period, as it was evident by best buy, you had new strengths in tablets and smartphones. But you didnt have telephones or other devices working well. If you went to the Consumer Electronics show this year, theres not a lot near term to get excited about on the television front. David, what about you . I think you should really keep in mind that to grow their video services, just like netflix, they have to invest hundreds of millions of dollars in content, and theyre still charging the same fee they still charge just for the prime package delivery. Its a cost, not really a revenue in the short term. Web services has been hundreds, almost billions of dollars of investment. So, you know, were not sure if theyre buying business margins are beginning to come up, but theyre nowhere near ending the cap x on this thing. In other words, were buying amazon for the distant future when they become so big they have to slow growth but become hugely profitable. Theyll be the next walmart, google. You know, that seems to be far away looking at this quarter. But they have an opportunity to scale back their fulfillment investments. You saw that in 2013 when they added seven to ten centers. In 2012, they added more like 20. This brought them a lot closer to the consumer, giving them an opportunity to move forward with grocery. I think amazon can invest in video for an extended period of time. The two margin lovers are fulfillment and increasing thirdparty sales mix. Tom and david, thanks. Karen, hold that thought for 45 minutes and well all tune in. Karen at the top of the hour on fast money at 5 00 p. M. Be sure to stick around and catch that. My thanks to our analysts for joining us. The rest of the panel sticks with me as we run through these earnings and other big ones like chipotle after the bell. It is the busiest earnings day of the season. Up next, find out what all of the earnings and guidance are saying about where the economy stands and where its going from here. Plus, the view on earnings. The cfo of pitney. Theyll speak with me exclusively on the heels of those results. Keep it here. Youre watching cnbc, first in business worldwide. vo you are a business pro. Seeker of the sublime. You can separate runway ridiculousness. From fashion that flies off the shelves. 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. Cozy or cool . Meow or woof . Everything the way you want it. Until boom, its bedtime and your mattress a battleground of thwarted desire. Enter the sleep number bed. Designed to let couples sleep together in individualized comfort. Hes a softy. His sleep number setting is 35. Youre the rock, at 60. And as your needs change over time you can adjust your bed to sleep better together. 48month financing available through february 2 only at your local sleep number store. Find your sleep number setting and welcome back. Lets start with breaking news on the fed. Steve liesman has details back at hq. Hey, kelly. The Federal Reserve making it official that the fed at its meeting this week did vote janet yellen to be the chairman of the federal open market committee. What we didnt know is she will be sworn in on monday, february 3rd. So over the weekend shell be vice chair but in charge because the vice chair has all the duties of the chair in the absence of the chair. Ben bernanke, apparently the name plate is being taken down, the desk being cleaned out. Janet yellen will be sworn in monday morning at 9 00 a. M. In a private ceremony. Neither you or i are invited as far as i know. Steve, i got an invite, but its all right. Ill let you know how it goes. No, im kidding. Its the end of an era, and it will be a very interesting new one. Thank you so much. Chipotle earnings, mean while, are out. Sheila . Chipotle shares are popping in the after hours, up more than 11 . Basically, erasing all the losses the stock has seen this year after a very strong Fourth Quarter earnings report. 9. 3 , handily beating estimates of 6. 7 . Sales beating 844 million. Profits also in line. The companys forecasts also strong saying it wants to open up to 195 new chipotle stores next year. So the growth story still continues for chipotle. The stock responding very well to that. Kelly . For meeting earnings expectations, its up 11 . Thats incredible. Sheila, thanks very much. Lets look at some of the other big earnings movers, including some of the names weve just heard from. Seema mody rounding them up. Were going to begin with google, whose stock has been volatile in the after hours. It reported Fourth Quarter earnings of 12. 01 a share. Slightly less than the 12. 20 the street was looking for. Revenue came in a bit more than analysts were expecting. Amazon taking a big hit in the after hours after reporting both earnings and revenue came in below street expectations. Stock down 9 after hours. Zynga shares, though, halted in the after hours. Trade set to resume at 4 30 p. M. Eastern. It reported a Fourth Quarter loss of 3 cents a share, a penny better than the street was expecting. Revenue came in higher than forecasts. It also provided a solid 2014 outlook. Kelly . All right, seema. Thanks very much. So much action. I just want to kick it around here with our panel as we digest what this all means. Im just going to throw this out there before we get into the details. Also joining us is jeff cox, making the point that despite strong earnings so far, there has been a troubling trend with regard to guidance. What is that, jeff . The earnings season has been pretty good so far, as we all know. The troubling sign that ive seen and has been report ed, up to about 60 of Companies Issuing downward looking forward guidance. While were celebrating pretty good earnings season, the outlook isnt so great here. I think thats troubling on the levels of what were seeing the problems with emerging markets, seeing the uncertainty over what fed policy impact is going to have. I think its something were really going to have to keep an eye on going forward. Before we get into the details of some of these big earnings, what do you think about this theory . Weve been hearing weakness throughout the Retail Sector. We thought maybe its weather. Maybe its amazon stealing share. Its not a great reaction. Should we be worried about this market going into the bulk of retail earnings season . Well, i was worried until the chipotle numbers came out. Chipotle came out up 9. 3 samestore sales. Thats pretty big. As far as amazon, we all knew that it was going to be just cutthroat competition, kelly, going in this season. Indeed, it was. Handtohand combat between best buy, primarily, and amazon, especially for Consumer Electronics. But i think they ended up amazon built a lot of their prime product up because of that, because people could order for the whole year with that one fee. Unfortunately, i dont think its really going to help them in the next three quarters that they have to pay for robbing peter to pay paul. Now they have to pay for it. Its interesting. Visa reported as well today. While there was growth, it was slower than in the third quarter. They said this is consistent with what theyve been calling a tepid recovery. They also say until you start to see job growth and improvement in personal income, they think its going to remain that way. That should be a signal for a lot of retailers. And there are actually people out there saying maybe were overlooking the impact that obamacare, for example, has had, as people have had to take out their Discretionary Income to pay for the new program. Its not going to help when they get sticker shock on their heating bills. Perhaps i dont know if you think theres a consistent message across the tech sector with regard to the health of the u. S. Consumer. I think you got to take it all together. Look at apple. Revenues came in a little light, particularly in north america with iphone. Ipad was strong. Nokia came in a little weak. People are concerned about the growth at the high end in samsungs smartphone revenue. We know whats happening in the pc sector, overall electronics. Look at amazon a little lighter than you would have hoped. A lot of these companies are appealing to a smaller demographic and are seeing inline, decent margin but not the growth you would hope for. I wonder if theres something to pick out of that. Natalie, what about you . Meanmeanwhile, consumers are liking things that are free. We saw the social networks have a good day today. People are willing to do things online. Were noticing a lot of ad engagement, where we thought maybe that wasnt a viable business. Now facebook is showing us our users really are engaged. Theyre watching what we have to advertise to them. Theyre clicking it. So free is going a long way. Its not necessarily the consumer thats paying this quarter. Its corporations. Jeff, it is that forwardlooking commentary youre talking about that will perhaps give us the real window into whats happening right now in the economy. Well, yeah. I think youll get a bigger window into this twospeed recovery. Its an issue of wealth disparity thats become such a big thing. Its going to be a big theme in the market this year, and more importantly in the economy to see what quality of recovery do we have, what quality of earnings do we have. My big question here obviously is when you see companies lower forward guidance, is this real i mean r they really worried about their prospects, or is this more lowering the bar bs just saying, hey, yeah, things are troublesome and we come back and beat the lower bar. But i do think, you know, the added element here is the fed policy, the change in fed policy. How does america react to the pullback in liquidity. And that remains an open question. Jeff, thanks very much for joining us at this hour. Well continue to work through these earnings reports. Coming up, pitney bowes cfo. Were going to talk to him. That stock near a 52week high. Keep it right here. Back after a quick break. But way too many arent. E fe why . Because selling their funds makes them more money. Which makes you wonder. Isnt that a conflict . Search proprietary mutual funds. Yikes then go to e trade. Weve got over 8,000 mutual funds and not one of them has our name on it. Were in the business of finding the right investments for you. E trade. Less for us, more for you. The funds prospectus contains its investment objectives, risks, charges, expenses and other Important Information and should be read and considered carefully before investing. For a current prospectus visit www. Etrade. Com mutualfunds. Welcome back. Pitney bowes beating earnings today. The stock then taking ae jump up about 17 today. Take a look at that chart. Joining us now is the chief financial officer. Its great to have you with us. I imagine you guys are pretty pleased with the stock move today. What can you tell us about the quarter . Were very pleased with the move today, kelly. The quarter was great in the fact we laid out a tra transformation of the business over the next three years. One of the key milestone was to deliver revenue growth. In this quarter, we hit that milestone. We delivered revenue growth. That was a key. We also saw great performance in our Digital Commerce business, which was up 17 this quarter. You know, you guys introduced the postage meter fin 1920. What does pitney bowes look and stand for in 2020 . In 2020, theres still going to be a lot of mail volume. Well still provide those things to our customers. Today were serving customers like facebook, like twitter with location intelligence technology, like ebay with International Shipping for ecommerce solutions. Were delivering technologies that will deliver in the types of things that people need in the future. Who do you consider your biggest competitors . Whos executing well in this space right now . We have very different competitors across the different parts of our business. But what we really look at is the fact that we are delivering technology that some of the biggest social media and Technology Companies today are validating as the best technology out there. And could you give us some examples of that . Sure. In the case of ebay, we provide shipping solution that allows customers around the world to purchase from domestic sellers. And we turn that domestic purchase into an international shipment, and we take all the complexity of that, boil it down and make it one simple transaction for the customer. And how much investment are you going to be doing in the next year . And how much profitability do you think thats going to generate . Well, were really making investments. Weve been making investments across that portfolio. We invest about 150 million a year in research and development. But were also investing in our infrastructure in terms of our erp system. We announced that into 2014 we would be investing to build out an infrastructure for the types of businesses were going to deliver in the future. Given that you work with a lot of the social media names, for example, the big guys it sounds like, but can you tell us if theres any startups, any interesting players who we should be watching throughout this industry . Well, in terms of the social media industry, theres obviously a number of players. Were really focused right now on establishing ourselves as some of the biggest players out there today. But we are really working across the whole environment to look at the best ways to deliver our technology. And finally, we were just having a discussion about demand, consumer demand here in the u. S. But effectively demand across the economy. How would you describe the strength of the u. S. Economy right now from your business . Well, what we really watch is the Small Business environment. We have a million and a half customers around the world. The vast majority of them are Small Business. And wed like to see obviously more new business starts to help drive our business and we think we can help them drive their business. All right. Well, from startups to some of the biggest players, you guys certainly have a lot of exposure and exciting opportunities. Thank you so much for joining us this afternoon. Great. Thank you, kelly. Well, from Office Technology to athletic apparel. Under armour was also surging today on the back of bulked up profits. The companys ceo speaks with me on a first on cnbc interview next. Well talk profits, the economy, and his plans to keep the company growing. Theres also a pretty big game this weekend. Keep it right here. 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. Welcome back. Lets send it out to seema mody for a quick market flash. Seema . Welcome back to closing bell. Lets look at the big movers after hours. Amazon falling big after hours, this after reporting weaker than expected Fourth Quarter earnings and revenue. The stock currently trading down by 9. 8 after hours. Now to zynga. Zynga reported a Fourth Quarter loss of 3 cents a share, a penny better tharn the street was expected. Revenue came in higher than expected. It also reported a solid 2014 outlook. The stock was halted. It just resumed trade and now up 20 after hours. Talk about big moves, kelly. Wow. A couple of them. Thanks very much. Speaking of big moves, at least one retailer isnt suffering because of this winters bitter cold. Under armour reporting better than expected Fourth Quarter results, thanks in part to its cold weather gear. Shares today more than 22 higher, rocketing the stock to a new alltime high. Joining me with more on those Earnings Results and also here to unveil the companys newest product is under armour ceo kevin plank live at Grand Central terminal in new york city ahead of the super bowl. Kevin, so much happening. Great to see you. Tell us first of all what it is that youre launching. Hi there, kelly. How are you . Yeah, were down here at Grand Central station. You know, broadcasting in a little bit of chaos. But how else would you want it here . Today we launch a new product called speed form apollo, which is our latest innovation in footwear. Weve been in this category of business for eight years selling it, 11 years developing it. So i think its taken 18 years in the apparel business to get the swagger and confidence we created in apparel. I think were proud of the confidence were coming out in the new speed form apollo. Best new product from competitor magazine. Were firmly in the running shoe market and making big strides to come. Okay. Kevin, im going to bring in the panel in a second. Before i do, is it about 18 years of execution, or is it about a really, really cold winter that delivered those Fourth Quarter results for you guys . Yeah, no, no. We were up 25 in the Fourth Quarter a year ago. It was probably one of the warmer winters or Fourth Quarters weve had in a long time. No question about it, when the weather gets cold, everybody in our industry definitely gets a little smarter. You know, theres a lot manufactumore going on than just cold weather. Were very proud of results, especially the team that made them happen. Theres a lot more to come, and you know, i think theres a tremendous amount of momentum behind us but a heck of a lot in front of us. Shareholders seem to feel the same way. Dr. J . Kevin, congratulations. My brother is a true believer in your product. As well as kelly. Changed my life in high school and college sports. Theres no doubt kids love this and adults are wearing it too. But shoes, this is the big push for you guys. You really didnt have a big impact in this area yet. Obviously as a category, this has to be something that really excites you and should excite shareholders if indeed you can move the needle on this visavis against adidas and nike. Yeah, you know, first of all, we had a tremendous day today. Again, under armour had a huge 2013. We performed equally on the top as well as the bottom. Were bringing a balanced approach. After eight years as a public company, after 30 top line, 30 bottom line growth, i think you see a balanced companies beginning to come into its own. We certainly dont have all the answers. The type of partnerships that bring around the brand, people like notre dame, the United States Naval Academy and launching today with speed form apollo. Its a big day for under armour. Again, i think were taking new strides. No longer just a compression apparel brand. Certainly a fullservice performance brand. Kevin, this is mary thompson. I have a question about the speed form apollo. First of all, what is the type of runner that youre targeting with this shoe . And what is it going to sell for . You know, this is the first shoe made exclusively in an apparel factory. I think we took what we knew very well, which was our apparel heritage and background. Again, 18 years of perfecting that. We said, you know, instead of being confined by constraints that other Footwear Companies have had, you know, we were able to take the ideas of fit, form, and function from what fits better than a compression top and applying that to the foot. So this shoe is something that, you know, again from the fabrics to the softness, not a single stitch made is completely seam sealed in this product. The way it comes together, its an extraordinary product. At under six ounce, itll be one of the best, lightest, most efficient products out there in the market. Incredibly competitive at 100 retail. I have a question about your overseas strategy. Under armour has been known as kind of an aspirational brand, but for americans. I notice that last quarter your overseas sales were only 6 of your total revenue even though it still is growing. So what is the International Strategy . Yeah, im sorry, guys. Im having a hard time hearing that one. Yeah, the question kevin is whats your International Strategy . One more time for me, kelly. Sure. Whats your International Strategy . How are you going to grow outside the u. S. . Yeah. Well, you know, i think were just getting going. We defined our goals to be a global brand. One day more than half our revenues will come from outside our home country. Today thats a little less than 10 for us as a total company. We said this past june that, you know, international would represent more than 12 of our business, doubling from the 6 it is today. We feel very confident about that. Tremendous strides and growth that weve seen, whats happening in china. We have 13 brand Stores Opening today. Well have more than 50 by the end of this year. The strides we have in japan. You take out the exchange and japans a business up 30 on a 250 million business as well. So we know the under armour brand translates, and were just getting started. We have new leadership in place, an industry vet whos doing a great job. The footprint for under armour is big and one that probably the thing that excites me most is taking this product story of apparel and mens and womens apparel and footwear wyou have a Big Marketing event coming up as well with so many other sportswear brands at the olympics. Thank you so much for joining us this afternoon. Thats kevin plank from Grand Central as they launch footwear. Real estate agent to the stars is back. Coming up next, we have the big reveal on which milliondollar home located in a super bowl winning town has the most bang for your buck. Dont go anywhere. [ 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. Cozy or cool . Meow or woof . Everything the way you want it. Until boom, its bedtime and your mattress a battleground of thwarted desire. Enter the sleep number bed. Designed to let couples sleep together in individualized comfort. Hes a softy. His sleep number setting is 35. Youre the rock, at 60. And as your needs change over time you can adjust your bed to sleep better together. 48month financing available through february 2 only at your local sleep number store. Find your sleep number setting and know better sleep. 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. Welcome back. It is not a pretty trading session after hours for amazon. After that retailer reporting a pretty big miss on the earnings side. The shares are down at this point almost 8 . If we were open right now for trade, if this was happening during a regular trading session, this would be the companys worst day since october 2011. Its something to keep in mind tomorrow. Also, of course, watching the nasdaq after having a strong session with that index up almost 2 today, this could weigh heavily when we ring the opening bell tomorrow morning. Well, throughout the day here on cnbc, weve had seven homes from seven super bowl winning cities going head to head to see whose turf is the best bang for your buck. Were down to the final two. The home near the Baltimore Ravens is going up against the house near the new york giants. Good luck. This threestory contemporary colonial sits on just over half an acre with a fully landscaped yard. It has a roomy twocar garage and plenty of street parking, making this the Perfect Party house. This contemporary house is built on the banks of a river in a secluded waterside community. The land is owned by the coop association, but the house is just a short tenminute commute to the hustle and bustle of city life. Inside this twostory foyer welcomes your game day guests to more than 6,000 square feet of living space. Needless to say, this spacious Gourmet Kitchen is the perfect prep spot for your super feast. With the Gourmet Kitchen featuring state of the art appliances, this 2300 square foot home has an open floor plan, with easy access to both the living and dining rooms. The main floor master suite has one of the homes two gas fireplaces, but the real draw is this stadiumsized master bathroom, one of 4 1 2 in the home. Upstairs are three more bedrooms, in case some of your guests might need to crash. This three bedroom, three bath has a master bedroom thats the entire top floor of the house. Its even got a jacuzzi with a view. The real entertainment value of this home is the lower level theater. Its just off the rec room, which has a wet bar, and right by a very large exercise room where youre going to need to work off those wings. All for the asking price of 1 million. With floortoceiling windows throughout and water views, a secluded backyard featuring a pond with real fish, this escape could be yours for 985,000. I think dom was getting comfortable there. Joining me now, Real Estate Broker to the super rich, dolly lens, whos been working through this competition all day. Where was dom . He was at new jersey. Edgewater. A hop, skip, and a jump across the bridge, if the bridge is open. Good point. And where was diana . In ravens territory, baltimore, maryland. So when these go head to head, is location the only thing that matters . You know, location is a key thing, but its not the only thing. Theres replacement costs. Theres all kinds of factors that are involved, including how many the supply and demand. How many are on the market that compete exactly with that house. Because the two properties to me look kind of similar, right . One is really like a condo coop apartment type property. The other is a real house, house. Okay. Does that mean the house, house gets the edge here . The house would get the edge, and i think in this case does get the edge, but its not because its a house, house. Its because its in a great location. Theres nothing to compete with it right now on the market. So its likely next to sell. Its only on the market a month. I just have to ask, for people looking at the Real Estate Market right now, is there any such thing as a coldweather discount this time of year . Thats a really good point. There really could be. Ive had quite a few appointments canceled because its too cold to go out. If youre the brave one in the too cold to go out, you might be the only bidder. You actually might get what you want because of that. So the winner of this competition today, the super bowl edition of milliondollar homes is . Well, eli manning was just here. Hes going to be really upset. Its not eli manning. Its the ravens. Exactly. Guess theres not much we can read through with a denver and seattle game. Nevertheless, always keeps people interested. Thank you so much. Thank you. Wait until you see which stories are surging to the top of our hot list next. An uproar in hot list. 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Theres an expression in news, if it bleeds, it leads. Amazon is our leader right now. It came in with the big mess. Whats going on . I watched the traffic pattern on this. They dive into the story on the earnings. Right to the quote page, where they have a realtime ticker on it. And theyre hanging on that to see if it changes. It was down 10 . Now, its come back nearer to 8 . Theres hope there yet. And the second one on our list today, google, also came in with earnings. Right now, at first blush, it didnt seem too great. As people start digging through the report, theyre finding things in the core business in google. Actually doing well. Theyre diving into that story, too. Theyre going into the quote page. But theyre not hanging quite as long. Everything is good on that quote page. On the third one on the hot list today, january barometer. Were almost to the end of the month, right . And it doesnt look good. Not looking great this time. We have two pieces on that. Looking at the odds, just based on the figures now. And we have a deeper piece, what we call a thumbsucker. And whether or not the january barometer is all its cracked up to be. Can you tell which portion of the traffic is mobile when its not when it comes to reading these stories . I can. And what weve seen over the last year and its intensified over the last six months, more and more mobile traffic is coming to our website and checking things out. In fact, we Just Launched a new app where you have a dedicated mobile ticker operation, people loving that, too. I was wondering when you mentioned the ticker. Exactly. Amz and goog, got it. Thank you, allen wastler. A last chance to send in your tweets. Were asking you whats bothering you about google selling the motorola business. Your thoughts, coming up next. vo you are a business pro. Seeker of the sublime. You can separate runway ridiculousness. From fashion that flies off the shelves. And you. Rent from national. 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Just a tap away on the geico app. Could save you fifteen percent or more on car insurance. Everybody knows that. Well, did you know that when a tree falls in the forest and no ones around, it does make a sound . Ohhh. Ugh. Geico. Little help here. Welcome back. We are asking, what if anything bothers you about the Google Lenovo deal. Whatever lenovo calls itself, any chinese firm allowed to grow that big is an stumt of the chinese state. The big losers are those who bought the moto x. And brian is a little upset about this sale, as well. If usa lets pork processing and theaters purchased by chinese corporations, why not motorola . An interesting question. We heard from eamon on this earlier. Dr. J. , is that the one to watch tomorrow . I think amazon is the one to watch, kel, if we get no bounce at all. We had a little afterhours bounce. It was pricing in an 8 move with the combination of call input. Thats how much its down in the afterhours here. If it can work its way back towards 400 or even, you know, cut this loss in half, thats a victory for amazon. We have to remember, amazon had some news leaks this week, with possible share persontoperson money sharing and kindle at point of sale. Maybe that news might buoy a little bit if it becomes official. We can watch for that. Jon, what are you thinking . You have to look at what happened with other stocks today. Facebook had a monster day. It pulled up twitter, yelp, splunk. Amazon had a great year. Theyre starting to shift in other areas. Google, though, a really Strong Performance in general. And theyre dumping motorola. They might get more. 59 . 59 last year. But im thinking that some people, as you indicated, might be dumping it. If theyre forecasting a breakeven second quarter, maybe people want to is that too good now . No. They want to pull back and see what they have to say on the call. Well listen for all of that. Thank you so much for being here on a busy afternoon. Really appreciate it. And fast money is coming up in a couple seconds. Melissa lee. Amazon . Were talking amazon. And with the big mess and the big decline in the afterhours session, what does it mean for the stock, which seemed to be bulletproof in looking past its valuation. But what does it mean for the Retail Sector . It lost a lot to amazon during the Holiday Season. Thats what were wondering. Over to you guys. Thanks, kel. Were following a number of breaking stories. This is the busiest day for corporate earnings this quarter. Amazons Conference Call beginning right now. Shares of that stock have been sinking in the afterhours. Well bring you the latest from the Conference Call throughout the hour. Google, missing on earnings. That Conference Call began about a half hour ago. And breaking news from facebook. The company announcing