Buy, neutral, comes after young sales in china disappointed on some can chicken issues there. Thats one to follow. Goldman downgrading shares of young. Linked in, buy ahead of earnings. Buy toll. Virtual, doc. Gap stores, 34. Long ieo and Energy Player etf. I think it goes higher. That does it for us. Dont forts to catch more fast at 5 00 p. M. , follow me on twitter and scott wapner cnbc. Power lunch starts right now. Indeed it does. Welcome to power lunch, everybody. Bulls, large and in charge. The dow trying to wipe out mondays triple digit loss. We have two breaking news stories this hour. President obama to speak in 15 minutes time. He will ask congress to come up with shortterm packages to put off automotiatic spending cuts. Hampton, we begin with you, Budget Office right now releasing its budget and economic outlook. Give us details. Reporter the Budget Office, assumes no change in current laws, 2013 fiscal year budget deficit, 845 billion. Cbo projects first time below 1 trillion since 2008, 5 of gdp, well below the peak of 2009. Saying deficits decline as a percentage of gdp could dip as low as 2. 4 in 2015. Then they start to rise again in 2016. That 10yearold cbo deficit projection increased overall to 4. 6 trillion for the 2013 decade up from 20. 2 trillion in its previous. Cbo sees real gdp growing 1. 4 in 2013, the sub died growth limits businesses to hire more workers, cbo projecting Unemployment Rate to stay near 8 this year, also expecting Unemployment Rate to remain above 7. 5 through 2014. Debt and deficits will be larger, the cbo says, if current laws were modified and Rising Health care cost and increased federal health care subsidies, spending cuts and higher taxes with offset deficit increases longterm says the cbo. Over and over again this report talks about those shortterm budget decisions on the horizon including march 1st, the automatic spending reductions, sequester. What does congress and the white house do about the expiring continuing resolution in late march, funding for the operations of government and, divorce, the next round of the debt limit debate due to happen in may. Tyler. Hampton, thank you very much. Now to john harwood at the white house. We will get specifics, i gather, on what the president wants from a shortterm budget deal. Any hints . Were not going to get specifics, at least thats the guidance ive gotten from the white house official, tyler. What the president is going to do, relates to the march 1 deadline hampton just mentioned, propose to put off that budget sequester, indiscriminate budget cuts affecting definite and nondefense programs for at least several months. That would require tens of billions of dollars. The overall sequester is a trillion dollars over 10 years. That means if you get about 10 billion a month, you can in effect buy it down or put it off. That was done in january when the fiscal cliff deal was struck. The president is going to seek to repeat that. A part of the effort of both sides to deescalate bridgmanship over the budget. Republicans acted in that direction by putting off the debt ceiling a couple of months until may as hampton mentioned a minute ago. The president is going to propose the same thing on the budget sequester but not, according to a white house official, laying out his own plan. Hes going to call on congress to do that and expected response from republicans, tyler, is, hey, mr. President , where are your cuts, we want to see them. John harwood, thank you very much. Once again you will see the president s address live right here on power lunch in just a few moments. Before that occurs, we have a triple digit advance. The market added to advances a few moments ago when we got budget figures. The dow up 109 points. The nasdaq up 34 and the s p 500 is up 14 points. More on the trading action right here from bob pisani. He joins me on the floor of the nyse. Its almost like yesterday didnt happen. The important thing is, i know it doesnt seem terribly exciting but we are 14,000, were a couple of points from a historic high from the dow jones industrial. Weve been up a couple points throughout the day, 14, 164, the historic closing high. I use closing highs, not intraday. Thats what you have to do. We could do that in the afternoon. You never know. S p a little further away, about 50 points there. Keep that in mind. Were moving towards that historic high. Hmos had a great day. Centene good earnings, bring that group up, thats the leader. Some are doing well, revlon, estee lauder, excellent reports whats going on in the United States. Last week liz arden had a terrible time. Store sales dropped. Kenny is with us as well. Its hard to know where to start. We had a market that wiped out what we saw yesterday. Now we have the president speaking at 1 15 or there bouts about pj budget deal. What do you think the Market Reaction will be . I dont think the market will do much of anything. I think they will sit and listen. As john harwood said, hes not going to propose anything specific. He will sit and wait. I think the market will get frustrated. They want action at some point. Kicking the can down the road only works so long. At some point youve got to pay the piper. At some point youve got to come up with the cuts that have to happen. We did see a positive deal, moving the debt ceiling negotiations back a little bit we got a bit of a bounce. What i mean, youll probably listen, we had the bounce today, down 130 points based on political instability in europe. Rally right back, the president going to get through that and talk about longterm cuts. I dont think youll get much more, well be stuck here around 14,000. Longterm ron barron was on cnbc. He made a pretty outrageous projection, weve all been talking about it down here. Lets take a listen to what he had to say. Im expecting 7 average growth for extended period of time since were below where stocks normally trade. How long will that take . 7 a year, you double your money every 10 years. That means if the stock market is 14,000 now, it could be 28,000 in 10 years and 50 or 60,000 in 20 years. Ron barron is a very successful money manager. Hes made a lot of money for his clients and for himself but that sound bite has a lot of people scratching their heads. I checked those numbers on 7 , with or without inflation, im not sure the economys longterm growth at 7 . Were not growing at 7 . It makes sense stock market grows 7 a year, thats within the range of what its done. I think its great to say 10 years out this is where its going to be. Investing is very dynamic, not static. Remember, ron is one of the classic longterm buys, longterm buy, thats his whole attitude. Dont expect him to come out and give shortterm recommendations. If youre bullish on the market and longterm investor, lets hope hes right. I hope hes right. Well see you later. Ty, up to you. Thank you, sue. It is official what weve been reporting for days. Dell is going to go private in a 24. 4 billion deal. Theres ts to cross and is to do the. Michael dell and his partner, private equity silver lake paying 13. 41, microsoft chipping in long 2 billion to the venture. What does this mean for the pc . Is it the death knell of the pc . John with that story. Reporter tyler, dell was the darling tech stock of the 90s, defining stock of the era with the announcement of the 24. 4 billion to take it private, the biggest signal qulet that the pc era is over for good. A story built on efficient manufacturing letting customers customize leaving big r d to microsoft and intel. A decade ago, a chief instigator in the pc price wars. Last year marked the first drop in total pc units since 2001. Chinese manufacturers can undersell dell. Low margins arent enough to satisfy markets. Pc isnt dead but its profits arent exactly alive either. As the pc business got tougher dell struggled dropping 65 since its highs in march of 2000. Struggling hewlettpackard last publicly traded intel hopes the move is a market opportunity. Sensing blood in the water they release add statement saying tough times ahead for dells customers, hp shares are up on the news. Tyler. Jon fortt, thank you very much. Lets get more on what this deal means for dell and the pc industry more generally. Jason nolan covers dell with rw bar baird. Good to see you. Do you see any impediments to this deal getting done . No, we dont. We expect this to get done by about the middle of the year. Silver lake has done deals like this before with seagate and we do think it gets done. What does this deal allow dell to do that it could not do as a Public Company . Well, its really more of the same, maybe at a quicker pace, higher level of magnitude. More investment in r d, m a continues as is but at a faster clip. Its really a continuation of what they have been doing for the last three or four years. What can dell do to get its monlgo back, revitalize its business that it hasnt already tried to do. Thats the thing. Three need to invest more in the client, the pc. Tablets are looking more like pcs and pcs more like tablets. Its really investment in the data center, higher growth, companies, security networking and storage. Jayson noland, rw baird. 5 million, thats what they are seeking against Ratings Agency standard poors. Mcgraw hill the rating agency, extremely tough, down another 6 to 7. 35. Our Senior Correspondent has more on the fallout for us. Hi, scott. Hi, sue, a fallout from this. A complaint thats more than 120 pages long and chalk full of the damming emails and instant messages weve come to expect in these kinds of cases. March 19th, 2007, the subprime crisis little known and s p issuing Investment Grade ratings. Privately an analyst offers his version of the talking heads song burning down the house. Ill spare you my singing. Watch out. Housing market down, weaker, subprime boiling over, bringing down the house. Theres plenty of substance in this complaint as well alleging s p systematically downplayed the risks of Mortgage Backed securities to win business from wall street. Here is u. S. Attorney general eric holder. During this period nearly every single Mortgage Backed cbo rated by s p not only underperformed but failed. Simply this alleged conduct is egregious and goes to the very heart of the recent financial crisis. Important to note. This is a civil lawsuit not a criminal case, so its much easier for the government to prove. This increasingly is the way the feds are going after the financial crisis. But officials still insist they will not shy away from criminal prosecution if they have the facts. S p says regarding, the government doesnt have the facts here. In a statement the company says 2020 hindsight is no basis to take legal action against opinions of professionals. Tyler. Good reporting. President obama about to make a statement on his budget proposals. We will have it for you when it happens. It will be from the white house, that podium, then well talk live with ranking democrat on the ways and means committee, the big taxing committee. Stay with us. Well be right back. We are waiting for president obama to speak momentarily about his pitch to congress for shortterm budget tweaks. We will take those remarks in a moment. First capitol hill. Representative levin joins us, Ranking Member on the ways and means committee. Were grateful to you for standing by and help bridge to the president s remarks. Glad to be here. Thank you for having me. Lets talk a little bit about what the president would propose and what it would mean for this budget process. He hopes to avoid the forced cuts due to kick in on march 1. Can that happen and what should happen . It should happen. I think its unadvisable to have sequestration. I think the republicans are taking this position, let the budget cuts happen regardless of the impacts on the economy. Essentially they are saying well take budget cuts with no revenues regardless of what the budget cuts are, defense, nondefense. I dont think thats a responsible position. Cbo just indicated the economy is improving but slowly. We should not put a break on that. We shouldnt go over this cliff either. Mr. Boehner put out a statement saying that president obama did and cuts and reforms that protect our national defense. What he is saying there doesnt square with what you just said. You said that the republicans want the cuts no matter where they might fall or how. He doesnt seem to be saying that, though. Thats what their position is now. They said senator coburn said let it happen, eric cantor said let it happen. The proposals they passed through the house never could be considered effectively by the senate. They were drastic provisions. They knew it wasnt going to happen. They have not responded to the present crisis. I think thats what it is. Essentially they are saying let it happen. As to who is responsible for the sequester. The speaker agreed to that. He agreed to that. Why are we going back mr. Congressman, well have to interrupt because the president is about to begin speaking. Well get back to you if you have time. These are decisions that will have real and lasting impacts on the strength and pace of our recovery. Economists and Business Leaders from across the spectrum have said that our economy is poised for progress in 2013. Weve seen signs of this progress over the last several weeks. Home prices continue to climb. Car sales that are a fiveyear high. Manufacturing has been strong, and weve created more than 6 million jobs in the last 35 months. Weve also seen the effects of political dysfunction can have on our economic progress. The drawn out process for resolving the fiscal cliff hurt consumer confidence. The threat of massive automatic cuts have already started to effect business decisions. So weve been reminded that while its critical to cut wasteful spending, we cant just cut our way to prosperity. Deep, indiscriminate cuts to things like education and training, energy and National Security will cost us jobs and slow down our recovery. Its not the right thing to do for the economy. Its not the right thing for folks who are out there still looking for work. The good news is this doesnt have to happen. For all the drama and disagreements weve had over the past few years, democrats and republicans have still been able to come together and cut the deficit by more than 2. 5 trillion through a mix of spending cuts and higher rates on taxes for the healthy. The balanced approach has achieved more than 2. 5 trillion in deficit reduction. Thats more than halfway towards the 4 trillion in deficit reduction that economists and elected officials from both parties believe is required to stabilize our debt. So weve made progress. I still believe we can finish the job with a balanced mix of spending cuts and more tax reform. The proposals that i put forward during the fiscal cliff negotiations, in discussions with Speaker Boehner and others, are still very much on the table. I just want to repeat, the deals that i put forward, the balanced approach of spending cuts and entitlement reform and tax reform i put forward or still on the table. Ive offered sensible reforms to medicare and entitlements and my medicare proposals achieve the same amount of savings by the beginning of the next decade as the reforms proposed by the bipartisan bowlessimpson committee. These reforms would reduce our governments bill whats up, cameramen . Come on, guys. They are breaking my flow all the time. These reforms would reduce the governments bills by reducing the cost of health care, not shifting all those costs onto middle class seniors or the working poor or children with disability but nevertheless achieving the kinds of savings were looking for. But in order to achieve the full 4 trillion in deficit reductions is the stated goal of economists and our elected leaders, these modest reforms in our social Insurance Programs have to go hand in hand with a process of tax reform, so that the wealthiest individuals and corporations cant take advantage of loopholes and deductions that arent available to most americans. Leaders in both parties have already identified the need to get rid of these loopholes and deductions. Theres no reason why we should keep them at a time when were trying to cut down on our deficit. If we are going to close these loopholes, theres no reason we should use the savings we obtain and turn around and spend that on new tax breaks for the wealthiest or for corporations. If were serious about paying down the deficit, the savings we achieve from tax reform should be used to pay down the deficit and potentially to make our businesses more competitive. Now, i think this balanced mix of spending cuts and tax reform is the best way to finish the job of deficit reduction. The overwhelming majority of the american people. Democrats and republicans, as well as independents have the same view. And both the house and the senate are working towards budget proposals i hope reflect this balanced approach. Having said that, i know that a full budget may not be finished before march 1st. And unfortunately thats the date when a series of harmful automatic cuts to job creating investments and defense spending, also known as the sequester, are scheduled to take effect. So if congress cant act immediately on a bigger package, if they cant get a bigger package done by the time the sequester is scheduled to go into effect, then i believe that they should at least pass a smaller package of spending cuts and tax reforms that would delay the economically damaging effects of the sequester for a few more months until Congress Finds a way to replace these cuts with a smarter solution. There is no reason that the jobs of thousands of americans who work in National Security or education or clean energy, not to mention the growth of the entire economy should be put in jeopardy just because folks in washington couldnt come together to eliminate a few special interest tax loopholes or Government Programs that we agree need some reform. Congress is already working towards a budget that would permanently replace the sequester. At the very least we should give them the chance to come up with this budget instead of making indiscriminate cuts now that will cost us jobs significantly slow down our recovery. So let me just repeat, our economy right now is headed in the right direction. It will stay that way as long as there arent anymore selfinflicted wounds coming out of washington. Lets keep on chipping away at this problem together, as democrats and republicans, to give our workers and businesses the support that they need to thrive in the weeks and months ahead. Thanks very much. I know that youre going to have a whole bunch of other questions and thats why i hired this guy, jay carney, to take those questions. Thank you, everybody. All right. The president making his case for a smaller budget package that would avoid the sequester due to kick in march 1st. Lets bring in john harwood for reaction. John, i was struck by the fact that the language from the president was very similar to what weve heard previously. He said my balanced and mixed group of spending cuts and tax reform and entitlement reform is still on the table. How is this going to fly with republicans. Is there anything new here and will they go for a smaller package . Whats new is the president saying what he wants is a shortterm deal to put off the sequester. That was what was done in january when the sequester was looming. They put together a proposal as part of the fiscal cliff deal of counting some tax increases and some spending cuts in effect buying down the sequester, delaying it, avoiding it. He wants to do it again. What hes trying to say is, i havent walked away from my desire for a large deal, which they tried to get in december, couldnt get it done with republicans. But by saying that, that is the shield behind which he says im not proposing a new shortterm package. I didnt hear it. I didnt put any specifics on the table or im not going to put specifics on the table. What were going to hear from republicans, okay, mr. President , if you want that shortterm deal, tell us exactly how youre going to get there and we resume the game of chicken weve had with both sides, different ones calling from both sides for spending cuts but not laying them out themselves. All right, john. I know groundhog day has passed but it looks like weve seen this before. Yes. Coming up, disturbing news about turbo engines and cars. Thats up next. [ male announcer ] youve climbed a few mountains during your time. And having an investment expert Like Northern trust by your side makes all the difference. We add precision to your portfolio construction by directly matching your assets and your risk preferences against your own unique life goals. We call it goals driven investing. After all, you dont climb a mountain just to sit at the top. You look around for other mountains to climb. Expertise matters. Find it at northern trust. A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . Tdd 18003452550 hours can go by before i realize tdd 18003452550 that i havent even looked away from my screen. Tdd 18003452550 tdd 18003452550 that kind of focus. Tdd 18003452550 thats what i have when i trade. Tdd 18003452550 tdd 18003452550 and the streetsmart edge Trading Platform from charles schwab. Tdd 18003452550. Helps me keep an eye on whats really important to me. Tdd 18003452550 its packed with tools that help me work my strategies, tdd 18003452550 spot patterns and find opportunities more easily. Tdd 18003452550 then, when im ready. Act decisively. Tdd 18003452550 i can even access it from the cloud and trade on any computer. Tdd 18003452550 with the exact same tools, the exact same way. Tdd 18003452550 and the reality is, with schwab mobile, tdd 18003452550 i can focus on trading anyplace, anytime. Tdd 18003452550 tdd 18003452550. Until i choose to focus on something else. Tdd 18003452550 all this with no trade minimums. And only 8. 95 a trade. Tdd 18003452550 open an account with a 50,000 deposit, and get 6 months commissionfree trades. Tdd 18003452550 call 18779947694 tdd 18003452550 and a trading specialist tdd 18003452550 will help you get started today. Toyota is back in the black for the first time in five years. Thats thanks to a strong sales in the u. S. And a weaker yen as well. As a result the japanese automaker raised its net forecast for the year by more than 10 . It expects to sell a record 9. 9 billion vehicles in 2013. The stock up 20 over the past three months and adding another threequarters percent today to 9856. Ty. Sue, thanks. Listen up, if you have a turbo car or thinking of buying one says the mileage you get is not measured up to what is promised. That on top of the 800 or so you pay up front to get the turbo engine. Phil lebeau, a turbo guy. Reporter these have become popular. Consumer report set out to find if they deliver the mileage. Weve only put five of these on the screen. The comparison, look whats stated by the epa in terms of the mileage per gallon and what Consumer Reports found for these turbo charged engines. Generally speaking the difference is one Miles Per Hour or four Miles Per Hour like ford fusion. Turbo charge engines popular with buyers seeking better mileage. Auto marks ramping up production of these engines. They are using it as a way to increase fuel economy. They have to increase the number of vehicles they are soelg that have better fuel economy. They are pushing these engines and consumers are buying into it. Nobody more so than ford. If you go to ford and ask for an ecoboost engine, they will be happy to sell you one. 90 of ford models for sale this year will come with the offer of an ecoboost engine, about another 795 for that engine. Take a look at shares of ford. Keep this in mind. Ford when we canted them about this Consumer Reports study they say, listen, these engines are delivering mpg set out there in testing by the epa. They say that the Customer Feedback they are getting from people who have these engines, sue, across the board they have never seen better feedback. They dispute these findings. By the way, other automakers we contacted dispute these findings there Consumer Reports. This is worth watching. Turbo charge engines are here to city and have become incredibly popular. Sure. Thank you so much. You bet. Gold is down, closing now. Sharon epperson tracking action at the nymex, gold is the only one in the complex thats lost a little steam today. Thats what happened here into the close we have seen gold prices drift lower. The only cop pont that is negative. We have seen gold in yen terms that will perform very well not only today but so far this year. Its up about 7 . The real standouts continue to be platinum and palladium. In fact, barclay says after the close, look for platinum to go 1725 to 1735 an ounce. Back to you, tyler. Sharon, thank you very much. How should retirees invest with the dow two points shy of 14,000. Three strategies to help you find your next move. First, is the housing recovery for real or is it another bubble get ready to burst . We will have the latest data that may make you pause. Be right back. With fidelitys new options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Be. All right. We crossed over the 14,000 mark just a few moments ago. A very spry bob pisani is setting next to me today. That means we get closer to historic highs. Put up the dow, 14,164. Thats the historic closing high. We keep inching up. We were over 14. Trust us, we were sitting there watching it a few moments ago, 14,164. S p a little further away, the closing historic high were about 50 points away from that. Take a look at major sectors, three to one advance in declining stocks, still very good. Everything up 1 here. Health care and technology and financials, consumer staples. Defensive names as well as growth names are all on the upside. I want to mention eaton, i love it, one of the big companies, electronics, Power Management around the world. They work in everything, aerospace, trucking, autos, historic high for eaton, end markets mixed, the guidance for 2013 they introduced is okay. Maybe towards a slightly lower end of the estimates but wasnt as horrible as people thought. One of the big companies, multiindustry companies. All the big Global Industrial companies, ingersoll, itt, honeywell. Eco is on later. Ill listen to that. This is really one of those companies they work across all industries and 40 or 50 countries. Right. Its a perfect global macroeconomic read on the economy. Thats why you watch. Thank you so much. As the dow jones and s p move higher why is tech under performing in 2013. Seema mody with more. S p tech sector still the laggard of this year up a meager 2 , underperforming energy, health care, financials, materials as well as telecom. You might think its earnings weighing on this sector but take a look at the numbers. 47 out of the 70 Tech Companies on the s p 500 that have reported thus far, 81 had beat street estimates. Broadly speaking earnings came in higher than street consensus. Morningstar analyst said future outlook and guidance had been a concern for the street. Michael pinto of pinto portfolio strategies says apple and its sharp fall in september has been casting a dark shadow over tech making investors more hesitant to invest in the space. He did say apple shares could rebound and bring back some momentum to tech stocks. That is something to watch out for. Apple shares up on the day, other large cap tech stocks faring well. See if they continue to build on gains and help tech as a sector move higher. Sue. Seema, thank you very much. Lets check in on the Interest Rate front and bond market. Rick santelli tracking the action. Hi, ricky. Hi. Absolutely theres a lot of anxiety surrounding fixed income markets. With we are over 2 . You can see intraday or open the chart first, weve been here and virtually the highest level since april in terms of yield. Lets lo at lqd, corporate etf for Investment Grade. It is close to a fivemonth low. We see that it is out of vogue as well, at least for the moment. Mexico. We had Mexican Central Bank governor in the papers the last 24 hours saying, wow, what am i going to be doing with inflows. Can you see dollar versus peso hovering at a level not in favor of the dollar, close to the low. If you look at stock market, boy, inflows hes talking about, record highs. Tyler, back to you. All right, rick. Thank you very much. Question, has the housing industry recovered too fast . Is it yet another bubble that is getting ready, inevitably to burst. Diana olick joins us from washington. Diana. Tyler, its a number we havent seen in six years or since the height of the housing boom. Home prices 8 year over year in december according to the latest read from core logic. To put this number in perspective, take a look at what home prices did during the bubble years, the housing boom some warned is unsustainable. Prices up 7 in zero 2 and ze0. That was the end, by 2007 prices dropped into the negative nationally for the first time in recorded history. Back then there was no distress factor, no foreclosures or short sales to weigh into the numbers. According to core logic prices including were up 8 annually and without distressed sales up 7. 5 of they show the numbers coming down, they predict, in january but blaming the winter slowdown on that even though these numbers are year over year. Of course it all begs the question of a bubble. For more on that weve got it on the realtime check. Go to cnbc. Com. Back to you, tyler. Dine olick. Josh for a market flash. Check out electronic arch which is rocketing higher here. The reason new game, dead space 3, now available in Retail Stores in north america. Last week alone they sold 100,000 mentions across social media, with a dead Space Community of 1. 4 million. Retail indicators suggest presales are ahead of expectation. Sue, back to you. Josh, thank you. Lets recap some of the other big headlines driving todays session. Mastercard doubled its Quarterly Cash Dividend to 0. 60 a share and buy back up to 2 billion wofrt shares this after recorded strong Fourth Quarter result. Estee lauder raising its four year profit forecast on Strong Demand in the u. S. And importantly also in china. Amazon plans to introduce Virtual Currency used for purchases on the kindle fire tablet. The move is aimed at enticing more developers to produce programs for its device. Sounds intriguing, ty. I need Virtual Currency and real currency. Indeed. Real currency trumps virtual but what the heck. Youve got that right. Dow 14,000. You see it. There we are right on the button. The president saying big budget cuts can once again wait. How might that affect your 401 k . Weve got some answers for you after this short break. [ male announcer] surprise youre having triplets. [ babies crying ] surprise your house was built on an ancient burial ground. [ ghosts moaning ] surprise your car needs a new transmission. [ coyote howls ] how about no more surprises . Now you can get all the online Trading Tools you need without any surprise fees. Its not rocket science. Its just common sense. From td ameritrade. Its delicious. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. I never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. All right. Were kicking off a new series today. Its called moving target, americans retirement at risk. Since we just heard the president say the big budget cuts can once again wait, what happens next and what happens to your Retirement Planning . Cnbcs Sharon Epperson is here to tell us more about that. Over to you, sharon. Sue, a lot of americans are still very worried about potential cuts to Social Security and medicare and what that will mean for their retirement. How will that affect your Retirement Planning . That really depends on where your account stands right now. With the dow at 14,000, lets take a look at what happened to 401 k account balances in the runup to the dow 14,000 in the month of january. This chart kind of gives the illusion younger folks age 25 to 34 did a lot better than older folks in terms of the gains in their 401 k balances, up about 5 for that 25 to 34yearold group compared to 3 to 3. 5 for boomers age 55 to 64. Thats whether boomers have been contributing to their accounts for a long time or just started saving recently, they basically gained the same amount. Youve got to keep in mind the reality is the younger workers have a greater mix of equities in their 401 k s and therefore are getting a more aggressive portfolio and their returns are greater. Most Financial Advisers say boomers should not be chasing the markets returns. In fact, the bottom line really is they need to stay the course, focus on their goals and dont let the markets direction or big market event dictate their investment strategies. Sue. Ill pick it up. Tyler. The folks in the retirement st. Pete spot 55 to 64, they above all should try to stick to their plan and not try and chase any transient moves in the market. Thats exactly right. Thats exactly what a lot of advisers are saying to their clients now. This is a great moment. You see the dow hitting 14,000. It wakes you up to Pay Attention to whats in your portfolio. Maybe its a time to have a conversation but not to change your strategy completely, just to reevaluate, possibly reallocate. But really now is the time to perhaps have a talk but not make any big changes. No one, of course, should question why im most concerned about 55 to 64. No one, no one. Thank you very much. Disney out with earnings in a few hours. Were going to get you ahead of the numbers in a little while. Well be right back. Coming up on street signs, is the system flawed. If so, why doesnt somebody fix it . Well speak to the ceo to see if its been rigged. Downgrading home builders, good while it lasted. Also, is apple dead . Phil gunderson is on our show and he says yes. All those things coming up top of the hour on street signs. Well see you at 2 00. Disney up to report earnings. The stock is off to a flying start this year. Up 9 . Today up twothirds to 5525. So what should investors be focusing on in terms of those numbers. Julia will be talking to bob iger later today. Julia. With disney trading at an alltime high they will focus on espn as well as other Media Networks division as well as theme parks. Disney share expected to fall 5 from a year ago to 76 on 4 higher revenue of 11. 21 billion dollars. Though the Company Faces tough comparisons, which is the reason for the year over year decline. The Parks Division is expected to benefit from the improving economy and attractions. Espn faces higher programming cost, the powerhouse brand as well as other Cable Networks are expected to continue to show appliesing power. On earnings, investors will be looking for detail on disneys plan for Star Wars Franchise it just acquired with lucas films. Well be also looking for disneys outlook on Consumer Spending and on the parks in general. Ill be back after the bell with the numbers and well have first on cnn interview with disney ceo bob iger. Tyler, over to you. Thank you very much. Did you hear, canada is getting rid of its penny. Should the u. S. Do the same . It is part of our power rundown. The penny. All right, rve body. Time for the power rundown. First up doj lawsuit against s p. Stupid, we didnt know better. Why s p, not moodys and fitch. It looks very bad s p. It downgraded us, looks like revenge. Downgraded United States government. Not cnbc, of course. It just looks very bad. Remember, one of president obamas big donors is a big owner of one of the competitors moodys not sued. This is causing a lot of doubt about the case. People dont think it looks right. Revenge is what it looks like. But they are spending a lot of dollars we dont know if they might go after fitch or mood yzerman. Thats right. If we did get Something Like a global settlement, it could be bad for all the businesses. Look what happened to wall Street Research analyst after Global Sentiment of 2003. That business had its legs taken out from under it all together. The end of this case may be a big problem for all. Theres the gong, mercifully. We move on, new scandal shaking up the sports world. This time in soccer with evidence tying hundreds of global matches to an asian betting syndicate. This may reach into the English Premier League and elsewhere. If it does, this is a gigantic story. From a lot of reporting on it ive done, most is small every country in the world had a professional soccer league. Its not like anything were used to in the u. S. And go into places well need the money, dont make the millions and fix it up. People say 680 games, they think, thats a big number. Relative to how many games played every day in the world its not that big a number. What makes it huge, big names involved. People wonder is the u. S. Involved . Probably not. Even if they make less money they arent going to scuttle weve seen match fixing in italy in global leagues. Its a Global Business and not a mechanism for rooteding out corruption. When you have Something Like nfl or major league baseball, you can police that easier than global soccer of its very hard, why you get scandals. We just have to worry about performance enhancing drugs. Lets move on. Canadians, always forward thinking, getting rid of their penny because it costs more to make than a penny. Its true here in the United States, too. The nickels cost more than a nickel. What should we do . I think its lunacy to get rid of the currency people like. Get that, looney. People in the United States like pennies. I dont think the government should come in and take currency away from people. I completely disagree, costs 2. 5 to make a penny, the nickel, round it off. Pick it up, have good luck, thats it. 20 years no hard currency anyway. Get with the program, save the money. Im surprised at you. Sentimentalist. I like the idea. I am a sentimentalist about that. If you got rid of Something Like nickels, some Hedge Fund Guys kyle bass would make a lot of money. Once they arent legal currency they could melt them down. Make them more valuable if you stop making them, which is fascinating, too. Penny, to live or die. Maybe we should do that as a cnbc poll tomorrow. Why dont we do that. Ask your opinion if we should get rid of the penny. The super bowl blackout was not a complete surprise. Well explain why after this short break. Im lorenzo. I work for 47 different companies. Well, technically i work for one. That company, the United States postal service®, works for thousands of home businesses. Because at usps. Com®, you can pay, print and have your packages picked up for free. I can even drop off free boxes. I wear a lot of hats. Well, technically i wear one. The u. S. Postal service®, no business too small. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. To compete on the global stage. What we need are people prepared for the careers of our new economy. By 2025 we could have 20 million jobs without enough College Graduates to fill them. Thats why at devry university, were teaming up with Companies Like cisco to help make sure everyone is ready with the knowhow we need for a new tomorrow. [ male announcer ] make sure americas ready. Make sure youre ready. At devry. Edu knowhow. At devry. Edu knowhow. All stations come over to mithis is for real this time. Step seven point two one two. Verify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. How do traders using Technical Analysis streamline their process . At fidelity, we do it by merging two tools into one. Combining your customized charts with leadingedge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. We like this idea so much that weve applied for a patent. Im colin beck of fidelity investments. Our integrated Technical Analysis is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. The raven lunatics, baltimore fans, coming out en masse to celebrate their teams 3431 win in the super bowl over