Transcripts For CNBC Squawk On The Street 20140214

We always do at this time. It looks like were setting up for a slightly lower opening. We shall see. Not much of an active day there, we were very focused on the enormous cable deal yesterday in terms of the Broader Markets. Tenyear note yield, weve been in the 27 range, yes, 2. 75 and europe was positive, euro zone gdp showing betterthanexpected growth in the Fourth Quarter led by france and germany that has helped those markets. Yesterday a bit of a turmoil, you get that and italy and the like, markets were a bit lower perhaps impacting us slightly. Lets get back to our roadmap right here and its what else, the weather. Thousands of flights are still being delayed and canceled this morning as the northeast is recovering from yet another very large snowstorm. Plus, joseph a. Bank is buying eddie bauer the deal worth 830 million this comes as the retailer is still fighting off a hostile takeover attempt from its rival mens warehouse. And 8 isnt great for microsoft. The Company Announcing windows 8 sold more than 200 million copies since its launch 15 months ago but below what had been anticipated for sales in the first year. All right, well start with the weather. Northeast looking to dig out from another snowstorm, thousands more flights delayed or canceled today, according to the Associated Press snow and ice storms this winter have led to the highest number of Flight Cancellations in more than a quarter of a century, 25 years. You dont even have that many quarters of century in your age. Jimmy carter was the last guy that caused that weather to be this bad. Remember the malaise he caused. He had impact on the weather, too. And he wore a sweater vest, theyve never come back. No. Leisure suits have not really made a return. I want to spin the weather a little more toward even further lacking of relevance to what we do for a living. Well, thats not true. Come on, we have ended up talking a lot about the weather. Joe sevseph a. Banks. We can talk about that and the retailer. And how many times have we tried to understand the impact of weather on gdp and whether its real or not real and theres a seminal change going on in the u. S. Particularly as it relates to the consumer. This morning, gnc which had been a very strong company. They blow up in a hideous way. Weight watchers blows up in a hideous way, supplements and looking thin. You can never be too rich or too thin, well, suddenly, im thinking maybe you can if the weathers bad. Do you know whats interesting on Weight Watchers you would think five years ago if i said to you digital disruption, Weight Watchers, you would have been, what, Weight Watchers . And yet here we are with the wristbands and everybody measuring and taking their own program into their own hands jawbone, by the way, has one, raising 250 billion, private company jawbone, of course. Digital disruption has hit Weight Watchers hard, hard. Competing against yourself. Theres so many products out there. Dont forget under armour, the controversial under armour is developing apparel that can measure your speed, measure, you know, against yourself. Right. There is the the web comes in strange places and it disrupts so many Different Things and i just i find when i see even vf corp what direct to consumer and you mentioned europe strong and vf corp unbelievable numbers in europe but in the end not enough to do the job. Not enough to do the job. They shaded down. And jeans are not selling well, they havent been selling well for anybody. I dont know whats the matter with jeans. Im not sure that either. I dont wear them that often. I stopped entirely. One of the many well be looking at a lot on the downside. As for the impact of the weather on the airlines we talked a lot about the airlines in a very positive light for quite some time, actually generating cash, actually generating return on capital thats more than their cost of capital. And there was a distribution by the way that occurred in america. Yes. And yet the thing hangs in. And why is that . Precisely because these storms are not wrecking their quarters which is just so unusual. Its worth noting the fact that this industry has become even weatherproof. It has. Lets get a little bit more on the storm on lets stick with you and me. Im breaking that. Okay. We have too much to talk about to go to the weather. Lets talk about joseph a. Banks. Can we do that . We can. It looks like its a deal thats on only if there isnt a better deal, is that possible . It is in the release from joseph a. Bank that said it will be buying eddie bauer the deal worth lets call it 825 million. They do say they have a right to terminate the agreement in the event an unsolicited offer is made to acquire joseph a. Banks and the Company Board says its reasonably expected to create greater value and thats the key, greater value. Let me tell you about the deal, its interesting but small, and it comes along, the saga weve been watching, joseph a. Banks made an offer to buy mens warehouse and mens warehouse said were bigger and well buy you and well get hostile and joseph a. Banks says not so fast. They go out and buy eddie bauer at about 14 years worth of its ebita, 13 on 14 times ebita. They are issuing stock to eddie bauers owners private company at 56 and its mostly cash and buying back stock from a dutch tender 16. 4 at 65. So, bowing a retailer thats outside their core competency, right . Its 50 women and casual, 14 times. Issuing stock at 56, buying it back at 65. 3 breakup fee also by the way, throw that in there, too, if they, in fact, do decide. Its a poison pill that has an antidote . Its a good way to say we are not getting sold. Why dont they want to do whats right and create a powerhouse . I mean, Cable Companies are willing to create powerhouses but suits arent . What would it even be . I know we talked a lot about we like the way you look and well give you four suits for the price of one . Look, consolidation in any industry is great. Not always. Not always. And mens warehouse needs it. How about the Airline Business . The Airline Business and the suit business could be the same. Mens warehouse down badly because this was an idea whose time had come because you dont need two managements. These guys are in a dogfight, a suit dogfight, okay . A number of efficiencies, of course, that they have said would be created, both ways, by the way, we heard from both companies having made offers for each other at various points over the last few months but it does not look likely to happen at this point given youve got this deal again. Now, unless mens warehouse were to come up to a price but with a 3 break fee it makes it even more difficult. Were seeing a couple things, where there is consolidation stocks go up, where there isnt, you interviewed spencer roskoff yesterday, and i notice they are saying its a Media Company, no, its a Real Estate Company but it doesnt matter, trulia is in an arms race with zillow. If those two companies came together it would be remarkable, but they dont like each other. Its a little bit its not collegial. Trulia and zillow or mens warehouse . Not collegial. Mens warehouse, not collegial. And its good to have competition many would say and, of course, coming back to the enormous deal from yesterday. That will be a question. But they dont they cant be with each other. Time warner and comcast they dont compete with each other. Theyre not in the same zip codes. As someone who has switched providers, theyre not really a service oriented. One is not that service oriented, im not going to well, actually i am going to say time warner. I had to switch you are going to become a come cavity customer . It was either comcast or fios. There is no overlap, i wasnt able to get comcast in brooklyn. Now ill switch. Youll switch back. And hopefully they get the deal done. I switched from fios. You switched to fios. I switched to fios because i actually like working cable. Thats something i have a prediliction for. I also like philadelphians, by the way, can i go there and be a proud philadelphian and not just because of nova. Very important to the city of philadelphia. Lets move on to another company thats very important to its part of the world and that would be microsoft, bellevue, washington, right . It says companies windows 8 system has racked up more than 200 million license sales since its launch 15 months ago, that number lagging windows 7 which sold 240 million within its first year, the latest windows 8 sales figure announced at a Goldman Sachs Technology Conference yesterday. New management in place. Disappointing number for windows 8. Not clear what its going to mean for the stock price this morning. But, you know, arent we kind of off to the races with the new management . We dont care. Talk about something that doesnt matter. Were talking about a company you are killing me this morning. The weather doesnt matter. I meant the history, Going Forward could be value add. Theres a lot to add. I didnt mean to kill you especially after you mentioned my restaurant . We always mention the restaurant. What do you focus on when we look at microsoft and why should this be rear view mirror because windows 8 is important to this company. You want to focus in this is apple in ascendance in personal computers. It does matter apple has a different operating system and, by the way, just like Time Warner Cable, the apple operating system works. I dont know if youve been exposed to it. I have very much. Does it freeze very often . Has it ever frozen on you . Not mine. And i know apple watches our show very closely, so, you know, just stay focused on that. I will. I will stay focused on a lot of things. Coming up weve got the return of house of cards in the form of season two as netflix looks to maintain its mojo. Came out at midnight. Also ahead vf corps eric wiseman, and timberland down. And ceos wanting to come on even if the stock is off. Respect for the franchise. Dont be afraid, its a more important time to come on when your stock is down rather than up. Whole foods right there. Right there. Theres a look the at the futures. Were looking for a down open but well see. Weve got a lot more squawk on the street on this friday. Yes. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Too cold for you here and now so let me hold welcome back to squawk box. Yes, we are definitely looking to see im sorry, squawk on the street. Were definitely looking to see if the past utilization come out on time, of course, 9 15 is the time the bell rings for these data points and they are january. We didnt see a whole lot of movement on import prices. Market yesterday responded early to weakness in retail sales but made a nice comeback, three, two, one. Wow, its out. January Industrial Production down 0. 3 of one percent this is what we should have hoped to come out late, we were looking for an up 0. 2, and Capacity Utilization a big miss 78. 5, this is a substantial drop we were looking for 79. 2, 79. 3, and last month our 79. 2 dropped a fairly sizable revision to 78. 9, so we slipped under 79 last month for december and january disappoints even further at 78. 5. So, we are going to have to kind of work this in. Weve seen much downgrading by some of the big analysts on First Quarter gdp as well as Fourth Quarter gdp, the second look coming up shortly. The market did respond with a slight drop in yields and preoping equity futures did drop a little bit. David faber, back to you. All right, thank you, mr. Santelli. I thought it would be better because the utility had been working overtime but its just cold weather. I keep thinking utilities. Oh, the weather. All right. By the way, youd be somebody who would stream who would actually watch house of cards when it came out at midnight and stay up all night. I would have binged, but i think its worth at least 17 to netflixs stock. Is that what its at . Yeah, because netflixs stock goes up on anything. They are debuting house of cards this morning, it began streaming 3 00 a. M. Eastern time. 3 00 a. M. Eastern so you really would have had a, 12 00 a. M. Pacific and last night president obama expressed his anticipation in a tweet. Tomorrow house of cards no spoilers, please. Geez. He watches, too. Is he going to binge because i was thinking, you know, like, kind of the country, focus on that. But the weathers so bad down there hes shut in, too. Might be able to learn legislative moves from kevin spacey, maybe how to get some stuff done. Yes, but do you know what the big project in philadelphia was never done. The port project. It never happened. That poor guy this is great tv. He is i think the president liked breaking bad. Yeah, i think so. Also apparently hes watching the other one you like true detective. Has he ever missed squawk on the street . Has there ever been one day the president hasnt watched it . No, no, hes out there right now. As for netflix, of course, theyve already signed up customers, not cheap. No argument to be made it hasnt been beneficial i think it has been for the company no doubt about it. But the programming does not come cheap anyway. Breaking bad if you want to get into a series you have to start at the very beginning, a very good place to start and you have to start rodgers and hammerstein. You know, mostly shakespeare. I know a lot of rodgers and hammerstein. Do rei me, the sound of music. He brings out another series whether it be arrested development or this one, they trade on signups, 27 billion market cap on signups. Signups . Yes. And the weather helps them. Yes. Because people are inside. I want to come back to something i brought up yesterday which is simply the idea that google, amazon is already doing it, facebook, do they i know that theyre thinking about those kinds of things. Is there a way for us to create content beyond whats already going on on youtube which is User Generated Content that will be the highest quality that will deliver a lot more eyeballs . Tim armstrong would tell you, yes, thats his orientation for what aol is going to do. It often gets caught up in what tim says a away from the business which makes you focus not on high quality video against Yahoo Finance high quality video. They have beautiful studio up there. They are our partner. They are. Yahoo s got it going and they have katie you know, they theres breakout hope here when stars go over. Right. Although i do wonder whether well see even more scripted programming from the likes of who i mentioned. Goolg cgle can do whatever i wants. Could have bought Time Warner Cable, i guess chose not to. Could buy the nfl and stream everything. Google buying the nfl, i dont think thats going to happen. There is an nfl corporation to deal with. Up next well have a mad dash, of course, and counting down to the opening bell. Take a look at futures, by the way. We are looking for a down open although not very actually the dow jones at least at this point and the s p showing a bit down after the Industrial Production number came in below expectations. More squawk on the streets coming right ahead. Thats correct. Cause im really nervous about getting trapped. Whys that . Uh, mark . Go get help i have my reasons. Look, you dont have to feel trapped with our raise your rate cd. If our rate on this cd goes up, yours can too. Oh that sounds nice. Dont feel trapped with the ally raise your rate cd. Ally bank. Your money needs an ally. Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. I dont care if mondays blue tuesdays gray and wednesdays too thursday i dont care about you its friday im in love and it is a friday and a mad dash. Cliffs Natural Resources weve had a lot of different pieces of news on this including this morning, of course, after Donald Drapkin who joined us a couple of days ago tries to get rid of the bord to take control and wants a new xree. They say no thank you. This is a twoceo city, its a warring ceo with mr. Halvorson was ceo and president , the numbers were great, david, iron ore refuses to collapse no matter what. Baltic freight ticked up last night and now the stock is going down, thats iron ore, people feel the chinese are buying iron ore cliffs is an Iron Ore Company and i got to tell you something maybe they are winning. Maybe drapkins team is winning and they dont even realize. You had a lot of reservations about that idea just a couple of day agos given the bloom the blooming onion, thats what some people call it behind the scenes, they put it on hold. And cliffs is doing a lot to help themselves. Its not entrenchment, they can continue to cut costs. This may be like a nelson peltz thing where companies are reacting ahead of time. They say, of course, they are still attempting to maintain a constructive dialogue with casablanca and they made a number of changes to the board and new ceo put in by them, no thank you mr. Drapkin at this point whose firm owns 5. 2 of the company. You could say they rounded up the usual suspects for their management team. Yes, they did. Lets move on to aeg. What do you need . All right. Aeg buyback, dividend, and bullish as ive ever heard, book value 60 but Bernstein Research is this the pause for Property Casualty . That has been the problem ever since travelers lowered the boom by saying its challenging and competitive. You are never allowed to say challenging and competitive in any release, david, because those are words like the duck comes down. Challenging means sell. People are selling aig. I thif its premature, i think the company is doing very well, but do you know what, its gotten competitive. It has. I looked at the stock over a longer period of time and it does feel like its been this is dead money. When those names get to be Big Hedge Fund names, gm is another one. You dont want to be there. Its a perfect example. Its a small they own 7 million, 8 million shares. Im sorry i mentioned it. Im sorry that i mentioned it. I wont do it again. But, yes, when you have these core businesses not doing well even though the thesis is good, the facts sometimes dont fit the story and thats the problem with aig, it doesnt matter what they do because they feel theres price cutting in Property Casualty and cliffs, no one thought iron would be saving them. One of the few names we focussed on morning that seems to be heading up. Well keep an eye on shares of vm and Weight Watchers and a lot to watch when squawk on the street comes right back with the opening bell. Get 36 months interestfree financing and save up to 500 on beautyrest and posturepedic. Get a sealy queen set for just 399. 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Plus you can add a line anytime for 15 a month. Sharings never been better for business. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Youre watching cnbc squawk on the street live from the Financial Capital of the world where the opening bell is set to ring in about one minute. Lot of food. Lot of food stories. Smucker which has been such a wellrun company, folgers not good numbers. Campbells soup a lot of people have been writing off campbells saying not natural enough. Snacks doing well. How about this, david, do you know that annies took aim on campbells on snacks remember this is gold fish versus healthy goldfish, right now processed food is beating natural. But then white wave sneaks up and they do plantbased milk and that had a home run. Theres a lot of what i regard as turmoil in the packaged goods industry. Usually you dont expect that. You expect consistency, were getting the opposite. All right. You can hear the applause building here, of course, for the opening bell on the last trading day of the week. Not a bad week, in fact, weve had a fairly significant rally. Until middle of the week. Yesterdays turnaround was really yeah. And there it is the opening bell from the nyse. You can see the s p 500 at the cnbc real time exchange. Going to be a mixed day, but, well, as it reconstituted itself a bit more red on the board. At the big board online Photo Company Shutterstock One of the worlds most innovative companies. And over at the nas dedanasdaq, and barbie. A big downgrade for mattel. The toy fair begins i believe its next week. Hasbro has been the stronger one. You got all the toy manufacturers coming to town. That group has had tremendous consolidation, but disintermediation by the web, the games on the web, this is the ascendance dont forget zynga is doing very well and thats the new management team. And this is take taketwo. Oits no longer too early to buy zynga . No. Taketwo interactive reported a really great number and the shorts piled and its back to where it reported. Activision, these are what people do with their spare time. If you remember mattel said every single one of their areas had the categories in decline. So, its very difficult to be able to buck that trend. You talk about being disintermediated by the web or watching your business get disturbed. Weight watchers shares are down 26 . On a lessthanexpected number on a worsethanexpected quarter from that company, in part many would say because of the ability to do it yourself whether its wearing a fit bit or some sort of a band and using the internet to help with the fitness program. Yeah. I mean, good note this morning reading about Weight Watchers, companys Winter Campaign has not resonated with the consumer and the online environment. This is just the nature of the web and it just sneaks and crushes a lot of companies. So many different businesses that it has completely thrown off and i come back to that. It would have been hard to imagine i think even a few years ago that Weight Watchers would be one of those companies that suffered as a result of that. But here we are with them trying to figure out what their business should be and how it should operate in this new environment. Its been a steady decline, they bought back a lot of stock. We would be remiss if i dont talk about a name that my Charitable Trust owns shrinking to grow, occidental, got more than 2 million acres in california. Theres always a sense that california is the biggest shale in the world, the monterey shale, jerry brown has been quietly telling people youre allowed to drill. Jeremy chacin breaking up the company. I know that it was fought for years. This is a big breakup and the california assets are worth a great deal. I see targets of 120. You had an argument over the board and the ceo. So interesting when it comes to california, its not just shale. Its also the old wells that were left for dead that actually with horizontal drilling and so many of the new techniques are now available conceivably to be reengineer reengineered. What happened was lost in the shuffle of all the Great International assets now we have two Different Companies. This will shine the spotlight on what i think is going to be bigger than Continental Resources and bigger than eog, those were companies that exploited the balkan, i think california if neel kashkari, hes running for governor, hes talking about it being the engine, oil and gas. This could be very big for the state. Which it was very big for the state. Kern river was the biggest. Not texas. Do have a statement out here from mens warehouse another story were, of course, following this morning in light of joseph a. Banksati decision acquire eddie bauer for 825 million and you can see shares of mens warehouse are down sharply. In light of joseph a. Banks decision not to engage in discussions with us about a combination that would provide shareholders with a substantial premium and immediate and certain value the board together with its financial and Legal Advisers will evaluate our options with respect to joseph a. Banks. Not too much to share there. They have, of course, if you recall submitted nominations for both the chairman and ceo positions for the 2014 annual meeting so they are still challenging there. Did speak to rickie st. Louis this morning a large shareholder in both and he didnt have much to offer at least on the record at this point. Youre the only guy that talks to him. They are buying the company at 14 times and buying back stock at 65 and issuing at 56 as part of the deal and moving into an area where its not their core competency at this point may raise some questions. No more than General Mills which owned eddie bauer at one point. Isnt that interesting . Owned a toy company. Wed be remissed if we have in the mentioned or focused on the incredible move in gold stocks, they keep going higher. Downgraded a couple dozen, doesnt matter, ubs downgraded nico, and im sorry, my bad, what matters, though, is that the group just owns stock and we should be focused on it far more. Why should we focus on . Yes, ubs cut it. Why should we focus far more . Because when you see this kind of move above 1,300 theres going to be a big short squeeze here. A lot of people have written off gold. Keep an eye on gdx, the preferred way to play the miners and they just keep going higher and, you know, the market vector we had Jeffrey Dunlap on from double line capital earlier this week, of course, early in the year he was one of the people who said, hey, im going connell temporary here buy the miners. Its been really, really a strong place to be. Thats coming back. Theres a lot of crosscurrents in gold, a lot of crosscurrents in food. I mentioned earlier that if you look at general nutrition, gnc, that had been a company that had been riding the wave of looking looking and feeling better about yourself. And they missed the numbers very badly. Allergan going up and thats into looking and feeling better and its an optical play and theyve done a great job. Gnc which, again, is down double digits. Wanted to take a look at apple shares not because they are moving much, in fact, they are virtually flat on the decision although its not been a bad week for apple. Remember, its not that long ago that carl icahn cried uncle after the Company Bought back 14 billion worth of its stock in a very short period after what was an earnings miss lets call it and the stock came down. It has performed quite well. Do wonder, you know, i dont know, i dont know, but one has to wonder whether sitting on that significant gain mr. Icahn might not be trimming his position a bit. He owned 4 billion if you are selling, you dont tweet you are selling. You tweet ive sold, i made 400 million bucks, dont know if its coming or not. If thats the case the stock holds up rather dramatically. I hope they are not following the stock up with the buyback because they need to be aggressive when someone is selling it, thats when you buy the stock, not every day. Again, the stock acts very well even after what you just said. I thought you might have hurt the stock immediately and you did not. Im not saying that we know dispositively that hes a seller here at all. Im just simply saying there are a lot of people in the market who are at least wondering and asking the question. I did not have the opportunity to ask mr. Icahn directly that question either, though typically when you are a seller of a particular security you dont want people to know that. It just jumped. Let me switch tacts to what is a terrible pileup a multiple Chain Reaction crash on the pennsylvania turnpike this morning. Take a look. Around the willow grove area. It looks like rescue workers responding to try to remove people from vehicles. Apparently this goes on for miles. It is around the willow grove exit. Right. Towards route one. Thats the turnoff right there. It occurred around 8 15 a. M. And were talking about dozens of vehicles that have been involved in terms of wreckage and now a pileup and a resulting traffic jam that goes on for miles. Its a very busy road at that hour. A lot of commuters. Of course, as we continue to deal with the aftereffects of ice and snow and sleet although the sun is shining here today in new york city. It may not last long. We dont switch away to Weather Channel . Theres a big battle, by the way, on Weather Channel, i dont know if you are following it. The bat of the tweets there. Al roker with the mayor. Im sorry to say it but i side with al roker on everything. My favorite was when he said longterm prediction de blasio one term. Wow. The Chinese Company a lot of people think its chinese but its not, log minh. You have social, moshbile and cloud and connectivity. Lets get to Mary Thompson on the floor who has more on what is moving this morning. Mary . Good morning, david. As was the case yesterday we saw the markets initially sell off because of weak data. Yesterday it was the retail Sales Numbers for the month of january. Today it was the Industrial Production figures. However, the markets have turned mixed. The s p is higher right now, we are seeing strength in the Energy Complex and banks are higher along with some drug companies. The dows still down about nine points. Nevertheless, take a look, the s p has had a strong move over the last eight sessions, up just about 5 so the momentum continues today. Markets on track for their best week of the year. Dont want to spend too much time on gold because, of course, jim mentioned it earlier but it is trading at a threemonth high today. Dollar weakness in play there. Its impacting some of the commodities although crude oil is not participating. Its trading below 100. Energy stocks are higher in todays session. Lets look at some of the stocks that are in the news today because, of course, earnings continue even though we are winding down earnings season, Weight Watchers is the stock to watch today. The companys earnings below expectation at 54 cents a share, but more importantly the company saying that this year will be challenging and the stock down on that news off over 8 right now. Trulia which is the online Real Estate Company had higher marking expenses in the last quarter. That put pressure on its bottom line and its stock is under pressure as well today off over 12 . We do want to mention brocade, this is one area in tech. Nasdaq still down 6 but the networking Equipment Company coming out with betterthanexpected results thanks to strong sales of a new generation of equipment. Its shares are higher. And lastly we want to end with ampro which received another bid, now mineral technologies is bidding 42 a share for it and its stock is up 7 on that news. David, back to you. Thank you very much, Mary Thompson. Lets head to the bond pits now and check in with Rick Santelli at the cme group in chicago. Rick . Good morning, david and, you know, weather not only an issue for traffic as we just saw in that pileup in philadelphia, but its also an issue for the markets to try to divine as these january data points come out how much is due to a slowing economy, how much is due to inventory builds and how much is due to weather. Todays no exception. If you look at Industrial Production, Capacity Utilization especially, you know, autos, auto parts were part of the reason these numbers were down. But exactly trying to figure out what is weather and what is they just made enough of whatever it was inventorywise is difficult. You can see the volatility on the intraday chart and open it up to year to date charty, clearly this is a wave off the third and we are hovering at 273 right below technically significant 2. 75 especially for a weekly close today, you want to Pay Attention to that. Lets look at the euro versus the dollar the mirror image of the dollar index. The euro has had a pretty good week, and the dollar index is closed to what it closed last year. Lets look at the yen in particular, maybe an easy way to get a quick glimpse of what the market will do from this perspective, the carry trade. The dollar yen, the dollar is lower and the year to date chart, can clearly see a lot has changed on this carry trade for 2014 and since the dollars down versus the yen so is the euro and the pound i would suspect that some of this weakness in equities at least for the moment may last and the big chart of the day big chart of the day pound versus dollar. Uk currency has been on fire. Its currently trading the best levels since november of 09. David, back to you. Wow. November 09, thank you very much, Rick Santelli. Chocolate makers are battling for your love and your money this valentines day. The ceo of godiva will tell us how his Company Looks to get ahead of all that other competition. But, first, more golden moments from the Winter Olympics. Its carl live from sochi when we return. Could save you fifteen percent or more on car insurance. Mmmhmmm. Everybody knows that. Well, did you know that old macdonald was a really bad speller . Your word is. Cow. Cow. Cow. C. O. W. E. I. E. I. O. [buzzer] dangnabbit. Geico. Fifteen minutes could save you. Well, you know. [ male announcer ] with nearly 7 million investors. Oh hey, neill, how are you . [ male announcer ]. Youd expect us to have a highly skilled call center. Kevin, neill holleys on line one. Ok, great. [ male announcer ] and we do. Its how edward jones makes sense of investing. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Our Carl Quintanilla is live from olympic park and, of course, as always has the latest. Carl . Reporter hey, david, good morning. Yeah, if you guys are going to get excited about one event these entire Olympic Games you got to make it about mens hockey. Tomorrow United States versus russia, cue all the memories about lake placid and the miracle on ice, there is so much pride on the line for these players. We caught up with several of the u. S. Players after practice this afternoon local time and we asked them how they are going to handle the pressure. Obviously russia is a great team, you know, were coming in and want to build off our first game and its going to be a tough challenge but, you know, i think were up for it. I think as professional athletes you put pressure on yourself to perform and i think thats how were taking it. Its a big game for sure and were also looking forward to it. Were excited. I think anytime you play russia, its always a rivalry, you play russia in russia it makes it that much more special. We know theyll come out flying and theyll be hungry and well be just as hungry and ready to go. Reporter we know the hungrier the crowd the louder the crowd and theres been a lot of discussion, guys, about just how loud the russian crowds have been, the analyst for nbc sports says this, whoever russia plays the crowds are just outstanding, theyre loud, theyre into it, almost like a seventh person on the ice. I think its a factor. Other big news of the day, of course, is the sweep. The United States taking gold, silver, and bronze in the mens slopestyle skiing. Only three times in the history of the games, guys, has the u. S. Done it on the winter games. Half of our medals so far are in the big slope style events thexgame sports event, we caught up with a silver medalist Gus Kensworthy and asked if the the sponsors are taking notice. I dont know if my strategy changes too much but my agent hopefully churning some wheels. Ive already got awesome partnerships with nike and the Different Companies but i have contracts up this year so hopefully it will be a good time for negotiations. Reporter yeah, hes got that right. Speaking of sponsors, guys, i know you talked about under armour, theres a look at the stock down 1 the journal citing sources familiar with u. S. Speed skating that they are looking at a design flaw in the suits that allows air in, creates some drag, makes the athletes work harder and maybe, maybe, explains why were not medaling. The dutch are killing us in speed skating with 12 of the 18 medals awarded so far under armour has a statement out today. But, guys, it seems like every olympics there tends to be some discussion of the technology and clearly thats affecting ua today. Also how about the super this big upset, carl, the stunning gold for by kostaliky . Reporter are you talking about sage . Yes, the guy comes back from 14th place. How is it possible . Reporter look, bode miller, davis, julia mancuso, all the superstars of these games, jim, with no disrespect, have been the letdowns so to speak. Its been the surprises, the farringtons, and athletes who were not even expected to be on the team a few months ago taking home not the silver or the bronze but the gold. I was just talking to bruce beck of nbc local in new york, he says you can never predict these games and that is especially true here in sochi. There was a terrible onice looked like a guy was checked right against the boards last night, one of our skaters, free skaters, just, i mean, you have action over there that no one was thinking was going to happen. Reporter its unbelievable and i have a feeling this weekend with hockey, jim, will just bring more of it. I cant wait. Were shut in here and all we do is watch the olympics and its fantastic. It is. I wonder whether some endorsements, some people are going down in value, carl, the three that you just mentioned. I think i dont want to affiliate with them. Still getting over sidney crosby, man, overtime. Reporter is there greater leverage than a gold medal when you go back to the table to renew a deal . No. Reporter ill see you next week. Im flying back tomorrow and ill be back at post nine on tuesday. We miss you. We do. Safe travels, carl. Best tweets out of the olympics. Breaking news on Consumer Sentiment and jim with something extra. Well go seven stocks in 60 seconds. Friday night, buddy. You are gonna need a wingman. And with my cash back, you are money. Forget him. My Airline Miles will take your game worldwide. What im really looking for is i got two words for you rewards. Theres got to be better cards than this. [ male announcer ] theres a better way with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First rounds on me. Why do six when you can do seven . 7 stocks in 60 seconds. Lets start with the key to this market. Getting a series of downgrades, i want to be careful, Tractor Supply had been a big growth stock and they dont want to be in Tractor Supply. And this company came public and it hasnt seen an uptick since. Bank of america downgrades and a terrible profit out look this is not a two for one split. Stratus. The 3d printing stocks are back and bigger than ever after the 3d disappointment. This is the best of the lot. Hot is the symbol for starwood. Ubs points out, just because they didnt buy enough stock back, this is ridiculous. This stock is a great play on china. Timken, shrink to grow. And jeffries said not too late to get on board they are splitting soon, and they buy 20 per of the stock back. And sienna. Another name i really like. They are in the 100g which is optical. And magnum. All right, mr. Evans came on, made a lot of claims. Made a lot of claims that utica would be big in ohio. Well can it is they have struck natural gas in a part of ohio that no one thought was there, bravo bravo all right my friend, you stay there. Well get to Rick Santelli on Consumer Sentiment. 81. 2 is the preliminary february read and exactly the same as our final january read, 81. 2. And depending on whose expectations you are looking at, its actually a little bit better than expectations even though its a lateral move. So, the last bit of data for the weeks in. Yields are mostly unchanged. David faber, back to you and i hope you have a good threeday weekend. Thanks so much, rick. Appreciate that. And to you, my friend, you are going to take a little more than a threeday weekend. Got to get some sun. Got to get some sun. Im wilting. It is time. The only guy that has sun is krar quintanilla. Sochi is unbelievable and were miserable. Another day i have to wear my mucks. Its a good luck. Thank you. All right, thanks, jim, enjoy. Simon, what do we got coming up the next hour . 9,000 flights kantioned over the last 36 hours and amrs former ceo bob crandall will join us live and well celebrate valentines day in tradition with the ceo of godiva will be with us and series two of house of cards jams Broadband Networks around the work well talk to buzzfeeds John Steinberg about a whole new paradigm. Hour two of squawk on the street. Latte or au lait . Cozy or cool meow or woof . Exactly the way you want it. Until boom your mattress a battleground of thwarted desire. Enter the sleep number bed. An innovative design that lets couples sleep together in individualized comfort. Hes the softy his sleep number setting is 35. Youre the rock, at 60. As your needs change, you can adjust your sleep number bed, so you can sleep better together. Visit one of our 425 stores for the the largest closeout event of the year with 50 savings on Innovation Limited edition beds. Know better sleep with sleep number. voseeker of the sublime. Ro. 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. Why dont you build me up baby just to let me down morning, our roadmap starts with the weather this hour. Another crippling winter storm creating chaos for travelers all over the country. Causing the highest number of Flight Cancellations in 25 years. So, whats the bottom line for airlines . The former American Airlines ceo bob crandall will join us in just a few minutes. Plus, netflix debuting season two of its series house of cards and how much the company has riding on this one. And, yes, its valentines day and were talking to the ceo of godiva about just how much they depend on todays sales. All right, but that snowy water really is impacting the Airline Industry this year. Cancellations are at a 25year high. This winter low 97,000 flights were canceled according to data from december 1st to today. Bob crandall is the former chairman and ceo of American Airlines. You know, bob, the numbers are absolutely staggering. What happens . Take us through the swept when executives get this kind of havoc from the weather. Well, everybody, of course, the first thing they do is all the ops center, the Operation Centers of each one of the airlines very complex, very comprehensive ops center, their task is to position the airplanes, all of the airplanes and all of the people, accommodate all of the changes that have occurred and gradually put the airline back together again. Just curious, when you get these kind of numbers, bob, how quickly can the airlines actually get back in the air and back online . Well, depends. It depends on a lot of things. It depends as much as anything else on how reliably they can count on the airports reopening, so theyve got airplanes and theyve got people scattered across the country. Theyve got to reposition and reschedule the crews or reschedule the airplanes so that they match and so that the airplanes continue to honor all of the required maintenance schedule and then theyve got to determine when they think that airports going to be open so they can get the airplanes back in place and so they can get the airplanes that are trapped there, if there are any, back in the air. I imagine, bob, if youre one of the big airlines shuttling airplanes between major hubs its not an issue because there are daily flights and broadly everything is where it should be. Well, no, in fact, its not, simon, because, yes, there are airplanes moving back and forth between the major hubs. But youve got all kinds of time restricts and youve got particular restricts on airplane types and individuals that have to undertake certain prescribed maintenance procedures person so put it all back together is a matter of matching up lots of variables. And speed at which you can do that, of course, is a function of how soon you can count on flying the airplanes back in those airports. You know, bob, while we got you on the phone, delta has taken out fullpage ads today paying attention to the fact that it paid half a billion dollars of earned Profit Sharing to its 78,000 staff. Whats the context here . Does delta think its got an image problem not least from the fact that on its last quarter it booked a billion dollars of tax credits from the federal government . No, i dont think delta thinks it has an image problem. I think delta is trying to underscore for the public and for its own people the contributions that the people on the front lines actually make, you know, if youre an airport ticket agent, youve spent a lot of time getting yelled at in the last 10, 15, 20 days. I think delta wants to make the point to the public and to its own people that they greatly value the contributions of the men and women on the front line that make it happen. You know, bob, our reporter phil lebeau keeps pointing out that investors dont seem fazed even though were talking about 5 of total flights for these airlines being canceled. Is that right . Should investors be worried about this . I dont think so. An investor as opposed to a trader is interested in, you know, the future value of cash flows. In fact, the matter of the Airline Business since it has become consolidated is a much more reliable earner and will be a much more reliable earner of both cash and profits in the future than it has been in the past. So, this is certainly a catastrophic problem from the standpoint of individual traveler and very difficult problem for the airline. But the impact in the long term doesnt amount to much. Perhaps its inevitable, bob, the Virgin America may be looking at an ipo, certainly the Financial Times is reporting they are short listing bankers to come to the public market. Theres a suggestion that theyll use the funds to double the fleet and obviously some of the private equity players want to come out. Now, dependent on where it prices, where do you think Virgin America fits . Is it something investors should look at in your view . Thats a hard question, simon. Right. I dont know. The relate is that the Major Airlines since they have consolidated are going to be much, much stronger competitors. And the consequence is i would think that Virgin Americas going to find itself with lots of much stronger competitors than it has been true in the past. Very quickly, bob, just final thought here on the weather. The cancellations, how much demand destruction is there, or does all of this come back when it weather imimproves . It doesnt all come back, but i would guess 90 of it does come back. Some of the Leisure Travel and some of the business trips will just simply be canceled. They just wont happen. But the amount of total demand destruction i think is going to be pretty nominal. All right. Bob crandall, great to get your perspective on this day. Tough time for the airlines. Bob crandall is the former legendary ceo of American Airlines. All the Winter Weather is wreaking havoc, of course, from the carolinas all the way up to new england. The Weather Channels kate parker is live in phoenixville, pennsylvania, with an update on the storm. Its not snowing where you are i can see at the moment, kate. Reporter right. Things have cleared up here, simon, but we are seeing some major problems just about 20 minutes to my east, thats where the pennsylvania turnpike has seen a major pileup. 50 to 100 cars have are in that accident there. And its backed up for miles upon mile. Its closed. They have, you know, se semi trailers that are jackknifed and theyre blocking all the lanes there. And im going to tell you why this is. Why people may be went to bed last night and thought it would be okay. Because yesterday we got 10 inches of snow in the morning. Thats pretty significant. We had all afternoon to clear some of that out. Then it started raining yesterday evening and the roads really werent too terrible yesterday evening because we were a little warmer. We had that rain that had mixed in. But overnight that turned to freezing rain so we do have some ice about a tenth of an inch of freezing rain that accumulated on surfaces and then we had more snow that whats on top of that. So, when people are heading out the door this morning, not all of those roads have been treated from that most recent snowfall. And people were probably drive too fast and didnt realize that we had seen that freezing precipitation overnight and that was probably a contributing factor here. So the key is to stay off the roads as much as possible. We are going to see some improvement happening today because those temperatures are going back above freezing, but later tonight the temperatures dip and more snow in the forecast tomorrow, so, sara, i think that people are really going to be digging out for the income few days here in pennsylvania. A recordbreaking year. 54. 1 inches of snow that puts us as the fifth snowiest season in philadelphia on record and it also average for this time of 82er is about 14 inches, so way above average, sara. All right. Across the country, really. A long winter and only february the 14th. Kait, thank you very much. Up next on the program the hype continues its a valentines day present for many from netflix, season two of house of cards is live now. Will netflix see the same success with this show as it did for the first series and what does it mean for the companys bottom line . Buzzfeeds John Steinberg will join us live to talk about that when squawk on the street returns. It doesnt matter if there are granite statues, or big mahogany desks. When working with an investment firm, whats really important is whether the people behind the desks actually stand behind what they say. Introducing the schwab accountability guarantee. If youre not happy with one of our participating Investment Advisory services, well refund your program fee from the previous quarter. Its no guarantee against loss and other fees and expenses may still apply. Chuck vo standing by your word, thats what matters the most. Get 36 months interestfree financing, and save up to 500 on beautyrest and posturepedic. Get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. Plus, free delivery, setup, and removal of your old set. Keep more president s in your wallet. This special financing offer ends president s day at sleep train. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep all right, stocks are mixed right now. No major moves in the market. Lets get back to headquarters and a quick market flash from dom chu. Heres what we got, Brocade Communications out of the gate up more than 4 this morning. The stores networking Equipment Company beat both earnings and sales estimate for its fiscal First Quarter and it reported after the bell late last night. The ceo of the company says they are seeing a recovery in the Storage Market and they saw healthy demand for their Storage Area Network products. That quarter 2014s also been good for brocade shares up 12 so far this year, simon, certainly a stock well focus on today throughout the day. Back over to you. Dom, thank you very much. The wait is over for many the Second Season of house of cards arrived at 3 00 a. M. On the east coast this morning just in time to help some of netflix million of subscribers beat this brutal winter. But is the internet ready to handle the traffic . John steinberg is president and ceo of buzzfeed and a cnbc contributor. John, it is a sign of the times that the release of a tv series gets this sort of attention. I just so many levels this is fascinating. It really is, simon, and whats also interesting is how many things are different about it than a television show. I went up to my ipad this morning at 3 00 a. M. . Yes, sara. What you have is this beautiful, haunting cinegram taking over my ipad screen, ive never seen them do this before. Sound is playing as well and i watched the first couple minutes. Theres no last season on house of cards they dont need to do that. Its not robin wright. Im better at stocks than celebrities. I think its creepy, actually. And you dont need a refresher on what happened last season because you can go back to watch the end of season one, thats different as well. I dont think theyre going to disclose any viewing numbers on this because they dont want to jack up content cost. How many people do you think watch this . 66 of netflix subscribers tend to at least one original feature. You are looking at 30 million subs in the u. S. And 10 million internationally and 20 million, 30 million. So it deserves this sort of attention . Were not sure this particular one will get that level of attention and viewership, but it is significant. Its as big as anything on television in terms of a show and this is really whats driven all the growth in subscribing in netflix over the past year so its significant and its a game changer. Also i think with netflix you get basically the company of the Media Company of the future today. Everything is going over the top. Youll be able to get it on all of your devices and netflix is sort of there today already. Sorry, sara. Im not sure that thats true i wonder if comcast and the Time Warner Cable deal it has all those major markets whether it cannot reverse the idea that people are cutting the cord with the sort of technology it can bring to the able with the way in which the whole industry could better act together as john malone has pleaded for it to do. I think how much has not changed since that regard and we used to have can you get your channel on the cable system and now we have can you get your content delivered in a way its not buffering and people arent waiting for it to load. I dont think its deliberate on the Cable Companies i think whats happening with the content Distribution Networks the servers moving the content to the people its so complex and so much needs to be arranged between a netflix and comcast if they dont do that people will have problems and there isnt a huge incentive on the part of the comcast to do it. Its great information. It wasnt what i was asking you. I was asking you the premise whether people will be cutting the cord and moving online is broken if there ask a more powerful player in the form of the new company. I dont think its broken. I think there will be more debate and negotiation but the fact that media is separated from delivery and the people that are focused on creating media no longer need to get put on a system, i think that is forever changed. I think on the house of cards beyond the interesting model here, it made hollywood Pay Attention closer to netflix, tank i taking netflix more seriously. It won the emmy for best director. It has other hit shows. They raised 400 million in debt and the reason they did was because of original content, acquisition amongst other things and the stock has remained stable despite saying they are going into that because theyll use debt to finance it and cheap money to finance it. Were seeing a lot of the economic models that were old hollywood now playing into netflix as well. Relatively cheap not nearly as cheap as other companies. They do have a lot of debt already. I wonder, though, jonathan, whether well see other entrants into this scripted format, for example, google could easily choose to produce a couple of big series and put them on youtube to create even more currency there or a facebook and using that platform to go after it. I mean, these are companies that have unlimited conceivable resources. And i think certainly amazon weve seen do it. Not to be critical acclaim at this point with the one key series. I think if you said to someone three years ago that linkedin would have people directly blogging on the platform, that facebook would have a whole team of people that work with Media Companies to make sure theres the most breaking content on facebook people would have said that was unlikely. I do think that the idea that its more likely for google or youtube to go into but why not facebook when content is what drives the usage and consumption. They know their Customer Base so extraordinarily well and what they like or dislike. Thats one of the keys for netflix as well and amazon, the algorithms are incredible what they can accomplish. And its the key for all Online Companies and at buzzfeed we have more information about whats being viewed. To go direct to the customer and not have to beg the Cable Company for the data on what is being viewed is more powerful. Isnt that a case for worrying netflix investors its not plain sailing that the moat is not that wide . Isnt that the point that davids making . I think thats a fair point. Theres a lot more competition and they are hit driven so you do begin to look at it more like a disney or Something Like that where theyre reliant on having the next megafranchise they can build into something. It worked pretty well for hbo which is far larger than netflix in terms of profits. The gig question is when will hbo go over the top and they said its simple math. All the guys are looking at that. In summary, what are you doing, are you taking the wife out for dinner or are you going to watch in the cheap seats and watch netflix . Im a very early dinner guy, well go to dinner early with another couple and then get home to watch netflix. My whole entire evening will cost be 17. Thank you, Jon Steinberg from buzzfeed. Up next, Weight Watchers have a look, shedding more than 20 after unappetizing Fourth Quarter results as the competition fris too much for ts company. And were also talking to the ceo of godiva about just what does valentines day mean to their bottom line. Well be back after a quick break. Iwe dont back down. We only know one direction up so were up early. Up late. Thinking up gamechanging ideas, like this dozens of tax free zones across new york state. Move here. Expand here. Or start a new business here. And pay no taxes for 10 years. With new jobs, new opportunities and a new tax free plan. Theres only one way for your business to go. Up. Find out if your business can qualify at startupny. Com in a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable, professional. Would you trust me as your Financial Advisor . I would. I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro, you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. Another great morning for you are in shares of Weight Watchers being absolutely slammed today. Theyve now lost about half of their value over the last year. Lets get an update now from josh lipton who is live in san jose. Josh . Simon, Weight Watchers, of course, focused on one thing. Helping you cut weight. Now, new technology is cutting into its business which is cheaper and more convenient and growing by leaps and bounds. Take a look at Weight Watchers this morning. That stock is getting nailed on disappointing guidance. The company telling investors that 2014 will be a very challenging year. Company on the Conference Call saying the headwinds are coming from apps and activity monitors. Now analysts are telling me part of the problem here weight lo loss as well as wearables, a lot of buzz, of course, about wearables, a market that is growing fast. More than 17 million wearable bands will ship this year thats according to Tech Research firm kanellas, wearable bands made for fitness enthusiasts folks trying to lose weight and stay in shape, its relatively small but they see big opportunity. They predict the smart bands will each 8 million annual shipments this year and grow to 23 million by next year. The leaders in this segment, fitbit with its flex and force bands as well as jawbone maker of the up wristband which helps you understand how you sleep, move, and eat it costs about 150 bucks and big money flowing towards wearables. They are reporting that jawbone is poised to complete a new 250 million round of funding valuing that company at 3. 3 billion. Sara, back to you. All right, a lot of excitement on wearable technology, josh lipton, always good to see you. A segue from Weight Watchers to chocolate, of course, now nothing to do with the weight loss here. Couples across the nation on this valentines day will be scouring the shelves for Something Sweet for their sweetie today. Could these treats be a guiltfreeway of indulging your portfolio perhaps . Jim goldman is the ceo of godiva, he joins us on post nine with treats on this valentines day. I got to ask, are you expecting softer sales because of the weather . First of all, happy valentines day. Its our super bowl. We are not expecting softer sales because love is a very powerful thing. We had some weather, of course, in many parts of the country yesterday and people are out early this morning lining up at our godiva stores to buy the ultimate chocolate indulgence. Are they buying more online because of the weather . They do. But valentines day is a very personal holiday and so people buy and they give to those that they love and care about to celebrate the holiday. And apparently, simon, this year the seller, i guess every year, chocolate dipped strawberries. What did you say . Were known for our chocolate dipped strawberries and our employees are out there dipping right now. We do 16,000 an hour we sell. 16,000. Have you really got people lining up soue ining outside yo . Really and truly. Where . At 6 00 this morning at the metlife store in new york city, they were lining up and there when we opened the door and we expect them to be there all day. Where does your industry fit in the future . How does it change . I have a reaction that probably befits the fact that im old and cynical, that it really doesnt do it for me. Can you change . Can you attract more people who may be less concerned about filling their stomachs with fat and sugar . Okay, so one of the things i heard you just talk about Weight Watchers, so youd be surprised our individually wrapped truffles are 50 calories each and most of our chocolates are less than 100 calories and dark chocolate is on fire because of the high antioxidant content and chocolate is more popular than ever. Do you package that like this and you say its dark chocolate or do you do Something Different . We have dedicated boxes of dark chocolate and they can select exactly what they want and pack it in a box or eat it on the spot. Nestle just came out with a disappointing forecast. A lot of the other sort of Food Companies specifically have painted a pretty grim picture of the global consumer. Are you seeing that softness in demand . Well, were growing. And the premium nature of our product and the quality of the product really makes people gravitate towards it. Theyre buying for things that are worth it and godiva has a long history of delivering value and delicious chocolate. They buying the expensive stuff or the cheap stuff . We have all price points and it depends on who you are gifting to or if you are selftreating. So, on valentines day for the significant other Something Like our satin hearts are very popular. But for children, and for friends, theyre more accessible price points. I love the language. What does selftreating look like . Okay, so selftreatings the biggest part of the chocolate market. People love chocolate. Yes. If theyre going to enjoy chocolate theyll go for the best. Do they get a brown paper bag . Its the dipped strawberries. Today people are buying them in 6s and 12s but they also sneak one in for themselves or a truffle which is our specialty. I feel duty bound to ask you about cocoa prices. Sure. And what that means for you now. Its high right now. Its at a 2, 2 1 2year high, but it goes up and it goes down and we look at it in the long term and we lock in when we think its the time to do so. Which country has seen the most demand . Asia, i just came from asia, by the way, they had the largest snowstorm in 40 years while i was in tokyo last week. No yes. But people are still out buying godiva chocolate. We should all have gone to the sochi games. Spring break. Happy valentines day. Congratulations on that. Leave the chocolates. Absolutely. We have news on gdp and Steve Liesman has the latest on that. This is something weve been tracking every day especially related to the weather. The philly fed is out with its normal quarterly forecast and they are trimming the gdp for the First Quarter down to 2 versus the 2. 5 . And q2 is up a tenth to 3 from 2. 9 they dont cite the reasons but its the things weve seen in the weatherrelated downgrades which is a downgrade to the current quarter. As for pay rolls, they see job growth ticking down to 177,000 a month from the prior forecast of 187,000. And payrolls rebound again in the Second Quarter to 193,000. And then just the Industrial Production data that we had at 9 15 this morning we want to go back over that, down 0. 3 in january and the forecast was to match the december gain of 3. 3 and a big miss by the economists and by the economy with Capacity Utilization declining, the fed citing the weather contributing to the closing of auto plants and 0. 8 decline in manufacturing production in jarn and utility output went up 4. 1 of the colder tales in january and Colder Weather contributing to a nearly one decline in mining which, of course, includes Energy Extraction and beyond the expectations of economists, simon, that was the cold in january before the snows in february, so put those two together, we had an estimate out yesterday about a 50 billion hit to the economy over a threequarter period. Do you know whats really interesting, steve, the market has continued to rally through that. Were in rally mode up 54 points on the dow. Were coming back up towards the record high that we set was it earlier in the month. You know, a lot of people seem to be taking a common sejs attitude to that while you guys are crunching the numbers and doing your job and doing the due dill jennings, they are saying, hey, its weather, that will pass. I think thats part of the crunching of the numbers and the due dill jedge were doing here is were trying to figure out is there a secular weakness going on here or is it weather related and so far most of the economists think theres a weatherrelated decline that came along with the decline that was expected in the First Quarter as a payback for some of the strength in the prior quarter. Steve, see you later. Great work. Thank you very much. Thanks. Steve liesman back at headquarters. Straight ahead in the show its one of the most outrageous investment scandals of alltime and were not talking about madoff. Find out what one of the most colorful ponzi schemers ever is up to now. A hint. It involves the cia. Were back after a quick break. Fifteen minutes could save you fifteen percent or more on car insurance. Everybody knows that parker. Well, did you know auctioneers make bad Grocery Store clerks . Thatll be 23. 50. Now. 75, 23. 75, hold em. Hey now do i hear 23. 75 . 24 hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and. 75 25 now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter sold to the man in the khaki jacket geico. Fifteen minutes could save you. Well, you know. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry, but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. The s p is in the green for the week after a rocky start to 2014 and, in fact, coming in todays session the s p 500 had gained 4. 5 on the last 6 sessions despite a huge concern on where were going on data. Lets bring in lets bring in luciano the chief investment strategist at wisdom tree and joining us is the chief Global Investment strategist for blackrock. Russ, the Consumer Confidence figure is also come in relatively strong today, durable goods are weak. Sorry, Industrial Production was weak. Retail sales were weak. Where are you on this discussion about the about the data and the strength of the economy . I certainly would agree with the notion that weathers having an influence. You know, one data point to keep in mind when you looked at the Manufacturing Survey which came out earlier this month, the plunge in the orders was the largest weve seen since 9 11 so clearly the weathers having a large impact on manufacturing. Many sectors of the economy. And that said it doesnt explain everything. The payroll report in january was weak. But yet we had 50,000 new jobs in construction which is arguably the most water sensitive of any industry. So, i think the reality is the weather is adding an additional headwind. We are certainly seeing some slowing from the pickup we had on the back half of 2013. Is it logical, russ, in your view for the market to be rallying back up to the highs . I think its aggressive. You know, i have to say, simon, im very surprised how much the market has looked past things like the retail sales data which to some extent was impacted by the weather but to my mind a better explanation for that number was very weak Income Growth which is not weather related, so i think the market may be a little bit too optimistic about discounting some of these numbers. Explain, if there are signs of weakness particularly for the consumer creeping in amid the weather kind of negative news on the economy, why are markets in rally mode . Well, the stock market discounts a great deal of information, but ultimately it trades in aggregate as a multiple of two very important income streams, one of them is the profits generated by Corporate America and they are at an alltime high and the cash dividends companiies paying to shareholders at an alltime high, companies are still free to buy back their stock and issue debt at lower rates in order to grow the dividend streams 10 , 12 a year. I think theres two questions, its really how strong is Corporate America and its not just the u. S. Economy but its the Global Economy and the second question as russ pointed out is how temporary is this going on with the weather, you know, personal income is at an alltime high, personal spending is a an alltime high and gdp is at an alltime high and you havent gotten back to alltime highs with employment, the economy is still being productive, its jut not growing as fast as it has in the past. The one number that concerns me is the aftertax income seems to have plateaued in the last three months in terms of disposable income and that might be correlated on the softness in the economic data. Russ, what is the health of Corporate America . To me it seems like Revenue Growth, actual demand, is still a problem and the guidance and forecasts have been pretty disappointing or at least there have been some big high profile disappointments. I think this is the issue, you know, i agree with luciano, were in a world where companies have done a very good job of Financial Engineering and used the lowrate environment to their advantage and weve seen fairly decent earnings numbers, although to your point, not as good as perhaps we might see. But the reality is, in long term, the economy needs to generate topline growth and for the economy to grow faster, the Consumer Needs to spend faster. And going back to the previous point, if income is constrained, its going to be hard to see that expected pickup in consumption. So, to me thats the linchpin of this. If were going to see a faster economy we need to see faster growth in disposable income so far at least that has not happened. You are both investment strategists. In one line each can you tell me what the strategy should be now for investing . Luciano, you first. If your view is Interest Rates are stable from here, i would try to squeeze as much Dividend Income as you can out of the u. S. Equity market and programs out of europe. If your view is rates go higher from here, you need to get a little bit more defensive in terms of some of your fixed income positions. And, russ, in one sentence . Id say on the equities side, get cyclical. On the fixed income side, a slight emphasis towards credit. Good to see you both. Thank you, russ and luciano, have a great day. Thank you. Thank you. Monday marks the fifth anniversary of one of the most outrageous investment scandals of alltime. Were not talking about bernie madoff. In february 2009 authorities accused texas billionaire Allen Stanford of running a 7 billion ponzi scheme but today from prison stanford still insists hes innocent. Our Senior Correspondent scott cohn is here to bring us up to date. Scott . Hi, sara, he does get overshadowed by madoff but he was way more colorful and he also hurt a lot more people, 28,000 people, ten times the number of direct investors with madoff. Remember he cast himself as a globetrotting billionaire offering safe investments and suggesting as he did to me five years ago that maybe he had special connections . Were you helpful to the authorities in the u. S. . Youre talking about the cia . Well, you tell me. Im not going to talk about that. Why not . Im just not going to talk about that. Today Allen Stanford is in a highsecurity prison about 40 miles from orlando, florida, serving 110 years. He is appealing his conviction but with his assets frozen and having fired about the last of a dozen attorneys hes representing himself filing motions in long hand like this one he filed last march. I or any american citizen deserve better than he writes. The presumed innocent part of o our constitution is only a myth in america today. That doesnt impress stanfords victims who five years later have recovered less than a penny on the dollar. The victims justice is in recovering their savings. They worked 20, 30, 40 years to build. And worked, you know, in many cases two jobs and, you know, these people are very middleclass people and their justice is getting their savings back. Of course, were happy Allen Stanford is behind bars, but theres so many other injustices in this case. Well, a short time ago ralph janby the Court Appointed receiver trying to recover funds for the victims issued an open letter on the fifth anniversary saying hell work tirelessly to recover funds but hundreds of billions are still tied up in litigation and including a socalled baby momma trust in one of stanfords mistresses. Told you he was colorful, simon . Baby momma, all right, scott, thank you very much for that. Scott cohn there. Up in exon the program well take you live to the Winter Olympics in sochi with an update on what events you should be watching today and, of course, the russian and american hockey players facing off for the big one tomorrow. Were back after this break. Where you think youre gonna go when your times all gone . [ male announcer ] live a full life. The new lexus ct hybrid with an epa estimated 42 mpg. The further you go, the more interesting it gets. Lease the 2014 ct 200h for 299 a month for 27 months. See your lexus dealer. Her long day of pick ups and drop offs begins with arthritis pain. And a choice. Take up to 6 tylenol in a day or just 2 aleve for all day relief. All aboard. All aboard. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. The competition is heating up at the winter games in sochi. Carl is there, of course, live with an update on everything happening. Carl, what i learned from watching last night and the past few nights is america rocks at slope style snowboarding. Reporter yes. We absolutely do, guys. Good morning or good evening local time to you guys. You know, weve been talking all week about where Vladimir Putin has been showing up, he showed up at usa house, the u. S. Olympic team tweeted out this photo of him visiting. Apparently visitors were absolutely stunned. There had been a lot of tension about some of the members of the u. S. Delegation, some openly gay athletes. He reportedly got a gift bag and even a valentines day pin. As for team usa itself, continued hardship. Skier bode miller challenged all week long and, of course, a spoiler alert here, he just tweeted a few moments ago, ill never stop pushing myself past my limits but the mistakes that come with it are hard to swallow. Really tough day of racing, congrats to all those who medaled, it was hard fought. Theres been a lot of disappoints, shawne davis in the speed skating and the story about under armour, the journal citing sources saying speed skating is looking at some possible design flaws in the suits that lets air in, creates some drag. Theyve even taken it to a seamstress to try to fix it. U. S. Speed skating was asked about this and interesting statement, they say the evidence does not subject the suits have contributed to the disappointing results to date, however, there are many factors that determine olympic success and we are constantly making adjustments to improve results. Finally, simon, this ones for you, tonight the skeleton which if you dont know already is like the luge but youre going headfirst, Lizzie Yarnold is a huge favorite to win. Great britain apparently is amazing at that sport. In the last four winter games, simon, Great Britain has won a total of five medals, three of them are in the womens skeleton, so that should be an interesting event tonight. You say it, carl, as if i wouldnt know that to be a fact and i know reporter i know you knew. We were having a conversation about where the skill lies in that sport. Sara said she couldnt immediately recognize it. I guess its where you put your weight to maximize your speed. Reporter well, theres that. Theres the pushing which is a huge part of it. And then theres just the the inability to lose your fear when youre going 70 miles an hour down the track headfirst. I mean, you got to be ready for anything. I mean, three inches i guess from the ice. Look, are you still going to be around for the big hockey game tomorrow . Reporter no. Im flying back in the morning and i will see you guys on tuesday for squawk on the street. And i believe maybe some Sports Illustrated models if im not mistaken. Yes. Theyre here, to ring the opening bell. No wonder youre coming back on tuesday, carl. You know, carl, you look like youve had a great time. Have you . Reporter its been a lot of fun. Weve all been impressed as to how the games have been pulled off. Of course, Brian Sullivan is here all next week, so theres a lot more coverage to come. In the meantime, there are two very young girls very anxious to see you back at home. Reporter yes. Have safe travels back, carl. At least he seems to have enjoyed the weather compared to what is happening here. Carl there in sochi. And coming up, the vf corp ceo eric wiseman will join us about the weather and the controversy surrounding the u. S. Speed skating suits from under armour and his own results which have disappointed. Dozens of tax free zones across new york state. Move here. Expand here. Or start a new business here. And pay no taxes for 10 years. With new jobs, new opportunities and a new tax free plan. Theres only one way for your business to go. Up. Find out if your business can qualify at startupny. Com who found a magic seashell. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. [prof. Burke] at farmers,we make right inyou smarter g platform [bell rings] about your insurance,because what you dont know can hurt you. What if you didnt know that Home Insurance can keep your stuff covered,even when its not at home . Or that collisions with wildlife on the road may not be covered. And what if you didnt know that you could be liable for any accidents on your property . The more you know,the better you can plan for whats ahead. Talk to farmers and get smarter about your insurance. We are farmers bum pa dum, bum bum bum bum welcome back to squawk on the street. Check out whats happening with 3d printing maker stratos getting a boost right now. Oba adam blair. Saying statos could grow 20 in the next year. Plus, making bearish comments on 3d systems. That stock higher as well, simon, back over to you. Thank you very much, dom. A quick clarification. Industrial report showed a 0. 8 drop in manufacturing production in january. We made an error in an on air graphic earlier, for which we apologize. Lets get over to Rick Santelli at the cme group for this mornings Santelli Exchange. Good morning, simon. Well, whether its weather is the big topic. And everybodys debating it. I find a couple of fascinating ways to look at whether its the weather and one of them actually has to do with janet yellen and well use some pie charts. You know, whether its the weather. We have no idea what percentage of the weak data were getting is due to the weather. It reminds me of a similar issue that janet yellen discussed when she had her hearing the first one, of course, on the house side because yesterdays senate side was canceled. That was the difference between structural and cyclical issues affecting employment. And her answer was pretty much similar to whether its the weather or not. She said there is a structural issue, she just cant quantify how much it is. Both of these give us very good glimpses into a very big issue if you are an investor and even maybe a bigger issuer opportunity if youre more of a shortterm trader because in both of these arenas, theres money to be made if you come up with the wrong answer. And i think the fed, my opinion, has somewhat come up with the wrong remedy because the structural issues, in my mind, unemployment, loom large. And as for the weather, i personally think that a good significant chunk of whats going on is in this white area, not the weather, because i think were looking at an inventory hiccup. So when we look at some of the data this week, especially the Industrial Production Capacity Utilization, you see that part of the weakness there was a drop in autos and auto parts. I dont know how much is weather effected. I know just in time inventory may be an issue. I think the issue is they just made too much in the back half of last year. Second topic is the uk. As you look at a chart of the pound versus the dollar, thats a great run. Basically the pound is at the best levels going back to the fall of 2009. Theres something to learn here on a macro level. As i look at our dollar index basically just up a smidgen for 2014 thus far, the key is why the pound is up. One of the reasons is we learned this week the uk is upgrading 2014 from what was viewed to be around a 2. 8 growth rate all of the way up to 3. 4 . Okay . In the old days when i traded we always looked at the currency of any country partially as a stock in that country. Meaning if your countrys economy is doing better the currency should do better. This is a classic case of that being xlimp fied in the way the pound is traded. The last topic is china. Their surplus moved higher. Their exports are up 10. 6. Everybody that i know that trades things, thats partially why the stock market came back, that china is looking okay again. Beware. Chinese new year. You know, the lunar new year, probably made havoc with some of the data points. The short of all of this is, is that what we see right now might not be what we see in two months. And if you guesstimate the differences between reality and what isnt reality youre going to make a lot of money in the Second Quarter 14. Sarah, back to you. All right. Rick santelli with currencies, economies, and the weather. Coming up next on squawk on the street, if youre too rich to bother with chocolates or flowers, we have the perfect last lastminute valentines day gift. Millions of dollars worth of diamonds. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. voseeker of the sublime. Ro. 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. 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. It is february 14th. If youre still looking for that perfect lastminute gift for your valentine, consider every girls best friend, diamonds, of course. Wealth reporter robert frank has this story. Every girls best friend and every guys worst enemy. Most of us will go to flower stores but the super rich will be buying their heartshaped expressions of love from top jewelers like graph diamonds. The many super rich pop into their stores today to buy lastminute bling. And they took us to the vip room to show us more than 30 million worth of hard assets. Lets take a look. This is an exceptional necklace that has over 50 carats of diamonds and 140 carats of sfirs. You may notice we gently place a couple of hearts to celebrate valentines inside the piece. So if you got late with the roses or the florist was closed or something and youre on your way home, swing by graff, well be happy to help you. I think if you for got the flowers, this would make it up. If she doesnt, then you need to move on. That guy, that piece was 5. 5 million. Its 50 carats of diamonds. He also showed us 2. 5 million heart shaped diamond ring and a pair of heart shaped earrings 1. 4 million but they sold by the time we left the store. We were there and someone was buying those earrings. This stuff really does sell. Also, convincing people that this is an investment not just something you wear. I wonder when you if youre lucky enough to go into the vip store as you did, whether they deliberately have far bigger designs, more valuable ones than most people would buy to, therefore, make your area of the market look relatively cheap and a price point you could easily afford visavis those great big ornate things around you. The graff store is gorgeous. If youre looking at the 5, 3 million pieces, theyll say, were going to take you up this little private elevator and all the Jewelry Stores have the special vip room. Once you start looking and show you can spend millions of dollars they take you there and theyre really nice. That one to me looked a little bit like the titanic. You mentioned that people buy this it. Did. It did. Like the one of the heart of the ocean. People buy this as an investment. Yes. Whats really going on with diamond prices . I read that gold has been appreciating much more. If you look over a fiveyear period diamonds have gone up 20 annually every single year. And theyre another hard asset thats portable wealth. The asians right now, especially the chinese, love large diamonds. Theyre buying 80 of the big stones because its wealth that they can take somewhere else. Whoever told you gold was appreciating you should go back and check your sources. Im calling it bling vestm t vestments. I like gemstones. Im a simple girl. Thank you, robert. Nice to see you. Great story. If you just tuned in, good morning p this is what you might have missed earlier in our show. Welcome to squawk on the street. Heres whats happened so far. It is official. Joseph a. Bank is acquiring eddie bauer for more than 800 million in cash and stock. Its a great deal. And you couple this deal with the tender offer, its a winwin situation for the company and the shareholders. We talked a lot about the airlines in a very positive light. Were sticking by that. Actually generating cash. Actually generating return on capital thats more than their cost of capital. Distribution, by the way that occurred in american. Yes. And the thing hangs in. And why is that . Precisely because these storms are not wrecking their quarters which is just so unusual. Its worth noting the fact that this industry has become even weather proof. It has. Why dont they want to do whats right . Create a power house. I mean, Cable Companies are willing to create power houses. Who would it even be . You like the way they look and well give you four suits for the price of one. Well, consolidation in any industry is great. Menswear needs that. Wow, its out. January Industrial Production down 0. 3 . There it is, the opening bell. The premium nature of our product and the quality of the product really makes people gravitate towards it. Theyre buying for things that are worth it and godiva has a long history of delivering chocolate. Good morning to you. Friday morning on cnbc. Were live here from post 9 at the new york stock exchange. The markets are clearly back in rally mode after we gained again yesterday moving back up of towards the record certainly on the s p. Were less than 1 away from that at the moment. Shares of Weight Watchers though are moving to the downside after Fourth Quarter profit missed analyst estimates. Annings this year will also be down below initial estimates because fewer and fewer people are attending meetings. Meanwhile, shares of Campbell Soup are rallying. The food makers revenue bet expectations thanks to growing sales of its simple meals line. Today is road map starts with the weather. The east coast is still digging out from yesterdays major snowstorm. But all the bad weather is good news for some Companies Like apparel maker vf corp. Well talk to the ceo erik wiseman in a moment. Earnings came up short of analyst estimates. The ceo of trulia will be here to tell us what went wrong. The wait is over. The entire Second Season of house of cards now available on netflix. Will the plolitical drama bring big gains to the stock . The impact of the storms having on retail. The a par real company wf corp. Responsible for north face and timberland is vf, forgive me, its vf corp. Which is responsible for timberland and nautica missed estimates this morning. The rough weather helping the north face and timberland brand see double digit gains but the jeanswear division missing. Heres on the cnbc news line an exclusive interview now fresh off the Conference Call with erik wiseman, chairman, president , and ceo of vf corp. Erik, good morning to you. Whats working well for you at the moment before we we get into the softer areas . Thanks for having vf back on the show. You know, we just reported a really strong Fourth Quarter. We grew our revenues 8 and our earnings 13 in the third quarter. And if you look around the apparel and Footwear Industry there arent a lot of Companies Performing at that level. Were thrilled with the performance. It was driven by our outdoor and Action Sports businesses. Three biggest brands is north face, timberland and vans. They grew in that quarter. For those three big brands to grow at that rate is a fantastic result for them in the quarter. It launches momentum for us as we approach 2014. On the subject of this year, i read here that people believe that youre out look, particularly for north face and wrangler, is actually quite soft. Is that the case in your view because a lot of people will have looked at the bad weather and think, hey, surely, if it going to benefit anybody it would benefit north face. Well, you know, the weather where it was a severe winter like where your speaking from and where im living right now, weve had a cold and white winter. And that definitely helps businesses like the north face and timberland. And those businesses had really Strong Quarters. North face was up 12 and timberland was up 13 in the quarter globally. And behind that was very Strong Performance in our direct to consumer store. Thats direct to consumer business. Thats stores and ecommerce that we own and operate. That business in the quarter for the north face was up 30 . So what that tells you is that consumers are coming to our stores and going online and buying our products. We had the right products in the right weather and we had fantastic sales. Many of our customers also had fantastic sales through at their retail stores. Eric, let me interrupt you because im looking at a stock thats down almost 6 . I understand that you want to stay on message with what has worked for you. Im asking you specifically about the outlook for this year that i believe, according to a lot of people, is the reason why the stock is lower. Could you just address why this stock is down, where you see softness, and how youre going to steer through that . Sure. Our outlook for 2014 which we Just Announced was for Revenue Growth of 7 to 8 and for Earnings Growth of 11 to 13 . Thats right in line with our fiveyear forecast. Some of the analysts apparently got a little ahead of that forecast but we went out last june and said over the next five years well bind vf to a 17 billion company and then were going to do that by growing 8 on the top line organically and 13 on the bottom line. And the guidance we gave for the next year, for 2014, is perfectly consistent with that. I just want to hone in on the jeans segment because that was a rough spot for you this past quarter. Sales disappointing there with jeans. Wrangler is the brand. Who wears wrangler jeans . Whose your customer for that . Do you have Investment Strategies to freshen up that brand at all . Wrangler is actually our biggest jeans brand. Lots of people wear wrangler jeans. Its the second largest jeans brand in units in the world. We sell that brand globally. In this country, it sold through two channels, the mesh channel and the western specialty channel. Our western specialty channel has been good. Mesh channel struggled some in the Fourth Quarter as the apparel business. The apparel business in the midtier in the United States had a rough year last year. We are part of that channel and we struggled there as well. We think we gained share in those channels. It wasnt as robust as we would like it to be. Eric, i probably am right in saying that you dont engage in sports sponsorship at the moment but let me ask you about a rival brand that does, and thats under armour. This report in the wl journal that some of the skaters that theyve been sponsoring are unhappy with the design and saying maybe its slowing them down and under armour is coming out with a statement saying, we are working with the people. If theres a design flaw, we dont think there is. In the meantime, some people are skating their best. When you look at that claim and counter claim, what occurs to you as a ceo within apparel and prospects for doing those sorts of deals in the future . Well, we actually are involved in that kind of business right now at the Olympic Games. In fact, we had three athletes on the podium last night in the slope style skiing all wearing uniforms made by the north face and made in the United States. So i can comment on how proud we are of those athletes and their performance and the fact that they let us make those uniforms for them. Im not going to comment on anybody elses business in that statement. In the meantime is it fair to say if you do engage in this sort of deal, this sort of sponsorship, youre a hostage to fortune if the people, right or wrong, weighing it say it may be a difficulty for them . Well, the north face is a performance apparel company. That brand started by putting people safely on top of the most dangerous mountains in the world. And everything we do in the north face brand is designed to enable athletes, whether theyre a mountaineer or rock climber or in the case of the olympics, a slope style skier, to achieve their athletic potential. Thats in our dna and thats all we think about. And, yes, you have to you have to enable that or you failed as a brand. So then would you say its fair that you can blame an apparel maker for poor performance . I didnt say that. What i said is the north face, what we do when somebody is going to the top of mt. Everest we know they can get there in our product safely. Okay. All right. Eric, its good to talk to you. Thank you for sparing the time. Its a good guide that will come on when the results are on exactly what the market was after. Though the stock is up 50 , we should note, roughly, over the last year. Eric wiseman, chairman, president , and ceo of vf corp. Lets stay with the weather. The big story, the east coast covering from the massive weather storm yesterday. We have kait parker live in phoenixville, pennsylvania, where theres been a major Traffic Accident not too far away. Kait . Right, sarah. What youre seeing fall behind me, all of this ice thats coming down off the trees, i think thats going to be a major component and why this massive accident has occurred just about 20 miles east of where im standing. So what happened last night is that we had the big snowfall earlier in the morning. We switched over to rain in the evening. And then overnight, what i think folks maybe didnt account for before they went out on to the roads this morning was that we had a freezing rain. So we had a layer of compacted snow on the roads. You add a layer of freezing rain on top of that, and then it was hidden beneath another layer of nice soft fluffy snow. Another few inches of that. And i think that it was kind of snuck up on people. Now, the state of pennsylvania has been doing a phenomenal job. I can see a dump truck just off in the distance behind me. They have been constantly sanding, treating the roads, plowing them. But, you know, if youre driving too fast and you have any sort of slick precipitation on the roads and youre too close to the car in front of you, youre going to see the accidents happen. And in this case were hearing 50 to 100car pileup and the turnpike is closed. Pennsylvania turnpike closed. And it goes on for miles with how far the traffic is backed up in that area. Of course something that were monitoring for you here. The good news is here we have sunshine today but more snow in the forecast tomorrow. It is never pending. Thats how it feels. Kait parker, thanks for the update there in pennsylvania. Looking at the economic effect. Just how much should we be blaming the weather for that dip in retail sales . Steve is the former ceo of office depot and former ceo of auto zone. When you look at a negative number like that on retail sales for january and through december, how much can you blame the weather . Well, you know, the experts say that about a third of the economy is impacted by the weather in any given point in time. We believe that in january that the weather impacted gdp by about half a percentage point. And given the weather so far in february it should hit it by another half a percentage point. Our estimates are that in the First Quarter the gdp level should be knocked down below 3 and possibly close to 2 largely because of the weather. So what you see in retail, you know, and you know retail is important to the economy, 70 of the economy is the consumer largely retail. What you see in retail is impacted by where the weather is. So if the weather is located in the upper midwest and the Great Lakes Region where they are well equipped to deal with it, you dont see much of an impact. In this case its the whole eastern half of the country all of the way down to florida, all of the way up the eastern seaboard. So this is whats really impacting the retail sales right now. Well, i guess the question, steve, is how much permanent damage is there or can we just expect by blaming the weather that all of those sales will come back in full when it gets nice out . Its a very good question and it depends on the industry. The top line answer is there is going to be permanent impact here. The good news is is that we goat to cycle it again next year. Therefore, those numbers should be better. Look at it by industry. And the grocery industry what you see is consumers going in ahead of the storm, loading up, and then coming back after the storm. But you have more inhome eatings. As a result, the Restaurant Industry gets hit. Thats a permanent hit. In other areas though where people cannot go to the bricks and mortar stores, you saw and you see in january and february, people going more online. Now, this is where it can also be a very permanent effect where people who are now learning to buy more online and getting trained for that, they wont go back to the bricks and mortar stores. So this weather can have a permanent impact on the switch between bricks and mortar and online sales. Its interesting you say that because we saw online sales in that ree retail sales report take a dip, which could suggest theres something beneath the surface here and consumers might not be as healthy shape as everyone thought. No, i think, thats right in total for the quarter but if you go back into the december quarter the only thing that gained was online sales and mostly mobile apps are driving that. If you look at that carrying over into the First Quarter you see a lot of adjustments from the over another of inventory we had in the holiday period, a lot of sales, a lot of clearance. But youre going to see a lot more mobile apps in the online space taking over Going Forward. But this is going to be a very weak retail quarter. Yeah. Already starting to see it. You also have higher heating bills hurting the consumer as well, steve. Good to see you. Thanks for being with us on our frozenomics story. The wait is over, the entire Second Season of house of cards is now available to watch on netflix. Now, the shows first season gave a big boost to netflix stock, so how much will season two help the Company Moving forward . Well tell you next. But first, Rick Santelli, what are you working on for the next Santelli Exchange . Im looking at the nikkei, simon. You know, the nikkei was down 1 1 2 last night. If dwru loyou look at nikkei ag tenyear note yields, high correlation. Normally stocks but stocks are up. Were going to try to figure out why with our guest matt maley all coming up in ten minutes. Take a closer look at your fidelity green line and youll see just how much it has to offer, especially if youre thinking of moving an old 401 k to a fidelity ira. It gives you a wide range of investment options. And the free help you need to make sure your investments fit your goals and what youre really investing for. Tap into the full power of your fidelity green line. Call today and well make it easy to move that old 401 k to a fidelity rollover ira. Coach calls her a team player. Shes kind of special. She makes the whole team better. Hes the kind of player that puts the puck, horsehide, bullet. Right where it needs to be. Coach calls it logistics. Hes a great passer. Dependable. A winning team has to have one. Somebody you can count on. Somebody like my dad. This is my dad. Somebody like my mom. My grandfather. Im very pround of him. Her. Them. On beautyrest and posturepedic. Financing and save up to 500 get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. But only through president s day at sleep train. Rejoice, house of cards fans, its now available on netflix. Julia boorstin is live in los angeles to tell us what it means to tell us for netflix bottom line. Look, if the Second Season of house of cards gives ne netflix a fraction of the boost the first series did, its a huge win. Last years debut, original premium content which helped lure 6. 3 million new u. S. Streaming subscribers and sent netflix stock up over 130 over the past 12 months. Reviews of this season have been even more positive than the first one and buzz is huge. House of cards is trending on twitter nationwide. Theres been backlash from fans disappointed netflix wouldnt release the series early for those who are house bound due to the storm. Even president obama tweeted, tomorrow, house of cards no, spoilers, please. Netflix wont reveal viewer numbers just saying theres been an increase in people catching up on season one. Last fall netflix announced it would double investment in original content. The originals would still represent 10 the companys overall content expenses. Theres no question that netflix originals including house of cards are spurring serious investments from the competition. Amazon announced the second group of prime time pilots for adults were streamed twice as many times as last years group. Hulu has been ramping up and Microsofts Xbox live is expected to launch in the next few months. Well have to see if these und hs of millions of dollars that amazon, microsoft, and hulu are all spend kg help replicate netflix success. Its very clear, simon, netflix has set a truly new standard for streaming video. Yeah, i guess the question really, julia, if the stock rose 130 on the basis its more like hbo, whether now the risks are to the upside or downside given you already meant to be like hbo, now prove that you are, being the new the new higher bar, if you like. Well, it all depends on how many new viewers they can lure in. How many new subscribers they can get. Simon, a big piece of netflix is the international expansion. Thats certainly a big part of this is netflix has announced big plans to expand overseas next year. Julia, thank you very much. Lets bring in jon fortt. How would you address that issue as to where the bar now stands . I think the sky is potentially the limit but we dont know the extent to which netflix and others are disrupting traditional Media Distribution and content. We know whats happening, just not the extent. You think about it, this was not supposed to happen. The whole idea it seemed from facebook, twist twitter, even the stuff that microsoft was doing, that, you know, traditional content where you had actual human beings acting and writing stories, that was so old school. It was all going to be video games. You know, algorithms entertaining us. Increasingly we see these Companies Investing in whats really kind of traditional story telling. Thats pretty phenomenal if you step back and think about it. Ill ask you what i asked John Steinberg earlier. Are you taking mrs. Fortt out to dinner tonight or watch netflix . Its not the cheap skate issue. We have a 3yearold and 5yearold and theres so much snow outside. We like to order in, have a romantic dinner at home. Nice. There you go. Dimmer switch. Youre not a netflix . No. Shocked. Shares of check our shares of trulia. Trulia is having a bad day today on its first Fourth Quarter earnings miss. So what went wrong at trulia . We will talk to the ceo in a few minutes on cnbc. 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Special guest, matt, welcome, matt, thanks for taking the time to join us today. Thank you. Always great to be here. You know, i think everybody on this Trading Floor is looking at some chart that seems to be tethered to the japanese markets. In particular, the nikkei. Lets show you a chart of the nikkei on top of the Dow Jones Industrial average starting in early november. If you know the direction of the nikkei pretty much youre going to flow the direction of the dow, youre going to know the direction of Interest Rates, youre going to know the direction of going along with the dollar yen trade. Why are they diverging today . Whats going on . Well, its so true. Weve been following the nikkei really since the fall of november sorry, of 2012. But as you said, since november of this year its been almost tick for tick. The thing is i believe is because were starting to get liquidity as being less plentiful. You dont need liquidity to come to a complete end because liquidity is so highly leveraged, that when you get this onlining of leverage some of these risk assets start to go down. Thats what i think were seeing right now. It also means whenever you unwind leverage at any given time smart moves in both directions. The problem is that the net mood tends to be down. Were already seeing it in the nikkei and i think we will eventually follow in our market as well. I mean, that 14,000 level is very, very important support of the nikkei. We break below that and give it a key lower low, thats going to wake up a lot of people around the globe. All right. Theres another area i finds fascinating. Being on the cme floor theres a good chunk of it thats nonfinancial. Whether its livestock or grains. Commodities have not had a good time. Do you think that may be ending . It could be. Its funny. I turned quite negative on commodities in the spring of 2011 2011. If you look at the old crb, equal weight index, its made a new high or high after bouncing along the bottom for a while. It may be providing a forming a nice base. However, we want to see new crb and industrial level index, if that can make a new high, that will kind of confirm it. The one thing i think though and i heard you say earlier talking about rates earlier today, i dont know that thats necessarily negative for the bond market because i think it will be negative for stock markets. Were out of time but i want to summarize why i totally agree with you. Normally if inflation or Commodity Prices pick up it doesnt usually push rates higher. I think thats where youre going. The fed is looking at Commodity Prices as the issue that could push price pressures up a little bit. In the end, it is all about stocks. Stocks go down, rates go down, stocks go up big, my opinionsh rates go up big. Its that simple. Have a great threeday weekend, matt. Back to sarah. All right. Thank you, Rick Santelli, for bringing us that. Check out shares of trulia. They are falling hard. More than 17 right now after earnings came in short of estimates if ceo will be here to explain in just a moment. [ park sounds, sound of spray paint ] we asked people a question, how much money do you think youll need when you retire . 500,000. Maybe halfmillion. Say a million dollars. [ dan ] then we gave each person a ribbon to show how many years that amount might last. I was trying to like pull it a little further. You know, i was trying to stretch it a little bit more. [ woman ] got me to 70 years old. Im going to have to rethink this thing. [ man ] i looked around at everybody else and i was like, are you kidding me . [ dan ] its just human nature to focus on the here and now. So its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. European markets are closing now. The european markets are shut off for the weekend. The thing i would point out a major interest is the gains that we have got in italy. If big issue is the new administration. Well come back to italy in a moment. The headlines today in terms of Price Movement are being grabbed by the mineral and mining stocks. Have you seen silver is up over 4 . Some of these have romped home. Year to date in europe, its those stocks that behave most like bonds that have done well. Look at how the utilities have gained year to date. Now up 4 as of course the Broader Market manages to bounce back. In the meantime, maybe the ecb is right. Maybe the situation at europe on growth isnt as bad as we thought. The data out today surprised to the up size. This is the annualized lats raits. This is not the quarter on quarter rates they report in europe. This is jpmorgan annualized rates. You will see its not doing too bad. Particularly in germany where were pulling away the breadth of the growth is broadening. Italy had growth for the first time in two years. Spain is also higher. Let me take you now to italy where all eyes are on matteo renzi known as demolition man orchestrated a party cue to become the new Prime Minister of italy. Rbs says maybe he be able to free up labor markets. Jpmorgan says, were not so sure because the institutional im pediments of the last two p. M. S had will still be in place. Meantime, the commentary i like the most overnight is from jim reed at Deutsche Bank who said how appropriate it was that it occurred within one of the parties in italy just as the matteo house of cards season two takes to the air. Internal power struggles within a party. Lets bring in Mary Thompson with a look at whats moving in u. S. Markets here on the floor of the new york stock exchange. We have a mixed marked following mixed data. Consumer sentiment numbers early reads unchanged from last month and better than expected. The big number was Industrial Production. Weaker than expected because like retail sales yesterday it was blamed on the weather. Investors are taking it in stride. Seeing gains in the dow. The nasdaq is livelier today as the stocks are set for their second straight week for gains. The sectors following today despite the decline in oil. Were seeing strength in energy. Thats a leader. Also consumer staples. Procter gamble a staple there as it recovered with a couple of days decline. After that disappointing forecast the company is looking at a number of different candidates to succeed current ceo laughly. Looking at the energy stocks. Murphy oil getting a bid because the company is exploring the possible sale of assets in asia that would fetch up to 3 billion. Occidental petroleum, the stock is up over 2 today. There is a deal hangover in the telecom space. Comcast is putting in a bid for time warner, it could acquire that company. These are some of the companies that would compete with the combined firm and their stocks are lower contributing to the weakness youre seeing in Telecom Stocks today. I do want to point out cliff resources very Strong Quarter Company Stock is up on the news. The dow, up 65. Back to you. All right, thanks. One stock going in the other direction today is trulia. Taking a beating this morning after reporting lower than expected quarterly profits due to a jump in marketing expenses. The stock is down 17. 8 . Talking to us first here on cnbc pete flint, the cofounder and ceo of trulia. So, pete, youve got to explain these numbers to us. Investors are colorly not happy with whats happen to think expense side. Yeah, good morning. We had a record quarter in q4. Revenue record doubled more than year over year to almost 50 million. We achieved 60,000 subscribers. Record for us. The fastest growth in subscriber numbers. We think the we reaction on the stock this morning is down to a ha Strategic Marketing campaign. We scaled the audience and bought a really robust business model. Now we believe the opportunities to expand that out, to expand the great what do we have to a very significant audience. Investors are not buying it. The stock is down almost 18 right now. What does your expense equation look like for the rest of the year . Are you going toeexpend so heav on the market . We announced a 45 million Strategic Marketing campaign and we think this is the right longterm opportunity for the business. We see a tremendous opportunity, 27 billion is spent in real estate advertising in the u. S. We want to take a significant portion. The industry is still in its infancy. And we built this great product and now a chance to open the awareness of that and drive more consumer engagement. Direct more revenue to our consumers. Pete, sorry, didnt mean to cut you off. We had spencer on just a couple days of go of zillow. Yesterday. Just yesterday. It seems they are beating you guys. Theyre at 54. 4 million. 35. 3. I believe theyre growing faster. And theyre also planning to spend a lot on marketing profitabilitiwise they seem to have more to spend than you do. How do you beat them . Is it just smarter marketing when theyve got a lead momentum, and deeper pockets . Yes, the way we look at this 45 million is we look at the 5 million homes sold a year. Its from the analysis that weve done we see an opportunity to touch the majority of the people theyre going to look to purchase a home next year with that 45 million. So we felt good about that. In fact, we think that diminishing returns, spending above that number. So were very confident in that and very confident in our product. Were a Silicon Valley Company Engineering in dna. The proof is in the pudding. We want consumers to engage with our products. We want Real Estate Professionals to use our services. We feel good about the foundation we built. Now the opportunities, build this out, scale in for the long term and thats the opportunity in front of us. Mr. Flint, there is some excitement. That said about the degree to which zillow is going to be able to drop the pay wall against streeteasy. Com, certainly for new york which means people will be able to go in and get some great content. I think you would agree, how much the condos have sold around them and the discount and so on and so forth. That was a 50 million acquisition. Dropping the pay wall because they believe that the content will drive people towards their advertisers. What is your structural strategic answer to that . Yes, weve had a very significant presence in manhattan for quite some time. In fact, mobile presence is being tripling year over year. Audience with mobile has grown three fold, has been free for consumers s s since the inceptin new york. We tailored it to the local market. Significant engagement. Significant content. Are you on the hunt for an acquisition like that to increase your scale and Subscriber Base . We made a very significant acquisition last year, very Strategic Acquisition purchasing market leader, leading provider of Software Tools to the real estate industry. Phenomenal business and very unique on a massive scale and complementary product. Of course, we are keeping an eye open for other acquisitions. We have a strong balance sheet. We see this is industry inconsolidation and only a couple of players will survive the scale over the next several years. We are looking at strategic m a in this year and the future years. Thank you for joining us and explaining some of those numbers. Pete flint is the ceo of trulia. My pleasure. Up next, the latest from the Winter Olympics in sochi including an update on the mens hockey team. Keep it here. Squawk on the street will be right back. 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And wien is here to reveal the ten market surprises he expects this year and you will be surprised to hear with where he thinks the s p will end up. All that ahead. The u. S. Mens hockey team is gunning for gold for sochi and already off to a great start. Carl quintanilla is live from the winter games. Theres nothing im told that the russians care more about, carl, than hockey and tomorrows huge echos of the cold war tomorrow, surely. No doubt, simon, this is if marquee event of the entire olympics. U. S. Men, u. S. Versus russia tomorrow. Of course, all of those memories about lake placid in 1980 and the miracle on ice. We managed to catch up with some of the u. S. Men today and asked about the legend of those olympics and those loud russian crowds. Weve all played in loud buildings before. Im sure its going to be one of loudest. But its exciting. We have the pressure back home but for us, play a real hockey game and hopefully it will go well. Another magical . Whats that . Another manage call like the 80 snz. Another miracle . I dont know. Well see what happens. We will see what happens. Theres a lot of difference, guys, between 1980 and today. Most of the players playing tomorrow werent even born in 1980. Back then the average age on the team was 21. Now of course youve got older veterans from the nhl. Back then russia was by far the favorite. They won the gold for almost two decades. Today not so much. Its more canada thats the favorite. Of course back then they really were arch enemies on the ice. Now a lot of them in some cases are actually coworkers as some of the russians and americans compete together in the nhl. Who is going to win . That is a tough call. Mikes piece in the journal this morning said who is favored, russia you can argue struggled a little bit more than the u. S. Men. As for tonight, guys, alpine skiing, Cross Country skiing, and, sarah, figure skating. The mens free program. Jeremy abbott, his final olympic skate ever. I know what youre going to be doing tonight. I do enjoy watching the figure skating. Did you see the japanese skater in the Short Program yesterday . That was incredible. Yes, oh, my gosh. That world record. And reaction shot after, incredible. In fairness, the one thing we havent seen is sarah eisen doing the figure skating on the ice rink which i believe we were br promised on air. I would rather take you, simon, and do pairs. We could do something together. Right. Just kidding. I will do that. I want to see that image. Maybe you should take carl. Maybe carl and sarah. Carl, take me to the olympics next year. Hes much taller than you are. Youre coming home this weekend. Its been a great run. I know Brian Sullivan is going to be there next week. Looking forward to having you back. What was the highlight for you . Ohsh, go. We did see a little bit of hockey. I think in general how the russians pulled this one off. Go back seven days and there were a lot of doubts and security and obviously infrastructure. So far so good. Well see what happens in week number two. And just to say way too close to the wind, did you see Brian Roberts was departing and might do a deal with Time Warner Cable or was it all hushhush, carl . Its funny. Roberts was hes our boss. He was in the newsroom when i first got here. And now that i know what he was doing when he wasnt making the rounds, absolutely incredible. Yeah. Even lez moonvez was surprised. Well see you soon, carl. Have a safe journey back. Okay, guys. Thank you. Welldone. See you, carl, on tuesday. Were off on monday for the holiday. Coming up, are you still looking for something to do this valentines day . I know simon is. Well, how about tasting in San Francisco or a couples massage in new york city. Those are just a few deals available from how about we, the dating site that lets you pick the dates you want to go on. 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Get 36 months interestfree financing, and save up to 500 on beautyrest and posturepedic. Get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. Plus, free delivery, setup, and removal of your old set. Keep more president s in your wallet. This special financing offer ends president s day at sleep train. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep in the world of digital dating scrolling through profiles is par for the course. How does it work and how do they keep daters coming back even after it says here theyre in a relationship. The plot thickens. Aaron is cofounder and ceo of how about we. Good morning. Hi. Why are you different . Why is the business different . How about we helps people fall in love and stay in love. Our focus is on helping people go on wonderful dates. So whether its your first date or your 50th anniversary date, our job is to make amazing dates happen. What do i do . Do i construct a date, for of all, and people basically bid for it . If youre single, you construct a date. You post a date idea. Something you think would make for a great idea. People who like it can message you. You connect and meet off line. This means more interesting people or richer people can cure rate much better indicates and, therefore, arguably i can take them to lunch at the new york stock exchange, go for dinner, maybe give them a gift of 1,000 at the end of the night. I could get quite a lot of offers nor that that i wouldnt normally with a photo graph. You might. We say the date is like the ideal Digital First impression. You find what youre looking for. Look through a stream of dates and see if one catches your eye. How do you keep people in love . That sounds like a psychiatrist job. We originally created how about we for dating but then after a while we had all of these people who had fallen in love on how about we and were saying to us, what do we do now . We want a product that helps us continue to go on awesome dates. We created how about we for couples. The basic idea is that were like your digital conciergge for your dateline. Its like groupons model but seems to benefit both sides. Heres the one bone i have to pick with you. Youve gone from people dating to existing couples. Now you need couples with kids. Throw a baby sitting in there. You know what im saying . I do. How about we get a baby sitter . So were basically trying to solve the problem of the netflix chinese routine, right . We want you as a couple going on amazing dates. Couples who go on great dates every single week say there are 350 more likely to say that theyre very happy in their relationship. Thats not a dating site. Thats basically the same as Living Social or groupon or can you enter minkle with other peoples partners . You cant. Then its exactly the same as groupon or Living Social. Thats just a bolt on business, surely. People dont want deals for dates. Right . They might want deals for a teeth whitening site. When you go on a date you want to do something amazing. We have editorial teams in cities across america and our focus is finding the very best romantic experiences in your city. And then helping you find those and go on those dates. We had some example of the most popular valentines day dates. I think this comes from your site. So walk us through some of the ones that youve seen here. Here are the top five. Couples massage. Not surprising that its in the top five. Which one surprises you . In every single city we tried to find the very best dates. For instance, in chicago we have a fragrance making date where you can construct a fragrance. You would never find that on a deal site. We have a date in new york, couples massage followed by drinks at meridian. We have a skye view observatory date. In l. A. , a hipster retromovie date where you can do a drivein movie experience. These are handcrafted amazing dates for couples. Thats what i like about it is that you figured out a way to add value and not just discount because its always weird to rip out a groupon, especially on the first date. We do all the bookings and cess reservation from you. We dont take any cut from the vendor. All the money you spend goes directly to the vendor. Everything is constructed to get the highest possible quality for couples. A lot of women like coupons. Leave it there. Todays valentines day. Its particularly this is for us the coolest of all the holidays in the whole world, the day we celebrate love. Nice to meet you. Thank you very much. For groceries, not dates, simon. Whatever you say. Certainly an interesting model. Coming up, certainly feels like the winter that never ends. 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According to luxury link, bookings to jamaica have more than tripled this month compared to a year ago. And a lot of people want to get lost in the Bermuda Triangle of sun, fun, and more fun. Trips up are more than 177 . Average length is 1600 catering to people with more disposable income. That average price is up from a year ago. Its not just the 1 wanting to escape the cold. Travelzoo say searches for cabo is up 144 . People may be booking now when theyre freezing but when will they actually take the trip . This year were seeing an acceleration where people are booking but actually going the vacation sooner. Where as traditional pattern would be three to six months out from booking were see that cycle condense. So i think people are really fed up with the cold weather and looking for an escape route. Oh, where am i . Oh, yeah. Luxury link ceo scott mur row says his staff is working hard to help people traveling right now getting through the problems. Hate me if you want. National geographic says the drought out here could last 200 years. I will take a dry heat over a wet cold. Back to you. You also the woman who has a full glass of wine at 9 00 a. M. Local time, jane, which is always refreshing to see. Just trying to rub it . Its 9 00 p. M. In sochi. Yes. Lovely to see you. Thank you very much. You really cheered us all up. No end here on the northeast coast. By the way, tuesday is a big day on cnbc. The Sports Illustrated swimsuit cover models will be on the show. On the show at the new york stock exchange. Live at the new york stock exchange. Yes. Carl is coming back for it right here at post 9. On post 9. Swimsuit models and all. You dont want to miss that. Turning them into barbies this year. Make sure you go to bed early on muonday night. Thats it on squawk on the street as we hit noontime on the east coast. Lets send it over to the halftime report. You guys think you promoted that enough tuesday . Dont you think it deserves th that . I will get there, my friend. Even im excited about the swimsuit models. Looking forward to tuesday as well. Thanks so much. Welcome to the halftime show. Here are the hottest trades of the day. Social climbers. Which is the better stock for your money . Linkedin or facebook . Playmakers, we hit the leaderboard in the battle for trader of the year. Who is on top whoond is making a new trade . Whale watching is the worlds binnest investors reveal their new holdings which stocks should you be buying o