ng ] [ female announcer ] the new community. see it. live it. share it. on the human network. cisco. all right. we're back. time for six in 60. erin gets three. i get three. we're all set up, i'll start. schnitser steel, upgraded to buy from hold. the firm also upping its price target on the oregon-based steelmaker to 62 from 47. agrium, upgraded to buy from hold from citi. 82 bucks. chipotle mexican grill, erin's favorite, upgraded to overweight from under weight and firm also increasing its price target to 111 to 76. wow! >> coca-cola, j.p. morgan downgrading the soda maker to neutral from buy. price target on coke is 62 which is way above where it is right now. firm also boosting its price target on hasbro to 39 from 29. on elvis' birthday, i didn't owner. thor of his collection ckx inc. by the way, what a week for scnitzer steel. that stock is up $10 more this week. >> oui got to go. i'll see you monday. happy birthday, elvis. i know you're out there. welcome to "the call," everybody. i'm mandy drury standing in for trish regan. we are 09 minutes into the trading session. we'll have the market reaction and we'll ask also whether the economy needs a second stimulus, larry. >> thank you, mandy. i'm larry kudlow. netflix signing an agreement with warner brothers to delay the release of their movies on dvd. we'll ask the netflix ceo how that could possibly be good for his business, melissa. how can it be good? >> i don't know, larry. the cold snap continues in florida sending orange juice futures to a fresh two-year high. we'll have a live report and plus prices will continue to go higher and how you can make money. this is "the call" on cnbc. >> all right. it's all about jobs or lack of jobs on wall street this morning. 85,000 non-farm payroll positions were lost in december. some economists were expecting a gain. we got all excited about that yesterday and the gain didn't come though, although the november revision was up by 4,000. right now take a look at how the s&p is trading so far on the morning. good inventory numbers. that's where we saw the rebound and we were paring our losses there and that's the bump you will see on the dip on the open on the payroll numbers and we're back to near session highs and the dow right now not too bad down 27 points and a quarter of a percent 10,579 and the nasdaq at 2304, in positive territory. larry is cheering it on, 0.2%. let's check in with mandy drury at the new york stock exchange. happy friday, mandy. >> happy friday to you as well, melissa. you were saying there doesn't seem to be too many moves in either direction right you in. we seem to be getting used to this, unfortunately, a lack of conviction with the positive sentiment or negative sentiment direction and let's get more on what's happening with the market. mary thompson joins thus week. >> the first close out the first trading week of the year. as you pointed out, we do have a mixed market with the dow and the s&p under pressure in the wake of that jobs report. tech has recovered and that's helped to give a bit of a lift to the nasdaq. interesting to note the transportation sector is also very strong today after that positive earnings forecast from ups. we want to note that telecoms continue to lag and consumers are under pressure as well. take a look at coca-cola because it sits under pressure and cut to neutral with j.p. morgan. the stock is trading at 18% premium and they don't see a lot of upside and they have a negative call on the consumer staples area and one of the reasons that group is down today because they'll have a hard time in the developed marks and they don't have a lot of pricing advantages and they won't raise prices in the year ahead. >> household names like colgate and palmolive are moving down today. i want to ask you because earnings season will be kick off next week. what are we expecting? >> it's interesting because the jobs number is disa popting the markets and the traders are looking ahead to the earnings season and alcoa kicking it off on monday after the closing bell and the dow component expected to report a profit of 6 cents a share, actually reversing a year-ago loss and actually, s&p earnings expected to be up 203% and people are, like, what? are you kidding? i had to look twice when i saw that number and you had very weak year over year comparisons. two things to note, it would be the first time you've seen a year over year increase in s&p earnings growth and second quarter 2007 revenue growth which is shoulding a lot of people are watching because they want to see the top line growth grow and it's expected to increase by 7% in the fourth quarter. the first time we've seen year-over-year revenue growth since the first quarter in 2008. >> thank you very much for the wrap-up there, mary tochl sob. let's get to steve lies mid-cap because we did get the mixed economic data with the jobs and the wholesale inventory surge, i believe, steve, by the most in five years. what does that tell us about the economic progress? >> it tells us that the fourth quarter gdp on that inventory number will be better, but the question whether or not there are sales out there, the question is whether or not there are jobs and this was a disappointing jobs report that sparked debate among the i told you so optimists. there was sufficient evidence about the robust debate about the outlook and whether, waiting for the ghoroans, whether the government will have to do. pause for groans it says in the script there. they're looking for flat and non-farm payrolls and november revised up. that's the first job growth we've had since december '07 up to 4,000. unemployment rate unchanged at 10%. average hourly earnings 0.2%. here's the tale of the tape, month by month by month by month. you can see the improvement leading to gain and a backsliding there as one economists said three steps forward with this economy and two steps backward. construction down 53,000 and some said weather was involved in that. manufacturing, services failed to get on the other side of the zero line and retail trade, obviously a lot of not hiring for the christmas season and there were some places where there were job gains. some surprising, some not, mostly not. that's been on the upside for several months in a row. education and sers also. and professional business and services, wall street, up 9 00, financial and insurance with gains when it comes to financial services. people leaving the workforce is the one area of concern here. 661,000, have they remained in the workforce the up employment rate would have ticked up. the report suggested overall economic growth in the 3.5 to 4% area in the mid fourth quarter. businesses are just want hiring and perhaps, larry, you have answers as to why that's the case. >> well, steve, we may have some answers or we may not. please stay with us. our question is does the economy need a second stimulus? second, third, fourth? let's bring in robert reich former labor secretary and cnbc contributor and richard dekaiser, economist at woodley park research. good morning, gentlemen. bob reich, i begin with you. there's a lot in the economy, this report this morning was want one of them. what is your overall take right now? >> well, larry, you shouldn't pay too much attention and too much focus one particular monthly labor report, but two together, although november was revised upward, we're seeing an average of 40,000 jobs lost and no change in the workweek and that means no real incentive to hire. there will be huge pressure politically on democrats to do something going into the gravitational pull of november, next november, there is going to be even more push for a new jobs tax credit and more push for additional spending. they may not call it a second stimulus, but there will be more spending right now. the tenor of debate in washington is going to be less about getting the deficit down immediately although the president will talk a lot in the state of the union about getting the deficit down over the long term, but in the short term people are going to be saying we need to spend it in order to get jobs back. >> know larry will disagree with me on this, but what made me nervous is the ride in the unemployment rate up to 17.3%. what do you think is the best remedy for anything or will the economy heal itself. if you asked people what you expect the fourth quarter would have looked like and i don't think anyone would guess that we have growth. >> you don't look at a single monthly number, but if you look at everything else, initial claims and layoff announcements and the trend, they show an improving trend. >> terms of up five straight months. >> 150,000 just in the fourth quarter. >> let mae just add, guys, quickly. >> joe lavorgna told me that's the best trend in temps for five months going back to the mid-1970s. steve, i know you want to say something about this. >> yeah. >> the forward-looking indicators on falling unemployment claims and temps, plus you look at the isms and plus you look at the financials. >> that's a clear trend. >> they're all pointing to a much stronger position. >> larry, can i -- >> we need to have some context in this number. >> yes, but before you become too rosy lens about this -- >> i'm just saying it's a mixed bag. >> i want to emphasize that. >> it is a mixed back and that's precisely the point. people expecting momentum going into this year. what you can say bottom line is this is a very, very slow recovery if any recovery at all on main street and the fed is probably not going to do much, certainly want going to ease and tighten until the second half of the year. >> what was that advisory about yesterday, steve liesman? just on robert reich's point. they sent out an advisory to the member banks about getting red for higher interest rates. now, is that totally off the board after today's number? what's the fed doing here? not since 1996 have they done something like this. i find it curious and i don't understand what they were doing. i don't know if you remember, but some time back in '06 and '05 don cohen gave a rr unremarked speech in which he said perhaps banks' concentration and commercial real estate loerns getting too high. after he said that it just dropped out. it was like greenspan's irrational exuberance. i wonder if it was using the bully pulpit by the fed to hold what they guide in their books. >> i think you're absolutely right. the regional feds and the banks have a lot more authority and there's a lot more desented ralization going right now particularly with all of the qualitative easing going on. i know at the san francisco fed. >> was that a freudian slip. did you meet quantitative easing? >> it's a judgment call. there are signals from the fed to the regions. >> richard, does this change your overall opinion of what's going on in the economy? i mean, it's a significant change from what some of the estimates were yesterday especially in the hours leading up to the end of the day, but does this change your overall opinion? >> no, it doesn't, and i'll return to my previous point in that it seems inconsist wept so many other indicators that point to labor market improvement and i would add along the side of stimulus and the payroll report, something not a lot of people are talking about and the sense us hire coming starts this month, feeds through the first half of this year will total almost 1 million workers at relatively high wages. >> i don't know, richard. i'm more interested in the following, which is the huge productivity numbers and the relatively strong profit numbers that are coming out. if i had to pick one thing that would lead me to think there's job growth or two things, it's those two things. these numbers are a powerful signal that they'll be hiring. >> i can mention one other thing? >> you mentioned, look, let's go back to economic policy and politics. your student, steve moore has an op ed piece in today's" wall street journal, your good friend and student steve moore. >> he's coming along slowly. >> the professor has failed. >> there are all these tax uncertainty issues including a 50% depreciation write-off for capital expenditures for small business which has run out. in fact we see the health care bill with respect to small business could have large-scale penalties with respect to the universal mandates. the worst part of this report today came from the household survey which covers small businesses and i would submit to you why don't we give small businesses some really substantial, permanent tax relief, maybe zero cash expensing. president obama talked about a zero capital gains rate for investors and small businesses. i kind of like that. we could take the tax rates down, and in other words if the small business thing -- >> kind of a leading question. >> if it's the problem, bob, why don't you want to give us some help on small businesses? >> melissa, the leading questions are larry's forty, but let me say this there will be emphasis in january and february in congress precisely on your point. small businesses are going to be getting some help. it may be in tax help and it may be direct lending help and maybe some combination. >> but did anybody on. >> we've got to go -- >> it's want only political. >>. >> no, no, we've got to go. >> okay. all right. >> so now -- >> that's it. >> it's not only political, it is also economic. >> bob reich, if you're willing to go down the road with me arm in arm and shoulder to should or small business tax cuts on the supply side then let's go corporate. let's lower the corporate tax rate. >> okay -- >> this is a slippery slope. this is a slippery slope. you give larry a little bit and kudlow takes too much. >> that's right. i notice that. >> these are demand side tax cuts and small businesses are the engine of -- >> we're done. >> small businesses -- >> i want to see kudlow and reich. >> okay. that's it. >> mr. secretary, thanks so much for joining us. richard dekaiser, mr. secretary, steve liesman -- >> time out, folks. >> up next, lower volatility in stocks, but clearly more volatility in the u.s. labor market. a bull and a bear weigh in on how this latest jobs data could impact your investments. >> and a fresh squeeze on orange juice prices coming to a supermarket near you. cold weather sending prices through three-year highs. a full weather wrap and how to play the o.j. trade. >> i tried. #ñ#ñ#ñ#ññññññññ stocks are mixed after a weaker than expected jobs report this morning and take a look at the plunging polvillity in today's market. the vix is trading well below the key level and hitting a 19-month low currently sitting at 18.5 and as you can see it's down by nearly 3% in today's session alone. what did it all mean for stocks and your investments going forward? here to discuss, hank smith chief investment officer and mike rabino, president of rabino financial. stocks seem to be repairing some of the early morning losses. mike, doifrpg that possibly the market is shrugging off the payrolls number? >> well, i think the payroll numbers is important, but the real 800-pound gorilla that's driving the economy is the leveraging of the debt and housing markets that continues. defaults continue to rise in an improving economy, that most of the defaults that are out there haven't gone to foreclosure and we expect another round of defaults in the middle of this year in the summer, late summer. >> are you suggesting that we could see a double dip in the markets as well as the economy then? >> oh, certainly. ben bernanke and paul drugman, they studied the great depression from their armchairs and they think that the reason it wasn't avert side a more monetary stimulus. you can't stop deleveraging and if you stop deleveraging, you make it worse. it's like a heroin addict who tried to avoid heroin because of detox. the detox is good for you. >> hank smith, the deleveraging is well on its way and the upward sloping yield curve is taking care of that. i'm still reeling from this axis of paul drugman and ben bernanke. let's put that aside for a minute. what's your take on the numbers? the stock market right now is telling me, at least, that the market is seeing through the numbers. you get these numbers, but the preponderance of evidence is for better profits and better economic growth. do you buy that scenario? is that an interpretation of this morning's trading. >> we do. you can't put your hat on one number and the revisions have consistently been up for the past few months and we expect the revisions of month out for december will be up as well. look, we for a bull market now. it is being felt by a global synchronized economy that is accelerating and it is being fed by extraordinary monetary stimulus, fiscal stimulus, larry and not our kind of fiscal stimulus, but nonetheless. >> we lost over 4 million jobs last year and the real unemployment rate is over 17%. so you're saying that the fed will start raising rates by early summer. don't you think it sounds a little premature? >> no. the fed can raise rates and it can raise it quarter-point cut hikes and throw in a half-point hike and you will still have an extraordinarily accommodative monetary policy from the fed. so the fed has a long ways to go before you even get to neutral. >> mike, just on that fed point. i think they should move sooner and a lot of people disagree with me and i don't think they should target the unemployment rate and i think they should look at gold and the dollar, but i want to get your say on this because a lot of people are going to conclude that the fed is not going to move anything on rates or their balance sheet for a very long time after today's number. are you concluding that or do you have a different strategy? well, our strategy is to be awfully cautious at this point. the market could continue to eke its way higher, but there are so many issues in regard to the deleveraging. the deleveraging dwarfing the amount of money that they could and would possibly spend. we think the government should just let the process run its course and we'll be better as a result of it. the government can't fix everything. we'll have to leave it there, gentlemen, thank you very much. quick programming note, monday on "the call" a special guest is joining us for the hour. that would be hedge fund giant leon cooperman. ceo of omega advisers and he'll ob set with me and melissa to talk about his industry and the markets and the economy and regulation and the rest of the world. leon cooper mid-cap, an old friend. forget about getting move newly released dvds, they're agreeing to delay it for 28 days and similar agreements to follow. we'll ask the ceo of netflix how that can possibly be good for business. >> first it is phrasing in nor da and that does want bode well for the citrus crop. we'll have a live report from the sunshine state and discussions on how prices can go. you're watching cnbc, first in business worldwide. don't change the channel. i hate hidden fees. why should i have to pay for something that i shouldn't have to pay for? td ameritrade's pricing is clear and it's straightforward... it's spelled out upfront. no hidden fees... no bait and switch. no gotchas. and there's one flat rate for online equity trades... for big accounts... or small ones. that's the way it ought to be. time for fresh thinking. time for td ameritrade. what are you doing...? calling chase sapphire, seeing if we have enough points to stay longer. now? you don't have enough time... and you have to push all those buttons... no buttons, someone answers every time. yeah, right... bet you a massage... yeah, ok. hi, julie... i have a question about my points. hi, what button do i press for a massage? hello? new chase sapphire... you call. we answer. no waiting. just press right here... go to chase.com/sapphire. chase what matters. just got three of sprint's best 3g phones. frannie has the palm pre, which runs multiple apps at the same time. frannie! oh! [ male announcer ] james, the jet-setter, can call from just about anywhere in the world with the international tour. and matt has the customizable htc hero with google -- giving him access to thousands of apps. [ tires screech ] bringing you the first and only wireless 4g network, as well as the most impressive lineup of phones. sprint. the now network. deaf, hard-of-hearing and people with speech disabilities access www.sprintrelay.com. advisor:... ms. davis, this is onstar. i've received a signal you've been in a crash... i'm contacting emergency services... 911 dispatch:...onstar reporting a front end crash... on wakefield road... chevy malibu... fire/ems:...air bags deployed... ...injuries reported... advisor: ma'am, help is on the way...ok. and i'll stay on the line with you until they get there. automatic crash response. built into 15 chevy models. hi, folks. welcome back to "the call." i'm matt nesto checking out stocks making moves. check out chipotle mexican grill. you like burr rid owes? you'll like this stock. they're on a four-fold increase. morgan stanley takes its overweight from underweight. they think it's headed to $111 a share. that's about 30% higher from where we are today. it's having its best day in ten months. a billion four in the market cap and it's also a mid-cap in the s&p 500. chipotle mexican grill, cmg having a huge day here today on an upgrade from morgan. interestingly, melissa, it is the second consumer service stock that's having a contrarian move that traders are keeping an eye on today. carnival cruise lines that's strong in the face of an otherwise weak industry. >> all right, ole! thanks, matt nesto. a cold nap is continuing in the sunshine state. joining us live from winter garden, appropriately named today with the latest on the florida weather is the weather channel's julie martin. hi, julie. >> hi there, melissa. it's certainly been a cold week and it will be an even colder weekend and that's horrible news for florida citrus farmers. you know, this is a $9 billion industry here in florida. 40% of the world's orange juice comes from this region where i am this morning and as you can imagine, a lot of frayed nerves here and a lot of farmers not sleeping and doing everything they can to protect their livelihood. they were out yesterday, harvesting all the food they could and the processing plant, i am told this morning is just slammed and they're trying to get as much george juice made before the real freeze sets in over the weekend. we're talking temperatures that will be under 30 degrees starting tomorrow and all it takes is 28 degrees for four hours or more and this fruit freezes. once it does, there's want much you can do. >> it is not just the citrus and also the strawberries, 400,0 400,000 -- $400 million worth of fruit on the ground of strawberry crop as well. as far as consumes are concerned prices certainly can be going up at the grocery store if they haven't already, melissa. >> we were looking at video of the icicles on the oranges and i know they spray it with the water and let it freeze. that's the heat ask condensation and they're hoping to warm up the fruit. are they doing that weil you are there? >> today they're taking a break and they were hoping to come back out in harvest, but you can bet tonight they'll be doing that again and they were doing that in planet city with the strawberry it is as well. it's an ongoing process and they'll be doing it over the weekend for sure. >> julie martin, thanks so much. the cold snap causing orange juice futures to hit a fresh two-year high up 20% this week. take a look at the chart rate here and we'll show you the orange futures are trading so far today. trading higher on the day, 14.70 and it's up 6%. how much high kerr prices go? is there money to be made in orange juice in let's bring in john willinger corano at wood crest lane capital management. you know, when i see prices like that jumping so high it makes me think, is this the end? do i want to short this? what's the best way to make money in this market? >> orange juice was always a commodity with very, very good volatility. so if you're a volatility or option trader they're always taking a peek at oj. this week alone showed you since monday we went from a price roughly almost 20% to about a 129 and today we're trading at 149. you gained 4.5 cents in four and a half trading sessions. >> understand the weather issue, but that chart if we ran that longer term orange juice drop like in 2008 when we had a lot of cold weather and rises in 2009, it looks like every other commodity. in other words, is this an orange juice play or is this a commodity play? i know there will be correction when the weather gets better. there's a bull market in commodities is there not? >> without a doubt, it's an excellent point and we as a smaller market and probably the smallest open interest like chicago in new york market has seen the specs come us to last and the real push that was specs look at something, melissa is doing the weather thing and you have the icicles and i was so impressed with the way you have that down. a zero interest rate and the weakest dollar, yeah, oranges, whatever, oranges, copper, tin, metal, goal, without a doubt, bee them and hold them until something changes here. >> know you've already said that it will go higher during the first question, but what pt weather for the rest of the week if i was trying to do a short-term trade here. >> melissa brings up the point of the orange and the weather. >> but it will get colder this weekend so is it going on monday? saturday into suspected and sunday into monday is critical and let me tell you, i've been trading oj since the early '80s. if they mention teens you want to buy george juice. >> what happened to global warming? >> kind of a loaded question. i may actually -- >> global warming, i don't see any global warming. we're having global i'm freezing my tuckus off, what happened to that, man? >> it should be coming back. >> we'll leave it there. >> i wouldn't hold my breath. >> mappedy, over to you. >> business reporters are weather watchers, aren't we? new details on 401(k) savings and whether you should change your retirement plans. melanie hobson will be joining us for a first on cnbc interview. >> netflix makes nice with a big hollywood studio, but is it at the consumers' expense? we'll hear from netflix chairman and ceo reid hastings live from the consumer electronics show and that is also first on cnbc, first in business worldwide. you get a lot of different stuff from her. and it's all right here. everything sent to you organized by the person who sent it. the droid eris. the droid that's as connected as you. exclusively at verizon wireless. so, at national, i go right past the counter... and you get to choose any car in the aisle. choose any car? you cannot be serious! okay. seriously, you choose. go national. go like a pro. welcome back to "the call." i'm mandy drury. let's get you caught up on the markets. we've been looking at a mixed picture and not a lot of movement in either direction. certainly we are off the early-morning lows despite the disappointing jobs report. the s&p 500 at 1140 with the downside buyers and the dow to the slightly down side at 10,583 and let's bring up a board of the nasdaq which is moving to the upside by 0.4%, 2308 is the score. so in general, stocks are just off their 15-month highs that were hit earlier in the week. well, also earlier in the week netflix reached an agreement with movie studio warner brothers to hold off on the movie studio's dvd and blu-ray moves until after they've been on sale for 28 days. similar agreements are likely to follow. that means you can forget about renting newly-released movies. here's a one-year chart of netflix, up 60% right noi gaining by 3% in today's trade. julia boorstin is at the consumer electronics show in las vegas with more with the ceo of netflix. julia? >> good morning to you, mandy. joining me here with a first on cnbc interview is reid hastings. thank you so much for joining us. i know you have announcements about distribution deals to dvd players and tv deals and that was announced yesterday. first we have to ask you about the news getting so much attention and getting consumers up in arms your agreement to delay new releases from warner brothers for 28 days. why did you make this deal and why does it make sense for your business? >> julia, every year as we grow from 1 million to 5 million to 10 and 12 million subscribers we've continued to improve our service and we continue to invest in it. it is going into streaming content and instant watchable. that's why we're at ces and you can click on the internet and watch netflix streaming live over the internet. with warner bothers, if we hold off 28 days we can get huge numbers of copy of dvd and get streaming content and that's really what we're focused on is expanding the streaming and expanding the streaming. this is something they wanted and it's four weeks and as it turns out we think our dvd service will actually be better because we've got so many copies at the 28-day mark, but it is a little challenging to explain because of the 28-day delay. >> consumers are complaining all over the blogosphere and the question is if you're telling your consumers they can't access the newest dvds? are you worried you'll lose customers over this? >> we announced it a couple of days ago and we haven't lost customers yet, maybe a few. it is taking off. the internet is coming and we're moving forward and as a business, netflix, we've always been built for this. we're focused on streaming and now at ces, we've got almost 100 different devices, dvd players, blu-ray player, tvs that netflix is built right into so we're moving forward. >> know the streaming business is mostly focused on older movies. do you see a time when you'll offer the newer movies? you know americans always want the newest thing. will you offer the newer movies on streaming? >> we're focused on getting any content we can get. we're getting tv shows and movies and we're in the very first inning of the internet streaming world and we're makering our service better and better. >> i have to ask you about $1 dvd company red box. they're suing warner brothers over the same issue you just resolved and the one-month delay for dvd releases and they say it's illegal and hurts their business. does standing firm give red box an advantage? >> red box is focused on the $1 dvd rentals and it's a great bargain and they only have a few hundred titles and it works well for the brand-new release for those titles. our business is a monthly subscription, $9 a month for unlimited streaming and you get a vast catalog, over 100,000 titles. so they're pretty complimentary in most cases. >> the studios are in litigation with red box. they clearly see red box as a threat. do you? >> not particularly. what we've seen is areas of the country where red box has grown very fast because they started there, like salt lake city is a very high penetration, it hasn't hurt us so we're doing very well in salt lake city. they're focused on the quick, new release. you go in, you get the disk and we're focused on integrating the tv and streaming, streaming, streaming, instant, forward and that's what we're working on. >> about integrating to the tv. yesterday you announced new electronics partners, panasonic, sanyo, sharp, toshiba, are all introducing blue blu-ray players that integrate netflix into the device. is that going to grow your subscriber base? >> absolutely. every time we've seen from our initial deals with the xbox and with lg electronics that we've had great success, getting them has propelled our growth, you know, and a year ago we were growing 25%, 26% and now we're growing a lot larger than that. it's just phenomenal. we've been really blessed by the streaming. >> here at ces we are reminded that there are so many options for on-demand entertainment. video on demand, hulu, itunes, how coare do cow compete in this marketplace? >> we are focused on commercial-free and unlimited viewing for $9 a month and that's a great value. >> thanks for joining us here at ces. melissa francis, back over to you. >> real quick before you let him go, can you ask him what's keeping apple and other companies like that from undermining his business? that's something larry and i were talking about. >> so what is it? >> many companies, apple, amazon, others are in the video business today and they're focused on the new release pay-per-view model. the net poddel compliments their music business very well, but they may at some time come to more subscription where we are and that will be fine. we've also got unlimited dvd rental. so for 9 bucks a month, unlimb theed dvd and unlimited streaming and we're the only one that has the magic combination. >> melissa, if you want to have a physical dvd, this is the company. if you're happy with the digital file you can also go to itunes. >> thanks so much, guys. strong sales for best buy and not enough for the company to raise guidance and details about why they're being cautious and that's coming up. >> first up, brand new data on 401(k)s show we're still saving, but we want more choice and more control. is it time to change your savings plan? melody hobson from ariel is up next to discuss it all, first on cnbc, first in business worldwide. as small businesses are busy reinventing the economy, small business owners have a lot of questions. can paperless billing get me paid faster? how can i keep my best employees? how can i bring down my insurance costs? and while at american express open we may not have all the answers, we know who does. other owners. that's why we're helping business owners connect. together, we're building a community for them to talk, share and help each other. a place called openforum.com where owners can swap ideas and ask questions. will tweeting get me more customers? how can i make my business green? and one question seems especially popular. how can i get paid faster? how can i get paid faster? i was about to ask you the same thing. and they're inspiring ideas like acceptpay. a new tool from open that lets owners invoice digitally and helps them get paid faster. ask a question. find an answer. join the conversation at openforum.com. oh, that's kyle. he aced his fifth grade geography class. you see, now that we're using fedex to ship globally, i have to learn all the countries again, so i brought in kyle as a consultant. did you know that we have customers in czechoslovakia? actually, it's called the czech republic. yes, kyle, you're a lifesaver. without kyle, i never would have heard of that new country called buttheadistan. shh. [ male announcer ] we understand. you want to grow internationally. fedex serves over 220 countries and territories. anncr vo: ...you can get help gwith a flat tire.... anncr vo: ...find a nearby tow truck or gas station... anncr vo: ...call emergency services... anncr vo: ...collect accident information. anncr vo: or just watch some fun videos. anncr vo: it's so easy, a caveman can do it. caveman: unbelievable... caveman: where's my coat? it was suede with the fringe. vo: download the glovebox app free at geico.com. ups is up today after the package deliverer raised its fourth quarter outlook. the company said it would also cut 1800 management and administrative jobs. right now ups is to the upside by just over 4% sitting at $59.85. melissa? >> strong holiday sales for best buy reporting 8.2% rise in the month of december. this topped analyst estimates and disappointed those expecting best buy to raise its profit forecast for the year. right now shares of the number one electronics store are falling and falling significantly here in trading down 3.5%. cnbc's jane wells has taken a break from her bid for the governor's office and joans us now with more details. jane for governor. >> hi, jane. >> hi, melissa. top line story for best buy. sales growth beat the expectation of 8.2%, but domestically they came in at the high end of projections. the company says it has gained market share, but best buy merely maintained the bottom line guidance for the quarter and didn't raise it like a lot of other retailers had yesterday and that has disappointed some investors. analysts, however, are pretty pleased and best buy's strongest growth came in notebook computers and cell phones and the home office category which was up 28% in december compared to a year ago. a miance sales were up 16% which surprised michael at web bush morgan because that usually goes up with housing starts. consumer electronics were up 8 pertz and the strength in video game sales. >> we had gamestop yesterday especially blow up. they underperformed with video games so best buy looked like they gained share from gamestop and that's the first time i've seen that happen in a long time. >> what are the other saying? b of a, merrill lynch maintaining a neutral on bby. as for sales, domestically we estimate both traffic and ticket increased and promotions and inventory levels were relatively under control. we also believe that the last week in december was aided by gift card redemptions. piper jaffray, despite the lower gross margin rate expected in y4, we remain encouraged by the strong top line results and barclays isn't concerned with the company want raising guidance saying management just provided guidance three weeks ago and it's want surprising they didn't update it. the consumer electronics association is predictioning industry sales of $165 billion this year. that's a lot of tv ates which would be slightly better than last year and tvs may do well in january because of the super bowl. meantime for something completely different follow me on the blog, funnybusiness.cnbc.com and on twitter. >> they didn't raise guidance because they're managing our expectations and all of the retailers have done so well and they have room to be positive. >> things are getting better. >> that's why people should not obsess about today's jobs numbers. there's good things going on out there. >> i opened a can of worms. >> it's good, but isn't perfect. jane well, you are perfect independent no two ways about that. >> "power lunch" is perfect and coming up at the top of the hour. sue herera, what does your perfect plate have for "power lirn." we do have a perfect plate. the jobs impact as it pertains to psychology and sentiment, yes, there were good things in that report, but will people just look at the headline number and we'll talk about the impact on business. speaking of jobs, if you're looking for a job, we have a place that can give you some dream jobs. we will talk about what those are and what you can make and also some of the dangers involved and is there a war on wealth? taxing hedge funds and private equity, will it help or will it hurt? all of that straight ahead at noon. mandy, over to you. >> thanks for that, sue. coming up, brand new data on 401(k)s. melody hobson is up next to discuss right here on "the call." you get a lot of different stuff from her. and it's all right here. everything sent to you organized by the person who sent it. the droid eris. the droid that's as connected as you. >> welcome back to "the call" with your daily realty check, i'm diana olick in washington. the construction industry shed 50,000 more jobs in december. the labor department reports the sector has lost 1.6 million jobs since the recession began with an effective unemployment rate of 22.7%. 17% of the nation's offices stand empty and those that have paying tenants are getting % less in rent than a year ago. it is the greatest year-over-year decrease before. a record 8.1 million home loans in mortgage-backed securities are want performing or 60 days delinquent according to am hurst security, that's 32% of the total up from 25% a year ago. check back with the realty check-up next at 2:50. until then go to the blog realtycheck.cnbc.com. larry? >> thank you very much, diana. >> a new report from the investment company institute says that last year's economic downturn did want hurt your confidence in 401(k) plans, but there's still room for some improvement. how can we strengthen the u.s. retirement system? our very own president melody hobson was involved in ici's research report and joins us now from the national press club in washington. ariel, thank you very much for coming on. tell me about the kinds of improvements that people want in their 401(k)s after a pretty dismal stock market period. >> the one thing that is very reassuring is as you said, the vast majority of americans are very confident about their 401(k) plans and they do believe it will allow them to meet their long-term financial goals, but we think this great system and we think it is a very good system has still ways that it can be improved and made better. one of the clear ways that we've looked at is disclosure and there are gaps in disclosure that in giving people more information and better information, not just a ton of information, but information that will really help with their knowledge and wisdom in terms of making good investment decisions, that can be shored up and that can be improved as one major step. >> hey, melody, let me be the devil's advocate here. this study was obviously done by the 401(k) industry and it found that americans, you know, are still confident in their 401(k)s, seems a little bit self-serving, no? >> the one thing they think would be very help self for you to know that there were actual accounts that were studied. we had jack brennan with us earlier who is chairman of the vanguard group and he brought data that looked at 24 million accounts and said what did people actually do this year? and that data reinforced what we saw in terms of the attitudinal survey that the ici did. so when asked a very specific question since january of 2009 through september did you stop contributing of this base of 24 million planned participants only 5% made a change. so that's reassuring. it substantiates the data. >> it is reassuring. a 401(k), you can have stocks, right? you can have bonds and bank savings accounts guaranteed by the fdic. let me ask you this. you talk about more choice and control. 98% want more choice and control. does that apply to individuals' social security contributions? in other words, are you finding that people would rather keep their contributions or part of it that go to social security and put it into their 401(k)? is there any hint of that in your study? >> there was no hint of that in terms of the questions that we asked in this study specifically. but what i would say is the most important issue that many americans are worried about is just making sure 401(k) -- the excuse me, social security system is shored up and becomes fundamentally sound. and a lot of the stories, as you know all too well, about the system having shortfalls starting in 2017 are very worrisome, so more than anything else, more than choice and how it's invested, it's getting it right as the plan exists right now that's top of mind for people. >> and just -- thank you for that. as a follow up. is there a hint and i don't know if your polling covered this, did people change their mix in the . >> mild gains about a half a percent for the cac-quarant in paris. european stocks have extended their win for the third straight