rumpy, often maligned as rumpy pumpy. >> we come up with a lot better than that. time for "six in 60." simon gets three, i get three. i start? okay. i'll start. >> mrez. >> 3m, upgraded from market perform to outperform at bernstein's. upgrading the chinese internet research company to neutral from underweight. the firm increasing its price target to $442 from 375. p.f. chang's downgraded to neutral from buy citing valuation as the reason for the downgrade. >> palm is upgrading the smartphone make to firm has a $10 price target on the stock. cardinal health upgraded to outperform and the firm raised its price target on the health care company from $31 to $39 and first energy downgraded to neutral from buy at bank of america merrill lynch following the announcement of its purchase of allegheny energy. the firm's price target on stock is $48. i overround and so did you. >> wait for it. >> oh. they never managed to set the buzzer off. what did you want about greece? we have ten seconds and let's not bother. we'll get into it tomorrow. in the meantime you're back on "street signs?" ? indeed. >> coming up next is "the call." welcome to "the call." i'm steve liesman. we're learning this morning new details in the effort to revive the overhaul of the banking regulations left for dead. bob corker from the republican side have agreed to shelf the thorny issue of the construction on regulatory reform in the senate. corker revealed to cnbc this morning on "squawk box" that he had been around richard shelby on senate finance and agreed to work directly with dodd. >> i'm just one senator, and i certainly would never say that i could replace senator shelby, someone i respect and like a lot, but i am stepping forward as a republican senator saying that this is a piece of legislation that needs to be passed. >> dodd and shelby revealed last week they were at an impasse on the entire regulatory reform bill because of a disagreement over the power of a new consumer protection agency. that put a stop to the whole effort to rein in too big to fail banks and derivative trading and other reforms that many believe are needed that led to the financial crisis. cnbc has learned that all of this took place when washington was suppose lead closed down with the snow. on tuesday night dodd asked corker if they could work together. corker told the republican leadership on wednesday that he would do so and thursday morning as we're reporting now corker and dodd agree to shelf the thorny consumer protection issue. corker is a junior senator and it's unclear how much weight he'll carry with colleagues. his gamble is that least moderate republicans will have a hard time voting on a bipartisan bill and on this issue bipartisanship could be good for the republican party. the alternative is they're seen beholden to the banks, many of whom oppose this issue. >> speaking of being beholden of the banks, getting rid of the consumer protection. larry is thrilled on that. >> hold on, shelving it for the end, not forever. >> what does that mean? >> what they're doing is they're taking that issue and they're putting it at the end of negotiations instead of what happened with dodd and shelby becomes an impasse to doing any further progress on too big to fail or derivatives or the other stuff. >> they'll shelf it to the end, but you've got a lot of op si z opposition to a new consumer protection agency. steve liesman, what about too big to fail and what about resolution auth onity that would put the banks into a bankruptcy proceeding because isn't that the root of all eve snil. >> here's what i can tell you about that, larry, corker may be one of the most financially minded senators of the hundred that we have and his point is that too big to fail and solving this problem is good for capitalism and it's good for the american public and good for taxpayers and we shouldn't come in and talking about it again. >> you mean too big to fail. >> solving that problem and that's why he thinks that that has tran 16edded and put the consumer protection problem to the end and we must have bipartisanship on this. >> bob corker is a very smart guy. what about the volcker plan to limit trading activities and shrink the banks, steve? >> i did not have a chance to talk to senator corker about that, but i think i ought to do that right now. >> what was the liesman plan? i want to know the liesman plan and we'll send you in to negotiate, but i'll be hot on your -- hot on your coattails. >> as needed to serve, as you know. stocks off their lows as traders weigh details on the european report to bail out greece. so far eu leaders are offering moral support, but no aid. we'll have more on that in just a moment on the positive side. jobless claims were below expect aishgsz bucking the trend of unexpected increases that we saw over the past few weeks. take a look at how the market is trading right now. the s&p is down, but just barely, it's down about about a quarter of a percentage point. it looks like brief leigh succeeded and not for long. the dow is down ten points but essentially flat on the session. take a look at the nasdaq, cr wireless, a big drag so far today and it's gotten back to break even and down two points at 21.44. trish regan joins us from the floor. trish, what's happening down there today? >> hey, there, melissa. clearly a lot. one, you mentioned the jobless claims and it coincides with the unemployment rate decline we've seen as of late, but the big story here that continues to dominate the news flow is greece. we just heard that the eu has reached an agreement, but there's confusion fwauz there are no details and no specifics on what that is. it's trading a little bit down just ten points. angela merkel of germany coming out saying that more details will be released in the coming month, in march, they will re-visit the greece situation in march. joining me on the floor, bob pisani tracking it all, as always. so what is it? we don't have any details that the point. >> there is some kind of deal, mr. von rumpy, the eu president is doing a press conference and he has said that an agreement on greece has been reached fairly easily. so there's some kind of deal, they released a statement said that this is the first line of the statement. all euro area members must conduct policy in line with the agreed rules. it's a good cop/bad cop, they're trying to send a strong comment to greece, but euro area greece will take coordinated action if need. the answer is there's some kind of deal out there. if you look at the euro while there wasn't much reaction in the united states, they have been selling the euro all night, if you pull up the fxe and this is the etf that professional traders use to buy and sell the euro and you wonder what's going on here? >> bob -- >> we knew it was coming so selling into the news is the most important thing. >> they're continuing. look at this chart right there of the euro, you might have expected some kind of uptick with this announcement. >> no that was two days ago and we were anticipating an announcement. >> now people are continuing to sell into this. the question is what happens going forward? i want to know if i'm an owner in greek debt where do i stand in all of this right now? >> we don't know. the answer is there is either going to be an agreement to go out and provide loans to greece to cover their debt and to roll over their short-term debt or maybe even the eu or the german government may be involved and it's somehow buying greek and/or guaranteeing it, we don't know. there will be something like that, but there will be some kind of support here. >> they are there for the support. >> by the way, if you want to be negative on this, it's not going to be enough to move the needle in terms of solving the greek debt problem or the euro zone problem and greece will not be able to sell it to the electorate. >> it doesn't end with greece. we have spain, ireland, italy. there are so many -- >> the european banks are all down because they're the ones putting the pressure on the governments to do something because they're the ones that are really on the hook right now for all of this. >> okay, reaquick. jobless claims, very good news there. we were talking about how that's in line with the unemployment rate. >> we were up 480 and 490 in the prior weeks and down to 440. at least we're down to trends that were acceptable four or five and six weeks ago. >> i don't want to let you go without talking about how the weather has meant for the numbers. >> the economists are saying they'll bring down the numbers for february due to the storms. i think you will see comments like that very soon. >> we'll watch for it. bob pisani, thank you very much. i want to send it back to my co-anchor, melissa francis. >> they're holding a press conference on the greek crisis. that's what we're looking at right there. they're offering moral support, but no concrete help yet. nile ferguson says that the u.s. isn't immune to what's happening in greece. is this all just the beginning of another global mess. joining me now is andy brener and head of guggenheim securities and neil mackinnon, global macro strategist is the btv capital. thanks to both of you for join us. andy, is this the beginning? is this like bear stearns in could we see the same desperate call for a bailout and i'm thinking here at home in california. what do you think? >> if it gets solved and solved quickly, i think it will allow other things to not happen. if you don't solve the greek situation. >> how can it get solved quickly, though? >> what you have to do is you have to guarantee the debt as bob pis 18 was just saying. guaranteeing the debt and making sure people will repo greek debt without hesitation. once they have the ability to repo greek debt you'll have the ability to snowball and it will start with povrp gal and spain and italy and ireland. even france and the uk are not immune. >> neal, though, let me ask you this, what andy is saying makes sense in one level, but the minute they bail out greece, and i assume that's coming people will want to know about portugal, spain, italy and ireland. in other words, there is the proverbial slippery slope, it is down to $1.36. that's a new low for this cycle, neal. what is the so-called right position unless greece can get its own act together? >> i think you're right. the euro zone is on a slippery slope and it's a very serious debt crisis, and i think it's almost impossible for greece to achieve the debt targets that have been set by the european commission. >> think the endgame inevitably in all of this will be an implicit default and we're talking about a potential $2 trillion euro debt once we start looking at portugal, italy and spain. so this is a serious problem. at the end of day they can't allow it to break up and germany will have to foot the bill in order to prevent a bailout and why the contagion is taking place through the debt market. >> at the end of day aren't they going to have to rescue the euro currency? aren't they going to defend the euro currency? we haven't seen intervention and isn't that the heart of the problem. >> let me tell you what the europeans are missing here. they're missing an opportunity to come up with what i would call a super sovereign. just like the u.s. treasurys. you have 50 states and the federal government and you have taxation and you have 500 million people there and come with the super sovereign. >> they never passed. it never passed. andy, in some sense you're right if you could have more federalism, but that's a gigantic debate in europe, as you know. look, a lot of these countries like denmark and france voted it down. do you remember how hard it was to get that through? the issue of local auto me, subsidiary, that's a gigantic issue. there's no question it's a gigantic issue, but they're able to put through the euro ten, 12 years ago, i think they can do it again here. this will save them tremendous amounts of money. >> isn't the problem bigger than that? doesn't it go beyond europe? isn't this a lesson in the keynesian spending that there was a bill to pay at the end of day? that was a quote that was funny. in the western world we're about to learn there was ever such a thing as a keynesian free lunch. i don't think there was ever such thing as a keynesian free lunch. we've been big spenders, too. >> no question. on a yearly basis your budget to debt ratio and on an aggregate debt basis, your total amount of debt outstanding versus your gdp. these numbers have to be on a yearly basis between 4% to 6% and between 40% and 50%. the u.s. right now is talking about a debt to gdp ratio of obama's budget goes through of a little over 10% for this year and the way i see it, within the next year or two, you'll be at 60, 70, on the way to 100% debt to gdp. if that happens, you're absolutely right, but i think smarter heads will prevail and that these debt numbers will actually start to come down. >> neil, on this point. i agree with melissa and neil ferguson. there's no such thing as a keynesian free lunch. heck, keynes didn't agree there was a keynesian free lunch. the bond market vigilantes have gone after the euro. they have not gone after the u.s. not yet. >> that's our point that here we go. >> that's been out there for a while and they haven't gone up to the most fiscally profitable story is japan. look at the japanese numbers. their debt to gdp is 130, 140% and they're running deficits and yet the end is very long. why is it that they're giving japan a free ride and to a certain extent the u.s. treasury market. i think japan is less dependent on foreign investors to finance the deficit and they've got a huge pool of domestic savings, but i think just going back to the euro zone, what is a problem for them and they touched on it that it's federal fiscal authority and that's the achilles heel if i can use that expression. in it's very different than a federal authority and whatever problem states like california might have, and the federal authority is the way. they're making the same mistake that the greek government made. our federal authority is spending like crazy as well. america is still the leading reserve currency. it's still got the biggest, most liquid markets and i'm not trying to understate the fiscal challenges. i think in europe the real problem is they can't devalue their way out of the problem. >> but it does remain, neal. we're running out of time. to melissa's point, our federal authority, quote, unquote, we don't know if that federal bailout will bail out california or new york or new jersey. that is in front of us and those are big high-risk questions. >> we've got to go. thanks to both of you for joining us. trish, over to you. >> it's the reason why i keep saying we need alexander back in business for the eu. >> oh, yes! yes. >> coming up next, we're asking the question, whether or not a greek bailout of court will be just what the doctor ordered for stocks. it's bull versus bear coming up straight ahead. >> also ahead, the chill in d.c. isn't just because of the snow. capitol hill law makers are dealing with the electorate. our call of the wild is washington failing america. my lord, you're watching cnbc. oui we are first in business worldwide. okay. welcome back to "the call," you cyclical sycophants out there. check out u.s. steel. if you like the cyclical play, you'll love the call by deutsche bank. it is quickly up 4% and one of the top performers in the s&p 500 right now. it has had a tough go of it in 2010, no question about it. the stock has fallen 35% just if the past four weeks alone, but thou they're coming in from the bottom and seeing if they can push it up. the largest steelmaker in the world struggling and this in the face of skeptics saying that they will not be able to maybe pass along the price increases that they're facing from their dramatically rising raw material costs, but today the cyclical sycophants are push it higher and winning $two bucks on the price of u.s. steel. trish? >> mr. nesto, thank you so much. traders are keeping an eye on the eu summit for the details on the greek debt crisis. will the greek accord lead the market higher? that's a question whooer asking michael kuj inon president of portfolio funds and david hefty, ceo of cornerstone wealth management. david, you say your sovereign debt issues are just beginning. what's next? when you look at what's going on with the pigs of europe, portugal, ireland, greece, spain, that's just the tip of the iceberg, because when you go to the more, the larger economies in europe, their total debt to gdp is 170%. france is 230% and the united kingdom is over 400%. back in 1997 when we had the asian crisis, the asians only had 160% total debt to gdp. the europeans today are making the ash as of '97 look like fiscal conservatives. this is going to be a big problem. >> wow! so with that in mind, what do i do as an investor here in the u.s.? >> well, i'll tell you what, back in january, i think it's clear today we hit a media top. that's why february 1st we moved all of our assets out of the market and into cash. we see a big drop coming and there will be a large will have till sideways pattern coming up in the next few weeks, but at the same token the market can't go sideways forever. it's either got to break and go up or break and go down, but when you own an asset that equals risk and when the fundamental characteristics of an uptrend disappear and there's more downside potential, you have to go to the side. >> they never disappear. mike cugino let me come to you. i want to ask you this upon take the worst case. greece doesn't get solved, euro, the euro currency claptes and it is 136 and headed south. could that actually be bullish for the american stock market? >> it could on a relative basis, larry, because this would continue this sort of race to the bottom in currency devaluations worldwide and that would make the u.s. look better vis-a-vis. the other thing, too, is that the u.s. economy does have some underlying strength and some potential because of our less restrictive policies over here. >> larry, i'm kind of even surprised to hear you say that because i know you're the kind of guy that believes in making the pie bigger and bigger. >> i do. i do. >> the reality is if we're depend own the europe failing to make us stronger, yes, it helps our currency, but in the long run mike kuj inon, isn't this going to spell trouble? >> i think in the long run we'll all be dead as long as we keep taxing, and depreciating our currency. let me make that point. let me raise this with michael cugino. here in the u.s., it is steeply upward sloping and that's bullish for stocks, credit market risk spreads are narrowed and that's usually good for stocks and profits are rising and that's good for stocks. so i'm just saying in the short run, before we are all dead, might there be another leg up in the stock market rally? that's all i'm asking. short run, just three months, six months. >> death and taxes. yeah, you know, the other side of the answer there, we talked about the united states relative to europe, but the other side of the answer is that the united states, one of the more underreported happenings in the last month or so is the strength of q4 profits in the u.s. including revenue growth across a lot of industries, so that's giving underpinnings to value in the stock market, which if that continues, the stock market could be a little bit -- it's already more undervalued than it was early in the year and that could continue which could drive stock prices up further especially since a lot of money is still sitting in the long run. >> i'm just saying in the short run. >> you're all with growing that pie. i want to bring it back to david. one of your big concerns is that mortgages are resetting. how much of that will factor into your investing decisions in the coming months? >> again, we see two major systemic risks to the system. one is the europe and the mortgage resets at home. in june, july, august, we got worried of those 35 billion a month and we know what happened after that. we've been averaging about 20 billion a month ever since. this month, here in february, we're beginning the mortgage armageddon. we have 30 billion in subprime -- >> we have to interrupt you, my apologies. we have to go to carolina with break news. we send it over to you. >> i am here in brussels, of course, the european summit has just finished and we don't have a lot of -- we don't have a lot of news about the details of this package that they are offering to greece to help greece. we know they are going to be helping greece. we know that they are saying and promising that they are backing greece, but they didn't come up with any detail. as you know, the devil is in the details and the details were left to be discussed next week on monday and tuesday when the finance ministers of the european union will be meeting here in brussels. in fact, in the statement they announced here today, a couple of minutes ago, they say euro member states will be taking the coordinated action if needed and the greek government has not requested any financial support. so that is a big news, if you were expecting to hear how much the european union was going to pay to greece for a bail out. that is a lot of no news for you. >> interesting. carolina, thanks so much for that update. coming up on today's "call on the wild," u.s. citizens venting their argument in a new way. coming up, a new poll released just today. >> okay. our question is is washington failing to meet the demands of the taxpayers and voters in america? all that in "the call of the wild." stay with us, we are "the call." this is cnbc. we are first in business worldwide. a multibillion-dollar deal if the energy sector. the ohio utility first energy buying pennsylvania utility allegheny energy for $4.7 billion in stock. i it comes to $27.65. you can see how both are trading right there. you have allegheny trading 10% and first energy down 6%. >> thanks, trish. finally after more than a year and a half since the financial crisis began. we may have some bipartisan conversation for financial regulation. may, but americans are not happy with what's going on in washington. a new poll out says 66% are unhappy or downright angry with the way the federal government is working. so in our "call of the wild" is washington failing america? let us bring in dan gross, newsweek editor and cnbc contributor. good morning, gentlemen. dan gross, poll after poll shows america wants smaller government, fewer taxes, less heavy handed controls and washington's going in the wrong direction. what do you make of this? there's a revolt out there, dan, my friend. >> well, i think the polls actually show that they want bigger government and people like the medicare prescription drug coverage, and a lot of the components of the health care plan broken down on an individual basis are quite popular. >> wait, when you say most of the polls. a "washington post" poll, 58 to 38, smaller government, fewer services. >> i know people say that, but they don't want smaller services. >> and the health care thing is untensely unpopular. that's been the whole scott brown and tea party revolt. the polls show it, i've got to challenge it. >> larry, when you break down the individual components of the health care bill, no pre-existing conditions and port ability, et cetera, a lot of those are very popular and time has shown over and over again when people pass the programs like medicare prescription drug coverage, a hooem huge open-ended entitlement and big government 101, people love it and no one wants to touch it. that's part of the problem, but i think we have had a -- i would call it bipartisan failure. they're not interested in governing. you go back and look at henry paulson's memoir, which is actually quite good. he is really harsh on the congressional republicans and the democrats act like they don't want a government even though they have the power. >> let's get a wordhere. i disagree with what dan was saying for sure because if you look at the data we had up on the screen, americans think every dollar is wasted. that doesn't seem like they want more medicare to me, but greg, what do you think? i say that the american public is not stupid and they see hyprocrisy and it's on both sides. for example, two quick examples. kent conrad always rails against deficits. a democrat, he wants more pork for farmers. richard shelby of alabama. they say one thing and do another. >> isn't that what the tea party movement is all about, that americans are sick of both sides? they're sick of washington and they're sick of politicians and they're sick of government controlling everything. you disagree with that? >> i think there is a lot of outrage out there over a variety of issues, and again, on both sides. >> yeah. >> without disrespecting clowns, we have a fiscal clown show. there is a huge gap between the revenues we have and the spending we have and it's fairly obvious you can cut spending and raise revenues and nobody has any ideas, serious ideas on thou do either. >> so what does it mean? what are the implications of this? does this mean that we'll see a big change in washington? do they hear the message or is it just temporary and the public's going get over this? >> i don't think there will be a big change. we go through this dance every february. the most important point, i think that's often overlooked, you can kill all of the discretionary budget, 17% of the budget. the fda and education, kill it all and you would still have a deficit of about $1 trillion a year. >> all right, greg, but it depends how well the economy grows. look, when you say you don't see a change, i don't agree. i think that voters published the republican congress and particularly in 2006 and 2008 because they went wild. they completely lost their minds, but now i think you'll see a tremendous anti-incumbent upheaval with the democratic congress, and that's what the numbers show. i think the issues are very clear, too much government and too much spending. by the way, greg -- >> and taxes. >> right. the proliferation of taxes for the long-term horizon is extremely unpopular. the polls say they would take a deficit, but they want more of their own money. that was the scott brown message, wasn't it? >> larry, i would point out, bill clinton raised taxes and gop in the stock market did better under clinton than they did under bush and wo cut taxes? >> remember this, too, greg valliere, clinton raised taxes and the democrats lost the house and the senate next year and then clinton had to change his tune and in my humble opinion clinton became one heck of a good president and pursued pro-growth economic policies. dan gross, i was so interested in the bloomberg news column with obama telling them that, in fact, now the banker bonuses from lloyd blank fine and jamie dimon, that's not so bad. they're not greedy fat cats anymore, dan. he called them savvy business people. >> you've got to actually read the piece. >> but he basically said he's not opposed to wealth creation in the free market. >> i liked it very much. what does it mean? is there a turn, dan? is there a shift in washington? >> i don't think so. look, jamie dimon is one of obama's friends. he's a democrat, and you're not going to see him going after him. if you look at that piece. >> jamie is meeting with john ba boehn boehner. thanks for joining us. what do you have? >> more on this breaking news about bipartisanship and revival of regulatory reform overhauling the banking system. the treasury department now out with a statement saying they welcome senator corker's decision to work on a bipartisan base wiss senator dodd when it comes to passing financial reform and ending too big to fail and other abusive practices and all of this stemming from the interview this morning from senator cork or cnbc where he said he had decided to work with senator dodd on regulatory reform after it came to an impasse on the senate. i want to be clear on the issue of consumer protection and the agency designed to do it, they've decided to shelf it to the end of the negotiations and agree to everything first and then do it. shelving it doesn't mean to end the discussions altogether. just. do it first before getting to the thorny issue. >> until the end of the time? >> until the end of the discussions. >> i'm sorry. >> okay. >> and that's the end of that. okay, we're going to move on. thank you so much, steve liesman. >> i wanted to clarify that. >> the airline sector has been sky high in the past week. how's that for you? it's up about 10%. >> all this despite thousands of flights being canceled because the east coast blizzard. which carriers are likely to continue this unlikely rally? two airline analysts offer their top picks only on "the call." >> okay. welcome back, everyone to "the ca call." according to a usa today survey of carrier, 5700 flight were canceled yesterday making the storm one of the biggest one-day disruptions to air travel since the nech attack. cnbc's hampton pearson is at a still-closed reagan national airport outside washington with more on the travel and business impact. hampton, yesterday, we were joking about you riding around on those baggage carousels. you had the place pretty much to yourself. i see a few folks behind you, but still, not much going on. >> more than a few. as a matter of fact, most of the airport employees, ticket aejs agents all showing up for work. first thing's first. it looks like reagan national is set for a mid-afternoon reopening. it's not official, but everybody gearing up for that eefrpt allity. dulles nearby has been open since 6:00 a.m. eastern time. 1400 flights a day between those two airports. part of an estimated nearly 6,000 canceled flights nationwide yesterday. what the airline industry officials are now saying could be the worst weather disruption in history. at least another 1,000 flights have been canceled today, and getting the system back up and on track will take several days, but travelers are returning to the airports with their horror stories and frankly, getting ready to roll the dice to get on a plane. >> i was supposed to depart out of reagan airport at 9:50 yesterday morning and now they've told me that i can only fly out at 4:00 this afternoon, and it's the first flight available and it's nothing short of a disaster. >> i was supposed to fly out this morning out of baltimore, washington. that got cancelled and they moved me to a 4:00 p.m. out of baltimore, washington and that was canceled. >> there are no planes flying right now so that's not good. >> reporter: so the story of the moment here, all checked in, still no place to go. back to you guys. >> hampton, thank you so much. before the latest snowstorm hit airline stocks surged after united airlines reported revenue and blew past estimates. we're asking despite this bad weather out there, are airline stocks still a good investment. should you put your money in them right now. joining me right now is airline analyst at stephen nicholas and senior analyst at j.p. morgan and jamie, what is all of this going to cost the airlines when you have a weather event like this. what does it mean to the bottom line? >> i tell you, the good thing about storms, unlike power failures. you generally see them coming and you prepare for them. any airline that has an operation on the east coast, whether it's continental at newark, they budget for those operations to be completely shut down for at least two, sometimes four days throughout the quarter. so i guess the real question is for the meteorologists whether we should expect any continued weather disruptions between now and the end of the quarter based on what we've seen so far it doesn't look like anyone would have gone meaningfully over budget. >> hunter, how much does that factor into your prognosis in terms of what airlines to invest in? i mean, how much are -- is the east coast, shall we say, geographically speaking affecting some of your picks? it doesn't have an impact. we tend to take a longer term approach. some of the stuff is budgeted into the numbers as well. obviously, you might have more carrier-specific risk like jfk. they either go in or out of jfk, relative to the size of the network that could have aye an impact on cost. you mentioned the unit revenue measure that got things going earlier in the week. the units are also down significantly. you might have in some cases, a positive impact on the unit revenue. so a bit of an offset, but certainly lower revenues that they're not able to reaccommodate the passengers, but the costs are budgeted in. >> jamie baker, let me go to you, can you really with a straight face look investors in the eye and ask them to make a long run in airlines. this is an over regulated, over-unionized. there may be exceptions for the smaller carrier, but the long-term play has never panned out, has it? >> longer term it's been exceedingly difficult to generate market returns and that's true. this is more of a trading sector and we think the fundamentals right now certainly weigh themselves, and lean in the direction of a potentially profitable trade at this point. >> who's your best guy? who do you like? who's the number one pick. >> if you would have asked us in october, we would have told you buy anything that flies and we were in the precipice of the demand doing quite positive. >> part of that, too, is an oil trade. when you look at the airlines, you have to look at what oil is doing. if you think oil is going down suddenly airlines become a more attractive investment. >> i disagree with that. i'm worried about lower cost oil than i am with higher cost oil, because what i am with volatile fuel prices and deterrence to add capacity and that represents excess capacity and not higher commodity prices. so i'm worried about $40 crude. >> jamie, are you worried about $40 crude? >> higher crude prices have definitely had a disciplinary effect on the industry? we're not losing sleep over that and that's not consistent with the j.p. morgan view on commodity prices, but i absolutely agree, it will force them to act more rationally. >> thank you very much. >> coming up on "the call." more fallout for toyota in the wake of car troubles. is the embattled japanese automaker losing power as a result of the recalls. phil lebeau takes a look only right here on "the call." we'll be right back. okay. we want to show you what's going on in the market right now because the dow has certainly turned around and it was in negative territory at the top of the hour and it's getting close to 100 points and almost a full percentage point. 10,130 and the dollar is lower and the euro is higher and we're seeing gold higher as well. take a look at s&p and it's up 0. %. and utilities falling behind and pretty much across the board we're seeing stocks move higher right now. as toyota continues to grapple with the fallout regarding safety issues and recalls, to what degree will dealership have to play ball with customers when it comes to pricing? >> cnbc's phil lebeau is in chicago with a closer look. phil? >> the dealers are noticing that they'll have to work a little harder to close sales and the primary reason is because people are not looking around. they're not as locked in as buying a toyota or lexus model. look at the latest survey coming from kelly blue book. kelly blue book surveyed a number, the number of percentage of people saying they'll get rid of the shopping less, more than twep% in any that translates for showrooms having to work harder to close the deal. they've had a $2500 price per vehicle versusst competitors and it depends on the vehicles and what the competition is offering. toyota dealers are lowering those prices because they have to to sell the moddies that are out there. toyota sales dropped 16% in january and the reason why some dealers are out there looking around saying that people are looking at other brands right now. >> we've seen an uptick in traffic at honda, ford and hyundai stores. they've been probably the ones that have most benefited, but i hate think the longer implication is the perception gap. >> i'll pay a premium to buy a toyota. by the way, if you take a look at autonation, the company reporting fourth quarter earnings today and it posted profit, but warned that it would likely post a loss for the fourth quarter in part because of the toyota troubles. for more on the implications for toyota dealerships and those who own toyota dealerships, check out the blog behind the wheel.cnbc.com. by the way, larry, autonation, 20% of its business come from its sales even though the business is toyota. >> thank you, phil lebeau. appreciate the update. now "power lunch" is coming up at the top of the hour. sue herera what is on your plate? we have a ceo summit coming up right here on "power lunch." five top ceos from one of the nation's influential businesses will joining us "power lunch" to talk about the company, the political climate in washington and speaking of which, does america need a political reboot, if you will, in washington? have we become politically unstable in the eyes of the rest of the world? we will talk about that and what about all of the trash tv that's out there. two big corporate titans are teaming together and they're going to try and put more family friendly fare on television. will it work? will it catch on? it will make money? we'll talk about that at noon. back to you. >> sue, have a great show. up next here on "the call," winners and losers from california's wine glut. jane wells is in burbank with the west coast call on this one. hi, jane. >> hi, i'm in the wine department at henry's farmer's market where they're growing a whole lot of grapes out here and people are buying the $52 stuff and then of course, there are all these cheap imports which means things will be priced more like this and we'll run the numbers after the break. welcome back to "the call." with your daily realty check i'm diana olick in washington. foreclosure filings were down, and 15% higher than january of '0 that according to realty track. the dip is likely due to top sour services through january 14th. less than half of all metro regions saw higher prices in q 4 from a year ago. median prices down 4.1% annually, the smallest price decline in over two years. members of the congressional oversight panel say they are deeply concerned that commercial loan losses could jeopardize the stability of the nation's mid soozed and smaller banks. banks face up to $300 billion in commercial loans losses. check in with realty check at 2:50, until then, check realty check.cnbc.com. >> thanks, diana olick. there is a realty surplus and of course, we're not talking about the budget and we're referring to the business of wine. jane wells is in purr bank with the west coast call on california's wine glut. so lots of good deals, perhaps, jane? >> yes. and even better one comesing, trish. it was the second best crop ever in california last year which means you will see better prices on more expensive wines. the preliminary report on the grape crush of 2009, 4 million tons were harvested second only to 2005, and the wine grape crop 20% better than 200 coming off the success lowest krp. they were, many growers are locked into long-term contracts. average for red wine grapes was $664 a ton and that's flat. for whites, down 1%. prices for chardonnay grapes, down 7% to $756 a ton. cabernet sauvignon at $ ,068. the largest harvest from the central valley where the grapes go into the lower priced wines as more americans are buying wines under $6 bucks a bottle. they had a good crop and it was much needed pt the wineries went into the lowest inventories the state had in a long time. that's where consumers have traded down to. so there has been growing demand for wines produced from grapes to the central valley. >> okay, but with such a bumper crop, will we see more good wine headed for wineries, two buck chuck like we did earlier this decade? probably not. the wine market is wider now and it's coming austin vent ors and cheaper imports from places like australia where they have their own glut are gaining market share with the u.s. and california which makes 90% of the nation's wine is seeing global shipments drop for the first time in 16 years. public companies which sell wine, rocky year so far. diageo reporting first half profits dropped 10%. fosters isn't on that chart, guys, but fosters which trades on the pink sheets here is the only one outperforming the market. melissa? >> all right. thank you so much, jane. a quick break and we're back with this morning's market action. we're looking at a market up 96 points and big turnaround in the last hour. >> we'll give you the list of stocks to watch as we head into afternoon trading. you're watching cnbc, first in business worldwide. ♪ well, look who's here. it's ellen. hey, mayor white. how you doing? great. come on in. would you like to see our new police department? yeah, all right. this way. and here it is. completely networked. so, anything happening, suz? 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