Up 49 on the dow. Caterpillar beat earnings expectations, merck, united technologies, travelers, ge also trading to the upside as you can see on your screen right there. But we did get some news on the Economy Today i want to bring you. Sales of Single Family new homes fell more than expected in december. Many economists blaming the slump on the cold weather. The Commerce Department saying new home sales fell 7 to 414,000 units. Home sales usually dip in the winter, but the extremely low temperatures may be causing a more substantial drag. Take a look at hovnanian, kb holmes, all of these Companies Trading do the downside except for pollty, bucking the trend. But the rest of your home builders, actually, are trading to the downside. Wanted to show you those. Big news on the economy. Also this, remember the winklevoss twins made famous by the facebook movie about Mark Zuckerberg . U. S. Agents arrested the ceo of the Bitcoin Exchange bitinstant on Money Laundering charges in connection with customers for an alleged online drug bazaar called sill road. Silk road. The winklevoss are investors but, again, not implicated in the arrest. Bitcoin always a favorite topic here on fox business. Big question for investors now is whether this market has bottomed out and whether it is time, of course, to jump pack in or when do you get in, especially on a day when youve got this much volatility . Trailedders standing by at traders standing by at the New York Stock Exchange and, of course, the nymex. Mark newton at the New York Stock Exchange, lets talk about the big swing that were seeing on the dow, mark. What do you make of it . Real roller coaster of a session, we tried to move higher, fail ld, tried to move lower, and thats an area to focus on, and thats right near 1765 for the s p. Until we break those and really break the broader uptrends are in place really for the last year or so, its tough to make much of this pullback just yet. If anything, we started to see real signs of fear just in the last couple days. The vixx has been up over 50 , i think, since last tuesday. So in a very short period of time weve seen implied volatility start to rise, also the put to call for equities spike briefly over one. Those are a couple of things that suggest, yes, there are some signs of fear in this market. For now the shortterm trend is still down, so were going to see more signs of stabilization. The s p probably needs to get back up over 1810 at least in the near term to suggest lows are in. With four trading days left in theemonth of january, if you look right now, three out of the five Top Performing sectors are all defensive. Utilities, last year one of the worst performing sectors, is now this years best performing, so certainly different than expected coming into 2014. Cheryl i want to go over to dan at the cme. All of this backdrop is as we go into the fed meeting this week and, certainly, many expect a taper, maybe ten billion. Not sure what your expectations are. But the taper could be another market mover, and that could be up or down. What do you say . You know, i think the taper is going to happen. The market or the fed looks at the economics of the market and how the Economic Data is doing. And thats still doing well. The previous guest mentioned all the Technical Levels and that, in fact, is true. But the ultimate driver of this economy is going to be how is our economy doing . I believe its doing better, and the data should bear that out. If we see a couple of blips here, one month im not going to worry about it. If it รท becomes a couple, youve got to worry, but im still pretty confident. Cheryl all right, dan. Lets talk about whats happening behind you, that is all the weather chicagos seeing, and theres been a lot of volatility in different contracts with energy. Are you watching that and how that affects overall your strategy today or even this week as i think were 40 with wind chill in chicago . I hope youre surviving all right. You know, i took a little bit of a walk in, its cold. And i remember back in 83 when it was a raw temperature 26 below, but this seems a lot better. Thats what a few years does here. As far as whats going on with the energy markets, i dont think you can make a big deal of it. It does get cold in the winter. Youre going to see a blip up in those products, thatll probably continue for a short period of time, but i dont think itll be long lasting. Cheryl okay. I hope winter is as long lasting. Let me go to Jeffrey Grossman at the nymex. I know youre watching the weather like everybody else is in the northeast, but also heating oil is on your mind. What are you looking at . Again, the weather is the most important thing we can look at here. Again, they pretty much with all the energies in this morning the markets all spiked up higher again but, again, at that point you had a point where pretty much everyone who was short or would had had a cover, and at this point the reality came in that most of the predictions in and understanding of what was going to be consume in the next, lets say, week or two has been absorbed into the market, and we had a pretty good selloff here. You have what you call from a chart formation probably a key chart formation probably a key reversal in youre going to leave an island in natural gas where it got about 10 above most expectations, in fact, my own. I was a big bull a few weeks ago and called this move, but, again, at this point they overdid it, and now weve got to back off if were probably going to stabilize here probably in the high fours, and well have to wait to see if thenaycn any change in the weather. Otherwise maybe drift a little lower now because, again, theyve already steeped their objectives here, and now weve got to get to the reality of where the weather is. Cheryl jeffrey, it must be a fascinating day to be ap energy trader. When you see headlines cross that theres a propane shortage in states like wisconsin, i mean, these are really contracts that probably dont get the attention they deserve. Now theyre kind of, you know, in focus. That must be interesting for you. Oh, without question. Again, but this weather has been the key factor here. No one predicted. And its like anything else, when theres a huge snowstorm, theres never enough snow removal equipment. Its the same sort of thing that everyone has a certain, lets say, baseline expectation. And when you exceed it, theres a bit of a panic thatll take place in energy markets. Always more perception that theres a shortage. Not as much as were going to run out, but again, when theres tightness and concern here, people get nervous. What can you do . Cheryl all right. Well, certainly way to kick off the week on this one. Gentlemen, thank you so much. You know, everybody, guess what . Its actually really cold outside. In c hk0ujz dan was talking abot that, bitterly cold in chicago today. This polar vortex pushing temperatures in chicago and really throughout the midwest to below zero degrees. Thats the temperature. Im not talking wind chill, the temperature. And many of Chicago Schools actually were closed. Hundreds of flights have been protectively canceled. Weve got jeff flock standing by in chicago with more. Jeff, by the way, before we start this report, i need you to buy some real winter boots, jeff. Thats the one favor i ask of you this year, real boots. Boots, ive got ive got real boots. These are real good muck lucks, and dont worry, the fur, no animals were harmed in the making of this. Actually, the cat was already dead when we harvested this fur. I am in the middle of randolph street in chicago, middle of the day. You may not look know what the street looks like typically, but you usually cannot walk across the street like this with maybe one car just coming down past you. The city is really, i mean, i heard dan say, you know, its cold in chicago. Its true. But its colder than normal. There are for time of the year, for the this duration, you know . Two weeks ago we had the polar vortex, and we thought it was maybe a once in a lifetime deal. Not so much. Take a look at where this cold stretches, all across the midwest. Not just here. North of us, south of us, as far south as kentucky. Were talking about a lot of cold out here. And, cheryl, you know, you talked about the numbering markets. Most of the midwest is heated with natural gas, and thats why natural gas, you know, really got up there, a little bit of a selloff today. But its still pretty daggone cold, and heres the headline, its going to get colder before it gets warmer. Overnight tonight its going to be at its worst. Cheryl jeff flock. Well, you got one heck of an assignment. Who did i tick off, huh . [laughter] cheryl oh, man. Right, exactly. Ill talk to the bosses for you, jeff, promise. Well, lets take a moment to look at some social media stocks that have been taking a hit today. Nicole petallides is standing by inside the New York Stock Exchange. I think on days like today youqz and i are so lucky that were actually indoors. I dont mind it at all. Its all good. First of all, wall street has had that back and forth action. The dow is now higher by 55 points, but whats not participating in this turn around are these social media stocks, facebook, groupon, angies list all to the downside, linkedin to the tune of 4. 5 , twit or down 5 . Twitter down 5 percent. Theres at least one thing to blame, and in barrons over the weekend you had the boom, gloom and doom report talking about some companies that are overvalued, he actually had facebook and twitter on that and, basically, put them in his short list, right . To short these stocks for 2014. Back to you. Cheryl all right,ny dell, of course, well see you in just a little bit. A lot of of red on the screen for many stocks, but the dow is higher by 50 points at this moment. The closing bells going to ring exactly 50 minutes from now. It is apple ceos tim cooks moment for truth. Will he knock it out of the park . Will billionaire carl icahn rape on cooks parade . Rain on cooks parade . And then caterpillar, the worlds biggest maker of mining and Construction Equipment has a winning quarter after cutting thousands of jobs. Were going to find out just how much investors are celebrating cats turn around. Well be right back. Many the power mover of the hour is caterpillar. The stock, take a look at it right thousand, its trading almost 5, thats a gain of nearly 6 . The company releasing its earnings and revenue forecast for 2014 that topped analyst estimates. Investors were also happy to hear that caterpillar, which just racked up a 7. 5 billion Share Buybacking has authorized another 10 billion in stock repurchases through the 2018. Now, the largest maker of mining and Construction Equipment saying its seeing, quote, some signs of improvement in the world economy. Thats big for a company like caterpillar, especially when you think of their markets such as china, and the company also saying it should be positive for sales. One of the pressures has been that overseas market in particular. Construction and development slowing down in asia, not the case. They came out today, big win for caterpillar, and thats certainly helping the dow. Were also looking at apple, a big focus for investors today. The tech giant is reporting earnings after bell after billionaire investor carl icahn, remember, he told Charlie Gasparino last week he had bought another 500 million of apple shares, saying the companys value was, quote, a nobrainer. Take a listen. We think its really very undervalued, and the board is doing a major disservice by not using the greater hoard of cash in the history, i mean, theres nothing close to it. I mean, its almost criminal they can just sit there fallow with it when you could be taking advantage of your own companys stock. Cheryl okay. Well, take a look at apples shares, this stock is up more than 24 over the past year, but its still trading way below the september 2012 alltime high when it was more than 700 a share. So apple, surprise to the upside with the quarterly numbers. Will 2014 finally be the year that this company gets it mojo back . Joining me now, tom forte, Senior Research analyst. You heard carl icahn, i wonder if hes going to be the main topic of the Conference Call today . Well, i think its definitely beneficial to the company to the extent that someones trying to push them to use more of their cash balance to buy back shares. If you look at the performance, adding that 60 billion buyback really gave the stock a floor, and its done quite well since then. Cheryl 40 billion in cash right now . That might be their u. S. Cash balance. So when you include their international, i think its north of 100 billion. Cheryl okay. Do you agree with carl icahn . Do you think they do these to either give it back to investors, do a Share Buyback . I agree to the extent that theres a larger opportunity for them to buy back more shares, to accelerate that effort, and that could be a nearterm catalyst for the stock. Cheryl weve got the earnings coming back, but i want to hear what youre looking at in particular. Im assuming high on your radars got to be iphone sales. If you look at the december saleses, this is their first full quarter of iphone s and 5c sales. The december quarter should be strong because of the full quarter of the iphone. I also think you have pentup demand for ipad. In calendar 12 they had two releases of the ipad. And if you look ahead to the march quarter, they should get the benefits of their new Distribution Deal with china mobile. Cheryl do you worry about the ipad itself being taken away from by the ipad mini . Do you ever get concerned about that relationship . The concern for apple from a margin standpoint is successful sales of the mini are going to degrade margins for tablet, and successful sales of the 5c will degrade sales of the i phones. What do you think about the rumor theres another coming out . The pro would likely have the highest margin of the three, the pro, the ipad mini and the ipad with retina display. Cheryl okay. And weve got to talk new products. Well yet to mobile in a second, but new products. I mean, weve all been waiting. Where will now become the big story . Are we going to get a watch, a its, anything new, do you think . Maybe not today, but at some point, right . So having been to the Consumer Electronics show in vegas in january, i think theres a huge opportunity for apple to outperform whats already out there. And admittedly on the television side, the battle for the living room, samsungs doing a lot of things very well, sony, but i think there is opportunity for apple. The way that i see it, the first half of their fiscal year the december quarter, the march quarter, it should be the iphone sales and iphone sales in china. The question is in the second half, are we going to get a watch or a television . That remains to be seen. Cheryl okay. So sales through china mobile, theres Nothing Specific there, just looking for kind of a straight shot number . Were looking for incremental ten Million Units sold because of the china mobile next year. Cheryl tom, thank you very much. Its going to be a very interesting report. Lots to go through, so were going to have full coverage in the next hour. Thank you, tom. My pleasure. Cheryl closing bells going to ring, 40 minutes to go on monday. Weve got some breaking news on the controversial nutritional shake maker herbalife. The stock jumped today. Whos also following it . Charlie gasparino. Hes got details on why the stock went up. And then theres this, Cruise Line Companies cannot catch a break from concerns about sickness onboard their ship. The ceo of Norwegian Cruise Lines will address those head on. First on fox business interview, thats coming up. I ys say be thman with the plan but with less ergy, moodiness, i d to do something. I saw mdoctor. A blood test showed it was low testosterone, not age. We talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especlly those who are or who may become pregnant, and childrenen shouldavoit where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. Report these symptoms to your doctor. Tell your doctorbout all medical conditions and medications. Serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side fects include skin redness or irritation where applied, incread red blood cell count, common side fects include skin redness headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. Is your tv powered by coal . Natural gas . Nuclear . Or renewables like solar. And wind . Lets find out. This is where americas electricity comes from. A diversity of Energy Sources helps ensure the electricity we need is reliable. Take the energy quiz. Energy lives here. Cheryl as first reported on fox business, a key herbalife analyst is leaving to join a private equity firm with intentions of taking herbalife private. Charlie gasparino has exclusive details. We should be really clear on what we have confirmed and what we dont have confirmed. What we dont have confirmed is tim rageny, he was a da davidson analyst, one of the primary bulls on the stock is out. We know that, weve got that confirmed. What we what we hear from our sources is that hes joined this firm, a private equity firm this is what we hear that hes joined that firm. We have yet to get confirmation op that, and its the private equity firm that wants to take herbalife private. He wants to do an lbo or hes interested in buying herbalife. We know that. We know hes spoken with people on wall street about it. Weve been the first to report that he actually had some conversation with the big, i believe, Singapore Private equity the fund. Weve not been able to confirm it was them, but weve heard that from good sources. So thatst thats what propelling the stock today. The guy out, and we got it from good sources that hes going to steer it, which we have not gotten confirmed from mr. Raimey, but im getting it from a or very good source, and this is propelling the stock, that theres going to be a leverage buyout or some corporate action. Another thing thats in the weeds of speculation is that herbalife is going to do a big buyback. As you know, it was kind of interesting last week when we had carl icahn on how much hekg danced around the notion of buyback, lbo, he was incredibly cautious and circumspect about this cheryl you didnt let him off the hook. We kept asking but usually when youre that circumspect, somethings coming. I cant guarantee it, but it was interesting. We should also point out adding each more fuel to the speculation and to the stuff going on with herbalife is that one of the analysts, i guess the coauthor of bill ackmans herbalife short, he was the guy that was short who basically came out with the analyst that worked with ackman op the short meaning that, you know, a year ago he predicted it would go to zero at some point. It was a negative, and he was going short. Theres speculation, again, renewed speculation that hes out at potential per be,ing square. As you know, this hasnt within, you know, despite the fact that herbalife is off its highs recently, this has not been a good bet for mr. Ackman. Herbalife has gone from 30 be to whatever it was, 80. Its back down to 60, but it started at 30 when he started the short and, you know, so it hasnt been a great, a great investment for cheryl yet youve got billionaires arguing over herbalife. What is it about herbalife that creates this animosity between ackman and icahn . Thats a good question. I never thought id be talking as much about herbalife. We should point out mr. Demean has not returned calls, mr. Ackman, and neither has rubenstein and associates which is their pr firm which is usually quite responsive. They are not denied thato mr. Denine is out. Weve given them ample opportunity. My blackberry, i still dont see them getting back to me, and weve been asking them for the last half hour, 45 minutes. It sounds like hes out. Why he is, i cant tell you. I can just tell you the short has not done very well. Why are we talking about herbalife . You know, listen, i cover wall street. Its always fun to cover when big guys get involved, and when you see two opposite, very intelligent people, bill ackman, very intelligent on the negative side, carl icahn and billster ritz very intelligence on the Positive Side go at each other and to cover this blow by blow, it gives people an insight into how wall street works. Be youre an average investor, this is the stock you stay away from. [laughter] cheryl a stock i would buy. Unless you dont mind gambling, you know . Because this is crazy. Cheryl hey, well, its giving you fodder. Thank you very much, charlie. Nice to see you. Closing bell going to ring 31 minutes from now. It is getting bitterly cold again in much of the u. S. , so perhaps its time for a cruise. The ceo of Norwegian Cruise Lines going to take us inside the cruise vacation business and tell us how the industry is trying to prevent outbreaks, you know, illnesses on ships. Kind of a big story today. And robots could play a huge role in googles future, but the tech giant is adding new battlelines against apple. The latest on googles playbook coming up next. That looks exhausting. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Like being your own boss really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management count make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Cozy or cool . Meow or woof . Everything the way you wa it. Until om, its bedtime and your mattress a battleground of thwarted desire. 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When you think about it, isnt that what retirement should be, paying ourselves to do what we love . Cheryl some big analyst calls are making waves in the market today. Nicole petallides on the floor of the New York Stock Exchange with one of the big winners and one of the days losers. Nicole . Thats right. On a day where weve had back and fort action, were up eight points on the dow, but Cisco Systems is down 19 cents. That is worth more than threequart is of 1 . Now, Cisco Systems is low or or today, concerns about emerging markets and the exposure that Cisco Systems actually has. Jp morgan cut its rating to an underweight from a neutral and down graded the company and put a price target of there are 17 from its 21. And then im going to move on to merck. Merck got some positive comments from morgan stanley, they go from bull to bear. To a bull from the bear. And they put an overweight rating, they like what theyre doing with a r the cancer drug. Stock hit a new high and is the only dow component positive for 2014. Back to you. Cheryl all right, nicole, well see you in just a little bit. Dow up by six points. Volatile day today. Well, sickness on the high seas, a Royal Caribbean cruise was cut short after more than 600 passengers fell ill. There was a similar outwreak on a Norwegian Cruise Lines ship earlier this month. I had a chance to speak to the ceo Kevin Sheehan to discuss what these kind of events mean for the industry and how his company is trying to reassure customers. Take a listen. At norwegian, we have so many Different Things that we do. Our guests, when they come back on the ships, they wash their hands because a lot of times these are ships that may be visiting other countries anddu the beginning of the virus. So having them cleaning their hands and understanding how serious that is is a good start. And we have a whole wash shi program with our crew members singing and stuff to make it into a funexperience. And then, of course, as people come into our dining venues, they do that again. And its a constant reminder to our guests, and, of course, our crew have the utmost respect for all of the protocols that we have at Norwegian Cruise Line that prevent anything from happening on our ships. Cheryl okay, kevin, lets talk about project breakaway. Certainly, youre taking norwegian in a different direction than the competition in that theyre kind of having this price battle with tickets, but youre saying, no, im going to make this more of an onboard experience for passengers. Youve got aqua parks, hot tubs, adventure facilities. Is that where the industry you think is going or where the profits are going to come from, is making basically these ships, you know, floating end cot center, if you will . Epcot centers . Of our guests never want to get off the ship when we come into ports. This is a program we started with the Norwegian Epic three years ago and the breakaway which is a new york ship and very proud of what we were able to assemble. But be now as of today were launching another ship, the norwegian getaway, which is a miami version of the same sorts of things. So lots of fun stuff on the ships and the water park at the top of the ship thats never been done before. Theres five slides that are very exciting. Theyre not the oldfashioned slides of the old days, these are drop slides, walking the plank which is, you know, about 8 feet over the side of the ship, and just imagine when youre out in the ocean. Cheryl one of the ships, i youre partnered with bud light. You basically rented out the ship as a hoe fell for bud light. Inbev is taking over the entire ship for the super bowl. Youre not going to lose any money on this deal with budweiser . No, no, its a good deal for our company, but the bigger thing, it was a magnificent opportunity for us to showcase our brand, showcase what it is like to be norwegian, and you cant replace the value of that advertising and that reach of frequency with consumers at any advertising cost. Cheryl if you look at the business and what youve done, you actually have taken the company in a different direction. Again, youre not having those price wars with carnival, with Royal Caribbean. Are you concerned, though,รทo in 2014 that the economy doesnt come back around, the global economy, are you worried about kind of getting into that ticket price war with Royal Caribbean and also with carnival . I stand on our track record. We have 21 quarters of consecutive earnings growth, and weve gone from being last in the industry in pricing to first in the industry and first in the industry in operating margins, first in the industry in return on invested capital. Were very proud of everything weve done in the revenue. So if youve been able to go through the worst economic storm as we know from three years ago and oil prices, all of the industry events and the events in europe and the economy over there and some of the, you know, volcanic ash impacting our ships coming into europe and the tsunami in hawaii, and i could name another 20 things. Through every single one of those things, 21 quarters of growing this business and being proud of it. We have hard working crew members, were all one big team, and i just happen to be the steward who talks about it. 25,000 people who can stand up here and to as good a job as me. Cheryl youre charging a lot of extra fees, but your customers dont seem to be complaining. How did you do that, kevin . Yeah, so two things. Just so you know, about a year ago we went public, and we priced above our range at 19, and were up 90 since the ipo. As far as the onboard revenues, its really getting the communication out to to the guests. Its their choice. You can con on our ships and spend nothing and have a wonderful experience, or you can buy a package to go to a special restaurant every night. Cheryl and the passengers are paying extramkc for that, we shd mention. Thank you very much. Good to have you on the show, kevin. Take care, byebye. Cheryl all right. Well, last week liz claman was in davos at the World Economic forum speaking with some of the biggest players in the corporate world about society, politics and, of course, business. Shell be back tomorrow, but in case you missed anything, here is what is worth repeating. I have a very simple philosophy. You have a great strategy and you execute it well. The short term takes care of itself. So quarter to quarter you deliver if you build a great culture. In our case, you serve your customers well, and you run the business a lot of discipline. So its business as usual. My main focus really i feel theres a great sense of a comeback in the u. S. The economys picking up again. Specifically thats important to my Corporate Jet business, and i want to get a good feeling. Its really 2014 the year we see growth again. I feel quite upbeat about it. Its probably one of the greatest killers we have. How do you mention manage your own stress . Have you got the tools to do so . Did anybody teach you how . This has tremendous success. The threat of cybersecurity is absolutely real. Its an area where we dedicate a lot of resources, people, hours, monies to making sure that weve got the best testimonying. And technology. And, again, its not something you can rest on, because these Cyber Attacks continue to morph, and weve got to make sure that the things were doing to protect our clients and the information and the data stays cutting edge. Ive been hearing about [inaudible] for the last ten years, i must tell you. That will never happen. And i dont think its going to happen in 2014. I think most people are unaware of the steady progress we have made in lifting countries up. Now whether its china, brazil, mexico, most people live in middle income countries. And if we dedicate ourselves to helping out the ones that are solo income, that means generosity, we should be down to very few be,less than ten. Cheryl and once again, liz claman will be back tomorrow. Well, the closing bell is going to be ringing 17 minutes from now, and google wants a little Search Engine that could, its taking over the world one robot acquisition at a time. We have its latest purchase, but we do like watching video. Its just freaky. And the markets right now, you know, its interesting, were treading water, wondering if were going the slide further or rebound from last week. Really up and down right now. Only the dow is positive by eight points, by the way. Were going to tell you how to play this market either way as were going into the last 16 minutes. Anything could happen. Closing bell. Well be right back. Sometimes they just drop in. Vio. 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. Cheryl so google is on a tear, deepenig alliances and going on the acquisition trail. The tech giant has just signed two longterm patent deals, one with samsung and the other with Network Equipment maker erickson. All this as it continues its patent war with apple. Google also buying britains deep mining technologyings. They develop artificial intelligence, and a deal the Financial Times says is worth 500 million. Now, all this new testimonying from google glass to technology from google glass to fourlegged robots, selfdriving cars, has helped googles stock price to over 1,000 in the last few months. Down today but markets, we should say overall especially the nasdaq, are down today. Google down 20. Well, investors are facing some strong headwinds after the market pullback with this weeks fed meeting being a major concern. Our next guest, though, predicts the market will rally. And the key factor is, get this, the energy and oil market. Joining me now is jason rotman, before we get into your specific market thoughts, want to ask you about what overall were seeing today. We have a lot of volatility today. The vixx actually hitting levels we havent seen since early october, and were only in about the fourth week of january. What do you make of the volatility today . Well markets are all about momentum. I mean, the markets are about a battle of these, you know, shortterm kind of typically more momentumbased traders versus the longer term investors, you know, the funds, the pensionnb funds, the big my managers. And i think at some point today, obviously, the longerterm bigger money said, hey, wait a minute, this is still a growth environment. Interest rates are still low. We were up 0 last year. Were not going to 30 last year. We like buying, you know, buying the dips, so to speak, and thats what we saw this morning. Cheryl but that was very short lived because, certainly, we had again to the downside about 50 points, and then were popping back up. Okay, lets talk overall what youre expecting. I know the fed is a major story were going to be watching this week, but the fed is somewhat trapped in this tapering program. We expect ten billion. Do you think thats going to be a headline maker for the weeksome. It is very important. However, i kind of disagree that theyre trapped. I mean, we had janet yellen taking the fed. She in her previous congressional testimony and in her statements, i moon, she is i mean, she is like the queen of doves here. So i dont think were trapped. I think the ped is trying its darnedest to be marketfriendly. Theyre not 100 committed to ten billion every single meeting. They just said, hey, listen, we acknowledge that the economys growing, so wed like to taper, wed like to finish off the whole cycle this year, but well be flexible. Those are the tailwinds for the market cheryl i dont know, jason, the thing is, though, youve got this new fed, this transparent fed and as shes just now walking in to the scene, onto the scene, im not sure shes going to want to rock the boat initially. And one analyst this morning said, basically, its Like Hotel California by the eagles. You know, you can check out, but you can never leave. And thats kind of where they are right now. Theres not a lot they can do. Now the market at least is prepared for tapering. If they were to pull back on that, im not sure what would happen. I mean, you think a rally, i guess . Sure, of course. I mean, in this environment, you know, its all relative. In other words, albert einsteins right, its all relative. To a pause in the tapering cycle is like adding questioning e back in. I mean, thats the way traders thinking. If the fed pauses, i think the markets going to be very happy, and the fed doesnt even need to pause because overall were still in a growth environment. The whole bull cycle, in my view, is still young. Cheryl okay. Well, youre definitely bullish. I want to get to some of your picks because theyre very unique. The first is realty corporation. The stock is actually down 10. 5 . Real estate play. Love the real estate play overall. And i picked this one specifically because, again, i like value. I like buying low, and i think this is a buy on the dips type scenario. The things down 10 when the rest of the markets to the moon, and they have a great portfolio of incomeproducing assets. They have long leases, their tenants are very high quality. They have a great yield. I love dividends, so i think this is a winner on all fronts. Cheryl also atlas Energy Corporation and, obviously, this is a nat gas play which on a day when were lining our shoes with warmers exactly. The thing is natural gas is a fascinating topic to discuss because while i think crude oils headed lower which could provide another boost to stocks, natural gas trade is predicted to double at least over the next 25 years if not sooner, and i think theyre extremely well positioned to kind of explode with the explosion of natural gas. Cheryl ato, theres the ticker. Up about 25 over the last year, just looking at a 12month chart. And the last one is stratuses. Weve had people come on and talk about it as a pick, but why do you like it . 3d printing is fascinating, but is it a true investment play, do you think . I do. [laughter] i absolutely think its a true investment play. I mean, heres the way i look at investing in a nutshell because i know we dont have three hours, although i love it. If i had a billion dollars, what would i do with this money . I loved blackstone last year. If i could get a 3 billion from deutsche bank, i would be doing the same thing blackstone is. Stratus is one of the leaders in a completely revolutionary technology thats changing the whole manufacturing land scape of the world. I want to be long that. Cheryl all right, jason, ive got three seconds, not three hours. Thank you very much, sir, appreciate it. Thank you. Cheryl closing bells going to ring, weve got about six minutes to go. Will tim cook prove to be the apple of wall streets eye . Were going to find out in less than 30 minutes when the Company Reports earnings. David asman, he is in the studio ready to roll, after the bell coming up. 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Looks like the market will end to the downside. By the way, volume a lot less than expected on friday. On friday we had 4. 66 billion shares. Traded today, 3. 32. So significantly fewer shares are trading. Lets go to Nicole Petallides to get an idea what is happening. We should mention by the way caterpillar had blow away earnings are and they did very well up 5 . They added 30 . Such a big component to the dow, it wasnt for caterpillar it would be down another 30 points. It would be down 50 points. Caterpillar is a worth 30 dow points. Dow is weighted average and worth 30 of those dow points. It helped keep the dow positive territory when it was there. Good outlook, they cut costs, good news, up 6 . Cheryl were waiting for earnings from apple. How is the stock looking . The stock is slightly higher. It has been a winner over last 52 weeks. Well see how they did with the ipads and iphones. Now it is up five bucks. David herbalife kicking back to life. Up almost 40 in 52 weeks. There is buyout talks. Well see what happens. [closing bell ringing] david Charlie Gasparino keeping us abreast of that of. Bells are ringing on wall street. We have all negatives of the we were flirting with at least one of those indexes in the positive. That would have been the dow but towards the last half hour of trading it lost the steam there, despite not withstanding caterpillar earnings which continue to be very good. That stock is up over 5 . All of the indices are down. Look at nasdaq down. Small and midsized caps, cheryl, very much like emerging markets. Theyre getting hurt bad. Cheryl really quick to the point, david. Talking about low volume. That would explain incredible volatility we had. Vix hitting highs not seen since october. Volume story. David. Thanks. Front page headlines for you. Economic news coming in as well. New home sales dropped more than
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