Also, refinancing activity is very high right now. As housing prices have increased, thats allowed more people to qualify to refinance their loans. Reporter but Goldman Sachs is a different story. It deals almost exclusively with institutions, not consumers. Its Fourth QuarterEarnings Growth came from a surge in Investment Banking revenues thanks to gains in stock and bond underwriting. Goldman earned 5. 60 a share in the period, compared to a 1. 84 a year ago. That was also better than expected. Big banks arent the only financials expected to do well in the Fourth Quarter. The Financial Sector as a whole is expected to post an earnings gain of 11. 5 , making it the best performing group for the Fourth Quarter. But that doesnt necessarily mean nows a good time to buy most big bank stocks. Theres a couple names out there in the regionals that look attractive. But for the most part, most of the companies are trading very close to our fair value. Reporter theres another trend to watch for this earnings season cost cutting. Banks have been cutting workers and compensation in an effort to shore up earnings. Erika miller, n. B. R. , new york. Tom well have more banking coverage tomorrow with earnings from citigroup and bank of america, and well get analysis from s. N. L. Financials nancy bush. Susie also today, ebay reporting Solid Earnings after the market close. This momentum going to continue in 2013 . Certainly. Weve started to see see ebay with their set of apps for mobile devices, start to pick up an substantial number of new users, about four million, over the course of 2012. Certainly you saw about 13 billion worth of products being sold through these mobile acts. So it certainly has had a Significant Impact on the companys results in 2012. This is a trend well expect to continue going into 2013. Susie i was going to ask you, you expect that the numbers were Something Like up 120 in mobile commerce in 2012. How much more can that grow, and how important is that for ebay . Well, certainly they can grow substantially in that we can look at what the numbers are like across the broader technology landscape, for how much it is people are accessing the internet through mobile devices, and that has been very substantial. But for ebay, the impact on this on the Holiday Shopping season, was on black monday, the monday after thanksgiving, you had volumes through ebays mobile app were up three times, yearoveryear, and through paypal, their payment, the mobile app there so volumes up two times, just for that one day alone. These numbers were better than the 120 increase discussed for the year as a whole. And certainly auger for n] jn you could see in the course of 2013. Susie what does all of this mean for ebay stock . In 2012 it had a terrific year, the shares were up 75 . After this earnings report, the shares were up about 1 in afterhours trading. What is your ranking on the stock . Our ranking on the stock is it is trading pretty much at a premium to its growth rate. We havent seen anything coming out of guidance from the company to say theyre raising that growth rate ap appreciationably. And were more interested in the stock if it pulls back a little. We think over the next 12 months, the stock will get to 58, but we believe if the stock pulls back to 50 before making a move to 52, up to 58. Susie let me ask you about apple. People came back into the stock, closing above the 500 level again. The last time you and i talked, you had a target of 750 on apple. How do you feel about it today . And have you changed your target . We stand by the 750 target. We think the company, which will come out with earnings after the close on thursday, january 23rd, will probably put up a strong set of numbers. The a number of factors in the Fourth Quarter 2013 that prompted the selloff from the high after the iphone launch, in some cases were due to the expected changes in the Capital Gains tax, which didnt come to fruition, but nevertheless, prudent visitorinvestors sold the stock. And from that standpoint, the stock attracts current levels, especially out of earnings. Susie and earnings are coming out next week, and well be tracking that. And well see how the stock does after that. Thanks, david, david garrity. Tom investors sorting through a slew of Economic Data today. U. S. Industrial production hit its highest point in more than four years in december, while consumer prices, were flat last month, pointing to muted inflation pressures. Still, the u. S. Major averages ended mixed the dow off 23 points, pulled lower by weakness in boeing shares, the nasdaq rose six, the s p up just a fraction. Susie and the federal reserves latest snapshot of the u. S. Economy isnt picture perfect, but it is positive. Todays beige book report showed signs of solid Overall Economic growth. Each of the feds 12 districts showed either moderate or modest growth, steady or expanding real estate activity, and some growth in Consumer Spending from december through the first week of january. But the fed noted job Market Conditions didnt change much. One Reason Companies are cautious about hiring, is they are worried about fiscal uncertainty in the u. S. And that uncertainty is growing as some republicans in washington argue for a narrow definition of what it means for the government to default. Skipping payments on government bonds would be a default they say. But skipping payments for other Government Services wouldnt be. This debate could have real consequences, as darren gersh explains. Reporter next month, the u. S. Government will owe 38 billion in Interest Payments on the debt its sold to investors here and overseas. But the u. S. Government will take in about 210 billion in tax revenues in february. A vocal minority in washington now argues those figures show it is possible for the u. S. Government to avoid defaulting on its debts even if the debt ceiling is not raised. And there is no reason for the government to default unless president obama and the democrats want us to. Its just a scare tactic to continue the spending that they dont want to address. Thats why they keep saying, oh, were going to default. Were going to default. Were going to default. Its just not true. Reporter but talk like that scares many budget analysts in washington. They argue markets will see a failure by the unit ed states to pay any of its bills as a threat it could one day stop paying some or all of its bills, including interest on its debt. If we pay the chinese the interest we owe them on their sovereign debt holdings, on time and in full, but we dont pay Social Security recipients or Armed Services personnel their salaries, is that a default . Well, of course it is. Reporter a recent inspector generals report found the treasury doesnt have the Computer Systems in prioritize some payments over others. So if the treasury runs short of cash, it would most likely delay writing checks until it collects enough in tax revenues to avoid going into the red. But that means unpaid bills would pile up and take longer and longer to be paid. Its almost a reverse ponzi scheme where you just get worse and worse and at some point, at some point and were working on it right now, you wont be able to pay the interest on the national debt, because you wont have enough cash coming in. Reporter its hard to tell how much of the tough talk about default is real and how much is a bargaining strategy. A u. S. Default is still considered highly unlikable, though no longer impossible. Darren gersh, n. B. R. , washington. Susie from bentley to cadillac to b. M. W. , how the comeback in the u. S. Economy, is fueling new interest in luxury cars. Tom as we mentioned earlier consumer inflation in december was tame, but food prices were up for the seventh straight month. And the higher prices come as pay checks shrink by two percent thanks to the payroll tax returning to its previous level. But chipotle and Dunkin Donuts, two very different restaurants, are opening dozens of new locations this year. Continuing to expand. Stevestephen anderson joins us from the new yor new york stock exchange. Mexican grills and chipotles hurt by higher food costs. A third of the sales will be eaten formidable head wind in the next several quarters. Tom what about its foot point . It opened 60 stores. Do you expect that pace to continuement. Chipotle is opening new units, about 13 new growth rate. It is best in class, not just in the casual segment, but across all the industry segments, chipotle, far and away the leader. We expect that to continue. On top of that, they are doing so without adding any new debt. Theyre Generating Positive free cash flow. Tom i want to ask you about growth in Dunkin Donuts. First im absolutely a buyer. The topline growth trend on same restaurant sales, traffic is actually the same for the last couple of quarters. That, we think, should mitigate any concerns that consumers are going to the competition that is lower priced. Tom lets move from burritos to doughnuts, and coffee. Dunkin donuts announcing an expansion into california. 150 stores by the end of the decade. The share price rallying significantly. And why california and why now . California had been a market that Dunkin Donuts had competed into the 1990s. We think the second go around is focused on beverages. That is something in the prior generation, Dunkin Donuts had not done in california. We do think it will succeed in california,9t as it has in other new markets it has entered, where it is the same as the legacy markets in the northeast. Tom steve, you mentioned how chipotle can pay for its expansion out of earnings, and can Dunkin Donuts afford it . It is really up to the franchisee. The good news for dunkin is the cash on cash returns is among the best in the industry. That enables the franchise to expand. Tom cream or sugar for you, steve . I take the splenda. Tom its noted. Do you own any position in the two stocks . Neither. Tom hes a coffee drinker. Stephen anderson, miller tabak. Susie regulators say Pom Wonderful products, may not be as wonderful as marketers made them out to be. The federal trade commission is barring the maker of pomegranate juice and tea from making unsupported Health Claims about its products, like the ability to treat Heart Disease and prostate cancer. The f. T. C. First filed a complaint, two years ago, alleging that Pom Wonderful used deceptive advertising. Pom says it will appeal. 4we automakers are placing big bets on the luxury Vehicle Market this year. As Ruben Ramirez reports tonight, theyre hoping that as u. S. Economic recovery continues, more drivers will upgrade what they drive. Reporter automakers are optimistic the u. S. Economy may be turning a corner and that in turn will spur consumers to spend a little extra on their next car. Luxury seems to be on the upswing because people i think economically are on the upswing. When theres a little more confidence and a little more satisfaction in where the future is going to go, people treat themselves and they buy luxury cars. Reporter over the last three years, u. S. Luxury car sales have grown 25 , sales of german brands have surged 50 . B. M. W. Has been the leader in the luxury segment over the past two years. This week, the german car maker unveiled seven new models, looking to fill in gaps in its product portfolio. The ongoing challenge is how do we bring value to the u. S. Segment. The luxury market has become incredibly competitive when the market contracted. Reporter the competition may be heating up. Cadillacs ats took home car of the year honors this week and the company unveiled its electric, the cadillac elr. The americans are making good inroads in the luxury segment so the cadillac ats is important because it probobably the first legitimate bmw 3 series contendar that cadillac has had in decades. Reporter volkswagen is also firing on all cylinders, 2012 was its best year since the early 70s. While its known for the beetle, it also owns a stable of luxury nameplates. Weve got bugatti, bentley, lamborghini, porsche now as well as audi so each of these brands have got plans for continued growth. And this isnt just about short term growth. Its about putting in the fundamentals that drive that sustained growth. Reporter ultraluxury buyers, theres the new Bentley Continental gts, its first convertible, debuting on u. S. Shores this summer with a stickerprice of a mere 240,000. The u. S. Is still our biggest market. Its our biggest market in the world and its the biggest for convertibles. So clearly, we are launching this car here to show the importance america has in terms of sales for u. S. Reporter whether its a british, german or american luxury brand, all see the their biggest Sales Opportunities here in the u. S. Ruben ramirez, n. B. R. , new york. Ordered all boeing 787 dreamliners grounded until further safety checks. The decision comes after another Emergency Landing for a boeing 787 dreamliner. Tom, this one way all nippon ai airways. They detected a burning smell, and they decided to ground all their 787s. This centur is the second fire problem involving the boeings 787 lith thian batteries. They were counting on the success of the dreamliner to being a real boost to business, but since its launch, it has had all of these problems. Investors have been bailing out of the stock. It lost another 3 today. It closed at 74. It was down 2. 60. It has been really a bumpy ride, nightmarish for boeing. Tom lots of delays in getting this plane to market. Lots of trouble showing up when it is in the market. And the f. A. A. Issuing the warning, affecting u. S. Planes for the dreamliner until they can demonstrate that the batteries are safe. Well have more on boeings share price coming up in a moment. Lets get started with tonights market focus. Tom for the Third Session in a row it was a mixed finish for the major indices, as they continue trading in very narrow ranges. The s p 500 illustrates the lack of conviction by both buyers and sellers. The index hit its low for the session in the first 15 minutes, but those losses were cut as we saw the Strong Industrial production data. The index wavered in the final hour to end higher by a fraction. Volume on the big board was 597 million shares. Almost 1. 7 billion traded on the nasdaq. Again we saw the Telecom Sector weigh on the market, falling 1. 2 . But the Technology Sector rebounded some from its recent selling pressure to end higher by 0. 7 today. Boeing was back in focus with more problems for its dreamliner 787. A plane flown by all Nippon Airways in japan may an Emergency Landing after alarms were set off indicating smoke. The plane landed safely but three passengers had minor injuries from using evacuation slides. Both nippon and Japan Airlines have grounded their dreamliners. So almost half of the 50 in fleets are not flying. The concerns center around the planes auxiliary batteries. The problems come as boeings Engineers Union agreed to extend parts of its existing contract to concentrate on the comprehensive safety review of the plane. Shares have been seesawing as the dreamliner news has come out over the past several trading sessions. Today the stock fell 3. 4 on heavy volume. It is about 20 cents above last weeks low. The selling pressure of Big Phone Companies continued. Despite selling a Record Number of smartphones in the Fourth Quarter, some analysts are concerned all those smart phones, with their subsidies could hurt quarterly profit margins. Verizon fell another 1. 1 to a fresh two month low. A. T. T. Dropped another 1. 5 to its lowest price since new years eve. Investment firm Sanford Bernstein notes the companies were successful in delaying customers from upgrading, but thinks those efforts waned in the holidays. The worry is customers upgrades come with one time subsidy costs, hurting earnings. After casting a shadow over technology, apple shares found buyers today. The stock rebounded from an 11 month low to gain 4. 1 , closing back over 500 per share. Morgan stanley dismissed rumors and worries over iphone sales. Apple earnings for the holiday period will be out a week from tonight. In the financial industry, while there was plenty of focus on j. P. Morgan and Goldman Sachs, which we reported on earlier, two socalled trust banks also were in focus. Bank of new york mellon fell 2. 8 . Shares were at a 52 week high a week and a half go. While quarterly profits as in as expected, expenses were higher than expected thanks to higher compensation and services costs. Higher costs also hit shares of northern trust. Its stock fell 5. 7 . Both banks reported big drops in income from Foreign Exchange currency, driven down by a lack of currency volatility. But overall revenues were up at both banks. President obama unveiled a set of guncontrol measures today that included 23 executive orders signed today. He also called on congress to approve universal background checks and ban military style assault weapons. But the stocks of gunmakers rallied. Smith and wesson gained 5. 7 . Sturm and ruger was up 5 . Previous talk of new gun control has led to higher gun sales in the meantime. Three of the five most actively traded Exchange Traded products were lower with the s p 500 volatility note dropped 2. 1 . Volatility has fallen as the stock indices make small moves. And thats tonights market focus. Susie when a company decides to go public there is often anxiety about facing more scrutiny. But there are also plenty of positives like the potential to raise a lot of cash, and the opportunity to grow a budding business. In tonights commentary, inc editorinchief Eric Schurenberg previews whats on the horizon for i. P. O. s in 2013. At inc, we follow hundreds of companies that are goodlooking candidates for an i. P. O. Here are three favorites that havent announced an i. P. O. Yet, but are companies youll want to know about. The first is square, started by one of the cofounders of twitter. Its now the leader in the burgeoning field of mobile payments, allowing merchants to process credit cards at a kind of mobile register and letting customers pay using their phone. The company just became starbucks mobile payments processor. If square keeps locking up deals like that, someones going to get rich. The second is evernote, a suite of online programs that let you store anything you want to remember and then retrieve it effortlessly. People who use evernote swear it will one day be a household name. The company is valued at over 1 billion and the c. E. O. Says an i. P. O. Is inevitable. Keep an eye out. Finally, theres zumba fitness. The latin dance craze already is a household name. Whats less well known is what a money machine it is. In addition to the exercise classes, zumba has music and a line of clothing that already does an estimated 100 million in sales. Is it going public . Zumbas c. E. O. Says thats not on the radar now but it seems obvious that a company that makes clients so happy could one day do the same for shareholders. Susie great ideas arent limited to startups. Innovation is one of the keys to longevity for an established business. Got a bright idea . Visit www. Nbr. Com for tips on how to pitch an idea to your company. Just click on the nbru tab. Tom tomorrow on n. B. R. Putting shovels in the ground, an update on the housing recovery, with the latest data on home starts. And resolving to help your kids learn about money, its tomorrows kids cash. Tom and finally tonight, you susie thats nightly Business Report for wednesday, january 16. Have a great evening everyone, and you too tom. Tom goodnight susie, well see you online at www. Nbr. Com and back here tomorrow night. Captioning sponsored by wpbt captioned by Media Access Group at wgbh access. Wgbh. Org tonight on quest some people oppose Nuclear Energy for reasons of cost and safety. But others say that we cant reduce Greenhouse Gas emissions if nuclear isnt part of the equation. Quest meets an engineer whos striving to make Nuclear Energy safer. And every year, more than 300 species of birds migrate through the bay area along the pacific flyway. What can shifts in the birds flight paths tell us about our environment . Support for quest is provided by the s. D. Bechtel, jr. Foundation the david b. Gold foundation the dirk and Charlene Kabcenell foundation the Vadasz Family Foundation the Wyncote Foundation the amgen foundation