two feet. boston may top attitude feet instead of three. more than 7000 flights have been canceled greater the travel ban has been lifted along with several neighboring counties. policymakers will start their meeting today. they are not expected to raise interest rates. inflation slows down. the yield is approaching a record low. a number of earnings reports to talk about. caterpillar came up short. the maker of heavy construction equipment missed wall street estimates. at procter & gamble, it fell 31%. the stronger hurt sales. fourth quarter your earnings -- earnings beat expectations at pfizer. the new prime minister of greece is filling out his cabinet. it should not be a fries -- a surprise that he picked someone who is a critic of the greek a lot. -- a lot. bob kraft has gone on the attack. he said if the nfl finds his team did nothing wrong the league should apologize to him. the nfl probe is focusing on a locker room attendant. this is according to fox sports. bill belichick said the story is done. +++ it's hard not to talk about the weather. this is a picture right now of what is going on in new york. the streets are empty. they are getting well paid. the snow that blew through the northeast is not going to drop as much snow as forecasters had anticipated. they are downgrading this to a winter storm warning from a blizzard. train service and travel bans, they are opening up again. the governor quoted out that the travel ban in new york city is listed at 7:30 a.m. matt miller was able to make his way into new york. he came in his ford truck. it looks like he was ready to go ice fishing. also with me is scott kern. he lives near here. you are able to -- >> i'm local. you were able to make it here in your ford f1 50? >> it has 35 inch wheels. i was well prepared. most new yorkers are poorly prepared for this. it happens every winter. this should not be a surprise. it snows in the winter. it's not that big of a deal. six inches with that we got overnight. that is not very much know. they still haven't managed to clear the roads where i live in westchester. everything is clear and dry out there already. i guess the travel ban has been lifted. people will start driving. a lot of people have already taken off work. all of train lines are still closed. bus lines are still closed. maybe this will just be a snow day where people can do some shopping? can we turn around to get a picture of my truck. i have concerns about zombie attacks and doomsday prepping. i bought this big behemoth. it works very well in the snow. a lot of people are driving around in two wheel drive cars with summer tires. that is inadvisable. i got a chance to go out. >> i'm sure you were being a very safe and having a good time in that getup. i was doing very safe donuts. >> he is using it for work. it is tax-deductible. >> we were all coming in and walking. we were figuring out ways to hitch a ride with matt. uber in this time of need was down. this is what we saw on all of our phones this morning. uber service was not available. >> it's interesting. they are known as the little bit evil happening. part of it was the surge. they are making donations to the red cross. they are behaving themselves. i think they are growing up as a company. >> what does that tell you? when people need their cars suddenly they are not available. is that a hole in their business model? >> yesterday, all of the services i use everyone said we can't handle this load. the blah zero shutdown subways. in hindsight, it was more than it needed to happen. but it was safe. it's understandable. i get to look at lexington at 1:00 in the morning and it was empty. you never see that. the mayor said everybody get someplace. i think uber would not have had any business. we will live. >> hang on. matt, inc. you so much. matt miller is going to get back in his truck. if you need a ride, just call matt. >> i will come pick you up. >> back to some corporate news, shares of microsoft are dropping. they are down almost 8%. they delivered a mixed bag for second-quarter results. one bright spot was the growth in cloud-based services. is it too little or too late? he is developing to unite devices and workflow. his next egg leap in computing technology is a new gadget that brings high death holograms to life. can they find growth in wearable tech? cory johnson joins us from san francisco. he was there when those numbers broke. what is driving down microsoft? is it the business licensing revenue? is it the commercial software sales? >> i think it's a dramatic change from a pc driven company to a cloud centered company. windows 10 is going to be a core offering. the price of windows 10 is going to be zero for the first year. what we see from microsoft as they are going to be drawn out in getting revenues from places where they are trying to grow. it's going to be free on ios devices -- tablets and phones like the ipad. it's going to be offered on devices that are nine inches or smaller. it will be free to the other phone makers. when you give it away, it hurts your revenue and profits. we see that from the guidance they gave us. >> no surprise. you give a lot of price cuts on these products, you are going to take a hit on the bottom line. scott, you don't think about microsoft? >> as a company, they are irrelevant. i run a tech company and an internet company. we think about apple and facebook and google. we don't produce our products for windows phone. we do android. there's not enough of a market. microsoft is 30 years old. they are acting like a startup. google gave away at first. facebook did not have ads for years. microsoft has no choice. if they are successful candidate unite all of their products in the cloud, which is different? can we compete with gmail with products that are free from the competition? when you look at the apple ecosystem, soon they will have a watch. they talk so brilliantly together. if i were microsoft i would change the name of the company to xbox. do you really want microsoft? it shows how quickly the industry moves. >> they are right under microsoft. we did not get to talk about this yesterday, the headlines that microsoft makes on other products like thehol holo lens. >> i think they want to show that they are on a cutting edge of innovation. facebook got so much attention for their acquisition of oculist. they have success with things that don't interface with the average consumer or business user. the problem is they are facing a new kind of competition. they are not competing with the old world of technology. they are competing with amazon. they are happy to cut prices many times on a monthly or faster basis. microsoft 365, they are trying to go up against amazon. they are having a much lower margin. >> cori, stay with me. we're going to talk about melissa meyer. what will she do with that big $40 billion stake in alibaba? it's so much money to do so much with. you are looking at the streets of manhattan right now. the travel ban has been lifted. the subway and rail services will begin running again at 9:00. you can get to work in just under an hour. ♪ >> yahoo! ceo marissa mayer, she promises to use this occasion to talk about her plans for yahoos state in ali baba. can she unload this without incurring a tax healthy? that's -- tax penalty? they are valued at $48 billion. still with me is cory johnson in san francisco. my guest is scott kernan. layout for us the possible options that marissa mayer has in offloading the stake -- stock. >> there are a zillion options. they have in getting the advice of anybody. people walk up to him and tell him. every investment bank is been banging on his door. we are likely to see some sort of spin off into another entity. that may involve softbank japan. it's hard to know what they are going to do. there are so many options on the table. the market believes there is going to be a tax healthy. if you believe that stake is worth $40 billion, the company's value minus the cash on hand is just $35 billion. the market believes that yahoo! is worthless. there is an assumption of some advantage anyway. >> what i do want to pin down, there is john malone who is famous for avoiding taxes. he usually takes some money and spins it off into a separate company and then borrows off of those assets. he is able to avoid taxes this way. the only way that he can understand. then you have the warned buffett way. -- warren buffett way. should she do either? should she do something else? >> i am not a tax guide. we get to talk about how we don't give the government money legally. having grown up in the cable business malone is a genius at this kind of restructuring. i have to assume there are a half dozen different ways that this can be restructured. to me the fundamental question is the long-term value of the company. wall street loves the moment unfortunately. give us the cash in some way. i think that they made a really of investment and marissa mayer gets that benefit. if you are an apple and you have so much cash and we keep inventing new products, yahoo! can do more. that is the fascination. since i am a company builder and on a cash is tribute or i think she has opportunities. she did purchases. if it were me, i would be at the top of their list. by young companies that can benefit. there are two kinds of companies out there. you get your 6%. today, they can build inside. that has been tough for them. it's hard to invent. i think there is a wealth of young companies like ours that the yahoo! firehose is applied to companies and they take off. you need to market whether you like it or not. our dream is to create a social commerce company that does not need to market. we have some of those qualities. you have companies that take off all by themselves. those are the instagram's. we are going to see three or four internet companies advertise on the super bowl. yahoo! can pick up a dozen a dreamy small companies and if three or four hit, that would be better. >> it's almost like a venture capital company. >> they have the advantage over every venture capital company. they have a huge amount of traffic that they can point. they can pick up the youngish company. >> hang on. >> cory johnson thank you so much. he is the bloomberg west editor at large. scott is staying with me through the hour. we are staying on a weather watch. rail services back online at 9:00. ♪ >> good morning. these are our top it's of company news. caterpillar forecast sales and profit that missed estimates. there is less demand because of falling commodity prices. millions of people could not get on facebook. the outage affected users in asia europe, and africa. instagram was also out. facebook was able to restore service. a technical error caused the problem. first-quarter profits fell 4% in europe's largest engineering company. this used to be the prized performer. profits fell 27%. scott is staying with me. we did not get to talk about apple in the last segment. they are reporting earnings after the bell today. there are some questions. i want to bring up some topics that people will what to hear from tim cook. they want to hear how iphone 6 sales are compared to iphone 6 plus. why is this significant? >> i am looking forward to the iphone 6 minus coming up. i would like it if it were the size of a five. steve jobs was a genius. he made it the right size. i think apple had to go bigger. my sense is the six plus is 25%. it's just too big. >> that's the book on the iphone. >> i don't know that that matters except if the six plus was successful, that would impinge on the minis. i guess people are curious about that. my curiosity is the watch. i spent time with one of my engineers last night. we are going to release a watch app as soon as we can. i think it's interesting. i believe in the watch. the iphone is not really a phone. i think the watch will be similar. it will unleash tremendous new opportunities. i don't personally like to wear stuff. people do. it's a good watch and it looks good and it's going to do 95% other interesting stuff. we have figured out how you can sit there on your watch and buy from a watch. the iphone put apps front and center because we spend 80% of our action on the phone. it's there and it's ever present. the watch is more present especially for women. i'm excited by it. it's a demonstration once again where apple is an amazing company. microsoft is trying to be cool, that's a tough one. >> i think we've got weather with us right now. they want to give us an update on the storm. the storm seems to be dissipating at this point. i want to bring in heather waldman. >> thanks very much. it is only just beginning for others. this is the radar on the east coast. we have snow showers across pennsylvania. this is where the height of the storm is. you can see those deeper blues. that is representative of some very heavy snow. we are talking about visibility is near zero. and a lot of these places, wind gusts are 35 miles per hour. even though the snow has not been that heavy in new york lately, it's getting blown around quite a bit. visibility is low. you can still have blizzard conditions even if it's not snowing. real temperatures over the last hour nine below in burlington. it's like 21 below in portland. it's dangerous to be outside in these areas. there is a travel ban for much of massachusetts and connecticut. this is what we are looking at for the rest of the day. a big patch of i-95 is being affected. it's still going to be a rough afternoon with whiteouts and power outages. >> the traffic right now, what are you hearing about traffic? >> traffic has been brought to a standstill and rightfully so. the wind and blowing snow is not safe to the outside. thousands of flights of been canceled. things are going to be backed up for a couple of days. >> thank you so much. we are waiting on durable goods numbers. there may be some delay in the data. we are going to look on these numbers. we will bring you the durable goods numbers in a few minutes on "in the loop.". >> durable goods numbers are finally out. they are down 3.4%. scarlet fu has a breakdown of the numbers. >> these are unexpected declines. a drop of 3.4% when they were looking for an increase, the prior month numbers were advised as lower than before. the previous drop was revised to a decline. stock index futures were lower before this number came out. if you come to my monitor, i can show you what happened. we headed to our session lows. the dow, the s&p, the nasdaq they all are moving in tandem together to their worst levels of the early morning. we sought some disappointing earnings from microsoft. the ten-year yield is at the lowest part of the session. earlier, and fell to 1.76. we are seeing some drastic reactions in the markets. >> it's scary to see the red across the board and a big decline. thank you so much. this is not a good snapshot of the u.s. economy i are above goods. these are other tech stories. we are going to get a sense of how those new apple products it over the holidays. apple reports quarterly earnings today. this will be the first indicator of how the larger screen iphones performed. tim cook is predicting this will be their best order ever. will he deliver? they will -- ibm is cutting one fourth of its job force. it will affect several thousand people. google will bring its internet service to four new cities according to the wall street journal. google fiber will be launched in atlanta, charlotte raleigh, nashville tennessee. they offer an internet connection that is 10 times faster than the average one. much more ahead, we will look at what is moving and shaking at the sundance film festival. a producer of many a cad winning films -- academy award winning films will join us next. ♪ >> you saw this at the detroit auto show. this will likely have some ripple effects in the commodities market. this is palladium. as global car sales rise demand for palladium will exceed supplies for a fourth consecutive year. joining us is the head of global commodities research. he did some research on the demand for palladium. is that going to be an outlier? >> it's one of the benefits from oil price reduction. more car sales, bigger cars more gasoline cars. it's starting to reverse the trend to hybrid vehicles. palladium goes into these cars. we are seeing some demand growth there. >> the metal has been hit significantly. >> the key thing done aside from the effect on inflation expectations has been to move costs down. they are very oil intensive in the way that they are mind. ed. we see the top and fall by 20 dollars a pound. we are trying to get rid of the excess supply we have across commodity markets. >> we are seeing a graph here. aluminum, iron ore, oil costs are significant for those producers. they are going to benefit from having their cost reduced by so much. you are saying that the cheaper it is for them to news, the more supply goes on to the market and that will depress those prices. it means that the margin it produces they don't get shaken out at all either. >> the prices have to work hard to shake them out. everyone is benefiting from the oil price fall. these metals prices are fading to invoke supply responses. metal price expectations continue to be lower. >> white won't they cut back and reduce some of that excess supply? >> there are different strategies there. most of the larger players say we have the lowest cost asset, why should we cut? they are trying to get more players with debt on the market sheet. they are going to keep production as hard as they can in the coming months. they are exceeding supply expectations over the air. >> thank you so much for joining us. another fallout from what is going on in oil prices. there's a major fallout from what we just saw a few moments ago. durable goods are down 3%. that is hitting equity futures big-time. we are looking to see a big loss at the open today. i want to get to scarlet fu. >> you can earn earnings for some of this. they are -- there are probably not a lot of people out there trading just yet. people are just getting into the office with the travel ban lifted. microsoft was reported yesterday. they had a disappointing earnings report. that stronger dollar is going to be a theme across all of the blue chips. if you look at where the stock is trading now, it's below the 200 day average. jpmorgan was downgraded as well. the fourth quarter numbers for caterpillar disappointed. this -- they make big earthmoving equipment. you sought ucf numbers. we are seeing that play out along the big pharmaceutical companies. pfizer will see a drop in sales this year. proctor and gamble had 67% of its sales from overseas. ditto for bristol meyer. i want to point out a couple of things. yelp is getting an upgrade from raymond james. corning also reports core earnings up. it does them -- have some hedges. parker hannifin says adjusted earnings will be analyst estimates. it rates its full-year profit forecast. >> at least some green. >> thank you. much more ahead, the coke brothers are playing big in 2016. how much they will pump into the presidential race. we have today's big number 40. we are talking content and movies at the sundance the vessel. we will talk to john sloss the producer behind "boyhood." ♪ this week, hollywood executives are at the sundance vessel. studios are feeling the pressure from rivals like amazon and netflix. it's really netflix. is this a game changer for the movie industry? joining us from sundance is john sloss. he is the executive producer of several films. most recently, "boyhood." he has financed "napoleon dynamite." joining us also is scott. start with what you have seen. when i am reading or hearing from sundance is that netflix is one of the big game changers there. >> i was in the late negotiating session. >> ok. is that were calling it now? >> you had it right. >> netflix premiered one of the first films at sundance? netflix has become a player at one dance. >> a major player. >> tell us more about that. >> it's like the wild west these days. money can come from anywhere. the notion of six studios has exploded. there are now about 50 buyers when they used to be 12. the idea of video on demand buying directly is not unusual it's become the norm here. >> it has become the norm. it's incredible. you have been in this industry before. to see netflix on -- to see netflix on, they have signed a deal with adam sandler. they are going to do another sequel to crash entire in dragon. -- crouching tiger hidden dragon. >> they have the woody allen deal. it's great for the consumer. it's a major disruption. the distributors are all fighting. that's good news. whether it's netflix, it changes everything about cable and over-the-top. >> inputs pressure on the major studios. >> as i was chatting with josh the majors don't -- sundance is not their thing. with blast was big at sundance but it's only made $10 million. it's a fantastic movie. sundance is not the major. you will see the fox searchlight , the subsidiary brands. sony classics. they are out there buying. they are both competing with netflix netflix is an aftermarket also. as you look at any of these motion pictures, look at the four or five windows and international. it's good for the independent. you need an dependent against hollywood is into franchises. big stars are playing in these independent movies. you are seeing a shakeup of many things. the franchises are on one side and the new distribution channels are on the other. netflix is a direct competitor with showtime. it's a new world and it's exciting. >> tell me what you have seen so far. what have you seen at sundance the caliber of the movies. you been very good picking the hits. what you seem you think is going to break out? >> i come here to sell movies. i'm at a disadvantage. he has a voice. >> you pick better than i do. >> i don't get to watch other people's movies while i am here. it's been a good year. it is a little bit more of a sellers market these days. >> how different is it this year than it was in years past? >> there is more money spent this year than there was in the last years and it looks very similar to how it always is. >> i can imagine this being a sellers market. it drives home the point that content is king. >> there are more buyers because overnight these services -- you would have never thought of amazon three years ago. the idea of netflix doing originals or buying movies, it creates an ability for distribution without the former gate eberst area it opens up the market. this is the biggest opening of the supply-side that i can remember in my career. >> will it change the way movies are debuted? there won't be a need for a sundance anymore? >> "the interview" was so interesting because it was forced to go into internet -- alternate distribution. it was an interesting experiment. i love disruption and change creates opportunity if you are thinking ahead area this is a great time in the independent music -- movie business. >> is a great time to be a creator. john sloss, we hope you take care of your voice. thank you for making it up this early in the morning for us. we are staying on the markets this morning. capital goods drop in december for the fourth month in that is helping drag down users. you can see we are pretty deep in the red right now. more economic numbers are on the radar today. those are the housing numbers. robert shiller will be joining us immediately after. ♪ >> welcome back to "in the loop." futures indicate stocks will be much lower at the opening. microsoft and caterpillar reported earnings that were disappointing. remember those numbers are usually volatile. your escaped the worst of the weather. maine and massachusetts may not be so lucky. it done only about six inches of snow on manhattan, less than the two feet expected. boston ended up with two feet of snow and maine is still a state of emergency. air travel is at a standstill. there is work of another government intelligence gathering program. there is a database tracking vehicles in real time. the primary goal is to fight drug trafficking. it's being used to have her vehicles used in other crimes. we are getting another set of economic numbers. the home price index is just out. for the month on month numbers up 0.74%. that is slightly higher than what economist had estimated. scarlet fu has the breakdown of these numbers are in >> it is a slowdown from the previous month. if you look at it year-over-year, home prices rose 4.3% for that. that is a slowdown from 4.5% in october. we are seeing home prices gain. that is keeping pace with the previous months number. in terms of impact on the market we are seeing them hold near their session winds. i have to reiterate that we have thin volume. we talked about how maine and boston are feeling the worst of the storm. they may not be spared the worst. in new york, people are making their ways into the office. you are not getting a lot of volume. there is probably one side of the trade. you are seeing a lot of declines in some big companies that reported earnings. things may trainer out in the afternoon as more people make their way in. >> scarlet, thank you so much. i want to take a deeper dive into the housing numbers and look at where the market is headed. let's bring in robert shiller. dr. shiller, i think people in these numbers and it's easy to discount. it's not a trend. so far, there is a lot of concern about the housing data showing a shaky market. it's not going to accelerate. the fed is starting the policy meeting today. they are going to be raising interest rates in the summer. his housing in danger of stagnating? >> danger is a strong word. there are many dangers that we face. that is not one of them. it is up 7/10 of 1%. it is similar to what was done last month. it suggests substantial. you have to realize this is a slow season. it's going to be slow with the northeast and the storm. it's always slower in the fall and winter months. the underlying strength still seems to be there. i think there is worry of the slowdown eventually. i have the this boom is going to go as far as the previous one. it's going to slowdown. i am expecting that with higher interest rates. it doesn't really show signs of happening yet. >> where you see the slowdown the worst? where were you start to see that? >> cleveland was our worst performer. i would talk more about the bubble cities. our best performer was san francisco. it has gone up a lot. it's up more than 50% for that city. that's a big increase. i think that cities like that are likely to stay volatile in the future. another is miami which is doing very well by our latest numbers. maybe they are spurned a little bit by the cuban news. there could be a reversal in the cities sometime in the future. not right away. >> could the reversal come in the form of higher interest rates by the fed it? could that be the psychological trigger for some? >> i think the psychological trigger for the home which began in 2012 was the record low mortgage rates we had in 2012 and that was right when they announced qe3. that brought mortgage rates down. that has a psychological effect on the market. people like to borrow in the rates are at record lows. it stimulated interest in that they start going up, we can see a stronger -- later expansion of the housing market. >> we talked with sam they'll last week. he focused on the decline of the suburbanization of america. i want to play for you is explanation for this area --. >> do we want to continue the single-family expansion? are we becoming more dense and shrinking community times and changing the way the housing industry works? >> are you seeing that trend? x this is much talked about, that trend toward urbanization. we just got a big boost of low oil prices. that makes people feel more comfortable isolating themselves in a place where they needed automobile. i think the culture might be changing in ways. the uss emphasized suburban and single-family homes with the big front lawn and a sport utility vehicles or three part in a big driveway. that customer -- maybe it has something new is the internet and connectedness in different ways area i am less bullish on the remote suburbs. >> maybe we have to rethink what the american dream looks like. >> it is to be like on facebook. that is the new american dream. thank you so much for joining us. we have a quick travel update. things are starting to move again following the storm. the northeast corridor service is set to resume. the subway and rail service is set to begin. as an tunnel operated by the mca have already opened. we will be back ♪ in ♪ >> we under 30 minutes away from the start of training. julie hyman is with us. let's start with number eight. forget oil. they are investing in shale killing. -- drilling. they want to get into fracking in saudi arabia. >> it's not something you think of for saudi arabia. they are putting pressure on it u.s. shale producers. they can have the fifth largest reserves in the world. the problem is water. it rick wires a lot of water when you are doing high dollar fracturing. -- hydraulic fracturing. it is expensive to get the water in there to the fracking. >> i thought it just float in the streets. >> they are just printing money. >> i thought fracking was our last-ditch effort before we ran out of oil. here we are in new york, we will not let fracking happen. we think it ruins the water. >> we might get a better reception. >> it should lower the price of oil which is good for everybody except texas. >> the largest cruise operator just signed paperwork with china merchants to explore a domestic cruise line in china. this is a growth market for the industry. we spoke with carnival's ceo. that's us in miami. it is an extremely important growth market. the asians don't have the same stigma around cruising that travelers in the u.s. do, the only people that go on cruise ships are 55 plus. >> even if you took the 55 plus in china, it's a big market. it's a big market for everything. it makes sense a would partner. even without that, they are carrying 500,000 passengers in china this year. >> i'm not sure how much of a choice that is and not having a partner in china. i am sure they are saying this is great technology. this is a great business. we would like to know what it takes to get into it. number six, a startup called rhody. it links people who want pack is is shipped with people willing to drive them. it is an uber like sharing app. >> we are all using the app in terms of using the internet at the front end of convenience. uber is a great app. what is cool about roadie is you can put package in an empty car. it's more efficient. in the old days, you could go to the airport and hand somebody a package and taken to san francisco. that was inefficient. uber is a great business. this efficiency of using the app is cool. >> this new labor pool that you hadn't thought about. none of us thought about before. number five, kfc is making a bold move with his hot dog items. they are replacing bread with meat. there are no planes for it in the united states. what do you think? a double down august sandwich -- dog sandwich. >> is not really a sandwich, is it? >> i would like to try one, but i think it would probably just be one. it's good marketing because we are talking about it. >> this gives me nightmares of that doughnut sandwich. dunkin' donuts had a doughnut. >> it had a hamburger. >> it's not hard to try new things. you never know what catches. >> we are talking about it. much more ahead, we will find out how the new iphone was with holiday shoppers. apple reports their earnings after the close today. marissa mayer's problem to do at yahoo! with that $48 billion. ♪ >> welcome back to "in the loop." we are bringing you the most important stories before the bell. number four, how well the iphone cell? apple will release orderly earnings. this was indication of how the new products performed. we talked earlier about what i think are going to be the three key things. we talked about iphone 6. we talked about mac versus ipad sales. the third thing people will talk about is apple versus the expectations for apple. the company itself and what we expect out of it in the next year. >> tim cook has been running it great. his first new product will be the watch. that is a very radical departure. that they run across and information platform will they lose sales from laptops to ipads? you have to think about their strategy. we've got it covered top to bottom. >> what a turnaround for tim cook. >> he was the operations guy. he must have the baton from being steve's partner. he's got the vision for sure. he is doing great. >> yahoo! is releasing their earnings later today. marissa mayer is our number three story. she is going to talk about their stake in alibaba. it's nice to have a $40 billion problem. shareholders were not happy with what she did last time. >> we have seen it flip on its head when she first came in. people were willing to cut her a lot of slack. now she has the opposite problem. if she does something right, it feels like the praise will be begrudging. it seems as though the situation is against her. >> i think she is great. i think she should be given more time. i think she can do innovative ins. they are going to say give us the money or we don't like you. the tech committee will set you gave back the money so you must not be any good. >> it's kind of a no-win situation. number two, we are staying with tech. shares of the microsoft company are falling a time. they are the big mover today in the premarket. they delivered a mixed bag of results. the xbox was good. >> most of the commentary i have seen on the surface is not that bad. maybe you haven't expectations issue. they did not deliver on them. >> he's got to do a reset. if he continued on the course they were, they would fall off a cliff. that windows 10 is going to be free is a very google like move. they have their own version of office. my view is he's doing the right thing. you have to go into a valley to come back. >> is a split going to come up to mark --? >> item that that's the answer. the platform capabilities. if he can take them and move them to the cloud and diversify, they can have some of those apple wally's. they will be back. >> we will be back with the opening bell and our top story. >> welcome back. julie hyman is with us. we get to our number one. the story is the fed. janet yellin and her team are meeting today on interest rate policy. nobody is expecting them to rise. they just want to get a further look at what the fed is thinking about inflation. that is the big question. >> i wouldn't be optimistic that we will get an enormous amount of clarity at the meeting today. we don't tend to get an enormous amount of clarity. if you look at the economic data, it hasn't changed all that much. >> durable goods came in worse than expected. housing numbers were stagnating. i don't know. i don't know if the base case scenario is --. >> i don't know if you raise rates in this environment area --. we have oil falling to the floor. i would've expected that money to find its way into other areas. it hurts texas and oklahoma. you would think the people in new york and connecticut would be happy. >> it is to some extent. there is the lay in that affect. maybe rates go up in the summer. 80 consumers>> as the fed starts their policy meeting, i want to bring in pat dorsey. pat any kind of clarity you think we're going to get from the fed today? >> this fed is far more clear than the delta greenspan was. as her prior guest pointed out things like discretionary spending, it takes time. the job market is recovering but not fully recovered. your guess is as good as mine. >> you think people believe -- people are overreacting to what is going on in europe? that the ecb has come in with their monetary policy. the markets are down. the dow was down 123 points. there is strong concern about what is going on overseas. >> the u.s. exports -- a 12% of s&p earnings come from europe. greece is probably .12%. it rallies the headlines more so than it does affect actual corporate earnings. people are going to get freaked out about this thing or that. at the end of the day, the u.s. has two big a pot of corporate earnings to be affected long-term. it simply is not going to move the needle but will freak people out day-to-day. >> we have had a lot of corporate earnings today. we've been talking about the effect of oil prices. caterpillar is a company coming out and saying the drop in oil prices is going to hurt ordering . how concerned are you about a sign like that? >> if you're caterpillar you're a leveraged oil driller, this is a problem. if you're an average consumer walmart, dollar general, this is a good thing. you might think of it as concentrated pain. we will hear a lot about the pain because specific companies and states that are affected. the gain is extra money in every consumer's pocket and it helps consumer at the lower end of the income spectrum in more rural areas with their spending more of their -- saving more on their pocket from gas prices. >> what is your prediction for when oil finds its way back up to prices that scare all of us in the other direction? >> i do not have one. anyone who tells you the nowhere oil is going is lying. >> who knew oil was going to go down this far? >> who predicted that? very good point. >> who would have seen a 60% fall? the markets are falling dramatically now. the dow is off almost 300 points. scarlet few -- scarlet fu at the news desk. >> all 30 members of the dow industrials are falling. within the s&p, alternate industry groups are on the losing end. microsoft results from last night, not helping. i'm looking at market brett. more than 10 stocks are lower for everyone that is higher on the new york stock exchange. that makes it the broadest retreat since december 10. you have some negative companies with negative earnings. keep in mind they are starting to reopen public transportation and the roads in the new york city area, but we have to have low volume. >> people can trade electronically but you still have a lot of people who are making their way to their desks. you have to factor that in when you are looking at whatever happens in today's session. >> i'm looking right now. mac -- microsoft is down 9%. there are some big cap stocks that are declining significantly. pat, thank you for joining us. scott, thank you for playing with us for the last 90 minutes. >> if the subways are open, i'm going to work. >> we all back to work now. we will be back. ♪ >> julie was saying earlier how volume is likely to be low. i want to show you on my screen volume is low. new york stock exchange volume in trade, it is almost down to the volumes we saw near the end of the year, when holiday trading started to dissipate. it is unusual at this time of the month for it to be this down. it is toward the end of the month. some of the travel delays possibly the weather that is also keeping volume depressed. keep that in mind when you are seeing some of the numbers on your screen. the dow down over 200 points and other indexes. it also has a psychological impact as well when you start seeing red across the board. other triggers are put in place and people start selling more. the volume is pretty low now. i want to turn to one of the stocks that is down about 8%. it is microsoft. the tech giant releasing earnings yesterday and it was a bit of a mixed bag. one bright spot, accelerated growth in its cloud-based services. he xbox did pretty well. microsoft acquired two companies aimed at augmenting success in the cloud. joining us is daniel ives, a managing director of research. >> no trains. i'm stuck here in snowy new jersey. >> i know you are's -- i know you are hard at work yesterday. you just cut your price target. now, it is to 53 this -- it is to $53. >> it was a honeymoon year for investors. now, it is about the transfer to windows 10. i think this will be a paradigm shift. they are going to be successful. see a lot of peers yelling fire in a crowded theater. >> in this transition, it looks like investors are not buying -- giving the time for the transition. >> patient is worn a little thin. numbers got cut. i believe it is a promise that we will deliver. fundamentally windows 10, this is a major game changer for microsoft. i think it will be the bridge that takes them into the next generation of cloud computing, which is where we want to see them go. >> windows 10, how big of a game changer is that going to be for microsoft? >> the jury is still out on how significant. this is the biggest product cycle in 10 years. just a hologram and some of the innovative areas. it is going to bridge the consumer and the enterprise. a lot of investors are waiting for this. this is the della's shot at the cloud center platform. i think the stock would start to react as we get into windows 10 and the hype around this. this could be a renaissance of the pc operating cycle. >> but dan, we had a ceo of a startup, scott kurnit with us who said microsoft, not even on my radar. i'm not building an app for the android operating system on mobile. microsoft is not a part of my ecosystem the way apple is. it is one person's experience but i think it illustrates how smaller businesses see microsoft and their non-need for their services. >> it is an uphill battle. they have to get developers on the platform. their climbing mount everest without sherpas from the developer community. that is a challenge going forward. >> hollow lens. what is that about? >> i think it is about them breaking the mold, going to the next generation. that is where a lot of spending is going to be. we do you -- we view it as a major game changer. this is not your grandfather's microsoft. >> thank you. we will be back in two minutes. ♪ >> more numbers are rolling in this morning. manufacturing numbers are out now. scarlet fu has a breakdown. >> this is a market pmi index. this one is from market which is a london-based service. the read is 54.2 for the preliminary read for january. that is an increase from 53.5 the month of december. you look at the services pmi this measures the non-measure -- mitt nonmanufacturing part of the economy. slightly higher than what a common us were looking for. it does market increase as well from the previous month of 53.3. in terms of what it means for the market, just looking at the u.s. equity index performance at the moment, we're looking at declines. this does not seem to change that. we're posting losses of at least 1.2% for the s&p dow, and nasdaq. >> i know you a been on eco -watch. new york city, coming back to life after a major storm failed to live up to predictions. forecasters originally said the storm would bring more than a foot of snow to new york city. the roads are pretty much clear as travel is getting back to normal. the national weather service downgraded the assessment. i want to get back to same champion, -- sam champion. we thought this was going to be the storm of the century, i'm glad we took our precautions, but what happened? >> hey betty, good morning. this is a storm you had to watch . as of 8:00 last night, we were taking those totals down from the city all the way to the west. this storm this morning is still howling. on the eastern end of long island, massachusetts, maine. we have terrible situation we are getting word of of power out on the island. coastal flooding in a good part of the coastal areas of massachusetts. we have another round at high tide. this storm has been a powerful blizzard. near record snowfall totals. you're to be north and east of the city. this will be remembered as a snowstorm that shutdown new york , but just out of concern and not real snow. our totals are delivered at a seven inch total. 11 inches of snow toward the airport. neither one of those totals sounds like it is crippling but difficult decision for governors in all states and mayors in all areas. stand idle -- stand in 11 inches of snow, go 40 miles out on the l i e, with 22 inches of snow. the gradient stepped out that rapidly. there's no way we could have told people, you're going to be fine 40 miles away from where there's 22 inches of snow. >> absolutely. it can be different in one area to the next neighborhood. i know we have been so focused on the northeast, but this impacted travel and passengers throughout the country, right? >> not only the country internationally. when you have airports that are canceling flights i think the number was about 7000 this morning. that is a big deal. we were urging the city to get everything turned back on. you can drive now. the subways are open as of about noon, they're hoping to get to a weekend schedule on the subway. that is still about 60% of what the normal travel would be in the city. what we have to do now is say, that is what it was get the city up and running. let's get people in the shops. you have people who are not working today. one thing they want to do is go to restaurants, go and shop. we might as will get the economy moving. >> thank you for being with us through the storm. it is all about the weather and the markets and the weather affecting the markets. the indexes the dow, s&p and nasdaq are lower. it might be due to the lighter volume with the weather conditions. julie hyman, back with me. i were showing the viewers the point you were making witches, volume is down 12 we saw during the holidays -- which is, volume is down to what we saw during the holidays. we are lower than where we were before. >> maybe everyone was at their desks -- maybe if everyone was at their desks, there would be more orders put in. keep in mind, even if the travel ban has been lifted, a lot of commuting areas are seeing heavy snowfall. those people are likely not going to come in. parents might have to stay home with their kids. this is something we might see throughout the day. there are a lot of reasons we are behind in selling. a lot of it has to do with earnings. there are two threads we are seeing being woven through the earnings reports today. one of them is oil and commodity prices and the effect that is having on earnings reports from caterpillar, which says that orders are down to freeport mac moran. the other big thread is the rising dollar. procter & gamble, citing the rise and the effect it had on its earnings. since they encapsulate big themes that we likely will be hearing from other companies that seems to be concerning investors. >> no one is really talking about the fed at this point. >> is the fed going to make news today? >> they are not. they're not going to make much news in the way of news this week, but it has been a big driver of the markets. it is interesting that is not on the radar. i think we've been sold whether focused -- we have been so whether focused. why not head to miami? we will tell you why the miami housing market is hot. ♪ >> getting out of this winter weather. miami could be a place to go. he has returned to the city's real estate markets. real estate -- construction for over 30 -- stephanie ruhle went out to miami to find out what is driving the boom. a lot of foreigners buying of this real estate. >> if you think about the housing crisis, miami was the epicenter. home prices fell 51%. we started around april 2007 to see a turnaround. soon as that turnaround began, it was on fire. miami now leads the recovery. we are seeing developers take over begins aboard, put 300 million bucks in their this guy is turning it around and putting hotel rooms in. the guy who put the delano there 20 years ago, he has a huge development in partnership with marriott. i had to ask him how do you know history will not repeat itself? this is what he had to say. >> there are too many fundamentally attractive things that miami has. it is easier to get to. a multiplicity of flights. the weather is good. it is a good place to live. i see nothing but growth. >> this was the same argument being made into desert five, to the 6, 2007. -- 2005, 2006, 2007. >> pretty soon there could be a reversal of fortune. >> for them, it is all about international buying. 50% of the buyers in miami last year were international. what is the risk? what happens if the u.s. dollar strengthens and the money they can spend overseas it's weaker? -- gets weaker? they cannot simply throw millions of dollars to cities like miami or new york to park cash. for now, miami is hot, hot, hot. >> i have not heard that in ages. >> miami sound machine. >> you will hear more about miami's real estate market. we're nearly 30 days -- 30 minutes into the trading day. scarlet fu, more on the movers. >> the dow industrial is posting another triple digit point move. this marked the biggest decline on a percentage basis in three weeks. in terms of industry groups within the s&p 500, you have utilities higher. technology, falling the most. it is more than u.s. equities. the currency markets as well. if you broaden this out come at their was trading in the swiss franc overnight that has traders scratching their heads. if you were to look at an intraday chart it is not clear whether the swiss national bank intervened to buy euros. either way, according to the ubs, it is volatile and not typical. also, we had disappointing earnings in china. industrial profits falling 8%. we heard from caterpillar this morning that chinese construction equipment sales will be lower this year. that is leading to a slide in fx i, a large chinese c.t.s.. -- chinese c.t.s.. >> thank you, scarlet. tomorrow, we will take a pulse of the housing market. a snapshot. tim humphries will be joining me -- dan humphries will be joining me. matt higgins, cofounder and partner with steve roth, also former jets manager, he will be joining us tomorrow at 8:00 a.m. ♪ >> live from bloomberg headquarters in new york. this is "market makers." >>

Related Keywords

Miami , Florida , United States , Burlington , Massachusetts , New York , Westchester , Texas , Boston , China , London , City Of , United Kingdom , San Francisco , California , Connecticut , Oklahoma , Ali Baba , Perifereia Kentrikis Makedonias , Greece , Maine , Tennessee , New Jersey , Alibaba , Hollywood , Saudi Arabia , Pennsylvania , Cuba , Switzerland , America , Chinese , Swiss , Greek , American , Cuban , Pat Dorsey , Raymond James , Warren Buffett , Tim Humphries , Charlotte Raleigh , Dan Humphries , Marissa Mayer , Cory Johnson , Melissa Meyer , Scott Kernan , Matt Miller , Heather Waldman , Bob Kraft , Robert Shiller , Delta Greenspan , Tim Cook , Steve Roth , M Matt Miller , Bristol Meyer , Janet Yellin , Asia Europe , John Malone , Scott Kern , Freeport Mac Moran , Julie Hyman , Adam Sandler , Mount Everest , Matt Higgins ,