stocks fall after earnings come up short across the board at big-name companies like microsoft. an acquisition that will allow it to slash its u.s. taxes. we will talk to the comics ceo. >> a super bowl ad will cost you $4.5 million for 30 seconds. we will find out what it is really worth. we'll be speaking to a marketing chief who is a company with a big -- with big commercials in the big game. but into a chilly day on market makers. i'm stephanie ruhle. >> i'm alex field, in for eric -- alix steel in for eric. >> we have breaking news on the economy. consumer confidence for the number -- for the month of january. michael mckee is here with the deal to break it down. >> here's the question for the economy, does the consumer overcome week business spending? consumer confidence 102 point nine. this is the highest number since 2007. the figures out earlier this month for the highest since 2007. you can see the impact of oil prices. people are feeling better. if you're talking about new home sales maybe a translate into spending. 481,000 annual rates up 11.6%. the forecast was for a 2.7% rise. a big again in new home sales. a rebound after a couple of punk months. do we see this trend continue? a lot of people beginning to think we might. we saw in case schiller numbers, a broadening of price increases. maybe the consumer is going to offset weakness in business spending. consumer spending, the biggest part of the economy. >> we also saw for the previous month -- >> we are feeling better because we are feeling like we have more cash in our pockets. we have not gotten a raise yet. >> let's get a look at market reaction. scarlet fu is in the newsroom. >> we have stocks holding onto their losses. not much of a bump up. within the dow industrials, 28 stocks lower. if you come to the bloomberg monitor, this shows the movers. there is a sea of red in terms of the decline for the different members of the dow industrials. the names that are higher are pfizer and 3m. you have two names that are higher. this is the biggest slide in three weeks. the s&p 500, posting a loss of 27 points. you're seeing money move into treasuries. the yields on the tenure, coming down to 1.76. moving onto commodities, i'll show you what is going on with gold. gold continues to build. heading toward 1290. we are also seeing a move higher in crude oil. euro swiss he sees, some thing happened overnight the got a lot of people scratching their heads. the swiss franc had a spike in yesterday's chart. it is not clear what happened. according to art cash at ubs, it was volatile and not typical and sends a chill across the financial market. this is not stable, more volatility to come. >> i want to stay on markets and bring in julie hyman. you are still with us. we're not going to let you go. what is your take the look at broader markets? >> i think people are focused on earnings. so much so that the fed has receded into the background. the fed is meeting today. in part, because people are looking at earnings and in part because everyone was gearing up for this big storm. >> this system is game to -- >> is not just about -- >> let's look at the two big themes that have emerged from the earnings report that we have gotten today. microsoft has its own issues. let's talk about the two tracks today. commodities, and the dollar. those of the things we are the things we're hearing companies talking about. these are two things that are having an effect on numbers. caterpillar freeport, both of these companies saying lower commodity costs are happening -- are having an effect. >> how much of that was supply driven and how much was deflation driven on a global level that we are seeing a broader economic slowdown across different countries? >> will be watching in the week when we get the iis and numbers because they look at new export orders and that will be key. if the dollar is having an impact. although, caterpillar said it was oil prices, not the dollar. the dollar starts to have an impact, it is going to weigh on business orders. the question is, how long does the consumer keep the company -- keep the economy propped up? >> how low does it have to go for it to have a broader impact for the u.s. economy? >> you will see the economy growing more slowly than people expect. morgan stanley lowered their forecast for gdp growth from 2.8% this year to 2.6% in 2016. they are seeing a weight from that. they think the fed is not going to move until the first quarter of 2016 at this point. >> the two companies that stood out to me or png and dupont -- >> microsoft too by the way. >> if you are looking at investors spending on the decline because of oil or other reasons and you are looking at consumer spending and confidence that is up and consumer spending accounts for a lot more in gdp than business spending does. wouldn't that outweigh? >> that is why we are still seeing growth and not any kind of recessionary forecast. consumer spending, two thirds of the economy. forecasts are that hiring is going to continue well over 200,000. the consumer confidence numbers this morning, a big jump in expectations for jobs. up to 20.5 from 17.2. people think it is getting year -- getting easier to get a job. more paychecks, more spending. >> they're not cutting in the oil community. isn't consumer confidence a lagging indicator? >> there's been a debate over several reports that suggest all the jobs may be coming from the oil patch. just unlock -- jeff gun lock putting out a report. hiring is not that big a part of the economy, nor is the overall associated jobs with it. it will have an effect in a couple of states like texas or north dakota. >> we are in the mix of this burning season. what are we going to hear from companies later on, reporting after the bell? >> yahoo! and apple. at&t as well. i notice is that your 27 companies scheduled within the s&p 500 to report earnings today. it makes the busiest day of the earnings season so far. a lot of these big names are declining ahead of results. whether it is apple, yahoo! or at&t. all of that suggesting the bar is being lowered before results come out. apple is notorious for setting the bar low when it comes to its forecast and expectations. >> thank you. i will call that a legit markets roundup. >> new york is slowly opening back up for business. the travel ban has been lifted and public transit is coming back to life after a winter storm dropped more than 10 inches in the city. boston, still being hit hard. lana zack is in central park. what you see? -- what do you see? >> it is chilly out here right now. is eric actually sick or is he just trying to avoid the freezer here? >> true that. >> we have to count our blessings. we really do have to count our blessings because we were anticipating this wicked blizzard. it is hitting the people further north more hard than it is hitting us here. even though they have lifted the travel ban it can see the street behind me, there's one car. normally, vowed before of people. -- that would be full of people. the governor says that it was worth it to close down the street because emergency personnel was able to get to the places they needed to get to. >> i am looking at patch creek behind you with few cars on it -- i'm looking at that free on you -- i am looking at that street behind you. do you see any plows around? >> it continues to get pushed around. there is a plow coming at me now . it is raised at the moment. it does seem strange that they left the streets open and we have seen plows go by. the plows themselves have not been let -- have been lifted. >> for so many commuters i think we expected that we would not be able to use the streets but why would we not be able to use the subway? wasn't the subway designed in case of a blizzard, go underground? >> can i get home to park slope using the subway in a few hours? >> you will be able to use the subway later. there may be delays. it takes a long time to get that all up and running. that is unprecedented for us to close down the subways, not because of flooding, but because of snow. in fact, they had parked several trains on the third rail try to keep it insulated from the snow. i think there will be a lot of questions that will continue to come out of this today. >> i take subways, steph takes cabs. >> i could not take anything today. >> thanks, lana zack. >> i just do not live near the subway. when we return, we cannot get enough smart phones and big-screen tvs. that is great news for corning, the glassmaker. we'll be speaking with the cfo. >> the real estate market is hot in miami. ♪ >> warming is betting big on big screens. the glassmaker reported a 23% rise in quarterly sales in the fourth quarter. high demand for glass smartphones in big screen tvs. hit talk that corning's plans jim flaws, the chief financial officer. overall, estimates are looking for 6% increase in revenue this year. what will be the big growth driver? >> we'll see great growth in our optical communications segment. we will see good growth in our environmental business. >> what does that mean, environmental business? >> we make converters. as people by more cars, we sell cubic inches of that. our class business remained strong. we're looking for good growth in large sized televisions this year. last year, we think sales of televisions grew by 50%. we are expecting this to be another big year for television particularly driven for the mood -- by the move to ultrahigh death. -- ultrahigh def. >> what kind of pressure do you feel to make up what you are losing in pricing in terms of sales? >> on gorilla glass, we introduced in the fourth quarter. we call it gorilla glass four. we are getting a higher price on that. that'll offset some of the price declines we have had on older versions of gorilla. we expect to see good growth in the handheld market this year. we expect to have less of a pressing issue for this year in gorilla. >> how does iris glass technology fall? >> most people do not realize in an lcd television, there are those cooked of lcd glass. -- two pieces of lcd glass. we believe we can substitute a piece of glass. it will be able to make the television much thinner than what you have today. they're getting quite thin, but this will reduce the size. we introduced this at the consumer electronics show. we will talk more about it at our investor day next week. we think it allows us a chance of getting a third piece of glass on every television. >> that is a very thin tv. what are you doing to attract cord cutters who are not watching tv anymore? >> of course, we continue to see a tablet market. >> tablets have been dicey. we have not seen the kind of growth we are used to in the tablet in touch screen markets. >> as a reminder, on every tablet, we get an additional piece of glass with the cover glass as gorilla glass. we see younger people watching things on smart phones and tablets. we are delighted by larger smart phones because we sell by effectively the square foot. as phones get bigger, that helps us. there is an lcd in every phone as well as the cover glass. we think, as consumers age, they will move the buying large televisions. we remain optimistic about the television market. >> when we think about technology and people are so interested in tv, phones, technology. everyone loves wearables. where are you in that world? >> when you have a wearable like a watch that has a display, it hasn't lcd display. -- it has an lcd display. we sell gorilla glass for use on watches. several of our customers have used it on watches for over a year. we are in that too. it is not a big driver for us in terms of the market. >> i know you have said that gorilla glass is just as good as sapphire. sapphire has been rumored to be what apple might be switching over to in terms of iphones. if apple does that, what is that going to do to your business? >> we do not believe that sapphire is a better material. it is more scratch resistant which is why you see it on expensive watches. in term of brake performance, we think safire is worse. >> you might, but if apple does not agree, what happens? >> i cannot comment on individual customers. we keep making guerrilla better so guerrilla -- we keep making guerrilla better. >> thank you. jim flaws, cfo of corning. >> as blizzards go, it was anything but historic. the northeastern storm has made travel miserable here. i had quite a trip year. riding in a snowstorm with matt miller with the roof open, is another level. stay with us. ♪ >> corning's cfo just spoke to us about their fourth-quarter earnings and outlooks. corning is one of the biggest gainers in the s&p 500. chief markets corresponded scarlet fu, is on a mission to find other winning equity markets today. it is not makers of snowplows because there has not been enough increment weather for it. is there anybody winning? >> if them harder in the last couple of minutes because the dow industrial is at its lows. there is one notable gainer. there was a $600 million transaction. silicon image is gaining today after lattice semiconductor said it would pay $600 million to buy the company. silicon image up to 23% at the moment. within the dow industrials, even at its session lows, there are two gainers within the 30 contested -- constituents. pfizer and 3m. with pfizer, it is falling as what is 1.5%. the forecast missed estimates, yet it erased its early losses. the conference call taking place right now. 3m was higher. it is given up its gains, but the industrial company saw organic growth in all regions. as for some momentum names, i'll may include this because netflix is a name we've been talking about for a couple of days. it is added to its advance. gaining for a seventh straight day potentially, advancing 38% during that period. tesla is moving between gains and losses. >> thank you for giving us the latest. when we return, will this be the deal that leads to a change in the tax code? will be talking to medtronic's ceo about the inversion deal. >> $9 million to air an ad during the super bowl? we will talk about it. ♪ >> live from bloomberg headquarters in new york. this is "art makers." -- market makers. >> i'm stephanie ruhle. >> i'm alix steel, in for eric schatzker. the snow may not be over yet. i want to bring in heather waldman for the latest. i have to get home to brooklyn tonight to see my baby girl. and michael to get more snow -- m.r.i. going to get more snow? >> it looks like the worst is wrapping up across parts of new york -- a parts of the northeast. here is a closer view of what we got. the biggest problem in new york city will be the wind and the drifting snow. not much accumulation left over. travel bans have been lifted. new york city has been removed from was at warnings. here's a look at wind gust over the last hour. 46 miles per hour's in new york city. 30 miles per hour in boston. you can have blizzard conditions about snow falling. gusty wind, very cold air and low visibility because of snow getting blown around. because of all the wind we have real feel temperatures below zero in boston. 13 below in burlington. 23 degrees at this hour in d.c.. still feeling it in new york city, especially as far as the wind goes. boston, portland, into bangor, we are in the thick of the storm. watch out for strong wind and white out conditions. accumulations to the rest of the day could be one to two feet from massachusetts into maine. >> it is cold. what i'm saying is new york city, we have schools businesses, buses to catch. i do not see what business is not happening. it is not that bad out. >> it could've been a lot worse. >> moving on, it was one of the most controversial deals of 2014. medtronic's if the billion-dollar purchase of covidien. covidien is based in ireland means metro move its headquarters there to avoid paying u.s. taxes. it gives metro make a wider away -- array of products to sell. mitt romney -- medtronic's ceo omar ishrak. >> the tax was a component, but the real reason -- we have had a strategy of therapy innovation and driving. you'd health care that we've talked a lot for the last three years. covidien accelerates that strategy. those benefits were compelling. something that was really the cornerstone of the acquisition. >> what has this done for your relations with leaders in washington? >> so many politicians have issue with these types of deals. >> we've tried our best to give reasons as to why we're doing this strategy. we've been transparent since they won. -- since day one. we have good intent to invest the cash we have access to in the u.s.. we made an effort and have been transparent. i think that is helped us. >> how much harder was a to get the deal done now than say 10 or 15 years ago? >> right now, -- obviously, this was not easy. there were different understanding as to why we were doing this so we had to go out of our way to be clear and to make sure we had -- it is things we do in business. >> has this changed your interface with hospital administrators? it must put you in a stronger position. >> we see ourselves as a better partner. health care is changes -- health care is changing. >> they have to look at health care in a different way. >> you see conversions of these in the u.s. were people understand that we have to move to a value-based health care system. that is good for everybody. it means you quantify the value of the cost that you invest in. >> if hospital administrators understand that, while they not been open to this years ago. ? >> there's the reimbursement systems, insurance companies. you're going to play by the rules. i'll give you the most pertinent example. when the u.s. moved to the -- your big hospital stay as opposed to a specific feature. that is how hospitals are paid today. within a hospital, you have a value-based system. that is made u.s. hospitals very efficient. our quality of care is very high. we need to extend that over a longer time horizon. >> how long do you have to prove that that works? instead of paying for each procedure, you are trying to get people to pay up front but overall, they wanted going to the hospital less. how long do have to prove it? >> it is not a matter of how long you have to prove it. for the system to be sustainable, there is no other way. >> why is there no other way? >> the am and what can get a return on that investment is by looking at it over the longer term, otherwise you are investing in one place, getting a return somewhere else. the cost x galatian will be -- the cost escalation will be this -- sustainable. >> someone who is healthy enough to extend their life, versus someone who is healthy enough to go back to work and have a full life? >> you cannot generalize. in essence when you invest in something, you want to know who gets a return. when you do a procedure, we get paid for a trade away, but hospital gets paid straight away, but the value is realized after the patient leaves the hospital. >> why? >> the patient's quality-of-life is better. >> you want the persian -- you want the patient in the hospital. >> our mission is to improve outcomes. restore health and alleviate pain. unless that is done, our mission is not complete. our mission is not to create technology and walk away. >> make the case for us why deals like the one you did with covidien is not just good for you, but it is good for the industry and patients. there are so many out there who want to say in version deals are anti-american. help us understand why it works. >> first i will take a value-based health care as a cornerstone of this. medtronic builds therapies that are outside the hospital. covidien has value inside the hospital. hospitals are looking at things called bundle payments which will include the most efficient way of providing care inside and outside the hospital. through this merger, the tronic -- medtronic has the chance to be a partner across continuing health care. it removes fragmentation among partners. it improves overall efficiency. >> short-term what is the effect of the stronger dollar -- the stronger dollar situation? >> this depends on where we get our revenue. over 50% of our revenues are outside the u.s.. the weakness of the euro and the yen is of significant impact. these are cycles in business that we have to manage through and this is one we will deal with. >> $50 billion. a big acquisition for you. as we look to 2015, any other acquisitions in mind? >> you have more cash. [laughter] >> the first thing we are going to do is make sure we integrate this acquisition in the way we wanted to. a lot of which is preserving the two companies. future acquisitions will have to fall in line with our objectives which are in clinical areas diseased focused. it has to drive our growth strategies. we have to make sure we can pay for it. >> that is always important. >> i heard a maybe. >> you are sort of smiling about it. [laughter] >> we will look at early-stage therapies. the cash we now have access to, we're going to invest in the u.s.. to the tune of $10 billion over a decade. that is not one big acquisition, but it is investment in the u.s. med tech ecosystem. >> think you for joining us this morning. omar ishrak, mitt romney's -- med tronic's ceo. >> our next guest hopes will spend more time talking about the commercials of the super bowl than the game. ♪ >> kia is back at the super bowl. it is the automaker's sixth consecutive year as the super bowl advertiser. you may remember that matrix spot with laurence fishburne last year. this year, they're taking a new look. >> we open on you while driving in a beautiful car, the snowy mountain road. you are going -- >> 200 miles per hour. >> know, 30. you look up the tree and you see -- >> a sniper -- >> know, an owl. >> let's talk to the man making these decisions. tim cheney, the vp of marketing at kia motors america. tim, $4.5 million for a 32nd spot. how many are you going to have in the super bowl? >> we will have one 62nd spot this year. -- 1 60 second spot this year. >> how much money do you need to spend? >> we get a great return on investment from the super bowl every year. that is why we have come back for six straight years. we track digital metrics and get more than our money back for this investment. >> explain it to me. >> i am not going to go into the numbers. the fact that we keep coming back in investing and launching new products including the all-new sorrento this year, is justification for that. we are confident in our investment in the super bowl and our advertising. >> what is the all in cost? 8 million to actually buy the spot, project we had to make the spot. >> again, i will not going to the numbers, but we think it is worth the investment, including bringing in hiring peers brosnan , who embodies the traits of the sorrento sir -- he is known for action-adventure. we thought he was the perfect fit. >> how important for you is it to have all these conversations leading up to the super bowl about what the ad is going to be? you are not paying anything for this but we are pumping of kia on a tuesday when we would not be thinking about you. >> you are correct. a lot of our value is gained before the super bowl for all the discussion in the media, including today. we also get the value after the super bowl for the online conversation that consumers have. we get great results during the super bowl for people going online to research and shop. >> the super bowl is such a huge success story for you. what is next? the price point below the super bowl you put advertisements throughout the year and get a similar impact? world series? >> we have a number of high-profile platforms. none is bigger than the super bowl. over 110 million people will tune in one afternoon and we will generate awareness for the all-new sorrento. >> you seem to say that super bowl is important to you and your dedicated. a lot of your competitors have dropped off. the car companies advertise this year, five versus 11 last year. what does that tell you? >> i cannot speak for competitors. all i know is we get great results. we have a great product. we are confident in our advertising. >> are you going to be at the super bowl? >> actually, i've never been to the super bowl. i will watch it in the comfort of my home. i will be paying attention to the advertising like everyone else. >> is easier to watch the ads if your home. tim, good luck with the advertising. who are you rooting for? >> we have customers in both new england and seattle -- >> i'm cutting you off on that. he is a vp of marketing at kia motors america. >> the cell up and stocks has escalated in the last few minutes. >> we are off our lows of the session. if you come to the monitor, this is the major indexes. you can see that we have just hit our session lows and have come back a little bit. the biggest drop in half a year since june of 2013. i need to double check that. the nasdaq, being pushed lower by microsoft which came out with disappointing earnings. the who and apple are lower before their earnings reports after the market closed. all 100 names in the nasdaq 100 index are lower. we've been talking about how trading is pretty thin giving weather issues. trading in the s&p 500 is 30% above the 30 day average for this time of day. >> really? >> there does seem to be volume coming through. >> the european stocks at a near seven-year high as well. >> maybe we should give credit to the bloomberg anywhere function. many people can work from home. >> not us. >> who would not want see us doing the show from home? my kids running around, i think it would be a raising -- amazing. >> miami's real estate market is on fire. ♪ >> welcome back to "market makers." miami real estate is hot once again. it blows my mind if you consider where we were in the financial crisis. i traveled to sunny miami to find out what is fueling the boom. >>miami is back. the real estate market is now booming. >> you have the best views of the city here. >> these are the brokers selling miami. these two had over half $1 billion in sales last year. >> we are seeing prices we have not seen before. in the last few years, starting with the sales on indian quick island, all of a sudden, that started lifting the market up. >> boom to bust to recovery. miami property prices are leading the nation. >> doesn't history repeat itself? housing crisis was a few years ago. miami was at the epicenter of it. >> zero income verification. you can put down 5%. now, all these new constructions are asked 50% down. you're going to think twice before you walk away on a substantial unit. >> the people we are dealing with are almost 100% cash buyers. >> foreigners made up 60% of miami's total sales last year. u.s. buyers are also ponying up. >> what is driving florida is the baby boom generation and higher taxes. the hedge fund managers you see them coming down here and thinking about setting up shop. >> to meet demand, barry stern like is spending $300 million to transform a hotel into a hotel and home. >> ethic miami is the singapore of the united states. >> the property will have hotels and condos at prices up to $20 million. >> i cannot believe people have the money. >> that is the danger with interest rate rising. >> you're not worried about rates rising? >> not for the next few years. >> ian schrager also sees value in miami. he is opened his first hotel since the delano nearly two decades ago. >> it is a more mature placed in a cycle. >> schrager's addition sits on three and a half acres and features 294 rooms and 26 residences. >> too many fundamentally attractive attributes that miami has for it to be a bubble. i see nothing but growth. >> it really is amazing when you think about it. miami was the epicenter of the housing crisis. here we are, four years later. restart like -- barry stern like has apartments for $20 million. he will have that building sold off in the next two years. if they rise in your three, no problem for barry. >> we have hit multimillion dollar deals for foreign investors in new york. i wonder what the risk is for the rising dial -- the rising dollar. >> barry said you are seeing venice will and buyers and russian buyers dropped out. you still have a huge amount of buyers from india and china. there is less speculators. the altra 1% has only gotten richer. more money than they know what to do with. why not part it in real estate? how about in sunny miami? >> i do not love miami, but i love it it now when there are inches of snow out our window. >> what is not like about miami? the beach, prime 112? we'll be back with more in a few. ♪ >> live from bloomberg headquarters in new york. this is "market makers." >> we are seeing red today. a widespread selloff on wall street. >> marissa mayer, taxing situation. the ceo has to figure out what to do with that allie baba shake and how to avoid a bill from uncle sam. >> you think it is tough in your personal life, it is just as hard at work. we will speak to the matchmaker who builds teams for startups. local to the second hour of "market makers." i'm stephanie ruhle. >> i'm alix steel, in for erik schatzker today. the s&p 500, not far behind the nasdaq. you can blame caterpillar and microsoft. both reported disappointing earnings. treasury yields are also falling. let's bring in our round team. we have scarlet fu, julie hyman, -- >> what's the deal? >> from the economics perspective, the news is mixed. bad business spending. especially on the capital goods side. the consumer numbers are good. some are confidence, the highest since 2007. we are seeing more gasoline related boosts to the economy going into 2015. >> isn't durable goods volatile? >> it is volatile. but when you get five of the last six months down for capital goods orders, you have to figure spending is slowing. maybe because of the strong dollar or because oil prices are down, so capital spending on exploration and mining is down. >> i see that come january 22, we have had a not very strong s&p. i have to wonder, is that not supposed to be good? instead, it was the opposite. >> on the earnings front, it is not good. a lot of the big companies are not reporting good numbers. when investors wake up and see that, they are not happy about it. it has nothing to do with the markets directly. we had this big blizzard that wasn't. a lot of people are still home today. we are seeing a big move and fundamental reasons behind that move, but you have to remember a lot of people are not participating in this market. you could have some market distortion with the slower than usual volume. >> this was set up for we came in for the u.s. trading day. the shanghai consulate -- chinese companies industrial profits dropped 8%. the anecdotal that we got from companies reporting earnings caterpillar, saying that construction equipment sales in china will be lower this year. not helping the sense of pessimism. there was also a lot of rip -- whipsawed trading in the swiss franc. did the national bank intervene in buying euros? what does this mean about their policy of the picking the currency? it adds to the volatility. >> is this constant -- is this conversation going to be null and void when people get back to work tomorrow and they see a buying opportunity? >> everyone is calling for some sort of market correction. a 10% drop to consolidate gains and move forward. you do not know. people think it is going to happen but they do not what the trigger has been. >> michael shall says he thinks the correlation between u.s. stock in the dollar will continue, which makes the selloff more confusing. >> you wonder what this all means for the federal reserve. they will make an announcement. no one is expected change, but as a push their timetable? >> is this really a big enough move for the fed to care? should the fed be washing things -- watching things this closely? >> the fed does not pay attention to what the equity markets are doing. they're not looking at the growth figures because what they are seeing is reasonably good growth and strong job growth. they're watching inflation numbers. that is the question the dollar leads to. do we see declining inflation that might keep them on hold? we'll be watching the statement to see what they say about prices. >> part of it is going to have to do the fed. part of it will do it apple. -- do with apple. look at what microsoft is doing to the entire tech sector in terms of what the stock prices are doing. what apple says after the bell will be important for the tone tomorrow. >> doesn't feel like what apple -- whatever apple says gets turned into a positive? >> for a while, that was the trend. it will have a window into the consumer. >> and looks like an apple watch would fit on stephanie's wrist. >> who needs a watch? you have a smart phone. >> thank you so much. we will continue to watch. the s&p at 2023. >> what a swat team, helping us break down the markets. right now, you're looking at a live video of boston from earlier this morning. the city is still being pummeled by winter storm -- a winter storm that is been sweeping across the northeast. in new york city, the storm dropped 10 inches, way less than expected. matt miller has been traveling the snowy streets of new york city since last night. he is now in downtown manhattan. i was with met a few hours ago. i woke up, big plans to get to work, and then i learned, no subway, no nothing. matt miller came to the rescue. i'm guessing that around 7:00 a.m. this morning, that was the highlight for you. fast forward and tell us what it is like. >> first of all i'm going to say, 10 inches? i don't think so. it is more like six inches. i think that kind of mistake gets made a lot. there are not a lot of people walking around, although the foot traffic, especially of tourists has increased. they're not been a lot of trucks plowing the streets. fortunately, i hear one coming down now. there are not a lot of businesses open. if you're walking around lower manhattan and you have to p/e, -- and you have to pee it is not your lucky day. i can tell you from my current experience. the only thing i think that is open is the new york stock exchange. it almost never closes for weather and did not close today. as you know, from your roundtable discussion. >> doesn't seem to make sense to you? should businesses be opening up or is it too late? today's is the loss? -- today is just a loss? >> the metro-north is going to open on a sunday schedule. other transit groups, new jersey transit for example, says it will take 12 hours to get people back to reopen their lines. that is a lot more serious than opening a duane reade for example. obviously, you have to get people in from wherever they live, brooklyn, queens, tribeca and get them to work. if they're taking the subway or waiting for a cab, it is good to be tough. one of the things i did say i've seen a lot of today, people who are almost as moronic as me, riding bicycles around in this. i've seen a couple people white out. -- whipe out. >> they do not have any other options. >> walk, or stay home. i cannot believe you have scarlet fu, julie hyman and alix steel all onset with you. half of them, i feel could've stayed home today. except for the fact is that there is this amazing 300 point drop in the dow jones industrial average. where lucky they came in. >> where are you going next? >> we go wherever the mooch trikes us. if anybody needs -- wherever the mood strikes us. if anyone he needs a ride, you can tweet me. tourists do not have selfie sticks with them, so i will be a photographer. >> i have enjoyed a ride from that today in his pickup truck. you get to drink gatorade eat peanut butter pretzels and listen to the grateful dead. he leaves the sunroof open. we were covered in snow. >> go to the exchange and use the restroom. >> you have a badge, just go. >> thank you. >> when we return, a few hours from now, we will find out what marissa mayer is thinking. >> we're going to try. >> the yahoo! ceo is expected to update her plans on the company's stake in ali baba. ♪ >> will the taxman cometh for yahoo!? mercer mayer is expected to announce what she will do with that $50 billion stake it owns in alibaba. investors are pushing mayer to return that cash to shareholders. selling them could mean an enormous tax bill. i want to talk about the decision facing yahoo! with nicholas carlson, the chief correspondent at business insider. cory johnson is following the story closely as well. he joins us from our san francisco bureau. you wrote the book. what is your take away on miss meyer? >> she entered a very challenging situation. the last third of the book is what does she do with this air cover she got? situation turnaround ceos never get. for about two years, people were not going to pay attention to the core of yahoo!'s business. >> do we need to give jerry yang more credit? >> we certainly need to give jerry yang and joe thigh at alibaba who orchestrated the whole thing. >> if you do a back of the envelope calculation what would you say the core of yahoo! is worth if you strip out ali baba? >> nothing. >> are looking at negatives or just at zero? >> dan rosen is the guy who did this deal for alibaba that is created this tax problem. with a market cap of $46 billion in asian holdings at $40 billion , the core of yahoo! has a -$14 billion valuation. the market is figuring out that there will be a tax bill of more than $14 billion perhaps. that is the question. how much taxes are going to be taken out? will they find a way to spin it into a separate entity that borrows money, gives the cast -- gives the cash to yahoo!? that is a possible way this could happen. i have talked to can goldman chief financial officer many times about this. i talked to marissa mayer as well. i can tell you, they're getting supplies from -- every advice. >> is it hard for you to understand to tell the story from yahoo!'s eyes? i do not know what the strategy is. >> they took a very strange pr approach. >> as in, they didn't? >> they told friends not to speak to me. >> hold on, that is typical. if you are a celebrity, a ceo and someone is writing a book about you, you're telling your homeboys let's not say anything. that is not unique to marissa mayer. >> it is interesting. a lot of people are giving them advice. shareholders are having meetings with the board saying, you need to figure this out. the impression i'm getting from management is, does everyone think we are idiots? of course we have the best tax guys on in the world. >> they have said exactly that to me. you think because you cannot get this tax person to talk to you maybe we're are using that person as an advisor. they've been working on this for a while. i think that is the exact sentiment they've offered. >> they are not the first people to do this. it is my best it is not like this is the first. >> unlike a lot of other companies, once they offload this, what if they got? >> that is a different question. -- what have they got? >> that is a different question. >> they've been developing a whole new series of technologies to allow them to roll out ads in the most modern way. they have tom miller, an asset -- tumbler. the numbers on tumbler starting to look interesting. things going on behind the scenes. you will see a business that is creating a hundred million dollars in free cash flow every year. $800 million value for free but the market could change tomorrow. >> do people hate yahoo! unjustly? other other tech companies and worse a spot? >> sure. they are -- just not growing anymore. you're comparing what is going on at yahoo! versus what they set out to do, which is to become a fast-growing company google or a high flyer. >> just because they are not the superstar google or facebook, can't they be a solid b player? >> memayer -- you are looking at growth. if they can show some growth they start to look as healthy as microsoft, which is much healthier looking than yahoo!. >> does this just happened to big tech companies? they do a lot of acquiring and do not focus a lot of money on their core business. is this the way it goes? >> the natural lifecycle of a company. at some point, you need to optimize and return profits to shareholders. that is an argument. i want marissa mayer to go to shareholders -- >> you want her to endorse your book? >> of course. it is snowing out, read this book, you'll enjoy yourself. this is selfish too. i want her to go to shareholders and say, we're going to give you some of the money back. will invest the rest of it in my plan and if you do not like it try to get me fired or sell the stock and by other equities. >> she need a war chest to figure out her next deal. >> they already have $12 billion in cash. it is a cash generating business. there's a lot of worchester there. -- there is a lot of warchest there. they're going out and acquiring companies, just to get programmers because it was the fastest way to get people to change the internal culture by bringing in new people. they've been doing a lot of that already. the innovation of that business has been hard to come by. it is hard for tech companies to keep that growth spiraling on. so many people used to work at yahoo!, saw those assets underutilized and left because the could not find a way to utilize them. >> nicholas, you laid out what you want to see mercer mayer do. corey what you want to see her do? >> this whole notion that they will spin the whole thing off. the growth and ali baba is a terrific thing to witness. they have a chance to participate. particularly, it out of bubble to off cash, it might be useful for them to keep some of that and not spin off the entire thing. >> to what end? >> nicholas carlson from business insider and our own cory johnson, joining us from san francisco. stay with us. ♪ >> welcome back to mark -- welcome back to market makers. scarlet fu has the details from the breaking news desk. this side of the pond, that side of the pond, we're already. -- we are already. >> stocks to for the first time in nine days. all 19 industry groups are lower today. on related companies leading the selloff. royal philips coming out with their own disappointing -- let's not forget, creek banks continue to decline. they are off by 5% as a group. the overall athens asp lowered as a result. one thing that has a lot of people flummoxed is the trading currencies. there was a big spike in the middle of the chart. a lot of people wondering whether that was the swish -- swiss national bank intervening. it is volatile. not what you would expect to see. a lot of questions over what the s&p plants to do next. this is all weighing on u.s. markets. we talked about corporate results from microsoft united technologies, all weighing on the broader market. you can see the decline of 30 points for the s&p 500. the dow industrial, 29 members lower. only pfizer is higher even though it had disappointing results because of patent expiration and a stronger dollar. pfizer is looking for deals to drive earnings growth. perhaps that is why it is king the trend. -- bucking the trend. apple results after the bell. >> thank you for bringing down the latest in global markets. high flyers have been temporarily grounded. the form -- the storm forced airlines to cancel flights. we'll find out if they jumped the gun. ♪ >> live from bloomberg headquarters in new york, this is "market makers." >> it is 11:30. i am stephanie ruhle. >> i am alix steel in for erik today. >> we are in the midst of a global market selloff. they are all in the red. you can blame poor earnings for the 2% plunge on the dow. it is being led down by microsoft and caterpillar. tony what do you make of this selloff? this is going to be the worst day for the dow in over a year. half the people i know are not even at work today. they are going to be freaking out at home. >> i had to maketh through the tundra in the 50's here. >> you know what? i do want to hear it. >> i am a new yorker. i feel for you. earnings for a number of prominent companies did not come in as good as expected. it reflects the strengthening of the dollar. the rover over one million corporations in the united states. the focus in markets -- if there is any negative news associated with things that have given investors anxiety recently, it can affect markets negatively. >> what is interesting to me is that what we have pointed her finger at -- our finger at, we are seeing reversals of that. where is the correlation with stocks? >> consider that the move in oil and the dollar means movement of capital. think of it as some form of creative destruction. some money will go from one pocket into another. look at the consumer confidence index released by the confidence board. some key readings are the highest since 2005 in terms of expectations and beliefs about the job market and job availability. the weight of the economy will probably be on the consumers' sh oulders this year. we should stay focused on the beneficiaries of the drop in oil and the movement of capital. the united states will be one of the key beneficiaries. india is another one. the sharp rise in consumer confidence is a clear example of this disruption and how it can be very disruptive -- beneficial. consider what was said by the new york fed president. he said that each $20 drop in the price of oil would be a $670 billion boost to the global economy. it has fallen $50. the boost comes out of someone's pocket. >> i know you don't have a crystal ball. let's look ahead today's. -- two days. let's say apple crushes it. will we be ahead of where we were yesterday? >> thinking more generally and bigger picture, any good news as it comes along, any good news will serve as a catalyst to bring investors back to the fore. throughout the world, interest rates will be low throughout the rest of the decade. government bonds are yielding less than 1%. bonds in europe are yielding negative rates. that will prompt investors to think higher returns -- seek higher returns elsewhere. if there are good returns in apple or even in macro data investors will be looking for yield and return and they will move outward along the risk spectrum. in the final analysis central banks cannot produce growth. it is up to national governments in the end. for now, it is still a big leap of faith. >> for sure. european and greek stocks got hit hard today. it is all about europe again. >> one of the three things i would say today along with earnings and the idea of the central banks producing growth -- we would say that with respect to greece, there will be no exit, no default. a lot of nervousness as they try to renegotiate the terms of the agreement with the troika. in the end, investors will be thinking more about the ecb and its influence on europe. >> is there one data point that you think is the most important? there is such a data dump right now. >> thinking in the next few years in terms of europe and central-bank policies credit. me on an island. give me a credit statistic. is it working? what the ecb is trying to accomplish? it has worked for the fed. compelling banks to lend. they have lent, but they have not lent vigorously. if money gets returned to banks it is extinguished, it vanishes. this deflation is very negative for companies, incomes, people. the credit statistic. will banks lend? that is one of the key things to watch. >> you said the dreaded word deflation. what is the possibility we will start seeing that? >> not as likely now. consider banks factories. banks have to take the money and lend it. as they lend it and re-lend it, one dollar can turn into eight dollars. this means money creation. the idea on inflation is that it is everywhere and always. you remember the idea from milton friedman. the likelihood for deflation is very low. there will be some ticked downward in core inflation readings, a tensor to -- tenth ofr two. we expect stabilization in the current range. >> thank you, tony. braving the elements in newport beach, california. [laughter] >> we stand by for mayor bill de blasio as the city tries to come back to life. >> i think he is about to take a lot of heat on a cold day. ♪ >> google shares have underperformed the past year. our guest host says there are lots of reasons and that the company could be in a longer-term decline. what is the number one thing wrong with google? >> google invented the business model to make money on the web. here is what is going on with the web. mobile usage surpassed desktop devices. on mobile, people are much more likely to use apps instead of the web. the web has become a smaller piece of the pie. >> i shop on amazon on my app on my iphone, i don't google diapers. >> that is a more granular look at it. the one big threat is that web usage is not the biggest part. the second one is that people are starting to trust amazon -- they are going fair straight to buy things. instead of starting out and being like, i'm going to search for a jacket to buy on google and a look at up on google and they go to an e-commerce website. they open up their phone, hit the amazon button. three buttons later and it is on the way with free shipping. >> google is backed into a corner. what can they do? >> they are in a tight spot. everyone is paid on stock compensation. startups are coming along and saying, you are not really getting the money you deserve, come work for us. >> one more time? they cannot leave. >> they can leave when someone comes along and says, look at us, come work for us. it is part of the e-commerce -- ecosystem in silicon valley. i talked to someone in palo alto. he was saying, it is getting too easy for us to hire googlers. >> is the problem that there needs to be a new product or do they need to monetize better and become boring? >> it is interesting. they might have something of a distracted ceo. he is investing in moon shots. self driving cars, google glass a robotics company. all of things could be a gigantic business at some point. like android. but when was the last time a world changing technology came out of a giant company? >> is that because they simply can't be bothered of the humdrum of running a regular basis? -- business? >> that is white is good news that larry page took a step back -- why it is good news that larry page took a step back. there is hope. even little things are challenging. youtube is supposed to be this great video at play and facebook is now investing big time in advertising on video. >> are investors going to be ok of google starts focusing on monetization versus the big sexy products? >> investors want to see them doing these things. they also need google to work on the optimization. one idea i heard is that maybe google will start charging developers more may be the same amount apple charges developers and its app store. >> do you think google glass is a fail? >> i think it is a big fail. [laughter] it is done. it is over. >> i don't want it. >> congratulations on the book. [laughter] >> nicholas carlson, the author of "marissa mayer and the fight to save yahoo!." get the book. sit by the fire. it's not a lot. read about what marissa mayer is going to do. >> we will be back. ♪ >> ims am scarlet fu at the breaking news desk. we are still looking at losses on u.s. stocks. of the 100 biggest stocks on the nasdaq disappointing results. you have economic data including durable goods orders which showed a fourth straight month of decline. weakness from overseas. that also helps to drive major indexes lower. apple and yahoo! report after the bell. people are looking ahead to see if that ends the selloff. >> new york and the weather. we may have dodged a snow filled bullet. matt miller got the gnarly assignment to navigate manhattan streets in his ford pickup. part of his assignment was picking me up and taking me to work. >> this is my ford f1 50. we are going to drive it through the blizzard. ♪ ♪ we will get one of these boxes for stephanie ruhle. let's do this. ♪ so we have stocked up on everything we need for the storm. we have pretzels. blueberries. fiber one bars. everything from water to batteries to oranges to tennis balls. those are for steve. there is nobody else here. gas stations are not packed. people are not lining up around the block. nobody is preparing for the zombie apocalypse. it does not seem that bad. it is just snowing. we put 33 gallons of gas into my big, black behemoth. we are going to take it on the 17 mile commute. hopefully we make it through the blizzard of 2015. ♪ >> that should have been a telltale sign that it was not going to snow that badly. matt was so well prepared. if it was truly going to be an apocalypse, he would've had no milk, no water, no gas in his truck, no provisions. what sense did you get a cosco? >> there was hardly anybody else at costco. the home depot parking lot was the emptiest i have ever seen it. nobody seems to be sold out of anything except gas cans. that was the only thing i was unable to buy. they said that people have come a few days earlier and been preparing ahead of time. i found that hard to believe area did i think most people were not as worried about the snow about this great blizzard of 2015 that we were all supposed to be expecting. we survived it. >> you and i survived it together. it was better than the normal right for work to me. i rarely get clementines blueberries, and peanut butter pretzels. what are people at the new york stock exchange telling you? are they annoyed? >> no. the new york stock exchange it is the one business around here that is open. >> the only person i want to hear from more than you is mayor de blasio. we are going to take you straight to his report. on the snowstorm. >> this storm was real and it was as big as it was projected to be, but it moved eastward. thank god for that. a lot of other people in the metropolitan area are hurting quite a bit and going through a tough time. a lot of people in the northeast are going through a tough time. over two feet of snow in a lot of areas. here, in the vast majority of the city, we did not even hit 10 inches. 6-8 inches has been more typical in most parts of the city. still some snow happening today. we might pick up a few more inches. obviously, the worst has passed. put simply, we got about half as much as what a lot of the projections had been or even under half as much. again, if you look at eastern queens, where i was this morning, some parts of eastern queens got 10 inches of snow just literally 18 miles to the east -- there were 20 inches of snow. literally, a distance of 18 miles, twice as much snow in that part of long island. further out in suffolk they have gotten 25 inches already. there is no question how serious this is. how serious it was projected to be in the kind of precautions that we had to take. the good news is that the people of the city understood how serious the threat was they took the travel ban seriously, they got off the roads after 11:00 p.m., and that allowed the sanitation department to do an extraordinary job. i spent the morning in different parts of the city. i was out in bayside and howard beach in jamaica center. i was out in staten island and other parts of staten island. what you saw was an extraordinarily effective response but sanitation department. that is in no small measure because people did a great job of getting out of the way and helping sanitation to do what they do so well. they were out all night nonstop and they continue to work intensely to keep the city up and getting us back to normal. just some recapping. at 7:30 a.m. today, we lifted the travel ban. staten island ferry was backup immediately at that point. the subway system, the mta quickly coming back to life. it will not get the full weekday capacity today. it will be the equivalent of a sunday schedule, which is basically about 50% of normal capacity. the cleanup is underway, going well. but it is going to take today and into tomorrow to continue that cleanup. the reminder is that even though we did not see the worst, it is still very cold out there. >> that is mayor bill de blasio speaking about the ramifications of the snowstorm. you can continue to watch his remarks on bloomberg.com/tv. we are signing off here on "market makers." hopefully erik schatzker will be back tomorrow. alix steel, thank you very much. tomorrow, we have bart chilton as a guest anchor. for now we are signing off. i am sending you want to the newsroom where scarlet fu has more on why we are on the markets. take it away. >> let's get right to it. we are off the worst levels of the session. the new york stock exchange and the group that makes recommendations on the bond markets both wanted to be business as usual. there is a move into safe havens. the dow got within 10 points of a 400 point plunge. it is off its worst levels of the day. the vix is biking hard. joining me for the options insight is an investment advisor and equity armor investments. dan what would you attribute this selloff to? >> it is a combination of factors. the big factor is when you look at what is going on with the strength of the dollar filtering into the earnings cycle -- that is starting to put some concerns on the expectations moving forward. you are seeing the likes of caterpillar and microsoft showing stress from the stronger dollar. if -- >> before they got started, there was lower than average trading because there were people out because of the weather. but that is not exactly the case. it is higher than the 10 day average. >> it is because of the significance of the moves. you are seeing some resetting of some significant options positions when you look at the likes of a caterpillar. apple is coming out after the close. at&t. yahoo!. you are seeing repositioning now that the market has broken down below its 50 day moving average. >> the vix making its way down. where do you see it by the end of the week >> if we continue this trend lower you will see the vicks continue to stay elevated. if you increase the floor on the vix, we will push to the 200 level on the s&p. >> you have something on the s&p etf for your trade. what is your strategy? >> basically, in line with what we just talked about. we are looking at further weakness because we broke back below the moving average. i am looking at buying a put spread. it gives you nice protection over the next couple of weeks. it feels like the momentum will continue to push to the downside. i think that we could see that in short order if we see the trend continue. i like what you said about the 50 day moving average. >> we have broken below that level this morning. thank you so much. we have more markets coverage as the day continues. we have a selloff in equities. "money clip" is up next. ♪ >> welcome to "money clip" where we bring together the best news stories, most important people. i am pimm fox. forget the snow -- shovel out of the stock market selloff. a drop in durable good orders and a profit miss at caterpillar, and the bears roar. around the world, europe's political leaders get ready for a new regime in greece. why is everyone so positive?

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