Get ready for the testimony of janet yellen, her first testimony to Congress Tomorrow before the House Financial Services committee. So were in sort of a wait and see mode today. Certainly are. Meanwhile, what a mess over at aol. The ceo now apologizing for citing the cost of providing insurance for, quote, distressed babies and plan to match 401 k payments only at the end of the year. Who should the ceo be looking out for first, his workers or shareholders . Well make the payments at the end of the year or no. That was easy. Also, that report that obamacare is going to cost the equivalent of over 2 million fulltime jobs. That just continues to rattle washington right now. It was a big focus of the sunday morning talk showinp morning talk showins morning talk showinhows, and no Tommy Thompson will be here exclusively. Hes ringing the closing bell for his organization tooteday. Hes got some views coming up. We know were going to hear a little bit more about it perhaps from the gop in just a couple hours time as they grapple with the debt ceiling. We have breaking news on General Motors. Phil lebeau has that story for us. Phil . Bill, General Motors has announced the 2014 compensation for new ceo mary barra. This year she will be making 14. 4 million. That is 55 more in compensation than her predecessor dan akerson collected last year. Of that 14. 4 million, 1. 6 million is in cash. Short term incentive makes up 2. 8 million and 10 million, a little more than 10 million, will be coming from her longterm compensation package. That needs to be officially approved by shareholders at the april annual meeting, but, again, mara barra will be making 14. 4 million this year. Guys, the reason theyre releasing this early, to clear up misperception that is can been floating out there on the web and other place that is she was not making as much money as her predecessor who obviously was fael, shes a female and the concern floating around General Motors is that the perception is that she would not be making as much because shes a woman running the company. And, phil, we discussed this on the program last week because i had raised this issue about hearing mara berra war barajas g half of what her predecessor so. Shes actually making more . 55 more. And thats not surprising. Their longterm compensation package, they no longer have the restrictions that were in place when the Treasury Department had a say in how General Motors was paying its executives. Now that they can make their pay more comparable to others in their industry, their peers so to speak as far as other companies go, they can raise that compensation up. So this clears up thats going to rattle around washington. The ideas that were swirling around. I wonder what she was making two weeks ago before the hue and cry. Doesnt hurt to have the whole world watching to see that theyre going to pay her. Thank you. Lets get back to the indexes. We are seeing a small deklaincln the dow, down 2 points. Lets kick it around. Our Closing Bell Exchange coming your way, gina sanchez, david kudlow, anthony chan from chase is with us at the big board. Axel merck is with us, and our own rick santelli. Gina sanchez, what are you expecting to hear from janet yellen tomorrow . What does the market want to hear do you think . I think the market and i certainly expect to hear that the recovery is fragile but the economy is still growing and that policy will remain unchanged. That will be the most marketfriendly maneuver and i think thats exactly what janet yellen is going to do. Anthony chan, a lot of people are talking today about the fact there will be a panel of experts testifying after janet yellen. They include some hawks like john taylor. How do you think that will affect the testimony, questions, and markets as they watch this all play out tomorrow . I think they will be asked questions based on what janet yellen talks about and, of course, the topics at hand. We know john taylor has never been a big proponent of all the stimulus that the Federal Reserve has put out there, so we sort of have to look at what these guys positions or officials positions have been prior to their testimony to get at least glean an idea of what theyre going to say, but my suspicion is janet yellen will take an evenhanded approach. If shes going to err, shes going to err on the side of caution, and at this point the caution is justified but with another employment report ahead at the next fomc meeting, i dont think shell reveal to mean cards. Do you think she makes any meaningful changes to fed strategy, especially considering this her first fed testimony and it might look like she disagreed a great deal with ben bernanke if she makes any changes at this point. Shes been laying low for a reason, because of the confirmation hearing. This is the first opportunity to speak in public. She maybe wants to get rid of that unemployment threshold for once and for good. The real challenge is all the recovery is based on asset pricprice ed inflation. As soon as those bubbles pop, the glass is half empty. They will work to try to reinflate the asset prices. She might drop some hits tomorrow, otherwise she will do so in march. We had Christina Romer on the program and she effectively said in not so many words she thought the taper was a mistake. I wonder how much of a minority view that is. Is that just something that people certainly more dovish on the spectrum think or is that view more widely held . Well, i mean, the tapering is pretty much baked into the cake here and deviating from it is going to cause quite an uphea l upheaval. She know that is. At the same time she cannot possibly be happy with those disinflationary forces taking over with the yields coming back down. She wants to reflinflate the economy. Were coming back from a great bust. Monetary policy is pushing against that. When you take the foot off the accelerator, the Deflationary Forces are taking over. Yellen does not like that. Thats not in her camp of thought. She will think of something, probably not yet tomorrow, but the market is pricing in a hawkish fed and thats just not going to happen. Were setting ourselves up for a surprise, if not for tomorrow, then in early march. When while, david, the markets last week, incredible volatility. The worst day of the year a week ago today, that 300 point drubbing of the dow. Then on thursday and friday we had the two best days of the year, and, in fact, we finished the week positive. Whats the market telling us right now regarding the economy or fed policy or the price of tea in china, whatever . I think the market is telling us to expect a lot of volatility in 2014. What we saw over the past couple weeks i think is a sign of more to come. You know, last year was easy. You just added beta to your portfolio and you got great returns. Were only a month and a half into this year and weve already had a 6 pullback in the markets. We think this year will be full of more volatility like that. As far as janet yellen tomorrow, your earlier question, there have been a lot of comparisons between janet yellen and ben bernanke. We think this is where she should take a page from alan green span. Saying a lot but not really telling us anything. I think for this go around it would be good for janet yellen to let the market have its certainty that quantitative easing tapering is on autopilot of 10 billion at every fed meeting. Thats baked into the cards, and the market has that certainty. Dont create any new uncertainty for the markets. I dont think that would wash now, do you . If thats what youre saying, i wonder is it safe at this point to say the correction is over . Thats the verdict that already, as bill was saying, kind of in the span of a week people seem to be delivering. I dont know. If we get another correction now, is that a double dip correction or the start of a new one . Weve had a nice rally back. Thursday and friday, the best backtoback days for the market in over a year. But, you know, were going to have more volatility ahead of us. Do we go down again before we go a little higher . You know, but i think what investors need to look for this year is a lot more modest returns than last year and how to diversify their portfolios for the ongoing volatility that were going to see, and that is diversification abroad, diversification in the long short Market Neutral strategies. Just throw the money anywhere and make sure you get a good diversification there. Rick santelli, what is the market trying to anticipate for tomorrow . What are you guys talking about for janet yellen . Well, i think actually can be summarized in something kelly said. She said Christine Romer wasnt a fan of the taper. I think what tomorrow is going to do is its going to divine which investing groups are in christ te Christine Romers corner. If you look at the market today, virtually all of the trades are very close to unchanged. I think after fridays number, theres still many investors that are unsure of exactly how much qe is going to be around in a couple of quarters. So i think that will be the point tomorrow, and i wouldnt underestimate how todays calmness could play into maybe a lot more volatility either tomorrow or after thursdays testimony on the other side of the aisle. Gina, it does have a certain calm before the storm feeling today, doesnt it . It really does, and at these levels, the s p is still a little vulnerable. I think most people who were really hoping to buy a dip were hoping to buy a dip down to 1700 and that just didnt happen. Part of that is because there is growth here. A lot of the concerns around emerging markets, those were really overblown, and were kind of getting to the other side of that. And so now everybody is looking at janet yellen to see if theres really concerns about u. S. Growth. I think that we are going to continue to see growth, but it is going to be a volatile year, and so at levels at this level, were probably going to see some potential, something is going to make someone is going to blink and the markets are going to fall out of bed again, and then were going to continue to peck along along the recori. Well, i think its safe to say we will get some good theater tomorrow the way they have it set up with that second panel of potential critics of fed policy. Well see how the market responds to that. Thank you, folks. Appreciate your insights. Thanks. We are 50 minutes away from the closing bell today. The dow at its low was down 60 points. Then weve come back. Its not been a very volatile day, but its sort of that wait and see attitude ahead of tomorrows testimony by janet yellen. Were down seven points right now. You could say the market is looking for direction today. Weve seen some pretty big moves in the last hour of trading recently so dont go anywhere. Things could look very different at 4 00 p. M. And go pro, the latest Technology Company to file a socalled secret ipo. Were hearing more about these lately and its kind of ironic for a company that brings you images no one else could find, and now theyre filing a secret ipo. And if its good for go pro, is it good for shareholders . Well find out. This is absolutely a trend to watch. Speaking of ipos, one of the best performing ipos last year, the ceo joins us next for the red hot business of keeping your pets healthy. Youre watching cnbc, first in business worldwide. Security solution to keep your Information Safe secure. Century link. Your link with whats next. Impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. With investment information, risks, fees and expenses time to take care of business with century links Global Broadband network and Cloud Infrastructure. We constantly evolve to meet your needs every day of the week. Okay. Mixed market here. The dow is still down. Were down 8 points at this hour but the nasdaq is having a praed good day up 18 points and the s p up 1. 25. There are some stocks making moves today. Morgan brennan . We begin with apple. Up around 2 . Carl icahn is dropping his demand for the company to buyback 50 billion of its shares. This comes a day after proxy Advisory Firm iss said it recommended that apple shareholders vote against icahns buyback proposal. S had bureau is the s ps top percentage gainer after the toymaker gave an upbeat outlook for 2014. And auto nabby surging after i alibaba offered to buy the 72 of the chinese digital mapping and Navigation Firm it doesnt already own for 21 a share. Its a 27 premium off its friday close. On the flip side, Medicines Company which fell after an fda panel said it was divided on whether to recommend approval of its drug to treat blood clots and stent procedures. Back to you. Morgan, thanks very much. The biotech space has been heating up. Check out pet Pharmaceuticals Company aratana. The stock is up over 280 since its ipo last june. Steven st. Peters, the ceo, there he is, and also with us a special friend. That would be tempe. Thats what a chihuahua looks like in winter when they they have to grow their fur. Tempe looks a little upset by the lights or the people. I dont know whats going on but tempe is looking a little peaked right now. How big is this market . You just made an acquisition of another company in that space, but how big can this industry grow . Yeah, i mean, we really dont know how big the market is for pets medical needs. Today 68 of american households have pets and theres over 180 million pets in american homes. So when you really begin to think about pets as family members that are aging with their twolegged family members, theyre developing medical needs, and so the medicines to deal with those medical needs, were really at the beginning of that market today. And so you guys are developing some of the medicines. What differentiates what youre involved with from and i realize its the subject, its the fact youre working on pets and not humans, but in a biotech space thats becoming increasingly populated, a ton of space, a ton of competition going on, how much roadway do you think you have for developing pet pharmaceuticals . So thanks, kelly. We really think that a lot of the medical needs that humans get, pets also get. So were actually accessing innovation from human medicine and then respes yating that for dogs or cats, really finding nuances in the biology that apply to a cat or a dog because as we know, you know, you wouldnt take a medicine as a human that was shown to be safe and effective in a dog. So we believe that if youre a dog, you ought to get a medicine thats shown to be safe and effective in your species. I lost a beloved pet years ago to cancer, and my wife and i after it was all said and done decided we wouldnt go through the chemo a second time. And we feel guilty about it because in part because it was so expensive to spend on a pet. Is that going to be an issue . Cost there is no pet insurance, Health Insurance out there to speak of, at least not on the federal level. There may be private pet Health Insurance, but cost is going to be an issue for a lot of people when it comes time to try and deal with the medical treatment of their pets. Yeah. So, bill, absolutely. And first of all, sorry about your loss. That was a long time ago, im over it now. I will tell you that theres hundreds of thousands of pets that get cancer, particularly type of cancer, and about half the people treat that. And so theres actually over 100,000 pet owners today that are treating their dogs and cats for cancer. So not all people will do it, but theres a very big market that exists today of people who are willing to treat their family members for cancer. But the cost, thats what im getting at there. How are margins . Are costs going up the way they are in Human Health Care world as well . One of the things thats different about the pet market is is it a private pay market. About 97 , 98 of the dollars are spent out of pocket, and so the orphan disease model of hundreds of thousands of dollars of therapy doesnt work, but we do know that 5,000 is not an unusual amount of money for someone to spend on a pet. And in terms of daily chronic therapies, a couple dollars a day people are willing to spend and do spend in the u. S. How long do you think its going to be before youre doing 100 million in annual sales . Well, i cant talk about our individual kind of revenue guidance, but the company at this point has over 15 products in development. Our first product we received a conditional license from the usd a last month. Its a product for lymphoma and well be marketing that product later this year, and then we have additional products that come to market over 2016. So really we have an entire portfolio of products, and so in terms of individual products, we dont really talk about it sounds like within a couple years. Yeah, thats the plan. Huge market. A big market. Steven, good to see you. Thank you, tempe. Its over now. You can relax. I would like to keep him around for the rest of the show. All the people and the lights will go away. Theres a lot of people you dont see around here, folks. Im sure thats what tempe is reacting to. Thanks. We have about 40 minutes left to go. The dow is down by about 7 points. The s p 500 slightly p lly posi. The nasdaq is up 19. One of those people standing by is former health and Human Services secretary Tommy Thompson. We will be waiting in on the latest obamacare controversy, on whether it will cost the equivalent of 2 million fulltime jobs. He says the law is fundamentally flawed, but he says it can be fixed, and he lays out his solution for us coming up next. Speaking of fiks, aol boss Tim Armstrong trying to fix a pr nightmare. But is that the future of these plans anyway. Well take a look. And this aol mes