Bill. I mean, with tyler. And sue. Right now. Halftime is over. The second half of the trading day starts now. Bill griffith often imitated, never duplicated. Im tyler mathis. It is an hour of power filled with questions and answers. Here are three for you right now. First, will white house chief of staff jack lou be the next second . Lot of people saying yes. Well get you the answer. Second, you can bank, or can you, on solid earns on the solid sector . We will have the answers on the biggest of the banks and how bad is it for boeing . How much damage will the recent run of problems for the socalled dream liner due to boeing and company shares. Three questions this hour. Three answers. Sue . Full of answers, live as always at nyse. I hope so, ty. We will start with a question. Will jacob be the next nominee . John harwood confirming he will be nominated to replace outgoing secretary of treasury tim geithner. But can he get through the senate . That the question. John is here in new york with perspective on that. What do you think, john . Yes, he can. He is liked across the political spectrum. He is an effective liberal serving tip oneill in the past. But we know that second term cabinet are beginning to fall into place. We have had the National Security members of the team named in the last few days but now jack lew will be named, we expect tomorrow, to replace tim geithner who has been wanting to leave for some time. Here is what president obama gets, someone with vast experience in handling capitol hill and dealing with budget negotiations. Hes been a part of almost lever r every big budget negotiation the last couple of decades. Secondly, someone who will remain part of his inner circle and genial personality. What he doesnt get is the experience tim geithner brought, years of financial regulation. Tim geithner headed the bank of new york. He doesnt have the ties to wall street that a wall street executive might provide. Jack lew did work at citigroup briefly, but he doesnt have deep ties there. This is a government person, but the president decided that thats what he needs in a time when he will have a pro trektive fight with republicans over spending cuts, over the budget, over the debt ceiling. This is where jack lews experience and knowledge can come in and i would expect, sue, and tyler, that he would be confirmed pretty easily. Even though he has tough questioning at confirmation. Lets bring in steve liesman. He is low drama, low confrontation. He doesnt have wall street regulatory. Who is lew . I think the first theng i will do is begin the series of puns beginning with jack lews name. Let me say more about jack lew, we call this one, you dont know jack. Of course you do. This is a financial education. Beginning with harvard and georgetown. But that never disqualified anybody. Tip oneill 93 and 94, special to president clinton. And thats what john harwood was talking about. Incredible expertise with the budget. Moving on in 2006, New York University as executive adVice President. Then a stint at citigroup. First at Global Wealth management and next in a controversy by the way that comes up with a large bonus he got while citigroup was getting tart money. Finally reenter the administration. Im sure the administration will make a cot of, as secretary in charge of of resource management. And second stint of omb. Then white house chief of staff to the present. Lets look at positive. Some private sector banking experience. That ends up being a negative. Close to the president , you have treasury secretaries with more or less connections to the white house. Finally ton negatives, is this the guy you want in office during financial crisis like you had with geithner with his experience at the new york fed . Not really viewed as a banker. Doesnt know finance man sters. That can be cured. Of course republican opposition, tyler, i will tell you, there was a story in Bob Woodwards book in change boehner said, dont give me jack, lew. He said no, 999,000 out of a million. Of course John Boehners opinion doesnt matter. He is at the house. Has to be confirmed by senate. I believe it was unanimous or thereabouts. I dont mean to betray the house secrets here. Do you know, lew, at all personally . Ive ml met lew a couple tims pip know him as a guy whose been in the saddle during that, not afraid to use government where is geithner likely to end up . Any ideas . Dartmouth . A lot of talk about that. I dont see him going to take a big job at a bank though certainly after all of his years of Public Service you would think there is a massive temptation for him to cash in. Lets talk about what is really important here np jack lews signature. Oh, yeah. Lets dee some handwriting analysis there. See it on the dollar. This is the worst qualification. Robert ruben. Not bad. He could be treasurer secretary. Declaration of independence. Here wz oh, not bad. Here is what we know to be jack lews signature here. No w no. That is one beautiful let me give you a context here. Geithner, paulson. Then theres in guy who somebody compared it to a shrinky. I would have guessed that is elmos signature. Could he be secretary of treasurer with that signature . We shall see. They may raise that during confirmation hearings since we did. Thank you very much. Management big banks will be one of jack lews biggest tasks and today morgan stapply is slashing 1600 jobs. Half from the United States. Other half obviously not from the United States. International operations. Cuts are expected in the next few weeks. This as investors ready for big bank earnings. Wells cargo kicking it off on friday. Good 2012 for financials. But what will earnings picture say . Kanla getting ahead of the numberes. Kayla . Despite big bank rally, since the beginning of the fourth quarter, fear that underlying earnings could take the wind from stock sales. Most big u. S. Banks will take a hit from this weeks mortgage settlements. Bank of america with steepest charges with settlements totaling 3. 8 billion. Wells fargo coming off its bottom line from occ settlement. Citi is 305 million and j. P. Morgan does not yet know. There are margins under pressure for several quarters at this point. Capital markets activity slowed in fourth quart wesh not as much as q 4. There are transactions with the uncertaintive the fiscal cliff. According to dee logical global, Bank Revenues down 3 compared to 2011. Loan underwriting down. Only up is dead Capital Markets for bond underwriting jumping 30 because of continued low Interest Rates. In fact, debt capital rights with the lowest share in the last 15 years. Sue, this is the potential surprise of course when you manage expectations that low there is whab do you know, potential for the surprise upside. Im sure a lot of people are hoping for that. Thank you, kayla. Mike mayo call are for a bank break up and is calling for investors, individual investors to take a bigger role. Bob pisani is on the case. Unfortunately he couldnt be here tonight. But had a gold think piece. Mike penned a piece to client which he called for breaking up some of the largest banks out there. Take a look at this. Mayo says banks underperformed for years and that revenue groaning is back and likely to be the worst since the great depression. He says banks needs to reinvent themselves to protect the bottom line given what weve got a week top line. He approves of recent signs that Shareholder Activism is increasing. Shareholders should down size and demerge to release trapped value. Increasing stock prices by onethird to onehalf for banks like citigroup and morgan stanley. The banks should start by spinning off as sets. It gets very specific here. He says bank of america should spin off brokerage business. He says j. P. Morgan should spin off Global Asset Management business and citigroup should spin off latin american business. And urges cutting back Office Expenses and just getting out of unprofitable businesses. Et sites ups shutting down its area. Leaving the agency after four years in a high pro feel tenure as wall streets top cop at sec. Sec saying in a statement that under khuzami, the division charged more than 150 individuals and entities with wrongdoing including 65 ceos, cfos and other senior corporate officials. They say that Financial Services financial crisis related cases resulted in 2. 68 billion in Financial Relief for harmed investors and 36 investors are barreder issing serve guys looks like the sec for now is looking at internal candidates to replace khuzami but let the speculation begin on who successors will be. Sue . Eamon javers. Thank you. Now breaking news on herbalife. This saga keeps going on and going on. This morning we told you about dan lobe of Third Point Partners took 8. 2 . He filed but took 8. 2 stake in herbalife. He had a tremendous year. What is interesting, is he and ackman, the stock short to the equivalent of 25 of the Companies Shares are allegedly friends. Today bill ackman came out with a statement with the stock saying our goal was to shine a spotlight on the company so that the world better understands the facts about herbalife. The outcome of this investment is not about purchasing square or anyone else longer short the stock. To the extent another investor, long or short, brings additional light to the situation, we welcome them. He has facts about herbalife. To send them there and learn more about his presentation. His threehour presentation. By the way, remember rb herbalife will present in new york two analysts. Thank you so much. The director of floor operationes with oneill security, you want it weigh in on herbalife or overall market. No. Just giving you the opportunity. Lets stay away from herbalife. The market look ford a reason to want it rally after three or four days of pressure. So i think alcoa gave it that. But they talked about what they saw in china as being very positive. So there for, the market just needed that. That could change tomorrow or the day after when someone says china is weakening so we are stuck in this very specific train does it give more creedance to the china story because of alcoas space and raw material space . I think it does. When young brands say they missed a number because chinese werent buying kentucky fried chicken, you take that with a grain of salt. But when you talk about aluminum and alcoa, what is the chinese looking like. But as we go through the earnings season, you will see that story more and more and investors will Pay Attention to it. Thank you so much. See you later. Breaking news. Tenyear notes up for auction. 30 years tomorrow. Ricky, how did we do . 9year 10month notes. The grade is c minus. Here is why, and i was kind. Wi has been at 185 1 2, offered at 185. And surveys thought it would price in the 184 camp. They are even more disappointed. But i think c mine us is the right grade. 3. 8. Been to cover. 10 auction average np is 283. 10e 10 auction average. On direct, 21 this one. 14. 8. What was it last month . An historic 42. 7. That dropped dramatically. So all in all dealers took 56. 7 of the auction. They have a pocket full of tenyears. Sue, back to you. Thank you very much, rick. Rick santelli in chicago. A terrifying compute this morning for fairy riders working in lower manhattan. Right near where i am here on wall street. Two blocks from where we are. At least 50 people have been hurt when the c street wall street ferry had a hard docking, it had hard term stopping at the dock. The ferry was in route from new jersey. The ntsb is investigating and ty, there is a very personal situation because one of the gentlemen wlos been critically injured in that ferry accident is johnny. We know him here as johnny utah. He works for barclays here at the new york stock exchange. We understand he is in surgery and we wish him and his family all the very best. We will be thinking about him and praying for him. Very somber mood down here. A number of people who work on this floor, ty, were hurt. I believe including one of the other freedom rider of that ferry is matt who joins us from time to time. Yes. I dont know if matt is there today. But some 50 people injured. At least two in the news reports, including individuals you just mentioned. Johnny utah. We wish them well as they go through recovery of course. Up next, boeing and push back. Phil la la bow has more. Phil . He is a hundred percent comfortable the dream liner is safe to fly. We will have more when power lunch returns. [ male announcer ] this is joe woods first day of work. And his new boss told him two things cook what you love, and save your money. Joe doesnt know it yet, but hell work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. Hell start investing early, hell find some good people to help guide him, and hell set money aside from his first day of work to his last, which isnt rocket science. Its just common sense. From td ameritrade. [ male announcer ] dont just reject convention. Drown it out. Introducing the allnew 2013 lexus ls f sport. An entirely new pursuit. Take a look at shares of boeing. They are up by about 3 move. Moving up after selling off monday and tuesday. Coming after several problems with the companys dream liner aircraft. But boeing doing a little bit of push back today aep phil has the story. Hi, phil. Hi, tyler. Boeing just wrapped up a Conference Call with reporters updating where they believe the 787 is in terms of reliability. Two pieces of news. The first one being that in terms of reliability after 15 airplanes in service, the dream plane is where the 787 was. Rebuilt of taking off and landing on time. Other piece of news has to do the lithium ion batteries on board. Here is what the chief of safety has it say about use of these batteries. We have over a million hours of safe operation of these battery cell in flight. So i continue to be very confident in the Battery Technology and system implementation of that technology. Remember, boeing traced the source of the fire on monday to a lithium ion battery. This is a picture of ntsb as they are investigating. The batteries provided bay japanese firm. They are also assisting in the investigation. I dont think everybody fully understands what we are talking about the complexity of the supply chain when it comes to manufacturing the dream liner. There are kparparts and compone worldwide and they come either in the puj tpuget sound area or in north carolina. A note this morning from sg collin and company saying the jal 787 flight was aborted yesterday because of 40gallon fuel leak ultimately took off four hours later without incident. This suggested the leak was from faulty maintenance and nothing else. As a result, that note, there are other bullish comments on wall street. What we see from boeing shares today a nice snap back up roughly 3 . Down just 1. 6 since monday. Tyler, this story, again, a lot of headline risk in there. And sue what we hear from beauing is they are comfortable with what they see from the dream liner, still investigating the fire but over all with reliability of the plane at this stage of manufacturing. Sue . All right. Phil lebeau, thank you so much. You saw the chart that phil put up. What is ahead for the stock in rick is reiterating his buy rating on boeing. Thanks for joining us. Why are you repeating the bye rating and whats the target . I think the stock is trending up higher. Boeing has taken a while to get the 787 out in customer hands but in flight or on the ground, issues, nobody is canceling orders and the airplanes are going back into very ready service. I think if there was a safety problem, the ntsb would have acted by now and secondly the airline would ground the planes. Boeing has a huge backlog and booked in 2012 twice the number of airplanes that they delivered to customers. That the highest number of deliveries since 1999. And they are ramping up production and earnings will go higher the next several years. All right. What is your target . I understand you had a 90 price target on it. Is that correct, or not . Oneyear price target is 090 but that could just be a starting point. Just when you think things couldnt get worse for congresss Approval Rating, it does. Wait until you see who is even with congress on that measure, next. Coming up, startups givis their 60second pitch. Im ceo of global response. We give you insight into the fastpaced world of venture capital. How big are your margins. How big do have you it scale to make this business profitable. Do they have what it takes . Are you in or are you out . Stay tuned to find out. [ male announcer ] at northern trust, we understand that if you pick three people, odds are theyll approach everything in their own unique way including investing. So we help clients identify and prioritize their life goals. Taking that input and directly matching assets and risk preferences against them. The result . A fully customized plan. We call it goals driven investing. You have unique goals. How about a portfolio specifically designed to achieve them . Expertise matters. Find it at northern trust. [ female announcer ] today, jason is here to volunteer to help those in need. When a twinge of back pain surprises him. Morning starts in high spirits, but theres a growing pain in his lower back. As lines grow longer, his pain continues to linger. But after a long day of helping others, he gets some helpful advice. Just two aleve have the strength to keep back pain away all day. Today, jason chose aleve. Just two pills for all day pain relief. Try aleve d for strong, all day long sinus and headache relief. The wlo the chous is trying to keep things going. Tomorrow walmart, biggest gun retailer in the country, will attend Vice President bidens meeting o on gun control. Lets take a look at where shares of walmart are trading right now. They are down just a fraction, down about a tenth or so of a percent. Ty . Sue, time for a total tyranny addition. Michelle cabrera crewso is here. This is on par with how americans feel about, get this, communism. Michelle, should we be alarmed that congress has 10 Approval Rating . Not at all. This is a big myth that supposedly Congress Gets along pt Founding Fathers of the