32. 52. Well talk about that in a little bit. A couple things on todays watch list. We have a busy day for Economic Data and earnings. Weekly jobless claims come out at 8 30 eastern time. Expected to pull back after last weeks spike above 290,000. December durable goods also coming up at 8 30 eastern. At 10 00 a. M. , were going to get december pending home sales. Today is the heaviest day for earnings for the s p 500 companies. Were going to be hearing from ah l alibaba, caterpillar, under armour, and ford all before the bell. Then amazon and microsoft to close out the day after the bell. Tonight, the final gop debate before the iowa caucus. Donald trump has announced he will not participate. Im not a fan of megyn kelly. I think shes a thirdrate reporter. I think shes frankly not good as what he does. I think they could do a lot better than megyn kelly. Im going to be making a decision with fox, but i probably wont be doing the deba debate. Senator ted cruz taking trump to task for skipping that debate. He proposed a one on one. Donald is frightened by mark and sean and rush. Then well have no moderator whatsoever. A town hall of iowans. Ill tell you what, donald, you can invite half the people and control half the tickets. Well invite half the people and half the tickets. Each of us will alternate questions from the men and women of iowa. Cruz tweeted a link to duckingdonald. Com. The site asks visitors to sign a petition in favor of cruz and trump having a side debate. Still some speculation as to whether trump will somehow magically walk on the stage tonight. I dont think so. Trump tweeted back ab response to that. He said, sure, ill do the debate if we can have it in canada. There have been other people that didnt do debates. I was surprised. I did not remember that. Reagan back in 1980 said forget it. That too weird of a coincidence. This is a brilliant move. Publicity. Wounded warriors, doing it at the same time. He gets huge crowds. I think Rush Limbaugh is right. To not be there and still be the person most people are talking about, youre in control. The whole fox trump relationship is bizarre. I love the washington post. You watched the bill oreilly thing. The headline says fox wants to be king maker, but trump rejects the crown. That appearance was the 133rd appearance of trump. As hes saying stuff about megyn kelly and not appearing thursday night, hes on the orielly show. Its own position on this is changing. I think theyre trying to come to grips with the idea that trump might very well be the republican i did my voice for this. Theyre trying to come to grips with the idea hed be the republican nominee. They were very strident before. Now theyre like, well, you know, his tax plans pretty good. His tax reform outline is not bad. He might work with paul ryan. You know, suddenly theyre like like, wow, this might happen. I know what we said before, but their point is that, look, whether or not they like him, they do see that its a democracy. If people are going to vote for him, theyre going to get behind him. This is what weve seen on our show, right. Six months ago youd ask a ceo about trump, and the response you would not be now, nobody will say you know, this is the way its all gone. I still i know we talk all the time, i still say trump is more mainstream than Bernie Sanders. The dems dont seem to understand that. Oh, by the way, youre not going to get me to disagree with that. The funny part is it for were ever to be bernie and trump, i know democrats who will vote for trump. I dont know republicans who will vote for bernie. The bernie thing is really i dont really get it. Driving me crazy. Anyway, stocks to watch today. Can i just say on the bernie thing, in terms of iowa, very progressive for the democrats in iowa. 47 of them in a recent poll identified themselves as socialists in iowa. In iowa . In iowa. Its the extremes. The republicans are pretty far right in iowa. I love iowa. I love both their teams. Iowa and iowa state. Its weird. Theyre socialists . 47 of democrats in iowa describe themselves as socialists. Im still going to i still like iowa. Sorry. Anyway, stocks to watch today. I dont like socialists. Im sorry. It doesnt work. People end up much worse off. Anyway, qualcomm forecasting earnings for the Current Quarter that are below wall street estimates as command for its chips that are used in mobile devices weaken. That overshadowed the firms better than expected revenue and profit for its first quarter. The shares fell in after hours on that news. Too bad. Just under 3 . In booze news, diageos beer business grew 7 in the quarter. Emerging markets grew 4. 5 . Diageo is the maker of guinness and Johnny Walker whiskey. Takata reportedly preparing for the exit of its chief executive as the companys crisis air bags have been under fire for two years, which can explode. The issues have been linked to at least ten deaths. Ebay failing to grow sales in the critical holiday quarter. The firm guiding lower for the Current Quarter and for the full year. Still have takata up there. The strong dollar has taken a toll on its business. The shares were down, plunging in after hours, down almost 12 . We spoke to the relatively new ceo last week in davos. I feel so much better now. I look better. Back hope, youre feeling better. No, that horrible whatever the hell that was. Anyway, shares of paypal going the other way. This as the ebay spinoff reported strong Earnings Growth and better than expect ed earnings. And alibaba reaching a 900 million deal to sell its stake in chinas Largest Online provider in movie ticketing and services. The move comes as alibaba builds its own competing platform. Company set to report results later this morning. Used to come to our dinner. Now hes got his own stupid dinner on the same night. Ive noticed more and more people are doing dinners in davos. Copying us. Copying cnbc. We still have the best one. All right. Lets get a check on the markets again this morning. We showed you the futures. They are looking a little brighter after yesterdays session. Yesterday at the end of the day, the dow was down by 223 points. That was a decline of about 1. 4 . S p was down but only just over 1 . If youre looking at the dow, right now month to date, it is down 8. 5 . That puts it on pace for its worst monthly performance since february of 2009 when it was down by 11. . Why dont we take a look at the early trade in europe. There are red arrows there. The dax is down by about 1 . Cac is off by 0. 7 . Overnight in asia, the nikkei was down by 0. 7 . The shanghai composite down again by over 2. 8 . 2,657 is the final number there. Lets take a look at oil prices this morning. Oil prices up 22 cents. Yesterday oil was up by 2. 7 to its highest settlement since january 8th. If youre looking at wti over the last week, its up 14 . So things have clearly come well off their lows. Wti this morning at 32. 54. In terms of the tenyear note, yesterday it was yielding above 2 until we heard from the fed. Then it fell back below 2 , just barely. It was down at about 1. 98 . You can see the yield is back above 2 this morning at 2. 011 . The dollar hit a threeweek high versus the yen yesterday. That was trading at 1. 1906. The dollar a little stronger this morning. You can also see the dollar is down against the euro at 109. Finally look at gold prices. Gold hit the highest level it had seen since november yesterday when it was trading at 1128. This morning, its up there are 3. 20 to 1,119. Okay. Now back to the big corporate story of the morning. It is facebook. The company handily beating wall street expectations driven by Strong Performance in mobile and a very big jump in ad sales. Facebook now has, ready for this, more than 1. 5 billion monthly active users and more than a billion daily active users. Heres what coo Sheryl Sandberg told our Julia Boorstin yesterday afternoon. Were really pleased with the growth in the advertiser adoption on instagram. 98 of our top 100 marketers on facebook are now also marketing on instagram. Thats great. Its also the case that facebook growth is really strong. I think what really matters is that with facebook and instagram, we have the two most important mobile platforms out there. We have this common ads infrastructure that enables us to serve the right ad to the right person. And facebook is also spending right now on other big bets, including Virtual Reality, which i dont know if you guys tried, but we talked about it yesterday Artificial Intelligence, and drones to bring the internet to the most remote places on the earth. Heres ceo Mark Zuckerberg. Now 100 million hours of video are watched daily on facebook. Weve been trying now experiences like suggested videos. Were also exploring ways to give people a dedicated place on facebook for when they just want to watch videos. Here to talk us through some of the numbers, a tech and internet analyst. What is the proper valuation for this Company Given the blowout numbers . I think when you look at where they are right now, i think stock is certainly going higher. When we look at the acceleration and revenue growth, as sheryl said, you have two of the most important platforms now, but you have whatsapp and messenger. It is still evolving. I think facebook right now is the place where advertisers can buy reach and frequency on mobile. 130 for the next 12 months, thats your price target . 140. Its the place why you can buy mobile now, but ultimately its because of the reach and frequency that they provide, but they can also provide the measurement too. Theyre the ones making the investments in data targeting and conversion tracking. Ultimately, i think become able to provide that back to the advertisers. So when you look at the other aspects in terms of Virtual Reality and Artificial Intelligence and how those are starting to move into social as well, its where advertisers have to be. You look at the numbers and the profit numbers, forgetting about the revenue, but they also slowed down some of their expens expenses. Expenses definitely came in better, but there was a lot of concern around 2016 and the op ex guide. When you look at the beat on revenues, you have to think 2016 is going to be a stronger revenue growth. Really, your met margins are about the same when you actually bake everything in. I think that gave people a sigh of relief. Twitter. We talk about twitter constantly. One of the things these guys made clear yesterday is theyre going after twitter in a big way. I think so. Theyre the big losers in this. Twitter is a big loser . Twitter. As facebook goes after google to provide the highest roi platform for advertisers, particularly on mobile, and google sets off to do the same, i think what happens is a lot of other platforms just get left in the dust. I think twitter unfortunately would be seen as a third platform, but unable to have that reach and frequency in terms of that daily engagement of users. Twitter is at 16 a share right now. What do you think that stock is worth 12 months from now . We have a 19 target, which i think is among the lowest. The reason is, twitter still does have a lot of optionalty. Youre still seeing how a messenger experience can go transformed in terms of payment. Ultimately, it is an important asset to a lot of other businesses. Final quick question. Even though theyve limited some of their expenses recently, theyre spending a fortune trying to bring the internet to places that have never had access before. Theyre going to spend a lot of money doing this. Theres not a clear way to monetize this, at least just yet. Do you have any concern about that . Well, i think theres a couple of trends. One is that people are doing obviously a lot more through messenger in terms of search. As you see them opening up to Artificial Intelligence and other things, you stand to see these as becoming important commercial platforms. The fact theyre investing in connectivity and messenger and these are the first experiences people are having in remote areas, theyre straight to mobile. I think it makes a lot of sense. I think they can afford to do it right now. Why not take the lead . Final, final, since i already told you final question. Oculus, which i was talking about yesterday. I tried this thing in davos. It blew my mind. Id never seen anything like it in my life. How long will it take them to make money doing that . I think for now maybe im scratching my head a little bit at how the initial price point was on the headset, but generally i would say that it will start with gaming, as mark said on the call last night, and ultimately it will morph into other areas like travel and giving people an experience they may not want to sit in a flight for. It will take a while though. Good question. Thanks. Wait a minute. So youre going to take a vacation at home . It might feel like a vacation at home. Why not . That would be amazing. Those river cruises constantly. Im ready. They almost talked me into it. One of those places is budapest. Sit on your couch and go on a trip to budapest. Not sure i want to do the river cruise. How much is it . 600. So what do you think its going to be like . 600 for the hardware. How much do you think youd pay over 1,000 as you stack up everything you need to have. Then youre done. Then you can go as many places as you want. I think facebooks mission its how google approached ann dro android. Really focus on the platform and opening up that software so other oems could start to participate. So you have more content. So they have essentially their app store, et cetera. Joe asked a good question yesterday. Right mow its a little fuzzy. Its not like totally i mean, its very immersive. You cant even believe how immersive. But still not 100 clear. Theyre going to start with touch too. I think theyre making Big Investments in Data Connectivity and transport. A lot of that is speed, in terms of ability to get that resolution. Googles investment in fiber is what gives you that Crystal Clear clarity, even within paintings. Theres potential. Africa. Hey, lion, you think youre tough . Try me. You wouldnt be afraid of lions. I was on the 50th story of a building looking down, and im so scared to take a step that i literally said to the guy next to me, i got to hold on to you. You could climb everest. Do some of those squirrel outfits. I might even do that. As airport lines get longer, too, and. Gets more difficult to travel, this could be the way. Everybody is already in their basement. Now youre not even going to go on vacation. Everyone is just going to stay home. It was a in that pixar flick. What was the name of that . It was where everyone was flying around. Walle. On their cruise together. Whatever it was. Wow. But someone in my ear is saying youre always close to a bathroom, which would have been nice for me. You could actually be on the right . Commode. They first did this on all in the family. The first toilet sound. I prefer al bundy. From facebook to the broader markets, i think youre right. Whats that . I couldnt figure out yesterday. Oil recovered. The markets recovered. Then the fed said didnt raise rates. They sounded dovish, but they still left march on the table. They didnt say were not going to raise three or four times. They left their options open. So were back to not wanting them to raise. Thats what dictates markets. Although, they may have gotten a hangover if they dpot what they wanted. The markets would have rallied, but there would have been this remorse factor. Were still confused. It wasnt because they admitted things arent as good. They did say theyre watching the Global Markets. Joining us now, steve reiss and doug kote. So gentlemen, if the economy was actually doing better and was implying there would definitely be three or four increases this year, would the markets be going down based on that they would follow through with their increases . Dont we want the economy to be better . I think the market wants the fed to increase. Yesterday we saw the markets go up. There wasnt much of a change in their tone. Theyre monitoring the fed or a good economy . We want a good economy. What the fed did is really adapt to what was going on in the market. You look at inflation. Its nonexistent due to collapsing oil prices. You look at the high dollar. Its wreaking havoc across Global Markets, corporate earnings. You have tightening financial conditions. Thats actually doing some of the feds job. But we see that theyre going to go one rate hike increase instead of three or four. I think that really will be a good backdrop for the markets and the economy. So instead of saying we think, whenever you can, youre going to say Voya Investment management. Steven, did you get a cue . Why dont you try it . We at jpmorgan, are also positive on markets. We have a 2,000 price target on the s p 500 for year end. Thats below the highs from last year. Its roughly flat for the year. But from current levels, about 7 upside. What were doing is taking a much more selective approach to the different parts of the market. We started the year underweight industry, underweight materials. Theres this big debate on whether or not the u. S. Is heading for a recession. We dont think it is. More of an impact for the profits. You look at the industrials, materials, energy. Its about 20 of the overall profit picture. Then look at technology, consumer discretionary, health care, and even financials. Thats 65 . So while were likely to see another tough year for profits, were favoring those sectors where the Earnings Growth can come through. Overnight, the Facebook News is a good indicator theres still great secular growth. Amazing thats where it is. Well, its technology. Its bullish, but its so different. We have caterpillar on later. Theres facebook and caterpillar. Were not recommending any industrials. Theres no china, no oil impacting. I think at some point the market wakes up to that and realizes there is good growth out there. Then you see the consumer. Great housing numbers over the past few days. Existing home sales, new home sales. But its really going to come down to jobs. As long as the consumer is at 5 unemployment and we get a good jo jobs number next week, i think that will be a great backdrop. Were looking at we want to make sure whats happening in the manufacturi