For some economists, but stocks over there are in the green. Our roadmap begins with the coldest arctic blast in at least 20 years affecting more than half the nations population. Wreaking havoc on commutes, travel and businesses. And the s p meanwhile looking to avoid doing something it hasnt done in a very long time, that is, a fourth consecutive time since the start of the year. Morgan stanley downgrading netflix from underweight to equal weight. And scott cohen reports Jpmorgan Chase officials will avoid madoff related penalties and jury selection begins for the inside trading case for s. E. C. Capital Portfolio ManagerMatthew Martoma. A deep freeze is gripping much of the u. S. Forcing businesses and schools to close canceling thousands of flights. Its one of the coldest arctic outbreaks since the 90s and its taking a toll on the midwest, the deep south and even the east. That news is sending natural gas futures higher, its the lead of the usa todays money section. Talking about utilities and nat gas. More than half of the homes in this country are powered by, jim, we know what prices did last year. Use is up 50 year over year. And group is still hated. Theres a downgrade of chesapeake today. They are the natural gas play. I keep waiting for someone to say, do you know what, we got to own these stocks. They have been not great. Continental resources upgraded today, the oil play. The only stock that gets the big push is the chanere partnership and what do they do, they send the natural gas overseas, theres a difference between the cold and what the analysts are telling you to buy. Mark west is the owner of a big nat gas pipeline to the northeast where things are cold and no one seems to like the limited partnerships anymore other than they are exporting because of higher Interest Rates. They should be playing. Spot prices. We wont stay up at 13 or wherever we are in the new york area or where everybody is getting hit by the cold. In the old days someone would say come out and buches peek for the trade and now they are saying sell it with the trade. It seems to be out of sync. The market has been down. Three days in a row. Wow. Geez, sell, huh . Apparently. The old fiveday rule. Back in 91 when the s p had four days down to start the year ended up 26 so be careful about the maxims. But remember they had the dip and the gulf war, and, boom, you had the buy that and that was one of those moments where once the war was over you had this run of four weeks. People people look back, remember, people thought we could lose the gulf war because of the republican guard. Yeah. Not happening. The not the first time anyway. And jetblue made news last night theyll stop flights for 17 hours as of 5 00 p. M. Last night at some of the biggest hubs of the country. Do you like them here . Still like them. Delta was a terrific performer, one of the best five in the s p 500 last year. In the Fourth Quarter it was just a monster. I think that this combined u. S. Look at that stock was up again yesterday. Us airways just do not keep that in front of you and they merge with american the synergies youll see are extraordinary. Continental air our friend Herb Greenberg wrote the ceo of United Continental is the worst ceo whats incredible is the stock went up anyway. How powerful is that. He said ambercrombie is the worst to be fair. Maybe they sell coats or do they just sell six packs. I saw your warrior north face. Its a gorgeous coat. Thank you. Its eric wisemans latest and the ceo of vf corp and its the warm one and i bet you its being blown out. Someone jimcramer, take a longer term view. Look at this stock. Look what wiseman has down. A four for one split. Wiseman is thats not all winter coats. Whats going on there . Vf is theyve got timberland, they have tremendous socks. You probably dont care. One politician cares about socks on about the cover of the new york post. What about socks i dont know what thats all about. Go back and remember the sock reference. I remember the sock analogy. No and i was referencing the toes because apparently its all about feet for him. Thats true. But they call them the coalitions seven for mankind i know when you shop it you like it, right . Uhhuh, love it. Seven for mankind. Seven for mankind, its jt just about the United Nations and coalitions its about great brands and vf corp is the standup. And pbh has come back but thats more of a regular power score. Long underwear. Thats what i recommend. Really . Yes, everest long underwear. Thank you for that. Completely nonable to make money story. Trying to keep people warm. The inventory has to be low for vf corp. Lets talk about the markets. The s p 500 looking to avoid a fourth consecutive decline to start the year and it hasnt happened since 1991 when the year opened with six straight losses although, again, we had a very strong market year that year so dont read much into it. In the meantime, the senate has confirmed janet yellen and shell take over for ben bernanke on the first of the next month. And thats about all we can say there, isnt it . Yeah. Continuation of policy. We see every day. That Companies Make acquisitions. I continue to focus on the sirius satellite. How does a deal get done like that . You take a Balance Sheet and refinance it and there are still the theme and companies that havent refinanced yet. The question is, do you see as you point out, people accessing cheap money now because they fear its going to go away . Now, that, you know, again, 3 , 3. 5 , i mean, wherever we go, its still going to be cheap on relative terms historically, but we have had a period perhaps that well never see again. Many companies have done that, of course, as you pointed out last night as we talked about a lot, john malone has certainly been one of the more aggressive saying, hey, this is a great time to borrow, do it, do it, keep doing it. Fedex borrowed 2 billion to fund a buyback. Do we see companies pile on now because they fear that the end is near . Yes, yes. I also think dont overrule the housing housing, theres not enough supply to meet demand. Sherwinwilliams. I like keys research. They are saying hold the buy on sherwin, that had been a not that great quarter so this is a pretty interesting moment. Yesterday we talked about the flurry of downgrades that started the week. You said the street was fighting the upside and more today, mattel, humana, coors, and a few more upgrades to offset it. I see the individual investor coming back and also short rates coming up which, remember, its a credit balance story. The downgrade makes no sense to me. Look it, you got to get on board here. You got to get on board. This is a market thats been down for a couple days. Were talking off the overbought. Look at the Regional Bank glut and bob pisani was talking whether its right or wrong and the story continues today with more Regional Banks being upgraded. Im waiting for a kind of an overall every bank must be bought call. We still do not have that. And even the journal talking about vick trading where weve turned a corner where its not coming back. And the ability to trade and all sorts of markets whether it be foreign exchanges or bonds that well see low volumes from here forever. And the eft said theres no more cross border. The fte lead story. Its about the cds. Net interest margin. The ability to pay a very low rate and not move that up and meanwhile rates are moving up. Its what wells fargo lives off of, its all that matters. Its all that matters. Not for goldman sachs. Goldmans going up because all these stories are wrong. Like, they have some thesis, there must be some central desk that says, okay, dont write anything positive about the banks because they shouldnt be going up. Look at bank of america, will you . Have you noticed the rally . How about this one . Theres a recommendation of citi today, did you see that . They talked about citi being good . They say citis undervalued heresy. Isnt that incredible . Listen up, michael cobat hes very quietly reinventing the company. You said that. I like him. Lets talk about netflix, Morgan Stanley cuts it from underweight to equal weight and lowers the price target from 3. 33 down to 3. 10 and said heightened competition from amazon and hulu could challenge netflixs subscriber growth and lead to higher marketing and content cost. Churn for the long term for netflix 4 and they say the market is pricing in many more domestic subs. Im hearing the pushback, other services and finally getting competitive. Thats not what you want to hear obviously. People were reacting that this one was the winner of the s p last year and maybe it moved too much. I continue to think the franchise is worth more and the International Market is great and it has an amazon halo. You dont have to make a lot of money when you are in the blowout phase, and i think the downgrade ill use the term premature. Yeah. Its certainly a great value, 7. 99 would seem to be a very strong price point. Having both as a user, theyre compatible, i wouldnt replace one with the other. Not amazon for netflix but thats the point of this downgrade meaning that would be more robust, amazon prime, hbo go and even hulu and you will see people perhaps fall off. But at 7. 99 a month. Im saying on mad money they could raise the price and no one would know the difference. I believe that. This is a very powerful story by a really excellent ceo, 22 billion company i think it could be worth 30 billion. But to the extent that the stock price is already reflecting an expectation that they get to 60 million streaming subs in some period of time, with that churn rate and with growing competition, you can at least give come credence to the theory that they may not get there. They need to triple the number of people internationally about 9 Million International and go to 27 million and then you get there. That is not outlandish, the Business Model works because its very inexpensive and people do love the product. Remember, netflix is one of those Companies Like amazon, like twitter, they love the product, very 1980s style investing. They love the product and they want to own the stock. They would love to buy a tesla and they buy a tesla. Its not my style investing. Its pure momentum, but momentum is back and the analysts fight momentum on a daily basis. Oh, yeah, there have been stubborn bears on netflix. You are talking 60 price targets that have not moved for a long time. Like this Downton Abbey i know you love the thing. I love it. 10 million viewers. I have to go start. I did the same thing to walking dead thats what i did with all these shows. Im too busy reading jim cramers new book. And youll come to the barnes and noble signing and the costco signing on long island saturday . Which is it . Downton abbey jumped the tank. The shark tank of. What a segue. Thats the best ive ever seen. But then again you did sign a longterm contract with cnbc. Its all part of the same thing, yes. When we return the Consumer Electronics show and the showdown in tech. Stay tuned, weve got an interview with samsungs ceo, you cant miss that. And also ahead former gop president ial candidate ron paul on the fed as we get ready for the janet yellen era. One more look at futures. Not too bad here. It will keep you warm. This and that and she said thats that and i dont want to jitter jat make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Southern part of the u. S. Has nott ebeen spared the deep freeze across much of the nation. Julie martin with the Weather Channel is with us. Julie, good morning. Reporter in the deep south, in fact, we did get to a record this morning of 6 degrees and thats the coldest air weve seen since the 1990s. So, as you can imagine school is out across the metro area. Kids are home today. And the city actually had to open a temporary emergency overnight shelter for people just to keep them warm. Now, today we do expect temperatures here in atlanta to climb into the teens, maybe into the 20s, but were not going to get above freezing here until thursday of this week. Its not just here, but all across the deep south. In fact, the freezing line extending all the way down to tampa, florida. Carl . Julie martin in atlanta. Julie will be watching temperatures down there. Incredible. Mississippi, you name it. Gripping the entire country. My daughter goes to school in new orleans, i just went there because its warm. Huhuh. No more. Got to be inside the super dome. You dont get to say polar vortex too often. It sounded great, didnt it . Theres a split in the polar vortex. And then, of course hey, how about Global Warming . How about Global Warming . Its more complicated than that. Its really hot in australia right now relative to averages. Its a big planet. Very big planet. Thats a discovery downgraded today, but that would be a good show. Big planet. Even bigger universe. Meantime, back here on earth sources say Jpmorgan Chase officials will not be penalized as part of a settlement being negotiated with a government. The case involves allegations the bank ignored signs of Bernard Madoffs ponzi scheme. No individuals will be implicated in the expected 2 billion settlement which could be announced as soon as today. Meantime, jury selection begins in federal court for the Insider Trading case against former s. E. C. Capital Portfolio ManagerMatthew Martoma, a bird who is apparently unwilling to sing. Kind of shocking that hes not done that especially because we know that prosecutors would gladly have taken something he might have given them to implicate mr. Cohen, his boss. But in particular in light of the fact that steinberg was convicted, if there was ever a case where the feds were really to have thought the weakest opportunity to convict it was in the prosecution of Michael Steinberg which took place at the end of last year. Another more Senior Executive at sac. He was convicted, i believe, hes appealing now. One would have to believe martoma having seen that, what chance does he think he has when the doctor who he was allegedly paying off is going to testify against him . Well, i guess hes betting that the jury just is wont understand, i mean, because and that his legal bills will be taken care of. Right . Those cases are they can bankrupt anybody. Yeah. They can bankrupt anybody. But there is still a question as to how aggressively prosecutors are pursuing mr. Cohen even now. I think there was an expectation when we first heard about the charges, remember, involved trading in elan and wyeth that he would turn and give them something they wanted and he didnt and they went after the entire firm. Sac up 20 net last year. A very good year for a large hedge fund. Right. When you do the numbers which i did some time ago, the 1. 8 billion in penalties this year, mr. Cohen will have made that. One year. The story never dies. Every time i read the stories they always say its over for him, its over. And then i read the second round of stories. Does he have a great Public Relations team that says its over, how does it happen, every time he settles its over and every time i pick up the paper, its not over. I dont know. You know as well as any of us do certainly who by the way, you see the bottom of your screen, is going to hold a News Conference on the jpm case, 1. 7 billion criminal charges and deferred prosecution and walked through apparently that the executives apparently will not be implicated. They said people internally knew there was no wizard there, but what duty do they really have . I think this was one of the more questionable cases but it doesnt matter. In the end jpmorgan has become a free fire zone and i think just saying, listen, we got to get past everything, we have to have 2014 be as clean atiate as possible. I did not think that the government had a good case here but i guess it just doesnt matter. Last night on mad money cramer told you all about the s ps diamonds in the rough and how can you add shine to your portfolio today . Well get his mad dash after the break and one more look at futures and a lot of news coming over the next several hours. A lot more squawk on the street from the nyse straight ahead. Shine bright like a Diamond Shine bright like a diamond and the southbound bus barreling down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had the power to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did. In a little dorm room 2713. This magic moment when i first felt the diabetic nerve pain, of course i had no idea what it was. I felt like my feet were going to sleep. It progressed from there to burning like i was walking on hot coals. To like 1,000 bees that were just stinging my feet. I have a great relationship with my doctor. He found lyrica for me. 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Six minutes away from the open of trade. Lets ge