Rarely backed where we were in 07. Cheryl melissa and lori, you have another hour. Melissa dennis is always so optimistic. I love that. Lori it is a good balance. Always need to opinions or more. Melissa good evening, everyone. Lori the dow about 150 points away from closing at an alltime high. More with us on why companies are not quite as optimistic. Melissa the freshman representative returns to tell us what he learned and if you still is hopeful he can break washingtons bad habit. So i dont know. Lori but the market is waiting to hear from in the market. Lou dobbs weighs in. Melissa Nicole Petallides standing by. The dow at the height of the day right now. Nicole that is right. That is really where we are sitting at this time, the nasdaq composite slightly higher and a gain of one quarter of 1 the best they continue to watch the market trend to the upside so many traders waiting for some pullback yet they dont think it is coming this moment because we continue to move higher and higher. While a pullback is due, we will break our alltime highs for 2013. Up almost 50 points. Some names on the move after earnings. The first one we will focus on is Avon Products. They saw a quarterly loss that wasnt as bad as expected and they see demand. 20 . Cocacola coming in with their numbers beating the street revenue came in a little bit light, there was concerns in europe for cocacola. The dow component down about 2. 5 at this moment. The fear index has pulled back a little bit. Lots of green on the screen from sector to sector. Melissa thank you so much. Lori u. S. Companies have a different outlook, almost 70 of the companies that have issued guidance for the First Quarter are anticipating negative earnings. Investors perhaps are not . Joining me now, senior manager of Global Market intelligence, before we get to the earnings news i hear you guys are getting back into your offices which were so badly damaged after hurricane sandy, how is that working out . Beginning next week we will start filtering in. Lori you havent stopped for a second, analyzing all of these numbers, so why are so Many Companies warning us in the First Quarter . We have seen this in the past quarter, the disparity between what investors are seeing and what the companies themselves are seeing. We see investors pay more attention to economic indicato indicators, pmi was up, samestore retail sales, overall a pretty decent Fourth Quarter earnings season. Going forward for the first half of the year, 58 companies have provided negative guidance compared to 22 positive. Negative to positive ratio very high. Lori where where is it going o change . Many companies have said we do see a strengthening u. S. Economy but it is still very weak. And we are seeing china although it is improving modestly, double nazi the same profits out of china was so into thousand 10, 2011. Really just more of the same weakness and the yearoveryear comparison. 2011, beginning 2012. Lori stay tuned for u. S. Economy delivered expectations for record corporate earnings for the balance of 2013. If you were looking at a weaker First Quarter, companies should make up ground through the air, that the basis . Speaker expecting fourthquarter to pose almost 30 per share. Little lofty at this point. Record earnings per share. It would be a record. The growth sort of on the average aside, we are posting record earnings per share. Lori Investment Managers have been telling us how fairly valued the overall market is. Would you agree generally with that assessment . Were looking forward pe of 14, the less than 14, so he averages 15. A bit undervalued for the s p at 1500 right now. Lori if earnings come in disappointing in the First Quarter, how do you change your outlook on the broader valuation of the outlook . To see the market will believe you are lagging on that reaction to whatever happens in the First Quarter by way of earnings . Despite the fact they have seen estimates follow it, we would get 26, 27 per share, still quite high historically and Global Market intelligence is expecting the s p to write about 1600 by the end of the year. Giving us a pe closer to the 15 historical level we have seen. Lori our focus is earnings and market, but the Federal Reserve to me cannot be that out of the equation. It looks like a fed is doing now with stimulus efforts. We are seeing investors react, the fed has held steady giving investors the confidence they need to bring the market higher. They do need to continue with that throughout 2000 o 2014. Have lori have a great afterno. Small Business Optimism rising last month according to the National Federation of independent business. Small Business Operation index edged higher by nearly 8 . 88. 9. Although the slight game was the second straight month of gain, keep in perspective, folks. Small Business Optimism near record lows. Three subindexes that posted gains, earnings and Business Conditions and sales still remain negative. Cannot say that is too much of a surprise. Melissa what i loved about that survey, an average they hired nine 100 of the worker. How does that work, exactly . Lori these economists are very technical minded. Melissa would you be offended if somebody calls you three 100 other worker . Lori i have been called much worse, today in fact. How optimistic is the chief economist . He will join tracy byrnes and ash webster next hour on fox business. Melissa president obama laying out plans for his second term and such to focus on the economy, you would hope. Peter barnes at the white house with the latest. Peter the president has taken his traditional walk from the west wing down the colony to the residents that he takes every year working on his state of the union speech. Joined by senior aides today, and this speech tonight will have a pretty familiar blueprint to a lot of voters, he expected to look and talk about getting a balanced approach to deficitreduction and getting money from higher tax revenues as well as spending cuts but he is focusing on mice, manufacturing, improving manufacturing in the united states, continued investment in education and infrastructure, and clean energy. One of his senior economic advisors said there is only one that the president is focused on. Melissa it is true it will be about the m word. Middle class. Investing in the ingredients that make our country a magnet. We are in a global economy, it is important we have the infrastructure, innovation, the fiscal stability, the skills that attract the jobs of the future. That would be a very central focus of the state o state of tn at night. Peter House Speaker john boehner said he expects a partisan speech tonight and when asked about the president and whether he is serious on spending cuts, i dont think he has the guts to do it, he doesnt have the courage to take on the liberal side of his own party, never has. Melissa i thought middle class was one word. Interesting. Dont go anywhere, lou dobbs weighs in on a state of the Union Address in what he hopes to hear from the president. Lori Charles Payne called it, shares of michael kors skyrocketing after on the earnings. Melissa and apple on the defense, tim cook sounded off on why cash isnt burning a hole in the companys pockets. Lori gold is unchanged, but silver and copper are trading higher. We will be back after this. 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Nothing can reverse copd spiriva helps me breathe better. blowing sou ask your doctor about spiriva. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow monline so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Melissa good, time to make some money with Charles Payne. He has not one, but a double feature. Charles in a little bit of a victory lap. Because we have to show you. Look at that. Melissa a fashion show. Charles all the women around here have michael kors watches. Buy this stock, buy this stock, at an alltime high. Exploded on earnings by 56 , the thing is it is crazy because it is not a cheap stock. The street is rewarding it for book, whole bunch of market share. The classic short squeeze as well. It will go beyond the real value at som sometime, but for now its amazing chemistry think it will outperform the industry for the next five years. Fossil is another name. They cut a deal. That is your girl, going back and forth, rooting for the exhusband. Melissa a complete rip off of her. Lori right across from one another, virtually the same thing. Charles i forgot what magazine where she ripped off everyone else, so he ripped her off and ripped off everyone else. There you have it. Fossil not at a 52week high. Who knows. If youre in michael kors, you have to ride the wave. Anybody listening to me, hang on and ride the wave. Lori why do i feel like he is talking directly to me . Charles because your watch is so beautiful. That is what happens when you are rich, dont worry about stuff like that. Lori do you want to help manage my huge fortune . Melissa thank you so much. Lori every 15 minutes, lets check in with nicole at the floor of the New York Stock Exchange watching a mortgage etf. Nicole take a look at the Exchange Traded fund. You can see right now off about a half a percent. Started 2013 in a very nice way. It has a 30 day s p yield of nearly 12 , Expense Ratio appears to be quite reasonable. We have seen it on an upswing this year, and so this is a way you can get into real estate funds, a mutual fund and inflow into real estate Exchange TradedFunds Combined 4 billion. Another way to play the real estate game if youre interested. Lorimelissa interesting, thanku so much. Lori apple ceo tim cook speaking at the claims the tech giant has a depression era mentality with its cash. Storing cached reserve on the Balance Sheet is significant. Listen. This is a waste of shareholder money, and it is a distraction, and it is not a seminal issue for apple. That said, i support it, i am personally going to vote for it. Lori Greenlight Capital is suing to block the prompts imac proposition t two. Melissa soon itll be a throw down. Lori that is kind of the nature of these things these days. People are so outspoken. The cash on hand at apple is huge, the share precipitous decline of late, over 700, they should do something for shareholders. Just saying. The crippled Carnival Cruise ship now movie but little progress for passengers aboard. Melissa plus, lou dobbs with what you should be watching for in tonights state of the Union Address. And take a look at how the dollar is faring in the upmarket. We will be right back. Im a conservative investor. But that doesnt mean i dont want to make money. I love making money. I try to be smart with my investments. I also try to keep my costs down. Whats your plan . Ishares. Low cost and taxfficient. Find out why nine out of ten large professional investors choose ishares for their etfs. Ishares by blackrock. 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The Vietnam Combat vet is facing opposition from fellow republicans for the vote and statements on israel. Iran, iraq had nuclear weapons. In new orleans a little rain isnt dampening the mardi gras spirit on bourbon street, the parade began around dawn and rolled to french quarters keeping some people away. A quick look at your headlines, back to you, melissa and lori. Melissa happy fat tuesday. President obama expected to push for investments in tonights state of the Union Address. Even as the national moves hours on spending, investments. A fox news poll say cutting spending will be more likely to help strengthen the nations economy compared to 13 who believe increased spending or investments would do the trick. Will the policy be swayed by tonights address . Time now for the dobbs. Lou for the audience, it is perhaps of interest, person who started this term of investments about spending was none other than William Jefferson clinton. He had such Great Success with it in one way or another every president since has used this term of art, this device. But anyway, we will hear more of that nonsense tonight as lori and melissa were saying means spending. Most americans see it as a way to strengthen the economy, restore prosperity begins with taking care of the spending problem, getting rid of the deficitdeficit and paying down e debt. Melissa was i investing . Have i been doing this wrong and speaking about it in correctly all the time . A whole bunch of them as he put it, you are set for life, i am sure. I am not sure i can quite figure out how you work through the algorithm on spending, but i know this, it is helpful to the economy and helpful to the manufacturers and i am all for it, keep it moving. When it comes to public spending like to see significant restraint. Lori putting the gdp debt up, it is amazing to me how little concern washington has about not necessarily deficits going back and forth, but the National Debt. If yowe have consistent growth t this level, it is shocking. Melissa this administration, this president and his good deputies are ignoring the reality the first report on gdp for the Fourth Quarter was a contraction last year. Ignoring 16. 5 trillion in debt, ignoring the reality this is the weakest recovery from recession since the great depression, it is the worst five years in economic terms since the great depression, and we have people running around in washington, d. C. , cute Little People who think they can ignore the reality and avoid, secretary of state clinton talking about those critics of the benghazi of soda so they dont live in an empirical world like we do here in washington. It demands people understand we have 23 Million People unemployed, this president is pivoting again tonight, were told he will be aggressive and bold. I havent heard from any of a single, new, original idea from this administration and i will bet you 5 right here and now that we wont hear a single idea that is new or fresh or likely effective. Lori if you have a couple more minutes come your take on marco rubio getting a response and doing a bilingual response. That could be construed as pandering. Lou it is pandering but that is part of the game republicans are now engaged in. They are going to fight the democrats for the hispanic american vote. Power to them because what does that cost . That isnt a significant price. He is clear he is for people who insist upon Border Security has moved toward legalization process. I think it is smart, it has to be done and the republicans have got to engage not only going after the hispanic american vote but how about all those other votes they l