Varney company is about to begin. And the little room above the strip mall f roble avenue. This magic momt it is the story of where every great idea begins. And of those o believed they had the power to do re. Dell is honored to be part of some of the worldgreat stories. Tt began much the same w ours did. In a little dorm ro 2713. This magic moment the east coast waking up in the aftermath of another winter storm. More than a foot of snow falling in many areas, but please, look at this. Temperatures, once again dropping like a rock. Its going to be cold. Well below freezing, at least into the weekend. The Winter Weather making travel tough. Weve got the video, look at this, cars spinning out of control. Thats virginia youre looking at right now. A bus in new jersey losing control, flipped over, landed in a snow bank on the side of the highway, thats new jersey. And here is a number that youre going to hear a lot about today. 5 billion. Thats how much the economy supposedly lost during the last winter vortex. Not this one, the last one. Liz macdonald is here. Chilly this morning, isnt it . Chilly. Stuart i think that the 5 billion seems a very, very small number in a 15 1 2 trillion dollar economy. Yeah. Liz its a blip. Might have an impact on airline and restaurant stocks. They wont be travelling and eating out. But what happens, you pull in demand from future quarters and watch this, the new york fed says that Hurricane Sandy which caused massive deficit structure was a blip on the radar screen. They said it was statistical noise and maybe it will be white noise. Stuart that didnt stop the administration, president obama, last night blaming the weather on those lousy jobs numbers, that was an excuse liz but there is seasonal impact of course we saw for the weather. We dont know how much. Whether or not that holds up in the future in terms of scrutiny remains to be seen. Stuart i think were in agreement on this one. I think we are. Stuart i dont think that cold snap as unpleasant as it is is going to hurt our economy that much. I agree. Stuart lets give the market, the dow will be down a little at the opening bell today. Its mostly ibms fault. It has it just reported subpar earnings. This is the tech stock thats not going to do well today. By the way, United Technologies, thats a dow stock as well. Also, not doing well. Same story on the numbers side there. Our market bear, and youre going to meet him in a couple of minutes, listen to this, they says the dow will drop to 5,000 by the year 2016. Now, thats a bear, isnt it . Dont worry, were going to make him back it up. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool thinkorswim. From td ameritrade. 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Baby, there aint no Mountain High enough okay, everybody, this is a play on the word mountain. Aint no Mountain Higher, mountains of snow cover the northeast. Well over a foot in some areas, including, wait for it, the site of the super bowl ten days from now. A lot of snow there. So, here we have the profit reports coming in from the big names and so far, its really not been good. Ibm, United Technologies, verizon all disappointing. Larry levin in chicago, i say for the overall market. What say you . I would agree. Last year, stuart, the s p was up 30 . You know, every day people are watching the market and seeing those hits, right . Coach yesterday down about 8 . United technologies, ibm, all of those things taking big hits and your viewers out there own the stocks and its tough to watch seeing the money come off the table and i think a lot of people are going to start taking profit. Stuart you have 10 seconds, is it a start of a correction . Larry . I think its the start of a correction. Stuart we hear that, larry levin. Thanks very much indeed. Check the big board, its wednesday morning, were up 6 points, however, ive got to tell you that ibm is dragging the dow welsh the dow is up 17 points now, but ibm is way down and thats taking points off the dow. Nicole, how bad is it . Down 4 , down 7 1 2 dollars. So 181. 82. And the numbers missed and theyre worried about possibly lenovo and the deal and whether its going to go through and now that we have the Dow Jones Industrials down. Stuart we now have the dow down 14 points and i believe that ibm is drag the dow down 50 points in total. Nicole 50 points . See, that was the whole discussion we had yesterday about the dow, its a weighted index and sometimes you see the other markets jumping and with the dow in this case, obviously, thats huge. Stuart give me apple. I know that Goldman Sachs just upgraded them. Where are they . And thats a winner. The buy rating, up. 3 , not a big move for an upgrade. Stuart a buck on a 500 stock is not a big move. Youve got that right. United technologies, thats the largest maker of air conditioners and elevators. The all knowing analysts were expecting better numbers and didnt get them. I believe that United Technology is this morning, coach, would you believe that their sales fell during the christmas season. They were clearly hurt by their rivals, michael kors, kate spade and look at that, coach down 7 first thing this morning. Another stock for you, google, shares hitting a high yet again. Look at them now, please. Well over 1100. Closing in on 1200. Id like to put 1167, okay, trying to get it on the screen for you. 1167 on google right now. All right. Lets get to that market prediction, how is this for you . The dow hit 17,200 by may of this year, and then, it hits 5,000, all the way down to 5,000 in the year 2016. Here is the man behind the mayhem. Market watcher harry dent coming to us from tampa, florida. All right. Are you stocking up on freezedried food, bottled water . Are you a survivalist with an outlook like that, harry dent . Not quite, stuart, but weve had bubble after bubble for the last two decades and we keep having bigger bubbles and bigger burst. This is a very clear pattern. I have this year, this is why im making such a bold forecast. I have the four best cycles ive developed over 30 years, all pointing down at the same time for the next six years. It hasnt happened since 1930 to 34 and i have four major stock patterns converging on late april, early may, right around the targets, you said dow 17,200, s17,2 o 17,200, and the s p. It was early october 2002 it says the markets bottomed and we should see a run up. Im sticking my neck out and saying, look, investors need to be careful, this year especially in the summer. If we dont see something happen by then then maybe the government saves the day, but i think that the government has stretched this bubble so far, all its going to take is a trigger and this thing is going to blow. Stuart lets suppose i go along with your theory, your forecast. By the way, i admire you, youre cleancut and give the absolute numbers and dates ap times and i respect and admire it, where do i put my money . If youre right and we drop to 5,000 on the dow a couple of years from now, where do i put my money in the meantime . Well, you know, number one just get safe. Be happy to preserve your capital at the top of a bubble. Theres no better strategy than that. Let the bubble burst and see how far its going to burst and how difficult its going to get and buy in just like we did in october of 2002. Also the u. S. Dollar tends to be the safe haven. And funds on the u. S. Dollar uup will do well. Stuart youve the got to spell it it out. You say get rid of stocks, obviously, get rid of bonds, i presume. I dont think you believe that gold is going to be a safe haven in this. So just cash, thats it, just cash, dollars, thats it . Thats the simplest. You can be long the u. S. Dollar index or gold funds. You can be short stocks with a small portfolio. Stocks are in them, and when theyre doing you can have a portion. Depending your risk tolerance mix safe, cash, long u. S. Dollar and i agree, gold may go up in the early stages, i see gold falling to 700 in the next few years and thats not going to be the safe haven people think it is. A lot of our viewers say how do i go long dollar futures . How do i short stocks . A lot of our viewers dont do that. Are you basscally saying put your money into a Money Market Mutual Fund . Is that it . Because thats cash. Thats the safest for most people. Its easy. You can buy an inverse fund in stocks. It tracks the u. S. Dollar and its not hard to make the investments, you dont have to do futures, thats not something most people can do. Stuart can you disclose on this you own uup. Is that, do you . I dont presently. Im looking at making these shifts a couple of months from now. We dont quite our indicators shortterm say its close to the top. Its been bubbling in the last year as the previous guest said. Anybody with half a brain would say were going to have a 10 to 20 correction this year. My position is bubbles dont correct, they burst and i explain this in depth in my new book, the demographic cliff. Stuart anyone with half a brain. Ooh. Thank you, harry, appreciate you being with us. Amazon responding to reports, telling fox business it has no plans for an online pay tv service. The latest, liz . This is a story about content. This is a game had changing moment in whats happening with streaming video. Amazon has been moving into possibly licensing new content that it will likely develop. Thats what were hearing. Tv content thats watercooler ready to talk about at work the next day. 41,000 films already available at amazon. Tv shows including downton abbey, to stream. And thats where the game is and will it continue to roil the cable industry. Stuart ive got an obamacare headline from target. Its Cutting HealthCare Coverage for parttime workers, pushing them, effectively, into those government exchanges. Read anything into this, liz . Yeah, this is part of the growing trend of businesses basically delinking Health Coverage from worker pay and thats basically been an offering compensation since the 40s. Targets joining trader joes, home depot, walgreens and basically cutting back on parttime coverage and pushing these workers onto exchanges. Stuart all right. Were not going to cover you. Go elsewhere liz thats right. Stuart get off. Lose yourself. All right. Back to the market. Three big stocks hitting new highs, ive got them for you, google, United Technologies and facebook. Look at them go. Actually google just down, what, just 52 cents, but 1163 on google. Chinas online juggernaut, that would be alibaba. The ceo says its facing unprecedented channels when it comes to breaking into the mobile market. Alibaba knows mobile is where its at, but the company isnt there yet. The investors are taking note. The share prices of yahoo owners about a quarter of it. And here is vicepresident for more on this, how much trouble is alibaba in and therefore, how much trouble is yahoo in . So a tremendous leader for alibaba, it grew 60 last year year on year, it has not made as much of a dent in mobile as it should have. Stuart is that a big deal, really important in the alibaba world . I believe its important in the longterm. So just to give you a sense, china has three times the number of smart phone users as does the u. S. And the average chinese user is almost twice as more likely to buy something on the mobile phone than the u. S. User. All of that says big opportunity for alibaba. Stuart is this part of alibaba, the top guy saying to his employees, you sign up 100 people for the mobile service or else no bonus. Thats part of the big story, isnt it . Absolutely. Its funny to think that i have to believe that, sure, alibaba has a lot of employees, but even at 100 times that its not likely to make it dent. And i believe that jack ma taking it to the employees and saying we have to make sure that mobile is successful and we all have a personal stake in it. Stuart crid, thank you, we appreciate you being with us and whats going on with alibaba. Appreciate it. Lets check the big board, its wednesday morning and a pick of the day and were down 28 points. That puts the dow below 164. Call it the scott walker effect. A renewed fight to get public worker unions out of politics. 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Check the share price of netflix, its reporting earnings after the bell today, but get this, according it an analyst, netflix had a 33 million web subscribers in the fourth quarter. That stock is up. And strong profit at the Parent Company of chilies. And brinkers 49 bucks, up 3. Thats 6 right now. And right now, government worker unions are allowed to use taxpayer money to automatically deduct union dues and use them to fund political campaigns. There is a push in pennsylvania to end that. Were joined by matthew, the president of the commonwealth foundation. Welcome to the program. I want to make sure ive got this right. Is it, as of right now, does my money go through government unions to support political activity which i may not approve of, by the way, is that how its working at the moment . Well, its working that way, not only in pennsylvania, but many states and taxpayers dont even know it that they are subsidizing the collection, not only of union dues that are used for political activity, but Campaign Contributions, stuart, that are used to fund candidates and cause that is really are many times against the taxpayers interests. Stuart matthew, i just want to spell out the flow of money here. Im a taxpayer, i pay money to the federal government which then reroutes it. Does it reroute it to government unions in the the form of pay to Union Members who work for the government who then divert it to political activity . Is that the flow of money at the moment . Well, what were talking about really here isnt the pay to our Public Employees, teachers, state workers, but its really the subsidizization of the payroll deductions that go on that collect that dues money and the campaign contribution, bundle it, send it off to the unions and really its a subsidy that no other Political Organization enjoys. Only the government unions are able to use taxpayer resources to collect their Campaign Contributions and Union Political money. Stuart now, you in pennsylvania, you want to stop that . Youve got a bill before the state legislature that ends that practice, correct . We do. And this is not about busting unions, this is not about silencing their voice and policy debates. Its about making them play by the same rules as everyone else. The n. R. A. Cant ask everyone to collect their dues money or Campaign Contributions and neither should the nea. So this is aboness, its simply about making them play by the same rules, going to their members, asking for their Campaign Contributions and their union dues, directly to their face, rather than using taxpayer resources to collect that political money. Stuart are you doing or trying to do