a lot to talk about. >> policy front as well. the president unveiling a $4 trillion budget that he says is all about middle class economics. republicans say this is just asking for more taxes and it doesn't balance the budget. it does include a proposal to bring offshore profits back to america. it's very similar to a bipartisan proposal introduced by republican senator rand paul. he will join us to speak about the president's budget and we'll try to figure out if he's getting in the 2016 race. >> you don't want to miss that. plus could activist investors take aim at twitter and at the ceo. darren swisher wrote a piece that's been getting a lot of buzz and our jim cramer has said, quote, a, b, c, anybody but costello. we'll see how hots hot seat is for dick. >> it's a new month, we're kicking things off in slightly negative territory. the dow has been up and down. it's hovering around the flat line. the nasdaq is the underperformer, off ten. earlier it felt like flashback to december where we sat and sat at the 2,000 left for the s&p. a couple months later we're still pretty much looking at that level. >> let's talk about it. kelly conley from jhs capital advisers. sam stovall at the big board. tom metzel. brian jacobson from wells fargo and our own rick santelli as well. sam, you're a keeper a follower of the so-called january barometer which suggests that activity in january can foreshadow what will happen the rest of the year. january is in the books. what does it tell us about what could happen in 2015? >> that's right, bill. if you remember your old stock traders almanac. as goes january, so goes the year. and in the down years i think what it basically says is there's confusion. it's a confirmation of confusion rather than confidence and the average price change whenever we've had a down january has been a decline of an additional 0.7% for the remaining 11 months of the year. but you can still get a good guide from the sectors and sub industries that did well in january. >> kelly, the market still seems to be following oil. we had a strong pop on friday. today holding in there and some of the energy names are outperforming again. will it all depend on energy moving higher? >> wlgell, you know, i like the story of the strong dollar. i think a strong dollar reflects a strong economy, and i think that people are under the impression that because we're in this bull market going on the sixth year now, that it's going to end because of its age -- >> i can hear. >> don't really close on age. they close on recessions and there's nothing, in my opinion that i see out there that's indicating a recession on the horizon. u.s. yields paltry even though they are, are still better than europe and japan, so i see a lot of money coming into the u.s. market and i think the slide in oil, you know, on the front side we're seeing a lot of negativity because of the job losses but that's a huge tax cut globally and that can only help our economy here and around the world and i think that over the next couple quarters we're going to see that play out positively. >> tom, you're the guy that watches muni bonds. we'll talk later in the hour about the rush to defensive plays in the market again. i mean munis could be considered that. are munis overvalued as a result of people seeking safety and income at the same time? >> yes bill. i think that munis have underwe are formperformed treasuries. they're yielding in excess of 105% on the long end of the curve and given that as the economy gets stronger municipal credit gets stronger we actually feel quite strong about the potential outperformance of municipals versus other fixed income investments going forward. >> brian, what about you guys? do you feel the same way about this being a really attractive place for investors? >> i'd actually be a little cautious here. i do agree with tom saying about how mun nis are a very attractive place to be looking for opportunities. you certainly want to be careful about which specific areas nur you're looking at. high yield bonds are perhaps an attractive area as well if you shorten up your duration. as far as with stocks i'm a little concerned about the near term volatility. sam talked about the january effect. that didn't play out that well last year. we had a good year and the january effect didn't really confirm we should have had one. so i think we might be in store for some near-term volatility. however, i would view that as a buying opportunity. i think perhaps the downside would be very capped or maybe troughed here at around 1885, 1850 or so. any weakness i would be buying into. >> rick, sam did use the word confusion to describe some of the markets out there. now that we have january behind us, do you sense market confusion? we don't see a lot of the markets moving in lock step the way they normally would. what's your perception of the market message right now? >> well i think you have all the underdog investors aiming towards europe because if they get it right and europe doesn't go into a more prolonged recession, they will probably get a nice delta with the upside as evident by some of the performance on the dax of late but you really want to watch the italian and french stock markets more. with regard to the u.s. i don't know. i think just look at today. a split decision on income going up and consumption going down. the weakest ism since january of last year exactly one year january of 2014. basically 2.5% is what gdp was for all of 2014. so listen i think the markets are doing it about right with noq e. it's going to be tougher for stocks. zero interest rates will make more apples be able to come back and recycle liquidity in the stock purchases but even that dynamic may be running its course. i think you're really going to start to see the next several big jobs numbers make a big difference to kind of be the arbiter of the close calling with regard to is the economy reaching escape velocity or the same old new normal. >> this proposal president obama's proposal and senators paul and boxer, that repatriation holiday. do you think this will be quoodgood moves? >> i think it's better than nothing as far as it's a good starting point to discuss about maybe some corporate tax reform. more important than what president obama said i think it's going to be what janet yellen says during her monetary policy report in front of congress. that's really sort of what threw the markets into a tizzy last year. it was almost a year ago i think it was february 11th when she delivered that report and they pointed out about excessive valuations in the biotech and small cap media space. maybe what janet yellen says in front of congress will be more important than what congress does. >> kelly i know you said you like the strong collar because it points to a stronger u.s. economy. tell that to caterpillar and u.s. multinationals who said they were suffering. i guess they say they're being ganged up on. what do you think about that? >> you know nobody likes to give up money in taxes, but if you look at the overall use for that if it does go to infrastructure in the u.s. which we know we've needed for quite some time the jobs and the materials and what that produces economically has a strong impact on the whole global economy. >> rick do you have any issues? where do you come down on the tax repatriation holiday? >> i think it's a bold excuse for not doing the right thing. i think most politicians don't want to do the right thing, and i think when it comes to any kind of tax reform none of us are being very honest. tax reform means certain people pay less, certain people pay more and the one that is pay more don't want to pay more. it's going to be like pulling teeth and i think when i hear a one-time repatriation what i hear is another tin ear by washington to easy issues to help the economy through structural reform. >> all right. we got to go. i was going to ask some more questions but we have to move along with breaking news. thank you all. appreciate your participating in our "closing bell" exchange. we have breaking news from the nfl. what could that be? >> what we're looking at here is some more color with regard to what's happening with the nfl's concussion settlement against for concussion injuries to former players. the u.s. district court for the eastern district of pennsylvania and u.s. district court judge anita brody has said that she is looking to make some changes to enhance the fairness reasonableness, and adequacy of the proposed class action settlement agreement. she thinks this will make the settlement more fair. she does believe there is -- a settlement should provide credit for players who played in other leagues like nfl europe some of the related and farm type leagues in the past. the judge said the settlement should provide all living retired nfl play whose qualify for medical exams can get examined regardless of cost. some stipulations before anita brody. >> she's really holding the line on this isn't she? >> oh yeah. thank you, dom. >> thanks dom. heading toward the close. 50 minutes left in the trading session. we've had a lot of volatility again. you couldn't tell it by the numbers right now. the dow is up 29 but it was up triple digits then down triple digits, but we'll see how we do as we head toward the close. we have the s&p up 6, the nasdaq down 3. >> coming up senator rand paul speaking with us and a first on cnbc interview. plenty to discuss, including the president's plan to tax overseas corporate profits to pay for infrastructure projects. it does look like a lot like the senator's own plan. we'll get into that and mosh with rand paul. up next, another big storm slamming the northeast. chicago area got to big. our friends at the weather channel will tell you what you need to know on where this storm is heading next. plus, i love this story. our kate rogers is live in manhattan in new york city at a small business that never closes even during hurricanes. and it's paid off big. we'll have that story coming back in a moment. welcome back. starting to strengthen going into the last hour. we've had a lot of volatility. the dow was up triple digits down triple digits. we've had a bounce in oil today. the transports have been strong. all kinds of things going on here as we head toward the close. you see the sector heat map, only two of the s&p 500 sectors are lower today and it's not ironic but those have been leaders recently, so they're coming back. utilities and health care. otherwise everybody is positive today. >> on top of that we have breaking news on apple with josh lipton. what's going on, josh? >> well kelly, this news from apple just crossing. apple is going to expand its footprint in arizona making a $2 billion investment in mesa arizona, for what apple is calling a new data center. it will be a command center for its global networks. one of apple's largest investments, it's going to mean 600 engineering and construction jobs. like all data centers it will be powered by 100% renewable energy. this site used to be housed byg t advanced technologies the company that supplied sapphire material to apple. apple will not be using the site to manufacture sapphire just being used as a new data center. the governor of arizona calling this a huge win for the state and that it will bring significant economic investment. guys back to you. >> all right. some news there. josh, stock up a little bit but a lot of things buffeting this name. we have six more weeks of winter meanwhile according to punxsutawney phil. and another mega snowstorm is crushing much of the nation. >> we have the weather channel's reagan reaganaegan medgie in white plains. the snow has come back in downtown. how is it there? >> reporter: the snow is here again. new york city, they have been measuring 2 inches of snow per hour. i feel like bill murray in groundhog day. the snow isn't stopping but it makes for a good back drop. i'm going to show you the roadways. you see right there, it's slushy, it's wet, but that's going to change as it -- you head into the evening hours because it's going to get cooler and with that ice. now, the commissioner here for the department of public works says we have everything in place, we have the salt on the ground, we have the liquid on the ground later on so we should be good but regardless you just want -- okay. i'm going to get splashed. okay. there's live tv for you. but, yeah so you see it. it's just liquid. if you look over back you can see all of the salt being spread behind. that is very important to note because they are on top of it here in white plains to make sure it doesn't freeze over. when we look at the ground it's kind of a slushy thing. i have been making mention of this all day. it's like a seven layer dip in the super bowl if you would those snacks at the super bowl that seven layer dip. we had the snow and then we had a little bit of ice and then we have freezing rain and snow again. so if we look here here is a perfect example. here is some snow. this has been falling since about noon okay? check this out, we've got a layer of ice, look at this. if i flip it on the other side you're going to see that it's got little ice pellets here. this is what's between a layer of snow ice, and then more snow underneath. if we look back over here check this out. this is what you have to slosh through if you're going to be going through this city through white plains all of this just icky stuff but it's going to get colder so you definitely want to make sure you take it really slow on the roadways later tonight. guys back to you. >> we love the layer cake there. love the illustration. thanks, very much. kelly and i -- one of us is going home tonight. one of us is staying prudently downtown tonight. >> it always turns out to be the storm that you don't think is going to be a bad one that is the bad one. just to mention as well for a lot of viewers who live in the 95 corridor looks like there's a pretty serious accident shutting down the northbound lanes near connecticut. >> not good. not good. some small businesses actually ring up big sales on messy weather days like this one. >> our kate rogers is standing by. we love this. at a pizzeria in new york city that is embracing days like this. tell us about it. >> that's right. not every small business can actually afford to shut down due to inclement weather especially if you're a pizzeria like uncle paul's in manhattan. last week when the mayor shut down the entire city, this he stayed open and with a staff of five people managed to make 200 pizza pies in just two hours. >> we're so used to being open 24 hours so to us it's a normal day. we enjoy serving clientlel, especially when conditions are not favorable for everyone else to be open. kind of puts us on a ped stral being around when others cannot. >> and global insights data finds that shutdowns in this particular region can be extremely costly. they say shutting down the state of new york for just one day can cost upwards of $700 million. shutting down new jersey can cost upwards of $289 million and that two-thirds of those losses come straight from the pockets of hourly wage workers. uncle paul's tells us if they shut down for one day, it costs them $3,500 which is a big hit for such a small business. >> and i'm guessing a lot of people will be heading to vanderbilt raef to get some of uncle paul. kate roger is live on the scene. thank you. >> 40 minutes left in the trading session. the dow slowly moving higher up 58 points. now 60. the s&p is up 10. i heard talk of a rebalancing of an index. not sure what it is. i probably shouldn't even be mentioning it if i don't know which one it is. that could bring some volatility on the close. >> we're watching oil prices. stocks have been tracking those and coming up royal dutch shell's ceo will speak with us exclusively after ringing today's closing bell at the new york stock exchange. we want to hear how he's steering his firm through the oil price collapse and where he thinks prices will go by year end. >> up next is twitter's ceo dick costolo ripe to be targeted by activists. we'll kick it around after we come back. welcome back. just like that we're up 80 points as we head into the close here. bill, as you mentioned, we've been up and down triple digits. >> art cashin just stopped by. that rebalancing is not one index. it's a master limited partnership that are being rebalanced and that is affecting various indices. so not one index. it's kind ever confusing but at any rate we will see what that does to the close today. here is what the nasdaq 100 heat map looks like, all 100 components. looks like it's roughly 50/50. half up, half down. >> it looks like that's micron getting hurt on the session. meanwhile, some outperformance from qualcomm which really took it on the chin last week. >> dominic chu has been studying them all carefully. he has our movers on this first trading day of the month. >> i wish i had time to go through all of them. let's start with the highlights. we'll begin with verizon gaining ground on a "wall street journal" report it's close to selling a package of cell towers for more than $10 billion. verizon shares up by 2.5%. pitney bowes is moving lower an reporting quarterly sales that fell short of forecasts. then there's lululemon also trading lower. the yoga pants maker's founder is leaving the board of directors but he will keep his stake. lululemon down by 1%. then there's exxonmobil gaining ground despite reporting a 21% drop in quarterly profiting on plum netting oil prices. it managed to beat wall street forecasts but said it's going to trim back its buyback program to $1 billion. kelly, bill they had spent $3 billion in the fourth quarter on those buybacks. so a fairly significant reduction, guys. back over to you. >> and exactly what we were waiting on. we'll talk to chevron next hour. meanwhile, twitter stock has taken a hit in the last six months. down over 15% and there are concerns about user growth lack of product innovation among the issues putting pressure on the company. now, the ceo, dick costolo could begin to feel more heat. >> kara swisher was out with a piece on that topic that's getting a lot of buzz though she does note that twitter's co-founder continues to support dick costolo. they reiterated publicly their support for mr. costolo. but does dick costolo start to feel the heat? dennis berman from "the wall street journal" thinks it's time for him to go. why, dennis? >> well look if there is an argument to be made, and i think there is some leeway in that argument, you love to put me in that box so i will argue it but if there's -- >> get out of that box, go ahead. >> that's the simple idea that the company isn't performing up to its expectedations, certainly not up to the stock price. we have seen primarily problems in product execution. they've cycled through three or four products chiefs over the last couple years, and it just hasn't gained traction with the people who matter the most the advertisers. and can i add one more thing, guys? i want to read to you the mission statement that they put out at the end of the last quarter or their product statement. let me read it to you. reach the largest daily audience in the world by connecting everyone to their world via our information sharing and distribution platform products and be one of the top revenue generating internet companies in the world. i don't get it. >> i remember dennis when that came out and you and everybody were going over it saying wait a minute, shouldn't this at least fit in a tweet. a question though about the super bowl last night. john steinberg was on our network this morning saying that was a testament to twitter's power. a lot of hash tags the extent to which people were involved and stories were shaping themselves on the platform. doesn't that speak to twitter's endurance? >> definitely. i think the question is turning that power, that cultural power, in sort of a business power. i kind of compare it in a way, and this is a bit unfair to the palmpilot. if you remember those. kelly, you were probably back in high school or middle school. >> my dad had one. >> it changed the way we handled our information but it was not an enduring company. the question is whether this prove duct we love and use and has a resonance with a certain type of person can sustain that. >> herb greenberg is joining us. you guys are always highlighting ceos on the hot seat. most recently you put don thochson of mcdonald's and he ended up losing his job. you have always put marissa mayer on there. what about dick costolo? can you keep his job? you think he should why? >> we're talking about a situation -- bad feedback guys really bad feedback. we're talking -- >> we'll fix it. >> we're talking about a situation with somebody who has been in his job for not as long as say don thompson in the sense of trying to make something work and i think we're in a situation -- i'm sorry, guys -- i wish i could get some no feedback here. >> want me to argue the other side? >> what i see here i'll share herb, your perspective with everybody. i have never been a man of removal unless he removes himself. >> it's a growth company. they can afford it. i don't think activist investors will show up. it's a different bargain when you have a growth company like this rather than sort of a more mature company where capital decisions are more in play. so i would think that the activist scenario is less of a possibility. i do think the endorsements from the other people on the board are a little bit rich like everyone always supports the ceo until the moment that they don't. i actually don't put a lot of credence in that. i think it's actually a negative sign for him. >> they love them until they don't. herb, i think we have your earpiece worked out now. could this become a self fulfilling prophecy. we were highlighting how jack dorsey was publicly endorsing dick costolo because he knows the kind of heat he's under right now but could it work against him at some point? >> well it only works against him if an activist can come in assuming you think an activist would come in but in this case there is not going to be an activist that comes in that can have impact. what i was trying to say and kelly articulated so well is you've got to give this guy time. this isn't like a mcdonald's where you can say, hey, we could get a different branding guy, someone who knows the food business. twitter is not a company anyone has run before. you can't even compare it to a facebook. these guys are learning as they go along trying to figure out how it works. i don't see how you can make the case he should be out of there because some people on wall street don't like the way the stock is going right now. this is a situation i believe the company never should have gone public. i think it would still do better under somebody else's auspices -- >> let me just ask you this before we have to end the segment, do you tweet as much as you used to if that even makes sense as a question? >> i was tweeting quite a bit last night during the super bowl and i actually still tweet quite a bit though since i changed to the business -- to running a business i don't tweet as much as i used to for obvious reasons. >> dennis, i go in waves but i can't quite seem to quit it. i can't quit twitter. >> at least i feel pretty fatigued by it. it seems overwhelming. >> i agree with that. >> media types talking to each other does not necessarily make a business. it's not about us. it's about real people out there. >> i do think -- >> can i make one small point and that is something off what dennis said it's about fatigue but it's not just about twitter, it's about facebook. >> social media. >> sometimes all of it yes. >> i just saw a tweet yesterday and i love this and i will share it being famous on twitter is like being rich in monopoly. i'll leave you with that one. guys thank you. dennis, always good to see you. herb, glad you made it. see you later, buddy. >> really appreciate it. we'll take to twitter to tell you what's coming up. half an hour to go in the 345shg9 markets. the dow is up 77 points. we've really turned around just since we sat down really. there's a look at the s&p 500 heat map. 2 to 1 ratio of gainers versus losers on the session. >> up next, a very busy dominic chu back again crunching the numbers on winning sectors in the month of january. he said they usually lead the markets the rest of the year. plus two wall street pros name names of stocks they think will win big in year in 2015. and later -- >> i'll never learn to fly or travel the world with my best friend. and i won't ever get married. i couldn't grow up because i died from an accident. >> that nationwide super bowl ad has a lot of people upset. how warranted is that? we'll take a much closer look. stay with us. you show up. you stay up. you listen. you laugh. you worry. you do whatever it takes to take care of your family. and when it's time to plan for your family's future we're here for you. we're legalzoom, and for over 10 years we've helped families just like yours with wills and living trusts. so when you're ready start with us. doing the right thing has never been easier. legalzoom. legal help is here. welcome back. again, we're looking at reasons why the market here has picked up a little bit of momentum into the close. there's the greek 10-year. obviously the yield has really surged since the new finance minister appeared to take a much different tact when it came to negotiating with the troika in europe. he's walked that back a little bit, and there are some rumors if you will talk discussion of the market rallying on this call for greece to end its call for write offs and seek debt swaps perhaps on an "ft" report. just wanted to bring that to your market as markets drop a half a percent. >> the dow was up over 90 points. we are definitely strengthening into the close and there's one of the reasons. >> possibly. we'll keep an eye on it. if the sector does well for january can you count on it to outperform the rest of the year? >> dominic chu looking at the numbers. >> if you look over the past 15 years, this is from research over at s&p capital iq and sam stovall. he went back and looked at all the january barometers. as goes january so goes the rest of the year. that's the reason why people are cautious. if you look at some of the best performing sectors, the three best in the s&p in the month of january, you're talking about names like health care you're talking about utilities and, of course, what's happening with consumer staples. those are more defensive, less economically sensitive sectors at least. maybe that doesn't bode well but those maybe will outperform in the coming year. and the reason why is they took a look at all the numbers, s&p capital iq did with regard to now it does with the upcoming 12 months and look at this. these are the compound annualized returns going back from 1990 to today. the s&p 500 is up an average of 7.5% overall during this time span. if you look at the best three sectors, the ones we have just shown, they tend to outperform. if you look at the best ten sub industry groups like the reits or consumer electronics, they do well. they put together a basket of ten names that they call their january barometer portfolio, harmon electronic arts kroger. i put the rest of the tickers up on twitter. it's an interesting look on whether the momentum that carries in january goes for the rest of the year guys. at least according to s&p capital iq. >> thanks very much. the stock market taking off. we're back to the highs of the session with the dow up 121 points. again, we've had what we call a triple-double today where the dow was up double -- triple digits as we are now, we were down 127 points earlier in today agencies agencies session. if it has to do with this "ft" report something because it does give us some information about why markets have underperformed and what it will take for this rally to continue. >> let's talk about the stocks maybe you should be thinking about buying for the next 11 months. >> charlie is vice chairman of aerial investments along with jim lacamp at ubs. great to have you both with us. charlie, what are you picking here for the rest of the year? >> well, we try to buy what others are selling and sell what others are buying. right now people are buying safe, defensive names. people are afraid of the economy. people are afraid of the world economy. people are afraid of oil prices. so we think defensive stocks are expensive, utilities, consumers and those kind of stocks and the more -- the names that will do well with a stronger economy are what's cheap and we think the u.s. economy is stronger than people think. >> so would you buy oil? is that what you're getting at? >> there are a number of industrial names we would buy, names like bristo a helicopter company that services offshore drilling rigs. anixter services cable and does well when there's decent building rates. those names are trading at 11 times earnings where as utilities are trading at 20 times earnings. >> jim you're looking at consumer defensive kind of names. is that right? >> well i like the health care names most importantly. there's a reason why defensive areas have led the market. a lot of money has been forced into the market that wouldn't otherwise be in the market. interest rates are at ultra low levels. so when you begrudgingly go into the markets, you go into defensive areas. you play it safe. you run the ball on first and goal instead of trying that little pass like they did yesterday. i think you're going to see these areas continue to do well. i do agree that some of these are overvalued particularly utilities and consumer stappings but there's a lot of earnings growth in the health care space which is also defensive, whether it's the pharmaceutical stores, the drug companies, the medical software, the updating the electronic records. these areas are doing very well from an earnings growth and they're very defensive in terms of being resistant to economic cycles and i think u.s. economy is stronger than the rest of the world but weaker than most people think. >> all right. i wish we had more time. we have to move. we've had more breaking news than we can deal with last hour. >> some great ideas there. >> look at the market. taking off on us. we have a good old-fashioned rally. a moment ago the dow was up 170 points, just off that high. the s&p is up 22. and it's the leader right now. and the nasdaq is up 33 points. >> bob pisani is up next with a closer look at a market that's been all over the map today. >> oil creeping back. we'll have a live report from the nymex on where it goes here after hitting that number coming up. what can your fidelity greenline do for you? just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. welcome back. with 15 minutes to go the dow is up more than 1%. 186 points higher. we mentioned this "ft" story about greece that's potentially part of the reason. the finance minister unveiling a plan to end the debt standoff which is interesting because lathe when markets have been under pressure any number of factors from oil to europe have been cited. this does appear predicated on this development. >> if they can see some clear light in greece, that would be a big positive there. here is the dow heat map. all 30 components home depot and nike the two stocks not participating in the rally today. otherwise you have shep ronchevron and ver advisen verizon. jackie deangelis what's going on there? >> we weren't able to close over $50, $49.57 was the settling price. traders are saying that the cap ex cuts we're hearing from energy companies and also the rig count redirections, they're starting to price that into oil prices as they look forward, but at the same time we've seen steep drops in volatility in oil before. it's not always a sharp decline downwards. some traders are saying we could bounce up to $60 before we move lower again. the retail gas prices they're creeping up a little bit as well. we hit a low of $2.03 according to aaa. now seven straight days of increases and we're at $2.06. the party could be over when it comes to the pump. back to you. >> oh jackie thank you. that's going to have a lot of people concerned. bob pisani was keeping a sharp eye on the markets. is it oil? what's going on? >> i was talking to some of the guys. oil rallying into the regular 2:30 close helped move the markets. we're starting february with a lot of volatility. the dow is moving in a better than 200 point range today. that was fairly typical for the month of january. back in 2014 way back then 125 points was the typical day. we've had these 200-point days now routinely. you see the dow sitting at new highs for the day. we're seeing some rotation heavy volume in ets. look at the bond etfs, the barkley. 300%, 400% of the normal volume. this is what you would see at the beginning of the month. people moving money around. they seem to be moving it in the stock market. if you look at some of the big etfs, sector etfs like telecom, technology consumer goods, these are etfs associated with the s&p 500, all of them have got very heavy volume today. finally want to note the energy stocks. exxon holding on very well. lower buybacks for 2015 but they reiterated their commitment to increasing the dividend. that's the key and that's why a lot of people hold exxonmobil. guys, back to you. >> bob, thanks very much. art cashin just rushed by. he's doing his job right now. couldn't chat with him but he signaled $200 million in stock to buy. that's not a lot and wouldn't account for the rally we're seeing. i guess in part we can attribute it to this article in ""the financial times"" that maybe they're seeing some progress in debt talks with greece right now. >> exactly. it's been a dramatic period basically since that new government did come to power. some resolution perhaps today and that has markets looking to start the month off here on a decidedly positive note. the s&p is now up almost 1.2%. it's back at a level of 2018. we'll have much more ahead on the markets as we kick off the new month. also coming up senator rand paul on president obama's plan to bring back overseas corporate profits and use that tax money to build america's infrastructure. it's a plan that resembled senator paul's proposal to do the same thing but there are some key differences. that interview is coming up. the volatility continues. the dow was down 127 at its low. it's up 173 just off a high set a moment ago. art cashin just stopped by. his version -- i mean he acknowledges this article in "the financial times" that maybe had some positive impact but he said it's also just a little while ago they saw there were a tremendous number of buyers coming in about $700 million to buy and that seemed to push the market higher as we head toward the close. joining us steve from iht wealth management and keith bliss from catone and company. you saw the same thing. >> we get to see the balances start streaming through the hand held early on. you can track them and we share that information with clients. we hit a level, can't really explain why, just all of a sudden it's that age old adage, more buyers than sellers. you saw the market turn on that. futures picked up those indicators. once the futures market takes off, you start to see the domino effect in the other markets. >> are you among the buyers? >> isn't that the norm now? isn't this what we do every day now is talk about the number of volatility we're going through? yes, we are buying. we're looking for our opportunities, what sectors we think are undervalues but, yes, we're definitely on the buying end of the spectrum. >> we talked earlier about leadership in the market and lately it's been the defensive sectors but a couple guys came along and said they're overbought right now. they're too expensive. do you agree? health care, utilities -- >> probably a little overbought right now. we're looking at the energy sector. i know that's kind of the story going on but we think it's oversold. i'm not saying that gas is going up, we're maybe not at the bottom today but is it -- has it gone down too far? has it overreacted in the markets? maybe, yes. >> i feel like a number of people who are on this program are telling us they think energy is undervalued and they're getting involved. so it's hard to know whether we've hit that point yet of extreme -- finding a bottom or extreme undervaluation. >> some of what you're seeing in the oil market is short covering. we're not convinced we're going back to $100 barrel of oil by any stretch. you're seeing a short term bounce happening and the market is reacteding. i'm going to take the counter side. i'm a little nervous about the equity market. there's enough bad news to make me suspicious. what we're witnessing is the capriciousness if not the outright temperamental nature of the market. expect more of this. >> i thought you were talking about the weather there for a second. >> unfortunately, we live in this area and we're subject to it but this is -- listen it's fun to trade if you have the guts and the fortitude to do it but it's confusing to a lot of people here, so you may just want to get in some good defensive stocks good dividend paying stocks, ride this out. we'll have more of this for a few months. >> you stick around. we'll come back here and see how this market does close out. we're hovering near the high was the dow up 179 points. we'll have the closing countdown in just a moment. >> then after the bell the head of one of the biggest oil companies on the planet royal dutch shell's ceo will join us. we want to find out how he's steering the company through this oil plunge and if he thinks prices have bottomed out. you're watching cnbc, first in business worldwide. about 2:30 left. let's just show you more volatile as we've highlighted. this is the dow today, down 127 on the open this morning. up more than 100 points at one time today. then kind of drifted until the close. look at this pop we've had in the last half hour of trading. some of this may be attributable to the next chart, the greek 10-year yield as kelly was highlighted. there was an arm in "the financial times" that just broke that maybe they're making some progress in debt negotiations in with -- with greece and the eu. we've heard that story before seen this movie before. at any rate that may be one of the reasons we're seeing this rally. the other thing may be energy. the price of oil has moved higher. we've had the price of gasoline nationally, the average price has gone up seven consecutive days now and some traders are wondering whether we're seeing a bottom put in in this market. there's wti up 3-plus percent to $49.79. we talked about this earlier. you'dskeptical of this kind of rally? >> i would be suspicious of it. you get a lot of short covering inside of these things and volatile spiky movements like that at the end of the day certainly tells you that's the case. >> what if we are making progress in greece? >> if we're making progress in greece, i think you will see -- you actually might see it as a negative for the u.s. market because you will start to see money glow overflow over into the european market. >> i completely agree with that. >> you're buying dips but it's in vogue to say i like europe right now. >> i like europe right now. as long as greece doesn't fall apart on us. i think it's realunrealistic to think that's going to happen. they would have to bailing out of the euro. i think you can buy into europe cheaper now and i wouldn't be surprised to see it outperform the u.s. market in the next year. >> so here we go. we have a strong close, but you're not -- you're skeptical of this thing? >> i'm absolutely skeptical. i think there's enough bad news out there where you really need to take a step back keep some powder dry. as art cashin likes to say, stay nimble and be extraordinarily nimble into this type of market that we're faced with. >> all right. good to see you, guys. we're going out pretty strong. especially in the last half hour. we'll see if this can carry through tomorrow as well whether there can be the beginning of a new trend here. ceo of shell is ringing the closing bell. he will be kelly's exclusive guest in a few minutes. don't miss her interview with senator rand paul as well coming up on the second hour of "the closing bell." see you tomorrow, kel. thank you bill. welcome to "the closing bell," everybody. i'm kelly evans, and we're going out here with a strong day across wall street. it didn't look that way just an hour ago. we'll talk about why in a moment here. the dow gaining about 194 points, almost 200 points on the session to kick off february. we'll see if there's anything to that first trading day index we often look to whether it's for the month or the year. the s&p up 1.3% or 25 points. closing at 2020. the nasdaq up 41 to 4676. let's get right to it with today's panel. joining me cnbc senior contribute larry kudlow. welcome. cnbc contributor dan grownhouse and john from gfi group and if this group can't get to the bottom of this market, nobody can. also with us for more on today's action "fast money" trader guy adami. >> hi, kel. >> thank you very much for being here. i want to start with the panel right here. was it greece this "ft" story that got the market up at the close, was it oil, something else entirely? what does it mean? what do we make of it? >> i think it was a combination of all three. i think the bears kind of tried to push us lower the last part of last week and today -- this morning they got us down to probably 1980 in the futures, tried a little bit sub 1980. there was a lot of buyers down there. again, we rallied strong. oil helped a lot obviously up $1.50. the rig count on friday people said that oil is going to go down today. that was down actually overnight in europe and asia but we rallied strong in oil as well. i think the combination of that tsipras is making his european road show. he met with cameron and said there's common sound. something we haven't seen in the democrat and republican parties in the united states this year. if the uk and greece can find common ground i think that's positive. >> it's interesting, if you go back to last night, dan, just kind of tracing the arc of this trading session, we found out china's pmi data wasn't that strong and the orders were a little soft but consumer data was better. was any of this data driven do you think? >> i don't think it was. the larger story is how the market has been acting the last few months. we had this tremendous run in the market really between late 2011 and mid 2014 where there was very little relatively speaking volatility. since the summer of 2014 and really since december, you've experienced a tremendous amount of volatility rallies on the upside rallies on the downside. doug cass is always talking about how this market doesn't remember from one day to the next how it feels about things and i think today's action up 1.3% on the s&p is largely in line with that. >> i can't resist. look, i love doug he's one of my bestest and oldest pals but he is so bearish. he's now writing six newsletters a day to defend his bearishness. >> what are the bears getting wrong? >> all i can tay is,say is, dogugie, you're going the wrong way. a stronger dollar is terrific. capital from all over the world is coming here. earnings. 230 firms, we are on track for almost 6% earnings growth. now, 6% is pretty much been the trend for the last -- but energy is down 19%. >> well yeah. >> so we've got to make an adjustment. we have to look at the s&p earnings "x" energy. what you're going to find is it's going to come in probably 8% 9% all right? so -- >> this is significant. >> profits are the mother's milk of stock. please look at profits. let energy adjust. it will do what it's going to do, and the rest of the market is earning pretty darn good and profits are also the lifeblood of the economy. >> guy, larry just said earnings "x" energy. we used to talk about earnings "x" financial. what else do we "x" out? >> hi everyone. i understand what larry is saying. the quick push back on doug is i don't think doug is a bull and a bear. he tends to be market agnostic. he likes to point out the negatives when everybody is positive and conversely i think he likes to point out the positive when everybody is negative. so i think that's why dougie does what he does and i'm an old friend of his as well. that's number one. number two, i would just dis disagree with larry on the energy thing. you pointed to china pmi. i think the u.s. is slowing down. eps growth 6% "x" energy could you say that's a good thing but where is the commensurate revenue growth? i don't think it's there. again, i think you see a lot of financial engineering. you see it in the form of buybacks and a number of different things but at a certain point that game ends. now, with that said we bounced off 1980 again in the s&p which was where we bounced from on january 15th. that's a good thing, but we had over 100-point range today in the s&p. if you look from peak to troughs during the day. that's pretty significant. i don't know what it means but that's not normal. >> by the way, i want to say, i adore doug cass. >> that's normal when the vix is at 20. >> hang on -- everybody hold that thought. we have some breaking news. on the fcc, eamon javers, what's going on? >> the dow jones is reporting the fcc is expected to pass some strong new net neutrality rules. this is as expected. you remember a while back president obama called for the internet essentially to be regulated like a utility. that looks to be the direction that the fcc is set to go later on this week according to dow jones. they're reporting that the new rules would cover mobile and fixed broadband services and the rules would make broadband internet providers subject to what they call title two telecommunications regulations. this is another procedural step down a path that we'd seen coming here now for a couple weeks. >> thank you very much. let's look at some of the names in brad band and the media space and see how they're moving after hours if they are. john where would you be looking on this news? >> obviously verizon was obviously doing well today on anticipation of this news. so i think verizon, at&t those stocks obviously did well. i think going back to what we were talking about earlier is that, you know, right now i think energy is one of the only ones along with telecommunications right now in terms of s&p earnings that actually is beating on top and bottom lines. so they're surprising on both sides which is a positive. the market is a discounting mechanism. the fact that oil went down to 50 and people are expecting that since the recount -- rig count went down oil is not going to react. now they're anticipating the fact that the rigs are coming off. the rigs are declining at a 14% year-over-year rate per week almost. so it's falling more than the 30-year treasury on balance. you have rigs falling -- eventually -- >> that's what markets do. capitalism is about supply and demand. when the price is up everybody produces. when the price comes down you got to cut back. we're going through that. i sort of get that. just two other real quick things. this business about u.s. regulation of the internet this is terrible. this is terrible for growth. i'm not an expert on internet stocks, i won't pretend to be. i'm saying macroeconomy, this is anti-entrepreneurship. >> guy, i want to know if you agree with larry on this front? >> i agree with larry on most things. what front are we talking about because i can barely hear you? >> with regard to the fcc proposals. >> that is way above my pay grade. you want to get somebody a lot smarter than me to to be able to voice an opinion on that one. >> it's just price and government controls. kelly, you got to make a buck if you're going to expand broadband. >> i agree. >> you got to make a buck. this is about supply and demand and prices and profits. the obama administration is about control. i believe they're wrong. >> if i could get guy back in here for a second. guy brought up something really important before. kelly asked larry what are the bears getting wrong? guy talked about how earnings or whatever they are but he's lamenting the lack of revenue growth. let me ask you a question. could you not have made that argument one year ago, two years ago -- >> absolutely. 100%. listen to me 100%. and that's the same -- right. and the same people are making the similar argument about the monday bond market. you're right you could have said two years ago that the bond market was done just as you can make the point i'm trying to make now that if you don't have -- if you have eps grow without the commensurate revenue growth you're going to be in trouble. you make a good point. i'm trying not to be dogmatic. i'm trying to take it all in and understand. with that said it does concern me that global interest rates continue to go lower but for the last two sessions the price in energy is getting whacked and there seems to be something greater going on. >> we're going to leave it right there. we have a lot to get to this hour. guy, thank you for being with us. more "fast money" coming up with guy and the rest of the crew at 5:00. they'll be talko dennis gartman about what he thinks about greece and the eurozone. up next don't miss a first on cnbc interview with senator rand paul. he will outline his plan to fix our nation's crumbling infrastructure. he's also weighing in on the vaccine controversy. it's all coming up next. and later, how has royal dutch shell been weathering the storm of falling oil prices. the company's ceo will join us after ringing the closing bell in a few minutes. you're watching cnbc, first in business worldwide. . we are never having another kid. i'm pregnant. i am never letting go. for all the nevers in life state farm is there. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping. the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do. welcome back. the buzz on the 2016 president race is hitting up. mitt romney announcing he will not run again. one potential candidate generating a good deal of attention is senator kentucky rand paul. i spoke with him a few minutes ago on a wide range of issues. take a listen. senator, thank you so much for being here on the show. it's good to see you. listen, we have a lot to get to that's important for investors but i have to begin by asking did you really just say to laura ingraham that you think most vaccines in this country should be, quote, voluntary? >> well i guess being for freedom would be really unusual. i guess i don't understand the point, why that would be controversial? >> senator, maybe you're not aware but there's a huge problem right now with disney theme parks having to close down because of mumps, not enough children being vaccinated because their parents for whatever reason have decided it is voluntary. plenty of the people i work with are concerned about their kids getting sick at school. >> i think vaccines are one of the greatest medical breakthroughs that we had. i'm a big fan and a great fan of the history of the development of the smallpox vaccine, for example, but for most of our history they have been voluntary voluntary. i don't think i'm arguing for anything out of the ordinary. we're arguing for what most of our history has had. >> i understand you're all for the choice but, again, if we're left in a situation where diseases that were once almost wiped out are now coming back because people are deciding not to vaccinate their kids isn't that a problem? >> i think public awareness of how good vaccines are for kids and how they are good for public health is a great idea. we just appointed a surgeon general. these are some of the things that are things we should promote as good for our health but i don't think there's anything extraordinary about resorting to freedom. i will give you a good example. the hepatitis b vaccine is given to newborns. we sometimes give five and six vaccines all at one time. i chose to have my delayed. i don't want my government telling me i have to give my new newborn which is transmitted by sexual contact and blood transfusions. i heard of walking, talking normal children who wound up with mental disorders after vaccines. i think they're a good thing but i think the parent should have some input. the state doesn't own your children. parents own the children and it is an issue of freedom. >> thank you, senator. i did want you to clarify that. and it is an issue even for shareholders of some of the theme parks and airlines and so fort. let's move on. obviously the big news of the day is the proposal with you and barbara boxer that would allow our companies which have about $2 trillion worth of cash overseas to bring it home a one-time holiday at a 6.5% corporate tax rate. senator, i'm sure you know that most of the research on this indicates that these actually cost more money over the long term than they save. >> well that's incorrect. >> are you saying your plan would be different? >> let's go back again. your premise and your question is mistaken. most of the research doesn't indicate that. in fact, there's a prominent study by robert shapiro looking at the holiday in 2005 when we lowered the rate to 5%. his conclusion was it brought $300 billion of new capital home and then it brought in about $30 billion of new tax revenue. the whole purpose of doing this is to bring money home. >> right, but it works -- >> hey hey -- hey, kelly. >> i'm sorry, go ahead. >> calm down a bit here kelly. let me answer the question. the whole point of this legislation is that money has been accumulating. much money has been actually inverting and people are reincorporating because the tax code in our country is not encouraging money to come home. so this is to lower tax rate to bring more money home and to take that new money, some of the tax revenue, and put it into the highway fund. i think this is a win, win, win. you lowery tax rate bring in more revenue, and you're able to plug a hole we have in our highway trust fund. >> what people want senator, is for you to make this permanent. why not just make it 6.5% period. the problem is that as -- >> let me answer the question. let me answer the question before you get going. >> all right. >> i'm for permanent. i am for making it permanent. i'd even go lower on the rate but this is a bipartisan proposal so i don't get everything i want. the other side doesn't get everything they want but this is how washington can work together where you have a republican and democrat who have to accept something in the middle and we get something that's much better than what we have right now. so my druthers would be a lower rate and have it forever. but the thing is i have to compromise to get something that will actually get to the president's desk, but i think this is the probably number one proposal that has the best chance of being signed into law this year. >> the only issue again being and i do want to move on from this the concern is you do it one time and companies keep the cash overseas because they realize it is one time. it's not permanent. let's move on for a second -- >> that's why this proposal is actually better than 2005 when they did it for one year. this proposal is for five years and the hope is that we will actually see that it is a net positive over five years and that we will renew it and hopefully this is a step towards making it permanent. >> understood. the other proposal that might move forward certainly i'm seeing a lot of analysts talking about it is your proposal to audit the fed which is given a two-thirds chance of becoming law. the specifics of this looks like the way it differs from the gao audit that already exists. it's an opportunity to question review, et cetera, the monetary policy decisions the fed would be making going forward? >> the current audit we have of the fed is do their books balance and are they paying people what they say they're paying them. it's not an audit at all. we had the auditor come before congress a year and a half ago and they asked her what did the fed buy with $4 trillion when they bought $4 trillion worth of assets. the auditor has no idea. the auditor was asked ten pertinent questions and none ever them apply to the current audit. it's not really an adud at all. what we're propose something when trillions of dollars exchange hands, that really the american people deserve to know if there's any conflict of interest between the people making the decisions at the fed and the people on wall street benefiting by these decisions. it's a look back one year in time. the bank was created by the people and by congress and it has virtually no oversight now other than some token meetings where they come to congress and give us a lot of hot air but no true oversight. we would like to see true oversight looking back a year at a time not in real time. >> real quick, any response to "the washington post" piece about the sort of self appointed board of colleagues and relatives that were part of your ophthalmology group in kentucky. >> once again you're mischaracterizing and confusing the whole situation. the board of ophthalmology decided many years ago that they would not certify older doctors, only younger doctors. i led a protest of several hundred ophthalmologists who said that if we're going to have recertification, everyone should recertify regardless of age. so you've taken something and you've twisted it and -- >> listen i like the idea of what you were doing was to create competition and make it more fair for younger doctors. i'm only asking about the part that they raised issue with which was the board. they said look it's a bunch of his family and friends. just on the conflict of interest points. >> right, and you have taken an interview and made an interview into something where we got no useful information because you were argumentative and you started out with so many presuppositions that were incorrect. the fight i had for many years for over a decade was that recertification in the board of ophthalmology, something i passed initially, should be done for all. everything else is a sideline to try to criticize me for how it was incorporated or unincorporated. all petty sort of criticisms by political opponents. i did something to make it fair to say that all ophthalmologists, particularly the older ones -- i would think the older you are and the farther away you are from your training, the more it would be necessary to shall-- that you would be recertified. it was about fairness and not grandfathering older ophthalmologists in. >> before we let you go. i can tell you're fired up. i apologize for the extent i am the reason for that. what about 2016? with an eye towards you entering 2016 was a presidential candidate or getting drafted into one of the campaigns? >> we're thinking about it and we're looking around the united states and seeing if the message resonates. part of the problem is that you end up having interviews like this where the interview is so slanted and full of distortions that you don't get useful information. i think this is what's bad about tv sometimes so frankly i think if we do this again, you need to try to start out with a little more objectivity going into the interview. >> i will certainly try my best, senator. we hope you will come back and give us that chance. senator rand paul of kentucky on a wide range of issues this afternoon. senator, we really appreciate it. >> thanks. >> and by the way, early in the interview i think i said mumps. we were talking about disneyland. that's taken a toll on the nhl recently but it's measles that's really the problem and a huge story in the u.s. lately. our larry kudlow here just having heard that interview, larry, and reacting to it what are your thoughts? >> a couple things. first of all, rand paul is a friend. i have spent a lot of time with him i have great regard with him. however, your job is to be a reporter and an interviewer, so therefore, he's saying to you you're misinterpreting this and you're mischaracterizing this and you're twisting it. what did i learn working every night for 12 years? a good interview, you got to take stuff that's out in the news stream and give him a chance to respond to it. that doesn't make you slanted. this is not msnbc, this is cnbc. we have our own style. here is what's in the news senator rand paul, here is a chance for you to give your opinion and bat it around. so kelly, on this one i think rand is a little off his game. i commend you for asking the right questions. i may not with everything but i commend -- you asked the right questions. he can't put you in the penalty box for asking the questions. >> what about the substance of what he was saying? >> regarding his proposal to link the overseas profits and frskt frskt, i frskt, i do not agree with that. the issue is number one full territoriality. the issue number two is obama not only wants 14%, he then wants to go 19% after that. number three, this should be tied to full corporate tax reform. that is to say lower the rate from let's say -- >> but his point is basically i can't make that happen so i'm going to do what i can. >> see, i have always argued -- first of all, infrastructure, just one point, i'm going to quote larry summers on this kudlow quoting summers. >> really down the rabbit hole now. >> we should be bonding out infrastructure projects. bond them out, toll roads. >> there's no appetite for that right now. >> it's a great time to borrow. >> i agree. but you should tell everybody else that. >> we should not be spending extra money on this. let's do infrastructure as infrastructure reform. let's do corporate tax reform as corporate tax reform. the two don't mix whatsoever. i don't think paul ryan would have it anyway. on this one i'm not with rand paul. >> from a wall street point of view, reaction john and dan. >> i have never seen rand paul shh the other kelly, that being megyn kelly, so it was very rude actually. but i think, you know, he seems like he's slipping further towards his father instead of towards the middle. if he has any idea he's going to run for president, some of the positions he's staking out prepresidential run are really extreme so he is going in the wrong problem. his biggest problem is he's an isolationist and isis is on the move and he doesn't -- >> what about his proposal for tax repatriation. >> i think there's a lot of common ground the highway bill infrastructure spending. interest rates are rock bottom. a 12 cent a gallon over two or three years in terms of the gas tax is not a problem. there's already bipartisan bills in congress right now that are going to do just that. >> hang on. we have to go, dan, i'll give you the last word. >> there will be a compromise on the overseas repatriation. unless you make it more permanent, these bills will come up. >> hold that thought because we have to take a quick break. it looks like the author of "the washington post" article that was just being discussed with senator rand paul will be joining us. we're back in two. there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and 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appointed board of colleagues and relatives that were part of your ophthalmology group in kentucky? >> once again your mischaracterizing and confusing the whole situation. >> that was part of my spirited interview with s'more randenator rand paul. joining me is the author of "the washington post" article we speak about. his piece called how "rand paul tried to lead an eye doctor rebellion rebellion." a lot of this article is about the good work the senator has done to help people especially out insurance. she difficult work. he's devoted his life to it. i want to make that clear right away. part of the issue you raise in this article is that in creating this competing ophthalmology board to do the certifications it was the board and the extent to which they might have been friends and relatives of his that the article suggested might not have been completely aboveboard. is that a fair way to put it? >> well there's two things here. one is the idea with which he began this board. senator paul was talking about how he had this noble idea he wanted to fight unfairness in the existing system and that's true. he started the board for very altruistic and noble reasons. the thing you're talking about is the execution of the board. how did he actually carry it out and there there were problems. like the board was his wife and his father-in-law. neither one of them are ophthalmologists. that's just one of several things that detracted from the professional image he set out to create. >> david it's larry kudlow. i regrettably have not read your article this time. i generally do. i didn't get to this. kelly's interview i thought was terrific. look, you got something in the news david. it's your point of view or it's your reporting, i'm sorry. it just seems to me that kelly evans, who was the emcee of the show, the host and also reporting, she's got a right to report. so my surprise here was not disagree or agree with senator rand paul. my surprise that he got so crotchety about the whole thing. he's usually kind of a laid back guy. basically what kelly did was give him a chance to say that it was wrong. honestly, what's wrong with that? it's good jumpism journalism, isn't it? >> his answer came at the end of the longer interview. you're right, it was very defensive. more defensive than i had expected it to be. look as he said his reasons for starting this board are something he likes -- he should like to talk about. he does like to talk about fighting unfairness and injustice, you know, things she was talking about was how it was carried out. he described that as petty criticisms or sidelines. there are two equally important parts of the story. >> i just say on this you know it's funny, as i said i know rand pretty well. i'm a great admirer, a big fan of rand paul's. i just think he was kind of off his game today because he's got to know you're going to ask him questions, that's your job as the interviewer and you're giving him a chance to respond and rebut. >> and, david, look we appreciate the reporting. again, just going back to the piece, this was a chance for the senator to respond. the extent to which he's creating a competing ophthalmology board is not the be all, end all issue. what you're raise something potentially the execution. you felt that was an equally important part of the story. >> i thought it was. you learn two things about him or at least about the version of him 10 15 years ago when this started. one is the noble reasons he started it and one is the way that he carried it out. i think they were both equally important to raise. >> the funny thing is here he's usually a pretty laid back guy, so -- >> feeling the pressure larry. pressure does strange things to people. >> david, thank you for being here. >> boy, i hope you don't grill me like that. >> coming up i turn on larry kudlow. i'm kidding. coming up oil rallying again today. how is the plunge in prices recently impacted royal dutch shell's bottom line. the ceo does join me in an exclusive interview next. also ahead, it was arguably the most controversial super bowl ad this year. >> i'll never learn to fly or travel the world with my best friend. and i won't ever get married. i couldn't grow up because i died from an accident. >> lots of backlash but is this commercial going to save lives? that's later on "the closing bell." there's confidence. then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts mean your peace of mind. now you can get the works, a multi-point inspection with a synthetic blend oil change tire rotation, brake inspection and more. $29.95 or less. barbara just bought a bike. she wrote a tweet about it. you can't learn much from that. but take data from millions of tweets combine that with your company's supply chain and sales data. apply ibm analytics and expertise, and all of a sudden, you can learn which bikes to build what to make them from, where to sell them. because barbara and the world just told you how to build a better bike. there's a new way to work and it's made with ibm. welcome back. my next guest just rang the closing bell down here at the new york stock exchange. he's been the ceo of an oil giant for about a year now. just in time for that huge plum net. plummet in prices. joining me is ben van buren. >> i feel pretty good about the last year. we had a strong year. first three quarters were stronger than the last quarter. but i think we managed to deal very much with some weakness in our portfolio. we managed to do a significant amount of asset disposals, so we ended this period of weakness with a strong balance sheet, a lot of cash on the balance sheet. in that sense i think it was good timing. >> one of the things people have been eager to get into the energy space, especially the big names because they feel like there's long-term value there. what is your cash flow like though for the next couple years if oil prices were to stay right here? >> that's a bit hard to predict. the cash flow we had in last year '14 was $45 billion. that of course, will be significantly affected. rule of thumb, $10 per barrel oil price difference will be about $3.3 billion of cash flow. so there is a significant effect. >> will you be cash flow positive? >> oh, yes, absolutely. >> just making sure. you still have to decide what to do as the cash levels come down. talk to us about how you decide whether it's going to be cuts in capital expenditures, perhaps some layoffs or just less of a buyback or dividend program. >> let me first of all, say the dividend we have is a very very important consideration. it's an iconic item i said before, so preserving a dividend is going to be a top priority even in cases like this and we've been through very weak periods where also we have been able to defend a dividend and that's very much the approach here as well. cost efficiencies is always a priority. operating costs. but i think with low oil prices we have the opportunity also to look at capital costs with slower activities in the sector. going forward, yes, there will be pressure on our investment program, but i think the trick will be to balance on the one hand being prudent, preserving as much cash as we can, but at the same time also preserving the investment program because after all, we have worked on this investment program for years. we need to have it in order to have midterm growth to protect long-term dividend growth so it's going to be a balancing act, not overreacting to low oil prices but being prudent at the same time. >> what is you're view as to where oil prices are going. we've had the saudi prince saying it's never going back to $100. where do you see things falling out? >> in the short term it will be very difficult to say. so many factors that can impact. we will see volatility for some time to come. in the long run though supply and demand will reassert itself. we will be seeing oil prices significantly higher in order to make sure supply and demand can meet each other. >> there are some analysts who look at what happened with commodity prooss and say it's like real estate we have been through a cycle, we're at the trough of it and it's going to be like this for some time. do you stress test so even if the forecast you mentioned doesn't pan out, you're ready for perhaps a new world, a new normal of $30 oil or something? >> of course we stress test every individual investment. we stress test against a range of oil prices. if it's a short-term investment you stress test them even more against today's oil prices. we are an industry with an investment wave length of 10 15 years so you have to take a long-term view. in the long term we will see a continued demand growth in oil a continued drop off in supply which is normal. we need to retract a significant amount of investment. so in the long run the fundamentals will takeover ben again. >> will you be more opportunistic to akir beaten down companies that might be cheap or will you be more opportunistic in some of the assets that become available. >> it's going to be a combination of things. we always look at opportunities through the cycle and there will be more opportunities coming up in an environment we are seeing 250d today. i think it will take some time before the whole market settles and understands what's happening and opportunities are presenting themselves already. this is part of the normal cycle that we have in our industry. >> so when you guys -- is it almost like warren buffett when he sees that share prices have totally drop do you start to get out your shopping list or do you also have to pull back? >> we always have a shopping list for christmas list whatever you want to call it. >> last question if i'm an investor looking at this space and kind of sniffing around for opportunities what sets chevron aside from the other oil majors or smaller pure play opportunities? >> let me not comment too much on other oil companies. let me say that in my company, i think we have, as i said come out of 2014 with a position of considerable strength. very very strong balance sheet, a lot of restructuring behind us in the middle of a restructuring program we had already set up for 2015. i think we're well placed for what's going to come. >> bottom line, you think oil production in this country is going to keep increasing? >> it will increase during the 2015 period but it will increase probably at a lower rate as the year progresses. let's see what the year brings. >> yes. let's see if your second year is just as event driven as the first. ben, thank you for being here. ben president obama's new budget book making the rounds on capitol hill today. it might not be beach reading but it's firing up the hot list and we'll get to that story next. still ahead, it was a super bowl ad promoting child safety but it's become the most controversial tv spot from last night's game. we'll have the ad and the debate coming up. know that chasing performance can mean lower returns and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today. welcome back. president obama unveiling his $4 trillion budget today. for that and the other stories lighting up cnbc.com let's send it over to allen wastler for "the hoss list"hot list." we just put up your interview with rand paul and it's just leostling my numbers a bit. still through the day the obama budget was the biggest read. a lot of people participating in that one. second was diana olick's piece based on a bank rate survey of 1,000 homeowners and a third of them don't know what their mortgage rate is which is kind of disturbing. the theory there is more people focus on their monthly payment and they sort of forget what the mortgage rate is. folks, that's what determines the monthly payment. it's kind of a crucial number. >> you hope their bank at some point would call them and tell them and say, look you can refinance. it generates income for them as well. >> exactly. anyway, it's the state of things. finally katy little and her staff has been following the mcdonald's beat. got a memo from one of the franchisees telling the counter people saying do you want fries with that but don't say do you want salad with that. apparently they don't want to push the salad. >> can i ask one question? on the obama budget with the tacks on the foreign earnings what's the split? is it 50/50, 60/40? >> actually our audience tends to skew a little bit more on the republican side, so a lot of the commenters are pointing up same old tired arguments, same sort of, you know battle line on immigration, obamacare, how much savings do you really think you'll get from these type of things but we have some readers coming in defending the white house and the obama budget. we actually -- i'd put it 60/40 for you, larry. >> thanks allen. >> i have encountered the defenders. >> thank you. let's flip it over to dominic chu chu. >> what we're watching right now is stratus, one of the big 3-d printing stocks. it's lost almost a third of its value in the afterhours trade. down 27% on 560,000 shares of volume. this after the 3-d printer issued both a 2014 and 2015 earnings warning saying that operating expenses are going to increase, they're going to go higher. the stock is down by you can see there 27%. 3-d systems, another big 3-d name is falling in sympathy down 10% in trading so far. so two big names in 3-d printing stocks we'll be watching throughout the course of the afterhours. back over to you. >> wow. some big moves. dom, thank you. the earnings parade continues in full force. disney is a big name set to report. up next we'll round up all the other big ones to watch on this week's jam packed earnings calendar. also, how is obamacare impacting aetna's bottom line. mark betolli breaks down the results on "the closing bell." 2550 open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. tdd# 1-800-345-2550 and bubble charts and price charts that let you see exactly tdd# 1-800-345-2550 how market activity is affecting your positions. tdd# 1-800-345-2550 so when the time comes to decide whether to scale in tdd# 1-800-345-2550 or scale out you can make your move, tdd# 1-800-345-2550 wherever you are. tdd# 1-800-345-2550 and start working on your next big idea. tdd# 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from comcast. visit comcast.com/wireless to learn more. a big day of earnings on tap tomorrow and that includes disney. dominic running through what we have to watch for. >> some fun and volatile ones here as well. disney just one of them. gilead, a hot sector. also, ups on the transportation side. bp on the oil and gas. and chipotle. i'll be covering those tomorrow afternoon. wednesday as well. go look at gm glaxosmithkline, merck, under armour always one you want to wasm andtch. then dunkin' donuts, even go pro. we'll start off with madison square garden company, and flare system -- flir systems. after the bell, it's going to be huge. disney and chipotle a couple of the headliners tomorrow after the bell. >> we'll get our rest. thank you, dom. coming up, was this ad too sobering for last night's super bowl? >> i'll never learn to fly. or travel the world with my best friend. and i won't ever get married. i couldn't grow up because i died from an accident. >> a lot of people upset about that. my next guest applauds this ad says it's about time companies started tough conversations while they've got people's attention. it was the biggest audience of the year. we're back in a moment. you just got a big bump in miles. so this is a great opportunity for an upgrade. sound good? great. because you're not you you're a whole airline... and it's not a ticket you're upgrading it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪ ♪ startup-ny. it's working for new york state. already 55 companies are investing over $98 million dollars and creating over 2100 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes no corporate taxes no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that's right for your business. see if startup-ny can work for you. go to startup.ny.gov. welcome back. another earnings alert with dominic. >> this time we're watching rent-a-center shares. down about 6% in the after-hours trade on about 36,000 shares worth of volume. this is the company that does the rent to own market for a lot of appliances furniture. its earnings and sales both missed analysts' expectations on a consensus basis. it also offered an earnings guidance that was a little less than people expected as well. the company's ceo robert davis saying that in short, we did not achieve the desired balance between sales growth and margin improvement that we ideally are seeking through our strategies. so again, that's weighing on the shares down by 16% right now in the after-hours trade. back over to you. >> dominic, thank you. now, did you see this controversial commercial during last night's super bowl? >> wait! i'll never learn to ride a bike. >> get cooties. i'll never learn to fly. or travel the world with my best friend. and i won't ever get married. i couldn't grow up because i died from an accident. >> a lot of backlash. people thought that commercial was a bit too heavy for the family event. nationwide did issue a statement last night defending the ad saying, "nationwide ran an ad during the super bowl that started a fierce conversation. the purpose of this message was to start a conversation and not sell insurance. we want to build awareness of an issue that is near and dear to all of us, the safety and well-being of our children. while some did not care for the ad we hope it serves to begin a dialogue." joining us is the ceo of thinktopia. what was your response? did you see this last night while you were watching the super bowl? what was your reaction? >> sure. i think that the super bowl in general is full of puppies and polar bears, and i think that nationwide has started a dialogue, which is why we're here right now, about this issue. i think one of the things we need to remember is that toddlers have training wheels but parents have training wheels, too. >> can you explain to me what is the dialogue they're starting? does this country not think kids should be safe? because as nationwide said this is nothing about insurance. i mean both parties could be ensured. but god forbid tragic accidents happen. what was the content here? what are you getting at? >> well i think that the content was pretty clear. it was all about safety and safety inside the home. >> just to confirm, sir, if i can interrupt. they took out a million-dollar ad on the super bowl to discuss safety and not to sell insurance? >> i think so yeah. it was only a million dollars. >> however much it costs. >> i think the interesting thing is that was there any attempt to -- allstate the biggest competitor of nationwide has mayhem. so all their commercials are funny, the guy's falling out of trucks falling out of airplanes, doing all kinds of crazy stuff. obviously no bearing on his health or safety whatsoever. and then -- so that's the pitch in the room. they say listen we're going to pitch -- this is going to be different than allstate. it's going to create a lot -- >> so two questions. >> funny works on the super bowl, obviously. but i think that the -- nationwide should really be commended for trying to take the conversation to a higher level. i mean i think the fact that we're talking about it now has a lot going for it. >> i don't think it took it to a higher level. >> the same agents that created the dove campaign which has created a lot of good for women and natural beauty. >> is there anybody that doesn't want kids to be safe? i don't know what the higher level is. >> the parents' intention towards being extra careful around the bathtub. >> this is not even about insurance, okay? it's just not -- this is just gratuitous -- >> it's not about insurance. it's about persuasion. >> any parent who lost tragically a young kid would look at this and just go crazy. and there's no reason to hurt them like that. there is no reason to hurt them. >> i think most of the commercials on balance were very touchy feeley and dark. i think chelsea handler and sarah silverman were my favorite. >> might be a buzz kill but hopefully it will save lives. >> patrick i'm with you on that. thank you for being here. thanks so much. my thanks to the panel as well. "fast money" coming up in just a few moments with melissa lee and the gang. what's on top? >> solar stocks surged today on the premise of a proposal that perhaps obama would extend the investment tax credits. we're going to go with a top analyst, see what he thinks about the proposal and what it could mean for the solar stocks. >> and you're dressed appropriately. >> "fast money" starts right now. i'm melissa lee. tim, steve, karen, and guy are your traders. oil closing at a one-month high today. energy names helping the broader market rally. is it time to buy oil stocks? breaking in just the last hour three different companies, stratus is warning about 2015 earnings. that news bringing down the rest of the sector. are the 3-d stocks dead money now? twitter struggling today ahead of thursday's big quarterly report. find out the new feature one analyst says could win over investors. we start off with that energy move. oil is up now more than 11% in the last three
>> reporter: northern berks patrol officer robert woods junior was in the dunkin' donuts drive through where he heard crash and pulled around to find the aftermath. >> i came around the building and i saw two vehicles with the tractor trailer, i called tonight to our dispatch center, coordinated the response to the emergency units to the scene. >> reporter: officials say that quick call helped them get here quickly and a assess the scene and lead to charges against that tractor trailer driver. no names on the deceased just yet, we do know five victims were taken to reading hospital, and another four were taken to st. joseph's hospital. as for bernier he is a registered sex offender and will appear in court for arraignment later on this evening. we did reach out to the company for comment and they have in the gotten back just yet. we are live in berks county i'm justin finch for cbs-3 "eyewitness news". >> justin, thank you. breaking news right now chopper three live over a house on fire in kenneth square, chester county. the fire on north union street has reached two alarms. so far there are reports of one injury from smoke nal will lacing. we are told that the flames broke out at 4:00. we will follow this story a and bring you updates on line on cb. philly.com. fire fighters rescued five people from a car that ran off the road and plunged into a pond in delaware. this crash happened off of route one at southbound exit to the christiana mall. chopper three was over that scene as the car was pulled from the water, and police say there were five people inside, they were all hurt but all are expect to survive. the cause of the crash is under investigation. well, a person was killed last night in this fiery crash on the new jersey turnpike and it involved three tractor trailers. this is cell phone video taken by an eyewitness immediately after the crash. it happened around 9:00 in the northbound lanes just north of exit number eight, in cranberry township. state police are still investigating. bundling up against brutally cold temperatures, "eyewitness news" in haddonfield camden county, shoppers, in their full winter weather gear today and they are going to need it tonight as well. meteorologist kathy orr is live on the sky deck, with the first check of a frigid forecast, kathy. >> it is still very cold outside, and it doesn't take much wind to feel that wind chill, in the teens and 20's across the delaware valley. we are still looking at a clear sky but wind are still gusting to 20 miles an hour. on storm scan no issues with precipitation, just extremely cold, dry, air. winds out of the south right now at about five to 15 miles an hour and those wind will continue into the night time hours. right now it feels like 23 in wilmington. twenty in philadelphia 19 in allentown and trenton. in the poconos it feels like 13. for the rest of have this evening we're talking about temperatures in the lower 30's. the wind will continue out of the south becoming westerly ten to 15 miles an hour and wind chills in the 20's. with a gust of wind, comes across your face, boy it feels even colder then that. coming up, we will talk about a better day ahead, and then a brief cold blast, before warm, windy and wet weather, move into the delaware valley but at least it will be warm, that is a look at what we're this store for, i will be back with the forecast later in the broadcast. >> we have that going for us, kathy, tension very much. our bitter blast coverage continues with meteorologist justin drabick live with the cbs-3 mobil weather lab at the frankford transportation center, justin. >> good evening, chris. that is right we're in the middle of the arctic blast but good news is tonight the wind is not as bad but nonetheless here, frankford transportation center, it is a cold place to be. it is rough waiting for the bus tonight. see septa buses line up, people are dressed for the cold temperatures and hats and gloves. not the best time this evening with these chilly temperatures but guess what, it was much worse earlier this morning. >> our cameras were out in upper darby delaware county at the start of the morning commute, a bone chill wait for commuters and as cold is historic. today we tied record in philadelphia for coldest morning on this date, a frigid 20 degrees. imagine having to work in the cold all day like nancy benson a postal carrier. >> waking up in the morning and we're talking about record low temperatures you have to be out in. what do you wear? >> layer, layer, layer, yeah, you say it will be in the 30's, definitely long johns and sweater, another shirt, this, gloves. >> reporter: but if nancy a had to make a choice would she rather work in the heat wave or arctic blast. >> i like that question. below freezing. definitely don't like the heat. there is no where to go, in where to stop. >> reporter: we also caught up with dot workers on frankford avenue in philadelphia. keeping busy helps them stay warm but not an easy job on a day like today. these middle schoolers tell us they didn't dress warmly enough. >> i have to wear two pairs of gloves, my hands, if they get cold my whole body gets cold. >> reporter: so is what behind extreme cold? an unusually large drop or dip in the jet stream across much of the u.s. allowed arctic air to move southward. that big change in jet stream really brought cold air throughout the entire u.s. here we are with the mobile weather lab still checking in right around freezing and that temperature has been rock steady all day long. sunnies not able to help much. reporting live from frankford i'm meteorologist justin drabick for cbs-3 "eyewitness news". >> from evenings stream cold to extreme snow in buffalo, new york the snow is piling up, 6 feet so far, more snow expect there tonight. the ferocious lake effect storm has killed at least six people, three of them from heart attacks. 132-mile stretch of the new york throughway remains closed and many road crews have simply given up. >> plows can no longer plow the snow. there is so much snow it is like plowing a brick wall. >> reporter: rescue crews spent the day trying to get hundreds of people stranded in their cars, out. you can track the wintry weather here at home. we have compiled a winter weather survival guide on cbs philly.com. it is full of useful health advice and links to resource toes help you deal with the cold. happening right now, two big announcements from the race for mayor of philadelphia, a state senator and former district attorney are the latest to throw their hats in the ring. "eyewitness news" reporter david spun t is live on independent mall with the details now, david? >> reporter: chris, in 25 minutes democratic state senator anthony williams will take the stage here at independence visitors center. he will greet supporters. meanwhile his new opponent former philadelphia district attorney democrat lynn abraham took the stage across town. >> for those who want to protect the status quo because it is safe and comfortable, i'm not your candidate. >> reporter: she will, and first female of mayor of philadelphia but former d.a. lynn abraham told a crowd of a few hundred that she's confident that heel take the it is is highest office. >> these people want true leadership. they are hungry for it. they have asked me to come and help them lead this city and i want to come and do that. >> reporter: she made the announcement at ben franklin institute telling supporters that she wants to see more business in philadelphia she wants more police training. she hopes to bridge communications between the mayor's office and members of the city council. across town as abraham took the stage, former city solicitor ken trujillo met with donors during a private lunch on the top floor of the bmy building. >> i bring a bold vision for philadelphia, vision that will include taking back our schools, taking back public education and providing an environment where all philadelphians can thrive. >> reporter: he says his top issue of the campaign is education, standing with trujillo former governor ed rendell saying even though he held the lunch for him he is not officially endorsing him yet. >> he has been raising money all over the the country. i have a high regard for him. >> reporter: also in the race former nutter staffer kerry gillan although she didn't have any public events today. lynn abraham smiled and insisted ed rendell would be standing next to her come primary. i asked him about that comment? he kind of smiled and said he doesn't know who he is standing next to in a few months. we will be inside williams out and have a live report at 6:00. live from olde city, david spunt, cbs-3 "eyewitness news". >> thanks much. fire fighters return to the columbus farmer market in burlington county today to put out hot spots left behind from yesterday's big four alarm fire. today parts of the market are actually opened, areas that weren't damaged. but even if a shop escaped damage, business is still affect because of reduced food traffic there we are told that this is normally the market's busiest time of the year. coming up on cbs-3 "eyewitness news" a beauty queen found dead just days before competing in miss worlds. a local business gets a surprise delivery and police want to know why 90-pound of marijuana was sent to that closing store, we're live. new fall out for bill cosby as a former super model makes more explosive allegations against the comedian. see the exclusive et interest right in a live report coming up. three on your side has a warning before you toss out an old smart phone just because you deleted information, that doesn't mean it is gone forever. a delaware county business got quite a surprise. >> they received a delivery of 100-pound of marijuana our pat ciarrocchi is live in upper darby township where police are trying to track down the sender, pat. >> reporter: well, this delivery came in two parts, it was 60 pounds of marijuana yesterday, 30 pounds of marijuana today, and actually mark to the attention of someone who was unknown to anyone at this address. you are looking at 90 pounds of high grade marijuana. >> so, somebody is missing a lot of marijuana. in the streets of our community. >> reporter: it was wednesday when upper darby police got a call from the manager at city blue on 69th street, about a suspicious delivery, from california. >> he opened the one package and as soon as he opened the package he saw marijuana, called police, police went in and retrieved 60 pounds of marijuana. >> reporter: mar juan ace sophisticated packaging so a drug sniffing dog could not detect the ship. then, 24 hours later, 30-pound more, delivered by fedex, to the same clothing store, from this same address in california. >> we are now conducting an investigation as to the point of origin and also the name on the delivery slip. there is such a person on that slip. we are trying to locate that person as i speak too. >> reporter: police tell us that the name on the packaging has no connection to the store nor the store manager who is cooperating fully with the police. the street value of the marijuana $300,000. now, police tell thaws they have seen this kind of thing before, as a sophisticated operation where an individual tries to smuggle marijuana a through a legitimate delivery service, and at this time of the year perhaps even trying to hide it among who will will day packages. reporting live from upper darby, pat ciarrocchi, cbs-3 "eyewitness news". and, we have some big jams outside on the vine street express waste this afternoon. you can see right here, pretty much identical roadways in both directions. westbound heading towards the schuylkill or possibly 30th street station, you can see all brake lights and a string of headlights eastbound towards i-95 with slow go there. police activity here on the schuylkill expressway at the boulevard, the westbound lanes though heading toward king of prussia area seem to be doing better than eastbound lanes. pretty much jammed from this point up into the south street and heading toward center city a area butler pike closed due to an earlier accident. is there down wires and poles all a across the roadways, so your alternate to get around this road closure take this road. over on the boulevard, another accident, pushed over in the right-hand side or excuse me on the outer drive there southbound at somerdale avenue. watch out for police activity trying to get that cleaned up. rest of the majors jam 95 northbound from the vine street expressway to woodhaven road a a 35 minute trip there and 30 minutes on 202 heading out bound from the schuylkill expressway into route 30, chris and jessica, back over to you. people magazine announced this years sexiest man alive, coming up see if you a agree with their choice. >> the fall out continued for bill cosby. tonight entertainment tonight will speak exclusively with the new accuser the former super model janice dickinson, a live report from hollywood is straight ahead. >> is what a dog to do when scared to walk through a doorway. trend to go day unusual way one sso! i can't believe i'm eating bacon and rich creamy cheese before my sister's wedding well it's only 100 calories, so you'll be ready for that dress uh-huh... you don't love the dress? i love my sister... 40 flavors. 100 calories or less. you say avocado old el paso says... zesty chicken and avocado tacos in our stand 'n stuff tortillas . (record scratch) you say stand n' stuff tortillas old el paso says... start somewhere fresh breaking news right now secret surface rested suspicious man outside of the white house, as spokesmen says a man from iowa had a rifle and ammunition in the trunk of his car nearby. the 41 year-old walk up to a white house checkpoint and told secret service quote someone told me to come there. he now faces gun possession charges. well, kathy a has just stepped in from the sky deck and you are still shivering, just a little bit. >> still feeling the cold. >> it still feels just as cold as it did yesterday. wind chills were in the teens yesterday, afternoon, today they are in the 20's but when it that is cold it doesn't matter. >> what is a few degrees. >> until it is 50 degrees it will not feel right. it will get there. we will see some warmer temperatures. this cold will stick the entire winter. we will snap out of it and fairly quickly. we will go outside and show you a beautiful night. some of the most beautiful sunsets are in the winter when it is really cold but it is not winter just yet. looking live at skies cam three from camden across the bridge from center city philadelphia a live neighborhood network takes as you cross the delaware valley to show you high temperatures for today. normally we should be around 50 degrees this time of the year. look at lumberton the high of freezing. girard college in philadelphia, freezing. dover air force base, 34. and, at avon grove high school in west drove, pennsylvania the high of only 34 degrees. in fill at official high is 33. so temperatures struggling will, where normal low temperatures should be for this time of the year. actually cold for some nighttime lows. here's some of the temperatures that we have reached this morning. some morning lows. these are the coldest since last february, the poconos 11. allentown 15. reading a new record at 17. trenton 19. georgetown delaware a new roark at 19 and in philadelphia we tied record of 20 setback in 1936. 1936 was a very cold november. on storm scan three you can see clear skies, lake effect clouds, and those snow showers, still going on, in areas south of buffalo, new york. now across the delaware val i we are looking at 31 in philadelphia, 33 degrees in wilmington. twenty's to the north and west but feels much colder, of course, with that wind but consider this it could always be worse. pittsburgh not so bad right now but chicago, 27, cleveland 33, little better there and minneapolis, 23 degrees. we are seeing some cold air, still lingering, but milder conditions are on the way. future weather shows during the day tomorrow, we will see a bit of the break, that blue which is very cold air lifting north for thursday. another piece of that arctic air returns for friday, you can see the blue but that is temporary. by saturday warms about backup, cold air goes well to the north and that will be the start of something good around here. overnight low of 29, during the day tomorrow, 43 degrees. more comfortable. on the exclusive three day forecast, we have that one blip of cold air coming back on friday but then we're on our way up on saturday and and it looks like we will stay there getting warmer. that is it for 39 day forecast, kate will be back with the warmer news next half an hou fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that. well, did you know genies can be really literal? no. what is your wish? no...ok...a million bucks! oh no... geico. fifteen minutes could save you fifteen percent or more on car insurance. more fall out for comedian bill cosby, nbc is now dropping its sitcom deal with the philadelphia native and netflix has scratched plans to premiere cosby's new comedy special. >> all of this happened as a former super model now comes forward with explosive new allegations against cosby. et's kevin frazier sat down exclusively with janice dickinson and he joins us now live from hollywood with the preview of that interview, kevin. >> chris, janice dickinson's claims of sexual boost at the hand of bill cosby has led to a fiery response from the comedian's lawyer but dickinson refuses to back down and is fighting back. >> i have to speak up and you have to be able to go in and just be brave and do it for all of the women that can't come forward. >> i want to talk to you about the response from bill cosby a's lawyer today, saying quote janice dickinson's story of accusing bill cosby of rapist a lie. >> well, that is from his attorney, it is not a lie and i can back it up. >> how are you feeling today, because as a woman, if these things are true, and you were raped, and people are coming out questioning whether you're telling the truth, you feel like a victim twice. >> no. >> i want to you hold on for a second -- >> the the loss of innocence that i suffered and these women out there suffer is why i'm sitting here today. i don't care about what cosby or networks or anybody says, i am, you will hear me. >> we spoke to janice today, we spoke to era ledge victim and here's the thing, troubling pattern of behavior has been allege by all these ladies that is seemingly consistent. if these a accusations meanwhile are false i hope there cosby and his legal team mount a very vigorous defense. we will have much more tonight. >> story unfolding now, kevin, thanks very much. kevin and nancy's interview with janice dickinson on et tonight, tonight at 7:00 right here on cbs-3. still to come on "eyewitness news" at 5:00 a beauty queen found dead just days before she is set to compete in the miss world pageant. also ahead we will tell you why the the casino crisis in atlantic city could lead to major cuts in the city's police and fire departments, and residents are concerned. we will have a live report coming up. then new at 6:00 o'clock votes have been counted and which public rest roomies the best in the country. you don't have to travel far to find it. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪ caring for you ... just got a little easier. pearle vision accepts flex accounts and most vision plans, including eye med. this is genuine eye care, right in your neighborhood. this is pearle vision. i'm chris may, here are the top stories for you, a horrific scene in maiden creek township berks county. chain reaction crash there involving a tractor trailer killed two people and injured nine others. police say that the driver of the truck steven bernier, fell asleep and then slammed into a line of stopped cars. he is now facing criminal charges. upper darby township business gets quite the surprise, a special delivery of 90 pounds of high grade marijuana a. police are trying to track down the sender in california. and we continue to follow breaking news right now chopper three is over a burning home, in kenneth square, chester county. the fire is on north union street, it is now reached two alarms. so far there are reports of one injury at the scene. kate? thanks, chris. good evening, it has been a very, very cold day i don't need to tell you that but we have more coal on the way. slightly warmer tomorrow, still well below average but we will call it warmer in comparison with today and yesterday. cold air for friday takes us right back to the 30's and then we will warm up into next week but it will turn wet sunday into monday as warmer air comes in. we will have in more details coming up with the seven day forecast, yes, sir contact. >> kate, thanks very much. buried, in buffalo. this incredible time lapse video shows the wall of lake effect snow that blanketed parts of the western new york. 6 feet of snow is on the ground right now but as cbs news correspondent jericka duncan people in the buffalo a area not in the clear just yet. >> reporter: it is not unusual for western new york to get 100 inches of snow every winter but buffalo area could get that much by the time this deadly four day storm is over. >> this is a historic event, i believe when all is said and done this snowfall may break all sorts of records. >> we are calling it winter storm knife in regard to the knife that cut through heart of erie county. >> reporter: reek will buried in snow are making it difficult for crew toss plow roads. rescue teams spent the day trying to get to hundreds of people stranded in their vehicles. >> we have 18 snowmobiles that are respond to go e ms calls, are responding to stranded motorist. >> reporter: niagara university women's basketball team was talk on their bus for at least 24 hours. >> the kids were great. they hung in there, trying to cheer each other up. >> reporter: more lake effect storms are expect to blast this area overnight with up to 5 inches of snow falling, per hour. residents are being urged to stay off the roads and hunker down until this deadly weather finally clears out on friday. >> people are also being advised to be careful, where they go, several people suffered deadly heart attacks while shoveling. another man was found dead in his car, and under at least 12 feet of snow. jericka duncan for cbs news, in new york. buffalo bills are now offering snow shovelers $10 an hour plus a game ticket to help clear their stadium for sunday's game against the new york jets. new 59:30 new worries over future of atlantic city. casino workers are protesting the planned closure of the trump taj mahal. as "eyewitness news" new jersey reporter cleve bryan tells us casino workers may not be the the only ones who are losing their jobs, cleve. >> reporter: chris, right now there are supposed to be more than a thousand workers walking from the taj mahal here to the tropicana both properties under control of karl ican, what they are concerned about as these people assemble and rally with think afternoon is having a say in their future. what many people are worried about is as atlantic city is right sized in their economy they want to make hure they have a significant say in those changes. >> we want to save the standard for atlantic city. >> reporter: employees of the trump taj mahal even if it becomes fifth to close here it is not worth giving up the fight to keep benefits to please billion air investor karl eye can. >> we come to work for good benefits. that is what these jobs came to the city for the. >> reporter: it is not just casino workers worried about outside forces controlling their jobs. governor's advisory commission recommend eliminating more than 100 positions in the fire and police departments, and possibly regional icing the force under a county structure like camden. >> in order to reinvent the wheel it is not necessary and it probably will cause them or cost them more to do so. >> reporter: police union officials say reducing public safety staff seems counterproductive if the goal, to attract visitors to atlantic city. >> if people hear is there less police in atlantic city your first thought will be my god, it will be less safe. >> reporter: even mayor don guardian could have a new report to propose to under a emergency manager to oversee city in addition toll finance manager the that the state has already put in place. >> i cannot hire, fire, give a promotion. the eye cannot write a check. i cannot sign a contract without his approval. so i don't know how much more authority you want to give to create another position. >> reporter: also today ceo for trump entertainment sent a letter to workers saying in order for taj mahal will to stay opened they in must drop their appeal, to have their benefits reinstated, otherwise, plan will go forward to close in december. reporting live from atlantic city, cleve bryan, cbs-3 "eyewitness news". >> cleve, thank you. president obama will unveil his controversial plan for action on immigration tomorrow night, and then travel to las vegas to promote that plan. the president made the announcement in a video posted on facebook today. president obama is expect to issue an executive order that could shield up to 5 million immigrants who are in the u.s. illegal willly from deportation. he will address the nation on the immigration plan tomorrow night at 8:00. cbs will carry it live. israeli security forces remain on alert in jerusalem day after an attack killed three american rabbis. worshipers were back praying again in the synagogue where two palestinian men killed five people, including those three rabbis. the men burst into the synagogue during morning prayers armed with the gun and a meat cleaver. israeli police, later shot and killed those two. in east jer year palestinians put up posters of the two men hailing them as mortars. two men are under arrest in the deaths of a beauty queen from honduras and her sister. bodies of maria joseal versace rag owe and her sister were found in the wooded area in honduras. they had been missing for several days. she was crowned miss honduras in april and was expect to compete in the miss world pageant in london next month. one of the suspects in the killing is sister's boyfriend and he has reportedly confessed. well, a long standing lawsuit against the the nfl is in the hand of the judge in philadelphia. former players, and the league, reached a multi million-dollar settlement, over the long term effects of concussions. but u.s. district judge anita brody threw out the initial settlement saying that 765 million-dollar wasn't enough to cover the thousands of former players represented. today, she heard testimony and will deciding whether a new deal is fair for all of the plaintiffs in the class action lawsuit. a final ruling is expect sometime in the near future. well, a new non-profit is working to tackle blight in philadelphia's neighborhood. >> that effort is also helping ex-offenders and the environment. reporter cherry greg of our sister station kyw news radio has details from west oak lane. >> reporter: they tear homes apart to put their lives back together. >> beautiful feeling now i'm proud on have what i do. when i go home my kids ask me how is my day. i gotting on positive to tell them. >> reporter: father of three carlo payne work with philadelphia community core. they hire ex-offend tours rip apart abandoned homes. >> i'm gaining job skills. >> reporter: former disaster worker greg taner started a few months ago to help blighted neighborhoods provide job training all while preserving the environment. >> we are basically sitting on a forest of lumber. >> reporter: state managers tell me that 90 percent of these materials which include wood, doors, cabinets will be reused and sold, but much of that will go right back into the community. >> thirty-five years in that house, we have been robbed five times. >> reporter: but today she gets a new security door and windows. >> which should make a significant difference in the security in my own home. i'm thankful. >> reporter: for payne these old homes means he gets a new life. >> it is just beautiful. everybody is working on the same thing and they want a change in their life for the better. >> reporter: in west other lake, cherry greg for kyw news radio for cbs-3 "eyewitness news". and, some problems outside on the schuylkill expressway, at city avenue westbound, you can see pretty big jams here heading westbound toward king of prussia area little will situation causing some small delays over on the left hand lane there everybody is moving along great so far. for boulevard to belmont is where most of that delay is. press i typical for afternoon. over on i-95 at cottman slow go in the southbound lanes here. we are losing out that part of the right-hand lane due to ongoing construction. still heading toward center city. we can see brake lights toward that area here. over to the northeast philadelphia in the northbound lanes moving a lock slowly there as well. butler pike closed at skippack pike due to an earlier accident. down wires there and down poles all over the roadways as police activity on the scene. they have alternate todd get around there for now. chris and jessica, back over to you. still to come, the new sexiest man alive is named by people magazine. are you getting rid of the old smart phone? three on your side has a warning. you won't believe what was found on dozens of devices that owners believe they had deleted. dog who realizes he can deal with his fears as long as he does it backward, his name is caseo and now an internet superstar, kate. we have had another very cold day for mid-november but changes are on the way this bitter blast won't be around forever, we are talking about a warm up and rain moving back in the forecast after this stretch of sun and cold, i'll have the seven it is holiday season approaching, montgomery county residents. county commissioners dropped off gifts for toys for tots warehouse in horsham today. the marine core, coordinate ago this collection. the organization, says that donations are actually down from last year when toys for tots donated 34,000 toys, to 11,000 children. trending now an unusual dog with an unusual fear, it is working his way around it in an unusual way. and now he he is a you tube hit. caseo is scared to walk through a door way but he backs his way in. that is how he gets n his owner says when they moved in the new home caseo refused to go into any of the upstairs bedrooms except fortes and he always went in backwards. >> come up with this little genius technique of to overcome this fear and it works for him and it is awesome. >> caseo's owners have a theory, they think he is scared from the transition from the hardwood to the carpet. >> all right. >> check this out if only we could this be happy about snow, and maybe some have of you are. i know kids that might want to roll role around in snow. a adorable panda frolicking in the snow in the toronto zoo. we would rather be indoors but not this guy. he is all about it. look at that. you know, we're kind of i think i have seen people do that, just roll down the hill. >> if we had panda's fur all over us maybe it would be easier to deal with. >> if we were just warm all the time we would be okay. sso! i can't believe i'm eating bacon and rich creamy cheese before my sister's wedding well it's only 100 calories, so you'll be ready for that dress uh-huh... you don't love the dress? i love my sister... 40 flavors. 100 calories or less. you say avocado old el paso says... zesty chicken and avocado tacos in our stand 'n stuff tortillas . (record scratch) you say stand n' stuff tortillas old el paso says... start somewhere fresh thanksgiving is just a little over a week away now and we want to know what you are thankful for. send your photos via facebook or twitter with the hash tag cbs-3 and you might just see them right here on "eyewitness news". super hero is named people magazine's sexiest man alive. chris hemsworth claims this years title will. he first captured the hearts of many as marvel's thor but sorry, ladies, the 31 year-old australian is already spoken for and married to a actress elsa and father of three. what do you think about the choice for sexiest man alive in talk to us at facebook.com/cbs philly. even us a tweet using hash tag cbs-3. well in, weather it is another frigid day across the region. we have started off with record tying temperatures, 20 degrees this morning at the airport and now our weather watchers are mainly reporting 20's all across the region. lets start off here 26 degrees according to doug faith in schwenksville and he sent us a picture of sunset this evening. it looks beautiful. not a cloud in the sky but boy, was it coal. a as we head further inner new jersey we will check with john sandman, 27 in vints town. humidity 50 percent. no rain, that is good news for today because it would have fallen as snow and we have also got this from kevin wilson 33 degrees. he said exactly what a mid-january night should feel like. o h, wait it is november? unfortunately it is. if you'd like to be a weather watcher sign up now go to cbs philly.com/watchers. you know what being in november, with this ridiculous cold we can expect some big swings in the in mercury and that is what we will feel as we head into next week. temperatures actually go above average for a couple of days. take a look at storm scan three you can see some snow falling in areas that don't need the snow, just south of buffalo they could get another foot to 2 feet of snow in some spots there as we head through the the day tomorrow with another round, of lake effect, temperatures right now in our area 31 degrees at the airport 33. in wilmington. thirty-three in millville. colder north and west sitting at 26 in allentown and feels a whole lot colder, still feels like the teens in allentown, trenton and mount pocono, right now feeling like 22 at the the airport. you need to bundle up here this evening. unis i and chilly is the story moving for the, tomorrow, we will get in the 40's. we are more than 10 degrees below average. this speaks to how cold this week has been, tomorrow will probably feel like a summer day for most of us as we we are 10 degrees warmer than today. heading in to friday we will see sunshine but it is cooler and then at day the high moves away, we will start warming process and as this area of moisture creeps in by sunday temperatures will really moderate. what i want to show you here is this area south of buffalo. watch what happens overnight and how this band just stays put over southern towns right true the day tomorrow. doesn't get here but snow is still falling, can you imagine, another 2 feet of snow on top of what they got and then problem with that is they warm up just like we do as we head in the weekend and that could mean major flooding forks that whole region as all that snow begins to melt. future wind speeds. lot direction here as well as we get in the day tomorrow we have a southwest flow bringing slightly warmer temperatures at least back to the 40's but then a weak cool front tomorrow night and watch wind becoming more northwesterly heading in the day friday, wind pick up. there is that northwest flow. friday another little setback. we will take one step forward tomorrow back to the 40's and then we will get pushed back in the 30's by friday. overnight mainly clear still very cold. 29 degrees. for tomorrow mostly sunny not as cold as 43 for daytime high and you're witness weather seven day forecast for thursday 43 degrees with some sun but we will head back to the 30's on friday at 38. we will try to scramble backup saturday, sunny day, sunday looks night. clouds build in high of 56 and that won't feel bad at all and then sunday night into monday, rain arrives, monday warm but windy and rainy and we will cool it down again back to seasonal temperatures next tuesday and wednesday, we will send it back to you at the desk. well, before you toss out your old cell phone, cyber security firm has a warning just because you deleted your information, the the data may not be gone forever. >> three on your side consumer reporter jim donovan has more on what the company found when they bought dozens of old phones on line. >> reporter: increasingly holding your smart phonies like holding your life in your hand, leading phone recycler says 130 million devices are discarded every year and may still be loaded with personal information. >> if you delete things on your phone they are not necessarily gone forever. >> reporter: christian hicks and jason of digital company bought dozens of phones on line and found many had not been wipe. >> we recovered photos, california entries, e-mails, text messages, financial information, pass words. >> reporter: with the special computer they can pull update a even information that was deleted off of a discarded phone. newer devices iphone and latest android will they arely delete information but older models may in the which is why he'll never throw away a smart phone. >> i personally keep them in a safe place. i keep my old phones in a safe place. >> reporter: unlike these he bought on line full of date for anyone to find. just because touch screen is broken and even if cannot be used doesn't mean data is gone. follow all of the manufacturers directions, to completely erase data from your phone. >> may just want to hold on to them. >> lock them up in a safe. >> now you have credit cards, everything on there. >> yes. >> something to think about. >> yes. >> jim thanks. >> that is why jim sticks to the rotary phone. still ahead how you can help kids with cancer and it just takes a click. >> when we come back a charity that helps kids with cancer, could get a big boost in funding, all it needs us your vote coming up in this bro ( siren wails ) ( pop music playing ) ♪ when you're ready ♪ ready, ready, ready ♪ come and get it ♪ get it, get it ♪ when you're ready, come and get it ♪ ♪ na na na na ♪ na na na na na na na ♪ ♪ when you're ready, come and get it ♪ ♪ na na na na... female announcer: it's a great big world and it can all be yours. here and only here. ♪ come and get it. some people think vegetables are boring. but with green giant's delicious seasonings and blends, we just may change their minds. ho ho ho green giant! listen to this sweet symphony of flavor. beautiful! gorgeous! here comes the fruitful crescendo! incredible. pillsbury toaster strudel. a masterpiece of taste. now with more fruit. a philadelphia non-profit is in the running for a big gift that could help hundreds of family dealing with medical crisis. >> ukee washington has the story in this weeks brotherly love. >> this charity has distributed more than $6 million for thousands of families, we met two of them at st. christopher's hospital. kailly cologne had turned five when she was diagnosed with cancer of the kidneys. her mother, rayna suarez took time off work but bills do not take a break. >> how willie pay my car, car insurance. without my car insurance i wouldn't be able to get back and forth to work. >> that means we have no income coming in and they fall behind financially. >> reporter: real estate developers chris mcelwe founded michael's way in philadelphia the charity pays an average of $3,000 in non-medical bills for needy families facing cancer. >> it has helped 80 percent of our families. >> reporter: including the family of four year-old sander, who has leukemia my mortgage, help me with my car payments, they have helped me with some of the utility bills. if it wasn't for them, you know. >> reporter: chris was inspired by his late brother michael a carpet her died of cancer in 1983. >> enduring that time he was always helping others, and it was just his way and that is michael's way. >> i wouldn't know where we would be at right now. >> reporter: michael's way raises money through t-shirt sales, donations and fundraisers and is a finally for nascar charity contest, the most votes, wins. >> if we win, we will win hundred thousand dollars for our charity, $100,000 goes a long way to help some families. >> reporter: chris takes in salary and neither does anyone else at the charity so they can help as many as they can. the voting end december 4th f you want to vote for michael's way or donate to the cause, find out how at cbs philly.com. i'll see you in the morning. i'm ukee washington, cbs-3 "eyewitness news". that is "eyewitness news" 59:00. >> at 6:00 an out of control tractor trailer causes a deadly crash in berks county. two people are killed, the driver of the big rig is facing charges, we are live with more on the investigation. plus outrage following the vicious attack on a camden county social worker, why one group believes the stab ago this left lea coleman fight forgo her life could have been prevented, kathy? one more cold night across the delaware valley, and it will ease, we will see temperatures warming backup, going above normal for a change but a few bumps in between now in the weekend, we will talk about that with the exclusive eyewitness weather seven day forecast, coming up. if you got to go, here's the place to do it. we will tell you about a local landmark garnering national praise for its public bathrooms. "eyewitness news" at 6:00 starts right now. right now at 6:00 mangled metal is all that is left behind after a deadly nine vehicle pile up in berks county. investigators say driver of the tractor trailer caused it all after falling asleep at the wheel and just moments ago, officials identified two people were killed in this crash. good evening, i'm chris may. i'm jessica dean. tonight the driver of that truck faces serious charges. dead liz chain reaction crash happened on route 222, near route 73, in maiden creek township, berks county. "eyewitness news" reporter justin finch is there, justin. >> reporter: chris, berks county d.a. tells us surveillance video taken from this dunkin' donuts helped them fast track their investigation into this crash. they say in seconds, it was clear to see that tractor trailer driver is at fault in this crash. dunkin' donuts cameras meant to record drive through today captured evident in the deadly chain collision. >> the video really de picked this horrific accident and it showed that clearly there was nothing other than the tractor trail their was responsible. >> reporter: the wreck spread across 222 in maiden creek township involves nine other vehicles and this recycling tractor trailer. the truck driver, 50 year-old steven bernier now faces a list of charges including homicide, manslaughter, and reckless driving. police say he caused a wreck that ended up at this dunkin' donuts at least two cars leaving the the store why hit. two people died. nine others hurt. their injuries said to be non-life threatening. responding officer happened to be a witness overhearing the crash from
his attack, five years ago today captain sully sullenberger, landed a jet in the middle of the hudson river. a flock of geese took out the engines right after takeoff. all 155 passengers and crew members were rescued. i'm john siegenthaler. "consider this" is up next. remember, you can always get the latest news on aljazeera.com. >> white house helpless to stop it? also a new ruling could dramatically change the way we use the internet. might it limit free speech? plus a-rod blasted by america's antidoping agency. with no negative drug test what's ahead? how much does it cost to get nominate? i'm antonio mora and welcome to "consider this". here's more on what's ahead. >> the security was inadequate. >> there were plenty of advance warnings. >> this is going to go down as the i think that's a threat to internet freedom that the fc now has largely unconstrained authority to regulate the internet this any way they want. >> sarah? i think you look at it that different way that jeff does. >> certainly. i think the loss of the open internet rules was a tremendous one for users. where beings and internet subscribers and also for content providers who would otherwise want to provide new innovative services to those end users and their ability i think to do that could be extremely limited and hamstrung going forward. >> jeff, let's try talk about this in english. basically what happens here is that companies internet service providers the verizons and comcasts and at&ts of the world can basically decide whether or not they want to charge some of the people who have websites money for delivering them to you. is that a good way of putting it? >> that's an -- exactly correct. they have that authority you know in the mobile broadband space today. so let's just take an example of one in the news this week and that's at&t's plan to charge espn for information that's carried over mobile networks rather than charging consumers for that same information. so at&t is saying to consumers you know we'll charge you less or not count it against your data caps when you watch espn content because we've gotten espn to agree to pay for that instead of you. i think most consumers are going to think that's a pretty good deal and that would have been prohibited in the wire line broadband world by these rules except those are gone and those deals are permitted, again i think that's a good thing for consumers. >> sarah, why should i care if it's the espn's and the youtube and the other companies that have to pay the corporate giants? >> the idea that users can access whatever content they want online. whatever websites they want online, they can communicate with whoever they want to online. without these rules in place their ability to do that is severely threatened. wikipedia has nearly 4.5 million articles on their english site alone. imagine wikipedia as they were going through their growth and becoming this large company, an internet provider would say, you know, i don't want my users to access wikipedia, it's not kind of vision i want to portray to my customers or maybe they were about to build their own cloud sourced encyclopedic service. based on wikipedia as a threat, or college professors who see it as a headache rather than a help, it's a valuable service in the internet space, and absent the rules provide and where the internet isn't a platform and aural types of service websites and services can compete, we just don't see -- we won't see that type of innovation and disruptiveness going forward. >> sarah you have a point. we've seen it with cable providers, they don't like their deal with cbs as time-warner didn't, they took cbs off the air for weeks. would we want that to have time-warner or comcast or verizon saying youtube isn't paying me enough money so i'm not going to give you youtube? >> let's look at a couple of different points. first of all the kinds of disputes you are talking about here happen extremely rarely. the reason why they're so rare, those kinds of disputes happen less frequently than your electricity goes out. you are much more likely to not be able to watch something on television because your electricity was out, than because there was a dispute between them. the reason why, there's win win win deals, the consumers benefit, the distributors benefit, the notion that tan isp a verizon would cut off a wikipedia or google is a little wacky, it hasn't happened, the reason it is wacky is, to destroy or to make those kinds of services unavailable ask to make themselves less stroobl their consumers that hasn't happened. >> cable companies have stopped it at times. on the other hand sarah, netflix youtube eat up enormous amounts of the broadband spectrum and so why shouldn't they pay more money? >> because they're already paying for carriage of that service. so the way it works is that a content provider that uses a -- particularly ones that use a large amount of capacity and bandwidth, that content is already being hosted by what we call a content delivery network, a server deep in the network that tend to provides the last mile access, the access from a certain point in the network to your front door and into your building. so these commercial -- these contractual agreements are already being negotiated within the network and netflix is already paying someone for their high capacity traffic to be carried. so what we're essentially looking at is a situation where comcast would then or at&t or time-warner would then go to comcast and say hey i know you're already paying a content delivery to host your content and they're negotiating carriage with me but you know what, i really would like you to pay me one more time so you can reach these customers at the end of my internet line and because of the way that the internet is built there tends to be only one -- households don't tend ohave multiple subscriptions to the internet within their household, they have one. we have a terminating relationship, if netflix or google or whomever wants to reach the end user they only have one way to do so. >> thank you for joining us. now the latest bombshell, the new york times reports reports that 100,000 computers in the world have been surreptitiously implanted with spy device he even when the device isn't connected to the internet. i'm joined by peter e.ckerslee. thank you for joining us. the nsa has its eyes everywhere but this one is straight out of a movie. the conventional wisdom is if your computer's off and not connected to the internet you're safe. this is code naw name quantum. how does it work? >> if you are a bank and you need a super-screwer computer, you're not going oconnect it to the internet. you are going to do that disconnection thing where you unplug from the internet, you do your bank calculations off line. here we have learned that the nsa will sneak a little device into your office inside a usb cable maybe and this usb cable will contain a tiny antenna that can broadcast to an nsa station maybe eight miles away and they can hack your computer there. >> how do they manage to do it to 100,000 computers? >> it turns out this type of spy activity is getting cheaper. you can go on amazon and buy an sd card called an i-fi. you are suddenly going to invisibly undetectably to you, connect to a wifi. we should have realized that these intelligence agencies these spy-type people will be pulling fancier version he of these kinds of tricks to break into hundreds of thousands of computers because that's what turns out to be happening. >> the nsa says it's only doing this overseas. are you confident that's the case? >> we hear all sorts of cleverly worded denials from the nsa, in this case maybe it's overseas or maybe it's also happening in the united states. we should also understand that it's not just the nsa. dozens of countries have these intelligence agencies, these spice, and we can be sure that the iranians, the chinese, if russians, the french, they'll be trying to do this too. >> do you think the americans are going to care about it? >> i think what we are seeing here is a big question mark over the relationship between intelligence vaghts which are really their own class of institutions worldwide and the regulation of society, businesses individuals, political activist groups, all of us are potential targets for this kind of spying and i think right now what we're seeing is intelligence agencies think it's open season and fair game to target and spy on the world citizens. >> and in fact china and america have apparently been using the technology on each other according to the report but the u.s. is using it on mexican police and mexican cartels, in saudi arabia and india and pakistan. this is clearly an important project for the intelligence community. shouldn't this have been made known,. >> certainly you can think about a leak about what the united states does helps the russians or the chinese or the french if those are the people that the united states is crossing swords with. but you can also slice the question as i sort of did before between the intelligence agencies the spy agencies and the rest of humanity. and i think having transparency and the forecast about what these spy agencies are up to is vital for the rest of us for if health of democracy and open free societies to understand the political threats we're taking on from having these spice everywhere. >> despite that opinion some of this information had been leaked or at least the information came through edward snowden's leak. do you think this is going ohurt snowden's image in the united states? he doesn't seem to be that unpopular. recent polls think that a mortgage of americans think he's a whistle blower. but after more of this comes out with the methods of the intelligence community, do you think that will change? >> i think americans want to know the truth. edward snowden seems to have told us a lot of things that were going on that we at least didn't know about or at least suspected. i think he brought transparency and light to places where there were shadows and we needed to know what was going on. >> peter, thank you for joining us. we are going ohave more on this tomorrow when journalist glen greenwald will be a guest, you can tweet in by using hashtag #ask greenwald. gianna. >> enabled the rape of thousands of children by pedophile priests, the holy see, using evidence related to abuse cases from around the world, including findings from the grand jury investigations from around the state used the hearing as an encouraging development. >> we are hoping that finally, that pope francis and that the church officials will take action that will actually protect children today and in the future. >> and in anticipation of tomorrow a spokesperson for the pope said. >> translator: we have full confidence that a construct itch dialogue will be carried out going forward to reach the exact goals the values and what the convention proposes in its different forms. >> and just today's archdiocese of chicago released to victims attorneys thousands of pages of new documents documenting raises transparency to a new level, it will be helpful we pray for some but painful for many. you can read more at the website, america.aljazeera.com. and antonio, those could be released to the public law as early as next week. >> it's about time that this transparency is taking place. thank you gianna. >> legal team gets ready for a new round, is a-rod running out of options? >> and oscar nomination, why it takes big bucks to get in the >> the number of critics of alex rodriguez seemingly grows every day. called a-rod's regimen, the most potent developed for an athlete than we've ever seen. this week, the 13-time all-star, claiming that the union didn't do fuf to help him and that baseball had it in for him. let's bring in dave zyron, host of edge of sports radio. joins us from silver spring maryland. dave good to see you. a-rod never tested positive, of course neither did lance armstrong. did he get what he deserved? >> well, that all depends on your perspective. if i'm a yankees fan i absolutely think he got what he deserved because it means i get $25 million off the team's payroll and perhaps getting out from under the $87 million that they still owe him and weighing on the franchise like the boneless elephant in the bronx. to be able to suspend players for as long as the commissioner sees fit i'm also for it. if i think it needs scorched earth to expunge players from the game. if i think a strong baseball player's union is a good thing then it rings very, very wrong. first offense should be 50 games, major league baseball wanted 211, and he end under with 162. it gets them out from under his contract for a full season. >> he's suing baseball, he's suing the union, saying the union didn't do enough for him but now the union has come back and is complaining that baseball is piling on in its attacks on a-rod. where does it end? >> that's a great question. i tell you if we were charting the winners and losers, the top would be alex rodriguez' attorneys. they are going to make a fortune. on the one hand, one can understand it because the mlbta and alex rodriguez have never truly seen eye to eye. i mean alex rodriguez is one that has never supported the union in a meaningful way throughout his career. that being said i think tactically alex rodriguez going after the union makes no sense whatsoever. the mlbta, that's the union, has a pulse on this situation. we are sitting back as alex rodriguez was going through the agony of last year and now with major league baseball going on 60 minutes, spiking the football if you will, piling on bud selig being like hulk hogue an, saying we got 'em everybody that got the mlbta's ire up. for alex rodriguez to go after them now is tactically more ontic. >> because of the peds, the performance enhancing drugs, it seems like almost everything is tainted. what's the solution, should everything be legal, if you do go down that road and say you can take whatever you want, what does that mean for kids? >> about what to do, i personally think this lies on the margins of this debate not the center of the debate. because the center is about more and more testing and all that really does is encourage and incentivize more and more sophisticated cheating, more and more masking agents and more and more ways to beat the tests, which more and more finding refuge with people like anthony bosch the nondoctor. prescribingprescribing medicati. basically treating players like lab rats, that's the only way, or the other way is you have to do a decriminalization program. have a conversation with experts, about what is technology and that medicine has changed over the years. >> you have to worry about kids following examples and taking those things at a very young age. >> i think kids are smarter than that. do you want to end up like alex? >> look at this guy he is a gazillionaire, he dates models and actresses. isn't that one of the problems? >> the recent marijuana situation in colorado, it makes it easier to be a controllable substance. i think that's one of the ways to answer. >> i want to switch topics, i want you to weigh in on what happened yesterday. a federal judge telling the nfl hold your horses on that concussion settlement worth three quarters of a billion dollars, he's concerned there's not enough money there. now an attorney for the players is saying that he would recommend that a number of players reject the settlement. this is certainly not the kind of thing nfl wants to be hearing as we approach the super bowl. >> not at all. it takes a story they thought they had under lock and key before the season and explodes it right when the largest number of people in the united states and the world are tuning into the guam. i think the number of players delinking from the settlement is going to necessarily go anywhere. judge anita brody, als disease, which is utterly debilitating, and costs a fortunate to manage, the variance of pain is so profound that it creates a real problem in thinking that there's a one size fits all settlement. >> it's led to all sorts of suicides. very quick question only have about ten seconds for you. some of the lawyers that are defending, do you think there's a conflict of interest here? it could give them $112 million. >> with attorneys there's always a conflict of interest but i trust that these guys have the best interests of the players at heart. how is that for a ten-second answer? like i'm running for office. >> still ahead, oscar expense, the surprising cost of getting >> as this year's oscar nominations are announced today's data dive takes a look at the high price of getting nominated. it comes a lot the awards season. get in front of oscar nominating committee members. that could mean more than $2 million for a smaller formula, $10 million for bigger movies, all before the nominations are announced. there are screening dvds, sent out, with oscar hopeful, you want to get your film to the right talk shows and magazines, that means paying strategy gists to plot. yet not to mention your for your consideration ads. and the hollywood reporter. a full page add could run more than $25,000. big hol take parties where stars of the year's top movies could mingle with journalists, hoping that would read to more coverage. stars need hotel and transportation, it all adds up. even foreign language film campaigns can carry six-figure price tags. l.a. and new york for a week to consider, that means they have to do what is called four-walling a theater, meaning they have to buy all the seats within the four walls of the theater, that is a steep cost. does it pay off? the scarcely seen hurt locker spent a mere $5 million and it won best picture in 2010, beating avatar. not a bad return on investment. findin >> brad meltzer has sold millions of books. now he has embarked on what he says could be his most important piece of writing. children's books. earlier i had a chance to catch up with him. , brat meltzer, histories decoded, and children's books, children change the world. i am amelia earhart and i am abraham lincoln. >> those books are for me and these are for my children. i tell my kids all the time that's being famous, and being famous is very different than being a hero. so if i can give them you know better heroes and lessons to live by, that's the legacy i'd rather have, something for them. >> and you were inspired to do this because of the clothes your daughter was wearing. >> that's where i started, i was smopg for my daughter and all i could find was something with princesses on them. i find these historical heroes. i have amelia earhart and abraham lincoln. i had my friend, who i know no bounds. my daughter loved this shirt. if we have a shirt and an image we can tell our story and we all know there's nothing like the power of a well told story. let's put it this way. if i tell my daughter that amelia earhart flew across the atlantic ocean, when amelia was only seven years old she build a home made roller coaster in her backyard. she pushed it from the roof of her tool shed and got on the reef and skied down, and tumbled and fell and said, that was awesome. she said she's just like me. she's brave and daring and fun and now amelia earhart is back alive. >> very consciously what we wanted to do is if you show them as adults the kids can't relate as well but when i kept them as kids when the artist did that my daughter says oh she's like me and my daughter sees the potential and the power from her and -- within her and that's the series. >> how they changed the world. going back to paul simon and gar funkle. >> across the board women who had become these terrific wonderful heroes, there are a lot of these stories out there to tell. >> the beautiful part of it is i'm not making up these stories, they're there. what we have done as a culture is open up a magazine, look at the cover of any magazine, you don't see amazing women or men, what you see is dumb stars in a bikini in miami. there was a story that came out last week, when you tell a person a story, their whole brain lights up. when you give them a faculty, when you tell them a story, the farther of your brain that controls running starts working. for instance, one of my stories, the books are i am amelia earhart, i am abraham lincoln. when he was ten years old he came upon a group of boys that were playing with turtles. he loved animals when he was a kid. when had a they were doing they were putting holt coals on top of the turtles, my young son was like, abraham lincoln is brave. i want to be like him. the next day is the first political speech he writes about being nice to animals and now again abraham lincoln, i can tell my kids he's president and he freed the slaves, we always do, but in a strange odd way it's great, vital news but when i teld them a young kid like that that he saves those animals you know those turtles they feel like i can be brief too. >> now one thing you don't do in these two books both characters had untimely deaths. >> we picked the ones with the most gruesome deaths we could pick. >> why not address the deaths in the books? >> we deal with slavery in i am abraham lincoln and in amelia you are never going to survive this flight across the ocean, for a book for 13 and 14-year-olds, you should do that. i don't want the message to be if you are and risk being a hero, you are going to get a bullet in the brain. i don't think that should be in the children's book. maybe in the adult version plus my wife would kill me if i gave her that message. >> why these two? >> i picked amelia because my daughter loves her. she really responded to her. for abraham lincoln for me is the american icon. there are so many stories, we didn't even put them in the book. we found a story about abraham lincoln when he was younger, he stops this horse and gets up and picks them up and puts them back in the tree. he said why are you doing that? he said, if i didn't do it, i wouldn't be able to sleep tonight. he lives up to it story after story after story. >> pardonnen the pun but who's on the drawing board? >> well said. my goal isn't just to do amelia and abraham, we want to build a whole library we want to do a whole library, i am rosa parks, and in september we do i am albert einstein. we have the first six kind of mapped out right now but my goal is to do 60 of them. like you sid there are so many heroes out there. your kids are going to pick heroes whether you like it or not, you might as well have some say in it. >> seven or eight-year-olds draw them into reading histories of important people who can really teach them lessons, you have done a terrific job and a very good thing to be remembered for, if this is what you are remembered i'm sure you will be remembered long into the future. >> i tell you one story my son read the rosa parks book, i test them out early to see what they react to. my younger son was being bullied, my older son says, you should be like rosa parks, you should stand up to these bullies. my wife told me she was crying, i said are you kidding me? it actually worked. it is not the stories of these famous people, it's a story of what we are capable of on our best daisd. >> tbrad meltzer, thanks for being with us. i am amelia earhart and i am abraham lincoln on store shelves now. we'll s >> good evening, everyone. welcome to al jazeera america. i'm john seigenthaler in new york. >> proof of life. that is what the military is saying after a new video surfaces showing the only american prisoner of war currently held. >> benghazi to baghdad - the new report on the attack and the latest wave of violence in iraq. tonight secretary of state john kerry talks to me about america's foreign policy and the president. >> sooner, rather than later, the united states will pay a heavy price for our noninvolvement. >> missile launch scandal - dozens in charge of nuclear war heads are under
ago, chris christie used the beginning of his state of the state address to make another apology of the scaped calls that have tarnished his reputation. >> now the last week, i certainly tested this administration. mistakes were clearly made. and as a result, we let down the people we are entrusted to serve. i know our citizens deserve better. much better. >> john tarot is live for us. where the governor just delivered his state of the state address. john, good to see you, what was the focus of the speech today? >> hi, tony. well, the focus of the speech in trenton the capitol of new jersey was i think as many people expected and that is the state of new jersey. the governor said it was good and getting better. which is jobs and education, and taxes. the governor devoted and mentioned none of them by name. he said i am the governor and responsible for what happened. he said we will with with that we moved on to try thanked by state troopers walked right past me, to a young man who is clearly a guest of honor, somebody shouted out from the crowd, governor, how are you, and he turned back and i would say in a very subdued way, and said i am okay. that is the mood in which he went. let's hear a little bit more about what the governor had to say particularly here which is referenced the scandal he is now trying to play down. the last week has certainly tested this administration. mistakes were with clearly made. and as a result, we let down the people. we are entrusted to serve. i know our citizens deserve better. much better. now i'm a governor. and i ultimately responsible for all those on my watch, both good and bad without a doubt, we will cooperate with all appropriate inquiries to ensure this breech of trust does not happen again. i also want to assure you that the people of new jersey today, that what has occurred does not define us or our stake. this administration and this legislature will not allow the work that needs to be done to improve the people's lives to be delayed for any reason. i am the leader of the state and its people, and i stand here today proud to be both. but also those another you that know me know i am always determined to do better. the governor of new jersey, well, he didn't mention either of the big scandals by name. nor the issue surrounding the jersey shore. late today we had word from the kristy team that say they the white house gave them permission for those advertisements last summer, and the company that won the contract said it never decided to put governor cristty into the ad until they had actually won the contract. we will find atmo. >> what is this about a new twist in the bridge scandal, what is the latest? here is governor is frying to distance himself. and the wall street journal comes up with a picture with him with david weinstein. now the point about this is it was taken on september the 11th last year, and that is day three of the traffic snarl up, and so there is a picture of kristy and david together, on day three of the snarl up. now, the administration here says look, they were there to honor those who fell on 9/11, 12 years earlier, they are refusing to say what they phone about, they say they don't know, but the point is only last week, he said he has only had a hand full of him since he has been at the port authority. and it -- well, i don't think it looks good. >> it doesn't look good, appearances. j.t., appreciate it. >> mothering the first day of voting on egypt's new constitution, the health minister says -- more than two dozen people were hurt, al jazeera'sny coal johnson has more. >> i think the new constitution is a step forward. it is a step forward, and so i hope that we get a resounding yes vote. >> the army chief voted in cairo, it is the first real test for the military backs government. misdemeanorble elections. >> people can vote no. but we have concerns about the environment of not allowing anyone to promote the no votes. industries the military will continue to be able to try civilians in certain cases and political activity based on religion is now banned. it is unclear how this will be enforced. the ultra religious party is supporting the referendum. >> moving away on the amendments would lead to chaos. these are all factors that effect the parties position. and we can confirm that not only are we saying yes, but we hope that all egyptians will also vote yes. >> now the cities instead of voting are taking demonstrators. from alexandria, to the south. hundreds of people were on the streets. many of them opposed to the coup which got rid of the former president mo hamed morsy. >> way can never participate and give legitimacy to a regime that fools the people, while it is neither democratic nor civil. >> in the morning there was a blast outside a courthouse, no one was injured. egyptians have another chance to vote on wednesday. whether they support the new constitution or not, the one thing most people want is stability, it's just taking a long time to get it. >> that was nicole johnston reporting we should tell you that social media played a huge role in fueling the revolution in 2011, which ultimately led to mew baric being ousted. maria is following development on social platforms during the street, maria, good to see you? >> we are looking at a lot of pictures, these are some of the lines from this morning outside the polling station. i want to show you this picture as well, this one with says that pyramid street, one of the main arteries into cairo was being closed down because of these long lines in the morning. and also you have this picture, this is a pamphlet that's distributed when you go to vote, and lay la writes egypt isn't considered campaigning when the military hands out tiny calendars with the logo at polling stations. this is from the defense ministry, saying thank you for your cooperation. you also have this image, this is a leader religious leader, he was voting and so you have this image of him holding up his pinky showing he voted in the referendum. you have the army chief, who was greeting his supporters this morning. and you have this image from the blast at the courthouse that you just saw earlier, i'll show you this one as well. it says broken glass, at a cafe across the street from the court, blew out windows and a few neighboring buildings and while you have people that of course are supporting this referendum, you al have a lot of people that are not, that are boycotting it. this is a demonstration outside a polling station. they are supported by the muslim brotherhood, and you have this gentleman, no to the referendum, and he wrotes coupe but backwards symbolizing if you vote you will be taken the country backwards. and you also have this video that was uploaded by the muslim brotherhood, part of their campaign to boycott the referendum. >> appreciate it, and we are expecting results by the weekend, we should tell you that al jazeera is covering the egyptian referendum from outside of the country, because authorities there are still detaining several of our colleagues that producers mo hamed and correspondent have been held for 17 days now. they are accused of spreading lies harmful to state security and joining a terrorist groups. they say the allegations are all fabricated. two others have been held for severaln't mos now. at least two children were wounded when a gunman thought to be a fellow student opened fire. police say the gunman is in custody. roxanne that siber a is here with this, we are standing by with a news conference, the latest word is that it hasn't started just yet. >> that's right. what we know so far, is police say the suspect opened fire just after 8:00 this morning as classes were starting. a witness says the gunman was a male student who shot two classmates. a boy, twice in the face, and a girl in the arm. there are unconfirmed reports that two other people may have been shot as well. the police say they placed the school on lock down, and arrested the suspect. children were then bussed to a nearby mall where parents came to pick them up. the go injured students were flown by emergency helicopter in rubbic texas which is a level one trauma center, the 14-year-old boy is reportedly in critical condition. and the 13-year-old girl is described as serious. >> killing a teacher and then wounding two students before take c. milan his own life. we will bring you more detames on this latest shooting as they develop. >> okay, so we are standing by is waiting for the news conference, i know you will be monitoring that. appreciate it. >> thank you. more people, who had their water contaminates are now allowed to use it but hundreds of thousands are still without tap water. the water company says about 35% of the nearly 300,000 people have been cleared to turn their water back on. jonathan martin has the latest from charleston. >> officials say it may still be a couple of somedays before all the residents are allowed to use the tap water again, the governor said it has done extensive testing and they believe it does meet federal standards. they are allowing residents to use the water again, but first they are asking people to flush out their systems for about 20 minutes. while many have been given the all clear, some tell us they will now bathe in the water and may use it to do things like wash dishes but still aren't ready to drink it. the governor says it is too early to monitor the impact. meanwhile a federal investigation -- the company responsible for this spill. we have also learned 18 lawsuits have been filed some seeking class action status. there's also been a temporary restraining order to keep them from removing any materials that could help with the investigation. >> something daring gang rouse and almost unbelieve salt lake taking place in mexico today. the mexican government says it will do whatever it takes to restore order. after vigilantes began taking on a drug cart tell in southwest mexico. al jazeera has more from mexico city. >> heavily armed men are now a common site. over the past year, so called self-defense groups have liberated dozens of towns from a drug cartel known as a nights templar. they say they needed to take the law into their own hands because the government couldn't or wouldn't protect them. the federal government intends to restore odderner the troubles state. we call self-defense groups to go back to the towns. the government will take care of the safety of the communities therefore we invite them to by sharing all the information. they have to stop the criminals. the government has sent thousands of troops over the past year, but the security situation has continued to deteriorate. >> on sunday a fierce gun battle broke out between the vigilantes and the drug gang. two shoot out lathed for hours. just two days earlier, residents set cars and trucks on fire, protesting the arrival of more than 100 vigilantes. towns people said they aopposed them because they are recruiting young men. the announcement suggests it is ready to take action, but disarming them won't be easy. some leaders are saying they refuse to enter into negotiations, unless the leaders of the cartel are arrested. al jazeera, mexico city. >> let's do this, let's dig a little deeper into the problem with these cartels and vigilantes in mexico. ,er. >> well, tony the knights templar is one of eight major drug cartels in mexico. but they emerged last year, claiming to fight the term particular who had been kidnapping extorting and terrorizing residents throughout the region. which is over here in the southwest of the country, but it's been a complex situation for the president who vowed not to follow in the footsteps of his predecessor by choosing to focus more on social issues. now, president pena has discussed manages for a force between ten and 12,000 to be deployed to the areas hardest hit, but that plan is not materialized. adding to the complexity, analysts say it is unclear who these groups are. they can be self-defense groups mixed with members of rival gangs or individuals with personal vendettas. since the drug war begain, more than 60,000 people have been killed. the u.s. has spent more than $20 billion to combat drug trafficking. clearly a very complex and costly battle. >> okay, appreciate it, thank you. othe city and government offices are forced to close after protests formed outside. demonstrators when the prime minister stepped down, she has pleaded for a compromise. class conflict is the a the center of the uprising, the court rules against the concept of an open internet, and it could mean that soon you will have to pay more for services like netflix, and amazon. we will look at the decision coming up, and ugly words from israel. the country's defense minister calls secretary of state john kerry mess yannick, and obsessive. now the u.s. is striking back. you credit, at the timeve this settlement was announced you said i don't know if this is enough money. >> it wasn't that much money. relatively speaking. now, it was the largest sports related settlement, but the nfl may have to pay more than that record breaking settlement. anita brody rejected the approval today saying "i am primarily concerned that not all retired players who receive a qualified diagnosis will be paid." now this has been a long road that started more than 19 months ago. if you remember more than 2,000 former players file add class action lawsuit, and that group continues to grow, reaching more than 4500 players. and then on august 29th, the nfl and representatives of those former players reached a landmark $765 million settlement, which outlined how former players could be compensated. and then just last week, representatives for the former players layed out the detail plan which stated that no player would receive more than $5 million but also explain that when some would receive less. which is not well received by the plaintiffs and certainly not be district judge brody. >> now the process begins anew. and decide on a bigger number here. >> they have to get the instructions from the jacque, and go back in the settlement. now originally the players who filed the lawsuit, they wanted to take the nfl to court. 65 years that's not enough money. considering the annual revenues are more than $9 billion. >> so the judge is is in essence, you can read think way, the judge is in essence saying you know the decision you came together on this, and take the money because the court case is going to take a long time, and you aren't slur what you are going to get. it may not have been the right decision. maybe the better decision is to go to court. >> the person who presided over those settlement arguments was actually appointed by u.s. district judge anita brody. >> wow, fascinating. >> the story still has legs. >> oh, it does. >> appreciate it, thank you. >> on walt street today a come back for the bulls after yesterday's pretty steep sell off, the dow rising 115 points, and the nasdaq also having a strong seg up more than 1.5%, investors reacting positively on retail sales and corporate earnings. the bernie madoff abare effected the bottom line at jpmorgan chase. it spent $1.1 billion in legal costs include c. milan those for the banks roll in the infamous upon and i scheme. in the final three months of 2013, and is u.s. now join as short list of places where he can find a bit coin atm. oh my. >> oh, do i have to explain it. atm transactions are made a long with a mobile app, and after a special code is scanned a machine sends bit coins to the phone to use as digital currency until now, bit coins were only traded online, and that business is showing no signs of slowing down. last week, megashopping site overstock.com announced it will accept the virtual money, it joins other may job brands like test la, which sold a car last month, and blogging platform word press has been doing business this way since 2012. okay, a big ruling in the case of net neutrality or what is often called the open air net, basically at issue, whether all internet sites should be treated the same, and charged the same, the ruling says no, that means sites like amazon, and netflix, who use a huge amount of band withcan soon be charged a lot more for it. those costs, you got it, passed right down to you and me. give me -- you have been spending more time looking into these? >> i think we don't know what companies will do yet, what this does is it says that your internet service provide tear's the company that brings the internet into your house. can make deals on the side with content providers others like that, and sort of -- it can charge them more whereas maybe others start to throttle or it gets held up, that's the concern. s this could let companies that can afford to pay extra for special treatments from the internet service provider might get an advantage over competitors that can't afford to pay that. >> rickie, if you are in netflix today, what are you thinking? are you calling providers like verizon, and saying let's have a meeting? >> yeah, you know it is a good question, because i think what netflix does not want to happen is a sort of arms race, where companies that itself and others start having is to pay more and more for this privilege of being in the express lane, and if that happens another factor, without a doubt, would be the congress would take notice. no doubt about that. so just because this was knocked dow jones, that doesn't mean that congress couldn't act. no internet service need to treat all. nobody wants to make the first move, but if there is a move i think it will come from the isps. netflix, and those type of companies might get an advantage, but of course they will have to pay for that. i think it would come from the internet providers. >> if the provider ultimatelily saves hey we need more bit coin, do you expect they would pass that additional cost on? >> well, lit be quite a negotiation, to tell you the truth. and what they would have to say is you are taking up more than your fair share, i think that's what it comes down to. the good news is there's a lot of choice. at the moment, this is a buyer accused of spreading market for streaming video. amazon is getting into the game, competing with netflix, we still have the cable companies. there are a lot of ways to get video these days so this is a great situation for consumers not a monopoly situation that consumers will have tot usle with. if netflix were to try to rise places they may say come over here, that's the way they tend to operate. just to get more customers, so i think this is not going to harm consumers any time soon. if they notice anything, it won't be on their bill, it may be on their monitor, where they are noticing where some websites they are used to loading pretty quickly, may not come up quite as quickly including stripping it on the power to store america's phone records and a look at howards can reduce poverty. we will tell you about the 30 million word project, and why it is pushing parents to talk more to their kids. idre yang berry, do we know if it is the first of its kind, or is it. >> here is a look at the top story. the first part of his address today. kristy said the mistakes were made, and they let down the people they were entrusted to serve, but he says the political pay back does not define his team. or the states. two children were critically hurt? roswell new mexico when a student entered the school gym, and started shooting this morning. 112-year-old boy is in critical condition, a 13-year-old girl is in serious condition. a staff membered asked the shooter to drop his shotgun at 1 point, which he did, the shooter is now in custody, no word yet on a motive. today is the first day of egyptians voting on a new constitution. but it's been plagued by violence, the health ministry says at least 11 people died in clashes between security forces and supporters of ousted morsy. more than two dozen people were injured, a presidential panel looking at how the national security agency works. before the senate judiciary committee today, the panel is recommending a number of changes to nsa operations. libby, this feels important, what were they most interested in learn. >> so many of these conversations happen behind closed doors because they are intelligence briefings so this one is out in the open. we are hearing a lot of strong opinions. swell these five men that were tasked to be part of this review panel. looking at nsa surveillance. one of those is a former acting director, and he talked about one of the big changes the panel is recommending. that the government no longer hold on to the data of americans phone records. information about who you called when, now instead they are recommending that information stay in the hands of phone companies, third parties and only goes to the government under court order, an important distinction, they are not recommending that be totally thrown out, they still do believe that data collection can be valuable. even though mr. morale admitted that data is very revealing. there is quite a bit of content. when you have the records of the phone calls that particular individual made, you can learn a lot about that person. and that's one thing that struck me. it's not a sharp distinction. it's more of a continuum. >> that's coming from the former head of the ceo. including the top republican, he wants to make sure that information isn't siloed, one of the criticisms of intelligence work done before 9/11 with that agency information, but weren't sharing it, there have been changes this was recommending some distinctions between who holds what information. >> review group may not have followed its own advice some of the oh recommendations if adopted collectively, example. symptom of the recommendations in the report appear to make it more difficult to investigation gait than a common criminal. some appear to celebrating tend the rights of americans to foreigners without good reason. >> now other senators are pushing for more privacy, for american citizens and even noncitizens who they believe should get the same privacy rights when it comes to personal data. libby, let's dive into this a bit. the president is going to announce changes to the intelligence gathering operations. are woe getting something of a preview of what is to come today? >> we are hearing what this review panel recommends. 46 steps they would like to see the government take, some on behalf of the president, and some on behalf of congress. >> just how far the changes should go. one example of that is a national security letter. ins a letter is given to a company under a gag order that required the company to turn over data on a customer. whether it's the customer communications or financial information, the panel wants to see changes to that. however, we just heard the director come out and say he doesn't think it is a good idea, so there's still a lot of push pull going on. it will still have to be vetted to some degree, it could change if there's another president in congress, unless they put these into law. >> let me buy a little more time with you here. i am trying to wait for our political analyst to pop up here, what's the late that is is happening on the house and senate floor right now? >> there's a lot happening on capitol hill today. outside of what we are seeing. the omnibus spending bill, is huge, this is how we see all the nuts and bolts of spending. remember how we saw the government shut down quite a few months ago, well, tomorrow is the deadline for getting the nuts and bolds dealt with. so we finally saw congress come up with a $1 trillion spending package. this is discretionary spending, pretty much everything except those mandatory programs. well, they are not going to quite to get it all worked out by the midnight deadline, so the house just pass add short term bill. three days to buy congress more time to deal with that. $1 trillion package, meanwhile, over in the senate, there's still fighting over unemployment, and so we are still seeing a debate rage there about how unemployment insurance benefits should be paid for, and whether the republicans or democrats will prevail in the fight. still watching those unroll all afternoon here. >> terrific. on capitol hill for us, let's bring in al jazeera michael shore, michael, let's start there with the budget. did it take a shut down? really, for the congress to do the right thing hire with the budget for the country. and if we dive down into this wasn't this always going to get done in a midterm election year? >> that answers your first question, we didn't need a shut down, because it was always going to get done, there's no real purpose to a shut down at that point. however, what the shut down did was create more urgency, it got -- they took their bad reviews and they ran with their bad reviews and so we can't get reviewed like this again, the budget was one with thousand 582 pages long, and they have to vote on it very quickly, so there is no way that every representative will read all of them. so there is still some sill bollism. >> so in political terms is this win win for both parties for acting responsibly? or and it a bigger win for one party over the other? >> well, it is a bigger win for one over the other, because one with is in the majority, and they have to go back and get more things done. even though it is bipartisan, but you are always going to find the majority gets more of what they want, it is an election year, they are going to go back to their district, having delivered on many more things than the minority party. it's a big victory is what it is. >> let's move to the unemployment insurance benefits debate right now. what do you see coming out of today's vote? >> you need about 200,000 don't you? >> lower than it's been at any time since 2008 a percentage wise, that's the number that the president ran on, that's the numbers that they site all the time, and i fault the white house for not seizing that moment. >> wait a minute -- >> they are not even looking for jobs now -- >> first of all, let me finish for a second, what i am saying is there is a message of optimism here, that nobody is seizing on. there are the facts when you dig deep zero an election year, i would argue that the democrats have lost an opportunity, it hasn't been that low since 2008, now going to what you are saying you are right. there are -- the job market a lot of people left the job market, the actual job search in desks not uncommon. at a holiday time, because people think in the new year, that the job market is going to open up, it is a force of human nature in the history of seeking jobs. but one of the other things they need to seize on here, is the fact that you have these long term unemployment, long term unemployed number numbers e short term has gone down faster than they thought, but long term that's people out of work, over 26 weeks. that's in a bad state. >> good to see you, as always, next time i have you on this week, let's talk about congress and sanctions and iran, let's do that. >> such a good story. >> all right, appreciate it. >> the white house is condemning comments by israel's defense minister who reportedly referred to secretary state john kerry as mes yannick. and obsessive. it is one thing for a government official to criticize another for what he does, it is another thing to personally insult that official. but apparently, according to israel's leading newspaper that is what the defense minister has done to u.s. secretary of state john kerry. auseed the secretary of having a messianic complex and trying to force peace on the israelis when he has no idea what it means to be living under the threat of constant attack from israel's enemies. of course, the u.s. government surprisingly and bluntly condemned his comments scaling them offensive, and inappropriate. not only that, but the prime minister government criticized his comments saying that they were not only offensive and inappropriate, but uncalled for, and damaging to relations between the two countries. now, whether this has any long term impact on negotiations that have been carried out pretty much behind closed doors for the past five months is still a big question. however, kerry recently took part in meetings in jerusalem and in ramala where he outlined steps that they would be prepared to take to help guarantee's israel security, and that apparently did not sit well and hence his comments which landed on the front page of israel's biggest newspaper. >> rosalyn jordan reporting. in iraq, prime minister says ehe will not order a military assault. he quantities to avoided more fighting and give local sunni leaders more time to expel members from an al quaida links group there. fighters from the islamic state of iraq took control of the city nearly two weeks ago, they are angry at the shiite dominated government. a chinese doctor convicted of baby trafficking is now sentenced to death with a two year reprieve. these type of sentences are usually changed to life imprisonment, the doctor admitted she stole seven babies from the hospital where she worked and sold them to human traffickers who then resold them. the french president says now is not the time, he talked about the economy did you recollect a news conference today, but brushed off questions about his private life, our report. >> he wanted to use this news conference to relaunch his presidency. to lay out his vision for revising the french economy, and reclaiming the place on the world stage. at least that was the plan. >> france wishing to maintain its influence in the world, if they want to carry weight in europe, and if it wants to keep control of its destiny it must find some economic strength. >> above all, the president didn't want this news conference to be about his personal life. but that was the subject of the very first question he had to answer. >> everyone in his private live goes through difficult times. there are painful moments, but i have one principle and that is the private business is dealt with privately, respectful of one another's private life, so it is in mother the time nor the moment to do so. >> there's been a lot of speculation in the meet yeah about how the president would deflect questions on his special live. opinion polls suggest his alleged affair has not had much impact on his popularity, but that popularity is already very low. in was a president on the defensive, defensive on the economy and defensive on his personal life. this can hardly be the fresh start that he had hoped for. >> so he promised to create jobs, to lower taxes and to reduce public spending. he also promised to tome the people soon whether they still have a first lady. >> let's do this, let's take a look at other stories, including a federal inquiry into suv fires. maria is back with that and more. >> tony, in detroit michigan the national transportation safety board is expanding its investigation into chrysler suvs. safety regulators are looking into reports of overheating and fires in jeep cherokees. the agency added the dodge drain go to the investigation because of it's similar design. a recall has not been ordered chrysler says it is conducted its own inquiry. >> warner pleaded guilty to not paying tacks on $25 million he has deposited at his sentencing today, he said he felt shame and embarrassment for what he did. and in new york, the owners of the empire state building are suing, they fouled suit today against allen henson for taking photos of a top less model on the buildings observation deck. they said heinsohn did not request permission, nor did he notify the building of his plans to shoot a topless woman, the photos are inappropriate, and objection national because the observation dare is a family tourist attraction. the empire state building wants one with $.1 million heinsohn says the view is so spectacular that he doesn't think anyone noticed the model. >> that's outrageous. outrageous. >> and as soon as i see those picturesly file a formal complaint. >> yes, you do that. >> maria, thank you. >> okay. all right. talking to your child, now may help boost their economic status later in life. on average, children in wealthy households hear about 30 million more words than those in families on welfare. this is known as a 30 million word gap. have you heard of it? 52% living at the poverty level and below have a family member that sings to them or tells them story, that jumps to 74% to people living 200% above the poverty level. only 32% at the poverty line have someone read -- who reads to them. compared to 55% of children who are above the poverty level. in chicago with the tails on the project hoping to bridge the gap. >> anish sha is always pulling four-year-old caught tore the test. even at snack time. >> you tell mommy how many graham crackers there are? >> the 25-year-old single mom learned how to improve her vocabulary through a pilot programmed called 30 million words. >> see if you are remember that one. >> the name comes from the word gap that researchers say sometimes existed between higher income kids who interact many with with their parents and lower income kids who sometimes don't. the program helps those kids improve their vocabulary by teaching theirn't pas different ways to talk to them, a device measures the number of words the kids learn, newel was astonished by her quick progress. >> actually during the study i want to say maybe the fifth or 6th week, my daughter called something ridiculous, and it was like -- who are you talking to? >> it take as village. >> a pediatric surgeon specializes in implants for the hearing impaired gobbed 30 million words after noticing some of her low income patients didn't progress as well as others. >> i realized that the difference that i was seeing in my patients had nothing to do with their hearing loss, but rather language environment that they were being exposed to early on, and that difference almost all fell along socioeconomic lines. >> the project is based on research conducted back in the mid 1990's by two university of kansas child psychologists. they mound that three-year-olds who interacted more, and were exposed to more words were better prepared for kindergarten and tended to be better readers later. >> she tracked results and found a direct corelation and the words the toddlers used. >> she really increased her numbers, went down a little bit, off little built, but pretty much doubled with she started. >> she admit as strong vocabulary is no guarantee kids will succeed in school, but newell his it will give elana an advantage as well as her little brier. >> it's a star. >> you touch it? >> al jazeera, chicago. >> coming up, this may be just the information, why the information from the hack of target is a start of a large scale attack on customers. real reporting that brings you the world. giving you a real global perspective like no other can. real reporting from around the world. this is what we do. al jazeera america. world are weighing in on what it is like to be a muslim feminist. back with that story, maria. >> it all started with a 22-year-old u.k. college student venting on twitter about the difficulty of identifying as a muslim feminist. sheer she writes. muslims tell you don't need feminism, then that sparked a whole conversation, being accused of not being a real feminist, and of not being a good muslim at the same time. when some men cry about the life of a muslim feminist, because they hurt their feelings. who else is tired of being told you don't need to get an education, your husband will protect and provide for you. now i spoke to the woman behind this #, here is why she said she started it. >> it's about saying there's culture pate rackky that is holding it and we need to fight for our rights. we know our rights. if you ask them, we with are quite aware of our rights we are seeing a big difference. what's happening in reality. >> and know loan wrote this, she writes when i created the # i never thought it would blow up like this, just proves muslims have a lot to say. and she says this discussion is needed, she is thinking about creating a conference to continue the dialog. >> the target data breech that 100 million or more customers may have had information taken by hackers and this may just be the beginning. joining me now from chile, is kemp formerly the fbi's most wanted computer hacker. that is a consultant for some of the biggest -- >> so target clearly is not alone in this we are hearing four other stores fell victim, who knows how many more, is this the new reality? is no company safe. >> pretty much. this already happened if you recall with with t.j. max, and at love major brands were hacked. companies hire my firm to break into their systems and our success rate is 100%. what that tells us is secure unfortunately is really poor, and it's kind of tough to keep the hackers out. >> is it a cost issue? can it be secured more effectively than they are now, and if they can, why aren't they? >> yeah, they can. companies can definitely take steps exercise due diligence, and actually raise the bar of security to make it more difficult for harkers to break in. but target, the hackers were able to install what we call ram scraping code, this is software that the hackers installed from the point of sale systems so when you swipe your credit card, when you swipe your credit card that information goes into memory, and at that point, is when this malicious software was able to steal that information. so this was quite sophisticated. companies need to use products that can detect the stuff. >> got you. here is my last question, if you are telling me there's a more effective way to protect the companies and protect our information, why aren't the companies protecting us better? is it a cost issue? no, there's a very sophisticating adabbingers that can get past any controls. even i do this in my business as i am able to bypass these, so when companies need to do is layer their defenses to make it tougher. but consumers can take a part. if they believe their credit card was hacked i like to put an alert on my credit card through my bank. so if i charge if i create a transaction other $100 it will send me an email. so consumers can detect breeches on their credit card, they can't prevent them. another thing they can do is review their credit card statements vigilantly, and really review the statements to make sure there's not even a transaction for one with dollars. what criminals do is they will make a $1 transaction, just to see if the card works. >> kemp, appreciate it. he is all legit now, has a fancy new business in chili. stay with us. a luke at the forecast when we with come back. al jazeera america. we understand that every news story begins and ends with people. >> the efforts are focused on rescuing stranded residents. >> we pursue that story beyond the headline, pass the spokesperson, to the streets. >> thousands of riot police deployed across the capital. >> we put all of our global resources behind every story. >> it is a scene of utter devastation. >> and follow it no matter where it leads - all the way to you. al jazeera america, take a new look at news. of the rockies here.ast we have 65 miles an hour, reduced visibility, but also very dry, those winds really keeping southern california dry, should be getting rain this time of year, not the case. fire danger the problem there. a ridge of high pressure in the west. low pressure to the east. storms moving in, temperatures will be dropping here, headlines coming up. >> this is al jazeera america live from new york city. i'm tony harris with a look at today's top stories. just an hour ago new jersey governor chris christie used his state of the state address to make another apology over the scandals that threaten to tarnish his administration and presidential ambitions. >> now the last week several has tested this administration. stakes were clearly made. as a result we let down the people we're entrusted to serve. i know our citizens deserve better, much better. >> testifying in front of the senate judicial committee about the nsa program. the group
for the people's pope. it's his, but it could soon be yours. >> it lasted 10 seconds, a blast from a shotgun until a boy gave the weapon to a teacher. in that time a school became the backshop in roswell new mexico. stephanie stanton is live for us with that. >> good evening. this shooting happened around 8 o'clock this morning at berendo middle school in roz well. a 12-year-old boy, a 7th grader walked into the gymnasium and opened fire on his young classmates. >> police converge on a middle school in new mexico. the scene terrifying. >> there's one student possibly shot >> the routine interrupted by a boy with a shotgun, a 12-year-old who shot two classmates. >> we have a 12-year-old and 13-year-old shot while sitting in the gym, waiting to go to class. >> the 12-year-old victim was injured and airlifted to a hospital in texas, in minutes it was over. >> the shooter was stopped by one staff member. who walked right up to him and asked him to step down the firearm. >> the mother and fathers struggled for information. >> at the school classmates of the suspect described him as a smart and nice kid. the is it-year-old boy shot was the target of the shooting, although the motive is unknown. >> a short time ago in new mexico a press conference was held. the shooter's name was not released. one of the victims was a 12-year-old girl, kendall sanders. she now in stable condition. the other victim is a 12-year-old boy and his family asked he not be identified. we understand that he suffered injuries to his face and neck and remains in critical condition. during the press conference the government talking about a teacher in the gym at the time of the shooting and he's been hailed a hero. >> i visited with mr masterson, john masterson. he was an amazing man. he was in the gym on the gym floor. the eighth graders were on one side of the gym. he was facing away from the shooter and the shooter facing away from him. he hears the first shot, thinking it was a firecracker. he turns and sees the young man shoots and shoots and is pointing the firearm arm at mr masterson. mr masterson begins to talk to him to put it down. the young man put the gun down and raised his hands. >> at this hour, once again, the suspect is in the custody of new mexico state police, pending charges. >> stephanie stanton, thank you. >> now to nigeria. making news for its policy against home sexuality. new legislation bans same-sex marriages, gay organizations, any public affection between members of the same sex. same-sex couples could face 14 years in prison. there has been multiple arrests and violence. juan carlos molina puts nigeria's law into context with others around the world >> gay rights vary widely. some country allow full same-sex marriage, many are conservative, with a handful allowing the death penalty. let's take a look. 14 countries allow full same-sex marriage. most in europe. new zealand canada and south africa among others allow it. in the united states 17 states in the district of columbia legalized same-sex marriage. 29 banned it. get this, being gay is considered a crime in 76 countries - most in africa and the middle east. in mauritania, sudan, yemen and iran, being gay can be punishable by death. >> michael is a gay right's activist and founded an organization supporting hiv positive men. he was forced to fully the country after being the target the hate crimes. >> michael joins us. >> good afternoon. >> what was your rehabilitation to the new law? >> i felt so bad about it. it was a death sentence. this is not the issue nigeria should be looking at. we have other issues, issues around corruption, policies, not gay people. gay marriages and others are asking to be free, to live your lives, assess health-care service, not to be gaoled or killed. i believe it is a death sentencement -- sentence. >> what do you understand is happening in nigeria, to your friends? >> right now there's a lot of panicking. people are scared. areas are closed down because of bill, and the law says you can't open because, you know, you provide services for a gayman and you will go to gaol. people will not be able to access our services or live without drugs, which is dangerous for the public >> you came from nigeria to attend a conference in the united states. i understand that word got back to nigeria, when you got back to nigeria, that you said you were gay and you were targeted with that with hate crimes in nigeria. tell us about that. >> i was here in july 2012 for a conference, and a "the washington post" did an interview where i cas accidentally showed. when i got home i was beaten up, broke my hand and i had death threats. i came to the states where i sought asylum. >> you founded an organization in nigeria. >> in nigeria, i worked to a different organization, an organization for hiv gay men. i have hiv myself. gay hiv - i cannot say with the general publication, you have a double stigma, meaning h.i.v. positive and then being gay. it's a different thing. they face for discrimination than the gay population, so that's why we started. there are other organizations with gaye men. gay men with h.i.v. cannot access services. >> michael, thank you for sharing your story. >> a federal judge in tulsa declared oklahoma's ban on same-sex marriage an unconstitutional saying it violates the equal protection clause of the 14th amendment. l assume sex couples will not walk down the isle, the judge put the ruling on hold until a similar appeal case in utah is decided. >> fall out from a statement by key israeli officials, when the israeli official described secretary of state john kerry as obsessive when it came to peace in the middle east. the white house called it offensive. >> there's no sign of a breakthrough in the ratest round of israeli palestine peace talks. the israeli defence minister says the process is a waste of time, blaming the u.s. secretary of state. according to israel's largest newspaper he said during a private conversation: >> as for the talks himself, he was just as displaysive. >> there's no allegations with the palestinians. americans are holding negotiations with us and in parallel with the palestinians. we are the only side to give anything. the release of murderers and the palestinians have given nothing. >> the obama administration was not pleased. >> we find the remarks. defence minister to be defensive and inappropriate, given all that the united states has done to support israel's security needs, and will continue to do. >> late on tuesday there was an apology to john kerry, saying he didn't mean to cause offense. the comment were made because he doesn't like a u.s.-drafted security plan relying on high-tech equipment, not israeli soldiers to protect the border between israel and a palestine independent borderline. binyamin netanyahu didn't come on tuesday. sippy live ni aused them of damaging the two country's relationship. it raises questions about how united they are as they move forward in talks with the palestinians. >> in new jersey governor chris christie gave his state of the state address. the bridge scandal was what everyone wanted to know about. john terrett reports. >> new jersey governor chris christie used his state address to issue another apologise. >> in the last week i certainly tested this administration. mistakes were clearly made and as a result we let down the people we were entrusted to serve >> chris christie tried to turn the media's focus away from the scandal. education was a main point. he wants to lengthen the school day and year. he touched on crime and called for making urban areas safer. chris christie insisted recent allegations against him in the team will not stop the state from getting things done. >> what has occurred does not define us or our state. this administration, and this legislature will not allow the work that needs to be done to improve the people's lives in new jersey to be delayed for any reason. >> but the speech may do little to slow the growing controversy surrounding him. the latest questions concern a series of tv ads pushing tourism on the jersey shore. >> we are stronger than the storm. >> the marketing campaign is under securitiy. at issue was whether christy put himself and family front and center in the ads, in the middle of a re-election bid. there are concerns that the chris christie team spent $2 million more on production costs than the next lowest bid, a firm to which chris christie's office had ties. >> frank pal own said he alerted the department of housing and urban development saying that the cash could have been spent on victims. they are investigating. then there's bridge-gate. a week ago the government was forced to apologise for a traffic scandal. a close aide ordered lane closures, snarling traffic. the state democrat refused to store the bid for a second term. until now many saw him as a front runner in the presidential race. today chris christie insisted he remain focussed on getting the job done as governor of new jersey and promised to cooperate with any investigation. >> on to washington where president obama's first cabinet meeting of the year was used to renew a call for a bill to create jobs. congress were pushed to expand long-term unemployment benefits. more from mike viqueira. >> it was the first cabinet of the years, and president obama used it to express foundation. going around congress, the legislative process and doing small bore things, partnering with nonprofit and the private sector to improve the economy in separate sectors and pockets of the country. we saw him do it last week with promise zones announcing the first five of 20. he travels to north carolina where he expect to announce an initiative to spur the manufacturing issue. the way it was phrased really raised a lot of eyebrows. >> i have a pen and a phone. i can use that pen to sign executive orders and take executive actions and administrative actions that move the ball forward in helping to make sure our kids get the best education, and our businesses get the support and help they need to grow in advance, to make sure that people are getting the skills they need to get the jobs. >> republicans have reacted with dismay, saying the president can't go around congress when he feels the need. the president said he will use the pen to sign executive orders to get some of the things that he wants. >> congress will have additional work over the course of the next several weeks. it's important that they do something about unemployment insurance. >> last week there was hope for an extension of long-term unemployment benefits. this week a quagmire, biggering between republicans and democrats over a procedure how to move forward. you name it, it is a familiar story. the upshot is 1.3 million americans were put off of long-term unemployed insurance benefits at the end of last year - that number is growing, ipp creasing each day, 1.5 off long term unemployment benefits, and the senate bogged down in gridlock. how long should the extensions last. another area of disagreement. this is the senate. the house has not tackled that. it looks like it will be a long-flawed, if it can be done at all. two votes failed. the white house had this reaction: >> now that is the white house version. republicans have another story, accusing harry reid of trying to make them look bad, trying to have it all his way, have his cake and eat it too. the details are mercy, ugly. the upshot is no unemployment extension, not this week. >> in west virginia officials continue to lift the water ban on contaminated areas. about 40,000 people use the tap water again following the chemical leak. freedom industries still under investigation. a restraining order in place against the company to ensure no important documents or materials are removed. with the do not use order lifted elizabeth is not comfortable. >> i'm a mum. my daughter is not drinking the water for a while. i'll wash my dishes and do some things like that. do cleaning things, but we are going to drink and cook with bottled water. i wouldn't be surprised if i felt nervous enough that i'm drinking and cooking with bottled water for a couple of weeks. they say it's a really minnizual 0.00 amount. because no one intended this to go into drinking water, they don't know the long-term effects. and as a parent you don't want to take a chance with your child. >> officials say it will be a few days. >> going to pot. not all states are onbored with pot. >> and letters to jackie. for the first time we see letters to the fairest lady after the shooting death of john kennedy. >> now to egypt where on the first day of voting on a new constitution there was new violence. 11 were killed in fighting between security forces and deposed president mohamed morsi. polls are closed but will reopen in a few hours. the vote is seen as a referendum on the military which ousted mohamed morsi in july. al jazeera is covering this from outside the county, mohamed fadel fahmy, baher mohamed, and correspondent peter greste have been held for 17 days, accused of spreading lies harmful to the state security and joining a terrorist group. al jazeera says the allegations are fabricated. >> two other reporters, producer and cameraman, have been held for several months. >> the crisis is escalating in south sudan. 200 refugees drowned when a ferry capsized in the white nile river. they were packed on a boat trying to escape clashes. >> government officials say the ferry capsized on monday. there was fighting on the outskirts of the town. rumours spread that the rebels were coming back into town to retake it. people tried to get out. many ran to the river. a boat was overloaded. women and children, and it capsized. here is more bad news for civilians. the rebels end malay call and there's fighting between rebels and government troops. the humanitarian crisis is a concern, like bor and jonglei. thousands are hiding in u.n. camps trying to get away from the fighting. a lot of people hope talks in ethiopia can come up with something concrete and there could be a cease fire. >> no end in sight to the violence in syria, a week before the summit scheduled to find a solution to the crisis. the amateur video of the aftermath of a series of air strikes, the target was insurgents. the opposition is firm on their goal, to remove bashar al-assad from office. that's a message from a member of the opposition group, the syrian national coalition, and made the comments during an interview. >> this is a war, it's a revolution about the people of syria seeking to regain their constitutional rights and human rights and dictatorship in the bashar al-assad regime. there's no solution to the crisis. he is the subject of the differences and he's the cause of starting these crisis. >> "inside story" airs: >> to chicago, and a new effort to handwritten as the power of the word. researchers discovered a child in a poor family hears fewer words than kids in an affluent family. the 30 million word initiative encourages low income parents to talk to their children more. diane eastabrook reports. >> y. >> enisha is always putting her daughter to the test. >> how many crackers are there? . >> one, two, three, 2004. >> the 21-year-old single mum learnt how to improve her daughter's vocabulary through 30 million words. it is a gap that exists between higher income kids who interact more with parents and lower income kids who sometimes don't. it helps to improve their vocabulary by teaching parents different ways to talk to them. a ped om ter measures numbers. >> during the study, the fifth or sixth week, my daughter called something ridiculous and was it was like, "who are you talking to?" >> dr dana, developed 30 million words after noticing some low-income patients didn't progress as well as others following surgery. >> i realised the difference had nothing to do with hearing loss, but the language environment that i was exposed to. the difference fell along almost always socioeconomic lines. >> it was conducted in the mid-1990s by two child psychologists, finding three-year-olds who interacted more were better prepared for kindergarten, intended to be better readers later. >> she attracted results and found a corelation between parent/child interaction. >> she increased the numbers, went down, went up and doubled where she started. a strong vocabulary is no guarantee kids will succeed in school. it is hoped it gives alana an advantage, and her little brother as well. >> coming up, cash for concussion. a federal judge says the n.f.l.'s huge proposed settlement is not nearly enough. >> lily mystery. a tiny rare flower is snatched by thieves. >> welcome back to al jazeera america. i'm john seigenthaler in new york. here are the top stories. in nick nigeria, a crackdown on gay rights. dozens have been arrested. secretary of state john kerry condemned that law. >> john kerry's involved in a war of words. israel's defence minister apologises after ridiculing the secretary of state in his peace efforts, calling john kerry obsessive and messionic and the plan for peace was not worth the paper it was written on. the white house condemned the comments. >> a message from new jersey governor chris christie. in a state of the state address he said mistakes were smad and apologised for letting people down, but said the bridge-gate scandal did not define him or the state. >> mexico's drug cartels are brutal and better armed than the police. that makes what is happening south of the border surprising. a ruthless cartel is being challenged for control of the city not by the army or a gang, but vigilante groups armed and determined to win. the battles have been dead will and 12 from both sides have been killed. now the mexican government is stepping in. robert vallerb shia joins us now. it's good to have you on the program. >> thank you for inviting me on your show >> is there a chance that this kind of thing could work. >> we can see examples, such as in columbia, the use of the word columbianisation, but it's an example that paramilt airianism can fuel more violence than is in mexico. in 2011 there was a case of beheaded bodies in one of the states, and this was perpetrated by the so-called cellar killers or a cartel. it's a paramilitary group and still is. they have colluded with the gulf cartel and others which is led by the most dangerous men in the world today. >> let me see if i can understand this. it's clear that the cartels have money and that in some cases they have bought off parts of the government and the police so, you know, obviously this must be a surprise to see these vigilantes. do you expect more to crop up, or not? >> well, according to some security experts i conquer. it's strange to see par milt airianism has not spread given the dire situation and mistrust on security forces. today we see that a group of police men and servicemen tried to enter the region, the heartland and the pop awelation themselves pushed them back. that's when we had the cross fires. >> people are fed up, is that what this is? >> absolutely. the fact that ever since former president felipe calderon started a war against the drug cartels we have 70,000 deaths because of this war. the fight that - there's no way out of this situation, that fact, has left people to arm themselves. it's protected by the constitution. >> does that mean this may put political pressure on the government. >> absolutely. the fact that they sent military troops, it's an indicator that things are out of control and the government is trying to gain control of security. >> what impact does this have on the border of the united states, >> it's too soon to tell, but let's not forget the case of fast and furious, when the u.s. government was influxing guns into the border so they were able to catch drug kingpins, and they land in the wrong handand all these were using gun, that's what we are talking about. it's too soon to tell whether the paramilitaries will affect the border. it will be an interesting story to watch. >> now to france. it's surprising that a love affair would make new, but the relationship with an actress of the president is rocking the established. >> francis hollande wanted to use the news conference to layout his vision for reviving the french economy and reclaiming france's status on the world stage. that was the plan. >> translation: if france wants to maintain influence and carry weight it must find economic strengths. >> above all the president didn't want the conference to be about his personal laf. it was the subject of the first question he had to answer. trins trins everyone in his private life can go through difficult times. there are painful moments, but i have one principle and that is that private business is dealt with privately, respectful of one another's private life. it's neither the time nor the moment to do so. >> there has been a lot of speculation in the madia about how the president would deflect questions on his personal life. opinion polls suggest his alleged affair has not of impact on his popularity. that popularity is very low. this was a president on the defensive. defensive on the economy and his personal life. it can hardly be the fresh start that he'd hoped for. >> so francis hollande promised to create jobs, lower taxes and reduce public spending. he promised to tell the french people soon whether they have a first lady. >> a federal judge denied a $765 million settlement by the n.f.l. over concussion-relied ailments suffered by former players. michael eaves joins us with more on what this means. >> it's a little convoluted. it was the largest sports-related settlement in history. the n.f.l. may pay more than the original record-breaking settlement. anita brody rejected preliminary approval saying: >> earlier i spoke with ted krawlis, sports lawyer and asked why the judge would refuse the settlement when the earlier judge called it a fair deal to all parties. >> his job whereas to love the settlement. he was hired to produce the best settlement between the negotiating parties. the judge's job is different. from the judge's perspective she has to look out for the people not able to participate. we are talking as many as 20,000 players. negotiations were on behalf of one plaintiff between the parties. here we are talking about 19, 999 other people that judge brody is attempting to correct. >> in the wake of the ruling, what is the next step for the retired players, and the n.f.l. >> they'll go back to the drawing board and get a deal. the problem that the judge had was not necessarily with the amount of money paid to the individual players. the judge as concerned based upon economic models if more than 10% of the claimants, of the 20,000 people, 10% of that hit the $5 million number, there was a possibility that 765 million was not going to be enough. >> it's a large sum of money. but when you talk of having to spread it over 20,000 people over the course of 60 years, there's not enough money. >> it's stopped for now. what happens next? >> the judge could come back and say after reviewing financial documents submit that she'll accept the ruling at $765 million, or they can renegotiate and the n.f.l. could add more, probably hundreds of millions, or probably the last thing that no one wants to go to is go to trial and see what the n.f.l. has in terms of evidence. >> we mentioned that alex rodriguez sued the players' association. what was the reaction? >> it wasn't good. i spoke to several players, several different who played now and in the past about alex rodriguez suing. and not one person was supportive in his remark. some responses varied from he's an idiot to i wish he would go away. no one likes him for sure. a player i spoke to was mark millanton who was a team-mate of alex rodriguez with the yankees. >> i am surprised, you know. he is also a part of the players union. you know, i take it as a personal thing. i think most guys do. it's unfortunate it had to come to this. it will hurt the game. he had a decision and he made is and so forth. i just wish there was another way to go about it. and that none of this happened. >> again, it was personal. he felt personal. he said he will make $61 million. he'll still make $61 million. he won't do that. nonetheless. that's what they think. >> we hear that the housing market is recovering. for millions, the dreams of home ownership is a financial nightmare. many owe more on their homes than they are worth. >> desiring more space and a family-friendly-neighbourhood for their children, sonja and her husband purchased a home in hollywood florida, buying at the peak of the market, paying top dollar. >> the value of the home definitely decreased by about $70,000. it makes us scared for the future, wondering if we will be able to own the home outright, and makes us wonder if we should stay in the om. >> they are now considered underwater in the loan. meaning the amount owned is 25% higher than the value of the property. they paid almost $300,000 for a home now worth less than 200,000. >> the frustrating part is when i see at this time that the market is starting to change, i see friends and family purchasing homes and getting more for their money. >> according to new figures by reality track, a nation-wide retail place, 9.3 million u.s. residential properties are under water. florida has the highest, nevada leading the way. 34% of home owners are considered underwater. 61% are considered deeply under water and in the foreclosure process. >> south florida realtor attribute to to several factors, stem from the 2005/2006 boom when thousands purchased at the peak. >> there was a time that the money was cheap, and they had pick your mortgage and buyers bought and flip, and bought and flipped. >> while the rate of underwater homes is high. it is down from $10.9 million a year ago. interest rates are below 9%, home values increasing 20%. inventory is up. underwater home owners are advised to consider their options. >> hire a professional, a credit company. get your home sorted. >> as for home owner knight, despite the challenges she and her husband face with the mortgage and underwater status she believes in the american dream of home ownership and hopes the market will continue to strengthen. >> coming up - game change. a court's ruling and what it means for what you see and how much you pay online. plus to the highest bidder, the pope's harley davidson hits the auction block. >> good evening, we are looking at the nextle polar outbreak. last week one came through, and there'll be another. we expect to get anywhere between 10-12 inches of snow. now the temperatures look like this. they are dropping behind the system. fargo minus center. think thunder bay minus 4. we have a lot of warnings and watches. what we are concerned about here is blizzard watches as well as the high wind watches and warnings here, because that will bring the temperatures down because of wind chill into the minus 20 and 30 degrees range. dangerous situation right there. now, the rest of the snow will fall. we'll get a new batch of snow out of canada affecting north dakota and minnesota. the arctic outbreak will make its way down to the south. watch the area of purple - wednesday, thursday colder. friday morning look at the lows we are expecting in atlanta. 21 degrees. miami, you'll see 47. >> now the internet is open, anyone can visit any website, whether it belongs to a media company, called net neutrality, saying the internet access should be easy and equal amongst sites. today a federal appeals court ruled that the fcc cannot force net neutralityies on verizon and others. jake ward is here internet like verizon. they are common carriers, responsible for bringing the internet to you without treat everything as equal and neutral. >> what will in the parlance of those that grew up with the internet. the idea of an equal access to all sites has been a bedrock principal and now the companies that bring you the internet have the option of blocking sites, charging extra money to net otht a slower internet. network. the internet has been treated as a public resource. cable television, that's how it works, you could make that argument. most are not happy with how cable television works. i can't say that you&i would want to carry that model to loo cable television and how it's delivered. >> interesting to follow this. >> only about one-third of adults in the united states got the flu shot last season. doctors say if that's the case many will be at risk. the center for disease control says h1 n 1. the flu is widespread in 35 states, rates are high in 13 states, and mostly in the south and south-west. >> high prices and long lines great people in colorado buying marijuana legally. in the state of washington regulators are working through thousands of applications for growing, processing and selling pot. allen schauffler is in north barna ball washington with that story. >> there's a lot of uncertainty. two cities to talk about, one, kenmore, where they look to washington d.c. and the obama administration for assurances that the pot-selling is legal and okay. here, north barnaville, population 961, where the mayor and the city council have a different plan. >> licences for growing and processing marijuana will be issued next month with retail stores likely opening in june. different cities are taking different approaches. >> we are trying to be careful. >> we thought someone has to be first. >> kenmore is a city of 21,000. the mayor says he wants to honour voter wishes but the city has to protect economic interests, particularly federal grants for highway improvements. >> when we receive funds from the federal government we have to sign an affidavit saying we are in compliance with state and federal law. the justice department indicated that it will not interfere. that's policy and not law. in kenmore and dozens of cities, a moratorium is in place. >> we want clarification and make sure that we are doing things the right way. >> mayor maker is concerned that while sellers get the profit, the city gets no direct payment. and could lose money. cities get nothing of that revenue. >> money is a big part of the reason for a different approach, 150 miles south in the city of north bonaville. >> we are looking at ways to ensure public safety and make sure the revenue generated stays within the community. >> the mayor is not worried about the collision with federal law. the city wants to own and run its own pot store. if we are involved from the start, we can have more n put into what happens and what goes on. >> north bonaville is the only city to apply for a licence to sell. >> we are focused on doing it correctly, safe and how we can use the profits we do make to have a better community. >> lawyers who specialise in pot loss say waiting for clarification is a waste of time. >> my advice for the cities is to stop waiting. it's not binding law, but the best you can get. >> ken more and north bonaville two cities on two different tracks. >> what they have done is set up a public development authority, a citizens-run agency running the store and dispersing profits. there's a little buffer that way between city politics and money made. >> two retailers will be licensed. they don't know if they'll get a licence and fhe business. >> now to the vatican. how is this for a pope mobile. it is pope francises custom maid harley davidson super glide bicycle. it was given as a gift. it will go to the highest bidder. the pope will auction the harley off next month, with the proceeds going to charity. >> the price tag for the bike is 20,000. the pope put his signature on the bike tank. >> coming up - almost extinct and now a rare lily may be lost forever. plus, to jackie. the condolence letters after the death of president kennedy. 50 years later they are being released. >> in indonesia more than 25,000 fled their homes following a series of violent volcano eruptions. mount sinabung has been dormant but is now at the highest level of alert. indonesia lies with 130 active volcanos. a rare plant may be closer to extinction. a miniature water lily has been stolen from a botanic garden in london. it has no common name, but the garden staff call it the pig ni rwandan lily. it's half an inch and the flower is barely larger than a fingernail. london's cue gardens is one of two places to cultivate the lily. >> for the first time today, never before seen letters of condole appses sent to jackie kennedy follow the assassination in 1963. in a collection available at the presidential library in boston, the letters are from the first lady's papers. we spoke to an author who has written extensively about jackie kennedy. >> 50 years ago kennedy addressed the nature, thanking the country for the 800,000 letters received. the j.f.k. library released some of those letters that had not been sent before. letters from maxine mcnair, the moth are of the denise mcnair, who was killed at the age of 11 years old, by a ku klux klan bombing of a church. she talked about the shock, and it reminded her. the tragic news came across the airwaves, my matter said it isn't true, it didn't happen. she went on to say, "isn't it strange how people with so much to give in this world are taken. it's god's will, not for us to question." 50 years ago today mrs. kennedy addressed the nation and thanked us for letters of condolences. there were heart-felt outpourings of grief. some were things like a 10-year-old girl wrote and said "i think you are the nicest lady in the world." i mean it too. she was trying to show the nation that she was stoic and you have to soldier on. >> there are 22,000 letters in the series, including telegrams, postcards and momentos from around the world. pages and pages of world war i history are a click away. the first batch of world war i diaries went online. britain's national archives took on the task. the collection is 1.5 million pages and they hope it will >> welcome to al jazeera america. i'm john seigenthaler in new york. here are the top stories. in nigeria new laws are in place that sharply limit gay rights. the president signed legislation banning same sex marriage in that country. activists say police arrested dozens of people. israel's defence minister apologised after issuing harsh words, calling kerry obsessive and messianic and said the plan for peace between israel and the palestinians was not worth the paper it was written on. the white house condemned the comment. chris christie admits that makes were made and what he said at that
they make of this activity. >> earnings looked pretty good this morning. kind of mixed. retail sales figures for december okay. >> decent. >> not horrible, but okay. and we had a lot of fed speak as well today. charles plaser saying it is clear that the fed is tapering and is going to do away with quantitative easing but they're in no hurry to raise interest rates. >> and a couple big interviews coming up on the show. wells fargo among the banks kicking off a flurry of financial earnings this week. that company beating estimates. mortgage loans fell to levels not seen in five years. how much of a worry is that? we'll ask tim sloan in just a bit. >> look forward to that. and tesla has been a huge winner an reporting much better an expected fourth quarter sales numbers, but buckle up. we've got ceo elon musk coming along to tell us about those record numbers as well as the automakers -- >> do you use the word? >> recall? >> upgrade. >> it's never easy with elon musk. according to the federal trade commission, it's a recall. but he says they need to recall that word. it's not a recall. but we'll talk about that coming up. >> yes, we will. we'll talk about that stock today up big. if you google the term big brother, meanwhile, the result might well be google. we'll look at the company's latest acquisition of a startup called nest and how it could mean google will know when you're home, what you're doing at home. how much could google profit or use that information? stay with us. >> and what are they up to right now? >> what aren't they seems to be the question. >> it's amazing. let's show you what's happening today. rally day from the get-go. we're near the highs of the session right now with the dow up 91 points at 16,349. the nasdaq doing very well, up 1.5%. gaining back-plus what it lost yesterday. and the s&p up almost a percent now, 17 points at 1836. joining us in our "the closing bell" exchange is ra beck that patterson, david kudlow from mainstay capital management, rob morgan from fulcrum securities, and chris retzler. rebecca, let's start with you. when the bell rang on december 31 and we moved into 2014, it just felt like something changed, didn't it to you as well? >> no, it's been a very frustrating start to the year, especially for equities, and i think in periods like this -- today certainly feels better. periods like this, it's always going to take a step back and say has something fundamentally changed? has my thesis changed or is this just consolidation? at the end of the day i think it was just consolidation. i'm still very optimistic about equities this year. the data is still moving in the right direction. look at today. small business sentiment better. retail sales okay. data out of europe and japan both better than expected. so the fundamentals are telling us that this was just a lull, nothing is broken. >> rob morgan, alcoa missed and shares were hit on that report, but what about jpmorgan and wells here? kind of a decent quarter. does that stand out to you in terms of pointing a market direction? >> i would agree with rebecca. we just came off one of the best years in basically two decades in stocks. we had some profit taking or consolidation. we didn't really have any catalyst to drive stocks upward until earnings season which just started. as you pointed out, alcoa missed, but it's just the first company that reports. it doesn't represent the whole, you know -- but, yeah, wells fargo and jpmorgan today. you get a couple good earnings reports and we get the dow up the way we're seeing it. >> david, you have got an interesting perspective. last year modest economy, but a stellar stock market. you think it's going to be the other way around this year, right? >> yeah. we think last year we had a great stock market and a modest economy represent at this of the anemic growth we've had in this recovery for the most part. we think this coming year, 2014, we get a great economy or a much better economy, growth expanding a lot of what we've seen over the previous four years of this recovery, and the stock market more modest returns, but still on the order of about 10% to 12%. >> 10% to 12% at this point, you know, probably sounds okay to folks. chris, i'm curious, when you look at the people who are buying in for example to the bond space, the people who would find something below 3% attractive, overseas investors, pension funds. how important is that going to be here in terms of keeping yields low and what kind of boost does that provide to the stocks longer term? >> well, we think that as rates go up, that there's going to be a rotation out of fixed income into equities. so we're here at the needham growth conference today and we're seeing a host of companies that are generally optimistic about 2014. it doesn't mean we won't have a potential correction here in the next few weeks which would probably be very healthy for the long-term direction of this bull market that we've been in. >> i'm going to steal notes from a guest you have coming up in the next hour. we've gone 830 trading days without a 10% correction. that's just astounding, rebecca, when you consider -- was that all fed fueled do you think? >> no, not at all. the fed is a big component of this and watching how the fed evolves under janet yellin will be important, but keep in mind we've had a tremendous amount of net stock buybacks over the last year. we've had people focused more on stocks for dividends, and we have had at least a reduction, i won't say a resolution, but a reduction of global risks out there. i think for the u.s. in particular, we cannot underestimate how important fracking and horizontal drilling have been. if you look at the trade report we got out of the u.s. last week, our oil imports are collapsing. that's a direct positive to gdp and a really important support for the u.s. consumer, and i think that could take this u.s. economy above 3% this year potentially, and that's above expectations. >> and, rob, what's so interesting, too, is at the same time it's not the best news to the energy sector. you guys are underweight. we see crude under pressure today. where does it go from here? >> i would agree with rebecca the long term dynamics for energy look pretty good. just in the short run we think as rates go up, the dollar is probably going to go up, and that's going to be not so good for the energy and material space and gold and oil probably in a year lower in price. >> just to be clear, oil today is rallying, so we're up about 0.7%. some of those names doing a little better. so why do you stay away from the space in the longer term? >> for a very long term investor, some of those dynamics that rebecca mentioned with fracking, you know, there's a theory that really this is going to lead to the whole manufacturing renaissance of america and i kind of subscribe to that theory, but that probably doesn't really happen until 10, 20 years down the road and investors are worried more on a quarter to quarter type how have you done for me lately? >> david, maybe i'm being impatient, but if you're expecting a better economy this year, shouldn't long rates be going up more than they are? the ten-year can't get above 3% right now, and there are plenty of people who feel it should be around 3.5% given the economy at the moment. >> yeah. we think we've still got further to go before rates reach what we consider normalized levels at 3.5% to 4% on the ten-year. and we saw a pullback of about 20 basis points here just recently -- >> that's the point. what's the message of the market if it's pulling back like that? if we're seeing a reluctance to push rates above that 3% level? >> look where we've come from. at the beginning of may, down around 1.6% on the ten-year. rates went up quite a bit, up to 3%. we had taper scare in september, came back to 2.5%. we're going to have kind of two steps forward, a step back, but the long-term direction over the next year or two rates are going higher. we're going to see rates break above 3%, stay above, and head towards four on the ten-year over the next year or two. >> all right. folks, got to go at this point. thank you very much for your thoughts today. appreciate it very much. >> thanks, bill, kelly. >> thanks. stocks recouping some of yesterday's big losses. what's driving the come back? >> let's start out with the electric car business snp tesla was 20% higher than the estimate it gave at the end of the third quarter. elon musk will be live on "the closing bell." regeneron reporting u.s. sales of its i-drug will hit $1.4 billion for the year. its ceo is saying there's plenty of room to grow. he's going to be on "mad money" with jim cramer at 6:00 p.m. and 11:00 p.m. eastern. and a strong day for intuitive surgical as well. the company is delivering fourth quarter revenue guidance above wall street estimates. on the down side we have boeing. this after battery problems resurfaced on the 787 dreamliner. it released some gas from the battery. it was discovered during a scheduled maintenance exam hours before the japan airlines flight was to take off, and a tough day for game stop. this after the video game retailer forecast fourth quarter profits below street expectations and we end with intercept pharmaceuticals dropping another 32% after gaining more than 500% last week. bill, back over to you. >> what a round turn that has been. >> incredible. >> straight up, straight down. thanks, dom. elsewhere, there's an important development in that big nfl concussion settlement that was reached recently. a judge now says not so fast. mary thompson has our details. >> judge anita brody declining to give preliminary approval for the settlement fearing the price tag may not be enough to compensate affected player. brody wrote, i am primarily concerned not all retired nfl football players who ultimately received a qualifying diagnosis or their related claim ents will be paid. under the terms of the sett settleme settlement, former players diagnosed with ailments stemming from concussions would receive cash payments ranging from $1.5 million to $5 million. brody laid out a hypothetical situation where the $760 million would fall far short of covering potential claims that could occur over the 65 year life of the fund. brody wants to see more documentation proving the $760 million is enough. in statements a lawyer for the retired players said he's confident the settlement will be approved. the nfl called the settlement fair and said they will work to supply the additional information brody has requested. >> very unusual. both sides feel it's enough but the judge says not so fast. thanks, mary. well, it's a classic turnaround tuesday. yesterday at this time we were talking about a sell-off we hadn't seen in three months, but now we're up 95 points on the dow and the nasdaq has gained back what it lost yesterday. >> what are individual investors doing after the choppy start? wisdom is waying in. >> they've had a big year. new evidence that rising interest rates and new regulations may be hurting the mortgage market. when we come back, we'll find out how that affects the nation's largest mortgage originator when we talk to that man, wells fargo chief financial officer tim sloan joining us once again. >> and google already knows pretty much everything you do online with your android smartphones, and now they might know what you're going when you're at home and when you're not technically online, like when you're sleeping how hot you keep your house. is google becoming a big brother. we want to know what you think. tweets on this subject will be revealed later on "the closing bell." you're watching cnbc, first in business worldwide. we want to know what you think. we want to know what you think. but we'll do our best to help you connect to what is. [ male announcer ] what kind of energy is so abundant, it can help provide the power for all this? natural gas. ♪ more than ever before, america's electricity is generated by it. exxonmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives here. ♪ amazon started in a garage. hewlett packard, and disney both started in garages. mattel started in a garage. ♪ the ramones started in a garage. my point? you never know what kind of greatness can come out of an american garage. introducing the 2014 motor trend car of the year. the all new cadillac cts. ain't garages great? right now in trenton, new jersey, governor chris christie is about to deliver his annual state of the state address. a lot of governors do this about this time of year. of course, a lot of focus on him right now because of what has become known as bridgegate with all of the revelations last week about his senior staff taking revenge against the mayor of ft. lee, new jersey, back in september for not endorsing governor christie for re-election and closing up lanes on the george washington bridge, the most heavily trafficked bridge in the world, and that, of course, caused the mother of all traffic jams in ft. lee, new jersey. governor christie went on to do a mea culpa news conference last week. he fired one his senior staff members, and now we're waiting to see what he has to say about all of this. we'll get a sense of that though from his speech. i guess he is going to acknowledge it, that it was a blow that his administration took. >> there will be a lot of people watching, of course, to see how he continues to handle the limelight and whether, again, this issue becomes something important enough to start influencing and shaping the race for president the next time around. >> he is certainly a gregarious kind of guy. we'll see what he has to say in a little bit. wells fargo shares have been under pressure just slightly. now it is actually trading a little higher, but not commensurate with the rally we're seeing today. a little better than expected increase in fourth quarter profits to the tune of 11th, but investors are concerned about that 60% year-over-year decline in the bank's mortgage lending and a new forecast suggests that may not get better anytime soon, right, diana olick? >> that's right, bill. it will not. not with rising rates and more mortgage regulation. the mortgage bankers association today lowered its 2014 forecast for originations by $57 billion to 1.12 trm$1.12 trillion for t. it's not just refis. they lower their purchase loans to $677 billion. this after they saw a 60% drop in originations. jpmorgan not much better down 54%. refinance volume has been hit the hardest, but mortgage purchase applications have also been way down, down 16% last week from the same time a year ago according to the mba. the mba has been warning against the new lending rules that went in effect last week from the consumer financial protection bureau. we get weekly mortgage applications numbers out tomorrow morning. it will be very interesting to see how the changes have started to play out. more online realty check.cnbc.com. >> thank you so much. and in a first on cnbc, we are joined by wells fargo cfo tim sloan. he is also a member of the cnbc global cfo council. it's great to have you here. and we look forward to hearing a little bit more about the quarter. let's start with this issue that diana raised. what about the mortgage business and the decline in revenues you have seen from 2012? >> kelly, bill, it's great to be here. >> good to see you, tim. >> we have seen a decline in the mortgage business. it's something that we candidly have been expecting for a while because of the fact that a year ago the disproportionate share of our mortgage originations were refinance. the refinance bubble has waned. i think the important thing if you look at our results for the quarter is that notwithstanding a 38% decline in our mortgage originations, we were able to report 10% year-over-year earnings growth, our 16th consecutive quarter of earnings growth and our 11 consecutive quarter of record earnings. it's not dependent on any one business in particular. >> to some extent, you have to read the mind of a person who is going to take out a mortgage or wants to buy a house, and it's clear we're coming off these record lows we've been at for a few years now, and people are not going to want to buy a house, certainly they're not going to refinance if they've got those record lows already on the book. but at what point do you think they'll become comfortable enough to want to come back into this market in a little bigger way? >> well, they're coming back every day. we originated $50 billion worth of mortgages in the fourth quarter, which was terrific volume from our perspective. it's just down a bit from the third quarter and clearly down from the refinanced driven volume we saw in the second half of 2012 and the first half of 2013. >> so is this the new normal we should get used to? >> i think it's more likely to be closer to the new normal than what we saw a year ago, but, remember, the housing affordability, what it costs for a median income in terms of a purchase for a house, is still very, very attractive and at historic lows. we continue to believe we'll see a very attractive business in our mortgage business, but, again, the important thing is that's just one of the many things we do at wells fargo, and we saw great growth in many of our other businesses, whether it was retail brokerage or credit card or auto or investment banking in this quarter. >> and certainly the growth in loans to commercial and industrial organizations catching people's attention and i wonder what you can tell us about who exactly these borrowers are, what's driving the increase, and how much of an increase you expect in 2014. >> well, i don't know the answer in terms of exactly what the increase will be in 2014, but we do believe we can grow loans from our current base. we've been able to grow loans at a multiple of the industry for years. what you saw in the fourth quarter was $13.5 billion of net loan growth. that's 7% on an annualized basis. very, very strong. the exciting thing for us as you're pointing out, kelly, is it was very diversified. it was in our commercial and industrial business across the board. it was in our consumer business again across the board. what we're seeing is good growth reflecting an improving economy and our ability to go ahead and take share from many of our competitors. >> what role do you think freddie and fannie will play in the mortgage market in the future? you think they will play a reduced role to what they have, and what impact do you think it will have on the that i tour of the mortgage business going forward? >> i think the mortgage business needs to be restructured because the bulk of originations are sold to fannie and freddie. there's a tremendous amount of discussion about that in washington. obviously, we want to be a part of that. i think over time what will happen is the portion of mortgage volume that is sold to fannie and freddie or the replacements for fannie and freddie will decline. there will be a private mortgage securitization market that's recreated in the u.s., and then we'll also hold some on balance sheet. >> does that bring rates higher when you don't have that housekeeping seal of approval from a fannie or a freddie that are buying up those mortgages having enforced greater due diligence in order for them to buy those mortgages? what happens to rates and the all quit of tality of the mortg. >> i think the quality will be good. the quality mortgage rule was just introduced and became the rule last friday. the quality of mortgages we're originating are some of the best we've ever yororiginated. in terms of price, there's so many factors that influence the price and the rate of a mortgage. it can be the pace at which the fed tapers. it can be competition. it can be a lot of things. but the fact of the matter is rates are still at historic lows and housing has seldom been more affordable in the last three or four decades. >> tim, just one quick but important last question if i'm reading this correctly your balance sheet is $1.5 trillion in size. even though your revenue shrank last year, the balance sheet actually grew. that amounts to something like 10% of the size of the u.s. economy and i just wonder if you can speak to whether you think the balance sheet will continue to increase over time and if so, how much? >> well, i hope it does because when it increases over time, it means that we're continuing to serve our customers and growing our relationships. so our best expectation for 2014 is that we will continue to grow the balance sheet because deposits will grow and also loans will grow. >> always good to see you, tim. thank you. >> thank you so much, tim sloan. >> thank you. >> the chief financial officer at wells fargo. >> of course, wells fargo is not the only bank reporting earnings today. kayla tausche recaps jpmorgans' results and tells us what to expect this week from other banks. >> in 2013 wells was more profitable than jpmorgan, the first time we've seen that in recent memory. jpmorgan still hampered by legal charge was three settlements weighing on the fourth quarter alone but tft optimism from executives that led the stock higher today. executives said those legal costs should keep shrinking throughout the year. that demand is increasing for loans even as yields rise and that continued credit improvement will let the bank release more money that they prior saved to cover bad longs. the bank's bottom line fell 7.3%. the boost it got from the so-called reserve releases from cost cuts, layoffs, and one time benefits from asset sales, not enough to can sell ocel out rev that are hard to grow. racing to replace 2 million cards after the target breach in q4. ceo jamie dimon addressed the continuing threat. >> all of us have a common interest in being protected. this might be a chance for retailers and banks to work together as opposed to sue each other like we've been doing the last decade. >> two industries for a long time that were antagonists. dimon said the threat of cyber attacks continues but the costs from target were de minimis. we have bank of america reporting tomorrow. that's expected to be a bright spot of the banks. citigroup on thursday. they keep coming, bill and kelly. >> important week for all those financial services companies. thanks, kayla, very much. governor christie has begun his state of the state address in trenton. we can tiell you -- this is goig to be going on for a while and he will talk about issues that affect the state itself. as far as the bridgegate scandal of last week, he has reiterated the apology saying his administration let down the people we are entrusted to serve but that it doesn't define his team or his state. mistakes were clearly made, he said, and as a result we let down the people we are entrusted to serve. i know our citizens deserve better. pretty much what he said last week during that marathon news conference. >> i want to mention he immediately moves on to start talking about the economy and his track record in new jersey which, again, the more you look towards what is the big picture story for chris christie, something like economic performance is going to be really important should he decide to run in 2016. >> there are still investigations under way into all that but he is ready to move on. >> we have half an hour to go into the close. we're seeing a 100-point rally on the dow after similarly declining yesterday. the nasdaq bouncing back up 68 points at this hour. the s&p adding 19. it's back to 1838. >> they bought the dip today. >> yes, they did. if you want to own michael jordan's college diploma or a dream team jersey, now you can. up next, we'll hear from the man auctions them off and you won't believe how he got his hands on them in the first place. it was an abandoned storage space. stick around for that amazing story. also, tesla sales shifting into high gear last quarter and ceo elon musk takes a victory lap with us. stay tuned for that. it's always entertaining, coming up later on "the closing bell." up later on "the closing bell." michael jordan may be long retired, but certainly his name and his brand are everywhere. recently his shoe and clothing line, air jordan, announced its going to open its own first store retail outlet in new york city. it will be called new york flight 23 after his number, of course, and in another story, some very rare and unique jordan memorabilia have also just gone up for auction. items that amazingly were acquired from an abandoned storage unit of all places. >> just like what you see on television. among them his college degree, recruitment letters, and even his 1992 olympic dream team olympic journey. ken, it's great to have you here. how did you stumble upon this treasure trove. >> we were contacted by an individual who had purchased them from an individual who got them out of a storage unit some i guess eight years ago and delivered them to us. we inspected them. we spent two months researching them, researching the provenance and put them in auction. >> most of them were in a restaurant that was open in north carolina back in 1999 that had michael jordan memorabilia on the walls. after that closed they went on the storage unit and the storage bill was never paid. that's how they ended up there, right? >> exactly. they hung in jordan's 23 restaurant in chapel hill, north carolina, restaurant. it closed. it opened in 1999 and closed down a few years later. they were put in storage and along with many other things that were not quite as valuable, were never picked up. >> michael doesn't want them back? >> i imagine he does. >> he can bid on them is what you're saying. >> exactly. >> how much do you expect these items to go for and by the way, what is behind the enduring appeal -- not appeal because that i understand, but the financial success of michael jordan who hasn't played basketball in over a decade? >> michael jordan is a one of a kind. he's the greatest basketball player of all time. he's the first athlete really to hit wall street, to hit, you know, to hit the advertising age with be like mike and all the nike commercials and his own brand. there's never been one like him before that, never one again. he's really the babe ruth of the modern era, and when you look at the items that are available at golden auctions.com, there are four unique items that were originally in the restaurant. >> i just have time to itemize them very quickly here, ken. you got the diploma and i dare anybody to tell us what he majored in. we were talking about this earlier. >> i guessed economics. >> cultural geography, whatever that is. the recruiting letter from dean smith. so a letter from one legend to another when they were recruiting him there. another recruiting letter from his assistant coach. the transcripts from his days at unc and then, of course, we mentioned the dream team. i would think the dream team jersey is going to be the big one, don't you? >> i especially think that the dean smith letter to michael jordan, that could go for $25,000. it can literally go for $250,000. the dream team letter comes us from the basketball hall of fame. the two north carolina recruiting letters, the diploma and his transcript were from the storage locker find but they all happened to be in the golden auctions auction that's live on gold. aucti>> we're strengthening the close with 25 minutes left in the trading session. the dow at about the high of the session, almost up 110 points now. the nasdaq, we closed here, that's another 13-year high going back to 2000. >> just to put it in perspective, the nasdaq is more than double the relative gain of the dow. we'd be up more than 200 points. but we have boeing, for example, weighing on the index. up next, we'll take the pulse of retail indexers when we speak to wisdom tree's chief investment strategist. >> and then elon musk will be here to break down the fourth quarter sales figures and, oh, so much more. a new government stat showing young adults only make up a quarter of obamacare enrollees so far. who will pay up to fill the gap? those answers coming up. keep it right here. [ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i-95. ♪ 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 world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ about the most track-tested is ever... but the truth is... we don't have to. the experts have spoken. now it's your move. ♪ and truecar users... save time and money. so when you're... ready to buy a car, make sure you... never overpay. visit truecar.com today. as we all know, stocks clocked a monumental run in 2013 that helped reknnrenew the inte in the market for many retail investors. companies like wisdom tree benefited from that. perhaps the biggest hit was the japan fun, the djx. look at the performance in the last year but the nikkei fell a stunning 3% for 500 points overnight. we're wondered if wisdom tree is worried investors might not have the stomach to right now what happens next. joining us next is wisdom tree's chief investment strategist. thanks for being here. >> good to see you. >> how important is the dxj which allows people here or anywhere to get access to japan's markets but correcting or hedging for currency which is an important part of the story here? how much of a success has that been and what other kinds of products is that spurring throughout your company? >> it's been a phenomenal success. the fund took in about $10 billion of net inflows last year. the japanese equity market returned more than 40% last year when you hedge out the currency. so it's a very important fund, and i think it alerted investors if they're investing internationally they have to be aware of the currency exposure. so the extent you can hedge the currency, in some markets it makes a great deal of sense. >> can you explain how you do that? how is that possible? because we just want to make sure people getting into this kind of product are fully aware of the risks. >> we go long the japanese stocks and when you buy the stocks in yen, you're long on the currency. what we do then is do an overlay using forward contracts. we're in a sense short the yen through the forward contracts and that gets us a net neutral position on the currency. >> theoretically you will make money on both sides of the trade. >> if the yen continues to weaken, it will help your total return. if the yen strengthens, it could detract from total return. and it does add volatility to the situation. so last night is an example. there is volatility in this market, but we think we're in a multi-year bull market in japan. that's our view. >> what about a multi-year bull market here? yesterday it certainly didn't feel like that. what do you plan for and what do you see on the fund flow side at wisdom tree? >> the industry saw about $190 billion of inflows last year. it was of the best year thee tf industry has had. wisdom tree had a great year and we're continuing to see inflows this year. not just wisdom tree but the industry. we're seeing inflows into europe, some sector rotation going on within the u.s. market. but i think gradually investors realized etfs really belong in the core of their portfolio. if you just invested in the s&p you would have been up 30%. >> finish your thought. i'm sorry. >> i just think they make more and more sense the more and more people get exposure and understand what etfs do. they're the vehicle for 21st century investing. >> i want to talk about the motivation to invest though. when you mention the gains in japan or europe or the united states, you're talking about countries that are being spurred higher by the central banks and the intervention and the easy money policies. people aren't -- in the past they weren't investing so much on the fundamentals as they were on the market momentum fueled by the fed. does that change this year especially when the fed starts tapering? what do you think? >> well, central banks are always very important. you have to keep your eye on liquidity but you also have to keep your eye on the fundamentals. the reality is the u.s. has had terrific dividend growth over the last three to five years. they've had double digit dividend growth in the s&p last year and we project about 11% dividend growth in the coming year. we look at all 1300 dividend-paying securities in the u.s. so there's a lot of health in terms of dividends and there's health in earnings. if you go back a year ago, the s&p is up about 9% from this time last year in earnings growth. so there's a lot of fundamental support underneath the market. and i think as the tapering discussion plays itself out and people start focusing again on the keys, personal income, consumpti consumption, savings, consumer confidence, there's a lot of factors right now that give you reason to believe this bull market has legs. >> you just mentioned it perhaps and real quick i just wonder what the next wave of etf innovation is going to look like. >> wisdom tree recently launched products that help investors manage interest rate risk. i think what you're going to see more of is firms like wisdom tree taking what had been institutional level strategies and democratizing them. putting them in an etf and giving them as tools that advisers and investment firms can use with their clients. >> call it the taper fund. you're welcome. that's free. >> thank you. grazi. >> thanks, luciano. happy new year. heading toward the close. we're hanging onto these gains here. the nasdaq is still the leader up 70 points. exceeding yesterday's decline. look at the dow up 110 points right now as we have about 15 minutes left in the trading session here. so the holidays are over, but there may be plenty of retail stocks that are still worth looking at. dom chu will have some nax for us next. >> after the bell, goggle's purchase of nest have people talking and some people worried. online, on your phone, and now in your house? google can know what you're up to at all times. is it becoming big brother? tweet us your thoughts @cnbcclosingbell. ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ [ male announcer ] the beautifully practical and practically beautiful cadillac srx. lease this 2014 cadillac srx for around $319 a month with premuim care maintenance included. ♪ i worked a patrol unit for 17 years in the city of baltimore. when i first started experiencing the pain, it's, it's hard to describe because you have a numbness... but yet you have the pain like thousands of needles sticking in your foot. it was progressively getting worse, and at that point i knew i had to do something. when i went back to my healthcare professional... that's when she suggested the lyrica. once i started taking the lyrica, the pain started subsiding. [ male announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic nerve pain. lyrica is not for everyone. it may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new, or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired feeling, or skin sores from diabetes. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. ask your doctor about lyrica today. it's specific treatment for diabetic nerve pain. to hear more of terry's story, visit lyrica.com. it's specific treatment for diabetic nerve pain. i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts, that's why we have ink. we like being in business because we like being creative, we like interacting with people. so you have time to focus on the things you love. ink from chase. so you can. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. it's been a difficult week for retailers with new revelations of the credit card breaches, yet more stores admitting hackings at this point. >> and yet no one is about to give up on the retail sector. dominic chu is tracking how some companies have been performing in the post-holiday sales season. >> what it comes down to is we know that the consumer discretionary stocks were the best performers last year. they haven't really taken that performance into the first week and a half or so of this year. if you look at the s&p 500, consumer discretionary stocks, they are for the most part down 2%, 2.5% to start the year. it's one of the worst performers on the s&p. we wanted to take a look though at some of the stocks that are actually making some positive headlines, not necessarily just in the s&p 500 but in the retail sector overall. we know lululemon, jcpenney, sears have all had rough starts to the years. check out these names. francesca's stores are up 15% just this year. we're only a week and a half, two weeks into the year. that's a big move. also discount clothing and fashion company stein mart is up 11% so far in 2014. another decent winner, again, just a week and a half to start off the year. abercrombie & fitch, yes, it's a roller coaster right but a nice strong start after a rough year. we're talking about macy's, one of the biggest department stores out there. it's up 3%. they own bloomingdale's and that stock has been pretty decent. if you look at the overall picture, one more ancillary play that's not necessarily a retailer per se is a company called tanger factory stores. these are the outlet malls you might have around where you live. those massive, massive stores. this is a real estate investment trust. it's up 5%, 6% just to start the year. retailers doing well. kelly, bill, also some of the real estate plays, especially those reits surrounding the retail space. back over to you. >> everybody loves those dividends. >> thanks, dom. heading in the homestretch. only ten minutes left to go into the close. the dow is up only about 93 points. we say only because we were up triple digits moments ago. >> art cashin telling us the bias is pretty much flat. new york yankees shortstop derek jeter rarely makes an error on or off the field. now he's teaming with the former ceo of lululemon. they're working on a new prepared foods company. i don't know how that works but you will find out. >> yes, and coming up we'll talk to christine day about her next at-bat as the ceo of luvo and what position jeter will play. plus, what is jeter say being alex rodriguez. stay tuned for all of that. we'll be right back. ard - gots all my pertinents on it and such. works for me. turn to the camera. ah, actually i think my eyes might ha... next! digital insurance id cards. just a tap away on the geico app. could save you fifteen percent or more on car insurance. everybody knows that. well, did you know that when a tree falls in the forest and no one's around, it does make a sound? 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>> what you're seeing today is a dead cat bounce. really? >> you're seeing a bounce, not significant but last time i talk to you back in december, we looked at some of the anecdotal evidence. true to form you saw december 3% to 5% equity market upside. you saw the nasdaq, the industrials, they participated. you are seeing people tap the breaks a little bit. you're seeing money go constructively into fixed income. >> you're not constructive on a higher market right now? >> actually i am. i look at industrials, transportation, housing numbers. look at the railroad industries and -- >> transports have been setting all-time highs. >> it's oil by rail car. you're seeing things like grain, transportation, commodities by rail car. when you look at the infrastructure in the u.s., toll contin -- it will continue. >> you think commodity prices will go higher. >> i think when you look at what's going on, you're seeing a slight drifting upwards of commodity prices, but when i talk about infrastructure, you're seeing that 8% to 10% upside between now and the end of june. first two quarters i see 8% to 10% upside. >> what would you avoid? >> i look at anything that's incredibly duration sensitive. fixed income, reit exposure. >> because rates are going up. >> we're in a taper environment plus interest rate increase environment. when you look at the steepness of the yield curve, longer time a lot of people are trying to handicap that. >> all right. looking for juice. we got it today. michael, always good to see you. thank you. >> thanks. >> take a break, come back with a closing countdown for this tuesday. and then tesla shares, they've been spiking after better than expected sales of the model s. coming up, ceo elon musk will be telling us what's driving that growth. and privacy advocates are turning up the heat on the google's acquisition to buy smart thermostat maker nest labs. it allows them to monitor your energy use at home along with being able to monitor everything you do online. we want to know whether you think google is on the road to becoming big brother. we'll air some of your best tweets in the next hour of "the closing bell." you're watching cnbc, first in business worldwide. 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monday a sell-off, today a rally. stay tuned for the second hour of "the closing bell." elon musk joining kelly evans and company. see you tomorrow, kelly. thank you, bill. welcome to "the closing bell." i'm kelly evans on this, well, we could call it a turnaround tuesday. stocks gaining back most of yesterday's losses. here is how we're finishing the day. the dow adding 113 points staging a bit of a late-day rally despite being pretty strong all day and being weighed down by boeing. we'll get into that in a moment. the nasdaq the outperformer by a yard. 1.7% higher adding 69 points. that more than erases yesterday's decline. and the s&p 500 a pretty broad based turnaround as well. up 1%. joining me now around the table sharon epperson and kate kelly, cnbc contributor carol roth. heather hughes from sun america funds and "fast money's" guy adami here to king things off in the "a" block. let's talk about what jumps out to you about the market action today and where this leaves a volatile and choppy trading month. >> what jumped out to me was i thought we'd have follow through this morning. i was convinced yesterday after the close we'd have another down day anywhere from 10 to 15 s&p handles to the downside. earnings to me have been okay. the jpmorgan report i thought was very good. some of these retailers were lousy, and i really thought that we'd start to see the follow through on the downside. today caught me off-guard. i'm not calling it a key reversal. i'm calling it further choppiness in a market i still think heads down towards 1750 at some point in the s&p. >> heather, what do you think? is this a positioning story today? in other words were a lot of people kind of like guy coming into this thinking maybe more of a breakdown and all of a sudden e re-evaluated. >> today was a big day. if i saw another sell-off today i would be a little concerned. that by the dip mentality, we saw it hold true. guy alluded to the retail numbers. that's key in terms of the driving factor of the economy as consumer spending does account for 70% of gdp. december numbers were 0.2%. >> what's your read on it? it was an interesting report. it was kind of like overall pretty good but it was actually a little weighted more towards necessities than, you know, the more kind of -- diggs kretiscre items out there. >> we saw a lot of promotional cuts and we're see a camp up in e-commerce divisions. you're looking to -- traffic is moving online and not to the physical stores. >> interestingly enough, retail was moving down again this year for the whole year overall for the past three years. you look at a 2011 to 2012 to 2013, it's a downward growth trend which to me is very concerning. on top of the fact we barely made the retail number for fourth quarter. a lot of that will come -- >> at the same time -- >> expense of margin compression. >> consumer discretion was the best performing sector in 2013. you look at a company like amazon even if you want to throw in the googles of the world where they're increasing share from some of these other players. so overall, kate, the picture is probably a little healthier than what we're getting from some of the name brand stores. >> well, i do think, kelly, you're seeing an overall consensus we're going to have a good, solid year, maybe not as dramatic as 2013 in the equity markets but a good up year. at the same time though, i'm not sure there's consensus on where we're going in the next few months. when i talked to professional traders, be they hedge funds or folks at banks, i mentioned this on the show last week, they're going to see a 5% to 15% pullback in the first quarter -- >> but -- >> are you nuts? >> when people look at their statements coming in, they want to continue those gains, and the financial advisers i'm talking to saying it's very difficult to get their clients to understand now is the time to rebalance. if you want to see a pullback in the market, you want to continue dollar cast averaost averaging. it's not going to be exactly the same. >> just come back to the point that guy was making. what happens if we don't have the 5% to 15% pullback? what are the people you're talking to, what do they do? >> on the with unhand, there are a number who say look at the price ratio of the s&ps. they scoff at the idea we're going to have any serious gain. at the same time, i think it might be a welcome opportunity to resettle a little bit as some of our panelists are saying. it's maybe a chance for the retail investor to get in at a slightly cheaper level. also, i think people are willing to take chances in january because it is a fresh start. >> all right. guys, we're going to leave it there for now. we have a big interview coming up. guy, thank you for swooping on. we can catch more of you on "fast money" at 5:00 p.m. look at shares of tesla. they were surging on better than expected sales in the fourth quarter. tesla delivering 6,900 model s sedans, 20% more the company said than it originally forecast, but there's also a dust up tesla is having with the government about when a recall isn't really a recall. amid all of that, joining me now is the tesla ceo, elon musk, and with us cnbc's very own phil lebeau. phil, start us off. >> thank you, kelly. elon, thanks for joining us today from the company's facilities down in southern california. let's start first off by setting the stage for everyone. when you are putting out the tweets today saying you object to the use of the term "recall" from the federal government, this has to do with a fix for the charging stations that you guys announced last friday. you filed the paperwork with the federal government. it comes in and is listed on the national highway traffic safety administration as a recall, but you say that shouldn't be what it's tabbed as. you think it should be called simply a remedy or something other than a recall. explain. >> sure. well, the word "recall" is vestigi vestigial. in the past the only way to update a software in the car was for the car to be brought into the dealership to get serviced and they'd have to plug it in and update it, but all of the tesla vehicles have an over the air update capability just like your cell phone or your laptop. so effectively it's a bit -- it doesn't make sense to call it a recall in this situation. it's an over the air update, so it's just -- it's not a word that makes sense in the 21st century for the model s. now, i think there are cases where a recall, of course, is necessary when there's a mechanical problem with the car and that requires the car to be brought in but that's simply not the case here. i wouldn't sort of characterize this as, you know, as being at odds with nhtsa in any significant way. we just wanted to make sure we clarified to customers that they don't need to bring their car in. they could be under the wrong impression that they need to bring their car in and that's simply not the case. >> is this a necessary upgrade for people though? in other words, is it an upgrade they need and ought to make in tesla's opinion? >> well, the over the air update has already taken place. it took place last month. >> the reason i ask is this. there's something very different between what you're kind of describing as a software or hardware upgrade and a bug or an issue or a problem that needs to be fixed. which one is it? >> no, i think you're creating a false dichotomy there. the remedy in this case was to do an over the air update which we did last month, and obviously bringing the car in is kind of pointless because the software has already been updated. >> but it is a remedy. am i correct, elon, not to cut you off? >> yeah, yeah, it's certainly a remedy. it's just that -- there needs to be a better word than recall to describe -- remedy would be certainly an accurate way to describe it. but i really hope that's -- that's the least important thing that was announced today. i think the most important by far is the fact that the demand for our cars in the fourth quarter was very high and we actually exceeded our guidance by almost 20% delivering 6,900 cars, and the key factors that we ascribe that increase to are the fact that people realize that our car is the safest car on the road. it has the lowest probability of injury of any car. the model s and tesla is the only -- tesla is the only manufacturer to have no deaths or serious injuries, and it's virtually impossible to have a car that is safer than the model s. >> elon -- >> and i think that was a key factor and then also were the sales that in norway, for example, we have the highest sales per capita of any country in the world. in fact, for a few months in the fourth quarter, we actually were the most sold car in norway. number two was the vw gulf. >> and that's certainly something that the market is rewarding you guys for today. they like the performance obviously. i just want to go back to this point because some of the investors that i speak with about the sales figures say they didn't remember seeing a revenue projection when you're talking about beating that projection by 20%. obviously the deliveries are above what people were expecting, but can you comment on that language at all? >> i guess in our case we have basically one product, so for us delivers and revenue are very, very similar things. there's not a meaningful difference between the two, . we don't have a wide range of products. we really just have one. >> what is your production rate as you are standing right now? is it 600 vehicles per week? where were you standing at in terms of your production and what we can expect for 2014? >> i think our reserve comment on those points for the q4 earnings call which is scheduled for next month, but i'm very optimistic about 2014. you know, our rough aspirations as i have said before are to be somewhere in excess of 800 vehicles a week by the end of the year. obviously we'll try to exceed that, but i'm confident we can meet that number at a very minimum. >> and how important is it -- i'm sorry, phil. i was going to say real quick. >> go ahead. >> -- to stay an independent company here because people love to talk about who could be a potential bidder for the tesla. >> yeah. no, i think tesla is going to remain independent as far into the future as i can imagine. >> phil? >> elon, one last question for you. what's happening with china? have you actually started shipping model s to china? >> actually very optimistic about our progress in china. so we expect to start shipping -- we're putting cars on a boat essentially in about a month, and then they'll -- we're hoping to make our first deliveries in china in march. we're not certain but we're hoping to do that, and i think towards the end of this year we'll see very significant sales in china. we've seen a tremendous amount of enthusiasm for the product, and whenever there's sort of a tour group that comes by, the most enthusiastic people about our car are people from china. so i think that bodes very well for our progress in that market. >> and the folks who have put down money -- >> sorry, before i forget, one other thing i should say is that the right hand drive version of the model s will be coming out in april. that's going to be important for markets like the uk, japan, australia, hong kong, singapore and that kind of thing. >> absolutely. i was going to ask for the people who put down deposit for the model s when they can expect to be driving that vehicle? >> we expect volume production of the model x to be basically in the first half of next year. so we'll have -- as with the model s, the initial production starts off slowly but grows exponentially. so we're about a year away from the first model x deliveries and probably another three to four months after that will be -- will be the point at which we do volume production of the model x. >> and in terms of your work on -- >> go ahead, phil. >> i was going to ask him quickly on the model e in terms of the mass market model, any update in terms of how -- what kind of progress you're making there? >> yeah. so key with the model e, that's a vehicle that would be smaller than a model s but half the price, key to that is solving the large-scale battery production challenge. i'll talk more about that next month in the q4 earnings call, but i'm very excited about our plans for a giga factory. it would be the biggest battery factory in the world by far and we'd do it in partnership with some other companies and that's shaping up really well. i'm very excited about it. we're making the final selection as to which state it will be in in the next month or so. >> and the auto industry watching as tesla continues to shake things up. elon musk, thank you so much for joining us this afternoon. phil lebeau, really appreciate it as well as we watch an outperformer in this market. thanks, guys. google's $3.2 billion deal to buy nest meanwhile raising some red flags, namely is google becoming big brother? think about it. google know what is you search for online, who you e-mail, and now effectively when you're home. could know a lot more about what you do when you're at home depending what nest develops next. we want your thoughts on this touchy issue. tweet us @cnbcclosingbell. put them on air at the end of the show. ahead, we'll have an update on what new jersey governor chris christie said in the state of the state address about the george washington bridge scandal. keep it right here. you're watching cnbc, first in business worldwide. connected to more standard horsepower than its german competitors. and that is the moment that driving the lexus gs will shift your perception. this is the pursuit of perfection. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. [ male announcer ] what kind of energy is so abundant, it can help provide the power for all this? natural gas. ♪ more than ever before, america's electricity is generated by it. exxonmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives here. ♪ about the most track-tested is ever... welcome back. google's latest acquisition of nest labs, a home automation company, bringing more focus on privacy issues related to the company. does the search giant know too much about anyone who uses its services? now not only google being able to track your online activity and e-mail conversations, it could know the temperature setting in your home and nest could be developing other in-home desvices that will tell google more about what you do in your home and when you do it. let's ask carmen about it from consumer watch dog. >> thanks for having me on. >> it's early days still as we see more and more smart devices coming. what's your position with regard to the disclosures and any, for example, antitrust concerns or just trif privacy concerns gene for the tech giants? >> this acquisition of google has the potential of being a google home invasion but consumers don't have the equivalent of 911 to call. our homes are in many instances the last bastion of privacy. this is giving google the upper hand of invading that privacy. >> carol, what do you make about this? >> you know my goal in life is to be a celebrity recluse like howard hughes. i'm vehemently against this. from my perspective i think the luxury of the future is going to be privacy and i think that you're going to see a bifurcation in the market here -- >> wait a minute, privacy isn't a luxury -- >> no, it is going to be a luxury because between what we are putting out -- what the government is tapping into, and what these consumer products companies are now coming to market with, it really is going to become a luxury. i think you will have a bifurcated market. while you have people developing smart technologies, you will find people -- >> wait a second. i think you're making good points but am i the only person not upset about this. i don't mind google knowing what the temperature is in my home. i consider that to be a relatively impersonal detail. if we were talking about putting cameras in my home, i would be upset. i'm one of these people who doesn't take a frequent customer card from the drugstore because i don't want them to track what i'm buying at the drugstore. >> the other thing is it's going to take a while for this to happen. think about what the nest co-founder even said at ces, how long it's going to take for the development of this connected home. we're talking about the early '90s with the adoption of the internet and this decade where it became mainstream. >> that doesn't mean it's -- >> it's a gateway drug, folks. >> do you have a nest in your home? >> i have one. it's been in a box for the last month. my husband and i love the internet but it took me a while to adopt it. i think the same thing will happen. while we're talking about privacy concerns, more consumers will think twice about even adopting this type of -- >> just because it's a long lead time doesn't mean it's a nonissue. i hear you and hopefully we will develop privacy safeguards in the time we may have, but i still think it could be an issue. i'm not sure the smoke detector and the thermostat are really the problem. >> what about some have suggest what had we need is disslow hc e closure on some of the devices so when you buy something as a consumer, you may be entering a relationship that gives up your privacy to a large extent. >> well, we need more than just disclosure. we need consumers' ability to say don't share this information with anyone else. i don't know that many consumers are going to be concerned if information about what the temperature of my home is, where my thermostat is set at but what about when a refrigerator starts tracking when we need new milk and sending us a notice or when our liquor cabinet starts tracking when we finished that bottle of whiskey and not only notifies us, but advertisers, and insurance companies and employers. >> you never agree to the nsa listening to your phone calls, i get that. but they're using this, google and nest, to increase their services to the end users, hence the consumer. if you don't want them tracking what temperature it is in your house, you don't buy it. i think ford is also tracking their cars and there's a big debate on that. so you don't buy ford. >> i was going to say the reason i raise it in this disclosure issue is because i think a lot of people -- if you buy nest, you kind of know what they do. you have a sense of the relationship you're entering into. you maybe didn't know that until now with regard to the car that you're driving. that was my point. >> how many people read the disclosures and the agreements that you sign online? you agree to all kinds of things that invade your privacy. you can have disclosures coming out every orifice. it's not going to make a difference. i think you have to be really, really clear as a consumer on what it is that you want to do in these kinds of relationships. here is the other thing, kelly. google is probably going to use this as a leader to connect to their other products. if you want to change your thermostat, you have to have a google plus account or you have to have a gmail account and they have new access points. it's a way for them to know what you're doing mobilely, on your body through google glass. >> if you think about the start band that track the number of steps you take, the quality of sleep, you can imagine it all being of a piece. just last week we were talking to jon fortt and julia at ces and jon thinks the next wave of interesting products is in this home security area within people's houses. here we are literally one week later with google making its second largest acquisition in history. >> consumers have a choice with a public company. of course, with the government sector, we don't have choice. that's a different story. >> got to leave it there. carmen, thank you for joining us. it's an important debate. what does christine day have in common with the new york yankee short stop derek jeter? 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dominic chu is keeping an eye on the big movers. >> best move of the year to the upside. we begin with jabil circuit. it gained ground after goldman added the stock to its conviction buy list citing some valuations, so those jabil circuit shares on the upside. a big day for control4. it surged as investors look for the next nest labs which, of course, was acquired by google for $3.2 billion. the stock began the day with a market cap of $400 million and higher today. a tough day for industrial 3d printer stratasys. we're going to finish off, we have to, with intercept pharmaceuticals dropping another 30% after gaining 500% off positive data. back over to you. >> we've been asking what yankee shortstop derek jeter and outgoing lululemon ceo have in common. the answer is food. christine day will become the ceo of luvo. it is backed by derek jeter and jennifer garner. a cnbc exclusive christine day joins us from the icr conference in orlando along with courtney reagan. >> good afternoon. i am joined by christine day. going to start a new venture. why pick this company? you could have gone to probably any number of companies. why luvo? >> for me it's about purpose-led companies, and something that i can transforms industries in. reinventing the frozen food aisle with healthy foods that's nutrient dense, that's good for people, that reintroduces people to food they should be eating and love. that's a mission i can get up for every morning. >> a lot of people were surprised when you announced your retirement from lululemon. you did so in june. when did you make the decision to join luvo? play us out the time line. >> i was approached by the founder steve in september. took us a little while to kind of coordinate our schedules, so it was really november when we kind of got into a serious conversation, and at first it was about a strategic adviser investor. i decided to make an investment in the company and then as steve -- and i started to look at the business model. i said i want to run this. and that was steve's dream all along and he's a smooth talker, but i really feel like the time is right. this is an industry that's about to make a huge shift, and i think health and wellness are on everybody's mind right now. >> and you didn't even have to leave vancouver. >> i don't have to leave vancouver. it couldn't get any better than that. >> i think kelly has a question for you. >> it's kelly here at the stock exchange. this category, as you mentioned, is one where there's already a ton of competition and the evolution is already happening. so the question would be, first of all, what's the edge that you guys are bringing to the space and, secondly, is it intentional that the name sounds like lululemon? >> i had nothing to do with that. i do appreciate the lucky "u" in both starbucks lu lu mlulemon aw in luvo. i think what's different about the food is first off is the taste. i think the only way for to you experience that is to actually try the product. but this is incredible tasting food and that is one of the things that really convinced me. the second is it's nutrient dense. i think the words, you know, antibiotic free and hormone free and things are really big in the reinvention but nobody talks about the nutrients in food and what's actually needed. whether it's low sodium, low sugar, high fiber, and nutrient dense. that's the type of food we need to be eating to become healthy. >> and if i could pick it up here and just talk to you a little bit about lululemon and the company you're leaving behind. we talked about the disappointment that the market really showed when you announced your retirement. we have a new ceo that's getting ready to start. how confident do you feel with this new team as you walk away from lululemon and start your next chapter? >> i'll tell you, i don't think you have a better cfo than john curry who is there. tara who just joined the company and is here at the conference is amazing and she's going to bring a great leadership. and, you know, this is a brand that has a long runway. i believe in this team. i believe in this company and i'm committed to a successful transition and we're going to meet up next week and have a great time sharing everything that's great about lululemon and he's going to carry it forward. >> okay. kelly wants to jump in again. >> i'm just curious when you look at the company now and the performance, this has gone well beyond just kind of a slip up here and there. the market is valuing this company at levels much below what we saw at its peak. it's kind of been a story about a rise and a fall and reflecting on that, do you wish it had turned out differently or is the story, i guess, not over yet? >> i think everybody would love to leave on a high note, and it's probably, you know, my biggest personal disappointment in what's happening right now, but this is a company that has a long runway, a lot of brand loyal fans. i see it as a momentary stumble with great opportunity going forward. i think this new leadership team that's been assembled has the heft and weight to carry it forward. and i would be very disappointed if anything else happened. >> yes. the health and wellness category, whether it's things your wearing or things you're eating, does sound like it's still the place to be. christine and courtney, thank you so much for joining us this afternoon. we really appreciate it. >> thank you. >> thanks, kelly. new jersey governor chris christie just finishing his state of the state address as he faces down the stickiest scandal of his political career. we'll bring you the latest developments on that one next. plus worst fierears realizen obamacare. older people signing up at a greater rate than the young folks. will the economics work? 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(vo) so do we, business pro. so do we. go national. go like a pro. welcome back. so what could possibly prompt national cable news networks to take governor chris christie's address forward? the george washington speech. they got a little on the bridge and a lot on the economic bridge of new jersey. >> the speech is called the state of the state for a reason. it's about new jersey, but, of course, as you say a national audience here paying attention as chris christie stepped before cameras for the first time since that mammoth press conference last week. he said in this speech mistakes were made and he said this behavior at the george washington bridge scandal was not good enough for the people of new jersey. take a listen to how he framed the conversation. >> i'm the governor, and i'mult all that happens on my watch both good and bad. without a doubt we will cooperate with all appropriate inquiries to ensure that this breach of trust does not happen again. but i also want to assure the people of new jersey today that what has occurred does not define us or our state. >> and that was a classic political pivot right there, kelly. this scandal does not define us our our state. what does define new jersey? christie went on to deliver a speech that hit on some of his economic high water marks knowing there was a national television audience watching this. he talked about tax cuts, business confidence, he talked about the economy and jobs, and he talks about schools for local voters here in the state of new jersey. so all of that making the case to voters, hey, forget about this scandal, i'm focused on what you're focused on. if anything, kelly, it reminded me a little bit of bill clinton. classic scandal management here by chris christie today. >> carol was just going to say something. >> i wanted to throw in one other thing. didn't he also spend a lot of time talking about bipartisanship? one of the things that stood out to me is how he kept saying this was getting done with the democrats and the republicans together, which was very, very interesting given the fact that this was a national stage for him. >> and part of chris christie's appeal on the national stage is that he is a republican governor in a blue state like the state of new jersey. he's a guy who can win in a bipartisan way who has made it part of his calling card to be a bipartisan governor or at least appeal across party lines and try to find those places where he can work with democrats. if he's going to win the republican presidential nomination in 2016, he's going to do it as a guy who can bridge some of the gaps that we've seen that have divided washington so much. that's his appeal nationally and he was very savvy to include that appeal in the speech today. >> eamon, i wanted to shift actually to a story as well on the national level that's important and one you have been covering. it's obamacare. news today finally about the rate of old versus young people signing up, and we're learning that it's not as many of the youths as hoped. something like a quarter of the enrollees are the younger demographic and the administration had been aiming for something in the mid to upper 30s. >> that's right. the key is obviously you need those young, healthy people to make the economics of this health care reform really go and to not cause real pain for the insurance companies that are signing up a lot of these people under obamacare. if the old, sick people are the ones signing up, they're high cost. in the young so-called invincibles who think they're not going to get sick don't decide to sign up, then that's going to make the economics of this whole obamacare reform go upside down. it could be dangerous not only economically but also politically for the president in the last remaining years of his term. >> but is it really that surprising when you think about, yes, we want to see the 40% of those who are 18 to 35 who don't have health care sign up for it, but at that age a lot of folks are just thinking about what they need right now. they're healthy. they're not thinking about insurance. they're thinking about how they're going to pay their rent and cover groceries and keep their job or get a better job than the one they first got out of college if they were lucky enough to get employment. it's not surprising we haven't seen that rate tick up right away. do you think we will probably see us get closer to that 40% probably by the end of the year or in the next couple months? >> they still have until march 31st to sign up, right, eamon? >> it's not surprising that those are the people who would be the most reluctant to sign up. that's why so much of the marketing campaign here has been going right after those people. but the question is whether or not they will ultimately sign up. as we've seen, this health care rollout has been botched on some of the fundamental blocking and tackling of the rollout itself. if this turns into another problem, it could be damaging. >> i think one of the reasons is they saw the website problems, went online had the millennial impatience which i also share despite my slightly older demographic and said forget it, i'm going to wait until a better time or i don't need this right now. why not save money for another 3 months, 12 months, what have you. i would guess they'll be late for the game. >> the website was messed up. it wasn't easy to sign up. what we're seeing is it looks like some of their older parents, grandparents, might have figured out the website faster partly because they felt more need to get the health care. >> i think it comes down to a forecasting issue. we see this government agencies, they do a really, really poor job of forecasting and they're always aggressive. they're putting the politics and their own personal agendas over making something that works, being more conservative, and issues of the american people. there's no reason why we needed to get 40%. nobody was surprised. why is the government surprised about this? >> and bring it back to a company. now we've seen the obama administration is moving away from the federal contractor that did the website. they're moving to accenture. that's going to be a big challenge for accenture. how do you figure out how to redesign this website on the fly, rebuilding the airplane in midflight, and also do it in a way that can really appeal and make it accessible for all those young invincibles. that's a big, big challenge. >> the age that young people can stay on their parents' plan is now raised as well. so they don't need to get their own until after they -- >> 26. >> so that's another reason why when you look at these numbers we're looking at 18 to 35. a lot of those folks may not need the insurance right now. >> we have to leave it there. i will say it's interesting to look across the states. the journal has a nice breakdown. utah, it looks better. the distribution looks better than other states. i wonder if that goes to the higher rate of people who are married at a younger age in that state or something else. >> one of the articles i read pointed out in massachusetts when they rolled out their program there was a delay on getting the young people on board and we could be seeing the same trend here. >> important issues. thank you for joining us on the floor of the stock exchange we should say as well. >> i'm here. >> on this tuesday. >> thanks. senator thune pitching his proposal for jobless benefits coming up. plus, wait until you hear which stories are burning their way to the top of our "hot list." don't go anywhere. we'll be right back. afghanistan, in 2009. on the u.s.s. saratoga in 1982. 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[ male announcer ] here's a question for you: is your tv powered by coal? natural gas? nuclear? or renewables like solar... and wind? let's find out. this is where america's electricity comes from. a diversity of energy sources helps ensure the electricity we need is reliable. take the energy quiz. energy lives here. welcome back. so much news today. which stories are burning up the website right now? allen wastler is joining us. >> the tesla story has been a major pull for us all day. it came out friday, but today is the day the government sort of opened up the whole recall semantics question. right now -- and thanks to you and your show, you have given us yet another jolt of traffic to the story because we've updated it with your interview with elon musk. him basically saying it's more appropriately called a remedy, not a recall. you know, i can kind of see his point a little bit. >> cue the music. >> our next biggest puller right now and maybe for all the wrong reasons, it's building the itunes of porn. yes, we have a reporter out covering right now the adult entertainment expo in las vegas and we're getting plenty of news stories back. i know, i know. >> i thought this was a play on a different industry. i didn't realize you were actually talking about -- who did we send out there? >> it's one of my freelancers. he's been doing it for quite a while. the industry has been hit by all sorts of piracy problems. they have an idea of taking the itunes model and getting around that. it's an interesting read. $12 billion industry. $97 billion worldwide. it's a big business. finally, the third one, i wouldn't believe it, you wouldn't believe it, 26,000 people have read this already. it's the net neutrality case. >> yes, yes. good. i'm glad. >> they turned over the fcc's decision that the internet can be charge-free. now the providers are -- they might have an opening to start all sorts of charging plans. big interest to people in the business like me. >> are you one of those 26,000 cliques? >> at least three of them it was me. different computers. >> allen wastler back at headquarters. thank you, sir. new idea, same old controversy. up next, senator john thune has a plan to get the long-term unemployed back to work. he wants to waive obamacare coverage requirements. the senator taking the hot seat next. we'll be right back. works for me. turn to the camera. ah, actually i think my eyes might ha... next! digital insurance id cards. just a tap away on the geico app. could save you fifteen percent or more on car insurance. everybody knows that. well, did you know that when a tree falls in the forest and no one's around, it does make a sound? ohhh...ugh. geico. little help here. [ male announcer ] what kind of energy is so abundant, it can help provide the power for all this? natural gas. ♪ more than ever before, america's electricity is generated by it. exxonmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives here. ♪ welcome back. with some big news from general motors. joining us on the phone to tell us what the deal is. phil? >> kelly, as expected. general motors is declaring its first dividend for common shareholders. 30 cents per share. this is the first dividend we've seen from general motors since the company has come out of bankruptcy. and the first for general motors since well before it slid into bankruptcy in 2009. >> and the share is higher in after-hours. congress is struggling over extending emergency unemployment benefits that expired at the end of last year. today, the senate is working on a plan that both sides say is close to be approved. but it does not include a creative proposal made by john thune, who wants tax breaks for businesses who hire the long-term unemployed. john thune is joining us from south dakota. what's interesting about this proposal is you're trying to solve two problems at once. benefits for the unemployed. and those dropping out of the workforce. how does this accomplish those goals? >> thank you, kelly. not just treating the symptom but the problem. and the problem is it's too expensive, too costly, for employers to hire new employs. what we would do is say, okay, if you're an employer who has 50 employs, under obamacare you have to provide health care or pay a penalty. this would waive a penalty for any employee that's within unemployed for a long period of time. secondly, a six-month payroll tax holiday, that would allow employers to have a break of about $40,000 a year employee, coupled with the waiver of the penalty under obamacare. and that's several thousand dollars incentive to hire new people. and it would also provide a $10,000 low-interest loan to people who want to move or relocate to an area where there's lower employment and more jobs. if you're on unemployment already, you're probably not going to have the resources to move to a place where there might be jobs. and finally, we consolidate a bunch of programs that are worker training programs. about 50 programs and 9 agencies, all of which are many ineffective. and shift some of the power and the resources and control to the states so they can help to get workers trained for the jobs that are available out there. we think that deals with the problem and not just treats the symptoms. >> it provides incentives to address some of the issues. i wonder is it the cost of doing this, that's standing in the way of this bill moving forward? >> well, i think part of it is, there's obviously a little cost associated with it, that we pay for, by reducing federal spending in other areas. but i think part of it is, we get hung up in washington too often on treating symptoms. this will be, now, the 13th extension of unemployment benefits. obviously, there's people who have been unemployed for a long period of time. but as we saw the jobs report last month, the worst in three years. 347,000 people leaving the workforce. the labor participation rate, the lowest level in 36 years. we have a problem out there. and we're not creating the jobs we need. we need to make it less expensive, less difficult for employers to create those jobs. ultimately, the key to all this is growth, job creation. right now, that's not happening. and, senator, if the jobless benefits proposal moves forward without the incentives that you're outlining, will you support it? and if it passes the senate, would you like to see your colleagues in the house support it? >> it depends on how it's -- whether it's paid for, how it's paid for. we don't have any agreement with the senate democratic leadership. they've not allowed amendments on our side that would allow us to offer up alternatives to pay for it. if we get to that point, i'll take a look at it. obviously, want to do something. however, that fixes the problem. that's why we need to be having a debate, not just about the symptoms. that's extending unemployment insurance for people who are unemployed for long periods of time. but doing something to create jobs for them. if it goes to the house of representatives, perhaps they'll be in a better position to include some of the types of provisions. in the end, that's what we need to do. you have to provide incentives for employers to create jobs. >> an important package. and some interesting thoughts in there, senator. thank you for joining us. we'll be watching from the stock exchange here, certainly. get the tweets in. we want to know if you think google is becoming big brother. your responses and thoughts on this one coming up. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com. over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i-95. ♪ 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 world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ welcome back. is google on the road to becoming big brother? we asked. you tweeted your responses. there were mixed feelings out there. would you want your neighbor knowing every detail about your life? no. why is it okay for companies to collect that info? google having and getting all our information isn't half as scary as when someone else finally hacks into it. and aaron tweets, call me naive or stupid. but i'm not afraid of google. that's telling you, actually. this is a company that has a lot of trust in brand equity. certainly with people who grew up with it. >> people that wrote in about hacking, that's the scary part. you're not anticipating that you're going to have someone steal your personal information and your credit card data. when you're doing something like shopping, online or at a store. here, actually, you know you bought the nest. when you buy it, you know what they're going to do. and you purchase that item. >> it creeps me out a little bit when i type an e-mail and i see an advertisement from my key word in a message to the right. i know google is reading my e-mail. >> go back to the godfather days. do not trust anyone. protect your privacy. and i'm telling you, there's going to be an industry around making privacy a luxury. >> or companies. that's interesting. take duck, duck, go. there's a lot of search engines, we're not google trade. >> if we get another blizzard and you want to turn your heat on, please wait for -- listen to this ad from our following sponsor before you do that. >> and we will have duck, duck go on the program tomorrow. thank you for being here. "fast money" is coming up in a few seconds. melissa lee, talking more tesla. >> yeah, you had elon musk. he said great things about china. i would argue one of the most accurate analysts on wall street. he downgraded the stock just before it hit the record high. he's upgraded the stock today. we'll get that on the closing bell. >> i want to hear what he has to say about the use of the word remedy, melissa. an exercise in semantics. over to you guys. "fast money" starts right now. live from the nasdaq market site in new york city's times square. i'm melissa lee. here's tonight's lineup. technology takes center stage. the nasdaq closing at a 13-year high. and google, on the prowl. could the tech giant be looking for more acquisitions? we have the ceo of the company looking to automate your home. and breaking just moments ago, general motors declaring a dividend. should you be bin
different picture. all ten sectors are winning, intel leading the way on the dow jones industrial average, multiple upgrade including jpmorgan, putting a price target of $29 on intel and this is because they think the pc market will hold on. and the technology leading the way but drug stocks, retailers, oil services, a lot of green arrows today. back to you. lori: thank you. dennis: a warning for cash strapped state after three years of research the state budget crisis task force issues a final report that warned state and local government finances remain in the journey of fixes despite tax revenue, peter barnes live from the capital with more on his first on fox business interview with a co-author of that report. peter: new york state lt. governor dick ravage who along with former fed chairman paul volcker have been looking at this issue for the last three years, first financial crisis which ravaged the state and local budgets, collapse in tax revenues as you know her lot of states in cities, they are out with their final report today, their analysis, but also recommendations including local authorities should do multi-year financial planning, they should set up a rainy day reserve funds, better account for borrowed funds in their budgets. and brought this to d.c. to announce because they want to make sure whenever the federal government is doing such as changing medicare or raising eligibility or medicare, the burdens don't get shifted over to the states and local governments, they want to see more transparency and disclosure in state and local government finances. talk to dick ravitch about this moment ago. here is what he said. >> the public interest is best served by having more transparency, states and cities using crude forms of budgeting so that politicians can't kick the can down the road, pretend they balance the budget by d furring writing a check to the next fiscal year. >> they will try to spread the word of the report back to states and local governments as well. get them to the budget authority is, members of the budget committees and the administration for consideration going forward. dennis: thanks very much, peter barnes. lori: a senior fellow at the manhattan institute specializes in public employee unions and economic development. i was speaking with you in the green room and you said to you the most important thing about this report is mention of the suggestion to revisit the tower amendment and i will let you pick and here. why do they bury it? >> i don't know if they bury it. it is extremely controversial but here is the issue. they go through in this report a long list of some of the things they densities' do basically to hide their budget problems things many of us have been criticizing for years and that leads to this idea that in the municipal-bond market, there is no ability of the sec to actually regulate municipal issuers. lori: the way they initiated them. >> the tower amendment says you cannot directly require states and cities that borrow money to do this, this, this the way you require of corporations a what the sec is left with doing is backdoor regulating which is very ineffective. lori: what is the incentive for the sec to regulate municipal-bond issuers because the default level is very low? >> the default level is very mobile we have seen a couple big defaults in recent years and also seen the sec using anti-fraud statutes go after some cities and states for directly misleading people. what is going on is states and cities have been through the procedures they're using misleading taxpayers and if they are issuing the debt potentially misleading investors and basically what paul volcker and dick ravitch are saying is maybe we ought to think about ending that exemption which doesn't allow the sec direct enforcement of municipal-bonds. cheryl: happens to significant bankruptcy and state tax collections are improving so overall things are better but we are not at pre recession levels and why is that. >> it is a slow recovery. the states are all in response to this report saying things like we have surpluses but most are counting surpluses by not counting the debt which is what this report is about. california talking about surplus but their reports are saying we need $4 billion a year more in pensions, they are not putting $4 billion more tax revenue towards pensions. this is the same across the country so only if you exclude the debt which these counting procedures do, leave you do that do we have surpluses around the country? >> that leads to my question about your analysis on the suggestion they make in terms of getting rid of the cash based budget you are referring to in favor of this a girl base budget will that make a difference? >> it is symptomatic of what is going on, it is not modern finance, it is from the nineteenth century. convenient for them because what it specifically does is does not take into account long-term obligations and we know now one of the biggest problems we face which came upon these cities and states rather rapidly is long-term obligations because they have been using a kind of accounting that didn't accurately reflect those obligations. lori: we went to the sarbanes oxley. >> it is of very good word because in the federalist system the federal government can't just say you have to do this to states, they can ask for some transparency but one of the places where they do have some sway is municipal-bonds because this is a big debate but essentially the municipal-bond market is at a market where they are selling things to people. if they are misleading people using the kind of technique they are violating securities fraud regulation and that is a wedge the federal government does have. one mack you are a go to guy on community matters. thanks. don't forget you can follow our coverage of the pension crisis at foxbusiness.com/pen in911. dennis: elsewhere on capitol hill congress reaching a deal on a spending bill, $1 trillion measure for discretionary spending, we will keep the government funded through september at has bipartisan support, some of the provisions include reversing a cost-of-living increase for disabled veterans and providing aid to egypt. the house is set to vote on this legislation on wednesday. time warner cable definitely in play, not just a matter of price and charter can occasions going public with its $47 billion bid for time warner cable after weeks of behind closed doors. the charter, half the size of tw c offers $132.50 per share, barely above warner's closing price yesterday the stocks of 40% since june because they have taken over rumors that time warner cable and new ceo rejecting that offer as quote negroes we inadequate. $160 is a fair price, shares of both companies, rising on the news and if you look at 2013 time warner cable of 40% in the full year, charter of 75%. lori: planning to get inside your home. joline kent joins us with more. >> reporter: google announced it is buying $3.7 billion pending regulatory approval and the deal is already raising questions about how much data google will gather at home. it collects data like your idea address and e-mail address from -- protect its smoke and carbon dioxide detector, their privacy policy put constraints on how the information is used. we use this information to improve the product and services including information and recommendations about energy use but those other keywords you should be watching for. information and recommendations. as it stands this gives google a lot of leeway on what it can potentially gather. currently it only needs customer approval when it shares data with a third party and when do a complete its acquisition will be no longer subject to limitations. matt rogers insisted in a post recently yesterday saying nothing will change. he says our privacy policy limits the use of customer information to provide and improved products and services we always taken privacy seriously and this will not change. an interview with fox business last october, he has ambitions to build more products that will ostensibly also gather more data. >> you could actually expand this, put a camera in, a bird's eye view of in your mobile device. is that coming down the pike? >> there are tons of things we could do over time. still a small company, we wanted to target the smoke, 40 million units a year in the u.s. alone, in the of fullness of time i would love to add more to it but we will stick with what it is today. webmac take a look at google at stock up 1.75% today on the news. lori: thank you. dennis: breaking news, federal judge preliminarily rejected a $755 million settlement for nfl concussion claims saying it may not be enough to cover injured players. the settlement is designed to cover 20,000 men over a period of 65 years but u.s. district judge anita brody said it may not be enough to cover brain injuries diagnosed in the future. shoppers' spending more on clothing in december not much else, final reading on retail for 2013 lackluster. 2014 coming up. lori: jpmorgan see a warning credit card theft and data breaches are not going away, banks and retailers need to ring big sales ther. numbers tough on the street, back at the nyse as the stock goes higher. [ me announcer ] this is the story of the dusty basement at 06 35th street the old dining table at 25th and hoffman. ...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 more. dell is honored to be part of some of the world'great stories. that began much the same w ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ ♪ this magic moment does it end after you've expanded your business? after your company's gone public? and the capit's been invested? or wn your compan's bought another? is it over after you' given back? you never stop achieving. that's y, at barclays, our ambition is to always realize yours. [ male announcer ] wt kind of energy is so abundant, it can help provide the power for all th natural gas. ♪ me than ever before, america's electricity is generated by it. exnmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives here ♪ lori: we are following the latest developments on the target data breach. now congress is getting involved. democratic senators claire mccaskill and jay rockefeller are looking for answers from target's ceo on the hack attack. the move calls for a call for congressional inquiry from democrats in the house. target shares taking the news in stride, barely changing ever so lightly higher on the day. dennis: retail sales had a slight uptick in december with a better than expected 0.2% in november versus the street's call of just .1. the biggest results were revised downward from the previous month. marie discontrol joins us and has expert analysis on latest data. when you see expectations of 0.1% increase and ends upcoming in at 0.i think it is twice than expected. is it really that big after difference. >> it is not that big of a difference. in reality when november's were taken down it is not a big difference. dennis: you're lower egg the gain. autos up, the best since february. >> that is good. retailer was really offering so many bargains it was hard to keep shoppers out of the store. dennis: even though they're selling stuff at lower price that is overall dollar figure did go up and selling extra stuff to bring those -- why is it, food, clothing online sales farewell but electronics retailers, department stores, pet stores, had sales declines? >> people move around their dollar where they get the greatest value. you were getting great values in apparel and accessories. food you're always buying. tough look at calendar effects since the last year. so there is a lot of noise in the numbers but at the end of the day, when the nrf looked at holiday sales for november and december they came in just .1 of a point shorter than their expectations. they came in at 3.% gain instead of 3.9. dennis: right. i want to ask you. heading into the holidays i saw a lot of crepe hanging and forecasting it would be a very down christmas but 3.8% is actually darn good, isn't it? >> certainly is better than we thought going into the holiday. dennis: yeah. >> and again, the retailers i think were very nervous, holding inventory and really marked things down. i don't think their earnings are necessarily going to be great but they made their sales numbers. dennis: yes. >> look at what has happened in the last few weeks. we've had negative reports on january and after christmas. dennis: right. some of that could be, we were so spent from all that christmas spending. >> right. dennis: what do you think could be done to further boost retail sales in the economy? i know consumer spending is like 70% of the economy. >> right. so i've been spending the last few days at the nrf, it is their 103rd annual conference and what we're hearing basically retailers are in the commodity business and the only way to differentiate is have better service and unique and curated products. so if you have something nobody else has, then you can hold your price. if everybody is selling what you're selling you're competing with amazon and walmart. dennis: treat me well and give me a glass of champagne when i buy an expensive suit and maybe i get off the sofa and amazon.com? >> there you go. dennis: thanks, marie driscoll. lori: have you done that? dennis: which? lori: taken advantage of champagne. dennis: yes, i have. saks fifth avenue. lori: planes, ttains, automobiles, some of those are on the move. nicole petallides is on the floor of the new york stock exchange covering all the action for us. >> that's right, two names that are worth watching here, transports by the way are doing great today too. first we're looking at boeing. boeing has had a tough day. we saw a intraday drop, a significant chart. that is a great chart that really shows you, that's a two-day chart and shows you how mid-morning at one point it fell off, right? we were at 140.70 at highest point on boeing. it fell three bucks at japan tokyo's airport there was issue with smoke coming from a battery. they have been working on that. the incident seems to be under wraps and being fixed and the like but obviously enough to put them under pressure. then you have tesla motors which now is moving higher. it is up about 14 bucks. there is no recall. in fact there is good news. global sales and services are set to double in 2014. so good news for tesla up 10%. back to you. lori: nicole, thank you so much. dennis: and broken silence. lead underwriter goldman sachs's upgrade of twitter calling into question analyst conflicts although you see that a lot. our charlie gasparino will be here with exclusive new details. lori: check this out. nike prepping for the super bowl with a brand new cleat for athletes but part of this shoe is made by 3-d printers. 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both of us! call 1 800 350 3292 right now for your risk free 30 day trial and experience hearing with zero daily hassle for yourself. lyric is effortless. it gives me complete freedom. once they're placed in my ear, i never think about my hearing loss again. showering is not a problem. traveling is not a problem. thethey're 24/7,ree, there's no maintenance, there's nothing to d there's just absolutely no reason not to try it. 100% invisible hearing is wonderful. finding one that works 24/7 with no daily hassle is just too good to pass up. so call now and ask about your risk free 30 day trial. get a lyric in your life. >> at 23 minutes past the hour i'm arthel neville with your fox news minute a scary situation at a school in new mexico. police confirming to fox news three people have been injured in a shooting at a middle school in roswell. no word if the injured are students. the incident occurred around 8:00 a.m. new mexico time. excuse me. officials say the suspect is in custody. france's president says he is going through quote, painful moments in his -- something in my throat. i might have to toss it back to you guys. pardon me. lori: yeah, arthel, hang in there. feel better. arthel neville for us once again. breaking news. dallas fed president richard fisher speaking now he is glad the fed tapered but first that, first cut should have actually been larger. he also says he would be comfortable with a market correction which need not derail an economic recovery. fisher will be a voting member this year on the fomc. so we a lot of a little on the dow, not so much. dennis: thanks for that. time to make a little money. charles payne looking at one of the major players in the cybersecurity business. >> i want to digress a little bit. i like what he just said. dennis: yeah. >> i love what he just said. dennis: that is correction -- >> corrections, the idea that the market is supposed to go straight up and never correct, i love it! it has been two years without a correction. dennis: but when a fed guy says that it makes traders so jittery because he said? lori: too little, too late, some might argue we saw consolidation in last few trading sessions. >> correction, 10% or better. over 800 days since we had that i think it is great he is conditioning the market. one day you have a hissy fit, and then it is fine. palo alto networks, big story of 2014 so far. these guys are a great player in this space. last time they reported, revenues up 49% for a record. recurring subscriptions up 79%. that was a record. they added 1,000 new customers. this is what i love that you guys know it, making market share gains, taking market share in the hottest space, enterprise software. differed revenues were up 74%. that's a record. they have 74 million in cash. huge for a company this young. their margins are expanding like crazy. only thing anyone can argue with these guys through traditional valuation metrics it is expensive. it has 80 pe that kind of thing. i say you know what? forget about it. when it makes it through 61 on closing basis hich is a to believe top i think it wit be absolutely off to the races. dennis: what is their market cap? i wonder why cisco hasn't tried to buy them. >> cisco in the space. glad you bought it up. i would like to buy these guys absolutely. dennis: thanks so much, charles. lori: tomorrow's business today, nike teamed up with olympic gold medalist michael johnson to have a new football cleat made with printed 3-d parts. it is designed to reduce amount of slipping before a runner begins sprinting this such date to nike's first 3-d cleat during the 2013 nfl combine. the new cleat will maybe its debut at super bowl xlviii on february 7th. dennis: like my keds will make me run faster. stocks back in the green one day after suffering their biggest decline in months and we can thank for the gains to come. still to come, matt mccormick and jpmorgan and wells fargo better-than-expected results. >> paradise found but capitalists only need apply. the effort to turn a tiny island off detroit into a free market utopia. ♪ [ male announcer ] e new new york is open. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax ee zones all across the state. move here, expa here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start tax-free business at startup-ny.com. who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. lori: got it? dennis: green day on wall street. stocks, not the rock band. let's head to the floor of the new york stock exchange and our own star nicole petallides. we're at highs of the day. >> we are indeed but still holding on to good gains. up about 80 points at 16,337. we showed headlines from fed head fisher. we're watching that. he continues to believe in tapering regardless whether or not the market pulse back or not. we're taking you over here to jpmorgan to take a look. we'll watch jpmorgan and wells fargo. here is jpmorgan at 57.80. it is up about.of 1%. fourth quarter earnings dropped 7.3%. we're keeping eye on wells fargo, u.s. mortgage lender, the largest of the bunch. we saw with wells fargo, they posted better than expected 10% rise in net income. we've sign both of these stocks between negative and positive territory. banking index is holding on to a gain today. back to you. dennis: thanks very much, nicole. lori: let's pick up with more on big bank earnings. for that we bring in matt mccormick, principle and portfolio manager to weigh in. matt, always great to see you. start with your take on jpmorgan. the fourth quarter print beat wall street estimates but overall down 7.3% from year ago quarter. the big problem of course, the headline risk associated with billions and billions of dollars in legal settlements although ceo jamie dimon suggest that is the worst is behind them now. do you agree with him and hey can move past isn't. >> i hope so, lori. they seemingly get fined every week. once that potential negative is removed from them i think it is very positive for them and shareholders and particularly jamie dimon. i think my takeaway from jpmorgan's release it, was very noisy quarter. a lot of moving parts and one-time charges, my big takeaway was 1.2 billion in loan-loss reserves, roughly 21 cents they had to do to essentially beat. i think that ising hat will be a challenge from them going forward. the other takeaway which is a similar situation with wells fargo, was the weakness in the mortgage area, roughly, down 42% quarter over quarter and a weak outlook. they also had weakness in the trading particularly fixed income and equities. they have positive investment banking. i think people were, they like the beat. think that is why the stock is up but i still think there are lingering concerns about their outlook. lori: so the weak link if you will, sort of the common thread is weakness in the mortgage business. with jpmorgan you also have fixed income capital market weakness as well. what strategy with the mix of business do you want to see going forward? let's start with jpmorgan and tell me about wells fargo because it's a different business setup. >> sure, sure. they have to focus on expenses. they have to focus on, less legal expenses. that is something obviously clearly something that is to a certain extent self-inflicted. i think they have to look at ways to cut costs and deal with rising interest rate environment. i would continue to focus on investment banking. that's a strength. i would try to build up fixed income and equity trading. that sound easy to do but they have to work on it. they have to basically block and tackle. the big elephant in the room is rising interest rates and mortgages which will be a substantial headwind to the stock. lori: because of all this you say you're still neutral on shares of jpmorgan, though jamie dimon continues to be a positive. tell me more about your outlook for the banking stocks. >> you know, i think when you look at banking stocks as a whole, in looking at the money center banks like jpmorgan, they have had a huge run, lori. jpmorgan is up 150% since january of 2012. the s&p is up only 53%. i think there's potential for a pullback in these names as people realize that the mortgage market will be very, very difficult. but however, i would take another strong look at them if there's a pullback and give it a fresh take. lori: the banking complex we showed viewers up across the board, a lot of green arrows. is this a good tone to set, is it correct tone to set for financials to report here. >> they're similar, in the same zip code but much more different, lori. when you look at bac, bank of america, they had a really strong wealth management couple quarters the last time. i think that could be a positive. i get more concerned about the mortgage exposure. wells fargo had a very difficult situation. i like some of the areas where people can have a combo. i think banks as a whole are okay. i would look more at regional banks. wells fargo, same issue. they had roughly 37% climb in mortgages. the worst mortgage outlook since fourth quarter 2008, lori. that is something that is ominous, especially when you think they are a mortgage machine. lori: yeah, that is bread and butter for wells fargo, right? >> that's right. they are a mortgage machine. that's right. okay. lori: i'm sorry, to be short with you, matt. thanks so much. you're always such a great sport and great info for us. matt mack come max. dennis: -- mack come mack. dennis: this is being billed the greatest car auction the barrett jackson auction starts today in scottsdale, arizona. some of the world's most rarest and exotic cars going up for bid. a limited edition 1967 corvette. adam shapiro is on the scene with exclusive interview with barrett jackson ceo craig jackson on fox biz. tune in 9:00 p.m. eastern for a special coverage of that auction including a wrap up of today's sales. lori: it tends to raise eyebrows when it comes from an analyst at very same firm that was the stock's lead underwriter. charlie gasparino is here with exclusive details on goldman sachs's upgrade of twitter. dennis: netflix flesh off its first golden globe win moving on from "house of cards" and pinning its hopes on this guy. marco. lori: polo. dennis: details next. ♪ welcome back. how is everything? 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[ male announcer ] and we do. it's how edward jones makes sense of investing. ♪ >> good afternoon, everyone, i'm sandra smith with your fox business brief. shares of netflix falling sharply, then rebounding after a federal appeals court struck down the fcc's net neutrality rules. it means broadband providers can raise fees for content providers like netflix for faster internet speeds. challenger, gray & christmas reporting retail hiring grew to a better than expected 801,000 jobs but cautioned that struggling retailers may not just let seasonal workers go but also some permanent full-time workers. small business sentiment rose slightly last month. the national federation of independent business optimism index increased to 93.9 in december, up from november's 92.5 reading. business owners expect increased sales ahead. that is the latest from fox business network, giving you the power to prosper. lori: goldman sachs sent shares of twitter soaring yesterday when it lifted its price target more than 40% to $65 a share but should investors be a little skeptical by the move from the big investment bank. here is charlie gasparino. >> i'm not saying there is any illegal about this but when you see the lead underwriter on ipo lifting shares, particularly now when everybody is negative on the stock i think you have to say wait a minute here. goldman has no comment. we ran this buy them. in 2003 there was huge research settlement. firms had to divide research from investment banks. a lot of firms have done it. the question is has goldman done it. they won't answer this. of all the top comanagers, jpmorgan, morgan stanley, goldman sachs, goldman sachs is the only, the only firm to have a buy rating on this, not only buy rating, they blow away everybody else in terms of their price target at $65 a share. they rose their price target yesterday at 40%. would say this to investors this is controversial stock now, twitter. a lot of people think it is right for a fall. can tell you my producer julie did a pretty interesting story, can't wake for the lockup period when shares go outstanding to start shorting things and borrow the shares and actually short it. this is something i think, when you goldman sachs does something like this, yes it is a great firm. it is also a firm been known to play these games in the past. investors have to worry. they have to look at this rating as one of the more conflicted ratings in the business, meaning they got paid $26 million in ipo fees and they got the most money and now when twitter needs it the most, there has been selling pressure, they came out with a hail mary pass and it actually did work a little bit. the shares went up i think something like 4%. they settled back down. i tell you, investor out there, be wary, this is among the most conflicted stock ratings. shows, sec rules promulgated in 2003 by the securities & exchange commission and eliot spitzer when he was a new york attorney general, they were supposed to erect all the barriers they are not working if you can get away with this. lori: look at the fundamentals of this stock. goldman sachs pays analysts hefty bucks, right to actually make educated calls on the behalf of stock prices. i'm defending goldman sachs a little bit. 65 from 58. that is 40% upgrade. >> that is pretty big, when you think, listen, one of the things, if you noticed facebook, follow facebook's history. facebook is doing fairly well. the investors were inittally skeptical. it had to prove itself, that it could make money on mobile applications right? it did that. the it proved itself. twitter is money losing company. facebook is not a money-losing company. they have to prove themselves. i think general consensus on the street is that, they haven't yet proved themselves. now, you know goldman came out and said something totally different. they believe this is, the stock's going to run up. we should point out, just from a fundamental standpoint if the lockups end in may -- lori: that will be telling. >> that is 400 million shares on the market. i mean, you know, you got to think it will go down a little bit from that. i will tell you something else, goldman sachs yesterday as they upgraded their ipo client, this was fiercely fought out between them and morgan stanley, they won, as they upgraded their ipo client and basically said it is $65 price target they came out and called for a 10% correction in the rest of the market. i would say this investors. i can't predict future. i don't tell people to buy stock but i can tell you this call smells to no end. i can't tell you if they violated spitzer rules. they're easy to violate but this call smells. this is conflict of interest written all over it. lori: social media stocks are all the rage right now. blown up valuations across the board. whether you're profitable or not. >> what does that mean? means it could go down. lori: well, or, could be a lot of fuel under the fire of social section, darlings of wall street, glamour stocks. choose your phrase. but who will know when the bubble bursts if it does at all? >> i was interviewed at a person, publication when i was working at "wall street journal" and i used to write all these negative stories about these stocks, you know what, we don't like negative stories because you know what? investors want positive stuff. they want business to be aspirational. they want finance to be aspirational. they want to believe they can make a lot of money in the stock market. which you can make some money. but you know, the day of reckoning always comes, as much as you want to put lipstick on the pig, it comes. and i'll tell you -- lori: look at gap-ups. pandora. >> you want to buy into that? lori: well, that is personal question, sir. charlie gasparino. always a fun discussion. >> by the way that statement was made to me before the market blew up. just before. lori: our journeyman reporter, charlie gasparino. dennis: time for stocks now. the dow moments ago just up over 100 points. settled back down to 91 because they knew we were about to say that. mark newton, gray wolf execution partners on floor of the new york stock exchange. mark, will we get back to the january effect. >> that is interesting, dennis. take it back to tuesday, alive and well. the market regained almost all of yesterday's losses. the nasdaq is set to record new closing highs for the year. not only nasdaq comps it but ndx they are right back near the highs. dow is not able to get back. one thing to point out, treasury yields seem to have very positive correlation with the s&p and as well as the euro yen cross. those are couple things to watch for investors going forward. over the last few years they have had above .04 correlation. we sold off last two weeks and started to stabilize and bounce. dennis: all right. >> technology is showing increasing signs of strengths. we moved to new high es veries is s&p. semiconductor stocks are behind that. this is big move in the sector, one of the biggest moves in the s&p. dennis: thank you. mark. fearless prediction time. the dow is now at 16,350. can we hit 11,000 without a correction or do we go down 10% correction before we climb to 17 and over? >> still pays to be bullish on the market. it is tough. you can't make anything out of one-day move. would be different on a weekly basis. we're still critical levels intraday. if we hold and move above 16,004 a 50 my thinking we get back to new highs -- 16,450. dennis: liking that. thanks, mark newton. >> thanks. lori: i thought he would punt on your question but he went there, good work. netflix, famed explorer marco polo announcing that the tale of exploration and clashing empires will premier exclusively for netflix members this year. developed by premium channel starz, it will be moved to the instant streaming service avnet flicks was able to achieve large success for the political thriller house of cards and female prisoner story, "orange is the new black." dennis: they will have to update marco's look. he needs to look more like a handsome guy than that bearded guy. "house of cards" and west wink and i think they're rippin "game of thrones" and doing a period piece and sex it up. lori: "game of thrones" is spilling over with violence and sex. dennis: marco polo might have been a lot racier than we think. a plan to save detroit. lori: the former chair of michigan's claim before commerce brings up a plan to turn the state's belle isle into a capitalist utopia. ♪ so ally bank really has no hidden fees on savings accounts? that's right, no hidd fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally. is your tv powered by coal? natural gas? nuclear? or renewables like solar... and wind? let's find out. this is where america's electricity comes from. a diversity of energy sources helps ensure the electricity we need is reliable. take the energy quiz. energy lives here. lori: could a thousand acre island off of detroit be the new hong kong? our next guest says it could be even better and he has a plan. dennis: rodney lockwood, principal at lockwood development has radical proposal to create a capitalist paradise in the motor city. good to have a story about building detroit instead of trying to wreck it or fix it. how much of your approach requires an actual island? how special is it because of island? could you do this in any 10-block neighborhood. >> the island advantage there is we can, we can put it, say, secure state where people can be attracted from all over the world to come with their entrepreneurial ideas and their capital but the idea for detroit has really gotten beyond the island now and we have several other iterations and have a plan for the entire city of detroit. lori: right. when we spoke to you about a year or so ago, rodney, you were basically pitching this plan to buy belle isle for one billion dollars. pj o'rourke put out a piece in the "wall street journal", saying detroit should follow the model of hong kong. that's ambitious. what do you think? >> well, the pga contacted me a month ago or in december, heard about the belle isle book. came into town. we spent an entire day touring with my bar owner friend larry and toured pj around the detroit, the good, the bad, the ugly. after we got done, pj said, you know, we need to use the hong kong model to fix detroit. pj apparently lived in hong kong for a while, very familiar with it. something i didn't know, back in 1949 hong kong was a slum, disaster. since that point in time has become the number one free economy in the world. dennis: now, how much money have you raised so far for this bold idea and how much will you need and how hard has it been because of detroit's troubles? >> well the, the money raised is in the process right now and i'm not, i'm not free to share with you the specifics of that. the, the concept that is we've expanded for detroit is to, for detroit to contribute its own assets into a public/private partnership. we will compliment that with an ipo to raise additional fresh capital, and through this capital infusion and contribution of assets, come up with a new governance structure for the city whereby, resembles hong kong and its governance structure and value of detroit-owned assets will greatly increase. the idea we want to come up with a plan to pay off creditors of detroit in the bankruptcy 100 cents to the dollar over time, rather than taking a haircut right now at 15 cents on the dollar. lori: that is absolute, some have called it pie-in-the-sky goal. why do you think it is realistic? >> well it is realistic because, it's actually been tried before as far as, as far as turning cities around. of the north of here in the city of pontiac used to have 500 employees and it was bankrupt. emergency manager is now reduced its operating budget down to half of what it was before and using only 20 employees. what we need to do is to have an efficient, efficient limited response of government in detroit combined with the contribution of assets will cause the whole value of the enterprise to increase fantastically, over as perhaps, 10 to 20 year period. lori: rod lockwood we'll check in with you a couple of months to see how the plans are coming along. thank you for now. >> thank you. dennis: borrowing from gary owens of laugh-in. i love that story. great stuff. hope of capitalism to fix something. google wants to eavesdrop on your energy usage buying energy maker nest having more personal date from you. do you have more to fear from google than you do the nsa? your tweets and our guests as tracy byrnes and ashley webster take you through the next hour es greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor out pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people wi artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa bere surgery or a medical or dental procedure. adaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a art valve replaced. seek immediate medical care for unexlike unusual bruising.ng, pradaxa may increase your bleeding risk if you're 75r older, have a bleeding conditione or stomach ulcer,k take aspirin, nsaids, or blood thinners. ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ thisagic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪ ashley: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. dow up 85 points after its biggest drop in two months. our all-star panel is here ahead how to keep your 401(k) and your portfolio safe on this roller coaster ride of a market. ashley: google buying smart furnace maker nest. people wonder if you have more to fear from google than the nsa? your tweets and our expert guest in moments. >> in our tech minute, why apple shareholders are saying thank you to a chinese company for its big ol' stock jump today. ashley: why netflix shareholders are saying no thanks after a federal court ruling on net neutrality. tracy: how cool is this? the world's greatest car auction is live tonight, right here on the fox business network. so cool. adam shapiro, even cooler, coming up live in moments from the barrett jackson auto action. that and much more ahead on this speedy driving hour of "markets now." ashley: adam shapiro in hog heaven there among all the cars. we'll be hearing from him. tracy: i know. ashley: first top of the hour, time for these stocks. let's go straight to nicole petallides down at nyse. looks like we have retail to thank for getting us back in the green today. >> absolutely. what is interesting you got good retail sales numbers. that helped things along. the dow jones industrials up 87 points, erasing some of yesterday's losses where we were down nearly 180 points. reading through a jpmorgan mid-day note today. it is interesting. basically said for the same real non-reason we're rallying today versus the same sort of non-reason we sold off yesterday. sort of in this wait and see mode we're getting a lot of earnings but retail sales numbers helped things along. you have names like intel and microsoft leading way on dow jones industrials. nasdaq composite is is up 1 1/2% today. that is something we're watching today as well. for the year 2014 we're still negative for the moment. traders take pullbacks right in stride. they don't think it should be a big deal. on the contrary they know we have run up so far so fast. a lot of social media stocks are up, from yelp, facebook, and the like. back to you. tracy: thank you, nicole. see you in 15 minutes. a kickoff of bank earnings season, we bring you an all-star panel. marti mosby, guggenheim securities analyst and here in the fox business headquarters our very own charles payne and lizzie mack. marti, you have buy ratings on jpmorgan and wells fargo. jpmorgan is the biggest punching bag of them all. you say hopefully it is done and they're off to a good year. >> we're looking at core profitability generating a 15% return on tangible common he can quilt. with the overhang issues, you've seen the overall valuation be pressured. so they're not reflecting the profitability that they're already creating in the core business. they have generated the settlements. so we have those losses, we incurred all that noise. we say the majority of those issues are behind the company. as they look forward we'll see more core profitability, less focus on those issues as that happens, we should see some of that premium comb back into the stock price which we've already seen as a lot of these settlements have been resolved recently. ashley: charles, let me bring you in this on this. jpmorgan, jamie dimon is saying revenue growth will definitely take a hit as we go through the process of basically derisking our operation. i'm not not sure it is clear all the legal issues are behind them. there are still some major issues hanging over them. what do you say? >> there are still some major issues although think we separate that from the revenues. the derisking part i want to talk about. on their release they talked about their fortress balance sheet. this is more up emac's alley but i don't know what is on the balance sheet a ruling in 2009 reversed fortunes of banks almost went back to the make believe thing. other than that my issue on this why do we continue to bail these banks out? when they print these kind of numbers on quarterly basis why do they get so much help from the federal reserve? why when the you know what hits the fan they come first and main street comes second? tracy: i feel like forever you don't know the skeletons in the closet on these balance sheets. >> that's true. charles make as good point, jpmorgan's balance sheet is about the size of france, 2.3 trillion, tangible common equity, that is the fortress part, 149 billion. whatever. you make a good point and charles makes a good point it is really action of interest rates is kryptonite for markets especially hitting deposit model of wells fargo. you have to pay out money in deposits versus what they earn in lending. so the question is, whole stop the market, when will the fed get off story is really important for these guys as they face net margin pressure. in other words their net interest margins come down because of razor thin interest rate. that is the question. when will the rates start to go up? credit growth is not excessive according to goldman sachs. ashley: marty, let's bring you in on wells fargo if we can. this bank is tightly meshed in the mortgage business but there is more to it than than. core business was generally okay, expenses under control. of course the mortgage business is huge but overall they had record earnings in 2012, 2013. what do you think about wells fargo this year? >> well what we're seeing is the consistent growth that they have been able to report, continues to push forward. this is the 16th consecutive sequential growth in quarterly earnings. what we're looking for is for that to continue. as we did see some compression in net interest margin. you really need to dissect that into two buckets. one piece is that you had such extraordinary deposit growth that was parked on balance sheets at low interest rates on asset side. that had no impact on net interest income which increased about 1% this quarter. so income continuing to grow. margins is a metric reflective of interest rates. but growth they're creating in balance sleet and steepening of yield curve is beginning to show some progress there. tracy: lizzie, talk big picture on financials because for a while how go the financials how go the market. >> yeah. tracy: are we finally starting to see they will turn around and increase in interest rates will do them all some good? >> yeah i think that's the point. what we're seeing essentially, charles and i have been talking about this, the question is are we in a air pocket in the markets right now with the financials recovering because of the bailouts, or is it that really an interest rate story where they can't make money because interest rates are so historically low. net interest margin is trending 3.2% sincehe question is, are wn air pocket in the markets right now? when will the actions by the fed weigh palpably by markets? will the food do a deeper taper? have we already rung the bell at the top? charles can answer that, are we in a sweet zone right now that will turn negative? >> i don't know about that but i will tell you something. we've got more evidence that too big to fail got too bigger to fail. ashley: no kidding. >> jpmorgan, credit card volume was up 11% for the year. but for the united states, revolving credit was only up 1.3% through november. so the big boys, you know, you had about 400 banks between 2009 and 2012 went out of business. they have consolidated some. they continue to take the lion's share. when times are good, these will be amazing plays but when times are bad, do we all get a chance to share in the pain? ashley: you want well-capitalized banks, it is good for economy, right? >> yeah. ashley: in theory they loan to small businesses. >> in theory, in theory. ashley: when is that happening? >> it is not happening yet. and -- >> that's why you don't see inflation. because reserves are parked in the fed. >> inflation ironically enough is bad word although in beginning a good word for everyone. we feel better when the house is worth more and account is worth more. >> economic activity. tracy: let marty jump in on this. what is your thought on all this? look, qe infinity, so not infinity anymore but still for a really long time. you will still get all the money ending up in the coffers of the big banks. what happens? >> well, what we're seeing is that the velocity of money is down for a lot of reasons. you have the demand issue as well as supply issues. it is on both side of the equation. we need economic growth to pick up which we're starting to see. loan growth at wells fargo was at a, if you look at a core amount, almost 10% sequentially at annualized basis. we're seeing money get put to work. banks would like to see rates go higher. as you're mentioning, waiting on short-term rates to recreate value of those deposits. but steepening of yield curve starts to help. we're seeing benefits of that. that should generate some economic interest in getting some of these low-cost loans before rates start to go up. tracy: yeah. we'll see. marty mosby, elizabeth macdonald, charles payne we have to do it again. ashley: so quickly we have so much to talk about. google or the nsa, who do you worry about? google bying smart thermostat maker nest and more of your personal data along with it. do you have more to fear from them than the nsa? tweet us. tracy: nfib chief economist bill dunkelberg says there are still holes in the numbers. he is coming up to explain. ashley: plus this will be cool or bold. in tech minute, super bowl first, a gizmo to show how coldplayers are when they face off at metlife stadium. that should be interesting. tracy: we need to find something better to do with his life. as we do this time of day look how oil is trading, up slightly. $92.40 a barrel. the dow is up 48 points. don't go anywhere. ashley: state and local government finances still in need of some major fixes. peter barnes live from capitol hill with a first on fox business interview. peter? >> well, hey, ashley, that's right. the state budget crisis task force led by former fed chairman paul volcker and the former lieutenant governor of new york state, dick ravitch, has been studying budgeting by state and local governments for the past three years post-the financial crisis which checked state and local budgets because of a decline in tax revenue, it is out today with its final report and a bun much of recommendations which are timely given the bankruptcies last year of detroit and san bernardino, california, and stockton, california, and recent financial troubles of puerto rico. some are due in part due to huge pension and health care benefits promised to public service employees and now these problems continue for state and local governments despite the improving economy, improving tax revenues and improving stock market, win has helped a lot of pension obligations. some of the task force's recommendations including multiyear financial plans for state and local governments, mandatory rainy day reserve funds for them, better contract accounting for borrowed funds and better cooperation and coordination between washington and state and local governments in setting federal and tax policy. >> total disconnect between the happens in state and local governments. every time that congress changes the tax law, reducing the value of tax exemption and municipal bonds, it costs states and cities more money. >> the task force also recommended stronger oversight and regulation of the muni bond market by the securities & exchange commission. ashley and tracy back to you. ashley: interesting stuff. peter barnes, thank you so much. >> you bet. tracy: all right, it is almost quarter past. we have to get a check on the markets. nicole petallides on floor of the new york stock exchange. watching gamestop. are they still buying videogames out there. >> that is part of the problem, tracy. we're watching gamestop to the downside. they did well with hardware and microsoft xbox 1 and playstation 4, the hardware doubled year-ovee-year. that is good news. it games for prior consoles and as well as stiff competition from mobile games which are actually cheaper. so that doesn't bode well for gamestop. it is down, i was going to say 18%. you know what? selling accelerated in last couple hours for gamestop. down almost 20% at the moment. the low today was 36.20. we're not too far off. however, however, this stock over the last 52 weeks is up nearly one%. it has had a great run. that being said you have several analysts cutting price target can. suntrust left their buy rating and put it at 60 bucks. credit suisse cut the target to $46 from 50. they have a neutral rating. back to you. tracy: thank you, nicole. they're reliant on games that come in, if there is no new hardware there is nothing to sell. talk about stormy skies, the weather -- directv pulls the weather channel from its lineup over subscriber fees. who will blink first? ashley: coolest cars we have ever seen and can be yours for a hefty price. adam shapiro is live from the barrett jackson auto action next. we'll be right back. >> 19 minutes past the hour i'm arthel neville with your fox news minute. the house approving its continuing resolution, averting another government shutdown. the stopgap bill keeps the government open through saturday. the measure is needed because congress failed to pass a 2014 budget bill by september 30th. an existing continuing resolution keeping the government operating expires on wednesday. egypt holding a key vote today on a new constitution. it is the first time egyptian voters have taken to the polls since the ousting of former president mohammed morsi this past summer. this as violence continues to erupt throughout the country. the egyptian army deploying some 160,000 troops to secure polling stations. a possible breakthrough in the madeleine mccann case. the little girl vanished in 2007 while on a family vacation in portugal. police are headed there to reportedly arrest three suspected burglars accused of robbing the resort war madelyn was last seen. those are the headlines. get you back to tracy. tracy: arthel neville, glad you're feeling better. >> i will get a hot toddy now. tracy: all good. we've been talking about this, the barrett jackson auto show underway in scottsdale, arizona, and with over one thousand cars up for auction the show is the largest yet. our very own adam shapiro is at the auction and speaking exclusively with the chairman and ceo, craig jackson. hey, adam. >> hey, tracy. how would you like to drive a 1955 mercedes sl, they sold one last year for $2 million that belonged to clark gable. it is used by the way. how about a 2008 bugatti? the person who makes all of this possible, ceo of barrett jackson, craig jackson. he is off to it now, memorabilia are coming up. these cars in particular will fetch over a million dollars. >> they will. this whole row, salon collection, multimillion-dollar cars go across on saturday. we start off with entry level cars because that is the safest place to get into collar collecting and understand what you want and also what you can afford to sort of learn about car collecting. >> we talked about that when you and i talked in the past when you get into the hobby. people look at it as an investment. barrett-jackson mini index which is blue chip index of all kinds of cars, camaros, ferraris, shows the return is better over long term than the s&p 500. what advice do you have for people that want to get in on this. >> buy the best car that you can. buy a well-documented car. buy a car that is very popular. we have a saying rare for a reason. because some cars are rare, when it was new.idn't want it a lot of cars are rare like the veron. limited production. you see right now, even with like ford gts. there were 165,000. paid 169 for mine. they're up to $400,000. so there is even newer cars that are collector cars. but getting into car collecting is about doing your homework, just like if you get into the stock market. do your homework but buy what you love. do it for the right reasons. do it because you want ad collector car and buy a car. we have a team of experts here and we vet the cars out. they're here. they will answer your questions. and help you get into car collecting safely. >> you've go 1430 plus cars on the auction block this year. you had 300,000 plus people last year. you will probably have over 325,000 this years. it keeps growing and growing. what is behind the momentum of this industry? >> well, people, america and the world, it's a love affair with collector cars. barrett jackson started this whole industry back in the early '70s. back then we were selling really prewar classics. but car collecting has gotten so much broader. muscle cars and hot rods were new back then. now they're collector cars. collector cars keep getting broader and broader and more worldwide. we sold cars last year to russia, the middle east. a lot of cars to europe. so it's a worldwide demand for cars nowadays. >> something else that barrett-jackson pioneered was no reserve auction guaranteeing cars would actually sell and move. with these really seven-figure cars you have reserves. >> yes. >> why have you gone in that direction, especially with the beautiful cars we're looking at right now? >> it is a bit of a safety net. the reserves are what we consider a safe reserve. the misnomer is that we'll take a car, no reserve. we h meeting of the mind with the owner. same with the reserve. but when you're dealing with multiple millions of dollars and one-off cars, some people don't want to risk it. we have to offer both but we truly believe in no reserve. people fly to come and buy a car. they want to know it is for sale. >> craig jackson. as we wrap up here and come back i will give you another shot of this 2008 bugatti. this belonged to simon cowell. we have celebrity cars. >> still belongs to him. >> hopefully will belong to somebody else that has seven figures to spend. tracy, this car, the tune of up is about $20,000. the tires on the car, 40,000 bucks. how would you like to cross the george washington bridge with that every day? back to you. >> that is a year of college, adam. that is only thing i have for that. holy toledo. >> 40 grand for the tires. tracy: holy toledo. >> he wants you to know the tires are brand new. tracy: who needs college. adam shapiro, thank you very much. you can catch full coverkochrage of the barrett-jackson auction tonight on fox business, 9:00 p.m. eastern. that is pretty cool. ashley: of course simon cowell could afford the tires. tomorrow's business today, we're talking about the business of weather, it is heating up you could say. the directv pulled the weather channel from its service claiming overrun with reality television programing and not exactly a good resource for actual weather news but the issue, really boils down to subscription fees. comcast-owned weather channel urged viewers to demand directv bring the channel back. directv says they are working on an agreement to do just that. shares of directv and comcast, both of those are up over 30% in just the last year. and both moving higher today. stormy weather. i like that. tracy: good. heating up. ashley: coming up in the next half hour of "markets now," also heating up here. google buying home tech company nest and that is raising questions about your privacy. do you have more to fear from google than you do from government snoops? your tweets and our expert guests next. tracy: small business owners are feeling little better about the economy. why isn't ffib economist bill dunkelberg not happy? we'll talk about that when he joins us coming out. ashley: charter putting out a bid or time warner cable. dennis kneale is with us to tell you why others might get in before the fat lady sings. tracy: we'll look at some losers on the s&p 500. charles payne on "varney" this morning talking about how this could still keep going. the dow is up 88 points. don't go anywhere. [ me announcer ] this is the story of the dusty basement at 06 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall f roblevenue. ♪ this magic momt it is the story of where every great idea begins. and of those o believed they had the power to do more. dell is honored to be part of some of the world'great stories. that began much the same w ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ [ telephone rings ] [ irley ] edwa jones. this is shirley eaking. how may i help you? oh hey, neill, how areou? how was the trip? [ male announcer ] with nearly 7 million investors... [ shirle] he's right he. hold on one sec. [ malennouncer ] ...you'd expect us to have [ shirle] he's right he. a highlykilled call center. kevin, neill holley's on line one. ok, great. [ male announcer ] and we do. it's how edward jones makes sense of investing. ♪ where does the united states get most of its energy? is it africa? the middle east? anada? or the u.s.? the answer is... the u.s. ♪ st of america's energy comes from right here at home. take the energy quiz. energy lives here. there's nothing like being your own boss! and d my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ]aise? introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. tracy: 90 minutes till the clothes. take a look get your dow 30. we more green and red. a few losers today. my son has not purchased sneakers yet this week. billing and the other hand, down, and the red after maintenance workers discovered smoke. now, thankfully their realize that no passengers were on board double -- boeing has said is aware of the incident but has not said what might have caused it. nicole petallides on the floor of the new york stock exchange looking and a bunch of other stuff. >> reporter: we talk about technologies doing very well. intel leads the way. has been a winner on the dow jones industrial average. sigell of 2654. several analysts with positive comments. the market to my 92 points. dow has been moving higher. fifty-two weeks, up about 16%. one of the reasons why j.p. morgan raised their rating on intel and actually put at $29 price target on the company to mold of the reasons they did that is it because they think that the pc will outperform. considering everyone has been so worried, they feel a little more positive in 2014, and this is why they decided to raise intel and give it a higher price started about 45%. a winner on the dow jones industrial average. as they noted, many of that tax sectors. ashley: makes you very much. foxbusiness.com by a nest. the question is, do you have more to fear from google and the nsa. joining s with his take, probably. as always. thank you for joining us. i guess before we get into the privacy issue, is this a purchase that makes sense? is it that much of a surprise? >> google likes to go into areas that can capture an affirmation. that is the area therein. is not a real supply -- surprise there were one area they had trouble penetrating is in home. the traditional video staff for the mapping service and so they did not give it the way it's taught. to there will be able to capture the data. ashley: this company google venture capital had money in this, is so it's not that much of a surprise. what about apple. would it make sense for them to come in and bid on this. nest is the brainchild of one of the former executives, one of those people. so would it make sense for apple to get in this space? >> the problem would be retaining people, to a large extent have left apple. and then when you buy a company that contains a lot of the key staff that have left you to get to the other company, well, they kind of bill with their feet as to whether it vote -- whether they wanted to work. hard to hold. they already share the did not want to stay. it is not clear they would have gotten the value. cool will retain the value in the design staff. they're looking to get access to the home. they don't need to retain the design staff to inaccessible. it will slow down their advancement. ashley: not just about thermostats and smoke alarms. where are the applications going the you think? >> probably more in the security. that is one of the areas. that will provide them with the most jaded that they need to really profile of family, a profile that has been, a wife, the kids, what it is they do, where it is they do it, and give them that advertising data that is so valuable to the people that paid and. ashley: as we know, it brings up the issue of privacy. yes, we can know when someone is home and what they're doing, but i guess as someone was able to get it to the information in real time, they know when you are not home. >> and that has been one of the problems. you will has not been the most secure. was to have the cameras in place that a monitoring the inside of your home, suddenly getting access and using it for ways that are nefarious is relatively easy. now, if you own a camera in your home there's nothing you can do about it. the baby monitors and stuff. wa bu . alltha vance tes ofe hnology,t as wille an orofti te attud f tburar -- rwi comp ing uskou o ac: hesght. ashley: you still have that. tracy: at cool party check. ashley: weight. i know. tracy: and nice party check. the creator of beanie babies gets a break. we will fill you win. segmented by apple shareholders to sit thank you to the chinese company for a big stock job. ashley: as we do every y ttimof 3 up two basis points. the dow up 95 points. don't go anywhere. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in ter-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six uoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. you make a great team. it's been that way wisincthe day you met. app. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime thmoment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enoughor sexual activity. do not take alis if you take nitrates for chest pain, as this may causan unsafe drop in blood prsure. do not drink alcohol in excess with cialis. side effects may include heache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immiate medical hp for an erection lasting re than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic actions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30ablet free trial. >> reporter: and jo ling kent with your fox business brief. two years of probation. not paying about $5 million in taxes over 11 years. prosecutors were seeking a prison term. shares of netflix fell sharply but rebounded after a federal court struck down the net neutrality rule. the broadband providers can raise the fees they charge content providers for faster internet fees. the december hiring surge lifted all the employment to a 14-year high. retail hiring spree to a better than expected 18,000 jobs. retailers may not just let seasonal workers go but also some permanent full-time workers. the latest from the fox business network, giving you the power to prosper. ♪ tracy: small-business optimism rose in december. that is up from 925 in november. back-to-back monthly improvements. next guest actually says this signals the economy is going forward and not heading in reverse. joining us now, chief economist for floridian. loving the background. may i say that i do not have a personal bone to pick with you. i am very happy if you are here. let's talk about, though, what is going on behind the scenes. we got this report that reported that there was an increase in jobs. adp usually follows small and medium-size companies. maybe there is correlation. you are seeing hiring. they're seeing a jump in their number. is it a stretch? >> i think everyone saw better numbers for december except the bureau of labor statistics. they only got 74,000. we were all kind of shocked. we got the best employment perform increase that we have seen since 2006. that is when the economy was still heading toward its peak. we think that you will see some revisions out there because our fundamental labor market indicators also state nice. the planning, the creation of new jobs going forward in job openings are hard to fill. the unemployment rate in state in the high sixes now instead of going over seven. so they should have had a better number. what is wrong with them? tracy: who does the math. one thing that i really like seeing its capital spending is the increase. that is really a we'll all been waiting for, isn't it? >> looking forward we see a nice increase in the percentage of firms that are going to make capital expenditures. a huge increase in the number that reported making capital expenditures in december that took a little bit to find out why. it is probably a section 179 expensive rules that changed. you could expense 500,000 until 1231. now is reverted to 25,000. 500,000 is more than the sales of most of the small businessese that much, but it is not a small business. that gave us a surge to take it advantage of the break which means you will probably see a little less of it in the first half of the year. tracy: a lot of these, there were for holidays. >> we had some pretty good hiring, the best hiring sector wonderfully is manufacturing and professional services retailing showing some strength which was good to see as well. the rest of the huge amount, i think you probably will not see many being shed in the months ahead. tracy: that is good to here. i read through the report, and one of the notes in the summary was that 38 percent reported few or no qualified applicants. it is not a skills issue, won a poor attitude, work habits, time is, appearance, everyone is not taking seriously. >> that's right. almost half of the firms reported hiring or trying to hire. and as you said, almost 40 percent, 80 percent of those looking trying to hire said that there were fewer or no qualified applicants. all of the disqualification has nothing to do with education or training or experience. has to do with these young people just -- they have a bad attitude. they don't dress correctly. you know, most kinds of things disqualify them. no they're looking for someone who they want to see meeting. so they can fix all of that overnight if they want to. there are certainly jobs there, as we can see. tracy: they need as sicilian mother like mead is smack in the head. - hope this is a sign of good things to come. ashley: and going to send tracy over. it is a quarter till. time for stocks as they do every 15 minutes. that set down to the new york stock exchange were marked newton joins us now. >> is tough to pinpoint any of this. the movement in the nasdaq is more impressive the more you are seeing in the dow. set to hit new highs today, the nasdaq 100 the composite. one day of weakness and now that has been recouped right away. pretty incredible. such technology, i think, it has to be a treated to some of the move. some of the small-cap setting new highs in relative terms. that is important. a pretty good weakness of the last couple of days of only consumer discretionary is based on a lot of retailers and energy hitting new lows which is starting to stabilize the, but bottom line is that the snb has been following the senior treasury yields pretty much locked in step, lock and key. right now we have hit to adm announced all the way back up to 286. so that is important, the fact that treasury yields have stabilized to the downside. they did not believe the jobs number last week and it has started to bounce again. that is important. ashley: what are your expectations as we head into earnings season? >> my thinking is the markets can still move higher little bit if we can manage to hold these gains this will have been a one day move to the downside, and it is important to know that we have seen a lot of these, of different shakeouts. it is a spin a 1-day affair. until we see greater evidence of that and it is just a one day move and the markets are still resilient. ashley: thank you so much. appreciate it. it is now time for your "tech minute." ships one-and-a-half million iphone 5s devices to china mobile. destined for new buyers. those who have up reordered. making the most. since october the majority of the approaching capacity has indeed been devoted to make the demand. almost expect it will boost sales by an additional ten to 30 million. shares of apple up 6% in the last year. today of one and three-quarters percent. more apple news. done and done. reportedly done with his steve jobs myopic. the academy of more weird turn in his script based upon the walter isaacson is buy up to the biography. details are rather scarce. the movie would be structured as 330 minute naps play and real time in showing the jobs back. the difference ... unveiling. stay tuned as they say. you ready for simple. the super bowl is going high-tech. the super bowl will be played at met life stadium in new jersey. played in cold weather environment. fox sports system network will test out some other related gadgets. this weekend seahawks-9 bears game that includes an infrared camera that will show how player's body temperatures changed. i'm not kidding. another that will show the wind impact on the kicker and quarterback. fox sports will also have more cameras for what they are calling the definitive the ankle. the urologist predicting game de temps, balmy 35 degrees with a chance of snow showers, but because that football weather. tracy: amen head. i will be watching from the couch. all right. battle of the cable guide. trying to buy. why others will get in before the deal is done. ashley: a prescription to save you money. why drug stores may not be the best place to buy drugs. we will explain as we go to the break. take a look get some of the day's winners and losers. ♪ tracy: we have to take a look at the dow right now up almost 102 points right now. flirting with, well, numbers we have not seen in at least the beginning of 2014. hopefully they say as january customer goes the year : the views is a good thing. ashley: after a. of down time, up nicely. the $37 billion buyout offer is grossly inadequate, not just inadequate. is there any hope that the number two and number four cable companies could still emerge and rattle the tv industry? for that lets turns to dennis kneale. >> reporter: if former sec commissioner he said some kind ofda ts neyoucould see therbiddsdn. is s aold id. th tcs r uptdy usuly he te acqd th sto falls. they have been up 3% just on this deal. charter you might want to pick on someone your own size. but the difference between these two. that understates the big difference. time warner has almost three t manubers. but in the measure that counts. stock up 75%. tw see up 40% driven largely by the interest. so what will happen? well, get ready for the rrbrics cuba. comcast could come in. they could join to bid and buyup. tw see could turn to a cox communications. turn to its long-running never cablevision. the one winner, john malone who bought a 27% stake in charter. he is the one driving this. tom rutledge is the charter ceo, one of the most respected cable as in the business, greater reparations. that made mr. lost half a million and subs. we could come in and fix it and run it better. here is one down side. let's get the massive debt. these guys combined with $60 billion. time warner has something like 23 billion, charter has 14. 23 billion is-here. from right now cash, $40 million. 60 billion ellis and reading something wrong. ashley: very quickly, betting money, what happens? >> time-warner is done. xbox entracy: you need a flow c. so many what ifs. >> i will have that ready for next time. ashley: i will hold to that. tracy: all right. coming upon a countdown to the closing bell some of the newest and most advanced games on the planet. the world's largest video game chain that sells them. will as the ceo about that as well as the next big thing. i would like to know that. the dow is hovering around 100 points higher. liz claman is up next. don't go anywhere. ♪ w is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. of their type 2 diabetes with non-insulin victoza®. for a while, i took a pill to lower my bld sugar, but it didn't get me to my goal. so i asked my doctor about victoza®. he said victoza® is different than pills. victoza® is proven to lower blood sugar and a1c. it's taken once-a-day, any time, and comes in a pen. and the needle is thin. victoza® is not for weight loss, but it may help you lose some weight. that may improve blood sugar in adultth typ2 diabetes when used with diet and exercise. itit is not recoended as the first medication to treat diabetes and should not be used in people with type 1 diabetes diabetic ketoacidosis. victoza® has not been studied with mealtime insulin. victoza® is not insulin. do not take victoza® if you have a personal or family history of medullary thyroid cancer, multiple endocrine neoplasisyndrome type 2, or if you are allergic to victoza® or any of its ingredients. symptoms of a serious allergic reaction may include: swelling of face, lips, tongue, or throat, fainting or dizziness, very rapid heartbeat, problems breathing or swallowing, severe rash or itching. tell your doctor if you get a lump or swelling in yr neck. serious side effects may happen in people who take victoza®, including inflammation of the pancreas (pancreatitis), which may be fatal. stop taking victoza® and call your doctor right away if you have signs of pancreatitis, such as severe pain at will not go away in your abdomen or from your abdomen to your ck, with or without vomiting tellour doctor about all the mee and if you have any medical conditions. taking victoza® with an may cause low blood sugar. the most common side effects are nausea, diarrhea, and headache. some side effects can lead to dehydration, which may cause kidney problems. if your pillsn't giving you the control you need ask your doctor about non-insulin victoza®. it's covered by most health plans. bank stocks kill in 2013 but would do earnings from jpmorgan and wells fargo said about this year's performance? what did you think of these names? game stop has been the first and last stop for a jury is buying new titles and consul's the retail giant released holiday sales numbers have a confusing story. how do some places have more, x box 1 really do and how will the ceo position the company for a winning future? of fox business exclusive. don't try and coke, the new message in colorado thanks to a law legalizing recreational marijuana. you will never guess who is footing the bill for these new warning and the ds . "countdown to the closing bell" starts right now. liz: the last hour of trading and the reversal, january won't we count today. dow jones industrials up about 100 points a second ago, now 91. consecutive sessions of losses and the nasdaq and s&p are higher. the s and p is enjoying its biggest gain since dec. eighteenth. we got a coople big technology stocks leading
calendar you are leaving town. told weekend? dagen: no just that weekend. going to be a nightmare. connell: i don't live anywhere near it. dagen: really aggressively happy fans on the street. where a girl can dream. there it is, 100 point gain on the dow, on the heels of yesterday, nicole petallides is at the stock exchange with more. nicole: the market is looking pretty nice today. if you are a bullish view like that 100 point gain you are like it today, 2 days in a row after monday where the dow sold off 180 points. that is the environment we have been in. year to date, the s&p 500, right now at 1847 so right around 1848 it did move into positive territory for the year so far but dipped back a little bit. on the dow jones industrial average, microsoft, verizon, some of the names leading the way and aerospatiale up 3% on the talks that may go private. ww are watching at as well. dagen: the heat getting turned upon target on capitol hill, two democratic senators, john rockefeller and clear mccann still demanding answers from target's see on the mass of data set that hit more than one hundred million customer accounts. we all just want to know how did this happen and why won't it happen again? vice president at trend micro, this is what he does for a living, these were two separate fact. the original 40 million customer accounts or dead account for credit card accounts, on the point of sales software used at the register. it was a different system, 70 million customer accounts, how did this happen? how long was the planning in all of this? >> absolutely, this was a massive targeted attack months in the making more than likely. as we saw the breach unfold on december 19th we indicated this would expand in scope beyond the 40 million credit cards. we see that branch out more customer centric data to the records which you referenced. chances are they were intimately involved in not only with the deck of sale in the payment processing ecosystem but were actively targeting and focusing directly on the customer database and customer relationship management tool that targeted users to manage their red card bus quite possibly analytics around to is doing transactions and what major those transactions are for each of us as consumers. very sophisticated on both fronts and elaborate in its nature and many months in the making to pull this kind of heist off. y for lack of a better phrase, through which board did these walk through so to speak? how did they get in? >> it could have occurred in a multitude of ways. they infected the point of sales system on a very large scale which included grabbing track data from our credit card and debit cards and being able to parse that information off and ship it out of target's network in some capacity without them knowing. the second piece around a customer database information which included e-mail addresses, phone-number switch is extremely concerning and obviously the address, this most likely was due to some form of malware being put on the syytem that compromised the database and this could include escalated privileges which would have allowed them to get a lot of information from that particular platform which could include more than the information that is being disclosed at this point if they had administrative privileges on the database. the net would this be a system within target's stonewalls or one operated by a service provider? >> it could have consisted at this point in time i don't believe the payment processors that target uses is claiming any negligence at this point so that peace is out of scope but one thing that is interesting with this particular breach would be the notion and possible consideration of an insider threat. if you think of the scope and magnitude of this is very possible that either through malicious terms or intent that they quite possibly could have orchestrated this with an external prime unit, in such a stealth the fashion for that matter. dagen: before we go do you think these fees are originated in eastern europe. is that your best guess? that is what i am asking for a guess at this point. >> from our research they are most professional when it comes to these heights. they have capabilities, ecosystems, bulletproof hosting and networks to pull this off but at the end of the day this is affecting one in three americans when all is said and done. i hope target is collaborating with other retailers seeing similar activity on their networks in conjunction with the secret service to make sure we can figure this out in expedited fashion and make sure this doesn't happen with any retailers. dagen: we are all stuck in that. thank you for being here and answering questions a lot of articles don't answer. a lot people aren't answering. thank you so much. >> thanks. connell: president obama going in alone in the new year, told reporters he is ready to take executive actions bypassing congress pushing a number of economic policies. dagen: rich edson live in washington with more. not just spending but a lot of it. >> the president is highlighting his administration can do on its own to create jobs and with that president obama headed to north carolina at manufacturing innovation institute. announced this as part of his state of the union address last year, government private partnership, the administration's way to create manufacturing jobs. this is part of what the president is calling the year of action. cheese stands ready to influence members of congress to pass his agenda or he says he is ready to go it without congress. >> he wants actions this year and he has two unique powers as president, the power of the pan and the power of the telephone to try to instigate action. he can sign bills and executive orders and get on the phone in unique abilities to rally support ideas. >> we talk about this, influence senate democrats to go along with some job creation proposals that they have, mainly trade promotion authority that allows the administration and easier way to negotiate free trade agreement, president obama continues congressional discussions this evening, senate democrats will be coming to the white house, 5:00, meet with president obama. connell: on the subject of congressional inaction more news from capitol hill as the senate fails to extend emergency jobless benefits for 1.5 million long-term unemployed americans so we bring wayne rogers in to talk about that, wayne rogers and company. news alert to a lot of people, politics involved in this. what is your position on extending jobless benefits to set up a discussion? >> it is all politics, it is not anything else. if i have the ability to print money and i can buy votes by passing out money i know of those people will vote for me than i am going to do it and democrats -- connell: on the merits that jobless benefits should be extended, the position of the economy and everything else. you are against it. >> no. you had a gentleman i am talking about, the economy, the president had five years, five years and hasn't done it right because underneath all of this is the theory that if we spend the money, that will generate jobs. that is the keynesian theory. they don't read height, they don't read the people on the other side of the equation. they don't understand that doesn't work, it hasn't worked. he spent trillions, more than any other president of the united states and we still have joblessness at 6.7%. connell: to extend these benefits any longer, you say they should come off at this point. >> that doesn't help anybody. passing out money on, come back in, i will give you some money to vote for me. is buying votes. no extension. connell: having a couple different -- no extensions so the republicans -- the reason i started by saying there are politics and all the republicans are proposing there should be some extension just not as long as democrats and republicans a three months, 6 billion, democrats said through mid november, 18 billion, mid november you don't have to be a genius to figure out that it midterm election time. how do you think the gop should handle this to come out looking all right and still not spending a ton of money? >> there is money there. you could do this but got to get some offsets from it and stop spending somewhere else. i could be emperor of the world by saying to everybody in the world i don't have any money but i will print and chanted out to everybody and you will vote for me. that is insanity. if you don't have the money you shouldn't be spending it. we have waste all over the place. we note that. every government program, enormous amount of waste. you could stop that and get money and dictate to that but if they don't want to, who is going to vote for me? the president on the other hand is the same way, worried about oh we have to take care of these poor people who vote for me. doesn't care, has no concept of what a free economy is and how to get the jobs done that way. connell: i of it when you do voices like that. that is a great aid to end at. wayne rogers. dagen: it does not end for the nsa. where did that the agency is using radio waves to monitor computers around the world. connell: don't even have to be connected. the nfl construction settlement another big story rejected in court, could mean more money for the league, what is a very sensitive issue. we will talk about that with judge andrew napolitano. dagen: legal, monetary and health and get online with your brain, kicked starter progress that wants to give you control of your pc by just thinking about it. as we go to break the oil market. ♪ [ male announcer ] this m has an accomplished resear and analytical group at his disposal. ♪ t even more pressive is how he puts it to work for his clients. ♪ morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones makesense of investing. ♪ it's not the "juggle a bunch of rotating categories" card. it's not the "sign up for rewards each quarter" card. it's the no-games, no-messing-'round, no-earning-limit-having, do-i-look-like-i'm-jokg, turbo-boosting, heavyweight-champion- of-the-world cash back card. thiss the quicksilver cash back card from capital one. unlimited 1.5% cash back on every purchase, everywhere, every single day. now tell me, what's in your wallet? dagen: bank of america of the stock to watch. nicole: they have their quarterly numbers surpassing the estimates. and hitting a new high, for the quarter profit be the analyst estimates, and the number they are doing well, and a 52 week high, wanting to keep an eye on is citigroup, there is a probe for citigroup and deutsche bank to currency trades, we are watching is that. it is up 2%, pnc financial, a lot in the financial realm doing very well. connell: a lot of talk about the new york times story in the league and the national security agency, and radio waves. the secret technology allows the agency to gain access to computers through software that is placed on 100,000 computers around the world. and uses radio waves to transmit information, ann figure out what is being done on that. dagen: speaking of the nsa, phil zimmerman and his company signed a circle, start up the phone to an cecily designed, here it is the deal. that have set called the black phone runs on a completely secure version of the android operating system, for all user activity through a virtual private network. cellphones makes its debut at the mobile world congress in barcelona. starting on february 24th. connell: the word for it hasn't been heard in a while. critics of the nfl settlement on concussions said $765 million price tag wasn't enough. now the judge agrees with them so that is the story today as judge andrew napolitano comes in to talk about the long-term and what might happen. dagen: move over-actress and. a woman has taken the reins at general motors. what to expect from her first day on the job. 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(vo) so do we, business pro. so do we. go national. go like pro. over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪ >> 22 minutes past the hour your fox news minute. an earthquake rocking los angeles county earlier this morning. the magnitude 4.4 quake struck three miles north of fontana, calif. 50 miles from downtown l.a.. no injuries or major damage from the tremor. new details emerging from the tragic school shooting in mexico where a 12-year-old boy opened fire yesterday. police said the troubled kid, not to go to school after the attack, two were wounded in shooting, one critically. today marks the fifth anniversary of the miracle on the hudson. on this day in 2009 he wrote captain sullenbergere made an emergency landing after his plane struck a flock of geese in flight. usairways light 1549 crash landed into the frigid waters with no fatalities. the flight was headed to charlotte, n.c.. those are your headlines. dagen: farther to the lowest levels in years. connell: charles payne on the significance of this. charles: two years ago, actually a two year period where we almost began every day wondering what yields were doing in europe and greece was on the precipices and spain and portugal and italy and it dominated the news for a long time and now that they of come down so dramatically, it is almost healthy, you don't hear about it. this is really impressive. spain yields are down significantly, greece, italy, portugal. it points to maybe they actually have weathered the storm and what i like about europe is the idea of growing these economy is when along came yesterday the president of france. dagen: has no personal problems. charles: in france it might be a badge of honor that his popularity went from 24% to 21%. here is the thing. when the socialist start to talk about cutting taxes, cutting spending, it tells you obviously the economy isn't what it used to be but they understand they want to grow it. the main message that i avoided europe for a long time and that might be the wild card of 2014, the differencemaker where china elected down a little bit and the u.s. grows at 3%. dagen: the debt. charles: i wouldn't touch the death with a 10 foot pole but these economies could help drive corporate profits in america. dagen: still to come and $765 million settlement that could shortchange brain injured nfl players. a judge takes a pass initially. what does our judge think about it. connell: good things about general motors, trucks, jeff flock will have the latest on that as we look at some winners today on the s&p 500. the day of the markets. my dad has aor afib.brillation, he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if youave kidney problems, especially if you take certain medicines. tell your doors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. connell: okay. just coming up on the half hour. federal judge not satisfied with the 765 bullion dollar nfl settlement on the concussion. our judge is coming up. mary bauer with her first official day at gm. we will talk about that. dagen: i do not think about anything. what's the story, nicole? nicole: 3d printers have run up so far and so fast. we are taking a look at lower full-year guidance. exelon down 10%. that is a huge move. let's take a look at some of the other names. 3d is one that we often take a look at. in the last 52 weeks, it is up 119%. that is a great performance. back to you. connell: and may not be enough to compensate all the players. dagen: what to make of this? we have our judge, andrew napolitano here. >> good morning. good to be with you. think about a class action consolidation. representatives of unnamed and often unknown plaintiffs. the lead plaintiffs in this case, who are former well-known members of the nfl, are suing on behalf of everyone who ever played on behalf of the nfl that suffered a head injury. that is not a certain list. the court has to examined the proposed settlement to see if the court standing in the place of the others would agree with the settlement. connell: you have 20,000 players that are considered to be part of this. >> this is a rare instance in which the court can substitute its judgment for tte litigants. if dagen sued you and on the day of the trial your lawyers went to court and said, judge, the case is settled. if dagen sued you in behalf of others, not in the courtroom and not even known to you -- connell: you say it's not enough? >> in this case, she gets into the settlement negotiations and looks at where the dollars will go. one, i am not sure though plaintiffs have located all the people in whose behalf they are suing. once they find these people, i do not know there is enough money here. dagen: one of the interesting issues is the nature of these illnesses. some of the illnesses have not manifested themselves yet. >> what you usually do when you have a large class of plaintiffs , the nature of the injuries are different, you find a couple bellwethers. you find a classic example of a plaintiff for each different type of injury. >> the next step is more information coming forward from the nfl. information about their injuries, that will inform the court about how large the settlement pool needs to be, how many human beings need to be paid and as big and pointed out, how quickly they need to be paid. dagen: it does not make the issue go away for the nfl necessarily, does it? some players have rad filed suit. >> this will relieve the nfl of a large and legal nfl obligation. it will not make this whole case go away. nothing will make the case go away as long as there will be violent. connell: they are doing pretty well for themselves. >> some of the injuries have been suffering for years and they don't know what it is. dagen: again, it is just a difficult field to tackle. >> it would be right to say she deptford the settlement pending more information, which would likely lead to a bigger pot of cash. connell: judge, thanks. good to see you. dagen: two weeks from the biggest day of the year, the super bowl. the fbi is holding a security news briefing this afternoon. connell: rick has the story. >> the lead agency handling security for super bowl 48 and is uniquely qualified for the job. metlife stadium is only stadium that has a game every single season of the weekend because the jets and giants split their games. the police handle security for every home game. new york is very familiar with threats from terrorists. it is a top terror target. police have been preparing for this game for basically three years now. ever since it was awarded. we will hear how they are prepping for this very challenging game. this stadium is very different from other stadiums around the country. last year, in new orleans, a lot of folks just walked to the stadiums from their hotel. this year, most people will be driving or taking public transportation. whether, this is the first open stadium to host a winter game. it will be a big focus for authorities here as well. they are doing everything they can to prepare. we will bring you highlights throughout the day from what they tell us later today inside the stadium itself. connell: we look forward to that. dagen: well -- [laughter] dagen: some people in new jersey, i would not put it past them. the new chief executive officer, jeff flock is on this story. connell: last week's deep freeze driving up beef prices. dagen: new york city kickstart project developing a computer that you can control with your mind. we will tell you how it works. ♪ welcome back. how is everything? 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[ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. ♪ >> i am lori rothman with their your fox business brief. india is building the worlds largest solar solar plant. the prime minister says he wants to occupy the center stage in the company's energy mix. the plants will be in the state near the equator which has more than 300 sunny days a year. global growth forecasted for the first time in three years, the bank is expecting a growth rate of 3.2% this year. that is up from 2.4% last year. we learned largest increase in months for the cost of gas rebounding. that is the latest from the fox business network, giving you the power to prosper. ♪ in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] the magic shell went bk to being a...shell. get live sqwks right in your trading platform with think or swim from td ameritrade. get live sqwks right in your trading platform millions have raised their hane for the proven relief of the purple pill. and that relief could be in your hand. for many, nexium helps relieve heartburn symptoms from acid reflux disease. find out how you canave at purplepill.com. there is risk of bone fracture and low magnesium levels. side effects may include headache, abdominal pain, and diarrhea if you have persistent diarrhea, contact ur doctor right away. other serious stomach conditions may exi. avoid if you te clopidogrel. for many, relief is at hand. ask your doctor ouxium. connell: hopping into the driver seat over at gm. she takes over as the ceo. dagen: offering the first quarterly dividend in nearly six years. jeff flock with more on the story. jeff: neither of those are the headlines today. take a look at the latest numbers on gm. down about 8% and a half. they actually thought it a little bit lower going forward today. i think that is probably your headline. take a look at what we thought the headline should be. gm with the first dividend since 2008. a payment of $0.30 a share. but, here is my headline. increased restructuring costs of about $1 billion going forward in 2014. that is a lot more than they had first indicated. a pullout of the australian market and a closing of a plant in germany. the forecast going forward is for 2% growth in world auto sales. revenue growth of about 2% as well. a lot has been made of married making too much, some people have suggested. take a look at the scene on% monday. i had a chance to catch up with her a little bit. a lot of people have been writing stories about this intense media crush that she has had to endure. reporters kind of force to chase her down the aisles of the auto show. she has not had a lot to say. no big headlines. the fact is mary will be the ceo, is the ceo as of today. mary bar will not have that role, at least to start out. she will have a lot of help. a lot of news from gm today. as i said, both ford and gm with maybe we will not have as much excitement in 2014 as we did last year. dagen: we can dream, jeff. thank you for that. good to see you, as always. jack, good to see you. is there still value in these emerging markets debt? if you are looking at this universe of fixed income, where is the best value? i will not say this is a january 2014 event that the world will heal in these markets will be off to the races, but i think it makes sense to start the playing a little more capital into somebody's beaten up, emerging bond markets. dagen: how much of your portfolio, overall, would you put in? 5%? less? >> if you are looking at a retail investor, i would say 5%. you need to be a little bit selective. i look at brazil, i look at their yield at 13%. there is a lot of negative news priced into that. it is not just brazil, south africa, mexico, india. i have been in this business for 20 years. i just do not remember sentiment being this negative on emerging market. that usually means that there is some value being traded. every time they healed on the tenure gets to about 3%, a little bit more than not, then there is a rally. do you still think, would you hold treasuries here, or would you short them, which is what a lot of professional investors are doing? >> i would not short treasuries. i think we will get stable treasury yields. the key component is there is still distillation very measures. i look at the -- it just means that if you have high cost of production in one era, a company will move its cost to a lower area. same thing with technology. downward pressure on domestic wages. i just do not see where inflation will be an issue in 2014. lou: thank you very much, jack. it was great to talk to you, as always. we will see you very soon, sir. forget the keyboard. how you can control computers with your mind. connell: before that, we will take a look at some winners. we will be right back with more on "markets now." ♪ [ male announcer ] e new new york is open. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. srt a tax-free business at startup-ny.com. connell: talking about beef prices on markets now. forecasts for more cold weather, it is a struggling cattle industry at this point. >> unfortunate situation for ranchers and restaurant stocks. this is by the pound. $1.38. the highest that cattle prices have ever traded today began trading in chicago in the mid- 1960s. we had a drought a couple years ago. this year it is the bone chilling temperatures that is causing a lot of the ranchers to feed their cattle more. what is happening is we are getting a spike in prices as the overall supply in the market continues to get squeezed. this is one of the biggest threats to the bottom line. they have had to raise prices significantly over the past few years. we are getting more frigid temperatures throughout the midwest. that cattle herd in the united states is a completely different story. we are looking at the smallest herd. dagen: thank you, sandra. rising airfare and hotel prices. group spending also up. people are getting more confident. all of this according to the global business travel association. here is a look at some of the hotel and airline stocks and how they are trading today. connell: we will take that as good news. this story we talked about earlier. a computer only controlled by your brain. basically, the idea is to develop an affordable headset that would work in conjunction with a specially equipped computer. you just think about it and it happens. it is crazy sci-fi stuff, but it is going to happen. a lot of cool things are happening in the technology world. we try to pick out a few every day. this is one for you, what are you thinking about? oh, wait. dagen: nothing. [laughter] connell: it is just a blank screen. dagen: if you are lucky enough to be going to the super bowl and you are using a car, you will pay for it. parking at the super bowl, $150 a pop. there is no tailgating. you cannot do that. 13,000 parking spaces, 80,000 ticket holders. connell: what could possibly go wrong? dagen: go ahead. anheuser-busch has that vote, that ship that they move into the west side of manhattan, i think you can stay on it, selective customers can stay on it, i assume they will ferry people over him and bus them in. my apartment overlooks the lincoln tunnel. connell: oh, really? if you believe in the sports illustrated curse, new england patriots just hit it. he is on the cover, the guy there -- it was written weird in there. i always think these are weird. they have the championship game on sunday well, whatever. dagen: what is wrong with you? connell: i was talking about the sports illustrated curse. it is so silly. it is an economic theory. they say you are cursed. he is not cursed. dagen: he plays for the patriots. who is the favorite? the broncos are the favorite, aren't they? connell: yes, they are playing at home. did you get your bets and, by the way? dagen: i am going for the seahawks. there are four teams left. we have to go. connell: speaking of technology. it is no secret wearing the google glass makes you more attractive. dagen: baby if you are a nerd. connell: markets now continues in just a moment. ♪ than the research this man has at his dissal is how he puts it to work for his clients. morning. morning. thanks for meeting so early. co on in. [ male annncer ] it's how edward jones makes sense of investing. of the dusty basement at 06 35th street the old dining table at5th and hoffman. ...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 more. dell is honored to be pa of some of the world'great stories. that began much the same w ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ world we live in where phone booths are viewed as a quaint anachronism, people stand up in the middle of a crowded plane and broadcast their telephone conversations to everybody within earshot, where we no commercial invasion of our personal privacy is taking place almost constantly in the accumulation of information by our government is only a fraction of what the commercial sector is gathering about everything will day and every move we make. dennis: every move we make. company could be tracking the sand probably are. i and dennis kneale and cheryl casone rejoined us to take you through the next hour of markets now. business is secretly using corrugated to find information about our movements. should we be getting the for our information? is 2014 the year to buy a house? a guest says it is the best o o investment you can make this year. google last scoring points on innooation but loses points on attractiveness and we have a guy who is helping to create more wearable and better looking tech. of this and more in the next hour of markets now. welcome back. second day in a row up triple digits. cheryl: nice way to come back to work, 20 points on the dow. kickoff tomorrow, bank earnings coming out this morning. top of the our stocks every 15 minutes, nicole petallides on the floor of the stock exchange, good news, and the s&p, good stuff. nicole: you see right now we are moving into positive territory, just so you know the close on 2013, last trading day of 2013 the s&p closed at 1848.36, right now we are at 18 eight the meeting 38.3 it with this move up 1/2% for the s&p 500, the nasdaq, dow negative territory, the nasdaq up 1/2% at the moment. the nasdaq 4209 and we are at 4210 so positive territory for the nasdaq. we have seen bank stocks doing well on the heels of the bank of america numbers that came out, we see a profit on the rise, strong fourth quarter profit, at beat expectations, stronger quality, credit quality, that was good news, losses in consumer real-estate was good news. let's look at apple quickly, apple as the china mobile deal moves forward, full of the on sale friday. is taps into a huge market because it is the world's largest carrier, apple $5579411.5. dennis: thanks very much. a marketer's dream, a new startup turnstile solution putting cellphone tracking censors around the city would for the sole purpose of tracking your movement. privacy advocates are up in arms as they always thought. turnstile founders joyous now with their side of the story, thanks for being with us. let's start with the promise, wall street journal, great story on the experiment you are running in toronto where one asian restaurant that has your sensors in its restaurant trekking those people learned that in a single month 170 customers when clubing, 250 went to the june, 216 from one particular neighborhood. that is a marker's dream. what do you do with that information once you know that? >> our goal is to help the retailer understand so the retailer can use that to better target and the pro by an experience for their customer had the customer will enjoy a. we really want to empower the retailer with fleeces they can make online in the ecommerce world. dennis: which is which? which dog as the tie on? >> the guy on my left. >> we both have ties on. dennis: you did this without getting my permission. you are tracking my movements, you know my particular cellphone and didn't get my permission to begin with. maybe i would feel better about you if you asked. at the any brushback from people who are upset? >> bsolutely. we try to all the information we are collecting right now is non invasive, non personally identifiable. foot traffic information. this is the passive, passive in flow. we are kind of hoping that people will one day choose to opt in to our offerings, opt into loyalty programs and trust with retailers that they trust. that is our end. dennis: opt in is a nice idea. why don't you start without the opt in? >> as a matter said the data is collected is anonymous. nonperson identifiable identifier from the cellphone, in an aggregate level this is not personally identifiable information and our goal is to abide reports to the retailer. dennis: hy em a pro tech guy, the privacy prudes over do it all the time since the dawn of the american express card we sacrifice a little bit of privacy, they know where i live, so fine, yet this goes a step farther. when you say it is not identifiable information doesn't every cellphone and individual electronic serial number? don't even know indeed that this cellphone is one parrot together cellphone going to the club late at night or going to the gym and the other cellphone is a sacred cellphone that went somewhere else? are you telling me all the they are not deferentially dated by which cellphone? i find that hard to believe? >> the cellphones are uniquely identifiable but not personally identifiable. the information does not include personally identifiable information, they simply include -- dennis: you always say this. it doesn't have the person's name and address, yes there cellphone but our cellphone is traceable to ourselves. why not just do an opt in? why don't you pay me to take part in your network? if you start paying me for my personal they i am a lot less upset. i went to see the c drug store use that byre card and got a $12 discount on a $60 purchase. why are you paying me instead of stealing it without my permission? >> that is the attention with the loyalty program and those are the sorts of products we believe are important for technology like this and we see a lot of interest from retailers and consumers tuesday that if you are willing to provide personally identifiable information we can use in a responsible way we would love to give you deals and provide and facilitate loyalty type platforms where you are effectively paid for your data, that is a goal of ours, personally identifiable information. dennis: al la will it be before your technology and ends of showing up in divorce court where the spouse knows this other spouse was at this home later at night seven nights a week? in murder trials? legal enforcement investigations? only matter of time. >> i think respectfully we are not going to comment on that but as of right now we're very careful about the data we collect and the data that we do decide to share. as of now, that is certainly not on our radar and as we expand our offering we will make sure we work with the privacy commissioner of canada and the future of privacy to make sure everything we do as we progress, consumers are comfortable and where. dennis: we appreciate your being with us today matt hunter and devon white. this is the best example i have seen in a while the old saying it is always easier to beg forgiveness than to ask permission up front. have a good day. cheryl: at the top of the hour the dow up 125 points, time for the fox business stock radar. rob morgan, achieve investment strategist at full from securities, betting on the consumer, two the teams, disney, starbucks, luckily for you, the news on starbucks, let's start there because they got downgraded and there are concerns about the valuation of this. >> i have a top ten stalkless, starbucks is on it, the most expensive stock, 27 times -- please -- by price-earnings ratio. i think there expansion into asia is justified, japan and china have historically been more tee centric companies and it has taken starbucks awhile to figure out the formula, and the lot of room to run. cheryl: of 38% and i say that in all fairness. a lot of new highs for stocks and starbucks performing. >> the other side of it from a technical side of things it is a lot 250 day moving average. it is a lot, they don't mean reversion, it can only come down. cheryl: there is breaking news. apple breaking right now. breaking news on avalanche the ftc settlement. let's bring in peter barnes from washington with what we learned from apple. >> apple has agreed to settle a complaint with the federal trade commission that it build consumers millions of dollars for charges in kurd, and without parents' consent. it will pay consumers $32.5 million, and the ftc is holding a press conference right now to announce the settlement but apple put out a press release confirming attendant to the terms of the settlement with the ftc apple will also be required to change its billing practices to insure it has obtained express informed consent from consumers before charging them for items sold in mobile apps. gerri: peter barnes out of washington with that news on apple and the ftc and i want to bring rob morgan in to react to this news because one of the thing that'll at ceo is saying according to reuters is we decided to settle with the government over this because we were already going to take this action with regards to the guy in parental control. >> $32 million in the grand scheme of things sounds like a lot of money but to a company with apple's scope not so much. unlike apple's stock as opposed to starbucks, apple is only some 12 times earnings of is very cheap and there is some concern, what is the next big thing coming out of there? i tvs and kings of that nature is so i like stocks and i don't think this negative impacts of buy rating. cheryl: we are talking about starbucks and confusing you but with regard to apple they have cash on hand, carl icahn going after the company, going after the shareholder or whatever you call it, to deploy that cash. $32 million to apple is nothing i agree with you but they have become a target not just in this the overseas, for things like this. >> you can say is that, once you get to be a giant look at walmart. one of the most hated companies out there. maybe apple should aspire to be a heated company as opposed to admired. cheryl: thank you for commenting on apple and i want to go back to starbucks, talking about the long-term strategy and you like them for asia, they had the acquisition of teavana. >> is a new strategy but they have got their knowledge of back. shares at disney, that is the other stock on your radar. that stock is up 45% over the last year. one component of disney do you like? analysts have differing opinions. some say the cruise lines and the parks. >> the parks really, i won't say i like other media companies as well but i would say in my mind what separates disney is the park's really give it a smooth out earnings stream, very consistent reliable and earnings stream. in the old days we called it a ruler stock, on a graph you could draw a line through the predictability of their earnings and it is a lot cheaper than starbucks, 18 times earnings not cheap. one other thing about both of these they paid dividends, they grow, growth stocks as you know, very unusual that they pay a dividend and grow up strongly. that will help income. gerri: both stocks are performing well and starbucks for the last month, that is the truth. thank you for coming with breaking news. dennis: betting the house on the housing market? one adviser says buying alice could be the best investment you will make this year. cheryl: talk about not wanting to make this list. one university accidentally releases the names of its worst performing students. detail ahead. across america people are taking charge of their type 2 diabetes th non-insulin victoza®. for a while, i took a pill to lower my blood sugar, but it didn't get me to my goal. so i asked my doctor about victoza®. said victoza® is different than pills. victoza® is proven to lower blood sugar and a1c. it's taken once-a-day, any time, and comes in a pen. and the needle is thin. victoza® is not for weight loss, but it may help you lose some weight. victoza® is an injectable prescription medicine that may improve blood sugar in adultth typ2 diabetes when used with diet and exercise. it is not recommended as the first medication to treat diabetes and should not be used in people with type 1 diabetes or diabetic ketoacidosis. victoza has not been studied with mealtime insulin. victoza® is not insulin. do not take victoza® if you have a personal or family history of medullary thyroid cancer, multiple endocrine neoplasia syndrome type 2, or if you are allergic to victoza® or any of its ingredients. symptoms of a serious allergic reaction may include: swelling of face, lips, tongue, or throat, fainting or dizziness, very rapid heartbeat, problems breathing or swallowing, severe rash or itching. tell your doctor if you get a lump or swelling in your neck. seriouside effects may happen in people who take victoza®, including inflammation of the pancreas (pancreatitis), which may be fatal. stop taking victoza® and call your doctor right away if you have signs of pancreatitis, such as severe pain that will not go away in your abdomen or from your abdomen to your back, with or without vomiting. tell your doctor about all the e and if you have any medical conditions. taking victoza® with a sulfonylurea or insulin may cause low blood sugar. the most common side effects are nausea, diarrhea, and headache. some side effects can lead to dehydration, which may cause kidney problems. if your pill isn't giving you the control you need k your doctor about non-insulin victoza®. it's covered by most health plans. cheryl: the dow 30, 120 points to the downside, down for the year but a nice come back, also look at that stock in the middle of the screen, the stock we are watching, 4.2 at j and j being reported exclusively by partners at the wall street journal. let's head to the floor of the stock exchange, nicole petallides standing by, pet smart seeing red arrows for the company today. >> and in fact the stock is down 1-3/4, and the 3 months chart. and downgraded news that would not be placing chief operating officer in this position and current executives, that remains as a wild card, ubs, credit suisse of view of the names on wall street cutting their targets, ubs cut to neutral from a buy rating, not good news and lowered the price target to $72 from 80 to. much like credit suisse, lower their target to $70.78 and the neutral rating as well so after the retirement they are not replacing the current c 00. on a day you are seeing gains across the board and the dow 120 points, pet smart shareholders not happy today. dennis: and administrator at oxford university accidentally sends out a list naming the very worst performing students to all the students in the school. but e-mail with an excellent document was meant to be a timetable about coming exams but instead listed the names and poor exam grades of 50 students at the university. the school issued an apology looking into the incident, one law student on that list understand why some people may be upset. if this happened in america the trial lawyers would have filed a lawsuit by now. cheryl: exactly. making wearable tech fashionable. ahead we have a company looking to make wearable technology like google glass and some are watches that are actually attractive. dennis: why you should be buying a home right now. financial expert and author nathalie page makes the case for home buying. welcome back. how is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. where does the united states get most of its energy? is it africa? the middle east? canada? or the u.s.? he answer is... the u.s. ♪ most of america's energy comes from right here at home. take the energy quiz. energy lives here. cheryl: 23 minutes past the hour your fox news minute. violence in iraq isn't letting up, more bomb blasts in baghdad and in a village north of the capital's elite killing 34 people, the prime minister trying to eliminate threat from al qaeda mental -- militants, still in a stand of the terrorist organization, in run body ever, and the u.s. pledging creating million dollars in assistance to civilians suffering in syria. secretary of state john kerry making the announcement in kuwait. the pledge comes as united nations claims $6.5 billion is needed to sustain syrian refugees, a federal judge denying preliminary approval of the $765 million concussion settlement, district judge anita brody fiers some may not be enough to cover 20,000 retired players. attorneys on both sides will provide the judge with additional material to show it is a fair deal. those are your headlines. back to dennis and cheryl. dennis: time to make money in the house of pain. may not be on your radar now but charles payne making a big turnaround. charles: it was on people's radar before, split it, and what the eye on the stock is, $34 now. try $1,769 a share. one of the hottest stocks. it is an internet service provider. these are the pipes that information goes through. so much on wireless we talk about wireless all the time that there's a tremendous amount of stuff that goes through the ordinary pipes we always use and here is the big deal, we were talking for a decade about business that inga and starting to redo their stuff. a lot of places where people work you can get on the internet faster with your phone watching video faster and getting information faster but that won't work in corporate america and last quarter on the enterprise side, business side, america revenue up 7%, europe up 9%, latin america 13%, business spending. cheryl: the mobile story in the united states but not overseas. charles: the phone is ten times faster, you can't work like that. dennis: level 3 stock is up today, federal appeals court ruling said fcc you are not allowed to order comcast and verizon and others how to run their networks, level 3 is netflix's contractor that sends movies through the pipes to comcast. they have been in a fight, you shouldn't charge higher prices for data load, should be the same rate for every one. now you can't do it. and that could hurt level 3. charles: i don't think they will get hurt. it will be a huge opportunity for them. the point you make. apple music goes to the pipes. they have to be upgraded and someone has to pay for it. they had it out between the content providers and these guys are more middle managers if you will and i think it will be a huge victory. cheryl: stock up 5%. charles: higher than normal risk idea. cheryl: apple is preparing to squeeze more out of its deal with china mobile. joline kent is covering that story. dennis: tech you can wear in public. looks like something from star trek. as a business owner, i'm constantly putting out fires. so i deserve a small business credit card with amazing rewards. with the spark cascard from capital one, i get 2% cash back on ery purchase, every day. i break my bacaround here. finally soone'recognizing me with unlimited rards! meetings start at 11, cindy. [ mama announcer get the spark business card from capital one. choose 2% cash back or double miles on every purchase, every d. what's in your wallet? i need your timesheets, larry! cheryl: a big bet on the housing market, buying a home could be the best investment in an earthquake rocking the los angeles area early this morning, details coming up in the west coast minute and google glass rocks the tech industry but look of it isn't all that great. we talked to a guy trying to make high-tech more terrible. stocks every 15 minutes. nicole petallides, another good day for stocks, big movers. nicole: the s and p at all time high that a look at names that highs as well. these are some movers, not all of them tied, we are watching pandora, a new high for pandora. a lot of market share, more listeners, more hours, continues to rise, 375% in the last 52 weeks and they blew out there and expectation that sales of the model going forward in 2014 giving positive comments. arrow post of working with private equity firms or potential sales and the like, google you have been talking about, and acquisition yesterday a new high again today, put a buy rating on google, facebook and trick adviser noting intel, more upgrades, another high for intel. you can add barkley's and positive commentary for intel for 2014 and as i noted a new high for intel. cheryl: see you in a little bit. dennis: 2014 is the year to buy a house according to natalie pace of women's investment network and author of the abcs of money joining us with her reasons why. i thought we'd already missed the boat on the best deals in housing and prices climbed too much. >> not really. we are at ten year lows and you can finance at that lifetime low end for most people that is the biggest price they're paying, how much they finance. in many markets it is cheaper to rent, cheaper to buy than it is to rent. so don't forget the great mortgage interest tax write off so we can get closer to the millionaire tax plan of 15%. dennis: one thing that contributed to that bubble. got some numbers on median home prices. 2006 they began $222,000 almost. 2009 they have fallen 22% or so to $172,000, we got a list of numbers but by 2013 it is up to $136,000. from the bottom in 2009 housing prices are up 13% but from the bottom in 2009 stock prices are up 100%. it seems like we have some numbers working your way on home. >> the other thing is it offers a nicer, save for return, stocks can be a little more risky than real-estate provided you buy a home you can afford. you can live there, you plan on staying there a while. i wouldn't go into the bye and slid environment because prices are only expected to go on average 5% next year but over time, 5.5% really adds up particularly when you got the tax right out and you are living there. dennis: and might be good for me to buy a home, you say it is not a good idea for someone to buy a home as an investment they already own. >> i do think this can be, got to know your region and have to know the market. income property can be a good investment as well. on wouldn't go in and we are in a slower growth on that recovery and this year we are seeing what will keep the prices down a little bit is we are starting to see the bank owned properties come back on the market place. dennis: your rose colored view, 2014 a good year to buy a home factor in what happens if st ra mortgage rates rise and that hurt home values and brings prices down. >> what people need to do is lock in the fix anyway they can. 40% of sales are cash sales and what people are doing is teaming up with their parents who are getting negative return on bonds and having security so you got to partner up and team up to do whatever you can do to lock in low or fixed and then stayed there and enjoy it. dennis: if i want to buy a home and i am thinking how long should i want to live in it? there's a difference between buying it as an investment and buying a home by want to live in. what is the minimum? when you buy a stock you should have a minimum of two years before a home what is your minimum? >> if you are looking, your average job is seven years and you are ok with that so if you can say i think i am going to be working here and want to live here at least 7 to 10 years definitely biased. even if you can't say in that, real estate is a good idea right now because bonds are miserable and you'd do need a safe haven for some of that money. you can still all in on stocks if you are close to retirement. dennis: overall what is the mistake of the housing bubble we look at our homes as investments and we should have been looking at them as a good place to live? are we making the same mistake again here? >> i don't think so. the prices are back to 2004 levels. you can -- people more aware what they can afford. we really have a lot of infomercials' late at night about how people can make money hand over fist, lending standards are claytor. it is harder to find a loan. that is why we have some of cash advice going on. i don't think we are in a bobble at all and we have a foreign market coming in. dennis: you nicely prosecuted your case. >> thanks so much. cheryl: time for your west coast minute. a 4.4 magnitude earthquake rattled los angeles this morning. the u.s. geological survey reports the quake struck three miles north of montana at 4:41 pacific standard time. located 45 miles east of downtown el a. so far no reports of damage or injuries. president obama says intel at new arizona computer chip factory was the symbol of u.s. manufacturing for surgeons but according to the arizona republic the facility is empty. the factory was supposed to bring a thousand jobs to the phoenix area, millions in economic activity. intel will not say why the new plan is empty but they did confirm some employees were hired and working out of california instead. the technology bust buying up pot related domain names and hoping to score big. when bendixen and daniel brooks have bought wheatamenities and.com, madewithmarijuana.com and 200 other names, only being $9 per name and hope to sell each one for $10,000. that is your west coast minute. dennis: google glass definitely cool if you want to look like an unmitigated got no date geek coming up a guy at trying to make hot new tech more wearable. cheryl: a new study reveals the gatt restaurants could be just as bad if not worse for your health than eating at fast food joints. we will see you at mcdonald's in a little bit. 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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. those litt cialis tadafil for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet helpsapproved to treattime the msymptoms of bph, like needing to go freently. tell yr doctor about all your medical conditions and medicines, and ask if your heart is healthenough for sex. do not take cialis if youtake , as it may cause an unsafe drop in blood pressure. do not drinklcohol in excess. side effects may include headac, upset stomach, delayed baache or muscle ache. to avoid long-term injury,gety if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breaing or swallowing, op taking alis and get mecal help right a ask your doctoabout cialis for daily use and a free 30-tablet trial. tracy: tracy byrnes with your fox business brief, apple will provide $35 million in consumer refunds, ftc complaint, the company charge for purchases in mobile apps for kids without their parents' consent, and a federal judge, willfully infringed on a hand for upcoming a yoda, and average life sciences, $392.5 million in damages, plans to appeal the verdict. president obama will nominate a california businesswoman to lead the small business administration. maria came from mexico, found america bank, if confirmed, this will complete the president's second term, that is the latest from the fox business network giving you the power to prosper. shindig google glass is functional, and elegant, but is this something the average person might wear every day? the most attractive glasses out there? there pushing the envelope, contract did sentences the industrial design firm branch to come up with concept full of wearable tech, should look like a. i hope google is watching. one of the men behind the concept, thank you for being here. wired magazine approached and said you need to tell technology's, how to come up with pretty technology that we like. what did you come up with? >> i think the idea was we were trying to integrate technology in a way that made it feel intuitive and not intrusive. what we do is try to have it fluidly connect into the device you are already wearing so if you are wearing glasses or watch it should look like a watch. cheryl: we have some pictures, some examples of things we're talking about, concept you came out with. for a watch for example samsung has watched, very bulky and you are saying we did make it pretty. is it the colors that make these more attractive? the design? the technology? what is it in your opinion? >> what it comes down to is the internal components inside. we are all battling to make things smaller and more seamless. batteries for example are getting more efficient and medtronic skidding more efficient. cheryl: and you mean smaller? we can put them in more fashionable watches necklaces or whatever. >> and we are limited by display side so as we start looking at our devices everyone is looking at their phones and from what is currently not a very attractive or played thing to have a phone in front of your face, a bridge into your glass. cheryl: i am wearing one and i had been working with this. i got 1.85 miles today and burned a thousand calories. i got to tell you is great and i'm wearing it every day, it is not that attractive. could we take the technology and put it into a pre gold watch or something like that? is that possible? >> absolutely. what is limited as the market and to is going to buy at. cheryl: and you have a whole new design, came up with a new product. tell us about it. >> we held them name them and do their identity and work their brand and amazing technology and what it does is detects and picks up sensors on every one of your muscles and your shirt and pants so they have 16 muscles in pants and sensors in the shirt. cheryl: would i feel them? like a workout shirt? what i feel some? >> the great thing is they figure out a way of integrating technology into the fabric itself, it is shown in the fabric so it feels like wearing a regular compression workout shirt or hands and the idea is that puck picks up the sensors and trends in to your phone so real-time information is displayed and you can act accordingly. cheryl: is it on sale? >> they are in free order. cheryl: an interesting idea and i am excited to see what silicon valley comes up with and i know you have some relationships you might be implementing as well. thank you. dennis: apple going big in china. apple ceo tim cook saying the company will have record sales in china, and joe in kent joins us with more. >> the ftc was announcing the $32.5 million consumer refund over those kids's apps earlier. ceo tim cook hunkering down with china mobile to make sure the iphone want to the world's largest mobile carrier goes off without a hitch this week on friday. overnight he told reporters he is expecting big numbers saying, quote, we haven't announced numbers but i can tell you last quarter we sold more iphones in china than any time in the past so it was a record quarter. compare that to last october when apple posted $5.73 billion in fourth quarter revenue up 6% year on year, so far several million phones have been free ordered regina mobil since late december according to the chairman, officially started on friday as we mentioned her earlier and is bringing a iphones to 3,000 new locations apple couldn't get to previously across china so that is more opportunity for apple to sell more ipads and laptops and devices down a road. tim cook made news saying he wants to broaden the alliance of china mobile to more than phones but didn't elaborate just yet. the stock reacted positively, it is up 2% right now. dennis: thanks very much. cheryl: we had a surprise in weekly inventory taking the oil contract hire. let's go to the trading pits of the cme, looking at oil and $94.52, pretty decent game, $1.74. >> this is over 22 months and this wasn't supposed to happen. we saw a huge draw down in the gulf coast, you expect that before the end of the year when they're trying to avoid the tax man, not after the tax man and that created a big surge in gasoline prices, traders expect a lot better out of the gulf coast and at the same time we see mediant absolutely explode up 487 points, some of the cold temperatures increase heating oil demand and that more than offset the expected loss in jet fuel demand for all the airplanes that were grounded by cold temperatures those this is really a shock, has a lot of traders scratching their heads, where is this crude-oil going? why are imports not showing up? and again it is just down in the gulf coast where we are seeing these big drawdowns, gasoline supplies are going crazy, up 6, gasoline, 6 million barrels of gasoline so the gasoline demand was hurt, production continues to be strong, imports of gasoline are also swamped. just about everything in this report supplies traders which is why we are seeing a violent move to the upside. back to you. cheryl: nice to see what heating oil does, you know what is coming. dennis: in the media minute the superbowl just 18 days away and here come the clydesdales, budweiser buying 3 minutes of ads in the super bowl, the best showcase on the planet and the highest price on the planet too, $4 million in some spots, one spot for bud light will show an aluminum can that is plausible rather than that. and the budweiser clydesdales will start in two spot sharing with the requisite cute puppy. but of course. stepped aside disney and nickelodeon. the new kid coming to town and his features are fancier. viacom launching a new kids' channel in the u.s. but rather than an uncontrollable deluge of sponge bob square pants that parents can customize it where they want justice a word play or science stuff. the new nickelodeon jr. will start running on verizon systems soon. get this. parents can get reports on what kids are watching and program the channel to shut off after a certain span of time, no ads at all. gerri: interesting if you can program what your child sees on television. that is wonderful. dennis: that is called netflix. share of avoiding fast food to save on calories, and may not be any better. details coming. capitato make it happen? that makes it real? what's a vision without the expertise to execute it... and the financing to make it grow? whatever your goal, it can change more than your business. whatever your goal, it canhange e future. that's wh at barclays, our ambition is to alys realize yours. cheryl: choosing a nice restaurant over fast food may not be as healthy as you thing. the journal of nutrition and behavior says eating a meal at a sit-down restaurant can be just as bad or worse for your health and eating at a fast-food joint. the study analyzed 2600 items from restaurants in the philadelphia area and found a typical meal containing an average of 2,020 calories, more than your need for your entire day but go ahead. give it a shot because burgers, fries, whatever. dennis: you heard of catnap, how about a nap in a bathroom stall? intern hong kong tell the wall street journal about inventive ways to get sleep while working very long days. the mentor and say they set alarms on their phones, plug in head phones and take a quick nap in the bathroom. the news comes as many banks revamped their programs to make sure participants are not working too many hours. they ought to get over themselves, they're not that important to the operation. cheryl: i can't get over the london inter at goldman sachs. our intern's don't work that hard. hunting for returns by backing the next big thing. the growing optimism over venture-capital as an investment and will warning from one of the smartest mined in the business coming up next, first on fox business interview with kim draper. dennis: taking on amazon in ecommerce could be a futile effort but that is not stopping one person, founder and ceo of home goods detail the wayfarer on blockbuster holiday sales and a small public. ♪ [ cellphones beeping ] ♪ [ cellphone rings ] hello? [ male announcer ] over 12,000 financial advisors. good, good. good over $700 billion dollars in assets under care. let me just put this away. [ male announcer ] how did edward jones get so big? could you teach kids that trick? [ male announcer ] by not acting that way. ok, st quarter... [ male announcer ] it's how edward jones makes sense of investing. ♪ there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. over the pizza place on chestnut street the most first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪ >> good afternoon, i am lori rothman. ashley: i am ashley webster. helping stocks reraise the january slump after years of lousy returns, could venture capital be the place to put your money now? companies like hotmail, skype and others join us in a first on fox business interview with his 2014 outlook. lori: venture capital with the e-tailer's founder and retail sales for 2014 potential ipo plans. ashley: not enough, a federal judge rebuffed an nfl $765 million compensation deal for former players suffering from rain damage. what happens now? fox sports one legal analyst on what happens with this nfl concussion case next. lori: major gains on wall street now. strictly for the new york stock exchange with nicole. nicole: all posting of arrows. so much so you s&p hit an all-time high today of 1850. the nasdaq also at a new high back to the 2000 era. and the dow right now 15,494. you do have stocks rallying as strong data on manufacturing. all helping to move the market higher. take a look at bank of america joining wells fargo and jpmorgan reporting right now bank of america up 2.5% coming out with better profits,
pope francis reveals he's auctioning off his harley. he's even signed it on the gas tank, but what lucky buyer is headed for hog heaven? >> come on. get in the game. let's go. >> pull our money together. >> like 5 million each? >> we're talking about this right here. it's autographed. i love it on the gas tank like that. no telling how much that will go for. >> it's going to be amazing to see how much that gets. >> heavenly harley. >> the proceeds are going to benefit a soup kitchen in rome. people could be eating very well at that soup kitchen for many years to come. that will fetch a pretty penny. >> great to see. also some surprising comments from the first lady right before her 50th birthday saying she's not ruling out plastic surgery or botox. a lot more to come on that. first, let's get to ginger with that situation developing in california. driest conditions yet. fires all across the state. >> right. >> it was the driest year on record for california and now we've got pictures of the sierras, last year at this time and this year at this time. you remember snow equals rain equals drinking water and there is a big, big issue. it is not only that but you've got the santa anas in full effect. high temperatures being broken, records being broken. you've got fire warnings, you've got red-flag warnings all up and down the state of california but we start on an island where people were trapped by fire. kimball island. overnight an island on fire drama between sacramento and san francisco. flames devouring at least three homes and several outhouses on kimball island. >> dry brush and berry bushes out there, it goes quick. >> reporter: rescues were tricky. the coast guard rushing in to help people escape while boats designed to fight fires doused whatever they could reach. >> reporter: reporter dave marquis was right there in the center of it all. >> reporter: sections like this just going up like it's the middle of summer getting water on it to knock it out. >> reporter: the fire reportedly starting in one of the homes but it was dry grass and high winds fueling that threat. earlier in the day, another raging fire came dangerously close to the busy pacific coast highway as well as 25 homes in the upscale pacific palisades neighborhood. >> just chaos and smoke and it looked huge. >> reporter: fortunately crews contained that fire before major damage was done. the same could not be said in 70 miles east in jurupa valley. >> my house is gone. what can we do? nothing. >> reporter: flames there destroying four homes before 110 firefighters finally put it out. and i wish i had better news, but the next week looks very dry. and look at this, since july 1st only an inch and a half in san francisco. they usually have closer to ten inches. >> that's not helping at all. >> no. >> ginger, thank you. to the latest on the school shooting in new mexico. a seventh grader opening fire in a jam-packed gym. two students severely wounded. abc's ryan owens is there in roswell, new mexico, this morning for us. good morning, ryan. >> reporter: good morning to you, robin. this is not even a high school. it's just a middle school, and the ages of the people involved makes this so disturbing. police say the shooter is just 12. this morning he's locked up in a psychiatric hospital. and his victims, 13 and just 11. >> we have one student or female subject possibly shot. >> reporter: the gun shots rang out before the morning school bell did. 7:30 a.m. police say a seventh grader, a 12-year-old, walks into a gym full of 500 students with a sawed off shotgun concealed in a bag or a case. >> i saw that student walked in with a gun and he just started firing randomly, it seemed. >> reporter: two students are hit and only two. because authorities say eighth grade social studies teacher john masterson put himself in the line of fire. new mexico's governor spoke with the teacher turned hero. >> pointing the firearm at mr. masterson. mr. masterson begins to talk to him to put it down. >> he dropped the gun. he raised his hands and the principal didn't touch the person that shot, he went to the kid that got shot. >> reporter: authorities say an 11-year-old boy was shot in the face and flown to a texas hospital. 13-year-old kendall sanders was also hit. >> tough to see our kids so scared. >> reporter: police searched the suspect's home overnight but still aren't sure of the motive. they are investigating reports he warned some students not to come to school. >> when looking at different social media, i do not have a definitive answer as to whether that happened or not. we'll certainly look into that. >> keep these two children in your prayers who were shot while simply sitting in their gym waiting to go to class. >> reporter: school will be closed here today as investigators work to answer a number of questions, not the least of which how in the world did a 12-year-old boy end up with a sawed off shotgun? robin and george. >> many want to know the answer to that question. thank you, ryan, so much. >> every single time you see these teachers stepping up. it's incredible. >> quick thinking like that. bless them for it. >> josh with other top stories this morning. good morning. good morning, we'll begin with breaking news overnight about another government spying operation. "the new york times" is reporting that the nsa has installed software on almost 100,000 computers overseas including those belonging to the chinese and russian militaries and all to conduct surveillance and prevent cyberattacks. agents have reportedly used radio waves to access protected computers. now, this news comes just days before president obama is expected to announce new limits on u.s. surveillance programs. and your subscription to netflix could soon get more expensive thanks to a federal appeals court which has tossed out the government's so-called internet neutrality rules that required everyone online to be treated equally no matter how much bandwidth you use but now netflix and youtube which use more bandwidth than anyone else can be charged a higher fee by internet service providers to insure faster service. amazon could also be hit hard by extra fees. a federal judge in oklahoma ruled that the state's ban on same-sex marriage is unconstitutional. the state will be allowed to appeal before the ruling takes effect, however, similar to what's happening right now in the state of utah. and off the coast of virginia, a coast guard helicopter rescued four people from a disabled sailboat. you see the rescue in progress here. those folks had been traveling to the virgin islands when their 42-foot boat ran into mechanical trouble. they were hoisted one by one into the helicopter and thankfully everyone is okay. a popular cholesterol drug is being recalled. merck is recalling liptruzet because packaging defects with the foil could, in fact, reduce the drug's effectiveness, so far there are no reports of patients being harmed. and for the second consecutive day the temperature topped 104 degrees at the australian open there in melbourne. serena williams won a record-tying 60th match, equaling the great australian margaret court, but one player called the conditions there inhumane. several people on the court, several more in the stands actually collapsed in the heat. nine players quit because of injuries. but if you think if you're in australia, just go to the beach and swim, that might not work out for you well either. take a look. one thrill seeker may be looking for a thrill that was accidentally found. sean harrington cage diving in australia and there is an eight-foot tiger shark. that was a birdcage. that shark could have easily torn through it. in fact, the only weapon he had when the shark charged him, yeah, his plan to take that quick dip for a stunt for a surfing label, maybe not so much. >> huh-uh. >> so it's really hot outside and there are many sharks in the water. just maybe we avoid australia right now. maybe note to self. >> thank you. now to new jersey governor chris christie digging out from that traffic scandal that could block his road to the white house. he tried to move beyond bridgegate in his state of the state speech yesterday and a new poll shows he's holding his own with new jersey voters. abc's jim avila has been on the story from the start. >> reporter: chris christie's fourth state of the state address as new jersey governor was clearly high stakes. the normally bombastic governor stood outside the statehouse chamber, his face showing the tension, his entrance muted despite three minutes of applause. >> now, the last week has certainly tested this administration. >> reporter: the first four paragraphs of the speech dedicated to those substantiated allegations that some of his closest advisers urged the port authority to close lanes on the george washington bridge as political retribution. now i'm the governor and i'm ultimately responsible for all that happens on my watch, both good and bad. >> reporter: it was not a full mea culpa. he used the time-worn phrase other politicians have used to avoid personal responsibilities. "mistakes were made" rather than "i made a mistake." >> mistakes were made and as a result we let down the people we're entrusted to serve. >> reporter: he promised not to stonewall the investigation into whether his aides broke the law when they ordered traffic problems at ft. lee and crippled traffic across the george washington bridge, the busiest in the world for a workweek in september. >> without a doubt, we will cooperate with all appropriate inquiries to ensure that this breach of trust does not happen again. >> reporter: one of those inquiries will begin tomorrow with the aides christie fired being subpoenaed to testify before the state legislature about who ordered ft. lee's traffic armageddon and a new quinnipiac poll shows how popular he is in new jersey. his approval rating dropped 20 points after the scandal, but it still stands at 55%. robin? >> all right there, jim. thank you. now to the latest deadly movie theater killing. in florida. the retired police captain charged with killing a man who wouldn't stop texting is behind bars this morning. steve osunsami that has story. >> reporter: he's the retired tampa police captain charged with second degree murder making his first court appearance in a thick green bulletproof vest designed to protect and restrict high-profile defendants. >> what i ask the public not to rush to judgment. this individual was a decorated former law enforcement officer. >> reporter: police say 71-year-old curtis reeves began arguing with the man sitting in front of him at a showing of "lone survivor" and then shot him dead because he wouldn't stop texting. >> he's a godly man. >> reporter: his family and long-time supporters from the law enforcement community packed the courtroom but the judge ordered him held without bond. he did not enter a plea. >> the evidence of guilt is significant. >> reporter: police say reeves shot and killed 43-year-old chad oulson seen in this video from 2011 and say he wounded oulson's wife nicole who tried to block the gunshot. they have a young daughter and this morning we're learning he was texting their baby-sitter. lawyers for the retired officer are invoking florida's controversial stand your ground law. the police report saying reeves told them he was in fear of being attacked. >> he was hit with -- in the face with an unknown object. at that point in time he has every right to defend himself. >> reporter: but witnesses tell police reeves was struck with a bag of flying popcorn. >> working with our state attorney's office, it was determined that the stand your ground case, no, does not fly here in this case. >> reporter: this morning police are also looking into a tip they received about a similar incident allegedly involving reeves. >> he gets up. he's like, can you do me a favor, can you please just stop texting. >> reporter: this woman says the tip was from her. she claims reeves berated her for texting during a film at this same theater in december. police are telling us they can't confirm whether reeves went after this family or any other. they say it's another reason why they need to comb through the surveillance video they've obtained from in and outside this theater. george. >> okay, steve, thanks very much. the latest now on that concussion crisis in the nfl. a federal judge has rejected the $765 million settlement between the league and former players suffering head injuries saying that may not be enough to compensate everyone affected. abc's ryan smith is tracking the case. >> reporter: this morning the nfl's biggest blow yet, a judge sacking a $765 million settlement over concussion claims saying it may not be enough. >> he took a heavy hit. u.s. district court judge anita brody saying "i have concerns about the fairness, reasonableness and adequacy of the settlement" demanding to see evidence showing that more than three quarters of a billion dollar will cover the estimated 20,000 players and their families over a 65-year period. some of the nfl's biggest stars now seeing the light at the end of the tunnel like super bowl winning quarterback jim mcmahon who has early stage dementia. >> i went through two strikes during my career and i was hoping that my medical bills would be paid for. you know, hopefully now they will be. >> reporter: relief also for the families of players like junior seau whose 2012 suicide they say is due in part to the big hits in the nfl. >> he loved the game, but i know that he didn't love the end of his life. >> reporter: the current settlement had the promise of big bucks for some players including up to $5 million for players diagnosed with als and up to $3.5 million for players with diseases like alzheimer's and parkinson's. the judge fears that money may run out. in settling, the nfl has not admitted any wrong doing. the league and players' attorneys unfazed by this development. the nfl saying judge brody's request for more information is a step towards preliminary approval while the players' attorneys say they are "confident" it'll get done. >> the judge says i want to satisfy myself the deal works and i want to say to the players, sit tight. this is part of the process. this deal will be approved. >> reporter: still, at the end of the day, the judge is the ultimate referee. the players can choose to opt out of the deal and file their own lawsuits but if too many do, the settlement could be in jeopardy so the question now becomes if the judge doesn't think the settlement is enough, will the players. george? >> a big question, ryan, thanks very much. now we have that interview from the first lady. >> yeah, very talkative. it's a very revealing "people" magazine interview with first lady michelle obama just before her 50th birthday. so honest on a range of topics, including her take on plastic surgery and botox. we have an exclusive first look right here. the big day is fast approaching. this friday marks michelle obama's 50th birthday. we're told the president is planning a party on saturday to mark the momentous occasion although details are hard to come by. ♪ stay together >> reporter: the elegant first lady sat down with "people" magazine for an exclusive interview to talk about how she feels about the big milestone saying she is more self-assured now, each decade brings a greater sense of calm and certainty and maturity and confidence. she also says she isn't ruling out a little enhancements like botox in the future saying, women should have the freedom to do whatever they need to do to feel good about themselves and the first lady revealed she's changed her workout routine to less weights and more yoga and other exercises to keep her flexible. >> she said she really wanted to use this milestone and the spotlight on her during it to help other women to promote, you know, the kinds of things she's doing with her own health care. >> reporter: an occasion to help others and an occasion to celebrate we're told in a casual way. >> the guests were told to wear comfortable shoes. it's all about dancing and having a good time. >> reporter: the president hasn't given mrs. obama any details on the birthday bash, only that the guests were told to eat before they come. she did, however, share an important birthday wish. >> she said, if there's planning going on, i don't know about it. my one wish is to be with the people i love. >> reporter: one thing we know for sure is that the president has already given an early gift while on the annual family vacation in hawaii, taking the girls home to washington, leaving the first lady behind for an extra few days of vaca with some of her close friends, including oprah. she looks so fantastic. just to be clear mrs. obama says she doesn't imagine having plastic surgery but she's learned never say never. >> there will be dancing in the white house this weekend. >> i love that. >> i love that eat before you come. carbo load. >> it's going to be a good time. >> that's the truth. and we check now with the weather and ginger. >> imagine driving over this bridge going to new york city, see, absolutely zero visibility in some places. this is not good and this is happening not just here in new york city, but through the mid-atlantic, down through the southeast, let me show you some of the numbers, fog, the headline up and down from charleston to almost zero up to connecticut where i've heard gill up there telling me there have been so many accidents, please take extra time on your commute this morning. it's going to be a mess and reminder of january i was talking about yesterday, it is there. feels like 3 in chicago. sioux falls like 2 below, 13 below in fargo. your local weather coming up in 30 seconds but first the warm cities brought to you by royal caribbean international. >> that chill being felt as far south as oklahoma city. and no one is immune by the end of the week. miami drops into the low 40s. >> take that, miami. coming up on "gma," extraordinary and dramatic surveillance video. a top executive caught on tape caught terrorizing his community on a violent rampage. police armed with a warrant search justin bieber's mansion looking for evidence. could he end up behind bars? and an ad-stravangza. football's biggest game, jaguar, revving up the competition with a big name behind the wheel. one of the hot ways to exercise. is it actually making you pack on the pounds? spinning in the crosshairs. e pounds? spinning in the cross hairs. in the crosshairs. ♪ with freshly bakedeve in whole grain bread.right then we add all-natural eggs... lean antibiotic-free ham... and vermont white cheddar. get 16 grams of protein and 23 grams of whole grain in the breakfast power sandwich. 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[ male announcer ] when you feel good, no one is immune. emergen-c has more vitamin c than 10 oranges plus other antioxidants and electrolytes to help you come down with a serious case of healthy. emergen-c. making healthy contagious. to help you come down with a serious case of healthy. all the goodness of milk, all the deliciousness of hershey's syrup. yeah, let's do durable. let's do different. but mostly, let's do soft. like this, no, it's gotta feel like this. let's touch this. touch that, save a ton, and then, let's get on it. let's see the big game. and let's do floor seats. let's do this. more saving. more doing. that's the power of the home depot. right now get whole-home basic carpet installation for $37 bucks. good morning i'm erik thomas. mill pea da's police are looking for a shooter who opened fire at a hotel killing a man and leaving guests under lockdown this morning. it happened at the executive inn. there was a party and a dispute ended up taking place in a parking lot. witnesses say they heard arguing and then the sound of four gun shots. the victim is a man in his early to mid 20s. police are not sure if he was a guest or just visiting the hotel. >> leyla gulen. >> we have two that have canceled. the first one coming 0 out the called cot. so allings now reopened. but massive backups coming away from walnut creek. right at foster city boulevard, a truck fire there that has one lane blocked. look at the red there. it is sold out at this hour. good morning, waking up to a fire threat in the mountains until 8:00 tomorrow morning. you can see the sun is up as we look from the tower this morning. let's talk about temperatures is 1 to 16 degrees above average. sun sets at 5:15 on this record ♪ all right okay all right okay ♪ ♪ all right okay all right okay now ♪ >> i'll say. you never know when you're on a new york city bus what you will see, what you will hear. you can't hold it ginger. it never felt so good is what mclemore and ryan lewis took over a new york city bus. we'll tell you why. >> i have never seen so many smiles on a new york city bus. >> that's right. also something much less fun, dramatic surveillance captured the terrifying struggle. a cop statute i have attacking his former brother-in-law, went on to terrorize this community. this is reel something you have to say. then new details on the police raid at justin bieber's mansion. cops searching for evidence that he may have harmed a neighbor's property causing thousands of dollars worth of damage. it may not sound like a big deal but it is. we'll switch gears looking ahead just a couple weeks hence at the super bowl playing in these parts. all stops being pulled. some of the craziest most expensive ads ever. doesn't always equal greatness, but sometimes it really does. >> yeah. >> we'll take a look at all of our sneak peeks ahead. >> some big names being pulled out. all right, first in this half hour dramatic home security camera video capturing a life-or-death struggle. a biotech executive violently attacking his brother-in-law before police say he shot him and just hours after he opened fire on an ex-business partner. abc's linsey davis is here with more on that. good morning, linsey. >> good morning, robin. during monday's preliminary hearing, we heard testimony from hans peterson's girlfriend who describes him as agitated and focused as he worked on his computer after midnight the morning of attacks. she said he had been drinking and some some convincing to go to bed but when she woke up he was gone. the final moments of 49-year-old hans peterson's alleged bizarre shooting spree the night of september 18th caught on tape. watch as this surveillance video captures the once successful biotech executive gun in hand breaking into the home of ron fletcher, his former brother-in-law, off camera fletcher says peterson found him in his bathroom and a struggle ensues. fletcher telling his kids to lock their doors and call 911. bullets fly. >> when i grabbed the gun he fired and shot me in the stomach and i tackled him to the ground and fought, fought with him. >> reporter: in pain and holding his stomach fletcher says he manages to keep the gun away from peterson fighting him off. when he reaches for his cell phone to call 911, he says peterson stops him by smashing his phone. >> he started yelling at me to open my safe. i'm going to [ bleep ] kill you. open your [ bleep ] safe. >> reporter: peterson's alleged rampage continues until police arrive guns drawn. finally putting an end to a shooting spree that allegedly started four hours earlier anyone half a mile away. earlier that night, peterson allegedly broke into the home of this man, steven dowdy his former business associate. prosecutors accuse peterson of firing into dowdy's bedroom while he and his wife were sleeping. >> i realized then that this is not merely a robbery but this is someone trying to assassinate me. >> reporter: dowdy was shot in the back and says he would have died had he not taken cover behind his dresser where four bullets were lodged. >> when the bullets stopped firing and i was concerned that he was trying to reload, that's when i opened the curtains to look and see a little bit. i was afraid, of course, he would shoot me in the head right there. >> reporter: according to court documents peterson's estranged wife says her husband went into an emotional tailspin and depression after he lost his job. >> i would not be sitting here today if not. >> reporter: he began to change when he stopped taking medication prescribed to him after a skydiving incident. he not only lost his job but was going through a messy divorce. if convicted he faces up to 96 years in prison. he has pleaded not guilty to premeditated attempted murder among other charges but that surveillance video, i imagine, will be hard to explain. >> that will be played in court hard to explain. linsey, thank you. now new trouble for justin bieber. police swarming all over his mansion looking for evidence he egged his neighbor's house. they left with bieber's best friend arrested on drug charges. david wright has all the details. >> reporter: a ritzy hilltop neighborhood in southern california transformed thursday into whatting looked like an episode of "cops." officers raiding justin bieber's home. searching for evidence after this. >> [ bleep ]. i see you. [ bleep ]. i see you. >> reporter: tmz posted this video friday reportedly taken by one of bieber's neighbors. that led police to investigate whether the young pop star pelted his neighbor's mansion with eggs. >> hey [ bleep ] you. i got another one for you. >> reporter: the neighbor claims the incident caused up to $20,000 in damage. if charges are filed police say it would be a felony. armed with a warrant, police searched bieber's home where security camera footage and eggs. police say they found the footage but also something else, drugs. >> i believe it's san thanks and ecstasy but we will wait for the actual results before we can confirm that. >> reporter: that led to an arrest of a member of his entourage on felony narcotics charges and later charged with felony vandalism for allegedly pulling a phone off the jailhouse wall. authorities say bieber cooperated during the search but has yet to answer any questions. >> mr. bieber was not arrested. at this time he's also not exonerated. >> he may ultimately face jail time, justin bieber needs to realize that there are consequences for his actions. ♪ ♪ baby baby baby oh >> reporter: last fall he got into an altercation with the same neighbor. he said bieber spalt in his face. bieber denied that. >> justin! >> reporter: for "good morning america," david wright, abc news, los angeles. >> let's bring in our chief legal anchor dan abrams. could bieber really go to jail for egging his neighbor's house. >> in theory based on the amount of damage done here but let's be honest if this wasn't justin bieber you wouldn't have a dozen investigators goo in to investigate an egging incident. i mean, they're going in to look for surveillance video and possible eggs. what are they going to come out with 26 brown grade a and 12 white organic eggs as evidence against jud. not to say it doesn't matter. when you're talking about using the criminal law here with a dozen investigators, it doesn't seem to be the best use of the police force. >> so are they trying to send a message to the community that they're taking it seriously or to him? >> both. i think they want to tell the community there's no celebrity justice but in this case the celebrity justice is he's getting a harsher investigation than if he wasn't justin bieber but i also think some of his bad behavior with his neighbors is relevant here. i think there's been allegation after allegation and i think the authorities are basically saying we're taking this really seriously. we're going to investigate. the neighbors obviously very upset but typically what would happen a police officer shows up, one, takes a report, a civil lawsuit is filed. a deal is cut. payback is made, et cetera. the idea we're talking about a felony over egging someone's house with a dozen investigators and surveillance tape and confiscating potentially eggs as evidence, it all just seeps a little overwrought to me. >> tell us what you really think. thanks very much. to ginger with the weather. >> remember, we talked about the screamer. eastern iowa, that blowing snow created such issues and then green bay, wisconsin, actually had their snowiest day yet this season. tons of wrecks on the roads there, just over 7 inches of snow, almost a record but not quite for the date and more to to come. blizzard watches and warnings and winter vert advisories through the northern plains down through kansas and something that will happen in the next 24 to 48 hours depending on your location and we will be watching for that. please do take some extra care there and then the cold. i promised you this to show you how cold it gets in miami. look at the next couple of mornings from 66 this morning down to the low 40s as you start your weekend. it'll be a little >> this weather report brought to you by edward jones. you know that the cold if it's that far south is coming here too. >> it's coming. >> it's coming. i'll show you where. >> it is winter. >> thank you, ginger. coming up, the craziest most expensive ads going head to head in this year's super bowl and we have a sneak peek just ahead. and the mom who publicly shamed her daughter for cyberbullying. did her punishment make her a cyberbully too? 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[ giggles ] [ female announcer ] tide, downy, and bounce free & gentle. great on their own, even better together. but we're not staying in the kitchen. just start the slow cooker, add meat and pour in campbell's slow cooker sauce. by the time you get home, dinner is practically done. and absolutely delicious. everyone is cooking with new campbell's slow cooker sauces. we are back now at 7:43 and less than three weeks now till football's supershowdown. some of the craziest and most expensive commercials ever are expected. we have full ad-travaganza coverage for you this morning and first up, a few of the biggest ads. abc's nick watt has the story. >> reporter: jaguar just joined the big boys club. >> coming. >> reporter: parting with megabucks for a super bowl slot. i wonder how much they paid ben kingsley. >> you'll be hearing from us. >> reporter: super bowl xlviii the price tag for those 30 seconds is a colossal $4 million, topping 200 grand from last year. >> live sports in the most indemand time there is. >> reporter: other rookies on the feel, beats music, butterfinger and chobani. i wonder how much yogurt you have to sell. with big bucks come big bucks too, david beckham hawking clothes. stephen colbert pushing push 'stache shows. injure a and george spotted outside their old home sparking rumors of a "seinfeld" reunion super bowl ad. >> of course. >> together they're perfect. >> reporter: for sure, go daddy, my favorite from last year will be back and so will axe. >> in the world filled with war, sometimes the most powerful weapon. is love. >> reporter: this is a "gma" exclusive, first look at their new ad. >> make love, not war. introducing new axe peace. >> reporter: for some it seeps the price got too high. etrade has bowed out and we might never see those talking babies ever again. >> it's tragic, man. >> reporter: for "good morning america," nick watt, abc news, los angeles. >> oh, we'll miss those babies. some stats for you over 108 million americans watch the big game last year so you understand why companies are willing to pay so much. breaks down to $27 per viewer. right. not that much yogurt. all right. coming up, spinning is a good workout but new question, could it be causing you to gain weight? the celebrity trainer weighing in this morning. ♪ then the "play of the day," really a play in two parts. a go nowhere. ♪ how do you like me now [ male announcer ] at some point, everyone's been at the corner of "new year's resolution" and "maybe i need a new new year's resolution." ♪ at walgreens, we know that starting healthy routines can be tough. that's why walgreens makes it easier with realistic and real simple solutions... everything from great deals on vitamins, supplements and fitness monitors to helpful online tools. at the corner of happy and healthy. ♪ [ male announcer ] give extra. get extra. ♪ i'my body doesn't work the way it used to. past my prime? i'm a victim of a slowing metabolism? i don't think so. great grains protein blend. protein from natural ingredients like seeds and nuts. it helps support a healthy metabolism. great grains protein blend. that's a man interviewino.for a job. not that one. that one. the one who seems like he's already got the job 'cause he studied all the right courses from the get-go. and that's an accountant, a mom, a university of phoenix scholarship recipient, who used our unique --scratch that-- awesome career-planning tool. and that's a student, working late, with a day job, taking courses aligned with the industry he's aiming to be in. ready to build an education around the career that you want? let's get to work. the intense ache made it hard to do the things that i wanted. my doctor diagnosed it as fibromyalgia -- thought to be the result of over-active nerves that cause chronic, widespread pain. lyrica is believed to calm these nerves. i learned lyrica can provide significant relief from fibromyalgia pain. so now, i can do more of the things i enjoy. lyrica is not for everyone. it may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, or tired feeling. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. with less pain, i'm feeling better with lyrica. ask your doctor if lyrica is right for your fibromyalgia pain. >> announcer: right then, here's the "play of the day." an actual play times two. okay, so here we go. the winona running rebels playing in a tournament game in wisconsin over the weekend, a young team. so on this travel game, the game is tied. seconds left on the clock, we are seeing right there, easton, all right, so in the game with the game tied, seconds ticking down he does this. >> time-out. >> you heard the screaming. get a time-out. do whatever you can. >> right. >> time-out. >> again, there, and she gets it but becomes an instant ear row in his hometown. one of his buddies gives an interview. when he says we play basketball because all the girls love basketball players so the local news crew shows up and say, hey, easton, just to do it. >> just to humor us. >> take a shot and on his first shot -- >> no, he doesn't. >> he did not. >> no, he didn't. >> oh. >> wow! >> like twice. >> twice. >> we considered look booking him live to try it again. no, no. that's it. scarlett johansson is coming back, go nowhere. and i had like this four wheninch band of bumpsles it started on my back. that came around to the front of my body. and the pain from it was- it was excruciating. i did not want anyone to brush into me to cause me more pain than i was already enduring. i wanted to just crawl up in a ball and just, just wait till it passed. . ♪ well, i wear my clothes like this because i can ♪ [ female announcer ] when it comes to softness, shapes and styles only kleenex brand has it all. find your style then flaunt it at kleenex.com. good morning, i'm chris zen sze. a neighborhood market suffered considerable damage during a detonation by the bomb squad. an explosive device was found last night by family members cleaning out the home. meteorologist mike nicco has the forecast. hot thr this time of year. >> absolutely. fire danger still through tomorrow morning, about another 24 1/2 hours. low to mid 70s and upper 70s around santa cruz. we'll get back to the 60s by sunday, still warmer than average. leyla? >> we have a couple of accidents reported in san jose. they're reported might at the month gu express way, looks like month gu express way, looks like it's injennie-o w where every a where every thursday people ride 10 miles for tacos. we thought wsurprise them with a better kind of taco made with jennie-o ground turkey cooked thoroughly to 165. i feed my kids turkey tacos over regular tacos any day. i think they are light and they are just fresh tasting. yeah. when i eat well, i feel well. anncr: it's time for a better taco. the tacos tonight were pretty much perfect. make the switch. look for jennie-o ground turkey in a store near you. when ifor your business..curity tyco integrated security. we'll do a security review of your business to understand your needs, customize an integrated solution that meets your specific challenges. and deliver it all with responsive local service, and a personal passion to help you protect your business. we'll even give you the power to manage it all... right from the palm of your hand. call us for a free security review. good morning, america, 8:00 a.m. on a busy wednesday. the jury is out. the high-profile magazine editor coming clean about photo shopping and are relationships happier without kids? also, ahead the celebrity trainer sounding off about spinning is one of the hot ways to exercise really just bulking you up? and she's been called the sexiest woman alive. now, scarlett johansson opens up on love, marriage and that brand new top secret super bowl ad. as we say -- good morning, america. >> good morning, america. >> all: good morning. and the special delivery this morning. >> hey. >> a little thing from pizza hut right here. i'm told these are custom-made. >> all part of an exclusive look at pizza hut's brand-new one of a kind hand-tossed pizza style, thank you very much. and they're introducing them tomorrow. >> i ate mine already. >> you only have a slice left. >> that's all that's left. >> they're delicious. >> black bean hair. >> oh, it's an olive. >> olives. >> okay. >> can i just say on a pizza, robin, you are a beautiful white woman. i just want you to know that. >> i've got a healthy tan. >> look at that. look at that. is it possible to be wearing an olive wig? >> if i could, i would be blushing right now. >> thank you. >> no problem. >> thank you. >> thank you, pizza hut. thank you very much. >> yes. >> i will treasure it always. >> yes. and to think that's just prologue because the jury remains out this morning, america. a key debate, including, and if you'll forgive me, okay, a mother punishes her daughter from cyberbullying by making her put a note saying she's a cyberbully online. now, this has inspired any of all manner of heated debate already. robin roberts, we're saving it for the show. >> what are you possibly talking about? we've been having very civil discussions about that. >> who is on which side of all this? >> there's a "gma" flash poll, so we want to hear from you, so log on, vote, vote, vote. there you go. goodmorningamerica.com on yahoo! then we'll test out hollywood's hottest beauty secrets like the infrared sauna. we ask can you possibly lose weight by lying there and sweating it out? yes, i dare say you can. it's called water weight and then you drink this and put it back, but we'll test out some of these theories. >> we'll look at all that. plus we'll get news are from josh. we'll begin with those dangerously dry conditions in california, sparking fires up and down the state. an out-of-control fire burning on kimball island near sacramento. in fact, it destroyed at least one home and two other buildings while closer to los angeles, red flag warnings will be in effect all day as the santa ana conditions there continue. one raging fire actually quickly spread near pacific coast highway. that's the enclave of pacific palisades and threatened dozens of homes. it was put out. again, ginger with the complete forecast in just moments. details this morning about the shooting at a new mexico middle school. police are looking into whether the 12-year-old shooter used social media to warn some students not to go to school on tuesday. now, police say that the shooter opened fire in the gym with a sawed off shotgun seriously injuring two students before a teacher intervened and talked the student into dropping the weapon. the boy is now being treated at a psychiatric hospital. and a new warning today about one of the most commonly used drugs in the country. acetaminophen, the fda is advising doctors to stop prescribing combination drugs that contain more than 325 milligrams of acetaminophen saying it could cause liver damage. but the concern, many people don't realize the drug is already used in percocet, vicodin and other painkillers and can easily overdose. the warning, in fact, does not yet apply to over-the-counter drugs such as tylenol. and one kayaker, quite a story to tell today. watch as he collides with a humpback whale. that breach just as he was kayaking by. of course, the kayaker just kept on kayaking. i don't know that he had much of an option. and away we go. that's how they kayak in norway. and finally, one lucky buyer, we mentioned this at the top of the show, is going to hog heaven. that's like a triple ding. pope francis, the pope auctioning off his very sleek and stylish harley-davidson, which he actually got as a gift from the motorcycle company when he was elected last year. the papacy's leather biker jacket will actually be sold separately signed, oh, by the way, francesco, the italian of his papal name. proceeds from the sale will benefit a soup kitchen in rome. the bike retails at $20,000. i have a feeling it's -- >> are they guessing? do you have any idea? >> no, i think -- let's take a guess. lara, what do you have? >> at least a million. >> george. >> oh, i don't know. >> no? is that too much? >> oh, i think 10 million, 15 million. >> oh, really. or lira. we'll see what happens. >> we'll see. 10, 15. >> ah. >> harley. >> that's true. we'll find out. >> we will. probably coming up but let's get some weather from ginger. >> and the smiling faces have taken over times square here. i want to say good morning to this young man from fresno. what's your name? >> dave. >> and dave and i were talking about the drought not so good in california. but can i show you an update to the picture we showed you earlier. look at that, you would see the freedom tower, just the very top of that. that fog rolling in almost looks like san francisco city than new york city, but wabc giving us that beautiful shot this morning. please take extra time. fog big time from the carolinas all the way up into the mid-atlantic and northeast and look at this, the cooling i promised you. how much cooler? not terrible. closer to average in a lot of places. new york city drops to 38 in the next couple of days, a lot of folks, pittsburgh, others getting down there too. the ridge has built in and the stagnant air has settled in, especially to the valleys to the pacific northwest and medford high, 53. a >> all right. we're just getting some photos taken here, lara. come on out. >> all right, ginger, i will. here's a look at what's coming up on our "gma morning menu." first in pop news, we'll tell you how you can live like oprah. she's selling some real estate and we have pictures. the jury is still out on this question. are couples really happier in their relationship when they don't have kids? that's on the docket. dan is coming out. and then spinning, is it causing you to bulk up? the celebrity trainer weighing in on that. all that and scarlett johansson live on "good morning america" here in times square. ♪ "gma's morning menu" is brought to by new fast-acting advil. nothing is faster. r. [ male announcer ] this is jim. a man who doesn't stand still. but jim has afib, atrial fibrillation, an irregular heartbeat not caused by a heart valve problem. that puts jim at a greater risk of stroke. for years, jim's medicine tied him to a monthly trip to the clinic to get his blood tested. but now, with once-a-day xarelto jim's on the move. jim's doctor recommended xarelto. like warfarin, xarelto is proven effective to reduce afib-related stroke risk. but xarelto is the first and only once-a-day prescription blood thinner for patients with afib not caused by a heart valve problem that doesn't require routine blood monitoring. so jim's not tied to that monitoring routine. [ gps ] proceed to the designated route. not today. [ male announcer ] for patients currently well managed on warfarin there is limited information on how xarelto and warfarin compare in reducing the risk of stroke. xarelto is just one pill a day taken with the evening meal. plus, with no known dietary restrictions, jim can eat the healthy foods he likes. do not stop taking xarelto, rivaroxaban, without talking to the doctor who prescribes it as this may increase the risk of having a stroke. get help right away if you develop any symptoms like bleeding, unusual bruising, or tingling. you may have a higher risk of bleeding if you take xarelto with aspirin products, nsaids, or blood thinners. talk to your doctor before taking xarelto if you have abnormal bleeding. xarelto can cause bleeding, which can be serious and rarely may lead to death. you are likely to bruise more easily on xarelto and it may take longer for bleeding to stop. tell your doctors you are taking xarelto before any planned medical or dental procedures. before starting xarelto, tell your doctor about any conditions such as kidney, liver, or bleeding problems. xarelto is not for patients with artificial heart valves. jim changed his routine. ask your doctor about xarelto. once-a-day xarelto means no regular blood monitoring -- no known dietary restrictions. for more information and savings options, call 1-888-xarelto or visit goxarelto.com. isn't it time you discovered the sleep number bed? the only bed clinically proven to relieve back pain and improve sleep quality. and right now, it's our lowest prices of the season. save $300 to $800 on our newest innovations. plus, 18-month special financing on all sleep number beds. only at a sleep number store, where queen mattresses start at just $699.99. sleep number. comfort individualized. the girls and i need... a new activity. [ giggles ] [ snaps finger ] [ wisest kid ] campbell's tomato soup with grilled cheese. perfect together. what should we do next? i'm liking braids. [ gong ] m'm! m'm! good! [ coughing ] [ crying ] sorry. [ male announcer ] new robitussin dm max nighttime. fast, powerful cough relief that helps you sleep like a baby. robitussin nighttime. don't suffer the coughequences. ♪ i think the sun might be shining ♪ ♪ just a little more bright ♪ ♪ i think the stars might be hanging ♪ ♪ just a little more high ♪ ♪ come on, love ♪ a new day is calling, and it feels so right ♪ [ female announcer ] with ingredients like roasted hazelnuts, skim milk and cocoa, there's a whole lot of happy in every jar of nutella. spread the happy. smoke? nah, i'm good. [ male announcer ] celebrate every win with nicoderm cq, the unique patch with time release smartcontrol technology that helps prevent the urge to smoke all day long. help prevent your cravings with nicoderm cq. saw this at the top of the show. you know, just a new york city bus. that's about what most people look like on a new york city bus until maybe they start to realize that all is not as it seems. ♪ when mclemore and ryan lewis said stand up and break out into "can't hold us." all in realtime. not actors. realtime. >> and everybody is real. >> it's an ad campaign for the grammys. they want to capture people's natural reaction. >> yeah, yeah. >> such a powerful thing, you know. and look at that. that's great. ♪ >> i mean, it's -- obviously that's ripping through the internet and there they go. a sitting "o." >> a sitting "o." >> please remain in your seats in between stops. >> i wonder if they had to hit the bar. >> i remember when diane sawyer was here and wanted us to go out on the street and start dancing and see how people react. when you're watching a movie people break out in dance and everybody starts. we never did that, but i still remember, diane, i still remember you wanted to do that. >> that's great. more from "pop news." good morning, everybody. and we begin with oprah, one of her favorite things, it's on the market. the queen of daytime is selling her chicago condo for $7.75 million. well, it's actually four condos on 56th and 57th into of the watertown building in downtown chicago combined overtime to give oprah almost 10,000 square feet of living space, four bedrooms, two kitchens and magnificent views, needless to say. no word yet on if she'll have another yard sale auction like in montecito. if she does, i am in. i just like looking at the real estate. i love a little design. >> maybe she's not totally like us. >> no, not totally. today we're spreading the love in a way everybody finds delicious. hershey's came to us and they said they wanted us to be the first to try and share with you their first spreadable chocolate. it comes in three flavors, everybody has a knife. and -- >> three flavors. >> three flavors. >> you have almond. this is classic chocolate. and then there's one other with hazelnut. tastes like nutella. is it good? >> i'll go with the strawberry. >> why the pickle? >> thank you for asking, george. they say -- i'm glad you asked because you volunteered. >> that's not going to happen. >> they highly recommend it on pickles. >> i'll try the cookie. >> get right in there. >> i'll try the pickle. honestly. >> how is it? >> come on, rob. come on, rob. come on, rob. you can do it. you can do it. ah, ah, open up the hangar. how is it? >> turns out strawberries and chocolate good. pickles and chocolate, maybe not so much. i'm going to say. but it's very delicious. and we want to thank you for giving us the exclusive. >> yeah, thank you. >> if i could just get a glass of water when you have a moment. whoo. >> did you do the pickle? >> i did. >> she took one for the team. >> i sure did. you guys were having your strawberry moment. >> you had the pickle. >> any way, finally, it is good and take one home for the family. what's that old saying curiosity killed the cat? >> uh-huh. >> not this guy. wait for it. wait for it. look at him. you see him. >> there he is. >> lower left-hand corner. >> lower left-hand corner. >> oh. >> just watch. storming the internet. almost like mclemore. this is real. that is a real cat. that cat is not being put up to tricks. wait for it. >> wait for it. >> oh. oh. there you go. there you go. gave me enough time to have some water. everybody, that -- >> we waited on that one. >> the cat video, no. hey, look, i was two for three today. yesterday -- >> yeah, two for three. >> props to our stage managers and stagehands who come out and swoop in and swoop out. all of a sudden we have it in front of us. thank you. >> they just lifted me up and put me here. it's pizza, but i guess that's -- >> i didn't want to say that. i wanted you -- >> we know why you're here. the jury is out. >> the jury is out. we got some hot topics today. first you probably heard about the controversy over magazines air brushing celebrities or models to make them look thinner or taller. one former "cosmopolitan" editor says she did the reverse. air brushing skinny models to make them look healthier and fatter. but when it comes to these types of magazines, i don't have a problem with an air brush. i think, you know, you come to expect in this kind of magazine that's what they're going to do. >> i disagree. either way i don't like it when they -- keep it real. >> keep it real. >> whatever the person looks like, fine. i think it just sends the wrong message when you're doing either way either taking pounds off or putting them off. >> it's make believe. >> false advertisement. bad for young girls. >> can't we just accept that we don't believe these magazines are necessarily real? >> yeah, but how do you tell that to a preteen girl? >> it appears how you're going to look like. >> well, this is a way -- this is an idealistic way to look, right? you could argue, no? >> no. >> no difference between -- >> i know what you're saying, i mean, this is -- you know, the idea of high fashion is in part aspirational so it's -- it's to a degree it's like half make-believe, but if -- here's how you tell. hey, preteens watching, it's not true. >> but, see, that's the way to do it. that's right. you tell them, this isn't real, by the way, and they air brush. anyway, twitter, photo shopping models, making them look bigger and healthier. how about letting them actually be thinner and -- man says magazines such as "cosmo" is harmless fantasy for people to believe what they choose to believe. this is not hard journalism. new controversy brewing over the punishment. a north carolina mom gave her teen daughter who had been cyberbullying, apparently a lot of discussion over this already, the girl was forced to pose with a note which reads "i made poor choices with social media. as punishment i'm selling my ipod and will donate the money to the charity beat bullying because bullying is wrong." now some say the mom cyberbullying her daughter. i have no problem. >> george? >> the way to stop bullying is not a hostage video of your kid. come on. you can have the punishment. make the kid give the money to charity. call her in, make her apologize in person to the person she offended but what you're teaching the child is the technique is okay. i'm just not for it. >> two wrongs don't make a right. >> robin roberts, your thoughts. >> that's a way that, unfortunately, a lot of people communicate and gets the message across to them. in a perfect world, yes. all my dad had to do was clear his throat and we -- or raise his eyebrows, didn't have to do anything. i think sometimes we're quick to label things as bullying. the young woman did do that and the mother was -- and she also had nice things she said about her. my daughter is kind. it may be an effective way for the daughter to understand what she did. >> we just talked about how seriously cyberbullying needs to be taken and, well, let's be easy on them. >> i'm not saying be easy. don't post a video on "good morning america." all across the world. >> cyberbullying, though. >> i just think it validates the technique. >> we have 1600 responses on this one. carrie lynn walker on facebook, "i think the mother was creative with her punishment. used to not only teach her daughter a lesson, used the result for the greater good." . on twitter, "cold, okay." our gma flash poll, get this, is it okay for a parent to publicly shame a child, 49% yes, 51% no. next the seattle seahawks playing in seattle sunday in the nfc championship game, but now the team announced they will not sell any tickets to buyers from a california address. only addresses from washington, oregon, montana, idaho, alaska, hawaii, parts of canada can purchase the tickets. i didn't know they could do this stuff. >> oh, oh, oh. and you can't just single out seattle. it's happening in denver. happens in different sports. >> i did not know this. >> it happens -- please. >> it does happen. >> listen, i don't like it. i don't like it. i don't like it. i don't like it. >> is it so that the fans from that team will have -- another team won't have as many cheering people. >> i mean, look, call up your buddy in montana and say, buy me a couple for this game. >> what if you don't have a buddy? >> i love it. i love it. i love it. >> gamesmanship. >> it's like the real competitive -- seattle fans are -- >> they create earthquakes, so they don't need any help. >> they can hang a sign we reserve the right to refuse anybody. i love it. i love it. >> it happens all the time. we shouldn't just say seattle. it happens in denver and other sports but -- come on. >> i love it. >> of course they beat my saints, so i'm not happy with them right now. >> on that one, we got lauren greenland says, "why shouldn't the home stadium let their fans go first? 49ers can buy in the secondary market like anyone." your point? >> apparently there is no secondary market. >> but michele asks "what if a seahawks fan is living in california?" >> there you go. >> there you go. >> out of luck. >> that's why the jury is out. >> thank you. love the docket. love what's on the docket. a lot on the docket. we'll move on now to one of the hottest workout trends. does it make you bigger instead smaller? tracy anderson landed in the hot seat after saying spinning bulks up the thighs. juju chang, she's here with the skinny on the exercise. >> nice one, robin. i am a fan of spinning, but you i am standing on the sidelines on this. you can call it the clash of the exercise titans. but tracy anderson sat down with me to clear up the controversy that spun out over what she says spinning can or cannot do for your body. ♪ she's the fitness guru to the stars like gwyneth paltrow and madonna. >> so you just rotate up. >> reporter: not to mention the thousands of noncelebs who train in her studios, but it's comments tracy anderson made about the wildly popular indoor cycling craze that now has some heads spinning. anderson telling "redbook" online, "spin may burn calories in the short term, but if that's all you're doing, it'll bulk your thighs. we spoke with the popular trainer who says her comments were distorted and spun out of control. >> i never said that spinning makes you fat. >> reporter: many defend it. one of the fastest growing fitness trends out there. is it possible it could actually add inches? >> here we go. >> reporter: instructors at the popular spinning chain flywheel say that just won't happen if you're doing it right. >> we focus on strong, long lean bodies and, you know, we have countless stories of weight loss from our riders. >> reporter: meredith tepper started spinning six months ago and says her body has changed for the better. >> my muscles have been toned a little bit more. my legs have definitely gotten stronger. >> reporter: but not bulkier, per se. >> not bulkier. >> reporter: some experts agree -- >> doing one exercise over and over again is not going to bulk you. it could help you shape the muscle. >> reporter: some in the fitness community taking issue with her use of the word "bulk" and says it draws a negative connotation. >> using bulk and bigger and stronger are not looked at as women shouldn't be that way. >> reporter: anderson prefers balance over bulk and isn't afraid to speak out about it. >> the truth is is that it takes a lot of care and attention to achieve your best body. >> reporter: there is no quick fix. >> there is no quick fix. >> reporter: now, tracy doesn't rule out spinning altogether because she knew i was a fan. don't give it up if it motivates you and gets you moving. that's a good thing. as one spinning instructor said, fitness pros shouldn't be fighting each other, they could be fighting the common enemy, which is the couch. >> cardio is a good thing. she said balance and moderation. >> the couch is an ally. >> spinning is really hard. >> always good to see you, juju. thank you so much. coming up, how can you say big? on the hottest winter looks and scarlett johansson on love, marriage and her sexy new super bowl ad. that and a whole lot more in our final half hour. >> wow. ♪ good morning, i'm kristen sze. mill peta's police are locking for a shooter opened fire at a hotel killing a man and leaving guests under lockdown. we're told there was a party on the third floor and a dispute ended up in the parking lot. witnesses say they heard arguing then the sound of four gun shots around 10:30. the victim is described as a man in his early to mid 20s. police are unsure if he was a guest or just visiting the hotel. let's see how your morning commute is going top what you see out there? >> we have a stalled vehicle that's causing the backup here at northbound 101. you can see the heavy bumper to bumper traffic. out we go. here's a look at the san mateo bridge, traffic is slowly recovering coming into foster city. kisen. >> leyla, thanks high fire danger still in the mountains. about 23 1/2 hours from now. check aut this beautiful picture, the golden gate bridge showing the sunshine and the record high temperatures, two record high temp us around the bay area. let's check out the seven-day ♪ when you're ready come and get it ♪ ♪ nah nah nah ♪ nah nah nah ♪ nah nah nah scar jo behind the scenes of her upcoming super -- scarlett johansson, i'm sorry. huge super bowl ad, and we are showing this to you as a part of our big game adstravaganza coverage as we begin. >> yeah, a little inside look at this blockbuster commercial, and she's also talking about marriage a little bit, as well. what a year she's having. strange but i guess wonderful performance in "her." >> it's really good. it's really, really good. >> a lot going on. also coming up it's our winter edition of save or splurge. we'll show you one winter coat that's $800. the other is a tenth of that. we'll show you how you can save on some of the hottest looks of the season, robin. >> can't wait for that. when we took that wide shot, i know some people were like, is that you? >> you look beautiful. a different look for you. shorter hair. you have to explain to people why. >> we know in our line of work appearance is important, and it's important to anybody and everybody really, and i decided i was going to take control of one thing away from the cancer so i got my hair cut. almost impossible to explain as a correspondent and anchor for nearly 20 years i've gone through many looks, and my hair has always been a big part of them all, but when i was diagnosed with cancer last october, i realized there may come a day where that would dramatically change. it's been a month since beginning chemo. i've done two rounds so far with six to go, and while some days have admittedly been harder than others, keeping a schedule and going to work has helped me tremendously. with chemo comes hair loss and i am slowly starting to lose more and more each day, so today i am taking control of something that i have very little control of. i'm going to cut my hair very short. i've never done this before, but i want to say that i had something to do with how i looked, not the cancer, and i'm sharing this because i want all the women who have gone through it, who are going through it now and who will be going through it to know two things, that you're not alone and that you too can be brave. ♪ i want to see you be brave >> reporter: the national cancer institute estimates 2.8 million women in the u.s. are currently living with breast cancer. i knew i'd cry at least once. that statistic is not lost on me. i know i am one among millions going through this emotional and physical change. >> it's like a fresh start. a new chapter. >> now i can't talk. i wanted to thank everybody at rosan och rosano feretti because i was there for five hour, and they were so great to me to make sure i felt okay, gave me a private room because it is emotional when you cut your hair. george, you made a joke. even kids cry when they get their hair cut for the first time. >> you know how fantastic you look, right? >> thank you and i feel free and i feel empowered. robin -- >> you took control. you took control. >> you have to make these decisions. and you have so little control. >> how are you feeling? i know you said you have two of the treatments. >> i've had two rounds. i have six more to go, and, you know, i think for me, women, we're strong, and physically i've been able to handle it so far. i know it's going to get tougher. emotionally has been the hardest part. i've had a lot of anxiety and you have moments where you get mad and moments where you just start crying in the middle of the grocery store and other moments where today is a beautiful day and i have people who love me around me. i'm here and i'm going to stay here. >> yes, you are. >> you are not defined by your hair. >> thank up. i'll get used to it. >> you said it so well. there's some women that will not have treatment because they don't want to lose their hair. >> no. >> and what you're doing, what i see is that someone who is taking charge and someone who is saying, i do want to be here, and you are taking control, and it's a powerful message that you're sending -- >> thank you. >> -- to so many. >> really. real power. >> and one that i got from you. >> thank you. >> you're empowered. i know, i -- let's go out to ginger with the final check of the weather and a special guest. >> that's right. amy, you look so good. i want to go ahead and start, though, because we have a cocoa truck warming up the crowd in times square and, oh, would you look at this. it's dove cameron. how are you? you brought me some cocoa. dove cameron from the disney channel and some know you from "liv and maddie." that's your big stardom. >> yes. >> but you got a new friday night movie. >> friday night at 8:00 p.m. called "cloud nine." >> tell us all about it. what's the story about? >> "cloud nine" is an action romantic comedy focusing on the competitive world of snowboarding, and it's got this really great empowering message of nothing is impossible and believe in yourself. >> that's really nice, and that airs on friday, but i've got to 0 ask, you do something like this, i'm imagining there are a lot of stunts. did you do your own? >> lots of stunts. no, no, i was kept very safe. i had a litany of body doubles. >> i'm sure they're very talented. >> very talented. >> and also wanted to do a little toast to you. >> thank you. >> happy birthday. >> thank you. >> it's her birthday, 18. what do you do when you're 18 and you're a huge disney star? >> i'm hopefully going to get a great night's sleep tonight. i am going to treat myself to a little bit of gluten-free cake and go to bed. >> a fellow capricorn. i know already. gluten-free. yeah. we'll get some ice cream cake in a couple of minutes. thanks for being here. catch the movie -- you are just adorable, by the way. >> thank you so much. >> 18. can you imagine being 18 again? let's get to the forecast and talk about some twitter photos because we have some beautiful ones from the carolinas. look at that. a shot of what's happening in iowa. a rainbow as of yesterday after that rain passed. you can get an idea of what's happening out in idaho. beautiful nature shot. good morning to you. dry and warm in the southwest. i saw lots of pictures yesterday. look how dry and warm it stays. los angeles in the 80s all week. phoenix staying in the 70s and we've been tracking that that blizzard. we've got blizzard watches and warnings popping up in the plains. >> we're doing some selfies here. george, in to you. >> thank you, ginger. a treat, sneak peek at tonight's brand-new "modern familiar." watch alex cope with all the stress and pressure that comes with high school. >> so? >> i'm having a meltdown. >> a melt many down. >> a meltdown. i want to see a therapist. dr. gregly clark. highly recommended for teenagers. i booked a double session with him today. since you have the open house, i will be taking the bus. >> okay. >> that sounds good. she's like a self-cleaning oven. >> that's right. >> i agree with you. the writing, the acting is superb. >> and all airs tonight at 9:00, 8:00 right here on abc. we will be back with scarlett johansson. ♪ you know what that sound means as we count down to football's big day, oh, the year with our big game adstravaganza. scarlett johansson, you might say, putting -- >> yeah. see what i was forced to do there. no, you have the story and you sat down with her. >> yeah, two words for you, girl crush. she is incredible. scarlett johansson is generating a lot of buzz for her latest role but you won't see it at a movie theater. turns out she's a huge fan of sodastream, the at-home soda maker. so much so that she's agreed to be the new face of the company when it premieres its much anticipated super bowl ad. ♪ we've seen her sparkling on the covers of dozens of magazines and on screen in blockbusters like "the avengers." but now scarlett johansson is bubbling into a new starring role as spokesperson for sodastream, the at-home sodamaker. her first commercial premiering during a little show called -- this is airing during the super bowl. and, as you know, will you be tuning in and are you a big super bowl fan? >> i haven't understood the rules of football up until a couple of years ago when finally somebody sat me down, and they were like, okay, we're going to explain it to you. because i just thought why are they all running -- right. >> right. >> they're all running after it at the same time. there are no rules. >> reporter: the new ad is still top secret but in this sneak peek behind the scenes we see the superstar only wearing a bathrobe so we know drinking soda is going to look pretty good. when you were a kid you weren't able to book commercials because of your voice. >> yeah, it's funny. i could never book anything because of my voice as a kid as far as commercials went because i just didn't have that bubbly kid voice that sells, you know, products and toys. >> reporter: these days, of course, johansson's voice is world famous. it even has a starring role of its own as the computer voice that joaquin phoenix falls in love with in the movie "her." >> hello, i'm here. >> hi. >> hi. i'm samantha. >> reporter: off screen her real life love interest is french journalist roman durioch. you're spending a lot of your time in france, newly engaged. congratulations. you're planning a wedding. how is the wedding planning going? >> i'm not doing any wedding planning. >> you're not doing any wedding planning? >> no, that's far off my mind right now. but i'm planning "avengers 2." >> can you tell us about it? >> what can i tell you "avengers 2"? there's avengers in this. that's about it. i'm still planning on coming back as the black widow. >> and speaking russian. there you go so -- >> okay. >> a special place in my heart. >> the russians love natasha. i felt special when i was there. see, guys, i got the whole audience in the palm of my hand. >> it won't be out for another year but fans can drink in her latest work on super bowl sunday and watch the super bowl because there's a commercial in there that i heard you should watch. >> i'll be in the kitchen with the hot sauce. >> perfect. >> yet another reason to tune in to the commercials and, lara, we were just talking about her role in "her" getting a lots of oscar buzz nominated for an oscar. she's going to be the first person nominated who's not in the movie physically, just her voice. >> her voice is so soothing which i would only imagine will help sell -- >> and sexy, if i can say that on television. >> i think when you said girl crush -- >> you knew where i was going. >> you crossed that one a long time ago. >> thank you, bianna. appreciate it. >> we're going to teurn now to the new hollywood trend for looking good. abc's abbie boudreau tried out the latest treatments to see how they really work. >> reporter: from jennifer lopez and beyonce, mile-long lashes to "the real housewives'" electric facial. what is that? oh, my god. i'm just getting scared. hollywood stars will do just about everything to look camera ready on the red carpet. >> celebrities are always about how to look good and how to look good quickly. >> reporter: "glamour" contributing editor jane buckingham reveals her list of new beauty secrets to the star like the infrared sauna at the shape house in los angeles. >> i don't have any arms. >> reporter: seen here on "keeping up with the kardashians." >> i can't talk. >> reporter: so jane and i thought we'd give it a try. >> we actually have poison in our bodies as a result of how we eat so when you sweat here you let it all on the table. >> reporter: we change into our plastic moon suits and prepare to sweat. >> it is warm. >> reporter: under a blanket set at 165 degrees. in one hour she claims you sweat away calories. >> i'm getting real hot. i'm reaching my max right now. oh, my god. okay, get this thing off me. >> ooh. >> see the sweat. >> reporter: other trends, long, lush, mink lashes. >> they're not real mink, but they fell like real. >> reporter: amanda jacobellis of makeup mandy is a lash master so i wipe off my mascara and makeup mandy works her magic. >> oh, my gosh. >> a set of these could run you a steep $500. >> whoa. i have no eye makeup on at all. >> and one more celebrity trend on jane's list, the electric facial made famous when "real housewives of beverly hills" star kyle richards revealed her secret to smooth skin. >> we'll look ten years younger. >> reporter: yes, why not try this one too. >> so you'll get electrocuted but you're going to look great. >> reporter: with a healthy volt of electricity. >> it's a little much. >> reporter: the hannibal lecter looking mask -- >> love your suit. >> reporter: -- is supposed to give my facial muscles a workout. >> you're going to have a fresh-looking healthy glow and tighter skin. >> reporter: so does it work? oh, i can breathe. after a full day of pampering, i realize it's hard work keeping up with hollywood a-listers. for "good morning america," abbie boudreau. >> aaagh. >> reporter: abc news, los angeles. >> abbie. >> you could be electrocuted but you're going to look good. i did hear that, right? >> yeah. >> you did hear that. >> the full quote. >> yeah. >> thank you for that. coming up, splurge or save. one coat that you're seeing is worth 750, and the other is one-fifth of that. >> oh, wow. >> come on back. ♪ it's not about the money here we go, trying to save or splurge, people style watchers pulled together three of the hottest outerwear looks of the season. kate dimmock is here to see if we can figure out which coat is tje save, which is the splurge. you though that we want to hear about the saves. >> i know you do. all great coats. sometimes -- coats are something you wear every day. sometimes you want to make an investment. sometimes you just want to get on a cute trend. >> it's also -- yes, and it's so cold all over the country and a lot of places are having sales right now so a great time to know about what trends are really hot and no one knows better than you. let's begin with our first look. >> now, this is such a great -- i love the casual look on the weekend, you could dress it up or wear it with a little black dress and booties. a great, great look, right? >> i like the cinched waist. >> yes, it's just a little fur around the hood. a great look. >> i mean, i do love my big bubble coat -- >> this is a little sleeker look. >> okay. >> so, lara, what are you thinking? what are you thinking? one is almost $800 and one is a mere 75. >> i love them both, but that has got to be the expensive one. >> you know, you can't fool this lady. >> all right, go ahead. >> you know. there you go. i mean, the one you picked is from sam and it's almost $800 and then our friend from old navy is almost 75. >> all right. hey, will you turn around? that is really cute. >> pretty cute. >> all right. terrific. thanks, ladies. our next look is my favorite color, red. >> there you go. >> and you're actually saying that red could be considered a neutral. >> exactly. if you already have a neutral colored coat, this is a great choice, because red actually goes with everything. mixes well with every other neutral and i think there's nothing better on a gray day than a pop of color with your coat. >> yeah, okay, so we've got two coats here and the trend is -- kind of peacoat even though it's not double breasted. one is very expensive. >> yeah, one is, again, about 750 and the other coat is about -- is a little over 150. >> oh, gosh. i can't tell. i really can't tell on this one. this is the expensive one. >> well, you can't get every one right, lara. >> oh, no. really? >> turns out -- ladies. wow. look at the detail. walter baker, $154 and the other is karl lagerfeld exclusively for -- >> wow. >> if you feel like investing. >> thanks, ladies. all right. so i'm -- okay, here law of averages, i have to nail this one. so this is faux fur but cruelty free. >> it looks so good designers are jumping on the bandwagon making great, even luxurious coats with faux fur so this is a look i absolutely adore. and it's so great for evening. >> for evening, but you couldn't really wear this during the day, koko you? >> with jeans and cute booties. it's kind of really cute and chic. >> one is a -- one is a splurge and one is a save. i'll say this is the splurge. >> okay. >> next segment. next time. that is shopwasteland.com and the other is michael michael kors and that's only 250. >> can i touch you? >> this one really looks like -- to me. these are both great. >> i'm obsessed with the michael michael kors. >> it's faux fur and we thank you and thank kate dimmock, great trends, and for more on all the items in the looks that we just showed you, go to goodmorningamerica.com on yahoo! maybe you'll be right. we'll be right back. ♪ ♪ before you settle for another ordinary mattress, isn't it time you discovered the sleep number bed? the only bed clinically proven to relieve back pain and improve sleep quality. and right now, it's our lowest prices of the season. save $300 to $800 on our newest innovations. plus, 18-month special financing on all sleep number beds. only at a sleep number store, where queen mattresses start at just $699.99. sleep number. comfort individualized. xí covered california is howt californians can take advantage. we can help you get quality health insurance right now. to sign up, call 800-787-9159 or go to coveredca.com. you can also use our website to find local, in-person help. one of the biggest questions we get here is, "does covered california offer financial assistance?" yes. covered california is the only place that gives you financial help with your coverage. millions of californians will qualify. find out if you do. all plans include free preventive care. now, you might have a question about what that means. it means free mammograms, immunizations, cancer screenings, and more. it's a big list, and it's all free. so don't wait. without insurance, even a small medical issue can cost you big. call 800-787-9159, or go to coveredca.com, and get covered. ♪ how much better good morning america ♪ ♪ how much better yeah how much better ♪ ♪ yeah how much better can it get start morning with us super cool ♪ ♪ only place you'll find it here "gma" ♪ we are counting down to the super bowl kicking off the celebration with "gma's" ultimate game day grub contest. you have a recipe, you send it in, and you could be coming here to new york, not to go to the game but to make it for us. >> right here on "gma," the oscar nominations live. see you then. >> have a great one. i'm kristen sze. a red flag warning remains in effect until tomorrow morning. warning of extreme fire danger in the hills. it's not an unusual site for jan. meteorologist mike nicco has a look at the forecast. >> it's the first alert issued for december. record highs maybe not so much but it's the breezes up in the hills. low to mid 70s in the hills today. fire danger lasts through 8:00 tomorrow. we have a crash at the toll plaza southbound side. you can see some heavy traffic there. also quite busy announcer: it's "live! with kelly & michael." today, star of the new movie, "ride along," kevin hart. and from the comedy "suburgatory," ana gasteyer. lus, munchie makeovers as we continue to "kick start the new year: diet edition." ll next on "live." now, here are kelly ripa and michael strahan! [cheers and applause] ♪ michael: hey, hey.
children come out, and tears, and scared. it just breaks your heart. >> reporter: a school shooting shakes a middle school. >> two students wounded. >> the suspect has been taken to a psychiatrist hospital. >> the young man put the gun down and raised his hands. >> whoa, whoa stop stop. >> dramatic new video shows crews responding around the coroner says ye men huang was run over. >> we clearly let the voters down. >> christie started the speech by saying, sorry, i'm late, but i can't control the traffic. >> police raid justin bieber's home, part of a vandalism probe, and they arrest one of his friends. >> i never thought it would be little za. >> red flag fire warning has firefighters across california keeping a close eye on several small wildfires today. >> the times reports that nsa spied on millions worldwide, all without a connection to the internet. >> for the win jsh! and it's good! arkansas in overtime. >> australian fisherman has seen his stunt nearly go wrong when he tried his version of shark diving. >> and all of that matters. >> the amount of experience you have, it's a help to the colleagues and help to us and we're glad that you're here. >> thank you. you're very gracious, and now i have a question. >> please. >> on "cbs this morning." ♪ you're killin' the workin' man ♪ ♪ who's stuck in this gutter ♪ ♪ left in the traffic jam down in jersey land ♪ this morning's eye-opener" is presented by toyota. let's go places. welcome to "cbs this morning." good morning, norah. >> good morning to you charlie. a lot ahead. >> a nice birthday for bill plant. >> yeah, happy birthday to bill. >> video obtained by cbs news raise new questions about the response to the asiana airlines flight. it hit a seawall at the end of the runway at the san francisco airport. two people were killed in the initial accident. >> one 16-year-old victim survived the crash but then died after two fire trucks ran over here. anna westerner is at dallas-ft. worth. good morning. >> reporter: good morning, norah, and good morning to you, charlie. the death of ye mengyuan has prompted additional training for firefighters at san francisco internationality airport including 40 to 80 hours of advanced training here at dallas-ft. worth airport. we obtained that video from a source close to the teenager's family. >> whoa, whoa, whoa, stop, stop. >> reporter: 50 minutes of helmet footage and video from a fire truck show first responders repeatedly warning that a victim was on the ground near the jet. that was 16-year-old ye mengyuan. >> hey, a dead body there. >> reporter: the video depicts a chaotic scene as they assess the situation. >> they say everybody's off. just don't go in there. anybody in there now, they're dead. >> reporter: earlier, just four minutes after the crash, the video shows a firefighter directing a truck driver around ye. at that point, according to the coroner, she was still alive. the truck moved on and began spraying the plane with foam. some of which partially covered the teen. 15 minutes later, the vehicle drove over her body. ten minutes after that, a second truck did the same. ye's family has filed a legal claim against the city. justin green is one of the family's attorneys. >> what appears to have happened is at least five firefighters saw her curled up in a fetal position by the wing of the aircraft. nobody checked her vital signs. nobody determined whether she was alive or whether she was dead. and nobody moved her or protected her from where she was. >> reporter: the san francisco fire department told us they can't comment on pending litigation. but in december, assistant deputy chief dale carnes testified about ye's death during an ntsb hearing in washington, d.c. >> this is a matter of certainly not of us being careless or callus, either one. it was the fact we were dealing with a complex and dynamic environment. >> reporter: san francisco fire officials also told ntsb investigators that there was no formal policy on maneuvering or positioning fire trucks at accident scenes like the asiana crash. they say they are now working on strategies to try to reduce the chances that firefighting vehicles could impact accident victims at those scenes. now back to you. >> so disturbing, anna. thank you. and a 12-year-old new mexico boy is in a psychiatric hospital this morning. he's accused of bringing a shotgun to school and opening fire. two students were wounded in yesterday's attack at a roswell middle school. police say a teacher's quick response prevented more bloodshed. bob orr is in washington. bob, good morning. >> reporter: good morning, norah and charlie. it turns out there may have been a warning before that shooting. police now say they were told the alleged 12-year-old gunman may have cautioned some of his friends not to go to school. residents of roswell held a vigil tuesday night for the two victims -- 13-year-old kendall sanders was shot in her right shoulder and is in stable condition at a lubbock, texas, hospital. the other child, an 11-year-old boy, was critically wounded. he'd been shot in the face and neck. >> i ask all new mexicans to please join us in praying for the families, praying for the kids, making sure that they reach out and talk to people. >> reporter: law enforcement sources say the alleged gunman a 12-year-old 7th grader walked into the school's gymnasium around 7:30 in the morning and opened fire, used a sawed-off shotgun that'd been concealed in the instrument case. >> we were sitting at the top of the stairs and he was right there, and i saw him trying to get on the bleachers, and then i saw, like, blood splatter and then i saw he -- he like fell onto the floor. >> reporter: the shooting lasted only seconds. witnesses say the alleged gunman was confronted by a teacher, john masterson, who convinced him to surrender his weapon. masterson's son james told cbs news, my dad is an extremely humble man, and honestly doesn't see himself as a hero, but merely as a teacher doing his job. police officials say the investigation is ongoing. >> we're in the process of serving three search warrants. one is for the individual, the suspect's locker. the other one is for a bag. and the third one is for a residence here in roswell area. >> reporter: by last night, students from the middle school had been reunited with their parents who had waited through the day at a nearby roswell mall. >> it breaks your heart, you know, for them to have to witness this and be a part of such a tragedy. >> reporter: now it's clear there was at least some preplanning in that attack, because the weapon had been cut down, hidden in a case. norah, police still don't have a clear motive, and so far, they've none r not been able to confirm early reports that the shooter may have been bullied. >> thanks bob. a new poll shows chris christie may be weathering the traffic jam scandal. 50% of the voters believe he did not know his inner circle was involved. 41% believe he did know. the "wall street journal" has photos of the governor. the pictures show christie with two political appointees involved in the scandal. they were taken while the lane closures were causing huge traffic tie-ups. christie addressed the controversy during yesterday's state of the state speech. >> the last week has certainly tested this administration. mistakes were clearly made, and as a result, we let down the people who are entrusted to serve. i know our citizens deserve better much better. now, i'm the governor, and i'm ultimately responsible for all that happens on my watch, both good and bad. now, without a doubt, we will cooperate with all appropriate inquiries to ensure that this breach of trust does not happen again. >> the new political director john dickerson joins us now. good morning. >> good morning. >> how is governor christie handling this? >> well, you could almost hear the page turning in that speech yesterday. he is basically -- the governor is now saying you know, this is important but -- here are the other things that i care about. education. crime. and what he did in that speech yesterday is say i'm going to focus on those and we're not going to let politics get in the way. what was also interesting was this sort of behavioral modification he's gone through. he didn't use the first-person singular, talking about himself. he talked a lot about "we" and bipartisanship. one thing that will be interesting to see is as he goes forward trying to fight for these programs will he -- will he change the way he has been effective in the past that brusk manner he used to boast about, having his wings clipped a little bit. >> you talk about the brusque manner and i've never seen them test a bully meter, but they've done that in new jersey and voters think he's more of a leader instead of a bully, including democrats. >> that's got to be good news for the governor. he gave that press conference and it went for almost two hours. and again, was very subdued, and the voters of new jersey one of the things you'll notice in that poll, that appears to be happening, a rallying effect among republicans. so they're kind of coming to his side here. and for now, it looks like he's you know weathered that first wave of public opinion. >> yeah which is exactly what i was going to ask. if there's nothing else coming out, it looks like he's going to weather this. >> right. now, the problem for him is there are so many investigations going on and so many questions being continually raised. of course that's what the speech was about, was an attempt to find a sort of formula for dispatching with each new wave of questions about his story and whether it holds up and the people who worked under him so that he can say, look i'm trying to do my job, which is probably what the voters of new jersey want to hear, anyway. >> all right, john, thank you. and the nsa is finding new ways to spy on foreign adversaries and take on cyber threats through a program code named "quantuum." "the new york times" says the nsa planted software in nearly 100,000 computers worldwide. in some cases, the agency used secret radiowave technology to gain access when computers weren't connected to the web. the targets include china's army, the russian military, and drug cartels. president obama is expected to endorse reforms to the nsa in a speech on friday. the way we use the internet could change after federal appeals court struck down net neutrality rules. the judges say the regulations over online content were overreaching. the decision opens the door for internet providers to block visits to websites and could also slow down sites like netflix and google and even charge users for access. the rules did not apply to wireless providers. and red-flag fire warnings are up in much of central and coastal california. they indicate dangerous explosive wildfire conditions. bill whitaker looks at some of the fires already responsible for serious trouble. >> reporter: the 40-ache wildfire reported on kimball island near san francisco began as just a ten-foot brush fire. but intensifying winds quickly spread the flames across the island burning several homes and engulfing at least one building. local fire teams joined forces with the u.s. coast guard to evacuate the island. no one was hurt. meanwhile, in southern california another brush fire was racing up a cliffside along pacific coast highway in malibu. >> we could see the flames from our house, and we could see the helicopters flying really low over our backyard. >> reporter: at least 160 firefighters and four watr-dropping super-scooper helicopter raced to put that fire out as it burned feet away from multimillion-dollar mansions. residents, like stacy santos, did what they could to battle the flames. >> flames are coming up, and friends are helping with fire extinguishers and hoses and everyone's safe. so we're good. and they're doing a killer job still. >> reporter: the firefighters say this latest round of wildfires is a direct result of severe drought conditions throughout the west coast that have extended fire season longer than normal. >> and the lack of rain and the unseasonably dry conditions just makes fire conditions -- just as bad as in the middle of fire season. >> reporter: for "cbs this morning," bill whitaker, los angeles. new attacks in iraq killed more than 40 people. the violence in that country is at its deadliest point in seven years. liz palmer is in baghdad. elizabeth, good morning. >> reporter: good morning. well, there are multiple bombings today by midafternoon, there had been five and counting. the biggest one outside the capital, at the funeral of a government supporter, the rest here in town. one went off in kharada, a very busy commercial district not far from where i'm standing. it was a car bomb and it went off in an area where people would be shopping or going to and from work. the others were scattered all over the city, mostly in shiite areas. some of them car bomb some of them just explosives left in backpacks. now, this bombing campaign is especially traumatic because baghdad is in effect an armed camp. there are military and police checkpoints, not only on the highways leading into baghdad, but every few yards inside the city, so some people are asking how do the bombers get around and not get caught? nobody knows who planted the bombs yet. but it does appear to be the work of a group that was known when the u.s. was here as al qaeda in iraq. charlie, norah? >> all right, elizabeth, thank you. florida police say a deadly movie theater shooting is not a case for the state's stand your ground law. curtis reeves is charged with second degree murder. he allegedly shot and killed chad olson after an argument about texting inside a theater on monday. reid claims he fired his gun out of fear for his safety. the nfl is reeling this morning after federal judge in philadelphia blocked a settlement of injuries from concussions. most of the 765 million would be used to help 20,000 retired players. james brown, who's with "nfl today on cbs" joins us from philadelphia. james, good morning. >> good morning, charlie and norah. good to hear you guys. >> so what do you think of this ruling? >> well, i'm loving what the judge is doing, judge anita brody, saying, prove it to me i'm not convinced that the money being set aside is enough to cover at these significant award levels over the life span of this award for the 20,000 players, even if only 10% of that population were to make claims if you will. she's not certain that there's enough to cover this for the lifespans. >> j.b., what are the players saying? >> norah, there are a number of players who, i guess, there's probably a split, some are saying some money is better than nothing. let's get it, because we've been hurting for a long time. and as importantly, the families. others are saying be because there was a breakaway group of players who sued the league reportedly for some $2 billion, they're saying the award level right now is woefully low, norah. >> how will this lawsuit play itself out? >> you know what, judge anita brody is one who is very, very keen with the detail. it will be interesting to see, and a lot of players have a raised eyebrow just to make certain that their lawyers were arguing properly and strongly on their behalf, so they're waiting to see if the numbers prove out the way the judge says that they should. >> all right, j.b., thank you. >> by the way -- >> yes. >> -- keep in mind norah, i'm heading to the gym to work out, because i understand there's a guy from san francisco, when he scores a touchdown, you love the fact that he kisses his bicep, i'm heading to the gym. >> all right. j.b., you're welcome here anytime, buddy. see you soon. >> we may see more of that on monday. time to show you some of the morning's headlines around the "globe," the "washington post" looks into the investigation of the southwest jet that landed at the wrong missouri airport. the airline says a third person was in the cockpit with the two pilots on sunday. he is a company dispatcher who had the authority to be there. "the chicago tribune" looks at a new warning of acetaminophen. they're asking doctors to limit the prescriptions in combination drugs, and the concern is accidental overdose. too much acetaminophen can cause liver failure. >> "the los angeles times" says the alleged mastermind of the 9/11 attacks wrote a manifesto of islam. the document quotes president george w. bush and pope benedict. israel's haaretz apologized to secretary of state john kerry, who had called the peace efforts messy, and he hoped kerry could get a nobel prize and leave them alone. the united states condemned the comments. the defense minister later expressed appreciation for kerry's efforts. and the senate failed to extend long-term unemployment benefits. more than 1 million americans stopped getting checks in december. the bipartisan talks stalled we are looking at more record-breaking temperatures around the bay area under an unusually strong ridge of high pressure. that is sending the jet stream well to the north. that means the storms are staying far away from the bay area. still, we are going to see sunshine to the coastline, temperatures almost 70 degrees in pacifica today. about 74 a record in oakland. 74 also in san jose. temperatures tomorrow slightly cooler but still some records. cooling over the weekend, but staying dry. >> announcer: this national weather report sponsored b this national weather report sponsored by toyota. let's go places. france's president fights to save his country's economy, and his privacy. >> mark phillips is in paris. >> reporter: the grim is still hanging over paris over france's economic affairs and over the affairs of the heart of its president. a murky forecast indeed coming up on "cbs this morning." >> the news is back in the morning here on "cbs this morning." stay tuned for your local news. 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[ female announcer ] pore refining cleanser. neutrogena®. your realtime captioner is mrs. linda marie macdonald hi, everyone. good morning. 7:26. i'm frank mallicoat. get you updated on some headlines around the bay now. a san francisco community rocked by an explosion last night. police detonated a bomb found in the sunset district after getting reports about a suspicious device there. milpitas police investigating the city's first homicide of the year. police say a young man was shot in the face in the parking lot of the executive inn on dempsey road last night. and effective today, a large tour bus -- large tour buses are banned from the alamo square area of san francisco. people living near the painted ladies in the area have been complaining about noise and pedestrian safety issues because of all those tourists buses. they are no more. traffic and weather, weather, coming up after the break. anncr: at jennie-o we heard of a place in iowa where every thursday people ride 10 miles for tacos. we thought we'd show up and surprise them with a better kind of taco made with jennie-o ground turkey cooked thoroughly to 165. i feed my kids turkey tacos over regular tacos any day. i think they are light and they are just fresh tasting. yeah. when i eat well, i feel well. anncr: it's time for a better taco. the tacos tonight were pretty much perfect. make the switch. look for jennie-o ground turkey in a store near you. good morning. we have better news now for traffic and commuters out in the east bay. westbound 24 one lane of the center bore had been closed. that is now reopened. so all lanes are clear. unfortunately, we are still seeing good sized backups at least to the acalanes exit but sluggish leaving walnut creek. better news in oakland now. oakland hills northbound highway 13 at thornhill drive. the off-ramp had been closed because of a very large downed tree. they just got that traffic alert lifted and everything is moving at the speed limit. that's traffic. here's lawrence. >> those winds whipping over the mountaintops again. we have a nice live shot from your mount vaca cam. and yeah, the wind kind of shaking the camera just a bit there. lots of sunshine coming our way as high pressure sits overhead. again, it looks like another round of some record-breaking temperatures outside by the afternoon. numbers as high as 74 in oakland. >> 74 in san jose. and 74 also in redwood city. one, two, three, four. ♪ ♪ drivers with no place else to go and the press conference went on and on ♪ ♪ it was longer than one of my own damn shows ♪ ♪ make up when i don't know when this will all end but till then you're killin' the workin' man who's stuck with governor chris christie leading the new jersey traffic jam. >> fallon does a good bruce. >> and bruce springsteen does a good bruce. i love seeing bruce springsteen there. coming up this half hour the cold may be other but ships are stuck in the ice. we'll take you along as the coast guard breaks through the ice. blue 50 years later, a revealing look how thousands paid their respects to jackie kennedy. see how one letter connected two tragedies together. that's ahead. and french president francois hollande is proposing to fix the matters in his currently but there's more he's concerned with hollande's first lady. we have our own mark phillips. mark, good morn. >> reporter: good morning, norah. good morning, charlie. well, by now everyone knows that francois francois hollande has been caught between france's economics and the hard places if you will of his murky love life. which would he talk about at his news conference? he picked the rock. as fascinates as gdp figures might be they wanted to know more about his alleged affair. he refused to talk about it. he said everyone has their personal affairs. these are painful moments but personal affairs should be treated privately. would tryeiweiler still be the first lady on the visit next month. wait and see, hollande says. or would judy gayet, hollande snuck off to visit in the middle of the night be his first girlfriend. my inclination is total. hell hath no fury like a poll politician politician, you might say. though anchorwoman valorarie says he has problems. >> reporter: so who is judy gayet. she's an actress known in france and nowhere else and a long time supporter that campaigned for him in 2012. he's knowledgeable she says and he can talk about anything except, it seems, about her. and how do the french people feel about this ongoing drama? danielle grall in america. >> they're totally huemiliatedhumiliated. they feel like they're living in italy. >> reporter: well hollande went on for 2 1/2 hours. he was asked about his affair. sooner or later, though, he's going to have to come clean or it's going to be a pretty awkward visit to washington next month. charlie and norah? >> indeed it will be. >> somehow i love this story. >> listen. i think some of the best parts of that piece is with the women comments. >> elite french. are embarrassed by this. >> living in italy. thank you, mark. the ice is crippling the ships this morning. the coast guard is working arou mills mills before the pathways close for the season. >> if you absolutely positively need iron ore for your company these are your friends. >> it impacts the great lakes region and really the global economy. >> reporter: without the coast guard ice breakers such as the mackinaw, these freighters would never make it through the waters on these cold winter days. it doesn't just impact the freight companies. it impacts the plant and the workers expecting to get the coal and the ore that they're carrying. subzero temperatures arrived early this year. one freighter got so trapped in the ice it took the coast guard ice breaker 17 hours to free it. what was it like out here last week when it was so cold? >> it was a challenging difficult time. boats were getting stuck. it was hard work. >> slow going. >> very slow going. >> reporter: most ice breakers use their weight to break the ice. the 3,500-ton mackinaw does too. it can churn up the ice like a blender. but the thick iegs made for a charging few days. was it fun or nerve raking? >> definitely a combination of both. >> reporter: this seaman is one of those range finders who had to stand outside in negative 18-degree temperatures to measure distances. >> reporter: what was it like being out here? >> any exposed skin was burning. >> your eyes started watering? >> yeah. your eyes started freezing shut and your lashes. >> reporter: despite the weather they will be out here all described it as living in an earthquake 18 hours day. >> incredible reporting, don. thank you. and justin bieber faces controversy after the sheriff's investigators went to the kal's pop superstar home. kevin frazier has more. >> good morning. it's a new story but the same old story. a bad decision made by the 19-year-old pop star. there's a big difference this time because the police are involved. bieber stands accused of causes thousands of dollars of damage to a neighbor's home and could be facing felony vandalism charges. one dozen l.a. county sheriff's deputies descended on justin bieber's hill-top home on tuesday morning. they were there to collect evidence that the pop star allegedly pelted eggs at a neighbor's home during an alleged argument last thursday. it shows eggs on the imported wood and exterior. the damage is estimated at around $20,000. any damage over $400 elevates the crime to a felony. >> i get that the eggs don't seem that significant. the eggs rise to a felony. there is a victim in this case that had extensive damage done to their home. >> reporter: investigators report that bieber was cooperative and wasn't arrested however, another person in his home was arrested rapper little za for possession of narcotics. he's had a number of complaints by his neighbors who complain about high-speed driving and noisy parties and for the past year bad press about bieber's past behavior has been ongoing from showing up hours late to concerts along with drugs on his tour bus. but despite his antics, the baby-faced singer remains one of the most popular singers. his video has racked up more than 32 million views since appear last month. he earned $58 million last month. bieber's alleged victim jeffrey schwartz did not want to appear on camera but he told the news he finds his behavior bizarre and sometimes dangerous. bieber was detained by detectives for about 30 minutes. the investigation is ongoing. now, sheriff's deputies say they didn't raid the house to send a message but they do hope this might prompt a change in bieber's behavior. we reached out to his agent and record label and so far no comment. norah, charlie? >> all right kevin. thank you. and ahead, words that come forlted the first lady in her darkest hours. thousands of newly released evidence of condolences for jackie kennedy. that's next on "cbs this morning." if you have moderate to severe rheumatoid arthritis, like me, and you're talking to your rheumatologist about trying or adding a biologic. this is humira, adalimumab. this is humira working to help relieve my pain. this is humira helping me through the twists and turns. this is humira helping to protect my joints from further damage. doctors have been prescribing humira for over ten years. humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. for many adults, humira is proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma or other types of cancer have happened. blood, liver and nervous system problems, serious allergic reactions and new or worsening heart failure have occurred. before starting humira , your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b are prone to infections, or have symptoms such as fever fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your doctor if humira can work for you. this is humira at work. 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[ male announcer ] mcdonald's mccafe coffee made just the way you like it -- with an egg white delight mcmuffin. so, how do you take yours? this morning we're getting new insight into how the world came to jackie kennedy's aid after the assassination of her husband. the jfk president's wife received messages. they came 50 year after she made her first public comments following the murder. >> the knowledge of the affection by which my husband has been held by all of you has sustained me. >> reporter: jackie kennedy kept some 7,000 condolence letters in her collection. notes from people all over the world. an italian artist offered a bust he made of the president. a teacher sent a photo of a boy named jfk she met in africa. this letter came from maxine mcnair from alabama. when the tragic news came across the airways, again, she wrote, my heart said it isn't true it didn't happen. mrs. mcnair's daughter denise and three other girls had been killed five months earlier in the bombing of the 15th street back tiflt church,baptist church. the president's widow saved many letters from children. 13-year-old bob thorn felt partly responsible for the tragedy. it was kind of my fault, he said revealing he'd received a c in american history at school. after this tragic loss i realized that i could do plenty to help my country. next term i promise you i'll get an "a." boy scout explorer post 187 offered to help you move into your new apartment when you come here to the city of new york in the fall. mrs. kennedy is deeply touched, her secretary nancy tuckerman wrote back declining the thoughtful offer. >> all of you who have written to me know how much we all loved him and that he returned that love in full measure. >> reporter: 50 years ago the first lady promised the letters would be saved in the kennedy library where they're now in archive of america's grief. for "cbs this morning," anthony mason, new york. >> absolutely beautiful. >> yeah, for the woman especially who lost her daughter in the birmingham bombing. >> absolutely. and each of these letters included a response from mrs. kennedy's office. each of those. and what an incredible treasure there. >> the other thing that's interesting, we will not know i think, until 2067 the transcript of the interviews she gave right after the assassination. >> yes. it will be a long time before more of that. there's more inside the kennedy library th we are looking at more record-breaking temperatures around the bay area under an unusually strong ridge of high pressure. that is sending the jet stream well to the north. that means the storms are staying far away from the bay area. still, we are going to see sunshine to the coastline, temperatures almost 70 degrees in pacifica today. about 74 a record in oakland. 74 also in san jose. temperatures tomorrow slightly cooler but still some records. cooling over the weekend, but staying dry. five years ago today, captain sully sullenberger and first officer jeff skiles became american heroes. they'll join us in studio 57 to share the story of the miracle on the hudson and the bond they formed with the passengers. that's ahead only on "cbs this morning." 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[ hans ] warm, flaky, gooey. toaster strudel! the nation's stores could be going to new lengths to stop cyber thieves but what will you have to do? how the future of credit card security could include disposable number. that's ahead on "cbs this morning." ♪ ♪ ♪ ♪ ♪ ♪ [ male announcer ] build anything with the new toyota tundra. toyota. let's go places. ♪ ♪ [ female announcer ] aaah, the amazing, delicious cinnamon and sugar taste of cinnamon toast crunch and cold milk. ♪ ♪ cinnamon toast crunch. crave those crazy squares. 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[ female announcer ] symbicort is for copd including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems. symbicort may increase your risk of lung infections, osteoporosis and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking it. [ man ] with copd, i thought i'd miss our family tradition. now symbicort significantly improves my lung function, starting within 5 minutes. and that makes a difference in my breathing. today we're ready for whatever swims our way. ask your doctor about symbicort. i got my first prescription free. call or click to learn more. your realtime captioner is mrs. linda marie macdonald good morning, everyone. 7:56. i'm frank mallicoat. get you updated on some headlines now around the bay area. police investigating the first homicide of the year. a man shot to death in a hotel parking lot. it happened last night. the victim believed to be in his 20s. not clear whether he was a guest at the inn hotel on dempsey road there. the suspect may have fled in a dark sedan. exclusive on kpix 5, never- before-seen video of the aftermath of last year's plane crash at sfo. the video provided to cbs news by a source close to the family of a chinese teenager who was run over by a san francisco fire truck at the crash scene. that family is suing the city of san francisco over the girl's death. got your traffic and your weather coming up right after the break. xí check it out everybody. our kids are out of their rooms. because we've got the kfc favorites bucket. 10 pieces, any recipe. twelve ninety-nine. everybody gets what they want. we love this new extra crispy boneless. he's taller than i remember. ♪ ♪ good morning. we have a solo car injury crash southbound 280 approaching sand hill. and there are some delays behind it. the fast and the slow lane are both blocked. unfortunately, 101 is also seeing heavy traffic in the same area. better news now in the oakland hills northbound highway 13 that off-ramp had been completely closed approaching moraga thornhill. a large downed tree. they were able to re-open that ahead of schedule re-open within the last half hour. so now no big delays leading toward montclair and bay bridge backed up into the maze. that's traffic. here's lawrence. skies mostly clear again today get ready another round of record-breaking temperatures outside. windy over the mountaintops. we have red flag warnings up again in the north and the east bay hills and the diablo range. unusually strong ridge of high pressure going to send these temperatures up for the record books. 74 degrees in oakland. 74 san jose. 69 in san francisco. slightly cooler tomorrow. cooler but dry over the weekend. female announcer: he needs a firmer tempur-pedic... she wants a softer tempur-pedic... they both get what they need with the new tempur-choice at sleep train the first tempur-pedic with multi-zone comfort control, featuring customizable shoulder, back and leg support on each side. plus, get four years interest free financing. try the revolutionary new tempur-choice today! it's the perfect choice... ...for both of us! ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪ ♪ it is 8:00 a.m. in the west. welcome back to cbs this morning. new video obtained by cbs news shows the chaotic aftermath in the crash at sfo. and "sully" sullenberger and first officer from flight 1549 are here. we will remember the miracle on the hudson five years ago today. but first on january 15th 2014 here is a look at today's eye-opener at 8:00. >> the death of ye meng yuan prompted additional training for firefighters at san francisco international airport. >> videos obtained by cbs news talks about the response to the crash. >> they were told the alleged 12-year-old gunman may have cautioned some of his friends not to go to school. >> they always come together as they always do when they have a crisis. >> how is governor christie an handling this? >> right now he weathered that first wave of public opinion. how do the bombers get around and not get caught? >> some are saying some money is better than nothing, and others are saying -- caught between the rock of france's economic crisis and what will he talk about at his news conference? he picked the rock. and these freighters would never make it through the waters on cold winter days. >> they are still fighting for a little respect. i can relate to that. i am charlie rose with gayle king and norah o'donnell. a newly revealed sreul yo brings questions about the response to the crash in san francisco. cbs obtained video from a helmet. >> ye meng yuan can be seen laying on the road still alive, and an attorney for her family said they never checked her vital signs or attempted to move her. >> we expect to hear from the family of a school shooting suspect, the 12-year-old boy shot two classmates yesterday, and one of the victims is in critical condition. the suspect is under psychiatric observation. the boy brought a sawed off shotgun to school in a band instrument case, and a teacher convinced the student to drop the gun. and then big concerns after a cyber attack exposing credit and debit card information, and other retailers were hacked over the holidays. and a columnist from yahoo said she would not be that worried. yesterday i got a call from my credit card company that said my card had been used january 12th in a foreign country, and they said i saw you on the news and knew it was not you so my credit card was shut down so when you say we should not be worried, i think, really? >> you won't be held responsible for anything. >> is that true. >> the credit card companies are more worried about your number than you are. and the second reason the target thing, it was an unusual method. usually they steal credit card numbers online and this was solve wear installed at the cash registers by an insider that collected the data of everybody that swiped the card in stores and that's an unusual thing. there's nothing you can do about that. there's nothing about changing your password no advice will work against that kind of attack. you are helpless so enjoy the ride. >> she's not smiling. >> well not just target but also neiman marcus and three other known retailers could have been affected. what could it mean for your personal security? >> on the back of the credit card is a strip of magnetic tape, and one contains your name and expiration date and they stole everything you need to make a transaction your name the little code and the expiration date. and the united states is the last country not using credit cards with a little chip. in europe, when you buy something with a credit card you enter a four-digit pin every time you buy something. >> why aren't we doing that here? >> because it's an expensive changeover, and every little retailer and restaurant would have to change your system. but we should. >> why are they stealing this information and who are they? >> eastern european teenagers, some of them and they make a point, and to make a political statement or bring down the man. there's also a very large stolen credit card racket. there are private forums on the internet where you sale the credit card numbers, and obviously the person that steals them is not the person going out to buy a stereo on your account. they would be nailed instantly. they sell them to other people. it's a whole network that people that do that. >> it's a different kind of political statement flying into the trade center -- >> in no way do i mean to equate those two things. >> what can we do to stop it? >> well target adopted a system, for online shopping you can protect yourself if you are, again, worried about it by using disposable credit card numbers. your credit card company and bang may offer it. it's a credit card number you may enter to buy something online once and then the card is not good any more. >> that's silly. nobody will want to use a credit card if it comes to that. >> if somebody gets your credit card number, it's not going to cost you anything. it's an unconvenience, i admit, but nothing to lose sleep over. the academy award nomination nominations are just one day away now. we will be joined to talk about the oscars and the his new interests in television. that that's coming up on "cbs this morning." and our flavorful cilantro jalapeno hummus. power bowls from panera bread - power up today. 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[ female announcer ] pillsbury crescents on their own are fantastic. but add some sauce, pepperoni and cheese and fold up the crescent dough and presto, tuesday night just became crescent pizza pocket-tastic pillsbury crescents. make dinner pop. ♪ ♪ [ male announcer ] when you feel good, no one is immune. emergen-c has more vitamin c than 10 oranges plus other antioxidants and electrolytes to help you come down with a serious case of healthy. emergen-c. making healthy contagious. five years ago today us airways flight 1549 made an emergency landing like no other. its runway new york city's icy hudson river. all 155 people aboard survived that day on what quickly became known as the miracle on the hudson. we'll talk with captain sully sullenberger and co-pilot jeff skiles. but first jeff pegues. good morning to you. >> reporter: good morning, norah, gayle and charlie. the plane came from the north, landed here on the hudson rink floating down on what was one of the coldest days of the year. you talk to the survivors and they will tell you how fortunate they feel. but if you dig a little deeper, you'll hear how the miracle on the hudson still haunts them. >> it's still emotion honestly. it's still there. >> reporter: barry thinks about what have happened. >> it's heart-rehn hfheart-rehn. ing heart wrenching that my children could not have had a dad or a mom. you know. it's still hard. >> reporter: the images of that day still live in his memory and although remembering is painful at times, it also takes him to a better place. >> i still have nightmares sometimes about it but i also realized in my waking hours that i'm one of the luckiest guys on earth. >> he said, look we're going down, brace for impact it's coming down. >> reporter: on january 15th 2009 -- >> this is a cbs news special report. there's been a plane crash here in new york city. >> reporter: us airways flight 1549 narrowly avoided a disaster, flying just over the george washington bridge the plane crash landed in the icy water of the hudson river. >> all i had to do is take when stup forward. i took a step forward and looked back to see if my body was still in the seat, you know, because i didn't know if maybe i was dead. >> reporter: being the survivor has changed everything for him. most importantly perhaps his outlook on life. >> five years later, is life better? >> i think so. i'm experiencing the things in life that i, you know maybe talked about but i didn't do. i'm doing them. i'm just so proud and happy, you know, that a 60-year-old man can get to the top of kilimanjaro and can hike 20 miles a day with his daughter and do all these things and i plan on continuing to do it. >> reporter: barry leonard says he has a bucket list and a high pressured job as president and ceo of a company, but he tries to bring balance to his life by checking goals off that bucket list every year. gayle, charlie, norah? >> all right. jeff pegues, thank you. now the men who brought the plane down safely, captain sully sullenberger who's a cbs news safety and aviation expert and co-piet co-pilot jeff skiles. good morning to you both. listen. it was 58 seconds from when the birds hit the engines anded when you took the plane down on the water. did you think you were going to survive this or didn't you know? >> it was a complete sur priechltz one we'd never trained for but i was confident at the outset that i could find way to solve the problem in that time that we had. >> jeff, there's been a debate. i heard friends say was it a heroic act or was it something that any well trained pilot could do? what do you think about that? >> certainly we have -- you know we're very well trained and we have that to fall back on in these kinds of situation, but obviously any kind of circumstances could lead to a different result. and the one thing i can tell you is that i'm very happy to have been flying with captain sullenberger on that day. >> and a lot of people. >> and i could not have had a better colleague. >> had you met before? >> three days before. i had never seen him before which is common. but we've been trained where we're interchangeable. this was his first trip on an airbus after having been trained on it after having transferred from the 737. so he was brand new to the airplane. >> describe again that moment when you made the decision when you said we're going have to land on the hudson. >> i chose the least bad option but i was happy to have it in this area since we couldn't glide as far as a runway. it was the only o'place to go that could be made a runway. by choosing that then of course we had to be rescued on the river by landing where we did it would be between the ferry terminals where rescue would be possible and the first ferry arrived in four minutes. >> did you ever have a breakdown? you can see it still haunts the passenger. every time we see you, you're always so calm cool, and collected, which is good as a pilot. but did you ever have a moment where you thought oh, my god i can't believe we survived or did you ever cry? >> no. but i called home late that night and talked to laurie for a subsequent time and i said i think our lives had changed forever. i didn't know exactly how or how much. i knew in the first seconds that this was going to be a life-changing event. >> okay, but life-change because you knew there would be enormous attention on you or because something happened in the thing etc.? >> both both. it was one of those events i knew it was going to be unlike anything i was going to experience. it with us going divide my life in the behalf andfore and after. but i knew it would provide opportunities to have a voice about the things we care about and have cared about our whole lives. >> what have we learned in five years about safety and flying. >> a lot but not much because of this fliechlt actually very little has changed because of this flight. in fact, in the final report that the ntsb wrote on our flight they made several dozen recommendations, to my knowledge, none of which has been implemented. it's been instead the buffalo crash a month later in february 2009 that has led to changes and only because the families of the victims have been such ardent advocates on capitol hill. >> let me ask you this because we've been talking this morning. cbs obtained the footage after the asiana crash where the young woman was run over twice by a truck and kill. the incident southwest airlines landing at the wrong airport. are these instances of mechanical failure or pilot error? in many cases the pilot is so important. >> it takes both a pilot and a robust resilient system in which we operate to try to detract and lead them away. it's very important that everyone remain vigilant and they fulfill their professional responsibilities and we keep trying to mitigate risks proactively and mitigate safety. >> i think that's a great. jeff, you a calm hachbltd sully, you have a birthday coming snup january 23rd. >> somebody else. >> it's true that norah and i were born on the same month and day. now, the year that's a different issue. your realtime captioner is mrs. linda marie macdonald in the north bay and east hi, everyone. good morning. 8:26. i'm frank mallicoat. get you updated on some headlines around the bay now. a red flag warning is in effect in the north bay and east bay hills until 8:00 tomorrow morning because of dry warm windy conditions that make for high fire risks. yesterday, three homes burned in a brush fire on kimball island north of antioch. san jose police are investigating the city's third homicide of the year. gunshots were heard on the west side near loma verd drive and eden avenue around 5:30 last night. no arrests yet. registered nurses set to stage a protest this morning at alta bates medical center in berkeley. the nurses accuse the hospital's parent company sutter health of making cuts to worker pay and patient service while paying executives top salaries. traffic and weather coming right up. good morning. it's going to take you a while to get on to the lower deck of the bay bridge into oakland. the backups are in san francisco. there was an accident on the skyway eastbound 80 by fourth but you will notice traffic is very slow right now on northbound 101, sluggish in pockets were 380 interchange. also in the south bay northbound 880 by montague expressway there was another accident blocking lanes and the red sensors are below 20 miles per hour. so it's very backed up right now beyond the 280 interchange. and taking you outside, the san mateo bridge we are just starting to see a traffic backup. it's just on the westbound lanes of 92. it's leaving hayward on the flat section so give yourself some extra time. that is your "kcbs traffic." here's lawrence. >> liz, dominating ridge of high pressure sitting overhead. we are going to see another round of widespread record- breaking temperatures. sunny all the way to the coastline. a beach day in the middle of january! yeah. here it is. we are going to see that ridge of high pressure sending these temperatures into the 60s, probably some mid-70s in toward the santa cruz area. about 74 degrees in san jose. 74 in oakland. about 73 degrees in santa rosa and 69 in san francisco. tomorrow, maybe slightly cooler but still some records. then the sea breeze kicks in on friday. that will bring with it clouds to the coastline, cooler and dry throughout the weekend. welcome back to "cbs this morning." coming up in this half hour the oscar nominations will be announced tomorrow. entertainment mogul harvey weinstein is in our green room. i wonder what he's thinking about these days. we'll learn the truth about support for a rising star that would be judi dench. plus he stumbled across a new profession. that's ahead. >> right now it's time to show you this morning's headlines. the "detroit free press" says tesla is recalling 20,000 of its adapters. the adapter cord could leak while charging. the recall with the software update should fix the problem. >> we believe the software update fully addresses any additional risk but as an additional, we wanted to given commerce complete peace of mind. >> he says it's not related to last year's vehicle fires. they oi kurred after high-speed crashes. the albuquerque journal say ss they're cashing in on the popularity of "breaking bad" but unlike the ultra pure meth it's tainted making people sick. >> the children of marvin gaye settled claims against a music company. they're sugar robin thicke for his song. the lawsuit claims the lines wore rowed elements from the 1977 hit, got to give it up. remember that one too. dueling lawsuits between the gay family and thicke continue. >> it wouldn't be a show without gayle singing. the "new york post" finds childless couples are happiest. that's true whether they're married or not. there's no explanation why kids would make couples less satisfied without. >> i don't get that one, either, and i'm single. wall street calls harvey weinstein as god. he's behind some of this year's biggest movies. the star-studded adaptation of august: osage county. >> eat. >> no. >> eat it. >> mom. >> no. >> eat that catfish. >> go to hell. >> i have something to talk about. >> no you don't. >> barbara? >> no you don't. >> mom. >> eat the fish. >> okay. fine, do what you want. >> i have to tell you something. ivy's a lesbian. >> no you're not. >> no, i'm not. >> yes you are. did you eat your fish? >> barbara, be quiet. >> welcome back to studio 57. >> thank you, charlie. >> what should we expect from this year's nominations? i would always suspect a surprise. there's always going go somebody who's going to be shocked. >> what's the surprise so far in the other announcement that's been made so far. >> i know ghail is her great friend and it's my movie, lee daniels, "the butler," the fact that oprah winfrey didn't get it is shocking. thankfully she got the british academy award. the globes aren't members of the academy. those two other groups have hunch crossover, so obviously finers crossed for her. that was quite a snub you know that that happened there. kind of like the aflex snub but look what happened to him. he ended up winning. >> let's talk about "august: osage county." star-studded film. incredibly well done. you wanted to see it after you saw the play. >> i didn't even see the play. a kid walks into my office. he works for me. he says, read this. these guys are desperate for money, nobody in the show no names, anything write a check harvey. i read this thing, the words by tracy let isycy letz. i write a check figuring i'd never get it. we adapt the movie, it's a two-hour movie but we've got a couple of critics talking about the change to the ending between the play and the movie. >> yeah the ending is optimistic. this is a show about -- you see this family, you feel good watching this show. you see meryl streep and think, thank got she's not my mother. >> it's perfect around the holidays to release a movie like this. >> tom hanchsks said i saw the movie and i saw my mother-in-law. >> my mother and my aunt -- i'm going get murdered for this. 30-year war. things flying cups. they talk, they scream, they yell, and all we do is pick up the furniture, the glasseses, rearrange the house. >> this is familiar. >> you know wit as hit show. julia roberts gets in the car and decides not to be her mother at the end. spoiler alert. it's a triumphant movie and goes off with a triumphant ending. that's what tracy lentz wanted to dolet he said if i had a pickup truck on the stage and he would drive it auchlt tracy's done a hundred interviews. again, they just pick and -- they say meryl streep is brilliant, but the hollywood ending. but, of course i get the blame for the hollywood ending. >> how many mooevs are going to be up? >> how many moves? >> that you have made. >> it could be an embarrassment of riches and it could be nochlgt i'll tell you one controversial thing. >> how many you do have that might -- >> we have awe sage county the butler -- we have five. >> five. how are you going to support the most? >> you support them equally. >> i'll bet if you look at your budget you have selected kuo whou u think the i highest. >> you know i thought it was the butler and 12 years a slave. we thought we could lead it. it looks like 12 years. its like trending. that's the movie for the black aud yuns. yans. why isn't there three. >> why is it trending? what is it that makes it trent, do you thin do you think? >> critics. >> now they're saying they're counting on the harvey factor. no, no, no. it's the harvey factor. >> it's the weinstein coming. last weekend we opened the movie and it's a smash hit even with tony scott getting it wrong in "the new york times." chris tells me i have to say controversial stuff or they're not going to have me. if it pleases chris -- >> are you doing matt damon and ben affleck? are you getting them back together? >> in "the new york times" article last week it was about two long shore fine visit. e-mailed ben affleck and said i always lrch u to sue you under water. you play the act. >> i don't hear an answer harvey. >> what they wrote back to me i cannot say on a television show. >> you're getting into television. i i'm getting into "marko polo "about the mafia a. i'm going to do breaking bad. >> what's trending over 12 years? >> leo dicaprio said it and this truth and it's sit. in other words, the idea that there's this 80-year-old woman and fill mean a. nom we're going to bring you so you can start writing the great american novel. so you can happily let life get in the way, while planning for tomorrow. so you can finish the great american novel banking for the life you have investing for the life you want chase. so you can the novel bridge to tear birth ya is written for kids but for one american soldier in the middle of a grueling year-long deployment in afghanistan it became a life line. lee woodruff is with us. lee, good morning. >> good morning, norah. a paperback would change not only the course of his life but also that of an author and a young afghan girl. trent reedy recalls the day in 2004 when he got the call his army national guard unit was going to afghanistan. >> my squad leader gave the code word stampede. it's a word we only used when we were activating. >> a high school english teacher who had rarely set foot outside ofway, he found himself in a war zone. >> i was angry about the september 11th attacks and made the terrible mistake of blieming all of the afghan people. >> he was stationed in the town of fera the iranian border. he and his 50-man unit crowded into this mud compound under the threat of the taliban. >> there was a real possibility they would never leave that place, never leave it home. >> the midst of his despair he received something unexpected. a discounted paperback "bridge to terebithia" from his wife. it turned into a movie in 2007. >> we can do anything here. >> i learned from the "bridge of terabithia" that art and musics and books aren't extras. they're essential. >> he devoured the book and then poured his heart out in a letter to the author katherine patterson. >> even while i drove through in a strange city with body armor and an assault rifle all i could think about was the beauty and richness of your novel thank you, miss patterson, for bringing such joy to this lonely teacher made soldier in this long tour in this bleak desert country. >> that's a pretty profound moment, i imagine, to get a letter like that. >> yes, it is. >> did you ever expect it to be so beautiful. >> no. and i didn't expect it to be life changing for either one of us. >> patterson who opposed the war in afghanistan felt compelled to write the soldier back. >> it is every writer's deepest desire to have readers who understand what is in her heart. and sometimes mir akaculously it happens happens. and even more miraculously the reader shares his heart as well. thank you. >> their correspondence would last the red of his deployment. >> why such an interest in trent? >> he was in afghanistan for heaven's sake. he needed mail. he needed encouragement. >> as the two grew closer his views of the mission also changed number longer did he see afghans also the enemy. they, too, had been victimized by the taliban and their children after decades of war were left with almost nothing. >> one little girl in particular touched your heart. >> right. when we encountered a young girl who had suffered from birth from cleft lip and her teeth were extraordinarily crooked so they struck out straightforward so my fellow soldiers and i pooled together our money to pay for civilian transportation to get this girl to our base. >> an army surgeon repaired her disfigured face and in a country where girls often got the short end of the stick she could at least now live a life free of stigma. it was also a turning point for him. >> the last time i saw this girl she was on the back of our truck riding off of our base and i told her i promise i will find a way to tell them your story. >> to keep that promise he turned to his friend katherine patterson. after his deployment he enrolled at the writing program at the vermont college of fine arts where she was a trustee. >> i was sneakily suspicious that this man could write and i said, she can't tell her own story now. some day we hope she can tell her own story, but for now someone else is going to have to do it for her. >> with patterson's encouragement, he started writing about a young afghan girl who has a cleft lip but gets help from american soldiers. that story eventually became his first novel "words in the dust." trent, what would you like people to come away with after they read your book. >> i would like them to have an afghan friend and to understand that, you know the people in afghanistan want a chance to chase their dreams and to aspire toward more. >> and a portion of the proceeds from reedy's novel benefit as charity that helps afghan women and girl and he said some day he will return to afghanistan and find the rule zulaka and change her life. the next book will be next book. >> talk about being forever changed and it just shows you the pow ore after book. >> in the desert. he talked about that terrible day. they were feeling despair. a truck arrived with meat. they were all going to have steaks and the driver forgot to turn on the refrigeration unit and then he received the book. it's a wonderful book and everyone should read sniet what he has done for the young girl. >> change heard life. >> lee, thank you. tomorrow we go from a soldier to a groundbreaking military leader. our conversation with the highest ranking bulldog: out with the old and in with the new! mattress discounters' year end clearance sale ends monday! puppy: what's this red tag mean? bulldog: through monday save up to 40% on clearance mattresses. puppy: oh, here's another. bulldog: that means up to $300 off serta, posturepedic even tempur-pedic. puppy: i found another red tag! bulldog: what! where? puppy: right here, silly. ha-ha-ha! bulldog: tickles! mattress discounters' year end clearance sale ends monday. ♪ mattress discounters ♪ before you settle for another ordinary mattress, isn't it time you discovered the sleep number bed? the only bed clinically proven to relieve back pain and improve sleep quality. and right now, it's our lowest prices of the season. save $300 to $800 on our newest innovations. plus 18-month special financing on all sleep number beds. only at a sleep number store where queen mattresses start at just $699.99. sleep number. comfort individualized. headlines... police your realtime captioner is mrs. linda marie macdonald. good morning, 8:55. i'm frank mallicoat. we have your kpix 5 headlines now. police in milpitas are investigating the first homicide of the year. a man was shot to death in a hotel parking lot. it happened last night. the victim believed to be in his 20s, early 20s, it's not clear whether he was a guest at the executive inn hotel on dempsey road. the suspect may have fled the scene in a dark colored sedan. exclusively on kpix 5, never-before-seen video of the aftermath of last year's plane crash at san francisco international airport. this video was provided to cbs news by a source close to the family of a chinese teenager who was run over by a san francisco fire truck at the crash scene. family now suing the city of san francisco over their daughter's death. time for weather. and dare i say it, another beach day? >> another record day around the bay area. these temperatures are going to be impressive by the afternoon. looking back towards san francisco, a little hazy outside. but high pressure dominating now. it continues to send most of the storm track well to the north of the bay area. so those offshore winds also increasing the fire danger. we have red flag warnings up continuing through thursday morning in the north and east bay hills. also, into the diablo range. these temperatures impressive. record if we hit 74 degrees in oakland. another record into san jose if we hit 74 in san jose by the afternoon. and 69 degrees in san francisco. by tomorrow, some slight cooling. and then that much-needed sea breeze kicks in on friday. the temperatures will start to drop a few. looks like more cooling but staying dry through saturday and sunday. we are going to check your "kcbs traffic" coming up next. a short time save hundreds on tempur-pedic mattresses. get the most highly-recommended bed in america at closeout prices. plus, get interest-free financing and free same-day delivery. why wait for the new models? sleep train's year end clearance is ending soon. superior service best selection lowest price guaranteed. ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪ it's kinda crazy around here sometimes. no. tonight, i got the favorites bucket. shhhhh, they're eating. kfc favorites bucket. 10 pieces, any recipe you want $12.99. i even get my favorite. extra crispy boneless. thank you. ♪ ♪ good morning. another "kcbs traffic" check. a hotspot southbound 280 unusually slow through woodside and menlo park because of an earlier crash. big delays northbound 880 through san jose from 85 to 101. there was an earlier crash approaching montague. and a new accident southbound 101 on the golden gate bridge near the toll plaza. wayne: i get to pick a box i get to pick a box! jonathan: it's a diamond ring! (screaming) wayne: bringing sexy back to daytime! jonathan: it's a trip to the bahamas. (screaming) - this is so crazy! - "let's make a deal" coming up, let's go! it's time for "let's make a deal!" now here's tv's big dealer, wayne brady! wayne: what's up america welcome to "let's make a deal." i need a couple right now for my first deal. let's make a deal. let's see, let's see, let's see, come here, waldo, everybody else have a seat. let's get this started. you guys stand right there for me, welcome to the show. all right. you are beatrice? - yes. wayne: nice to meet you, manuel. - nice to meet you. wayne: pleasure, pleasure, whipped cream and waldo. well, i found waldo and he's having a great time.