Two feet. Boston may top attitude feet instead of three. More than 7000 flights have been canceled greater the travel ban has been lifted along with several neighboring counties. Policymakers will start their meeting today. They are not expected to raise Interest Rates. Inflation slows down. The yield is approaching a record low. A number of earnings reports to talk about. Caterpillar came up short. The maker of heavy Construction Equipment missed wall street estimates. At procter gamble, it fell 31 . The stronger hurt sales. Fourth quarter your earnings earnings beat expectations at pfizer. The new Prime Minister of greece is filling out his cabinet. It should not be a fries a surprise that he picked someone who is a critic of the greek a lot. A lot. Bob kraft has gone on the attack. He said if the nfl finds his team did nothing wrong the league should apologize to him. The nfl probe is focusing on a locker room attendant. This is according to fox sports. Bill belichick said the story is done. its hard not to talk about the weather. This is a picture right now of what is going on in new york. The streets are empty. They are getting well paid. The snow that blew through the northeast is not going to drop as much snow as forecasters had anticipated. They are downgrading this to a winter storm warning from a blizzard. Train service and travel bans, they are opening up again. The governor quoted out that the travel ban in new york city is listed at 7 30 a. M. Matt miller was able to make his way into new york. He came in his ford truck. It looks like he was ready to go ice fishing. Also with me is scott kern. He lives near here. You are able to im local. You were able to make it here in your ford f1 50 . It has 35 inch wheels. I was well prepared. Most new yorkers are poorly prepared for this. It happens every winter. This should not be a surprise. It snows in the winter. Its not that big of a deal. Six inches with that we got overnight. That is not very much know. They still havent managed to clear the roads where i live in westchester. Everything is clear and dry out there already. I guess the travel ban has been lifted. People will start driving. A lot of people have already taken off work. All of train lines are still closed. Bus lines are still closed. Maybe this will just be a snow day where people can do some shopping . Can we turn around to get a picture of my truck. I have concerns about zombie attacks and doomsday prepping. I bought this big behemoth. It works very well in the snow. A lot of people are driving around in two wheel drive cars with summer tires. That is inadvisable. I got a chance to go out. Im sure you were being a very safe and having a good time in that getup. I was doing very safe donuts. He is using it for work. It is taxdeductible. We were all coming in and walking. We were figuring out ways to hitch a ride with matt. Uber in this time of need was down. This is what we saw on all of our phones this morning. Uber service was not available. Its interesting. They are known as the little bit evil happening. Part of it was the surge. They are making donations to the red cross. They are behaving themselves. I think they are growing up as a company. What does that tell you . When people need their cars suddenly they are not available. Is that a hole in their Business Model . Yesterday, all of the services i use everyone said we cant handle this load. The blah zero shutdown subways. In hindsight, it was more than it needed to happen. But it was safe. Its understandable. I get to look at lexington at 1 00 in the morning and it was empty. You never see that. The mayor said everybody get someplace. I think uber would not have had any business. We will live. Hang on. Matt, inc. You so much. Matt miller is going to get back in his truck. If you need a ride, just call matt. I will come pick you up. Back to some corporate news, shares of microsoft are dropping. They are down almost 8 . They delivered a mixed bag for secondquarter results. One bright spot was the growth in cloudbased services. Is it too little or too late . He is developing to unite devices and workflow. His next egg leap in Computing Technology is a new gadget that brings high death holograms to life. Can they find growth in wearable tech . Cory johnson joins us from san francisco. He was there when those numbers broke. What is driving down microsoft . Is it the business licensing revenue . Is it the commercial Software Sales . I think its a dramatic change from a pc driven company to a cloud centered company. Windows 10 is going to be a core offering. The price of windows 10 is going to be zero for the first year. What we see from microsoft as they are going to be drawn out in getting revenues from places where they are trying to grow. Its going to be free on ios devices tablets and phones like the ipad. Its going to be offered on devices that are nine inches or smaller. It will be free to the other phone makers. When you give it away, it hurts your revenue and profits. We see that from the guidance they gave us. No surprise. You give a lot of price cuts on these products, you are going to take a hit on the bottom line. Scott, you dont think about microsoft . As a company, they are irrelevant. I run a tech company and an internet company. We think about apple and facebook and google. We dont produce our products for windows phone. We do android. Theres not enough of a market. Microsoft is 30 years old. They are acting like a startup. Google gave away at first. Facebook did not have ads for years. Microsoft has no choice. If they are successful candidate unite all of their products in the cloud, which is different . Can we compete with gmail with products that are free from the competition . When you look at the apple ecosystem, soon they will have a watch. They talk so brilliantly together. If i were microsoft i would change the name of the company to xbox. Do you really want microsoft . It shows how quickly the industry moves. They are right under microsoft. We did not get to talk about this yesterday, the headlines that microsoft makes on other products like thehol holo lens. I think they want to show that they are on a cutting edge of innovation. Facebook got so much attention for their acquisition of oculist. They have success with things that dont interface with the average consumer or business user. The problem is they are facing a new kind of competition. They are not competing with the old world of technology. They are competing with amazon. They are happy to cut prices many times on a monthly or faster basis. Microsoft 365, they are trying to go up against amazon. They are having a much lower margin. Cori, stay with me. Were going to talk about melissa meyer. What will she do with that big 40 billion stake in alibaba . Its so much money to do so much with. You are looking at the streets of manhattan right now. The travel ban has been lifted. The subway and Rail Services will begin running again at 9 00. You can get to work in just under an hour. Yahoo ceo Marissa Mayer, she promises to use this occasion to talk about her plans for yahoos state in ali baba. Can she unload this without incurring a tax healthy . Thats tax penalty . They are valued at 48 billion. Still with me is cory johnson in san francisco. My guest is scott kernan. Layout for us the possible options that Marissa Mayer has in offloading the stake stock. There are a zillion options. They have in getting the advice of anybody. People walk up to him and tell him. Every Investment Bank is been banging on his door. We are likely to see some sort of spin off into another entity. That may involve softbank japan. Its hard to know what they are going to do. There are so many options on the table. The market believes there is going to be a tax healthy. If you believe that stake is worth 40 billion, the companys value minus the cash on hand is just 35 billion. The market believes that yahoo is worthless. There is an assumption of some advantage anyway. What i do want to pin down, there is john malone who is famous for avoiding taxes. He usually takes some money and spins it off into a separate company and then borrows off of those assets. He is able to avoid taxes this way. The only way that he can understand. Then you have the warned buffett way. Warren buffett way. Should she do either . Should she do Something Else . I am not a tax guide. We get to talk about how we dont give the government money legally. Having grown up in the cable business malone is a genius at this kind of restructuring. I have to assume there are a half dozen different ways that this can be restructured. To me the fundamental question is the longterm value of the company. Wall street loves the moment unfortunately. Give us the cash in some way. I think that they made a really of investment and Marissa Mayer gets that benefit. If you are an apple and you have so much cash and we keep inventing new products, yahoo can do more. That is the fascination. Since i am a Company Builder and on a cash is tribute or i think she has opportunities. She did purchases. If it were me, i would be at the top of their list. By Young Companies that can benefit. There are two kinds of companies out there. You get your 6 . Today, they can build inside. That has been tough for them. Its hard to invent. I think there is a wealth of Young Companies like ours that the yahoo firehose is applied to companies and they take off. You need to market whether you like it or not. Our dream is to create a social Commerce Company that does not need to market. We have some of those qualities. You have companies that take off all by themselves. Those are the instagrams. We are going to see three or four Internet Companies advertise on the super bowl. Yahoo can pick up a dozen a dreamy Small Companies and if three or four hit, that would be better. Its almost like a Venture Capital company. They have the advantage over every Venture Capital company. They have a huge amount of traffic that they can point. They can pick up the youngish company. Hang on. Cory johnson thank you so much. He is the bloomberg west editor at large. Scott is staying with me through the hour. We are staying on a weather watch. Rail Services Back online at 9 00. Good morning. These are our top its of company news. Caterpillar forecast sales and profit that missed estimates. There is less demand because of falling Commodity Prices. Millions of people could not get on facebook. The outage affected users in asia europe, and africa. Instagram was also out. Facebook was able to restore service. A technical error caused the problem. Firstquarter profits fell 4 in europes largest engineering company. This used to be the prized performer. Profits fell 27 . Scott is staying with me. We did not get to talk about apple in the last segment. They are reporting earnings after the bell today. There are some questions. I want to bring up some topics that people will what to hear from tim cook. They want to hear how iphone 6 sales are compared to iphone 6 plus. Why is this significant . I am looking forward to the iphone 6 minus coming up. I would like it if it were the size of a five. Steve jobs was a genius. He made it the right size. I think apple had to go bigger. My sense is the six plus is 25 . Its just too big. Thats the book on the iphone. I dont know that that matters except if the six plus was successful, that would impinge on the minis. I guess people are curious about that. My curiosity is the watch. I spent time with one of my engineers last night. We are going to release a watch app as soon as we can. I think its interesting. I believe in the watch. The iphone is not really a phone. I think the watch will be similar. It will unleash tremendous new opportunities. I dont personally like to wear stuff. People do. Its a good watch and it looks good and its going to do 95 other interesting stuff. We have figured out how you can sit there on your watch and buy from a watch. The iphone put apps front and center because we spend 80 of our action on the phone. Its there and its ever present. The watch is more present especially for women. Im excited by it. Its a demonstration once again where apple is an amazing company. Microsoft is trying to be cool, thats a tough one. I think weve got weather with us right now. They want to give us an update on the storm. The storm seems to be dissipating at this point. I want to bring in heather waldman. Thanks very much. It is only just beginning for others. This is the radar on the east coast. We have snow showers across pennsylvania. This is where the height of the storm is. You can see those deeper blues. That is representative of some very heavy snow. We are talking about visibility is near zero. And a lot of these places, wind gusts are 35 miles per hour. Even though the snow has not been that heavy in new york lately, its getting blown around quite a bit. Visibility is low. You can still have blizzard conditions even if its not snowing. Real temperatures over the last hour nine below in burlington. Its like 21 below in portland. Its dangerous to be outside in these areas. There is a travel ban for much of massachusetts and connecticut. This is what we are looking at for the rest of the day. A big patch of i95 is being affected. Its still going to be a rough afternoon with whiteouts and power outages. The traffic right now, what are you hearing about traffic . Traffic has been brought to a standstill and rightfully so. The wind and blowing snow is not safe to the outside. Thousands of flights of been canceled. Things are going to be backed up for a couple of days. Thank you so much. We are waiting on durable goods numbers. There may be some delay in the data. We are going to look on these numbers. We will bring you the durable goods numbers in a few minutes on in the loop. Durable goods numbers are finally out. They are down 3. 4 . Scarlet fu has a breakdown of the numbers. These are unexpected declines. A drop of 3. 4 when they were looking for an increase, the prior month numbers were advised as lower than before. The previous drop was revised to a decline. Stock Index Futures were lower before this number came out. If you come to my monitor, i can show you what happened. We headed to our session lows. The dow, the s p, the nasdaq they all are moving in tandem together to their worst levels of the early morning. We sought some disappointing earnings from microsoft. The tenyear yield is at the lowest part of the session. Earlier, and fell to 1. 76. We are seeing some drastic reactions in the markets. Its scary to see the red across the board and a big decline. Thank you so much. This is not a good snapshot of the u. S. Economy i are above goods. These are other tech stories. We are going to get a sense of how those new apple products it over the holidays. Apple reports Quarterly Earnings today. This will be the first indicator of how the larger screen iphones performed. Tim cook is predicting this will be their best order ever. Will he deliver . They will ibm is cutting one fourth of its job force. It will affect several thousand people. Google will bring its Internet Service to four new cities according to the wall street journal. Google fiber will be launched in atlanta, charlotte raleigh, nashville tennessee. They offer an Internet Connection that is 10 times faster than the average one. Much more ahead, we will look at what is moving and shaking at the sundance film festival. A producer of many a cad winning Films AcademyAward Winning films will join us next. You saw this at the detroit auto show. This will likely have some ripple effects in the commodities market. This is palladium. As global car sales rise demand for palladium will exceed supplies for a fourth consecutive year. Joining us is the head of Global Commodities research. He did some research on the demand for palladium. Is that going to be an outlier . Its one of the benefits from oil price reduction. More car sales, bigger cars more gasoline cars. Its starting to reverse the trend to hybrid vehicles. Palladium goes into these cars. We are seeing some demand growth there. The metal has been hit significantly. The key thing done aside from the effect on Inflation Expectations has been to move costs down. They are very oil intensive in the way that they are mind. Ed. We see the top and fall by 20 dollars a pound. We are trying to get rid of the excess supply we have across commodity markets. We are seeing a graph here. Aluminum, iron ore, oil costs are significant for those producers. They are going to benefit from having their cost reduced by so much. You are saying that the cheaper it is for them to news, the more supply goes on to the market and that will depress those prices. It means that the margin it produces they dont get shaken out at all either. The prices have to work hard to shake them out. Everyone is benefiting from the oil price fall. These Metals Prices are fading to invoke supply responses. Metal Price Expectations continue to be lower. White wont they cut back and reduce some of that excess supply . There are different strategies there. Most of the larger players say we have the lowest cost asset, why should we cut . They are trying to get more players with debt on the market sheet. They are going to keep production as hard as they can in the coming months. They are exceeding supply expectations over the air. Thank you so much for joining us. Another fallout from what is going on in oil prices. Theres a major fallout from what we just saw a few moments ago. Durable goods are down 3 . That is hitting equity futures bigtime. We are looking to see a big loss at the open today. I want to get to scarlet fu. You can earn earnings for some of this. They are there are probably not a lot of people out there trading just yet. People are just getting into the office with the travel ban lifted. Microsoft was reported yesterday. They had a disappointing earnings report. That stronger dollar is going to be a theme across all of the blue chips. If you look a