Certainly the call volume has accelerated today. Over 11,000 have already traded halfway through the day. Thats way over open interest. So i jumped in here. That does it for us. See you tomorrow. Power lunch starts now. Half time is over, power lunch and the second half of the trading day starts now. Scott, thank you very much. Its the biggest day for earnings so far this year. Big names reporting all day long. We heard from some of them. That could tell us a lot about which way the market is heading. Verizon, ibm, j j, google and travelers all on tap. So is the gop about to cave on a debt ceiling deal . We may know a lot more soon. Theres a plan floating around washington, stop lawmakers pay if theres no solution on the debt ceiling by the deadline day. And this guy, hes teed off, the golfer phil michakelson tee off over his taxes. And hes not going to take it anymore, or is he . Sue herera is live at the new york stock exchange. Earnings are front and center with j j, dupont, travelers all out with results. More on them in a few minutes. Lets get you ahead of the curve. Google is getting ready to report its latest results after the bell. Fears about an ad revenue and major focus on those shares. Google right now is down 3 bucks on the trading session. John is in Silicon Valley with what investor s need to know ahead of the numbers. Couple of important themes this quarter, mobile and mobile. Mobiles impacted on the core business. As more people do searches from mobile devices, googles revenue has been coming down. Its more than likely this trend will continue as smartphone and tablet sales spike. Cbc could come down 11 . It was down 15 last quarter. Then we have the nexus 7 and nexts 10 tablets. In q3, some analysts estimate google sold around 100 million tablets. And then you have motorola, and i am hearing the mobile phones are not selling that well. Last quarter they had 1 billion in losses, a negative margin of 28 . With the more stable set top box getting spin out, investors want to know the end game for motorola. Thanks, john. Ibm is out with q4 numbers after the bell today, three hours from now. The stock hit a bit of a peak in october, down 6 since then. Today a fractional move to the upside. The street is looking for a gain of 5. 25 a share. Revenue expectations at 29. 1 billion in q3, revenue hit 24. 7 billion. Keep an eye on ibm. The stock has been flat over the past quarter. The earnings ball is going to roll into jeff kilburgs court. Jeff, welcome. First up, johnson johnson. Higher sales lifting that company to a better than expected Fourth Quarter profit, but they missed on fullyear earnings expect tagszatioexpect. There they are, at 72. 75, down about 48 cents. What do you think here . Well, this is exciting. J j has not been exciting. Its been sideways for the last decade. Were seeing them sit on some nice cash. Seeing them deal with the way they had recalls in the various manufacturing plant upgrades. Right now were positioning to be long in the stock. Theres a selloff of some vertical to j j. I think johnson and johnson continues to go higher. Travelers beating the street. Earning 72 cents a share. The estimate was for 14 cents a share. You would call that a beat, wouldnt you, despite some losses from superstorm sandy. Shares fresh 52week high. Up more than 2 at 78. 49. Do we like travelers at this price . We do. If you like this price, you could potentially sell some puts, that allows you to collected premium and come in lower. The ceo has done a great job. You look at this low Interest Rate environment, hes honing the prices. Thats why theyll do better in the future. On to verizon, Fourth Quarter loss, missed expectations, seeing Strong Subscriber growth, but impact from super storm sandy and pension costs hurting that phone carrier. Herb greenberg was on the Earnings Call this morning and pointed out that as we get more and more platforms in the mix there will be competition, subsidy reduction as there was in the basic phone history in the ecosystem. That sounds not so hot there, jeff. What do you think of verizon. Verizon has spent a lot of their network, the fios network. So verizon, shortterm you will havae agn opportunity to buy ha here. Verizon are moving forward. Theyre diversified. It would be nice to see stated and local governments address the Pension Plans the way they did. Absolutely. Well check in with you later. Its a big week for the Defense Industry as well, Lockheed Martin and Northrup Grumman report this week. Jane is here for a preview. Reporter across the board for pretty much defense company, analysts are expecting a drop in earnings year over year, but jason gersky says dont expected to see a fiscal cliff impact. On the contrary, theres an opportunity for rates to outperform expectations. Thats because the d. O. D. Was trying to get as many contracts done in the Fourth Quarter in anticipation of sequester potentially being implemented in early january. He and others expect flat demand from the defense department, but International Growth looks good, International Sales have higher margins. Gursky likes Lockheed Martin and ratheon for their patriot systems which could be big in any iran israel conflict. And he expects these companies to have 8 to 12 returns. Will that continue . One other thing, two of these Defense Companies have brand new ceos, both women. Lockheed martin and general dynamics. Back to you. Coming into office at a difficult time. The defense stocks keep going up despite the fact we know there are Government Spending cuts ahead. I know. Theyve been doing great. A few reasons. Any sequestration would effect future contracts, not current contracts, unless the federal government wants to pay for breaking contracts, but they also continue to show good bookings, especially internationally and putting out cash. Im not putting bowing in this group because theres so many issues with the 787 there. Thats wise. Research in motion moving higher. That stock up 1. 54. A nearly 10 move. The ceo says the smartphone maker may consider strategic alliances with other companies. The stock is up 154 in the past six months on optimism over the launch of its blackberry 10, which the company will unveil a week from tomorrow. Sue . To the markets now, where we have the dow, nasdaq and s p 500 all in positive territory. Many of the indices flirting with fiveyear highs. Thats an interesting situation, i fatalked to a number of trades who say this market has put in a rationality put, which basically means despite the fact that the bank of japan is declaring a currency war on a number of other currencies out there, you can see the move do the down side there, it doesnt seem to matter to this market. One of the reasons why is the move to the upside in the s p and the move to the upside in the dow is confirmed by the dow transports which are up today by almost a full percent. If you are a dow theorist, you need that confirmation. Kansas city southern beat on the bottom line. To Bertha Coombs now. Freeportmcmoran came in ahead of expectations, revenues ahead of expectations, and it also said on the call that controversial 9 billion deal for the two Energy Companies sthash that it will not be put to a shareholder vote and they expect the deal to close in the second quarter. Sales of existing homes down in the recent month . What does that say about the health of the Housing Market now . Diana is in washington, d. C. Hi. Tyler, the story is what you are not seeing on this street behind me, thats a for sale sign. Home sales are falling because the number of homes for sale are falling. Were now at 1. 82 million homes on the market, thats down 22 from a year ago. At the current sales pace, thats a 4. 4 month supply. The lowest since may of 2005. In raw numbers we have not seen this few homes for sale in over a decade. 2. 7 million borrowers are still underwater on their mortgages, investors have also eaten up most of the distressed properties. And builders, while they are ramping up, they are still at less than half the starts they were during the housing boom that low supply is pushing housing prices up higher than expected and faster than expected. Prices are up 7. 7 year over year, and prices are rising faster more than income and employment. The realtors are warning this is not a healthy market when you see it based on lack of supply and not growth. We have more on this on cnbc. Com. House republicans are giving up their fight to tie the debt ceiling to spending cuts. Will that make a deal easier . What does it mean for your taxes . One influential congressman will join us and give us answers. [ male announcer ] dont just reject convention. Drown it out. Introducing the allnew 2013 lexus ls f sport. An entirely new pursuit. Another difficult day for boeing shareholders. Shares are still under pressure. Its becoming clear the quick fix that boeing had been hoping for over its 787 dreamliner problems is becoming much less likely. Fill lebeau has the latest on this. Not a good situation at all for boeing. Its tricky. They still dontfor the two inc. They have to peel back the onion further. I have had people saying what are they doing at boeing . Are they working with the ntsb . A lot of it is centered around the everett factory, where the dreamliner is built they are out there doing tests, working in teams. Im told its hundreds of employees working on this 787 problem. Theyre not in one central location, but spread out throughout the boeing facility. Boeing is tapping a number of areas for expertise. As for the ceo, he is involved frequently in the updates going on within the company. Hes taking part in daily meetings on the latest findings. This is the biggest test of his ten year and ceo of boeing. What are we seeing in terms of the investigations involving Government Agencies . Investigators are talking with suppliers, some in japan, some in arizona and england. There are suppliers around the world. The jtsb and ntsb are pursuing two different theories. As you look at shares of boeing which are under pressure, the jtsb says the ana plane did receive an overcharge, the battery. The ntsb in boston says, no, that didnt happen. There was not an overcharge involved there. You have a bit of a disconnect. There thats one of many things theyre trying to resolve now. I was going to ask you about a timeline, but it doesnt sound like that is at all possible if things are going in two different directions. You cant get a timeline for when the grounding will be lifted until you know what happened. Once you have that, you can say, whats the solution . Is it a software or manufacturering solution . Thats what you have to identify first. Phil lebeau, thank you very much. The markets are at or near multiyear highs across the board and secondly are republicans backing off . We one gop member of congress will explain whats going on in washington next. Quicken. To help you not just to stay alive. But feel alive. The new c class is no exception. Its a mercedesbenz through and through. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. Washington, house lawmakers getting read to raise the debt ceiling. Speaker boehner is expected to give a News Conference later toda today. There are a lot of deadlines in washington for investors to keep track of, they each carry their own risk. Let me walk you through what we are expecting. Starting tomorrow on wednesday, the House Republicans say theyre going to have a vote to extend the debt ceiling. They say they will raise the 16. 4 trillion cap enough to extend the debt ceiling to midmay. On march 1st, you have the sequester, when the spending cuts will kick in. About 85 billion of cuts automatically to defense and domestic spending. The risk there is a drag to the gdp. On the 27th, current law on the government funding runs out that forces a drama over a continuing resolution, or you face the risk of a government shut down. On april 15th, thats the date by which the house would force congress to pass a budget or see their pay cut. The risk there, of course, is members of Congress Might have to go quite some time without a paycheck. Tyler . Thank you very much, eamonn. The gop originally wanted to tie the debt limit raise to spending cuts. So are republicans backing down as some in their own party say or is it just a shift in tactics . Scott garrett is back with us, a republican from new jersey and vice chair of the house budget committee. Welcome back. Great to see you again. Good to be back with you. Happy new year. There are some people including senator rand paul of kentucky who say that at your Conference Last Week in williamsburg you retreated on the debt ceiling issue. Is that a fair characterization . If so, was it a change of heart or a change of tactics . I didnt hear rands comment as far as that is concerned. I think what the gop house conference is concerned about is how do we get forward during the next couple of months with an administration who just yesterday said he has a bold agenda Going Forward for the future. In order to have an agenda whether youre president of the United States or the ceo or cfo, you have to have a budget. Were saying the same thing the American Public is saying to the senate, give us your budget if you want us to then go forward and continuously raise the debt limit. So you feel that this vote tomorrow will pass the house what do you expect the senate will do . They havent been able to pass a budget in four years. Theres a story that came out, i dont know how true this is, that senator schumer said democr Democratic Senators have been secretly planning on doing a budget for a long time. Thats good and also coincidental that they were secretly doing a budget an we never knew anything about it. As soon as we link their pay to getting a budget done, magically it seems the senate may be talking about doing a budget now. Then that would be good. It would be great. Were looking at that debt clock over there. The time you gave an answer the debt goes up about 300,000, 400,000. Longerterm, what would your prescription be on how to get the country on a much better posture fiscally . The ultimate goal is to get a better posture so we can have job creation, people can go back to work, we can have the prosperity we had prior to this administration. You do that by starting with a budget and dealing with the problems here, which is everybody wants to spend your money, borrow more money. Well address the sequester. A lot of us think let that go into effect. That will set us a bias line number. Next thing to deal with is the cr. We had a bugdget in the house o representatives, and then deal with entitlements. Even the president of the United States says we have to tackle them. He just has been unwilling to do it. Maybe now in his new term hell be able to reach across the aisle and work with us. A couple of things are of interest in your answer there. One is the sequester. Many people, whether democrats or republicans, abhore the idea of a sequester, thats a big issue in districts represented by republicans or democrats. You said you favored letting the sequester go into effect. I think you have to be willing to let the sequester go into effect. There are better ways to deal with it than this across the board cuts. Congress has never been able to implement the right ones. We did the fiscal cliff lifting. I voted no on that even there it was rife with gimmicks and really false numbers where we pulled in revenue from the future and counted it as far as dealing with the sequester now. We cant continue on this way. Congressman garrett, great to see you again. Thank you very much. The dow transports hitting new highs. Is it time to get back into the game if you havent done so already . Some advice on how to do it the right way coming up. And Phil Mickelson now says he should have kept his comments about his 60 tax rate to himself. One reason why . Maybe his math doesnt add up. Well question, drive home that question. You know my heart burns for you. Im up next, but now im singing the heartburn blues. Hold on, prilosec isnt for fast relief. Cue up alkaseltzer. It stops heartburn fast. Oh what a relief it is [ male announcer ] some day, your life will flash before your eyes. Make it worth watching. Introducing the 2013 lexus ls. An entirely new pursuit. Lets check in on the gold market. Sharon is there tracking the action for us. Hi. The gold close has prices above 1690 an ounce, which is a key technical level. Theres a lot of resistance at that level and the psychological level of 1700 as well. We are looking at gold prices confronted by a sentiment shift a bit in the marketplace with Investment Firms cutting back on price forecasts for 2013. The latest, citi did so yesterday. They are saying they see gold prices, forecasting 1675 an ounce. They say trying to get to that 1800 level and the inability to do so over an extended period of time has weakened the bullish case for gold. Theres a different story for the Platinum Group of metals. Thats where the strength is. Platinum itself is actually up about 10 year to date. It is the leader among the metals. We are looking at platinum, again, citi boosted its target for platinum to 1700 an ounce. Looking at palladium to be around 1775 an ounce. Yet another Investment Firm saying it has changed the metals market. What you need to look at is the Platinum Group metals, industrial metal component helping that side of the precious metal group as opposed to the pure play for gold. Thank you very much. Sure. To the trading action. Courtney reagan is here with me. What are you watching . Sharon mentioned the 1700 level for gold. 1500 is what were watching on the s p 500. Were getting closer. The mixed market here with two and a half hours to trade, sideways action so far. But the dow transports versus the dow industrials. Again, the dow transports hitti