Who might be more. And natural gas higher by 15 year to date raising heating costs across country including in my household. Turning to down to 52, i think, at night. Today were heal from wall streets weather forecaster. A meteorologist who doesnt work for your local tv station. Hes not about snowapocalypse. Whats he saying about february and march . The temperatures. How you might be able to capitalize. Find out in six minutes time. Meanwhile to sue at the new york stock exchange. At the floor, a triple digit advance for a nice change in the Dow Jones Industrial average. Up 154 points, under a 1 gain. 15,892 87 on the dow. S p up 23 points. 1 snishgs 1 3 gain at 1797. 62. And up better than 2 , 81 points and change for nasdaq. Look at transports. A triple digit gain now. After a very rough week. The transports last trade, tick down here, 134 points to the positive side. The tenyear note, weve seen yields drop, edging up a little this morning with the turn in the Dow Jones Industrial average, but were still at 2. 7 and at 2. 65 earlier this week. If this turnaround is longer standing, and its real, and you want to make moves, perhaps, and buy in, sheila has just run a special values screen for us. Shes naming some names right now. To give you some interesting investing ideas. Hi. Hey there, sue. A rough and tumble start for 2014, thats beating up a lot of stocks. What we did, looked for names that underporped the market this year but still could be good longterm value plays. Number one on the list, young brand. Stock taking a hit, information from china and avian flus outbreak. Chinas gdp growth still grael for the unit growth in growing that footprint. Look at the u. S. Business of yum. Cash flow machine, money that can be used to return to shareholders. Number two on the list is mattel. An underperformer this year. Bakaly off whats what we call a weak consumer season spending. Analysts say the stock is overdone. Rapidly growing outside companies of the u. S. Companies product mix, talking products like monster high. Apparently its big these days. Also american girl. Really high margin products which are very good for mattels bottom line. And rounding out the list, retail name, ralph lauren. Underperformer because of the weak retail take but analysts say its brand name is strong and thats should play well in emerging markets in the long term. Back to you. Sheila, thanks. American girl, popular in my house. Monster high, not so much. Breaking news in the bond market. Seven year note up for auction. What did demand look like, ricky . Two auctions in one day. Does life get bet jer 29 billion, seven years. At the auction, 2. 1 nine9 er, a higher price, a good thing unlike the five year. 255, 2. 55 auction average. Higher, 2. 65. Close to 45 on indirects, higher, the ten auction average. Close to 20 under racks. Good thing. Ends up in investors hands. B minus the grade. Better demand and once again i normally say weve got to look for the next series. The nebs series is next week. 3s, 10s, 30s, on the back. See you then. Sue, back to you. Thanks. Appreciate it. Go to seema fo a quick market flash. Good afternoon. Check out con core technologies, second highs. Provider of travel and Expense Management Solutions posting better than expected Quarterly Earnings on higher sales and guided 2014 earnings above street forecast. A programming note. Conquered chairman and ceo jim cramer the guest on mad money, 6 00 and 11 00 right here on cnbc. Thanks, seema. The market rallying after new data today showed the economy expanded rapidly at the end of 2013. Will growth in the u. S. Calm concerns about emerging markets and drive domestic stocks higher . Joining us, mr. Blackstein, manager of the morning star fourstar rated dynamic u. S. Growth fund up 38 over the year. Mr. Young comanager of the morning star five star rated villery balanced fund up 16 over the last year. Good performances for both. Gentlemen, welcome. Thanks for joining us. Noah, start with you. How much attention are you paying to the turmoil in the international markets, emerging markets specifically . Because we have seen this over a number of past years. We have. I think its a little different this time. I mean, you know, given facebooks result and you called it a comeback thursday. Call it a Throwback Thursday as well to the 1990s emerging market currency crises. Unlike the markets in greece and pigs in europe, these are countries that have their own independent fairly flowing currencies. For example, in turkey, corrected. In argentina, taken a hit. The adjustment process is much less one that will spread to contagion and much more focused in on individual currency and balance of payment adjustments. Okay. Turkish lira has fallen, since 2000, fallen 30 against the u. S. Dollar five times. So i dont think these are going to spread to contagion. What people are more worried about the spread to china. The bigger question. Yeah. And george, does that concern you as well . Or have you kind of shut out the noise from the emerging markets and viewed the moves in the u. S. Markets hang on one second, george. Hold that thought. Phil lebeau joins us. Sue, breaking news from the faa in terms of slap hairs that were being divested from American Airlines. Theyve awarded 27 slot pairs to love, thats south weft airlines out of d. C. Reagan national. So southwest getting 27 slop pairs that used to be with american. They are now going over to southwest. They will increase daily departures from Reagan National from 70 to 44. Jetblue earlier, slot fares, part of that divestiture. And back to our guest, george, asking whether you were finding opportunity in this market that comes, of course, at the cost of the emerging markets . Yes. Its interesting, because emerging markets are not quite our world and kind of laughable, all the am kcronyms, pigs and o and on. Avoid a currency with four letters. We do that. We focus on domestic economy. We find plenty of stocks. Ton honest, may sound strange, since beginning of the year, plenty of opportunities. Weve been holding cash through the end of last year. Were looking forward to opportunities that are out there. We think this is a great opportunity. Where are you looking for opportunity, quickly . Bottom up investors. A couple stock wes like. One is cons, sort of a finance company disguised as a retailer. Twothirds of sales from people that are not cash and carry. They need financing to buy mattresses, to buy washs, dry purse, things to start a home. They charge 20 interest. Therein lies the rub. Thats why we think theyre successful. Sothebys, back to the thought you mentioned early early about Companies Buying back their stock. Sothebys over 200 years, a great brand. All listeners know this name and interesting because a lot of the activist investors have gotten involved to get them to buy back stock and pay a bigger dividend. A great company. People deal with the art marketplace due to death, debt, discretion and divorce. That happens to people all the time. The markets is vibrant. We have to leave it there. Gentlemen, thank you. Noah and george as well. Ty, up to you. Its been understatement of the day. A rough winter. Not even february yet, folks. It is snowing big time in the rockies today. You expect it to snow in the rockies. The south thaws out from the snow and ice storm. Debilitating down there. Natural gas up 48 in three months, folks. There you see actually 39 . Yesterdays big jump it is off those highs today, as you see there. Down about 7 . Dan leonard, meteorologist with wsi. Doesnt do the news at 11 00. Talks to wall street. Why, dan, welcome. First, why did gas spike as much as it did yesterday and sell off today . Tyler, i think you pretty much touched on it. A remarkable winter so far. Just unbelievably cold. Especially across the midwest and plains. Look what we have coming. Departures from normal for next week. Look at the map. Next week at least 5, 8, even 15 degrees below normal for the balance of the week. This is impressive stuff. Next week, just another unbelievable arctic air mass coming through the plains and midwest. Same areas hit all winter long with arctic air, going to be hit again. This is the prime area for natural gas usage. Most of the midwest, this is where we use a lot of our natural gas. Notice along the east coast, milder temps, due to the fact well have a couple big storms on the east coast. More snow and ice for the east and more just cold, dry weather for the central u. S. Really no surprise, based on what weve had this winter and whats coming up. So what are traders asking you today, talking about today, and what is the longrange outlook for the month of february . Well, thats the real key. Next week theyve all pretty much priced in the fact its going to be cold. Thats a given. Its really the week beyond midfebruary through the end of february, do we persist this cold or sort of get a break . Remember back in january, a january thaw during midmonth. It really eased off on the persistent cold, and theres some indication over the past couple of model rubs we could get some sort of at least a brief temporary respite in the cold during the middle of february, but we still think below normal. Probably right through the end of the month for the midwest and northeast. You mentioned that there was quite a bit of a pullback today m my guess if we get that moderation during the midmonth period, the markets will sort of retract agents b little bit. My guess. Dan leonard. Meteorologist for wsi. We mentioned that gas. Bob pisani, put him on the case. Came back from the etf conference. A couple etfs going long and short . Right, etf but be careful what youre doing. Good news. Look at the big one. Ung. In theory tracks natural gas. You see the move on the upside . Put up natural gas against the etf you see something. It diverges, underperforms. The green line . Why . The contract actually owns future contracts, and the cost of buying those future contracts erodes the value of what you own. One of the problems. Still, if you want it, the best way. Youre right, sue, go long and short. Several short and long natural gas etfs out there. Look at the boil. Two times long natural gas. If natural gaz goes up 2 in one day you go up 4 . The big problem. This resets every single day. Because of the mantlematics, it doesnt track well. So, for example, you cant look at this after one week, say, uhhuh. Its up 3 . Therefore, if i own it, natural gas is up 3 . Should be up 6 . Causing resets every day it doesnt do that. You can get days its up, down, up, down and get significant error from what it might be on a weekly versus the daily basis. Also true if you go short. Short these as a kolv. Down 2 natural gas,y make 4 . Same problem exists on the down side. All of these leverage products essentially have this particular problem. Thats why theyre really for professionals who get in and out on a daily basis who want to make bets in these particular groups. All right. Bob, thank you very much. Bob pisani. Seema modie back with a market flash. Big companies are out with earnings after the bell, and all of moving higher ahead of reporting earnings. The street expecting google to earn 12. 21 a share on 16. 75 billion dollars in revenue. Amazon expected to earn 66 cents on 26. 06 billion dollars in revenues and analysts looking for chipotle to make 2. 53 on sales of 826 Million Dollars. Keep an eye on those three stocks. Tyler . Seema, thank you. Volatile Energy Prices could cause volatile prices in the utility sector. If you fear emerging markets, utilities may be a solid domestic play for you. Greg gourd sn managing director of Utility Research at isi group and joins us. Welcome. Do utilities generally profit in weather conditions like were going through now . In the northeast and middle west . Depends. If youre a regulated utility like coned, serving connecticut, massachusetts, you may make more money on volume on the short run. Investors know returns are regulated and over time they dont capitalize the weather into valuations. However, if youre a merchant Power Generator like nrg or exelon that owns deregulated power plants in this region you have a potential to make a lot of money, seeing power price volatility on the back of the natural gas volatilityy. Thats the margens fuel for power. Nrg in particular, a favorite idea. Stocks down 4 year to date after a good year last year keeping up with the s p. We their their ebitda to be better by 100 million based on how power prices have moved in the wake of the cold weather. Interesting insights and names there. Look to the deregulated Power Generators. Asking greg a dumb question here. If natural gas is rising in price and these Power Generators lyhat as kind of the feed stock, doesnt that increase their costs for the Raw Materials that helps them generate power . The trick. Nrg burns coal, and exelon burns uranium. The Largest NuclearPower Generator in the region. So when natural gas spikes and setting the price power on the margin, youre burn aglower priced fuel, coal, uranium, you mike your spread and profit. Oh. I thought you said they were using natural gas as you said at margins. I guess. Correct. At the margins. Greg, thank you. Thank you for indulging my dumb question. No dumb questions. Thank you. Sue . Exactly. Ty. Never a dumb question out there. Mortgage rates slipped slightly and fewer americans signed contracts on homes in december. Pending home sales falling to the lowest post since october of 2011. Diana olick is live on the case in washington for us. Hi. Reporter hi, sue. So is it cold weather or hot prices . I think its a little of both. Home sales slumping to the lowest in two years. The outlook for the next couple of months, not so great. Look. Signed contracts to buy existing homes fell 8. 7 month to month from a revised down figure in november. Also down 8. 8 year over year. The realtors are blaming unusually disruptive weather. Look regionally, that theory doesnt entirely fly. Regionally sales down across the nation, but worst in the northeast. Second worst in the west. Which has been warm, dry and lovely. Down nearly 10 due to big price jumps. Blame short supply all you want, but inventories are actually up in phoenix and vegas. So that one doesnt work so well either. Rating out way report, hot, hot prices cannot be sustained given weak growth in employment. Theres, of course, lots more analysis online on our newly redesigned real estate page. Tyler . Stay warm. Looks chill any d. C. Two big management successes stories coming up. Both executives on the final 200 list of what will ultimately become cnbcs 25 most influential Business People of the past 25 years. Julia boorstin and kayla on it. And jim cramer calls starbuck as tech company that happens to sell coffee. S ceo moving in that direction. Well tell you up next on power lunch. Welcome back to power lunch. Seema modie. Social media, a fast growing part of tech on fire getting a lift from facebooks strong earnings. Linking in others posting gains. Sue and tyler . Seema, thanks. Its sue. Oh, no. Ty, we can both do it together. Facebook on fire on the back of its earnings. The stock hitting a new record having its best day since last july. Lets look what the stock is trading at now. Up 14. 2 3 . Julia boorstin live in los angeles. Hi. Facebook past expectations for revenue, earnings, noble growth and user numbers. Shares trading, alltime high. First time a majority if revenue, advertising revenue from mobil and first time it topped 1 coo saying it paid off and pushing for sophisticated measurement of impact of its ads and changes to make it easier for small and medium sized businesses to advertise on the site. With the stock up 61. 5 or so since its ipo dodged questions whether its losing popularity among young teens pointing to overall user and engagement growth. The ceo zuckerberg is looking beyond facebook working to launch a new number of mobile apps to allow users to share different kinds of content without leaving facebooks ecosystem. Like todays announcement of a news reader app called paper. Zuckerberg points the success of messager and instagram proof the model of these standalone apps is working. Thank you, julia. Starbucks ceo howard schultz, a proetian kind of guy, making a bigger bet on digital, expanding his role at the company. Whats he up to, kayla . Expanding the roll of allstead, the newly created coo. Allstead will effectively be the new ceo. All regional heads will report to him and run the daytoday operations. Schultz is expanding his focus to digital. Talked about the amazon, a turning point, watershed moment for brick and mortar retailers and wants to spend time doing that so starbucks can stay ahead of the game. Digital coffee . I dont get it. Seems interesting. How far can starbucks go into this arena . Cant get your coffee delivered to your doorstep, or can you . So much done on mobile devices. Starbucks at the forefront. 4 billion loaded on to gift cards, one of the primary modes of payment. Or loaded on to your phone. 5 million mobile transactions a week for starbucks. Able to get out in front, want to stay there. He needs to devote more time to that. Interesting. Kayla, thanks. All right. Sue, down to you. Ty, while the markets are up and the bulls are happy today, an emerging threat remains. Michelle carusocabrera in istanbul. More from her in a moment. And transmits up 133 points. Following the markets for you when power lunch comes back in two minutes time. Welcome back. How is everything . Theres 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 couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. Whatswithout the thinking capitathat makes it real . . Whats 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. It can change the future. 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