Save the iconic brantd. It is tuesday, january 31st, last day of the month. Squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen and Andrew Ross Sorkin. And we have a big lineup of newsmakers ahead for one including dow chemical ceo an andrew liverus, Robert Nardelli, mike jackson, fred smith and Jeremy Siegel. If the dow and the s p 500 finish near these levels, it will be one of the best starts in decades. The dow fell away from 14,000 after the gdp report surprised investors for the decline for the Fourth Quarter. The index is still up 2 for the month and it is shaping up to be the best january in 24 years. The s p 500 managed to hold on to the 1500 level yesterday. That index is up 5. 3 this month. Will the january barometer kick in . In 61 of the last 84 years, a strong january meant a positive year for stocks at the rate of 3 . Here is another statistic for you. The s p 500 has finished january with a 5 or better gain just 11 times since 1950. In ten of those times, it finished the year with a double digit gain. The only exception was the crash year of 1987. So we have to wait until 4 00 p. M. To find out if the is he is he is on. Right now, s p futures are off about by about 3. 5 points. That is true, becky. Facebook will be a stock to watch today after they released forty quarter results. Fourth quarter profits came in at 17 cents a share. Thats two cents ahead of estimates and revenue beat expectations in a coming in at 1. 59 billion. The Company Getting a big boost from its mobile business. Facebook says as of december, 680 million active users were accessing the site now on smartphones. That is up a whooping percent from 2007. The stock has been on a comeback trend. It is off in part where profits came in, where the expectation was. Still, people say you have to be growing at these rapid, also crazy clips. Amazon was the story yesterday. Up 23 points. They missed sp eed expectations. You say it and its like, where am i even saying it . Its up 22 points. Facebook, great numbers, down. The senate is expected to vote this afternoon on a bill to suspend the debt ceiling for three months, following the house. This would allow more house for debate on the fiscal issues were facing. The Senate Version includes several republican amendments, though, including matching spending cuts for every dollar increase in the debt ceiling. Those amendments expected to be defeated. The bill wont technically raise the debt ceiling, but it will suspend it until may 19th when it will be raised by the amount that the treasury borrows in the interim. Thats how its going to work. And markets, as weve been talking about on a tear this month with the dow having its best january in decades. But will yesterdays surprising drop in gdp reign in the bulls, it says here . Lets get a read on the state of the economy. At least it wasnt a that kind of rein. Theres three of them. Anyway, joining us for the next hour is bob bruska. Thats fao no. You cannot. Fao economics. As becky said at the top, things are going to go really well or the market is going to have an 87 crash. I like the binary outlook. Everything you said was so good until you gout to that point. He usually wears one of these very clever ties. Im not going to give him any there you go, joe. You didnt forget because you are getting up there. Up there . Close to his age. I have to put it out the night before. I lay my clothes out the night before, too. Do you, really . Oh, yeah, me, too. Well, my wife is sleeping. I have to do that. All right. So did you, when you saw the down 0. 1, what was your did you immediately explain it away . Did you express shock, chagrin, angle, denial . No, i dont have an ee morm attachment to gdp you cover it long enough, and i cannot say that i dont have an emotional attachment to it. When its crappy, you know people are not going to get the jobs. And when its good, things are good for everybody. Its a technical number. Its a tragedy that things arent growing more. You had a 22 drop in those earnings. Big deal. And so, you know, i had a lot of people call and ask me, why did this happen . People are telling me it happened for this reason. I read the paper and it says the white house says that they think it happened because people are concerned about the next spending sequestration. And i think, what a bunch of crap. Did obama say it was the republicans fault . I saw that. I didnt see that. But these are the kinds of things, look at gdp. You can see why it fell. But then people go beyond that and ask it in some femetaphysic way. The dividend fell under pressure. But when you look at what was beyond the gdp components, we had a nice spice in consumer durables. Some of that was people buying cars after the storm and so theyre spending Insurance Company money. You had a light increase in inventory compared to the First Quarter. That takes some of gdp away. You know youre not going to have that Consumer Spending for consierms going forward. You have declines in both exports and imports and that had a solid impact on gdp. But you have to be concerned about whats going to happen with exports and, of course, st weak imports. You have to be concerned about that being weak. Theyre not negative year over year yet, but the flows have slowed down and having declining exports and imports really a bad sign for the economy. I look at the things that gdp have to do with trend. Its the best bad gdp report youll ever see. I dont agree with that. But you dont think well swing back to 3 growth . I would be surprise. 2 . Were probably in the 1. 5 to 2 range. Why is Consumer Confidence falling off the cliff by every single survey that you have . Michigan, conference board, the bloomberg index, all of these indices. The consumer is in rotten shape. Taxes maybe. Taxes are an issue, but. Yesterday, i was told walmart are trying to deal with this now. People are coming in to try to buy things and people are getting pennies out of their pocket. Walmart, they were able to see that people would be coming into the shore as their paychecks came in. They were coming in really late at night on a monday or whatever the cycle was. My brother is in food sales. He says at the end of the month, and you dont even have to go in and is visit some of the merchants. People dont have money and theyre not really buying anything. Theres a real cycle. Did you hear it being used at the end of the month . I like that better than at the end of the day. Thats underused. I hear people say at the end of the day. Sometimes we ask them a question and they say it five times in the answer. Every time they say it, they go, it was good that i saved it. At the end of the year, what will the toelgdz to 13 have been . I think around 2 . I dont think its accelerating. Im concerned about the impact of Global Growth, im concerned about all this political stuff and im concerned the economy really isnt faring on all of its cylinders. People seem to think its accelerating and i dont think that 37. We do think that. I think the consensus is 2 to 3 , until yesterday. Even yesterday some people were still defending that. Its almost like we need the last four years, they see it as sort of a reaction to the financial crisis and now they think there really isnt a new normal and we deserve to grow back, even with all the stuff that the government screws up, we wait a minute, with a weak 24 basis, its more likely that you get a bigger number now. So i mean, technically speaking the way you have the numbers together, it makes stronger growth more likely Fourth Quarter to kwarlt quarter. Fundamentally, what does this tell but the economy . And i dont think theres that much of a Silver Lining in this report. Thank you. Lets take a look at the mokts this morning. The fourchs are morning are indicated a little lower. Dow futures down by about 22 points. Yesterday, the dow dropped by 42 points. That was the third loss in the last 15 sessions for the dow. Youve been killing me on that. The s p is down for the second time in seven sessions yesterday. Take a look at oil prices this morning and youll see Energy Prices down about 30 cents. And at this point, the tenyear is yield iing trouble role, please. Were frozen at this point. Yielding 1. 972 . The euro yet was at a 14month high versus the dollar. And you can see right now, the dollar is stronger against the eu euro. Gold prices are down by about 6. 30, 1675. 30 an ounce. Right now, lets get to the Global Markets report. Ross westgate is standing by in london. Good morning. We havent seen you in quite a while. You have a lot of red behind you this morning. We have, indeed, becky. I saw andrew more recently than ive seen you over there in davos. Yeah, look, we are down. You can see decleaners outpacing the decliners. Were down at the session low. Down around. 0. The spanish market down 1. 5 . Thats down to bank stocks. Theyre all off heavily because of santander. Santander is europes largest lender in the eurozone. Stock off 2. 3 today. Theres 2012 net profit more than halved hurt by big losses in real estate, writedowns and property assets. Also key growth spots as latin america down, as well. Theyre setting aside another 18 billion or 19 billion euros for provisions in 2012. They said they may still sell some more addette az. Theres a lot of restructuring going on, as well. The market has been focused in on the fact that theyre going to raise their capital, but theyre not going to do it with raising equity. Theyre going to do it by retyping their risk model. So a bit of relief about shareholders about that. Theyre beginning to shake off the global downturn. Theyre got a lot of expires challenging with and theyre saying this year is going to be a pretty tough year ahead. Thats why we stand at the moment. Its all about the Corporate News today. Back to you. Ross, thank you for that. It was good to see you in davos. You have to come over here one of these days. You should come over, ross, for the academy awards. Because all six actors that played 007 are going to be at the academy awards. Youve never actually played him, but you channel him every day, basically. Can you are you free that weekend . Do you know . Or you cant really talk about it . You cant really talk about where youll be. Well see. When is it . End of february, early march usually. I dont know what the exact date is. Ill look it up and send it to you, ross. Wheat get you over there. Did you see the way he looked at it . The way he holds hits hands. And its like, im not anxious to answer. A man of mystery. In the meantime, were going to talk facebook. Coming up, should investors like facebook shares right now . Thats a like with the thumbs up, you know what i mean, or do some clicking elsewhere from profits. Were going to do some next. And you can stop ordering twinkies. The iconic pound shape has been froz frozen. Well talk more about that at 6 50 eastern time. [ male announcer ] it was designed to escape the ordinary. It feels like it can escape gravity. The 2013 cclass coupe. Starting at 37,800. Welcome back. U. S. Equity futures down about 21 points. Markets did okay yesterday and it didnt go down at 9 30 right away. It meandered around all day long. But the s p did close at its lows of the session and thats something it hasnt done all year. What would you do if that if the government report said youre in a recession . If youre shrinking . Nobody likes shrinkage. Well, one of the stocks were going to watch today, whirl pool, the appliancemaker reported quarterly profit of 229 a shares, six cents above estimates. Company predicti ining earnings above the estimates. Whirl pool has been able to demand hiver prices, as well, benefiting from demand. Retailers dont like it . Nope. Shrinkage . Unless youre on a diette, then you like it. George castanza does not like it. Let get to the National Weather forecast from the weather channel. Alex wallace, you guys, really, is it that none of on you work more than one day a week, alex, or are you mixing it up . I could use a gig like that. Its all just a mixed bag. Thats how we do it around here. But as we follow things this morning, its an unsettled time for us. Heavy downpours. Looks like d. C. , baltimore out of that rain, but boston, not the case. Not only is it wet, were talking about very, very strong winds in a lot of these areas. Weve already seen a wind gust in boston up to 60 miles per hour. Well be watching that throughout the day. Thats why we have wind advisories that are in place. High Wind Warnings up in new england. Thats where we think some of those winds will be stronger at times. Throughout our thursday, look at that, boston, 30 to 50mileperhour winds. A little less as we head farther to the south from new york down towards philadelphia. But still, 20 to 30mileperhour winds. Very, very strong winds throughout the evening hours in these spots. Then we head westbound to the snow, finding that all around the great lakes, even into parts of the ohio valley. These are some of the areas that were very, very warm. Just 24 hours ago, cincinnati, now youre seeing some snow showers in place and the cold air mass is going to continue to final all the way down into parts of the south 37 were talking temperatures that are going to be running 35 degrees below the average. Guys. Okay. Thank you for that report. Were going to move on and talk about facebook this morning. Facebook reporting Fourth Quarter results after the bell last night. The social networking giant reportedly beat analyst estimates, delivering earnings per share of 17 cents versus street expectations of 15 cents. Thats the good news. The Company Reported revenue of 1. 59 billion versus expectations of 1. 53 billion. With us now to talk about his broad outlook on the future of facebook is john steinman, president of buzz beat. Good morning. Good morning, andrew. What do you think of this . A beat, stock after hours is down 5 . Seems to me its mostly on the fact that theyre spending a lot of money. Right. I mean, the market was expecting growth of 30 to 40 and they came in saying theyre going to have 50 op ex growth. What did you get for that op ex growth . Now you have a great engine on search. Ive been using graph search. Search for friends like restaurants in new york and you can find all the restaurants your friends like in facebook or san francisco. Do you think its better than using google . No. But i think thats what youre getting your for this all these things are firing on all cylinders. 2 of their revenue from mobile, they had no mobile ad revenue two quarters ago. Everything the company gets asked to do, they do. And then its never enough. The stock was stuck at 20 and in a quarter moved to 30. So its down 5 today. But its never enough because its still overpriced sflp compared to linkedin, compared to amazon not compared to amazon at this point. Who knows whats overpriced and whats not. But its kind of powerful to see them move now to 65 of advertising. They moved off of people using those thumbnails on the true advertising social product. So its working. We had a guy on from davos last week, from reputation. Com who said that he was seeing anecdotally a sense that people were using facebook less. Yes. But the data doesnt prove that out at all. If anything, daily active users over monthly active users are at an alltime high. 59 of people that access the sight monthly now access it daily. So theres no data that supports that. And is there any data to support that they have cracked the code, though, on mobile advertising . Well, zuck made a great point on the call. With those ads, becky, we talked the last time about whether or not this would now people. They found decreasing comments in likes, only 2 . So it modestly impacted the engagement on the social impact of mobile. He says theyre putting a few in everybodys news each day now. They can do more. Do you have the actually numbers of people who use it daily versus monthly . I dont even use it monthly any more. Right now, half of those billion people access it daily. Wow. Yeah. Its like soda or water. Thats basically what facebook is like at this point. But when you look at what google s has done, they created a model with no real revenue behind it, but forced to use it a million times a day. Will they ever beat google . When you think of the valuation that google has today, and the math behind that, do you see facebook being that . I dont know the answer to that, but i do see a lot of parallels. How many quarters do we have people complain about google spending . Every quarter, why is google spending so much . Ultimately, these are r d intensive companies. I think graph search is a glimpse to a product that could what is graph search eventually . Graph search may be the way you discover about things around you. You search first for your friends, you get your friends results and then if your friends cant answer it where are you on bing, by the way . Would you use bing over google . Consumer habits get deeply engrain engrained. If you do bing searches, the results are as good. Are they better . I dont think you use bing unless the name changed to bada bing. I dont like it. If im going to have to go to a Facebook Graph search, im going to eat in. Everybody is already on facebook. Your not curious what restaurants your friends no. I dont want to see them. If theyre there, then it defeats the purpose. They could have been there yesterday. I want reality over Virtual Reality. This is a Virtual Reality were both old, john. Were both old. Youre not going to convert us. Its not going to happen for us. Ill keep trying. You, are you going to use the facebook thing to find out where to eat . I rarely do. If he doesnt do it, its not going to happen. Do you do it . I used it in san francisco. Also, its great to be able to go in there and say restaurants my friends like on the upper east side. Thats a great search to do. If i go to yelp or Something Like that, its random people. Four square has it, as well. If you go to for square explorer, youll see all the places your friends like. Ill try it. That does sound appealing. In a place you dont know what youre doing. Right. Recovery shows a soft spot. Thats how the journal says it. In, times, its down here. How about our friends in the uk . The u. S. Economy in recession. They put our flag there. Theyre so happy because theyre at minus 0. 3 . So misery loves company. Were not like you and were not going do