Train continues philip morris, kkr are among the names to watch before the bell today. News corp. , activision. The ecb will announce its policy decision later today. The market is hanging on those two reports. Kayla, thank you very much. Weve got some big Corporate News for you this morning. Twitter, that was your top corporate stories. Shares getting slams slammmed. The stock is down big time, about 17 . Wiping out basically a sixth of the companys value. Earnings and revenue did beat the street. That was not the problem. This was. Slowing new user growth and a severe decline in timeline use. Thats when a user refreshes their twitter spaj, being used as one of the key measures of how active users are. Ubs out this morning cutting price targets from 55 to 35. What does this say about twitter . These crazy valuations. I dont want to say they havent revolutionized the world. They have. But is it possible that this is the beginning of the bubble getting ricked . I was thinking about this a lot last night. Twitter has been on my mind a lot lately. What dick said last night in the Conference Call is they wanted to make it more visual, they wanted to make it easier for users to message each other. And i was thinking, that sounds a lot like facebook. They seem to be on ultimately a collision course. Plus youve got snapchat. I think twitters biggest problem, though, is user you er autthentification. Ill give you an example. Two weeks ago, you know how it says soandso followed you and 11 others . Yes. I was on my phone and i noticed that four of the people who followed me in one day have the same picture. So i had a similar experience, but i did it of my own volition. There was all this talk about how do you verify the users . Someones Follower Base jumped up to 100,000 people. There is a way you can see whether it is legitimate or not. I ran my own and sadly i found out about 17 of my followers are either fake or inactive, whatever metric they use. Mine is higher than that. So i ran a number of other things. If advertisers arent convinced that he or she and the numbers they got are real and that kayla tousche is not a real human being, theyre going to be much less interested. Thats a major problem for twitter. And its a problem for this social clout that a lot of people are putting a lot of stock in. Theres a Company Called viral media boost where you can buy twitter followers. I said how easy is this . Did you buy twitter followers . I did. 500 for 5. I wanted to see what it was like. They email me every single day asking me to buy more. And my new feed was completely filled with followers like i love teen girls. And i said, i did not follow those people. Get out of here. I wish i could remember where i read it. There was an article a couple of weeks ago when i got caught up in this how many users are real or fake. There are twitter forums in china, now they have people paying one penny a retweet so they appear active. Except theyre not active engaged users. Theyre getting paid a penny for retweets. Thats a major problem for twitter. I dont disagree. I think the valuation, the longer conversation will have it. We have three hours to do the show, but in the mean time, sony, theres big news out of tokyo overnight. That Company Announcing a major i call it a major re structu structuring. Its an attempt to turn around its structure operations. Sony now selling its pc businesses, spinning off its tv businesses and cutting 5,000 jobs. The Company Warning that it expects steep losses this year. I talked to activist investor dan loeb about sony back in november. Here is what he had to say. We remain bullish on japan. We wouldnt have made the sony investment if we didnt support abe and kuroda and everything that theyre doing. B but, you know, politically, economically, and from a monetary standpoint. So does sony fit into that as a back drop and anything we do has to make sense from a macro perspective. Sony has been and will continue to be a beneficiary of a weaker yen and possibly from some kind of a structural reform. I put the sony move in terms of a baby move. This is an admission of defeat. They were adamant about loebs position not being the right one. Even though theyre not doing exactly what third point wanted, theyre moving in that direction. It was a 50 stock 60 bucks six year ago. Its under 15 today. Theyve tried to weaken the yen. What is sony now . What are they . Are they a commoditized maker . Consumer electronics . No, no, i mentioned this on the show yesterday. The entertainment business is worth more than the whole stupid thing combined. Right now, if you just spin off the entertainment value, you would get more for your company. Theyre laying off 5,000 employees and which is a huge deal. In japan, that doesnt happen. It is slightly amazing that theyre dining it. I wonder where the 5,000 jobs are coming from. We should try to find out. Dan is sold on some of these position of sony . Some of it, i believe, in the last quarter. But there was weak ng in the japanese stock market. Thats the understatement of the morning. Youre welcome for that. Meanwhile, pan done doras year guidance falling below current consensus. Shares right now down fairley sharply. Down nearly 10 . On a call with analysts, pandoras ceo said the company will expand its marketing and manage the costs of licensing music. I dont know which program you guys use to listen to your music. I dont use pandora because its got flames, it has too many ads. For me, its well, try pandora one. 39. 99 a year. But the app isnt as good as and you dont have free choice over your music. I just wonder how they can increase their marketing to win over users that they probably believe is a superior product. Look at the competitors out there for pandora. I pay the annual subscription fee. During the commercial break, can you give me your password . I would, actually. It depends. Well make a deal. The folks at target pandora, spodify, mog, itunes radio google play beats music, songsa. Songsa is fantastic. But beats music is trying to do the same thing where instead of you picking an author or a singer, its what are you doing . Are you cooking, relaxing with friends, sitting by the fire . Whatever it is, theyre going to make a play list for you. So a lot of competition out there. We should publish a play list. I do. Other news this morning, cocacola, now bought a 10 stake in Green Mountain coffee forever about 1. 3 billion. If youre asking what the heck does cocacola have to do with coffee, here is what it is. The maker of the how do you pronounce this . Keurig, saying now coke is going to help them launch its new cold drink machine planned for relief as soon as october. Shares of Green Mountain soaring on that news. What does David Einhorn thing about this . He had a huge short on Green Mountain. In pattis blog, she was talking about how shorts are going to get killed from this trade. It was up as much as 55 in the after hours yesterday. There was a lot of blood on that trade happening. Taking a look at shares of soda stream in all this, the rival is getting hit hard, as well. Meanwhile, were joined by the chief global economist ott did you know brad street and lou is with us, as well. Paul, i want to start with you. At the beginning of the week, no news is bad news. Now it seems that markets are trading a little bit more narrowly, but were all waiting for the jobs report on friday. How are you positioning yourself today if youre investing . So as were looking at the market right now, we think a lot of the news will dissipate as we get into the second quarter. This is pretty unique for this cycle that we get these types of news events and then we get some concerns over the recovery. But then when you look at it, the recovery performs pretty much consistent with expectations. So we saw it in 2010, 2011, 2012, 2013 and again in 2014. We look at the resilient city of the u. S. Economy being pretty high and improving to some degree. That gives us confidence that what well see is return to some stability in the back end of this quarter. Lou, if the recovery is resilient, why is earn worrying so much about weather . We know the weather is bad in january. We know its affecting the indicators that weve seen in the last few weeks. A lot of people are quick to say this recovery is derailed . I dont think you can say anything more about that. Its something a lot of people keep in the back of their mind. The inventory built for those quarters is the last in history. The weather the weather is such that the weather has in the past derailed what may have been a faster recovery. And i think that there remains concern about the strength of the recovery and whether it can sustain a bout of bad data because of the weather. Also, i think as far as the stock market goes, it has a couple of headwinds that it didnt just a couple of months ago. The feds tapering, which we didnt know if the stock market would start to have trouble when the taper began or when they eventually finished with the qe program, but it certainly seems that theyve had trouble as soon as the Program Began because it began at the beginning of january and so, too, was the high in the stock market at the beginning of january. Conversely, the high pick on the yield on the tenyear was the end of the year. Weve been hearing fed Officials Say the hurdles are high for them backtracking on what theyre doing with the taper. What do you think they need to for that . I think a yellen fed would rather depend more on forward gooits guidance and try to get the market to believe fully what they plan to do as far as the future path to the fed funds. The qe is finite and they would rather have something more durable than that. So i do think that what i dont think they would change their mind on the taper with just this jobs report. I think you would need a consistent change on a variety of data, including this jobs report and probably the next one being a stinker, as well, before they meade meet in march for them to consider changing the pace of the taper. Paul, isnt it healthy that were having a bit of a pullback . Absolutely. Id love to get richer in my plan. Thats not realistic. I think, again, we should be concerned about some things in emerging markets. But when you look at the u. S. And look at the u. S. Economy, the restructuring that weve seen in corporate balance sheets, what weve seen in terms of the health of the corporate sector, were far down this path of healing. I think its important that we did on think about that. At the end of the day, the u. S. Is poised to grow close to 3 this year. I worry about getting bit by a rattlesnake, but its not front of mind every day. I wouldnt want it to happen. How big of a worry is this for you . Its a worry, but its not a top five worry. Importantly, i think well get back to the resiliency of the health of the economy driving economic growth. I think thats very important. Yes, we get caught up in the immediacy of the moment and concerns about the fed with regard to the fed, by the way, the fed is on a trajectory to back down in tapering. Probably wont finish it until the end of this year. Once theyre on that trajectory, theyre going to go down that trajectory. So we had a guy on yesterday, a technician who said the markets would fall 43 . How crazy is that to you . I dont know rule anything out that never, ever, ever would it happen. Meanwhile, this technician has been saying this since the beginning of last year. And eventually he may be right, but i think the point being that a 40 correction would have to be driven by a lot of changes. Right now, the fundamentals dont point to that. Lou, im not saying that tom demark, and thats who theyre referring to is right. Demark is one of the few people out there that has a technical indicator named after him. Theres john bollinger. Do you listen to him . Do you poll the demark indicators . No, i did not. But i am familiar with him and have read stuff on and off for years. I remember he was really big in the late 90s, early 2000. He was very, very correct. Some people and to your point, kayla, well taken. He has been taking this for a while. I think the thing with a technician like that is when you get certain indicators that suggests a probability for something, you would be remiss not to bring it up. I was saying that its following the path of the 1929. Im not a big adherence to looking at charts from the past and saying, oh, this is mimicking me. Ive done that a lot in the past and it never seemed to continue to mimic him as a key point. But if he sees a you know, something technical that results to him that a bad market is about to come, its not something that he should soft soap. He should say this indicates to me that the market could trade off significantly. He would be remiss otherwise to his followers if we didnt mention that. Guys, well be talking markets throughout the morning. But for now, paul, lou, well leave it there. Brian was also big in the 90s, but we dont give you a hard time about that. Im still big, physically. Its hard to believe ive been doing this for 17 years. 17year overnight sensation. Did you go to disney world . Coming up, were going to talk about the magic kingdom. Frozen. Ive now seen this movie twice with my kids. The hit movie frozen with your kids, sure. And i would go watch it by myself. I found myself listening to this song. I shouldnt admit that. The hit movie helping the bottom line, but what about broadcast tv and the theme parks . Do investors have any big worries with the mouse house . We have that right after the break. Lets see if the nation will remain frozen through the weekend. Alex wallace has the forecast for us. Have you seen this movie . No, i havent. Youre in the weather business and you havent seen frozen . I know. Its sad. Ill catch it when it gets on dvd. How about that . Lets talk about the forecast. On the west coast, were seeing something we havent seen a lot of in a few months. Rain coming on in and snow throughout the sierra. The last time San Francisco saw an inch of rain, christmas day. Not christmas 2013, but christmas 2012. So it has been a long time. This is much needed rain. And were going to keep things unsettled as we bring in these disturbances off the pacific here through the weekend. Much needed moisture coming into an area where the drought has become worse and worse here. So through the weekend, we will take that. Meanwhile in the east, through the weekend, were going to be tracking a couple of disturbances. And theyre going to help to provide us with a little bit of snow. The key word is a little bit. Not looking at big time snowmakers, but snow for saturday in the midatlantic. And then on sunday, weve got the second distemperatures turnance bringing us snow into parts of new england. Thats your national forecast. More squawk box coming back in a bit. Let it go let it go cant hold it back any more let it go let it go disneys hit movie frozen the Walt Disney Company reported a seller Fourth Quarter with strong performances from across the board with Cable Networks and movies. Frozen was the big hit. Bob iger appeared on closing bell and spoke about the disney economy. Were offering product to consumers that they feel not only that they want but that is well priced. Id say as we look at the economy, we dont really you know, we see a relatively decent economy for us today. We dont really have much visibility into the future. Its hard to look ahead and feel overly confident. We just feel that were very, very well positioned in the marketplace. Here to dissect the quarter, tony weibel, the managing director of median entertainment. Good morning to you. Good morning. This frozen was not supposed to be a breakout winner at all. People were worried about this film honestly. Disney animation has done fantastic. You look at tangle, wreck it ralph, freeozen, it helped t it helps infinity. My question is, how sustainable i dont want to say how sustainable a model is because if you do enough of them, it always works. But thats the issue. The studio is trying to hit home runs. Youll talk about frozen and get a garage margin. You talk about avengers. Dallas john carter for that, a lone ranger for that. Theres a mixed quarter here. The tv business was a little weaker, the parks business is a little bit weaker. Those things are a little bit more troubling. Lets talk about parks first. They keep hiking the prices, which seems to be helping them in the shortterm. Can they continue to do that . Yeah. I think the sorkin family will find these my magic plus bracelets as a driver behind that. Basically, its a technology, you use your casino bracelets to pay for things. People will probably go to the parks more often and spend more. But tv broadcasts, not as hot in terms of profits . Yeah. So any the entire tv industry has a lot of pros and cons going for it. One of the biggest things weve been talking about is amazon getting into the cable tv business. That could be a nice positive here. People arent expecting it, but i think they could offer tv at cost. And in doing so what do you mean by that . So what were saying is that amazon, a couple of weeks ago, we wrote a note basically highlighting the fact that amazon could be putting out a box maybe later this year and offer tv at a lower margin structure than at todays system which has to have a 40 margin. Theres a big battle of usage based billing of intriernet dat. They may need this as a Political Tool to fight that. Still, espn, major cash cow. I want to ask you, obviously we have nbc sports network, fox sports 1 with a major push. We saw the ads during the super bowl. Any indication those channels are cutting into espns profitability or wealth . Not yet. These sports deals are long in terms of duration. I think theres room for everybody. What i will say in sports, this year is going to be a painful year. Youre resetting rates on mlb, more importantly the nfl. I think there will be a 50 increase there. For disney, what people may be missing at the beginning of this year and at the beginning of the next fiscal year you mentioned amazon. What is the chance that a netflix or amazon starts bidding for sports rights . What i think is funny is netflix streams their quarter on youtube. They lack the ability to stream live events. Its possible that you see these Companies Adding complimentary channels the same was as nbc. Youre saying disney is going to sell their content over amazon . Because i was going to say, you cant get all the disney movies over netflix. Cable tv packages, you know it. What amazon brings to the table is competition. Ultimately, amazon would have to pay a premium because theyre a new entrant. Thank you for joining us this morning. Sure. Pretty interesting. This whole business sort of well, you look at the story in the journal abo