tomorrow's "squawk box" live from davos. becky is in switzerland holding court with the most powerful business leaders. conversations you can't afford to miss. let's go "around the horn" with final thoughts. "the science times" is my favorite, really the best part -- >> yeah, we can agree on that. >> we love "the science times." they interesting show tectonic plates down in haiti and there are other fault lines down there and it's scary. >> speaking of fault lines, the implication on bernanke. is it really a smoking gun memo out there. >> let's suggest. >> let's look at one more old picture and we'll pick that up why he's talking about what is your final thought, gary. >> do you remember what stock i mentioned. two stocks i mentioned on that show. >> apple computer? >> no. >> bay banks -- >> and suncorp. >> in '95 you were mentioning sun corp. >> that was a home run. not lyiike anything now. >> my quick thought the markets look exhausted, good earnings, baked in. we have a doth of of buyers. >> it was darth vader. >> dirth. >> no, it's darth vader. >> what do you have coming up on "squawk on the street." >> lots of stuff. tune in. >> i love focusing on this. happy to be with you. look forward to being back soon. >> yes. >> nice hair, by the way. >> thank you. make sure you join us -- becky will be in davos tomorrow. "squawk on the street" is coming up next with david. all right. we begin with breaking news. s&p, case-shiller's latest report showing -- actually, we're not show what it shows, mixed messages maybe but the annual rates of decline in u.s. home prices stressed at the rates of decline. still declining. but they're continuing to improve. >> right. joining us to talk about it right here as the new crosses, david blitzer, chairman of the s&p 500 index committee. david, we appreciate you taking the time. this number goes through november. we'll talk in a moment about why that is significant. but what would you say overall? still as hark himark highlighte improvement at the rate of decline. is that the best we can do? >> just about the best we can do. this is somewhat of a mixed report. on the good side, california looks a whole lot better and california is a huge chunk of the housing market. and it has been a very large piece of the difficulties and problems in the housing market. and the three cities we tracked, san diego, los angeles, and san francisco all showed some improvement month to month and california feels better. we also have four cities that actually showed year-over-year gains, which is the first time that's happened, essentially in modern history. but digging through the report, there are still some very, very weak spots. things like tampa and las vegas are at their lows. new york and chicago both saw month-to-month declines that aren't exactly cheerful. so it is mixed but there are some bright spots. >> dallas, denver, san francisco look like the ones with one-year improvements. yesterday in the home sales data we saw loud and clear people thought the home buyer tax credit was going away for first-time buyers and there was a plunge in sales in december. do you have any sense what case-shiller will show on that one? >> clearly i haven't seen any data. the reason we have november is it takes a while to compile this and get it right and checked. i would like to have instantaneous data but there are a lot of things we'd like in this world. gentlemen, a sharp drop in existing home sales probably does have an impact. it certainly is not a positive factor for the december numbers we'll see in a month's time. on top of that, foreclosures continue to sort of ripple around the country. foreclosures were probably relatively light in december in part because of a lot of financial institutions, i guess, felt you shouldn't do that in the middle of the holidays. but going forward while we will probably have another bump when the home sales' effort finally ends in the spring, we'll still get bumped up and down by foreclosures for probably all of 2010, if not longer. >> david, i understand the validity of year over year, but it seems to me month to month is what tells you whether the trend is turning. and as i -- as that list went by, it looked to me that there were only maybe half a dozen places where month to month prices turned up. >> that's right. and that -- to me, that's one of the distressing things. we have seen -- we're not seeing the kind of strength that we saw back in the summer and the fall when we saw substantial majority of cities saying month to month gains. we have some spots of weakness. we have some shifts going on. and it is getting increasingly difficult to say, well, it's straight up from here. >> yeah. >> in fact, it's definitely not. i think we're coming off the bottom as is pretty clear, but this is not a v-shaped recovery in housing. it's up a little and then a lot of creeping. and we're into the creeping game right now. >> okay. david, thank you very much, sir. >> thank you. >> let's hit the markets. we start with cool breeze, bob pisani, here at the big board. robert? >> good morning, old friend. not a big move here in the futures as as a result of the case shiller numbers. asia saw nice moves here. we had the shanghai markets down 2 1/2% overnight. s&p revised japan's sovereign credit outlook to stable. a lot of big corporations get a big part of their money overseas here. dupont had earnings today. 70% of their sales overseas. very good sales particularly in asia where the recovery is taking hold there. they did raise their 2010 guidance as well. johnson & johnson, they get about half of their top line overseas. again, they also saw very impressive growth overseas. 6.4% overseas, 2.6% growth here in the u.s. very cautious outlook, though, for 2010. delta air lines, very mixed numbers on the airlines. they're down 4%. they reported a greater-than-expected loss but are seeing smaller demand in improvement in the business. trader talk. bertha, how are we looking teg nasdaq? >> apple extending gains again. it blew away the street when it came to the earnings. bottom line, revenues on the top one. mac sales were especially strong, of course. the second part apple story this week will come on wednesday tomorrow when they're expected to reveal the tablet. the halo effect from happenle, not necessarily glowing over chip stocks. we have applied materials up 1 1/2%. the idc says chip sales in the fourth quarter were at a record. they didn't say what the number was but did say they're up 33% but they think chip sales are back to normal but that does mean they're week and we have chips selling off after leading the charge yesterday. alan pharmaceuticals getting an upgrade over at citi. it's also moving higher on the diabetes move. mike will have nova's ceo in a minute. he will tell you more about that in a few minutes. concerned about china's bank-lending rules definitely having enough impact on oil prices. what does this mean for energy demand? that is what investors want to know. we are looking at oil prices below $75 a barrel, as we have higher reserve ratios for chinese banks taking effect overnight. we are also looking at the strength in the dollar. it continues to rise here as we speak. that is limited -- showing the limited risk appetite that exists now in the commodity sector. we are looking at the strength in dollar weighing not only on oil and gold. gold prices below $10.90, down nearly $9. silver down even greater. and we'll take a look at what is going on in the commodity sector generally. rick santelli in chicago. >> thank you very much, sharon. quickly, let's talk about the gold. $10.84 to $10.86, technical support. three is the magic number. as far as the dollar, should the dollar index close where it's at up fairly strong at this point, it will be the best close since september 1st. some of the drivers in this which are, by the way, flattening the yield curve, pushing 10s and 30s down quicker than shorter rates may be the downgrade by s&p of the sovereign credit outlook for japan to a negative outlook. and we have ceos also by s&p downgraded. all of this in the credit scenario continues to be present and accounted for, even with a lot of the work that has been done. mark haines, back to you. >> thank you, rick santelli. here's your check on asia. down across the board except for bombay, which was unchanged. what is going on in europe, you may ask? guy johnson is here with the answer. good morning, guy. >> good morning, mark. we are down again here in europe. the selling just keeps coming on our side of the pond. a few markets in the green but most of the main ones are trading lower at this point. the china story certainly a big factor in that. the other story that's having an impact on our side of the pond is what is happening with sterling. it took a big hit earlier on in the session. the reason for that, uk gdp coming out today. the uk is finally out of recession but it was only a .1 on the number today. the bank of england is looking for even more than that. the sterling data surprisingly strong. gdp number surprisingly weak. ge's industrial number was good. flipped siemens is delivering out of germany. sthae that sector getting a bit. and john was mentioning exports and that certainly is an impact in that as well. back to you. a basket of diabetes drug stocks are rising and they are led by this one, novo nordis. they are getting approve add for a new type of diabetes drug. the ceo with us this morning. mike huckman got that interview. he will take it away, mike. >> look at that, the brid asked $3 above yesterday's closing price. the first two quarter's ms drug and now novo nordisk shot for diabetes. three others are waiting fda approval of a similar once a week drug. expect those shares to rally as well. join meg from a cnbc exclusive from copenhagen, denmark, is mr. lars sorenson. thank you very much for being here. >> good afternoon, mike. >> when will you launch this drug in the united states? is your sales force ready to hit the ground running? and which doctors will they be targeting? >> our sales force has been ready for months now. this approval process took somewhat longer than we anticipated. so we'll be launching within weeks. we will start out hitting the key opinion leaders, specialists and then broaden out gradually to include all gps in the u.s. >> mr. sorensen, which type 2 diabetics can go on victorza? can they be on other diabetes drugs at the same time or do they have to go off them and take it all by itself? >> vivtorza is a second line treatment for individual 2 diabetes that cannot control blood sugar which is on the most commonly used drug. this means that victoza can replace some of the other second line drugs that are currently being used in the u.s. it is an injectable but very powerful blood sugar-lowering drug with a lot of other benefits. >> mr. sorensen, why are you pricing it in line though with a similar twice a day drug called byetta from eli lilly a? >> we have made an assessment of what an appropriate price would be and we feel this is an appropriate price for a beta product. also, of course, viewing the fact there are competitive products that are going to enter this market in the future, and we need to be competitive, we need to have a strong launch. we think this is good value for money and that's why we picked the price around the current byetta price. >> let's talk about that competition. lilly, amylin are expected to hear from the fda on their similar once a week drug. is your similar market advantage here, if indeed there is one, going to be very short lived? >> well, of course, you would expect me to tell you that we think our product is better than even that of the competition. there are conditions about our product in terms of convenience, in terms of its efficacy and in terms of side effects, which we believe will belong-acting byet be launched in the future. >> thank you very much, mr. sorensen, joining us exclusiv e exclusivively from copenhagen, denmark. check out more on the blog. and follow me on twitter. these drugs not only lower blood sugar but help people lose weight as well, which is not similar to traditional diabetes drug. >> pretty nice side effect. >> thank you, mike huckman. we're watching apple closely in the earnings central, after a big report last night, shares are up in the free market. plus, the word on the street and case-shiller's effect on home-builder stocks. futures right now or pointing to a lower open. and today's "street poll" is treasury secretary tim geithner, we marked a new way as we phrase this, is it good for your money? that's the question. we'll be back. [ male announcer ] introducing the all-new lexus gx. it has the agility and the power to take on any mission, and the space to accommodate precious cargo, because every great action hero needs a vehicle. see your lexus dealer. ♪ my little ifp must be set to be ted david. what is it tinitis? >> the face is familiar but i can't face the name. there were a time the io mmega. >> and the disk drive. >> and they were going to go to a thousand. >> for a while i refer to the enthusiastic apple shareholders, if you switch on it, i called them appleloonians. they were not looney. they were absolutely -- anyone who backed steve jobs is so -- so vindicated and so right at this point. >> and you think back and it was almost a marginalized company. >> $8 billion market. >> look at it now. it's going to move higher, going to open higher from yesterday. 50% profit gain. >> 50%. >> in a year. >> 32% -- >> in a rough year. they sold a third more macintoshes than a year ago. they sold 8.7 million iphones, and that disappointed some people who thought they were going to sell 9 million. >> people who try to take a futuristic -- to try to describe what apple's able to do, they don't just see demand and satisfy it with a product. they create the demand and then build the product. >> does any company do a product announcement better than apple to create anticipation? >> we'll all talking about it. >> i say take two tablets and buy two stock in the morning. >> what do they earn in a year? let's say we had a panelist on. let's say $16. >> i will have to look it up and see what their profit was. >> it was $3.67 a share. >> so let's say they earn $15. what's it trading at? $12. >> oh, $12. >> if it's growing at 50 times -- if it's going at 50%, nobody's saying give it a 50-times multiple. >> this is a well-priced stock. let's look at travelers. let's call apple a solid double, maybe even a triple in baseball parlance. travelers was a home run. there you go. the stock will open higher on the home run today. the price up about $2.12. >> revenue also up. revenue also up and above expectations. >> what that red little thing there, the little red carrot. the level up, 11.2% since 2007. johnson & johnson, let's call that a soft single. >> they beat a little. >> they beat the eps but to do that you have to sweat out some items there. >> but they also had a lower tax rate, they talked about that. that helped a lot. they also said they had an extra weak of sales in 2009. and the stock was not called higher. and then verizon in line on the bottom line and slightly below on revenue. but that is going to hurt the dow a little bit today. and then dupont also hurting the dow a little bit, even though that looked okay. 44 cents, 3 cents ahead. >> i call that a solid single. >> better-than-expected results but still indicated earlier. >> all right, sir. sir forehead. >> it's a reference to the hairline. >> it's a reference -- >> joe, joe? >> yes. >> don't forget krispy kremens. >> oh, yes, yes. >> remember they would send doughnuts to us. >> that company was valued as if it sold every doughnut in the world. >> who had the catalogs on the planes, too? remember that? >> oh, yeah, yeah. >> that's gone. >> and then the disco music we played. >> k-tellians. >> oh, those -- >> i'm not listening to this conversation. >> fond, fond memories. those were the days. >> i tuned out for a second. >> i will not tell you, joe, what you said this morning about it. futures down 4.70. we needed .63. added together, 5.33 fair value. looks like a loss on the doll. up next "trader's take." and gridlock in washington. mark, have you noticed it takes 60 votes to get anything done in congress? >> i noticed that. not sure how that happened. >> apparently so. we'll be back. tdd# 1-800-345-2550 investors got lost in the shuffle. tdd# 1-800-345-2550 investment firms forgot whose money it is. tdd# 1-800-345-2550 enough is enough. tdd# 1-800-345-2550 it's time investors got what they deserve. tdd# 1-800-345-2550 real help that's there when you need it. tdd# 1-800-345-2550 pricing that leaves you with something to actually invest. tdd# 1-800-345-2550 at schwab, we offer a lot more help for a lot less money. tdd# 1-800-345-2550 because at schwab... tdd# 1-800-345-2550 investors rule. tdd# 1-800-345-2550 are you ready to rule? all right. we are back, we are live on the floor of the new york stock exchange. joining me now, alan valdez, famed cnbc commentator with cabrick trading. good morning, mark. >> good morning, alan. >> we are down 4.5. is this a correction? are we going to go 10% down? >> you're right. we're below the 50-day moving average on almost all of the indexes. as january goes, so goes the year. >> yep. >> people are concerned. this is the last day of trading for traders. so you might see a sell-off today also because a lot of guys are just going to dump their stocks. tomorrow, whole new month. we'll see what happens. we have gdp on friday. >> we don't want to wait until tomorrow, alan. we want you to tell us right now what's going to happen. >> right now, i would say, edge down. look at gold's down, dollar's up. i think we have a lot of pressure on the market today. >> alan valdes, thank you very much, sir. public trading. coming up -- the final countdown to the opening bell. and president obama reportedly about to freeze the budget marcaine. so we will talk about whether this freeze is truly eeze or not wln and whether it will imp our terrible financial situation. ♪ [ male announcer ] introducing the all-new lexus gx. ♪ it has the agility to avoid the unexpected... ♪ ...the power to take on any mission, and the space to accommodate precious cargo, because every great action hero needs a vehicle. ♪ because every great action hero needs a vehicle. bull market or bear, traders are always hungry for ideas. trading is all about strategy. and strategy... is all about information. heat mapping shows me where the money's moving. twenty five hundred stocks... one quick look. that's where the action is. plus, this amazing gadget... it's called the telephone. i can call td ameritrade anytime and talk trades, strategy... anything. td ameritrade. built by traders, for traders. this is what i need. announcer: trade commission free for 30 days, plus get 100 dollars cash, when you open an account. as we count you down to the opening bell, let's bring in john brady, senior vice president of mf global and pat trader of cardinal capital. pat, headline that's most important is? >> really i think what's going to happen is the biggest thing we're looking at. it's providing a lot of uncertainty for the market. as we know, the markets don't like uncertainty. as we look at the last week of trading, we see the s&ps down 5%. you look at the vix, it's up almost 40% at that time. a lot of that is the uncertainty of what's going to happen with the fed. obviously, a lot of it to do with the market going down. investors don't like uncertainty that's and that's what we're focusing on. >> what about the good news, apple better than expected, dupont better than expected. boosts the forecast. that stock not looking like it's going to open higher. do people just not care about earnings o