The government. Not talking about growth in the government, right . Not to create more conflict between you two. There are two ways to two kinds of people in the world. Thats why im on this side of the table, joe, with you. Thinking about it. In washington right now, they i would say there are some people that are more interested in growth in the government than growth in the private sector. Well, look, again, im not a politician, but i want to focus on good, economic growth. Good Business Growth and how do we get back to the days that we enjoyed . Bob, thank you so much for being here. We hope to see you again soon. Thank you. Ive had a great time. Great visiting with you. Does it for us today. Now, its time for squawk on the street. Know that theme music any night, say goodbye to liz you jack and the crew on 30 rock. Im carl can teen nia, melissa lee, david faber, jim cramer. Chicago pmi on the way. Facebook earns, by most accounts, were pretty impressive. Mobile ad revenue, two times the prior quarters. Analysts want to untag the stock, at least three down grades today as the company says expenses are going up. Is the last day of january. Only 12 times since 1950 has the s and p 500 gained more than 5 in the first month of the year. Wait till you hear how those years generally turn out. Ups misses the quarter despite good volume growth, both in and out of the United States. With that t t deal dead, companys buy back plans got bigger. The reviews for the blackberry 10 is mostly good, but from analysts, mostly bad. Why so many downgrades for r. I. M. One day after the its big launch . First up, shares of facebook down sharply in the premarket a number of analysts down grading the social Network Despite results that did beat the street, including a 40 jump in mobile revenue. Mobile Advertising Sales doubled from the prior quarter although that fell short some of the most optimistic analyst estimates. Facebook says it plans to spend heavily to recruit talent. Ceo Mark Zuckerberg explains his strategy last night on facebooks conference call. We made the decision to continue to grow our head count quickly in 2013, particularly in Product Development this will likely cause our expenses to grow a faster rate than we expect to grow our revenue this year, which means we respect operating to maximize our profits this year, we are do doing what we think will build the best service in long determine. Jim, we said yesterday, the company, a la amazon is looking at the long haul. Yes, i thought this was good. Now, let me tell you why i think the stocks down. It ran tremendously, people who want to get off, they have good gapes. What i thought was important was if you look at a couple of stocks, amazon, if you look at netflix, if you look at sales force, they all have the same approach. Land grab. Put as much money as possible. Dont think about short term. This is what we want from Great American companies. So im not against what theyre doing. It may not be a reason to go buy the stock, cause people dont want to hear 50 increase in expenses, but if you want to whip, game, set, match, like zing gas you do what zuckerberg does. Help fuss control the company, dont worry about anything like that that being said, investors today are disappointed with they are focused on that trajectory of desktop to mobile. They didnt get what they hoped for in this last quarter, expecting what we saw out of the quarter previous, because when you talk about dollars per day. They gave us an exit rate q 3 to q 4. Didnt give it to us last night a bit less transparency, 306 million in mobile advertising revenues was lower than the sell side and lower than the buy side, more optimistic. Those numbers coming down, hence, stock price coming down, analysts down grading. Its a concept stock. Now, i dont like concept stocks. I did last night. Amazon versus apple. I think we are saying, cramer loves amazon. Im actually showing how cheap apple could be. This is not a cheap stock. The market historically has a couple of stocks at any given time that overlooks bad. Davids right. There was a lot to not like. With but at the same time, i think the growth guys will say, hey, give them a couple years and thats what tends to happen. The investers who look at valuation ant shorter term, maybe long, long term this is a great stock. Maybe they are taking a page from jeff bezos, investing in the business long term. Immediately, you see an 82 rise in operating expenses and know the company is going to be pouring more money in you knee will be pressure on valuation, you know its going to be pressure on markets, you know pressure on markets overall. Helps the caution on the name in todays session and yesterday, the afterhours session. No surprise the stock has pulled back. No, but remember, they are trying to be bezos. He went through difficult years. With us a lot longer. He has been tested as a leader, as a visionary. Clearly the market has confidence in bereeze zoe. They just did their android app for mobile. If youre annize tear, called out on the call, i understand why a lot of people say, look, this is a declining story, a spin story interesting at 20 no the so interesting at 30 . An intel 20 30 thing . Thats right it ran too much, given the fact it didnt blow out the numbers. But price, everything in a price, this is a better story lower. Citi to neutral, jeffreys, citing the higher expenses in 2013, the Common Thread from the analysts cautious on the stock today. Earnings are down. A Great Growth Company but may not be growing fast enough to justify that multiple. You care about earnings, they werent great. If you care. I put it like that we discovered time and time again, some people just dont care and they tend to be growth funds. And they have a lot of money and they can control the situation. Theres one guy who really controls are the situation, thats Mark Zuckerberg. At the end of the day private company. I say that, i have gotten a couple of twit. Stop saying i will try. End of the year. How about the end of the millennium. We are all dead, okay . Second day in a row, somebody said put that in your pipe and smoke it. Said it yesterday. Lets use that instead. At the end of my life. My friend David Strasser said Something Interesting to me yesterday today. He said if amazon had gone down, if the stock had ticked down, analysts would have deserted it. Here is an interesting question. How many analysts are playing the game of looking at what the stocks doing and i think a lot. Yesterday, when we were following the afterhours action on facebook and the stock was going lower, the analysts initially came out with the note, initial take away notes, flash notices, looks like a largely strong number, looks like a good report, florida blah blah a blah blah blah, and today we come out with down grades and caution. Interesting how the tone changes. If the stock had been up, people would say this is great, they are spending for the future. Because the stocks down, i got to get off t recommend it lower, i got to get off t people want to get off it, because they dont want to play the apple game, taking price target 1,000. Right. And now, well, what do you say . Less. Less. A lot less. At the end of the day, less. Put that in your pipe. The dow heads into the final trading day of the month, on track for its best january since 1989. But the road to 14,000 took a detour yesterday as the dow pulled back after the fed started Economic Activity had paused in recent months. This on top of a Fourth Quarter gdp report indicating contraction in the economy for the First Time Since 2009. The s p 500 is up more than 5 so far this month. Very, very strong month. What can you say . This is a great bull market. It is. I mean, the averages went up big. Transports led us, okay. Could we go for a breather . It would make sense, but the fed is not stopping. Its not stopping the fed. S p keeps putting out these historical numbers, a 5 gain in january and years like that, just going back to 50, 1950, 31 for the year, 27, 26, 31, 45. I mean, just does this year hold that potential. Hear siegel this morning, i know theres controversy, even on this deck, about for the long term. He did call the top. He loved housing you and my god, im sorry. My dads building, the society of towers. Since the last time we had the gapes, 07, 12month forward pe is 15. Back then, it was 9. We are not overpriced necessarily, given the run that we had. Keeps rates down, competition from bonds, not so great. I still cant get over that they preserve thafd dividend low tax rate these are bond equivalents, a lot of stocks, especially when they boost the dividends. Keep the balls in the air. Thats what can happen. Yeah. A lot of discussion yesterday as to why the fomc continues nobody that kind of mode as opposed to something else, which people speculated a lot b meantime, speaking of broad economy and markets, a pair of multinationals falling in the premarket, ups posting a earns of 1. 32 that missed. Revenues slightly exceeded. Also issues guidance below estimates and dow chemical says the company saw significant deterioration in market it is serves, especially china. Earlier on squawk, dow chemical outlined the challenges for the company. Could dampen the economy again through our politics but i would tell you i key is good things out of china with their leadership stabilizing and emerging asia as a whole. 35 of dows revenues are now in emerging geographies and where we are putting a lot of our investment and our money. How concerning, jim, two big mac crow bellwethers like those . I question dows execution, performance chem kills for ppg were excellent, okay . Now, there are a bunch of different codings and performances, Performance Chemicals that due pop the has that were bad. Dow had the same ones. I question whether these two companies have done too many Different Things in a short period of time. This acquisition they made, i think i still think its hurting. I still think it is hurting. Why . That is Performance Chemicals and i feel like if ppg is doing so well, if dow chemical has the lowest feed stock, why arent they doing better . Its a great company. The net debt is stable. But you know what, i expected a blowout here and i didnt get it. I thought they could blow it out. They did not give us one. You pair that with ups, which was a miss. The outlook on 2013 was very cautious there as well. You start to think maybe the broader industrial economy is seeing bumps in the road. Federal express is doing much better. I wonder whether the tnt acquisition was a distraction . Distract ups management. Acquisition failed, by the way. Yes. And maybe Shareholders Benefit at the end of the day, the end of the day. Start counting it, maybe its not just me. In terms of increase the share buy back. Ups a great company. I think them get it together. I dont want to sell at that time. Lot of companies, ups and dell, point them out. Not talking robust asia. How Many Companies like honeywell, like even the, like ppg, saying asias back. Again, i question execution of ups. All right. When we come back, research in motions massive rally seems like a distant memory, stock taking a hit since yaepsd blackberry 10 launch. Is the honeymoon now over for the r. I. M. . The Home Building sector has been hot but almost a decade since home builder went public. Tripoint homes is ending that drought by debuting on wall street. The ceo will visit us at post 9. Futures, a lot we havent gotten to squawk on the street, live from post 9, back in a minute. Shares of research in motion falling premarket trade after yesterdays 12 drop this all after the company unveiled its blackberry 10 lineup including two new smartphones but u. S. Customers wont be able to get them till march and that is a month later than r. I. M. s home country of canada. R. I. M. , which is changing its corporate name to blackberry, has been downgraded by the likes of Credit Suisse and evercore partners. After how many delays to get the phone out finally, they have this big launch event, they have ads during the super bowl and by the way, not going to have the phone in the market until weeks after that . Im looking at the phone to call brian. Here it is, by the way, they did bring im reading david pogue in the new york times. Im thinking a year ago, this had this out a year ago, stock would be at 30. May be too late. May be too late. Too late . So it was a break moment for research in motion . Im looking at the research says, very clearly, other than goldman, that its too late. That its just not enough and too late. Is there a willingness on the part of consumers to change more quickly perhaps than we give them credit for . Everything moves in such in a faster timeframe perhaps than it used to. I see people changing devices all the time. Will verizon push it . A Consumer Product you think the corporations will keep it . What was the chatter . The idea is because you can separate your personal life from your work life on this given the new policies of bringing your own devices and enterprise unit might say, all right, thats nice. We can just take out the entire work part, if you leave, or add it back in if youre being hirehood, but the question will be, is this an enterprise product or a Consumer Product . On the today show this morning trying to convince america it is a Consumer Product. In terms of user, the people who use it, it is a Consumer Product at this moment, they lost so much of the enterprise share. Yesterday, we were you were at the event, so many people saying because of the security features, security features, yet they have lost the lions share over time. Security was not a reason to stick with research in motion. So what is it going to be now . What is the reason to go back . Will corporations go back . I dont know. Anyone switch . Any consumers switch . Im asking. I have no idea. Whats your take . I think that the corporations, its still bring your own device. They opened that door, you dont go back. You dont go back. The corporations went to the other devices as a result of their own consumers being their employees taking them there. I dont sense that would anyone here switch . No. No. No. No. I dont think so. No, im not gonna im not either. [ overlapping speakers ] i want to try that bigger screen samsung. Watch movies. You want to make phone calls. Like the old days. The point does appear to be, i think Credit Suisse, somebody said, daunting challenge. Fair . Yes. The rest of the world has not stood still. The only reason, when the i phone came out, i switched the next day. I went over to verizon, said do you have it . Its not that, right . Its not a boom. Omg. No omg. Evolutionary. By the way, tomorrow is the big january jobs number. Of course, that means another chance for you to nail the number. Tweet us your predictions for january nonfarm payrolls or handles at squawk street, nail the number. The prize this month will make feel nice and cozy in time for valentines day. It is a blanket, autographed by the squawk on the street gang. You will have one minute before the friday release to tweet your predictions. Best of luck. None of us have used the blanket. Pristine. Pristine. Which may be a draw, may not be a draw. I dont know. Hold it. Make a sweet valentines day gift, im sure, for someone. Also the end of the month, cramers got some ideas to help you speed past the finish line. Hear about them next in his mad dash. Later on, an exclusive with whirlpool ceo. Stocks hit 52week highs. The appliance giant maintained the upward momentum after the great year last year. Futures modestly week here. A lot more squawk on the street. Get the mad dash for your thursday with jim here, talking about priceline. Some of these momentum plays under assault. Morgan stanley is saying theres too much competition. Priceline, intuitive surgical, amazon, these all trade together. Be careful. One momentum chink, they all kind of trade down. All right. Ill keep an eye on that. Yes. Also the other one you are watching . Dunkin donuts. This is great. They are on tonight. I cannot wait. They reported great gross margins. Terrific unit growth. I did not know this they only have 150 west of the mississippi. They are going to open dramatically in california. Another one that people may not get but they love basketball in china. Lebron james has become the spokesperson, love him. Moving aggressively in china. This is a story that people said, you know what, i want to be in it for the long haul because they think it is the next dominos. Dominos pizza, one of the greatest performers is a franchise model stock. This is a franchise mold. Carl, i think a great one. Traffic, ticket price. All good. All going up. And remember, baskinrobbins has been underperforming. They own baskinrobbins, aggressively expanding in china. Maybe ice cream sells there. Yeah. Well, if they can support as many stores out west as they do in boston, where its like every few hundred feet. Theres 10,000 duncan Dunkin Donuts this is like florida, michigan and theres nothing on this side. We can open them we. I wish aid franchise. You can open them in this part of the country for not bad, for ages and ages and i cant wait to speak to them. They are good. I think some of the rules on the franchisecies, you have to open a few. I mean, you cant just do one. Yes. Yes. You have to run ten. That would be a huge question. You know, people love coffee. Now remember mcdonalds had 1 promotion, people felt that people were shorting dunkin, betting that would cut into the 2. 72 similar size it hasnt. Its going to be good coffee. When we come back, the first home builder to go public in almost a decade. Tripoint homes ringing the opening bell in a moment. We will bring you the companys first trade and a live interview with the ceo when squawk on the street continues. When i take a picture of this check, it goes straight to the bank. Oh. Oh look the lion is out no mommy no dont worry honey, it only works on checks. Deposit checks from your smartphone with chase quickdeposit. Just snap a picture, hit send and done. Take a step forward and chase what matters. Bob will retire when hes 153, which would be fine if bob were a vampire. But hes not. Hes an arc