Transcripts For FBC Countdown To The Closing Bell 20140117

On the top line with revenues, beat on revenues but missed on the bottom line by as single penny. This brings the focus to the entire Dow Jones Industrial average which appears to be the lone standout at this hour when it comes to the major indices. That is largely on the backs of some plastic many of us carry in our wallets and that is American Express. And max next to intel reporting earnings after the bill came out with numbers the market loved if you were watching fox business, you knew it was a big beat. Shares of American Express jumped in 4. 5 and that is spilling over to one of its rivals. This is really a company that gets a fee no matter what anybody is charging. Visa is moving higher by 41 3 . Morgan stanley was the last of the big banks to report earnings overall while profit fell by 70 . Excluding 1. 2 billion legal legs sense, the bank earned 0. 50 a share exceeding wall street estimates of 0. 45 a share. Morgan stanley over the past year has been the best performer up 51 today, hitting the new four year high, 33. 52, later in the day. Right now gaining 1. 25 or nearly 4 . Data we got today construction of new home sales fell 9. 8 in december to seasonally adjusted rate of 999,000 homes. Couldnt quite make it that million but this after a surge from the previous number, november 1. 1 million homes. Economists expected that the cold weather would take a toll on new construction and it did. Important to point out new Home Construction for all of 2013 was the highest since 2007. Not bad at all and there we go, Home Builders moving slightly lower on this number because month over month sequentially didnt do much here but we do have everybody moving lower to 53 4 or less. To the Home Builders having a rough day but to Technology Giants doing the opposite, basking in the green. To the breaking news what are you hearing on intel . They are going to reduce the work force by 5 . Nicole you talk about that going in as we started the show that was breaking news, intel has been a name everyone is watching, come out with numbers the dow 3. 6 , 2558. I want to get to some other tech names we were going to take a look at, twitter and Electronic Arts, twitter had some positive comments. Now there is talk that they are working with striped. Strike is a payment processor, you can go on and you can buy things and do transactions that they may be working with them. Right now 238, Steve Temecula 70 target, a buy rating. It is has been a good day for twitter, 64 a share. We havent seen that in some time. Basically since jan. Seventh. It got a nice pop over the last couple days and Electronic Arts a couple analysts aabuy rating and positively about potential for electronic parts as well and this stock up 12 . What a different story because game stop which is a Great Company that did well in the council but not so much on the game and yet Electronic Arts snoring right now. Liz the annual low, the 52 week low for Electronic Arts was a paltry 13, 14, 10 higher than that having a great day, game stop pulling back a little more, tough week for game stop. Thank you very much. We are keeping our eye on intel became of the low of the session down 4 , now down at the moment by 3. 5 . With the latest earnings reports overshadowing markets lets get to the floor show and we have traded at the new york stock exchange, cme group and the nynex. At my characterizing properly our earnings overshadowing . It looks like the markets are not so sure what to do. The dow, nasdaq and s p down. You said this in your lead in, the way American Express is driving the dow, yet the s p 500 is moving in the opposite direction, earnings we are dealing with, i said this before it is encouraging that investors are getting back to analyzing and evaluating markets based on fundamentals as opposed to watching what the fed doesnt expect choppiness around this Earnings Period as we digest each of the earnings and through the financial this weekend the industrials next week and see what their numbers are and the next big salvo will come mid february when we look at the retailers, what they did in the Fourth Quarter in 2014. Everybody should expect we are going to be on a roller coaster here as we digest these earnings. They will overshadow everything we do in the markets. Cheryl new highs on the screen, alcoa and morgan temecula packard, a nice little mosaic of names which brings me we do have some choppiness. An understatement when we stretch it out to 12 trading sessions. I look at that and say this is what we get after having a moonshot last year for the markets. We have and you will see some trepidation about continued to buy these stocks but the important thing to look at, the previous guest theed out the earnings, how is this affecting the economy . Is the economy doing better . That is the big story. Economy will tell us how the stocks will do. Liz i want your assessment. Is it doing better . My assessment is it is doing better and getting not just marginally better in my view but considerably better. The first start and it is early on someone to see what happens over a couple months adding to will continue. Liz we have all been through the green shoots a couple years ago. That retrenched. I agree with you i think we are seeing a moment by moment looks like we better, as we look at what is going on in the Energy Complex, that is something that has been interesting because it helped people, gasoline has stayed below 4 a gallon and that continues for the moment. Yes. We are in and oversupplied market in the Energy Complex but the winner just a little while ago, we see Colder Weather coming, has given support to the energy market. Right now i feel if we dont get above 95 can in crude oil, we are going to see 91. 5 to 81 in crude oil and once the winter is over we will see 86 in crude oil and the reason i say that is because we are producing more crude oil year and also having other producers coming back online around the world so we are going to have a large supply of crude oil and as long as we dont have any major Geopolitical Impact to hurt that we should see crude oil going lower for the rest of the year after the winter is over. Tracy 94 not the worst number we have seen over the past couple years. Have a good weekend. Once again the breaking news at the top of the show was intel, dow component and the Worlds Largest Semiconductor Company shedding 5 of its work force yesterday. If it missed by a penny, stacey smith was talking very positive game here. However, markets like when Companies Cut jobs and sure enough you see the stock is up out of the lows of the session down 3. 5 and once again in 2012 they had 109,000 employees. We will get a better updated numbers in a moment. Closing bell ringing in 52 minutes. Dear john. You know these letters. Dear john. I just cannot hear you any more. That is what t mobile is having their customers tell their existing carriers to say before switching to t mobile. Just look at these images. People are sending letters of how they are riding dear john letter to verizon and at t saying i am breaking up with you and going with t mobile. What a business, including little kids. T mobile a ton of attention. We are going to debate whether t mobile will be swallowed by sprint, Academy Award season upon us, nominees have six weeks to watch the films of a golden statue, return to theaters for some films. We will tell you you can see in the theaters and who is cashing in. [ male announcer ] youre watching one of f the biggest Financial Services cpanies in the country at work. Hey. Thanks for coming over. Hey. [ le annouer ] how did it come to be . Yours . Ah. Not anymore. Its a very short story. Come on in. [ male announcer ] by meeting you more than halfway. Its how edward jones masense of investing. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Where does the United States get most of its energy . Is it africa . The middle east . Canada . Or the u. S. . The answer is. The u. S. Most of Americas Energy comes from right here at home. Take the energy quiz. Energy lives here. [do more than ever before wit allnew intuitit. Ickbooks. Take the energy quiz. Make any place your place of business with it. Get paid fter with it. Run payroll with it. Sy this stuff with that stuff with it. Make more time for what you lov. Turn on only what you need wh it. Sample from our smorgasbord of apps with it. Take in the big picture with it. See your finances in a whole n way with it. This is your business on the allnew quickbooks. Run with it. Liz top10 lists help you invest for the coming year, 33 years of money managing experience and 118 billion in assets under management, my next guest has some big time predictions that you need to hear. He has an s p target of 190050 for 2014, 1950, we are at 1838 right now, he has an unstoppable forecast for what is to come. Joining us, bob doll, chief equity strategist, senior portfolio manager, allaround good guy. Great to have you on and we love the top10 predictions especially when you give them to us with a hole stretch out picture of what is going on. Let me quickly begin by asking what you expect gdp for the full year to be and we can move on to particular stock pictures . The number is 3 from where i sit. Still not a big number. We havent been there for eight years so it will feel like a big number. If that comes true. We have been stuck at two for the last three years. Doesnt sound like a big difference but for revenue generation, profit margin, maintenance, three is a good number. Liz which leads me to stocks. Accompanies will do better, people feel better about themselves and stocks will puff up once again because we have come off of an incredible year, s p 500 up 30 . The theme that encapsulates all this is less ear and more confidence. I think the Great Recession and the aftermath of that is fading in our memories slowly and as a result we will do a little bit better, not setting any records. Economy will be better. The stock market discounted a plot of that last year as you correctly point out. I think the market is up but it will be more normal. Last year was abnormal for two reasons. One, the magnitude of gain and 2, the fact that it was easy. Went straight up. There were no deaths of significance. That is not normal. My guess is we will have a more normal year, decent returns but bumpy. Tracy right there, this way, to my right, the u. S. Dollar appreciates. Let me tackles that one. I heard opinions on both sides of this, what will get the green back stronger, when we are looking healthier too. They are looking healthier, other developed markets. The longterm story for me in the u. S. Is energy and manufacturing. A few years ago we began to produce more and import less. We are heading for north American Energy independence, a huge plus for many of our adult lives. The manufacturing story is related. The wage rate differentials that cause us to lose so many jobs have narrowed and we have cheap natural gas, 5 rounded in this country, most of europe and asia, 15, a big advantage for the u. S. Liz we have put some of these on, munibonds led by highyield outperform taxable bond counterparts, gold falling for the second year, Commodity Prices not going to do much, dividends, stock buybacks, all increase at doubledigit rates. Now to your stock picks we have lined up, we will put this on the facebook. Com liz claman page, top10 predictions people to work through. That brings us to your stock picks and you begin with the aerospace and defense sector. Why . We like cyclicals more than defensives. In a cyclical space we like the industrials and among the industrials we Like Aerospace defense. We believe the Airline Industry is in better shape than it has been in some time. Cant go and too many these days that are almost if not full, we have the need to replace a bunch of airlines and that is commercial aerospace, mainly boeing. Aerospace defense, the defense part of it has been overdone to the negative side, stocks do well in 2014, we think the Free Cash Flow enables them to do better. Liz we have hot charts in the health care space, medtronic, United Healthcare group, you like pfizer among those names, you feel that the Affordable Care act is something that will spur these . Our view is of the ten sectors in the market healthcare is the only one that is a net beneficiary of the Affordable Health care act. Aside from that it is my favorite defensive sector. We like the Free Cash Flow characteristics. Some of these companies have improving top lines and new products and the collection we put there is one from three categories, pharma, service and devices. Liz we will put your Technology Picks on the web site as well. Great to have you. Thanks for your top10 list. Predictions, folks the facebook. Com liz claman page because you need to study the top ten predictions, he has a great track record. Bob is sharing that for free. We like free. Closing bell ringing in 40 minutes. Sprint may be closing in on a t mobile for us telecom made them merger but it is possible another bidder could swim in and snatched t mobile right out from under sprints nose. Charlie gasparino has exclusive new reporting, he is running down here right now, on what could turn into and out right bidding war. We will be checking all the stocks as soon as we do the story and take a lot of notice, already building with the Academy Awards ceremony six weeks away. Hollywood and Hollywood Studios try to cash in. We will tell you how as top contenders tighten their grip on the box office. Take a look at the competition. [ me announcer ] this is the story of the dusty basement at 06 35th street the old dining table at 25th and hoffman. And the little room above the strip mall f roble avenue. This magic momt it is the story of where every great idea begins. And of those o believed they had the power to do more. Delis honored to be part of some of the worldgreat stories. That began much thsame w ours did. In a littttle dorm room 2713. This magic moment liz from the top ceos to the latest pool bear debate countdown to the closing bell has to cover all week but heres what is worth repeating. These things are based on availability of the truck and how people using across all industry that we are seeing strong demand, sales up last year, market share was actually up last year as well and we think that will turn into a gdp expansion in 2014 aboard of 2. 5 . But at the last quarter nothing wrong with the customer track. And give us a billion dollars of revenue that didnt exist. It really sunk. What we are told, a few years to have this model which will cost one third of the model and they sell a lot of cars. We are not making money now but we will make it up this Company Generating a profit in 2013, theyre going to make money in 2014 and print a profit here in the Fourth Quarter of 13 and generating cash and continue to generate cash. This year it will be surprising, anything can happen in the stock market. I think we will be back down to earth this year. Liz we have great guests, many more. We are not done yet on this friday. In the meantime we have to get to a huge possible takeover story. Sprint may be the company in the news for t mobile deal, estranged dying to take over t mobile but so are a lot of other countries. Charlie gasparino with details on what would be more likely suitor for t mobile. The news earlier was sprint consulted with two banks on financing the bid for t mobile. A couple days ago we were reporting t mobile probably in play right now. We were talking about the issue being a likely buyer and heres what i know. When i saw the story appeared in the journal late yesterday and we talked about it a little today i went back to my sources and what bankers are telling me, at that work on these deals, about as far as i am going to go, they are telling me they can continue to talk up dish t mobile deal, they cite the difficulty in integrating t mobiles net works with sprint and also talking about too many regulatory hurdles, sprint, t mobile, will not pass regulatory muster. The other one will likely. Liz at t t mobile did not pass regulatory muster. They dont want to see this consolidation. Same with sprint. The sprint t mobile combination will not pass regulatory muster. They give very low odds. Higher odds, talking to analysts, bankers that covers this space, the higher odds that we reported here on the Fox Business Network a couple days ago. T mobile dish. At cant guarantee anything. I dont guarantee anything to anybody, looking at arbitraged here, i am telling you what i and hearing. Liz dish is a Satellite Television company. They would have much less trouble getting approval. Less overlap and they dont have when you have duplicates system is talking common sense because i am not an expert at this, two systems, never anything. When Morgan Stanley to bring in a banking analogy, brought smith barney, two Brokerage Department on two Computer Systems it was impossible. It was a nightmare and the same could happen here. Liz lets say springed which is very much a owned by softbank out of japan got the money, able to do all of the technology. It doesnt matter. The fcc or some regulatory body will say it is going to hurt consumers. I dont think the Money Matters with them. That is not the issue. The issue is the regulation and the issue is the Network Integration from what i understand we dont have that. Liz does dish have the money . What do you think . Why couldnt they finance . They could get financing. That is not going to be the issue. The issue is the feds and the technology. I give you the best of what i know. Liz i you happy with what happened with verizon and at t . Do you like your service . T mobile has been able to grab people by making offers look at this. Liz i have a tnt. 1997. 1907. Liz let me get to catch which was the Regional News network that aol that was going to revolutionize local news and basically bring it to the internet, bring Internet Technology i dont know about you by calling local news. On computer any newspaper you did local news higher i did local news in new york where i work for a community paper, Weekly Community paper, that was supposed to be, those papers going out of business, really interesting story that aol sold to this private equity firm. They initially shopped it around for several months. The Tribune Company looked at it. All of them passed on it and aol according to the reporting took a fairly sizable loss on it. Read the story on foxbusiness. Com. Liz bring her out here. And you know what . Here is the thing. Private equity firm may end up dismantling patch if it doesnt exist or already existed in some other weird form. Liz a believer. We will see. It just shows you in the internet does not necessarily work with news. A scary proposition. Liz you all need to us. Trust us. You have to stay tuned for this as we wait for the closing bell to ring 30 minutes away. Did you see this . T mobile ceo john ledger has a personality, the top of the town in they guess where i was at the Consumer Electronics show when he crashed at ts Party Wearing his black Leather Jacket and pink t mobile shirt, he is the guy on the right, even when on an expletive laced tirade that we have to be out. We will let you hear it in a minute. The big question is this guy is a renegade. Does he want anybody to take over his company . Take over the company. Liz he wants to run it. I dont blame the guy. Does he sell . Liz he sells. Everybody says he loves liz how about this . Lets bring in a former fcc commissioner and ask him whether he thinks the t mobile deal has any chance. Which one . Liz you will see. Got to pitch in. And we will tell you why the cider andsecurity warfield like a throwback to the cold war with the guy who used to advise the pentagon. [ male anuncer ] e new new york is open. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozensf tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Were open to it. So i can reach ally bank 24 7, but therare 24 7. Anches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an al. She loves to shop online with her debit card. And so does bill, an identity thief who stole marys identity, took over hebank accounts, and stole her hardearned money. Unfortunately, millions of americans just like you learn all it m take is a little misplaced information to wreak havoc on your life. This is identity tft. And no one helps stop it better than lifelock. Lifelock offers the most comprehensive Identity Theft protection available. If mary had felocks bank account alerts, she may have been notified before it was too late. Lifelocks credit Notification Service is on the job 24 7. As soon as they detect a threat to your identity within their network, they will alert you, protecting you before the damage is done. Lifelock has the most comprehensive Identity Theft protection available, guarding your Social Security number, your money, your credit, even the equity in your home. My years as a prosecutor taught me that we all need to protect ourselves from crime. In todays world, that includes Identity Theft. Its a serious problem. We all have to protect ourselves. [ male announcer ] while Identity Theft cant be completely stopped, no one works harder to protect you than lifelock. You even get a1 million service guarantee. Thats security no one can beat. You have so much to protect and noing to lose when you call lifelock right now and get 60 days of Identity Theft protection risk free. Thats right. 60 days risk fre use promo code notme. Order now and get this document shredder to keep sensitive documents out of the wrong hands. A 29 value free. Dont wait until you become the next victim. Liz we have more on the breaking news at the top of the hour from intel, Worlds Largest Semiconductor Company breaking the news just about 34 minutes ago that it would be laying off about 5 of its work force. At the end of last quarter, intel had about 107,600 employees, so doing the quick back of the end ve lope math, youre talking about 5,380 or so employees that would be laid off or leave through attrition. The companys spokesperson isnt giving too many other details, but the stock was down more than 4 percent. Right now its down about 3. 5 at moment, so coming up off that floor. Its also got some headwinds from yesterday when it came out with earnings and, of course, missed by a penny coming in at 51 cents rester us 52 versus 52 that was expected. Intel saying it is going big on wearables, really trying to entrench into the mobile world. About 40 million this year in tablets, so we will be watching chosely. We know a lot of you own this stock. Weve also been keeping an eye on new skin, the personal skin care company, slammed yesterday. It continues to slide for a third day in a row. This after china says it was launching an investigation into new skins Business Practices because, of course, nicole, its considered one of these multilevel marketers sort of like herbalife. People get suspicious about it, china doesnt like these things. Reporter new skin is down 42 this week, so its been a tough week. Take a look at what its doing now, down 5. 7 . 79. 89. We know the china regulators have been probing into the skin product maker there after being questioned about its Business Practices. Weve also seen herbalife coming under pressure because of the same type of investigations over the past. Herbalifes down 14 president president this 14 this week. But there are people who accuse these companies of being almost like a pyramid scheme over this china, questioning their distribution model, how they actually make their money and their own sales there. But, of course, new skin says theyre cooperating with authorities, theyre making sure that all their employees there are being trained properly. They couldnt say whether or not any numbers would have to be restated, but they are, in fact, working with the authorities. The stock is still higher over 52 weeks, but as i noted, this week down 42 . Back to you. Liz okay, nicole, thank you. Yeah, were watching that one. That got hammered. Its been tough for gamestop this week, but, of course, these companies tend to come back, and were watching them every step of the way. Well, cybersecurity and privacy are very much at the forefront of the news lately. This after a public outcry, this is the security part of it, over secret surveillance programs at the National Security administration. President obama announced today that there would be significant changes to the goths nsa governments nsa intelligence monitoring. The bottom line is that people around the world regardless of their nationality should know that the United States is not spying on ordinary people who dont threaten our National Security. And we take their privacy concerns into account in our policies and procedures. Liz okay. So what are the new procedures . Well, the government says it will no longer store broad collections of phone and electronic communications. Now what we have on our screen is the part that comes into the Business World and hacking, target and nieman marcus. Of course, a lot of you who shop there may have had your information compromised because of malware. Theyve just found out that the russians may be targeting us in some way, shape or form. What does this all mean to you, and is there a way to play it in the markets . Well, just today Cybersecurity Firm intel crawler said it had uncovered at least six ongoing attacks on merchants over the u. S. Lets get to kevin mandia, he worked at the pentagon. Hes chief operating officer of fireeye which is pluckily traded. Hes the ceo of the company he founded. First off, again, its bifurcated. Weve got privacy, and then weve got the hacking issue. Kevin, thank you for being here. Lets start with privacy. You heard what the president said. Look, surveillance goes back to the sons of liberty, as the president mentioned. It goes back to world war ii when, thankfully, the british and the United States were able to code crack the nazis and what they were trying to do simply by conducting surveillance. So with the new things announced today, will it make us safer or less safe in your opinion . Well, i think that anybody whos doing surveillance on behalf of the security of the United States has a tough challenge. The internet is changing quickly, the technologysing technologies being monitored are changing quickly. So i think spying is here to stay, its always going to occur, and we just hope that the folks that are doing this can stay on top of the technology and do the surveillance they need to do while taking into account the privacy issues. Liz well, the nsa employee who now is on the run, ed snowden, i mean, the damage he has done certainly, who knows whos in danger now, which of our people is in danger now. But then i begin to wonder people cry out, theyre upset, they dont want their texts being read. So the president backs away or at least makes some promises. Are the terrorists getting an edge up because of this . Thats what people wonder. Well, the challenge that everybodys going to have is if you wanted to communicate surreptitiously, probably the best way to do that is online. Theres always going to be a cat and mouse game, and the bad guys will always use the internet to be able to communicate in a faceless environment. Liz all right. Now lets get to the Business Aspect which a lot of people are feeling here in the United States, a lot of our viewers shop at target, at niemans, but there are many more. So intel crawler, listen, theyre saying that they know of six active attacks that are going on with different retailers at the moment. Im more interested in what you guys have to say. What kind of active attacks are going on, and do we need to throw out our credit cards and start all over with some new technology . Well, i wouldnt throw out your credit cards and start over, but youre going to see changes this the credit industry. Well go to more of like the model that the europeans have with chips in the cards. Lets face it, if youre a retailer, theres an yang thought of onslaught of attacks coming at you daily. You most likely will be compromised. So were reading about a couple names, but at the end of the day, every major retailers under siege in cyberspace right now, and it is a tough combat that requires sustained diligence to try to keep people outside of your networks. Liz kevin, you busted the chinese, it was your company that pinpointed a building in china. That was amazing, where a lot of this was happening. Now the russians, apparently some of this malware had russian letters . Are the russians after us too . Well, when it comes to making money, i mean, if youre a criminal, you go where the money is. Right now the moneys online. So, absolutely, if you want to hack without that many risks or repercussions, you can do it from 5, 10,000 miles away from the victim organizations. Hackers are brent at what they do. Liz do you do mobile payments . Ill do what you do. Absolutely. I mean, when you look at it, almost evens credit card number in the United States is already compromised in some way, shape or form. Theres so many places where we put this data. The upside is so many credit cards are compromised, its hard for the bad guys to use them all. Absolutely, i use the internet with confidence as a consumer. Liz i feel better, okay . Because youre the one who thoughs. Great to have you, thank you very much. Kevin mandia, theyre smart, and they realize hes the best at what he does. Closing bell ringing in about 17 minutes. Tmobiles ceo john ledger, this guys an original. He is on a tear. You could either call it public relations, or he is what he is. His main target . This at t and maybe even verizon too. Just take a look at some of the ads hes been running since january. But what are the chances tmobile is going to be swallowed up up by sprint . We have an exclusive interview with one of the former fcc commissioners who was this when at t who was there when at ts bid was rejected. And if you missed out on seeing the oscar nominees, fear not, they are back at movie theaters this weekend making a pretty penny on their academy nod. Heres one of the years most compelling pictures. The condition of your labor, its all wrong. Aint my property. You say that with pride. I say it as fact. Its been a long time. I i want to ask you what part of the country you come from. Originally from canada. Guess where that is . 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 omotion is in order. Good news. I got a new title. And a raise . Management couldnt make tt happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Liz the Oscar Nominations are out, but the ceremonys still about six weeks away. Thats giving hollywood a chance to double down on some top picks. Among the films being rereleased this weekend, gravity already earning 256 million domestically, 675 globally. Also getting a rerun, hostage drama captain phillips i love this movie. Hollywood reporters saying both movies will be playing in more than 900 theaters today. The beginning of the long Martin Luther king jr. Holiday weekend. Then the one thats getting a ton of buzz, 12 years a slave, its going to reopen in more than 700 theaters. It won a golden globe for the best picture in drama category last weekend. And if last Years Experience for argo is any guide, these movies could see an increase, and, of course, their publiclytraded Owner Companies of 20 in their box office takings. Checking some big entertainment stocks right now, remember, when they win the awards, sometimes these names see a pop. Well, breaking up is hard to do unless you have tmobile in your corner. Wireless company unveiled its new breakup letter for people looking to dump their existing carriers. So we wanted you to see this. Take a look at some of the happy customers. Theyre saying goodbye to at t and verizon, and theyre posting pictures about it in the process. These people are hilarious. The breakup letter is part of tmobiles uncarrier 4. 0 initiative, and it appears to be working. 80,000 people so far have posted breakup letters. This could be the reason the Third Largest carrier, sprint, is dying to get supercreative tmobile under its wing. Its getting so much hype, right . But what kind of reception will that kind of deal get with regulators . We bring in two allstars. Joining me now, robert mcdowell, former fcc commissioner who was there when at t was slammed down when it wanted to buy tmobile, and Jennifer Fritsch chi, Wells Fargo Securities senior analyst. Okay, we have it from the business and regulatory standpoints jennifer, does the sprint deal with tmobile, first of all, does it make sense . Thanks for having me, liz. I do think it makes a lot of sense, whether it gets done ill let rob speak to. But from a business stand point be, i do think it makes a lot of sense. Wireless is all about scale and creating, you know, doubling the size of the base yet still being the Third Largest provider behind at t risen gives them the combined tremendous amount of scale. Liz how close are they if two banks have reportedly weighed in on sending in proposals to finance this . You know, its a lot of edlines from a lot of credible headlines from a lot of credible news sources. This is not something that sprint, is new to sprint. Remember, sprint was fighting with at t tmobile deal tooth and nail, and the thought was they were the one left to the altar. Liz and Social Security to funny its so funny how this works, now sprint wants tmobile. Rob mcdowell, your opinion. I dont care what banks get involved, sprint gets the money, everybodys happy. If regulators dont want it, its not going to happen. Will this type of deal pass regulatory muster, in your opinion . Excellent question, thats the multibillion dollar question here. So on the one hand, some can make the argument that that strong number three combination will give at t a verizon a big run for their money, theyre number one and number two respectively. But there is a philosophical sort of aversion to subtracting one of the four or national carriers. So beginning from four to three to some is just a nonstarter. But, you know, sprint knows this, tmobile knows this, and they have very smart people working for them. The theyre going to go forward, theyre probably going to precondition with some divestitures and other conditions to sweeten the pot more regulators. Liz okay. So youre saying they would possibly sweeten the deal by saying well shed some of this or sell to maybe at t or verizon, some of those people. Jen, what do you see as the value of this deal . Im seeing 31 billion, is that about right . 31 billion would be the amount ive seen as well including or separate from a 20 billion assumption of tmobile debt. Liz okay. And im wondering if another person, another company tries to jump in and, robert, we know that at t was smacked down. You were there, it never even got to julius genachowskis death, the chairman of the fcc. Would you have approved that kind of deal . Well, first of all, it did get to the chairmans desk, it didnt get to the desk of the other commissioners. Liz correct, yeah. And theres another agency thats key here, thats the department of justice and the antitrust division. The fcc had the report saying that the wireless marketplace is highly concentrated under an antitrust metric called the hhi index. So thats going to be problematic for them to work around it. But again, theyre going to try to probably sweeten theead of tn things like Net Neutrality liz can i just quickly ask you before we go, both of you, would dish have an easier time of this . Jen . I think dish could be a part of the linchpin. They could be the threeway player that maybe gets this done. Liz okay, rob, very quickly. Absolutely. Pieces of it or just an allout purchase of tmobile themselveses. Liz so charlie gasparinos reporting right on the money. Dont count out dish. We want to thank you both so much. Were going to have you both because tmobile is in this play. The stock is up 73 yearoveryear. Everybody seems to want it. Robert mcdowell and Jennifer Fritsch. Closing bell five minutes away. From exercise wear to healthy eating, former lululemon ceo Christine Day joining us live after the bell on her brand new role in a super interesting company. My dad has aor afib. Brillation, he has the most common kind. Its not caused by a heart valve problem. Dad, it says your ib puts you at 5 times greater risk of a roke. Thats why i take my warfarin every day. But it looks like maybe we should ask your doctor about pradaxa. In a clinical trial, pradaxa® Dabigatran Etexilate mesylate . Was proven superion at reducinthe risk of stroke. And unlike warfarin, with no regular blood tests or dietary restrictions. Y thanks for calling my doctor. Sure. Pradaxa is not for people with aificial heart valves. Dont st taking pradaxa without talking to your docto stopping increases your risk of stroke. Ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. Pradaxa can cause serious, sometimes fatal, bleeding. Dont take pradaxa if you have abnormal bleeding or have had a heart valve replaced. Seek immediate medical care for unexpected signs of bleeding, like unusual bruising. Pradaxa may increase your bleeding risk if youre 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners. Or if you have kidney problems, especially if you take certain medicines. Tell your doctors about all medicines you take. Pradaxa side effec include indigestion, stomach pain, upset, or burning. If you or someone you love has afib not caused by a heart valve problem. Ask your doctor about reducing the ri of stroke th pradaxa. Who found a magic seashell. It told him what was happening the tradg floor in real time. The sll brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Liz so it has been pretty much this way for the past couple of hours. The dow is the lone green standout here. David asman joins me how for after the bell. Were losing steam here. David this looks like another losing week which is important. This year has not been reflection what 2013 was. There is a lot more to go. Lets go to Nicole Petallides at new york stock exchange. Talk about a winner, Morgan Stanley, when we look at all banks that reported this week, it was kind of a mixed bag but definite plus for Morgan Stanley. It was indeed. Morgan stanley hit a new high. Some banks are doing well. Jpmorgan also and goldman sachs. Today it was a mixed bag indeed. Goldman sachs was keybanc. Liz now in the last couple of minutes we are now seeing intel really strengthen a bit. It is still down 2 2 3. Intel cutting 5 of the workforce. They plan to tighten the reins and have to cut costs and that means workers. Could be 5 of the workforce, 5,000 people and well see if that comes to fruition. David liz points out sometimes when a company cuts workforce the stock goes up. Happened to macys. American express before. American express getting a big bump. [closing bell ringing] American Express is the reason the dow is higher. Were higher for the week. David unfortunately not all intoday sees are higher today. Well take a green arrow on the dow. End of todays trading session looks like it is trading up a bit. It has been higher. All the other indices are higher. It is a down week for the dow. But it is kind of a mixed bag on reporting front. American express we reported last night doing extremely well today. Morgan stanley as well. We have an interesting hour so stay tuned. Liz time for the front page headlines. Consumer confidence unexpect he hadly falling in january, dropping to a reading of 80. 4. The Thomson Reuters university of Michigan Survey highlighting reduced expectations among lower and middle income families. David the Commerce Department says Housing Starts fell 9. 8 last month to an