Costs are down but the reality of the situation is we still face very staggering situation. David are those worlds coming closer together . Yes. David ladies, thank you very much. What a pleasure to have both of you. Now, dagen and connell. Connel the storm of the century . Maybe, maybe not, but what it means for business and wall street the next 48 hours. Dagen forget the change, hoping customers will reschedule around the storm. Connel suffer the biggest drop in two years, but an argument in a moment what is a good thing for the economy. Dagen National Transportation safety board investigating the boeing dreamliner. Connel telling us a little bit later on. Dagen broadcaster, owner, driver of the daytona 500. So much more coming up. Connell anytime da dagen can tk nascar it is a good day. Nicole in the wake of the storm coming, we have the snow and the rain and the ice and the airlines are very ready for this and they know they will be flying to dozens of cities across eastern seaboard where they will have to change a lot of flights so what theyre doing it seems all getting on board and having rebooking waivers. Delta among many that are relaxing the rules for these cities, friday, saturday you will be committed to make a onetime change your travel schedule without any extra fees. Southwest is on board with that. They dont normally have this type of precompilation anyhow, theyre the ones that are pretty good like that. Everybody will be able to have their Winter Weather waivers and be on board with that because as you have been watching the Fox Business Network, there is a storm on the way on the east coast. While you see some of these airlines to the upside, the transports are pulling back. Yesterday we saw the fact they were doing better on the idea jet fuel had pulled back a little bit, that is one of their major pops. A mixed bag for this group in particular. Dagen we can skip the American Airlines potential merger with u. S. Airways, the Biggest Airline in the world. Thank you, nicole. Connell blizzard watch for parts of the northeast. Dagen the very latest forecast for us. Good morning. We have all the ingredients necessary to make for a major storm into friday night. Including a big arctic air mass. The coldest temperatures in new england we have seen so far this winter. A storm in the midwest moving in and something we have not seen with any of these through the past week. Gulf moisture. You have that storm. Soaking rain across the coast, some have your thunderstorms around pensacola, much of this along the i5 corridor. Bringing in not only thunderstorms but tasty, tasty mess in chicago this morning, more than twohour delays at ohare. It is going to rapidly intensify moving north and east. We can expect some significant delays not only across new york but into the boston area as well, travel will be nearly shut down. Heavy amounts of snow. Places like hartford, springfield toward massachusetts we could be talking 2 feet of snow. Other than that into new york city you could be picking up 6 inches or more, so this will definitely cause problems. Dagen thank you, valerie. And lets bring in chief forecaster joining us now on the phone from pennsylvania. Good to speak with you. Some folks are playing down the storm, will not be a big deal, what do you say to them . To be a big deal for 10 to 15 of the population. It is not hype. One to 2 feet of snow is not a lot of fun to be out in. We have had enough storms the past couple of years we dont have to get up. This storm is bigger on our radar we have been talking about it. It came through the Pacific Northwest knocking out like they have been doing and falling apart, but it came out of sort of that pacific branch, and it is very similar, and dangerous in new york city, similar to 1969 storm read the folks who lived around here during that time the new york city area so that storm was portrayed as a backandforth situation, some of the modeling i tend to believe showing something that is valid here, the height of the storm over the heavy storm and around the cities, you have to remember if it is snowing three to 4 inches per hour for five hours, a pilot up very quickly, so it is right over the city where a lot of people live. In connecticut, massachusetts, rhode island, new hampshire, you will be shut down at the new england snowstorm and get ready, the southern jet stream will be very active in next two or three weeks and not the last time we se saw the storm in the northeast and the folks in the planes. Very active weather pattern the rest of the winter season february and early march. The big q. Now, it is a done deal across new england. Locally up to 3 feet. What happens is you have ever been around rhode island and boston, you know some of the variations because it is cold in one place than the other will determine who gets 45 and who gets 15. The two things very crucial is how hard is it snowing, and also with the temperature reaches a certain level minus 8 degrees celsius at 5000 feet it starts to get that ratio. You will see the heavy snow, 129, 30 degrees and 15, 25 inches of snow and another not as much liquid but it is blowing around and still piles up, so a big problem around new york city is the shift eastward occurred when the wind turns from the east northeast, what time does that happen. Northeast winds doesnt come off the ocean in new york city, comes off of them would end back in, three to 4 inches per hour, five hours, guess what read the big battleground over the city and the island and northeast than what it is getting shut down from the storm. Dagen always good to talk to you, take care. Connell business alert on our economy with productivity falling at a 2 rate, the biggest drop we have seen in a couple of years but our next guest says there is a Silver Lining to all of this. Chief economist in massachusetts, good to have you on today. What is the Silver Lining . Of the drop in productivity. Dagen basically businesses have squeezed as much as they can out of their workers, so to grow their top line they need to add more jobs, basically, more employees. And we saw a rapid pickup in employment growth from the Third Quarter to the fourth quarter. We added 450,000 jobs in the u. S. Economy in the Third Quarter, 600,000 of the fourth quarter, that fell to the productivity numbers, stay good news is they are hiring more, the bad news is productivity is not rising as rapidly, it is actually falling a little bit. It actually sets the stage for a better economy Going Forward. Connell companies are doing more with less. They were saying we will make the most of it, we will cut back on how many human beings we have, more electronically or with machinery or cut our costs and still have the same amount of production. That has been the story for years. Will we see a bigtime story in that pattern . We will see weaker productivity growth, which is good in the end for the recovery to be selfsustaining, if you will, but some of that was because of the fluky gdp numbers. The fourthquarter gdp all because of inventory and defense spending, other components are growing. First quarter will be 2 growth, so the productivity number will still be weak in the First Quarter but not as bad as that in the fourth quarter. Connell give me a bottom line. Even after the recession everything we have been through, people still coming out and telling us what is wrong with the economy. There are two or three good things going on. Consumer sentiment has been at about a 2 rate, 70 of the economy, second housing is recovering. We would not have decent recovery without housing. Third, an energy boom going on adding a lot of jobs in parts of the country, places like that, so quite a few right spots in the economy. Connell there we go. Pretty well put together. Thank you. My pleasure. Dagen thinking about the cloud in more and more states. Connell a winner in the big Powerball Jackpot somewhere in virginia. One of her relatives. Dagen why wouldnt it be . We all play the lottery. Right . And the woman defense cuts costing one Carrier Group in the persian gulf. John taylor says it has to happen. Take a look at how the oil market is doing. We will talk about the rapidly rising gasoline prices. It wont be as bad as last year. He swears. Oil 96 per barrel right now. Twins. I didnt see them coming. I have obligations. Cute obligations, but obligations. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Connell this is markets now, somethings arsome things are toe true. Businesses that they cut the Technology Cost but Many Companies in idaho are discovering it actually can increase their tax bills. Software is tangible property regardless of how it is transferred to the customer. Idaho the most recent state to tax cloud services. And according to a new survey, young adults are now facing stress levels that are higher than the national average. This is a survey done by the American Psychological association and finds 18 to 33yearolds reporte report beid by Health Care Provider they have depression or anxiety disorder more than any other age group. They also say stress has kept them awake at night in the past month. Topping the list of sources of stress, work, money, the economy, the usual, i guess. Dagen suck it up. Connell somebody is making up 200 million richer. The 270 million Powerball Ticket was sold last night, the winner has yet to come forward. The lucky winner has 180 days to collect and they will make the name public. Dagen a quarter past the hour, stocks down every 15 minutes, Nicole Petallides at the New York Stock Exchange with news on apple. Nicole we have been taking a close look at apple on a day when they have been very vocal investor, vocal once again in todays findings you are seeing apple to the upside of over half a percent but the fund manager has moved forward in a filing of securities and Exchange Commission dissatisfied with apples l. Edition, not happy with how theyre moving forward, he wants to unlock shareholder value, talk about one of the proposals on this proxy that could in fact actually take away apples ability to issue preferred stock. That is not good news for him. Lets take a look at the major market averages, the dow down 100 points, 27 of the 30 names with american express, boeing leaving the names. Connell jeff flock with the new models are going to want to see. Dagen a Carrier Group in the persian gulf. Yes, the Federal Reserve to follow that. Says we need these cuts. And how world currencies are doing against the dollar and white the euro is to blame. Blame the fed. 21 minutes past the hour. This is your fox news minute. President obamas nominee to head the cia facing very tough questions from lawmakers on capitol hill this afternoon. Appearing before the Senate Intelligence committee to take part in a confirmation hearing. In ahead of that hearing how a white house is giving a small group of lawmakers sensitive documents providing insight into the Administration Legal rationale for drone strikes on americans suspected of working with terrace. Several lawmakers who requested those documents were on the committee that will grow the start of the program. And talk to give up details about who helped him dope and how he covered it up to antidoping authorities. A former professional cyclist wants to do it to reduce his lifetime competition in down to eight years. Those are your news headlines. Back to dagen and connell. Dagen you better be careful if you go under oath, right . If Lance Armstrong goes under oath and they discover he told one lie, watch out. Connell i thought you were talking to me personally. The nations largest running auto show is kicking off today in chicago. Dagen jeff flock with the companys ceo and president. Jeff we have got focus this year on chrysler because they are on a run. That is a handbuilt sports car. 640horsepower. Ram has a big unveil later. We want to focus on dodge. Introducing a new challenger, a powerful vehicle. A new challenger look. Jeff you are on a roll. A great year. A powerful car, did you not see that gas prices going up . We did, but it is all about buying cars. Lots of personality in them. Jeff walk me around here. Youre getting hit really hard by your boss, everybody is working really hard. This dodge dart was a little bit of a disappointment. Last month was our alltime high, over 7000 sold and talk about a counterbalance with the challenger. 41 miles per gallon and still very much ramping up and confused receive awards, picked up 27 awards so far. Jeff tommy this, yesterday signed a deal to create chrysler capital. How big a deal is it to finance a deal . We have had a great relationship with allied financial, that relationship will continue through april 30 and then a new relationship that will form chrysler capital Going Forward. Jeff you control who you make loans to, right . Absolutely. Having a critical finance option is very important Going Forward. I think this time theyre able to leverage the Balance Sheet of a worldclass Banking Institution with a first rate credit union, and we can offer financing to consumers that is not only at a greater rate, but also make it available to a lot of people who have had a difficult time over the past couple of years getting a loan. Jeff great point. The Auto Industry has led the recovery, nobody more than chrysler with the brand sheets of not only dodge but the chrysler brand as well as the ram brand and jeep brand. You will get everything you need to know about chrysler. Connell looking forward to it throughout the day. Dagen thank you, jeff. Pending cuts on defense have to happen. Even if it means one less Aircraft Carrier in the gulf. Connell that is coming up, and the latest on the dreamliner investigation, National Transportation safety board giving us their update right now. We will bring it to you coming up. We have some individual winners and here they are on the s p 500. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Dagen fendi contest tells us why we need to cut spending in defense. Investigation that has kept the boeing dreamliner grounded in when the plane may fly again. Twitter with some ambitious goals. Social media giants targeting 1 billion members. Not impossible. Twitter is the future, facebook is dead. Connell you just heard it here. Ahead of john taylors appearance, nicole, what do you have for us . Nicole i wanted to talk about yelp. The stock right now is down 5. 3 . We had a law that narrowed, more importantly the big picture of business for yelp, encroaching competition from the names such as google noting that. Google and facebook and how they can compete in this same realm. It seems like an uphill battle for yelp climbing up since november. Not too bad. The Dow Jones Industrials now down officially triple digits down 106point on this day. A majority of the names lower whether it is thanks or drugs or retail, for the most part a lot of down arrows. Connell we will check back with nicole in 15 minutes. Dagen the u. S. Navy reducing the Aircraft Carrier presence from two to one vessel in the persian gulf effective immediately. Uss truman was set to depart tomorrow, but they will remain at the home in Northern Virginia until further notice. This is just the tip of the iceberg as budget cuts are due to go to effect tomorrow. Connell says we have to fill the pain to go into some of these cuts. Terrific to see you. The sequestered and possibilities making all of these cuts. Dagen it is across the board, making the stories about Aircraft Carriers, they dont have the facility to adjust spending. Keep with the same spending totals because we have to get the growth in spending down. The defense department, gives the Government Agencies the ability to adjust what parts of spending the think are most readily adjusted. Dagen the thing about spending cuts, negative growth in the fourth quarter, many in washington, Many Democrats say the economy is growing very slowly, we cant afford to cut spending at this time. It is slowing the growth rate because we have a lot of growth in government spending, tremendous amounts in the last four or five years, slowing the growth and i think gradually and quite frankly quite gradual. In the overall economy we have will be beneficial because people are worried about the deficit, worried about the death that comes from the growing deficit so taking a stab at that for the first time in a long time will be beneficial to the economy. Connell are we making progress yet or is there much, much more to do . It is not just economists on the left making this argument, listen, to an half trillion being cut, we are getting there. Smell is not the time to get all ciccone in. What do you say of those people . In 2007 we were spending 19. 7 of gdp in the federal government. It is now around 23 or so. We want to get it back to where it was, so it is not au