This hour of markets now. Connell governor christie wrapping up a news conference, so we are ready to go on markets now. Dagen you were treating last night. Connell people staring at these devices. We will talk that in a minute. Now to the market first of all before we get through any of that, Nicole Petallides, good morning. Nicole good morning, connell and taken. We started off with a very tough job this morning, less than anticipated coupled with Participation Rate, the challenges of 1977. The economy is not as good as people thought it was. The dow is in the negative territory right now. 16,014. The nasdaq higher slightly. Most of the names have down arrows, some squeezing out some gains. Take a look at intercepts, pharma up 300 . On a Liver Disease drug, tacking on further gains. Back to you. Dagen the jobs report last month was terrible. People were expected the fewest number we have seen in less than three years. The Unemployment Rate did fall to lowest since october, 2008. That is because about 350,000 people who dropped out of workforce for whatever reason. Keeping the Labor Participation rate at levels not seen since the late 1970s. What make of this putting money to work on the market. Director of research, you had to be surprised by this, the weakness in it. Yeah, it was unbelievably bad jobs report. I think these are some of the same people that cannot roll out website from health care plan, there is just no way the actual jobs number is this bad. The adp number was over 200,000, the gdp number was stronger. They made some kind of mistake in the seasonal adjustment. Dagen do you expect these numbers continue to be about in the 200,000 range. It should be higher if the economy was growing faster. We expect the number to be te north of 200,000, we expect this number to be revised up. The government announces a number that it announces revisions to pass numbers did next month i bet you will see it revised up a lot. The one thing it does potentially is it affects the fed. When you get a bad jobs number like this, people are nervous of what impact it will have on the fed. Dagen would you be more nervous earning stocks or u. S. Treasuries at this point . Treasuries, no doubt about it. The bond market was down about 2 . It lost money last year compared to the s p eing up 25 . We think most of the pain is behind us, but the 10year treasury will go from about 3 up to about 4 , you will lose another seven, 8 on bonds over the next couple of years. Dagen given the recordbreaking run in stocks, is there any industry you can still find some reasonably priced stocks . Much harder, much harder. The year ago all kinds of great opportunities pounding the tables on financials. Would still say value tech. Not saying twitter or facebook, but names like ibm, western union. Even microsoft, and the other pockets of financial services, some of the larger banks, jpmorgan trading nine times earnings and energy, exxon, Chesapeake Energy stocks are still pretty cheap. Dagen great to see you as always, have a great weekend, come back soon. Connell lets get to this target story now. The personal data theft at the stores is worse than what was dagen these numbers are breathtaking. 70 million custooers had their personal information compromised at the breach target stores over the holidays. These are people who had their names and addresses, phone numbers and emails stolen in the attack. Separate from the previously disclosed 40 million credit and debit card numbers compromised. Offering one year credit monitoring for all guests who shop in the stores. Connell the company is making a 1 billion bet on Artificial Intelligence. These numbers from ibm, a new unit completely around supercomputing systems watson. After more than doubled the number of people they have dedicated to this. Just ask the ceo, helping deliver 10 billion in annual revenue. Joining us on all Things Technology many times. What about first of all the projection for watson in terms of monetizing it, which has been a challenge. We will talk about the great things watson can do, what about the projection from ibm . If they cant get it to work properly and expanded to other markets, it is overstated. The major jump in computing capability, something we havent seen before. Ibm is the only company taking this kind of risk with Artificial Intelligence. The fact it worked, and i understand although i cannot get details suggest and they really do have something here, and if that is the case, it is well understated for was this thing could actually produce. Connell for the title used in the book going back to the jeopardy days, this is almost humanesque. What are you most concerned about for the future . Will change every industry, in our lives. We have to reorganize the way we work with knowledge. Part of the challenge is trying to sell the machine. It will change the work of how we all deal with information because it will provide answers in all these areas. I say the only other company that has the wherewithal to have a project like this would be google, and google is coming at Artificial Intelligence by different angle, theyre looking at the consumer. Ibms looking at companies. The risk for ibm as i see it is a company like google will put together a package of these technologies that can offer a big part of what watson delivers at a fraction of the cost or even for free. Connell a lot of this is a technology question, but the other part of it is, we talk about this all the time, a big data discussion, we will have much more information whether it is provided by watson or somebody else. Thats real data based on somebodys feelings or some ceo coming up with a gut feeling or an instinct or what have you. Have we even got into a point tip of the iceberg on that yet, and how much do you think watson can be a part of that revolution or change . It could be at the core of it. Something that is really important, the behavior is relatively hard to change. We are structured so that people who seem to be right, the controlling composition for the ones most dominant and have the highest status, a lot of those people are threatened by Something Like watson, giving information to folks who are below them in class, so the regular person can be smarter than the ceo. Folks who have that power are often threatened by taking ensuring that power it gives more at lower levels. It may actually block access for the fear younger doctor could show them up. This is a behavior we have to get around if you want to get the full power and benefit of Something Like wasabi at connell anybody who is a spokesperson knows that already. They didnt really want new information that was a better analysis of what they were provided with their own eyes. That will happen in all businesses, i would think. Go back to the medical industry. People identify with that because you see your doctor, he says here is the diagnosis after i have looked it over, i have a feeling i have seen my experience in the past and this is what you have. Will ibm be able to monetize it to change that whole experience for people . Or make it available to more people, and how far away are we from that . We will see dramatic changes as far as that. With people misunderstand about watson is they think it gives answers, sometimes it gives ludicrous answers. If you look at watson as a machine that reads a vast amount of information and can provide may be a list of hypotheses, each one with its own confidence in that hypotheses, it is up to the human to figure out which one makes sense. Watson is a tool, not a brilliant person. Connell is almost like siri. If you ask a dumb question, you will get a dumb answer. We will be laughing at the way we deal with information now in five or 10 years from now. Connell some people concerned about privacy. Is that legit, or with all these new technologies coming out, is that something you would just write off . What the allegations, it is very clear all the information is being captured. The government has massive amounts of information on us, but some of that information is very useful if we could get access to it. They have access to information that could prescribe or could identify a sickness that we dont have yet, could identify a threat to us that we dont know about. The information used for our benefit so we could identify that threat, that problem to better protect ourselves. I see it leveling the Playing Field broadly, getting everybody more access, it is actually us using the information to our benefit. Connell we will see, as long as they cannot host tv shows, we are good enough to go. At 1 00 p. M. On markets now. Dagen the big concern for your eyesight and the time you spend on your smartphone or your tablet. I will explain later. Connell lawmakers have gone o off, how many will bring sevenfigure salaries straight ahead . Dagen or on new jersey, governor Chris Christie attempt to quiet this controversy when it means for the race for the white house in 2015. Take a look at the oil market. Except it has nothing to with new jersey. [ male announcer ] this is the story of the little room over the pizza place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had thpower to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did in a little dorm room 2713. This magic moment dagen what . Connell rolling right along on markets now. Dagen you looked cranky. Connell what would lead to that . What are you doing . Intoxicated or something. Nicole is here to talk retail. Take it away. Nicole lets take it away. We have a tough day for retailers looking to the downside, analysts have been onboard downgrading these names. Sears down 14 , so sears has come out and basically showed weakness in the latest quarter. Their comp sales are not good. Kmart under their umbrella. 5below to the downside. Another one to watch. Up about 150 over the last 52 weeks, so that is a good one, but customer traffic week. Blaming the weather as well. Back to you. Dagen thank you, nicole. Blurred vision after looking at your smart phone or computer for too long or tablet. 70 of americans report levels of digital eyestrain with symptoms including dry eyes, fatigue and even neck and shoulder pain. The strain is caused by intent staring at screens for long areas of time. They recommend blinking more often or taking a break from using your phone or tablet. Something that could and should be taken seriously, could lead to longer term problems including degeneration and cataracts according to the Vision Council and trade group. My eyes dont focus as quickly as they used to. Connell focus on me, will you . Because i am the one on the camera. Majority of congressional leaders, 258 of them to be exact, average net worth over a Million Dollars. The democrats higher than the republicans in that category. Talisman darrell issa, chairman of the house and House Oversight committee, takes the top spot as the richest member of congress in 2012, a big career in business before politics. 464 million, the analysis taking a look at the investments. It reveals general electric, the top Holding Congressional members overall last year. This is all from the center for responsive politics, these particular politics numbers. Dagen darrell issa, that is all selfmade. The pressure is on for new jersey governor Chris Christie. Why his possible 2016 white house bid could be caught in a jam. Connell one Company Turning homemade goods into big business. The ceo of a Company Called etsy coming up on markets now. Keep it here. So ally bank really has no hidden fees on savings accounts . Thats right, no hidd fees. Its st that im worried about, you know, hidden things. Ok, whys that . Well uhhh. Surprise um. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. 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Tdd 18888522134 call 18888522134 to learn more. Tdd 18888522134 so you can take charge tdd 18888522134 of your trading. Just about 24 minutes past the hour. India asking the u. S. To withdraw a diplomat from the u. S. Embassy in new delhi. This in retaliation to the indictment of an indian diplom diplomat. Charge with visa fraud and lying about how much she was paying her new york city housekeeper. She is now back in her native country. Rescuers calling off their search off the virginia coast. Five crew members were aboard the chopper. Two people died and two others hospitalized. They scoured an area of the 500 miles for 30 hours. The cause of the crash is still under investigation. Hundreds of thousands of people in nine of the states counties feeling the effects of a Chemical Spill in the water supply. Chemicals spilled into the elk river in charleston yesterday. Back now to dagen and connell. Is your family affected by this . Dagen no. Not at all. Thank you, good to see you. Lets make some money. December jobs report coming up side is treasurys rally, the yield going down, that is certainly the news. Charles i like a lot of them. It has a pretty broad base, like some of the geographic regions, pretty good home appreciation. The orphans, ignored space. Because the limited fed would taper, home sales building up, back was building up, would actually like to see them go sideways a little bit the people dont feel like i missed a move. I like the riskreward for homebuilders. Connell the market overall who we are, whatever it is, what do you think of where we are after todays job report and the 10year note . Charles ive seen a shift over the last several months and now, good news the market was up, bad news it was woefully. I always thought the greatest threat was the u. S. Economy, not the global economy, but the u. S. Economy. We have made it in spite of ourselves, quite frankly. It is not a panic situation, we are due for a pullback or a correction. People would be wise to be continued to be invested in the market. Dagen he said there were lots of Money Managers short treasury, you could see a Short Covering rally and the yield falls and the prices go up . In the beginning of the week. Hello. Howdy. Charles see you later be at connell this is booming. One Company Coming up. Showing up, new york city, etsy is the company. Dagen nfl team searching for new coaches should talk to our guest coming up before they look any further. [ telephone rings ] [ shirley ] edward jones. [ male annncer ] with nearly 7 million investors. Oh hey, neill, how are you . [ male announcer. Youd expect us to have a highly skilled call center. Kevin, neill holleys on line one. Ok, great. [ male announcer ] and we do. Its how edward jones makes sense of investing. [ male announcer ] and we do. My dad has aor afib. Brillation, he has the most common kind. Its not caused by a heart valve problem. Dad, it says your afib puts you at 5 times greater risk of a stroke. 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 superior to warfarin at reducing the risk of stroke. And unlike warfarin, with no regular blood tests or dietary restrictions. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial heart valves. Dont stop taking pradaxa without talking to your doctor. 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 effects 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 risk of stroke with pradaxa. 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 promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Connell back here on markets now, good news for a couple of tech stocks. Microsoft and linkedin. Nicole rejoined us with the latest. Nicole microsoft and linked in that analyst upgrades, helping them along bucking the trend of what we are seeing. There is a nice one year chart for you. You did have barclays and microsoft today. And nice pop in microsoft. Securities keep in a buy rating also, and watching that as well. Best i been a recent 20 pullbak in this stock, the buying opportunity. Linkedin, lets see what its doing right now. Another one to watch closely. Dagen thank you so much, nicole. Chris christie doing his almighty best yesterday to put out that fire over the intentional closure of lanes leading into the