i'll do it again tomorrow if i may. >> excellent. because ty's on assignment. we'll see you tomorrow. that does it for us on "power lunch." have a great afternoon. >> "street signs" is right now. and welcome to "street signs." i'm brian sullivan. neil young saying don't lit bring you down. yeah, the index is stuck in neutral. but don't worry, there are big movers galore. retailers, tech, food and news and names behind them straight ahead. winter blues, maybe, but a new survey says more economic sunshine may be just down the road. the man behind the numbers will tell us why. and the countdown to the super bowl is on. so today we are asking which city is more super for stocks. who's got more winning companies, new york or boston? orlando, not an option, mandy. >> hey, brian. good morning everybody. i'm mandy drury. i'm live at the t.d. ameritrade conference in florida, orlando.

it's beautiful outside. no windows here fortunately. this is the nation's largest gathering of money managers. very shortly we're going to be speaking with the ceo of t.d. ameritrade, fred tomczyk. also we have coming up david from mainstay and larry haverty and jeremy siegel we will not be having on mickey and minny, we've left them outside for poor behavior. >> i got to do your job because you're in orlando. fed chairman, ben bernanke, urging congress to get its fiscal house in order and come up with a long-term plan for sustainability. from all of us here at "street signs," we say good luck, ben. markdowns unraveling profits, teen tailer, abercrombie & fitch, a leading example. its shares down more than 10%. and yet another record low for mortgage rates. freddie mac now putting the average 30-year mortgage rate at

a stunning 3.87%. of course, where are the buyers? all right. as we mentioned at the top, the major averages are not moving a whole lot. a whole host of individual stocks are surging. check this out. las vegas sands a new 52-week high, cummins, up. gap up 9%. mastercard and visa going gang buster. bob pisani always at the new york stock exchange, rick is in chicago. bob, i want to begin with you. another day with lack of volume, lack of volatility, but some big names on the move. >> well, i'll tell you what is amazing, we're at the halfway mark for earnings, brian, and earnings have been very choppy so far. that's the way i see it. and yet the market doesn't seem to think they're very worried about that or greece. the vix, take a look. it's the lowest since july 22nd right now. and i think, i called some trading desks, they seem to think the only reason the vix is

this high is because of greece. some think it would be at 15 if greece was cleared up. that's a clear indication the market's not that worried. choppy, cummins is a big one to watch. they had great numbers, but other big international companies didn't. that's what i mean by choppy, brian. it's a puzzle to me why the vix is so low right now. >> it's been really hard to find any kind of -- have you been able to spot a trend? for the life of me i can't. >> no. >> one sector does great, another company in the same sector does lousy. i can't find any trend whatsoever. >> good example are retail numbers. today a bunch raised guidance and a bunch lowered guidance. it was very choppy right across the board. another thing, options premiums are coming down as well overall. it's another thing i watch. again, even the options market doesn't seem to be very worried. of course the vix related to all that. >> all right. bob, thank you very much. now to rick santelli. all right, there were some rumblings, grumblings, mumblings

about a possible qe-3 that got you all fired up today. what's the problem? >> well, i'll tell you what, about the time -- this is about confessions and al ke my. what a great novel that would be. scary topics. the confession side, you know, mr. ryan talking today with ben bernanke, he had a confession. congress can't help itself. you manage low interest rates to a level where we think we could spend forever because the world is giving us all of this money at such a low rate. about the same time the confession was going on, there was somebody trying to spin more straw into gold. that happened to be our own federal reserve president right here in chicago, charles evans, with a room of reporters saying, you know, we really may need more quantitative easing not only in treasuries but mortgages. and some people believe that number ought to be $1 trillion. because of this huge employment gap that we have. i just want to ask one question. i still haven't seen independent

research show that the fed's $3 trillion balance sheet, the fact that since operation twist they basically bought 91% according to zero hedge of all long-end maturities that that is making a difference to the structural unemployment. other than shrinkage, of course. you know, shrinkage, is what we are now looking towards for tomorrow because the way you shrink the unemployment rate is to shrink those you count in the work force. >> or you can just keep taking new credit cards with promotional offers and just keep transferring balances to new credit cards. >> yeah. i don't know where we go with this, but we need to really discuss it. i thought what ryan said today really struck home. i thought what was going on in chicago was kind of another world unto itself. >> all right. rick santelli, thank you very much. i'm sure the talk of qe-3 is not completely done, but let's move from chicago to the great state of orlando, florida. go down to mandy, drury.

>> thanks very much for that, brian. i am here at the t.d. ameritrade conference and we're back here now with fred tomczyk. great to have you with us. i'm going to reset this completely and i'm going to say good afternoon. when i say good morning, of course it's morning somewhere in the world, like australia. we were speaking earlier this morning about the state of the retail investor, which unfortunately has been lacking in terms of participation out there in the market. you can see that in the low volume. and we saw in the investor survey that you put out with cnbc a lot of contradictions. half of them said they were neutral in the market, but also half said they see the s&p moving higher over the next three months. do you feel the retail investor is just very confused right now? >> there's no question the retail investor is very confused right now. there's a high degree of uncertainty. and one of the things that come out in the survey, there's a number of things that are causing them anxiety, but it's clearly about europe and the u.s. economy is the top of mind. >> so what's going to bring them back? we have to wait for europe to solve its problems out?

we could be waiting months. >> i think the u.s. economy continues to show some signs of momentum, the issue is that momentum is actually slow. europe right now is just putting so much pressure on people's uncertainty and world uncertainty. that is just causing the markets to say i don't know how this is going to turn out, so i'm going to stay on the sidelines. >> in terms of your business itself, obviously you would like to see more trade today, i know you would like to get up to at least the 300,000 trades a day for example. you have a low interest environment as well as low volume. how do you counter that? >> there's no question that the interest rate environment hurt us. the way i think about it is we've lost a third of our revenue over the last three years. so it's quite painful, but i think we've put in a series of strategies to focus on organic growth and we've been growing at double-digit rates now for three years. we changed our cash strategy to go to bank deposits versus money market funds. and we've been aggressive in

buying back shares. >> uh-huh. >> and those three things have allowed us to do quite well despite the industry. >> sully, come in here. >> fred, thanks very much. brian back at the mother ship. listen, you guys have e trade, schwab, a number of other players as well. mandy talked about light volume. your industry from my point of view seems right for consolidation. do you see deals in your space? >> well, i think the industry has been -- you know, we've been a consolidator of the industry for years. there's no question that the it is right for consolidation, but there are some challenges with that. we are down to five players right now. and of the five players there's the big three between fidelity, ourselves and schwab. scott trade is privately held. e trade has balance sheet issues. makes it difficult to do a transaction that makes sense. >> i'm sorry, listen, fred, you've got a fixed cost structure. if your volume goes down, revenue will come down with it.

you're going to have to look for other revenue streams. >> absolutely have to look for different revenue streams. we've been able to do that through very strong organic growth. we have countered the interest rate, basically, impact on us by growing our balances particularly in interest assets and moving to bank deposits and putting that on the bond curve. that's helped us quite a bit. clearly on acquisition to make strategic sense, would be very attractive now. >> i've got to ask you france wants a financial transaction tax, do you see this as something coming to the united states and what would it effect your sector? >> the transaction tax from our understanding has no legs in washington. we're going to make our points on that to make sure people understand that. we think it's really bad policy and somebody trying to shoot at people they want to blame for the state of the world right now. and there's going to be a lot of unintended consequences. we think the retail industry will be hurt the hardest by

financial transactions tax. >> fred tomczyk of t.d. ameritrade, great conference today. thank you for joining us today. back to the mother ship, brian. >> mandy, can i ask you a question? >> yeah, maybe. depending on what it is. >> you've been down there all day and talking to people, what's the mood of people? do you sense enthusiasm for investing down there? >> i do sense enthusiasm for investing down here. obviously, you've got the market, which you know in terms of the dow four-year highs, nasdaq 10-year highs, low volume aside, i think people are starting to feel things are getting both economically speaking and market speaking. everyone i've spoken to sounds more bullish than bearish, i would say, brian. >> did you bring your hopium t-shirts? >> it's under this. >> thank you very much. we're going to see mandy throughout the hour. great stuff. let's go to herb at the mother ship. she's down in orlando, you and i are sitting here onset in northern new jersey. >> there's something wrong with that picture.

>> what -- you've got plastic and jeans on your radar, why? >> you talked about this earlier in the show. you mentioned mastercard and gap. but i want to mention mastercard because it's kind of interesting. company quarter after quarter seems to be blowing out the numbers, doing a great job. but it's what they said specifically and as you try to pour through there they've said there's been a shift away from paper. so there's continuously more people using plastic. plus they're striking new deals with new businesses coming in the fall. they did talk about the economy. i was thinking, you know, what was really going on here? are people using -- are we going back into debt? so it was just one of those things where they said the economy's getting better, so people are doing it, but yet there are concerns about the unemployment going forward. and of course we have gap. you know, sales for january were down, but they were not down as much as people thought they would be. >> isn't that amazing? gap soaring because sales didn't fall as much as expected, but, folks, the sales still fell. >> and the company came out and said when they report their quarter coming up it's going to be better than expected.

it's still gap. they still have a lot of competition. >> i believe it's collin stewart, said sell on strength and shares of gap today. >> few people said that. >> on deck, why americans now see the glass as both half empty and half full. how about that? and later on, a new way of looking at the age old battle between boston and new york. forget sports teams though, which city has better stocks? >> good question. also coming up live from the t.d. ameritrade investor conference, the sage of the street, yeah. jeremy siegel, why he says the market is undervalued by 25%. i'm going to go and find a telephone booth right now and change into my hopium t-shirt. in america, we believe in a future

that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪

do check out shares of concur technologies up about almost 9.5%. a new 52-week high by the way. this is a company might use them. they help manage travel and expense reports online. they raised their target from 66 to 48. they also said this company could be an attractive takeover candidate. so concur getting a boost from numbers and positive comments. well, americans are shaking off the winter blues, if you want to call it winter, it's about 50 degrees outside in new york city. anyway, we're going to break down the latest rbc consumer index and talk to u.s. chief economist for rbc capital

markets about it in just a minute. but first, steve, are we feeling the -- i'm not going to say it, optimism. >> it says hopium. the fact is you cannot quit it. does management know about your problem before they hired you? >> i can't quit you, hopium. >> a hopium addict sully is. folks, here's what's happened with the rbc index. took a slight turn to the negative in january, but hopes for the future really improved. hopium hopes for the future. you can see the tick down there. but what do you see when you look at this chart? we're up off the bottom but well below where we were if you look to the left hand side of your chart where we were before the recession. it's still among the highest for recovery but well below pre-recession levels north of 50. what's going on in the consumer's mind? the index tells us. here's the break down. confidence, down 0.7, current conditions down 2. but look at that almost 3-point gain for expectations.

investments negative, jobs negative and inflation a little more positive, which is actually a negative. it's the expectations that things will get better that is really what's holding up this index, brian. >> all right. move to tom man behind this index, you have a good team behind you, from what i read short-term a little more wary but longer term a little more optimist optimistic. >> it's easy to be optimistic about the future. >> we are inherently to be optimist optimistic. so how often do you see it look optimistic and ratchet back as we get close sner. >> a great way of thinking about that is if you overlay the expectations component, which is supposed to be the forward looking measure with headline confidence, what you would see is there's actually no correlation. in other words, if you put leads in there, you're not going to see any sort of correlation. >> a lousy pick in the future. >> that's exactly what that means. >> consumer confidence comes in lousy but retail skyrocket and do very different. >> brian, something interesting

this asks people about their experience in the job market. to me this is the compelling part of this thing. put up the next graphic if you have it, do you know someone that's been fired including yourself? what we're counting those saying yes, this may be significant for tomorrow's jobs report, back on the increase. again, well below the worst levels but up where we were in january. herb. >> how does this play into what i just talked about with mastercard? how about the credit card companies doing well, was that in there -- >> did you plan this? this is great. >> herb is totally random at all times. >> also he can't read. [ laughter ] that's his dirty secret. i promised i would never tell you that. >> except charts. he can read charts. >> so what we actually ask people was before the holiday are you using your credit cards more? how are you balances looking? a couple of really interesting nuggets came out of that. it seems that people actually did use their credit cards a bit

more, and now they're carrying higher balances. what was particularly troubling is that the biggest increase came in the 18 to 34 age group. and what was moreover even more interesting is if you look at we also asked people what is your -- sort of what was your outlook on the economy over the course of the next year? and the biggest segment of pessimism was in the 18 to 34 year old group. >> they're basically going in and sort of charging it up. >> yeah. a lot of debit cards too. 29% -- >> well, he was talking credit. >> 29% said they left the holidays. if you have that chart in the back, 29% said they left the holidays with higher balances, 47% said none at all. 24% said lower. there it is right there. right. 24 lower and 29 higher. one thing i want to point out one thing dragging down the index inflation and i want to show you the chart on this, people's expectation for gas and food prices in the next 12 months, it remains high. and there's a legitimate

question, how in god's name can the fed say inflation expectations are anchored if this is what people think is going to happen to inflation and gas and energy price sns. >> i think, you know, look at the end of the day i'm not going to make much of that one particular chart only because it's not breaking out of a significant range. and moreover we don't have a heck of a lot of history yet. but generally speaking inflation expectations are relatively well-anchored. you and i think, steve, we spoke about this one day, i think what's really interesting even bernanke pounded the table today on inflation is so important, still interesting to me they yanked out that entire inflation comment. i think he sort of realized after the fact that guys like me were sort of pounding the table on wow if you wanted to order inflation expectations or unemployment, it's clearly employment that's number one. >> and bottom line, tom, great stuff, bottom line in six months will things be better or worse for most americans? >> i think things are going to be pretty much the same. >> in six years will people be better off or worse off? >> i think things are pretty

much going to be the same which is to say not better. i don't think things are going to improve that much over the course of the next five years or so. >> not hanging out in the hopium den. all right. just ahead on "street signs," green mountain coffee roasters, herb, up 20%. herb is not ready to serve up a mea culpa yet. yankee. >> not yet. yankees, red sox, giants, patriots, new york boston rivalry is bitter and it is deep. but coming up, guys, we're going to look at which super bowl city bodes the best stocks. "street signs" is back after this break.

intuitive trading platform that thinks like a trader. fine-tune technical analysis with the integrated chart tools sidebar. to seize an opportunity, i have to see it. with this, there's no more hide and seek. pinpoint your target more efficiently with clearly categorized, highly customizable technical studies. i'm looking for two things-where to get in, where to get out,

so i find the study i want and make it look exactly how i want. plus, scan any stock or etf against time-tested indicators with built-in chart pattern recognition. you've gotta go beyond gut and get to the data. now i can see if a stock might go where i think it will go. customized charts. intuitive control. get started with streetsmart edge and get it all for the schwab price of $8.95 per trade. call 1-888-800-8026. open an account and trade up to 6 months commission-free. talk to chuck and get started with streetsmart edge today.

all right. we've got some big news out of chrysler. the company adding 1,800 jobs to its plant in illinois. philip lebeau is here with all the details. good news, phil. >> certainly good news for the people in this area, brian. this means that chrysler once these jobs are added, these 1, 800, by the end of the summer will have added 4,000 since it's come out of bankruptcy. today we had a chance to talk to surge yo coming off of a month where sales are up 34%, chrysler

clearly on a roll, is it time for him to step back and say, we made a lot of progress? not at all. listen to what he had to say. >> this is an incredibly short-lived phenomena. you could get off the pe di stool. >> chrysler now providing all of the profits for fiat since fiat is losing money. speaking of europe, we asked him what his thoughts were regarding the situation in europe. he didn't hold back in assessing how bad it is. >> we need to decide, right? we can no longer hypothesize solutions. you need a solution. not looking at alternatives. just make a call and move it on. it could be the wrong one for all i know, but make a call. >> and he says that they need to add a third automaker to the

fiat/chrysler alliance. brian, we've heard this talk before. he says his phone's not ringing yet but he believes a european automaker or somebody out of the far east might be the best option at this point, but clearly we have not seen this level of optimism from him in a long time. and he believes that they can continue on this roll they've been on here in the united states. >> phil, i'm sorry if you said it because i'm looking it up, i don't know what that plant makes apparently it makes the jeep compass and jeep patriot. can we assume jeep is doing well, or is this going to produce something else? i know it's not the 500. >> jeep is definitely doing well. that's part of this. but the dodge dart will be built here. and sergio said time and again, we need to make the dart work. we need to get into the small car arena. they still skew heavily towards suvs and pickup trucks. yes, they're profitable, but as we all know, gas prices go up, they're going to get whacked. that's why the dart is so important. >> phil, herb was just laughing, he had a dodge dart in swinger lime apparently.

that was the color of his first car. philip lebeau, good news. fantastic. all right. green mountain coffee roasters, herb, up 20%. although the numbers -- i guess sales were good. you're concerned about inventories, but are you throwing in the towel on green mountain coffee? >> second day in a row. that's where i am about the stock. that's what i say about the stock. am i ready to throw in the towel? i don't really throw in towels or not throw in towels but on this one i can tell you -- >> because you use a sham wow. >> the company beat. but it cut next quarter and reaffirmed the year. you look at something and say it's not quite right here and you look at the stock and there's a disconnect. brewer sales better than expected, but so much so that the company said forecasting is getting complex. by the way saying forecasting is getting complex should be a concern. for the first time the company came out and made a big deal about its expiring patents later this year. they actually acknowledged there would be a lot of competition. that by the way should be a big

deal. and to blunt this competition, they said they're rolling out the next generation machine to get around the expiring patents this quarter. but that it will be a higher price point. that, by the way, should be a big deal. either they're be cannibalizing existing business and/or confusing the market. and then, brian, the lesson soft george foreman grill. no, they don't make the george foreman grill -- >> whatever happened to saltin corporation. that was the name, wasn't it? >> it was. the george foreman grill sort of peaked. right now that was in the usa and right now we're close to 20 million units in the usa. >> it's a method. it's a machine. it's not the actual product. green mountain is the product. >> i'm just saying you always want to ask -- >> here's what i'm worried about -- >> you always want to ask when are you all in. >> fair enough. but the sales beat was so big but kept their full year 2012 guidance for sales. >> yeah. that is a huge red flag. >> all right.

>> they're telling us we have to go. but it's a great question. >> up next on "street signs," is iran stealing iraq's oil? what that headline might mean for crude prices right here, mandy. >> okay, brian. plus it's phil's big day, but will it be ground hog day for wall street? that's a big question for the big fuzzy kriter. "street signs" back in two minute's time. stay tuned to cnbc. should we bey with our t-a-b-l-e-t? [ mom ] i think it's fine. it's the new element from at&t so it's w-a-t-e-r proof. cool. what else does it d-o? it's fast. it's 4g lte. what's l-t-e spell? nothing. w-h-y? hey, can we stop spell talking now? ok. a-y. [ male announcer ] buy a waterproof pantech element for $249.99 and get a 4g burst smartphone free. only from at&t. you know, typical alarm clock. i am so glad to get rid of it. just to be able to wake up in the morning on your own.

that's a big accomplishment to me. i don't know how much money i need. but i know that whatever i have that's what i'm going to live within. ♪ ♪

all right. welcome back. time now for street talk, which is a three-pitch at bat on other hot topics we're following for you today. it's ground hog day, literally. same thing on wall street. volume and volatility are light again. if you are a trader of the vix, you're probably hurting today. by the way, the badger saw it's shadow. six more weeks of winter ahead. the final oil trades are coming in with crude sitting around 96.33 a barrel. one of citi group's top oil analysts predicting today that we could have an epic summer for gasoline prices because refinery outages and also a couple companies are pulling back on their output. if that wasn't bad enough, a new report claiming that iran is pilfering millions of dollars of oil from iraq pipelines each day, hope to have more on that for you in just a bit. hope being the keyword there. there we go. and zynga, enjoying a nice pop

today thanks to the facebook ipo. shares of the social gaming company hitting a new all-time high after facebook revealed, get this, zynga accounts for 12% of its total revenues. think about that. 12% of facebook sales come from people buying fake goods for a video game. i guess i'm getting old because i just don't get it. where's julian robertson when you need him? let's talk now about the gap. we've got herb here. herb, i want to ask you about it. we kind of brought it up, gap shares doing well because sales fell less than expected. i'm trying to figure that out. it's a gap in my thinking. >> no. that's crazy. plus the company came out and said the fourth quarter would be better -- the quarter would be better than expected, yes. >> jim cramer on "squawk on the street" said sell any strength said don't buy it, don't like it, dump it on the strength. we've had some other analysts issue similar comments. >> i'm still back on the zynga.

i'm still back on so many things. there are so many things going on right now, we probably don't have time for. >> we need a whole facebook yesterday. >> why are -- why is groupon up on this news? why do we see -- it's like party like 199 all over again on some of these companies where about the only thing that matters is how big is the short interest and how concentrated -- >> i don't know if you saw my tweet out yesterday on facebook. i know the company is going gang busters. it's a great company. i talked about market cap, et cetera, that's not the only way to look at valuation. but if facebook grew about 2 billion in sales from last year to 2011, let's say it grows at $4 billion a year. so it doubles its current sales growth rate. it's going to take until 2020 to get to the level of sales -- >> you're playing the losers game of valuation. valuation in this story is the wrong game to play because i've seen this movie many times before. what you have is you have a company the street wants to like. it's going to continue until it doesn't. and i will tell you something, this is actually -- this ipo

alone, i believe, is actually bringing in advertisers who had no idea. >> it's going to be a huge ipo. people yesterday sort of slamming me saying it's going to be a rocket ship. of course it will be. what's the float? there's so much demand for such a small part of the company. >> i get it. i get it. >> by the way, zuckerberg's going to pay himself $1 a year starting next year? >> it's irrelevant. >> is his secretary going to have a higher tax rate? >> probably. >> there you go. >> mandy, save us. go back to orlando. i'm sure you miss this. >> i miss it very much. here at the t.d. ameritrade conference in orlando. joining me now ceo and chief investment strategist of mainstay capital management. i also have larry haverty at multimedia trust. larry, i have to start with you. talking about face boox, what does the investment community think about this ipo? >> i think having seen the numbers that the stock's actually undervalued at the low end of the range, mandy. what we're talking about here is superior marginal profitability.

if they grow sales by $2 billion, they're going to convert that incremental sales $1.2 billion cash flow, put a 20 multiple on it that's $20 billion of incremental value per year. i think the other thing on facebook that's being missed and the zynga pop today really shows you what's going on is that facebook and e-bay and apple, in the applications industry are creating tens of thousands of jobs. just think about it. all the jobs at zynga and auxiliary developers are created because of facebook. >> uh-huh. >> this is how we're going to macro economically get out of jobs problem. so i think facebook is clearly going to be -- by the time we're finished with the initial ipo. >> right. >> $125 billion in market cap and i think it's going to ignite a bull market in the stocks because we're getting out of this economic problem. >> $125 billion. that's a rich valuation. >> yes, ma'am. >> do you agree with that?

do you think it's going to, david, ignite a big boom in that area of stocks? >> absolutely. facebook with what it means in general for the tech sector, for the stock market across the board, that it's positive development. >> apple is one of your picks as well, right? >> yeah. as much as facebook is the category killer in social media, apple is the category killer in the hand held device market. they continue to lead. continue to innovate. they're the global leader. we look for more out of apple. >> i want to also pick up on what philip lebeau was saying a moment ago with regard to the 1,800 new jobs at chrysler. you have here on your list of picks ford and gm. the auto sector, an incredible rebound, whatever you want to call it, why are you backing those two? >> well, gm and ford both had troubling years last year with both of them down double digit declines last year. troubling stock market. and in terms of overall vehicle sales, but we're seeing an improvement coming into the new year the average age of the vehicle on the road reached a

record high last year of 11 years. >> uh-huh. >> as that replacement cycle expands with the product they have in the showroom, we've already seen good things out of both of these companies and their stock performance just in january, but we think the auto stocks are going to roll in 2012 adding jobs at chrysler just more evidence of the recovery in the domestic automotive industry. >> let's get back to what's happening in the media space, which is of course your expertise, larry. we just got earnings from via come, my kids are watching. domestic ad revenues slipping as well. is this a problem across the board in that space, domestic ad revenue slipping? and does it say something about the broader market? >> i'm not at all worried about domestic ad revenues, mandy. they had a ratings problem. the key to viacom is they command a demographic, which is the youth demographic, whether it's your kids or comedy central, which attracts the younger people, the advertisers at the end of the day covet. they can solve that problem with

better content and they're on that. they're very, very smart people. the market has confidence in them. they know what they're doing. and the ad market i think is going to be very, very strong. the auto business is strong. we just heard last week from ron johnson at jc penney, he's going to be advertising massively. the video game business is good. ea's advertising for "star wars," things are great. >> real quick, who is best to be leveraged the strength you see in the ad business? >> i think the strength in terms of stock prices clearly google. google is very, very underpriced. they have youtube. youtube's viewership was up 72% in the last quarter. ad dollars will follow viewership. they're adding bodies in new york to produce this video. i think they're over 1,000 in that building they've got down in chelsea. >> uh-huh. >> i think google's the big winner here. >> got it. to both of you, thank you so much for joining us today. thanks to larry and david. brian, back over to you. >> all right, mandy. we'll have jeremy siegel in a bit. we'll go back to mandy, but for

now right here, me, you, all of us together getting ready for the big game on sunday. but we're talking super bowl stocks because this is cnbc. the next chapter in our epic battle pitting new york against boston in the big arena of wall street. what city has the best performing stocks? ( [ male announcer ] to the 5:00 a.m. scholar. the two trains and a bus rider. the "i'll sleep when it's done" academic.

for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be. ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu.

nobody does it like sara lee. not lately anyway. shares of sara lee trading at new 52-week highs. the company report d better than expected earnings from continuing operations. later on this year it's splitting in two, separating europe focused coffee and tea unit and north american meat business that makes the delicious jimmy dean sausages as well as ballpark franks that plump when you cook them. the super bowl is on sunday. it's on nbc of course. but before the big game, we're looking at the super bowl of cities. boston and new york. deep-rooted rivalry when it comes to sports. when it comes to stocks, what city rocks? mary thompson at gillette stadium in foxboro, mass.

and brian is going to make the case for new york. mary, making the case for boston. mary, ladies first. >> thank you, brian. there are two ways an investor would have made money in the last 12 months. first would be betting that the patriots would make it to the super bowl, second would be betting on massachusetts stocks. take a look at the bay state index. 157 companies in it. up almost 10% over the last 12 months. easily outscoring the s&p 500. so what was the hottest stock in boston? which one had big gains in the last year? which one blew away the rest of the field? it's a biopharmaceutical company called ie dentics pharmaceutical. the stock up about 190% in the last 12 months. new york may have wall street's big paychecks, massachusetts investors get big payoffs investing in the region's thriving tech and biotech industries. take a look at other performers all up more than 80% over the last 12 months. of course boston may not be home to a ton of blue chip names, but keep in mind it shouldn't matter

to investors because the best investment you can make is usually one if you buy it when it's undervalued, buy the establishment. in the long run, it can deliver record breaking returns. now we are going to go to new jersey so brian shactman can talk about new york. brian. >> i will address that, mary. i'm going to take the fans' perspective, the retail investor's perspective because new york truly is too big to fail. i know you can make jokes about it the stocks from 2008 and 2009 that brutalized investors now doing really well. since we used the term, let's start with financials. let's start with a company like morgan stanley, the lead book runner on facebook, by the way. that stock up nearly 30% year-to-date. then you have companies like citi, jpmorgan, aig, all up double-digits, all based in new york. i'm here at giants stadium, which is really known as metlife stadium. that company up 16% year-to-date. and unlike boston, these companies are in the city, not

20 miles outside of town. but since mary's in foxboro talking about boston, i'm in new jersey talking about new york, i'll address that. the same thing here where do you end up? at ibm, just a few miles outside of town. that stock has been a monster in the last year. so when it comes to big blue being a monster, that's good for big blue. back to you. >> brian shactman, before we let you go, first off, nice field goal you kicked in "power lunch." excellent by the way. >> thank you. thank you. >> you should have played for the ravens. did i say that? >> it was an extra point, by the way. >> aren't you from boston? >> you know what we call people like that here? brian, we call them -- in boston, brian, they are called here in boston, they aren't patriots, they're traitors. that's what brian shactman is. >> benedict arnold, here's the deal, sully, i have mouths to

feed at home and a job to do. i'm a journalist, i'm an objective journalist. >> brian, is it hard for you? >> yeah, it's hard. i'm getting so much flak on twitter and facebook. i'm getting the wicked crush. >> you're getting murdered. >> it's wicked hard for him. >> don't go to glouser. >> it's hard to sit and talk about new york and new jersey. hey, brian sullivan, i have an issue with his stocks. he was talking about some stocks up the past three weeks. let's talk about long-term performance. you don't win the afc championship in one game, you've got to do it over a series of games. so i hope you consider that when you take a look at the stocks he was touting for new york. >> well, when you have joe bag donuts pharma bankrupt in two years and still own a bank stock that puts your kid through college, then we can talk about long-term. >> brian, my advice to you, mary, when you fight it out, talk about notre dame. >> who won, brian? >> notre dame football the last

two years, mary. >> who won this? >> we got to go. you need to sit down over some chowder and talk this over. >> he's going to declare a winner. >> you've got to declare a winner, brian. >> you need to pick a winner. >> pick the winners then. you guys do it. >> you pick it. >> oh, i got to do it? giants. giants are going to win. >> thank you. >> and according to my super bowl pool -- >> this is about stocks, brian. boston stocks win, patriots win. >> it's over. we win. >> i need a safety. >> i'm throwing the flag. >> it's over. declared the winner. >> they're getting fired up. >> that's it. >> all right. guys, thank you very much. wow. epic. brian shactman taking on the new york side. he's an ex-pat. both the giants and pats have each won three super bowls. so we're going to look at the market and how it's performed the day after the big game coming up on "closing bell." what's better for your money, a giants win or a pats win?

don't forget to go to cnbc's facebook page. like it and vote in our poll. which city do you think is better for business? boston or new york? we'll be updating the results throughout the day. and of course you can watch the super bowl between. the giants and the pats sunday on nbc. all right. up next the professor and mandy. they're in orlando. >> in orlando. also the wharton school's jeremy siegel will join us at this t.d. ameritrade investors conference. but first, but first, guys, bill, what is ahead on "closing bell" for us? >> coming up, the chief operatings officer of electronic arts outlines his strategy for cashing in on the fast-growing social media industry. they have a number of games on facebook, which we will ask about. plus house budget committee chairman paul ryan tells us why he thinks the federal reserve's low interest rate policy is doing more harm than good for the economy right now. we'll have him live. we'll also provide live coverage

of treasury secretary tim geithner's news conference on the state of financial reform. so much to get to. so little time. maria and i will see you

welcome back to "street signs" everybody. i'm live here at the td ameritrade here in orlando. he looks at the market as a historic buying opportunity. we're speaking none other than jeremy siegel from the university of pennsylvania. great to have you with us here today. >> great to be with you. >> what was the chief takeaway for you? what was the most important point? >> i think he's reinforcing what he said from the fomc conference. they said 2% inflation. he wasn't going to sacrifice that inflation rate. you know, that is a new goal of the federal reserve. he's prepared to stimulate the economy more. but he does know about inflation, as one of their targets. so i didn't see anything that new, just a reinforcement of what he had said. >> what's your take on the u.s. economy right now? >> i think this year is going to surprise on the upside. i think europe is improving.

i think that -- >> improving? most people feel it's going -- or some countries are already in recession. >> they kick the banking crisis down the road. and that is the main fear for u.s. investors. if that is taken off the table for the knicnext six, nine mont- >> it is kicking the can down the road. >> you know what it will be, depreciation of the euro. we'll probably see $1 per euro. >> you're saying $1 per euro. what time frame? >> oh, boy. they say pick one or the other, but not both. but i wouldn't be surprised to say a year, year and a half. don't kill me if i'm wrong, but i wouldn't be surprised. >> brian sullivan, jump in. >> mandy, where have you heard that one-to-one before? on this set perhaps. do i have time for one question? all right.

you talk about dividends. if i look at europe, it's got a higher dividend yield. >> i'm not hearing him. >> so, i'm talking to myself? like every day. >> can you hear him now? >> mandy, do you hear me? >> i can hear you, brian. >> i'm going to speak in australian, and can you translate it? >> i can't hear, sorry. >> what was the question you wanted to ask the professor? >> i just wanted to say have a good time in orlando, professor. >> he said have a good time in orlando, professor. >> sorry, didn't hear. >> what's the value risk proposition of europe? >> what's the value risk proposition of europe? >> i think the stocks are unbelievably cheap. and there's euro risk for the investor. i think those are the two things you have to balance. >> when you say there's zero risk, does that mean the dollar is going -- is this going to be the year of the dollar, a stronger economy? >> surprisingly, even maybe against the yen. >> even against the yen.

>> i think emerging market currencies are going to appreciate again versus the dollar, because they're going to recover from the softness. >> so real quick, the next question is, can we have a strong dollar, a strong economy, and a strong stock market? because so often a strong dollar provides a headwind to the stock market. >> right. but strong economy brings up the dollar and corporate profits, and interest rates at the same time. early stages of recovery, that has actually the playbook more than anything else. >> we will see. thank you very much for joining us, professor. apologies for the little technical problem there. >> yes, i'm sorry. >> that's what happens. disaster du jour. oh, no, you have another disaster du jour. >> just admit it, just when i started talking, you pulled the plug on me. >> now i hear him. >> a moment ago, we were completely black in here. it's a miracle we're here on air at all. >> america's infrastructure, helping the third world look average for years.

mandy, thank you very much. unbelievable. the other disaster du jour time. >> education management, emc, they operate a bunch of our schools, and they cut their outlook. >> all right. mandy's in the sunshine state, i'll spread a little sunshine stock here, cadence design. up 22% now over the last year. thank you very much for watching "street signs," everybody. mandy? >> absolutely. thank you, everybody, for joining us today. the "closing bell" is coming up next. and i'll be back in new york city tomorrow. see you then. (

♪

♪ you and me and the big old tree ♪ ♪ side by side, one, two, three ♪ ♪ count the birds in the big old tree ♪ ♪ la la la [ male announcer ] the inspiring story of how a shipping giant can befriend a forest may seem like the stuff of fairy tales. ♪ ♪ you and me and the big old tree side by side ♪ but if you take away the faces on the trees... take away the pixie dust. take away the singing animals, and the charming outfits. take away the sprites, and the storybook narrator... [ man ] you're left with more electric trucks. more recycled shipping materials...