into earnings tonight. >> short the euro, stay short. >> double down on weight watchers. >> kors is different, it's a different ipo. buy it. >> big interview tonight. "power lunch" begins right now. here we go. three hours to go in the trading day and investigators focused on softer economic data here and growing uncertainties around the world. we've got breaking news of delays in europe, riots in greece. nuclear tensions building clearly in iran. a tricky environment for any investor in a global world. we've got a power player from jpmorgan to get you the inside track. the name of the game is farmville. and online maker zynga reports after the bell. how they're shaking up the business model for the entire video game industry. and bikini-nomics. katie upton is in the building. trust me, we do have a business angle on this one.

>> of course we do. i'm sue herera with simon hobbs and brian shactman. "power lunch" begins right now. ♪ can't buy me love >> yes, greeting valentine's day with a little bit of red here. retail sales weaker than expected. no earnings to push stocks in either direction. here's where we stand right now. the dow down about 54 points. s&p 500 good for down .5%. same with the nasdaq. pulse of the markets, natural gas getting a pop here. would be characterized as a technical move, up 4.25%. the yield on the ten-year, the price is up but the yield is down. we are well below 2%. check out the dollar right here. the dollar index up .75%. midday movers, rackspace up big after reporting an 85% increase in fourth-quarter quarters.

hospira up. and sales better than expected, 6.5%. michael kors, 23% to the upside. q3 earnings up 47%. on the downside, disappointing q4 results from goodyear tire. masa masco down. and host hotels is down 4% on the nose, guidance missed estimates. get a little more detail on the marketplace. mr. pisani at the nyse. >> hello, brian. the euro has been weaker and the major indices are drift add little bit lower. take a look at the euro. started getting headlines coming out of you're. bottom line is this, the eurozone finance ministers are supposed to have met tomorrow. now looks like there may be a conference call. there's a lot of moving parts here. but tleer or four issues are floating around. the eu has not received the letters from the greek political leaders indicating they would support the terms of the austerity program after the election.

they want assurances. they have not gotten them from the eu. secondly, it's not clear to what extent the private sector involvement is ready to sign off. number three, they have not received any details on how to close that funding gap, that 325 million euros they're looking to save. and finally, there's greek debt sustainability analysis supposed to come out tomorrow. it's not clear to what extent that is completed. the bottom line is there's an awful lot of moving parts that's uncertain. it's not clear at all if the euro finance ministers are going to approve that bailout tomorrow. it's looking somewhat unlikely. the euro to the downside. take a look at the s&p 500. all these headlines start coming out before noon eastern time when the markets started drifting lower. the major sectors that are weak today, the ones that have been the market leaders, your material, your financials and industrials, since january 1st, there's been your leadership group, along with technology. those are the stocks, those are the sectors that are weakest

right now. back to you. >> bob, thanks very much. simon, when those headlines came out, they were very vague. now we have a little bit more detail and it sounds as though it's much more complicated than just the initial headline which was they hadn't filed paperwork. what's your take? >> i think it's very simple. i've been saying it for two days. there's a danger the market assumes that europe would continue to kick the can down the road. at best, they've now pulled greece in on a very tight leash. the danger is that they don't kick the can down the road. last wednesday they said to greece, we want two things for you -- to fill the budget gap and we want you to come through and all of you to sign up, you will continue austerity of april. from what was just said, they have got neither. it's not about an ability to get paperwork to lukxembourg. everybody has e-mail.

we need to get the psi details out tomorrow. the timetable is that the march 20 money that they need to pay their bills by -- we need to get the private sector bond swap out. we need to get that started because it takes so long to get as many people on board as they need to. >> we're going to talk more about this right now. let's turn on the "power lunch" power surge and drill down on the stories driving the day. we begin with the politics of the economy. then we'll segway into europe. president obama speaking earlier, pushing for payroll tax cuts as republicans throw in the towel. our chief washington correspondent john harwood has the very latest on a lot of moving parts in that part of the world. >> reporter: republicans, sue, decided that they'd taken quite enough of a beating on the payroll tax cut in december when democrats made a lot of headway by portraying them as blocking this tax cut. so yesterday they said that they were going to separate that from the other issues that are being negotiated. that is, an extension of

unemployment benefits, and a doc fix to reimbursements. president obama came out today at the white house and kept the pressure on republicans by saying, we simply can't avoid to mess with the momentum the economy is developing now. here's the president. >> when a plane is finally lifted up off the ground, you don't ease up on the throttle. you keep going. our plane is up there, but we're not at cruising altitude yet. after all, extending this tax cut and the unemployment insurance is the least of what we should be doing for working americans. >> reporter: and so i think it's very likely, sue, that that will be done. the house may move as early as this week. the bigger question is going to be, what is the deal that gets made by the end of the month on unemployment benefits which have taken on somewhat less urgency as the labor market improves. >> indeed. the president meeting with the man next in line to become

china's next leader. what came out of that event? >> reporter: we just had a photo op with the president. made brief remarks with chinese president xi. he referred to the military cooperation and the security cooperation on issues like iran and north korea. but he also made some indirect allusions to the complaints the united states has over chinese currency and trade policies. going to be issue if romney turns up the heat on that issue. they say the obama administration has been too easy on china. >> john, thanks very much. clearly the protection of intellectual property is a major cause of friction between china and the united states. apple the latest to feel the heat. a chinese firm stepping up its aknocks on its ipad trademark.

it comes as apple itself hires a company to investigate labor conditions at a key assembly plant in china. our tech reporter, jon fortt, has the latest on these stories. >> reporter: let's start with the trademark story. the company suing apple for up to $1.6 billion is basically a failing display maker. they say they own the ipad trademark. apple doesn't dispute that but says it actually boughts the rights to that trademark in ten countries years ago. their argument was that you bought the rights from a taiwan subsidiary that didn't have the right to sell the china rights. they're trying to block sales of ipads and imports in and out of china. proview is going out of business and needs money to pay creditors. china needs to keep this from blowing up into a situation where multinationals get more wary of manufacturing in china. now, that manufacturing is becoming a headache for apple.

it's happening in more ways than one. after a series of stories about labor abuses in the foxconn plants where apple makes iphones and ipads. apple's asked the fair labor association to independently investigate two foxconn factories. the ceo of the fair labor association doesn't believe that f foxconn is operating a sweat shop. >> it's interesting to see those report that is maybe they're looking at apple, at a tablet with a smaller screen, something that i assume steve jobs was dead against effectively. that was one of his big things, was it not? >> reporter: he was very publicly against it. the rumor is that apple is shopping around an eight-inch design. the current size is about 9.7 inches. eight inches wouldn't be that much cheaper. apple said they're not feeling a lot of pressure from the kindle fire, for instance. this could be a bit of misdirection. a lot of apple insiders don't think this eight-inch thing is

going to happen. >> jon, thank you. jon fortt in san jose. bank of america shares getting hit very hard on the back of a downgrade today by citi. b of a cut to neutral. but get this -- it's the best performer on the dow so far this year. and here's something you may not know. on any normal day, b of a makes up about 10% of trades on the nyse. so is this stock for investors or just day traders? joining us is paul miller from fbr. nice to have you here. >> thanks. >> the chart illustrates it best. the stock's had a tremendous run since the beginning of the year. but is this a stock that you think investors should put fresh money into or has it gone too far too fast? >> i think the stock got overly beaten down at the end of last year. it's going to outperform the market. but i think for long-term investors, this is still a concern with this company because of the liability side of this balance sheet. all these private label lawsuits are sitting out there. as an analyst, we don't have

insight where they're going to fall on these suits. a lot of investors say, this is going to be dragged out over years, the settlements are always a lot lower than people think it's going to be. but this is one headline from the stock going back to $5. we think for investors they have to be very cautious to understand what they're investing in bank of america. as an analyst, it's difficult for us to figure out what the liabilities are down the road. >> i'm hearing it's more of a day trader stock. what about the liability in terms of real estate, the real estate overhang that's on their books? lawsuits aside certainly, it seems as though those who are willing to bet on the stock are betting there's a housing recovery in the works right now. do you agree with that or not? >> we're definitely in a situation where the housing market is somewhat stabilized. but there's still a lot of instabilities in that market. we're not really ready to sit there and say it's all over with. i don't believe there's no more 20% down in the housing market. but i don't think we're going to get 20% up in the housing market anytime soon.

you have problems with individual borrowers getting loans. only 30% to 40% of the population would qualify for a loan today given how the market's shaped up mainly because fannie and freddie are pushing back so many bad loans to these banks. they're unwilling to give the loans. on the real estate side, there's a lot of, i think, holes in these balance sheets, especially with bank of america. so that is another concern. but, again, these guys do have the large reserves, over $40 billion out there. it's not really the credit on this side that's going to hold this stock down. it's going to be the private label lawsuits. >> paul, thanks a million. today's crunch time f you're involved in jewelry, flowers, candy or greeting cards, it is valentine's day for most businesses, a year in the making. our own sweet valentine, courtney reagan takes a look at the stocks to watch. happy valentine's day. >> you, too, simon. it's only fitting to take a look at some names that could give your portfolio a little love on this holiday.

$17.6 billion will be spent on valentine's day. that's an 8.5% increase from last year. lovers will spent $4.1 billion on jewelry. want to profit from those purchases? tiffany could be a winner. last year shares of tiffany rose 4.7% in february. lately the stock's been squeezed by rising commodity prices with shares off 3% year to date. want to profit from the $1.8 billion in flowers expected to be bought? take a look at 1-800-flowers.com. shares have been volatile in the past. but year to date, shares up 40%. trading at just over $3 a share. and who doesn't want a sweet treat? $1.5 billion could be spent on candy today. shares of hershey gained nearly 12% last february though commodity costs are being felt here, too. hershey's down 3% so far in 2012 partly because of higher cocoa prices. roses are red, violets are blue,

i have a stock for you? $1.1 billion will be shelled out on greeting cards. if you want to buy your darling some paper to pay him or her back, look at american greetings. the shares dropped 1.4% last february. they've gained 20% so far this year. simon and sue, over to you. >> thank you very much, courtney. i imagine you had to beat your way out of the front door this morning for gifts and -- >> oh, right. but my little ones did give me balloons and flowers. straight ahead on the program, the zynga effect. the company behind online mafia wars reports after the bell. they're in their own war against traditional video game publishe publishers. >> here's a look at how some of the starts is performing. electronic arts is up. but take two interactive is down 2%. ew. seriously? so gross.

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welcome back to "power lunch." rick santelli here on the floor of the cme group. well, those headlines that we've all been talking about that came out around 12:00 eastern, they did have a bit of an impact like they did on equities in the fixed income market. ten-year bund trading within a basis point and a half of each other. if you look at the euro intraday, you can really see how those headlines impacted the

marketplace with regard to greece. and if you look at the last chart, stimulus liquefication, you can see what it did to the dollar versus the dollar/yen relationship, yen high, six months. and on this valentine's day, i say, roses are red, violets are blue, if you're not sitting at the government table, you're probably on the menu. back to you. >> thank you very much, rick. we want to draw your attention to the headline at the bottom of your screen concerning yahoo! and maybe we can take a look at how the stock is performing right now because it is getting hit. as a matter of fact, this is a pretty dramatic chart. it is now down 5.5%. all things "d" says talks regarding sale with alibaba have broken off. let's talk about that and zynga which is set to post its first-quarter reports as a company after today's closing bell.

company behind "words with friends" and "farmville," up 57% since mid january. don't you wish -- simon can't believe it. don't you wish you had that in your portfolio? in part, that gain is because it made a boatload of money for facebook last year and because zynga is considered a leader in social and mobile gaming, a potentially much bigger and broader core audience than old-school gaming. let's drill down from the tech columnist and cnbc's julia boorstin and cnbc.com's net-net john carney. i'm going to start with you, julia. weigh in on the yahoo! news as well, as well as zynga. what dooing do you think about zynga and what might happen to it in light of the trend in gaming, online gaming and mobile phone gaming? >> reporter: well, sue, first off, i have to say zynga is reporting earnings after the bell today. expected to report three cents in eps on $302 million in revenue.

we know this is a strong company in terms of the fact that it's profitable. it is the leader in this space. but there are going to be some big questions at earnings today. not only how fast is zynga growing, but how much are they diversifying? zynga is in a position of strength in which they have this symbiotic relationship with facebook. i think on the earnings call today, there's going to be a lot of attention even more than just on the numbers themselves but a lot of attention on what zynga is doing to diversify its user base in terms of where the revenue comes from and diversify into new types of games. >> tom? >> well, that's actually a very good point. and they started off just on facebook. but in the last few months, especially with "words with friends," zynga's shown it's moving into the mobile space much more aggressively and have been putting out more and more games. i think you'll see increasingly

games on the mobile platforms rather than just on facebook. i think that's probably a very good move on their part. >> john, i'm reading more on yahoo! which i want to ask you about as well. weigh in quickly, if you will, on zynga and its future. and then tell me what you think about the talks reportedly breaking down for yahoo! and alibaba. >> absolutely. first, i think zynga -- tom hit on a very important metric. are they branching out beyond facebook? that's an important diversification for them to do. what are their plans to do that? i think that is going to be very important to their future. on the alibaba, if this report is accurate, i think it's a very bad news for yahoo!. they need to begin to break themselves up so they can get back to a core of their business. people thought that they were going to have a sale here. it seemed like it was moving close to being done. if this deal is breaking off, it's very bad news for yahoo!. >> reporter: i agree here.

>> we thought they were arranging the finance for this. it was full steam ahead was the assumption. >> reporter: absolutely. i think investors are really counting on yahoo! to split itself up because the value there is shaving off those asian assets. i think this would be a major disappointment for investors. the expectation was this is pretty much a done deal. >> i want to add one more thing here, that it brings a challenge to, can yahoo! get any deals done? can they sell off other things? if they're failing with this deal right here, which as you were saying it was going full steam ahead, it was in the final stages, if it can collapse here, it's going to bring on a lot of questions about, are they able to get rid of any other assets if they can't be good dealmakers on this one. >> tom, weigh in on what's happening now with yahoo!. we should tell our viewers the stock is off about 5%. it was off better than 6% at one point. now paring its losses just a little bit.

what do you think, tom? >> different topic for me. but i would say that it's another example of what's happening to some of these old portals like aol. them transforming into this new era of google and facebook and just these kinds of growing pains, it doesn't seem great to me what's going on with yahoo! right now. >> john, this was always going to be a complicated sale because there were huge tax issues and a complicated structure. is it possible that they would have broken off for a positive reason? could there be a grand plan from here or do we have to assume that it's negative and they've been unable to surmount those difficulties? >> we have to assume it's negative. if there was a good plan, we would have heard more about it, not just in this leak to all thin thin thingsd. i think it's bad news, we have to assume it wasn't an

intentional move on their part to do something more strategic. >> reporter: john, i think that yahoo! really needs this deal to work. i would be surprised if this was broken off by yahoo!. this seems like the kind of thing that yahoo! really makes needs to happen because of the value of some of its assets. at this point, it's got to get rid of these asian assets and generate cash from them. >> if they can't do it, people are going to lose confidence in the company and the management. >> investors are losing confidence right now because it's off 5%. john, julia, tom, thank you all very much. straight ahead, alkermes develop a number of drugs, especially drugs for people with chronic conditions like diabetes. the stock up more than 35% in the last year. we'll talk to their ceo about their pipeline and more. and in a few minutes, the "sports illustrated" swimsuit edition is a big business for time warner.

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all things digital reporting that talks between yahoo! and alibaba have broken off. the stock of yahoo! get geting hit quite hard. we'll continue to follow that story for you throughout the day right here on cnbc. let's check in with scott wapner and see what he's watching. >> just on the yahoo! note, quickly, we had an analyst on, colin gillis, within the last week, who said anybody who thought that that transaction was going to take place in a short period of time, now that there's the board shake-up there, new ceo, et cetera, was kidding themselves. so maybe a little bit of that is coming to fruition now. let me hit on shares of gap. that's the stock i really wanted to talk about. the stock is up today quite nicely. 2.6%. it's had a pretty good run this year. up 20%. citi upgrading the stock from buy to neutral. they say 2012 should surprise to the upside. they point out three things. lean inventory, gross margins could have more upside than that firm has modeled and the spring assortments look better as well.

the things that seem to be looking up for gap. back to you on that note. and the yahoo! story, obviously, remains pretty interesting as well. >> sure. thanks, scott. biotech is clearly on fire this year, outperforming the broader market. the s&p biotech index is up 13%. the nyse arca biotech up. alkermes seeing gains of 20% over the past year. joining us now in an exclusive interview from the bio ceo and investor conference in new york city is richard pops, the ceo of alkermes. thank you for joining us on cnbc. let's cut straight to the chase if you may. you're obviously at the cutting edge of your industry. on your third attempt, you've now managed to get the once weekly diabetes drug that you're partnering with past the fda.

>> that's right. >> why did it take you so long to get that through? what's wrong here in the united states that we're lagging europe now by six months on the approval process? >> i think as a general matter, we're not lagging europe as badly at those statistics might make it seem. but this drug, i think the fda and other regulators realize that once approved, it could affect literally millions of people. i think the standards for standards and efficacy are so high that the regulators want to be very careful these drugs are ready for show time. it's now available for patients. >> this is an investors network. we make no apologies for that. where would you suggest that investors look now within your industry? what is the cutting-edge and the cutting-edge likely to reap the greatest profits, do you think? >> well, i think just in the last few weeks -- you see it here today in new york at this

particular meeting -- fda has been approving drugs again. it's almost like the logjam has been broken to some extent. there's been some important new drugs in development for cancer and for diabetes and i think in the central nervous system as well. i think for investors, the focus is on late-stage products, companies that have drugs, not early in the laboratory but ones that are on the threshold of fda approval because once approved, these drugs have the potential to really be game-changing medicines in large patient populations for a long period of time. >> at the same time, of course, there's a lot of press attention at the moment about the availability of certain cancer drugs in an argument, concern that particularly when drugs go generic that there's not enough in the supply. how do we get over that? >> it's an interesting phenomenon. the way the system works, the innovators, companies like ours,

have patent protection for a certain number of years. but when that's gone, it's gone. prices go down and profit margins get squeezed away. most of the drug shortages we've read about in the press, that we worry about for patients, are of generic injectable drugs where much of the profit has been sweez squeezed out. >> are you suggesting to us to solve this problem in america, the patents should be longer for certain drugs in certain cases? is that what you're saying? >> well, it's entirely a self-serving argument for companies like ours who live on the forefront of innovation. but there's no doubt, longer periods of exclusivity, longer patent lives drive more innovation because there's more revenue coming from the innovative products to fund more r & d. >> have a good conference, sir. thank you for joining us. >> thank you very much. downgrades for europe, riots

over budget cuts in greece, a possibly nuclear showdown with iran. a very tough environment for global investors. the cio of jpmorgan's access portfolios is here to sort it out for us. we're back in two minutes. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online.

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welcome back to "power lunch." let's reset the market for you. a lot of money heading into treasuries. 1.# 3% on that. stronger dollar, gold down six bucks and oil down but holding above $100 a barrel. in terms of the markets, we're about 10 or 15 points better on the dow than when we started "power lunch." the vix at 20. fidelity national boosting the dividend. gap also doing well. today, an upgrade at citi. avon products up 3.25%. they missed on earnings but promised major cost-cutting and reassured the dividend is save. it's a 5% yielder. and oppenheimer is bullish on the sector. concerns about europe weighing on global markets today. should you also be worried about the middle east? our power player thinks so. let's bring in richard mattigan.

welcome back. good to see you again. >> thank you. >> we've had some headlines just this hour from mr. juncker. how much of a worry is europe to you still? >> it's funny. we've had the same debate. we're reversing a lot of the pressure points from last year. from the opening remarks, being cruel but fair, greece isn't the issue to me right now. when you look at what we're doing in terms of relative construct, psi will get resolved, greece will default. but with 352 billion in euros outstanding, i think 25% that contained within greece, another 35% of that between the troika and the ecb, and 40% residual sitting within the private sector to debate on what the psi reconciliation is, that really isn't the hot button. bigger issues for me are the

tail risk events out there that we're not paying attention to. >> an important assumption you're making is if greece goes, it will not roil the markets, the bond markets in italy and spain and to a lesser extent in portugal. that's a very big assumption to make. >> i'm backing it with the equivalent of half a billion in ltros. the market is overemphasizing what we're going to get on february 29th. likely to see another half a trillion euros done between that. that's put so much liquidity back out in the markets. >> that's a firewall. you'll have a trillion euros, you believe, to be sitting there. and that's the firewall? >> yes. you can see it in italian spreads. we've come in from peaks, 200 basis points. 100 basis points from the december ltro first launch of it. if containment isn't held, we

have much bigger issues. but the fact we've gone through rioting and burnings in greece overnight, six downgrades and we've seen france and the uk put on watch by moody's at this point, to me, it tells me markets have very much corralled and contained greece. >> the outlying problem, though, that you are paying perhaps more attention to is the tensions between the u.s. and iran, israel and iran and the middle east. >> yes. >> why? >> i think the markets, again -- >> other than the obvious. >> the obvious, how incendiary in nature that can be. but the bigger issue, we've been talking about it for the last year to year and a half. it strikes me we have a window within the next six to nine months where some action on one side or the other is going to be provoked. there's a fat tail or left tail sitting out there. the other is the compounding effect of higher gasoline prices and what energy and oil mean to a lower-growth environment.

i was going to kid you saying, there's a little bit of a deja vu environment. had we been doing this literally last year, we would have said the exact same thing. we think it's a risk-on environment. the global growth is okay. growth this year is going to be lower. oil is going to threaten that. >> what do you do from an investment standpoint, then? those external events obviously -- especially for the domestic player, perhaps, the gasoline rise. >> yes. >> how do you protect your portfolio against it? what are you telling your clients? >> my 13-year-old daughter when she was 7 got a chinese fortune cookie that said "patience is the key to joy." i think you have to be patient this year. but you have to be invested in the markets. we're making up -- if you look at what is balanced in the space goods market in the last six weeks, we have a redo or reset on all the things that drew down last year. last year was probably one of the most technically challenging markets i've ever seen. the fact that we've squared it, we're repricing where the fundamental opportunity set is. we're still focused very much on

the same things -- credit, yield, mezzanine debt, high yield, high-dividend-yielding stocks, macro hedge funds and bonds. >> if there is trouble in the middle east in the next six months, you don't believe the markets fall out of bed? >> no, i believe they do. >> you would still say to people, you have to be in the markets even though you predict that in the next six months -- >> but the product mix has to be appropriate, right? >> the brilliance to patience is balance. unlike some of the more incendiary 100% in equity markets right now? no. what we've seen, i would pause and wait for a consolidation in this point. but i think there is strong fundamental opportunity in yield right now. and credit -- we've talked about this for a year. that's still probably the single most concentrated bet. we're running underweight positions in our equity allocations right now. we're concentrated in the u.s.

favoring emerging markets. we have some equity investments in germany but we're not playing broad europe and we're sitting on a lot of cash and probably sitting in our balance portfolios on 8% to 10% in cash right now. >> that is a large position. richard, a pleasure. >> thanks. >> good to see you again. tomorrow's power player is barry basano, trd to be one of the most influential people in the financial world. up next, let's just get straight to the point. "sports illustrated" 2012 cover model, kate upton will join us in the studio. and there is a business angle but i defy you to find it. without the stuff that we make here, you wouldn't be able to walk in your house and flip on your lights. [ brad ] at ge we build turbines that power the world. they go into power plants which take some form of energy, harness it, and turn it into more efficient electricity. [ ron ] when i was a kid i wanted to work with my hands,

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five names that could be on the brink of a breakout. and china is stealing the thunder yet again.

and why boring is best. we've got the safest dividend plays to add piz zzazz to your portfolio. i'm going to hand it back to brian shactman who has a very difficult job today. over to you. >> i know, with some nerves here. the issue hits stands today. the issue makes up about 7% of the magazine's annual revenue. joining us, darren rovell, our senior swimsuit correspondent. >> what? >> i'm here. great articles. joined by the th year's cover model for 2012, kate upton. >> so this says it was shot in centraustrali australia, kate. how does this say australia? >> well, as everyone knows,

sydney is on a beach -- >> it was cold that day. it was like 45 degrees or so. >> that's not a fan. that's wind. >> tell us your story. i know that you always wanted to be -- this is no joke. you always wanted to be in "sports illustrated" swimsuit issue. >> my family are huge sports fanatics. i walked into my agency and was like, listen, i have to be in "sports illustrated." you need to make it happen. they signed me that day. and maybe an hour later, they sent me to s.i. >> there you go. it was only two years ago. >> yes. >> less than two years ago. mark, i have to ask you this. i got kate on twitter, twitter. how does that extend the models year round? before, it would be like they appear and then they're gone for a year. how does twitter, social media extend the life of the model? >> well, it's a global

following. and sports illustrated has a global twitter following. it's exploded today with the beautiful kate upton. >> 175,000 -- >> might add darren rovell to that. >> yeah. >> it's a good competition. kate, you're still extremely young. you're only 19. >> yes. >> you probably have a management team that handles things. but in a serious way, how involved are you in managing your money? >> i'm very involved. i have a great family support and, of course, my managers. but i like to be there, step by step, every part of my career. i choose the clients. >> we won't get stock picks from you. but the stock market goes up typically when an american dons the cover of "sports illustrated" swimsuit edition. >> fingers crossed. >> tell me about the internet and the dug gi. over the last year, you appeared last year in "sports

illustrated." you became a star before this. it's not like the days of old where you need this. what did that do for you, the internet? >> well, i think the modeling industry has changed where people don't want to see a model just walking down the runway or just see their face on a print ad. they want to see more. they want to see their personality and behind-the-scenes photos. and it makes it more exciting. you're more relatable. me being american and a teenager, that's what people see. like, oh, boy, she is working and then working out after. i had to go to school all day and went to the gym after. it's more a personal level. >> mark, got to ask you this. i have to say, you guys have done a tremendous job with evolving with the times. the advertising, only 54% is now print. the rest is internet and marketing. vegas actually pace you to come there, which is like if you can get vegas -- they don't need to really advertise.

how good has it been to evolve the way that it has? >> we have natural content that can go through multiple channels. when we launched the swimsuit last night, we pushed it through 12 different channels. we don't think of urss ourselv as a magazine company. we're a content company. >> just quickly, where do we see you in ten years? in some ways, this is the pinnacle for a lot of people. where are we going to see you in ten years? >> in ten years, i don't know right now. to be on the cover of "sports illustrated" was my dream. right now, i just want to enjoy this moment. >> yeah, slow down, brian! >> go to vegas and see where my career takes me. >> carl's, jr., she's in an mlb -- >> will you do your valentine's -- >> i'll do my valentine's -- will you be my valentine? >> i definitely want the

chocolate but there's a little bit of a waiting list. >> that was the best thing to say, courtney. we're going to be the highest rated show of the day now. you know that? >> i can live with that. up next, forget working on wall street. today's best and brightest, they're packing their bags and heading to silicon valley. >> we'll look at the faces of change and look at what it means for wall street's future. stay with us. ant to protect the. right. but... home security systems can be really expensive. so to save money, we actually just adopted a rescue panther. i think i'm goin-... shhh! we find that we don't need to sleep that much. there's an easier way to save. geico. fifteen minutes could save you fifteen percent or more.

the dream of making it big in silicon valley has gone viral. and thanks to an historic crop of overnight billionaires, to a large extent, it's left wall street fighting to keep its bankers and brokers from trading in their wing tips for flip-flops on the west coast. kayla tausche is looking at the faces leaving wall street for the valley. kayla? >> it's always been the lure of the big bucks on wall street that's not only been able to attract the country's top minds but to keep them there. thanks to the recent explosion of wealth in silicon valley, keeping wall street's talent on wall street has just gotten a lot more complicated.

>> i realize when i was a young kid that i had one big goal in life. and that was to get as wealthy as possible as quickly as possible. >> reporter: for tristan walker, that dream led him straight to walker. growing up on welfare in the shadow of manhattan's high-rises, wall street was his way in. but after years as a trader at lehman brothers and jpmorgan, silicon valley came calling. >> i didn't want to be the victim of bad culture. i wanted to be the creator of a great one. >> reporter: so walker headed west. he's now head of business development at foursquare, one of the valley's fastest growing social start-ups. but start-ups aren't limited to the west. >> the start-up environment is totally different than the culture on wall street. >> reporter: matt thompson took his skills and ideas east to washington. a former army officer, thompson left a cushy gig at goldman sachs in los angeles last year after his brainchild, troopswap, closed its first round of funding. >> the more i got doing my job

at goldman, i realized every morning i was going to work just for the money. >> reporter: it's no surprise that this desire to disrupt, to create a culture, to be a tech icon has also spread to the wall street farm system -- business school. >> should i be doing wall street recruiting as well because it's there, it's in front of me. >> reporter: to robert jones who will graduate from yale business school this spring, wall street seemed the sure-fire choice. so what's the first thing he wants to do with an mba from yale? join a start-up. you can see that there are not only those who change course from wall street. there are by and large a greater number of people who choose to bypass it altogether. coming up on "street signs," jane wells will look at how the icons of big business have changed. she asked the next generation, would you rather be jamie dimon or mark zuckerberg? >> fascinating. we'll look forward to that. thanks, kayla.

great story. >> times are changing. coming up, just over two hours left in the trading day. charts of the day is next. ( ♪ [ male announcer ] aggressive new styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the new c-class with over 2,000 refinements. it's amazing...inside and out. see your authorized

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are weakest in the s&p 500. the selloff today is pretty broad. our chart of the day is going to be yahoo! because as we sold you during "power lunch" and now david faber has confirmed that talks between yahoo! and alibaba have collapsed apparently. the company in terms of yahoo!'s stocks is down almost 7% on the trading session. that would be the low of the day for yahoo!. it remains to be seen whether or not the talks are permanently off, of course, or not. but it was a cash-rich deal. softbank also involved in that deal. we don't know why they broke down. >> david faber is making his way to a camera with the latest on that. and he will be on "street signs," the program that follows this in 30 seconds. >> and a lot of analysts think the cash assets in asia are worth about 20 bucks a share. >> but they have to divest those. >> they do. so many people came into the stock for the premium. and the people bailing now -- some people are still in the stock thinking -- the people bailing now are the ones who went in for the premium andy