our condolences go out to his family. we will all miss the brilliance of barton biggs terribly.

>> live from the nasdaq market site, i'm melissa lee. let's get straight to the big ceo shocker. melissa meyer heading over to yahoo!. he joins us now with the very latest. >> hey, there. this is big news. rarissa meyer. was expected to become the coo. was the person that most analysts had anticipated. obviously a huge name in the valley. an iconic figure.

kboogle images and google maps. she has touched all of that. there is a real sense that she will help try to reinvigorate yahoo!. that will be a big challenge and a big question. >> it's karen. clearly this is a trophy hire for them. was there a broader search or was it only her that was the dream candidate and it fell into her lap? >> there had been a much broader search. they did talk to her back starting in june. her name never leaked out, surprisingly, and this was somebody who was at the top of their list. the real idea more than anything else, trying to re-invigorate the company and bring talent to

the company. she can engineer herself and hopefully she will be able to reinvigorate the company and bring the technology back to yahoo!. >> one more question. do you see any chance that google will see anything that she has corporate secrets or some knowledge that should prevent her for being the ceo for some period of time until that information goes steal? >> there is a couple of issues. i understand that she has a non-solicitation agreement. she cannot solicit new hires from google where she was employed but she will be able to conduct her duties at yahoo!. there will be a debate over this. but, there is a sense on the board that this is the person

they wanted. yahoo! does have a content sharing partnership with cnbc. just a quick programming note if you will. >> and tomorrow evening, yahoo! does report earnings. will she make her first appearance as ceo on the conference call? >> i anticipate that is probably likely. she literally was calling executives to resign with the intention of starting her job on tuesday morning. it would be surprising if we didn't hear from her. >> do you know her to be a risk taker? this is a pretty huge risk for her. >> i don't know if she's a risk taker.

yahoo! struggled for so long. if she fails and nobody is expecting that she will but if she does, maybe she won't take the blame. they will say it was yahoo!. for yahoo! who else out there do you want? do you want a technology approximate person versus a media person? that has always been the big debate. >> all right. i'm curious, is there any sense that dan was instrumental or played a role at all? >> my sense is that people were part of this slate. i do believe that dan was heavily involved in the process. you know? michael wolf, former president of the mtv networks is now on the board and part of the nominating committee. he was clearly instrumental in this as were others. and there is no question that if

you are a third point investor, this is probably a success today as you know, the stock moving up and afterhours trading. >> yes, thank you so much for that. great reporting. joining us tonight. and as andrew goes to the stock moving higher. i'm curious if there is any activity that would have indicated that something was expected because of the earnings announcement tomorrow. >> i did not see anything necessarily about this at all or the earnings other than the usual suspects as far as going to the earnings and the rest of it. when you look at this you are talking about a female executive that is probably looked at as one of the top and suddenly she is available. i don't view it as a risk. i think she is taking over a company that every one of us have said we think yahoo! is a buy. somebody has got to direct this company. i don't think you need to chase this stock, either. she can't make an impact right now. it will take time for her to

transition and make them what she would like to make yahoo! in the future. >> and usually what happens is the new ceo comes in and lowers the bar. that is what we are discussing during our conference call. >> i do my stock below 16. i think it will read very well tomorrow. i think a lot of sperlatives throw l throne around. let me look around and i will be back to you in three or six months with what my vision is. >> your time line is bigger than a lot of people would have the ris tok do that. >> this is not my peek imitation. i just bought it tonight. >> i would rather be a seller of the pops. >> i am with you on that.

right? this is the turn. 2% takes the profit. >> you said that yahoo! is a buy with or without marissa. >> the point is they committed earnings to be a disaster tomorrow. i think the stock rises. >> the question is now do we care about the impact on google? is this a substantial enough hire to be worried about what happens to google because they lost her? >> she was really the location person. she was maps. this is a brilliant lady. she fits all the criteria you would want if you're yahoo!. if you're google you're licking your wounds a little bit. there might be follow up in one

way or the other about what their concerns are going forward. >> we're going to find out soon enough. they report on the 19th. >> scott nation, i want to bring you in on this. >> there is nothing fishy in the option activity today. but you did see two calls trade for every put in yahoo! today. lots of activity. i think that her announcement, this announcement about her becoming ceo, this is earnings for this cycle. it doesn't matter what they say later this week. options now will get crushed tomorrow. i don't know how this is not a great thing for yahoo!. some people have said she does not have.

they were generally. >> it didn't work out so well. we should note that at this point, marissa has tweeted about her new job. i'm incredibly excited to start my new role at yahoo! tomorrow. that didn't take long. this is awesome and great. hit it out of the park. a great product person. she does not have ceo experience or turn around experience. it will be interesting to see what she says. what her messaging is. something like an earnings call.

the first two to three that she makes will signal whether she is able to get talent floeing back into ya high school. a lot of high level talent has been flowing out. a lot of surprise. not a lot of people saw this coming. doing pretty well. one thing i will also note. in the conversations i have had with her she is very plain spoken. that will be good for her as far as her ability to articulate the message. her net worth extremely strong both inside and outside the valley. she does not have a lot of madison avenue. >> when she does articulate what yahoo! is finally what do you think that will be? in the media company or tech company? is. >> i expect her to tilt it a

little bit more towards tech company. i expect that because she is an engineer and a lot of people in her circle who i have talked to talk about product as the main product that yahoo! as. if you read the engagement numbers, those numbers have been coming down. that's a big problem if you're selling advertising, which they are. that's like your ratings really tanking. that is something that i expect her to talk about out there about yahoo!. >> quickly, from your sources is there any concern about the impact on google? >> there is a lot of question about when she went into the local lull at google, whether that was a great fit for her. she was a lot more visible

before she went into that role. i heard people buzzing. we will have to see who google names in this spot. but also for others. >> all right. thank you so much for that. john reporting for us out of california. coming up we will continue to cover this yahoo! story from every angle. our guest after this break says there may be a reason you should not get t too excited about it. and our trade of the day. someone has a healthy pick that should be on your radar. stay tuned to find out what lies behind this curtain and how you should be playing it. stay tuned. that bringing you better technology helps make you a better investor. with our revolutionary e-trade 360 dashboard you see exactly where your money is and what it's doing live. our e-trade pro platform offers powerful functionality

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>> he was commenting about the need for change last year. actually we don't have it but talking about the need to deliver change. certainly he got it tonight. receipt's get more on the story.

he is here with some analysis on the yahoo! and google sigh. certainly, marissa is well known and well versed. she is going be capable. that would be a real clue in the company and position. >> what is your take on whether or not yahoo! will likely lower

earnings estimates? maybe not tomorrow but in future quarters? do you think you would want to lower the bar and wipe the slate clean? >> that is always something that a new ceo will try to do . >> what's a fair time frame that we will give her to show us that she is actually the right ceo after so many failures in the last couple of years? >> it is 1050 days, but she is going to be lucky if she gets that.

the olympics and elections. this is the year that it cannot just be a turn around story. >> interact with the systems. yahoo! seems to be more of a higher touch platform. i think the key thing is yahoo! has competition with google in their right media and display ad technology.

>> to piggy back on that question there, you can't see google coming in off of this news right? the machine is too big to be buying this on a discount. we believe that yahoo! will pop that option up. on location areas and focusing on maps. since she left, that certainly is a school of thought that is out there. in terms of yahoo! restructuring emphasis. taking back money and buyk bag stock.

the five, six, seven, eight% line. and go from there. >> seeing how strong how highly you think of marissa, do you raise your price target? >> if she needs to come in and prove herself, ross was a little bit more of a known commodity to us. >> what is your target? >> 20 dluk. >> always great to speak with you. >> colin, we do want to squeeze in the statement from google. she has been a tireless champion of our users. she contributed to our development. we will miss her talents at

google. also shareholders of proctor and gamble. activist investor revealed that he is taking a statement of the company. largest investment ever. the stock was under valued but our next guest is calling into question how helpful it might be. great to have you with us. one quarter, two quarters, three quarters out. sales growth, eps growth. sit a mixed bag but overall it does seem negative. there is a sweet spot in the second quarter. >> we try to identify is really what happens, what type of behavior the company engages in after an activist takes over. margins go up. sales growth actually slows down. it kind of slows down.

one thing that we have made the call onododay is this is great. create a floor on the stock. >> which competitor do you favor at this point? >> it has been hurt hard over the last six months because of worries of competition this plays right into that. >> all of his holdings. look at what happened to sales and margins and stock prices. all of his holdings after his initial statement. >> at the end of the day, you run through what could happen. what do you think is a most likely scenario given his largest investment ever is a tiny speck in the total shares of company. >> this is what keeps it interesting. we lay out a bunch of scenarios

from star wars. what we basically said is there is a lot of different ways you can go about doing this but the one certainty for us is that the competition will benefit because they will be distracted no matter what happens. people are getting laid off and the competition is gaining market share. >> so we tell them about colegate. proctor trades 15 times forward earnings. maybe there is a little room for growth. >> without question. where would you turn? >> it's still like i said, interjazzer. trading at a big discount.

>> you see the pops of relief. i think specifically he is in transportation. is this all of them? >> i think in the world of consumer staples, there are three things that really matter. >> i think the distraction from all of this stuff going on. >> why do you think it is such a distraction if he does not actually have the shares to enact change? why would it be a distraction? >> they are already suffering distraction from that one. >> this to me adds another layer at the senior level. what is going on right now is more of a broad based employee problem. i think it's another layer of

distraction. >> nick, great to have you. this wednesday, tune in for all day coverage starting on squawk box. coming up neck he has made billions of dollars and he is here to break down exactly. how long it will last. ross and company is up right after this. stay tuned. w york state we built the first railway,. the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com.

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>> let's take a look at shares of yahoo! still holding on to the afterhours pop. marissa meyer will now be the company's new ceo. shares are down slightly. the cheaper natural gas. our next guest sold it last year. joining us for more.

>> the regulatory environment. are we in a different sort of downturn this time around? >> i think so. the last time around the price of cole got down $24. the epa has clearly made a decision. >> when you look at natural gas, what is the level that nat gas has to be back to so that you see competition?

the other problem is that cole is much more diluted. it laz two problems. one is a cross problem and the other is pollution. >> one more follow up on that. if you had to buy two names if nat gaz does do that, what would be your favorite coal name? >> does it have long term negative effects for the railroads or are they immune? >> some of the railroads have a very large dependency on coal for freight.

so it's really a question of who has what mixture. >> can i switch gears and ask you about your timing on the way out. >> in their case the cycle is more over ordering vessels back in the peak times of '07. right at a time of limited worldly view. >> i am curious since you are so negative on the coal industry would you short the stocks? there continues to be a drum beat of concerns in the ability of these miners to actually meet their obligations. >> i am an optimist by nature.

>> what is your next after shipping? >> shipping. >> after european banks, what is the next sector? >> i don't know. we're looking at a lot of things. we will continue to do more opportunities. >> how about in the coal space are you just as bearish as you are? >> that's a good point. it tends to be very high in margin. that is a cyclical issue of its own making. it really does. china is a big 800 pound gorilla. >> can i squeeze one more name

out of you? go. favorite nat gas. >> there you go. >> no further questions, your honor. >> you have been trying to get into this trade. >> it is frustrating. try to make a bottom and move in. if you remember the last time i was on you can no longer pick bottoms. we have not seen bounces validated. >> breaking news. what is it? >> hi. well just within the past couple of minutes, the embargo has

picked up. it is about money laundering opportunities. it is a massive laundry list of alleged violations. in here are a range of details. let me detail exactly some of the things that are listed in here. inadequate controls. also allegations of iranians financial transactions in this report. and questions of terror links. russian transactions in japanese banks and criticizing bear share accounts. may have benefitted a taliban linked entity.

we have got a statement here from hsbc. we have sometimes failed to meet the standards that regulators and customers expect. we will apologize, acknowledge the mistakes, answer for the 5:00s and give our absolute commitment to fixing what went wrong. testifying before the committee tomorrow so we will hear all of these allegations in great detail tomorrow and throughout the rest of the weekend. >> wow. sounds like the stuff of a novel. >> i think -- i don't know. in other words they just continue to come out. you can never -- it's not safe

to get back in the pool. >> there is a picture of the stock in the after hours session. don't know what the volume is here but it is dropping on this news. we continue to follow the yahoo! story and it is a website that is changing the face of real estate. the boss up after the break.

>> they missed social, media, video. they need to go back to basics and clean up the site and figure out how to initiate new products or partners so they can get into some of the sexy areas on the net. making the case for change at yahoo!. he certainly got it today. yahoo! hiring marissa meyer has its new ceo. the top names in tech can be for the 11th annual fortune. one of the most popular search sites. always great to speak with you. >> thank you for having me. >> what do you think marissa will bring to yahoo!

>> the reaction here has been a wow, holy cow. sent shock waves. to me, this is yahoo! sending a statement to investors, partners, competitors it's a media company but it is becoming a technology and software company. yahoo! did great for that. >> le's switch gears a little bit and talk about the housing market. certainly we got a lot of data points. according to the data points so far, better than expected quarters. what do you see? >> well, housing has basically bottomed. on a month over month basis.

home values are up, atlanta and detroit, home values are down. it's a very local story. actually entire neighborhoods. other neighborhoods are declining. that's where we are right now. >> in terms of how people access your site, have you seen the mobile migration? are you facing the same challenges that a lot of other internet companies are facing? >> we do not. it has been a huge beneficiary. more than half of the homes viewed are now viewed on the smart phone or mobile device and we monetize incredibly well. the only two internet companies that went public that have not broken an issue. >> and speaking of the tech ipo space, obviously where you are, that is a big focus especially

after facebook's ipo. what is the chatter there in terms of the environment? are people holding back? >> investors clearly feel burned. they feel burned by venture capitalists and investment bankers and stock exchanges. that is coming out in their perspective. we saw it this weekend. and we will see whether they push price as they did in the case of facebook or whether they are more conservative. >> it has been extremely active. there has been a lot of players primarily in the weekly options but it has been constant with activity. people playing both directions.

remains volatile. will are days when you're not seeing any news at all. >> let's hit another internet company out there. this is options action by the way. scott, what are you seeing in the options? >> this is really a play on what we have seen in the credit card companies. lots of news. they did really well today. ebay is really now papal in a lot of ways. then they took that money and they bought calls. they bought the august 43 calls. so what happens? this whole thing costs them one penny to get long. if papal or ebay is below, they also get long if it's above $43.

there is a huge range are wr there is no harm no foul. >> we get to options actions every friday. coming up next we are checking the charts to find out the core. continue t a top streak. stay tuned for the trade. [ male announcer ] the markets keep moving. make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600 when you open an account. who have used androgel 1%, there's big news.

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>> corn is still surging on prolonged drought worries. >> you can see that the market has gone up over 40%. >> seeing the supply situation

deteriorate. more speculative players joining the long positions and watching the market continue to trend on the upside. it's been a profitable trade for us. would you say that the technical back up? >> the technicals certainly support ichlt we saw good support this morning. as i se, in order to really see the trend extend to the up side we will have to get through the psychological $8 names. >> they look like they are hitting a wall. wouldn't you think that it would show some sign of doing the same? >> it's entirely possible.

he said in some cases the crop is actually burning up. we are seeing historic loss of supply. >> let's touch industrial metals, specifically aluminum. >> it is a completely different story. down to 3.9%, they mentioned three factors for that. the second was the continuing crisis in europe and the third one was a stagnant economy in the u.s. if we look at the charts, i think we have decent support in the london aluminum construct.

it will be testimony to congress. a lot of people will be watching to see if he does anything about the potential. if we get any kind of comment we could see commodities rise. >> are you looking for the difference of the first trade or is it time to think? >> i probably should take a look at the commission and make look at them. >> they will get some relief? >> exactly. if you look at the chart, that strikes straight down falling fresh multiyear lows. tonight's money in motion trade. ameal owe, you are lucky to see

it. why? >> the euro sterling cross is trending upwards much more nicely than the euro dollar pair with with range trading with progressively lower range trading. i could still stay short euro. to rule whether or not they would have an injunction. so that introduces more uncertainty for the the euro. as i said, trending down nicely. i would enter at $78.450, target $76.50. >> good to see you. money in motion every friday here on cnbc. we are just moments away, moments away from revealing your trade of the day. you will want to stay tuned to find oout what lies behind this curtain because it is just what the doctor ordered. big reveal up next.

>> we have talked about this on multiple tagss. lost somewhere in the shuffle. 52 week high. >> i will be back tomorrow. >> two trades of the day. we will be right back. stay tuned.

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