. all right. let's take a look at the market as we get ready for some of the big companies listed on the floor of the new york stock exchange. to report their earnings dow jones industrial down 60 points, 20 points off the low of the day. s&p down about 6 and nasdaq is down 9 points on the trading session. so ty, everyone is wondering how trading season will be received. a lot of companies lowered guidance and lowered the bar, so to speak. >> looks like one of the more tepid earnings seasons we've seen over the past few quarters with respect to the business cycle. alcoa kicks it off later today. klaus kleinfeld will be on to talk about that company. that will give us some sense about the materials sector.

meantime folks, thanks for watching. >> have a great afternoon. we'll see you tomorrow. "street signs" starts now. welcome to "street signs." the race to the retail bottom keeps on running. target out with a new pricing strategy may be good for customers but may be off the mark for shareholders. bizarre biotech. something happening in that space that hasn't happened for years of the story ahead. plus what a change in d.c. could be good news for keystone pipeline and our disaster of the day. boeing 787, let's get to phil with the latest. >> talking about 787 dreamliner,

japan airliner at the boston airport. boeing shares have been hammered, down 3% of the day, down 5% over the last few days. this stock has not fallen too much since october 2011. the market cap here greater than $3.1 billion. shows you how much investor headline risk is out there when it comes to boeing shares. here is part of the reason why. look at pictures in the last hour from boston. dreamliner suffered a fuel leak at boston airport. about 4,000 gallons of fuel leaking on the tarmac there. it happened on a flight scheduled to leave around noon to tokyo. remember december 5th, faa ordered all airlines to check their 787 fuel lines because japan airlines out of japan, they both reported problems. unclear if this leak due to the problem. one example of another problem in the last month when it comes

to the dreamliner. we put this time line up here because this really shows you the headline risk built into boeing right now. one reason that the investors are so worried, going back starting december 4th with the united flight in new orleans, cutr air had a similar problem, a few days later united had to ground 787, yesterday a fire in boston. the fuel leak today. the fuel leak completely separate from the fire investigation. there's headline risk when it comes to boeing and its ability to execute on the 787 dreamliner. don't forget ntsb we expect them to have an initial report regarding that fire sometime this afternoon out of boston. brian, back to you. >> okay. i'll picket up from there. those are a lot of headlines. thanks very much, phil. stick with us. i want to bring in a senior research analyst. he has an outperform rating on boeing. are you thinking of changing that rating? >> no, i think this is a tactical issue.

the boston fire issue was really related to an apu, may have been related to the prior electrical systems issues but it's not clear that it is. people are aware of the fuel leak issue. you know, i think these are teething issues, not to minimize them. i think if the ntsb felt that the post fire was a safety of flight issue, they probably would have grounded the fleet. >> what would make you change your rating? what more needs to come out? what new headline needs to come out to make you more concerned about this stock and the company? >> i would say near term i think the stock could be under some pressure. one thing you guys are not talking about, they have a labor negotiation that starts tomorrow with their engineering union. they basically have been at loggerheads. they have threatened an unfair labor practices charge.

it's threatened to get a strike authorization vote. you'll see headline risk there over the next couple of days. they will report their earnings on the 30th. we think they will be good but not clear the issue will be behind us at this point. >> phil, stocks go down when earnings go down, whether future sales fall or the possibility of canceled contracts. there are any real possibilities you've heard where people who bought a 787 but have not received the aircraft could cancel those contracts based on these concerns? >> no, i've not heard that's a possibility. i'm sorry, cai, you can answer next, but i don't think that's a possibility. >> i'm sure a lot of people will complain vigorously. i don't expect anyone to cancel those contracts. you made the point about looking out. we see $9 per share in cash flow in 2014. while these issues loom quite large today, we think in six to

nine months they will be largely forgotten. >> cai and phil, i don't know if you can see this. we have a banner of breaking news from dow jones, united airlines inspectors their fleet of 787 in the wake of this. probably standard practice. hey, let's check our aircraft to make sure the same thing doesn't happen. if you've got united checking it, these headlines, if you're an odor of 787, you've got to be having doubts. is this normal for a new aircraft? >> teething pains is normal. i made this appoint during "power lunch," remember when we had cracks in wings in a380. people saying, my goodness, i would never fly a380. those airlines are flying. same issue with boeing 787. they realized when they built this plane, given the technological advances they put in the plane they would have

problems along the way. i don't think there's any airlines there that would step back and say, these guys have had problems, i don't think we should fly the plane. bottom line is this. airlines talk to each other. they are talking to boeing constantly. these kinds of checks happen all time. most of the time we do not know about it. that's what's going on as you run an airline. it's just that this is in the news right now, which is why we're hearing about it. >> do we hear as many news headlines about airbus, phil? even if there aren't cancellations, if you're going to choose from boeing and airbus, maybe you go for the airbus, no? >> most of the airlines getting these planes placed orders years ago. they have been talking with boeing steadily since then, talking with other airlines, some of the tarairlines. some of the airlines that received the plane. if this plane wasn't making good

on the promises to the companies that put down money on the planes, then you'd see cancellations. you said no problems with airbus. i can show you plenty of clips with me standing in the very same spot saying we've got problems with airbus 380. we don't hear about it much because over time you work out the problems. >> very quickly, you anticipate a strike? >> there's no way to tell. clearly they are at loggerheads. but in labor negotiations you never can tell. >> if it looks like you would get a strike, do you immediately sell the stock? >> no, if you look at it, if you have a strike, strikes average about 45 days. the stock tends to go down in the first week. generally you want to buy in the first week of the strike. >> phil, cai, thank you for your thoughts on bogey. let's turn to the macromarkets,

the biggest of 2013. sounds impressive but only the fifth trading day of the year. dow down for the 11th time. amazingly it is higher over that period of let's get straight down to the trading floors. i would like to join my friend bob pisani. today kicks off earnings season. do you feel lowered estimates are already baked into the cake, bob? >> no, not entirely. i think, remember, the key point is the s&p hit a five-year high friday. when you're dealing with big cap stocks we're there already. we're in rarified territory. the fact we don't have any energy is surprising tome. the risk is more to the downside given how high the prices are. by the way, 15, 16 points of the 16-point decline is due to boeing. i hope you heard discussions earlier. that's certainly a factor. weak sector, two of them, put up telecom stocks. metro pcs with weak numbers.

reported that yesterday during market hours, seeing weakness here. finally all the jewelers are up. kay jewelers. we're talking about signet had good numbers on the fourth quarter and that has jewelrimakers to the upside. mandy. >> thanks very much. >> retail wars heating up. target taking direct aim at walmart. we'll bring you winners and likely losers coming up. >> biotech breakout. ceo of one of the best performing stocks over the last quarter. we also found perhaps the most expensive plate of pasta. it is jaw dropping. the cost is jaw dropping. i can't even say it. >> what's jaw dropping. >> my ability to speak today is jaw dropping. all coming up today on "street signs" ahead. ♪

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the retail price wars used to be a special holiday price happening. not anymore. target upping the anti- saying it will match online retail prices forever. shoppers celebrating. should shareholders be sulking. bring in cnbc contributor as well as cortney reagan. if i get this right, if i find anything online, amazon.com, bob's bargain bin.net, they will match the price. how can they do that? >> they aren't going to match everything. has to be legit, amazon, best buy. this is the first time a retailer has come out and said

we're going to do this all year, not just during holiday. it was only a matter of time before this happened, someone was the first mover. will the press margins if people take them up on it. >> talk about moves, who is going to follow? >> best buy had this holiday price matching program as well. anecdotally i know if you go into best buy and take in amazon's price, they will match it. they may not ties it but they will do it. home depot did it for me the other day on lowe's coupon. a lot of retailers will do it but sellers have to take the initiative and skews have to be the same. >> go in the stores, make the effort, trudge down to the mall? >> you do. >> this isn't going to be a customer everywhere getting these prices because it's a hassle. >> you have to show it to them. if you buy it, you have to bring in your receipt. i'm sure a manager has to get involved in the beginning.

>> make you work for your buck. stacy, we've got price matching wars all year-round. it's a race to the bottom. where do we go from here? free mani pedi with every purchase. >> i wish. >> jcpenney, free haircut. i think that's the issue, last year started with free shipping, then free gift wrapping. certainly now it's price matching all year long. this is a big deal. this comes from target. this is a company that typically does not compete in the promotional wars over holiday. one of the few retailers that keeps gross margin intact. >> saks, would they lower themselves to do it as well. >> i'm glad you asked that question about saks. i had an experience, wrote an article for you guys. saks in the store i bought a dress full price. i went online, it was 65% off. i tried to get them to get me the discount. they said, sorry, we're two separate entities. >> don't moan and groan, if i

was a shareholder that makes me happy. if i was a customer, that would make me sad. >> makes me not want to go there. >> guess what saks is doing on that dress you foolishly overpaid for. they are making money. >> they make money today but now tomorrow because stacy won't go back to the store. >> she will go back to saks and peel will do that because they have had that experience everywhere. you see my point. shareholders want different things. target makes me sad with this. >> they do. but then again some of the retailers that do this well, like nordstrom that integrated their online ad-in store are gaining traction, online sales, because the customer knows it. they know they are not getting ripped off. >> i would be absolutely on board with that, to know i wouldn't be ripped off. i would not go to saks in store if you know you can get it cheaper online.

>> i bought a pair of haynes briefs six years ago and i want to bring them back. you get my idea. the old retail adage, i lose on everything i sell but make it up in value. >> you have to give them something besides price. >> so operationally lean that your margins remain the same. can target do that. >> i don't know. i think their costs are pretty well contained. certainly they have looked at this before they decided to offer this promotion all the time no matter what. there has to be some financial accounting involved. stacy would be more of an expert on that tha me. >> also, not everyone is going to take them up on it. you have to stand in line. have you to prove it. as courtney was saying before, it has to be a like for like product. you're not going to find that in every case at target. >> bring it back, like, dislike, where is it going on the back of this? >> i like it. just a matter of time before somebody makes the move and target is doing it first.

they are saying to our consumer, we're doing our best for you. on top of that, they have a 5% rewards card, take out a credit card, an extra 5%. they are saying to the consumer we want your business, your market share. >> quickly, any numbers on sears, numbers don't look so great, sears, target diving in, ceo stepping down for namie health reasons. the guy that created sears, took the buyout, the new ceo. >> first of all, i think he's been very much in charge behind the scenes no matter what the title is. their comps continue to come down, apparel and appliances slightly better. this is a company selling off good profitable assets to keep it's cash flow there. the base business is free cash flow negative. >> at some point you run out of good assets to sell. >> you run out of band-aids. >> not that many good assets. >> for your costs to continue to be down quarter after quarter.

yeah, i think they have a problem, the competition, whether it's walmart. they have been picking up from jcpenney. what if they get their act together, go back to discounting full time, which i think they will. watch out for comps. >> thank you so much, ladies. we're going to leave it there. next time you're all going to wear blue, at least put me on the memo. come on. still ahead we are monitoring a very fiery speech being given right now by new jersey chris christie. his state of the state address on hurricane sandy's effect on his state's economy. >> biotech breakouts. we'll hear from the ceo, one of the best performing biotechs over the past three months. and why this woman, fair lady katherine webb, aka miss alabama, sparked a disaster du jour. >> doesn't get much better than that, folks. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong.

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welcome back to "street signs," i'm in washington where we have breaking news from the irs. the tax agency announcing it will begin accepting individual tax returns on january 30th this year for the 2012 tax year.

that's about eight days later than typical. that's because the delays over fiscal cliff legislation caused formatting changes for irs. they had to change a lot of electronic forms and documents they used to back up the tax year. the irs saying amt, among other big changes from last year that's going to necessitate a delay this year, they are saying most taxpayers will begin filing on january 30th. some folks, including those who collect energy credits and other things will have to wait longer than that for more detailed forms to be filled out. mandy and brian, back to you guys. >> all right, ahman, thank you very much. biotech has been like buster poindexter, hot, hot, hot. it's up 32% over the past year and many names doing better. in fact, we dug these out for you. here are the three hottest biotech stocks over the past 13 weeks, aka, quarter. questcor, hard to treat

autoimmune, their drug sells for $28 a vile even though it was developed in the 1950s by a former meat packing company in chicago. dendreon, hot and cold stock over the last 20 years. number three stock, biomarin up 25% in the last weeks. >> what's driving the success. j.j., great to have you with us on "street signs" again. what's the most exciting thing in your investor pipeline investors should be getting excited about. >> a broad pipeline, five products in the clinic, large for a company our size of the most exciting thing is related to our product, our third enzyme replacement product. it has the potential of doubling the revenues of the company and bringing it to about a billion dollars of revenues in the future. >> when would you expect fda

approval of that? >> so we are on track to file for approval with the fda by the end of this quarter. with the european authorities by the end of april. so it's likely the product we'll have review, a good chance to get approval this year. >> questcor got negative publicity, $28 a vile, "new york times" story recently. at what point did the price of drugs become unsustainably high? i know your drugs are specialized and cost a lot to make. is there an endpoint on pricing? >> i think obviously, you know, health care pricing is not unlimited. however, i would say if you continue to develop products that are either first in class or best in class, make a huge improvement in the quality of life of the patients or save the

life of the patients, i think there is still room for significant pricing. as you mentioned, most of the products we sell and develop are biological production, extremely expensive to manufacture. that's why you cannot charge a very low price for the drugs anyway. i would say -- >> at what point, i understand treating rare disease is extraordinarily important but at what point does profitability become a major focal point of your business plan, j.j. >> see, i think that's a great question. the company eventually will be profitable. we are spending a very significant amount of resources in research and development. we gave recent guidance 2013 for research and development expenses, $340 and $370 million. if we just cut those expenses in half, we would be very profitable today. i don't think that would be good for the patients. i don't think that would be good for investors. most of the drugs we're developing are addressing

indications, disease that have no therapy today. we are the only company creating hope for these patients. >> real quick, when do you think you'll become profitable? do you have an estimate on that? >> it's difficult to say. the variables, depends how quickly our next product will begin selling. revenues in 2014. also depends what happens to our pipeline. if all of our five products in the clinic continue to move forward, it will delay profitability somewhat. so it's tough to predict exactly when. but we should reach $1 billion plus in revenues. when we get to that level, we will be profitable. >> okay, j.j. thank you for joining us. gnlg beiname of biomarin. a girl's best friend is also a shareholder's best friend. we'll tell you why next. jgnlg b a girl's best friend is also

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street talk hitting five stocks of the day. let's get to signet jewelers, which is really soaring today. >> strong holiday sales at jewelry stores. business remains good as we head toward valentine's day, a lot of investor concern about a slumping consumer. shares down epps 24 below current consensus, buying bad in china. sniffing around yum's chicken, making kerpg comments, same-store sales dropped. >> particularly concerning because china was the big growth market. >> another one we're watching, shares are tanking. >> makes stuff for other companies, plexus, weaker demand

for manufacturing. network, communications bess. this stock down 31% over the last 12 years. >> the big winner. >> there is no i in team but there is a me. remember that. fiscal profit rose, revenue particularly in the inspection business. opposite in the past 14 years. >> we decided to throw in all allergan. >> it's hard to look at the camera, me, and think of nothing else but beauty but it's a company that makes botox and other enhancements, he ear enhancements. >> it is a -- >> it is certainly a vanity trade and it's at an all-time high. >> sad, sociokind of commentary.

>> we need more -- >> we need more botox. bring on the botox. following a story in an interview with respect l. the financial regulatory authority says it will look into regulating the dark pools as they are called. bob pisani, tell us more about that. >> reporter: fin ra regulators, what they have to say is important. trades done away from inform yc or nasdaq. not generally available to the public. most of the trading is large trades done by financial institutions. not all but generally. why would people use these pools? they are done for purposes of anonymity. the size not revealed until the trade is completed. traders are afraid if they post their large orders in a public venue, others can trade ahead of them, that's why they use dark pools. the other side they aren't

exposed to public market, denies possibility of public movement and interactive with them. 25% of all the volume is transacted in the dark pools. said he would be picking up monitoring of high-frequency traders. that's not easy. trying to put together an auto trail that will track all orders on stocks and options markets but that might not be available for several years. mandy, brian, this is happening because of the way the market is structured. big institutional traders don't want people to see orders, big orders out there, and trade around them and pick them off in a sense. it's a problem. >> bob, is it going to matter? is it going to help the frob? >> it's a good idea for find ra to look into dark pools and what's going on in dark pools. generally we want everyone to see orders everywhere, whole world to interact, price improvement, either way on buy and sell. you want public involved in those orders. people are shying away from that

because of the the way market is ordered. they want people picked off. that's a problem. we need to address the way the market is structured. >> nearly 50% move around in these dark pools, need a little more scrutiny. bob, thank you for explaining that to us. more to come on that story. happening right now, new jersey governor chris christie giving the state of the state address. bertha coombs, i know you've been monitoring this. what are the headlines so far? >> once again, chris christie is really giving it to washington, expressing his disappointment. he starts out on a very magnanimous note thanking everyone from first responders, everyone in new jersey saying legislators in new jersey all came together putting partisanship aside, because he said that sandy is and should not be something political. something he says is not the case in washington. listen to what he had to say. >> we have our congressional

delegation here and i thank them for being here. we look forward to what we hope will be quick congressional action on a full sandy aid bill, now, not next week. >> that bill expected to be voted on on the 15th. he also said new jersey will never forget, never stand silent while their citizens are, in his words, being shortchanged. brian. >> that's my governor, bertha, i like to hear it. thank you very much. appreciate it. still ahead, cutting the chord, why you might catch a break when others just say no to cable. >> the web is all atwitter about one big -- that came out last night. >> what's that? >> came out of the championship last night. here is the hint. it's got nothing to do with the fighting irish. a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along,

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season. as he always does, he will break it down. not a stock, a dude. first, here is the setup. last night's bcs game was such a bore, the cameras kept focusing on the quarterback's girlfriend, katherine webb, miss alabama, aka her. darnell docketts took to twitter posting@katherineweb, you going to the king of diamonds after the game. by the way, king of diamonds is a strip club or so i'm told. dockett tweeted his full phone number out and asked her for some buffalo wings. there's his number. he sent his real number out not a bunch of xs because that would be dumber. he realized he wasn't sending her direct messengers.

sent this bleep. >> probably more than three. >> a, learn to tweet. b, don't ask out someone's girlfriend. c, learn to tweet before you ask out someone's girlfriend. >> i think that's an excellent lesson. here we are teaching moral lessons on "street signs." completely changing topics, a new study shows all developments with the oil fields in northern canada are increasing the levels of cancer causing compounds in surrounding lakes. also a very big impact on plans for keystone xl pipeline, which would bring alberta oil sands down through canada and america and out the gulf of mexico. brian. >> plans could be moving forward for keystone xl pipeline. let's get to sharon epperson. >> there have been reports as soon as march or april the white house could approve the keystone pipeline. of course it still has to go

through state department approval. what they are really talking about today in terms of pipe laying activity is the paper line that's going to take crude from cushing, oklahoma to the gulf coast. that's expected to get its flow rates back up and started. that would be up to 400,000 a day of crude oil. that is something traders are talking about because this is bringing in perhaps the spread we've seen between brent and wti crude futures. it's come in considerably since september. this pipeline has been much talked about. there's a par let route as well under construction and completed by 2014. all of this could help to narrow big divergence between them. we're looking at the level now, right around $18. it has been well over $20, coming down a lot in the last couple of weeks. back to you. >> sharon, thank you very much. as we mentioned keystone,

mentioned seaway, what is the state of energy for the full year. bring in jack gerard ceo of american petroleum institute. sharon is with us as well. jack, you've got a big story with keystone, increasing natural gas and oil production especially in north dakota. what is your outlook for oil and gas this year, sir. >> we completed our american energy report we just released an hour ago, in fact. what we're showing here in the united states is a game changing opportunity. i just returned from the middle east. the topic of conversation around the world, europe, asia, middle east and elsewhere is what is the united states going to do about their energy poll sichlt our potential here is a game changing proportion, be it natural gas, oil, the formation in north dakota or keystone xl pipeline bringing more from canada. we believe the state of energy is very positive.

the real question will be will regulators or policymakers intervene to stymy that potential. we really have the chance to move epicenter of oil and gas right here in the united states and we're hopeful that will happen over the next few years and decade. >> the administer lisa jackson quit due to obama support of the keystone pipeline. now that she is out, how likely do you think it is it will get the final green light. >> we're very hopeful the president does what he promised the american people, that is improve oil and gas production, including importation of fuels we'll need to fuel our economy. we think keystone xl pipeline is one of the first major tests for the president to see if he lives up to his commitment to the public, so truly have an above energy strategy. it's one thing to focus on renewables, all of which is good, energy efficiency, all very important. but oil and natural gas played a role in energy policy today and

will continue to be our foundation energy for many years to come. so keystone will be key. we're going to reserve judgment though we continue to encourage the president to do the right thing. as prime minister harper said, this is a no-brainer. it should have been first time. we hope it gets it right this time. >> what are the sticking points. what needs to become unstuck to get this through. >> we need state department approval and that's a key hurdle that has to go through before this is approved. there are many analysts that feel this will eventually happen. again, we have to see one thing approved before it's actually going to happen. >> well, okay. so we got that down. jack, i want to switch gears if we can. start to switch the conversation up. i was hosting a radio show last night, got a good question, i didn't know how to answer it. said, if we become an exporter of petroleum in the united states, what is that going to mean for the united states economically and otherwise?

i don't know how to answer it. i'm presuming you do. >> it has two dimensions to it, both significant to the united states. what we're looking at today is a once in a lifetime opportunity. if we're able to produce our own oil and natural gas right here in the united states and become self-sufficient, the revenues to government are estimated to exceed a trillion dollars. because government gets a big benefit from bonus payments, royalty, et cetera when we produce oil and gas here. second is, it's estimated we create 1.4 million jobs. when we look at the domestic impact, it's a huge deal, game changer. in a piece we shouldn't forget, i alluded to earlier. the geopolitical shift. when you think about the dynamic in the middle east and unrest taking place, look at the relationship between russia and europe and natural gas, look at china's demand from a consumer perspective and manufacturing, we lost the number one role as

the key manufacturer last year. we could regain that, become the key epicenter of oil and gas production. the international energy agency suggests we could surpass saudi arabia by 2020. >> one of the things that traders, though, are talking about is the fact the contract seen as more of a global benchmark and has been has been getting more interest and seeing more trading activity even than the wti, u.s. futures contract. while we're seeing all this production, while we're seemingly seeing a market share shift in terms of where the trading is happening, do you think that's going to again change back so the u.s. oil contract becomes the dominant contract that is traded? >> well, i think it's too early to predict. but clearly what we're doing in the states with our significant uptick in production will impact that. i wouldn't dare speculate as to when will it happen, but i think

clearly it is having a global impact. i think some people are hedging their bets or holding back and saying, well, is the u.s. going to do this. we have 85% of our outer continental shelf off limits. if the president were to make a big announcement and say, you know what, i'm going to get serious about this, start bringing outer continental shelf, on shore production on federal lands and get that back up to where it's historically been, i think you're going to see a lot of global impact here that people haven't yet totally absorbed and figured out what will happen. >> jack, real quick, if we become the epicenter, as you put it, in terms of the energy world, what would be the impact for the man who fills up at the pump? what would be an impact on prices? >> we think it would be positive. for example, natural gas production today, each consumer saves about $1,000 a year due to lower cost of natural gas in

heating bills, home electricity bills. it's estimated that number will double to $2,000 per household over the next three or four years if we can continue to produce natural gas. >> makes up for the 2% tax hike, which is why the u.s. economy is not going down the drain. >> i won't comment on that. >> no problem i just did. >> we appreciate that. >> thanks. not just the man who fills up at the pump but the lady as well. >> except in new jersey where full service is the law. >> absolutely. >> do not turn the channel because coming up we're going to talk about not turning the channel because you cut the cord on cable tv and the consumer electronics show in vegas. >> gadget geeks out there. what we found. what may be the priciest plate of pasta. this delicious dish.

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thousands of new tvs are on display at the consumer electronics show in las vegas. they all connect to the internet, but the big concern for the cable industry, what if

they only connect to the internet and not to cable? julia boorstin joining us now with more. julia? >> reporter: well, brian, most of these giant tvs here at cs are designed to allow you to watch video without having to pay for your cable bill. that has media giants worried about cord never, that's a group of people, perhaps youngsters, who never pay for cable or satellite tv. the biggest threat is here on the show floor, a startup called aereo which is launching its low-cost app to 22 u.s. cities this year. it will reach nearly 100 million people. its ceo says the service, which has drawn lawsuits from the media giants, is designed for core nevers. >> $12 a month which is fantastic for getting hd quality. anyone under the age of 30 is not calling for a cable

subscription. data creates a complete new ecosystem. >> reporter: aereo isn't the only service. google is making it easier to watch content on flat screen. it is hard to measure core nevers but the percentage of households paying for traditional television declined by two points over the past three years, projecting that the percentage of households relying on the internet for tv will more than double by 2016. the growth of cord nevers depends on a couple of things, depends on alternatives and what the cable and satellite tv providers offer to make their monthly bill worth wile. for more on the digital content wars being waged here at ces, find it on my blog, mediamoney.cnbc.com. >> we'll get into it. let's bring in brian stout, a "new york times" media reporter. brian, brian number two, thank you very much for joining us

today. so in terms of how the cable companies will be feeling about all of this, should they be quaking in their boots, or will it motivate them, a little bit of a stick and a carrot to get them out there and innovate more? >> good that they are quaking in their boots. i don't see evidence that people are actually cutting the cord but some people want to because, after all, they hate the cable company and any motivation the cable companies have to innovate is a good thing. right now they have a lot of innovation out there. >> what kind of motivation are we talking about here? >> time warner's cable ces said they will make it easier on roqueu to stream channels through roqueu, all that sort of stuffer, getting the tv settop box out of the way is a good thing, i think. >> like 30-minute pizzas and air travel, a la cart tv is a dream that will never happen. >> i do, too. a lot of attempts right now to get it happening. i don't see it though. big content providers like the preparer of this network are signing ten-year deals so it's going to continue. >> not possible to say there's

winners or losers at this stage or can we extrapolate, brian? >> we can look at big companies like disney who did a big deal wi with netflix saying they will provide content through big exclusive deals. we're addicted to cable as a nation. >> brian, because we're addicted to two things, sports and news. those things alone, can't they save cable? tell me yes, please. >> i think they can. >> say yes. >> sports fees continue to go up. that keeps the ecosystem very lucrative for these companies. >> and news way more important than sport, right, brian? thank so much, brian. coming up, 2,000 clams for a bowl of seafood pasta. feet your eyes on this pricey plate. [ man ] i've been out there most of my life.

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we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. indeed things that make you go hmm is a thing that makes us goes yum. you're looking at the priciest plate of pasta we have ever seen. it is being served up at new york's, how do you say it? >> bichay restaurant. we're joined by executive chef. what does it he