it only makes sense that adjustments have to be made, now that we're living longer or fiscally, this will never make sense and it doesn't add up. we know that. naturally, people are afraid of change of any sort. and these entitlements are sacred cows for so many. but knowing that these programs have barely been changed since their inception while the demographics have changed should bring common sense into the fray. let's see if anybody is listening. before we go, take a look at the day on wall street. the do industrials tonight up 85 points, two-thirds of 1% at 13,596. nasdaq up 18 points and the s&p 500 up eight points. that will do it for us on "the closing bell" tonight. thank you for being with me. have a great night. i'll see you tomorrow. stay with cnbc, because "fast

money" begins right now. . live from the nasdaq market site in new york city's times square, i'm melissa lee. intel giving up its gains. what's at stake for this chip maker? boeing shares rebound as new details surface regarding the 787 dreamliner battery problems. and will smartphone deals derail verizon. we have a street fight. first, let's get to the stop story, and that's the s&p 500 reaching five-year highs. will this rally hold? let's find out. who is a buyer and who is a seller? b.k., what do you say? >> i came in long today. i stayed long. i don't think there's any reason to be terribly concerned but you need to buy puts. i will absolutely say that. we are at five-year high lgs here. volatility is that low. you have to protect yourself. what's going on at least from where i sit, my perch, you have to think that every central banker in the world is looking at ben bernanke with envy.

they are going to start to devalue their currency and that is making equities catch a bit in every part of the world. i think that still continues. doesn't work forever but it will work for awhile. >> here's the bullish case. half of the s&p 500 is up 4% in 2013 alone. the transporments are at a 52-week high. russells, mid caps, all-time high in today's session, tim. >> so, you get into this doubt, really on the edge of their seat because we're almost going to break out here on the dow, which is the quince dent breakout for the transportation and the dow. but i look at the housing sector, what brian's talking about, the yen's weakness against the dollar indicates it's risk on. i look at treasuries that have found this range where the real range on the ten year is 180 to 2 and that's where we need to press. but we press higher. fundamentally, when up get the structural stuff, it's a very good back droup. the s&p earnings have been very good. 75% beat. and i think the housing sector is being supported by the

banking sector. i know that seems opposite, but i think therefore we have the leadership in this market that can take us start ofarther. everybody needs the industrial strength to get materials going. >> i saw a lot of money flowing out of bonds just a day ago. we cited a really large tlt trade. tlt is the barclays etf on bonds. not a levered one. that's just straight. so, people were buying puts like crazy. 55,000 puts at the 120 strike in that index. it traded down hard, about a percent and a half over the last day. those puts made somebody an awful lot of money because that's 5.5 million share equivalent in that etf. and if you want to play, to beeks point, if you already have a portfolio, it is smart to buy insurance with the puts. i don't have a portfolio right now, i'm still mainly in cash but when i participate, i get in there and buy the same calls that really smart money is buying. in the spider today, they were

buying two 35,000 lots of the 150s that expire next week. you could do that for 16 cents. they went to 35 cents today. so, you had a double like that. you can't get those kinds of returns anywhere else, folks. and yet, you've got your money safe, in cash, or wherever you want it, you either have to have puts like beeks said, or, you trade with the options. >> what will make you get out of cash? what are you waiting for? >> well, through this earnings cycle, in particular, apple and the big earnings we have on deck next week. that's what i'd like to see. >> hi. >> hi. >> how are you doing, mel? thursday night, hockey this weekend. so -- >> get it done. >> we'll continue to beat the same drum we've beaten for the last month or so. and i think the s&p is headed somewhere between, again, 1525 and 1565. i think that will coincide with the ten-year yield going either side of 2% and the vix trading around 12. in my opinion, that will be the top of the s&p and the bottom for those other two things and i think everything is going to

flip. it's going to happen in the next few weeks. the market's had every reason to sell off over the last couple of days. technically, just tired, all different excuses. and it continues to push higher. names we talk about continue to work. just take a look at one name now that we flagged since they did that four for one reverse split. look at what thc has done, specifically over the last few months, and very specifically, what it's done today. specific names still work. the markets still want to go higher. but don't get caught up in that, when it gets up to that 1550 level, i think that's going to be it. >> let's talk about the housing number. it was up 2%. the number we got today, housing starts, the highest since june of '08. in terms of the space, in terms of materials, tim, what do you like? do you believe in this rally? >> i do. i don't believe it through the home build earls because i think the valuations are absurd. you look at the home depot chart, that was scary a month ago and now breaking out to new highs at valuations that aren't

easy on the eyes. i like to go with the materials. i like cement. i like materials. i like even the miners and i think we're going to talk later in the show about what happened in rio, but a big change in the senior management, but the end of the day, yes, there is an opportunity to buy materials where i think spot prices are going higher. >> beeks, you went into a street fight with the chairwoman. >> i did. >> which you came away bruised from, but you said short xly, home build earls, of course, housing part of discretionary. >> still bloody, if i remember. >> would you say that sector is a no go? >> for me, it's a no go. it's certainly going to trade up with the market and it looks like the chairwoman was right once again. but in this case, i would still be careful with this sector. i look at charts of starbucks. that chart doesn't look that great to me. i look at other names in there, again, home depot, i like it, but it's up so much that i just can't really get behind it that much. so, you know, i guess as long as things keep going, as long as

the music is still playing, you can still dance to this song. >> i don't like lowe's and home depot anymore short-term right here. but what i do like, still, is wire houser, you take a look at that one. another 52-week high today for wy. you take a look at deltic, a timber company. whether you want to go with forest products, which i think everybody on the east coast knows that all the rebuilding that's going to pull demand for that, i think those are plays that will continue to play out well into this quarter. >> all right, let's move on here and talk about boeing. big we bound in the shares on hopes that the trouble with their dreamliner is just a battery issue. our own tim seymour was ahead of the curve yesterday. take a listen. >> that's right. it's really a good place to actually get involved in the stock. this is a battery issue. they will figure it out. i'm not making light of air safety, but this will not drive people away from buying boeing planes. the cycle and the backlog is very good. >> you were a reluctant bull on

this, but you were a bull -- >> i was being pushed. but ghon sense here said that, the faa, if anything, may have acted a little soon here. if you talk about the overall move in the boeing stock, you know, gone through two weeks of very difficult news flow and the stock is down 3%, today, it's back up. if you were looking at your risk-reward, it didn't tell me to jump out their window. so, 15 times earnings, going into earnings at the end of the month, this is a cash flow generation and an order book visibility story that people feel good about. >> let's bring in yayir. the headline that moved the stock and the market is that it wasn't a design issue, simply a battery issue. yet we heard from the japanese supplier of the battery that to find the problem and fix the problem could take months and then we have the overhang of the

possible responsibility of compensating the carriers that v have their planes grounded because of this faa directive. in your view, is the worst, in fact, behind the stock here? >> i think so. first of all, legally, bowing is not required to make the airlines whole for the lost revenue. they do try to help them out. but all their legally obliged to do is fix these airplanes. and i think we're well on our way to doing that. i think the big weight on investors was the fear that the 787 was perhaps improperly designed and that figuring out a solution to the battery problem would require months of redesign and retesting. i think we're gro more convinced the issue is specific to a manufacturing problem with a single batch of batteries and if that's the case, they can switch out the batteries, find a better regime for testing ones in the future and i think we can get this problem behind us in a matter of days. >> so, you seem pretty confident in your assessment. have we seen the worst case scenario for boeing?

>> look, i think worst case scenario with respect to this, yes. and i do think that investors will come away from this, i think giving boeing a little bit more credit next time for having engineered the plane properly, tested it properly and maybe next time a small issue comes up, people will be willing to give them the benefit of the doubt that it is something that's minor and can be gotten over. not a coincidence that the plane has thrown over 1.3 million hours without a serious incident until the one we had the other day. it suggests we really do have a localized quantifiable problem that can be overcome relatively quickly. >> it's brian kelly, so, where else in the world where they get these new orders from, i know that the cycle is, we all know that the airline cycle is at a low and we need a lot of new airlines. where else is the growth going to come from, once we get past this issue? >> so, i think one of the areas could come from is boeing's new aircraft.

there's a good chance here that within the next year, boeing is going to announce two newer craft. a stretch of the 787 and an update to the 777. when those come on board, you're going to find a lot of airlines waiting for these aircraft to step up. the other thing to remember is, with fuel komss, where they are today, there's a huge incentive for airlines to take planes that are maybe not ready to retire yet and just park them or part them out and swap them out for new fuel efficient planes. and that, i think, is going to keep the production lines huchling at least for the next three, four years, even if orders begin to lighten up at some point. >> is there a possibility that boeing could switch battery suppliers away from this japanese supplier and maybe to their french supplier that is helping out airbus? >> i think there's a low probability of that. you have to redo a lot of the testing and design. it's not something that boeing would like to get into. their preferred method would be

to retest the manufacturing procedures that are currently in place, improve them and move on. i think a redesign is not something that anybody wants to see. >> and in your estimation, to the best of your knowledge, how soon will this directive will be lifted? when can we see a 787 back in the sky? >> by this time next week, 787s will be back up and flying around the world. >> all right, this time next week. yayir, thank you for joining us. >> thank you. >> the stock actually acted remarkably well even throughout this whole ordeal. you would think that this is the kind of thing that would make it plunge to new lows and yet it did not. >> and i admire timmy's -- >> chutzpah. >> chutzpah. that's where i was going. laughing at air safety. i would never do something -- >> who is doing that? that's a very -- >> what we talk about -- >> indictment. >> rockwell collins, col, we said, buy the dip if it presents itself, which it did, had a nice day today. they report tomorrow.

precision cast parts. and the defense sector that we talked about months prior as everybody was worried that this fiscal cliff, which we are currently through would -- >> we have the debt ceiling. >> we'll talk about that later. look at lockheed martin today. there are those plays, as well. >> this is going to be a choppy couple of weeks. i don't think it's going to run away here, but it's very defensive. another name to look at, though, embraer, this is brazil's boeing, and these guys are getting very, very busy in the defense space in brazil, in late tip america. they are trying for contracts here, at 12 times next year's earnings, this is a very cheap stock. one of the best companies in the world. take a look at that. >> we are seeing a decline by about 4% in the afterhours session after its earnings report. jon fortt is on the conference call which just got under way. let's get the details from him. jon? >> yeah, melissa. they are talking right now about their process leadership, how they're able to make ships more

efficiently than others. but taking a look at the numbers they reported, actually a little bit light on revenue. eps was better than expected. but they also got a tax benefit, the tax rate was 23% versus the expected 27%. and then their guidance, they guided to a midpoint, intel, of $12.7 billion when the street was looking for $12.9 billion. the pc client group, one of the groups i pointed to as being important in advance of the earnings, that was down 6% year of year revenue wise to $8.5 billion. it was $8.6 billion a quarter ago. but you know, there's some other things that are questions. mainly, of course, what intel's plan is for mobility. they talked about design wins but we really haven't seen them take on folks like qualcomm in a meaningful way yet. they need to do that, part of doing that will be getting lte built into their chip solution, so, that's going to be one of the questions analysts will have. gross margins holding up

relatively well at 58%, which is down from a year ago, but they are guiding to 60% gross margin for fiscal 2013. >> jon, thank you. he will fill us in with that conference call. dr. j, you are been looking at these, first of all, the earnings came out early. we don't know why and maria asked the cfo stacy smith why, because typically he says they come out one to two minutes after the close, they did not today, obviously. he didn't really have an answer. so, that's sort of a question mark that might get asked about on the call. in terms of the stock move lower today, what do you think is behind that? >> the initial reaction was very positive. and the stock carried through 23, went to 23.16 -- >> this is before the close. >> before the close. and after the close, as people were saying, the number is real, and it's really good, but the issue that jon fortt brought up and kudos to you for citing it, was that tax issue. if a lot of the game really came because the tax rate was 23

versus 27 or 28 they were expecting, and that's why the number was able to beat by 3 cents, that's not so much a long-term concern but it's not as robust a beat as you might otherwise think. >> we'll see as the conference call goes on but you could have that kitchen sink effect here, where we know the cycle has turned down and if intel talks about their mobile strategy and analysts get excited about it, then you could see that this, you know, the stock's up quite a bit from a couple of months ago anticipating a better quarter. you could see this being the bottom. >> coming up next, which etf to place your belts on for this earnings season. plus countdown to verizon's earnings. soft or smartphone deals could hurt the bottom line? we have a street fight. and why the bums may run out of steam. what's raising eyebrows for one leading market watcher. back right after this.

what a week ahead. the dell yumg of earnings reports continues next week with google, apple and microsoft all set to report. we'll get results in the restaurant space from mcdonald's and starbucks and there's a bit of retail there in the mix with coach on deck, so, what are some of the plays that can help you capitalize on this ramp up in earnings season? let's find out with matt hogan. matt, great to see you. >> glad to be here. >> we've gotten through a lot of the financial earnings. we do have morgan stanley tomorrow and you're saying the flow continues into the xlf? >> we're seeing huge inflows. more than a billion dollars has come into that etf this year. one of the top grossing etfs of the year. i think investors are playing the strong notes from people like goldman sachs.

people see a generally positive environment for those stocks. i think lmomentum continues there. >> you are seeing flows into materials and technology, but a flo flow out of staples and health care, correct? >> it's clear as day. for etf investors, all risk on and out of risk off. we've seen a billion dollars flow out of telecom, utilities and a couple billion dollars flow into the risk on sectors like materials, industrials and tech. that's where investors are placing their bets for this earnings season. at least etf investors and so far it's paid off. >> matt, it's tim. how about the etfs that correspond to treasury movements last year, this was a trade that everybody got on, because everybody assumed rates had to go higher eventually. where are people lining up in this? this ite >> we should look very closely as what investors are doing in the bond space. i think they are taking a hands off approach. they are certainly shortening their duration and they are actually outsourcing their active management into funds

like bond. we are seeing those active strategies. a lot of investors are throwing up their hands, saying, i don't know what to do here, i'm going to give it to mr. gross. >> in terms of reading the tea leaves, it seems that investors are betting that the home build earl earnings will be strong. >> yeah, they're making a big bet on continued momentum. itb has seen significant infollowup inflows this year. that is up 80% in the last 12 months. people are doubling down that is going to continue. when you look at the results from toll brothers, you look at what people are expecting from pulte, the economic data, maybe it is a safe bet, but that's something that's already gone up quite a bit. we are still seeing inflows. >> matt, great to see you. >> glad to be here. >> matt hougan. let's move on here. one of the major names we are watching for next week is verizon. it preannounced an increase in subscribers, the wireless carrier, that is. but will the weakness in demand for the iphone 5 and subsidy

costs hurt the bottom line? we have a good old fashioned street fight here. jon is our bull tonight, in other corner, tim, the bear. you have 30 seconds apiece, so, doc, kick it off. >> all right. they added 2 million net subscribers, tim, brings it up to 96 million. they also have a deal with red box or coin star for the streaming service, which will include four dvds delivered to you every week. i love both of those and let's not forget the 5% yield. those are all reasons i think to own this one. >> and that's my reason to sell it. in their best quarter ever, this stock's been dead money. it isat&t. their wire line business is the only one that's growing margins and this is a shrinking business. we know wireless is where you want to be. i don't see margins expanding there. the fourth quarter was their best time. the subsidies of the hand cements has to stop. if you've been waiting for the great days, the low hanging fruit is off the vine. >> they are going to be marketing to the 96 million

subs -- >> it's not his time yet. >> how are we playing this game? it's a street fight. we say our thing -- >> go back at him. >> i don't know what he said. i was too busy complaining. >> where's the baby crying? that's clearly what it is. >> i don't see anybody sweeping my leg right now. >> paint the fence, brian kelly. what do you want? >> i'm not sure if i want to disagree with tim. here's the problem. i'm going to actually go with tim on this one. i understand what dr. j is saying, i'm not sure that red box is going to move the needle as much. in this particular stock. and a lot of people were in this name as a bond proxy. to get that 5% yield. if you get a risk on environment, i think people start to move into more sexier names. >> guy, chime in. >> what? huh? >> chime in. >> who did he pick? >> him. >> i have to pick doc and then weapon have a stalemate. >> that's weak. get a backbone, dude. >> i got a strong backbone. look at me sitting up. >> that's why i have to call it.

>> love the sound effects. >> all right. for tonight, tim won. >> it was a stalemate. >> oh, you actually -- that was a true vote? i thought you were just saying that. >> the viewers know what happened here tonight. i'm not worried about this. next. >> we want to go to jon fortt. we do have developments from the intel conference call. jon? >> yeah, melissa. can't help but notice intel just ticked down below 5%, a 5% drop afterhours. and what analysts are asking about on the call, why cap x spending is outgrowing revenues. revenues are going to be in the low single digits. intel said for fiscal 2013, trying to explain that. analysts want to know when are those investments going to pay off? intel has said that they expect the server group to go back to growing double digits but the client group, modest expectations. they expect tablets and hybrids to be the areas of growth.

those aren't areas they have proven they can hit main stream price points yet. that's my question how this plays out for the year. >> jon, thank you. we'll keep up posted. 5% decline at this hour. coming up next, is a rally in jeopardy? why one leading market watcher is calling a market top right now. plus, the biggest movers in today's session. later, the mystery behind germany's decision to move gold out of the united states. more "fast" straight ahead. [ male announcer ] staples is the number-one

office superstore ink retailer in america.

now get $6 back in staples rewards for every ink cartridge you recycle when you spend $50 on hp ink. staples. that was easy. nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. ♪ [ male announcer ] some day, your life will flash before your eyes. make it worth watching. introducing the 2013 lexus ls. an entirely new pursuit.

hi, welcome back to "fast money." at&t, headlines flashing here on reuters here this afternoon. the company saying its fourth quarter smartphone sales proximately were 10.2 million devices. they expect near term pressure in operating income and margins for the fourth quarter. they cite high subsidies and total smartphone sales. seas devices for the near term pressure. they expected a $10 billion charge related to gains and losses. they also see some reduction in their operating income as a result of what looks like super storm sandy. melissa? >> thank you very much, bertha. we are seeing, of course, a reaction in shares of at&t but looking at the smartphone

makers, we do see apple going back down to $500 a share. >> and this is the biggest threat to apple here. the long-term story of apple is those subsidies go away, it's going to be hard for apple to sell a $600 iphone to somebody who hasn't bought it already. i have the 3g. b.k. is upgrading. >> he is. s&p touching five-year highs but are we reaching a top right now? let's take a deeper dive with the editor of the holbert financial die gust. great to see you. >> thank you. >> you have four indicators that say maybe we're seeing a top. what are they? >> i'm relying on a study on the relative performance of different sectors, prior to past market tops. it turns out that prior to those stops, one of the -- in fact, the two sectors that tend to lag are financials and utilities and it turns out utilities have been lagging. financials have been leading the market, but that's -- that's perhaps the exception that

proves the rule. it's basically, do we think the financials are providing us a false positive, as it were, a false signal. are the financials really as strong or is it because of federal reserve policy that is -- is pressuring them along. so, basically, the story that i see upon looking at these four market sectors, some of which lead and lag prior to tops, is that really the market's holding on by the strength of the financials and that seems to me a fairly weak thread to hold the market onto. >> but mark, how about this whole allocation story? the fact that equities are seeing this run and this throw and we're seeing it more from global equities but we are seeing it in terms of where treasury rates are. that, to me, is a more powerful signal. then i have things like the transports, materials that tell me that people believe the world is better and it's less about traditional market leadership. >> yeah, guei would ask a rhetorical question. do we think the financial sector

would be as strong as it is and has been if the federal reserve wasn't keeping interest rates artificially low? and i think most everyone i talk to says that indeed the financials would not be showing anywhere near the kind of earnings growth that they've been showing and their -- >> do we think the federal reserve is going to stop doing this? >> well, yes, but the federal reserve -- excuse me, the stock market looks forward several years in a row. and they have to at some point start discounting the end of that. no, i don't think the federal reserve is going to stop, but on the other hand, they will have to stop at some point. and the market looks out a couple years ahead. that's been well documented in the research. so, i think, at some point, we see that the market, especially when it's been as strong as this one is, starting to discount a really good story, several months, quarters, even a year or two out. and as soon as when that comes to an end, then we need to watch out. >> mark, i'm sort of in your camp but i think we're going to have a blow off top near 1550-ish in the s&p, between the

2000 high and the '07 high and then we sell off. where would the sell off that you are expecting sooner probably than i am, where it's going to take the s&p down to? >> i should say looking at the relative performance of various sectors, which is what we started out talking about, that's more of an intermediate term indicator. that's not saying the top has to happen immediately. i do have other indicators, especially based on the sentiment among the several hundred advisers that i track, that is showing that indeed we're very close to at least some short-term weakness. we're seeing far too much optimism. in fact, optimism that's higher than we saw at all throughout 2012. you have to go back to 2011 to see optimism as great as we're seeing right now. >> right. >> and every time we've seen that optimism, the market's had short-term weakness. >> mark, thank you for joining us. so, in terms of, you know, it is interesting that the optimism is coinciding, optimistic, very high, coinciding with earnings season and optimism is really

contrarian eindicator. doesn't bode well. zblf if you look at all the indicators out there that are contrarian indicators, they are all signaling we might be at a market top here. all of us feel like there may be a blowoff top here. to me, i would start to go the other side, say maybe everybody is being too cute with this thing. i still think, as long as you have all this money sloshing around, that's looking for one home, the equity -- >> how long have you guys going to camp together? camp mohawk? >> i'm the upper bunk guy. >> i could have guessed that about it. >> i'll bet. whatever. >> that was nice. >> i never heard that. >> that's new. debut. debut here on "fast." all right, coming up next, we are following the latest headlines out of intel. but first, why is germany moving gold out of the u.s.? it is a market mystery. our traders are trying to solve it.

rig right back after this. ♪ ♪ [ male announcer ] you don't have to be a golf pro to walk like one. ♪ when you walk 10,000 steps a day, it's the same as walking a professional golf course. humana. health and well-being partner of the pga tour. [ male announcer ] how do you make 70,000 trades a second... ♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it.

welcome back to "fast money." capital one not enough in its

wallet when it came to profits. itses fourth quarter earnings was a miss, coming in at 141 x items versus an expectation of 158 on the street. provisions for credit losses rose nearly $150 million to $1.2 billion. charge offs rose more than 50 basis points. they do, however, expect to return to what they call a meaningful dividend in 2013. melissa? >> thank you for that. big decline in the afterhours session in shares of cof. this is a different base in terms of card holder from an american express. >> but it is actually a very important canary in the coal mine. if you look back at capital one, back in 2006, 2007, they were the first ones to really show problems in the financial sector. they peaked out at $90 a share in '06 and haven't gotten back there. so, world isn't coming to an end but keep an eye here. this is a very important report. >> or maybe, mike, is this a capital one financial specific

story, because the data we have coming from the big banks have been pretty decent. >> well, i mean, of course, consumers have deleveraged fairly considerably over time, but i do think we should be looking for those canaries in the coal mine, actually, because i think there's so much optimism in the market, here we are in earnings season. and the options markets, whether it's home builders or financials, wherever you look, you see complacency and you see optimism. lots of call buying, not a lot of buyers of puts. volatility is exceptionally low. it takes a few things in a row to get people a little bit concern and you could start to see the market roll over. i think we're a little bit overbought and i do think this is cause for concern. >> let's talk about our market mystery, because this is a question that's been plaguing our traders all day here. >> look at that. >> the german bank is bringing home its gold, saying, quote, by 2020, the bank intends to store half of germany's gold reserves in its own vaults in germany. the question is, why is germany moving gold out of the united

states? >> big question. >> why don't they trust us anymore? guy? >> well, lower manhattan, actually. couple things. this was out yesterday and i wasn't here yesterday so i want to -- >> you've been thinking about it. >> when it came out and the conspiracy theorists, i get all that. this is a huge story in my opinion, that is not a huge story now, but will be a huge story. why is that? because you have to ask yourself, why would germany decide to do this? what do they see that the rest of us don't see that requires them to physically move this gold out of lower manhattan and obviously in paris, as well, back to their borders? and i think that's really the question you have to ask. and the answer is, it can't be anything good. and if you think this is the first time, it's not. because the wacko down in venezuela did it a couple of years ago because people dismissed it -- >> because he's a wacko. >> right. if germany is going to be the last, they're not. people will line up and do this. you talk about runs on banks?

this could be exactly that. if everybody wants their metal back at once, you better hope, a, that it's there and b, we're able to do it. and i'm telling you, the act itself is not bullish gold necessarily -- >> wait a minute. i have a question. question. >> go ahead. >> germany owns this physical gold, so, why is there any risk that is everybody is pulling their gold out that it won't be there. >> give the exact answer. when i worked at drexel berner, 1990, and you're going to say, you're a real back job -- >> i was going to say, you're old. >> we don't have time. >> drove the gold of central banks. it was their gold, but we had it. when the bankruptcy hit, everything was frozen. though it was their gold, they had no access to it. beeks can speak to this, as well. so, it's a lot better to have it in your possession than to have it in your possession in somebody else's vaults. >> the gold market is a little weird. if you buy a share of stock, it's yours, it's in your

account. that's not the way it is with gold. there's not necessarily a serial number on every gold bar that says your name. >> is there maybe not enough gold in the bank? >> yeah, potentially. >> you sound like a real conspiracy theorist. >> well, gold is lent out every single day through the london bullion market. it's lent everywhere. so, if you have everybody trying to come after it at one time, just look at what happened with mf global. a lot of people involved in that, warehouse receipts. took awhile to get that back, so, you need to be concerned. i think the bigger picture is, why is germany doing this now. >> exactly. >> they've had it here for 40-some odd years. why today? >> maybe they have their own vault. germany's got 10% of the world's gold reserves and to men, i don't think this is going to be a catalyst to other people. i certainly don't think why it's that big of a deal to give germany their gold when it's not backed against anything. so, this is the reason why people -- this is why gold is the thing people want to hold. there's nothing backing gold. there's mortgages.

>> they don't have to worry about the soviets, which is why they moved it here in the first place. let's think about why they moved it here in the first place. >> you don't think it's a big deal and you do -- >> the netherlands, actually, have said they want their gold back, too. >> mystery. >> for now, it will remain a market mystery. >> we need to come up with more market mysteries just for that graphic. >> let's talk apple here, closing slightly lower and barely hanging onto that $500 level. seema mody's got the twitt twittersphere's take. >> this is one stock that did not participate in today's rally. how can apple get its mojo back? well, we posed that question to our twitter audience and here are some of the best responses. uthman says, apple should increase dividend, buy backs and announce a newacquisition.

john says, release apple tv, enough said. and james tweets, china mobile has twice as many subscribers as we have people in the united states, so tapping into that is all it would take. those are some of the responses how apple can get its mojo back. do we agree? >> if any of the things happen, it could be a good thing, but the question is, will this, in fact, happen -- >> china mobile doesn't get this probably until the end of this year if they get it at all. and i think it's what everyone said on this desk tonight. the ability of those people to avoid $600 nonsubsidized handsets. it's a big opportunity. i think apple is a trading call here. >> yeah, in terms of the dividend, the buy back, what is interesting, bernstein did an analysis of funds and those that are holding apple. value funds have picked it up. maybe it lives in the no man's land. the dividend is not high enough. >> and i think, melissa, and i said this for weeks proceeding the end of the year, that the

first couple weeks of this year, 2013, we would likely see stocks like apple, people had significant losses in, taking those losses in 2013. i think that's why it's been pounded down to $500 and every time it lifts up, it gets pounded back down to there. you have that situation playing out. >> seema, thank you. time now for pops and drops, the big movers you might have missed today. jcpenney with a drop, guy. >> every rally's been a sale. again, it continues to move lower. i don't know what the hedge fund manager who thinks this is going to triple in price seems. in the short-term, it continues to go down. >> pop for marathon oil. tim? >> going higher, marathon gets an upgrade. people are piling into names. >> sea gate, a pop. doc j. >> margins are quite good, they've been good since the floods in thailand. and i think they will continue to be good. for the hard drives at well as people that want the solid state drives. >> tyson foopds, a pop, b.k.

>> the whole meat space did very well today. >> is that a space? the meat space? >> jerkey, yeah, that's -- >> spam? >> yeah. c >> cattle. >> look at hormel foods. it's been on fire. anyway, the meat space -- >> i don't know if that's any better. meat complex? >> nice calling him out on that. >> somebody had to. somebody had to. >> meat space. >> pop here for chipotle. mike? >> one of the concerns that hit the stock yesterday was narrowing margins and actually on their presentation today, they talked about the fact they thought inflation might level off and they might also look to increase prices. this is a company that has indicated they can do that without scaring off too many consumers. for me, it's whether the growth continues. there i'm a little bit concerned and the multiple here looks rich to me. >> and going back to the meat space -- >> yeah, sure. >> we have a drop for the foot long sandwich. >> what? what? >> i don't like where we're going with this. >> foot long sandwich. it is a game of inches. >> what? >> and one chain is learning

that the highway. an angry customer posted a photo of a sandwich on facebook next to a measuring tape. why was he angry? the sub measured 11 inches and that is one inch short of a foot, of course. it's generated over 100,000 likes and comments and subway is reinforcing its bread-baking standards. maybe the bread just shrank. >> maybe it was cold inside the subway. >> obviously. >> ridonkulous? coming up next -- >> just saying. >> instant analysis to the latest headlines from intel earnings call. cbs shares popped today. why it may be sparking some red flags in the options market. and jane wells is on the farm to track another area, not the meat space, but another area that's rallying. jane? >> look at that. >> melissa, we know when it comes to sandwiches, size matters.

we're all over the food market, coming up. why beef futures are down and this frost-bitten art choke is coasting a lot and you're going to pay for it because it's better than no art choke at all. when we come back.

i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare.

cbs announcing its converting its u.s. outdoor advertising business into a real estate investment trust. the share up to ten year highs and you did notice options activity. >> when they highlight unusual options activity, because there was a lot of it in cbs, over the course of the last week or so, and we saw call open interest going from less than 100,000 contracts to over 150. and then we have the deal today. we did see some people continue to push bullish bets by buying the weekly jan 42 calls. those would be bepts that the stock is above $42 by the end of the week. but a good reason why you should keep an eye on unusual activity. sometimes they might no something. >> doc, did this cross your radar and do you think something will be look eed into? >> it very well could. there were big traders that were getting into it, as mike said,

unlike the small march of the ants. they continued just like mike said, today, buying those 42 calls that expire tomorrow. they traded 48,000 of those versus an open interest of 20 something, so, that's a big trade, as well. >> all right, let's move on here. from mobile devices to medical marijuana, we've got you covered on the west coast. jane we'lls joins us now from a california arty check field for a special farm edition of the west coast wrap. hi, jane. >> hey, i'm in coachella. there's snow on the mountains up there. in the 30s this morning. now it's about 80. we're going to talk about the vegetables and the crops in a minute. but first story, live cattle futures drop md after a processing plant is being closed. now, we told you, when corn shot up because of the brought, cattle ranchers were going to slaughter a lot of cows early because they couldn't afford to feed the animals. now, there's so little supply, cargill cloelgsed this plant.

that sent prices down, but usually, that means if there's less beef, prices eventually go back up. >> meat space expert. >> jane knows exactly why you have to be aware of the meat space. very important to a lot of different -- >> i know meat. >> triangle. pyramid. >> the way to play this is probably through the garain, we talked about that a lot. dba is your etf, or look at a hormel foods. that stock has been on fire over the last month or so. i would look into that, as well. >> jane? >> okay. now, if you know anyone in the restaurant business, they tell you the cost of the salad bar has gone through the roof. you're going to see it in the grocery store. the freeze for a week in california has really damaged a lot of the vegetables and prices for some are up three times what they were a year ago. and this is going to continue over the next few weeks before things get back to normal. what's interesting is, that these farmers don't get crop insurance, so, when they have a shortage like this, they really jack up the prices to lock in profits. >> all right, jane, thank you.

enjoy the artichokes. jane wells. overall, though, in terms of this large trend of rising food costs, we heard that from chipotle, though through the year, food costs will abate. >> i think it's very cyclical. there is always a supply response. monsanto, mon is the way i trade all of this. coming up next, intel earnings reaction fresh off the conference call. more "fast" straight ahead. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

♪ [ male announcer ] don't just reject convention. drown it out. introducing the all-new 2013 lexus ls f sport. an entirely new pursuit. nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office.

and take a look at shares of intel. right now, they are down by 6%. this is the lows in the afterhours six on the back of its earnings report. this is one to watch. meantime, final trades up next. ♪

[ male announcer ] when we built the cadillac ats from the ground up to be the world's best sport sedan... ♪ ...people noticed. ♪ the all-new cadillac ats -- 2013 north american car of the year. ♪ for a limited time, take advantage of this exceptional offer on the all-new cadillac ats.