the drug wholesaler cardinal health is betting big on obama care. assuremed will give cardinal health access to the growing number of americans treated a the home and there you see cardinal health up 77 cents a share at 4621. a lot of merger activity today, sue. >> yeah, there is. but the overall mark set is qui right now. the s&p is holding well above that 1500 mark, which is important of course, technically. we want to hold that 1500 mark especially on closing basis. nasdaq is bucking the downward trend of the dow. up about 2 1/3. let's look at some of the major stocks moving in today's trading

session. airline index. arca index is down. but keep in mind, we have had a huge run. consolidation game apparently judged by investors is over. heinz, one of the big winners, with all of the activity continuing to add on to its gains and it is now up by a full 20% on the trading session. ty? so not bad. >> one of the most interesting things is talking about the importance of free cash flow and how that is so appealing in today's market. a lot of food companies, consume are product companies have exactly that. so if you are out there, investing and trolling, free cash flow clearly the thing to look for. >> make sure to use that as one of your metrics. >> that does it for today's "power lunch." thanks for watching. >> see you later, ty. "street signs" begins right now. >> too big to sail? broken down carnival triumph

limping into port. we have the latest video and what the latest pr nightmare means for the cruise industry. more than $50 million bet on the consumer today. heinz bought it. buffett becomes the ketchup king and anheuser-busch hoping to push their deal through. and stocks you want to date, marry and divorce. and you will not want it miss this. speaking of ships, the biggest yacht in the world just pulled into new york city and we've got video, mandy. >> indeed. but we begin right now with breaking news. live video coming in of the carnival cruise ship triumph diego towed. 5,000 passengers trapped in reportedly horrendous. holding sheets for signs, reminiscent of hurricane katrina in louisiana pch and we talk

with january e with janet. what is interesting in this situation? >> as you see the signs on the ship, basically limping into the port of mobile. they say things like help us get home. sos. they are writing them on their very own bedsheets. this is clearly desperation of people who have been without power for five days and have another seven hours until they get here. a couple of hours to get off the ship and then it is the trip back to texas or wherever they came from or a night in a hotel. so insult to injury when we learn today that the ship would not be in this afternoon, that it would take longer than expected and come in this evening. what carnival says it is doing to help expedite the process. customs agent going to the ship to get people through the facility behind me. the port facility quicker. but there are a lot of family members who v come from places like kentucky and texas.

think were thinking they would be home by 8 or 9 or 10:00 tonight after a seven-hour drive. thinking the ship would be at the dock at 2 or 3:00. that's not the case. they are already angry coming here after what happened to their loved ones. mandy and brian? >> janet, thank you very much. as thousands of passengers are describing deplorable kl conditions aboard. and now found at a heat game, he is taking heat. if the ship takes it to port at nightfall, perhaps it needs to spend another night off-shore to avoid dangerous conditions. let's bring in petty officer bobby nash. officer nash, thank you for joining us on cnbc. do you believe if it is dark it should wait until day fall or day break to come into port? >> that certainly is not something we would be able to speculate on. the carnival cruise ship company has submitted a dead ship tow plan to coast guard which has been approved bp but as far as

what is best for towing that vessel back in, i'm not subject matter expect on that topic. >> officer nash, what can you tell us about a mobile bay? is it a particularly treacherous or hazardous bay? >> i also don't have anything in particular about the bay itself. the plan they submitted has gone to people thoroughly involved into the port of mobile. they understand the complication answers problems that it would take to make such a maneuver this there. and they will certainly take most precautions necessary and steps necessary to ensure that everybody on board thees have sell safe as they transport into the port of mobile. >> one thing we are hearing, officer nash, is that the port officials prefer it doesn't come in tonight because of potentially difficult current and i believe there are certain areas in the channel only about ten feet deep. do those port officials have the ability o or authority to say, do not come? >> again, that would be outside of my purview. what i can tell you is the coast

guard looked at the plan. they understand that they have individuals who know or are subject matter experts and moving this type of ship into this scenario and this port and they are the best ones to tell you whether or not if it is safe or not. what i can tell you is they aren't doing anything to endanger lives of people or passengers on that ship. >> does the, to mandy's point, officer nash, does the coast guard have the final say here? >> have the final say here as far as what? >> port officials come in, do you have the power to say, no, it's unsafe. >> you know, i don't have the answer for that. i don't know. >> what can we expect a recommendation if that's what you will issue? >> like i said, the dead ship tow plan has been submitted to the coast guard. they are in review of the process and i'm not the right person to tell you if that is a good determination or not. i can tell you they will not do anything not in the best consideration of the people.

that's what the coast guard has been doing for 200 years and that's what the coast guard will continue to give. >> thank you for the information you have provided us. professor of corporate and gene sloan, paul let me get to you first of all, we are talking about damage for carnival here. how would you rate their response so far and what more could they do? >> i think their response has been horrible, mandy. it kind of syncs up with the same response they gave to costa concordia last year. ceo was tweeting from heat games last year as the costa concordia sat off the coast of italy. for some reason, the company doesn't seem to have -- hasn't seemed to have learned anything from the previous accident. and they need to get their act together quickly. imagine how much worse it will be when the 4,000 people come back with all of the horrifying stories that we've only heard the beginnings of. it will be a real disaster at this time. >> paul, i'm not defending

mickey eriksson. carnival cruise line's ceo who works for eriksson has indeed making the media round. he has apologized. that doesn't soothe you? >> i think it is exactly the same as what they did with costa concord concordia. they had the person deal with it. but when company is under a situation like this, you need the ceo to step up to the plate. and he is major owner of this company. we think back to the johnson and johnson crisis and mcneil was ceo of johnson & johnson came to the floor on that one. not mcneil ceo. that is what is needed here. you need to have the top guy dealing with it like it is a crisis, because it is this time. >> and we keep asking, why does it thing keep happening? just peculiar to carnival? it seems like carnival's name keeps popping up with this

accident. >> that is the question. just over two years since we add very similar incident happen on the carnival splendor. and you know, i think you know, we don't know yet, it may take time to find out how similar it was to what happened back then as far as what happened in the engine room. but definitely a question. >> yeah, i guess ways going to ask the same thing. 2010 carnival splendor. then the coastal allegra in 2012. that power loss as well. so the last three ships to lose their engines at sea, and float powerless, gene, have all been carnival. to that point, is it just bad luck or does this say something more about carnival? >> you know, you have to keep in mind that carnival corps is a giant in this industry and something like half of all of the ships out there are carnival corps owned ships.

they control a big part of the business. so statistically, a big chunk of these type incidents will be with carnival corps ships. it is hard to say. these things have generally been relatively rare. but in the last couple of years, yes we have seen a string of them. >> are ships getting too big, gene? >> you know, i don't -- i don't think necessarily that that's -- this could happen on a thousand-passenger ship or 3 or 4,000 passenger ship. i don't think the size of the ship itself is a key factor here. there is the issue if you had a smaller ship and another ship combined, and this happened a couple days ago, it would have been easier to take the passengers off the ship. >> okay, gene, we got to go. we appreciate it. folks, michelle right now heading to mobile, alabama to meet the ship as well. tomorrow, we will have report all day beginning on squawk box in the morning. meantime on deck here.

other big headline of the day. love apparently in the air from food to booze to flights. we dig in to today's deal mania. >> and later on in the show, stocks you date, stocks you marry, and stocks you divorce. before we go, roses are red, violet are blue, here is a heart breaking trade just for you. >> my biggest heart break trade was earlier in my career. i had just tripled my money. i thought i was the smartest guy around. i waited for the market to rally. sold short with everything i had. within two months, i was wiped out and lost everything. with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator...

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love is in the air this valentine's day. merging three new deals. heinz, american airlines and cardinal health. plus, bud's appeal to push its $20 billion deal from modelo through. >> with $190 billion in deals announced to date. the merger is off to its best start since 2005. let's focus in on the biggest, heinz. brian schactman is here. what can you tell us about this that we need to know? >> well, first of all, there are two other names you need to know. 3g and jorge paulo lemann. he is the money behind 3g, which is major part of the deal with anheuser-busch and still owns majority stake of burger king. they will run the business.

buffett and berkshire will put money behind the deal. paying 72.50 per share, about 20% to the premium all-time high. debt is 20 billion in all. take a look at all of the portfolio. highlighted by ore idea. a slew of names mentioned in the whose next category. i want it point out, hersheys, kellogg, hormel have family or foundations here that could have take over action. atalked to analysts and some say, don't expect rash of consolidation within the food sector here. this is a pretty descent size multiple. i'm not saying it is a one off but a pretty unique deal. >> it is. thank you. another big deal changing the way you fly.

american airlines set to merge with us airways. phil lebeau, what does it mean for us, the consumer. >> nine out of every ten flights in the united states will be operated by one of four airlines. you are looking at delta, united, certainly american now the margest and southwest. when you look at the deal put together, look at how large american is going to be, relative to its competitors. it will be larger than united. larger than delta and significantly larger than southwest. further down the line, you see jetblue. but really, the big four in the country are the four you see there from american to southwest. what does this mean for ticket prices? you hear people say, when you have a merger like this, prices go up. the fact of the matter is this is likely to win antitrust approval and it is not expected to generate huge fare increases. most people look at this and say, there might be a few here and there but generally not soaring. where you will see a difference following this merger, we are

already noticing it and that's with investors. look at shares of us airways. if you were in the stock over the last year, boy, did you take a ride in terms of expectation of consolidation. it is selling off today. down almost 9%. and then when you look at delta and united over the last two years. yeah, they have nice gains. shortly after they came together. but over time, with the exception of what we have seen in the last three months to six months where we have seen consolidation game played out, we haven't seen a huge appreciation. bottom line, people are saying, this is the end of the consolidation games when it comes to airlines and if you are an investor you see perhaps smaller significantly smaller gains going forward. guys? >> phil lebeau, thank you, sir. meantime, jamie, a former shareholders here, and what i have to say, is smelling buying power. >> let's go at it from a

different angle. the question we should ask is whether the management of the new airline can be expected to generate a return on the capital they are entrusted with and we think the answer is yes. the question is whether airlines are deserving of generating a sufficient economic profit. so as to allow them to reinvest in the business so the inflight experience gets better. so that service and safety levels rise from already respectable levels. just miopically focus on whether the dallas to charlotte one way fair is $275 or $295. i just don't think that's particularly relevant. >> i see you have a neutral on u.s. air at the moment. is there anything you see as a result of this merger which would make you change that rating and i don't know whether you cover other airline stocks in this space like delta, et cetera. but are there changes for them as a result of this p? >> today feels like christmas morning. we had almost a fuel year to hang the decorations, conduct the analysis. we went to bed early. came running down the stairs this morning.

this merger was widely expected. we have been in anticipation of this very day. u.s. air has come back in. that piqued my interest. we haven't made changes yet. fuel prices have risen in the last month. i think that will take a bite out of earnings in the first and second quarter. we have research we put out on the merger. we are very bullish. very, very constructive on longer term prospects but given year to date gains we think shares will take a breather here before people start piling back in. >> jamie baker, thank you very much. >> good to be here. take care. crack open a cold one. beer, booming today. maker of corona and modelo is snatched up by constellation brand. that is skyrocketing on the deal, constellation up 37%. >> brian it deserves even more. we took our price target up to

$55. this is an amazingly good deal. echo the last analyst. it is like christmas morning. >> will we see loss in terms of consolidation in this space? just in the same way we talk about airlines and with this big deal announce had today. there aren't too many more airlines it merger the same in this space as well? >> we might be done nm the beer business but certainly, there's going to be more consolidation, i think in the spirits business and maybe also in the wine business. so, we are not done yet. there's a lot of room here and you know, if you are borrowing money at 4% and paying, you know, 9.3 times, that's hugely ---this deal is almost a dollar a share akreetive. >> it is valentine's day after all. >> well, that remains to be seen. but there are a few players in kind of that mid tear of spirit.

you know, bacardi and probably some consolidation amongst -- >> okay, tim, thank you very much for joining us. in the meantime, reports from ap right now that apparently the coast guard says that the hauling of the can carnival triumph has stopped because after broken tow line. >> one problem after another. >> one problem at another. mcc, michelle crearusso cabreras heading down to mobile. . will this have you feeling better about your retirement. >> nerd alerts. >> new segment that deliveres a wonky data point that will hopefully wow you or at least convince to you wear a cheerleader's outfit. we're back after this. i know what you're thinking...

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77,300 during the fourth quarter. so our americans better prepared for retirement? vice president of market insights of fidelity investments, i would like to know, to what extent does that do to people contributing more. ie, retail investor is back. or is it because of market performance? >> good afternoon, mandy. yes, i would say a lot of it, two thirds, is attributed to market performance and one-third to employee contributions. in fact over the last ten years, about 50% has been to the market and 50% to employee contributions. so it's great news to see that americans are saving and taking advantage of the upswing in the market. >> jeanne, listen. i do question some of the numbers. right? because the numbers are based on things like, to live the way you used to. no one is going to live at 80 the way they lived at 40 making a full income.

>> well, and that's a good point, brian. at 80, you may not be able to do the things that you used to do at 40. your lifestyle the change over the course of that time. and so, what we do anticipate is that, you know, workers do need to save, you know. it is a three-legged stool some of it. coming from the workplace plan. some from personal savings and some from social security. combining those three income sources, they can create that retirement pay check. it is really that three-legged stool. >> and the tax increases like payroll tax, mean that people put less into 401(k)s because they need more to live on and spend, et cetera? >> good point. though we haven't seen that. people are contributing about 8% of pay along with employer contributions which is about 4%. so we see that on average people are contributing about 12% of their pay. that's pretty steady over the past, you know, five to six years. that hasn't changed. even though there was a lot of market volatility.

for the most part, many people stayed the course and stayed in plan. >> thank very much for those stats. >> welcome. >> we are kicking off a new segment today called nerd alert. >> let's get those nerds! >> nerds! >> nerds! >> there is no transition to this. steve liesman is here. do not take offense to that. we will use that for many other different people, including our shelves. i want you to know that, but do you have something that is perfect. tax data. >> yeah. >> gdp data. >> right. >> and they are related. >> yes, they are. >> and we all wear make-up. >> and designer clothes. i appreciate -- >> and were you the jock or the nerd in college? >> exactly. there is a lot of talk folks among economist about the number 26 billion and what it means for consumer spending. dh 26 billion. that the amount that federal tax refunds through tuesday are running behind last year.

economist say it could shave 0.2% off spending in the first quarter. here is the nerd alert chart of the day. can you see the irs said that about $40 billion in refunds so far. compared to around 66 billion at this time last year. irs delayed the start of tax to january 30th because of the fiscal cliff debate. and it is actually not doing a bad job of scrambling to catch up. it promises to issue 90% of refunds in 21 days or less. but the question economist are debating is whether the refund lag is more than just a processing issue. refunds over all are expected to be below last year because of tax changes. that together with the payroll tax hike which mandy just asked about and higher gas prices has ignite read huge debate over whether consumer spending could actually collapse in the first quarter. mike england in action economic says it will be 0. goose leg, nothing. others have more aggressive 2% or 2.5% rise built in. january retail sales surprised

to the upside. england is betting it'll be a surprise to the down side in march. nerd alert. refunds 26 billion behind last year and that could tell us a lot about consumer spending this year. >> and even if there is a so-called collapse in consumer spending, wouldn't it come back after the initial shock? >> that's a good point. if you get refunds, they catch up. but payroll tax money is gone. that -- >> that does not go -- >> it is just really the debate. i don't know if this is a nerdy debate or not. but the real question is, how do you adjust in your family, in the way you spend money, to a change in taxes. do you do it all in one month or three months? england says it takes place over time. other economist like jim o'sullivan says, you know what? january was better. i'm high on the rest of the quarter. i think we will do okay on retail. >> they are both right. it all depend on how you get paid. on my old job i got paid monthly. once a mp.

end of january, you think, holy smokes. if you get paid weekly, the bite is the same but it seems like less. you can jog quickly or power walk. >> let me power walk. >> we exactly have that anecdotal efd from people that the first part of the month started out okay. because people did not see their paychecks. when they got their paychecks towards the end of the month, they think spending may have come off, quite a bit, and the thinking is that that january retail number doesn't include the last week of the month. you want to get nerdy. it eventually could be revised downward even further doing away with the surprise. there is the debate. england has zero and other people have 2.5, 3%. >> that's revenge of the nerds because we have learned something from that. >> god forbid. >> up next, street talk and we check back in on carnival triumph. are these ships simply getting too big to sail? bigger boat, bigger problems.

>> speaking of big boats. the world's biggest private yacht just showed up here in new york. why is it here? we will find out. >> my biggest heart break trade was selling out of zero coupon bond that i bought for my daughter's education a little bit too soon. i bought them in 1987 and bought them to yield 9.5%. road it all the way down to 3.5%. but i could have written it more and made little bit more money. hello! how sharp is your business security? can it help protect your people and property, while keeping out threats to your operations? it's not working! yes it is. welcome to tyco integrated security. with world-class monitoring centers and thousands of qualified technicians.

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we continue our live coverage of the nightmare at sea. the cruise ship, triumph, moments ago, bringing ship to port. it snapped and now the ship is stalled. let's get to simon hobs in the newsroom. simon, just one disaster after another. >> you can only imagine the atmosphere on board. there are four tugs towing towards mobile port and inevitableably if one of the lines has broken, we have no confirmation of that, they have to stop for fear of others becoming overtensed. the other thing the people on the ship may not real eyes is that even if they make it to port by midnight, the port may

not take them through. alabama state port authority co is concerned the channel through which the ships channel is too narrow. there is only ten foot on each side of give the ship would have to go through. the ship is disabled so the normal winches and shifters that would take it through would not work. so then to find potentially they have to sit outside, we are seeking confirmation on that. in the meantime, i think the most important thing to say from shareholders standpoint and remember carnival cruisers have not lost a huge amount of market cap so far. this becomes a major television event. think of the timing. they arrive at midnight, prime time in asia. sit there or disem park right the way through. the asian, then european tv daytime. then walk straight on the "today" show with nbc and rest of the big networks in the morning. what usually didn't happen unless there are fatalities is that bookings are affected.

but the size of this television event that may be about to happen could change that. i would say a lot of the longer term shareholders are usually based in europe. it is fascinating if they stick in, as they normally do but maybe in this instance they might decide that things have gone too far. bear in mind, guys, this is a bohemath after stop. that is because of the value of the ships they are sailing. back to you. >> simon, thank you for the update. a lot of media exposure for this. >> and let's bring in carolyn spencer brown from cruise critic.com. joining us from boynton beach, florida. i will take a different tactic. i'm not minimizing what these people are going through. we had here at hurricane sandy that didn't have power for two weeks. my neighbor across the street. not the first time it happened. 2010, splendor, carnival. 2012, coasta allegra, carnival ship, three days at sea.

still people get back on the ships. does this due long-term damage it carnival or will people forget and get back on the boat? >> i think they forgod about carnival splendor. >> worse than this. >> worse than this. but the problem is -- >> people ate spam. that's all we talked about. >> they never actually ate the spam. they didn't eat it but did deliver it. look, if you're hungry, it is great. much better than onion sandwiches. let me tell you that much. when carnival splendor happened, carnival bent over backward to tell everyone what happened. we had dining room menus, they did everything they could to share the story. here, it is like they are hiding under the table. nobody knows anything except what they are hearing third hand. and it is getting worse and worse and worse as stories roll on. >> you did a poll asking whether or not the triumph put you off cruising. 61%, vast majority says no.

i'm not worried. why do you think that is? >> that is actually fairly high. cruise critic is a site that appeals to people who cruised before. they know this is an anomaly. a fairly unusual situation. and by the way, carnival is not the only cruise that had fires in the engine room. it happened. it has the worst two i can think of. >> the last three carolyn. >> no, actually -- >> coasta allegra. >> i hear you. >> azamara, part of royal caribbean, had one last year. though they handled it beautifully. >> the situation is just -- it is spiralling. snowballing. like nothing we've ever seen. so 60% of readers will go back. i would expect 80 or 90% after a normal crisis. and the fact that 27% of our readers who are experienced travellers say, you know, this is worrying me, that to me is a significant number. >> understood. well keep on watching whether or

not this changes, as simon said, a lot of media exposure this time around. >> you're welcome. >> take a lk the at stock of whole foods which is maybe finally coming down to earth. >> today it certainly is, mandy. down almost 10% right few. weak quarterly same store sales. they did rise 7.2%. however, they took down the range of growth by a full year, by a tenth percent, but took it down nonetheless. jpm and sun trust cutting price on whole foods to 103 and 105 respectively. >> alpha natural here, finally some good news. >> this company with a narrower than expected loss. still a also. but narrow. aggressive cost cutting. slowed output to control cost. say they may further readjust operations. they did lose a lot of money but they are taking steps to

minimize the loss. >> we also have sketchers, another good news story. >> interesting with sketchers. we know them for casual shoes, loafers. they posted fourth quarter profit after loss from last year. get this, sales rose 40, 4-0, percent. they are going hard after nike and adidas. >> and we have ulta with ceo news for this one. >> i believe we have mr. greenburg joining us in a second. chuck rubin leaving to take over stores. they have been trading at all-time highs and get this, okay, i know herb will -- you got something to say. all right. this was a $10 stock three years ago. it is now nearly a hundred dollar stock now. so herb greenburg, live from some sort of new fangled technical thing that you've got going here. >> i make that the red flags we have flown over this company in

the past, maybe there is something to it. this is a company that has said things will be just great going out five years or so. they keep boosting the number of stores they will open. but as i point out on air, productivity of those stores has been slowing quarter by quarter and look what you've had. cfo quit after six weeks in october. ceo now leaving just before earnings are reported. which is kind of interesting. granted he is going to michaels, which is trying to do an ipo. interim ceo there had a stroke. but if you look at michaels, i start thinking, i look back at his paid daily, coming to this company, he got a lot of money coming here. signing bonus, restricted stock options. half of what has already vested. is he looking for this turn around for paydays? if this is such a great company, why would he leave after just two and half years if the next five years are going to be spectacular. >> i have a question. we have interim ceo, dennis ek,

what happens after that? do you have any skinny on that? >> no, i don't have a skinny on that. we will search for someone and probably won't have a hard time finding someone given the situation. but again we look at the issues we have raised. the company is increasingly opening stores. they start can balancizing one another. can you see that in sales numbers reported. i think is interesting not just to look at what happens when they report the fourth quarter in a week or so but what happens as they go forward and how they really guide. and if they make those numbers. that's what you will want to watch here. >> quickly, herb. i know you are going on a cruise soon. i hope that's not breaking news. will this carnival triumph dissuade -- will you cancel your cruise? >> of course not. this is my fifth cruise in the last ten years. we like to cruise. we go to premium line on crystal. never add problem.

>> and you look forward to the disney cruise. you like mini and mickey. >> i have to say something. the cruises are actually -- a lot of people have images of them. i hear every one of my colleagues say, i would never do a cruise. as if it is a badge of honor. it is a great way to get from here to there. i did the mediterranean cruise last year. it was like a train on water. it got us to some great places. there are always problems with a lot of things. i don't think this is going to have any impact. >> i thoroughly enjoyed my cruise as well. just for the record. >> carnival has done a horrible job, by the way. my opinion. >> herb greenburg, one man's opinion. speaking of ships, put your dreamer's hat on. look at that. ship porn. the biggest yacht in the world. in new york city. we will show it to you. >> and first, though, what is coming up on the closing bell, bill? >> guys, we are going to follow the latest on carnival's pr nightmare. we have a passenger who is on board right now. we are talking to him on the

phone. you won't believe what he has it say about conditions whaen and what he experienced above the triumph. has can coke lost its fizz? is it better to take the pepsi challenge? and james grant is back with us, issuing a dire warning about interest rates. why he says they could go a lot higher and soon. maria and i look forward to seeing you at the top of the hour. in the meantime, "street signs" is back right after this break. ♪ [ engine turns over ]

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welcome back to "street signs." gold closing roughly $10 lower after touching an intraday low of 1636. if it breaks through 1630 that's its low for this year. traders saying we can k0 go through 1600 even 1580. meantime traders tell me technicals and gold they just don't look good right now. we are seeing a bit of a rotation from gold into copper. this after the g 7, general stance there that there will not be more currency devaluation. the worst performer on a percentage bases and weakness and the yen having an impact there, reducing demand and the chinese holiday, that is

reducing demand for physical buying. also, a move lower in platinum, this after impalla said that production rose last year. back over to you. >> back for the metals update. more news on carnival, simon, what have you got? >> wall street trying to come to grips with what is happening with the ship at the moment and how it'll impact the stock moving forward. now remember yesterday that carnival themselves said that their earnings could be acted by 8 to 10 cents. now goldman sachs said they think it'll be 8 cents at things stand at the moment. because they take triumph out of operation for the second quarter as they repair it and a $40 million cost of repairing it. what they say in the note and this is important, is that they are not at this stage grappling to the degree of which the tv event we have been talking about, bookings impacted moving forward. down grades is only 3% of the expected earnings for the entire year and that again is why the

stocks are not moving hugely. back to you. >> thank you very much for that as we see, it is only down by .7%. the big story of the hour is the carnival cruise. but back here in manhattan, there is another mega boat making way. as robert frank is there. robert, i saw that behind you and that looks like a cruise ship, an yacht. >> it is the size -- nearly the size after cruise ship. and the bigami mystery mandy, i why this, eclipse, the biggest yacht in the world is parked in mid town manhattan. it is like seeing a blue whale swim up the hudson river. we will tell you about that in a m minute. the boat is 533 feet long, nearly two football fieldes. two helicopter pads pb two swim are pools. submarine and anti-defense. the owner of the boat is the russian billionaire, roman

abramovich, somewhere around $12 billion. he owns the chelsea football club and several properties in saint barts. he is upset with privacy which is why he is parked in downtown manhattan. the staten island ferry which goes in waters is around 310 feet so 50% smaller than this yacht. now speculation is this boat will be here for about another three weeks. why? we don't know. it could be that his wife, dasha, we are told she is pregnant. she may be wanting to have a baby here in the u.s. this is a convenient way for them to have a temporary residence in new york on the boat. for now within we just don't know why this big boat is here. in the meantime, it will attract a lot of attention. >> robert, thank you very much. we were speculating they may be refueling. there are some that you marry and those that you divorce. same things goes for stocks.

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there you go. well, it is valentine's day and trading like mandy said is kind of like dating, right? you know, good dates, bad dates, divorces. dates that last less than others. all right. anyways. kk financial's jeff kilberg and art lazard are here to talk about stocks you date, marry, divorce, hold on to for a couple hours and then shrink home. tell me about this. >> facebook is certainly a stock that you can date. and is love blind? under the zuckerberg hoodie it has been a bit blind. been an emotional stock, but here you can get in and date it. we'll see how it goes, but right now it's been a big pivot here for facebook. >> a birth of a fliration with facebook what. about you, art, what would you date in the world of stocks?

>> well, i think it's a great question. try to stick with the valentines theme, a handbag, and a movie. >> i'd go with coach, limited brands. on coach i think a lot of people thought they were missing the quarter because they are losing tracks to michael kors. what happens here is they spent a lot of money building out in china and that spend is slowing down. i think they will do a great job of getting that story off. throw out about a billion of free cash flow and buying 1.5 billion back in buybacks on show. well-known brand and strong manment. expanding to china and non-handbags so coach is a great date. >> who would you mayor? >> married for ten happy years. >> what a suckup you are. >> is she watching? >> i bet she's watching. >> but i like wells fargo here. think about it. i'm still smitten about wells

fargo. walk into the stock. it's a 3% dividend yield. we see right here they are one-third of new mortgage original nations in the u.s. so i think they are positioned properly but more importantly they strip out the european woes. they haven't hit the u.s. equities yet. concerned about the banking sector but do like wells fargo. another wonderful 10, 20, 30 years. >> and a great use of the word strip. art logan, limited brands? >> limited brands. obviously known for victoria's secret, bath and body works, doing a great job and a well-managed company. 2,600 stores in the u.s., 700 internationally. starting the international expansion, not sure how well that goes, but i certainly think they are off to a great start so if you're looking for a long-term relationship i think victoria's secret and bath and body works is the way to go. >> not very romantic. a sign of the times. jeff, which stock would you want to divorce right now? >> head for the hills in gm.

i think a good proxy has been ford. ford came out and said there's a $300 million potential of european losses. gm is going down that same road. year over year they are declining market share but at the end of the day. it's the government. the government is about to sell 40% of their ownership in the next few weeks and then the balance in the next 12 to 15 months. get out of that relationship. no good, mandy. >> and you, art hogan, who do you divorce? >> we're going to divorce starz entertainment. it's not a contentious divorce, just irreconcilable differences. expensive content and revenue pressure. what's happening here they are not getting a lot of traction with the original content. they have to license other, so disney, they are going to lose in the 17th to netflix, just re-signed sony out for a decade and don't know how much they have paid for it. a company facing revenue pressure and higher input costs,

time to get out of of the relationship with starz. >> thank you, jeff and art. >> up next, the world's best love shacks. ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfection.