year of trading. three biggest winner on this final day, refiners, valero, marathon. i'll see you today on fast. >> happy new year, everybody. that's it for "power lunch." >> "street signs" begins right now. . hello and welcome. the final "street signs" of 2013. i'm maadi drury. i'm joined by dominic chu and j jon fortt. all our guests today have brought along their 2014 model ball, so talking of models the had heavy hitters, the electric. auto predictions coming your way. wear them in your shirt, on your head, pocket, eyes, we're not talking about clothing. technology next year. and the gold plays a diamond encrusted ball. what the rich are buying in 2014? hello. welcome to the show, dom and jon. >> good to be here.

again, this is a great day because we're about ready to close out 2013, so we're a couple of ways of putting a lid on a banner year for u.s. stock investors. fun stuff to chew on, this year, 17 out of the dow 30 stocks are at record highs or hit record highs at all 30 of those dow 30 stocks are positive in the year except one company and that's ibm. at least as we head to the closing bell. it's also the be year for the dow since 1995 when the dow was up about 33%. also with the broader s&p 500, get this, almost half. 246 stocks in the s&p 500 have hit all-time highs at some point this year. now the markets roared to new highs in 2013 but what can you expect for the new year? check out the predictions from our very own market masters bob pisani. sn>> the guiding principle of m 2014 predictions try not to be

boring. at least they're a little more interesting than the fed begins to taper. here goes. first the fed will increase its bond buying program next year after its initial attempt at tapering falters. after the fed begins a modest tapering in early 2014, the stock market drops 10% and the economy begins to sputter. the new fed chairman janet yellen has almost no honeymoon, must confront the prospects the economy may slip into another recession, the fed reverses its dedigs, moves to increase its bond buying program. dallas fed president richard fisher who has become a member of the federal open market committee in 2014 resigns from his post in the middle of the year. saying that the fed is acting irresponsibly by refusing to exc excaccelerate acceleratep tapering of the bond buying program. microsoft buys yahoo! at a 30% premium and names marisa mayer as their new ceo. this is a different world when microsoft tried to buy yahoo! last. they need a wow candidate to replace steven balmer.

it's not going to be alan mulally. this will satisfy investors. the company needs somebody to change microsoft culture and that is focused on the consumer. >> talk about some gutsy predictions. >> that is a bold prediction is all i've got to say. >> you don't want to come out with wish-washy predictions saying there's going to be ceo changes next year. >> not at all. now bob, he's joining us right now. also joining us with their own prediction for the markets in 2014, paul hickey and hugh johnson. so maybe bob, the floor is yours for right now, very bold picks. talk to us about why? >> you know, we all have to do this all of us, including you guys, every year, and the problem is, it's very easy to sort of fall into what mandy said, wish-washy commentary where you make predictions you know will probably happen and then look good because you sound really smart. i've been doing this a long time, heck with it, throw caution to the winds and think outside the box. i don't have a high degree of

conviction on all three of these but at least want to get people thinking outside the box. that was the idea. >> what about you, hugh, what's your boldest prediction for the markets 2014? >> well, i'm afraid my stuff is pretty wish-washy. certainly compared to what bob is saying. my boldest prediction, well one that i haven't mentioned to too many people, i think that when you take a look at financial market history, we might see a surprise in ibm. ibm going from being last place in the performance of those stocks that are in the dow to maybe not being the best, but certainly being better than it was this year. in other words, this is going to be an important year for jenny. she has to hurn this around and see positive revenues, not negative revenues from ibm. that may be the biggest surprise. that's as bold and less wish-washy that i can get. >> tell me what do you see for emerging markets? so many companies, particularly in tech, have staked a lot of their growth hopes there. you don't seem to have a lot of

confidence we're going to see things turn around in emerging markets. what specifically do you think is going to happen? >> i think when you talk about emerging markets, you got to be specific as to which emerging markets you're talking about. certainly china in my judgment is going to turn the corner, maybe 6.5% growth, maybe 7% growth, but i think they're going to manage the transition that they're -- that's occurring there and you're going to see a good stock market there. but if you take a look at some other emerging markets, if you look at chile, if you take a look at brazil, mexico, israel, australia, india, even sweden, which is not emerging, you take a look at those countries and i don't see good things there. so you've got to be very specific. overall, emerging markets in my judgment, are going to underperform certainly underperforms u.s., but importantly underperform europe. europe is going to be a big surprise, i think, in 2014. it's going to be a very positive surprise. >> got you. now paul, you -- your company

is -- bespoke investment group. you look at all different kinds of stats and custom tailor out all of the interesting market commenta commentary. what's going to be the big theme as we head into 2014. >> i think we're going to continue to see some strength that we've seen so far this year. when we looked at the numbers i gave you, these are numbersle that you could conceivably hit this year based on prior years where we've seen a 25% gain. and i think the biggest shocking number of them all is, in the nasdaq, when you had a 25% plus gain in one year, the next year at some point in the year the index is -- averages a 25% gain. year to date at some point if the year. that would take the nasdaq to a new high and take out the highs from 2000. so i think that would be the biggest shocker of them all. >> that's not wish-washy, that's very bold. we like bold as we said. tell us what -- >> overall we see healthy gains

going forward. >> give you your one stock to watch. >> what we like to do is focus on stocks that maybe aren't getting as much attention for this type of exercise and one is ftd. they were spun off of united on-line and they owned ftd florists the network and just recently spun off in early november. the stock hasn't done anything in the last two months. typically with these spin offs they don't do anything when they first trade as an independent company but as people start following the company and the stock gets seasoned so to speak they tend to outperform their parent company so i think that would be a good stock to watch here going into 2014. it's 1-800 flowers cheap. >> going to come up roses anybody. >> and gets the endorsement from a few of the people on our team. ftd your one stock to watch. paul hugh, what's your one stock to watch next year? >> check point systems. you know all the problems target has had. it has focused a lot of

attention on the issue of security. checkpoint systems does a lot of things but one of the things they do and do very well is in the whole world of software security. so i think that's number one. number two, you look at their balance sheet. it's wonderful. i mean, they have a big cash position. they have no debt. they're in a great position to start to buy back stock. and they're doing very well. the relative performance of the stock is really good and it's in the right sector. technology which in a bull market is one of the sectors that you want to overweight. so you expect to see security m and a? >> >> let's put a maybe on that one. >> okay. >> hugh, good point on europe. the problem i have with europe is the markets had a big run up already. those stocks are expensive. emerging markets those pes are half what they are in the united states. buy low, sell high, but the valuations are a bit of an issue in europe. >> if you want to do falling knife, fine. emerging might turn and i start to see better relative performance okey. i understand we're a little bit

overvalued but not just in europe, also in the u.s. if i were to quantify it i would say we're about 6% over valued and that long awaited, very predictable correction in stock prices in europe in the u.s. in my judgment has to come in the first part of the year. bob, the one thing i agree with what you've said was you said a 10% correction, some time in the first part of the year. >> yeah. >> i think that's coming and i don't think it's coming for the reasons you say but i think it's coming. we're overvalued about 6%, 10% correction would be a very welcome event. >> welcome and maybe healthy as well. hugh, here's something i find very interesting in your predictions. we're sitting for the ten-year yield at 3.036%. you're predicting 3.04 at the end of next year. so virtually unchanged from where we are now some. >> that's right. i think everybody has to understand one thing and this might be a bold prediction, is that look, the whole process of

quantitative easing or the end of quantitative easing has been completely discounted by both the stock market and the bond market. it doesn't matter anymore. tapering doesn't matter. what matters is federal reserve interest rate policy that is, when are they going to change or increase their target on the federal funds rate. i don't see that occurring until at the earliest the second half of 2015, maybe 2016. the primary driver of short and long-term interest rates will be federal reserve interest rate policy and i don't see that changing any time in 2014 or the first of 2015 and that's why i'm forecasting a fairly flat or benign interest rate environment. >> paul, last word to you here. we talk about the interest rate environment, it's unprecedented with the fed, the taper, everything else. what is the one sector to watch? are they interest rate sensitive sectors, the cyclicals? which sector is poised to be the one that gets the most attention in 2014? >> i would agree with you long-term rates won't go up too

much. i would continue to avoid high dividend paying stocks as investors will continue to rotate out of them into more sicklically oriented sectors. >> bob, hue, paul, thank you for joining us. >> thanks. >> bob, i know we're going to get down to you any moment now where there's a new year's eve tradition going on on the floor of the new york stock exchange. are they going to sipping just yet? >> it was a tradition, barber shop singing and quar tet. the tradition continued and in this one song written in 1904 has continued for north of 100 years as a holiday tradition here at the new york stock exchange. here's jim and art singing "wait until the sun shines nelly. >> on three, one, two, three. ♪ ♪ wait til the sun shines nelly

as the clouds go drifting by ♪ ♪ ♪ we will be happy nelly don't you cry ♪ ♪ down we'll wonder sweetheart you and i ♪ ♪ wait till the sun shines nelly ♪ ♪ by and by >> happy new year. >> [ inaudible ]. hopefully a lot of things will not change. happy new year and best of health to you in 2014 and the best of health to everybody. all the viewers from everybody down here at the new york stock exchange. arthur. another happy new year and healthy one for everybody. thank you for coming down. >> thank you. >> back to everybody on the floor of the stock exchange from us. cashin still has the

pipes. >> he's quite the po et as well. don't know if you'll get his poetry. >> and philosopher. >> yeah. >> art cashin over there. >> yes. he is a new york stock exchange tradition in himself, isn't he? >> a fixture there. >> coming up on this special prediction show what does 2014 hold for housing? >> plus, you hear that music? can't hold us by mclemore and lewis. the fifth best selling song, we'll count down to number one when "street signs" continues. take a look at live pictures of times square, less than ten hours until midnight. there's going to be a ball drop, of course. this special live predictions 2014 "street signs" comes back after this break. bny mellon combines investment management & investment servicing, giving us unique insights which help us attract the industry's brightest minds

who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon.

♪ welcome back to "street signs." less than two hours in the final trading day of the year and going into 2014 walt will have its on the economy. what is in the cards for the gdp, jobs and the fed? let's ask deutsch bank chief economist joe. let's start off with your gdp prediction. hit us up. >> we've got growth pretty strong next year, almost 3.5%.

i could actually see something closer to 4% if we get a little bit less fiscal drag and that's possible with this recent budget. the economy will look better, build upon the gains we've seen in 2013. that means the labor market will be better and also the fed will continue its tapering. qe should end in q3 and that means that rates should head higher. i think you'll see a ten-year note near 4% by year end 2014. >> that's a little more aggressive than our previous guest, hugh johnson, predicting 3.04% i think. you're looking for 4% in the ten-year yield at the end of the year. what are the risks to these predictions you've given us? >> on the growth side to the upside. even at 3, 4, that's a meager growth rate for this stage of the business cycle. growth should be closer to 4.5, 5%. there's a good chance growth will be better. with the fed on hold there's a limit to how high interest rates can go. i don't think you'll go much

above 4. the economy has a lot of umf to it. housing looks better, cap exis better, things looking better finally. >> you mentioned labor market a little bit. what happens to unemployment? what you do you think happens to the long-term unemployed in that mix? >> if we get 3.5% growth, unemployment should fall about 7 or 8 tents. that would tell us we should be in the low 6s. it could be even lower, dominic, if the benefits don't get reinstituted. that employment benefits we calculated is worth at least 0.3%. doing nothing to the growth forecast that's 6.4 goes to 6.1 which is close to levels where the market will start worrying next year about fed tightening. >> that's interesting. that's a risk. unemployment doing better. thank you so much for that, joe, our thanks to joe for that one. another risk possibly here is the housing side of things. the economy is woven into real estate prices. what will the housing market

look like in 2014? diana olick gives us a glimpse. >> reporter: as sales return, home prices will continue to rise, but the gains will ease. those 12% price jumps we saw in 2013 were driven largely by investors on the low end of the market. as foreclosures eb which they will and distressed sales become a smaller part of the mix the prices will moderate. still low inventories will keep those price in the positive in most markets. and mortgage rates will rise. the days of the 3.5% 30-year fixed are over. rates are already up over a full percentage point from a year ago and as the federal reserve begins its much anticipated exit from the bond buying business, rates will have to go higher. investors will not leave the rental market. some have predicted with higher home prices the private equity, large institutional investors will sell at a profit and leave but they say they're settling in

for the long haul now that they have economies of scale and they figured out the management. also, rents for single family homes are rising as they are for multifamily apartment buildings. that's because supply is still tight amid very high demand. diana olick, cnbc, washington. >> real estate at the forefront of investor minds. let's bring in chief economist jed. joe talked about the threat of rising interest rates. the real threat is felt in the housing market, right? is it really a threat if we see rates go up to 4% on the ten-year treasury note? >> the biggest effect of rising mortgage rates is the decline in refinancing. we saw when rates spiked in may and june how much refinancing plummeted after the rate increases. the effect on other things like sales, starts, is much less dramatic and as we go into next year, one of the things we should see is because rates have gone up and banks have less refinancing demand, they're

going to look to do more home purchase lending. hopefully that will mean that it will get a little easier for some people to get a mortgage, at least at those mortgages comply with those new mortgage rules coming into effect. >> and here's the thing, jed. even if rates rise, mortgage rates rise too, don't they remain low by historical standards. we've got very short-term memories, i feel, in this regard? >> right. rates could rise by another full point in 2014. and still end next year below historical norms. before the bubble in 2000 rates were around 6%. so even a point higher than we are today is below where they were last decade. >> does the first time buyer come back? how much has to do with the health of the housing market and other things in the economy? >> i think 2014 is going to be the year of the repeat buyer, but not yet the first-time home buyer. prices are rising and rates are rising. for people who would be repeat

buyers, people who would be selling a home and trading up or trading down, they benefit from the rising prices in the home they're selling just as they face higher prices in the home they're buying. they're not hurt as much by rising prices. first timers, still have a hard time saving for the down payment. and the job picture for young adults, still looks challenging. >> i have to ask about robert shiller's prediction earlier on cnbc, that the housing market could be in the early stages of yet another bubble. do you see that considering that everything you've said suggests you see things are going to move upwards but moderate. that doesn't suggest a bubble to me. >> if prices continue to rise in double digits in 2014 and 2015, we would be back in bubble territory. but prices won't rise that fast next year. less investor interest, more inventory, higher rates, all these should bring prices back down to single digit growth and that will help avoid us getting back into bubble territory. >> we hope so. i don't want to see that history

repeated. thank you forjoining us and joining you over the course of 2013 on "street signs." >> thank you very much. >> still ahead, more predictions for the new year. what does 2014 hold for hot rods and high-tech gadgets. >> and take a look at today's mystery chart. certainly was a stinker. what is the name of this particular stock? you can tweet us @street signscnbc. and let's take another look at times square as we're listening to one of my favorite songs. crowds gathering there. it's a very cold day in new york. i'm glad it's not me is all i'm going to say. out there bundled up. we will be back in a couple minutes time. ♪ tell me that you've had enough of our love ♪ ♪ ♪ our love ♪ just give me a reason just a little bit's enough ♪

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let's take a look at crude price over the year. a bit of a roller coaster but ending the year up about 7% to under $100 a barrel. where's oil headed in 2014? sharon epperson reports. >> reporter: get ready to fill up for less in 2014 as gas

prices fall to a four year low. refineries are increasing production causing supplies to swell and demand remains muted. we usually have a seasonal price surge in the spring, that's when the west coast could see pump prices near the $4 a gallon mark. the prices should be below $3 a gallon much of the year. prices depend on the price of oil futures traded at the nymex. if oil prices reach the triple digit mark they probably won't stay there long. the ongoing boom in domestic oil production will continue and as we have more out put we'll likely hear more calls for exporting more crude oil. right now you can only ek port it to canada. but while that debate continue, supplies will likely outstrip demand, dampening oil prices. but truckers beware. even if oil price gains a are muted we could see higher diesel fuel prices. the sharp demand for supplies globally make take diesel prices

higher in the early part of the year. offsetting the declines in gasoline. but then, prices should fall or at least steady a bit. sharon epperson, cnbc business news. so, that's sharon's prediction for energy. what about other commodities like gold? let's bring cnbc contributor jeff kilburg. what do you see happening in the gold market? >> well, jon, we saw a new yearly low, they went down to the level, a hair spin turn, so what i see is the fed fulfilling their third objective of inflation. i see gold going higher. i'm a lone wolf in this camp but it wants to go back to 1525. that was the big blowout level back in april. >> you're the lone bull that we've met out there on gold. by the way, dom and jon, i know there might be a little interchangeable sometimes. >> wonder twins. >> i'm sorry. >> former news anchor. >> my bad. >> you can't see.

not your fault at all, jeff. >> here's a question i have for jeff, you talk about the technical side of gold, gold is a big loser for the metal here. selling begets selling because of tax reasons among one big reason, right? how much of that really reverses itself in the first half of next year while all the tax selling associated with gold just because of that, lead to a bounce perhaps in the first half of 2014? >> i think due to the fact that i am one of the few bull out there, that will be a reason to be long here. but honestly that tax selling propelled it from 1500 down to where we are 1180. but the big reason we've seen a dramatic drop in the price of gold is due to the sensational rise in the price of gold off the quantitative easing play. a lot of folks, inflation, thought inflation was going to come to the market and the economy a lot faster. it hasn't even peeked its head up. the pendulum swings so fast it will be fast and furious but that will be coupled with the safe haven trade which gold has not had in quite some time into

oil coming down into the 80s as well. we've got to leave it there. thanks very much for joinings us. happy new year. >> happy new year. >> still ahead on this special -- >> from chicago. >> we need some confetti as well. >> i need confetti, party poppers. >> i can rip scripts over here. >> still ahead on the special prediction of "street signs," the the latest in luxury, gadgets, and the hottest rides on the road. you don't want to miss it. welcome back. how is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen.

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auto industry consultant ihs released a report forecasting an unbelievable number, they say that 2035, 9% of global auto sales will be, get this, self-driving cars. 11 years from now, imagine, that many self-driving cars. if you can't wait 11 years you can wait one minute because first phil lebeau gives us a look at what will be hitting the road in 2014. >> 21 years. >> 2014 will be the year of the battle over entry level luxury

cars heats up. the mercedes-benz class is so hot putting pressure on mercedes rivals. audi will answer with the a 3 in march and you can bet that bmw, lexus and cadillac will make sure their entry level models are priced competitively. automakers and auto dealers will throw more cash on the hood in order to make sure sales stay strong. why? there will be 66 brand new or completely redesigned models rolling into show rooms next year. that's a record number. and in order to make sure the other 234 existing models still sell, the auto dealers will have to throw more cash to sweeten the deals. all eyes on the tesla model x, the first crossover utility vehicle which comes out late next year. for the model s sales are expected to grow in 2014 oversea. for the company's stock who knows if it will stay red hot

next year but with ceo elon musk taking a cross country trip in teslas the model s will be a hotp topic for much of 2014. phil lebeau, cnbc business news, chicago. for more, let's bring in justin berk wits, the east coast bureau chief of car and driver magazine. those predictions are bold. i'm especially taken by the year 2035 and having that many self-driving cars on the road. so i mean is this going to be a reality? >> that depends and depends on large part on what all the attorneys say. nissan promises it will have a production vehicle by 2020 that's self-driving but may not be in the u.s. many expect it will be somewhere in northern europe. >> as for 2014, little closer to -- little closer to where we are now as opposed to 2035, electric cars, there's been a lot of hype but still seems as if there are only 1 percent or less of total u.s. car sales. what's going to happen to electric cars in 2014 and do you expect to see consolidatioconso?

>> yeah. i think the initial fur ver has cooled off and that's not helped by as we heard earlier on the program gas prices continuing to fall for retail sales. and that means people don't have as much pressure to either get out of their current vehicle or avoid getting a regular gasoline powered car. we will see some new entries from automakers but looks the trend is moving towards in addition to priuses other plug-in hybrid vehicles a mixture of electric and gasoline. >> with gas prices coming down, the economy getting better, isn't that when we usually see when people start buying more trucks? do you expect to see that happen in the coming year? >> yeah. in fact, it's the perfect year for truck buyers. not only was the chevy silverado and gmc seer year ra launched this year, but next year a new ford f-150, discussion about the technology in there. ford has even or rather rumors have spread that ford is using aluminum to make the car lighter, full-size trucks from gmc and chevrolet, the tahoe and suburban and cadillac escalade.

>> what brand will suffer next year sp. >> chrysler is in a risky position, unintroduced a new 200, the family sedan, a compact jeep. chrysler and dodge brands in particular have an uncertain future ahead of them. >> i see you don't buy ira harris' theory gm could buy tesla. thanks for joining us. time to unveil our mystery chart. it is newmont mining. 2013 has not been kind to gold but more cruel to the gold miner. shares are down around 50% this past year, making it the worst performer in the s&p 500 on the year. so, is newmont a buy at these levels? let's talk number on the technicals, the chief market technician at fbn securities, fundamentals, mark, a chief income strategist at the oxford club. bring up the chart here. what's your view on newmont? >> mandy, if you're looking to have a profitable 2014, there's not much in this chart that suggests there's a counter trend trade available.

there's nothing that shows me this chart is bottoming any time soon. the chart i brought goes all the way back to 2000 to show you how much damage has been done. 50% down this year, 70% down since the highs in 2011, momentum is negative, trends are clearly lower. i thought we might find support looking back at the 2008 levels around 23, $24, clearly that did not hold. looking at this chart i'm a little scared because the next major support level i see is back in the 2000 low around 13. that suggests we can move lower 9 to $10. right now looking at newmont the risk outweighs the reward here. i'm staying away from this chart here. >> that's the chart take. let's it talk about the fundamental business here. gold miners are leveraged to the price of gold. that's the case for all gold miners. mark, do you agree with that fundamental case there? what's the case that gold miners have or maybe have against for their investment? >> well, you know, i would love to be contrarian here.

only five analysts rate the stock a buy out of 24. as you guys mentioned it's down 50% this year, worst performer in the s&p 500. those kind of things usually make me salivate but not this time. newmont hasn't generated free cash flow in two years, earnings expected to come down next year by about 11%. they will have to write off some of the value of their reserves. in 2012, the value it was valued at $1400 an ounce, now with gold at about 1200 that's going to have to come down. the stock is trading at about 13.5 times forward earnings right in line with its peers. i think even if you expect a rebound in gold in the miners there's better places to look, maybe undervalued names. give yourself a margin of safety and go for something that has better value. >> so an ugly view from both of you, technically and fundamentally for newmont mining. thanks. check out the on-line edition of talking numbers in partnership yahoo! finance.

>> is the iwatch something te i techies are looking for in 2014. jon will give us his prediction in tech land in 2014. >> what the rich will be buying in 2014. and i guessed it, i was right, number two best selling song this year, listen up "blurred lines" only because i hear it every day in my house. my kids love it. what's coming up on the final "closing bell" of the year? >> not going to go there on "blurred lines." coming up on "closing bell" we will not only be on top of the time hour of the day, but the final trading hour of 2013. what has been stellar year. >> it has. we're going to spend a lot of time talking about what's happened this year and when 2013 fades away so will come important tax breaks one that could turn the housing market on its head and mean a lot of pain for short sellers. the breakdown on that. >> hewlett-packard seeing a huge run up this year, up 98% for a time when it was in the dow the best performer but at what cost? another 5,000 layoffs announced

today. we'll see just where hp is heading under ceo meg whitman. >> and this one is fascinating. that dinner tonight you can't finish might actually be worth something. the co-founder of leftover swap.com will join us to explain his new venture. it is exactly what it sounds like. that's all coming up on "closing bell." >> see you at the top. tdd#: 1-800-345-2550 trading inspires your life. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading.

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it ywas a big year for tech. here's what i'm looking at. 2014 should be a big year for wearables because we should expect apple to finally jump into the game. i mean yes, we've been looking for something like an iwatch from apple for what seems like years now but since ipod revenue is below $3.5 billion year it's really time for apple to jump into the game. remember that scene in the movie "reservoir dogs" where the three guys are pointing their guns and doesn't work out well, that's the swaying now with amazon, sam sung and google. between tablets an the cloud with xhodsization, somebody will take a fall in 014 and it won't be pretty. an important year of change

coming from microsoft. new ceo, new priorities, and perhaps the spinning off of some brands. if so, bing might be one of them and expect yahoo! ceo marisa mayer to be first in line to check out that particular asset. for more on just how right i am about everything, let's bring in pc mag mobile lead analyst sasha. seriously, what do you think is going to be the big technology trend next year? >> i definitely agree with you 100% about the wearables. i mean we already see that samsung and lg are coming in a big way at c es. apple will follow. i was joking earlier today the 2014 will be the year of the wrist. the wrist is going to be the big body part of the year. >> that sounds like a bad year, just out of context. >> the year of the wrist. nice ring i guess. >> and internet in every car? >> that's going to be another big thing. the automotive industry is working with the wireless

industry. they're going to be putting internet connectivity into every car they possibly can. those screens in your dash are going to get bigger, brighter, more connected. google wants to play there. microsoft wants to play there. the car is a big battle ground this year. >> are we going to continue to see this zero margin hardware game continue? i mean, google playing it, amazon playing it? can they keep playing it in 2014? >> amazon definitely can. if you look at the numbers on the kipdsles, i think they found that there's zero margin on the kindle but encourages something like $400 more a year in amazon purchases. so we see these businesses where hardware is not their core business and they can use the hardware to encourage other purchases. so amazon is going to go ahead and have a smart phone this year almost certainly with the same low cost model driving amazon purchases. >> because we need more smartphones out there, right? it's not competitive enough. what about 4 k, tell us about 4 k and whether or not the

infrastructure is out there to support it? are u.s. internet connections fast enough to support this? >> that's the big question about 4k. the entertainment industry and tv makers really need something to convince people to buy new it tvs and a new round of entertainment content. 3d flopped. total failure. 4k looks like it has a lot more potential. the 4k tvs will come down in price quickly but netflix is going to start streaming 4k looking at the bandwidth requirements and a lot of u.s. homes don't have internet fast enough to deal with 4k. that could be the big thing that slows down adoption of that technology. >> so sasha, you mentioned those flops here. what are going to be the biggest flops in tech in 2014? >> well, i'm not feeling that good about these chrome books. google is trying to push this very hard. they're chrome into laptops. the low-end laptops that looks like another net book phenomenon

to me, another flash in the pan. also, i'm sorry, i do not see a resurgence of blackberry under their new ceo. yes, jon chen is a smart guy, brought si base back before but i think it's dressing the company for sale. >> okay. dressing the company. that was my question, what happens to it? if it's not going to come back, not the big resurgence, sells to who? >> i mean, that's the big question. it's going to sell to someone who wants a great enterprise security and management infrastructure. i thought sam sung is the prime buyer for some time but there's a lot of other companies out there. hp, even somebody like oracle or ibm with a lot of connection in the business services realm. >> sasha, great to have you on the show. thank you very much. still to come, next year's fanciest things. the year in luxury. coming your way. >> and if you hear that, yes, it is, it's itunes' most downloaded song of the year, ryan lewis,

making an encore, "thrift shop" looking at a live picture in dubai as we play "thrift shop" the 2014 ringing in of the new year live when "street signs" comes back. so that's a big one. sn>> i'm giving 2014 right now. >> not a lot of thrift shops in dubai. >> i don't think so. ♪ ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.

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fully embrace insta gram. we've seen a 7% growth in user engagement in following in all the luxury brands on instagram. it will be huge for them. so they will not be backing up on social media and we'll see that drive more sales i believe in 2014. >> so homes, planes, cars, what's going to be the vehicle of choice? >> well, the vehicle of choice, for fashion, i think will be mainly still accessories. huge growth in hand bags and shoe sale, every luxury company

is invested in accessories and beauty. >> now here's one for you, we saw big high profile ipos pops, and prada, and this year monchair, michael kors. what's the big market story for luxury in the luxury brands in 2014? >> the big story for ipos is mark jacobs he stepped down in september. and is poised to make a huge ipo here in america. he launched his beauty line with sophora, huge success. that's a pretty exciting ipo. >> and the return of the logos. stel la, thank you very much for joining us. >> no problem. >> well, still ahead, we're going to pop the champagne just a tad bit early as we sign-off for 2013. >> and of course we're only a number of minutes away from the ringing in the of the new year in dubai. the biggest fireworks celebration ever, ever, folks, that's going to be after the break. >> that's big. ever. welcome back. how is everything?

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this is the last show of 2013 here on "street signs." we wish we had a bottle of champagne for every single one of our viewers. hope you have your own. why don't we pop our champagne. >> because it's been a great

year. >> it's been a great year for markets. it's been an incredible year. and what are your wishes, personal wishes, for 2014? >> a chicken in every pot and an iphone in every pocket. i don't know. broadly shared prosperity, honestly. >> absolutely. let's close that income gap. what about you? >> the idea of the economy getting better is obviously something we all want, but what i would like to really see is all of this stuff with geopolitical violence and tension go away, the sochi olympics are coming up. it should be a joyous time. get rid of all that violence. that would be my wish. >> i certainly hope for a safe and very, very safe and secure olympics. my personal wish is no more wet puns here from sully on cnbc. i know that wish will not come true, but maybe -- >> i think we have a better chance, really, than you do. which makes me almost a little sad, except that we've got champagne. >> well, cheers, everybody. >> absolutely. to a great 2013 and a fantastic 2014. >> thank you for being loyal viewers here of "street signs." and we're also counting down to

the dubai new year. this is the tallest building in the world, the fireworks, i think there are more than 400,000 of them illuminating the iconic landmark from 400 locations in dubai. let's listen in. ♪