running to stocks. instead the money probably goes to cash for a while and then over time eventually finds its way into the market. >> russ, thank you very much for coming in. >> thank you. >> been great talking to you. >> been a good day. went through a lot of stuff. >> ten year's at $2 now. make sure you join us tomorrow. "squawk on the street" starts right now. ♪ ♪ jyeah, that's the thing ♪ good tuesday morning, welcome to "squawk on the street" i'm carl quintanilla with jim cramer and david faber trying to stay warm after the game last night at the new york stock exchange. futures are higher where weather is dominating the discussion from air travel to nat gas to utilities and we'll cover it all. here's the ten year a day after janet yellen was confirmed by the senate 56-26. got some fed speak on the docket today as well. european inflation or the lack of it continues to be a concern

for some economists, but stocks over there are in the green. our roadmap begins with the coldest arctic blast in at least 20 years affecting more than half the nation's population. wreaking havoc on commutes, travel and businesses. >> and the s&p meanwhile looking to avoid doing something it hasn't done in a very long time, that is, a fourth consecutive time since the start of the year. >> morgan stanley downgrading netflix from underweight to equal weight. and scott cohen reports jpmorgan chase officials will avoid madoff related penalties and jury selection begins for the inside trading case for s.e.c. capital portfolio manager matthew martoma. a deep freeze is gripping much of the u.s. forcing businesses and schools to close canceling thousands of flights. it's one of the coldest arctic outbreaks since the '90s and it's taking a toll on the midwest, the deep south and even the east. that news is sending natural gas futures higher, it's the lead of

"the usa today"'s money section. talking about utilities and nat gas. more than half of the homes in this country are powered by, jim, we know what prices did last year. use is up 50% year over year. >> and group is still hated. there's a downgrade of chesapeake today. they are the natural gas play. i keep waiting for someone to say, do you know what, we got to own these stocks. they have been not great. continental resources upgraded today, the oil play. the only stock that gets the big push is the chanere partnership and what do they do, they send the natural gas overseas, there's a difference between the cold and what the analysts are telling you to buy. mark west is the owner of a big nat gas pipeline to the northeast where things are cold and no one seems to like the limited partnerships anymore other than they are exporting because of higher interest rates. they should be playing. >> spot prices. we won't stay up at 13 or wherever we are in the new york area or where everybody is

getting hit by the cold. >> in the old days someone would say come out and buches peek for the trade and now they are saying sell it with the trade. it seems to be out of sync. the market has been down. >> three days in a row. >> wow. geez, sell, huh? >> apparently. >> the old five-day rule. back in '91 when the s&p had four days down to start the year ended up 26% so be careful about the maxims. >> but remember they had the dip and the gulf war, and, boom, you had the buy that -- and that was one of those moments where once the war was over you had this run of four weeks. people -- people look back, remember, people thought we could lose the gulf war because of the republican guard. >> yeah. not happening. >> the not the first time anyway. >> and jetblue made news last night they'll stop flights for 17 hours as of 5:00 p.m. last night at some of the biggest hubs of the country. do you like them here? >> still like them. delta was a terrific performer,

one of the best five in the s&p 500 last year. in the fourth quarter it was just a monster. i think that this combined u.s. -- look at that stock was up again yesterday. us airways just do not keep that in front of you and they merge with american the synergies you'll see are extraordinary. continental air our friend herb greenberg wrote the ceo of united continental is the worst ceo what's incredible is the stock went up anyway. how powerful is that. he said ambercrombie is the worst to be fair. maybe they sell coats or do they just sell six packs. >> i saw your warrior north face. it's a gorgeous coat. >> thank you. it's eric wiseman's latest and the ceo of vf corp and it's the warm one and i bet you it's being blown out. someone @jimcramer, take a longer term view. look at this stock.

look what wiseman has down. a four for one split. wiseman is -- >> that's not all winter coats. what's going on there? >> vf is -- they've got timberland, they have tremendous socks. you probably don't care. one politician cares about socks on about the cover of the "new york post." >> what about socks i don't know what that's all about. >> go back and remember the sock reference. >> i remember the sock analogy. no and i was referencing the toes because apparently it's all about feet for him. >> that's true. but they call them the coalitions seven for mankind i know when you shop it you like it, right? >> uh-huh, love it. >> seven for mankind. seven for mankind, it's jt just about the united nations and coalitions it's about great brands and vf corp is the stand-up. and pbh has come back but that's more of a regular power score. >> long underwear.

that's what i recommend. >> really? >> yes, everest long underwear. >> thank you for that. completely "nonable to make money" story. >> trying to keep people warm. >> the inventory has to be low for vf corp. let's talk about the markets. the s&p 500 looking to avoid a fourth consecutive decline to start the year and it hasn't happened since 1991 when the year opened with six straight losses although, again, we had a very strong market year that year so don't read much into it. in the meantime, the senate has confirmed janet yellen and she'll take over for ben bernanke on the first of the next month. and that's about all we can say there, isn't it? >> yeah. continuation of policy. we see every day. that companies make acquisitions. i continue to focus on the sirius satellite. how does a deal get done like that? you take a balance sheet and refinance it and there are still

the theme and companies that haven't refinanced yet. >> the question is, do you see as you point out, people accessing cheap money now because they fear it's going to go away? now, that, you know, again, 3%, 3.5%, i mean, wherever we go, it's still going to be cheap on relative terms historically, but we have had a period perhaps that we'll never see again. many companies have done that, of course, as you pointed out last night as we talked about a lot, john malone has certainly been one of the more aggressive saying, hey, this is a great time to borrow, do it, do it, keep doing it. fedex borrowed $2 billion to fund a buyback. do we see companies pile on now because they fear that the end is near? >> yes, yes. i also think don't overrule the housing -- housing, there's not enough supply to meet demand. sherwin-williams. i like keys research. they are saying hold the buy on sherwin, that had been a not that great quarter so this is a

pretty interesting moment. >> yesterday we talked about the flurry of downgrades that started the week. you said the street was fighting the upside and more today, mattel, humana, coors, and a few more upgrades to offset it. >> i see the individual investor coming back and also short rates coming up which, remember, it's a credit/balance story. the downgrade makes no sense to me. look it, you got to get on board here. you got to get on board. this is a market that's been down for a couple days. we're talking off the overbought. look at the regional bank glut and bob pisani was talking whether it's right or wrong and the story continues today with more regional banks being upgraded. i'm waiting for a kind of an overall every bank must be bought call. we still do not have that. >> and even "the journal" talking about vick trading where we've turned a corner where it's not coming back. >> and the ability to trade and all sorts of markets whether it

be foreign exchanges or bonds that we'll see low volumes from here forever. >> and the eft said there's no more cross border. >> the fte lead story. >> it's about the cds. >> net interest margin. the ability to pay a very low rate and not move that up and meanwhile rates are moving up. >> it's what wells fargo lives off of, it's all that matters. it's all that matters. >> not for goldman sachs. >> goldman's going up because all these stories are wrong. like, they have some thesis, there must be some central desk that says, okay, don't write anything positive about the banks because they shouldn't be going up. look at bank of america, will you? have you noticed the rally? how about this one? there's a recommendation of citi today, did you see that? they talked about citi being good? they say citi's undervalued! >> heresy. >> isn't that incredible? listen up, michael cobat he's

very quietly reinventing the company. >> you said that. >> i like him. let's talk about netflix, morgan stanley cuts it from underweight to equal weight and lowers the price target from $3.33 down to $3.10 and said heightened competition from amazon and hulu could challenge netflix's subscriber growth and lead to higher marketing and content cost. churn for the long term for netflix 4% and they say the market is pricing in many more domestic subs. >> i'm hearing the pushback, other services and finally getting competitive. that's not what you want to hear obviously. people were reacting that this one was the winner of the s&p last year and maybe it moved too much. i continue to think the franchise is worth more and the international market is great and it has an amazon halo. you don't have to make a lot of money when you are in the blowout phase, and i think the

downgrade i'll use the term premature. >> yeah. it's certainly a great value, $7.99 would seem to be a very strong price point. having both as a user, they're compatible, i wouldn't replace one with the other. not amazon for netflix but that's the point of this downgrade meaning that would be more robust, amazon prime, hbo go and even hulu and you will see people perhaps fall off. but at $7.99 a month. >> i'm saying on "mad money" they could raise the price and no one would know the difference. i believe that. this is a very powerful story by a really excellent ceo, $22 billion company i think it could be worth $30 billion. >> but to the extent that the stock price is already reflecting an expectation that they get to 60 million streaming subs in some period of time, with that churn rate and with growing competition, you can at least give come credence to the theory that they may not get there. >> they need to triple the number of people internationally

about 9 million international and go to 27 million and then you get there. that is not outlandish, the business model works because it's very inexpensive and people do love the product. remember, netflix is one of those companies like amazon, like twitter, they love the product, very 1980s style investing. they love the product and they want to own the stock. they would love to buy a tesla and they buy a tesla. it's not my style investing. it's pure momentum, but momentum is back and the analysts fight momentum on a daily basis. >> oh, yeah, there have been stubborn bears on netflix. you are talking $60 price targets that have not moved for a long time. >> like this "downton abbey" i know you love the thing. >> i love it. >> 10 million viewers. >> i have to go start. i did the same thing to "walking dead" that's what i did with all these shows. >> i'm too busy reading jim cramer's new book. >> and you'll come to the barnes

and noble signing and the costco signing on long island saturday? >> which is it? >> "downton abbey" jumped the tank. >> the shark tank of. >> what a segue. >> that's the best i've ever seen. >> but then again you did sign a long-term contract with cnbc. >> it's all part of the same thing, yes. when we return the consumer electronics show and the showdown in tech. stay tuned, we've got an interview with samsung's ceo, you can't miss that. and also ahead former gop presidential candidate ron paul on the fed as we get ready for the janet yellen era. one more look at futures. not too bad here. it will keep you warm. ♪ this and that and she said that's that and i don't want to jitter jat ♪

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southern part of the u.s. has nott ebeen spared the deep freeze across much of the nation. julie martin with the weather channel is with us. julie, good morning. >> reporter: in the deep south, in fact, we did get to a record

this morning of 6 degrees and that's the coldest air we've seen since the 1990s. so, as you can imagine school is out across the metro area. kids are home today. and the city actually had to open a temporary emergency overnight shelter for people just to keep them warm. now, today we do expect temperatures here in atlanta to climb into the teens, maybe into the 20s, but we're not going to get above freezing here until thursday of this week. it's not just here, but all across the deep south. in fact, the freezing line extending all the way down to tampa, florida. carl? >> julie martin in atlanta. julie will be watching temperatures down there. incredible. mississippi, you name it. gripping the entire country. >> my daughter goes to school in new orleans, i just went there because it's warm. huh-uh. no more. got to be inside the super dome. >> you don't get to say polar vortex too often. >> it sounded great, didn't it? >> there's a split in the polar vortex. >> and then, of course -- hey,

how about global warming? how about global warming? it's more complicated than that. >> it's really hot in australia right now relative to averages. it's a big planet. very big planet. >> that's a discovery downgraded today, but that would be a good show. big planet. >> even bigger universe. meantime, back here on earth sources say jpmorgan chase officials will not be penalized as part of a settlement being negotiated with a government. the case involves allegations the bank ignored signs of bernard madoff's ponzi scheme. no individuals will be implicated in the expected $2 billion settlement which could be announced as soon as today. meantime, jury selection begins in federal court for the insider trading case against former s.e.c. capital portfolio manager matthew martoma, a bird who is apparently unwilling to sing. >> kind of shocking that he's not done that especially because we know that prosecutors would gladly have taken something he might have given them to implicate mr. cohen, his boss.

but in particular in light of the fact that steinberg was convicted, if there was ever a case where the feds were really to have thought the weakest opportunity to convict it was in the prosecution of michael steinberg which took place at the end of last year. another -- more senior executive at sac. he was convicted, i believe, he's appealing now. one would have to believe martoma having seen that, what chance does he think he has when the doctor who he was allegedly paying off is going to testify against him? >> well, i guess he's betting that the jury just is -- won't understand, i mean, because -- >> and that his legal bills will be taken care of. right? >> those cases are -- they can bankrupt anybody. >> yeah. >> they can bankrupt anybody. >> but there is still a question as to how aggressively prosecutors are pursuing mr. cohen even now. i think there was an expectation when we first heard about the charges, remember, involved

trading in elan and wyeth that he would turn and give them something they wanted and he didn't and they went after the entire firm. sac up 20% net last year. a very good year for a large hedge fund. >> right. >> when you do the numbers which i did some time ago, the $1.8 billion in penalties this year, mr. cohen will have made that. one year. >> the story never dies. every time i read the stories they always say it's over for him, it's over. and then i read the second round of stories. does he have a great public relations team that says it's over, how does it happen, every time he settles it's over and every time i pick up the paper, it's not over. >> i don't know. you know as well as any of us do certainly -- >> who by the way, you see the bottom of your screen, is going to hold a news conference on the jpm case, $1.7 billion criminal

charges and deferred prosecution and walked through apparently that the executives apparently will not be implicated. >> they said people internally knew there was no wizard there, but what duty do they really have? i think this was one of the more questionable cases but it doesn't matter. in the end jpmorgan has become a free fire zone and i think just saying, listen, we got to get past everything, we have to have 2014 be as clean atiate as possible. i did not think that the government had a good case here but i guess it just doesn't matter. last night on "mad money" cramer told you all about the s&p's diamonds in the rough and how can you add shine to your portfolio today? we'll get his "mad dash" after the break and one more look at futures and a lot of news coming over the next several hours. a lot more "squawk on the street" from the nyse straight ahead. ♪ shine bright like a diamond shine bright like a diamond ♪ and the southbound bus barreling down i-95. ♪ this magic moment it is the story of where every great idea begins.

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♪ six minutes away from the open of trade. let's get to a "mad dash" for this tuesday. where are we starting? >> all we need is love, the love for google. deutsche bank calls it a must-own. jpmorgan raised its price target. people are talking it's the race to $1,300, david. i do not believe this is like 1999 where we had some incredible price targets, qualcomm being the one. but i do still think it's very cheap. >> do you? this enthusiasm seems to have no bounds, which some might find worrisome. at what point will the company start to disappoint only because expectations have gotten so high? this stock is up 30% over the

last 3 months. >> they have a big overseas business and they have a big european business. yoeurope keeps coming back, and google is a great play. they are beginning to monetize the new products and they haven't started how to figure out money on youtube. i'm on board and my travel trust the biggest position. >> you're on board? >> yes. second facebook deutsche bank says buy facebook ahead of the results, it's going to be a solid quarter. this is just a time of love. i saw yelp go up yesterday, zillow is having a move. li linkdin was downgraded. and workday a cloud play upgraded. david, people are circling back to traditional growth as the year begins. >> and a lot of it taking place where you'd expect it in technology. >> right. >> yesterday, though, we talked about ebay, a company that has not seen growth. >> a lot of chatter among the

analysts saying it was too negative of a piece of research which is why it's going up today. yelp is my barometer. >> why? >> why? >> yes. >> because yelp is cloud, it's social, it's mobile. it's the trilogy, david. and because i own a restaurant and i'm so scared to death of yelp. so scared to death. >> it's not going to help! >> no, it costs a fortune. jerome stoppleman, this is a great company. they installed here and they did a big underwriting and the next thing you know it's finally broken through, i think yelp has the best business model. there are so many pinkie in the brain stories it's incredible. >> i'm looking forward to the opening of that fabulous mexican restaurant. and the opening bell, by the way, i'm also looking forward to, right after this. how will apple's competitors

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samsung ceo later on this morning. apple's making some news. $10 billion from the app store last year. a billion in december alone. a record month. >> and when i feel is amazing we've all kind of forgotten that there's a big -- what a profit center that is. guys keep dumping on apple. the new 50-day moving average but it almost was bad. you are talking about some sort of what kind of costs, what are we worried about now? hindenburg, was it a hindenburg? >> we're below half a trillion in market value. >> yes. sound the alarm. >> we have an inversion. >> there's a look at breadth at the top of your screen. yesterday morning started almost exactly like this and we lost our gains very quickly. we'll see what the day brings. the ronald mcdonald house providing temporary housing to pediatric cancer patients and their families, an organization that does incredible work. >> you are so right. >> town sports international

holdings an owner and operator of fitness clubs celebrating fit week. samsung had some interesting metrics, not only the first down profit since 2000 -- in two years. but the 105-inch curved television which is making noise in addition to the michael bay appearance, which we'll play later on. >> did you get the dallas cowboys jumbotron in your house? raise the roof. >> they are curving a lot of stuff at samsung. >> yeah. >> it doesn't appear, though, to be helping their sale of smartphones. >> they had the worst ad i've ever seen about some guy taking somebody's girlfriend at a ski resort. i know "fast money" did it. it's the worst ad i've ever seen. i'm not kidding. i'd love to just put it out there, because i thought it was, like -- i thought it was, like, one of these stories it was hike a horror movie! i'm not kidding, it was like "saw 17" or something. >> really? >> yeah. it didn't make me want to buy something samsung, i'll tell you

that much. >> i like the directv ads. they are pretty funny. >> a series of upgrades to work through. yum at rbc, lululemon saying it's a better year for lulu. >> obviously bleary eyed from florida state's victory and felt that buying yum for the travel trust and j & j. >> a top pick. >> but the chatter out of china continues to be very positive. david novak the ceo came on "mad money" and said, do you know what, we'll not let you down, jim. we had the same address, you know, at one point. >> your car? >> we lived in our cars. >> the title of the report is "out of fowl trouble." and they see mid single digits prior. if china's fixed, margins can expa expand. >> no mas negativity if china's fixed. that's like your shark tank

thing, no mas, one of their ad campaigns. do you watch anything other than "downton abbey"? >> i don't watch that anymore. i'm working through "breaking bad." >> when brian cranston came on "mad money" and said it was exactly like an apple situation. don't worry about distribution, it comes! he said it. he said mr. freeh had it all wrong. >> i know you know he was a fictional character. >> i was in mexico and pollos is how they pronounce it. >> j&j, you watch this company. >> alex gorski has put a level of discipline that is like west point. of course, he went to west point. >> real quickly, i know this be a name for 6 in 60, but cellgene is up.

>> i pushed it hard and didn't know they would have a home run in their 12% stake in epizime, they've given them the $25 million milestone program. have you seen epzm this morning? whoo. wow. >> we told you about the news that was broken a few moments ago. let's get to scott cohen who i think might be back at headquarters. scott? >> reporter: actually, we're out in front of the u.s. attorney's office in manhattan, carl, where jpmorgan chase can check off yet another box in its effort to clear all of the regulatory woes that it's been dealing with. and this is a big one. billed as the biggest fine ever for violations of the bank secrecy act, the bank will pay $1.7 billion to the justice department for its dealings with bernie madoff and the bank will admit wrongdoing in a deferred prosecution agreement. what that means is, that there will be criminal charges filed but they will not be prosecuted as long as the bank cleans up

its compliance procedures and abides by various monitoring initiatives over the next two years. no individuals are being implicated in this, and the allegations here very much mirror a lawsuit that was filed in late 2010 by the bankruptcy trustee irving picard who has still been pursuing a case against jpmorgan. the allegation that it was madoff's primary bank for more than 20 years and yet turned a blind eye to the fraud going on. at the heart of this two-count criminal information that will be filed but then deferred is the bank's decision in october, 2008, to file -- not to file a suspicious activity report in the u.s. while at the same time telling regulators in great britain that madoff's returns appeared to be too good to be true. that, the u.s. attorney's office says, is a willful violation of

the bank secrecy act. the second count provides failure to provide adequate controls but, again, no individuals will be held accountable. the bank will pay 1.7ed with to the justice department and that should be earmarked to madoff victims and another about $300 million to regulators including the office of the comptroller of the currency. there's a news conference scheduled at about 1:00 this afternoon. we'll bring it to you live. back to you. >> thank you very much, scott cohen, joining us from lower manhattan. jpmorgan on a day where the narrative to start the new year that the banks are starting to get some love. does it throw any land mines on it? >> no. this is something that as long as you -- i don't want to get -- i want to just morally just say that i've kept waiting for bank executives somewhere to be prosecuted, not jamie dimon, you know, some of the guys who did something worse than -- you know, the banking system was in question and there were some bankers who identify think were behind that. i don't want anyone to think

that i'm identifying jpm as that. this is the kind of thing i think they've been picking on jpm. i'll reiterate that. i know that will get me in trouble. i think that has been -- that bank versus the banks that really did bad has been just paying fine, paying fine, paying fine and this was another one where because they were able to figure out that madoff wasn't doing anything, i guess they were supposed to put up a red flag saying the guy is -- these returns are bogus, but i don't think -- and i know in london they also tried to measure it but they are now paying a fortune for it. but unfortunately, who pays the fortune, the shareholders. >> dividing the line between the banks that really did bad, though, jim? >> i'm talking about countrywide. >> not a bank. >> aeg where -- >> nonbanks. >> aeg where they lied at an analyst meeting in december of the year they fell apart but no one seemed to care. i went to the -- i said, here's the lie. but, you know, they never went after the banks because i think that they just -- the bankers themselves. they never went after the

bankers themselves and i think that america was kind of saying we wanted justice, the only justice we got is the shareholders pay. i'm acutely cautious of the fact that we just -- my trust just wrote a check, right? it's the shareholders that have been paying. i don't know if that's right. judge rakoff would agree to that. >> netflix is the biggest loser on s&p, but xroocoors is number. citi takes it to neutral, they prefer growth at a regional price. tjx, coach, gap, and their point is holiday might have been fine, jim, but not great. >> there was a pretty interesting letter that howard schultz sent out last night to his partners at starbucks saying that mall traffic -- this was the year where mall traffic really did not do well. a lotseers and they bought things online. a gift card christmas i wonder

if michael kors is a victim. but the howard schultz note was powerful because it talked about how this was the internet year and that mall traffic did not produce mall results. he has to be watched because he sees a great number of things. >> he's been prescient on this show. >> yes, he has, holy cow, he's my bankable ceo. >> he called the turn in europe. >> he did! >> carl just mentioned it and now i remember it. yeah, he really did. >> the guy is the real deal. what can i tell you? let's get to another real deal, bob pisani is on the floor. hi, bob. >> for all the worrying about the drop in the year the dow closed at 16576. we're 70 points away from break even on the year. the dow is the smallest drop of all the major indices. take a look at some of the big sectors. biotech had a rough day yesterday on a downgrade but materials are still lagging, a group that had a lot of

problems. and energy lacking. and financials are outperforming again. i've made a lot of points and comments about the financials outperforming. the biggest story of 2014 so far on the stock market is the belief that we are going to see modestly higher interest rates this year and this is affecting various groups. put up these interest rate sensitive sectors and home builders had a rough start to the year, they are up this morning but a rough start. utilities have had a rough start overall to the year and banks are on the upside. that's the important thing for banks. big cap banks had a very strong start to the year overall. earnings expectations haven't changed. i haven't seen any changes in that. what we're seeing is a multiple expansion at the start of the year on the prospect for higher interest rates. big banks have been cheap relative to the regional banks. the regional banks have all been down so far this year and the big banks have outperformed for them. the bigger problem i have for this, it's a good thing to have an increase in interest rates, but it's the low end of the curve where you want to have the

increase because that's where you make your money. a lot of the rates are tied to short-term rates by libor for the loans and they are not moving that much so i don't know that it will impact the earnings a lot. i think it's important today that we did get some upgrades finally of the regional banks. we saw an upgrade for suntrust and saw an upgrade at bb&t at jpmorgan and a downgrade for first republic and finally an upgrade for the banks that they underperformed. i'm dieing to hear what they have to say. the good news is the steepening of the yield curve that we've seen though. put up the bad news. i do not see any loan demand out there. still soft. secondly, mortgage fees are still weak. that's an issue certainly. third i keep hearing that trading is soft overall, and finally they're repricing the bonds, that's putting a lot of pressure overall on the portfolio yields, i think that will be a big issue as well. i'm seeing worries here.

finally i would note did you see the trade deficit numbers, the big drop in the trade deficit? this was huge. exports are near record highs. this will be very good news for the gdp, i've heard that it will be 0.2%, 0.3%, 0.4% higher because of the lower trade deficits. guys, back to you. >> thanks so much, bob pisani. let's check out the action in the commodities. sharon epperson is there. >> down $10 and we're seeing gold traders weighing what -- they are anticipating, of course, what is going on with the fed and waiting for the employment on friday to see what the fed's move will be based on that but they are also looking at the physical demand and the numbers out of asia and that's somewhat supportive of gold. gold is up $45 from the lows we hit on december 31st right around $1181 an ounce and we've have yet to see it break the

50-day moving average. and they are watching what's happening in the oil markets, they are watching libya and there's been somewhat of a recovery in supply there but there is ongoing tensions there and they are watching the fighting in iraq and concerned about the supplies in that region. and here in the u.s. the frigid cold temperatures definitely having an impact on production in the middle part of the country and that's something we'll be watching in the weekly supply report that will show up in next week's report. we're also watching natural gas because natural gas futures among the best performing commodity today. natural gas futures are rising as we are looking at increased heating demand with the record low temperatures, carl. back to you. >> sharon epperson at the nymex, thanks a lot. when we come back, one of the power players at the consumer electronics show, an interview with the ceo of samsung electronics. i always say be the man with the plan

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flashy unveils and well-known celebrities. samsung was holding an event to showcase its latest gadgets. they introduced michael bay the hollywood director behind "transnorme "transnormers" and other action blockbusters but when his teleprompter didn't work properly, things blew up. >> what i try to do as a director, i try to -- ah. the type is all off. sorry, but i'll just wing this. excuse me, i'm sorry. i'm sorry. >> okay. ladies and gentlemen, let's thank michael bay for joining us. >> of course, michael bay later went to his website and said, wow, i just embarrassed myself as ces. he stepped on the vp's line in the prompter and the prompter got confused and he decided he'd be better off offstage. >> some people have argued this was a plotted plan to get some publicity in a crowded space. >> just like that horrible ad

that maybe it was so bad that people remember it and they want to buy samsung. if this had happened to apple i would have to cut my price tag and point out the fact that it's now past -- it's not just a death crawl. it's some sort of saturn hits mars cross. >> polar vortex. >> polar vortex. >> cross. >> yes, chart. chart week? >> double helix. >> chart week? no. >> shark week. >> t-mobile ceo john ledger worked his way into a party that at&t was throwing for its developers at the palms hotel. he said he wasn't looking to make a scene insisting he wanted to see the party's headline act and at&t didn't agree asking hotel security to have him removed. ledger was wearing his familiar t-mobile logo shirt under a leather jacket which i've never seen him in anything else.

>> i remember him from the first global crossing. this guy has nine lives and this life has really been a winner. >> he's the kind of leader you think a company like this perhaps needed at this particular time. >> resurgent. >> yes. willing to rally the troops. i remember the enthusiasm here when they went public through the merger. >> i love the guy. >> is there a good feeling for -- you can -- you can take from some clues but how much is he getting under at&t's skin? certainly some of their pricing decisions lately suggest that he has. >> that's the question. we saw it on friday, of course, and we wondered just how much of that was really a response to either a bad quarter at at&t. though many have dismissed that, but the competition no doubt is significant and seems to be growing which then when you go to this consolidation story which we're all going to be talking about i'm sure this year in wireless, you do start to wonder how is it that the regulators would allow that to occur given that strong

competition that t-mobile seems to be bringing to the likes of at&t. >> and bank of america says that sprint will not buy t-mobile. i always wonder how do the analysts know. >> they don't. >> you mean that may not be? >> no, they don't know that at all, i can promise you. i mean, it may not happen, but i can -- i feel virtually assured that an analyst would not know one way or the other. >> ever since the initial bid and fall. i've been at conferences where these guys have slighted each other. this is not, you know, a collegial acc versus s.e.c. game. this is much more of a kind of a -- fight club. >> they got a lot of spectrum from at&t. when that deal was stopped by the department of justice, not to mention the slug of money, they've just gone out and bought verizon spectrum. yesterday we saw it the 700 megahertz spectrum and they've got plenty of spectrum at t-mo but the question is how long can they continue to price very

aggressively and whether they hit a wall at some point. >> let's not forget t-mo and sprint have been remarkable stocks. >> and finally tonight the ceo of yahoo! will give the keynote at ces. >> alibaba, how big? >> i'll raise you and go to 200. not on the ipo, but $200. >> you said no one has used that figure. i've heard $150 billion and not $200. >> why not? the growth rate is incredible. >> off of a large base. >> alibaba will be the biggest ipo ever. >> it's unclear if it will be the first quarter of this year but we're still hearing the first half of this year. >> i've been recommending yahoo! continuously because of alibaba because that's really what you're buying. >> the dow for a moment was up triple digits. the first triple digit gain of

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we'll start with alergen. >> rbc recommends it, the big eye drug, the patent issues will not be a problem. >> goldman cuts allianz data. >> i disagree. had them on "mad money" not long ago. i think business is great. >> price target up for priceline. >> fits into the zillow issue and it fits into yelp. this is a stock that's done nothing lately and i think you should buy it. >> morgan stanley ups mgm. >> had a lot of upgrades, i like wind better but it's terrific. >> perigo. >> people don't understand it and they have a change in the basis because they're in ireland. it's the value play of the group. >> and then goldman, capital one, conviction buy.

>> do you know what the credit card companies make more money on the yield curve i agree with the call. >> you did diamonds in the rough last night. what's tonight? >> we have worthington industries, there's a boom in steel going on. no one is talking about steel, scrap has come down. u.s. steel has done very well. do you know what? this is basic america and they do a lot of the lpg tanks and they do nat tanks and for those of you that believe natural gas is the surface fuel, this is the play. >> all right. we'll look for it tonight. let's look at this video from northern france coming in. a couple of managers are actually held overnight in a practice been known as boss napping. goodyear has been trying to close this plant for a while now and the workers are demanding more severance but apparently the managers have been freed. i guess we don't have the video but it was turning into a pretty tense situation. >> france is really tough to get out of when you're there. alcoa pulled out of italy one in italy and spain and they were able to do that which is

remarkable. i think closing a plant in france is almost sacrosanct. >> almost impossible. we'll see you tonight, jim. "mad money" 6:00 and 11:00 p.m. eastern time. coming up next, we'll have an interview with samsung electronics and former congressman ron paul on all things fed and, of course, the new fed chairman janet yellen in just a moment. ♪ yeah, he's clean, boss. now listen to me, duck. i have an associate that met with, uh, an unfortunate accident. while he's been incapacitated, somebody's been paying him cash. now, is this your doing? aflac? now, if i met with some such accident, would aflac pay me? ♪ nice. this is your stop. [ male announcer ] find out what aflac can do for you and your family... aflac? [ male announcer ] ...at aflac.com. of the dusty basement at 1406 35th street the old dining table at 25th and hoffman.

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good morning. "squawk on the street." a strange story happening in france. two goodyear bosses were being held captive by their own employees inside a factory in northern france. we're now hearing that those bosses have been released. we want to go over to cnbc's stephanie pedrozi, what's going on there? >> reporter: good morning. they've been released by the police about 30 minutes ago and angry workers did not oppose the police, but they still want to negotiate. they didn't have the choice after the management of goodyear france decided not to start negotiations as long as the two

men were held by angry workers. it's not clear what these workers are planning now. they say they will not leave the factory and will continue the battle until they will manage to start negotiations with the management of goodyear france. they are not trying to block the closure of this factory anymore but are trying to negotiate the best package they can for the 1,200 people who are going to lose their job because this factory behind me is going to shut down, to close, very shortly. under the french law each worker will receive 25,000 euros, but union would like to raise this amount to at least 80,000 euros. it's actually what's been offered first by the management of goodyear two years ago when the company was proposing departure, a restructuring plan on a voluntary basis, but at the time the unions were rejecting this plan and they now want to go back to the table of negotiations after they released half an hour ago the two managers that were kept off stage nearly 30 hours. over to you. >> all right. you can see the media circus,

stefan, thank you for bringing us the live report as the action is unfolding there in france. samsung meantime is a big story today. the tech giant posting its first profit decline since the third quarter of 2011. this as the company announces a new 12-inch tablet at the consumer electronics show and making a push to the connected home with tvs and dishwashers talking to each other via the web. we spoke with the samsung electronics ceo. >> samsung might be the most important home electronics company in the world now. and with tv innovation we see so much of the technology moving toward software and services. in the past google tried with google tv. to launch those kinds of software and services and get

people interested. it didn't work. what will it take to make that work? will samsung be able to do it? >> translator: the basic characteristic for a tv is that it provides video content to the viewers. in order to do that you need a bigger screen and very high picture quality. what consumers like to do in front of the tv is to share the content and the experience. so, what's important is that sharing the experience is easy to do. in order to do that we need better software, so with the tvs we provide, we want to provide consumers with bigger screens and better technology so that it's easier to use. >> how do you as samsung with two different electronics divisions, one more weighted towards smartphones, tablets, pcs, the other more in tv and appliances, how do you work together effectively? because more and more these different groups of devices need

each other. they need to communicate really well. so how do you make sure you don't trip over each other as you try to race toward the future? >> translator: samsung electronics is divided into two large divisions. we have the hardware and the software. and we also have another division which is an overarching division called the multimedia solutions center which makes sure everyone gets to work together. >> do you feel free as you run the tv and appliances division to make your products work with non-samsung phones and tablets? if you wanted to make the refrigerators and washer, dryers and tvs work with iphones or work with motorola phones, would that be a problem? >> translator: we do have a basic tragedy where we build an

ecosystem with samsung products but eventually we want an open ecosystems where others can participate. it will be challenging but that is our ultimate goal. >> and our john ford joins us live from las vegas. >> reporter: good morning, carl. >> your thoughts on samsung and their execution and ambitions? >> reporter: b.k. yoon recently elevated, a top executive, he was more comfortable speaking korean, very rarely speaks to u.s. media. we talked about apple and how he expects to go up against them should they get into the tv market which a lot of us expect. we talked about sony, whether they can come back. he sounded confident but note when he talked about software, he talked about samsung leading in software not relying so much on a player like google which we know tried with google tv, hasn't really caught on. i also asked him about designing more products for the home. he wants to make a big push with washer dryers, with refrigerators, product

categories that traditionally have been dominanted by women in terms of the lead buyer. where they've been strong, they've had a few missteps some would say marketingwise with marketing to women and i asked him how they planned to do that. he talked about focus groups and whatnot, he talked about what happened with michael bay and the presentation on stage and he flubbed a line and got flustered and walked off, this will require a different level and preparation for samsung to be more broadly successful in this electronics market, but the ambition and success has been big up to this point. >> we talked for a long time how they are sort of getting used to the north american way of man t marketing which is different from the united states and korea. have they founded to the michael bay story in terms of background? >> reporter: i haven't talked to them. michael bay did a mea culpa and

got ahead of the prompter and the prompter operator got confused and he said it was my fault i got off the script and i wasn't good at ad-libbing. it answered a couple of questions because samsung is known to tightly control their presentations and not necessarily finalize them until the last minute so there's a pretty good chance they didn't practice that a whole lot before they did it. maybe they will in the future. >> john, when you talk about samsung, it makes me think of apple. i know apple isn't there, but certainly its presence is felt at ces. what's the dynamic around apple especially the samsung versus apple? >> reporter: there is no love lost between these two companies. it's one of the rare companies in the modern era that steve jobs pretty much specifically called out before he passed away. at one press conference it was the antenna gate press conference, he kind of lashed out a bit, hey, would you rather a korean company kind of take over this market, cut us some slack here. so, he was frustrated with a lot of the things that samsung was able to do.

they've been able to follow apple very quickly in some of these markets, some would say copy them and samsung lately has done a lot of things that apple hasn't been able to do. this appliance move from samsung, the ecosystem they're trying to create throughout a smart home is an area they could potentially leapfrog apple because they have all of that capital investment. they have a brand in appliances, very strong revenues, we'll have to see if they have the marketing insight, the innovation insight to pull it off. >> we certainly know they're a giant and that people have underestimated them in the past. jon, great interview, look forward to a lot more today. our jon fortt at ces in las vegas. jpmorgan is agreeing to a major settlement, paying $1.7 billion to settle criminal charges over bernie madoff's massive ponzi scheme. scott cohen is live in new york with details on that. good morning. >> reporter: good morning. the bank is learning the consequences of dealing with

bernie madoff. as you said $1.7 billion in fines for the justice department another $300 million to regulators for what the doj is calling willful violations of the bank secrecy act. and essentially not filing suspicious activity reports when they knew that there was an issue, not having basic controls in place in order to -- in order to catch this massive ponzi scheme. the bank is now out with a statement that puts a little bit of a softer touch on it. we recognize we could have done a better job pulling together various pieces of information and concerns about madoff from different parts of the bank over time. we do not believe that any jpmorgan chase employee knowingly assisted madoff's ponzi scheme. madoff's scheme was an unprecedented and widespread fraud that deceived thousands including us and caused many people to suffer substantial losses. many believe that the bank itself may have actually suffered losses but not to the

tune of $1.7 billion that it's paying. and as you heard in the statement no individuals are being charged here. no one even losing their job. the u.s. attorney has a news conference scheduled for this afternoon. we'll bring it to you live. back to you. >> scott cohn staying warm i hope in lower manhattan. thanks a lot. janet yellen's confirmation marks the beginning to a long road ahead for the first woman chair of the federal bank. former gop presidential candidate ron paul has always been highly critical of the fed. and he's host of the ron paul channel and he joins us this morning from texas. congressman, good to have you back. good morning. >> good morning. nice to be with you. >> 56-26 some of the votes were missed because of the weather. difficult to get back to the hill. but what kind of endorsement do you think that sends? >> well, it sounds like it's a pretty decent margin. but if everybody had been there, it might have been a little closer, but compared to other

nominations and confirmations, it wasn't real strong. so, there are some reservations. and i think that's a reflection of the precarious nature of our economy. so, i think everybody's going to be a little bit worried about what will come in the future. and i think it's more -- they should have more of a concern about the system and the federal reserve policies in itself rather than just one individual. i think it's a shame that we've gotten to the point in this country that the markets just hang on every second of everything an individual like the chairman will say. it just is totally bewildering. it's so far removed from a free market economy when you have market rates of interest and you don't have one individual trying to direct an entire economy. so, identify thi wrsi think thal problem is. >> you talk about the impact the fed policy has on the market. specifically what distortions are you seeing out there now? >> i think they've started rather early. we've had 100 years of

distortions, you know, it's ups and downs. they create the boom periods. they create the bad periods. you know, they prolonged the depression which even bernanke agreed that was the case. and the inflation and the problems of the '70s and this massive bubble, the housing bubble, it doesn't come out of the thin air. the free market economists predicted it was there. and we've had this correction that hasn't really corrected anything yet. they're just hanging on threads and there's only one tool that yellin or anybody else will have and that's also lower interest rate which means print more money and how can lower interest rates when they're zero percent? >> i thought you might be happier with the federal reserve now that they've embarked on tapering or scaling back some of the unprecedented qe in the system. certainly it's strengthening the dollar, i know you like to see that. >> if that had been a serious move, you know, the stocks probably would go down, you know, in the last year every time there was a hint that they

might taper, the stocks went down. this time the stocks went up because there was strong reassurance no matter how much we taper, we will never raise the interest rates. how do you keep interest rates low? and that is by buying stuff and securities and treasury, so they're always going to make the money free to the bankers so the reassurance was so powerful that it xen stated for the threat that they might be tightening. they kept saying we're not tightening. we'll taper a little bit on the long-term securities but we're going to take care of you. we're going to keep interest rates low and, of course, it's done a lot of good on the short run for the markets and i think this is what it was designed for. they hope, i'm sure they're sincere, they hope the stock market will translate into a healthy economy. i don't happen to believe that and most of the people who are unemployed now and the lower one-third of the population, they don't believe it either. >> she's the first democrat to be chair since volcker and she did win the hearts of a few

republicans, 11 voted in favor. i wonder if you think they always say only nixon can go to china. is yellen the one to bring the balance sheet back to some historical average? >> well, you know, it won't happen, republican or democrat. anybody's that's in charge of the federal reserve is going to endorse the whole principle of inflation and managing the economy. if you really were serious, i mean, in a way, you might compare it to volcker. he did some tough things. in the '70s to clean up that mess. but it would be ironic if he did, because she happens to have expressed herself that she believes in the opposite. >> right. >> she is really an inflationist. so, i'd be really surprised. and besides, all this market has to do is say boo and there will be no more tapering and interest rates still stay at zero until the market overwhelms this

mismanagement of central management of the federal reserve. >> it's always good to get your insight. we'll see you next time. >> thanks a lot. carl, let's go back to stephen in france, more on the goodyear tire situation. we understand a fire has broken out? >> reporter: absolutely. workers are going to start -- to continue their conflict with the management of goodyear. they just set fires to very expensive tires. it's about $100,000 euros worth of tires that are currently burning just behind me. it really shows they're not going to give up. they still want the management to open negotiations on the severance pay. how much money each individual worker will get after the shutdown of this factory. currently under the french law they will receive 25,000 euros each, but unions would like to raise this amount considerably and would like to raise it to at least 80,000 euros for each of the worker, each of the 1250 people who are going to lose

their job. after being patient for more than 24 hours, the french authorities decided to stop the boss-napping situation in france. two managers were held offstage by angry workers since yesterday morning. the head of production and the head of human resources were held off stages by angry workers. they left about 45 minutes ago, protected by the police. the angry workers did not opposed to the police, but clearly lawyer not going in th going to stop the battle as one of them told me a few minutes ago and just for now they lighted up a fire, very expensive fire behind me here, about 100 miles north of paris. over you to, sara. >> no kidding. we'll continue to monitor that one, thanks for joining us from france outside that goodyear tire factory. up next on "squawk on the street," millions of americans experiencing a deep freeze today. frigid temperatures hitting anywhere from atlanta to minnesota. just how cold is it going to

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record-setting cold hitting as many as 187 million americans today. meteorologists are calling it the polar vortex. the weather channel's julie martin is live in atlanta where it's only 7 degrees outside. julie, pretty unusual for atlanta. >> reporter: very unusual, in fact, we saw 6 this morning in atlanta, and that is the coldest weather we've seen here in 18

years. windchills are still below zero. as you can imagine people here are kind of just shaking their heads at this bitter, bitter cold. you know, you mentioned the polar vortex which is now trending on twitter, by the way, and we are talking about every state in the country experiencing freezing temperatures today. that is pretty unprecedented. as far as atlanta is concerned, the city opened a temporary shelter. they say hundreds of people had to be transported overnight to existing shelters just to stay warm. school is out for the kids today, not only here but throughout the deep south and we're not expecting much of a warm-up in the next 24 hours here or elsewhere. in fact, it will be about thursday before we get above freezing here in the atlanta area, so it is going to be a long haul. and as you can imagine, i bet the run for retail sales for winter jackets and winter gear will be spiking even here in the deep south, carl? >> julie, you got that right.

something we've talked about all morning long. thank you so much. >> let's get back to scott cohn who has more breaking news on jpmorgan and madoff, scott? >> reporter: and, carl, jpmorgan in this mode of basically cleaning the slate, one more step here. we've told you about the 1.7ed with settlement with the justice department in a settlement along that with the regulators. but now cnbc has learned that jpmorgan is settling with irving picard, the trustee who has been gathering funds for the victims to the tune of about $543 million. that settlement according to a source to be announced later today. no word on this from picard. remember, that he sued jpmorgan back in 2010 for $6 billion claiming that the bank was at the very center of the madoff fraud. and a lot of those allegations found their way into the

criminal information that will be filed today by prosecutors. why would picard be settling for so much less than $6 billion? well, he's had a tough time with this case in court. it has been -- a number of the -- pardon me. it is cold out here. a number of the claims have been dismissed and he was appealing to the u.s. supreme court. this is a bit more of a sure thing, $543 million to go to the madoff victims on top of about $2 billion that jpmorgan will pay to the feds. carl, back to you. >> scott, it's david. sorry to make you talk a little bit more, but just refresh me. picard is still going after, but he's towards the end of this at this point five years after the fraud, isn't he, in terms of collecting everything he's tried to collect from various people and firms that he's said helped or at least did not stand up and stop mr. madoff? >> reporter: right. and he's not done yet. but he's collected, david, a little more than 50 cents on the

dollar which is very good for a ponzi scheme of any magnitude, let alone the magnitude of the madoff case. and the hope may very well be by setting with jpmorgan it will get some of the other banks to come forward and some of the feeder funds he's still doing battle with and basically get more money to the victims quickly. but they have done fairly well thus far with about 50 cents on the dollar recovered or about $9.5 billion, that's more than just about anybody expected going into this. >> scott cohn, get back in the truck as we like to say in tv. thank you so much for your reporting. the great scott cohn in lower manhattan. when we come back u.s. vms ex-sac trader matthew martoma and what the prosecutors hope to gain. s&p up 11, the best gain since december 18th. back in a meant.

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ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your doctor if humira can work for you. this is humira at work. opening statements in the trial for ex-sac trader matthew martoma could begin as early as this afternoon in a downtown manhattan courtroom. kay kelly is bundled up outside

the courthouse with the details, kate? >> reporter: thanks so much, sara. i'm standing in front of the federal courthouse where a jury selection in the u.s. versus martoma is now under way. started around 10:00 a.m. with a questionnaire to the jurors. we're told, though, that they will probably be sent home after they fill it out. we may not see the sitting jury until tomorrow morning and opening arguments in all likelihood won't be until tomorrow at the earliest. matthew martoma and hils wife rosemary entering court putting on a brave face. the government's insider trading case against martoma is regarded to be so powerful. he stands accused of participating in and being the engineer of the largest set of ill gotten gains in an insider trading case ever $276 million in total and he faces three separate counts one of conspiracy to commit securities fraud and two of securities fraud. the u.s. attorney for the southern district of manhattan quarterbacking this case on the

prosecutorial side has a formidable record to beat. so far he's won 78 insider trading cases this is since 2009 alone. he hasn't lost a single one yet. there are several still pending, however. most recently very late last year before the holidays, his office managed to secure the conviction of michael steinberg, carl, who was a veteran trader at sac also accused of insider trading in several technology stocks in 2008. so, a tough road ahead potentially for martoma. >> kate, it's david. yeah, you mentioned steinberg, of course, which many thought was the toughest case for the government to prove and yet they succeeded. any sense as to what martoma is thinking here actually going to trial with case in which the government has the key witness who is the doctor that he allegedly paid off? >> reporter: yeah, i mean, they have two cooperating witnesses, david, and i'm potentially expecting to see both of them on the stand, but you're right, the witness who allegedly gave him the report containing the nonpublic information about elan

and wyeth back in 2008 is expected to take the stand and has been cooperating all along. a tough case. the best explanation i've heard from a lawyer about why he's not cooperating, of course, that he's innocent, he's not the personality type to be a snitch, it takes a certain personality to go all-in like that, so maybe, david, he's not built that way. he was built as someone who is going to go another route. >> all right. be interesting to watch, kate. stay warm. >> reporter: all right. thank you. meantime, law enforcement sources in new york say over 100 suspects including police officers and firefighters are being charged in the large-scale scheme to defraud social security. andrea day has all the details of that in new york. >> reporter: good morning, the sources say the scam was going on for years before it was finally shot down. i want you to take a look at

footage we shot moments ago. new york city retired cops and firefighters all of them charged with ripping off the social security disability fund. all faked stress-related illness due to 911 to rake in cash. sources are telling us there are many more to come in the coming weeks. sources say that the guys claimed they could not work but one was found as a helicopter pilot. another was caught on camera jet skiing. and just about an hour ago, four men surrendered at the manhattan da's office, they are accused of being the ringleaders in this case. one of them raymond lavali, a longtime attorney allegedly worked at the nassau county da's office. i want to read to you exactly what these ringleaders apparently coached all these retired cops and firefighters. i want to read to you exactly what they told them to say. they were telling them to say, i nap on and off all day. i have the tv on all day to keep me company.

my family is always after me about my grooming. i'm unable to participate in any kind of work activity at all. again, more than 100 retired new york city cops and firefighters being charged in this large-scale case. we'll have much for you as the day goes on. >> andrea, thank you for that. also want to get to scott wapner, breaking news on herbal life. >> we're keeping our eyes on herbal life today along with new skin and some of the other weight loss companies. the ftv is holding a news event at 11:00 eastern time. they said they would do it last week where they were expected to have a crackdown on marketing practices related to weight loss companies. new skin and herbal life sold off on the news last week. what i can tell you according to my sources the ftc will announce enforcement actions, however no publicly traded company will be mentioned today at 11:00 by the ftc. again, the most important news is no publicly traded company,

not herbal life, not new skin, none of the other publicly traded weight loss companies will be singled out today by the ftc. but what i'm told the cases that will be announced are settlements that do include tens of millions of dollars but herbal life is not involved in that. you can see the stock is rallying a bit on the news that was already up 1.6% or thereabouts and you can see the stock is getting a bounce off the report here that herbal life or any other publicly traded company will be singled out by the ftc. >> thanks for brings us the breaking headlines on herbal life moving the stock. in case you haven't heard, it is brutal outside. it feels like negative 30 degrees in flint, michigan, right now. yes, negative 30. so, what kind of effect does that temperature have on a city's infrastructure? and daily life. we'll talk to the mayor of flint right after the break. [ male announcer ] here's a question for you:

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the stock hitting an all-time high now up more than 53% over the past 12 months. carl, it has been a moon shot. >> you got that right. meantime, large parts of the u.s. are beyond freezing right now as a blast of dangerously cold polar air hits the midwest and moves toward the east and the south and caught in the middle of the arctic cold is flint, michigan, where the temperature feels like minus 30 right now. on the cnbc news line from the frozen city of flint is the mayor dayne walling. thanks for being with us. >> thanks so much from michigan here. >> i was born in midland not too far from you, but i never lived through temperatures like this. how has it affected the city? >> it is tough. michigan is used to midwest cold, but not this arctic blast. so, we have had to focus our public safety and our infrastructure crews, you know, on the conditions that the weather's causing. we've had to stagger our road crews so that we're constantly making progress on the snow

removal. it's not just the cold. we also here in flint got 16 inches of snow, which is more than we've had in about 40 years. >> i'm trying to think of all the services you have to manage, not just the city -- not just the custodial nuts and bolts of running a city, but fire, police, streets and san. which has been the toughest so far? >> well, it's definitely the roads because of the combination of the snow and then the cold weather. but we also have our fire department out communicating with residents, helping to dig out fire hydrants. you hope you don't need it, but if you do, then you can't have a fire hydrant buried under a snowbank in this kind of weather. so, there are a lot of things that this kind of weather does affect. >> mr. mayor, we've seen flint's economic struggles, been well documented over the years. public finances in dire straits. how much harder does that situation make deploying these kind of resources during the storm? >> we knew this was coming and have a great management team and

a lot of hard workers, so we're doing pretty well given the circumstances. it is michigan. we know we have tough weather in the winter, so this is harder than usual, where we're going to have to monitor things in the coming days. it looks like we'll get some warmer temperatures that will help us thaw out, because the longer these cold temperatures go on, the more strain it puts on the water system and the road system. and there are costs associated with that. >> you know, being a business network, we're trying to find the economic impact on all of this. there's actually been some research that argues the jobs number on friday may be a bit soft because it's affecting people's ability to go out and land a job. have you told employees to stay home? what percentage of the city's workforce is actually in? >> we only have a percentage of our office workers that are reporting in. we have a liberal leave-type policy in place so individuals who can't get in to work are able to stay home and take unscheduled leave.

but a large percentage of our workforce is the 24-hour crews with public safety and roads and the water service center with utilities. so, we're definitely over a majority of our workforce is still in, but the schools are closed. a lot of families are just staying home, and i know our small businesses are feeling that impact. >> well, do you feel the impact on a fiscal level, the spending on the cleanup and on deploying some of these resources? is that going to make things worse for you? >> as long as we get the warm weather tomorrow, then these couple days of overtime won't be an undue burden. we always plan for a number of cold weather events over the course of the winter. so, as long as the weather snaps the way it's predicted tomorrow, then we're going to be okay. >> mayor walling, we'll be thinking of you and all 200 million people affected by all this. thanks for your time. >> all right, thank you. those temperatures unbelievable. all right, coming up next,

millions of dollars are exchanging hands in atlanta today in the first major foreclosure auction of the year. people are camped out literally in the cold outside of the courthouse for their chance at these properties. and before we go to break, check out the markets. got a triple-digit move on the dow. breaking the losing streak. we'll be right back. mine was earned orbiting the moon in 1971. afghanistan, in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

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take a look at two well-known names we talk about a lot, at&t and tesla, the two companies announcing they are teaming up. at&t is going to wire current and future models of tesla vehicles in north america with high-speed wireless. we're talking things like engine diagnostics, internet radio, web browsing and live traffic and weather apparently accessible through a touch screen in the car that's about 17 inches across. also announcing what they're

calling the first of its kind connected car innovation center in atlanta which they're calling the at&t drive studio. we've talked for a long time about the battle of your living room becoming the battle for your car. and after gm and priceline.com the other day, here's round two. >> smart cars. it's a whole new revolution. you watch the companies involved in the deals a while agoferrari announced a partnership with apple, there have been other examples as well. >> yeah, the back seat is going to be a big battle in terms of content providers also, full-motion video being provided over high speed. is here. >> a buddy said i wanted to buy a car but it's incompatible with my phone. the first major foreclosure auction of the year takes place in atlanta today. millions of dollars are expected to be exchanged for properties. diana olick is live with more. >> reporter: it was 7 degrees when the tents started going up and the bidders began arriving. as you can see there are small auctions going on as we speak. most of them run by auction.com

but also a lot of trustees here selling the properties and this is not just individual investors. these folks may look just like regular folks but these are representatives of the major funds. we've got american homes for rent. we've got key properties and, of course, the largest representatives here are from blackstone's invitation homes. now, the bidding began right on dot at 10:00. you have close to 100 properties will be sold here today. properties ranging anywhere from $20,000 to over $300,000 the first property actually sold for $160,000. we've got a new report actually out today from core logic which shows the top markets for rental returns and they are changing. they are number one, chicago, tampa, orlando, right here in atlanta, and indianapolis. so, what's really going on is that the trade is moving from west to east. unfortunately from warmer locales like phoenix and las vegas, california, here to atlanta and charlotte. and we expect many, many

millions of dollars, as you said, to change hands right here today in atlanta. back to you. >> all right, a big story people gathering behind you, diana olick, thank you for that. when we come back senator tom carper tells us what government's role should be in currencies like bitcoin. he's been looking in to this and he'll join us after the break. i always say be the man with the plan but with less energy, moodiness, and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment

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comcastnbcuniversal. tivo a global leader in the advanced television entertainment market demonstrating a network dvr prototype in the ces show in las vegas. joining us first on cnbc, tom rogers tivo's president and ceo. tom, always good to have you. we've been talking about tivo for years, of course, and the forerunner of technologies embedded in people's living rooms and all over the place. but as smart tvs proliferate, what is the future for this company that you've been able to continually transform to sort of keep ahead when i can just hit the internet and get my netflix and get my amazon prime and anything else i need, why do i still need tivo? >> great question, dave. great to be here. look, with all this innovation that this show puts forward for

everyone, this is really a game of catch-up for tv. and what i mean by that is television's got to catch up to where the music world is. you know as all music consumers know, you can get any content to any device, streamed from the cloud wherever you you can stream your netflix and you can stream hulu and amazon but there's a world of television that is not incorporated within those services. and what tivo does enable you to effectively transform all of your television into that kind of future world where you want to stream to other devices. you want to be able to get at your favorite shows that may well not be on a netflix and hulu. what we give you the ability to do is use tivo as your set box. it brings in all your linear channels. all of your internet streaming services like netflix, but

allowing you to record all of your regular television and turn that into streams to send it to your smartphone, send it to your tablet. and what we're finding along tivo subscribers is those that have the choice to extreme recorded television meaning the stuff coming immediately off their linear traditional channels, 76% of what they choose to stream, even though they have netflix, they have hulu, they have youtube, et cetera, is that recorded tv. when we demonstrate our cloud dvr which has really gotten some great embrace from showing it to operators overseas and we're demonstrating it here in las vegas today, what we're enabling people to do is effectively broaden their streaming universe, to do what music has done for a while and give people the ability to get any song anywhere they are to their device. we're going to do that with tv in a cloud dvr gives us the ability to do that. >> now, tom, let me just stop

you for a second. i want to understand the relationship between tivo and provider here namely the cable provider. is that where you're going to maintain the relationship at this point for this cloud-based product? 12k3w >> whattivo has been is a cable for tivo box. for having a much better, more robust way to get television to that television set they've invested a couple thousand dollars in. and with tivo you get the best way to watch it. and what cable operators started doing a few years ago is coming to us and saying, hey, we can build that right in to our set top box capability and use tivo as a branded service to take advanced television to our subscribers. now we have the leadership position in providing advanced tv to cable operators here in the united states where we serve

ten of the top 20 msos overseas where we serve a number of cable operators also. so, yes, very much working with cable operators who we still believe because they've invested so heavily in their broadband pipe and internet based streaming certainly going to be a key to the television world in the future and cable operators have invested heavily in that pipe along with the linear television they bring today, we think they provide a pivotal role to really bring advanced television to the world. >> tom, finally, you guys are holding a tv bing nlg viewing world, how did that go? >> well, we're trying to get you over there, day, because we understand you're a hell of a binger. sorry that you weren't able to participant. it's in about the 16th hour. the world record is 86 hours. we got three bingers in our booth with special permission to be here around the clock through the convention to try to beat that 86-hour record. it's sanctioned by guinness world book. we've got observer there's. emt there.

interestingly, they are watching recorded television as choice as the way they are binging. so we'll see how it goes. but we've got three very dedicated television viewers going for the world record. >> i'm glatd glad you got emt there, too. tom, appreciate your time. tom rogers from tivo. >> thanks for having me back. when we return, should it be regulat regulated? tom carper is witness to a vote going on right now recording jobless benefits. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here

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happening right now, lawmakers on capitol hill are voting on whether to extend the unemployment benefits. we want to go straight over there and talk to senator tom carper of delaware. he's head of the homeland security and talking about bitcoin. but first, the developing story. are the senator democrats, senator, going to get the votes they need to extend unemployment benefits to more than a million americans? >> as you know, to proceed to the legislation we need 60 votes for -- to make that move. we have 55 democrats. we need at least five republicans. we'll see. my guess is that we'll get to five or six republicans that we need. i think they're willing to

discuss the debate the issue. may not be willing to vote at this point in time unless there's some pay for this recognize it. but i hope we get to 60 votes. there are a lot of people, particularly in some states where the unemployment rates is 10% and higher, they frankly can't find a job. they need some help. this is one of the best ways to continue to stimulate the economy. >> no one wants to look heartless but when you have gdp running two to three, maybe better this year, who knows. when does the emergency, so to speak, end? >> i think the thing the of do is to let the extension end for states with low unemployment and those states where the unemployment rate approaches or exceeds double digit levels we want to continue to have a longer level of support for those people. >> we want to also come in here to bitcoin because your committee of home land security and government affairs has been doing digging on this topic of virtual currency. you held a number of

investigations and hearings. so far, what have you found? >> next to nothing about bitcoins and virtual currencies, 6, 12 months ago. turns out the federal agency, treasury department, irs, justice department, homeland security, the consume proer tekz bureau, they're on top of it. i was pleasantly surprised to see that they are xun indicating with each one, collaborating with one another. one of the themes that merged was basically this, when the internet was young people said, well, who cares about that? some people say, potential. some say it has downside potential with drug transactions and trafficking of money laundering. all kinds of downsides but i think the early message on the internet was let's not kill the baby in the cradle. and i think there's some upside here for bitcoin, virtual currency. it's not all together clear. we know there's bad stuff that can happen through the use of virtual currencies like bitcoin but also good things can happen to enhance transactions between sellers and buyers, can help

internet and national trade, lower the cost of transactions. so i think the theme of the merchants that i'm hearing is less -- keep on eye on the bad stuff, try to tach it down, find the lemg lags we need to tamp it down. that's what we're doing. >> i'm surprised to hear you outlining the benefits of bitcoin and how it can help the international monetary system and trade system. in terms of the bad stuff, the illegal activity, how preventable is it for bitcoin's future and how long before it becomes real legitimate mainstream currency? >> i don't know if it's ever going to become a legitimate mainstream currency. what we know is that it's not something we should do, do it an our own peril. there are bad things that can happen. we have asked the fbi, we asked the irs, what do we need to be doing to make sure those bad things don't happen. they told us right now we don't need legislation. they think they have the powers they need to go after the bad stuff if meanwhile, let's see what kind of good can flow from

the virtual currencys like the bitcoin. >> we know you're going to continue to look into it. thanks for joining us this morning. >> thanks. still to come this morning, walt mossberg is going to pick out the top technology at the consumer show. wait until you see what he selected. but first, the next hour of "squawk on the street" starts now. good morning. we are live here at post nine at the new york stock exchange. let's get a check on markets. triple digit gain for the dow jones industrial average. the dow up 122 points. s&p and nasdaq rising as well. shares of netflix are slipping this morning. morgan stanley downgrading the stop stock to underweight due to increased competition from hulu. hbo go and amazon prime. and from one downgrade to another heerks citi downgrading shares of michael kors to

neutral. tech giant samsung making a major splash at the consumer electronic show unveiling a giant 105-inch curved screen tv. what does the future look like for that company? more of our exclusive interview with the company's ceo in a moment. speaking of the consumer electronic show, what cool gadgets should you be looking at this year? ross mossberg will show them to us later this hour. record cold weather sweeping across the country and what scientists are call that pole particular vortex. we'll bring you a live look at the conditions on the ground and go behind the science of extreme cold with, who else, but bill nye the science guy. >> i'm looking forward to that. first, from larger tablets to larger higher resolution television. samsung featuring several new products here but in each category samsung still faces stiff competition from, of course, chief rival apple. john sat down with an exclusive

interview with samsung electronic's ceo to talk about just that. >> we expect that in tvs, as we see these innovations, samsung will once again come head to head with apple because they have said the tv is an area that's were interesting to them. both companies have done well. why should consumers expect samsung to win? why would consumers invest in samsung's technology now instead of waiting to see what apple might come up with? >> translator: samsung has been number one globally in the tv industry for the last eight years. i think that samsung knows the consumers the best. we also have the largest green sizes, the highest picture quality, now we also have the curved screen so we're closer to our consumers than our competitors. and i think those are the main reasons why the customers are going to choose samsung. >> what about sony?

costs are rise, trying very hard to turn around sony's tv business. vn is helping a little now with exports. some would say a lot. can sony still come back in the tv business and give you trouble? >> translator: i'm sure it can do well but it's very difficult for me to say specific things about our competitors. >> people are worried that there's a slowdown for sales at the high end of the market. not just in smartphones, but in other areas, and that in certain emerging markets growth markets, the middle class isn't growing like it used to. what do you see happening in those areas and how does that affect you're out look on sales? >> translator: i think that it's when markets are more difficult that we are given the greater

opportunities. for the high-end market we have an opportunity to devil even further into what consumers want. same for the middle class. so in these difficult times we are given an opportunity to differentiate ourselves from our competition. we always try to think very positively. >> a snippet from the interview. john joins us now in las vegas. great interview, john. it comes at a time when samsung saw its first operating profit decline in years. so are the big new fancy schmancy products that they have on show there going to be big enough to turn it around and almost to compete against apple? >> i think it will take a while. it's interesting you hear a mix of confidence there saying we're so close to the consumer, particularly in tvs, we think we will be out to outsmart apple. he was kind of saying i don't think sony will be able to catch up without saying it. and also acknowledging some of the macro challenges at the same time. what samsung is really trying to do is something a lot of companies have tried to do.

not all successfully. take advantage of their success in mobile, the brand they've been able to build through good products and a lot of strong marketing and extend that into other areas, specifically more tvs and also the home appliance market. market research shows that people are more trading up. they want higher end appliances. samsung's brand is strong in that area. they've got good products. hoping they can pull more people into there. apple was able to do a successful transition from ipod to iphone and ipad but microsoft wasn't able to extend the pc dominance into mobile. we'll have to see if samsung was able to pull at apple or if they happen to pull at microsoft which they don't want to do in this case. >> talk to me about the south korean juan. it's been strong. i know that's been hurting samsung. >> well, you know, i am not exactly a currency buff. i'm a little bit more of a gear head. the juan didn't come up. i was proud of myself for mentioning the yen. that's about as far as i go. >> i was proud of that, too.

john, great interview with the ceo of samsung. >> always pulling the card. jpmorgan is agreeing to pay $1.7 billion to settle criminal charges over bernie madeoff's ponzi scheme. scott cohn is in new york with more details. good morning, scott. >> good morning, carl. that is just the start of it, $1.7 billion. as you know, jpmorgan was bernie madoff's primary bank for more than 20 years and now the bank is learning the true cost of con sorting with the biggest ponzi schemer of all time. $1.7 billion to the justice department. the vast majority of that will go to madoff victims. and in addition to that, about 300, $350 million to regulators including the office of the controller of the currency and then another about $500 million and change to private litigants. 325 of that going to irving

pickard, the trustee who sooud madoff in 2010, sued jpmorgan, that is, alleging the bank was co come police is it. they sued them for many more times than that. that will go away and more money will go towards the victims. as part of all of this and the settlement that's going to be announced today by the u.s. attorney here in new york is what's known as a deferred prosecution agreement. so charges will be filed against the bank. two counts of violating the bank's secrecy act but they will not be prosecuted as long as the bank essentially keeps its nose clean for the next couple of years. in a statement jpmorgan says we recognize we could have done a better job pulling together various pieces of information and concerns about madoff from different parts of the bank overtime. we do not believe that any jpmorgan chase employee knowinglies assisted madoff's ponzi scheme. madoff's scheme was an unprecedented and wide spread fraud that deceived thousands, including us, and caused many

people to suffer losses. no individuals from the bank will be implicated today. >> thank you. scott cohn. we do want to mention what's going on in washington. it does appear that we're going to see a passing of an extension of some of these unemployment benefits. john harwood is in washington with the latest on that. john, good morning. >> good morning, karlg. what we've just seen is a procedure vote in the senate that the senate decided, surprising to some people, by 60-37 vote that they're going to proceed with the debate on the extension of unemployment benefit. this does not mean that an extension is going to happen. you still have a political fight ahead. republicans insisting that if there is an extension which cost $25 billion over the coast of a year that that the offset with cuts elsewhere in the budget specifically they are talking about some republicans talking about cuts to obamacare which, of course, the democrats would never agree to. so we don't know whether this is actually going to lead to a deal on either a short-term or long

ever-term extension of pen fits but this is an unfolding process. the vote was scheduled to take place last night. clearly republicans were wavering on that. the vote took place this morning. you have five republicans voting 55, democrats to proceed with the base so we're going to see where this leads. >> we've been talking about the degree to can which there's an up a appetite for this extense in washington, john. as you pointed out, what turned, what changed? >> well, i still think that the -- an extension may not happen and that the appetite has diminished in a way that could prove decisive in the end. so we don't, again, we don't know the outcome of this when we get to the next phase. this just opens the senate floor debate. then republicans want to offer amendments that certainly many democrats are going to object to. but i think you do have -- you see the power of the argument against leaving people out in an economy that is recovering but not recovering as robustly as

many people wish to -- wish it to be. >> so one hurdle cleared, i guess, still though a question mark. john harwood -- the president will speak at 11:40 a.m. on this very subject later on today. let's go on to the weather now, carl, because of the brutal cold temperatures. over 4,000 flights this week were esktded. most of those coming from the midwest and northeast. so how long will it take for things to get back to normal and moving again? phil lebeau is live in chicago with more on that for us. phil, good morning. >> good morning. you know i think what we're going to see is it's going to take at least a couple more days for a couple of reasons. one, is weather is still impacting operations in the northeast, new york city airports as well as boston. it's going to take a couple of days for the cold front to go through there. 12,243 flights have been canceled over the last four days according to flight aware. compare that to the number we saw canceled during super storm sandy a couple years ago and we're it getting close to those numbers. by the way, more than 2500

canceled today. there are an average of 36,000 commercial flights a day. since 2010 the airlines have been under new rules in terms of extended delays, keeping people on the plane, on the tarmac, and the risk of fines from the d.o.t. well, since then, we've done some checking, the percentage of people sold, the airlines are going to be quicker to cancel, they're t no going to risk a fine, it's lower now than it was compared to 2001. my producer just called up some of the numbers and said, it may seem like more flights are being canceled but that's not the case in terms of overall percentage rates. look at shares of jetblue. jetblue, the stock has -- was under pressure yesterday because they canceled their flights from 5:00 yesterday through 10:00 this morning for the new york city airports as well as boston today. it's up fractionally. we have not got an update from jetblue yet regarding operations up in the northeast. my assumption is if they can get things starting back to normal, we should see them get

everything back up and running over the next couple of days. >> all right. thanks for the update on the major airlines. phil lebeau joining us from chicago. speaking of that record cold, how does a city function normally under these types of conditions? we'll ask the major of madison, wisconsin. right now somewhere in the neighborhood of negative 14 degrees. that's next. [ male announcer ] start the engine... and shift through all eight speeds of a transmission connected to more standard horsepower than its german competitors. and that is the moment that driving the lexus gs will shift your perception. this is the pursuit of perfection.

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relative to its peers. other winners here, tenet health care, st. jude which has been on a tear lately. mylan, wellspoint, all of them doing well in today's trading. the weather outside is really freaking cold. the so-called polar vortex spreading across the country bringing freezing temperatures that we haven't seen in about 20 years. nbc's katie is live in mexico, new york, on lake ontario. i'm sure, katie, it is absolutely frigid there.

>> i like how you say it's really freakin' cold. it is. it's so, so, so, so cold out here. it is zero degrees here in mexico, new york. unfortunately it's not the mexico down south and we're not on the beach drinking margaritas doing weather story there's. we are up here in the snow. windchills though are negative 20 or so. the wind gusts are coming at us around 35 or 40 miles an hour. it's let up a little bit since earlier this morning we were out here. but we're still getting hit every once in a while. i tried to take my hood off for this live shot but it's just way, way, way too cold out here. blizzard over down in buffalo. it's the first time sthaif had that since 1993. they've actually shut the thruway down there. a few exits, too worried about all the snow that's being accumulated from the system that's just passed over us a few minutes ago. it's a little to the north of us over in watertown coming off of

lake ontario. this is expected to get a few feet of snow once it's all said and done by wednesday morning. there is some accumulation here. we have seen it snowing all morning here in mexico but the winds are so strong. it's blowing the snow around. all said and done, a few feet of snow and it is very cold but the warm-up is coming. this pole particular vortex is getting out of here. it cannot come soon enough. guys? >> something tells me you're headed to the real mexico, katy, when the live shots are done. >> oh, yeah. >> thanks. that pole particular vortex is keeping most of the country in a deep freeze through wednesday. madison, wisconsin, is experiencing windchills in the 35 to 40 below range today. how does that impact day-to-day business? let's talk to major paul soglin. thanks or taking some time. >> thank you. >> have you been able to work through how much this is all going to cost you?

>> it's not going to be an exceptional price. most of the city is functioning. the public schools are closed but university of wisconsin is open. and most businesses are open. and all city services are pretty much on track as they would be on a normal day. the biggest burdens are from emergency responders and the water utility. water breaks, both under the streets and in basements, are our biggest concern right now. >> carl, i'm just looking at the temperature right now in madison, negative nine. last night, negative 16. mr. mayor, how dangerous is that for people to be outside? >> it is. simply because frostbite can set in on exposed skin within a matter of minutes. and for people who have got arterial problems, heart disease, the cold weather can cause contractions, restrict the flow of blood and that obviously can lead to a heart attack. but we're doing what we can.

we're staging buses, for example, at our transfer points so that people can actually wait in the buses rather than wait in the unheated shelters. >> you mention the water utility and the breaks. certainly anyone who owns the home in the midwest or northwest understands that. the emergency response, what kinds of things are happening? are these slips and falls? are these fires? >> fortunately, fire calls have been at a minimum. it's mostly distressed motorists who are obviously stuck in their cars which they can't get started as they slip off the road. and, you know, we're concerned then about their exposure for long periods of time in these subzero temperatures. >> we're watching the new new york mayor dealing with this in his first days in office. for you, what is exactly on your to do list as you deal with the city so disrupted by the storms?

>> to be candid about it i'm not changing my day very much. i'm getting occasional reports from city staff and the county emergency staff on what we're engaged with in terms of stranded motorist, water main breaks. that's basically it. my biggest concern is the water main breaks because of loss of water pressure and consequently what that means in we should get a fire to break out. if a city is well prepared. this is why people pay taxes and we have these services every day. if a city is well prepared day in and day out, you don't have to do anything really exceptional on a day like today. >> the only thing that survived this storm or this system is the 49ers, mayor, and that breaks a lot of people's hearts where you are. our thanks to you. >> thanks. >> mayor paul soglin, of madison, wisconsin, joining us today. binge watchers, rejoice.

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satellite tv jiblt digiant at the consumer electronic show. they will allow consumers to access tv live anywhere. julia is joined with dish's ceo joe clayton. julia, take it away. >> thank you, sarah. that's right, joe clayton, ceo of dish. thank you for talking to us today. >> good morning, julia. >> here you're unveiling a new bigger way to roll out your hopper technology to more users, more devices. now, this technology had some major backlash from the

broadcaste broadcasterses. can you tell me how much revenue is added? >> well, our subscriber counted or customer counted is now over 14 million. and that might be a little misleading but we're getting a higher quality of customers. higher income, better education, and we'll spend more on programmi programming. so we're providing a better featured product for the consumer. >> the broadcasters say you're undermining their entire business model with a hopper which can automatically skip prime time tv ads. doesn't this risk hurting your own business? >> well, i would encourage all the broadcasters to ask the consumer what he or she wants. and i i here at the consumer electronic show where the power of innovation is in front of us, let's use technology to bet forecuss our tv spots and commercials to better serve that appropriate audience. we do a half a billion dollars in advertising a day so we are not against advertising. we just want it to be better focused and more efficient. >> so the hopper is such a good

technology. don't you risk having your rivals copy it? >> we just keep setting the bar higher, julia. 2012 we introduced the hopper. that was a cost-effective product with a lot of features. last year we sbro deuced hop we're sling which brought the mobility capability to it. this year we're introducing super joey which allows you to record up to eight programs at one time. that may sound like a lot but if you've got five kids like me it's not enough. it's never enough. >> you're getting a lot of attention for giving away free ipads so your customers. is this something you have to do because you're the number two player behind directv? >> no the reason we are doing this, this gives the consumer the best possible video experience, period. it gives you the capability to take your content, either use it in the home or the on the go. and the best opportunity to do that today is with a tablet. so we think we're giving the consumer exactly what, again, what he or she wants. >> you face increasing competition not just from directv, the other satellite tv

company, but also from the cable tv companys, from the telecom company, and from all of these other over the top potential cord cutting options. do you need to consolidate with the likes of directv to compete? >> well, consolidation is going to happen whether we want it or not. that's just the nature of corporate business today. but we do have to differentiate our product. that's why the hopper technologies are so important to us. we have to offer things that none other competitors do, like prime time any time, auto hop, 2,000 hours of storage capacity, even something as simple as remote control finder. we're using technology to enhance the buying public's appetite for our product. >> but, so, when you're looking at the big picture, though, and the competition and especially the potential consolidation in the cable space, what does that mean for dish? what does that mean for dish this year? >> well, i think consolidation will be a tougher competition. ultimately it better be better

for the consumer. that is the bottom line for any type of product. >> i know you had talks with ario. are you going to partner with them or create a rival technology? >> well, i'm not aware of any talks with aereo but we are a technology company. we do challenge the status quo. so we follow it very closely. so there is nothing happening that i'm aware of. >> okay. we'll have to see what happens there. thanks so much for talking to us, joe clayton, ceo of dish. now we have your kangeroos. >> yeah. have you ever been flash mobbed by a group of kangeroos, julia? >> thanks so much. back over to you guys. >> it was just getting good, julia. what are you talking about? that's vegas for you. thank you so much, julia boorstin at cvs. what does an device and chrome book have in common? all products that walt mosss it is berg says you need to be paying attention to this year. walt is live in las vegas.

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stock markets are closing in europe. stocks are getting a lift from upbeat economic data. in germany, jobless claims fell. and a number of retail sales rose by a expected bn than expected.

that's drawing some concern. also ireland drew strong demand for ten-year bonds in the country's first debt sale since exiting the bailout. the policy announcement due out on thursday. look at how the major european markets did breakdown. there's london, paris, germany, italy, and spain. earlier in paris at a joint news conference with the french finance minister u.s. treasury secretary jack lew called on europe to do more to capitalize its banks. take a listen. >> we made no secret over the years that we think having backstop,s in place is very important. we would like to see more action taken. the more capital that there is in european banks and the stronger the backstop,s are, the better it is for the european economy, the u.s. economy, and the global economy. >> jack lew doing his best to try to get the europeans to keep their foot on the gas. here's how the european banks faired in today's session. and that fear of deflation continues to torment some of the european investors and

economists. maybe not the stock markets. >> no, not the stock markets. that's been a surprise from 2013 translating into 2014. that is good stock stock markets in the peripheral nations. look at requiireland. bob pisani is on the floor. hey, bob. >> back in positive territory. look at the dow. for all the worrying what happened to the stock market yesterday, my havey heavens, people are bombarding me. nothing is wrong with the stock market. we're 30 points away from basically going even on the year. i tell you what i'm surprised about. the opposite. i thought there would be more volatility. this is the dow. this year we've moved, 150-point range. that's nothing, folks. that's very, very low volatile by. i thought we would have more action, i thought the volatility would be higher. i stuck mri neck out and said i thought the vix would go over 15 and stay there for a while in january. wrong. the vix touched right near 15 at the end of the year and basically collapsed. this is a near the lows for the

year for last year, for heaven's sake. the volatility really hasn't emerged. there's not a lot of big bets emerging and not huge volume. meantime, let's look at the groups moving on the deep freeze here. major sector of what's going on with the nat-gas stocks. major mover. the energy group has overall been a laggard this year. hospitals, we saw cyh, 2014 outlook. revenue wasn't great but they talked about the impact of obamacare in a positive way. that's why the hospitals are all moving. this was the first company cyh community health to give an indication and generally it's positive. they're interpreting it positively. you see the hospitals all of the to the upside. finally, i don't normally talk about the trade deficit but the numbers were much, much bigger than anticipated. near record exports, deficits, much lower than expected. people are dramatically raising their fourth quarter gdp on those numbers.

4% now instead of 3.8. morgan stanley is at 3.3. barclays is at 3%. a lot of big companies right now, guys, are actually percent gdp for the fourth quarter. that's certainly very important number to get over. back to you. >> it's a theme in today's session. bob pisani, thanks. that brings us to more on the economy, that better trade number raising gdp forecast. economists across the street. steve liesman has more on what the new outlook looks like for the economy. >> it's hard to emphasize what bob was talking about thanks to this surprise movement in the trade numbers. we look to be on track for our best two quarters of growth back to back since the beginning of 2012. here's your rapid update. we take the numbers we collected. survey of ten economists by cnbc upping their forecast by a fairly large half a point to stand right at 2.97. together with the strong growth number for the fourth quarter puts the second half average at 3 1/2%.

tail of two 1/2s right here. 1.8% in the first half. after a string of better than expected fourth quarter numbers the growth pessimists are perplexed and the optimists are giddy. the narrower trade deficit means one thing for growth starved americans. that real gdp may indeed break 3% sound barrier in the fourth quarter and for the right reasons demand is running overtime in the u.s. economy. that fourth quarter sell-off never happened or downgraded in growth. i hear the trade number, 34.3%, $40 billion. exports up near a percentage point. imports down 1.4%. look at the petroleum number. one-time thing but more and more as america produces petroleum and exports on that petroleum number is going to look better and better. non-petroleum deficit, 1.2. better job numbers a proer more fed inflated. there's still a lot of skepticism out there that we've been here before. a couple of quarters of strong

growth in this post financial world give way once again to weakness. 2014, guys, the year the u.s. economy can finally put it all together. seems like more and more that's been the story for 2014. back to you. >> answers to questions that we don't yet have but we're certainly curious, steve, thanks again. steve liesman back at mq. annual on super electronic show is under way in hlas vegas. here's with his review, is walt mossberg, co-executive director of revere dinlg tell. a reminder msnbc news group is a minority stakeholder. walt, great to have you back, especially now as brother in arms. >> i feel the same way. terrific. >> walk us through what you're looking at. obviously any sort of blessing by you is a big deal for some of these vendorses and these suppliers. we're going to look at five of these. what do they all have in common?

>> well, they don't all have things in common except they solve different problems for people and some of them are in some of the most interesting areas like wearables and biometrics and so why don't we just jump into it. >> first up, something called the live home, right? >> this is the live home. and really anybody out there with an iphone knows that they have a feature called photo stream. you take a picture on the phone and it just kind of magically in the cloud gets synchronized to your ipad, your mac and so forth. but that only works within apple products. and primarily that's what it's meant for. so what the lyve product does is takes that concept and it doesn't matter what phone you have. so earlier these guys took a picture of me on this android

phone. and you can see that it went to this ipad, apple ipad. it didn't care that one was android and one was apple. then they have this -- then they have this box which also receives the picture. it's got its own touch screen. and there's the picture of me. and you can -- and the thing about this is, it gives you a huge amount of extra storage. much more than you would have on any of your mobile devices. and you can use it as -- put it on your night stand, use it as an alarm clock, whatever. the point is it's -- yeah, right. so it's just -- you don't have to worry anymore about running out of space on your phone. and by the way, also, videos. that is the lyve product. >> i want to just -- before we run out of time, get to other products including something out from toshiba. >> something what?

>> out from toshiba, out with the new cream book. >> yes. this is toshiba is jumping into chrome books. why does this matter? chrome books are a google idea for computer that is different from windows or mac which we've all been used to, in that most of the storage and all of the apps are in the cloud. you're running it true a chrome browser. and it now, the prices are very low. they're under $300. this is a 13-inch toshiba one for $299 but there are even less expensive ones. what's interesting is this holiday season chrome books suddenly started taking off and by some estimates as many as much as 20% of notebook sales in the u.s. >> namely he the ones we talked about. >> chromebook is one to look at. >> i want to skip to the myris

authentication. what do we know about that? >> so you've all seen the movies where people get into secret rooms at the nsa or whatever using their eyes. this is what this is. this is just the first iteration of it. i look -- i keep showing it my eyes and it's going to log me into this computer hopefully and there you go. you see that screen? it logged me into windows with mu just my eyes. there's a mirror there that look at your eyes. once you trained it once, it will recognize you. obviously you don't necessarily want this big thing so they are moving -- by the end ft year -- to build this all right into the computer. and that's biometrics. that's another way of identifying you without worrying about passwords and that sort of stuff. >> and apparently works through eye glasses as you just demonstrated. >> yeah, you have to train it --

well, there's -- there's the lacie fuel. portable wi-fi equipped hard disk that has an enormous amount of storage for photos and videos. and i can play a movie on this ipad and this movie is actually coming off this lacie and it can do multiple devices and set up -- set up, i think it's five devices with video. but i want to show this one other thing quickly because wearables are a big deal. this is an electrocardiogram. this is from ihealth. it's not -- if any of you have had a cardiogram you know it's a million wires and leads on you. this thing you just wear under your shirt and it has an ipad app and it shows there's somebody here from the company and that's his cardiogram. and you can send it to the

doctor and it's just one of many, many health-related things that are coming along that people can wear. >> the great thing about ces, it shows you where we're headed down the road, walt. thanks so much for walking us through that. try not to get kicked out of any parties. >> i'm just sticking with t-mobile and going to all the paeshts. >> walt mossberg in las vegas. thanks. >> i think he's having too much fun with the gadgets. earlier this hour the senate moving forward with the extension of long-term unemployment benefits. we await a speech from president obama on unemployment ben fitsds in just a moment. [ male announcer ] legalzoom has helped start over 1 million businesses.

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>> got my attention there for a second, scott. thanks, scott wapner. moments ago the senate slottslo voted. the president soon will deliver remarks on why benefits should be extended. chief koerncorrespondent in washington with more. >> john, what is going on here? >> it's a dynamic process, carl. we saw more republicans to vote than we expected to continue the debate. but this doesn't mean it gets over the finish line. first of all, you're going to have republican attempts to amend the temporary extension on the floor with things that would pay for the extension, things like taking money out of obamacare. the democrats won't want to do. even if they can clear those hurdles and get 60 votes in the end, to get to a final vote and pass a temporary extension you've still got objections from the house. talked to a leadership aide a while ago who said this is not likely to go anywhere unless the president proposes a credible

plan with pay fors and incentives to create jobs and no indication the aide said there was no indication the white house intends to do that, thinking that they want to campaign issue for 2014, the mid-term elections. so we're going to have to see whether or not you have further erosion of the republican position which would make it possible for a deal to be struck and the president is going to try to make that happen with these remarks. >> all right. john harwood in washington. thanks. as we await the president. meanwhile, cold weather fostfost forced the cancelation of 12,000 flights over the past few days. minnesota suffered minus 40 degree windchill, ten degrees colder than nasa mars rover experienced yesterday. how dangerous is the polar vortex and why is it grinding many business toes a halt? we're going to look at the science behind it. bill nye, executive director of the planetary society and all around science guy joins us. so, bill nye, enlighten us. what does negative 40, negative

30 degree weather mean for human kind? >> it's very difficult for a human to be out there exposed as the saying goes. for me, the engineer, member of tech logically advanced society, means we're going to use a lot of electricity to keep warm, to move around, to thaw things out. i don't know that our electrical power groid is up to it right now. we're going to have to enhance it in the future. and we're getting to a point where it's so cold, how cold is it? even jet fuel is becoming slushy. that's really unusual. so this sort of thing slows everything down. you slow down transportation. you slow down the economy. not anybody's best interest. >> just talking about the impact on people and on our bodies for a moment, we watched this weekend some of us watched the game between the packers and the 49ers in frigid temperatures. what we saw was they're wearing

short sleeves like nothing covered. kaepernick's tattoos were out. how stupid is that? >> those guys stay pretty warm between plays, you know, between -- if you're on the offense and defense is on the field, you're standing there keeping warm. and this is, i got to say, as a visitor, this is something that the people in green bay seem to pride themselves on. that aside, the economic impact of this is high. and what if, as i always like to bring up, what if this is the future, what if this dipping arctic or polar vortex is the way it's going to be often over the coming decades? we're not really set up for it. and we're in the developed world. we are in a place where we have all this infrastructure and means for most people to keep warm. there are other places where it's not set up like this. people say to me, are you saying the world is getting warmer and yet it's cold like this?

check us out on friday, it will be 60 degrees fahrenheit in some places in the united states just, if i may, like that. >> yeah. >> one upside of this, i imagine, though, this might kill some of these insects which are attacking our forests. this kind of cold snap may have -- may -- may have a slight benefit in that regard. otherwise, we're just not ready for these kinds of rapid changes. i don't know if our agricultural systems are set up for it. >> we're looking at some video of airplanes. a lot of our audience flies. there's been some discussion of just how deicing works, this mix of water and glycol alcohol we put on the wings and the stabilizer on the planes. is there a limit to how well that works? >> no, it's fine. it's perfect. no, of course there is. of course there is. this gets into what we we call judgment. >> are we there? >> this is what we hire professionals in the airline

industry to check on. two problems with ice. first of all, it's heavy and so you're taking off with a lot of extra mass or you're trying to fly with a lot of extra mass. and the other thing is it changes the shape of the wing. and the air doesn't flow over it in the predicted way. and so it's hard to operate the plane. but this is what these people do, everybody. they deice planes and they make sure they're okay before they take off. with that said, it takes a lot of extra time for anybody who is a frequent flier, flies on an airplane this time of year. it takes a lott of extra time to get the ice off the wings. >> no doubt. you mentioned the weight -- >> the adds cost to air service. >> you mentioned the lift and that's not even regarding getting the runway plowed and making sure those tiny potholes don't harden and make that takeoff more dangerous to the tires, for instance. >> and slipping. i've only experienced this a couple of times. i went to school in western new york state where once in a while

it got very cold, 20 below. one time it was 30 below. where the tires of the cars are not quite round for a few minutes. i don't know if you've ever experienced that. >> wow. >> i've had a lot of people, my friends in minnesota, talk, oh, yeah, it's no big deal. as the car rolls, the tires get a little bit warm and soften a little. but it's just another sort of surprising thing that happens when it's this cold. >> what about kucomputers, bill? new technology, how does it fair? does it get frozen by some of the weather that we're having? anything to worry about here? it. >> goes two ways. first of all, nominally as a first cut, electronic circuits work a little bit better when they're colder. just a little bit. however, batteries work many, many times worse when it's colder. so if your phone gets cold in general you have a much shorter battery life. and so this is -- we recommend if this is your issue, if you're there right now, keep the phone

close to you where your body heat will keep it from losing a jolt. and then you may have seen all the traffic delays that result when you can't start a car. the loss of productivity, people can't get to work when their car won't start when the battery is dead, let alone the issues with starting airplane enjoys. >> our thanks for your ensight from los angeles, bill nye, the science guy. here's the president talking about jobless benefits. introduced from catherine hackett who wrote to him as someone effected by the failure to extend. >> good morning, everybody. i hope you're keeping warm. you know, a few weeks ago i said that 2014 could be a breakthrough year for america. think about it. five years ago this month our economy was shedding 800,000 jobs just in one month. but as americans buckle down and

worked hard and sacrificed we began to come back. and our businesses have created more than 8 million new jobs since we hit the bottom. our auto industry has gone from bust to boom. manufacturing is rebounding. the housing markets are rebounding. stock markets are restoring. retirement accounts, the promise of energy independence sack chully in sight. health care costs eat up less of our economy. over the past four years costs have grown at the slowest rate on record. and since i took office we've cut our deficits by more than half. so america is getting stronger and we've made progress. the economy is growing and we've got to do more to make sure that all americans share in that growth. we've got to help our businesses create more jobs. we've got to make sure those jobs offer the wages and benefits that let families rebuild a little security. in other words, we've got to make sure this recovery leaves nobody behind. and we've got a lot of work to

do on that front. the good news is i'm op mystic, we can do it if we do it together. now, before the holidays both parties compromised on a budget that lists some of the drag that's been on the economy, from these indiscriminate cuts we call sequester. and as a consequence this year, we may see more stability when it comes to economic growth. and i think i'm not alone in saying that we are all greatful in -- we'll bring you the highlights of the president's speech there on unemployment benefits. in the meantime, the dow is hanging on to a triple digit gain. welcome back. how is everything?

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welcome to the "halftime" show. first half are in the books. let's look at what's happened so far. >> we're 70 points away from being break even on the year. >> momentum is back and the analyst fight momentum on a daily basis. >> oh, yeah, there have been some stubborn bears on netflix. >> natural gas futures are among the best performing today. it's rising as we are looking at increased heating demand with these record low