o it in the u.s. >> we'll be speaking with the president and co o of bentley on monday here on "street signs." thank you so much. robert. thank you very much, dom, as well for joining us. >> it was a pleasure. thanks for watching, all of you guys. >> "the closing bell" is next. and welcome to the "the closing bell." i'm kelly evans at the new york stock exchange where bill, we had a rally yesterday but we're giving it back today. >> i'm bill griffeth. those who were hoping for a follow through have been disappointed, but they can't be disappointed by the economic data out this morning. adp jobs number 238,000 jobs created in the private sector last month. that was the biggest number in all of 2013. that was positive. the ten-year auction, we're going to talk about it in a little bit and the fed minutes. >> and we're still di justinggesting the news from yesterday, the smaller trade gap boosting fourth

quarter gdp. also up today, a lineup of heavy hitters on "the closing bell." we have exclusive interviews with paul jacobs rob sands. >> have you seen what constellation stock is doing today? >> jumping. >> and we have commerce secretary penny prits zer and john legere. we will get get the real story. he was escorted out of an at&t story. >> he says he was there to see the musical act. he loves macklemore. sure he does. microsoft taking a hit today. allen mullally is taking himself out of the running to fill the ceo role at microsoft. microsoft announcing it will now be february at the earliest when they announce who is going to be the new ceo. who are the likely candidates and who is wall street rooting for? we have an in depth look at that very important story coming up in a little while. >> we're keeping a close eye on

market this is hour as we head towards -- as we're into the final hour of trading with the dow down 82 points. that's half of 1%. we have the nasdaq actually the outperformer today. only down by a quarter of a percent. and the s&p 500 is only off a couple points. so really the weakness centered in the blue chips today. >> let's talk about today's action in our "the closing bell" exchange. kathy jones is back with us. peter anderson from congress asset management keith fitzgerald, and steve liesman and rick santelli are with us as well. steve, i'm going to start with you. what's the headline out of the fed minutes? how does the fed view the economy right now? >> pretty upbeat and this was before some of the better and upbeat data we have gotten since the fed meeting which was december 18th. as you know, bill, we've been reporting for many weeks that the gdp forecast for the fourth quarter have really risen in that period of time to more like a second half of 3.5% versus second half closer to 2%. so the fed views the economy

as -- viewed it as good during the meeting. it's gotten better yet. so the question is whether or not that means a faster tapering. and what i see when i look at those minutes, i think the center of the board remains for a measured cautious approach. look, if things really do accelerate i think the fed will accelerate tapering. >> kathy, here is what i want to know. we've got this better batch of economic data about the best jobs report you could hope for, the fed minutes which are more upbeat. why isn't the ten-year yield decisively above 3% today? >> well i think a lot of this was discounted. we've been talking about tapering since last oh march or april, and we finally got the announcement. so this just confirms that the central part of the fed, the doves, the moderates, the hawks all got together and agreed on it. i think there's a lot of questions about the sustainability of some of the better economic numbers that we have. so even though the market has

already discounted the fed tapering, i think there's a lot of questions going forward as to how fast it's going to be and if you pull forward the expectation for actually tightening i don't think that's going to happen very soon. >> let's ask rick santelli. you had the ten-year note auction. demand wasn't spectacular. what is going on with the long end of the yield curve? >> i would think it would be the analogy that work is somebody that eats ten big macs and then orders a diet coke. that's why i don't think it's so important yet personally, but it will be important. remember, even though we've touched 3% intraday numerous times, it doesn't even look like we're going to get our third crack at a close with a 3% handle, and i think that's significant. you know in the end i think what needs to happen is the markets need to all start to get on the same page. when we start knocking about another 35 or $40 billion off prven purchases and we work off the

notion the fed has taken so many treasuries and mortgage securities out of the marketplace through their balance sheet, that we will whittle that equation so some of the strong data points are going to get a lot more horsepower kicking up those rates. >> keith fitzgerald what about you? you say you think the fed is tapering into weakness. what do you mean by that? >> i think the fed is an illusion. we don't have free market discovery right now. certainly not when it comes to prices. i'm with rick until we get serious about this tapering we have no way of knowing whether the economic data is for real. what bothers me inside the fed particularly from today's minutes is there's still a lot of group think. there's discussion and all kinds of things. but the one that got my attention is they're debating the efficiency of future tapering moves or future stimulus. that to me says there's no plan b and they haven't got a clue what they're doing. that bothers me. >> peter anderson what do you make of the fed's strategy at this point? is it appropriate given the numbers we're getting on the

economy right now? >> well i think it is and i couldn't really disagree more with some of your prior commentators there. i think the minutes that i read today have been some of the best minutes i have ever read frankly. i think they're quite clear. i think there is still dissension, but it's healthy segmentation among the fed members. so i think we're not going to be on auto easy either. i think what's going to happen is they're going to taper very slowly and maybe even elastically. i think they're quite intelligent around sips tiffnd sensitive to the fact this is the first baby step and let's see how the market reacts. if it over reacts we can always reverse our position. we don't have this cast in stone. there's a lot of flexibility built in there. while i agree that there's, you know, disagreement about where exactly we are in this economic cycle, i think we should take a little breather and say, i think the fed is on that same page and

they're going to factor that in in the next meeting. >> i want to make sure i understand your criticisms correctly, keith. you're bothered by the fact there are different camps that are debating the efficacy of qe. it strikes me that's exactly what you want policymakers to do. the other thing you and rick are both saying that i don't get is you both don't believe that the market is a forward discounting mechanism, which is that the market right now -- >> the fed's balance sheet is a forward discounting -- >> let me finish the thought. they are not discounting the idea that there will be future reductions in qe and that's not what we're seeing in today's rates. >> steve, do you see when the highs in the stock market were in '08? how is that for a forward predicting mechanism? >> i'm saying the market doesn't get it right all the time. nobody who -- >> this is probably the second time in five years then. >> well all i'm saying is that in general the idea that the market right now is not discounting future cuts strikes me as being the wrong way to

think about what markets believe right now. >> jump in keith. anytime. >> i tell you what they're not discounting forward thinking. what they're doing is the certainty of risk. they don't want to let go of the fact that the fed may have it wrong. and traders, you got to remember, are not academics. they're responsible for trillions of dollars every day and they make it or they lose it every single day. they don't want to be on the wrong side of that trade quite literally, pardon the pun. so i think today's fed minutes point out, yes, there's dissession, yes, there's discussion that's great, but we're saddled with whatever yellin comes up with like it or not because there is no actual open disagreement when the vote comes -- >> you're always saddled with what the fed came up when they set interest rates. >> no question but the fed doesn't set interest rates. the fed sets a target. the market sets interest rates. don't forget that. >> yeah but it curiously always set it exactly where the fed wanted it. >> no, we don't. the market takes it where it needs to go. >> let me ask you this -- >> if i could add one thing, i

think the fed also is looking -- i think the fed -- we cannot deny the fact that even though the fed will not say this publicly, they are looking at the markets, and i think once they make their statements they go right back to a monitor and see how the markets are reacting. it would be foolish -- >> they're looking at a market like i would look at somebody's brain with a scalpel in my hand. >> i'm with you, rick. >> how about the fact that there's a great deal of uncertainty -- you know we get one quarter of good economic data and everybody tries to extrapolate it five years into the future. when you look at those gdp numbers, for example, from third quarter, the real final sales were really quite soft and there was quite a big buildup in inventories. even the trade numbers reflected weakness to a large extent in imports. some of that is energy prices. we don't have a huge liftoff right now, and i think that that tempers some of the increase in rates that we've seen at the

long end of the yield curve. >> i want to disagree with that since i disagree with almost everybody else on the panel, i might as well make it a strong sweep. >> we got two quarters of strong growth. you did 4.1% in the third quarter. it looks like you will do somewhere close to 3% in the fourth quarter. that gives you 4% and 3% is what? 3.5% average. >> if you summarize the economy what grade would you give it? >> "b," "b" plus right now. >> then why are we talking about emergency jobless claims benefits extended? i can't connect those dots either. >> because you still have 1.3 million americans, you have three people looking for every job that's available. you still have this -- >> they just want to pay these people off. >> i think it's more of a human rights thing or a moral thing than it is an economic think as a reason for extending benefits. what we've gotten from the jobs numbers, the adp this morning within the last hour i reported nfib, best small business growth

since february '06. i think you might be on the cusp of a change in the job market in america right now. >> perhaps we might be but i also think that we will all agree that the picture is not that clear yet. and even the fed has said that. one of the confounding aspects that they're frustrated about is the jobs picture and pricing power. they think the actions they have taken should be reflected in the market more strongly and they're not. and i think it's those issue that is cause this kind of spirited discussion that's helpful for the market to be forward looking and to price that into yields. >> kathy, what kind of jobs number, what kind of payrolls growth figure on friday would it take to make the bond market sit up and think maybe this is for real? >> i think if we were well above 250 or something like that 275. i think the market has already discounted 200-plus but, you know, then again adp isn't always a perfect predictor of the monthly jobs numbers and

we're going to have some odd weather effects this time or it's a possibility we have some odd weather effects. >> in other words, 200,000 may not be good enough for the market? >> i think the market has discounted 200,000. >> you need 250 to 200,000 to stay up with growth. what you're talking about at 250, 275 is a rounding error. we need to see 300, 350, 400 jobs to know this is serious and we haven't seen that yet. >> that's getting ahead of ourselves. >> we need to see that consistently over time not just one shot deal. >> labor force is different than it was in the late '90s. so 200,000 means more than it might have in the past. >> i want to agree with what kelly just said. kelly, i agree with that. >> wow. >> let's stop now while we're in agreement. >> that was fun, gang. good conversation. thank you so much. >> have a good one. as we head toward the close, 50 minutes left in the trading

session, we are down today. maybe this is the kind of action we should have expected when you do get stronger economic data meaning the fed is going to have to taper a little more aggressively, meaning the bond market will see higher yields and prices are lower. the dow is down 86 points. >> i misspoke earlier when i said the nasdaq is down a quarter of 1%. it is actually higher. we're up eight points or 0.2%. it may be bitter cold around the country, but we have the names of five stocks that have been cold in their own way. maybe they will soon help to heat up your portfolio. wearable technology has been one of the major themes at the consumer electronics show at las vegas especially for fitness. qualcomm's ceo tells us about his move into that space and just how profitable he thinks these products can be. and could a growing scandal for chris christie threaten his presidential hopes? we'll get into that next. keep it right here. you're watching cnbc, first in business worldwide.

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a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com. welcome back. you know qualcomm for its chip sets for mobile phones. this week at the consumer electronics show the company's

focus seems to be less about chips. >> let's head to ces where jon fortt is standing by the chairman and soon to be former ceo paul jacobs. >> still ceo today. paul, thanks for being with us. tell me about that decision. we know microsoft was coming after your deputies and you're planning to do a lot more technology work as you hand over the ceo reins. >> i wanted to make sure we managed the transition had a great transition between steve to me -- i mean me to steve, sorry, and also i wanted to go focus in on a lot more technology. it's really my passion, kind of thinking about what the future is going to be working on the vision for the company, trying to drive the industry. as ceo there's a lot of day-to-day stuff you have to do. i wanted also to make sure that the management team stayed together kept the band together, and we're doing pretty

well right now with this team. i think it was really important to keep steve here and driving this thing. >> i'm expecting to hear more cowbell in the future from you guys. let's talk about some of the things you're exhibiting here the future stuff you're going to be paying a lot more attention to. technology you have for linking a lot of different things together. i want to ask about the business side of this. intel's new ceo says there's going to be an order of magnitude more devices but they're going to be lower margin. do you see it the same way? is that going to impact your business that way? >> there's huge volume so people are talking about $20 billion, $30 billion, 50 billion connected devices. some of them are going to be a lot less expensive because you will sprinkle them all over the place but there's also high value ones too. we see a mixture of these and we will address the high end and the low end of the market. i think really it's going to be about also making your device more capable because our idea of this digital sixth sense where

you walk why your phone into the environment and the environment talks back to you and tells what you content and services. we have a smart home demonstration where there's an air conditioner that's connected and when i walk out of the room the air conditioner is on. it sends an alert to my talk smart watch and tells me did you mean to leave that on or do you want to turn that off and i can turn it off right from my watch. that kind of stuff. >> yeah got you. >> paul, hi, it's kelly here. there are reports about some potential shortages for products like your talk watch that involves the chassis maybe impacting other players in the space. can you talk a little bit about any constraints you're running into and what it tells you about demand for the talk watch and about other -- the ability for other makers to get into this space? >> so it's not that big of an issue for us because we were always planning to make the talk a limited edition item. we weren't going to build more than a few tens of thousands of them because we really wanted to show off a few technologies.

our display technology our wireless charging technology and then we also have some head sets that do stereo bluetooth with no wires. so, yeah, i think as people mr. these products sometimes there are shortages and there's new technologies that go into them. what you were talking about is the case some people were having issues with. for us it's really not an issue. >> let's talk cars a bit. are you going to join the open automotive alliance? >> you're talking about with -- yeah, we support an dried and -- you know how we are. we're verying a nos stick. we tried to be the switzerland of the stre. we already -- we're the biggest guys in android right now. it makes sense for us to do that. >> paul, this is bill. you're not abandoning smartphones. we know that but let's face it that's your bread and butter. it has been will be for a long time. give us a sense all this wearable technology that we're hearing about at ces and that you're going to focus on as you

step aside to think about the future of technology realistically how much of that wearable technology will contribute to your growth down the road? >> oh i think it's going to definitely contribute to the growth not just for the devices and the displays but it also drives new functionality in the phones. so these ideas of having sensors that are always on. we have these things now with phones that sit and listen so when you say something they turn on. but we're also going to leave that on so it can sense if you're in the same room or the same car as your friend allow you to automatic link up either to the car or to each other, exchange content and things like that. so it's going to drive new functionality. new radio interfaces, new software, new applications. it's a wholistic thicke stkistic thing. we say how do we build a whole ecosystem and work with partners like the air conditioner manufacturer. >> i get that. it's all very gee whiz kind of stuff. i'm impressed, but the question

is about growth and it depends on who is making those products and the adoption and the marketing. i mean are we setting ourselves up with all these high expectations and we find out that -- you know i heard a survey today that 40% of american homes still have vcrs and they don't have video game consoles. the adoption rate gets pretty slow when you get into the high end of technology here. >> well that's one of the keys to make sure that we get these things cost reduced and very very simple for people to use. and by the way, if they have a smartphone, they probably have a game console now because the graphics quality in the smartphone is the quality of a game console. we're showing some stuff at the show that's amazing. life like skin textures. all sorts of things you used to have to expect to buy something very high end. now it will come in your smartphone. it's going to be about getting the cost down and making things simple for people to use unlike that vc r. most people probably still have

that flashing 12:00. with your phone it sets itself. >> let's talk about that situation in the car. you guys partner with qnx. you had an announcement with blackberry. we talked about ed abouted about open automotive alliance. will all of these things talk to each other? >> one of the things we did is all join alliance for is to have things like the car can talk to your phone. the phone can talk to your car. the car can say, here are the screens, the buttons, the microphones. here is how you roll up the windows and unlock the doors. the phone can say this is paul and this is what he likes and here is his content and my friend gets in and there's his content and we can mix it up and do those kinds of things. there's a lot of stuff to make all these different things work together. in our smart home that we're showing right now, it's all different manufacturers. they didn't have to work together. all they had to do was put this

common layer in there is things can talk to each other. we've been in automotive for a long time. there are over 12 million cars that have qualcomm radioed in them already. we just announced a new processor automotive grade. a snap dragon which means that stuff that goes in your smartphone, nice graphics smooth animation, that's all going to come to the user interface of your car and that will be exciting for people. >> looks like you guys working on solving it. thanks for joining us. back to you guys. >> thanks guys. >> great stuff, jon. we've got about 35 minutes left to go and the dow jones industrial average is now off by 105 points at this hour. it's wayeighed down by weakness in verizon off almost 2% mcdonald's, chevron down almost 2% as well. the s&p 500 is holding up a little bitter. dwroo joo >> there goes yesterday's rally. he's considered a presidential

front-runner for 2016 but there's a growing scandal for chris christie. twitter was lighting up over the heated debate on closing bell yesterday. take a listen. >> i'm going to make you an open offer. come and work at one of my companies for six months and -- >> nope. >> and i will fix you. >> not going to happen. hey, i'll make you an offer. come occupy wall street with me and i will fix you. >> we're trying to get that happen. we got a ton of tweets on that subject. we'll reveal the cream of the crop later on "the closing bell." keep it right here.

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welcome back. a mixed day on wall street. the dow failing to build on yesterday's rally. in fact, turning around decisively. dom chu, what is going on in this market. >> all kind of stuff. we'll begin with jcpenney. while they said they were pleased with its holiday sales performance, though it rattled investors not providing any details on those said sales. other department stores also fell as shopper traffic said mall traffic fell nearly 15%. forest labs is surging after they said they are buying a specialty company for $14 million in cash. elliott management offered to buy the entire company for around $3 billion or 19 bucks a share in cash.

river bed said it would thoroughly review the proposal. mcdonald's fell after it was downgraded. all those stories, bill making some news in today's market. back over to you. >> dom, thanks very much. well elsewhere in the political arena, a potential scandal surrounding a possible republican presidential candidate got bigger today. eamon javers has the latest for us on new jersey governor chris christie. >> that's right. the question is, is this a bridge too far for chris christie today? it has been a fairly low-level local scandal, but it blew up big time today when the bergen record in new jersey obtained some ex blowplo record in new jersey obtained some ex blowplosive e-mail that is seemed to indicate that possibly chris christie aides deliberately caused a traffic backup on the new jersey side of the george washington bridge in order to punish possibly a local mayor there, a democrat who did not endorse chris christie for governor back during the

campaign. take a look at some of these e-mails here and you get a sense of the tenor of what was going on behind the scenes. this one from christie aide. time for some traffic problems in fort lee. his response got it. that was a couple weeks before the traffic problems started. after the fact we see this exchange. an unknown senders sends a text message, is it wrong that i'm smiling? wildstein replyies no. one more text exchange. i feel badly about the kids i guess. this after some controversy over how many school children were stuck in school buses for up to hours in ft. lee, new jersey where the traffic had ground to a halt. wildstein's response they are the children of buono voters referring to christie's democratic political opponent there. the question here guys is this going to be a problem for chris christie going forward? obviously a potential republican

presidential nominee next time around. the question is how close will this get to christie himself? will he be able to come up with some explanation for this series of e-mails? he's going to have to do a lot of work very quickly to contain the damage. >> because at this point if he's going to be involved in that presidential campaign, these negative ads are writing themselves. >> yeah. look, the real problem for a political candidate with a political scandal is when the scandal confirms a sort of character that's already been out there about that candidate, in this case the caricature is he's a bit of a bully, he plays rough, he has a big temper. this would confirm that if it's all true and that's the problem for chris christie here is these kind of things take on a life of their own. he'll be known ased guy the guy who shut down traffic in bridge to punish an opponent. this is going to be very damaging for him if he can't come up with some explanations for it do something to caught rise the political damage

quickly. >> the george washington bridge we all cross it it is the most highly trafficked bridge in the world. there is some import there, but you wonder beyond that, anybody that lives outside what we call the tristate area here whether they're going to care about this when it comes to it if he, in fact, does end up running for president. >> the question is how would gwb traffic issues play in iowa. everybody around the country hates their commute. they hate traffic. they hate sitting in it and the idea that somebody would deliberately manipulate a traffic jam would really rankle a lot of commuters across the country. it's a tough issue because people can relate to it and they hate sitting in traffic. i do. >> and do i care that i got caught in that traffic jam? >> maybe a little bit. >> it strikes close to home up there. you guys -- >> doesn't take much to clog up the george washington bridge that's for sure. >> that's also true. >> close to home. >> thanks. we have a sell-off on wall

street continuing. the dow down 100 points right now just off a low that was set a few minutes ago. so the definite bias here is to the downside for the major blue chips today. >> it's the tel cos taking it on the chin. a lot of companies are particularly underperforming. that's why you're seeing that even as the s&p is slightly negative and the nasdaq trying to stay positive. >> not all stocks are lower though. segue. >> ceo rob sands will break down results coming up next. >> you're welcome. if you think the picture on your television is really that good you haven't seen anything yet. we'll show you the latest ultra high definition tvs being introduced at the consumer electronics show in vegas. this is one thing i miss about going to ces. you will not believe how clear these pictures are. you won't be able to see it on

your tv, but you want to see the price tag as well when we come back. aflac! got 'em. ♪ ♪ 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. chuck vo: there's a saying around here you stand behind what you say. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look.

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>> it's not looking very good on our five-day indicator. we're down four of the last five days. >> why does that matter? >> it's one of the mini indicators that have a little bit of a track record better than a lot of others. it's accurate somewhere around 70% of the time according to the stock traders almanac. the first month is a little better overall. the important thing is we'll get more data very quickly. all of this is going to go away. earnings tomorrow with alcoa. a lot of traders believe there's going to be better guidance that washington out of the way, better u.s. economic data better data in europe is going to cause them to be a little more optimistic in terms of the commentary, the ceo commentary. i'm a little unsure about that because so far the indications are i'm not getting warm and fuzzy feelings about guidance for first quarter from anybody. >> these stocks have been bid up so much into the earnings season, they have to meet that expectation. >> they had a good run up overall. that's my main concern.

juf >> you have to imagine though that if a big portion of the rally we have seen in the markets the last few years was a result of the fed's easy money policy, the minute they start talking about removing some of that easy money for the market what's the market going to do? >> but, remember the bulls' main argument is it can withstand gentle raise in rates providing the economic data keeps progressively getting better. so far the bulls have been right on that. there's been no explosion in the ten-year not an explosion, a move up. there's been economic movement on the positive side and so far that scenario is playing out. we're still not getting the top line growth and the hope is by the middle of 2014 we'll go from 2% topline growth which is what we had in 2013 to 4% to 5%. if we can pull that off, the stock market is definitely going to be higher in the middle of the year but if we can't, if we can't get that kind of growth on the top line it's going to be a little tougher. >> thank you bob. >> see you later, bob. >> consolation brands is seeing

a big pop. check this chart out. they're up more than 9% following the earnings beat thanks in large part to better beer sales. >> straight to the man behind the numbers. an exclusive interview with rob sands. welcome back again. >> thanks, bill. >> some timely acquisitions of corona and some of the other mexican beers there. that was a big contributor to this, wasn't it? >> well yeah. we had particularly good beer sales this quarter. our depletions which are our sales from wholesale to retail were up over 10%, and the grocery store channel is measured by iri. we had also terrific results, up 20%. >> why? why do you think? >> well we think that it's a number of factors. number one, we think it's all about the consumer. the consumer has really gotten behind these beer brands.

modelo. one of the things that differentiates us from our competition is we've had a very clear message about what our brands are all about. for as long as i can remember and this has really resonated with the consumers over time. very strong brand health. >> and it's interesting at a time when so many brands are struggling to keep customers because of attrition to microbrews, for example, or citer or somecite er -- cider, that's why i was surprised to see the strength in what's kind of a mature business. you're saying there's a cultural resonance with some of the newer brands. >> like a cultural resonance with those brands but also when you really look at the beer market, okay the whole better beer market in general is performing very well and that's the import segment and the craft segment, and the craft segment is actually a very small portion

of the beer industry about an 8% share. whereas our business alone is as big as the entire craft segment. but that said the consumer is really grafer gravitating toward premium products and our portfolio has been a beneficiary of that. >> i wonder when you look ahead to 2014 what you're going to do with pricing as a result. >> you know we've been pretty judicious as it comes to pricing. we've been pricing below the market in general which has been pricing about 3% a year. we've been pricing somewhat less than that and, you know, we take a very strategic view towards pricing. we look at it market by market brand by brand, and we make decisions based on what's going on with the competition and with the brands themselves. so it remains to be seen what we'll do with pricing. >> how is the wine market right now? >> wine market remains very

strong. you know, as a consumer staples category, wine is probably the fastest major -- fastest growing major category in consumer staples. certainly one of the most important to retail and grocery today. growing midsingle digits. so a very robust market the wine business right now. >> i heard that spirits were really kind of catching fire again, that that had caught the imagination of the drinking public again. no? >> yeah, spirits are also growing well. if you look at the categories, all the growth right now across beverage alcohol is in wine spirits, and better beers. so really beers that are selling at prices above the premium demows tickde domestic beers. that's where all the growth is in the category. >> what else is there? >> exactly. >> domestic beer.

>> true true. good point. >> which is a very large part of the business. >> no it is. i just wonder finally if we see something -- if we see a nature of a rebound in commodity prices for example this year are you guys modeling that? how much of an increase do you think we will see and what impact could that have? >> we're not expecting to see any material increases in the commodities that are important to us across our businesses. so we expect to have very stable costs going into this year. >> do you hedge? >> we do do some commodity hedging, but even that aside we expect to see very stable commodity prices. for our products in wine beer and spirits. >> rob, good to see you again. >> thanks very much for being here. >> cheers, as they say. >> thanks. >> i'm concerned about how much we're all drinking. >> really? >> well he's right, maybe it's the domestic that are taking

share. we have about 15 minutes left to go into the close. the dow is off the lows of the session where it was down triple digits but it's still off 90 points at this hour. >> ironically art cashin keeps coming by and saying the bias is to the buy side but we're not seeing so far. from worst to first, we have the names of three stocks that underperformed in 2013 but are already starting to heat up this new year. >>. also ford's ceo alan mulally taking himself out of the running to be microsoft's next chief. find ut who isout who is up for the job. we'll be right back.

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that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. i don't have to tell you, much of the nation still trying to thaw out from the so-called polar vortex which just means it's really cold outside. >> in the meantime there are stocks that have also been in their own version of a polar vortex or ice cold for a while. sheila has three names that may now be heating up. >> i have a space heater right here that is keeping me warm but i have three names for you that are heating up and i'm going to tell you why. so first up is teradata. it was down a whopping 27% last year. just in the past 30 days it's up

10%. what gives? analysts i spoke to said this company has a very premium product. the average bill is about $1 million. that's just a price tag that companies weren't willing to pay last year. they didn't want to spend the bucks. as a result the company missed their earnings. now, the economic recovery does seem to be taking hold. companies are more confident, budgets are if place. perhaps we are seeing a bit of a turn around. analysts tell me this company is still a show me story. the second one is a retailer that's five below. this is a dollar store kind of retailer. fun kitschy things for the tween and teen group. had a pretty good 2013. look at the stock after its last earnings report. the company completely tanked because of late guidance. now we are starting to see an uptick again. what gives? analysts i spoke to said this company is notorious for giving low guidance. he thinks holiday sales have been tracking pretty well. rainbow looms is one of the

reasons. perhaps a really good turnaround story here. big picture, company only has about 200 stores in its base. looking to expand to 2,000. finally there's a stock that we love to talk all about and that is blackberry. terrible year last year. has been upticking up a little bit and, of course two words for you, ceo john chen. everyone pegging that turn around on him, what he can do with the company. i have to point out even if this company does come back it's still going to be a very different blackberry than what we used to know. it will be a fraction of its size. it's a matter of if it can keep going. >> just as long as they keep it going. keep my blackberries running, that's all i care about. i don't care what size it is. >> i have one. >> we all do. >> not anymore but i want to see what happens with their lawsuit against -- >> typo. >> that's a big one. >> thanks sheila. art cashin just came by. there's a billion dollars to buy. that's big right now. let's see if that has an impact

as we head towards the close. the dow is coming back. we're down just 65 points at this point. >> and john legere crashing at&t party and then getting kicked out. he'll join us in a bit to discuss what some are calling a brilliant publicity move. we'll be right back. [ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're

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welcome back. about eight minutes -- seven minutes left in the trading session. the dow is coming back. art cashin informing us there was a billion dollars to buy toward the close. that's a lot. joining me right now is jeff from fifth third bank and matt chesslock from virtue financial. what do you make of the first five days of the trading year here? >> this is the opportunity people have been waiting for. it's been very shallow but there is a pull back. if you were looking for value at the end of last year you have been rewarded so far this year. if you were playing the winners from 2013 obviously you haven't benefited as much this year. >> jeff last year earnings and fundamentals didn't matter as much as quantitative easing by the federal reserve. you think though this market is going to be show me right now. >> absolutely. we're no longer have a valuation

driven appreciation. it's got to be earnings going forward. i think today's fed minutes reinforce that with concerns about valuation. so it's all about earnings going forward. >> but bond yields haven't gone up as much as you might imagine. if the fed is going to be tapering, that would be something that would keep people from going to the stock market, wouldn't it? >> you know you'd think, but there's plenty of cash on the sidelines that we've seen. we've also seen the employment numbers increase. so people are feeling a little bit more buoyant about this market. maybe they're going to take this opportunity to re-enter this thing slowly. i think there is a backstop to the market that's not government related finally, and i think that's good to see. get them out of the picture, get the consumer back into it. get people back into equities and maybe homes. we see home prices increase. these are good things for the market. >> are you hopeful for this earnings season? >> we are hopeful. but i do think there's a difference now when you look at today's fed minutes, there's a concept that the fed has

introduced of concern over valuation at least in select small cap stocks. this tells me maybe we're put away from a bernanke put to being short a yellen call. >> for those who are not as attuned to the options market i know the difference between a put and selling a call. what are you trying to call? >> we had a floor under us because we had the fed -- >> that was the bernanke put. >> if we have a federal reserve that's expressed concern about valuation, that means if valuations get too rich the fed might take the punch bowl away faster. that tells me again reinforces it's all about earnings going forward. >> i got it. good to see you, guys. thank you. we'll head toward the close here. come back with the closing countdown for this wednesday. after the bell, when it comes to greek yogurt cho ban ni my daughter tells me is the king. that the company is now facing a backlash from loyal customers after shrinking its product by 12%. plus you get kicked out of the whole foods market because

of genetically modified ingredients so the company's founder and ceo reacts to that coming up on "the closing bell." you're watching cnbc first in business worldwide. yes! one phillips' colon health probiotic cap each day helps defend against these digestive issues... with three strains of good bacteria. [ phillips' lady ] live the regular life. phillips'.

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we were down more than 100 points for a time. so we're coming off that. and the 10-year note auction came out sort of anemic. first time since 2011 that the yield was above 3%. we're holding at the 3% level. warren myers, shouldn't bond yields be going up if the economy is getting stronger and shouldn't the stock market perhaps be going up at the same time? >> one would think that. i think what you're finding out though is that even though the fed and everyone thinks -- is saying that the economy is getting better it's improving marginally. i think because it's not super strong, that's why the bond yields didn't shoot up as much as one might think. >> what are you expecting on the jobs number on friday? >> i think you're looking right around that 200,000. >> it better be right? >> it better be. if it's 190,000 and lower, that's going to be a bad number. >> earnings start tomorrow. what are your expectations? >> i think they will be probably 70%, 75% beat like they have been but i think the lower expectations will continue to come out. >> you don't sound too upbeat.

>> i think we're due for a little bit of pull back but i'm still positive. >> thanks warren. always good to see you. down 76 as we head towards the close. we give back what we gained yesterday. that's how it works in this market and earnings start tomorrow. stay tuned for the second hour of "the closing bell" with kelly evans and company. >> welcome to "the closing bell" at this hour. here is how we're finishing the day on wall street. it was much worse for the dow. take a look at the screen. we have the dow off about 70 points. that's not as bad as a triple digit losses we saw earlier last hour. still sharply negative after yesterday. that makes it three out of four down days. the nasdaq is up 12 points. the s&p 500 closing down a half a percent. we're pleased to have eunice yoon here from beijing. also with us stephanie link mandy drury, and nathan

backrack. great to see all of you. stephanie link what is going on with the dow today? >> well i thought the data today was actually pretty good right? i think everybody was saying the data was pretty good and if you in addition to not only the adp number and the construction figure which was the best number we have seen in quite some years, you have had good ism employment numbers. the expectations for friday is that it's going to be a good number and we'll see what happens. the economic data in the u.s. is getting better. i think honestly kelly, we just have to get to earnings and listen to what companies have to say. we'll get a little bit of a read tomorrow from alcoa. i will listen more carefully to what they say versus how the stock reacts because they have very important end markets like aerospace and auto and that kind of thing. so let's listen. let's get to earnings. let's hear what the companies have to say before we panic about selling off and taking profits. >> a lot of industrial parts of the economy that are looking a little better. so what do you think? we come into 2014 and we start with it's a little bit down.

what happens now? >> i think we'll continue to fid a headwind which is going to be what will moderate wall street for a good deal of time and the headwind will be interest rates. i think what we saw today was we got back to that magical 3% number, and at that point everybody goes gosh that means i'm going to have to actually pay something for money when i borrow it. i wonder what that's going to do to my bottom line. stephanie is absolutely correct, you're both right, we have to get to earning season and realize we can actually have higher interest rates and the economy will still grow and we'll probably still sell houses and people will still buy cars because they're 11 1/2 years old. >> mandy, we've got in the early earnings results at least or the ones that are coming out before things officially get under way constellations brands was pretty good today. we're seeing for the most part they're clearing the bar, albeit a bar that's been set pretty low. >> this certainly isn't the first time this has happened. how many other earnings seasons have we seen where the bar is set so low.

i think stephanie is absolutely right. we need to watch what people say when it comes to the guidance in the earnings season but also we need revenue growth because obviously it's easy to get -- it's easy to cost cut and trim away all the excess and, you know, create the appearance of profitability. at the end of the day we need to see revenue growth come through in 2014. >> and watching out of the corner of my eye, it looks like macy's is laying off more workers. it looks like the job picture is there, but again the most important -- or the most useful thing really at this juncture would be even if it means a corporate profit margins come down a bit, it's because they're giving more of that pie to workers because the economy is better and workers are able to have some power actually. >> that's what makes the economic data that much more important. if we get better economic data not just manufacturing or jobs it has to be the whole gamut, it has to be autos, the consumer, if we get business confidence as well, you will get that top line number and that's what we'll be listening for. >> i hope the market takes good

news as good news. come this friday when we get the payrolls number and after the good adp number, we're starting to see the estimates go up above 200,000. i hope the market takes it well. remember in the past good news would be bad news for the market. >> and this would be a sign we have entered a different period. >> i'm going to jump in. >> please do. set us straight here. >> what was really interesting is i think say in the emerging markets people are going to be very excited about what they're hearing because there has been a lot of discussion about tapering. is this going to be something that's disruptive to the emerging markets. now people recently have been focused more on the pois that maybe this actually means that the economy is recovering. that's a really good thing to hear from especially in a place like china where the economy is so dependent on the recovery of the united states. >> mandy brought up this point. as people are looking for growth, raem growth and not just something that's in a manufacture earnings per share growth, they're looking to jor

overseas market. we have all of these different forces where it seems every day we're reading about some of the tech companies worried about the nsa spying stuff. even the revlons and l'oreals pulling out of that market. is this going to be the source of growth that people -- that it's been cracked up to be? >> again, depends really on which sector you're in but i wanted to point out one of the things you were talking about with the nsa. there was a lot of discussion about this because of apple, a lot of questions about whether or not the association between the possible link between nsa and kind of like the ability to kind of tap into your iphone would really be something that would spook a lot of chinese consumers. well what i always find interesting is in america americans are really worried about the idea of the government actually listening on their phone calls. whereas in china, it's assumed that the government is actually listening on your phone calls. so actually in china there's a

joke that the government authorities really like the iphone because it is the only phone that you cannot take the battery out and if you want to actually stop people from listening on your phone calls, you have to be able to pull the battery out and put it -- >> hold that thought because dominick, i mentioned macy's. we have a fuller market flash. >> that's right. so what we have with macy's here is an announcement from the company that they will be laying off about 2500 people. that's part of an overall organizational change that they're trying to implement. these changes are meant to help save the company about $100 million per year. again, cost savings of around $100 million per year is what they're targeting. so these layoffs, other organizational changes will be a part of the macy's story going into 2014. back over to you. >> all right. dom, some interesting news here from macy's. stephanie, thoughts here on this one? >> yeah. we own this stock and it's acted horribly over the last couple days because everybody is concerned about the holiday sales and the foot traffic and how weak it's been. that's no secret. i think that's going to be

obviously a very important theme when the company reports. that will be somewhat offset by the internet. this company they totally get it. they're at the forefront -- >> that's what i don't understand. macy macy macy's was supposed to be the winner. >> i got to tell you, i'm sure you had me on today because macy's is right here in cincinnati. but what macy's does know is they saw 15% less foot traffic and they got a lot of square tootsies when you take a look at those malls. they got 3% more sales out of those shoppers but they got a lot of overhead and internet is still only 10%. so while they get it in the short term they're also going to be getting it and feeling it in the bottom line. >> but if they're the ones that are getting it and they're laying off staff, stephanie, what other retailers are going to follow in their footsteps? >> i think all the department stores. look at jcpenney today. that was an absolute disaster. i think the off price retailers, the tjx, the ross stores are very well positioned.

they entered the holiday season with lean inventory. they will buy all that inventory and sell it at a discount. tjx is one of the best run companies. macy's are doing the right thing. they're doing what they need to do to produce the bottom line results and they've done a great job. that's why the stock even the rally that it's seeing recently it's still underperformed the group. if you wanted to own a department store, that would be the one you want to own. >> tim seymour is jumping into this conversation right now as well from "fast money." thanks so much. we've got a couple different things going on. i don't know what direction you want to take us. what jumps out to you about this market today? >> well first of all, the fed, it's nice that the fed is actually almost a side show at this point. pointing out the marginal efficacy of their strategy is something a lot of us have felt for some time. getting back to retail i think you have to go valuationwise and stephanie makes great points about what macy's has done in terms of the management team. if you look at the valuation of the s&p consumer sector macy's

is a name i think still has a lot of room to go. it's trading 16 17 times. that's value territory for a sector that i think a lot of hedge funds, a lot of guys i'm talking to believe that prices are very expensive here. that's to me the story of this market. i think people are truly rotating. they're finding places where there is real value but there is a real structural change going on with management. >> that's interesting, tim. the argument is there's still value in macy's. i wonder if after hearing what they have to say about the consumer and the retail season do you turn elsewhere and think about places you want to stay away from or call into question the macro pike tour at all. >> numbers we got in the last couple weeks on consumer spending and consumption, while on some level that scares people that want to talk about the redux of the housing bubble to me that is actually very positive. it gets back into the job growth, which then leads to telling you i think corporations are the ones that will be the surprise in 2014 on their

spending. that will also support this market. >> nathan, quick word? >> kelly, this market is trading at 14.5 forward earnings. we get any revenue at all, we'll be throwing confetti out again before new year's because we're going to find there's still room to grow if we get revenue. >> that's a big if though and we'll get into more of this coming up. everyone stays with me. thank you so much, tim. we'll get let you go. there's a special "fast money" coming up. >> we've been on tv for seven years, so it's our seven-year anniversary. >> congratulations. >> that's longer than "the brady bunch." longer than "jersey shore" and pauly shore. it's an amazing thing. the exciting thing about tonight's show we have seven a s a lucky number and con tates the seven deadly sins. we have a lot of trades tonight. we'll give you the seven lucky plays coming up and the seven lucky stocks we like for 2014 and, of course, the seven deadly sins. which places are people hanging on too long and where they need to be very careful.

>> thank you so much and congrats. microsoft shares were pretty weak. we'll go live to silicon valley for an update on the company's search for a ceo. and also here what top microsoft analysts are saying about the tech giant and if now is the time to make it a must-have in your portfolio. also john legere giving us his firsthand account about date crashing getting kicked out of at&t at&t's consumer electronics party in vegas. is that exactly what he hoped would happen? that plus all the headlines out of ces. you're watching cnbc, first in business worldwide. aflac! got 'em. ♪ ♪ 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

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welcome bark. microsoft shares hitting a rough patch after alan mullally ending months of speculation that he was considering the ceo spot. mullally saying he's not leaving ford. josh lipton the short list getting a little bit shorter. >> mullally says he's out. the question now is who is in? there's a list of obviously contenders one would be stephen elop. his fans say he knows mobile and microsoft culture. when he was at nokia, that stock nose dived 60%.

other contenders nadella, the kevin turner the coo. and finally one dark horse outsider that people talk to me about would be paulm ari maritz. he has a deep background experience with the cloud. so a deep tech veteran there. all possible contenders. >> stay right there. want to get some thoughts on the panel from this. stephanie, who would be at the top of your list? >> well the head of cloud internally is what's kind of the heavy favored from what i hear but the point is that i don't even think that mullally was the right fit to begin with. yes, he's an amazing leader and he's done a great job at ford and i'm glad he's at ford and i think ford is a buy off this especially since it's underperformed gm by 20% since the announcement has been made. but getting back to microsoft, the key is really going to be whoever gets in it's going to take time to establish the strategy, to figure out are they doing consumer are they doing enterprise? what are they going to do. i think that's going -- i think

the stock trades in a range. i don't think you're going to get 40%. >> what do you think of a microsoft here? i wonder if this all isn't taking too much time. they have got to act fast aggressively perhaps to kind of catch a bead on their rivals. is the ceo search becoming too distracting? >> i think the first thing they have to do is decide whether or not they can use this monopoly they have had for a million years. we call them a ewe till because they just lumber along and make some money and there's nothing exciting about them. i think as i take a look at the xbox and look at where you now see netflix starting to produce content, i think it's not going to be too long before in my opinion the next ceo might be the head of nbc right now because they need content. maybe bill gates instead of selling 80 million shares a year ought to take some of that money and go out and buy himself a network or something to give to microsoft then at a point in the future when they figure out what device it will be they will be better off. the xbox will get you a lot of gamesters, that's great but --

baby boomers -- >> my understanding is that division still loses money. it's an important device it's a toehold for them but there's a lot more to the story. >> but at the end of the day with xbox, microsoft is fighting for the domination of your living room. there's some interesting headlines but new projects going on. they are getting into the streaming zone the docu drama. and there was the news earlier this week and eunice you can speak to this more now china has lifted that 14-year ban on the sale of game consoles by foreign companies or made by foreign companies. so that's going to open up a whole new market to the likes of xbox. >> but for how long eunice? any clue? >> it's difficult to say because there are so many restrictions that have been put on these game console makers that would want to come in. you have to produce in china at this shanghai free trade zone. also there would still be a lot of restrictions and subject to

the titles -- the titles would be subject to censorship. currently the game console -- the gaming industry in china is worth $14 billion which is pretty much on par with the united states -- >> you get so much for free. i don't know if it's legal, but can't you already get so many games for free? >> here is the best example -- >> but another problem for microsoft in china is that you could get so many -- it's like all the software all the software systems -- i could go into too many stores and actually just by the system for like $5. >> nathan? >> the best thing you can say about why it is that you might not want to buy microsoft is when netflix came out with their first piece of content, it was "house of cards." you can sit for 12 hours. microsoft, the first thing, a documentary on atari. let me see. are you kidding? are you kidding me? >> just testing the waters. i think stephanie's point about

cloud is important here because if you look at amazon the way that company has reinvented itself and to some extent spurred an entire wave of northwesterlial ak-- entrepreneurial activity, that's going to be a $10 billion business in a couple years. does that make perhaps the cloud choice for important. >> i think to stephanie's point there's a lot of people talking about him. i think folks who criticize that choice would point out that's not the part of microsoft's business that's challenged. where they're challenged consumer and mobile. would nadella be able to address those challenges? i think there's a broader point when it comes to mullally. even if you believe he wasn't the right fit, i think there were a lot of investors, analysts i talked to who just liked this idea of an outsider because they think, kelly, it's only an outsider who can come in, shake up that culture, and maybe attack what some call the sacred cows bring and xbox. >> i don't think there's any

doubt if they choose nardelli or anybody internally that the stock falls. but this person has very good experience. he ran the online business. so he knows the company pretty well. and i think they want to keep -- i think gates wants to keep the company intact. i don't think that he wants to split it up. >> you don't see a breakup -- >> they finally -- >> spinning off -- >> they finally -- >> briefly. >> no. >> they finally got the commercials right. now they've actually got some really cool commercials and all the stuff will fit together. hey, why they're almost like apple. how about that? >> that's what happens when a campaign hand gets hired for an advertising shot for the company side as well. thanks very much. josh fascinating stuff. we'll have to keep our ear to the ground and see what happens coming up. speaking of tech another hot high tem at the consumer electronics show are the ultra high definition tvs. they offer four times the resolution of regular flat screens. half a million of them will hit shelves in the u.s. this year. senior editor peter kafka joins

us live. cnbc has a content sharing partnership with ricoh. great to have you here. 4k, we're hearing a lot of excitement about it. is this tv something that's ready for consumers and are they really going to respond especially given the high price tags? >> well they're ready for consumers. you could put one in your house right now. the question is what would you watch on it? the answer is not very much yet. so the question is if they sell more of these things will more content be available? >> and so start us off. along the line of progression, first it's like the big fancy multithousand dollar screens, but at what point does that really tip and start to become something where i as the consumer am eager and feel like it's time and something i want to upgrade? >> if you're optimistic about this stuff, you say these things were tens of thousands of dollars last year now they're in the single digit thousands. you can buy a very small 4k monster for 700 bucks today.

if you look out two or three years, they should be affordable at least for someone who has a little bit of money to spend. i think what you will see is a lot of content providers trying to wait for that and have content available when that's mainstream. >> looking around at ces at some of the models available, who are the potential winners in the space? >> boy, i'm not the one to gauge sort of the setmakers but i can talk to you about the contentmakers and netflix is going out and saying we're going to put a flag in the ground and we're going to make sure we have a lot of 4k content available. most of the 4k stuff you will get will come from web video providers like netflix or even youtube. >> i wonder what you think about this. netflix has done a really good job of driving consumer habits responding to their original content programming. is that enough to reshape consumer demand across the country? >> i don't think they think people will buy a 4k tv because they have netflix and there's a handful of shows available.

they want to make sure when 4k is available you can get netflix. netflix is stung by the video that web video looks crummy and they want to say this stuff looks really high quality and you can get it from us. >> but what kind of investment on the backend do they have to do to make sure it doesn't take up a lot more bandwidth, for example. so will it be worth it for them to make this big investment? >> yeah. the investment for someone like a netflix is on the software development end. they're working on encoding to make sure they can compress the files. one big road block is making sure people have fast enough internet to their house to get the netflix 4k stuff. you need 15k megabits to your house. there's a solution where you need 10 megabits to your house. that's only 25% of the country. >> peter, thanks very much. appreciate it. we'll keep an eye out for 4k in the months ahead. let's send it over to dominic chu for a quick earnings flash. one that appears to be a disappointment.

>> we have time for bed, bath and beyond. they posted a weaker than expected third quarter earnings number and sales number. they also cut their full year fiscal 2014 guidance as well as their fourth quarter guidance so, again, a miss on earnings a miss on sales, a cut to their full year, and a cut to their current quarter forecast. that's what has shares down about 8% bed, bath and beyond shares down 8% in the market. >> that's two big announcements from two big box retailers in less than half an hour. the term genetically modifies may be greek to you but not to the whole foods grocery lines. while cho ba ni is being pulled from shelf. the ceo speaks to me about this and other controversial complaints about the shrinking size, for example, of their flagship product, the yogurts, but charging the same price. you want to hear what he has to say about all these issues. keep it right here.

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you want to hear what he has to 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 and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com. welcome back. red hot yogurt brand chobani hitting a streak of bad press. whole foods won't stock the shelves because of genetically modified ingredients and down sizing from 6 ounces to 5.3 but keeping the price the same. lots to discuss with the chobani ceo. hamdi, welcome. >> thank you. thank you for having me.

>> whole foods says they will phase out gmos. general mills saying it's going to discount using them in cheerios. why do you continue to use gmos? >> well i think there's a lot of confusion on this topic. i'm here at nasdaq and in a closing ceremony with the fit week healthy eating. that has been in our dna from day one, and i think i was on some of your colleagues' program early on and asked the same questions. you know the story has changed a couple times. first they said it was reason of gmo and then says it was going to be some exclusive products and all other things. and i think more and more this type of stuff confused the consumers. now, there is confusion everywhere, but chobani has started with the belief that good food for everyone. let's take the preservatives out, take the colors out, take the hormone from the cows out which we have done it from day

one. and then it becomes, you know, available everywhere. it's everywhere. people know who to expect. chobani has not started with organic milk. there's not enough supply to make that much for us which is not accessible for everyone either. when it comes to milk which is gmo or not, it comes to point of can the farmers feed their cows with the corn that has no gmo in it and that's -- it's just not possible. it's not possible. if you look at any milk in the supermarkets which is not organic or any cheese or any dairy products from one end to the other end, they literally cannot say it's gmo-free, and i think the story of whole foods has changed a couple times and latest it's been about making more exclusive product for, you know, their consumers which i respect that. >> perhaps more going on than meets the eye. you raise an interesting point. we certainly hear this when we talk to general mills, for example, the other day. a lot of consumers are saying

half are up in arms about gmos. the other half doesn't know what it stands for. there seems to be an educational wave that's going to play out here. wanted to ask you, did it have anything to do with price/supply concerns with shrinking the size of the yogurt cups. >> of course not. that was planned a year ago. the industry standard is 5.3. we launched the 5.3. this year we launched our simply 100, only natural ingredients sweeten sweeteners. we couldn't do it all these years because we were having so much difficulty to make enough product. once we built the plant in idaho, then we could adjust it. and 5.3 was this opportunity to make sure that our chobani is compared to other ones is apple to apple. it's the same size, same calories or better or protein. but at the same time it gives us an opportunity to make a four pack and make it $1 every day.

four back you can buy $1 every day and promote more. it's about making the product similar to rest of the industry standards which is 5.3 and promote more and price it better and also make it accessible for everyone. >> and it's the size that's going into a lot of students' school lunches as more people get familiar with greek yogurt and enjoy it. i wonder what you think happens now. how stay fresh and relevant and exciting to a consumer in a market that's very quickly maturing. the yogurt is just starting up. people are getting more sophisticated about what to expect from yogurt. five years ago you had products filled with a lot of stuff that shouldn't be in yogurt. chobani led this effort and we believe strongly that let's not make food especially simple food like yogurt like a luxury thing, like a fancy thing. and if it's more available, it doesn't mean it's less valuable. but that's what we believe and

we want to make sure we want to make good food for everyone in schools -- >> final question because there's a message you emphasize is so important. do you worry that that -- that your sponsorship of the olympics coming at a controversial one plagued with worries about safety and human rights issues in russia will confuse that message at all? >> i don't think that human rights issue things. i'm really personally -- it's just at this time of the year this time of the age this kind of conversation should not happen. but we are a proud sponsor of our olympic teams and we have products in our -- in the training facilities now we're shipping to sochi, shipping to germany for the training and it's already in their kitchens. they're making smoothies out of it and the chefs are using it. and the whole company, chobani, and the farmers around it, they're so proud this simple good food made by big hearts is going to be part of their training. >> and a boon to the upstate economy as you guys have taken

off. hamdi, thank you for being here. really appreciate your time this afternoon. >> thank you so much. >> chobani from the nasdaq. we're heading back to the vegas. up next penny pritzker on u.s. government initiatives to spur technology innovation and growth. you won't want to miss what she has to say. keep it right here. make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. hmm, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that parker. well did you know auctioneers make bad grocery store clerks? that'll be $23.50.

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welcome back. we're going back out to the consumer electronics show for a first on cnbc industry with customers come mermerce secretary penny pritzker. >> thank you so much for joining us. tell us what brings you here to ces. >> i'm secretary of commerce and there's a lot of commerce going on here. one of the most important parts of our agenda is innovation. coming out to see what's going on but also to let people know how supportive we are at the department of commerce in terms of supporting innovation and entrepreneurship. >> one of the big concern of the tech companies is this nsa scandal. they're very concerned when they go to do business overseas companies are afraid to work with them. governments are afraid to work with them because of all of this spying. how do you address those

concerns? >> well, the president has asked for a review and there's been the review board and there's an internal review. i can't give details of all that. but what i can say is the president has asked us to think about the cost benefit analysis of surveillance as well as to take into account national security we have to protect ourselves, privacy. the president and i take privacy very, very seriously. it's extremely important, and, of course what's the commercial impact of all this? these are things being taken into consideration as the president determines where he's going to come out on the whole subject. >> what is your plan for how you're going to protect the companies here when it comes to their corporate growth? >> well, you know that's our job. our job is to set the conditions to innovators and entrepreneurs and companies in america can grow. our plan revolves around helping companies export. number one thing we've been asked by companies to do when i

go out and talk with -- i have talked to over 800 business leaders in the country in my short tenure. number one thing they want is trade. help us export. they recognize 95% of customers are outside the united states. help us enter markets, help us know which markets, and we at the commerce department can do that. we also work very closely on our trade agreements. we have new tpp agreement, new transatlantic partnership agreement with asia as well as the negotiations for new trade agreements with europe. that's the number one thing i hear from companies they want us to do to help them. >> we look forward to see what you do over the rest of your ten nur tenure. penny pritzker thank you for talking with us. >> we want to bring you a quick update on the situation happening around chris christie in new jersey which involved perhaps some people in his administration and their reaction when it came to the

traffic appointments or traffic situation out there. anyway, let's get straight to the statement from governor christie. he said what i have seen today for the first time is unacceptable. he's referring to tessxt messages. not only was i mislead by a member of my staff but this was done without my knowledge. this type of behavior is unacceptable and i will not tolerate it because the people of new jersey deserve better. this behavior is not representative of me or my administration in any way and people will be held responsible for their actions. the governor in other words, distancing himself quite a bit from those actions we reported on with eamon javers earlier. let's send it to dominic chu for a quick market flash. >> this is an update on the situation over at macy's. we told you about the job cuts. remember we said it's laying off 2,500 employees. it also reported a comparable store sales for the holiday season up about 3.6% for

november/december. it also sees 2014 earnings per share full year coming in between $4.40 to $4.50. that comes ahead of analysts' average estimates. so again so a pretty decent story. the job cuts obviously not a good sign but still cost cuts there better comparable store sales and a forecast at least for full year 2014 initially that is above analysts' estimates. back over to you. >> dom, thanks very much. another reminder that that kind of behavior is rewarded today. tired of the freezing cold temperatures? stick around for the stories heating up our website next. plus t-mobile's ceo explaining what he hoped to accomplish by crashing the at&t party at this year's consumer electronics show. they kicked him out of that party. lots of headlines from his presentation. we'll get the real story and bring that all to you right after this. don't touch that remote. who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ ♪ the shell brought him great fame. ♪ ♪ but then, one day, he

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good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. another market flash. straight over to dominic chu on this one. >> we have a lot of retail action after the bell. this time it's zumia. they reported comparable store sales in december that fell 2.4%. lowered fourth quarter guidance. taking an 8% hit for zumiez. back over to you. it's still freezing outside across most of the country but cnbc.com's allen was ler is here to warm you up with stories at the top of our hot list. >> we have obamacare again

throwing off the heat for us right now. we've got a write up of a souray from bank rate.com asking people essentially what's happened to your health care costs in the last year. they found people found their health care costs are going up for the most part. and they seem to be souring on obamacare, too. no doubt because of all the recent troubles over the last few months. on average 44% are saying they're seeing a big rise in their out of pocket health care costs and in their premiums. a little upset about it. the experts say this may be due to cadillac tax, things like that. >> of course because all at the time that actually health care inflation has been quite low but i digress. >> number two is my favorite guy, jim cramer. he earlier today had comments about marissa mayer and her performance and how she seemed to channel steve jobs. that's been up. and people have been fascinated by that, but you got two big names in the tech word. that seems to be the draw there. the third one is my favorite story of the day though. diana olick's write-up. her tagalong with the

foreclosure guys. >> i love that. >> she went along, took a camera crew with her to an actual where they bused into the house and see what's in the house and what kind of shape it's in. we have her write up plus the whole video plus extra video just for the web. >> look at that. >> that's been a big pull. people have been loving that. >> i love reading her stuff. that walk through was fascinating. thank you, sir. >> take care. >> mandy, looking at that i think it was kind of a little bit of a lens into how this whom foreclosure cycle on the investment side has worked. >> i haven't seen it. i think there was a tweet saying thank good we didn't have smell-o-vision yet. >> they were in rough shape some of these properties. you really had to be imaginative to think about how they go from kind of a dump to the transformation once investors decide to go into that space. real estate stuff, it's a hot market. this is a small example of what people, blackstones of the world included, are doing on a much longer scale. >> allen forgot to mention jim cramer not only looked yahoo!

because of maier but because of their investment in alibaba. >> big chinese online shopping. >> is it like 150 billion sometimes units is a figure i heard thrown around. >> it is incredibly popular. >> crazy. >> this is going to be the big ipo of the year, isn't it? >> oh, yeah. >> i would focus on the obamacare. if the hmo stocks get hit, from a portfolio point of view i don't think you want to be buying some of these hmos. it's not just because obamacare eventually will lead to better volume growth but it's also these stocks are highly correlated to job growth. if you think the job market is improving, these stocks should do better. >> we've been getting tons of tweets on our millennial guest yesterday. here is a clip of that interview if you missed it. >> i'm going to make you an offer. come and work at one of my companies for six months and i will -- >> nope. >> i will fix you. >> not going to happen. come occupy wall street with me and i will fix you. >> that was quite a response to that segment.

you had a lot of zinger tweets. coming up we'll read some of them. just ahead, the bad boy of telecom t-mobile's john legere fresh from the at&t party in vegas. the real story on why they escorted him out. we'll be right back. return on investment isn't the only return i'm looking forward to. and my parachute definitely isn't golden. [ male announcer ] for some, every dollar is earned with sweat, sacrifice, courage, which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. start investing with as little as $50.

welcome back. t-mobile has been making and stealing headlines this week and not just back. t-mobile has been making and stealing headlines this week. not just because the ceo was escorted out of a rival's party over the weekend. announcements out from the wireless carrier. important moves in this industry. we want to get straight back out to the consumer electronics show in las vegas. jon fortt is there. and the t-mobile ceo, john legere. jon? >> john legere just got off the stage. you want to talk about the big announcement that you're going to pay early termination fees to those who want to switch to your network. took shots at at&t sprint verizon. first, a big macklemore fan? >> big macklemore. >> you got kicked out of the at&t party.

>> i had a pass. i went. i love macklemore. >> were you going to make some mischief? >> i could see why they think i would. but this particular day, all i can tell you is the humanity that surrounded me and escorted me out. i'll give you one fun line. i said to the woman, are you sure that at&t wants to throw me out. and she listened to the mic. and she said i talked to the ceo. she wants you to leave. i'm not sure what that was. clearly, if at&t was angry enough to throw me out then today, they probably would do more than that. >> it seems like maybe they had a whiff of what you were doing because they targeted their $450 offer specifically toward your customers. so you're going to pay $350 worth of early termination fees for people to switch to your network. it's a vote of confidence in your network. but the financial implications, first of all. if people actually do that plus you subsidize the phones, you're talking potentially $500 million

if people switch. you're paying up front. and there's no guarantee people will stay. >> let's do a couple things. first of all, what's important, is this is not an offer. i've heard them say, these offers come and they go. no. this is serious, philosophical change forever in our business. the end of early termination fees, which we believe is important because it is the death null in contracts. what we've agreed to do not we'll pay. we're going to eliminate. and the industry has to respond. for a family of four $1,880 if they can get out of their contract. we will pay $350 a line for them to move over. and the fun part is they can make a profit on their phone. if you bought an iphone 5s you paid $199. we'll give you almost $300 for the phone. you take the profit. and then we'll give you a zero

down, all devices right now, zero down. equipment installment plan. you're out the door. when you get your etf, send it to us. we pay you direct. >> got you. can your network handle it? based on what you have now, the lte is very fast. but every lte network when it's new is pretty fast because there's hardly anybody on it. when there's traffic, how will your network hold up? >> couple things. on your beautiful phone that you're hiding down there, you have speedtest.net. everybody sits and does speedtest.net. we released the data that shows that t-mobile has the fastest lte in the nation. we announced 700 megahertz spectrum we started to deliver. our footprint is good. our spectrum is beautiful. our speeds are fast. a survey done last week said that 78% of customers would consider switching to t-mobile if somebody paid their etfs.

now, if they all come we have a different conversation. but right now, we have beautiful potential capability for the company. >> thank you. they're telling me i have to wrap up. no question what you're doing is a boone for consumers. makes you wonder what will happen if that at&t merger had gone through. guys, back to you. thanks for joining us john. >> great stuff, jon. we appreciate john legere as well. makes you wonder about the sprint acquisition. you were sending tweets about our millennial guest yesterday. the best of those tweets when we come back.

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[ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i-95. ♪ this magic moment ♪ it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ ♪ ♪

welcome back. "rolling stone" freelancer jesse myerson writing a piece about a few reforms he wants to see in this country. he got kevin o'leary's attention yesterday. and that lit up the twitter verse. we got a lot of responses. lisa tweeting i know some 4-year-olds that would like ice cream for breakfast. william tweeting how does the guest expect to pay for his utopian world. and you have to get the 50% of nonvoters to vote for their economic interests. most of americans are on your side. nathan, you think that's the case? most americans agree with him?

>> i think that most millennials, which is what they were talking about in the rolling stone article. the parents have been trying to keep this thing together with twine. and the millennials are coming along going, boy, it's actually -- you have to work hard and it's tough. college education doesn't go where it used to. >> yeah. but you sound sympathetic, nathan. do you blame your own generation for some of the woes you cast upon the rest of us? >> you know i'll take the compliment that you think i'm part of that generation. i mean i'll tell the folks in makeup about that. i think what it really says is main street the reason that main street says they don't like wall street is their reality is different from stockholders which 10% of the stock in this country is -- 10% of the population owns 80% of the stock.

that's where you're seeing it. that's the cold reality. they're not participating in the system from an equity side. >> the market the dow was down about 68 points. the nasdaq and s&p are doing a little better. you were pointing out, speaking of "fast money's" anniversary coming up. >> on this day, all the way back in 1987, the dow closed about above 2000 for the first time. you think of what's happened between then. 27 years of market histories. >> i want to see if booms and bust repeat this time around. thanks for joining me on the program this morning. it's been a lot of fun. this afternoon, i should say. we'll take another look at what happens when we get -- digest the fed minutes. we have alcoa kicking things off after the bell. you don't want to miss this program on the closing bell tomorrow. friday, we're building up to the payroll reports. a lot in store for the next couple trading days. a special edition of "fast money" coming up.

is melissa lee joining us? no. i don't know. melissa lee, "fast money." >> they're so busy with the anniversary. >> one person who won't be on "fast money." >> she will be watching. the special edition begins right now. the nasdaq markets in new york city's times square. >> seven years of "fast money." >> it's beautiful. >> seven years of investing. >> seven. >> and before twitter went mainstream. text us at 62288, enter the word fast and your message. and myspace was still cool. >> are you ready to update your myspace page? >> through the worst of times. >> thi