>> i think the fisherman killed it or it died on his boat. >> tragic. and then you eat it. >> i don't know if you eat it. >> it's like a waste of 360 pounds of squid. >> somebody call moby dick. they fight it out, whales and giant squid. thanks for watching "street signs." >> i'll see you tonight on "fast." "the closing bell" is next. >> i'm kelly evans at the new york stock exchange where we've got a rally. >> we do. i'm bill griffeth. with an hour to go you would have to say this is an encouraging stock market so far especially after that deep sell-off we saw yesterday, the worst in three months, and now we've come back especially the nasdaq has gained back most of what it lost yesterday. >> i think we were down 61 points yesterday. we're up about 65 now -- >> net positive. >> it's a springboard and you have to wonder what that's going to make a lot of bears, hedge fund guys, people sitting out of this market, got to wonder what

they make of this activity. >> earnings looked pretty good this morning. kind of mixed. retail sales figures for december okay. >> decent. >> not horrible, but okay. and we had a lot of fed speak as well today. charles plaser saying it is clear that the fed is tapering and is going to do away with quantitative easing but they're in no hurry to raise interest rates. >> and a couple big interviews coming up on the show. wells fargo among the banks kicking off a flurry of financial earnings this week. that company beating estimates. mortgage loans fell to levels not seen in five years. how much of a worry is that? we'll ask tim sloan in just a bit. >> look forward to that. and tesla has been a huge winner an reporting much better an expected fourth quarter sales numbers, but buckle up. we've got ceo elon musk coming along to tell us about those record numbers as well as the automakers -- >> do you use the word?

>> recall? >> upgrade. >> it's never easy with elon musk. according to the federal trade commission, it's a recall. but he says they need to recall that word. it's not a recall. but we'll talk about that coming up. >> yes, we will. we'll talk about that stock today up big. if you google the term big brother, meanwhile, the result might well be google. we'll look at the company's latest acquisition of a startup called nest and how it could mean google will know when you're home, what you're doing at home. how much could google profit or use that information? stay with us. >> and what are they up to right now? >> what aren't they seems to be the question. >> it's amazing. let's show you what's happening today. rally day from the get-go. we're near the highs of the session right now with the dow up 91 points at 16,349. the nasdaq doing very well, up 1.5%. gaining back-plus what it lost yesterday. and the s&p up almost a percent

now, 17 points at 1836. joining us in our "the closing bell" exchange is ra beck that patterson, david kudlow from mainstay capital management, rob morgan from fulcrum securities, and chris retzler. rebecca, let's start with you. when the bell rang on december 31 and we moved into 2014, it just felt like something changed, didn't it to you as well? >> no, it's been a very frustrating start to the year, especially for equities, and i think in periods like this -- today certainly feels better. periods like this, it's always going to take a step back and say has something fundamentally changed? has my thesis changed or is this just consolidation? at the end of the day i think it was just consolidation. i'm still very optimistic about equities this year. the data is still moving in the right direction. look at today. small business sentiment better. retail sales okay. data out of europe and japan both better than expected. so the fundamentals are telling us that this was just a lull,

nothing is broken. >> rob morgan, alcoa missed and shares were hit on that report, but what about jpmorgan and wells here? kind of a decent quarter. does that stand out to you in terms of pointing a market direction? >> i would agree with rebecca. we just came off one of the best years in basically two decades in stocks. we had some profit taking or consolidation. we didn't really have any catalyst to drive stocks upward until earnings season which just started. as you pointed out, alcoa missed, but it's just the first company that reports. it doesn't represent the whole, you know -- but, yeah, wells fargo and jpmorgan today. you get a couple good earnings reports and we get the dow up the way we're seeing it. >> david, you have got an interesting perspective. last year modest economy, but a stellar stock market. you think it's going to be the other way around this year, right? >> yeah. we think last year we had a great stock market and a modest

economy represent at this of the anemic growth we've had in this recovery for the most part. we think this coming year, 2014, we get a great economy or a much better economy, growth expanding a lot of what we've seen over the previous four years of this recovery, and the stock market more modest returns, but still on the order of about 10% to 12%. >> 10% to 12% at this point, you know, probably sounds okay to folks. chris, i'm curious, when you look at the people who are buying in for example to the bond space, the people who would find something below 3% attractive, overseas investors, pension funds. how important is that going to be here in terms of keeping yields low and what kind of boost does that provide to the stocks longer term? >> well, we think that as rates go up, that there's going to be a rotation out of fixed income into equities. so we're here at the needham growth conference today and we're seeing a host of companies that are generally optimistic about 2014. it doesn't mean we won't have a

potential correction here in the next few weeks which would probably be very healthy for the long-term direction of this bull market that we've been in. >> i'm going to steal notes from a guest you have coming up in the next hour. we've gone 830 trading days without a 10% correction. that's just astounding, rebecca, when you consider -- was that all fed fueled do you think? >> no, not at all. the fed is a big component of this and watching how the fed evolves under janet yellin will be important, but keep in mind we've had a tremendous amount of net stock buybacks over the last year. we've had people focused more on stocks for dividends, and we have had at least a reduction, i won't say a resolution, but a reduction of global risks out there. i think for the u.s. in particular, we cannot underestimate how important fracking and horizontal drilling have been. if you look at the trade report we got out of the u.s. last week, our oil imports are collapsing. that's a direct positive to gdp

and a really important support for the u.s. consumer, and i think that could take this u.s. economy above 3% this year potentially, and that's above expectations. >> and, rob, what's so interesting, too, is at the same time it's not the best news to the energy sector. you guys are underweight. we see crude under pressure today. where does it go from here? >> i would agree with rebecca the long term dynamics for energy look pretty good. just in the short run we think as rates go up, the dollar is probably going to go up, and that's going to be not so good for the energy and material space and gold and oil probably in a year lower in price. >> just to be clear, oil today is rallying, so we're up about 0.7%. some of those names doing a little better. so why do you stay away from the space in the longer term? >> for a very long term investor, some of those dynamics that rebecca mentioned with fracking, you know, there's a theory that really this is going to lead to the whole manufacturing renaissance of america and i kind of subscribe to that theory, but that

probably doesn't really happen until 10, 20 years down the road and investors are worried more on a quarter to quarter type how have you done for me lately? >> david, maybe i'm being impatient, but if you're expecting a better economy this year, shouldn't long rates be going up more than they are? the ten-year can't get above 3% right now, and there are plenty of people who feel it should be around 3.5% given the economy at the moment. >> yeah. we think we've still got further to go before rates reach what we consider normalized levels at 3.5% to 4% on the ten-year. and we saw a pullback of about 20 basis points here just recently -- >> that's the point. what's the message of the market if it's pulling back like that? if we're seeing a reluctance to push rates above that 3% level? >> look where we've come from. at the beginning of may, down around 1.6% on the ten-year. rates went up quite a bit, up to 3%. we had taper scare in september,

came back to 2.5%. we're going to have kind of two steps forward, a step back, but the long-term direction over the next year or two rates are going higher. we're going to see rates break above 3%, stay above, and head towards four on the ten-year over the next year or two. >> all right. folks, got to go at this point. thank you very much for your thoughts today. appreciate it very much. >> thanks, bill, kelly. >> thanks. stocks recouping some of yesterday's big losses. what's driving the come back? >> let's start out with the electric car business snp tesla was 20% higher than the estimate it gave at the end of the third quarter. elon musk will be live on "the closing bell." regeneron reporting u.s. sales of its i-drug will hit $1.4 billion for the year. its ceo is saying there's plenty of room to grow. he's going to be on "mad money" with jim cramer at 6:00 p.m. and

11:00 p.m. eastern. and a strong day for intuitive surgical as well. the company is delivering fourth quarter revenue guidance above wall street estimates. on the down side we have boeing. this after battery problems resurfaced on the 787 dreamliner. it released some gas from the battery. it was discovered during a scheduled maintenance exam hours before the japan airlines flight was to take off, and a tough day for game stop. this after the video game retailer forecast fourth quarter profits below street expectations and we end with intercept pharmaceuticals dropping another 32% after gaining more than 500% last week. bill, back over to you. >> what a round turn that has been. >> incredible. >> straight up, straight down. thanks, dom. elsewhere, there's an important development in that big nfl concussion settlement that was reached recently. a judge now says not so fast.

mary thompson has our details. >> judge anita brody declining to give preliminary approval for the settlement fearing the price tag may not be enough to compensate affected player. brody wrote, i am primarily concerned not all retired nfl football players who ultimately received a qualifying diagnosis or their related claim ents will be paid. under the terms of the sett settleme settlement, former players diagnosed with ailments stemming from concussions would receive cash payments ranging from $1.5 million to $5 million. brody laid out a hypothetical situation where the $760 million would fall far short of covering potential claims that could occur over the 65 year life of the fund. brody wants to see more documentation proving the $760 million is enough. in statements a lawyer for the

retired players said he's confident the settlement will be approved. the nfl called the settlement fair and said they will work to supply the additional information brody has requested. >> very unusual. both sides feel it's enough but the judge says not so fast. thanks, mary. well, it's a classic turnaround tuesday. yesterday at this time we were talking about a sell-off we hadn't seen in three months, but now we're up 95 points on the dow and the nasdaq has gained back what it lost yesterday. >> what are individual investors doing after the choppy start? wisdom is waying in. >> they've had a big year. new evidence that rising interest rates and new regulations may be hurting the mortgage market. when we come back, we'll find out how that affects the nation's largest mortgage originator when we talk to that man, wells fargo chief financial officer tim sloan joining us once again. >> and google already knows pretty much everything you do online with your android

smartphones, and now they might know what you're going when you're at home and when you're not technically online, like when you're sleeping how hot you keep your house. is google becoming a big brother. we want to know what you think. tweets on this subject will be revealed later on "the closing bell." you're watching cnbc, first in business worldwide. we want to know what you think.

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right now in trenton, new jersey, governor chris christie is about to deliver his annual state of the state address. a lot of governors do this about this time of year. of course, a lot of focus on him right now because of what has become known as bridgegate with all of the revelations last week about his senior staff taking revenge against the mayor of ft. lee, new jersey, back in september for not endorsing governor christie for

re-election and closing up lanes on the george washington bridge, the most heavily trafficked bridge in the world, and that, of course, caused the mother of all traffic jams in ft. lee, new jersey. governor christie went on to do a mea culpa news conference last week. he fired one his senior staff members, and now we're waiting to see what he has to say about all of this. we'll get a sense of that though from his speech. i guess he is going to acknowledge it, that it was a blow that his administration took. >> there will be a lot of people watching, of course, to see how he continues to handle the limelight and whether, again, this issue becomes something important enough to start influencing and shaping the race for president the next time around. >> he is certainly a gregarious kind of guy. we'll see what he has to say in a little bit. wells fargo shares have been under pressure just slightly. now it is actually trading a little higher, but not commensurate with the rally we're seeing today. a little better than expected

increase in fourth quarter profits to the tune of 11th, but investors are concerned about that 60% year-over-year decline in the bank's mortgage lending and a new forecast suggests that may not get better anytime soon, right, diana olick? >> that's right, bill. it will not. not with rising rates and more mortgage regulation. the mortgage bankers association today lowered its 2014 forecast for originations by $57 billion to 1.12 trm$1.12 trillion for t. it's not just refis. they lower their purchase loans to $677 billion. this after they saw a 60% drop in originations. jpmorgan not much better down 54%. refinance volume has been hit the hardest, but mortgage purchase applications have also been way down, down 16% last week from the same time a year ago according to the mba.

the mba has been warning against the new lending rules that went in effect last week from the consumer financial protection bureau. we get weekly mortgage applications numbers out tomorrow morning. it will be very interesting to see how the changes have started to play out. more online realty check.cnbc.com. >> thank you so much. and in a first on cnbc, we are joined by wells fargo cfo tim sloan. he is also a member of the cnbc global cfo council. it's great to have you here. and we look forward to hearing a little bit more about the quarter. let's start with this issue that diana raised. what about the mortgage business and the decline in revenues you have seen from 2012? >> kelly, bill, it's great to be here. >> good to see you, tim. >> we have seen a decline in the mortgage business. it's something that we candidly have been expecting for a while because of the fact that a year ago the disproportionate share of our mortgage originations were refinance. the refinance bubble has waned. i think the important thing if you look at our results for the

quarter is that notwithstanding a 38% decline in our mortgage originations, we were able to report 10% year-over-year earnings growth, our 16th consecutive quarter of earnings growth and our 11 consecutive quarter of record earnings. it's not dependent on any one business in particular. >> to some extent, you have to read the mind of a person who is going to take out a mortgage or wants to buy a house, and it's clear we're coming off these record lows we've been at for a few years now, and people are not going to want to buy a house, certainly they're not going to refinance if they've got those record lows already on the book. but at what point do you think they'll become comfortable enough to want to come back into this market in a little bigger way? >> well, they're coming back every day. we originated $50 billion worth of mortgages in the fourth quarter, which was terrific volume from our perspective.

it's just down a bit from the third quarter and clearly down from the refinanced driven volume we saw in the second half of 2012 and the first half of 2013. >> so is this the new normal we should get used to? >> i think it's more likely to be closer to the new normal than what we saw a year ago, but, remember, the housing affordability, what it costs for a median income in terms of a purchase for a house, is still very, very attractive and at historic lows. we continue to believe we'll see a very attractive business in our mortgage business, but, again, the important thing is that's just one of the many things we do at wells fargo, and we saw great growth in many of our other businesses, whether it was retail brokerage or credit card or auto or investment banking in this quarter. >> and certainly the growth in loans to commercial and industrial organizations catching people's attention and i wonder what you can tell us about who exactly these

borrowers are, what's driving the increase, and how much of an increase you expect in 2014. >> well, i don't know the answer in terms of exactly what the increase will be in 2014, but we do believe we can grow loans from our current base. we've been able to grow loans at a multiple of the industry for years. what you saw in the fourth quarter was $13.5 billion of net loan growth. that's 7% on an annualized basis. very, very strong. the exciting thing for us as you're pointing out, kelly, is it was very diversified. it was in our commercial and industrial business across the board. it was in our consumer business again across the board. what we're seeing is good growth reflecting an improving economy and our ability to go ahead and take share from many of our competitors. >> what role do you think freddie and fannie will play in the mortgage market in the future? you think they will play a reduced role to what they have, and what impact do you think it will have on the that i tour of

the mortgage business going forward? >> i think the mortgage business needs to be restructured because the bulk of originations are sold to fannie and freddie. there's a tremendous amount of discussion about that in washington. obviously, we want to be a part of that. i think over time what will happen is the portion of mortgage volume that is sold to fannie and freddie or the replacements for fannie and freddie will decline. there will be a private mortgage securitization market that's recreated in the u.s., and then we'll also hold some on balance sheet. >> does that bring rates higher when you don't have that housekeeping seal of approval from a fannie or a freddie that are buying up those mortgages having enforced greater due diligence in order for them to buy those mortgages? what happens to rates and the all quit of tality of the mortg. >> i think the quality will be

good. the quality mortgage rule was just introduced and became the rule last friday. the quality of mortgages we're originating are some of the best we've ever yororiginated. in terms of price, there's so many factors that influence the price and the rate of a mortgage. it can be the pace at which the fed tapers. it can be competition. it can be a lot of things. but the fact of the matter is rates are still at historic lows and housing has seldom been more affordable in the last three or four decades. >> tim, just one quick but important last question if i'm reading this correctly your balance sheet is $1.5 trillion in size. even though your revenue shrank last year, the balance sheet actually grew. that amounts to something like 10% of the size of the u.s. economy and i just wonder if you can speak to whether you think the balance sheet will continue to increase over time and if so, how much? >> well, i hope it does because when it increases over time, it means that we're continuing to serve our customers and growing

our relationships. so our best expectation for 2014 is that we will continue to grow the balance sheet because deposits will grow and also loans will grow. >> always good to see you, tim. thank you. >> thank you so much, tim sloan. >> thank you. >> the chief financial officer at wells fargo. >> of course, wells fargo is not the only bank reporting earnings today. kayla tausche recaps jpmorgans' results and tells us what to expect this week from other banks. >> in 2013 wells was more profitable than jpmorgan, the first time we've seen that in recent memory. jpmorgan still hampered by legal charge was three settlements weighing on the fourth quarter alone but tft optimism from executives that led the stock higher today. executives said those legal costs should keep shrinking throughout the year. that demand is increasing for loans even as yields rise and that continued credit improvement will let the bank release more money that they prior saved to cover bad longs. the bank's bottom line fell

7.3%. the boost it got from the so-called reserve releases from cost cuts, layoffs, and one time benefits from asset sales, not enough to can sell ocel out rev that are hard to grow. racing to replace 2 million cards after the target breach in q4. ceo jamie dimon addressed the continuing threat. >> all of us have a common interest in being protected. this might be a chance for retailers and banks to work together as opposed to sue each other like we've been doing the last decade. >> two industries for a long time that were antagonists. dimon said the threat of cyber attacks continues but the costs from target were de minimis. we have bank of america reporting tomorrow. that's expected to be a bright spot of the banks. citigroup on thursday. they keep coming, bill and kelly. >> important week for all those

financial services companies. thanks, kayla, very much. governor christie has begun his state of the state address in trenton. we can tiell you -- this is goig to be going on for a while and he will talk about issues that affect the state itself. as far as the bridgegate scandal of last week, he has reiterated the apology saying his administration let down the people we are entrusted to serve but that it doesn't define his team or his state. mistakes were clearly made, he said, and as a result we let down the people we are entrusted to serve. i know our citizens deserve better. pretty much what he said last week during that marathon news conference. >> i want to mention he immediately moves on to start talking about the economy and his track record in new jersey which, again, the more you look towards what is the big picture story for chris christie, something like economic performance is going to be really important should he decide to run in 2016. >> there are still investigations under way into all that but he is ready to move

on. >> we have half an hour to go into the close. we're seeing a 100-point rally on the dow after similarly declining yesterday. the nasdaq bouncing back up 68 points at this hour. the s&p adding 19. it's back to 1838. >> they bought the dip today. >> yes, they did. if you want to own michael jordan's college diploma or a dream team jersey, now you can. up next, we'll hear from the man auctions them off and you won't believe how he got his hands on them in the first place. it was an abandoned storage space. stick around for that amazing story. also, tesla sales shifting into high gear last quarter and ceo elon musk takes a victory lap with us. stay tuned for that. it's always entertaining, coming up later on "the closing bell."

up later on "the closing bell."

michael jordan may be long retired, but certainly his name and his brand are everywhere. recently his shoe and clothing line, air jordan, announced its going to open its own first store retail outlet in new york city. it will be called new york flight 23 after his number, of course, and in another story, some very rare and unique jordan memorabilia have also just gone up for auction. items that amazingly were acquired from an abandoned storage unit of all places. >> just like what you see on

television. among them his college degree, recruitment letters, and even his 1992 olympic dream team olympic journey. ken, it's great to have you here. how did you stumble upon this treasure trove. >> we were contacted by an individual who had purchased them from an individual who got them out of a storage unit some i guess eight years ago and delivered them to us. we inspected them. we spent two months researching them, researching the provenance and put them in auction. >> most of them were in a restaurant that was open in north carolina back in 1999 that had michael jordan memorabilia on the walls. after that closed they went on the storage unit and the storage bill was never paid. that's how they ended up there, right? >> exactly. they hung in jordan's 23 restaurant in chapel hill, north carolina, restaurant. it closed. it opened in 1999 and closed down a few years later. they were put in storage and

along with many other things that were not quite as valuable, were never picked up. >> michael doesn't want them back? >> i imagine he does. >> he can bid on them is what you're saying. >> exactly. >> how much do you expect these items to go for and by the way, what is behind the enduring appeal -- not appeal because that i understand, but the financial success of michael jordan who hasn't played basketball in over a decade? >> michael jordan is a one of a kind. he's the greatest basketball player of all time. he's the first athlete really to hit wall street, to hit, you know, to hit the advertising age with be like mike and all the nike commercials and his own brand. there's never been one like him before that, never one again. he's really the babe ruth of the modern era, and when you look at the items that are available at golden auctions.com, there are four unique items that were originally in the restaurant. >> i just have time to itemize them very quickly here, ken. you got the diploma and i dare

anybody to tell us what he majored in. we were talking about this earlier. >> i guessed economics. >> cultural geography, whatever that is. the recruiting letter from dean smith. so a letter from one legend to another when they were recruiting him there. another recruiting letter from his assistant coach. the transcripts from his days at unc and then, of course, we mentioned the dream team. i would think the dream team jersey is going to be the big one, don't you? >> i especially think that the dean smith letter to michael jordan, that could go for $25,000. it can literally go for $250,000. the dream team letter comes us from the basketball hall of fame. the two north carolina recruiting letters, the diploma and his transcript were from the storage locker find but they all happened to be in the golden auctions auction that's live on

gold. aucti>> we're strengthening the close with 25 minutes left in the trading session. the dow at about the high of the session, almost up 110 points now. the nasdaq, we closed here, that's another 13-year high going back to 2000. >> just to put it in perspective, the nasdaq is more than double the relative gain of the dow. we'd be up more than 200 points. but we have boeing, for example, weighing on the index. up next, we'll take the pulse of retail indexers when we speak to wisdom tree's chief investment strategist. >> and then elon musk will be here to break down the fourth quarter sales figures and, oh, so much more. a new government stat showing young adults only make up a quarter of obamacare enrollees so far. who will pay up to fill the gap? those answers coming up. keep it right here. [ male announcer ] this is the story of the little room

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as we all know, stocks clocked a monumental run in 2013 that helped reknnrenew the inte in the market for many retail investors. companies like wisdom tree benefited from that. perhaps the biggest hit was the japan fun, the djx. look at the performance in the last year but the nikkei fell a stunning 3% for 500 points overnight. we're wondered if wisdom tree is worried investors might not have the stomach to right now what happens next. joining us next is wisdom tree's chief investment strategist. thanks for being here. >> good to see you. >> how important is the dxj which allows people here or anywhere to get access to japan's markets but correcting or hedging for currency which is an important part of the story here? how much of a success has that been and what other kinds of products is that spurring throughout your company? >> it's been a phenomenal

success. the fund took in about $10 billion of net inflows last year. the japanese equity market returned more than 40% last year when you hedge out the currency. so it's a very important fund, and i think it alerted investors if they're investing internationally they have to be aware of the currency exposure. so the extent you can hedge the currency, in some markets it makes a great deal of sense. >> can you explain how you do that? how is that possible? because we just want to make sure people getting into this kind of product are fully aware of the risks. >> we go long the japanese stocks and when you buy the stocks in yen, you're long on the currency. what we do then is do an overlay using forward contracts. we're in a sense short the yen through the forward contracts and that gets us a net neutral position on the currency. >> theoretically you will make money on both sides of the trade. >> if the yen continues to weaken, it will help your total

return. if the yen strengthens, it could detract from total return. and it does add volatility to the situation. so last night is an example. there is volatility in this market, but we think we're in a multi-year bull market in japan. that's our view. >> what about a multi-year bull market here? yesterday it certainly didn't feel like that. what do you plan for and what do you see on the fund flow side at wisdom tree? >> the industry saw about $190 billion of inflows last year. it was of the best year thee tf industry has had. wisdom tree had a great year and we're continuing to see inflows this year. not just wisdom tree but the industry. we're seeing inflows into europe, some sector rotation going on within the u.s. market. but i think gradually investors realized etfs really belong in the core of their portfolio. if you just invested in the s&p you would have been up 30%. >> finish your thought. i'm sorry. >> i just think they make more and more sense the more and more people get exposure and

understand what etfs do. they're the vehicle for 21st century investing. >> i want to talk about the motivation to invest though. when you mention the gains in japan or europe or the united states, you're talking about countries that are being spurred higher by the central banks and the intervention and the easy money policies. people aren't -- in the past they weren't investing so much on the fundamentals as they were on the market momentum fueled by the fed. does that change this year especially when the fed starts tapering? what do you think? >> well, central banks are always very important. you have to keep your eye on liquidity but you also have to keep your eye on the fundamentals. the reality is the u.s. has had terrific dividend growth over the last three to five years. they've had double digit dividend growth in the s&p last year and we project about 11% dividend growth in the coming year. we look at all 1300 dividend-paying securities in the u.s. so there's a lot of health in terms of dividends and there's health in earnings. if you go back a year ago, the

s&p is up about 9% from this time last year in earnings growth. so there's a lot of fundamental support underneath the market. and i think as the tapering discussion plays itself out and people start focusing again on the keys, personal income, consumpti consumption, savings, consumer confidence, there's a lot of factors right now that give you reason to believe this bull market has legs. >> you just mentioned it perhaps and real quick i just wonder what the next wave of etf innovation is going to look like. >> wisdom tree recently launched products that help investors manage interest rate risk. i think what you're going to see more of is firms like wisdom tree taking what had been institutional level strategies and democratizing them. putting them in an etf and giving them as tools that advisers and investment firms can use with their clients. >> call it the taper fund. you're welcome. that's free. >> thank you. grazi. >> thanks, luciano.

happy new year. heading toward the close. we're hanging onto these gains here. the nasdaq is still the leader up 70 points. exceeding yesterday's decline. look at the dow up 110 points right now as we have about 15 minutes left in the trading session here. so the holidays are over, but there may be plenty of retail stocks that are still worth looking at. dom chu will have some nax for us next. >> after the bell, goggle's purchase of nest have people talking and some people worried. online, on your phone, and now in your house? google can know what you're up to at all times. is it becoming big brother? tweet us your thoughts @cnbcclosingbell. ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ [ male announcer ] the beautifully practical

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if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. it's been a difficult week for retailers with new revelations of the credit card breaches, yet more stores admitting hackings at this point. >> and yet no one is about to give up on the retail sector. dominic chu is tracking how some companies have been performing in the post-holiday sales season. >> what it comes down to is we know that the consumer discretionary stocks were the best performers last year. they haven't really taken that performance into the first week and a half or so of this year. if you look at the s&p 500,

consumer discretionary stocks, they are for the most part down 2%, 2.5% to start the year. it's one of the worst performers on the s&p. we wanted to take a look though at some of the stocks that are actually making some positive headlines, not necessarily just in the s&p 500 but in the retail sector overall. we know lululemon, jcpenney, sears have all had rough starts to the years. check out these names. francesca's stores are up 15% just this year. we're only a week and a half, two weeks into the year. that's a big move. also discount clothing and fashion company stein mart is up 11% so far in 2014. another decent winner, again, just a week and a half to start off the year. abercrombie & fitch, yes, it's a roller coaster right but a nice strong start after a rough year. we're talking about macy's, one of the biggest department stores out there. it's up 3%. they own bloomingdale's and that

stock has been pretty decent. if you look at the overall picture, one more ancillary play that's not necessarily a retailer per se is a company called tanger factory stores. these are the outlet malls you might have around where you live. those massive, massive stores. this is a real estate investment trust. it's up 5%, 6% just to start the year. retailers doing well. kelly, bill, also some of the real estate plays, especially those reits surrounding the retail space. back over to you. >> everybody loves those dividends. >> thanks, dom. heading in the homestretch. only ten minutes left to go into the close. the dow is up only about 93 points. we say only because we were up triple digits moments ago. >> art cashin telling us the bias is pretty much flat. new york yankees shortstop derek jeter rarely makes an error on or off the field. now he's teaming with the former ceo of lululemon. they're working on a new prepared foods company.

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coming up on the seven-minute mark. hanging on to gains. yesterday totally different story. today rally mode. we had decent earnings from some of the big banks. we have more coming tomorrow. we'll see what the tone is at that time. right now the dow is up 94 points and the nasdaq is ready to set a new 13-year high going back to september of 2000. joining me right now is michael underhill. he's chief investment officer at capital innovations. welcome back. happy new year. >> great to see you, bill. >> yesterday down 1%, today up 100 points. which market is kre he hacorrec? >> what you're seeing today is a dead cat bounce. really? >> you're seeing a bounce, not significant but last time i talk to you back in december, we looked at some of the anecdotal evidence. true to form you saw december 3% to 5% equity market upside. you saw the nasdaq, the industrials, they participated. you are seeing people tap the

breaks a little bit. you're seeing money go constructively into fixed income. >> you're not constructive on a higher market right now? >> actually i am. i look at industrials, transportation, housing numbers. look at the railroad industries and -- >> transports have been setting all-time highs. >> it's oil by rail car. you're seeing things like grain, transportation, commodities by rail car. when you look at the infrastructure in the u.s., toll contin -- it will continue. >> you think commodity prices will go higher. >> i think when you look at what's going on, you're seeing a slight drifting upwards of commodity prices, but when i talk about infrastructure, you're seeing that 8% to 10% upside between now and the end of june. first two quarters i see 8% to 10% upside. >> what would you avoid? >> i look at anything that's incredibly duration sensitive. fixed income, reit exposure. >> because rates are going up. >> we're in a taper environment plus interest rate increase

environment. when you look at the steepness of the yield curve, longer time a lot of people are trying to handicap that. >> all right. looking for juice. we got it today. michael, always good to see you. thank you. >> thanks. >> take a break, come back with a closing countdown for this tuesday. and then tesla shares, they've been spiking after better than expected sales of the model s. coming up, ceo elon musk will be telling us what's driving that growth. and privacy advocates are turning up the heat on the google's acquisition to buy smart thermostat maker nest labs. it allows them to monitor your energy use at home along with being able to monitor everything you do online. we want to know whether you think google is on the road to becoming big brother. we'll air some of your best tweets in the next hour of "the closing bell." you're watching cnbc, first in business worldwide. [ male anno] the new new york is open.

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yesterday, as you know, but now we have exceeded yesterday's high. so this could be, bob pisani, for some technicians considered a key reversal day. >> that's exactly what it was. instead of ending near the bottoms, we're ending near the highs. >> we'll see if that's significant or not down the road. >> i thought it was important that fisher's from the dow's head said we'd end bond buying. he's been in favor of it for a while. market didn't react. charles plosser from the philly fed said we might have to get aggressive in raising rates. a little on the aggressive side even for him and the markets really didn't react that much to it. these are hawks and as has been pointed out before, hawks tend not to move the market as much when they make hawkish statement. >> tomorrow more earnings coming our way. >> it was important i think wells fargo, every single metric was exactly in line with expectations. the market had very little reaction. exactly what wells fargo to

happen. >> thanks, bob. see you later. that's the first hour of "the closing bell." we've had a pretty good rally today. what happens tomorrow? monday a sell-off, today a rally. stay tuned for the second hour of "the closing bell." elon musk joining kelly evans and company. see you tomorrow, kelly. thank you, bill. welcome to "the closing bell." i'm kelly evans on this, well, we could call it a turnaround tuesday. stocks gaining back most of yesterday's losses. here is how we're finishing the day. the dow adding 113 points staging a bit of a late-day rally despite being pretty strong all day and being weighed down by boeing. we'll get into that in a moment. the nasdaq the outperformer by a yard. 1.7% higher adding 69 points. that more than erases yesterday's decline. and the s&p 500 a pretty broad based turnaround as well. up 1%. joining me now around the table

sharon epperson and kate kelly, cnbc contributor carol roth. heather hughes from sun america funds and "fast money's" guy adami here to king things off in the "a" block. let's talk about what jumps out to you about the market action today and where this leaves a volatile and choppy trading month. >> what jumped out to me was i thought we'd have follow through this morning. i was convinced yesterday after the close we'd have another down day anywhere from 10 to 15 s&p handles to the downside. earnings to me have been okay. the jpmorgan report i thought was very good. some of these retailers were lousy, and i really thought that we'd start to see the follow through on the downside. today caught me off-guard. i'm not calling it a key reversal. i'm calling it further choppiness in a market i still think heads down towards 1750 at some point in the s&p. >> heather, what do you think? is this a positioning story today? in other words were a lot of people kind of like guy coming into this thinking maybe more of a breakdown and all of a sudden e

re-evaluated. >> today was a big day. if i saw another sell-off today i would be a little concerned. that by the dip mentality, we saw it hold true. guy alluded to the retail numbers. that's key in terms of the driving factor of the economy as consumer spending does account for 70% of gdp. december numbers were 0.2%. >> what's your read on it? it was an interesting report. it was kind of like overall pretty good but it was actually a little weighted more towards necessities than, you know, the more kind of -- diggs kretiscre items out there. >> we saw a lot of promotional cuts and we're see a camp up in e-commerce divisions. you're looking to -- traffic is moving online and not to the physical stores. >> interestingly enough, retail was moving down again this year for the whole year overall for the past three years. you look at a 2011 to 2012 to 2013, it's a downward growth

trend which to me is very concerning. on top of the fact we barely made the retail number for fourth quarter. a lot of that will come -- >> at the same time -- >> expense of margin compression. >> consumer discretion was the best performing sector in 2013. you look at a company like amazon even if you want to throw in the googles of the world where they're increasing share from some of these other players. so overall, kate, the picture is probably a little healthier than what we're getting from some of the name brand stores. >> well, i do think, kelly, you're seeing an overall consensus we're going to have a good, solid year, maybe not as dramatic as 2013 in the equity markets but a good up year. at the same time though, i'm not sure there's consensus on where we're going in the next few months. when i talked to professional traders, be they hedge funds or folks at banks, i mentioned this on the show last week, they're going to see a 5% to 15% pullback in the first quarter -- >> but --

>> are you nuts? >> when people look at their statements coming in, they want to continue those gains, and the financial advisers i'm talking to saying it's very difficult to get their clients to understand now is the time to rebalance. if you want to see a pullback in the market, you want to continue dollar cast averaost averaging. it's not going to be exactly the same. >> just come back to the point that guy was making. what happens if we don't have the 5% to 15% pullback? what are the people you're talking to, what do they do? >> on the with unhand, there are a number who say look at the price ratio of the s&ps. they scoff at the idea we're going to have any serious gain. at the same time, i think it might be a welcome opportunity to resettle a little bit as some of our panelists are saying. it's maybe a chance for the retail investor to get in at a slightly cheaper level.

also, i think people are willing to take chances in january because it is a fresh start. >> all right. guys, we're going to leave it there for now. we have a big interview coming up. guy, thank you for swooping on. we can catch more of you on "fast money" at 5:00 p.m. look at shares of tesla. they were surging on better than expected sales in the fourth quarter. tesla delivering 6,900 model s sedans, 20% more the company said than it originally forecast, but there's also a dust up tesla is having with the government about when a recall isn't really a recall. amid all of that, joining me now is the tesla ceo, elon musk, and with us cnbc's very own phil lebeau. phil, start us off. >> thank you, kelly. elon, thanks for joining us today from the company's facilities down in southern california. let's start first off by setting the stage for everyone. when you are putting out the tweets today saying you object to the use of the term "recall" from the federal government, this has to do with a fix for the charging stations that you guys announced last friday.

you filed the paperwork with the federal government. it comes in and is listed on the national highway traffic safety administration as a recall, but you say that shouldn't be what it's tabbed as. you think it should be called simply a remedy or something other than a recall. explain. >> sure. well, the word "recall" is vestigi vestigial. in the past the only way to update a software in the car was for the car to be brought into the dealership to get serviced and they'd have to plug it in and update it, but all of the tesla vehicles have an over the air update capability just like your cell phone or your laptop. so effectively it's a bit -- it doesn't make sense to call it a recall in this situation. it's an over the air update, so it's just -- it's not a word that makes sense in the 21st century for the model s.

now, i think there are cases where a recall, of course, is necessary when there's a mechanical problem with the car and that requires the car to be brought in but that's simply not the case here. i wouldn't sort of characterize this as, you know, as being at odds with nhtsa in any significant way. we just wanted to make sure we clarified to customers that they don't need to bring their car in. they could be under the wrong impression that they need to bring their car in and that's simply not the case. >> is this a necessary upgrade for people though? in other words, is it an upgrade they need and ought to make in tesla's opinion? >> well, the over the air update has already taken place. it took place last month. >> the reason i ask is this. there's something very different between what you're kind of describing as a software or hardware upgrade and a bug or an issue or a problem that needs to be fixed. which one is it? >> no, i think you're creating a

false dichotomy there. the remedy in this case was to do an over the air update which we did last month, and obviously bringing the car in is kind of pointless because the software has already been updated. >> but it is a remedy. am i correct, elon, not to cut you off? >> yeah, yeah, it's certainly a remedy. it's just that -- there needs to be a better word than recall to describe -- remedy would be certainly an accurate way to describe it. but i really hope that's -- that's the least important thing that was announced today. i think the most important by far is the fact that the demand for our cars in the fourth quarter was very high and we actually exceeded our guidance by almost 20% delivering 6,900 cars, and the key factors that we ascribe that increase to are the fact that people realize that our car is the safest car

on the road. it has the lowest probability of injury of any car. the model s and tesla is the only -- tesla is the only manufacturer to have no deaths or serious injuries, and it's virtually impossible to have a car that is safer than the model s. >> elon -- >> and i think that was a key factor and then also were the sales that in norway, for example, we have the highest sales per capita of any country in the world. in fact, for a few months in the fourth quarter, we actually were the most sold car in norway. number two was the vw gulf. >> and that's certainly something that the market is rewarding you guys for today. they like the performance obviously. i just want to go back to this point because some of the investors that i speak with about the sales figures say they didn't remember seeing a revenue projection when you're talking about beating that projection by 20%. obviously the deliveries are above what people were

expecting, but can you comment on that language at all? >> i guess in our case we have basically one product, so for us delivers and revenue are very, very similar things. there's not a meaningful difference between the two, . we don't have a wide range of products. we really just have one. >> what is your production rate as you are standing right now? is it 600 vehicles per week? where were you standing at in terms of your production and what we can expect for 2014? >> i think our reserve comment on those points for the q4 earnings call which is scheduled for next month, but i'm very optimistic about 2014. you know, our rough aspirations as i have said before are to be somewhere in excess of 800 vehicles a week by the end of

the year. obviously we'll try to exceed that, but i'm confident we can meet that number at a very minimum. >> and how important is it -- i'm sorry, phil. i was going to say real quick. >> go ahead. >> -- to stay an independent company here because people love to talk about who could be a potential bidder for the tesla. >> yeah. no, i think tesla is going to remain independent as far into the future as i can imagine. >> phil? >> elon, one last question for you. what's happening with china? have you actually started shipping model s to china? >> actually very optimistic about our progress in china. so we expect to start shipping -- we're putting cars on a boat essentially in about a month, and then they'll -- we're hoping to make our first deliveries in china in march. we're not certain but we're hoping to do that, and i think towards the end of this year

we'll see very significant sales in china. we've seen a tremendous amount of enthusiasm for the product, and whenever there's sort of a tour group that comes by, the most enthusiastic people about our car are people from china. so i think that bodes very well for our progress in that market. >> and the folks who have put down money -- >> sorry, before i forget, one other thing i should say is that the right hand drive version of the model s will be coming out in april. that's going to be important for markets like the uk, japan, australia, hong kong, singapore and that kind of thing. >> absolutely. i was going to ask for the people who put down deposit for the model s when they can expect to be driving that vehicle? >> we expect volume production of the model x to be basically in the first half of next year. so we'll have -- as with the model s, the initial production starts off slowly but grows exponentially. so we're about a year away from

the first model x deliveries and probably another three to four months after that will be -- will be the point at which we do volume production of the model x. >> and in terms of your work on -- >> go ahead, phil. >> i was going to ask him quickly on the model e in terms of the mass market model, any update in terms of how -- what kind of progress you're making there? >> yeah. so key with the model e, that's a vehicle that would be smaller than a model s but half the price, key to that is solving the large-scale battery production challenge. i'll talk more about that next month in the q4 earnings call, but i'm very excited about our plans for a giga factory. it would be the biggest battery

factory in the world by far and we'd do it in partnership with some other companies and that's shaping up really well. i'm very excited about it. we're making the final selection as to which state it will be in in the next month or so. >> and the auto industry watching as tesla continues to shake things up. elon musk, thank you so much for joining us this afternoon. phil lebeau, really appreciate it as well as we watch an outperformer in this market. thanks, guys. google's $3.2 billion deal to buy nest meanwhile raising some red flags, namely is google becoming big brother? think about it. google know what is you search for online, who you e-mail, and now effectively when you're home. could know a lot more about what you do when you're at home depending what nest develops next. we want your thoughts on this touchy issue. tweet us @cnbcclosingbell. put them on air at the end of the show. ahead, we'll have an update on what new jersey governor chris christie said in the state of the state address about the george washington bridge scandal. keep it right here.

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welcome back. google's latest acquisition of nest labs, a home automation company, bringing more focus on privacy issues related to the company. does the search giant know too much about anyone who uses its

services? now not only google being able to track your online activity and e-mail conversations, it could know the temperature setting in your home and nest could be developing other in-home desvices that will tell google more about what you do in your home and when you do it. let's ask carmen about it from consumer watch dog. >> thanks for having me on. >> it's early days still as we see more and more smart devices coming. what's your position with regard to the disclosures and any, for example, antitrust concerns or just trif privacy concerns gene for the tech giants? >> this acquisition of google has the potential of being a google home invasion but consumers don't have the equivalent of 911 to call. our homes are in many instances the last bastion of privacy.

this is giving google the upper hand of invading that privacy. >> carol, what do you make about this? >> you know my goal in life is to be a celebrity recluse like howard hughes. i'm vehemently against this. from my perspective i think the luxury of the future is going to be privacy and i think that you're going to see a bifurcation in the market here -- >> wait a minute, privacy isn't a luxury -- >> no, it is going to be a luxury because between what we are putting out -- what the government is tapping into, and what these consumer products companies are now coming to market with, it really is going to become a luxury. i think you will have a bifurcated market. while you have people developing smart technologies, you will find people -- >> wait a second. i think you're making good points but am i the only person not upset about this. i don't mind google knowing what the temperature is in my home. i consider that to be a relatively impersonal detail. if we were talking about putting cameras in my home, i would be

upset. i'm one of these people who doesn't take a frequent customer card from the drugstore because i don't want them to track what i'm buying at the drugstore. >> the other thing is it's going to take a while for this to happen. think about what the nest co-founder even said at ces, how long it's going to take for the development of this connected home. we're talking about the early '90s with the adoption of the internet and this decade where it became mainstream. >> that doesn't mean it's -- >> it's a gateway drug, folks. >> do you have a nest in your home? >> i have one. it's been in a box for the last month. my husband and i love the internet but it took me a while to adopt it. i think the same thing will happen. while we're talking about privacy concerns, more consumers will think twice about even adopting this type of -- >> just because it's a long lead time doesn't mean it's a nonissue. i hear you and hopefully we will develop privacy safeguards in the time we may have, but i still think it could be an issue.

i'm not sure the smoke detector and the thermostat are really the problem. >> what about some have suggest what had we need is disslow hc e closure on some of the devices so when you buy something as a consumer, you may be entering a relationship that gives up your privacy to a large extent. >> well, we need more than just disclosure. we need consumers' ability to say don't share this information with anyone else. i don't know that many consumers are going to be concerned if information about what the temperature of my home is, where my thermostat is set at but what about when a refrigerator starts tracking when we need new milk and sending us a notice or when our liquor cabinet starts tracking when we finished that bottle of whiskey and not only notifies us, but advertisers, and insurance companies and

employers. >> you never agree to the nsa listening to your phone calls, i get that. but they're using this, google and nest, to increase their services to the end users, hence the consumer. if you don't want them tracking what temperature it is in your house, you don't buy it. i think ford is also tracking their cars and there's a big debate on that. so you don't buy ford. >> i was going to say the reason i raise it in this disclosure issue is because i think a lot of people -- if you buy nest, you kind of know what they do. you have a sense of the relationship you're entering into. you maybe didn't know that until now with regard to the car that you're driving. that was my point. >> how many people read the disclosures and the agreements that you sign online? you agree to all kinds of things that invade your privacy. you can have disclosures coming out every orifice. it's not going to make a difference. i think you have to be really, really clear as a consumer on what it is that you want to do in these kinds of relationships. here is the other thing, kelly. google is probably going to use

this as a leader to connect to their other products. if you want to change your thermostat, you have to have a google plus account or you have to have a gmail account and they have new access points. it's a way for them to know what you're doing mobilely, on your body through google glass. >> if you think about the start band that track the number of steps you take, the quality of sleep, you can imagine it all being of a piece. just last week we were talking to jon fortt and julia at ces and jon thinks the next wave of interesting products is in this home security area within people's houses. here we are literally one week later with google making its second largest acquisition in history. >> consumers have a choice with a public company. of course, with the government sector, we don't have choice. that's a different story. >> got to leave it there. carmen, thank you for joining

us. it's an important debate. what does christine day have in common with the new york yankee short stop derek jeter? apparently neither one of them wants to talk about alex rodriguez. courtney reagan did try. but they are both hoping to hit it out of the park with a new food venture. has got it goin' o♪ ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ [ male announcer ] the beautifully practical and practically beautiful cadillac srx. lease this 2014 cadillac srx for around $319 a month with premuim care maintenance included. ♪ she loves a lot of it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right.

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the nasdaq moved even higher. what drove this market today? dominic chu is keeping an eye on the big movers. >> best move of the year to the upside. we begin with jabil circuit. it gained ground after goldman added the stock to its conviction buy list citing some valuations, so those jabil circuit shares on the upside. a big day for control4. it surged as investors look for the next nest labs which, of course, was acquired by google for $3.2 billion. the stock began the day with a market cap of $400 million and higher today. a tough day for industrial 3d printer stratasys. we're going to finish off, we have to, with intercept pharmaceuticals dropping another 30% after gaining 500% off positive data. back over to you.

>> we've been asking what yankee shortstop derek jeter and outgoing lululemon ceo have in common. the answer is food. christine day will become the ceo of luvo. it is backed by derek jeter and jennifer garner. a cnbc exclusive christine day joins us from the icr conference in orlando along with courtney reagan. >> good afternoon. i am joined by christine day. going to start a new venture. why pick this company? you could have gone to probably any number of companies. why luvo? >> for me it's about purpose-led companies, and something that i can transforms industries in. reinventing the frozen food aisle with healthy foods that's nutrient dense, that's good for people, that reintroduces people to food they should be eating and love. that's a mission i can get up for every morning. >> a lot of people were surprised when you announced your retirement from lululemon. you did so in june.

when did you make the decision to join luvo? play us out the time line. >> i was approached by the founder steve in september. took us a little while to kind of coordinate our schedules, so it was really november when we kind of got into a serious conversation, and at first it was about a strategic adviser investor. i decided to make an investment in the company and then as steve -- and i started to look at the business model. i said i want to run this. and that was steve's dream all along and he's a smooth talker, but i really feel like the time is right. this is an industry that's about to make a huge shift, and i think health and wellness are on everybody's mind right now. >> and you didn't even have to leave vancouver. >> i don't have to leave vancouver. it couldn't get any better than that. >> i think kelly has a question for you. >> it's kelly here at the stock exchange. this category, as you mentioned, is one where there's already a ton of competition and the evolution is already happening. so the question would be, first of all, what's the edge that you guys are bringing to the space and, secondly, is it intentional that the name sounds like

lululemon? >> i had nothing to do with that. i do appreciate the lucky "u" in both starbucks lu lu mlulemon aw in luvo. i think what's different about the food is first off is the taste. i think the only way for to you experience that is to actually try the product. but this is incredible tasting food and that is one of the things that really convinced me. the second is it's nutrient dense. i think the words, you know, antibiotic free and hormone free and things are really big in the reinvention but nobody talks about the nutrients in food and what's actually needed. whether it's low sodium, low sugar, high fiber, and nutrient dense. that's the type of food we need to be eating to become healthy. >> and if i could pick it up here and just talk to you a little bit about lululemon and the company you're leaving behind. we talked about the disappointment that the market really showed when you announced your retirement. we have a new ceo that's getting ready to start. how confident do you feel with this new team as you walk away from lululemon and start your

next chapter? >> i'll tell you, i don't think you have a better cfo than john curry who is there. tara who just joined the company and is here at the conference is amazing and she's going to bring a great leadership. and, you know, this is a brand that has a long runway. i believe in this team. i believe in this company and i'm committed to a successful transition and we're going to meet up next week and have a great time sharing everything that's great about lululemon and he's going to carry it forward. >> okay. kelly wants to jump in again. >> i'm just curious when you look at the company now and the performance, this has gone well beyond just kind of a slip up here and there. the market is valuing this company at levels much below what we saw at its peak. it's kind of been a story about a rise and a fall and reflecting on that, do you wish it had turned out differently or is the story, i guess, not over yet? >> i think everybody would love to leave on a high note, and it's probably, you know, my

biggest personal disappointment in what's happening right now, but this is a company that has a long runway, a lot of brand loyal fans. i see it as a momentary stumble with great opportunity going forward. i think this new leadership team that's been assembled has the heft and weight to carry it forward. and i would be very disappointed if anything else happened. >> yes. the health and wellness category, whether it's things your wearing or things you're eating, does sound like it's still the place to be. christine and courtney, thank you so much for joining us this afternoon. we really appreciate it. >> thank you. >> thanks, kelly. new jersey governor chris christie just finishing his state of the state address as he faces down the stickiest scandal of his political career. we'll bring you the latest developments on that one next. plus worst fierears realizen obamacare. older people signing up at a greater rate than the young

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welcome back. so what could possibly prompt national cable news networks to

take governor chris christie's address forward? the george washington speech. they got a little on the bridge and a lot on the economic bridge of new jersey. >> the speech is called the state of the state for a reason. it's about new jersey, but, of course, as you say a national audience here paying attention as chris christie stepped before cameras for the first time since that mammoth press conference last week. he said in this speech mistakes were made and he said this behavior at the george washington bridge scandal was not good enough for the people of new jersey. take a listen to how he framed the conversation. >> i'm the governor, and i'mult all that happens on my watch both good and bad. without a doubt we will cooperate with all appropriate inquiries to ensure that this breach of trust does not happen again. but i also want to assure the people of new jersey today that what has occurred does not

define us or our state. >> and that was a classic political pivot right there, kelly. this scandal does not define us our our state. what does define new jersey? christie went on to deliver a speech that hit on some of his economic high water marks knowing there was a national television audience watching this. he talked about tax cuts, business confidence, he talked about the economy and jobs, and he talks about schools for local voters here in the state of new jersey. so all of that making the case to voters, hey, forget about this scandal, i'm focused on what you're focused on. if anything, kelly, it reminded me a little bit of bill clinton. classic scandal management here by chris christie today. >> carol was just going to say something. >> i wanted to throw in one other thing. didn't he also spend a lot of time talking about bipartisanship? one of the things that stood out to me is how he kept saying this was getting done with the democrats and the republicans together, which was very, very interesting given the fact that this was a national stage for him. >> and part of chris christie's

appeal on the national stage is that he is a republican governor in a blue state like the state of new jersey. he's a guy who can win in a bipartisan way who has made it part of his calling card to be a bipartisan governor or at least appeal across party lines and try to find those places where he can work with democrats. if he's going to win the republican presidential nomination in 2016, he's going to do it as a guy who can bridge some of the gaps that we've seen that have divided washington so much. that's his appeal nationally and he was very savvy to include that appeal in the speech today. >> eamon, i wanted to shift actually to a story as well on the national level that's important and one you have been covering. it's obamacare. news today finally about the rate of old versus young people signing up, and we're learning that it's not as many of the youths as hoped. something like a quarter of the enrollees are the younger demographic and the administration had been aiming for something in the mid to upper 30s. >> that's right. the key is obviously you need

those young, healthy people to make the economics of this health care reform really go and to not cause real pain for the insurance companies that are signing up a lot of these people under obamacare. if the old, sick people are the ones signing up, they're high cost. in the young so-called invincibles who think they're not going to get sick don't decide to sign up, then that's going to make the economics of this whole obamacare reform go upside down. it could be dangerous not only economically but also politically for the president in the last remaining years of his term. >> but is it really that surprising when you think about, yes, we want to see the 40% of those who are 18 to 35 who don't have health care sign up for it, but at that age a lot of folks are just thinking about what they need right now. they're healthy. they're not thinking about insurance. they're thinking about how they're going to pay their rent and cover groceries and keep their job or get a better job than the one they first got out of college if they were lucky enough to get employment. it's not surprising we haven't seen that rate tick up right away. do you think we will probably see us get closer to that 40%

probably by the end of the year or in the next couple months? >> they still have until march 31st to sign up, right, eamon? >> it's not surprising that those are the people who would be the most reluctant to sign up. that's why so much of the marketing campaign here has been going right after those people. but the question is whether or not they will ultimately sign up. as we've seen, this health care rollout has been botched on some of the fundamental blocking and tackling of the rollout itself. if this turns into another problem, it could be damaging. >> i think one of the reasons is they saw the website problems, went online had the millennial impatience which i also share despite my slightly older demographic and said forget it, i'm going to wait until a better time or i don't need this right now. why not save money for another 3 months, 12 months, what have you. i would guess they'll be late for the game. >> the website was messed up. it wasn't easy to sign up.

what we're seeing is it looks like some of their older parents, grandparents, might have figured out the website faster partly because they felt more need to get the health care. >> i think it comes down to a forecasting issue. we see this government agencies, they do a really, really poor job of forecasting and they're always aggressive. they're putting the politics and their own personal agendas over making something that works, being more conservative, and issues of the american people. there's no reason why we needed to get 40%. nobody was surprised. why is the government surprised about this? >> and bring it back to a company. now we've seen the obama administration is moving away from the federal contractor that did the website. they're moving to accenture. that's going to be a big challenge for accenture. how do you figure out how to redesign this website on the fly, rebuilding the airplane in midflight, and also do it in a way that can really appeal and make it accessible for all those

young invincibles. that's a big, big challenge. >> the age that young people can stay on their parents' plan is now raised as well. so they don't need to get their own until after they -- >> 26. >> so that's another reason why when you look at these numbers we're looking at 18 to 35. a lot of those folks may not need the insurance right now. >> we have to leave it there. i will say it's interesting to look across the states. the journal has a nice breakdown. utah, it looks better. the distribution looks better than other states. i wonder if that goes to the higher rate of people who are married at a younger age in that state or something else. >> one of the articles i read pointed out in massachusetts when they rolled out their program there was a delay on getting the young people on board and we could be seeing the same trend here. >> important issues. thank you for joining us on the floor of the stock exchange we should say as well. >> i'm here. >> on this tuesday. >> thanks. senator thune pitching his proposal for jobless benefits coming up. plus, wait until you hear

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is your tv powered by coal? natural gas? nuclear? or renewables like solar... and wind? let's find out. this is where america's electricity comes from. a diversity of energy sources helps ensure the electricity we need is reliable. take the energy quiz. energy lives here. welcome back. so much news today. which stories are burning up the website right now? allen wastler is joining us. >> the tesla story has been a major pull for us all day. it came out friday, but today is the day the government sort of opened up the whole recall

semantics question. right now -- and thanks to you and your show, you have given us yet another jolt of traffic to the story because we've updated it with your interview with elon musk. him basically saying it's more appropriately called a remedy, not a recall. you know, i can kind of see his point a little bit. >> cue the music. >> our next biggest puller right now and maybe for all the wrong reasons, it's building the itunes of porn. yes, we have a reporter out covering right now the adult entertainment expo in las vegas and we're getting plenty of news stories back. i know, i know. >> i thought this was a play on a different industry. i didn't realize you were actually talking about -- who did we send out there? >> it's one of my freelancers. he's been doing it for quite a while. the industry has been hit by all sorts of piracy problems. they have an idea of taking the itunes model and getting around that. it's an interesting read. $12 billion industry. $97 billion worldwide. it's a big business.

finally, the third one, i wouldn't believe it, you wouldn't believe it, 26,000 people have read this already. it's the net neutrality case. >> yes, yes. good. i'm glad. >> they turned over the fcc's decision that the internet can be charge-free. now the providers are -- they might have an opening to start all sorts of charging plans. big interest to people in the business like me. >> are you one of those 26,000 cliques? >> at least three of them it was me. different computers. >> allen wastler back at headquarters. thank you, sir. new idea, same old controversy. up next, senator john thune has a plan to get the long-term unemployed back to work. he wants to waive obamacare coverage requirements. the senator taking the hot seat next. we'll be right back. works for me. turn to the camera. ah, actually i think my eyes might ha... next! digital insurance id cards. just a tap away on the geico app.

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welcome back. with some big news from general motors. joining us on the phone to tell us what the deal is. phil? >> kelly, as expected. general motors is declaring its first dividend for common shareholders. 30 cents per share. this is the first dividend we've seen from general motors since

the company has come out of bankruptcy. and the first for general motors since well before it slid into bankruptcy in 2009. >> and the share is higher in after-hours. congress is struggling over extending emergency unemployment benefits that expired at the end of last year. today, the senate is working on a plan that both sides say is close to be approved. but it does not include a creative proposal made by john thune, who wants tax breaks for businesses who hire the long-term unemployed. john thune is joining us from south dakota. what's interesting about this proposal is you're trying to solve two problems at once. benefits for the unemployed. and those dropping out of the workforce. how does this accomplish those goals? >> thank you, kelly. not just treating the symptom but the problem. and the problem is it's too expensive, too costly, for

employers to hire new employs. what we would do is say, okay, if you're an employer who has 50 employs, under obamacare you have to provide health care or pay a penalty. this would waive a penalty for any employee that's within unemployed for a long period of time. secondly, a six-month payroll tax holiday, that would allow employers to have a break of about $40,000 a year employee, coupled with the waiver of the penalty under obamacare. and that's several thousand dollars incentive to hire new people. and it would also provide a $10,000 low-interest loan to people who want to move or relocate to an area where there's lower employment and more jobs. if you're on unemployment already, you're probably not going to have the resources to move to a place where there might be jobs. and finally, we consolidate a bunch of programs that are

worker training programs. about 50 programs and 9 agencies, all of which are many ineffective. and shift some of the power and the resources and control to the states so they can help to get workers trained for the jobs that are available out there. we think that deals with the problem and not just treats the symptoms. >> it provides incentives to address some of the issues. i wonder is it the cost of doing this, that's standing in the way of this bill moving forward? >> well, i think part of it is, there's obviously a little cost associated with it, that we pay for, by reducing federal spending in other areas. but i think part of it is, we get hung up in washington too often on treating symptoms. this will be, now, the 13th extension of unemployment benefits. obviously, there's people who have been unemployed for a long period of time. but as we saw the jobs report last month, the worst in three years. 347,000 people leaving the workforce. the labor participation rate, the lowest level in 36 years.

we have a problem out there. and we're not creating the jobs we need. we need to make it less expensive, less difficult for employers to create those jobs. ultimately, the key to all this is growth, job creation. right now, that's not happening. and, senator, if the jobless benefits proposal moves forward without the incentives that you're outlining, will you support it? and if it passes the senate, would you like to see your colleagues in the house support it? >> it depends on how it's -- whether it's paid for, how it's paid for. we don't have any agreement with the senate democratic leadership. they've not allowed amendments on our side that would allow us to offer up alternatives to pay for it. if we get to that point, i'll take a look at it. obviously, want to do something. however, that fixes the problem. that's why we need to be having a debate, not just about the symptoms. that's extending unemployment insurance for people who are unemployed for long periods of time. but doing something to create jobs for them. if it goes to the house of

representatives, perhaps they'll be in a better position to include some of the types of provisions. in the end, that's what we need to do. you have to provide incentives for employers to create jobs. >> an important package. and some interesting thoughts in there, senator. thank you for joining us. we'll be watching from the stock exchange here, certainly. get the tweets in. we want to know if you think google is becoming big brother. your responses and thoughts on this one coming up. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

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welcome back. is google on the road to becoming big brother? we asked. you tweeted your responses. there were mixed feelings out there. would you want your neighbor knowing every detail about your life? no. why is it okay for companies to collect that info? google having and getting all our information isn't half as scary as when someone else finally hacks into it. and aaron tweets, call me naive or stupid. but i'm not afraid of google. that's telling you, actually. this is a company that has a lot of trust in brand equity. certainly with people who grew up with it. >> people that wrote in about hacking, that's the scary part.

you're not anticipating that you're going to have someone steal your personal information and your credit card data. when you're doing something like shopping, online or at a store. here, actually, you know you bought the nest. when you buy it, you know what they're going to do. and you purchase that item. >> it creeps me out a little bit when i type an e-mail and i see an advertisement from my key word in a message to the right. i know google is reading my e-mail. >> go back to the godfather days. do not trust anyone. protect your privacy. and i'm telling you, there's going to be an industry around making privacy a luxury. >> or companies. that's interesting. take duck, duck, go. there's a lot of search engines, we're not google trade. >> if we get another blizzard and you want to turn your heat on, please wait for -- listen to this ad from our following sponsor before you do that. >> and we will have duck, duck go on the program tomorrow. thank you for being here.

"fast money" is coming up in a few seconds. melissa lee, talking more tesla. >> yeah, you had elon musk. he said great things about china. i would argue one of the most accurate analysts on wall street. he downgraded the stock just before it hit the record high. he's upgraded the stock today. we'll get that on the closing bell. >> i want to hear what he has to say about the use of the word remedy, melissa. an exercise in semantics. over to you guys. "fast money" starts right now. live from the nasdaq market site in new york city's times square. i'm melissa lee. here's tonight's lineup. technology takes center stage. the nasdaq closing at a 13-year high. and google, on the prowl. could the tech giant be looking for more acquisitions? we have the ceo of the company looking to automate your home. and breaking just moments ago, general motors declaring a dividend. should you be bin