up about 6%. pretty decent day so far down here on the nyse. >> interesting afternoon. very interesting week. of course, the fed meeting results will be out tomorrow. we will be watching that. we will join you at that time. thanks, everybody, for joining us for this edition of "power lunch." >> have a great afternoon. "street signs" begins now. apple shares are down. the dow jones is up. is this a sign that apple, while important, doesn't matter that much to the overall market anymore? hello, everybody. a big day with a lot going on. we are all over apple earnings and why shareholders may need to start to get angry about one thing apple is doing or why not. plus, a look ahead to tomorrow's final fed call by ben bernanke and something is happening in the south that is giving ups and fed ex gigantic headaches.

hello, everybody. it is the green that is breaking the drought on the dow. it will likely avoid its first six-day losing streak with the gain we're seeing today. the nasdaq, however, is a completely different story. you can see here it is in the red to the tune of 44 points. why? it is being held back by apple which is having its worst day in a year after reporting not as many iphone sales as the street was expecting. we will dig in more on that story. brian, back to you. >> thank you very much. now let's bring in jeffrey on this one, who has a buy on apple but lowered his price target today. herb greenberg is here as well. peter, here you go. apple sold more than 50 million phones in the three months of the quarter, about 555,000 per day. revenue, a record. they have nearly $160 billion in cash. they are undergoing one of the biggest stock buy-backs in the history of the world. but the stock is basically at the same price it was one year ago. what's wrong? >> what's wrong is that expectations for forward growth

have come down and apple really had a thud with the 5c. it was just the wrong product at the wrong time at the wrong price, and that's really overshadowing what has been a great launch of the 5s and a very, very strong 4s. so really what we're seeing is the 5c being a dud, newton-like in terms of scale for apple. >> 5c was supposed to be their lower end phone, right? but outside of the united states, it's really not that cheap. my question to you is, peter, how much does it really matter to apple and apple stock that they're not a strong presence in the low end category and are not, therefore, able to compete and make inroads in the emerging markets like samsung, lg and various others? >> we don't think apple will enter that low end of the market. it's impossible for them to compete in that sub-$300 market. frankly, prices will collapse there. we see the advent of $35 to $50 smartphones with margins being razor thin. you have mom and pop shops

opening up and if they make a few million units and make a few million rnb off that they're very happy. apple can't and won't compete there. but why the 5c was such a big problem was that they were banking on it to be bigger in terms of units and it took them awhile to adjust. it means that they have excess channel or excess inventory in the channel and their managers have to deal with that. it takes a lot of management attention, time and it delays the momentum that you can have in other products or other areas. >> i know that in the last year, apple stock has not been so hot. if you go back five years, apple's return in that time is actually double that of google, right? probably their closest competitor in the smartphone space. so they have been a massive wealth creator. do you think that is over? >> no. we still see a big product cycle, call it the last hurrah in the iphone 6. we think 150 million people will be eligible for upgrade during the iphone 6. what's fascinating about that, that compares to 69 million for

the 5s and 49 million for the 5. that upgrade cycle we think is enormous. we really are telling our clients we would love to walk them through that detail. we think that's the opportunity for the stock to go higher is really that upgrade cycle. we have the wild card of new products. i watched the unicorn, the i-tv maybe one day and certainly convertible or hybrid macbook at some point. >> sounds like according to peter, they are innovating but then there's the criticism often thrown at them that they are not doing it as much as they should. >> it's interesting. by the way, i look at this as an all-in market. you have a replacement market and people tend to forget that. when you look at the company and at the cash, and what people want with the cash, there's this short term approach about buy-backs or dividends, which honestly, i understand that from a shareholder perspective but when you talk about innovation, shouldn't much of that cash just be plowed into everything to increase new users, to increase, you know, to get -- >> okay, let's be clear on a couple things here.

they have announced a $60 billion buy-back. they don't have to do it. but $60 billion, probably the largest buy-back in the history of the stock market. they gave $7.7 billion in cash back last quarter. i was critical on twitter last night because you are sitting on $159 billion in cash. that money doesn't belong to a company. not just apple. anybody. ultimately that's shareholder money. you got to use it or lose it. google has been fantastic about investing and trying even some crazy things. i have been critical of google but give them credit for going after the brass ring. what should apple do? >> among other things, perhaps carefully make the right acquisitions. why they didn't do nest is going to be something -- >> give us what they should buy. delta airlines? >> the reality is it's money burning a hole in their pocket. they're not going out and making stupid deals but are they avoiding smart deals. >> here's the question. what should apple buy, if anything? >> we think really the focus for them should be on the living room. it should be on wearables. and really, it should be

extending that itunes app store subbase. >> so no acquisitions at all. >> no. there's nothing they could acquire at a reasonable price that would make sense for them right now. >> step up r & d. what caused them to keep -- if they have that money, why couldn't they get a bigger phone out faster? also, you talk about acquisitions. >> why would you want a bigger phone? it won't fit in your pocket. >> which is a problem. >> it won't fit in your -- >> which is a problem if that's the case because the word on the street is that when they come out with the new phones the second half of this year, they are going to be bigger to try to keep up with what samsung has been doing. to brian's point, is that not necessarily what people want? >> that is exactly what people want. they should have come out with it earlier. in our view it's better late than never. it is a big cycle. the screen technology they are going to use is what hampered them. apple made bad technological decisions on the screen side. that's what's hurting them. i agree, i think they should plow more into r & d. they should innovate on the

product county goategory side f. >> acquisitions are important to some extent. i would say if you said what should they buy, i bet mark would say they should buy fitdeck. why aren't they going down the wearables road? >> that's a great question. if you look at what they can buy in the market, pebble, sony smartwatch division or some of these other private companies out there, frankly, the engineering talent may not be up to snuff for apple. that's probably one of the biggest problems for any acquisition they do. they have to buy the best engineers and have to fit in culturally. that's really tough at that place. it's a very unique culture. >> apple is a company that invented this genre. they invented the smartphone, itunes, portable music, for the most part. they monetized it. the first company to figure out how to buy music and movies and tv shows and actually use them on the web in a grand scale. is it possible, kind of like the band radiohead after okay

computer, when everybody said they lost their touch. are people expecting too much stuff out of apple? >> possibly. i think this really is the winner's curse. they won and now everyone wants them to keep going and it's really tough to stay on that treadmill. you've had some big changes in the management side and it takes a lot to digest. they've got some big, big shoes to fill with steve gone. i think that's part of the problem. >> at least when it comes down to global market share for smartphones, just talking about smartphones here, you have for example strategic analystics -- >> those are $10 phones. >> i agree. >> they are giving them away. >> they are much cheaper. but at the same time, what's happening to apple? is it backsliding? >> no, i'm telling you, i think you hit that point. i come back to replacement cycle, they are not bringing over the new people who would come over from android. people are going the other direction, if they're going anywhere. many people are just sitting there waiting for the new phone, for the two-year contract to go

up if they're still under a two-year contract, to make it all happen. >> 51 million phones, clearly not enough. we wanted 55 million. thank you very much. just to reiterate, you do have a target of $625 but that was lowered today from $650. you also have a buy. great to talk to you. herb, we will see you later on. make it a date. let's send it over to sheila dharmarajan for a market flash. >> take a look at nestle. that stock is powering ahead. the "wall street journal" reporting the company is plotting expansion in europe. it says netflix started discussions about licensing popular content in france and germany among other european countries. netflix has started talks with the french government about a possible launch before the end of the year. that stock at session highs right now, up by more than 3.5%. >> thank you very much. all right. on deck, our final fed survey under ben bernanke. steve liesman is here with what we can expect. later on, herb, who you just saw, will be back and will talk

about what's happening with herbalife. plus a major weather storm is taking aim at the south, causing a massive headache for ups and fed ex and i'm sure a lot of other people. we will have a live report when we return. of

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familiar? yes, it is "street signs." it will be all happening here on the show. steve liesman is here with the very latest results ahead of that with the cnbc fed survey. we love the fact that people respond to this survey but nonetheless, are they getting it wrong? >> well, to some extent, when it comes to stocks. i want to first show you what the outlook is for the federal reserve and show you the track record last year when it came to stocks. 72% think the fed will taper at each meeting. more than 87% think they will taper at the january meeting. average amount of taper this year, $10.7 billion. moving on, looking at the total expected quantitative easing, $467 billion for 2014. that's an important number. take a look over here. if the fed tapers by $10 billion at each meeting, that means $460 billion in qe this year, very close to the number $467 billion. the outlook for the s&p 500 for this year and next year. for this year, they raised it from the previous survey. they expect to end at 1844 for

the s&p and let's look how they did last year. each one of these numbers or points represents where they thought the s&p would be at the end of 2013. so they began the year 2013 thinking it would end at 1547. they chased the market up, 1691 is where they thought we would end in july, then 1773 is where they finished the year, where they thought the s&p would end. where did it actually end? 1848 is the number. they were off by that amount. they are a little closer now, 20 something days later, but ultimately this group which does a pretty good job of forecasting the fed, does a pretty good job of forecasting interest rates and the economy, they just were too pessimistic on stocks throughout the whole year last year. >> unbelievable. considering what a year it was. come over here, sit down on this chair that herb has nicely warmed for you. >> can you talk to your economics buddies and tell them to watch "street signs" a little

more? june of 2011, we will hit record highs in the stock market, said on this show two years ago. >> and what's your prediction this year? >> we will be flat. >> a flat year this year. >> yeah. >> that's your prediction for 2014. as ben bernanke is about to hang up his chairman's cap and go and play golf, whatever he's going to do -- >> pretty sure it's not going to be golf. >> what is he like? >> he will write some books. i think he likes to hike. not sure he's a golfer. he likes to play basketball. >> what grade would you give him? >> i will side with where the survey respondents are. we had 45 this time. we asked throughout the year a grade for bernanke. they give him a b. the reason for the b is they tend to give him an a for his early response to the crisis and give him lower marks or incompletes for the later response. they think qe 3, probably 50% hung around too long. they also give him an incomplete because we don't know how the results are going to end up. >> he might still get an a if things turn out the way he's

hoping. >> history will judge. >> 1% would give him an a. >> i'm sure they would. >> that's a later discussion. >> later discussion with robert frank. >> that's a tease. thanks, steve. be sure to catch "street signs" tomorrow starting 1:50 p.m. eastern, ten minutes early, because we are building up to the big fed statement at 2:00 p.m. eastern. bill gross will be joining us with reaction and get his first public comments since the departure of the firm's ceo. that is all tomorrow here on the show. elsewhere, managers are betting big on bonds this year. let's get out to bob pisani at the etf.com's inside etf conference. you are making us sick with that backdrop. absolutely sick. >> we are on the beach, it's 80 degrees. believe it or not, we are all very focused because the big topic is what to do with your bond funds this year. let's ask the man who knows. matt tucker from i-shares. you are very excited about something that's happening tomorrow. treasuries holding an auction of floating rate notes.

it's the first new treasury products since 1997. why is this going to impact us? why are you excited about this? >> i'm excited because it really speaks to two things investors are looking for today. one is less interest rate risk, less duration in their portfolios. the other is the safety of u.s. treasuries. look at the last couple weeks, what's happening in emerging markets. people are flocking to treasuries. this is the kind of product that speak to what people want. >> these new rates will float. the interest rate will float and there is going to be an etf for them. guess who's got the etf? i-shares. when will we see an etf of floating rate treasuries? >> we have a filing out. we are hoping to bring it out soon. >> let's talk about what to do with your bond funds. the etfs that are right now. everybody's moving from long duration 20 years, 30 year bonds to short duration. that one to three treasury that you've got, the shy is the symbol, that's seeing a lot of movement. what are you telling clients? >> clients are really focused on what the fed is going to do. that's going to drive interest rates over the next 12 months. you will separate into two pieces t very short end, should

be pretty stable. that's why you are seeing the fed funds driving rates. >> the one to three years. >> the other is way out the curve, 20 plus, the tlt. we expect that to be relatively stable because that market is already sold off. it's the intermediate part of the curve we are focused on. there could be higher rates, three to seven years. >> let's move on. high yield, 5% in the hyg. you can clip that coupon for 5% but are the prices going to be under pressure now? what do we do with these? >> high end is a volatile asset class. people have to expect that. what's nice, you are getting about a 5% coupon. also, the fundamentals look very good. corporations have a lot of cash, the fed is accommodating, defaults are low. we expect it to be a good place, not for price appreciation but for income. >> 5% clipping a coupon if interest rates don't go through the roof, that's not a bad proposition. let's talk about municipals. mub is the big one. you own that one. lot of concerns about detroit but also recently about puerto rico. how does that play into whether people should be into municipals

right now? >> i think when people look at that, they think about diversification. municipalities are in better shape than a couple years ago. we expect fewer defaults and fewer credit issues. you want to be diversified broadly. on an after-tax basis it has a pretty good yield, 4% for investment grade unis. >> i agree on that. let me ask a final part. emerging markets. everyone is discussing that. you own the big one, emerging market bond etf. got a very good yield but do people want to be in emerging markets and emerging market bonds? >> that's our u.s. dollar e.m. fund, the kind of fund you can expect volatility, given what's happening in e.m., we will see that play out. if you are a holder, hold on to it. although it will be volatile and a rocky ride, you can ride it out. if you will be looking to buy the asset class, maybe wait until things settle down. >> that's a good point. matt tucker. we will talk about that floating rate etf. we will talk about that a lot in

the next few weeks. you will have a lot of demand for that. thanks very much for joining us. from sunny florida, i'll be back tonight, unfortunately. >> we hate you. we love you but we hate you. let's get to sheila dharmarajan for another market flash. >> check out merck at session highs. an fda panel says its experimental allergy drug appears safe and effective for use in patients between the ages of 19 and 65. here's why that's important. the fda usually goes along with its panel's recommendations. mandy? >> thank you very much for the market flash. still ahead, the countdown to yahoo! the company reporting earnings after the bell today. the earnings squad will join with what you can expect. later on, have you heard of upward income mobility being dead in america? big new study says think again. we are also trying to find you a little gold on the ceiling. ♪

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welcome to the earnings squad. i'm melissa lee. joining me, john forte and herb

greenberg. herb has been watching ao smith, maker of water heaters and boilers, a company that gives aspirations and not guidance. >> aspirational issue, the company talks about aspirations. whenever i hear companies talk about aspirations, anyway, they did miss the revenue estimates. the real focus was china, where they have had a lot of growth, up 25% in china. that's down from a 35% gain for the prior two quarters. what i think is really interesting here is what happened when we talk about emerging markets, we are talking about india and for them, india was down because of the devaluation of the rupee. that's sort of what you're looking at in a company like this. i have been watching the company awhile. you know, some people think it's a great trend if the u.s. housing market ever takes off again. i come back to the issue that they are constantly focusing on quote unquote, aspirations for 2015, aspirations to me is a word that gets people to look beyond guidance and sort of build on something that isn't there. >> i think we would agree that

using aspirations instead of forecasts or guidance is a bunch of garbage. anything you want to call it. at the same time, they are still leveraged, the commercial as well as the residential market in north america. as for china expectations, not aspirations, they say they intend to grow two times the rate of gdp so they are not necessarily giving a forecast that is set in stone but it is -- they are saying we will do a multiple of whatever china grows which seems a little fairer, especially given some of the concerns about this market. >> indeed. this is a company also that will do some acquisitions but says it will be very restrained in their approach. >> let's talk yahoo!. the big one after the bell. john, so many investors holding on to yahoo! because of ali baba. >> that's the main reason to hold on to it. they had a big singles day in china. that should be positive for them. but really, what investors are increasingly looking toward is the core business display advertising, overall we're looking for revenues to be at around $1.2 billion.

that display business close to half a billion dollars, down around 4% from a year ago. a lot of that is in the context of mobile. remember, people aren't on their pcs as much as they used to be. they are more on their phones. yahoo! has been making some acquisitions in that area but hasn't been able to monetize those. one bright spot potentially for that is tumblr. data i got this week shows that actually, the demographics are pretty good. people on tumblr are clicking through to retail sites and spending money. >> 23 acquisitions in 2013, two in 2014 and their core business is still -- >> the top line growth of this company is still going the wrong direction. >> the guy who they brought in to accelerate that core business has been fired. he's out the door. >> the c.o.o. >> yes. de castro. people will want to hear who's in charge of that business and how long will we have to wait to see it accelerate. >> that guy made as much as

$2.73 per second that he was there. anyway, that's definitely what we will be watching tonight. also, last week, airwatch was acquired last week. they preannounced their earnings so basically they said they will meet the higher end of earlier projections but this is a company that analysts and investors want to diversify, they want the revenue stream to be diversified. airwatch should help. we are watching this also because of emc so whatever they make, emc will likely make because emc owns 80%. but again, this has been a great stock. the question is, anything more? >> they are moving into mobile, certainly mobile device management, airwatch. it's interesting to see how these companies make that move because it's having an effect globally. >> that does it for earnings squad today. we'll be back tomorrow morning on "squawk on the street." tonight, we have breaking news coverage of the turkey central bank decision. that is what is going to move

the markets tomorrow. >> thank you very much. on tap, the hottest single stock sector in the market. plus speaking of hot, herb is back to talk some herbalife. later on, if you are expecting a package in the mail, do not hold your breath. a major winter storm could have a huge impact on shipping. that is all ahead. first let's get today's pump patrol. >> the national average for a gallon of regular gasoline today, $3.27. that's down three cents from a month ago but down 22 cents from a year ago at this time. according to aaa. meantime, the cheapest city for gas, billings, montana, where consumers are paying about $2.93 a gallon, according to gasbuddy.com. on the east coast, fill up in new jersey if you're in the tristate area. jersey's average of $3.21, roughly 40 cents lower per gallon than new york and connecticut. also interesting, no states

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this is street talk, our walk through wall street stocks you need to know about. first, we have johnson nutrition added to the focus list. >> stock's up 2.5%, $79.83. a survey in china indicates that meade and nestle continue to gain market share. by the way, they are raising eps estimates. the target, $95. that's about 18% upside right now. >> we also have cliffs natural resources, we will talk more about this on friday because it is part of a stock swap but it is higher today on news that casablanca capital is taking a portion of the company. >> basically calling on the company to double their dividend, basically convert to an mlp, just shaking the tree. seems to be helping. by the way, you saw the promo.

we had our stock strap from last year. it ends this friday. we haven't really kept up on it as much as we should. this was one of the three stocks on my team. >> it's down 40% over the past 12 months. we'll do the tally on friday. >> but up big since it was selected on brian's ballers. moving along, salesforce.com mentioned positively at pacific crest, better than negatively. >> stock up 3.2% to $58.90. they see upside to fourth quarter guidance. the company has signed several multi-million dollar deals, probably right at the end of the fiscal year. they also indicate they could meet or exceed earlier estimates. they have an outperform on the stock, $65 target on crm. >> this is an interesting story. it's not just about one stock. it's about a bunch of stocks shining very brightly in the market again today. they were up big yesterday. we have that very positive demand outlook report that came out for 2014 but today, look at this. you have first solar, solar

city, sunpower. >> yesterday, solar companies said to benefit from expected demand for sales. channel checks for components indicate a bullish market. a couple days ago in west texas, first solar announced plans for a 22 megawatt solar farm, the biggest in texas, one of the biggest in the united states. natural gas prices also up. that could be giving a lift to solar stocks as well. lot on their side. they have been rocking out. >> shares of herbalife today are lower. talk about whiplash. remember you were on the show just yesterday, the stock was soaring on the news very bullish analysts. today, herbalife is down. >> this just keeps going -- >> herb goes such a -- >> the hits just keep on coming. this report in the "new york post," she's been following the story very closely. she cites sources in canada who

are telling us it's interesting because we have china and canada, we have issues. what i think is more interesting about this -- >> is there any indication he's getting people on his side? you have china, you have canada. is there any indication of why suddenly regulators are starting to take an interest in how herbalife is run? >> you have china, also i don't think ackman has so much influence over there. i think because there is some talk in the chinese press. more interesting here is just to watch the weak-handed investors here where you see the stock so easily come off. it tells you about the conviction of investors in this space. i will tell you something. i said it here before. multi-level marketers, all of them, i say one day will be like the for-profit industry because if indeed there are further investigations, you will get this reset as people pay closer attention. >> it trickles down. thank you very much for joining us. >> glad to be here.

jc penney -- who's herb? herb is legal in colorado and washington. we should bring him on the show. jc penney is getting defensive. this is our talking numbers segment. the retailer announcing it is taking additional steps to extend its shareholders rights plan, part of an effort to ward off any new activist investor. it comes down to a poison pill. stock lost two-thirds of its value. let's start talking numbers. richard ross, john stevenson. john, jc penney, some big names coming in defending the stock the last few months. it hasn't helped. is there any reason to own jcp? >> oh, god, not at all. this is just a terrible name. >> how do you feel? >> i hate it. they will burn through $2.6 billion in cash this year. the problem is they just can't get any momentum whatsoever. the whole business model is predicated on discounting, couponing and clearances, so people come in the store,

traffic is way down. last year it was down 13%. this year, it's down roughly 8%. once they get in the store, they don't want to buy. the conversion rate is negative. it's negative 5% right now. people aren't buying. it's not that cheap on valuation. it's a real concern whether or not this thing actually exists in a year or two because it's going through so much cash. it's got a very high lever balance sheet. i see no reason to be here. >> we asked for two negatives. you gave us 16. are there any positives out there on the chart of jc penney? >> you know, the last time we spoke about jc penney, i said there was no price at which i would own the stock. today, i'm going to soften my stance a little bit here and actually be a small sized buyer of the stock. when we bring up this chart, i will show you why. we are all familiar with that down trend. in fact, we could extend that down trend another three years and another $60. but then we get this bearish acceleration to the down side with that mini head and shoulders continuation pattern. here's where it gets

interesting. that head and shoulders projects measured downside to $6 which we ostensibly tested not once back in october, but now twice, which potentially sets the stage for a double bottom. so you want to be a buyer here with your risk extremely well-defined around that $6 level, $6.25. use that as your protective stop. once again, it's not all rainbows and unicorns when you look at the long-term chart. you can see a 13 year complex head and shoulders top above the stock. that's not very good. >> so rich, maybe more of a shorter term trading opportunity based on the double bottom around six bucks. >> that's exactly it. keep in mind if the stock doesn't go out of business it's a nice brand name. there could actually be something here. i hear john laughing but there's a chance you could be pushing down here and if the double bottom holds, you could see a nice rally back into $8 or $9. >> we'll see. more rainbows and unicorns. thank you very much, gentlemen. >> check us out on yahoo! finance.

couple cool segments today. still ahead, a major winter storm taking aim at the south. who is in this icy path and how it could take aim at you. coming up. there's one city in america where your kids are most likely to be wealthy than you are. you know what it is. the answer actually might surprise you. it's coming up. first, speaking of coming up, kelly evans, what's coming up on "the closing bell" today? >> we have got the dow on track here to snap a five day losing streak. the question is whether that means a selloff is over or whether you should still be cautious. we'll take a look at that. also, will another weak batch of economic data force the fed to abandon tapering? is there any prospect the fed would increase stimulus at this point? lots to discuss as that meeting gets under way. we'll have instant analysis and reaction to earnings that are going to hit after the close from at & t and yahoo!. all that and much more ahead. tdd#: 1-888-648-6021 there are trading opportunities

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weather channel's jim cantore live in charleston, south carolina. i went to south carolina myself and i can't believe that it's going to be hit with that kind of storm. >> reporter: i know. kind of interesting, it's great emotion and awful emotion because you got to plan this, prepare for it. they have two plows here. of course, if you remember charleston, it is a peninsula so you've got to get here over bridges and bridges will freeze up first, just like this railing. i just took an infrared sensor, looked at the temperature. it's 36 outside in the air. the metal is 32. we have already started to see the rain come down. it will only go downhill from here. what a disaster in atlanta, georgia. what a disaster. snow came in about the last -- over the last hour and a half and what happened is everybody saw it out the window and left their office. so you've got absolute gridlock on the roads in atlanta. horrible situation. we have snow, a buddy texted me and said it's snowing in pensacola beach. i see a few flakes out there. wow.

when you talk about getting snow all the way down to the gulf coast, that's amazing. the bulk of it here in charleston will come in tonight. but it's because of trees like you see here, very old trees, this is a hardwood so this may not be a good example. you will see ice accumulate, a quarter to possibly half an inch. that weight bends the limbs down and unfortunately, it sits on the power lines. that means possible power outages here. so ice and snow on the way to the little big city of charleston. back to you. >> real pleasure. thank you for coming on "street signs." you be safe. stay warm, buddy. thank you. the transports are leading the market higher today but that big winter storm jim was talking about could have even bigger impact on companies that try to deliver stuff to you like fed ex and ups. let's get to phil lebeau. fed ex, pretty much every package they've got goes through memphis. ups has got a huge facility in kentucky. how big of a problem will this be? >> it's unclear at this point. we do know that they are expecting some delays in certain

regions. to what extent these delays impact the delivery of certain shipments or packages, we don't know at this point. we have asked that specific question and what we do know at this point is that both fed ex and ups are saying that they are expecting some delays in certain areas of the midwest and the south, and again, how many shipments may be delayed, they are not giving us an exact number or how much of a delay there might be. fed ex did say to us severe winter weather is causing hazardous conditions in the louisiana, mississippi and texas area. our top priority is the safety and well-being of our team members as well as providing the highest level of service to our customers. why is this going to be getting some attention as the storm rolls through the southeast? remember, it was just a month ago that fed ex and ups ran into problems when they missed the christmas deadline for sending packages to people around the country. part of that was due to the storms. the other problem was that the volume of holiday shipments that were coming through fed ex and ups, it was greater than expected. bottom line is, lot of people didn't get their packages on time, and as a result, it was a

big p.r. nightmare for both fed ex and ups. take a look at these two stocks over the last month. we are comparing it with the s&p 500. no comparison here, guys. they are down double what you're seeing from the s&p 500. back to you. >> thank you very much, phil lebeau. coming up next, holy cow, live cattle prices are soaring. we will tell you why, ahead. plus -- holy cow? >> holy cow. >> that joke was udderly terrible. >> you're really milking it today. expect to hear a lot about income inequality tonight on the president's state of the union address. more on the divide or where the biggest gaps are. here's a word you should keep in mind "unbiased".

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welcome back to the old-time high club here on "street signs." what we have in front of us, waters, nextar energy and harris corp. you can see all three stocks

soaring today and hitting new highs. >> there's a continued bull market in bulls. cattle futures up more than 4% just this year. they have been really on a steady climb since june. traders partly blame a smaller herd from a drought in texas for the increase. alternate headline could have been you alternate headline cou have been you will pay for that fillet. you did own me with the milking comment. >> i really did. the president is expected to tackle income inequality in tonight's state of the union address and economic mobility is key. robert frank, however, is here to shed some light on who is really moving up the income ladder. >> this is going to be a big sort of underlying issue tonight. americans can tolerate high levels of inequality as long as we all have the chance to move up. there's a fierce debate of whether this is still a land where anyone can climb up the ladder. a new study shows those on the bottom, only 8% reach the top,

although far more reach the middle. the study found these levels of mobility is remained stable over the past 20 years. lots of people say it's declined, it hasn't. mobility has stayed the same. where are you most likely to rise? go to tech land. san jose and san francisco, they're the two metro areas with the highest upward mobility and third, washington, d.c. a very fast changing group, among the top 400 earners in america, only 15% made that list for more than two years between '92 and 2009. the same is true for people making $1 million or more per year. america sort of is more a revolving door of riches rather than a permanent club of wealth. >> you know, here is the thing, i hope we hear this from the president tonight. income inequality is a problem in this country, but when we use the big numbers at the very, very, very top, it scrkews the whole average. the top 100th of 1%, you have to

have about $23 million to be in that club whereas the top 1% can be about $363,000. certainly a lot of money, but the gap is so big at the very top, is that moving the whole needle? >> it's such an important point. when people say we want to reduce inequality, we should help those at the bottom. we should improve education, infrastructure, all those things, but that is not going to shrink statistical inequality. statistical inequality is driven by a small group at the top that's made a huge one-time gain from the stock market whether it's a big stock sale, an ipo, or a big company sale. so these are one-time events that we're measuring at the top and that's a revolving club. we shouldn't say our goal is to rid of those big winners at the top. our goal should be the bottom, but that's not going to reduce inequality. >> the report i tweeted out from the university of berkeley was that it showed actually income gains to the top 1% grew faster

from '93 to 2000 but everybody else also grew with it. >> correct. >> that's probably why we never heard about this. the richer getting richer, but even as a member of the media then, i don't remember talking about it because other people were doing fine as well. >> exactly. the last point is inequality right now is at the same level it was in 2000 and 2007. we didn't hear about it because the economy was growing so fast. jobs were more plentiful. even though the actual level is the same as it was during those boom times, we're hearing about it more because people are facing tough times. >> here are the part where people tweet. i know those silver spoon cnbc anchors are talking about it. >> i was the first person in my family to go to college. to have an income gap, you need to have an income. far too many americans know what it means to have lost a job, including our next guest. joining us, dwayne shank.

thank you for skoming coming on. >> thank you for having me. >> my dad lost his job and it was tough times when i was a teenager. it's hard. it's psychologically damaging. it's depressing. it's tough. he fought his way out of it, so did you. what's your advice? there's still a lot of people looking for jobs. >> there's hope and the book is all about how to keep your sanity while looking for a job. you know, i guess there's several things that i would say as far as advice. the first and foremost is you need to look for a job as if it is your full-time job. you have to become a student of the process, and you have to -- you don't know what you don't know. it's like buying a house for the first time. you haven't dealt with attorneys. you haven't dealt with contracts and inspections. you have to learn quickly and educate yourself. >> it's so hard because you're getting out there and putting yourself forward at the same time as you're going through an emotionally wrenching time that is just as bad i believe as divorce and losing a loved one, right? >> it's right up there on the

grief scale of death and horrible divorce. >> who was the most inspirational and helpful person you interviewed in writing this book. >> i would have to say mika brzezinski. i was sitting with her sharing my story, and she said, you know, she had no idea what i was going through. she says, my god, you're one of my better friends. she said i went through it, too. you must write about it. i looked at her -- >> the president is going to talk about the jobless. what would you like to hear from him when you were in that position? what can he really do to help people that were in your situation? >> it's difficult because, you know, i don't -- >> is there anything he can say in that position? >> not really. i think a lot of jobless are looking at unemployment and the extension and what's happening on that front. this book is really more about, you know, the psychological effects. i don't take a political bent on this. it's more about what can you do, you know -- >> do you think it's harder or easier to get a job these days than it was say 20 years ago? >> yeah, i mean it's much

tougher. look, the stock market last year was a banner year, but guess what? the job market is horrible and it still is very difficult. millions and millions of people are still looking for work and there's a real backlog there. >> what's it like now.reinvente few times. tv guy, tv of communications at a fortune 500 company. now this. jive >> i'm a consultant. you can purchase the book and learn how to land as quickly as possible. that's the point, how to keep your sanity. >> are you feeling the upward bias in your psyche? you're like i can do it, i can do it, i can do it. it's important to do that. >> you can't -- don't do it alone. you know what you do when you lose a job after a month or, so you start to isolate. worst thing you can do. join job search teams. get involved with community activities. you know what? i just saw i think it was on

your network that people should join -- volunteer. you have a 27% better chance of landing a job if you volunteer for an organization. >> thank you very much for your advice and for sharing your personal journey as well. coming up next, the lineup to end all lineups.

a very big lineup here on

cnbc tonight. it is "shark tank" tuesday starting at 8:00 p.m. even kevin o'leary will be joining fous our state of the union address at 9:00 p.m. eastern. tomorrow we're going up to the big fed statement that starts at 1:50 p.m. eastern. >> we have bill gross of pimco on as well. thanks for watching. "the closing bell" starts right now. and welcome to "the closing bell." i'm kelly evans on this tuesday at the new york stock exchange where stocks, tyler, are rebounding a bit today. the dow is up 92 points at this hour. >> there's a lot more green on the board. i was just looking at the list of the 500 stocks in the s&p. i'm tyler mathisen at cnbc global headquarters in today for bill griffeth. the dow on track to break a five-day losing streak. as you see right there, up 93 points at 15,930. got upcoming earnings from several big ones, kelly.