what they say. >> okay. guys. >> if we have 15 seconds -- >> don't give it up. >> no, no, no. >> who do you like on sunday? quickly? >> who do you like on sunday? >> who do you like? >> i like peyton but i want seattle to win. >> now we're late. be sure to join us tomorrow, "squawk on the street" begins now. ♪ good wednesday morning welcome to "squawk on the street," i'm carl quintanilla with jame cramer on the new york stock exchange. faber's on assignment. a volatile morning ahead of us as the rate hike in turkey has soothed but rattled markets and that will drive the day along with the fed statement. the ten-year yield has weakened from yesterday down to 272 and europe is getting punished. a lot of indices are down 3% or 4%. the roadmap begins with the markets setting up for a lower

open ahead of the fed even after turkey's surprise interest rate hike did help to stem some concerns related to emerging markets. boeing, jetblue, dow chemical and at&t beat expectations we'll break them down. but yahoo! shares under pressure this morning after reporting a drop in revenue for a fourth consecutive quarter due to a decline in display ad prices. a day after the dow snapped a five-session losing streak futures are lower, investors turning their attention toward ben bernanke's final policy meeting, the central bank expected to further pare back stimulus, but turkey, jim, at least for the open will be the story. and for a while there the turkish lira was up 3% and it looked like they impressed the market. >> 22 years ago we went through the cycle but that's too long for most people. they tried to stem the capital decline, i saw it last night, they forgot what happened to their country when they tried to do this. and what happened initially you thought things would stabilize

and they did multiple devaluations and they ended up with hyperinflation and there was a big hiccup in our country because of turkey, but we are more interconnected now. unless you own turkish stocks, unless you owned the biggest bank at the time, you didn't realize how badly it would hit. >> right. >> what happens is because people don't remember or they were too young, people initially are going to say everything's fine and three days from now we'll be talking about turkey as a major crisis and the contagion from turkey. that's the arc. i don't want to panic people. i want to be the opposite, if you look back at the periods of international emerging market problems chiefly the 1997 financial crisis which stanley fisher on the fed -- >> he remembers. >> then you had an initial decline in the s&p and then a year later you were up dramatically, 865, goes to 1098. a year later you had the russian ruble crisis, a total collapse, really bad and you went from 1174 to 1096 and then you were

at 1348 not that long after. you have to go through the pain as people do not remember what happened. this could be a 2% to 6% decline on the s&p. >> really? you think we are at the beginning of that today. >> i think this is what you see. these are the percentages. this is the way it's played out before. >> yeah. >> particularly if you use the russian template. and i know that if you want to really get technical and a lot of these people trade off technicals, you take the 100-day moving average the initial decline and 2% and people come in and try to stabilize it and then it can go down to 6% if people believe the markets will stay. >> for those new to the story, turkey hiked rates. they hiked their overnight rate. they hiked their one-week lending rate and not by a little, 450 basis points doubling the rate. did they have a choice? did the bank have a choice over there? >> well, no. yes, they could have. they could have switched governments and perhaps get someone we have a little more confidence in not necessarily in the rate hike. >> they've got some geopolitical stuff going on, too.

>> i think it's important. but they all come out at one tom and people blame the fed. you'll have to hear that for a while. it really doesn't have as much to do the fed as people think because our rates haven't changed. but what has to happen, carl, people have to recognize this is the beginning, has been the beginning in that country of hyperinflation and hyperinflation means massive devaluations, they will lose a lot of money. >> viewers might ask why does that affect my at&t? i mean, other than my tupperware which actually has a big business in turkey. >> like i look for these periods and in 1992 i said come to the panic because i was young and i said, geez, this panic -- >> you mentioned this yesterday. >> wow, you know, i'm young but i know more than everyone else because i understand the turkan, and there are people that think they understand and they reposition but in the interim they come on tv and write

articles and now we have blogs where they say it has to happen here, and when the smoke clears bristol-myers is up dramatically but not before they go to 46, 47. why do i pick on bristol-myers. because it has nothing to did with turkey. >> your playbook is to bucking up and not buy on perceived weakness, right? >> right. >> and then what? >> you look at what is good yield because our rates won't go up dramatically. you have to cover what you have to cover. >> yeah. >> it's 14 -- it's 14 degrees out. i'm not going to ignore the weather. i got to cover the weather if i'm a general news guy. >> sure. >> i can't focus on some news anchor that i'veever heard of which is the lead story in one of our papers. this is what happens. what i'm not trying to do is be complacent. i'm saying this historically has happened. i remember when people told me don't worry about russia in '98 and goldman did a gigantic deal and then i put on the big short. and then, like, three months

later, wow, why did i think that russia was us? this is what happens. we are a stronger economy. you listen to the president last -- obviously listened to the president last night, we're doing better than everyone else, but there's a cycle to people who have never run money and a lot of people say emerging markets represent great opportunities. i wouldn't be playing this completely wrong. i'd be saying, 12%, i'm getting 2% over there and then my money is cut 50% because there's a massive devaluation and then they devalue again and then the turkish economy stabilizes. >> you mentioned the things said in the states the president with the state of the union address and led with a lot about manufacturing, innovation and to a large degree speaking of the weather natural gas. take a listen. >> the all the above energy

strategy i announced a few years ago is working and today america is closer to energy independence than we have been in decades. one of the reasons why is natural gas. businesses plan to invest almost $100 billion in new factories that use natural gas. i'll cut red tape to help states get those factories built and put folks to work. and this congress can help by putting people to work by building fueling stations that shift more cars and trucks from foreign oil to american natural gas. >> you've had your finger on the pulse of the energy boom for a long time. didn't mention the keystone pipeline, but is it net positive or -- >> it's nothing. i did a post-textual analysis of the 2012 inaugural. he said something very similar. as a matter of fact, the next day he went to a u.p.s. plant in vegas where they were using natural gas fuel. the stocks that people bought off this because they were worried think this was going to

be a boom in natural gas gas stations were clean energy fuels which is the biggest natural gas stations, the stock went from $12 to $24 going into and after the state of the inaugural -- and then, you know, after the state of the union four months later stock was back to $12, you had a complete repeal of the game. west port innovations, again, that went from $27 to $48 into the speech, state of the union and five months later it was at $22. it meant absolutely nothing and this will mean nothing too, because you need congressional approval to get the subsidies. exxon is against the natural gas stations and they bought the largest natural gas company they fought this issue, let's just say if you invest on this history is against you. again, i hate to do it. wow, i'm looking at the 2012 inaugural, i'm at 345 but maybe it will help people not lose money. >> it's said the state of the union is not a market driver. >> people did buy in big time

clean energy fuels and they got slaughtered. you short energy futures if it goes up 50%, 60% because the president was not able to muster any legislation last time and, remember, the president is an all energy systems guy. solar city is the way you would play this because solar city knows how to game things and they have good congressional mind share but, you know, clean energy fuels and west port people take them up because people forget 2012 because that was a really long time ago. >> yes. what does move stocks is earnings and on the earnings front boeing beat expectations with the fourth quarter number, its current year outlook is disappointing the street. dow chemical blew past consensus and raising dividends and expand buyback program and jetblue earnings surging on improved passenger traffic and stronger revenue. boeing sees deliveries this year, 715 to 725 that is below the street, though. they have been cautious in the past. >> oh, i know and jim mcnerney, we were looking for 87 to -- we were looking for something like $92 billion in revs and 87.5 to

89.5 and he comes in at 700 to 720. and people will sell boeing down today and sell it down tomorrow because people will be shocked and wait a second, something is off kilter in boeing and then boeing will be ready for a sustained rise. united technologies and honeywell on the show tonight, dave cody. >> good. >> have really given you a much better outlook. i love jim, he's one of the bankable 21s but he won't play all his cards here. remember the most important thing that happened with boeing was the incredible deal they made with the unions which actually gives you much more upside. i'm not saying that jim's sandbagging. i'm saying jim's a conservative guy and people will freak out and that's part of the arc of freaking out that i indicated earlier. people love to freak out, why do they do that? because they got to freak out ahead of the other guy who is freaking out. one guy is selling boeing at 131 and there's a guy that will sell it at 129, i'm real smart. i'm ahead of that guy.

>> boeing did raise guidance two times last year. it's something to watch. >> 20-year plan. do you know what, try to get a dreamliner, you got to go to 2020 to get a dreamliner. here's a real funny one american airlines three guys who upgraded. every day i say buy the stock and now three guys like it. i'm getting nervous. doug parker will be on tonight. american airlines is doing spectacularly well and this time there's no to your knowledge be able to cut prices. you know, that's another group to take a look at. don't buy american airlines up, that's a silly thing to do, it will be taken down, you know, with the overall market but then you probably do want to buy it. >> dow 65 cents does beat 43. we mentioned the div hike and the buyback volume growth up two. is dan loeb's strategy beginning to work. >> i don't know. coatings were very strong. ag plus 13. not as good as dupont who had more, but the feedstock down 6% that's natural gas. some bear early on will come in today and short it 4560 saying

natural gas went from three to five. but what really matters is this purchase of $4.5 billion says we are unlike apple we're going to be underneath and we're going to buy hand over fist. liveris is talking about a shock being cheap and apple should or shouldn't have said we'll buy with two hands. >> with all the divestitures and spinoffs they may change the name some say of dow chemical. >> they should change it to humanco. this is a very good ag story. dupont, dow and monsanto are all feed the world. but chipotle says you better feed it naturally and we have buffalo wild wings on, are those chickens suffering because if they are, i'm going to where the chickens are having a better time before we kill them. >> a rough morningphoria hoo after the company's fourth quarter numbers, is the honeymoon finally over for ma rissia myers, and buffalo wild wings sally smith one of the

bankable 21 in his new book "get rich quickly." take a look at futures, we've about all over the map over the past, say 18 hours but the implied open is down 147 or so on the dow. a lot more "squawk on the street" live from post nine in a moment. [ tires screech ] [ car alarm chirps ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles.

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all right. take a look at futures. some sustained weakness here even though liquidity it seems

has been a little thin. it's been very volatile today, but we're all watching the turkey rate hike and, of course, the fed statement coming later this afternoon. >> when you were on doing a great job, i don't know how you do it, it was on for five hours yesterday. >> yeah. >> the futures were up nine ticks. >> and asia had a decent night. >> i can't believe how badly these people are misreading the market. the restaurant was closed and i couldn't and i had to rely on orange juice. when i see the futures up this much, what that does is set up a lot of people for a fall. futures should have reacted immediately to turkey and they were thinking, oh, the fed doesn't have to taper. don't be so simplistic. >> there was a feeling at first that the bank there did more than the market expected, right? >> the bank is going to cut your currency 50% in a nanosecond, you know, i put some money in turkey trying to get that reaching for that yield in '92 and i come in, how did i lose 50% of my money and then i say next day i mean virtually in a

few weeks. there's an emerging market fund trying to reach maybe they'll be out of business soon so we don't have to worry about them. >> in the meantime, yahoo! shares dropping, display ad prices fell again. ceo marissa mayer on last night's conference call -- >> getting overall company growth to a pace we're happy with will take multiple years but i'm very pleased with our progress in my first full year as ceo. in 2014, we will continue our efforts around people, products and traffic. while concentrating our efforts on revenue. we expect the business to exhibit stable momentum with some modest acceleration in the second half of the year. >> we talked yesterday morning, jim, not just about display ad but what happens if alibaba begins to slow and that's exactly what happened. >> pacific crest headline on their research captioned it well, alibaba growth slows, core not yet ready to take the lead. you know, i think what people don't understand is google and facebook have spent a fortune on

tech. and yahoo! apparently must have started in tech, 40% of their hires are in tech. these are technology companies. they're not content companies. yes, katie couric, terrific get, but the amount of money they have to spend on tech to catch up to facebook and google is monumental, alibaba has to go up in order for the honeymoon to continue. >> she's not going to replace decastro, but puts her in front of advertisers trying to get them to spend money on the platform. >> they're all about technology, and google has programmatic advertising and she's up against really big, really big, great companies. if she weren't up against google and facebook, a lot of this would be a lot easier, but they are really formidable. it's, like, united states and britain on the west in 1943. don't mess with us.

you know? because we're coming for you in '44. i don't mean to analogize. >> of course. >> the axis at a certain point, it tips against them and not, again, don't want to relate politically to who they are, but i'm just saying she's up against two of the great arsenals of democracy and she's the member of the democracy, too, but you can't go up against facebook and google without spending a fortune. they're just -- it's just what war you have to -- what a war. >> walmart is ramping up its internet grocery shopping strategy. published reports say the retailer's denver customers can order online and pick them up at a nearby store without having to set foot inside. interesting today because the president will spend some time giving a speech at a costco in maryland. >> right. >> not at a walmart probably by design? >> you know, credit suisse comes out with a recommendation to go hold to buy walmart on a day that wasn't so hideous, you can see that stock up a buck and a half, saying that merchandising

and tech issues have been fixed. i always find it amusing to study costco. it's one of the big three, st starbucks, costco and macy's. and the president is going to a place where it's cheaper -- do you think he has the black card or the regular card? they are always mad at me because i have the white card, the president should get a black card because it's really a better return. >> i imagine so, but it speaks to the strategic plays the likes of amazon are making, right? trying to make shopping which we know is challenged in terms of the physical move to shop a little easier. >> here it is, my daughter goes to tulane, must be 35 degrees there because they were shutting classes. there's parts of the country that have totally shut down. >> yeah. >> totally. >> you see atlanta today? >> there's not going to be a lot of shopping but there will be a lot of amazon shopping and, you know, i think that what you have to recognize is that you're going to see numbers be bad

because of the cold. >> that is a live picture that you are seeing. amazing shot of atlanta, i believe. looks like atlanta. and where the ice storms created commutes yesterday and today, jim, that lasted well into the hours. >> yeah. so, i mean, just be aware the numbers are going to be tough again for the end of january. what can i say? the weather is very, very important to these places. >> january so far this january, seven of the top ten all-time demand days for natural gas in this country. that's an amazing stat. >> natural gas spiked to five that's why people will say, i'm shorting dow. but it doesn't store well. >> so much going on today. we'll get jim's "mad dash" as we count down to the opening bell looking at a weak open. a lot more "squawk on the street" from the nyse is straight ahead.

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just a couple days left in january. the dow's down 4% for the month. it looks to be adding to the losses. futures indicate a weak open after turkey hikes rates in the emergency meeting. in the meantime a few moments before the bell and let's get jim's "mad dash" ahead of the market open. at&t, jim. >> a lot of the analysts will take a lot of heat from at&t today, because they are saying cash flow's bad. i read over the call and it's not that bad. they are actuin an actual price and the government won't let sprint merge with t-mobile and you have companies shooting each other and you are starting to get real weakness. i don't want to sell the stock because it will yield 6% but the price war's here. >> you don't have any concerns about the payout ratio? that's the discussion today.

>> the problem if i say i have concerns, i'll get a call from their cfo and so i'm going to go with at&t and say, look, we're not that worried. you can worry about it. let the stock come in, but, remember, there is a price war now and maybe there's linkage to apple about what happened with the contracts. >> post paid churn the lowest ever at 111. where is t-mobile in this number? still to come? >> yeah, you're going to see, i think there's -- this is a real war. it's just a real war. we haven't seen real price wars. contrast that with the airlines where there's -- the pope is coming here and everyone should see him. i saw pope john xxiii, one of the highlights of my life. >> mccormick, unchanged. >> mccormick is a spice company and every time people really sell it, then you start think, well, wait a second, what else do i buy? and mccormick is also the maker of the private label.

i like mccormick on definitive weakness. i caught the ceo last year at the super bowl, one year later said, listen, you ought to come out and had one of the quarters and sure enough the stock is up 10% since then. he's a raven fan because he's from baltimore. i don't think he'll be up here in new york but i hope to see him if he is. >> with all that the opening bell just about four minutes away. "squawk on the street" will be right back.

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♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. you are watching cnbc "squawk on the street" live from the financial capital of the world. we'll get the opening bell in about a meant. everyone's watch the turkish lira, weaker after the rate hike yesterday. we'll have a fed statement this afternoon. we'll have facebook and qualcomm tonight, jim. >> facebook, you know, facebook i've been thinking about it, what are the right analogies. facebook and google are coke and pepsi and yahoo! looks like dr pepper here. >> ouch. it's a nearby maiche market. >> i feel for her, because the

acs acs acquisitions. you are up against coke and pepsi. >> the challenges for marissa y mey meyer. stocks have fallen five times out of the eight times the fed has issued a statement. not a good thing for stocks in general. >> between 210 and 230 there's usual been a radical decline and at 230 buyers come in and overwhelmed by 240. but that's the clock. >> a look at the broad weakness at the s&p on the top of your screen. norway's north atlantic drilling celebrating. >> and fox deportes, and it's all about sports here in the northeast as we await the super bowl which is looking for record ratings i think on sunday. >> i think it will be. when i had eric grubman on the operations chief for the nfl, he said there are more people coming from denver than seattle. but the mouths of seattle are

bigger than the mouths of denver. >> the big losers at the get-go, yahoo! boeing, at&t. how do you separate the weakness driven by their results from the weakness we're seeing overseas? >> well, i mean that the s&p futures translate into a magnification of any decline today. and, you know, this is a decline, i mean, i've been speaking -- you know, i've been defaulting technicians lately, carl, because so many of the people that trade futures are off that and i'm a fundamentalist. you're going to get a stand initially. all right? you're going to get a stand initially 2% decline and then that may not hold and when that doesn't hold, you're going to hear people talk about a 6% decline and 10% peak to trough which would be the correction that some people really do fear. >> you forget, january high is 1850. and here we are at 1780. so, we're not that far from what people were looking for in terms of a correction. >> no. and look, can i urge people to be calm?

what i'll urge people to do is find stocks that they really do like and really kind of get a feel for this is the pullback that people -- oh, if a stock pulls back, i want to buy. and don't run from it but don't buy all at once. you want to buy google, buy five shares. five shares of berkshire hathaway in 1984 turned into lot of money. >> we haven't mentioned biogen, it's down, and 224 beats 228. the new oral ms drug sales doubled has not moved to europe yet and that stock has tripled in the past two years. >> a revolutionary drug but there's some chatter, my friend, i'm seeing some -- a guy who writes for the street, talking about how maybe some of this is stocking. they stock and so, therefore, those numbers don't look as good. biogen was up very big ahead of this launch which is never a good sign. >> electronic arts continues to boggle the mind. they did beat estimates by 126.

revenue was shy. lowers its 2014 revenue forecast and one of the big gainers today. >> we got an upgrade basically saying merrill goes hold to buy saying the next generation industry has great growth. i've been talking to take-two that also has, you know, a substantial business from grand theft auto. these are -- these are stocks that -- grand theft auto and take-two and a value stock and you know what happens. >> tupperware which actually has a relatively robust or had a robust business in turkey. misses, but one of the few misses we have, misses by three cents. they see current quarter sales down one to three. the stock is already down 11% this month. >> rick goings who is a terrific ceo to be able to let's say that was a disappointment. he has come back over time. this is not avon. this is not herballife. this is not new -- let's just say it's better than the typical

direct marketing company, you know, you wait until the numbers come down and people downgrade the stock and maybe take a look at it. >> when you tell people find some stocks you like, right, and wait for the levels to come in, what's on your list? >> well, you know, i like to look at the companies that have already reported good numbers so i don't have to try to prognosticate, so united technologies reported a great one, honeywell on "mad money" reported an absolutely terrific number, you go to the ones who really have had stellar numbers. the banks are not as nearly related to the emerging markets as the last time around, people will be suspicious but a lot of those reported good numbers but then i would go for the bounceback, viacom, time warner, cbs are three companies that spend fortunes buying back their stock right here. right here they're in there buying the stock very quickly and them i was talking last night about jazz pharma, these are companies that are bounceback candidates after the smoke clears. but first you go to companies that reported great numbers with

great linearity to the upside. and then you take something that's damaged. >> right. >> only then. >> not willing to take a guess at the companies that have yet to report? >> you going to buy exxon and then, oh, geez i bought a stock that didn't report a good number. that's a difficult thing. xilinx is up, let's move that example. i've talked about very good 2014. and they did the number. and, you know, the stock, i'm looking at that because, why? they're doing a big buyback, the company is on track. a lot of the telco equipment players but we don't know cisco have reported and they've been good. i like to look at companies that have already reported and i have less guesswork. >> yesterday you mentioned the technicians. >> right. >> yesterday they were something called an inside day where the levels were in between the prior day's lows and highs. >> right. >> which some technicians believe connotes more of a pause as opposed to a reversal, a bottom of the selling trend. >> that's totally true, i had dueling technicians on last night and they were saying, look, you're still going to go

down 2% no matter what and that's where you'll get your first bounce and if the bounce doesn't hold then you'll look at a minus six bounce. let's take a look. down 2% and what will happen people will say, look at that opportunity with boeing or look at an opportunity with the s&p. again, not trying to be complacent. but just trying to present it calmly. because i don't want people to say, oh, my, cramer is worried, carl's worried. no. this is kind of, you know, we got a lot of things going around the world that are not so hot that didn't exist in 2013. we do have a more stable government this time in our country. >> as you say to home gamers on twitter you at time, stay focused. that's a big part of it. >> don't panic. there's a lot of opportunities but you have to let it settle. >> all right. dow's down 147 which is pretty much what futures had suggested. bob pisani's on the floor with more. hey, bob. >> hey, guys. so, we are once again in a very strange moment in modern trading where a very obscure currency

the turkish lira is being watched by virtually everybody as some kind of stabilization or not in the emerging market area. there you see the dollar/lira, as that moves up the dollar is strengthening and the lira is weakening. you see the late-night move by the turkish bank, the lira rallied and this morning you can see it's once again weakening. so, the big question here is are we going to see stabilization. a lot of stock traders who normally never look at currencies are paying a lot of attention to this for some signs of stabilization. same with the dollar/yen relationship, of course, this is a source of a lot of liquidity for buying stocks in the u.s. as well as overseas. the yen nearing its lowest level and as that drops that's the yen strengthening and the yen, again, is move here against the dollar and that, of course, a major source of liquidity. the irony emerging market yields on bonds are moving up. the yields in the united states on our bonds are moving to the downside. the u.s. ten-year yields near

the lowest level. near the lowest level since november. so, we've all become behavioral economists now as traders constantly point out on the floor and the fear of big losses overseas is much greater than the prospects of marginal gains overseas. the etf conference yesterday a lot of guys talking about the tapering continuing today. that was what most people feel but the general feel is the tapering may mean slightly lower growth. and a lot of people were taking money off the table in anticipation that the fourth quarter may be the high gd print cycle, gdp print for the current cycle. it may be 3.5 gdp, and you see it down 3.7% for the s&p. the earnings situation, it was all about 2014 guidance today. boeing had great earnings and great revenues, but the 2014 guidance is below estimates. there you see boeing to the downside. tupperware just missed right

across the board. their 2014 guidance much weaker than expected and tupperware is down double digit sose far. emc had a great beat but their 2014 guidance was below expectations. rockwell's the one good piece of news here, they beat and they raised the low end of the 2014 guidance. you see all of this is trading off the guidance. at&t the weak spot there. they disappointed particularly on cash flow. we're hearing some applause right behind me. that's because we just got an opening on north america drilling the ipo of the morning and international offshore drilling company and 13.5 million shares at nine and a quarter and it opened below that $8.60 right here. the company does trade over the counter in norway. right now the dow down 150 points. guys, back to you. >> thanks so much, bob. let's go to the bond pits and check with rick santelli on the cme group in chicago. would love to get your take on what's happening this morning. >> i tell you what traders commenting that there are many

out there saying, listen, you know, emerging markets, you don't want to pay too much attention to this. and talking about how it may or may not be related to china and tapering and liquidity. and they're flabbergasted. it's just a coincidence that all of this is happening at a time where we have fed meetings and where the fed has purchased all the really high quality assets in the form of treasuries. pushed everybody down the tube of toothpaste towards more risk and what a shock all this seems to be happening at the same time. mere coincidence. look at the charts twos to tens intraday. it was all about steepening and steepening and steepening and now it's all about flattening. we're under 235 mostly driven by the fact with the fed statement that we see two-year note yields a little unruly. yesterday it was 30-year bond yields a little unruly. and open the flattener up, it's the flattest since november.

let's look at the ten year. look at the intraday. you see that big drop? when i was getting ready for this spot traders were calling me big volumes on the buys. this is a big volume session for treasuries. lowest yields should we close at this level and we haven't closed under 270 since, what, third week in november? foreign exchange, yes, we can talk about all the different currencies that michelle's been covering so well in terms of, you know, whether it's in turkey, whether it's in south africa and how what looked stable yesterday doesn't today, but let's go to the big boys. the barometers, the barometers of the kerry trade, that's also involved in this big pie that we're trying to get inside and see what the stuffing is or what the filling is. you see the dollar/yen, the euro/yen, the pound/yen they are all losing ground against the yen. there's your barometer if you are trying to gauge the emerging market in trade weather. carl, back to you. >> we'll come back to you a little bit later, rick, shoes

for sure. buffalo wild wings looking to score business this super bowl sunday and beyond we'll have a live and exclusive interview with ceo sally smith. take another look at the markets. the dow's coming in having broken the five-day losing streak but january not turning into a good month with a couple days left in the month. we're back in a moment. [ male announcer ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day

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just a handful of components are in the green. the laggards are the ones that have essentially reported earnings in the past few hours. boeing is the biggest loser followed by at&t. jim? >> yeah. i know. i want people to be careful because when you see boeing down like that, that means people will cut numbers tomorrow. the countdown to super bowl xlviii is on, but it's not just the fans who are getting ready, buffalo wild wings gearing up for one of its busiest days of the year, shares up more than 75% over the last year. here for a cnbc exclusive is sally smith one of my bankable 21 in get rich quickly because she's done so well, present ceo of buffalo wild wings. how are you doing? >> great, jim. thanks for having me on this

morning. >> let's get empirical and rigorous about it, you had a super bowl that was extended by an additional 20 minutes because of an outage. can you give us granularity about how literally every minute of the super bowl means more business for buffalo wild wings? >> it was perfect timing and, in fact, tit lit up with twitter wondering if buffalo wild wings was programs behind the power outage that is so familiar with our commercials. the guests, of course, that's a great time, of course, to reload on wings and beer during that and they want to stick around and see what's going to happen and it ended up being a very exciting game, and after that power outage, so always great for us. >> well, i wanted to ask you just because i got you here, california's still a major area of expansion, lots of other parts of the country. where is the expansion planned because you've been considerate about where you want to put up places but there's still a lot

of the map left for you. >> absolutely. and excitingly we will open in our 50th state in the first quarter in rhode island. it's the last one to get a buffalo wild wings. but expansion will continue on the west coast. still tremendous opportunity in california, state of washington, the northeast, of course, new york, we'll open our first -- a location in times square about mid-february and i'm hoping i'll see you at the grand opening and then certainly mid-atlantic and florida. so, still a lot of room. >> sally, you know, we're still trying to get a sense of mcdonald's foray into this business. there's a lot of reports that they have millions and ins of pounds of inventory that never went sold. what is it -- what happened when a giant like that tried to move into this space? >> well, it's interesting. we reported strong sales during the time that mcdonald's was doing their mighty wings promotion. i think that it probably provided some of the strength

behind wing prices which roared or soared to record highs during that time. but fluctuating commodities is something we've always handled. i think what it shows is there's a tremendous popularity of wings. people go to buffalo wild wings for different reasons and they go to mcdonald's. and the fact that mcdonald's decided to enter the foray into wings shows just that popularity. >> now, sally, you switched from coca-cola to pepsi since i talked to you last. >> we did. >> why? and does it mean anything for sales? >> well, we're really excited about that partnership. pepsi has a very complete beverage line-up that really appeals to our guests. we did a lot of research before we made that selection. but they also bring a tremendous amount of entertainment value. their sponsorship of the nfl plays right into our fans adesire to be part of the nfl

and how we bring that to life throughout the year as well as their music and other entertainment options. so we think it's a great pairing and perhaps something that we can pair -- work with them in the future is how do you take their snack products and incorporate them into only at buffalo wild wings food and pairings. >> so, you've also been a pioneer in social media. facebook, twitter, which would you prefer to put more money on to? >> you know, we have a nice balance between both. we have over -- over 11 million facebook fans which puts us in the top five in the restaurant category as well as on twitter. i think twitter is what happens, you know, live. it's immediate and our guests really like to respond to that. so, i think you'll continue to see our strategy to support both. >> okay. and also you've been a technology fan. that last quarter brinker was really terrific and one of the

reasons why they say they have a partnership where they've got technology where you can basically finish up your check on a computer. where are you guys right now in terms of technology and through-put for your patrons? >> sure. we had a tremendous focus on our gaming platform and we are rolling out our tablets in our restaurants as we speak. they will be completely rolled out by mid-june. so, not only will you be able to order from the tablet and complete your transaction from the tablet, but you'll also be able to check on news, play games that, you know, are either on the tablet or on one of the many tv screens when there's not a sporting event on. we believe that this tablet will not only be -- allow the guests to take an additional customization of their experience, but provide entertainment options as well. >> sally, as we get closer to super bowl, i'm just thinking you must dread the end of nfl

season. what happens in your mind between the time after super bowl sunday and into, i don't know, nba finals, i mean, are we entering the dead zone here? >> oh, absolutely not. it gives our restaurant -- we have about a two-week breather in our restaurants and then it is the march to madness, college basketball. >> ah, yes. >> so you'll have all of the division play-offs as well as waiting for the -- the pick of who's going -- or who will be on the bracket. we have an online bracket this year where you can -- buffalo wild wings sponsored, track your picks. we have many events that happen in our restaurants during march madness. not much of a breather. we've got the entire month of march. >> sally smith built a tremendous business and it's been doubters the whole way, carl. it's offensive that there's

doubters. this woman is quite a good businesswoman. >> as you've chronicled well in your book, jim. you said there would be a stand and you were right here about 131. pretty much opening down where futures suggested maybe a touch above. we'll see. we've got a lot to get through. here's what's coming up next on "squawk on the street" -- coming up, hey you. button up. think you have what it takes to get through this market? well, cramer's here to help. his six stocks in 60 seconds will lead the way when "squawk on the street" returns. that it's given me time toabout reflect on some of life'seen biggest questions. like, if you could save hundreds on car insurance by making one simple call, why wouldn't you make that call?

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all right, this stock has a prostate cancer drug that apparently had very good results, it's very big market and obviously a terrible disease. some information presented january 30th the analysts will be ahead of it. >> everyone is looking at the enrollment numbers out of wellpoint. >> it was down to 80 initially and now has worked its way up. these stocks are very hard to trade because medical/loss ratio and enrollments, but it's impressive down four points after they looked like they disappointed. >> kors. >> they are saying that coach losses are kors' gains. very volatile stock. >> dhi reported yesterday. >> they go up a couple bucks and they have to downgrade them. >> and goldman on teara data. >> this is big data that people think is played out because they're up against a company that -- up against a free software company. it's always bad when they're

free. >> yes. you mentioned honeywell on "mad money." >> do you know what, we'll get to the bottom, jim mcnerney, bankable and dave cody, bankable and he had a great quarter, remember, they make turbo, to be able to get your cafe standards to be met. core labs, david dempshire is the biggest best performer in the oil service business and doug parker three upgrades today. one of the great places to -- if the market goes down five, six, buy that, buy that and let's see because he's after the bell. >> a good playbook, jim. we'll see you tonight. >> simon is back and let's see what's coming up at 10:00. >> hello, carl. hour two is on deck. obviously some big questions about where we'll go with the market. continuing analysis in the next hour of "squawk on the street." we'll also have the former fed governor randall kroszner to talk about this afternoon and has marissa mayer got yahoo! under control or does alibaba

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welcome back. markets are in selloff mode today the dow posting a triple digit drop but we opened down 150 or so, the sixth time in seven sessions the dow has traded lower. s&p is on pace for the biggest monthly drop since may of 2012 and the nasdaq touching a six-week low and some of the biggest losers yahoo! on the s&p and boeing, at&t, transocean and philipmorris deep in the red, in fact, some of those names are 52-week lows. a few bright spots dow chemical leading the s&p, u.s. steel, dupont and southwest air are trading higher, for all of us, guys, waking up and coming to the news the rate hike in turkey, trying to get some control of inflation and raising short-term rates and doubling essentially their short-term rates and their benchmark rates and that's causing concerns about what happens to that economy and to currencies around the world. >> the lira and south african rand is weakening after a surprise move on south african bank and all eyes on emerling markets and central banks around

the globe. it's the last federal reserve meeting with ben bernanke as chairman. the policy statement will be released at 2:00 p.m. eastern and bernanke will not be holding a post-news conference. joining us to discuss what to watch for from today's fed meeting, chief u.s. economist at jpmorgan and, of course, our own steve liesman, so, michael, the federal reserve probably not as dramatic of a move as we've been seeing from other emerging market central banks, but, boy, quite the backdrop. >> yeah, that's right. i think the fed most expectations are for them to stay the course this afternoon. another $10 billion reduction in the monthly pace of purchases and we're really not looking for much of a -- no major changes in the statement language. i think they are against stay the course with their forward guidance on interest rates. i think compared to other central banks the fed may be more boring this afternoon. >> steve liesman, this is a question you and i have gone back and forth with, that is, does the fed even acknowledge

the turbulence which do blame the federal reserve at least in part for the selloff? >> yeah. i mean, it's possible that they mention it. the question is what do you do with it and the question is does mentioning it raise it beyond what they perceive to be its level of importance. you know, i think they've been through this before. i think bernanke's spoken about it publicly this notion of what happens in emerging markets. and he said time and again they make policy for domestic purposes. and the notion that these emerging markets have been on notice that the fed was going to taper over time and then again the thing you and i have gone back and forth about and maybe mike wants to weigh in on this i think it's the distance between when the fed announced the taper and even talked about it over a period of time and when emerging markets began to sell off and whether or not it was too great a time to actually connect the two. >> what do you think, mike? do you think the fed is to blame for the selloff in emerging markets at least in part? >> no. i'd actually agree with steve

there as bernanke as said, you know, the em countries have had ample notice that the fed would be eventually normalizing policy and i think that's exactly right that the fed has to set policy with respect to domestic conditions and what we're seeing in the financial markets it's not clear that that's going to have a big impact on u.s. export performance. i think the fed's job, you know, the fed can't solve all the problems around the world and i think they have to focus on their mandate and that would suggest that they're going to probably downplay the significance of these recent moves in the em financial markets. >> can i just pick up here if i may, steve? are you right, do you think to downplay what is happening now to those central banks around the world? you've got south africa, turkey, india all now raising interest rates. raising interest rates, slowing growth. >> right. >> because what the federal reserve is doing. the central banks are moving in the opposite direction to what most people who hold big blue chip companies want them to do.

they don't want parts of the world economy to be slowing down at this stage, michael. >> well, i think in some instances those central banks are taking actions that were long overdue and a lot of those countries you've had inflation running above where they would desire it. maybe we've had financial environment that is like those banks get away with it for a while, but eventually i think they have to set their houses in order and to say that the fed being in some i was a catalyst for that doesn't mean that it's the cause for the imbalances that have been happening over there. >> the fed is clearly focused on the american economy and on the dual mandate on inflation, on jobs greth. it's not exactly like everything is peachy, we had a horrible jobs report last time around. some of the data has turned over and durable goods were disappointing and now financial markets are a little bit unstable. how high is the bar. what will it take to get the federal reserve off the tapering track $10 billion per meeting? >> i think there's a couple things that are easy to figure

out. one is whether or not what's happening changes the medium-term forecast from the federal reserve. and i agree with you there's been some kind of squirrelly data after some pretty strong data and i think the number we're going to print on gdp this week is going to be one that will have a three handle on it which is going to very well complement the third quarter number that was 4.1% that everybody thought the fourth quarter was going to be a payback. it doesn't appear to be at this point so you've had the second-half rebound and a general sense that the first half is doing pretty well so far. not enough to change the medium-term forecast. finally i think the trump card in all this is systemic risk. i don't think it rises to that level yet that we have a systemic risk problem. simon asked my question to michael. the only thing i would throw out is this notion of whether or not capital controls are an instrument that might be used byham so of these emerging market countries in addition to or instead of the higher feds

fund rate to stem capital flight. >> how very old school, steve. >> it's the new flavor of the month, simon. >> wow. >> we used to frown on that so much? now the imf said capital controls are cool. >> the question is will they work? because already the turkish lira. >> they work, sara, they work really well when you tell someone they can't take their money out of a bank they work really good. >> if you think they are going to impose them it doesn't work so well because you pull the cash out now. >> but oit worked in a bunch of emerging market countries and that's why the imf turned its opinion on it, it used to be frowned upon and now it's okay in emergency situations. >> margaret thatcher would be turning in her grave, grave. >> we could talk it about all day long but we've got to leave it there on this fed day. thank you, michael and steve. yahoo's shares under heavy pressure despite topping estimates. reporting online ad prices dipping again in the fourth

quarter and, in fact, alibaba in asia, the revenue growth there is arguably decelerating, so does it create a buying opportunity for investors? we should mention that cnbc has a content sharing agreement with yahoo! scott kessler joins us group director at s&p capital iq and ben shacter is a senior analyst at mcquarry capital. before we go further we should mention that yahoo! is still the most popular destination for people using desktop computers here in the united states. it is in a strong position, but, scott, display advertising, the core of the business, in the united states, is down 6% in this quarter which should have been a great quarter for the industry overall. and the question, scott, has marissa mayer got her hands on this company fully? is it in control? >> well, simon, thanks a lot for having me. i think the short answer to your question is we're not entirely

sure. clearly the public perceptions of marissa mayer and yahoo! over the last year and a half have been i think overwhelmingly positive by and large. but what we have seen is an increasing focus on the i'd say eroding and lackluster at best fundamentals in the company. people have been emphasizing the tremendous value in some of the asian assets including the aforementioned alibaba group. but the reality is i think people are growing uneasy and uncertain about the future of yahoo! even with that investment. >> let's talk about alibaba in a moment. ben, let me just ask you about where we are with marissa mayer and let's not forget that she kicked out one of her friends in running the company coo recently with a $110 million payoff whatever it was. rbc capital is saying there is a window of opportunity to innovate in the way that twitter and facebook are innovating and that window of opportunity is

closing quite rapidly. would you agree with that, ben? >> yeah. generally i think that is fair. but, you know, the reality is don't forget the stock and that's what we care about is really driven by ali ba ba. the core business makes up 15% of the actual stock value the media and we all spend a lot of time talking about marissa and the core but that's really not what's driving the stock. >> i've read through the note that you've got here and, of course, you have the advantage of having a chinese internet analyst. he's suggesting it could ipo at $200 billion. if it did that, their stake,ia yahoo's take would be worth $48 billion and yet its current market cap is only 38. it doesn't stack up. >> the issue is what is the overall value and what will it look like once it goes public, there's a lot of uncertainty and concerns. and one of the things our man in china is worried about increasing competitive pressures there. it's the first time i've heard

him express any concerns about the growth and that comes on the heels on the fact the growth rate decelerated last night. >> where does the stock stack? >> we've had a hold opinion on the shares. we increased our target price. it's now $45 a share up from 36 a share but to ben's point, look, the fundamentals i think are a big question mark and now it seems like alibaba is also becoming a question mark. we'd stay on the sidelines here. >> gentlemen, we'll leave it there. thank you very much, scott kessler joining us from s&p and ben shacter, thank you. to emerging markets, the top story of the day the turkish central bank releasing a rate decision after its first emergency policy meeting in more than two years. michelle caruso cabrera is live in istanbul. she's on the phone with us with the latest. it was a stunning move by a stunning bank. what's been the reaction and fallout? >> huge moves. i mean, three and four and five

percentage points full on depending on which interest rate you're talking about. let's show you what's going on with the lira, at first it rallied dramatically but the two-day chart shows all the gains have been given up. it may be nervousness ahead of what we expect from ben bernanke and the federal reserve in the united states because the currency has acted so closely in relation to what's happening in the u.s. will the move by the turkish central bank the shock and awe attempt at interest rates. is it going to work? there's a lot of questions there and we answer it with even more questions. has the central bank convinced the markets. has the central bank convinced the market it's willing to hike even more if it needs to and will it push short-term speculators to finally move on. every time a central bank raises an interest rate it gets a lot more expensive to borrow the currency and sell it short so you've got to expect a biggercu

it worth for you. look at the ten-year yield for turkey right now. remember, long-term interest rates are nothing but the average of expectations of future short-term interest rates. we know that short-term interest rates have gone up dramatically. if long-term interest rates go down, that means there's some kind of expectation that interest rates are going to have to drop. it also tells us perhaps they are expecting a recession or weakening in the economy because of the decline in interest rates but it also tells what the expectations are about the price of money at some point. >> i'm curious about the political situation and how stable the current government is. part of the reason we got into the mess with turkey besides the economic problem were the political problems and the corruption scandal. >> which are completely unresolved and are in the pairs every single day. more and more people seem to be arrested. they are unresolved. there's an election in march and, yes, every time the

political instability looks unresolved or even worse, you can be sure the interest rates that turkey will have to pay could very much move higher. >> michelle, great to have on the ground there. our chief international correspondent, we'll continue to check in with you. the world is watching turkey today. we're looking at the big movers in today trade. sotheby's has given up some of its gains and they'll pay a special dividend and buy back shares. this comes months after dan loeb called for a management shakup. third point has a 9.3% stake in the company. the company would consider the sale of its new york city headquarters. carl, back to you. >> thanks so much. when we come back snow and ice wreaking havoc on roads all across the south from the carolinas down to atlanta where the major highways are nearly abandoned. we'll get an update on the

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save up to $500 on beautyrest and posturepedic. get a sealy queen set for just $399. even get 3 years interest-free financing on tempur-pedic. keep more presidents in your wallet. sleep train's presidents' day sale is on now. you're looking at some video of atlanta last night. the city nearly brought to a standstill due to ice and snow. drivers have been abandoning their cars, walking to their destinations. some taking shelter in stores or restaurants. this winter storm not only affecting atlanta, it's wreaking havoc from louisiana to the carolinas. the weather channel's jim

cantore is live in charleston, south carolina, with more. jim, good morning. >> reporter: yeah, good morning. the problem now is the precipitation ends as it is here in charleston, it's freezing. temperatures are below freezing and in some cases even down to panama city beach, they are still getting accumulating sleet, parts of i-10 now are closed so the bulk of this event is just about over for everyone. there will be a few pockets, but the problem is the cold air remains and in places like atlanta where people believe it or not are still in their cars from 12:00 yesterday. can you believe that? 285 which is the major perimeter around atlanta, is like a parking lot. and so they're calling in the national guard to help remove some of these cars. they need to at least get one lane salted so they can melt this because it's just slippery as all get-out and atlanta quite frankly will not get above 32 degrees today because of the clouds and, of course, because of the fact that you just have the cold arctic air. here we are in charleston, 28 degrees, i come for tropical

hurricanes but not sleet storms. we've got one. this is a very historic and well traveled street at that, but today pretty quiet in terms of what's going on. the big issue with charleston is the fact that the bridges, six of the seven major bridges that get you in and out of charleston are closed. the ravenal is a four-mile bridge that goes from mt. pleasant a pretty populated area in charleston to come over to the city, if you can't access that bridge it's a 40-mile drive around to get into, even though you can see charleston, you can't get in unless you drive your way around. that's one of many bridges. sullivan's island and places like that that are cut off at this point. temperatures will get above freezing this afternoon for a couple of hours but that's it. and we'll drop tonight and friday possibly 60 degrees here which means the city of charleston will get back to things they love golf and walking through the streets, the beautiful historic streets of downtown charleston.

places like atlanta, tugh, guys, i'm tell you, it will be a few days before they get back to normal, kids sleeping in schools and a woman had a baby on interstate 285 yesterday because they could not get off the roads. a really awful situation in atlanta. >> you know, jim, last night, yesterday, i actually flew back from the west coast across the united states and to see it from the air, it was amazing. hour after hour of just snow-covered land. extraordinary sight. >> reporter: yeah. this is the deep freeze. anything east of the rockies right now has been cold for the entire month of january. we're going to get a warm-up, though, as we go through the next couple of days and that will be a welcomed one for millions and millions of people. >> that's for sure. jim, thank you very much. jim cantore joining us there from south carolina. in the meantime, president obama calling last night 2014 to be the year of action in his state of the union speech. and he's hitting the road this morning to push that message. we'll he be able to accomplish the goal is that he outlined la

night? senator john barrasso will join us live from washington next to weigh in. [ tires screech ] [ car alarm chirps ]

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the president speaking at a costco in maryland today to reinforce his message from last night's state of the union about raising minimum wage and income inequality and joining us is wyoming senator john barrasso senator from the republican policy committee who joins us from the hill. senator, good to see you. good morning. >> thanks for having me, carl. >> there was a bit of optimism he gave, some love talking about humble roots and making something of yourself in this country. what did you think? >> i thought he finished on a high note paying great honor as the entire body did to a brave veteran who was injured fighting

for our freedom, so i thought he ended on a high note. i think a lot of the speech was politics as usual with a long laundry list. and the president wanted to get things done for the country, he could embrace some bipartisan positions that are out there now in terms of the keystone xcel pipeline and in terms of repealing the medical device tax things that republicans and democrats agree on that actually get people back to work so i hope the president adopts those. >> how much of a disappointment was there in not mentioning keystone and if he felt there was political promise in it, wouldn't he have said something about it? >> if he really wanted to work with congress, he would have. 62 members of the senate support it, every governor along the route supports it. it's important for energy jobs. the state department predicts 42,000 jobs, good-paying jobs, energy security, less money sent to overseas to some folks who aren't necessarily our best friends and allies on issues, so

i think it's a winner for the country, but the president should have embraced it. the medical device tax, i mean, it's interesting, carl, you look at the four states the president is going to, maryland, pennsylvania, wisconsin, and tennessee, four republican senators, four democrat senators from those states all eight of them voted to eliminate the medical device tax because we know that drives jobs overseas. the president should have embraced that as well. >> sir, just on the subject of keystone and that figure that you quoted again that it could generate -- it could generate 42,000 jobs. i read the washington -- "the washington times" op-ed that you put that in, in a broader context that's as many jobs as retail tends to generate within a given month. 42,000. although we want jobs, is not necessarily a game changer, is it? >> well, what i'm doing, simon, is just quoting the numbers from the president's own state department. i think the numbers are going to

be much higher than that. plus it has to do also with energy security. the president talked a little bit about energy with natural gas. i think that's important. the regulations that he says he can cut through regulations, well, he ought to be doing that because his epa is coming out with regulations that's marking it harder and more expensive to produce american energy and american jobs, so i'd like to see the president cut that red tape and focus on what i consider red, white and blue energy jobs for our country. >> senator, on immigration, we keep hearing reports, republicans are trying to carve out some maybe not a path to citizenship but at least some way to make some reform happen, certainly the president was behind that in the speech. but we didn't hear it in the rebuttal. where's the party on that? >> well, you know, a broad immigration package, comprehensive package passed the senate. i voted against it. the house is going to be having their retreat over the next couple of days and i think they're going to have a

discussion about doing it in bite-sized pieces, but i think we're going to see what happens after the members of the house come back from their retreat. >> already, senator, a lot to take in on a very busy morning for stocks in the markets. it's good to see you again. we'll see you next time. >> senator john barrasso of wyoming. want to draw your attention to apple here, below $500 a share for the first time since october. in fact, october 17th when it traded as low as -- today it traded as low as $496.62 a touch above that on in real news. we know what earnings said earlier in the week and we'll see what the likes of other names in that space, the momentum names like a facebook and google say beginning after the bell tonight. >> investors weren't happy with the earnings report. clearly apple got shellacked yesterday. the selling pressure continues along with the broader markets. you have to look at the nasdaq and the s&p 500 all getting hit pretty hard today. >> maybe related to at&t? wireless subs, 800 to 9,000 were

below estimates. >> i wonder if carl icahn tweets out he's buying more shares. no-brainer. watching apple and the stock selloff. it is ben bernanke's last fed meeting, the end of an era. what will we expect to hear this afternoon? a statement no press conference but we'll be joined by randy kroszner to weigh in after the break. [ male announcer ] legalzoom has helped start over 1 million businesses.

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welcome back, i'm sharon epperson at the nymex with breaking news from the energy departmentby energy supplies, crude oil supplies rose much greater than expected, up 6.4 million barrels in the past week. that's more than triple what analysts from platts were looking for. the analysts that were surveyed by platts. we're also looking at a decline in gasoline supplies. to about 800,000 barrels and we are also looking at a decline in fuel supplies of 4.6 million barrels much greater than expectations. we've seen an extension in the losses here in the crude oil market. we're looking at crude prices down about 86 cents right now right around $96.50. but traders on the floor telling me they are very much concerned about the emerging markets and watching it very carefully. waiting to see what happens with the outcome of the fomc meeting and while the data point is one that will play in today's trade,

the other two much more crucial to many of the traders here. back to you. >> that's for sure, sharon, thank you very much, sharon epperson at the nymex. it's a big market. currently down 115 on the dow. let's bring in ben willis, managing director with albert fre freeh. what is going on? >> the market is going through a corrective phase that we've been watching for months here, at least i have. yesterday took us down to a 4% correction and money moved into the market today. we're looking for a correction. stocks couldn't correct themselves. we'll point our finger at the currency markets and look at what happened in turkey and what happens with their currency. >> you're not buying it by the sound of what you are saying. >> i'm looking for a correction, nobody thought the bat was very important in the 1997 and it turned out to be a major impact on the world markets including russia, defaulting going into 1998, so you point at whatever you want. what the fact of the matter is the market was overextended and i'll take any excuse to get the

correction. >> dow is cutting losses down 120 points, a big chunk has to do with boeing. >> absolutely and at&t. two major stocks. within the stock market for the -- actually since the beginning of the year you've had a market of stocks, not a stock market. so it's been very difficult. it's added to the volatility and a difficult market for most people to understand but from a trading perspective it's been great for traders. the volume has picked up on the volatile days which is a benefit to guys like me. but the market needs to correct. it's healthy. it's not a bad thing. i know we don't like to talk about it. >> for those that aren't trading and signature at home and wondering whether they get in or out of the stock market, what is the bigger picture here? >> get in. >> where is this market going in 2014? >> the market will be higher in my opinion but it needs to correct. we only had about a 4% xrection correction last year and we've had this month from the highs. it can go lower if you look at the s&p look at a 1670 level for a true bottom.

i'm not alone in this opinion. goldman sachs made this statement early on, but it's healthy and if you're a long-term investor it's not a big decline. >> if i accept that the market will be higher by the end of the year, why will it be higher by the end of the year? >> because the world economies are, in fact, improving. the consternation and the things going on right now are the hangover effect that was caused by the fomc through the other central banks and currencies throughout the world. >> even though i see central banks raising rates at the moment around the world to defend their economies, you still believe that world growth will drive the market higher. >> raising rates is an indication of health. >> ben, thank you very much for that. ben willis joining us there. guys, back to you. >> thanks so much, simon. day two of a two-day fed meeting, of course, bernanke's final fomc meeting and joining us here at post nine former federal reserve governor randy kroszner and professor from boots engineering. great to have you here.

>> thank you. >> rates mean the economy's getting better, is that's what's happening in turkey? >> not so sure. it can mean that but i don't think in this certain circumstance it does. i think in a number of countries inflation has gotten out of control and they're sort of getting to the party a little bit late and also there have just been other macroeconomic policies that have been problematic and turkey has political problems and you put it together it's a toxic mix. argentina is an example of that. >> put all those things together, what is the trigger to where the fed actually has to mention some of these selloffs or this volatility in the statement today? >> it will be very interesting to see how they do mention it because they usually talk about the risks they see and undoubtedly they'll mention some of the potential downside risks and the international risks. i don't think they'll be very specific and i don't think they'll be talking about turkey and argentina but they'll acknowledge downside risks. >> it's so great to have you here, randy, because you were on ben bernanke's fed when he took the helm in 2006 and through the

financial crisis, his legacy. everybody's trying to talk about that right now. can we really determine what that is right now, his qe, his zero interest rates? has it all worked or do we have to give it another few years? >> i think there are different pieces. we had to fight the devil of deflation. we didn't want to get into a japan-style situation or a 1930s-style situation. i think the chairman gets incredibly good marks for that. we were proactive. we were not passive like the fed in the 1930s. we learned the lessons from friedman's great monetary history of the united states. and we fought that. whether this will help us to get out and move forward with the most recent round of quantitative easing, i think that's something that the history will be written going forward. we don't know yet. >> on that subject, this is a very, very important moment for them. they can't pull back on the taper, can they? because the communication strategy would be in shreds. they've said to the market, look, we're going to tamer tape and in return we'll keep rates lower for longer and they

balance out, so they can do nothing but continue to cut back on the qe, that's for sure, isn't it? >> it depends on the circumstances. today they're very likely to continue on. but let's say there is some sort of glitch, let's say a negative narrow happens like china really does get into a lot of trouble and we start to see commodity prices and deflationary press e pressures come in and the fed were worried about deflation getting too low and they have to start taper. >> communicating forward guidance, new words on that is it because they can't communicate it adequately because the markets don't believe it like they don't believe it from the bank of england now, it's impossible to say rates will be this low for this long. the market is, like, it's too far out. >> what we'll hear about more over time the discussion of the potential deflation issue. we'll avoid the d-word but talk about unusually low inflation. >> but it's unusually low but if

a shock comes in that means you could swing into deflation awfully quickly. >> so i think that's why they'll talk about it more and you'll start hearing more discussions about price level targeting or maybe even gdp targeting because one of the challenges will be we'll pierce through the 6.5% unemployment rate and they're going to have to change the communication strategy at some point. i think they'll pivot to inflation. >> we're week and a half away from that number. some are pointing to the confidence number yesterday, saying, well, maybe december really was an outlier, was a one-off in terms of weakness. do you think it's possible? >> those numbers get revised by a lot. >> but this was markedly weak. >> it was, but if you look at the previous two months there was a very significant upward revision. it was kind of a mixed report so we'll have to see what happens. i think it's really hard to just focus on one month's number. got to look over the three-month horizon. >> anything about cap-x disappointing you or should we smooth out the volatile cycle? >> certainly it is volatile and you don't want to put too much

emphasis on any one number but that's one of the challenges we've seen. we haven't seen the strength in investment to say okay, the market is ready to take over, we can rely on the market forces. >> they are not taking risks in this economy, the ceos are sitting on cash or buying their own stocks. >> i'm not sure what is doing their job because, of course, it's a very risky environment so i can understand why they are more uncertainty. >> they need to create jobs and growth. it can only come from them. >> they have to see more demand and economic growth. >> ultimately but when there are uncertainties on the fiscal and regulatory side that can slow them down and so, you know, from their shareholders' point of view they have to have some caution. >> do you have a quick anecdote from ben bernanke on the crisis as we contemplate his last fed meeting? >> the man was incredibly calm throughout the whole crisis and kept his sense of humor and once we were talking about the panic in 1907 thattoid done research on and there were strong parallels, as i was leaving his office a saturday afternoon,

randy, that's exactly right, but don't use the panic in your next speech. a great man. >> thanks for coming by. stay for the super bowl. president obama is wrapping up a speech on the economy at a costco in maryland. john harwood has the very latest for that on us. this is the speech after the big state of the union address last night. >> this is, simon, part of the president's attempt to move around the country. he's going to go to pennsylvania, to tennessee. other parts of the country to try to sell this economic message that he tried to connect with the american people on last night in the speech, and i think he's feeling a sense of liberation on a couple of grounds. one, he has the opening to make some headway in congress on immigration. this looks promising. he kept the temperature low on that issue in the speech last night. on the other hand, he's got some things that he can try to do on his own. they're on the margins when he uses executive authority trying to leverage small amounts of federal money. but he also has issues if the

congress doesn't go along with him that are very popular like the minimum wage and he can go around as he did this morning and say, it's time to give america a raise and this is something, of course, that can be done without any federal money, without any federal bureaucracy, it's popular. there is big debate about the economics of that step. and so republicans have a lot of grounds in which to resist it. but this is a fight the democrats want to have. and so the mix of potential legislative achievement but also campaign issues in a year when democrats are trying to hold the senate and take over the house is something that the president thinks is useful and he seemed to be feeling in a good mood. >> well, john, he's mentioned the minimum wage before. it sounds like he's really ramping up his call for it this time around. john harwood keeping tabs on the president. coming up on "squawk on the street," weather taking a toll on jetblue's quarterly results. what does it mean for the stock? ♪

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welcome back to "squawk on the street." now, on this down day we found a bright spot and that's ilumuna, they beat expectations because of strong growth across its business categories and analysts raising the price target to $160. shares by the way just hit an all-time high. >> thanks so much. we're also watching boeing and jetblue, both reporting fourth quarter numbers today. phil bellebeau in chicago with details. any big surprises? >> the surprise is what the reaction is to the boeing forecast in 2014. in fact, the boeing conference call has just begun and it will be interesting to see what kind of questions ceo jim mcnerney gets in the reaction to 2014. the numbers of the fourth quarter blew it out of the market, both on the top and

bottom line. the eps guidance for 2014 this is the first one coming from boeing and the company says it now expects to make, you know, somewhere between, you know, 37 and 57 cents less than what many on the street were expecting, 720 is the expectation when many on the street were expecting them to earn 757. the backlog stands at $441 billion for boeing and they expect to deliver between 715 and 725 commercial planes this year, that's the good news regarding what they expect to do in terms of deliveries and operations this year. but, again, this stock getting hit today because the eps guidance coming in below street estimates. we'll get some color on the conference call in terms of why exactly that is the case. as for jetblue, they did beat the street. beat it by a penny earlier today. but the concern for jetblue if there is one for investors is what the company had to say about the impact of the recent storms. we're talking about the storms that were right after new

year's. jetblue lost $30 million due to weather cancellations and $45 million in terms of revenue, it does, however, expect a strong first quarter despite the storms we saw earlier this month, the storms that are going on right now. this has been a rough month for all of the airlines. take a look at shares of jetblue. up fractionally today, guys. we'll hop on to the boeing conference call here and see what the analysts have to say regarding this guidance coming from boeing. again, guys, this is responsible for half of the loss in the dow today. >> phil, just before you go, isn't boeing quite often conservative on these things? >> very conservative. >> yes. >> very conservative, so you have to keep it in mind when you look at their first guidance. that said, they are coming in 700, and 720 and the street is at 757. that's a big difference there. they they'll likely bring it up over time this year but a lot of people are looking at that and saying why is it so much lower than what many on wall street are expecting. >> we'll let you join the conference call, thank you very

much, phil lebeau, in chicago. coming up on "squawk on the street," patrick doyle will join us to weigh in on the economy and most importantly the state of the consumer and how domino's is preparing for the super bowl. "squawk on the street" will be right back. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

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downtown, 10 h. let's link to rick santelli for this morning's santelli exchange. good morning, rick. >> good morning. welcome back, simon. glad you're here. it's nice to have a european perspective in a time when any perspective is good because things are not as they appear to be. you know, this morning i always look forward to steve's survey because you do, it's very important to know kind of what the -- the economist and the analysts are thinking. when you ask will the taper effect interest rates. keep rates low.

the funny thing happen tons way to the trading floor and we talked about this before, how many guests on cnbc have said over the years, have to be long equities. it's the only crap game in town. it's the only alley where people are rolling the dice and, it's those logistics that really do price market. so what happens should the world equity gain in the alley slow down dramatically. even if it's only temporary. who fills that void of money investment, where does it go? there's only one game in town when the game in town isn't stopped. that's high quality sovereign. it's the only natural hedge there is. when the stock market goes down no matter what's going on in the world no, matter how historically it should affect interest rates. no matter how high deficits are. no matter how in the red southern europe is. in the end, whether it's boons, guilds, treasury, it's going to

find buyer there's. what's really strange is everybody wants to talk about this from a liquidity standpoint. there is plenty of liquidity. the problem is liquidity versus funding. i think a good way to look at that during this cold weather spout we have is to say something like, there are more four by four all-wheel drive vehicles in the united states now than there was ever before. but, very few of them are in atlanta. okay? so it's the same thing. maybe there's a lot of liquidity but it isn't about a lot of liquidity. it's about the funding and who needs it and who actually gets it that matters most. lunar new year, 31st, this is china's end of the year. there are so many moving parts here but don't underestimate how the board is going to continue to shift. carl, back to you. >> all right, rick, thank you so much. rick santelli. when we come back, are you tired of spending hours stuck in rush hour traffic. just hop on a hol kepter. that's what the uber wealthy do

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with rush hour traffic? no problem, just hop on a helicopter. that's what the super rich are doing, at least. robert, i hope you got to work today on one of those? >> not quite. i still prefer the four and five train. we're going to look tonight, we're going to follow an entrepreneur and markets trader as he commuted from manhattan to his estate on long island. let's take a look. >> if you think about it, someone has investments like i do. i'm trading all day. gold, silver, equities. then i have to give up two to three hours of my trading time going out to long island by car. it becomes a losing proposition monetarily. >> on the way to chris' house the ride offers a bird's-eye view of his 72-acre apple orchard and private hunting reserve. a few minutes later they're approaching chris' home flying right over his two boats and landing directly in his backyard. >> home sweet home.

>> pretty sweet. now that commute costs around $2800. also runs this service says he has another client who basically takes the chopper to fly fish in vermont just for the day. so a lot of uses for this. time is money and when you're wealthy, it's a lot of money. guys, back to you. >> i tell you what, there are some people in atlanta today who wish they had a chopper. >> definitely. >> it is like the ultimate perk, right? i mean, it's just living vicariously watching that. >> i love the way that you can justify it by saying, look, it will take me two to three hours to go through the traffic. i can make more money per hour doing what i do. >> the opportunity cost, isn't it, robert? >> this guy does that on the show. he said, look, i can trade this amount if i'm in my. chopper versus sitting in the car. this is how much money i saved. so they really can justify it on a cost basis. again, if you're making that much money. >> we decided the four/five doesn't go to inglewood cliff,

robert. definitely the next chopper in the contract. that's my tip for you. a few seconds here before 11:00 on the east coast. we're hanging into what jim cramer said would be an initial stand but we all know we've got to get through the fed statement. typically in the past year stocks have not traded well following the statement. >> you look at what's going into the fed statement and you've got a period here of risk aversion, this fear trade. i'm watching the treasury market. the ten-year yield falling to a level that we haven't seen in two months. >> good to have you back. we'll talk euro. >> thank you, carl. it's good to be back nch. if you're just joining us, here's what you missed early on. >> welcome to "squawk on the street." here's what's happened so far. >> we're going to be offering a constructive agenda that actually gets people back to work that deals with upward mobility. that's how you fight inequality. you get people to be able to aks is opportunity. >> this is a president who understands some fundamental despite everybody's discussion,

understands fundamental economics. and he knows in order for people to reach the middle class we have to give them the tools. >> it's been said that the state of the union is not a market driver. >> no, people didn't buy, they bought in big time to clean energy fuels and got slaughtered. you short clean energy fuels because the president did not -- was not able to muster any legislation last time. he's up against two of the great arsenals of democracy and she's a member of the democracy, too, but you can't go up against facebook and google without spending a fortune. [ bell ringing ] >> xhiti iexcitingly we will op the 50th state, rhode island, the last one to get a buffalo wild wings. expansion will continue on the west coast. >> the fed can't solve all problems around the world. they have to focus on their mandate. that will suggest that they're probably going to down play the significance of these recent moves in the financial markets. >> i think a lot of this speech

was politics as usual with a long laundry list. and if the president wanted to get things done for the country he could embrace some bipartisan positions that are out there now. >> good wednesday morning. we are live at post 9 at the new york stock exchange with a check on the markets. the dow after futures and the open down about 150. we recovered some but still a triple digit loss here. the s&p is back to 1782. shares of boeing are slipping this morning even though fourth quarter profit and revenue beatest mates. cautious outlook for 2014. leading to the decline of the stock today. shares of dow chemical rallying after fourth quarter profit revenue did top. raising the dividend 15% and boasted 2014 share repurchase program. >> a little bit after big losses at the open but are still lower

across the board. let's go to bob pisani on the floor with a look at what's moving and, bob, the talk conversations to be emerging markets. >> it takes a lot to move the fed off of the front page of the conversation on the day of an announcement. norl a normally we would be but you're right, it's about emerging markets and the turk iish lira. they don't normally do this but on these kinds of days they do. when the chart is moving to the upsi upside, the dollar is strengthening and the lira is weakening. now throughout the morning generally the dollar has been strengthening. lira weakening. it's stabilized in the last hour or so since the open. look at the dow industrials. it's stabilized. you can see near the highs for the day. let's move on and talk about emerging markets. just back from an etf conference. people radare trying to distingh

between the emerging markets. go more towards, one, hedge out currencies. a lot of talk about hedging out currencys. deutsche bank has one. look at the dbem. down 4% of the year. that's half of what the em is down. it does make a difference in these kinds of situations when you get a lot of currency gyrations. look at that one. the dbem more carefully. the other big debate is go in the frontier markets, get away from china. here's something that's been talked about recently. the fm. this is basically middle eastern banks, nnigeria, some african countries. that's up on the year. big risk though. you're going into very liquid market. here's the earning situation. boeing and at&t, that's why the dow is underperforming. disappointments with at and t. tupperware just missed. emc, also poor guidance. it's all about guidance.

sarah and carl, the real problem with saying let's get away from china and let's go to nigeria or mexico is if china does have real problems you're not going to be able to hind out in nigeria or in a middle eastern bank. that's going to be a major issue here. stabilization in china is very important right now. >> thanks so much. bob pisani. meantime, shares of yahoo! are down this morning. fourth quarter earnings. beat estimates. the company says online ad prices and dip and revenue dip slowed at alibaba. after this quarter is the honeymoon for a ceo marissa mayer. let's bring in senior analyst at hoppen himer and cnbc contributing bethenny mcclain. she wrote "yahoo!'s geek goddess." jon ford joins us this morning at post 9, as well. jason, four quarters now without growth. is that leash, that long leash

that she's been afforded suddenly getting shorter? >> i don't think so. i mean, this is a very difficult problem. she tackled running this company. and you know, the first thing that they addressed it was relationship with alibaba and perhaps secondly softbank and that does seem to be better as an outsider. now she's trying to tackle fixing the core business and that is difficult. there was significant underinvestment under the prior management team in mobile, in social, in video, as well as in honestly ad technology and so you're starting to see that but, you know, by no means is it moving forward but that's not why investors own the stock. they own the stock because it's perhaps one of the most leveraged ways to play the chinese e-commerce market. >> yeah. i'm going to call it -- i'm going to say the honeymoon is over and marissa knows it. her language in the conference

call was striking to me, talking about revenue and enrique castro gone she's going to take a firmer hand in that. ken goldman saying it's going to be firm in 2014 and willing to look at acquisitions that are going to be growth to revenue in a financial if they make sense in a financial sense. bethenny, what do you think based on your look at mayer, is she going to shift to a revenue focus as much as she had a product focus in 2014? >> look, it's a silicon valley truism that it follows traffic. if people come, the money will be there. the traffic has been growing at yahoo! at least according to marissa mayer but the revenue has been sliding. is all traffic really created equal? does it all mondetize at a guid rate? i think the honeymoon is over and it's going to be interesting to see how she responds to increasing skepticism and

questioning. >> she kept alluding to the growth in mobile. that's been a positive story for mayer and yahoo!. >> they did talk about the stream ads. so i think part of why they purchased tumblr was to try to focus on a feed like business. when you think about what is facebook, potentially twitter so successful with the feed advertising it's a similar model for tumblr and so how do you try to get that dna to the rest of the company? look, you know, what we know with emerging ad technology is that ad technology allows ad buyers to find similar audiences that they found on yahoo! and aol and you find them for lower prices in other places. and so as a result, that puts downward price pressure on the historically seller of advertising. the question, is you know, when you have this audience can you get them to drive up engagement, for example, with mobile they

cited how much more people use the internet on their phone, right, than on the computer. >> sure. >> can you then take that inventory and allow that ad technology to go and find you buyers. and so i think what we heard out of marissa and we heard yesterday is they're setting up their products to be able to fit in bet we're the way the advertising eco system has emerged over the past 18 months and that's going to be important to drive future revenue growth. >> bethany not to belay your the castro part but she was trying to foam the runway essentially for a weak quarter and now not replacing him, is she the best person to be that intermediary between the company and advertisers? >> well, it's a new role for her and in her early tenure at yahoo! she was not known to be as friendly to advertisers as he

was. can she turn it around? it will be interesting to see. i think there's a deeper underlying question. the big deal at yahoo! always was, what is it, a media company or technology company. when she came in the idea was, now we know, it's a technology company. suddenly most of her high-profile deals have been media deals. is the yahoo! strategy any cleaner or old focused that the old yahoo! that people complained about? i don't think we've yet seen a clear articulation of what this company is. >> yeah. story just got a lot more interesting, that's for sure, after a heck of a year. up 80% in 12 months. bethany, jason, thank you for your time. jon, see you later this hour. from yahoo! to walmart. walmart adding comp tigsz to amazon fresh. al mart stores in denver a allows customers to order groceries online and pick them up in the store for no added fee. it will cost customers $5 to $7 per order for home delivery. let's bring in cnbc retail analyst of sw retail advisers. stacey, it certainly sounds like an interesting move.

we know that consumer grocery habtd habits are changing. is this smart for walmart to go up against amazon fresh here for groceries? >> it's necessary. walmart has been behind investing online in general. they've certainly ramped it up this year. so right now what they're testing is this home delivery, you know, for $5, $7 an order. i think the more interesting thing they will be testing is click and collect, which means the consumer can go online, they can do their grocery list, get to the store, and it's ready and waiting for them. so that's the real game changer. and you've seen other players already testing that including whole foods. >> stacey, what do we know about the role of grocery in online purchase overall? strategically, is this going to drive repeat purchasing? is that the idea because people need groceries x number of times per week or per month? the share of basket could increase for whichever retailer wins this area? >> i think, you know, like

everything else we're seeing it's all about evolving and moving where the customer's habits are moving. i would argue that home delivery actually potentially might hurt in the long run. we know that so many sales are impulsive when the person goes into the store. more and more drive people online and let them deliver to homes potentially hurt those impulse sales. again, i think, particularly in the grocery space, it's so competitive that it's just all about market share and it's all about catering to the customer and their future behavior. >> who has a leg up here? does you walmart have an edge over amazon because it's already dealt with groceries and fresh foods and with the consumer on that end whereas amazon really hasn't? >> well, i think the big leg up is obviously walmart's footprint. so if they can really get this right, it will be a huge win. amazon is rolling out and about

20 different cities, you know, walmart had used their stores as distribution centers. that makes a lot of sense. and more importantly, you know, they talked about with the click and collect obviously walmart has the footprint. >> thanks very much for your perspective. interesting move here from walmart. stacey and jon fortt, thank you. do you order your groceries online? >> just started fresh direct once we moved out here to the jersey area. let's get back to the markets. still trading to the downside bouncing off the lows. but lower across the board this morning. despite the action, stocks are waiting on a very important federal reserve decision 2:00 this afternoon. and rick santelli, you're talking to none other than jim grant about the fed today. how hperfect. >> yes, 31 years. founded the grant's interest rate observer. we call him the interest rate emperor down here. we want to talk to him about pricing of fixed income market, how it's changed, how the buy

vigilantes became the qe vigilantes. we're going to talk to jim and his famous bow tie in about five minutes.

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the big mover is mccormick. it beat fourth quarter by a penny but gave a weaker than expected outlook for the year. also to the downside in this space, avon and philip morris hitting 52-week lows. carl and sarah? >> all right. some of that exposure internationally perhaps to emerging markets. ben bernanke chairs his last fed meeting today and many expect he will reduce monthly bond purchases by another $10 billion. taper. the question is what will it mean for high sovereigns. let's go to rick santelli with a fed critical guest. rick? >> absolutely. and thank you, sarah. i'd like to welcome jim grant for taking the time for taking a time on a very important fed day, a very important emerging market day, very close to end of the year lunar new year for china. welcome, jim. >> thank you, rick. nice to be here. >> listen, since the beginning of year treasury yields right now are down 32 basis points, down 32 basis points.

303, 303 high yield. does this surprise you in any way, jim? >> people want treasuries when they want nothing else. i think we're at the idea about treasuries, the central idea concerning the fed is the fed insists on ciaing us from everyday low prices. they call it deflation. i submit that in a world of technological wonder that prices ought to be weakening, got to cost less to buy things because it costs less to make them. the fed resists at every turn. it wants the price level as it defines it to rise 2% a year plus or minus. so doing it replace redundant credit but finds its way into other things. mischief, do the exact dollars. we see this -- on wall street we call this mischief of bull market and we're generally all in favor of it. >> now, when it comes to the

capital issues that you're describing, you know, where does capital move? well, to some extent, capital moves predicated on how much capital costs. has the move down to historic low yields in 2012 for treasuries in a post crisis setting, has this misallocated capital? is that something you're going to have to deal with as the emerging markets rumble a little bit because there are so many liquidity transmission and funding issues? >> it strikes me, rick, that the fed in substance, if not in name, is engaged in a massive experiment price control. they don't call it that. but they fix the funds rate. they manipulate the yield curve. they threw this $2 phrase called the portfolio balance channel talk of the stock market. they are -- they have their fingers, their funds on the scale of finance to change the metaphor, we all live to a degree in kind of a valuation hall of mirrors. who knows what value is when the

fed fixes the determining interest rate at zero. so, you know, i said experiment in price control but there is no really suspense about how price control turns out. it turns out invariably badly. >> now, is it too simplistic to say that when you see the dynamics of markets in flux in a negative way, that the good sovereigns as we call them, move lower because everybody wants to buy them? is all quantitative easing to keep interest rates low just a waste of time, made balance sheets too big, exits uncertain? would this dynamic have occurred naturally in your opinion? >> no, i am all for free range interest rates and for t impersonal and disinterested forces of supply and demand. seems to me that anyone who leaves themselves or herself to be a free market or a person or a capitalist ought to be in favor of the verdict of marketplace.

we have gradual end by degree substituted the governance of, it's a command and control regime. the whole idea of social media, the great rush of technology in the 21st century is collaboration. but in the fed and the fomc we have the verdict of a dozen of 15 people not elected well intended to be sure all most of them owning the very prestigious academic credentials that would have gotten them tenure. >> listen, jim, i'm sorry we're out of time, but, you know, it's like the -- >> we're not out of the opinions, rick. >> no, never. thank you for taking the time today, sir. look forward to talking with you in the future. back to you, "squawk." >> as we mentioned earlier, shares of yahoo! struggling today. down 7% on that big miss on revenue in the fourth quarter. according to a new stu by

adifficult "american idoadobe, tumblr is the fastest growing social network in 2013. is tumblr the way forward? we'll ask an investor in tumblr in just a moment. [ intercom ] drivers, to your marks.

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welcome back to "squawk on the street." check out the largest industrial gas supplier in the americas raising its quarterly dividend by 8% to 65 cents a share and set a new $1.5 billion share buyback plan. this after the profit rose due to strong sales and acquisitions. one cautious note, the company forecast first quarter earnings below street estimates. the stock though still up 2.4%. . >> seema, thank you for that. earlier this week adobe released social media intelligence report citing tumblr as one of the fastest growing social networks. on the heels of yahoo! earnings

let's look at tumblr and key to investing in some early stage start-ups. a general partner at spark capital as well as former twitter board member and early investor. good to see you again, bijon. welcome back. >> thanks for having me. >> do you think marissa mayer is thanking her lucky stars she got in on this thing? >> yeah. it's a very special company. tumblr is not surprising to see the results from 2013. you know, i was on the board from the earliest days of the company until the time we sold it. and it's not surprising at all to see it growsing to fast. >> car is a superstar especially here in new york city where entrepreneurs want to follow his lead. how do you know if the trajectory -- we all know they're in the nice part of the upswing but how do we know how long it will last and what will result in pain if they lose relevance down the line? >> yeah, i mean, it's always a challenge. this company, tumblr particularly, is not an overnight sensation. we funded the company in 2007

when it was just david and another individual named marco. basically, you know, they've been continuing to innovate since then and, you know, building better and better experiences. so this is a company that's really been focused on the user, continue to delight the community. and so, you know, as long as they continue to do that i don't suspect there will be any down swings in the possibilities for tumblr. i mean, you know, david is still very much in charge. i saw him last week in new york city. the team is fired up and they're really happy with what they're doing. >> bijan, a lot of people don't understand how tumblr is different from any other content management platform. marissa mayer clearly betting heavily on it putting the new yahoo! tech and yahoo! food digital magazines on tumblr, talking native ads. can you shed some light on exactly what the potential here is that's different from a word press or something else? >> yeah. i mean, there are other platforms for sure that are

so-called content management platforms you can public a website. tumblr is distinct in that it kind of brings together blogging and social network. so it's a community of that where people follow each other and it all takes place within the tumblr feed which they call the dashboard and what you see inside of that dashboard of the tumblr feed is this massive consumption of content where people sign on to tumblr on their phone or website and they stay there a long, long time. so it's not the case of hitting one random word press site or one sms cite. it's a community and social network in and of itself. >> bijan, we're going to get twitter numbers on february 5. you were a board member a long time. the street still doesn't have a good handle on the metrics. that's going on the unveiled of course when they report for the first time. do you have any feel or sense as to why some days the stock trades down sharply? >> yeah, look, i don't pay attention to the daily stock movements.

you know, i know it's been up since the ipo, and all that. the day-to-day changes in the stock price doesn't really, you you know, concern me or i don't pay much attention to it. i've always been excited about and continue to remain excited about is twitter is the only place where you have this, you know, public realtime conversational platform at scale. and, you know, they've made a lot of improvements to the product over the last few years. even since the ipo, you know, you see the product getting better and better with new ad targeting products, new photo sharing capabilities, the mobile apps continue to get better. so the day-to-day stock changes is something i really don't pay attention to but i pay attention to, you know, product innovation and their uniqueness in the market. >> we'll certainly a longer term story before we let you go is net neutrality. we heard from some companies like netflix as to how fierce this battle could become down the road. where do you think we're all headed on that? >> yeah, this is really

problematic. i mean, you know, the nature -- i think we take the internet for granted. you know, the internet has always been a place where you assume as a user you pay your isp to access the internet. then you can go to any website manageable. as a venture capitalist i imagine that any start-up can build any site on the internet without any gatekeeper throttling access. what we have now is putting net neutrality at substantial risk where you can imagine independent bloggers being turned off if they don't pay comcast or verizon. life would have been slr different for youtube, amazon, netflix, countless others if the internet had a discrimination layer, which is really a violation to the principals of the internet and net neutrality and why it's important to have a net neutral internet. this is very problematic. i'm very worried about it. i've been talking to a number of people that have legislative, you know, responsibilities and

otherwise. we have to continue to educate the public. we cannot take the internet for granted. this is a very problematic issue. and you know, as consumers we really don't have much choice when it comes to internet access. in many places we have at most two service providers. in manhattan, only one. we have a situation of limited choice. isps are generating money and profits. and we can't change the nae ctu of the internet. >> please come back soon. love hearing your insight. >> thanks so much for having me. >> bijan, spark capital. 11 million slices of pizza. 3 million chicken wings and a whopping 80% increase in business. that is what domino's pizza is expecting the super bowl sunday. domino's ceo patrick doyle will breakdown the biggest day of the year for his company in just a moment. [ male announcer ] the new new york is open.

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simon hobbs is back as we count you down to the close in the uk and across continental europe. hey, simsimon. >> the losses have driven them firmly into the red. you got a slight recovery on spain and italy because they have greater exposure to emerging markets for many of the blue chips there. be aware we've had a recovery partly as a result of what the turks have done overnight. one standout today is a lot of the miners have been doing well

in the production numbers. on the plus side they've been doing well. anglo-american with record copper production. anglo-american's platinum production is up 25%. that's him elped. also had the board meeting at fiat. fiat chrysler automobiles will be come and list here at the nyse. it will be incorporated in the netherlands and for tax purposes be domiciled probably in the uk. so just be aware that he is returning to the floor of the new york stock exchange. i just want to mention an issue that may not immediately impact the markets but is very big in london. we've had now a second suicide of an american banker this week in london. somebody at jpmorgan threw themselves off the roof of jpmorgan's headquarters yesterday. that's been confirmed by the police. on sunday, more importantly, one of the senior risk managers, former risk managers at deutsche bank apparently also committed suicide. very close to the co-ceo of a

very complicated time now for deutsche bank. i want to put that on the record. finally, angela merkel today gave her state of the nation address in berlin in which she warned that germans should not trust what she described as the deceptive calm in europe at the moment. clearly she's anxious to get further european cooperation. >> simon, thank you for that. nice to have you back helping us with this european close as you do every day. let's move from europe to turkey. last night turkey central bank decided to raise interest rates in a move aimed at bolstering the struggling currency. will it calm markets across the globe? michelle caruso cabrera is live in istanbul. >> the answer to that question may not come until we know the reaction to what the federal reserve will do in the united states. but certainly in terms of an asset class, many were looking to turkey and actions here to

see whether or not the other countries where we have seen big slides, whether or not we would see calm or reversal. the countries that we talk about the most recently in this slide related to the fed taper in south africa, brazil, argentina, and indonesia. we have seen most of those currencies get hit pretty hard. and whether or not this is going to help really depends on each country and individually acting on its own in order to stem the out flow of capital. india has been aggressive about raising rates, so has pra zil, for example. south africa raised them this morning but it was a tepid mood. of course, nothing has been as aggressive as what turkey did last night depending on which interest rate you're talking about, anywhere from three to five full percentage oinpoints. or gener argentina, not even close. they're trying to fight their currency by trying to burn through the currency reserves. that is often a failing strategy. that's an economy that's been a

mess for so very long. in fact, since you traveled there, carl, back when the country went bust in what was then the sovereign default at the time i was just thinking about that, michelle, a long time ago but as somebody said the other day, argentina shas perfected the art of the slow motion train crash. >> oh, yeah, absolutely. i mean, if they can -- they've invented so many ways to destroy that economy, it's amazing they keep coming up with them. sometimes they just use old-fashioned ways like price controls and deep state intervention. you know, chavez light, basically, kristina who is running the country right now. >> what she'llmichelle, we'll t soon. >> see you later, carl. meantime, more than 100 million americans are expected to watch this sunday's super bowl. many of them will be chowing down on pizza while cheering, jeering, or, in my case,

feigning interest. strong sales for the pie makers and food makers on sunday. let's bring in patrick doyle, the president and ceo of domino's pizza. so, patrick, what can you tell us about this year's consumer demand, how it's shaping up versus, say, last year? >> consumers still clearly a little bit nervous out there. we're seeing progress. we need job growth. but, you know, overall, we're going to be very busy on sunday, as you said. it's about 80% up from our typical sunday. the team's ready to go. and i know we're going to be busy. >> it's amazing statistics that you throw out there. 11 million pizza slices on super bowl sunday. the thing is consumers have so many choices these days. the guys were talking buffalo wild wing ceo. increasingly convenient choices for food on the super bowl. how do you keep them ordering domino's? >> for us, you know, look, we get it to them quickly. they know they're going to get a great pizza.

and other thing that's really been mhappening for us, as we move to digital the ability of our customers to order any time, anywhere they want over their smartphone, over the net, that's driving them in to domino's. we're confident we're still going to do very well. >> just want to ask you about the debate at the moment right now. president obama mentioning the minimum wage again, asking businesses to raise the minimum wage. i know this affects a lot of the companies in your area. sure, the pizza delivery men get tips, but how does this impact, do you think, jobs, the economy, and business? and would you support a raise in minimum wage? >> i mean, look, we're different than most because our drivers, which is most of our employees, with tips they're making kind of $10 plus an hour, 90% of our franchisees actually start as hourly workers. so domino's will work through and manage through any of these changes. from an economic standpoint, i

worry about job growth. and ultimately what we need right now to drive the economy is job growth and i get a little bit nervous about increases in the minimum wage when you've still got a fairly tepid job growth market. >> patrick, you know, weather has been so crazy this winter. one big question from us is whether or not that helps because people order in or whether it hurts because delivery has got to be a big challenge. which is it? >> yeah, in the very short term, bad weather will help us. but i tell you we had some closed stores last might in atlanta. but for us over the course of a quarter, weather doesn't wind up being a really big deal one way or the other. we've tracked that over time. but in one night, one day, particularly bad weather generally people stay home, that's a little bit of a net positive but it doesn't drive a quarter one way or the other. >> are you feeling the competition, patrick, from other big chains opening pizza stores?

chipotle is opening pizza in the rise of fast casual movement? >> we've been growing faster than anybody in the category, taking share. so you look at great new competitors. they bring new ideas into the category. we're going to look at those. we're going to learn from them. but overall, we've been doing very, very well the last few years. >> all right. good luck on the big day. super bowl sunday. patrick doyle, thanks for joining us here on "squawk on the street." 80% more than your average sunday, business at domino's. >> unbelievable. >> what he's done is amazing. when we come back, starting today investing in 3d printing is now easier than ever. we're going the tell you how to add a third dimension to your portfolio when "squawk on the street" comes back. ♪

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for a retirement that could last 30 years or more. so maybe we need to approach things differently, if we want to be ready for a longer retirement. ♪ coming up at the top of the hour, central banks taking center stage today. we assembled the experts live with all you need to know on the markets globally. a painful day for yahoo! investors but ste we still have a trader who loves it and a fund manager who is making a big bet on it. and what will it take to win the lombardi trophy on sunday? we ask a former coach who already has a super bowl ring. it's all straight ahead on the "half" top of the hour. >> you know who else has a super bowl ring? peyton manning but that's a

different story, scott. >> maybe he'll have another one. >> that's right. new time, new 3d printing etf is launching today. 3d print willing focus around 30 to 40 companies who are pure play in that space. senior portfolio manager for 3d print fund advisers and chairman of media bistro. good to have you back. welcome. >> it's a mutual fund, not an etf. >> okay. we always think of you as a media guy. >> okay. >> what makes you interested in this space? >> well, it's interesting. about every -- seems every 20 years or so a paradigm shift comes along. for the natdly i was involved in the early days of the internet and about two years ago learned about the 3d printing and started to look into it and saw many of the same trappings of the launching of the internet, the commercial internet in the early 1990 sglz whs. >> what takes it from being a novelty to a large-scale device that is use bid bd by big compa

around the world? >> 3d printing is an eco system. when people think of it and down play it they're thinking of it as printers, just printer business. ultimately everyone gets a printer and it's all over. but the ramifications and the eco system of 3d printing is immense. not only is it being used in manufacturing -- revolutionizing manufacturing and all kinds of business, but it's going to be very big for the prosumer and consumer, like the early days of the internet, they will be able to start a business on the side and the next thing you know it's explosive and they're going public. >> medical as well -- >> medical is huge. medical and aerospace right now, i think, are probably the most exciting developments that we're seeing. >> so what do we need to know about the companies in the new mutual fund? >> well, rel tufrelatively spea it's not a universe of pure

plays. 100% of their business from 3d. there's approximately 15 to 20 companies that are pure plays. but there are another 20 to 30 companies around the world who are actually big household names that are making very heavy investments in 3d printing. for example, general electric will be in the fund. a lot of people don't realize it but general electric has made several acquisitions of 3d printing companies and i believe they set it within three years or four years 40% of every one of their jet engine parts will be made by 3d printing. you don't have to have extra inventory. >> we all know some of these names, the pure plays especially, have done really well and we know that when the things are bad they can be bad for a short period of time. they're volatile. the minimum investment here is 2500 bucks. are you getting people in who might go in over their heads? >> the fund launched today. so i think it's -- for those who are thinking that they want to invest in 3d printing, this is a pretty conservative way to do it

because, one, you're spreading the risk. we are studying this situation and all the companies and seeing them coming along. and it's a good way to put your foot in the water. if you like the way things are going, invest more. >> ticker ttix? >> correct. >> alan joining us here. >> keep an eye on those 3d printing stocks. consumer companies like energizer, tupperware, also moving lower on earnings today. the earnings squad is going to be here to tell you everything you need to know in just a moment. when does your work end? does it end after you've expanded your business? after your company's gone public? and the capital's been invested? or when your company's bought another? is it over after you've given back?

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welcome to the earnings squad. i'm melissa lee. joining me today is herb greenberg and john najarian. we've got a lot to talk about. let's start off here with energizer, tupperware. both reporting before the bell. but the energizer story, this is an interesting one. people know they're batteries as well as personal care product, razors like schick. >> it's very interesting. you look at this company and the stock. the stock was going straight up. when you look at the trend and you say, why is the stock going straight up when the revenue growth and organic growth has been going straight down? i don't know quite why but this quarter it's certainly all came together. personal products was really hit. this is like procter & gamble and this is where you get back to the question of beards and facial hair and that's been

having an impact, guys like you, on their business. and i got to tell -- >> we we pulled up footage because this is a trend in personal care in case you've been living under a rock. guys wear stumble, there's the movember growing mustaches and that's been taking a hit on razors. there's more competition which is what the ceo cited heightened promotional activity. >> they thought this, quote, unquote, turbulent promotional activity would end and it's not the case because they've got this remarkable level of competition that is only increasing. >> from october to november or so, this is at least a 7% rise here. >> you would not have expected this. go back further you see the stock going up. again, when you look at performance, not quite what we want it to be. >> the story could be told in the margins down 45.9% from 47% despite a drop in the input cost. that's how much the pressure is being seen by energizer. tupperware, we are watching

emerging markets and what's going on there and in turkey, this is the one company, herb, that is really exposed to turkey. >> let me just tell you one thing. if you look at the way the company missed and everything was going great guns, this is a multi -- this is a direct selling company. distanced itself from multi-level marketing companies. you could argue because it's distanced itself it's having these problems. if you look at emerging market, emerging markets is 63% of sales. china is an important part of the business. it was up 20% this year in china. they talk about turkey, say turkey is okay. they said turkey was okay. talked about the person who runs turkey. the woman who runs the business in turkey. on china, they say that the chinese business, you know, there have been problems with multilevel marketers in china. they say, you know what, we don't have a problem there. >> that does it for this squad this morning. join the conversation. tweet us #earningsquad. meantime, up next on "squawk on the street," if you didn't know movie theaters owners have long complained about the length of movie trailers, now they're

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theater owners have complained about the long length of movie trailers. now they're doing something about it. jane wells is live in los angeles with the little preview of her own. good morning, jane. >> carl, first, a preview of my story which has been approved for all audiences. >> in a world where movie trailers last longer than the movie -- >> you're going to be here a while. >> -- longer than a kardashian marriage -- >> frankly, this needs to happen. >> -- making moviegoers angrier than richard sherman. >> don't you ever talk about me. >> it's not easy being mean. >> and the dealing more than a beyonce grammy performance -- >> awesome. >> -- one industry is fighting back. >> now for the story. theaters say movie trailers have gotten so long they tell the

whole movie they don't drive ticket sales and you see the same trail for a year. the national association of theater owners issued guidelines to limit trailers to two minutes. distributors get two xwemp shuns a year to go to three minutes and trailers cannot run for more than five months before the release date. guidelines take effect in october but they are voluntary so wait for a sequel. that's it. see, karm, tcarl, the trailer w longer than the story. >> we work for a company with the studio and they say it's building buzz. you've got to do that earlier than five months. look at this. rated "j" for jane wells. >> i don't know if i'm appropriate though. >>ed it dead for some strong reporting and language throughout. especially when you're off camera. >> under 17 requires -- exactly. i totally agree. kids will turn away. i got to tell you. some theater owners have started charging distributors to run the trailers because they're taking up so much time and they don't think they drive ticket sales

because you see the same trailer over and over. i know the whole movie by the end of the trailer. okay, don't need to go. >> i like previews. >> jane, thanks so much. jane wells with a good hollywood story today. by the way, dow has carved its losses almost in half. the low is down 174. currently down 86. >> watching yahoo! shares getting beaten up after another disappointing revenue growth story out of marissa mayer. there you see, still down across the board for the nasdaq, s&p. >> two years for yahoo!. scott wapner? >> carl, we're going to be talking about that. get the opinion of what one of our traders thinks you should do with that stock and an investor who thinks this is a good buying opportunity. you know, carl, i've had a lot of calls this morning from money managers saying that this is a buying opportunity across the board in the stock market. if you look back at history at the currency things, if you would have bought the u.s. market 6 to 12 months down the road in most iskas it was higher than where it was before these things started. >> only question -- >> currency thing. >> currency.