but that's still not unreasonable with, you know, 3% interest rates. >> yesterday. yesterday, before these gains the p/e for facebook was 127 versus 23 for boeing. forward p/e, again, this is before the gains 47 -- >> you didn't get to say it but fidelity is a much bigger factor in everything than that stupid vanguard, you wanted to mention that, too. >> thank you. that does it for us. right now it's time for "squawk on the street." a look at the new york stock exchange as owners of the super bowl-bound broncos and seahawks ring the bell this morning. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer at the new york stock exchange. faber is on assignment. futures look stable after the post-fed meeting drubbing. facebook far and away the most impressive report, surging in the premarket. ten-year yield as gdp was in

line for q-2 and the second half of last year was the strongest since 2003 and europe is trading much better than the nikkei would have suggested. our roadmap begins with the market. stocks are set to open in the green this morning after the major indices fell more than 1% in trading yesterday. the good gdp number helping sentiment after the economy grew as we said by 3.2%. speaking of green, shares of facebook are soaring after sales and profit topped estimates thanks to a major increase in mobile ads. profit for the year totaled $1.5 billion compared to $53 million in 2012 and what a difference two years makes. google is selling motorola to lenovo for just under $3 billion. just a couple years after buying the company for about $12.5 billion. but we'll begin with the markets. futures are pointing to a higher open after yesterday's selloff on the gdp reports and claims and the economy is growing 3.2% in the last quarter shrugging off the effects of the government shutdown and the debt standoff. claims are up more than expected

increasing by 19,000 to 348,000. just broadly, jim, this is one of those mornings like the game shows with the dollar bills that are flying around, i mean, the earnings -- you take what you can get. >> yeah. i'm going to say something just to give you the -- to typify the morning, okay? facebook is very inexpensive. >> even with some of these price target increases that we're seeing? >> this stock sells at just a little bit more than a market mobile that i would expect on 2016 numbers. you know, i'm on the call. we all come home. you come home after you do whatever you're doing and i say, okay, i got to listen to the facebook call and i figure it will take me, like, 20 minutes because i'm a pretty good -- no. one hour. i'm going over everything and zuckerberg he's thinking about these, he's firing on cylinders that are just, like, i wish i could keep up with his thinking. this is a -- this is a juggernaut. i have never seen a company with greater operating leverage in my

career! >> let's back up on this. 31 cents beats by 4 cents. revenue is better than expected up 63%. ad revenue up 76%. >> unbelievable! >> and now mobile, jim, you know, it's funny we're old enough to remember when mobile was zero at this company and it's now more than half of its revenue. >> when the company went public we decided they were idiots and didn't know mobile and they couldn't monetize it. the shoppers like it. the marketers want to be in it and the consumer packaged goods want to be in it, well orchestrated beautiful call. 6 billion likes on an average daily. i mean, i could highlight. 750 million every day. this is radio, tv, and newspapers. >> it's funny you mention that. cheryl sandburg on the call talking about an ad from coca-cola one of their polar bear ads in which they found the roi, the return on investment, was higher than it would have been -- and was on television. >> right. and they're talking about new businesses being 8-1 investment.

you give them a dollar and you get eight times that. one of the best lines on this thing was this -- it was inis gram, how much people love instagram. remember when people said they were leaving facebook and people were getting tired of it which is obviously not since you have 750 million people want the darn thing every day, but instagram's doing great. and their monetizing instagram. this was my favorite line on the whole thing was people love our ads. they -- can you imagine? i mean, can you imagine anyone in the business saying maybe i like that last ad for coleman and duracell, people love their ads! >> speaking of that and different platforms like instagram, mark zuckerberg's on the cover of "business week" this week, the headline is "facebook hits puberty." and he's asked about a bunch of different issues. here's one quote we just think that there are all these different ways that people want to share and that compressing them into a single blue app is not the right format of the

future. in other words, "business week" ads the future of facebook may not rest entirely on facebook itself. >> well, i think that they have so much data, so much mining, and we'll talk about starbucks being in a similar situation. facebook can be anything it wants because it has 1.23 billion people and, by the way, remember when we used to think maybe they weren't active. i mean, the numbers here, the number of people, 63% year over year. you know, one of the things when you're running a business your biggest fear is that your expenses, your hiring, your physical plant, will overwhelm your revenues. the revenues are so overwhelming the expenses and they're hiring like mad. they can be what they want. >> the market cap, jim, in the premarket is up $26 billion. >> well, i hope so. >> that's three-quarter of twitter's entire market cap. so, when is it getting expensive and these price targets now 70 bucks at jani's, 67 bucks. >> my friend jordan rohan

selling 30 times 2016 earnings and the fastest growing major cap company, why shouldn't it be selling at 40 or 45 times that number? i can't really pin down -- now, i can't pin down what it could be worth. because i'm going personal messaging, they haven't monetized that yet. the average return for the news feed is so amazing. one of the reasons why a stock goes up three and then four and then six and then nine over as it goes is people going down the lines and they are realizing they haven't monetized this yet, they haven't monetized that yet. i read this great biography david sarnoff he invented tv and he didn't get his due, rca, but there was this moment where he was, like, showing people what a tv could do and they are, what, are you kidding me? i mean, facebook when they first, you know, came out mobile it was, like, let me show you what we can do. are you kidding me? it's better on mobile than anything. twitter is, too. >> yeah. >> but this is an awesome quarter. >> we're going to talk a lot

more about it today, of course. on to the deal of the morning google if you haven't heard by now is selling its motorola mobility unit to lenovo for $2.9 billion and two years after they bought the unit the fourth largest ever acquisition by a china-based company. they originally bought it for $12.4 billion and as we joked this morning lenovo bought ibm's low-end server business so if you have anything you're not using anymore, maybe they'll take it off your hands. >> your best tweet, maybe some old sweaters. people say why google? obviously knuckleheads. first of all they did get 15,000 patents. second they haven't off-loaded the motorola home business for $2.4 billion and third, one of the people love they love gross margins, gross margins and that's the most important number, they go up, from 37 to 42 which is why this stock is soaring. you get rid of a -- of an abscess, you're worth more. >> they, of course, report

tonight. >> yes. >> we know the nest deal just reported the other day. and coincidentally you had honeywell's dave cody on the show. >> mr. thermostat. >> last night who actually had some thoughts on how much google spent on nest. take a listen. >> i want to know whether you think given the technology of your thermostats whether you had a laugh, a chuckle, when google bought nest when it seems like that your -- that you can speak right to your climate control. >> my comment was that that multiple they can have honeywell. i'll follow the whole thing. >> maybe the line of the show last night. >> i don't know how much google will go up if they bought honeywell, but i got to tell you, they would blow through the 1,600 price target of mine. this is remarkable. nest is a cool product from frank blake on home depot, it's the best seller they have. but the honeywell thermostats you can say, hey, man, it's too hot in here and it lowers the thing. you get to wave at the nest fire, you know, the smoke

detectors. >> yes. >> but google can do no wrong right now. google and facebook. these are social mobile cloud. we are at an inflection point where everyone's trying to figure out, what do i do? it's kind of the inflection point. i remember when intell came up with the 286 there were people who were saying, well, you know what, it's so much more powerful than an ibm, you're never going to be able to charge $1 million for a mainframe, billions of dollars wiped out from ibm and noyce who is a brilliant man who founded intel, see this, we're not going to charge a million for it we'll charge a couple hundred bucks and it's more powerful than the mainframe and that was the end. >> you say they can do no wrong, but they are in some retreat here, are they not, as part of this deal? is this not a lesson learned in hardware? >> they didn't like hardware. they got out of hardware. they got some patents. look, let's go back to what cody said, there's an absurdity here, all right? which is that they overpay for things but they have a lot of capital and let's talk about

who's not overpaying for things and what stagnation that stock has. apple. see, apple is keeping its cash flow. they make a lot of small acquisitions, they really kind of pride themselves in not making big acquisitions and google makes big acquisitions and people like that and this is because people like growth. i continue to be if apple were to go out right now and pay, i don't know, 400 for netflix people would say, now they got mobile, they've got social, one of the things that people -- apple's going to hate that i said that. look, apple, i'm sorry, i like apple. my charitable trust owns it. but google is willing to experiment and buy google glass i've been recommending a little stock called himax because they own a percentage of that. but i come back and say the companies that are in moshl to take over social, mobile and cloud. and mark bennieoff taught me this from salesforce.com it's the land grab, the 49ers who are not in the super bowl but they are certainly the right orientation, the original gold

min miners. >> google does not have a great record of beating on earnings, actual consensus estimate. >> my charitable trust owns google and you have to be nervous going into google's quarter because we remember it was only, what, five quarters ago they released at midday and it was supposed to be at the end of the day and i was at a steel factory and i thought i liked steel business better than social, mobile, and cloud, but they recovered. there's a lot on the yahoo! call who says we're getting good resumes, too! this has to be the smartest people in the world not getting jobs at google and facebook. i know the number six guy at facebook, you got to be top of your class. >> sure. >> and by the way, it's not at stanford, it's top of their class everywhere. like twitter. if they can get someone with a 4.4 from michigan state they'll jump the queue and take him over a 4.2 at stanford. they are brainiacs.

they are brainiacs. >> you're right. you're absolutely right. kind of like you. >> no. i would never get a job -- i got a job at goldman, that's where people went, i'll go to goldman. i'll take paper and push it over here. >> sounds like "wolf of wall street." when we come back a world of earnings from exxon to under armour. and faber's live interview with time warner cable's new ceo robert marcus. we'll hear about charter's efforts to buy his company. take one more look at futures. we've not even begun to scratch the surface of 3m, u.p.s. viacom, whirlpool, you name it. >> whirlpool was fabulous. >> a lot more "squawk on the street" from the nyse in a moment. ♪ buy a trombone chair

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prepare to be amazed. [ male announcer ] don't wait. call today to request your free decision guide and find the aarp medicare supplement plan to go the distance with you. go long. several big earnings to get through this morning, first up exxonmobil a little bit shy of estimates. you were just looking for some production targets. >> it wasn't so good. this is a company that the last quarter really had good production growth and i'm looking for the production growth. there's a couple of -- there's two big companies in the dow that spiked because -- not because of earnings but because of a buyer. and that's warren buffett. a lot of people bought exxon 1998 and 1999 and they said,

hold it, warren buffett must know. that's not the way he does it. they looks for long-term value and they obviously believe it but the production decreased 1.8% from the fourth quarter of 2012. that's not what you are looking for. let's put it this way, we have all these growth companies in the panoply and companies that pay good dividends they don't pay that good dividends and they don't have that much growth, it's got nothing cooking. >> does buffett with exxon and ibm, does it make you scratch your head or not? >> he's a big believer in buybacks and the buyback in exxon has been an amazing buyback in many years. i used to regard it as a bank, someone comes in here every day. and that continues. but he wants different things from the market than many of us. i want visa growth, i want google growth. i don't want exxon stability. >> and one company that had earnings is underrmer, 59 cents

beat by six cents this is a new high up 9% in the premarket. big new contracts at the likes of notre dame. >> i wanted to talk about where we should go. i wanted to mention on underarmor, kevin plank the ceo was on "mad money" and i talk about this in "get rich carefully" this is a technology company that happens to be in the apparel business. they're offering technology, you know, what keaeps you warm in te cold and you don't sweat. kevin cline said he is the sweatiest man and that's driving him ever since. he creates this company that's $10 billion. he's taking on nike and right now you could argue he's got the momentum and nike, my charitable trust owns it, good company. >> time warner cable beats by nine cents. we'll talk to rob marcus. faber's got him in the 11:00 a.m. hour of this program. they did lose 217,000 video

subs. other companies, our own parent, managed to get some of those players back. >> yeah. this industry is in flux. but, look, we work for comcast, but, you know, comcast -- if i didn't work for comcast, i would have spent a lot more time talking about comcast because it was so good and people say, cramer, you are trying to curry favor in philadelphia. if i want to do that i will say that chip kelly could be in the super bowl next year, that's how you curry favor with philadelphia. >> whirlpool is looking to curry favor with best buy, beats by six cents and north american revenue up nine. they moved to some higher-margin products, up, and they see five to seven in north america this year, jim. >> they are taking the other side of all of this, we hear about the housing business. my favorite line in the whirlpool release was latin america. they got a big business in latin america, and everyone thought they should close, and fourth quarter sales $1.4 billion compared to $1.3 billion and 8% increase, i thought that latin

america -- i thought it was disappearing. i don't know. maybe it's disappearing but they got a lot of clean clothes. a spin cycle down there to beat the band. >> two names that may not be moving big in the premarket visa beats by four cents and payment volume up 11 and 3m stayed and boring as it is meets at 162, organic local currency up 34. >> i know the stock doesn't have the momentum, it's 3m but it has a huge asian business and you compare that with corning which reported the other day and 3m is doing so much in safety and not just what i regard as being their glass business so to speak. 3m is doing a lot of stuff organic products once again really taking -- stealing the show. visa last quarter people didn't like. and visa's a very competitive company. they put up fantastic numbers. unlike apple they were buying back stock hand over fist at a lower price. this is, remember, secular owther to plastic, i like visa at 225 it's cheap.

>> and being economic bellwether both affirming for 2014 alternative. >> i'm putting that as one of my "as" in the dow i've got ten "as," only one "d" which is ibm. >> interesting. >> yeah. when we come back, cramer's "mad dash" as we count down to the opening bell. also ahead -- >> jerry, once again everyone's doritos have mysteriously disappeared from the break room. now, i realize this is a workplace and i don't want to sound like i'm accusing you. >> how dare you. that hurts, steve! right here. >> doritos ads vying for airtime during the super bowl and that's not all, john elway speaking up about the super bowl and the denver broncos making his way on to the floor here at the new york stock exchange. paul allen is here. woody johnson, john tisch. we're going to talk to as many of them as we can as some of the players from this weekend's big game ring the opening bell in just a few moments. take a look at futures. we look to open up triple digits.

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♪ i'm going to pop some tags only got $20 in my pocket ♪ if you like football, today is the day to come down to the exchange, john tisch, all the big players. >> paul allen. >> paul allen's here. i would say duncan neederower has a broncos jersey. >> one half should be seahawks.

i don't like him coming out like that. >> we're going to hopefully talk to a bunch of the players in a little bit. your "mad dash" you are watching starbucks in this move out of schultz. >> when the news came out that he was stepping aside, far from it this is a $53 billion company that is a mobile payment solution and i think this is where he's going along with their digital king, identify am thinking that starbucks may have a secret weapon, mobile flat form that could be worth the same price as the company itself and schultz sees the opportunity as too big. they've got an internal paypal, they've got a play on the way mobile payments are done that i think is better than anything i see from any company right now, and schultz wants to take that opportunity. that's my take on why that stock is not going down even though he's no longer going to be running the place day to day. >> yeah, day to day is going to fall to the cfo. >> very good. >> you don't have any reservations about that. >> no. he's a hitter. he's a hitter. >> there's a look at john elway,

of course, the executive vice president of football operations for the ver broncos but, of course, better known as the quarterback that led the team to the super bowl. >> your team. >> my team. i'm from denver. elway is, of course, a hero where i come from. >> everybody's hero. >> we'll talk to him hopefully about the game, television ratings, the degree to which tickets have or have not been selling, jim, here in new york. whether weather is a factor for peyton manning. the sherman story line which some argue has now almost taken on an outsized significance. >> yeah, it's a shame because in the end he's got blanket coverage which is a terrific charity and he spends a lot of time in compton which i've been to when i covered homicide and he's not from an easy place. >> we're not sure if paul allen will come to the mike but if he does, you can bet there will be a microsoft question. the search for a successor to balmer is getting close. >> paul's quiet.

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you're watching cnbc "squawk on the street" live from the financial capital of the world. the opening bell going to be rung by paul allen, woody johnson, john elway in just a few moments. we'll talk to john ellis from the broncos and jonathan tisch up there as well. and the futures are stable but we still have to mention where emerging markets stand today. people want to know what's blowing up if anything. >> absolutely. i want to put it in context. turkey's obviously being roiled. we know argentina is in trouble and we worry about brazil and china another downtick last night. keep those in mind because those are the secret worry but sometimes the earnings are so overwhelmingly on a particular day and today is the biggest earnings day that it's almost impossible mentally to say i want to fraction that by turkey and take off 0.2 percent for argentina. it's not working because the bottoms up trumps top down some

days. like we haven't mentioned the fed yet because interest rates >> doing anything. i can see warning the fed but why not talk about the companies. >> do you have any fears that there's some sort of breakdown in global policy coordination? >> well, look, these are all these currencies that are free floating. this not like the euro where you can have bernanke calling to a central banker and say, listen, we got your backstop. you can't. you can't backstop every one of these countries. there was someone on this morning who was very sanguine about emerging markets, don't worry, they'll come back. no, stay away, okay? because what happens in emerging markets you are saying to yourself, this is better than owning bristol-myers, better than owning lily. no. our companies are transparent. turkey, you're buying a bad government. you're buying a bad currency. you're buying a slow growth. you're buying a currency outage. what's to love? >> there's a look at the red at the top of your screen. a lot of green. as we saw a lot of red this time yesterday. down at the big board countdown

to the super bowl executives of both the broncos and the seahawks along with super bowl committee hosts. we'll talk to broncos president joe ellis in just a few minutes and over at the nasdaq uber technologies connect drivers with its app and celebrating its association with the nfl players association one of the names people talk about going public one day. >> and new chatter and maybe there's some -- people aren't liking -- some people lawsuits whatever. i don't know. this is not the day to focus on that. i think it's the day to focus on the social, mobile, and cloud and publicly traded companies. facebook only up seven. that sounds silly but it's only up seven. >> the premarket obviously the action was 18%, 19%. >> and no one likes openings. because people say, do you know what, i went home last night and it was really ugly. i swore to myself that if i got back to even remotely i'm going to sell so those people and also scalpers who had the good fortune to buy the last 15 minutes they sell. you have to let things settle down but if you care about the

fundamentals which i do think ultimately will out there's a lot more good news than bad news. >> one of the few laggards adt, is a 17% cut. >> this is just a disaster. term was 14.2% they're losing a lot of customers. this is a company that bought out an activist at a very high price and then immediately delivers this number. it's the type of thing my friend herb greenberg talking to cnbc this is the real outage, activists make a lot of noise and they left us the rest of us hanging. s.e.c. wake up, herb greenberg is right, this is just ridiculous. >> we haven't gotten yet to viacom. you said you liked the quarter. >> they buy back stock the way that people feel that apple should buy back stock. take a look at that business. is very strong and the numbers are fantastic. >> autonation did beat, jim, by seven cents. mike jackson was on "squawk box" this morning again talking about the inventory saying it's tough,

how are about the ig three justifying holding these many cars? >> you go listen to phil lebeau's unbelievable interviews and they are all saying the same thing which is basically you're supposed to build inventory right here. i think phil's stuff is awesome. i'm not as worried about the autos as a lot of other people. jackson's got this rap, but i also got to tell you that the companies themselves are not as stupid as they used to be. do you know what i mean? mulally is really smart, the people running gm are real smart. we had times where i would not trust the auto executives. i trust them more than i -- look, mike's got good numbers. he comes on, squawk, he's terrific and they are saying don't fret and i am agreeing with them not to fret. i'm going to agree with the manufacturers. >> you see, again, there's elway making his way through some of the posts. it's usually -- whenever sports figures, jim, come through the trading floor -- >> yeah. >> -- it comes alive. there's just no getting around that. >> what does he look like? he looks like he's younger than

when he retired. he's annoying. >> there's a great piece in "the washington post" this morning about how jack del rio, the defensive coordinator, basically held the team together while john fox was getting emergency heart surgery. they went 3-1 while your head coach is gone. >> coach del rio, old friend of mine, a very sensational guy, came from a tough family and raised his brothers a usc grad and can't say enough great stuff about jack del rio other than the fact that will he really stay a defensive coach when -- >> wow. >> i mean, now, yes. i just think that if, you know, he had that ran with the jags and it -- he's better than the jags were. the jags were just another guy. >> yeah. a lot of teams would be lucky to have him. pulte making a stand, up almost 7%. good quarter. we know what d.r. horton said earlier in the week. >> some analyst will probably downgrade it. the home builders are making a fortune, all right? they are making a fortune. the weather 77% of the country cover abnormal cold, you know, craziness in terms of cold.

the ceo of a major company i follow had to sleep in his office in atlanta. sleep in his office because you couldn't get anywhere. now, you going to tell me people will be buying. we'll see data that's distorted. in the meantime pulte and horton are saying the right things. interest rates have come all the way back down and i see a lot of negative chatter about housing, i don't buy into it. i like the home builders themselves. i wonder if home depot will have a better-than-expected quarter and the stock is horrendous. >> not pointing out what the rates have done it will take you back to the levels where the ten year started to pop. >> the bears will say, you don't know anything about housing. okay, 99. i read the releases. i listen to conference calls. they're positive. >> what concerns you, then, at this point? you said yesterday we could be on the precipice of a 6% decline. >> china concerns me because you -- there's a lot of companies that issued outlooks for china. let's take dave cody last night ceo of honeywell. dow's down 5% from the top.

down five. but you see the ceo, and listen, things are slightly better in the economy. china you had double digit gains and thinks it's going to be really good. but china is, you take a look at deagio and you look at him and i like brown forman much better but the chinese have cracked down on high-end liquor. i mean, wow. well, maybe they're going to crack down on shampoo or something. obviously one is not excessive and one is. i am just saying if you are on the wrong side of a chinese trade you're going down and 3m has given up a little bit of the ghost and that's an asian play. it is china i'm worried about. it is china. spain good numbers. and sandanter may have missed but the stock is up. i'm not worried about italy or the old days of europe. i can't fret that much about argentina, but i'm worried about brazil and china. >> the earnings flow will continue. amazon and google, what do you say to people who want to get in front of those numbers? >> look, i like both companies. i don't want people to trade them. you either like google and think it's a great company like i do

and you don't fret about it. amazon is a cult stock. tesla, amazon, solar city, twitter cannot be valued the four walls of the canvas like any other stock. the question is are they rothkos, not rembrandts and rothko certainly was worth a lot more than the old dutch guy. >> all right. with that, s&p's right around break even for the break and let's get to bob pisani on the floor to see what's moving. >> i spoke briefly with paul allen as he was coming by and no surprise to who he thinks will win this game and he said he's looking forward to a very good game. let's talk about earnings and what's going on. a better tone to the market. we're almost halfway through earnings season, 45% this morning. today is the biggest day of the whole earnings season, about 10% of the s&p 500's reporting. so far 45% reporting, earnings are up 7.7%, revenues are up 3.5%, those are good numbers. this is not a disappointing earnings season. what does move things, of course, is guidance. so, let's take a look here,

under armour, great beat, great 2014 guidance, you see the stock trading up. and sherwin-williams their guidance below estimates and on the down side. citrix is a big loser 2014 guidance was disappointing, i saw a whole bunch of downgrades specifically at citi and bear downgraded them, stevens and jnp downgraded them as well. whirlpool not that bad. light on earnings. but 2014 guidance was in the midrange of the estimates and i think that's enough to please a lot of people. that's going to be a winner today. as for exxon, the endlessly analyzed stock, oil and gas production looked a little bit down. refining market a little bit better. higher oil prices that got them the margins are being sqeetzed because of the higher -- that money's not coming from the operating cash flow, they'll have to make decisions, sell assets or borrow to keep that going. everybody wants exxon to break up but it's not going to happen.

all of the other major companies have been broken up or started, hess, conoco, i think murphy as well but exxon seems to be happy just staying together as one of the big multinationals. finally, what happens when the s&p is down on a month? a lot of people have been wondering about that and according to a couple of people, 21 january since 1960s in which the stocks have traded lower. in 12 of those 21 januarys, the market was higher in the next 11 months, so don't think just because january's down the next 11 months mean that we're going to end on the downside. i'll talk more about that at 11:30. guys, back to you. >> all right, bob, thank you for that. bob pisani. let's get to the bond pits and check in with rick santelli at the cme. hey, rick. >> good morning, carl, how you doing? everybody, of course, likes to watch how markets respond after a fed meeting and especially after a fed meeting no matter how telegraphed it is. telegraphing isn't necessarily the issue, you know, we have sportscasters and then we have games on the field. the game on the field's where i'm standing. now, interest rates moved up a bit on a better-than- -- well, i

don't necessarily think better-than-expected gdp, but a solid gdp report nonetheless, many that i talked to think there's a lot of pull-forward so, of course, it will just make eventually in several months when we get our first look at the current quarter that much more important. now, as you look at a two-day you can see it's a little different story. rates up today, but still not overtaking some of the areas on the chart from before the fed statement and announcement. opened it up to november 1st, you can clearly see we're still toying with levels we haven't seen since mid to third week of november. switch gears a bit, let's look at the euro currency, whether you look at a one-day or a two-day or year to date what jumps out at you is the emerging market issues of the day are taking a bit more of a toll on the euro currency along with the notion that the treasury continues to try to normalize the interest rate markets. as a matter of fact as i look up at foreign exchange today, it's the euro and the pound that are really under the biggest pressure. the only two currencies up right

now against the greenback are the peso and the aussie dollar. let's look at the carry trade surrogate. let's look at the dollar/yen and the euro/yen and even though they are up, i put two-day charts so we can continue to see under the notion of yesterday's big day how the aftermath continues to be some pressure in those currency cross trades. carl, back to you. >> all right, rick, thanks. we'll see you in a little bit. when we return the countdown to super bowl xlviii, the denver broncos looking to bring the vings lombardi trophy back to denver. joe ellis will join us on post nine. and simon hobs on a very large ship this morning ahead of sunday's big game. hey, simon. >> reporter: i'll show you the hottest ticket in manhattan this weekend. staying at the build light hotel, it involves this the latest ship from norwegian. they've also hired the world war ii aircraft carrier "the intrepid" and the west side

hawaii the food fight is run d.m.c. and the imagine dragons will be playing. the hottest ticket on cnbc after this break. ♪ [ male announcer ] when seconds count, the experience of adt matters. the alarm initially went off at 12:06. after a few seconds, adt called me, and the guys were caught by 12:29. adt called, and she said, "mrs. white,

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♪ fresh from the opening bell three days away from the super bowl, super bowl xlviii, let's welcome denver broncos president joe ellis. good to have on you on the show. >> thank you for having me on. this is fun. >> carl is from colorado, he should care, why should i care so much, what about this game makes me root for the denver broncos? why is it so national? >> well, first of all, you got the two best teams arguably, two number one seeds first time in a while showing up. each team with strong talent on both sides of the ball. and we like to think one of the game's marquee if not the

marquee player, peyton manning, coming back to the house where his brother plays. it was flip-flopped a couple years ago when eli went to indianapolis. very exciting week. terrific for us in new york and new jersey and getting closer to game day. we're really excited. >> i went to the super bowl last year, who wants a warm -- you got to have a warmer clime. this week in new orleans it will be much colder i believe. >> i think it's good the game isn't down there. >> all that chatter? what was the point? >> i don't think it did at all. we've had a terrific week here. if you look at the weather report, it's going to get warmer and we're going to believe in that. and football is meant to be played in the elements and i know all our players and coaches are real excited about it. they haven't thought about the weather for one minute so -- >> jim and i were just talking about what happened midseason when your head coach john fox had emergency heart surgery. we have a lot of managers and executives who watch the show. organizationally how did the team hold it together, go 3-1 through that period? might have thrown a lesser team, don't you think? >> it might have, but when you

have good, strong, steady, stable leadership on the top on the football side, john elway took control of the situation. we had a guy on staff that had had several years of experience as a head coach and we let him take over the reins briefly and so jack del rio did a good job there and then foxy stayed in touch. i think everybody thought he was on his death bed. far from it. he comes out of surgery and he goes i'll be ready next week. that was kind of his attitude. we had to hold him back make sure he was ready. and, you know, the team really never missed a beat. we missed -- we lost one game where we had a big lead and squandered it in new england, but really a good -- the stretch was fine and here we are today. >> do your two teams actually like each other? i mention this only because it's very clear that san francisco and seattle they simply don't like each other. is there mutual respect? and it's okay, by the way, because i had the boeing ceo on and he said i it a airbus, basically. you can tell me, we don't like richard sherman, we don't like the big mouth. >> i'm not going to tell you that.

they're a well respected team, well coached, pete carroll, and john fox know each other. we don't play them that much, they switched divisions they used to be in the afc west years ago. but now, you know, we don't see them that much, occasionally in the preseason we might play them, but, you know, they've had a great year, number one defense in the league and they'll be going up against the number one offense. and the other units will do their jobs as well. it will be fun. it will be a good game. >> after watching niners slark seahawks a lot written to the degree that the seahawks and broncos have been able to avoid penalties. how rough-and-tumble do you think the game is going to be? >> it will be at high speed. i heard one of the players from our squad say the play-offs are a different tempo. and they'll be a lot of adrenaline coming out of the tunnel. but the game will settle down. teams are -- they've gotten to where they are for a reason and so the game will be well played just like the last several have been. >> you're a business man. we get a sense overall of

malaise, you're from a political family, so that's not -- when you look at what's going on with the super bowl that maybe we're too goom mgloomy in new york? >> i lived here and worked here for nine years with the nfl and i thought it was, you know, one of the most electrifying places to live and work second best city in america. behind denver. but, you know, i haven't seen any of that. and it's been terrific here in manhattan. people in new jersey have been spectacular. >> thank you. >> and, you know, i haven't seen that. i think it's just a real upbeat place to live and work. and this is -- let's hope it carries all the way through sunday and beyond. >> finally broncos polls show, i just read this, are rated third in terms of america's favorite teams. that's what polls show up from 17th last year. is that true? >> yeah. >> how did that happen? and how much does it matter -- >> i haven't seen that poll. 17th isn't too high.

>> how much does that matter to a team -- you worry about your hometown first and foremost. >> it just comes from success. and we were on national television a lot this year. when we acquired peyton manning, i think the whole nation that follows the nfl, and that's a lot of people, understood the magnitude of a signing like that. and so that's carried on -- carried forward with a greater national following for us certainly in recent years. so, you know, we're happy to be in the spot we're in. we're happy to be here and we hope we can have success on sunday. >> you didn't say you're america's team. >> no, i wouldn't do that. i wouldn't do that. a lot of people say that for us. >> yes, yes. >> but i'll let you guys be the judge. >> did you see governor christie made his pick, broncos 24-21. yes. >> is that a good thing? >> i'd take it. >> i don't know if that's a good question. >> i guess we'll find out. >> joe, thank you for coming in. >> thank you both for having me. a thrill, appreciate it. there's another big event next week right here in the big apple that's, of course, jim cramer's talk and book

signing -- >> thank you. >> -- for "get rich carefully." tuesday night barnes & noble, union square. speaking of jim, you got to read this book. >> thank you. >> here's what's coming up next on "squawk." coming up, are you cautiously maneuvering through this market? or have you been hitting the walls? cramer will help direct you with 6 stocks in 60 seconds. proceed with caution when "squawk on the street" returns. ♪ can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train.

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all right. the dow hanging on to its gains. let's get 6 in 60 with jim. tractor supply. >> tractor supply will come back, don't worry about it. >> las vegas sams. >> this is why people can't trade after-hours, it immediately hits and people sell it. big miss. might as well be called forget vegas. it stays there. >> we've gone almost an hour we've not mentioned qualcomm. >> it's rack we didn't because a

lot of people thought smart money too tied to apple, smartphones going down. no, qualcomm is talking about next year being a big year. >> what is goldman saying about pando pandora? >> they are going to say it will double. is it reckless? i don't know, they say if they get big ad loads they can do it. solaris is a rare drug disorder drug. >> and harmon. >> get this name down, pollywahl it's a high-end stereo system and in all the cars and a factory near me in mexico, this company is probably one of the great manufacturers and i like their headphones more than everybody else. >> interesting. all right. what's coming up tonight, jim, on "mad"? >> it's a wild show because when we talk about cloud, talk about concur and what this man who, by the way, is also friends with david faber. they had the pulse of what's going on. take a look at service now. we didn't get to now.

salesforce.com, google, these are social, mobile cloud that's what's working. turkey, argentina, south africa, sold to you! >> not working. >> no working. >> and facebook's gain today i'm just getting word from s&p is its biggest in a long time. you are talking up eight bucks at last check. now $7. >> people will say, there will be insider selling and we'll start dealing with that, blah, blah, blah. on the earnings multiple basis on the 2016 it's a cheap stock. why do i say 2016? that's how growth guys think. this isn't u.s. steel. this is facebook. >> jim, we will see you tonight 6:00 and 11:00. >> what a great show, man. thank you. so lucky you are from bronco land. >> when we come back, facebook as we said soaring today. hitting a new record. stock's having its best day since july after fourth quarter results. and mark mahaney will give us his stock. and david faber will talk about

growth strategy. keep it right here, don't go away. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. it was shortly after midnight. these guys broke into the house. after a few seconds, adt called me. they went ahead and notified the authorities. they were able to apprehend the suspects in no time flat. this intruder had a knife. the officers had already received a call from adt and had gotten there and apprehended the suspect. it just made me think of how lucky i was to have adt.

[ male announcer ] when it's your family, trust adt fast response monitoring to help protect against burglary, fire, and high levels of carbon monoxide. when seconds count, the experience of adt matters. [ lisa ] my son is my world. the most important thing is to know that he is safe. [ male announcer ] now get adt starting at just $49 with 24/7 protection just over $1 a day, plus a money-back guarantee. the person who took the call from adt saved my home, my possessions, and he might have saved my life. [ male announcer ] get adt for as little as $49 and save a lot more than money. call or click today. and save a lot more than money. but with less energy, moodiness, and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs

of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. welcome back to "squawk on the street." i'm dianeal on 96 wi le oal o a

waiting for the 10:00 mark to give you the numbers and they are weather related. we're just waiting for 10:00 to come around. waiting for the queue on that for pending home sales. these are signed contracts not closings. okay, the number, down 8.7% month to month from a revised november monthly reading. they're down 8.8% year over year in december. huge drops for pending home sales, again, signed contracts not closings. this is the lowest level since october of 2011. that was just after the expiration of the home buyer tax credit. big surprise, the realtors are blaming, quote, unusually disruptive weather in december for the big drop in home sales. but they also note, quote, home prices are rising faster than incomes, so, again, those very hot prices in addition to that very cold weather. let's look regionally. northeast, pending home sales down 10.1% month to month. in the midwest down 6.8%, in the

south where it's been pretty brutal down 8.8% but also pending home sales down in the west by 9.8%, no weather-related issues out there so again we're looking at very fast rising prices which are closing down a lot of those home sales we expect weather to affect the sales again in january. pending home sales represent closings in january and february, so, again, a big miss on the home sales numbers, back to you. >> all right, thank you so much, diana. obviously that water impacting a lot of different things. in the meantime a lot likes for facebook this morning shares are soaring following an earnings beat on the back of those strong mobile ads. mark zuckerberg's mug gracing the cover of "business week." let's bring in mark mahaney, lead internet analyst has an outperform rating on facebook raised the price target from 50 to 76 and our own jon fortt is here on post nine.

i see your upside is 90? >> long term what you need to know is this company is generating about $2 in ad revenue per user. google is out there generating about $8 in ad revenue per user on a quarterly basis and they can take up the gap they've had and triple it from here and still be upside. that's the long-term play. this company has the right strategy in terms of improving ads quality and you are getting premium growth rates here, 30%, 40% earnings growth, that warrants the premium multiple. >> mark, lots of attention on video ads as a potential lever for them to pull. you mention in your report also. but how long before we really start to see facebook and google running headlong into each other in competition for these ad dollars even more than they are right now. >> jon, that's the right question. we've had a thesis on the internet space which is that we're going to see the online migration of tv ad budgets. we haven't seen it yet. maybe at the margin we've seen it with google and youtube, the

best asset and the best way to play it on the internet but with facebook we're just starting to get the rollout and the testing of auto play video ads. twitter has this amplify project. it's a major source of funds for internet companies. but this is going to be a very slow build. i don't think it will be material for a name like facebook this year. probably next year. in terms of when that competition really starts heating up between google and facebook and twitter for the dollars i think it's three years away before it's an issue. >> monthly active users up three quarter on quarter. again, the critics come out and say slowing growth. then zuckerberg has this tidbit in this interview with "business week" today in which he talks about that blue app meaning facebook, might not be the end-all and be-all. are people wrongly thinking of this company as a one-product company? >> well, so far it's been a one-product, one-use company so they're not wrong to think that. the growth rates are slowing down. there's a law of massive numbers here if you will. you can only grow 1.3 billion

user base so fast, midteens growth rate, eventually that will be single-digit growth rate and it requires the moneytization, it's got to gap up but the use space can expand dramatically from kind of an entertainment a sharing service to a news service ala twitter to a communication service. if it does that there's a lot more engagement growth and user growth still to come at facebook. >> mark, big picture tell me, what have we learned about facebook's management, about its culture, the way it's grown to this point? paid attention to data? stayed pretty focused on its core business despite people telling them, hey, you should buy this, you should buy that, you should make a smartphone. what sets this company apart in this space? >> i'll give you two points on that, jon, i like the way the company has guided expenses or given guidance. said we're going to grow expenses 40% to 45% and they stuck to that. i like to see that kind of expense discipline. if google had that expense

discipline that stock would be higher. second is, this company did one of the most impressive pivots in the internet space i've seen in the last five years they missed mobile. that was the ipo problem that facebook had. they weren't there in time, but they took about five quarters and they solved that problem. that to me showed me that this is a management team that can change, they can learn and execute well. they were behind. they caught up and then they got ahead of a change. so far they're showing themselves to be a pretty good management team. >> that's what i noticed in the earnings report, mark, the 53% number, that's the mobile ad revenue as a percent of all ad revenue. where does that need to be by the end of, say, this year. how much higher can they grow that? >> i think that will continue to expand. a couple of percentage points each quarter and we'll probably exit 2014 at maybe 60%, 65%, and they'll still be able to grow desktop revenue and it's mobile and if you figured it out like twitter and google and facebook has your fundamentals improve. i think that's the great story here or one of the more impressive parts of the facebook

story today. >> if you had to choose, facebook, google, who gets the nod? >> we'll take google we listed that as our top pick at the beginning of the year. it's easier in valuation, it's easier in terms of valuation, we like both stocks but google first, facebook second and then, you know, we still like twitter but that's a distant third in that group. >> all right. what a day for your space, mark. just amazing. thanks for coming on. >> thanks, carl. facebook having its best day since last july. there's been a big turnaround in the turkish stock market today after comments from both the finance minister and the central bank. cnbc's chief international correspondent michelle caruso cabrera is live in istanbul with more on the drama. michelle, what can you tell us? >> reporter: hi there, sara, and yeah, there appears to be jawboning by two different groups today which has at least stabilized the lira, and we did see an intrasession turnaround in the turkish stock market. the session is split in two.

during the break a couple of thins happened. finance minister held a news conference and said on the report what had only been said previously anonymously by we don't know who that turkey is not considering capital controls at this point and then we also got the central bank minutes from the emergency meeting in which they announced the massive rate hike and they were very strong in the minutes. take a look at what they said. the central bank will not tolerate any deterioration in price stability. to this end the committee assessed an order deterioration in expectation inflation and overall pricing. it would be appropriate to deliver a strong and front-loaded monetary tightening and here's what's important. even more important, if deemed necessary, liquidity policy may be tightened further in order to invert the slope of the yield curve. in other words, we will do more if we need to do it, invert the slope of the yield curve. we all know what that means. that means that you are willing to bring on a recession when you see an inverted yield curve. additionally that's also to tell

everyone interest rates will come down. that means that you've got short-term interest rates much higher. long-term interest rates coming down, to signal to the market that's what you should expect because we'll do what it takes in order to contain inflation. now, at the same time, stability in the lira would be very, very welcomed by the business community. that's why a lot of people, it's been controversial, but some we spoke with one real estate developer earlier today, in fact, who is actually very supportive of the rate hike because he says it's going to bring on stability. take a listen. >> this is not something anybody would like in turkey. but the markets have demanded it, and the central bank had to give it. so, this is a -- this is i think the rule of the game. >> reporter: the rule of the game. and it is a game. financial policy, monetary policy, trying to stabilize the currency, it is very much a

confidence game. you've got to instill confidence in the market that you will act. back to you. >> all right, michelle, thank you very much for that. our michelle caruso-cabrera in istanbul. in the meantime, nor wagen cruise lines "the getaway" is transforming change from a cruise ship to a floating hotel and our simon hobbs made sure he got that gig. he's live on the ship. he joins us with more. hey, simon. >> reporter: you know, carl, the super bowl comes to new york or new jersey if you want to make a buzz you've got to go big or go home. this is bud light's attempt to go big. yes, it's a cruise ship but they'll be using it as a hotel for 4,000 winning customers and executives dunk the course of the next four days with the foo fighters and run dmc playing next door. we'll talk about their brand strategy for the super bowl, very important for them and very expensive ads and what they are paying google to be top of the pile. we'll talk with kevin sheehan who is the ceo of norwegian,

this "the getaway" is the latest addition and the wave season and illness on one of their rival brands as well. that ahead in the show. it's really odd to be on a cruise ship, carl, that's destined for miami but it's covered in snow. strange. back to you. >> yes. yes. what a week it's been for that industry. thank you. if you are not watching the super bowl for game you are probably watching it for the commercials. pepsi and frito-lay are combing through thousands of consumer-generated ads to find the best one, to find one that will be aired during the super bowl. here's one of the contenders. >> billy. >> huh? >> use the cleaner. touchdown. >> it only works with doritos. >> why only doritos? >> you ask too many questions, billy.

>> gross! gross! >> is that the winner? more on the showdown after the break.

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welcome back to "squawk on the street."

it might be an up day for the market but check out shares of adt, the worst-performing stock on the s&p 500, the electronics security company reporting weaker-than-expected first quarter earnings and revenues. the company expressed dissatisfaction with its results saying customer growth did not meet their expectations. now, investors dissatisfied as well. the stock down 21%. carl and sara? >> wow, thanks for keeping an eye on that one for us. the super bowl ads going for $4 million for 30 seconds this year. the stakes are certainly high for brands to get noticed. for the eighth straight year frito-lay is turning to consumers to create ads for its dorito brand as part of the crash the super bowl competition. they'll be air two ads during the super bowl i selected by the world's vote and one by the brand team. and for the first time the creator of the ad that receives the most votes will win $1 million in prize money. joining us at post nine for a first on cnbc interview is the chief marketing officer for

frito-lay north america and simon loden the chief marketing officer for pepsi beverages north america. the doritos, everyone is talking about it, the australian one where he sticks his finger through the wall that is the one that i voted for. but seriously you've had big success with this. >> we have. before the super bowl we had 27 million views of our ads, we've had a super bowl before the super bowl it's so much fun. >> is that something new where you have to have a pregame show for the ads before the super bowl? >> i tell you. you talked a little bit about the cost of the super bowl, right? you have to make this an ongoing relationship. that's the way you get the return on investment, the best part is when you're part of a broader pepsico portfolio and i've got my partner here you have to leverage the entire portfolio to get the return on investment. >> i was looking at some of the ads that will be coming to the super bowl from pepsi. you got pepsi and mountain dew, a few of those, how do you pick the ones in the portfolio that get the airtime at the super bowl, why not frito-lays and

tostitos? >> we have a fantastic portfolio and if you look at our relationship with the nfl 30 years in the making we've had gatorade association, we have frito, wve pepsi, we have doritos and now we have mountain dew. we were launching a second stage of kick-start this year and the pregame which is almost as big as the game itself will feature a brand-new diet dew campaign and a kick-start campaign and we're feeling really good about that. halftime for pepsi, the center of music and sports culture is where it will be. it's a 12-minute commercial and we started this campaign four or five weeks ago. we had the grammys event where we had the commercial bringing football to music. this year -- this weekend, bringing music back to football, we're excited about the bruno mars campaign. >> we have a 30-year relationship with the envelope and every part of our portfolio because we have this unbelievable portfolio, you really get to leverage the sponsorship. >> what's the payoff, how do you judge whether it's a success because clearly it's costing you millions and millions of dollars? >> as ann said it's a

relationship that's multiyear and it's also multimonth. we start our work with the nfl at the combine all the way to the super bowl, if you go anywhere in manhattan, in fact, across the country right now, you go to dwayne reid, you'll see lays and pepsi executed together. >> do you see a bump in sales ahead of the super bowl? >> absolutely. >> we measure ad effectiveness, we measure it on our sales and share performance and because we have such rigorous understanding of how this builds our business, we know it's the right investment to make. >> absolutely. >> you mentioned the halftime show and all of this. are there other platforms you are levrm ieraging less because you're putting so much into the nfl? >> in today's world it's about the social media, we're levrm i leveraging more of the multiscreen world by taking the sponsorship from the combine and super bowl and the earned and unearned media that we get as a part of this is actually exploding. >> not only can you not think about advertising on the game on

its own. ann's advertise ling had 27 miln views. >> is social so strong that you don't need the ad at the super bowl. >> the marriage between the two is important. >> you need that averager and that stage and buildup. it's, like, christmas, it's the day you unwrap the presents but the buildup to it is really what it's all about. it's the biggest party occasion that you've got and that's the best part of this. you got pepsi and tostitos at a party and you go to a convenience store you have dew and doritos and you go to a restaurant, you have it all. >> sabra hummus, is that changing the equation? >> quaker involved in the play 60 campaign with the nfl. >> people are healthier. >> absolutely. >> the full portfolio is on display this weekend. >> you have four mountain dew spots. >> we do. >> is this a really big area of growth? >> mountain dew is the most successful in the u.s. over the

last few years. >> carbonated soft drinks. >> the biggest launch last year. >> biggest. do you know what, we've gotten two new flavors outside your stores today being launched as we speak and we figured why not bring it to life before the super bowl so for the first time in ten years mountain dew is back on the super bowl. >> fantastic new flavors. fantastic. >> say hi to bruno for us. >> absolutely, absolutely, we'll see him this evening. >> absolutely. >> bruno, i don't know bruno's no beyonce. >> that was not the way to end this interview. >> all right. well, thanks for joining us at post nine. when we come back, we're breaking down the best real estate for the big game. find out where you can find the best bang for your buck. superbroker to the rich dolly lenz will break it down in just a moment. ♪ let the good time roll

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cnbc's popular million dollar home competition is back. all day today homes are facing off to find out which ones are the most bang for your buck. since we have the big game, we sent seven reporters out to seven cities whose home team recently won a super bowl. the winners of each round advance to the play-offs. the champion will be announced

on the closing bell. the teams in this play the pittsburgh steelers versus the indianapolis colts. guys, out of these two i'm rooting for, i'll go for the steelers this time, to make it more fun the reporters don't say where they are. we'll figure that out after we get a look. touring the homes are eamon javers and morgan brennan. >> this three-story sits on two wooded acres with sweeping views, it's got a swimming pool and a waterfall feature and best of all it's only 15 minutes from this city's football stadium. >> this brick traditional stands two stories tall on just under half an acre it has a three-car garage and two covered porches, a superplace to kick off your pregame festivities. >> on the inside the open floor plan boasts vaulted ceilings and a sleek contemporary look and this gourmet kitchen with granite countertops and upscale appliances and around the corner is an automatic door for your dog. >> the gourmet kitchen in this home can put on quite the game

day spread with granite countertops and a butler's pantry and this spacious fireplace-studded seating area. >> in here you've got your own fireplace and a massive bathroom suite and it's down the hall from three bedrooms for your kids. >> six bedrooms mean plenty of room for tailgaters but the main floor master suite is the real trophy with custom barn doors and a sparkling spa-like bathroom one of five in the home. >> this is where you want to watch the big game. we've got two stories of light and air coming in off of this covered porch out here. tons of seating for all of your friends and, of course, plenty of space for your big screen tv. all this for 995,0$995,000. >> the adults can take in the game in this theater foots away from the wet bar and the jungle theme room upstairs will entertain the kids all for $975,000. popcorn? not included. >> joining us now is real estate broker to the superrich dolly

lenz. tell us roughly or maybe exactly where the place are. >> the indiana colts house in carmel, indiana, which is a really nice suburb of indiana. and the pittsburgh steelers house is in chapel -- fox chapel which is outside pennsylvania, great, great house. >> the brick behemoth where morgan brennan was clearly the winner. there was a theater, come on. >> a theater, a super custom home, everything in that house looks like it was made for a megabillionaire. it is so beautifully done. >> those markets talk to me about taxes, how expensive it is to have a home there. >> that's the big issue. so, in carmel, the taxes on that house are 8,300$8,300 a year. >> wow. >> which actually isn't bad. >> no, it's pretty good. >> exactly. and pittsburgh, right, the pittsburgh house, which is in -- is $25,000 a year. $25,000. that is the highest of all the

houses that we've selected for today. so, i have to tell you, that's really, really an issue for most people you talk about, you know, $2,000 a month, just taxes. >> is there super bowl impact on real estate prices? >> you know, that's a great question. you know, there is to the extent where new money is going into areas because they're building new stadiums such as san francisco. so, that whole area is now changed and fabulous as a result of bowls being played there. so, that's terrific. >> i'm going to guess you the indiana house. >> well, i think i agree with both of you, we all prefer morgan and the indiana house. everybody's like morgan wins, morgan wins, morgan wins! >> yeah, come on. >> but seriously, 5 1/2 bathrooms, that brick house is beautiful. >> i'll tell you, first all, it's a custom house, it's a gorgeous house, it's in a terrifiche taxes are a third. how can you beat that house? in that competition, it was

pretty easy. >> 5 1/2 bathrooms in new york city for that price. >> not waiting in line. >> you are not favoring the colts necessarily over the steelers? >> me? >> yeah. >> i can't say. >> you literally cannot say. dolly, thank you, as always. >> thank you. >> the indiana home will win round two. move on to the play-offs on "street signs" but catch dolly on the fast money halftime to see two new homes to face off and later on she'll crown the winner later on b"closing bell." all major indices are falling 4%, and the stock market making a big comeback today and how should you be navigating the new found volatility? we'll explain when we come back. ♪ can't explain

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breaking news from the energy department, i'm sharon emerson at the nymex, we're looking at natural gas storage levels that fell by 230 billion cubic feet in the last week down by 230 billion cubic feet. we are looking at natural gas prices right now that have come off of it. we're down about 32 cents from the highs we saw or the closing price we had yesterday that was a 10% jump in one day, but we have seen prices coming down here this morning even ahead of this release. we are still looking at record

levels of demand for natural gas because of the extreme cold temperatures that we're seeing. there are some that are predicting that we will have at the end of this winter a six-month low in terms of the supply of natural gas, in terms of that number. it's going to be somewhere around 1.2 trillion cubic feet. we're also continuing to watch what is happening in terms of the volatility that we're seeing with the now march contract. the volatility we saw yesterday had somewhat to do with the fact that it was the expiration of a contract traders are saying but we're still looking at the bullish bets here natural gas at the highest level we've seen since some speculators in about eight years. a lot of volatility in this marketplace. back to you. fourth quarter gdp came in at 3.2% this morning helped by a healthy uptick in consumer spending. steve liesman, you think the number is better than it looks? >> it could be, the 3.2% growth reported this month by the government generated positive commentary many saying it shows

underlying momentum this year because the economy overcame significant drags last year. the growth comes after a 4.1% pop in the third quarter. everyone thought that would generate payback. well, it didn't. instead the u.s. generated the best second half of growth since 2003 thanks to dan greenhouse of ptig for that stat. here's how we got here, consumer spending up 3.3% and business investment was down a little bit but not bad at 3.8% and exports surging and housing down perhaps weather related and a huge decline in federal government spending likely the result of the government shutdown. capital economics saying when we take into account the nearly three-week federal shutdown at the start of the quarter and the 3.2% gdp growth is pretty impressive they say. strong headline, growth but inventory and foreign trade boosts are not sustainable, so they're worried over there that we'll pay back in the first quarter for that but bmo said fourth quarter economic growth justifies the fed's move to pare its bond purchases and pnc with

the economy firing on all cylinders this year will be noticeably stronger than in 2013. the fed mentioned specifically the idea that the economy had done well despite the fiscal drag. suggesting this was in line with the kind of growth they were looking for. fourth -- first quarter forecasts that i'm seeing, guys, running about 2.6%. but probably some decent questions about the weather and whether or not they impact the first quarter. sara? >> all right, a lot of optimism out there about the u.s. economy. steve liesman, good to see you. certainly stock markets getting a lift from the gdp numbers and the dow and s&p and nasdaq all in the green. as you can see all morning long following yesterday's selloff. let's bring in a pair of experts, the chief investment strategist and chad morganlander portfolio manager, and mark, i'll start with uf. the united states looks like it's weathering this emerging markets and overall storm pretty nicely as we get used to a world with less federal reserve life support. is the u.s. where you want to be?

>> i think it's among places you want to be. i do think actually you're seeing positive numbers coming out of europe that is building repeat performance that i think also that makes the european area as an investment community a place you want to be as well, but on balance we do think the u.s. equity market while fairly priced from a valuation perspective will return a reasonable rate of return to investors in 2014 and overcome what is probably going to be a more volatile year than last year and maybe we're in the midst of a correction which we think is a buyable opportunity as opposed to something to fear. >> all right. that's optimistic. chad, do you agree? u.s. and europe, a shift to the developed world from the developing world in terms of stock markets? >> yeah. i have to agree with that. the u.s. economy is growing at a nice clip. our expectation for 2014 is a 3% handle on gdp. we do believe the equity markets in the united states as well as within europe will be in the plus column by 5% to 10% next

year or this year. the one worry that we have is the market has been riding this liquidity wave courtesy of the federal reserve. we believe that once they start to pare back which they've been doing you're starting to see stress in various externalities in the financial system, ie, in the emerging markets and we'd take the trade-off, but a 5% to 10% correction from here on in over the next couple months should be something that should be expected, we'd move to higher ground, go with higher quality inve investments, in particular on the equity side as well as on the fixed income side. >> hey, mark, you know, the gdp looked great, but i just wonder if we see sustained weakness in durables or capx would it do anything to change your thesis? >> it would a little bit, carl, because part of it is not only global synchronization but part of the driver is capital spending revival. we know the average age of capital stock in the united states is at a point that

historically has ignited capital spending sprees and we think obviously with the now some of the fisc issues behind us, the political dysfunction seemingly behind us for the most part, that that should ignite spirits and as a consequence drives what's been largely lot of from the economy now for about 18 months. that said, that most recent durable goods orders coupled with the core capital goods orders embedded in it was not indicative of a strong uptick in business spending. it's still being deferred as opposed to being enacted and an undermine of that i think will trim a little bit off of our u.s. economic expectations. obviously the important driver remains the consumer and so that's why it is important to see that personal consumption number inside this morning's gdp report being rather robust. >> if we are going to get used to a period of more volatility, more wild swings in this market, how do you discriminate between sectors and stocks? which ones look safe to you? >> for us consumer discretion y discretionary, we'd look at a company like walmart in regards to technology. you want to go with the big --

the big megacap stocks, so look there towards a company like oracle and in can be when it comes to other investments in regard to fixed income, i would particularly go towards high-grade investment corporate bonds. you want to perhaps move away from the high yield companies on the fixed income side of this. >> mark, what about you? what do you like? >> sara, we remain in a pro-cyclical modality, which is to say we like the sectors, one, that should benefit from a capital spending spree which would be business-facing technology companies, industrials. in addition to that, we would be long financials as we belief, again, they should benefit from better domestic conditions and continue to pivot more of our investment portfolios to non-u.s. equities to euro area and japan and we think will pose rewarding for 2014 if similar not by order of magnitude as in 2013. >> all right, gentlemen, the dow up 83 points as we speak. s&p and nasdaq as well.

mark and chad, thanks for joining us this morning. >> thank you. >> thanks. on that, let's get over to get a quick market flash here. >> well, we're seeing this rebound in the market but take a look at newstar, that's not getting hit hard this morning the company which routes phone calls and managing databases for north american telecom carriers forecasts full-year profits below estimates. the company gave an update on the status of the bidding process for the telecom industry database which raised worries its contract renewal might be in jeopardy, it tamakes it possibl to take your phone number with you if you change or move carriers, carl? as you probably know the super bowl is only a few days away but the party in new york has already started. one of the biggest parties is expected to be here at the bud light hotel which is actually a floating cruise ship on the hudson river. we're going to go live to the

hotel with the vp of bud light. simon hobbs has that. ♪ don't rock the boat baby mine was earned in korea in 1953.

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♪ you change your mind like a girl changes clothes ♪ it's a look at super bowl boulevard in midtown manhattan in time for the super bowl a new hotel is opening in the big apple on the high seas, norwegian cruise lines newest ship "the getaway" will be docked on the hudson river and will accommodate 4,000 guests over the course of the super bowl weekend and let's get to simon hobbs on the bud light hotel aboard the norwegian cruise ship. hey, simon. >> reporter: in what they call the haven, the luxury top deck of that particular cruise ship. i have the guy who reckons he's

created the ultimate super bowl experience for those 4,000 people, rob mccarthy the vice president of bud light brands for anheuser-busch. good morning. >> good morning. >> reporter: why did you decide you would hire a ship for the bud light hotel? >> it's a great question. when the nfl decided to come to manhattan, new york, and new jersey, they gave us a challenge, how do you make a mark in new york city? and among many ideas the crazy one came up why don't we get the biggest cruise ship and park it beside the "uss intrepid." >> reporter: and you have a live concert with the faa fighters and run dmc, it's exclusive all the way. >> we've never done it this big. >> reporter: you are branding it a place where lucky customers will end up as a result of checking their bar codes. i imagine there will be an awful lot of anheuser-busch executives on board here. what's the split? >> there are a lot of guests, anheuser-busch guests, a lot of

our retailers are here. we do have consumer winners that have checked their bar codes and won trips through radio stations, online. but really everyone here is the vip and we are the host. >> reporter: it's obviously part of a huge campaign for you. let's talk about the advertising slots for a moment which i think is selling upwards of $4 million for 30 seconds. i don't know how much you paid for yours, i do know you've got a teaser with don cheadle and a llama. >> we do. >> reporter: is it true? i think the tag line is "whatever is coming." >> whatever is coming is the teaser. the tag line is bud light, the perfect beer for whatever happens. >> reporter: well done. is it true that you paid arnold schwarzenegger to sip bud light through that commercial? >> i can't tell you what we paid him. i can tell you that was exaggerated. >> reporter: what about generally the branding overall? i understand that the in-store branding can drive people towards buying the beer? but do the ads actually work or is it just bravado, you have to be out there the same as everybody else? >> with the superbowl the ads

are the destination much like the game, we use our time to tell a story and tell a message but to also get people interested in bud light well beyond what they see in the game. >> reporter: what about the online strategy because i read you fade google paid google to searches, last night you were one or two, but this morning you were kia and audi and bmw. >> it goes up and down and it's real-time investing we decided to grab things trending and push them, and when something else comes we'll grab it. we're working closely with google and twitter and facebook to bring everything together and you're absolutely right, what bud light does in the super bowl, we need it to live online bigger. >> reporter: what about the day itself? does it matter that might be 40 degrees, for example? does it matter that apparently ticket prices are plunging because you got two kind of western teams that maybe the fans aren't traveling? does all that matter or is it broadly irrelevant to you guys at the end of the day?

>> the super bowl game will be a sellout and we have the best teams in the country celebrating and even though we are out in the cold, we're self-contained. we won't be going in the hot tub, but we are right beside the "intrepid" and across the street from the event space and pretty incredible for bud light guests. >> reporter: seahawks or broncos? >> manning, all the way. >> reporter: it's nice to meet you. thank you very much for hosting us here. >> thank you. >> reporter: it's the vice president for but ligd light br. it's an incredible experience and i'll bring you something to show you what it was like. thank you. >> it looks like a lot of fun. have fun out there, simon, and stay warm. make sure you keep it here because in the next hour we'll have an exclusive interview with time warner cable chairman and ceo robert marcus, a whole lot more, that's coming up later on "squawk on the street." ♪ is it just a dream tdd#: 1-888-648-6021 there are trading opportunities

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[woman]don't touch my side! let's go to chilly chicago to the cme group, rick santelli with the santelli exchange.

good morning, rick. >> good morning. well, we've seen another bit of housing data that didn't look spectacular and i know there are potentially weather issues, but there's also seasonal adjustments take it month over on december pending home sales released not too long ago down 6% year over year. definitely something to add into the hopper after seeing weak existing home sales and some of the other metrics. one thing i want to point out. lumber prices today at the cme are up the $10 limit. as you look at the chart you can clearly see it isn't breaking out of those recent tops right now, but it is getting closer. now, when you try to equate lumber to housing you know many like to look for a six-month lag, keep that important safety tip in mind. let's look another commodity, natural gas. it is the rave. every newsletter, two thirds of them have been wrong, it's going up in impressive fax as of late as you can see on the chart. open the chart up to one year

and it gives you better perspective. let's contrast that perspective with another form of energy. or bon, you know, gasoline, the liquid form that you get at the gas station. let's look at that chart. that's been going down. which brings me to the main point of what i'd like to discuss. we have the state of the union speech. the president talked about how he's enamored with natural gas. i'm paraphrasing but he's going to do everything that he can with that phone in hand to make it better, make different parts of the industry. maybe more filling stations although if you have natgas in your house you can put a filling station right in your garage. the point is, you know, i'm not buying it. the administration hasn't been very fossil friendly with energy. we all know that windmills and solar might be a great idea. they were a great idea when i was in grammar school. but if we need a bridge, we're going to need a long bridge. we need to be realistic about it. the real point here is, is that honda has been making a natgas vehicle for years.

here's what i give the natgas vehicle for honda, i gave it an "f." why do i give it an "f"? because you can only run it on natural gas. i give daimler-chrysler and even more importantly i give ford major kudos because they're coming up with cars that have this. it's a little button. it's on the dashboard. you hit it. when you hit it you can run on natural gas or you can run on regular gas. i did a conversion years ago. it's not that hard. same 150 that ford is going to be bringing. the point of this is, choice, choice, underline choice. well, when natgas was cheap, you hit the button for natunat natg. when gasoline is cheaper you hit the button for gasoline. give the consume area choice. i don't know if mr. tesla is going to elon musk is going to

to sell cars to china. i know the media loves this stuff. in the end, no matter how little sponsorship dual vehicles get makes sense. when things like sense they will crawl to the surface no mat whole is really believing and who isn't. back to you. >> rick santelli who has forgotten more about cars than most people will ever know. rick, thanks a lot for that. let's send it over to seema and the dow 71. >> carl, look at this big mover underarmour moving higher. better than expected 40 quarter earnings registering strong sales of fleeces and cold gear infrared clothing line. here's a programming note. ceo will be a guest on "closing bell" this afternoon at 4:00 p.m. eastern time. carl? >> seema, thanks. the super bowl does kick off in a few days but is it a coincidence that both teams come from states where marijuana is legal? it is called the super bowl after all some people are calling it the pot bowl or the bowl bowl. >> the bud bowl.

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for a body in motion. we're at the soubl this sunday is it a coincidence that both teams come from cities where marijuana is legal?

well, almost certainly yes. that's not stopping people from coming up with interesting big names for the big game. jane wells has the best of them live from los angeles. >> carl, i'm calling it the stupor bowl. party sunday across washington and colorado, careful of the brownie. in seattle it smells like team spirit for the seahawks where a state where recreational cannabis is illegal and in denver they're hope for a rocky mountain high sfooif in the broncos win sunday. of course, if you're going to the game you cannot bring your marijuana across state lines into new jersey. no medical marijuana is legal there but very restricted. don't let the facts get in the way of the story. some suggested renaming metlife stadium and the blimp cush life, doobie bowl, the bud bud, the bud bowl, yes, i know it's taken. we would never suggest that beer has anything to do with marijuana. my favorite, super bowl cdxx which stands for 4020.

entrepreneurers are not wasting any time selg t-shirt wsz the lombardi trophy to look like a bong and normal chapters who promote marijuana legalization has placed bets. if denver wins, mormal in washington will sing "rocky mountain high" and if seattle wins, they'll sing "purple ha" m seattle's son, jimi hendrix. >> i like the bud bowl. >> it came -- >> well, super bowl cdxx came from asa williams on twitter. i have to give a shoutout to him. it took me -- maybe i was having a bud. it took me about ten minutes to figure it out. >> there are so many nicknames for marijuana. did you see also that college i'm missions or college applications are up big in colorado lately. >> shocking, shocking. but you have to be 21, kids. >> okay, jane. i'm sure they will take that advice with a grain of salt in

those states. good stuff, jane wells joining us in l.a. today. meantime, one thing that's missing this morning than that mid morning sell-off. on the day where's we have had a gap to the upside we lost it in the middle of the session or at least we get closer to europe's close. not happening so far. >> looks like today is an up day. strong day. if you see dow, s&p, and nasdaq all pushing higher. nasdaq certainly in the lead. facebook leading the way there. face book having its best day in july. july is when it stunned analysts, blow out earnings. facebook shares up right now 15.6%. also the ten-year yield. there was a better gdp number. steve liesman and a number of economists put out notes today. it was a solid read on our nation's economic growth given by consumer spending. what you want to see, driven by trade, what you want to see and not just a build-up of inventories. >> thank goodness for trade and the consumer and thank goodness

durables didn't take too much wind out of the sails. time warner cable beat by nine cents. they lost video subscribers in the quarter but we will talk to rob marcus. faber has him in the next hour. we'll talk about that and where his thinking is on that right now. but if you are just joining us, here's what you missed early on. >> welcome to "squawk on the street." here's what's happened so far. >> we have four medicines under regulatory review currently. we could launch as many as three of those this year. so this is really the inflexion year for us and we hope those launches will put us back on a growth track starting next year and beyond. >> it's all a part of our plan to sweat all the access that we have to get everything we have in our capacity. great super duty truck, great demand. we're going to increase by 55,000 products here in kentucky. >> i'm going over everything. he's thinking about this.

firing on cylinders that are just -- like i wish i could keep up with his thinking. this is a -- this is a juggernaut i have never seen a company with greater operating leverage in my career. there's an absurdity here, all right. they over pay for things. they have a lot of capital. and let's talk about who is not overpaying for things and what stagnation that stock has. apple. [ bell ringing ] >> we've got a terrific week here. if you look at the weather report it's going to get warmer. we're going to believe in that. and football is meant to be played in the elements and i know a lot of players and coaches are excited about it. they haven't talked about the weather for one minute. >> we measure out effectiveness, we measure it on our sales and share performance. because we have rigger rouse understanding of how this builds our business, we know it's the right investment to make.

good thursday morning. live at post 9 at the new york stock exchange. want to get a check on the markets. dow hanging in there today. for one is up 88. number of things are going relatively right. the yen relatively steady, around 102 swoent. earnings are coming in good. amazon and google report tonight. sales force one of the biggest gainers on the s&p. pacific crest says it looks poised to deliver a fourth quarter earnings beat and possibly raise results. >> let's get you a road map for the hour. starting with facebook soaring hitting a new record. best day since july after fourth quarter results. just how high will this stock go? plus, the ceo of whirlpool joins us for an exclusive interview. found out what he thinks about the american consumer and what's ahead for his commpany. and the ceo of norwegian cruise line tells us about turning a ship into literally a bud light hotel. check out shares of facebook soaring this morning was up even more on the premarket after beating on earnings driven by an

increase in mobile advertising. we want to bring in tony, analyst at jenny montgomery scott. just upped the price target to 67. reiterated a bye on facebook. tony, good to see you again or at least talk to you. good morning. >> thanks for having me back. >> everybody is talking about the untapped potential. cramer this morning said it has more operating leverage than any company he's seen in his career. is it that today or is it more of a squeeze or the shorts? what's going on? >> what is clear here, this is a company dialling in growth. i think at will these guys could amp their growth even higher by frankly taking down the cost structure and pushing out some new opportunities. but they're focus and long-term growth which is something really to appreciate here. at the core is mobile demand, clearly outstripping supply. these guys are not even tapping video or new app opportunities, instagram or third party ads. >> what's taking them so long to monetize instagram and get going on video mobile and what sort of opportunity do you see in terms of making money and sales growth

on that? >> the reason that they don't need to do it. it's a mega cap company putting up this monstrous top line growth. forecasting 45% in 2014 without these initiatives. so they have time to perfect these things and come back to the market with a really powerful product. at the course, just the fact you have this demand for mobile. i think about the being an anchor. if you're an ad buyer you have to rotate your budget to mobile in the same way you had to pro tate your print budget online. this is the second rotation. facebook is the best way to play that. one other opportunity that the street may be overlooking is what we've been talking about is a speculative opportunity around the payment platform which could rival the size of their ad opportunity. >> interesting. we've got a lot of players threatening to move into that space. you know, we all remember when mobile made up zero of their ad revenue. now it's more than half. how high does that number go? >> you know, it's hard to say where people ultimately move off of desktop but i would see it

being a day where you're 75/25. >> 75/25. for all the talk on roi on video. there's the counter argument the user might not respond to it the way we expect. what's the danger of that? >> i think video is a different experience. it's really about branding. so in the way i think about it is tv is a great branding platform. the visual medium sets up the message. traditionally online and platforms like search are closing the deal. so i think really what video does is starts to broaden the pool they can fish in. when you think about global, internet advertising it's about $100 billion spend. and this really gets them out of just having to deal in that pool and actually start to look at the broader tv branding pool. >> when it comes to the race for advertising dollars, facebook, twitter, google, who wins on video and who wins on mobile and is there enough for all of them to go around? >> they all do. when you think about tv networks such as way i tend to think

about facebook, you know, tv networks, there's many of them and they all continue to grow the earnings nicely as we see last year. we had names like disney, viacom, time warner, all up 20 to 60% on their stocks. and that's a function of them all continuing to grow even though there's 100 different cable channels. >> tony, good stuff. important data to talk about this company. thanks for your time. see you soon. tony wible. in the news this morning, google is selling motorola mobility unit to lenovo after it bout it for $12.4 billion. john joins us, president and ceo of buzzfeed and jon fortt joins us this morning. jon fortt walks in this morning to the new york stock exchange and says i have something to say about this deal. critical of this. >> start with google. here's one of the first things that i thought about when i saw the news. many people probably won't remember this. it's an ad that google, motorola

put out on the fourth of july right before they launched the motox. the text at the bottom, we knew this would be a challenge. in fact, some people say it couldn't be done. nothing this exciting ever comes easily. they were partly talking about the assembled in the usa strategy. they're employing people in texas to build this phone. less than six months later they sell motorola to a chinese company that has actually demonstrated a commitment to manufacturing in the u.s. they do some business laptops in north carolina. that's the part of this that is kind of mind boggling for me. >> pure arrogance? >> they did this with the nexus cue. they said it was going to be made in the usa. they launched it and then never shipped it. sure, they can afford to do that. they're a very rich, successful company but that's also why so many people believed in them, they followed through on this.

they can't afford to do this. >> hanging on to a lot of patents? >> write-off is not nearly as much as people think. $3 billion in cash. sold a division for $2.4 billion. the patents are worth something. i forgot the point that jon made about that ad. i think the explanation for why is the fact that they need to fix android and they need to switch the bet to samsung basically. we see at buzzfeed 2.5 times the usage on ios we see on android devices. that doesn't make sense given android has 80% of the market. samsung has 30% of all of the smartphones. so they basically need to make a concession to samsung, work more in concert to be able to make the platform more unified and easy to use. and it's a write off they need to make. >> absolutely. it makes sense. if you're an investor you should be happy about this. i think google stock is up 2%. clearly investors are happy. pragmatic decision -- >> are they getting a good deal? >> lenovo, if they can be as

good as lowing this margin business as they had been with pcs and taking on this and ibm server business which they are also picking up, yes, it's a good deal with lenovo. but we'll have to see. it's kind of like hp's 2008 strategy going on big volume for low margin. we'll see if they can execute it. >> speaking of someone who knows that business at hp and the motorola deal, our david faber joins us this morning from seattle. he's got thoughts on this. would you call it a backtrack, david? >> yeah, i think so. it's interesting, carl. putting these things in the larger landscape of mergers and acquisitions of the lack of m&a that we talked about for so long. perhaps that being the fear on the part of ceos taking the big action. this is one company capable of saying, hey, we kind of didn't get it quite right and are moving on. there aren't that many other companies perhaps that could feel the strength to do that. obviously they've had success in the past when it comes to m&a. certainly the likes of youtube, for instance, comes to mind. but in this case, they kind of

move on without much damage. a controlled company at google, don't have to worry about activist investors. obviously it wasn't while it was larger dollarwise it wasn't the biggest of deals for them given how much free cash flow they generate. it is perhaps a cautionary tale for others in terms of at least, you know, getting into something that clearly did not work out as intended. >> i also think that at the time they did the investment they couldn't have foreseen what sam saung and these other players would do. they would go and basically make their own operating systems on top of android which is something that google couldn't let happen. if you're google you want more mobile web consumption to get more search. rounding error of this low margin hardware business -- >> i think they did foresee that happening. they didn't want to lose control of android. and motorola's hardware business was potentially a way for them to put a stake in the sand saying we're going to put out a pure version of android on this. don't stray too far from this. it just didn't work out. >> they lost on the hardware

side. >> they wanted the patents that came along with motorola. >> proved to be less valuable, as well. >> david, it does make you wonder whether or not you should look at something like the nest acquisition with more of a skeptical eye. >> you might. and you know, i think many of their investors are willing to google the benefit of the doubt, carl, when it comes to the way they spent their cash in so many different ways because the core business is still operating at such enormous levels of success at this point. should that change you might get a little bit more critical look at their acquisitions although we'll see in time. they've had certainly as i said some success as well. but i do think it's interesting. larry page is one of the first things we did when he took over is doing this deal and he gets out of it. other companies, for example, at ebay, meg whitman bought skype. that deal didn't work. in this case he has the confidence, mr. page, saying all right, let's move on, keep what we can, the value that we can potentially at least have taken

here and go on to find another day. >> one last point, john. they report tonight as we said with cramer this morning, having stellar record of beating on actual earnings, right? >> yeah. >> what do you expect tonight? >> i think it's a rising tide lifts all boats. if you look at cramer's motif of social mobile cloud, i think as a scepter bet, betting on oil or gold at the right time, that's how i view the internet companies. all media is changing. look at facebook, daily active users, over monthly active users at an all-time high. instagram doubling the amount of users to 180 million a month. more amazon usage, that's what we're going see across the board. >> jon, thank you for joining us. buzzfeed, jon fortt and david faber you're going to join us in a bit. >> right after the break. we're going to have rob marcus with faber in seattle. although ingmar cuss might be here. we'll find out after a short break. s helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution

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the company reports fourth quarter earnings as well that beat the street despite some weak results for video. what's next for them, our david faber joins us with rob marcus. david? >> carl, thank you. in seattle, figured i would come while everyone else is going to new york from here. happy to be joined by rob marcus, chairman and ceo of time wash warner cable. a company that put out earnings this morning but also report a significant plab fn for its fut and give us a sense as to why it's believed better off as an independent company. rob marcus joins us from midtown manhattan. nice to have you with us. >> thanks for having me, david. >> you know, rob, you put out an ambitious plan this morning that had significant growth in ebitda, lowering churn, significant investment. why do you believe based on pro previous events at the company at least that you can meet any of these car gtargets? >> it's no deny that 2013 was a

rough year for us from a subskrisher perspective. the good news is we closed out the year with a tremendous amount of operate mog mem tum. ourscriber performance improved sequentially in each month of the fourth quarter and in january we had the best january we've had in five years on the subscriber front. i feel like we enter the year with a whole lot of momentum and we've got a terrific plan and terrific team in place and i do believe that we're on a great trajecto trajectory. >> i talked to a number of your investors who both have read and listened to your call in term of discussing the future. they focus on your plan to grow ebitda by 5.7% from 14, that is 2014 to 2016 and say, that's great except where are the specifics? what davis ygives you the confi

that you can meet those targets? >> i think we have a well thought out plan here. we've done very well historically in improving our monthly recurring revenue per customer relationship. the quality of the customers we brought on in 2013 have been of higher quality. the key now is to improve volume and our plans involve taking advantage of the nir tives we put in place during the course of 2013 to increase connects, decrease disconnects. our attention efforts have really born fruit recently. and most of all, we're investing in improving the customer experience. we're increasing speeds. we're improving reliability. we think all that translates into better subscriber performance overall and that translates into better revenue and better profitability. >> you know, there are some who will say if you believe all of this and clearly believe that you can meet this plan the stock price will be far higher than $133 a share. why even put a $160 a share

number out there if not as a counter, at least as a number that you're saying charter and its partner liberty need to meet if they want to acquire this company? >> maximizing value for shareholders. we want to make it crystal clear that we're going to explore all of our alternatives to accomplish that maximized value. by putting the $160 a share on the table and i want to be clear it's not just the price but very explicit terms that we put on the table including $100 in cash and a 20% symmetrical collar around the charter stock which we have concerns about. so what was important to us was to make clear we weren't just saying no. we were saying that the offer of the charter may undervalue our company but there was a price at which we would transact that we maximize value for shareholders. >> clearly, that's not here. why not have sat down with the company? charter's implied value of the deal at this point clearly not $100 in cash and the ratio does not include that symmetrical

collar that you mention. why not sit down at this point and see if you can't accomplish something with them give reason you just told me you're open to exploring all alternatives to create value? >> look, we've made very clear what it's going to take to get a transaction done. and we're certainly open to hear from them if they want to go down that path. >> the path they do seem to be potentially going down, rob, of course, is to challenge for seats on your board of directors, the window for nominations for which will close in the not too distant future. if that, in fact, is the case are you prepared to engage in an all out proxy war with charter and liberty? >> look, i think the idea of waging a proxy fight here strikes me as a less than viable strategy. any director who were elected to our board and if charter were successful in waging a proxy fight would be subject to the same feud share duties, the same overall duties to shareholders

as our current board. i'm confident that actually come to the same conclusion about the value we can create versus what charter is offering. >> you think even if they were to replace directors same directors would vote against the deal at least as it's currently comprises? >> i certainly do. >> now, many of your shareholders and i've spoken to any number of them given i know many of them, they believe that if there was a deal at let's call it $145 a share the charter stock price would go up. in fact, they wonder why it wouldn't be willing to offer perhaps a symmetrical collar. why not try to come to the table to reach some middle ground between 160 and let's call it 132? >> again, i'll say the same thingy before. we're very confident in our operating plan and we've also made very clear to charter that at $160 with $100 in cash and symmetrical collar at 20% we would be prepared to do a transaction. i'm confident for us to make value on our own and that's the path we're pursuing. >> are you talking to comcast at all about its intentions?

>> yeah, david, i don't think it's appropriate to comment on any other conversations we may or may not be having. >> in terms of subscribers and churn back to your plan, this is a company that's lost now charter will say they lost 800,000 subs over let's call it the last year. even if that number is a bit off, rob, asking investors to believe somehow that you can completely reverse that seems to be quite an ask on your part. >> well, to be clear. as i said, 2013 was a rough year from a subscriber perspective. the subscriber numbers charter are citing is video subs not customer relationships. we've actually effectively grown high speed data customer which is an important part of our business. but there are definitely factors that we're confident about including the momentum we left 2013 with and entered 2014 with that make us comfortable that, in fact, we will grow customer relationships this year. >> on the expense side, i think

you guide it to low double digit programming expenses which seem to employ single digit expense growth overall. that hasn't always been the case, rob. what gives you the confidence again that you can come in at that? >> we have been managing our nonprogramming expenses very well. and i think we'll continue to do that. we've actually been -- aside from programming cost growth we've been in the low single digits in terms of our -- in terms of our cost management. and to the extent that we have driver of increased costs on the labor side, on the employee side which is our second largest cost, it's really related to investments we're making in the high growth business services operation that we've got which grew over 20% in 2013 and we'll continue to grow at a very fast pace going forward. >> how much of that ebitda growth target would be from raising prices and do you have the ability to raise prices at all? >> i think going forward in our plan what we articulated this morning was that while we've been very effective at

increasing revenue per customer to an increasing extent going forward, our revenue lift is going to come from increasing volume. so i hope to get a better balance in terms of the drivers of revenue going forward. >> how's it going so far? here you are, once a banker and now you're, of course, the coo of this company. it's been kind of on interesting first month on the job as ceo, hasn't it? >> been an eventful foist mon f on the job but i'm energized by where we sit. we have a great future ahead of it. >> appreciate your time this morning, of course, and we'll be checking in as you well know on the current advancement, if you will, of charter and liberty's efforts here. you know, if they were to raise, rob, just sort of to 145, would you be willing to sit down with them? >> david, i'll say the same thing again. i'm thrilled with the way our business is progressing and we

put our bottom line price on the table. >> being 160. you know, which makes sense from a multiple of ebitda. never seen deals done and your advisers will say it over and over again at less than eight times for a property such as time warner cable. i do have to say when you look at the enterprise value of $145 a share deal, meaning adding in debt, of course, the per subcomes to something like $5,700 a subwhich we've also never seen a deal even that my. am i'm not looking at the deal properly to say what about a per subvaluation? >> i don't think per sub is a way to look at it. as well as the fact that we've got a very significant business services operation. they just don't translate the way they used to when it was a single product residential video only business. so i just don't think it's an appropriate way to look at value. i look at ebitda and as important li free cash flow. >> all right.

i'm one of those customers. i think everything is working today. >> thanks for your business, david. >> you're very welcome, mr. marcus. thank you for joining us. rob marcus, chairman and ceo. carl, back to you. >> all right. i'll take it up, david. thanks for bringing us that conversation. meantime, watching shares of whirlpool trading lower even though it reported this morning earnings rose 48% last quarter. slightly less than analysts were looking for. they saw stronger growth. guidance for 2014 right in line with analystest mitt estimates. jeff fettig is here, chairman and ceo of whirlpool. north america, a bright spot. that's in part of the recovering housing market. do you expect that to continue that dynamic into the new year here? >> first of all, good morning and it's a pleasure to be on the show again. regarding our north america business we had an outstanding year in 2013 which ramped up

throughout the course of the year, finishing the fourth quarter, particular u.s. business which was up strong double digits in terms of revenues and really strong profitability. so per our guidance that we gave today we did indicate we expected that to continue. we believe the market will continue to grow. we think we're still in the early phases of a multi-year recovery in north america, in particular, the u.s. and we really like the momentum that we created in 2013, expect that to continue this year. >> beyond the numbers, what are you seeing, jeff, out there from the american consumer? how willing are they to go out there and buy a washing machine or a refrigerator, these big ticket items? what is the status of the consumer? >> it's improving. certainly, you know, when we look at the components of demand, which there's a replacement component, there's a new housing component, there's a discretionary component, we're seeing all of those components moving in a positive direction.

one of the things we have to remember is that from peak to trough, 2006 was the peak cycle and demand in the u.s., it dropped 20 -- almost 20% by the end of 2012. so we do believe there's pent up demand. we do believe housing is far from returning to a normal cycle. and we're beginning to see the replacement demand anniversary, the highs of over a decade ago. so we feel pretty good about that and consumers responding. certainly any improvements in the job situation and as we're now seeing consumer confidence, also helps our business in terms of purchasing these products. >> jeff, got to get your take on latin america. up 8. margins were good. people think that the whole continent is going to fall off the face of the earth. where is your head right now? >> we have a different view in the sense that, you know, was acomprise latin america, 32 different markets. argentina and places like

venezuela get a lot of headlines and we actually have a very, very small business there. our big business is in brazil. it's gone through some challenges, as well as currency to valuation. but the fundamentals in brazil have been and we continue to be strong and we've got an outstanding business there. and so we're still, you know, mid long-term bullish on brazil. clearly we have to adapt to the short term changes that we see, particularly in currency and in inflation. and then the there 32 markets, we manage them like a portfolio. we have, you know, some markets down 50%. some markets up 50%. on both fronts in latin america we have very good businesses. we have great position. and we're prepared to manage due to volatility. >> yeah, on this global footprint, i know you are starting to see europe coming back. who do you see there and are you worried at all about what's going on in emerging markets? >> well, first, in europe, we

have seen throughout the course of 2013 europe stabilizing albeit at a low level from an economic standpoint and demand. we have seen more and more signs of slow recovery. we expect the market there to be flat to up 2% this year. and we're growing at a faster pace than that. in addition, we're doing a lot of things in your european operations rapidly improved the margins, so we see this as a -- we expect very good recovery from a profitability standpoint on moderate growth. in an emerging markets it's a little bit different story around the world. certainly there are a lot of markets that have been hit hard from a currency devaluation which leads to inflation which has had an impact on demand. on the other hand, we see markets like china where today we have a small business but soon will be a very big business as we complete our acquisition there this year. we see that actually showing

positive growth. so it varies around the world. again, that's why it's great to have a global footprint, because we in total at the capacity deal with this uncertainty that we see today which, by the way, in our view is no different than the volatility we saw in 2012 and in 2013. >> all right. trip around the world with jeff fettig, thanks. it's great to get a window into the global consumer. chair manned and ceo of whirlpool joining us on the phone. >> thank you. when we come back, it's the ultimate getaway. a party hotel on the water. that's what nor wee john is doing for one of the cruise ships for the super bowl this year.

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wrk back to "squawk on the street." k check out pitney bowes. reporting better than expected fourth quarter earnings. revenues matching street evidence. guided 2014 earnings in line with forecast. a programming note, cfo michael monahan will be a guest on "closing bell" this afternoon at 4:00 p.m. eastern right here on cnbc. carl? >> seema, thanks. breaking news on the bond market. 35 billion five-year notes up for auction. let's get to rick santelli at the krrkcme. >> yes, it's two-fer thursday, two auctions. we just completed the five-year. the seven-year will be at 1:00 eastern. 35 billion five-years. one issue market was bid around 1.57. the yield at this auction, 5.72. that really didn't work out but it didn't tail off a lot but a little bit. if we look at the internals, 2.59 bid to cover.

44.6 indirect. these are all very close to ten auction averages. everything about this auction is middle. i give it a c minus versus demand at bottom of the 11:30. we'll come back with ira and another option as the session progresses. back to you, carl. >> i'll take it from here, rick. the norwegian cruise ship the get away has turned from destination into a hotel here in new york. for inside we sent our own simon hobbs live at sea at pier 88 in new york city. hey, simon. >> hi, sarah. we'll have a look at the ultimate super bowl experience. being a guest here at the bud light hotel which is, as you point out, a cruise ship at pier 88 in manhattan. we'll talk to the ceo of norwegian as to why he is shining over his vessel to a bunch of super bowl fans over weekend. (announcer) scottrade knows our clients trade

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all right. stocks are higher. looks like we took another leg higher. bob pisani is here with what's moving at the big board. not focusing on turkey today. focusing on facebook. >> two things are moving higher, i'm americaing markets more stable and facebook. yeah, facebook. it's really very important right now. facebook just passed 100 million shares. that's pretty remarkable. normal day they will be about 60 million shares. we're at a new high on facebook. i want to show you the higha names. there are a lot of people who play these big, bigley quid

names. look at twitter, yelp, tesla, groupon, up 8%, 4%, 5%. i can tell you this, if facebook would have missed and had some negative comments, it would be trading down. there's no way any of these stocks would be trading on the upside. i'm not sure they're all linked on a fundamental basis but they are on a trading basis. let's move on. given the weak pending home sales numbers watch what the homebuilders are doing. while their very mixed today, horton, lion, kb homes are up. others are not. mixed picture. really starting to bifurcate the market. love what the whirlpool ceo had to say. north american revenues and that's what really matters, were up 9%. very good number. you can see they're still having a tough time here in january. finally, talk a little bit about january's down, then the rest of the year is down. that's not really true here. there's a lot of research that's been done on this. i want to thank a couple of people including some of the fine people at btig. since 1990 has been a

down month 21 times. a down month in january. in 12 of those 21 times, the s&p was higher in to the lowing 11 months including four of the last times and this actually happened. put it up for you. i'll show you last times january was down. 2003, 5, 8, 9, 10. down in 2003 in january, up in the full year. down in 2005 in january, up in the full year. in 2008, january was down and the full year was down. but then again, 2009 and 2010, full year both of them on the upside. okay? pay attention. so it doesn't just mean because january is down the rest of the year is going to be down. there's been a lot of good research done on this. laszlo and other people have done things at btig. >> dan greenhouse has been all over this. >> shattering the myth of the january effect. >> look at the stats. 2008 was a particularly bad year. if you go back in history some of the january on really bad years are lower. >> thanks, bob. meantime, norwegian's newest ship is cruising into new york

city in time for the super bowl. the ship will serve as a floating hotel for as many as 4,000 people over the weekend. let's send it back to simon hobbs who is live on the getaway in what's being branded as the bud light hotel. simon? >> yeah, welcome back. welcome back to pier 88 here in manhattan. joining me now is the ceo of norwegian cruise lines kevin sheehan. whose bright idea was it to take your newest ship and offer it to a bunch of football fans for a weekend? >> we're a team and everything is a decision that comes from all of our team members. >> that's very diplomatic. how do you feel when you see bud light come in and uncovering every piece of brand that you have the pillows of bud light, the key cards of bud light. how do you feel? h is your baby here. come on. >> we're proud to be association of bud light. what great brand. and what a great opportunity to showcase our ship because everybody knows it's on the brand new beautiful norwegian getaway and so we're getting so much frequency out of this.

it's a wonderful experience for our company. >> do you keep your 1600 staff on the ship or are they home alone? >> no, we do. we're here to help and make sure that everything going smoothly. some entertainer goes off the ship until monday but for the most part we're all here. >> let's get the question out of the way that nobody on the cruise line really wants to address and that is the illness that we have on our competitor rcl's explorer of the seas. almost 700 crew/passengers falling ill to a gastrointestinal problem. >> sure. >> what do you say to people who are looking at that to potential customers, the 97% that don't cruise? >> you know, it's interesting because this is a stomach virus, first of all. it affects well over 20 million people in the united states each year. we have so many higher protocols in our industry that it becomes something that is reported. so -- >> basically you saw that the you have to report it when hotels don't, so on and so forth? >> no, i think it's better communication for our guests and

we have so much focus on it. we haven't had a failing grade in well over ten years from the center of disease control. we've got the highest record of the large north american cruise lines by a long shot. we're proud of our record. >> ipo'd and you had a phenomenal first six months of stock market performance. now, if i look at the last six months, royal caribbean is beginning to out eer perform by 20%. what does this new ship do for the business? how can you pull ahead of your rivals? >> i think we've done a great job of that. 21 consecutive quarters ebitda to growth. we lead the industry in return investor capital. we're leader in innovation and on and on, i could go for another ten minutes which we don't have. >> you feel you're changing the industry fundamentally and the others are falling behind you in a stricter financial discipline?

>> we are. you will start to hear more from the other players as far as the metrics because they're critically important. by the way, we work for our investors so we're beholdened to them and responsive to them. >> return on investor capital of 14%. >> our goal is 14%. it's funny, new public company we hadn't look at that metric and we lead the industry in it and big jump on 2014 and on to 14% in 2017. we're proud of that. >> it's nice to see you. we'll see what you come out when you formally report results. >> thank you so much. we're proud to be here today. >> kevin sheehan, the ceo of norwegian cruise line on the bud light hotel which this year, of course, is a cruise ship on pier 88 in manhattan. back to you. >> looks like a blast. can't believe, carl that the pool is open in new york city. >> we have 15 minutes until the end of the show. straight ahead, bouncing back today, stocks push higher

on some strong corporate news. facebook earnings for one. i'm americaing markets, what's really ahead for the markets. more on that whun "squawk on the street" returns. we' booked sol. we close on the house tomorrow. tomorrow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. csx. how tomorrow moves. the physical damage was pretty bad. the emotional toll was even worse.

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packing them in on super bowl boul ward.

coming up here, former super bowl champ joe theismann tells us what it takes to win the lombardi trophy. he's going to pick his favorite plays when it comes to stocks. plus, big gains for facebook making two of our traders happy. is this a long-term trend or a short-term blitz? and google reports after the bell tonight. what are the top three things to watch for in that release? it's all straight ahead. carl, see you in ten minutes. >> sounds good, scott. thanks. meantime, as you know, the fed ekedeed extending the taper billion. what does it mean for additional markets? rick? >> thanks, carl. i have a guest that you always seem to find fascinating. ira harris. ira, it's been about a year since an amazing speech by jeremy stein and i'll paraphrase what i thought was amazing at it. if the fed keeps monetizing debt the way they are they have to be worried about bending the risk curve. we're not talking about bending it in a good way. i'm going to lead that into i'm americaing markets.

>> it's where we are. a lot of fallout even though i'm not a correlations, because this is far different than 1997-'98, jim cramer has that right. this is far different. number one difference, of course, let's go back to the crisis of mexico in 1994-'95, currencies are floating. so they are on a daily basis reacting and building this anticipation rather than going from crisis to crisis. we saw the crisis that was argentina and they're trying to resolve that issue. but don't correlate them -- >> if i ask you what was going on would you have invested in i'm maerking market, your answer would be? >> selectively. >> there we go. selectively. i will say from the correlation and fundamentals from every given i'm americaing market, they're different. i get it. they're much better than they were a decade plus ago. in the end what we're going through here isn't really about that, is it? it's about investor sentiment having very digital changes and a lot of why they're having

digital changes are because of things like china and because of the spearheading organization called the federal reserve coming with the water and then taking it away and more in a digital process. jumping to those conclusions and 100% fashions. >> of course. because there are a lot of investors who are addicted to that drip and that all thatsz a that's all they though. that's what jerry stein warned about. they were chasing yield. so, yes, we're getting rid of those people. >> let's look at your badge. badge is ira. for a second, let's make it my ra. 45 seconds and nobody has talked about this. here's my issue, okay? who is buying treasuries? the fed. how many are they buying? less. >> less. >> years ago there was this white paper and, hey, let's get all the people in iras and their retirement accounts to get tax incentives to be in order to continue to get them make them buy more treasuries. the one thing i don't like about this they're putting you in

bonds. okay? does this have a dark side? real quick. >> does it have a dark side? of course this depends. if you told me the treasury and the fed had been a good trustee of money like the swiss national bank for the last 50 years i would say this is a wonderful idea but that has not been proven. >> basically you're saying this might be another one, hey, we need to continue to do some deficit spending. hey, how about we make them buy our bonds. back to you. >> all right the thank you so much, rick santelli and myra, ira harris. coming up here on "squawk on the street," he noef have buying motorola mobility for nearly $3 billion but could the deal cause big security concerns for the united states in? ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]

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. welcome back to "squawk on the street." i'm seema mode. we all have see alexion pharma suit calls. strong sales of rare disease drug. it forecasted better than expected earnings for 2014 helped by a lower than projected tax rate of stock. guys, look at the stock of 21.5%. carl? >> all right, thank you so much, seema. when we come back, by the l lenovo/motorola deal may not be a done deal. back in a minute.

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eamon javers is live with more on that. >> the potential roadblock here is called the committee on foreign investment in the united states known as cifius. it's a committee that reviews corporate transactions for national security implications. i've been talking to experts here this morning. take a look at a couple of bullet points here. they're saying there could be major concern among the members of cifius on this deal to buy it by lenovo, a chinese company. a significant u.s. concern around cyber security obviously is the red flag here for this potential deal. lenovo has said in the past that it is chinese owned but it is not state owned. it's not a government company. that's the way they described themselves in the past. so that might be a key to this deal. but whatever happens here, the process is long and complicated. there is a 30-day initial review period and it goes on and on after that.

they're going to have to be careful in getting through that approval process and getting it done in a politically sensitive environment here in washington. >> thank you for that. eamon javers in washington. meantime, sarah, looking at the best day for the s&p so far this year. >> yes. and the nasdaq going strong with facebook up 16%. >> scott wapner, you've got a lot to work with this afternoon. >> the volatilitvolatility, car back in a big way after nearly none last year. look at the nasdaq 100, what it's done. i'm reading a note from our news desk. down 4 1/2% over the past five days. now the nasdaq 100 is having the biggest gain in four months. >> thank you, facebook. >> right. and some others as well. qualcomm, you know, maybe some others, too. thanks so much. have a great day. welcome to the "halftime" show. following biggest stories on the street. earning search, what the busiest days so far tells us ability where your money will work best. million dollar homes, best bang for your buck in a decade's worth of winning super bowl cities. the original joey