tv Street Signs CNBC January 26, 2015 2:00pm-3:01pm EST
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afternoon session. kind of thin trading, we expect, as the storm progresses. >> be interesting to see whether the new york stock exchange has a delayed opening like a lot of schools. we should see. >> we will. we'll be following all of that for you. >> all right. thanks for watching. stay with us all afternoon. that's it for power lunch. >> street signs starts now. welcome to "street signs." today not one, but three major storms are brewing and only one has to do with the weather. hello. manned where i is on assignment today, and we've got an incredible news day. storm number one, this time over europe with the aftermath of that shocking fwreek vote. can the euro zone stay together as athens' new leadership sends a big message to germany? storm number two, the continued crude collapse. we have an update where confidence is beginning to shake as oil hits another new low. and storm number three, the actual storm. potentially recordbreaking and
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dangerous blizzard set to slam one-fifth of the nation's population. hi, everybody. we have breaking news from russia in a moment that cannot make vladimir putin very happy, as well as a rare interview with the winkelvoss twins. first on the storm, storm. we have full team coverage in place covering this big winter blast. morgan brennan, kate roblgers, tracking flight delays and cancellations at la guardia. sue herrera has the latest on this monster storm, and, sue, what is the latest? it's a biggy. >> it is a biggy. the storm is progressing as pretty much forecast with the heaviest to hit the northeast beginning in the afternoon rush. now, a lot of people have been told to go home early, so hopefully there will be fewer cars on the road. snowfall totals forecasted remain in the -- pretty much the same. new york city, about 18 inches. boston and the northeast is really going to get hit. about two feet plus. all of connecticut, rhode island, most of massachusetts, new hampshire, and maine anywhere from 18 inches up to two feet.
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the headline here, new york city, will be shut down to all travel except for emergency vehicles after 11:00 p.m. the governors of new york and new jersey have declared an immediate state of emergency. new york governor andrew cuomo has ordered the new york state thruway from new york all the way up to alban where i, buffalo, and points north. shut down at 10:00 p.m. massachusetts governor charlie baker who just took office has declared a statewide travel ban in the bay state beginning at midnight. now, new jersey transit will be shut down at 8:00 p.m. it will not restart until thursday. governor christie dismissed state workers about an hour ago and urged people to stay indoors. >> from all the reports identify seen, you all seem to have been to the supermarket in the last 24 hours, and don't know why the rush on bread, but what the heck. if you want more bread, i'm sure, you know, you are able to get it. >> a light note in an otherwise pretty dark situation. uber has come under fire for surge pricing during snowstorms.
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that company has sent out e-mail saying their drivers will not chashlg more than 2.8 times the regular fair if they can get around. you may see shots of new york city with absolutely no cars on the road. >> they're telling people to stay off the road in new jersey, and then new jersey transit shut down for two and a half days. thus, forcing people on to the roads. >> it's going to be a difficult situation. i think basically they're trying to force people to stay home and maybe work from home. >> that's it. >> there are some people who cannot do that. >> that's happening as we get a number of governors and states
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of emergency. we have new york, new jersey, massachusetts, connecticut. here in new york city, mayor bill de blasio just issuing a warning to motorists. >> i'm ordering that at 11:00 tonight our streets will only be available to emergency vehicles. all non-emergency vehicles need to be off the streets of new york city by 11:00 p.m. tonight. we will continue that emergency declaration until the situation is safe. >> that comes after we've had government agencies across the entire northeast have been preparing for this storm since the weekend, around the clock. we have hundreds of thousands of tons of road salt. thousands of pieces of snow equipment have been put on stand-by or deployed to handle the 18 to 36 inches expected in different parts of the region with this snowstorm.
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there is one area where it is bess as usual. all scheduled performances are proceeding as expected. at least for now. the producers of the play "chicago" telling us they're putting all their cast and crew up at the hotel. really giving new meaning to the term "the great white way." >> certainly did. morgan brennan, thank you very much. well, if you are traveling in or out of the northeast today or tomorrow, may the force be with you. flight delays and cancellations already beginning to pile up on our nation's airports. specifically those around here. let's go to one of them. kate rogers live at la guardia. what's the situation there? >> well, brian, you just said it. they're certainly piling up. we just actually passed the 6,000 mark as far as cancellations go between today and tomorrow due to winter storm juno. we're seeing airline flights union i'd sppd theiring operations at northeast airports including la guardia where we are, somewhere fk, newark, boston, philadelphia. american airlines also taking --
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today into tomorrow. also, boston logan becoming the first airport to completely suspend its operations beginning at 7:00 p.m. tonight into tomorrow. one of the obvious questions is what does this all mean for the airlines? our own phil labo is saying you will probably see revenues take a hit, but don't expect earnings to be that impacted for several reasons. one of them being that passengers did have ample time to change their flights, hang their plans because of winter storm juneau, and also the airlines budget and plan for these types of storms in the fourth quarter and first quarters of every year, and so far this winter storm has been the first really big storm system to hit during the season and just one final travel update. not by air, but by rail. amtrak coming out and saying they're going to be operating on a modified schedule today. they'll be providing updates for passengers traveling by rail tomorrow, but they do say if you are traveling this evening or tomorrow morning, you may want to think about changing your plans so you don't get stuck. back over to you. >> yeah. no air. no rail.
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no road. get to know the yak. thank you very much. >> we're stuck. >> you are, my dear. thank you. sfwlimplgts now, let's move away from the storm and the whirlwind of another kind. the congressional budget ofts out with they're new numbers and the latest economic outlook. let's get to john harwood in washington d.c., who did make it into the newsroom and perhaps maybe spending the evening there. swron. >> it does have mostly good news about the economy and the budget deficit. the cbo says the deficit will be $468 billion this year. 2.6% of gdp. that's the smallest since 2007. the cbo says that falling oil prices will raise gdp by .3% this year.
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>> if mart pause of the critics of the labor supply. the cbo attribute that is to the retirement of baby boomers, which we expect, which will drive up future deficits for medicare and social security. also, because of some of the negative snent is in obama care. that is, the phase-out of subsidies at higher income, which may curb some people's ain't to supply their labor. >> all right, john harwood. we do appreciate it. stay safe, my friend. appreciate it.
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>> wells are being drilled, but not fractured. they're not getting everything out of the ground that they can, if at all, and cost cuts as we record a few weeks ago, are being demanded. as you said, received. it is a message the market may have also already received because look at these three-month returns for bakken exposed stocks. petroleum off 56%, and whiting petroleum down 52% in just 90 days. let us bring in now chris falknor, chairman and ceo of brightling. how do you describe the mood in the oil and gas industry, both in texas and in north dakota. >> i think things in texas are a little bit brighter than they may be in north dakota, and why is that? i think it's about price. right? you mentioned bringing oil out of the ground. the bakken oil is expensive oil. fairway oil could be marginal cost in the 50s. fringe could be in the 60s. we're seeing rigs lay down in
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all the major plays. 1633 rigs in the united states. these i think bakken may be in for a rough ride in the near future. we think the price of oil will come back to the second half. that will leave the bakken fired back up. >> you think the price of oil will rebound at the second half of the year, but why is that? we're seeing rigs come off line here, but go on-line in canada, in part, because they've had a relatively mild winter. >> i think you're right. there's going to be a shift of some operators who have to move their rig from point a to point b, say from bakken to texas. other operators may not weather the storm at all. you could see bankruptcies. guys going away. the smaller guys who are either uncapitalized or who are levered up. the bigger guys have a lot of debt may not survive this thing. i think supply is going to come down. the treadmill stops. the supply goes very rapidly. i think you're seeing rigs lay down. there's a lag time. you can't start and stop on a dime. that's why we think it's a
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six-month lag time, and prices will begin to rebound. we hope in july. we think the floor is either here or very near to the price we are today. >> as we pointed out, when we were in toronto a couple of weeks ago, the inflation adjusted price for a barrel of oil 25 years is $48. that's the point. people say, oh, oil must be cheap because it was $100. $48 is the average in 2014. we're not far off the immediate median price, chris. >> i was saying back 18 months ago with you that the price of oil was over inflated at $105. there was a lot of fear cost built into there on a geopolitical cost. the real price of oil, we think, still at $65 to $75 commodity. i think it's a bit cheap now. i know cost adjusted for inflation, but i think the price will come back up. again, is it going to $100, $105? no, it's going to fwrind back up to the low $60s by the end of the year, and that helps a lot of this marginal oil out, but it doesn't --
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>> but not all of it, chris. i talked to operators who off the record said we're low $70s, maybe high $70s. >> there is some oil that's going to be unattainable. tusk loose wra and that window down there. a lot of these plays, fayettville, may not come back on-line for the long-term. we don't know. i think that the bakkens will come back on line and the marcellus, eagleford stuff down here. all of that we can still make money, but, again, in the $40 range, you know, folks are making a decision, brian, we leave it in the ground until the price rebounds, or are we going to drill and hold and not fracture and not complete? those are the types of things that will go into the model in the rebound of the price of oil. >> see you soon, chris. >> stay warm up there. bye-bye. >> impossible. up next, the third and the final storm of the past 24 hours. this one brewing in greece. why you care about what just happened there, and more on the bizarre and perhaps dangerous deal that the new greek government just made with some
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still above 2012 levels. the outcome of that election could change the future of the entire euro zone economy. let's get now to chief international correspondent michelle caruso cabrera that's live in athens, greece, and i guess a lot, michelle, of our audience is probably thinking greece's economy is smaller than missouri. why does this election matter? >> because there's fears that as a result of this election, greece may exit the euro zone, abandon the youro currency that all these other countries have adopted, and while there's a lot of debate about whether or not the european economy can with stand them leaving it could be lemans squared. >> are there many that would say the european economy would be better from a macro level if greece left? >> oh, yeah. there are a lot of people who believe that, for sure.
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the question is getting from here to there. once at the moment when greece if and when it decides to leave or it's forced to leave or because of events beyond the government's control say bank runs, et cetera, if they were to occur, what happens during that period of volatility sfshgs what do we know about loans that are spread out across europe that might be connected to the greek economy in some way? it's that uncertainty that people are worried about. i wonder if behind closed doors they say to themselves, guess what, greece's problems reduced the value of the euro, which make our exports a little more competitive, and, therefore, maybe greece's problems aren't entirely a net negative for the
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euro zone. most recently they said if greece had its own currency, it would be worth half the youro where as german currency would be worth more than one your wroe. maybe one and a half euros. you're right. the weakness here definitely keeps the euro weaker, even more than it otherwise would be, and helps germany's exports, for example. i doubt, though, if that's their primary thought at this moment. it's more about stability, and they really have this belief here in europe that they want to hold this thing together any way possible. >> all right, michelle. great reporting as always from athens. be safe. see you soon. appreciate it.
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>> you know what's happening with the price of oil. what connects this story to the prior story is russia is another country that had a bout of austerity, was rejected by the electorate and now they've had essentially a lost, call it, 16 years. they went to putin, and they've lost all that time for economic reform. what we're looking at here, i think, is a failed western model for fixing broken economies. >> excellent point. because russia, unlike some of the other countries that share its credit rating -- i think pakistan is one worse, but you get my point. the bangladeshs, figis. they don't have the oil that russia has. >> how has russia -- >> they squandered that
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opportunity too, by the way. >> it's called dutch disease, essentially. we would know that this hans. what happens is when you export oil, it raises the value of your currency, essentially, and it makes other industries not competitive. it's very, very difficult. >> this the old netherlands, natural gas thing? >> russia tried to create a savings, but essentially they're so corrupt internally they were incapable of creating any kind of real meaningful reform to develop an economy that was different from an unreliant on order. >> one of the predictions i made at the end of december was that russia would bump -- bob pasani had the same one. that russia away default this year. wropt to see it. >> i don't think they default. i think it's not enough foreign debt that they would need to default on it. it's ponl. i don't want to call you wrong on your show. >> please do. >> they don't need to. now, they may end up doing it, but they don't need to. the bigger story here is going to be the domestic economy and, again, thinking about at the end of the day russia is an
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aggressor in ukraine. we should figure out how to help fix that economy and get reforms back on track politically and economically in russia wra. >> well said. steve liesman, feel free to tell me i'm wrong. >> he hope you're wrong. >> so do i. thank you. sdmrirchlgs up next, why dreamworks investors could face maybe their worst nightmare, but only in a couple of years. and the first u.s. bit coin exchange is now up and running, and you probably know the guys that are behind it. tyler and cameron winkelvoss will join us live to talk about their new bit coin exchange wrash lot more to do. don't go anywhere. stick around. e one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved
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welcome to another week of "earnings squad." i'm sarah filling in today for alicia lee, joined by meg terrell, and stephanie ling, portfolio manager of jim cramer's charitable trust. let's kick it off with our score card. of the 19% of s&p 500 firms reporting so far, 72% have actually beaten estimates. 9% met estimates, and 19% coming in below estimates. ahead of us tomorrow pfizer reporting before the bell, meg. everyone is talking about m&a when it comes to pfizer. >> in a way the fourth quarter really isn't such a big deal, but let's start with what people are looking for. etf's down about 5% from last year. revenue 12.9 billion. down about 4%. a lot of it might be impacted by fx. it's a theme we've been seeing. the stronger dollar affecting these companies. pfizer gets 61% of its revenues from overseas. that could be the estimate of 4%. revenue head wind for the fourth quarter for pfizer, because of
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fx. a few other things afrting pfizer's loss of excluesivity on some of the top selling drugs. some of those include vyinga, lipitor, celebrex, some of those worldwide. those have been affecting revenue. we'll see more. the antibiotic is coming off patent protection. some other things in europe. that one is the one people are looking forward to to buy growth. >> you are not an owner. >> we don't own it, but i am just wonder what their strategy is. astro zen ka, that was a failed bid. do they want to grow or get bigger or mrit split out?
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a lot of people speculate that they would actually separate a lot of their very separate businesses. it's confusing and not one that i really want to be part of. >> that's true. >> therm reporting the three different businesses separately. they might be able to split up in 2017, and it might augment that so they could build in -- >> let's talk about one where you are. that's after the bell today. what are you looking for? >> the december quarter is typically the strongest one of the year. it's not just a pc story. what we're going to be looking at is we know that pc's are stable, right? about flattish on the year. what i'm looking for is momentum in the cloud business, in the xbox one, and then also binge. binge is up to 26% market share. >> which is shocking. >> it's interesting. >> well, and then, of course, the big issue will be what is guidance, what is fx, and then can they continue to expand their margins? both gross margins and operating margins have been a big part of this story, and, of course, what do they do with their $89 billion of cash as well. >> the majority of analysts say
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they're on hold. also want to bring up png. a dow performer. earnings project ebbings have been coming down in the last few weeks. we heard from kimberly-clark, the big rival. fx is the story. that stronger dollar is certainly hurting as well as weaker prospects overseas. still, png has been an out performer. not a fan. >> not a fan. volumes are not growing. organic growth is not growing. the one positive. lower oil prices should help them. >> we'll see. they're also restructuring. all right, ladies. thank you very much for the earnings squad. brooirn, back to you. >> >>. >> you got some great guests coming up.
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>> and that's my chief claim to fame. thank you very much. i know when to get out of town. it's 72 degrees here in florida. 2,000 professionals trying to figure out how to invest money for their clients. this is the biggest etf conference in the world. let me ask you a question. would you allow a computer program to pick your stocks and etf's? i wouldn't, but apparently a lot of people are. adam nash is joining us right now. is he with wells front. this is a guy who has figured out a way to ought mate what kind of stocks and etf's you want to be investing in. explain how this works. >> thank you, bob. >> as you know, well front is the largest automated investment service out there. we're fast growing. been around three years. we manage over $1.8 billion for people. >> how does this work? you go on-line.
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you fill out objective information. we try to get to the heart of your risk tolerance. we then map that risk tolerance to a score, which maps to a range of fort polios both for taxable accounts as well as tax deferred accounts like ira where hes. we have evaluated the best performance, and the lowest tracking and the best liquidity, and then we give you a portfolio that's optimized for your tax situation, and your financial. >> i'm an old guy. to be honest, i don't want to talk to a machine, and there is no machine. nobody to talk to there. why do people want to do this with no real human interaction? >> you know, i think this is a bit of a generational suggestion. most clients returned 35. 90% are under 50. for folks who have grown up with
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technology, there are certain things they trust software to do. for example, wealth front monitors your account 24-7, 365 days a year. burl ontario is the chief investment officer. he is picking the etf strategy. it's not like a robo advisor really. there's a real guy, but it's automated in the process. >> of course. bert is absolutely a real guy. i like to think i'm a real person as well. we just use our humans for away we think humans do well. that's the investment research. we have a team of ph.d.s and cfa's led by bert. he has been advocating for index funds and investing for over 40 years. they put together the right portfolios. software is used to make sure that your account is personally taken care of on a dale basis.
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we ethese young people following bert ace at ad vice. can you keeps costs low and be smart about taxes. >> still want to talk to a human being. adam, thanks very much for joining us. brian, i want you in on what's coming up because we're going to have tyler and cameron here in the next few minutes to talk about their new bit coin exchange and that proposed bit coin etf. they were here speaking just a few minutes ago. the house was packed. i'm very eager to talk to them again. getting their thaupts on where bit coin is going. that's up with you in a few
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minutes. >> that's zach brown saying i will jump right in. >> okay. oil settling at the nymex. let's get to jackie deangeles for that number. >> we saw a little volatility today. back and forth between positive and negative territory. oil did close lower just above the $45 mark. traders saying that it was comments from the opec secretary general saying that oil had prices that basically bottomed at these levels. we've heard that before from some of the other peck members and from saudi arabia as well. traders taking that to heart a little bit and some selling pressure with this cold weather outside today as well. not really impacting stuff. i do want to talk about retail gas prices. $2.03. everyone waiting for that to dip below the $2 mark. back to you. >> thank you very much. ahead, one of the boldest calls that we have heard in a long time. a top media analyst says that a big company may be insolvent within four years. you know the name. you're fwog hear it coming up. here's a look at your monday. stocks are mixed kick off the week. remember, a lot of traders
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zoirchlgts mandy is on assignment today, and there's lots of big news. let us quickly hit a couple of important stock calls you need to hear about. first up is garmen. rbc capital. upping it to an outperform. they say the company is "getting in shape" that's a play on words in their running watch business. rbc likes their ebbing posure to the exercise market. their target on grmn. $67. about 24% above the current price. next up kansas city southern. ticker ksu. up to a strong buy at raymond james. net target boosted to 126. your final stock of the day, mohawk. ubs. even more bullish on the carpet and textile maker boosting that target to $190. that, my friends, about 12% above the current price for mhk. well, last week dreamworks animation was the subject of a big debate on the show.
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we had two analysts, both with a very different view on the stock. now, take a listen to why one analyst is avoiding dwa. >> out of the last six original films they released four. dozens of millions of dollars. what it is currently it's a $220 million sgna company that releases films that lose money. i don't see why anyone would want to be involved with that. >> all right. let us bring in rich greenfield of btig. he saw that interview and sent me a research report he had just published saying that dreamworks could be insolvent in 2019. that's four years out. thank you for joining us. why are you telling investors to focus on 2019? >> well, because you've got several catalysts over the course of the next few years that could really put dreamworks in a problematic position. i mean, here's a company that tried to get wall street to believe that it was more than a movie company. they really tried to position it as a multi-platform media company, ala disney, and they
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really tried to get this ready for sale, and they went in and bought internet assets. they broke into television. they ramped up sgna, and all of it really has been essentially a failure, and they're now back cutting and slashing all of that overhead now, scaling back production. you have debt building. the real things that your viewers need to pay attention to is when you think about what's happening to this company over the next few years, they've got two major companies they work with that really drive a substantial portion of their infrastructure. sfloont to mention that morale will suffer, do the deals get renewed in 2017, 2018, which is really what sets up that cliff in 2019, and then on top of it, fox, which currently has a
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distribution deal with dreamworks, does that get renewed? that deal ends in 2017. do you see that deal renewed in 2018 and beyond? i think given the quality of dreamworks product, these deals may get renewed, but potentially a far worse terms, and the question is given dreamworks' situation, can they actually continue to put out product, apparently when they clearly were scrambling to sell the company before they had them own up to wall street of just how poor things were. >> it fees like dreamworks is coming into a new baseball negotiation as a 38-year-old slugger with a bad knee. is there any sign that they've got a big home run franchise on the horizon because if they don't, rich, you're right. those negotiations are not going to go well. everyone knows they're not coming from a position of strength.
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talk to the folks at lion's gate. the problem you have with dreamworks is what are the franchises? shrek is over. ku ng fu panda, eh, maybe. even madagascar, they ju blew up on penguins of mad gar cass. they clearly overspent. they're really struggling to find, you know, that next franchise. look, you can always take a swing and knock it out of the park. reality is the batting average of this company, to your point on the 38-year-old slugger, the batting average on this company is getting worse and worse and worse, and when you look at media companies, historically they go in cycles, and as you start to really struggle, it's really hard to attract the best properties. it's really hard to attract the best talent. you end up going through multi-year cycles where you really struggle. dreamworks can't afford to do
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that right now. >> as we know there's no room for large, loud, big-eared characters on television. rich greenfield -- rich, thank you very much. we appreciate it. >> thanks. >> take care. we know that americans are getting an extra boost of cash due to lower gas prices, but are they really spending all that extra money on dining out, maybe getting an extra dessert? we'll find out and go to the source and speak to the ceo of buffalo wild wings. plus, a big interview -- actually, two in one. the winklevoss twins join us. i'm only in my 60's.
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>> oddly staring at the camera. the dow not doing a whole lot. we got a massive storm. they're closing the roads. perhaps the subways, trains. not sure yet. haven't heard from the nyse whether or not wire going to have any impact on trading. we will be have been snowed in. this is fascinating. on the new york stock exchange, tough folks. we've only been closed three times due to snow. twice were in 1888, and the other time was in 1969. other than that, there's been late openings, and some closings
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for other reasons, but not for snou. speaking of snow, or not, go back to bob pasani in southern florida. on their new coin based bit coin wal lut. take it away. >> you know, it's amazing is we had 2,000 people in here just about an hour ago packed into here about an investment that most of them have -- don't have anything to do with and are not invested in, but they're interested in possibly figuring out a way to do it. our two guests, both talking about that today. cameron and tyler winkelvoss join me here. the important thing is you have announced an exchange. you have announced one. gemini.com. tell us about how it would work. >> sure. so we're just trying to be basically the bit coin -- excuse me -- the nasdaq of bit coin and be fully compliant and regulated and be based in new york. >> and there's another component to this. you have had a registration for
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a bit coin etf for a while now with the s.e.c. that's a slightly different part of this whole thing. can you tell us where that stands? that's been if registration for a while. >> yeah. we've been following the fifth amendment that's been registration. we can't talk about it because of gun jumping. we have filed for an approved etf bit coin structure, and we also just recently announced gemini.com, which we hope to be a nasdaq for bit coin buying and selling. >> so this etf you've had for a while, we don't know when it's going to happen. there's no indication. can you update us? >> only the s.e.c. knows the answer to that we. >> let's if back to the whole idea of an exchange that's out there. another exchange was announced just today. coin base that is backed by the new york stock exchange. they too are going to -- said they're going to be an exchange. is there room for more than one exchange for bit coin in the united states? >> i think absolutely. these guys -- anybody that's building towards the infrastructure is a great positive thing for bit coin.
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it's such early days that there's, i think, a ton of work to be done, and we're -- it's great that people are doing it. >> you guys own, like, 1% of all the bit coins, is that right? that's correct, right? have you ever sold any bit coins? >> we have not. >> you have never sold a single one of your bit coins? >> even on the price ups and downs. >> what are we at today, $2.50, $2.70. >> 300. >> close to 300. we were at 1160 before. are you concerned about the decline in the price. i know people focus on that, but what should people be thinking? we're watching bit coin go down. >> i think -- sorry. go ahead. >> we're in this for the long haul, so we don't check the price minute to minute or day to day. it should have a market cap of visa, master card, western unicom bined which would put it at $400 million. if it's a better gold, which we did and most people agree with that, then it should have a market cap.
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>> do you think this is the future? that this is an amex, this is a master card combined of certain global payment process? do you think it could be -- i know you have a horse in this, but do you think it could be that big? >> objectively i know that the characters of bit coin -- its qualities are better as a payment system than theirs. >> do you think that the block chain is secure? we know we've seen problems, but problems weren't really with the block chain. >> there's never been a problem with bit coin. the protocol has been it itself. the traditional at legacy finance system has had banks collapse throughout the years, so that's just operator error or one company, but it doesn't reflect bit coin or problems on the technology. >> you are quite sure the block chain itself is not hackable? >> it has not been hacked. >> well, that doesn't mean it can't be, but you've obviously got a vote of confidence in bit coin right now. cameron and tyler talking to us about their new bit coin
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exchange. keep an eye on that. brooirn, back to you. >> yeah, thank you very much, guys. i think that's a coin based out of gemini. my apologies. let's go to sue herrera at the breaking news desk. >> thank you very much, brian. we're getting some getting inte. attorney general eric holder and manhattan use preet bharara and the fbi are announcing charges against a russian spy ring that was functioning and doing business in new york city. they were trying to recruit in new york city. eric holder, the attorney general, basically said that they are bringing in evgeni barak barakoff who worked as a bank employee. preet bharara said following our previous prosecution of russian spies who were expelled from the united states back in 2010, with their plan to infiltrate the upper levels of u.s. business, it is certainly clear that
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russian spies continue to seek to operate in our midst under the cover of secrecy. we have charges being filed by the attorney general and the manhattan u.s. attorney and we will see where it goes but they broke up a russian spy ring. brian, back to you. >> shocking breaking news there. sue, thank you very much. well, how is this for a transition? coming up we're going to talk about chicken wings. sally smith, the ceo of buffalo wild wings, will join us on whether or not gas prices are really helping people spend more at her restaurants. stick around. push your enterprise and you can move the world. ♪ but to get from the old way to the new, you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today.
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here now first on cnbc from minneapolis is sally smith, ceo of buffalo wild wings. sally, before we get to the super bowl, i want to ask you, we've talked about it, questioned it, do you notice a direct correlation in how much the average customer is spending at buffalo wild wings because of lower gas prices? can you say, yeah, they're getting an extra appltini? >> i can't give you a direct correlation. i think some extra dollars in
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the wallet makes for a good reason to go out for wings and a beer. if that's what others are seeing, my guess is we are as well. >> it's a positive. i know chicken wing prices have gone up. is there any weird way we are not thinking of that it's a negative? >> i suppose if you're working in the oil and gas industry and you've lost your job as a result of plummeting prices, that's a little bit longer term. i suppose that could be a negative, but from a consumer standpoint and for those of us selling consumer goods or retail services, i think it's a positive. >> i love your ads. go into overtime, wind blowing, missed field goals -- >> we're always looking for overtime. >> talk to us about the super bowl. honestly, it's sort of simplistic but does it really matter? do we gorge on that many more wings because of super bowl? >> it's definitely our largest takeout day. last year we served over 9.1
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million wings. we have more restaurants this year so i'm sure this year we'll eclipse the 10 million mark but they kind of go together, wings, football, beer. we actually do, and our restaurants are ready. they will be ready whether you're takeout or whether you're enjoying the game in restaurant. >> i think you just perfectly recited your marketing slogan. wings, football, beer. >> something like that. >> that was likely not accidental. your stock is up 30% in 12 months. is business 35% better than it was a year ago? >> we've had a really good 2014. revenues were strong. whether that correlates to our stock price, i certainly think it has something to do but we've had a great year, and we're excited certainly the super bowl starting this year and we'll move right into march madness after this weekend coming up. >> and you guys seem to be
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everywhere. is there still room for new franchise growth? >> there is room for growth. we just took a look at what we think we have left to do in the united states. you know, we're just under about 1,060, 1,070 restaurants. we think we can get to 1,700. a lot of locations still, certainly the northeast, west coast, and some smaller towns in between. >> sally smith, buffalo wild wings. thank you very much, sally. we do appreciate it. be safe. >> thanks, brian. >> we're back right after this. >> thank you.
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we'll leave with one hot stock, generac. widespread power losses are expected around here because of the storm. but now to a show that never loses energy. "the closing bell" starts now. ♪ riding the storm out ♪ riding the storm out >> oh, boy, thank you, brian. hello, everybody, on this monday. we are riding out that storm right here at the new york stock exchange. welcome to "the closing bell." i'm kelly evans. >> i suspect -- i'm bill griffeth, by the way. i suspect that that picture, that's times square. that's 50, 60 blocks north of where we are right now. you give that several more hours, you won't be able to see that. >> it's only been a couple hours since that snow has started. we haven't seen anything yet. >> not
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