could these move the market, nicole, quickly? [closing bell ringing] >> big news could be out of any one of those. david: the bells ringing. the dow is down but it has been the laggard, not just today but all year. other indices have been up, particularly the nasdaq up quite nicely, up over 1% since the beginning of the year. this is sort of a microcosm of what's been happening since january the 1st. we have the dow jones industrials down about 42 points. all other indices are up, nasdaq up quite nicely, thank you, sandy. sandra: go to jo ling kent in the newsroom. thank you, jo. >> we have breaking news on amazon.com. they're considering an online pay tv service. they already already have amazon prime service of course which allows people to watch television episodes and, and movies. also amazon has approached three media companies for that content according to sources, according to dow jones news. so we'll continue investigating.

we put in the cause to amazon. take a look today. it was up about 1.86%. so the stock doing decently well. a nice climb over the past seven months. so we'll be continuing to monitor this. the headline, amazon considering online pay tv service. they approached three media companies for potential content. sandra: jo ling kent, thank you so much. david: the interesting thing about this, sandy, maybe it might become a competitor for netflix if they begin to get into the same game that netflix is getting into. sandra: could be huge. david: could be huge. we'll watch it closely. sandra: time for your front page headlines. international monetary fund increased estimates for u.s. growth to 2.8% from the original estimate of 2.6% because of consumer spending and government spending cuts. david: carrier's profit rose more than expected help by lower fuel costs and higher fares for

delta. sandra: bombardier is laying off 700 workers in the aerospace division and 600 in the u.s. a lot of layoffs. david: i hate to hear about that. taking one% control of taxpayer bailout of chrysler. can you say bailout? probably not. follows a $4.35 billion deal with union affiliated health care trust that owned part of the company. sandra: apple getting a temporary reprieve from a court appointed monitor overseeing its ebook business. the tech giant says the monitor has been too intrusive pursuing its antitrust duties. david: "the wall street journal" is reporting that former treasury secretary tim geithner had choice words for the chairman of standard & poor's parent company after the ratings agency downgraded u.s. debt the journal said geithner said the firm made an error and would be held accountable. "after the bell" starts right now.

david: okay, we have some breaking news on pimco. pimco has had a tough year as you might note. this is, has $2 trillion under management. of course they made some bets that didn't pan out well in 2013. they're making bets on 2014 but they will have to do it without mohammed el-erien. resigned as ceo and co-cio of pimco. this is a very interesting development. sometimes he of course has been at odds with pimco's founders. for whatever reason, we don't know the reason but mohammed he will airy ran resigned as -- el airy yen resigned as pimco's ceo. sandra: we have all the action with chief investment officer who will tell us what stock he is recommending and also larry shover at the cme.

larry start with you first. we have holiday shortened week. everybody is saying the next big thing for the markets is the federal reserve, what they're going to do, the pace of their bond-buying tapering. what is the biggest focus for trading for you as you stand in the trading pits in chicago? >> sandra, i'm moving away from the macro, more to the micro. to your point the article by hilsenrath today with regard to tapering i think that is built into the market right now. if they stop tapering at some point in the year that might be a negative to the market that would mean that we're not growing at the penciled-in 3% gdp i'm hoping for. that said it seems like right now the market is very fragmented. people are industry-specific right now that is why hyped me the price action today has been explicable. uneventful and exasperating actually because every time we rally people shrug their shoulders. if we break three or four

handles, people are scrutinizing overanalyzing not knowing what is next. the bottom line we moved around from the macro to the micro. david: there is a lot of reshifting going on. tom, what happened at pimco is example. he resigns. does that shock you? >> not a great deal. i think the news initially shocked me but as everyone knows last year was an extremely difficult year for the fixed income markets. most of our advisors we work with retail investors who are very near to retirement or in retirement. income is still a big need in their portfolios. most investors were really hurt by a lot of there rate moves last year and it was a difficult interest rate market and we had to change the way we look at portfolio construction for investors as we move forward next couple years with a rising interest rate structure very likely. david: by the way, we're getting breaking news on this story, this continuing to break story from pimco. bill gross is going to be

staying on as chief investment officer. of course he shared that position with mohammed. and mohammed apparently will stay on with the parent company. alliance says arien as international executive committee chairman. it is not a complete dump of mohammed el-erian but it is significant. sandy. sandra: after the bell ibm is reporting, texas instruments. technology a 18% weighting in the s&p 500 right now. what happens after the bell and as we get more tech earnings this week it could be a big driver behind this market. what is the forecast heading into these earnings? >> i think technology is going to surprise to the upside. maybe not ibm but balance in aggregate they will. do it is all about execution. it is about the environment whether it be china or russia, et cetera. also for earnings. some of these technology stocks like ibm offered a pretty good

dividend. can they maintain the framework, or is there this headwind, secular headwind that is changing the company forever? so i think the s&p 500 behind me is being built up right now with the expectation that is technology is going to do well. not nearly as well as big banks. david: larry i have to break in. we have earnings coming out on several companies including ibm. jo ling kent, those numbers are in. how do they look? >> dave, we have pretty good numbers on eps, healthy beat from the $5.99 we were expecting. revenue coming in at 2$.7 billion. that is a miss on the 28.25 billion the street was expecting. we'll go through the press release to get you back with more. david: there are several things. ibm said it would hit $20 per share earnings target in 2015. they will look for forward guidance on that. we should remember ibm was the dow component. >> the lowest performing dow component of 2013.

sandra: great point. numbers do cross here, ibm saying, quote, we remain on track toward our 2015 roadmap for operating eps of at least $20 a share. i know that was a lot of what wall street was looking for was that forward guidance were they still on track. ibm confirming that but we continue to dig through those numbers. i want to get quick reaction. tom, your reaction to ibm's numbers. 6.13 on earnings side. that was a beat of 14 cents. street was looking for 5.99. the numbers look pretty good. what is your take? >> there is more scrutiny on forward guidance. the market by most measures is very full valued and more and more difficult to find value in this market but the large cap technology space represents a lot of value. ibm is a good examppe of companies we're looking at that represents a p-e ratio significantly lower than the market in general, a sustainable dividend they're able to pay and it along with positions we have

in intel and cisco i think are good examples of companies, earlier i mentioned many much our investors who are retirees, looking for income, have almost shifted from a bond portfolio to looking at high quality stocks that have sustainable earnings and dividends as a good replacement in their portfolio for some of that income. david: larry, you have $190 target on this stock. it is only about a buck away from that. after-hours the bid is at 191 right now. so the after-hours bid is higher than your price target. >> maybe i should sell it then because for me i was neutral. that is a cheap way to say, probably sell the stock and look to buy something else i think is more undervalued. they have a lot of headwind in front of them. they have done a great job. >> especially liking their wounds from the third quarter. they have had double-digit losses coming out of russia. people keep talking about china but there are other countries where they have had a lot of props. they have strengthened the pipeline in software.

that is good for margins. that is part of execution they're doing a very good job on but when it comes to the environment it might be out of their hands. we might see a slowdown in emerging markets especially china even though i think it is going to grow there might be some potholes. think it will be uphill climb on ibm. i'm completely neutral on the stock. david: if it holds $191 a share look for one trader. that is larry. sandra: stock higher after-hours by the way. david: tom karsten, thanks very much. larry we'll check back in with you when s&p futures close in a couple of minutes. in one week the fed will begin its two-day policy meeting. will it announce a second round of tapering or will december's weak jobs report put that taper on hold? we asked former fed governor wayne angell, he knows all about the fed. wayne's coming up. sandra: netflix set to report earnings after the bell tomorrow. the stock was the number one performer in the s&p 500 last year, up almost 300%. the time to buy or is this stock

overvalued at these levels? 328 bucks a share, david. david: we have experts coming on or sell netflix ahead of the earnings? log on to facebook.com/afterthebell. your answers coming up. we'll be right back. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim.

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pimco. this is a huge fund. of course you know it has got $2 trillion in cash under management by pimco and they have made some interesting bets. a lot of them did not pan out in 2013, a year when the stock market went gangbusters. bond market of course went in the other direction. a lot of their bets placed in the bond market did not work out so well. perhaps this is a means of addressing that. he will stay with the overall organization but mohammed el-erian leaving as ceo and co-cio of pimco. sandra: big news there. david: big news. ibm shares falling a little bit after-hours trading following its earnings report. let's head back to nicole petallides on the floor of the new york stock exchange. first it was up, now it is down a little. who knows where it will settle, nicole. >> there is a lot of news for ibm. up .8%. maybe it pulled back. after-hours trade traditionally thinner trading, liquidity so

more volatility is to be expected. talk about numbers earnings per share and revenue. a beat hear for earnings per share coming in at 6.13 versus 5.99 estimates per share. revenue 27.7 versus 28.25 billion. that is a little light. one thing very noticeable and this is something i spoke about around 3:30, the low end serve business that could be the next topic to talk about ibm. there are headlines that lenovo is looking at the low end server business. that may be back in play. there are questions whether dell or lenovo, those are likely lookers for this part of the business. that is the part to watch for here. other thing worth noting for ibm reaffirming the forecast going forward. this will be one to watch in tomorrow's trading as well as some others. a lot of tech stocks to watch. sandra and david. david: david: ending day at $118.43.

it is trading at 186 doll -- $186.43. larry shover may not sell his ibm. sandra: let's go back to larry shover. how are things looking? we closed about a minute ago? >> traders worry about few things. other than banks, the earnings season is mixed at very best. we continue to see bleeding from intel, ge verizon, retailers. peeking of -- speaking of banks, another thing people are work worried about, we're seeing a big rotation out of citigroup, morgan stanley and goldman sachs into banks likes keycorp. people are expecting moderation in the u.s. and china and hoping for a small beat in europe. so no lack of worry here and a lot of consolidation, a lot of moving pieces. sandra: all right, larry shover, live from the cme pits, thank

you. david: thanks, larry. it is going to be a busy earnings week. netflix set to report fourth quarter earnings tomorrow after finishing last year as the single-best performing stock in the s&p. it was up 300%. sandra: crazy. it just kept going up. will it continue momentum in the new year or is the high-flyer set to fall? aaron kessler, from raymond james. we brought on experts to tell us, can this continue? tuna, i will start with you. does it lose its momentum in 2014 or does it keep on going higher, netflix? >> i think you already started to see the stock lose some of its momentum. obviously and extremely volatile stock. my sense is that some of the, you know, catalyst that is propelled the stock in 2013, while arguably still in place i think you're going to probably see more and more questions around, you know, the valuation of the stock, which is partly why we have a sell

recommendation going into these earnings. having said that you know, there is no doubt that the company is in a very different place today than where it was two years ago. i think that is the perception. sandra: real quick. i know david will jump in here while you have a sell rating on it you still think the price of netflix is going higher because your price target is $365 a share. >> that is a very good observation there. suffice it is very volatile stock. i will say we'll be revisiting our target price ahead of, consistent with earnings. so i think you made a made a very good point but part of that you've seen this kind of huge rally. you know last year we thought that between that earnings report and this earnings will be the volatility that has been very, very prevalent. david: well, and aaron, not like there aren't any headwinds. there are a lot of headwinds against netflix right now. first of all, breaking news, we got right here, amazon is considering online pay tv service. so there will be more

competition. you had the court decision on net neutrality which essentially ruled against netflix because now netflix will be forced, if this ruling stands to the supreme court, netflix will have to pay more for all the stuff it pushes through at&t and verizon and all the other pipelines. so costs are going to be higher and there will be more competitors, right? >> no, we do agree there are definitely some headwinds here. clearly netflix add ad decent number of subs in 2013, five million u.s. streaming subs. we think competition obviously amazon after the close, speculation it may lawn of a pay tv service which is 70% of netflix's viewing. we think negative impact from net neutrality. we'll not say it has large impact. david: hold on. let me push back. they will either have to pay more for all the stuff and sometimes 35% of all the stuff that goes through internet pipelines belongs to netflix. either they will have to cut down how much they put through

those pipelines or they will have to pay for it. that means less profit, right? hold on. go ahead, aaron. >> yeah, unclear if it is netflix paying more or consumers. we think ultimately consumers will pay more for higher bandwidth if they're downloading a lot but that is yet to be determined still. sandra: aaron, isn't programing development question for netflix. they made huge news "house of cards" for the company. this will be pig on the conference call. what are you looking for there? >> that was a big positive to the 2013 story. part of the reason investors got excited. the question is, does that lead to another big increase in subscribers in 2014 here if we get another big kick from the original programing for netflix? i think that is still a question mark. we'll see what guidance is for 2014. investors want to see five million incremental subs for streaming in u.s. in 2014. if we get way below that, that

could be a negative for the story. david: tuna, at some point does netflix have to decide whether they are an original programmer because they're doing more of that stuff, or, whether they're just an online location, the online location for on-demand tv and movies? do they have to make that choice? >> i think it is always going to be some kind of combination of both. i don't think it is either/or decision for them in this stage of the evolution of that business. i want to come back to the issue of net neutrality. david: sure. >> i don't think it is issue well understood on the street. we cover well internet cable service providers and when we talk to the companies, we get a sense usage-based broadband is here to stay. you've seen variations in the marketplace. ultimately as netflix investor you have to be concerned to potential overhang this could cause. ultimately someone has to pay for this, either content

aggregator or the consumer. if you follow what is going on in washington i think you get a sense this is a very, very delicate hot potato and my sense at some point netflix will be on the look for this. david: tune narcs agree with you. thank you very much. aaron kessler, great to have you both on. thank you. sandra: earnings out after the bell tomorrow so tune in on% "after the bell" for those earnings. americans are feeling some unhealthy side-effects from china's export boom. we'll explain what all the fuss is about on the west coast. david: how bad will today's massive winter storm get for people on the east coast? people on the west coast don't really care about it that much. we'll get the very latest weather forecast as soon as we return and it is not just new york. look at the white house. actually looks pretty. you know how washington is, have a i'm of snow freak out, they closed down before the snowstorm started. gosh these bureaucrats, working hard for your money, folks. ♪ [woman]ask me...

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david: time for a quick speed read of some of the day's other headlines, five stories, one minute. first up, international monetary fund expects a global growth for 3.7% this is increase over the october prediction of 3.6%. verizon will buy intel media. a division of the chip-making giant that creates cloud tv products. this will help verizon provide video content over mobile and fixed networks. u.s. household subscriptions to premium tv channels fallen 15% over past two years according to market tracking firm npd. hbo and showtime are taking a hit but streaming services like netflix continue to rise. >> >> pollution is growing in

china. apparently this should be growing concern for us here in the u.s. reports are showing large amounts of pollution travel all the way over the pacific ocean in the u.s. on some day it is can account for almost a quarter of sulfate pollution in the u.s. >> since 2000 the consumption of butter in the u.s. increased 65% according to the american butter institute. [buzzer] consumption now at a 40-year high with sales topping $2 billion a year. >> i contributed to that. david: you moved from margarine to butter? we have in our family. sandra: whatever. i love butter. david: my waive takes care of the stuff. it is better than margarine. eat the butter folks and enjoy. sandra: thousands of flights are canceled as blasts of cold air sweep across the u.s. david: accuweather meteorologist joins us with the very latest. justin, where it is going? >> dave, sandra, we're looking middle of atlantic for a change dealing with heavy snow. we've been in the midst of a bit of a snow drought.

up until yesterday washington, d.c. only reported three inches of snow and in fact now we can say this is the biggest snowstorm of the season. it has eyes set on philadelphia, boston up the i-95 corridor. we'll have travel delays t will be a mess, messy rush hour. 3,000 flights already canceled. the heavy band of snow working east of d.c. up the 95 belt through new york city. not yet boston but believe me your time comes later on this evening as the storm system starts to strengthen. it will strengthen in a hurry. looking at howling winds, anywhere from 35 to 40 miles an hour. blinding snow rates, visibility down to around zero at times. very poor traveling conditions. we're looking at total accumulationwise. a lot of snow fallen in ohio and west virginia. some is coming into new york city and boston. some reports of philadelphia around half a foot. this is what happens tomorrow. this is how it feels outside

even though the snows are winding down across the interior northeast, it feels 10, 20, 30 below zero further off to the north. you get the clue. till will be very, very cold and this pattern will likely hold all the way into late month, perhaps into early february a lot of snow to come from d.c. to boston. a lot of cold to follow. this is not one and done. likelk around for quite some time, guys. david: which means it will be a cold super bowl here in new york. >> that's right. sandra: thank you, dustin. david: well is the next cut in the fed bond purchasing program imminent or will a weak jobs report put that taper on hold? we'll be talking to a man who knows just how the fed thinks because he used to be with the fed. former fed governor wayne angell. sandra: imagine if the color of your lights at home could change when you get a new twitter follower or, if you get an alert that your pet leaves the house? tech company, smart things is making all this possible with its new technology. we'll speak with the ceo next.

as we go to break you may, you are seeing a live shot of philadelphia, david. look at streets there. david: looks like a ghost town. sandra: snow heaven. ♪ [ male announcer ] there is no substitute for experience.

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day lower, weighed down by earnings reports from heavyweights verizon and johnson & johnson. seven of 10 s&p 500 sectors closing higher led by materials and utilities. natural gas soaring through its highest price of the year as the winter storm in the east and midwest fuels demand. nat-gas closing the day up 2 1/2%. shares of ibm falling in after-hours trading following a fourth quarter earnings report. the tech bellwether's total revenue fell five 1/2% to $27.7 billion below wall street estimates of $28.25 billion, david. david: by the way, advanced micro devices is in. the numbers are in and they're trading down as a result of those earnings. we'll give you more details on that in a moment. meanwhile ben bernanke's last federal reserve board meeting begins next week and the big question is whether policymakers will continue the tapering of bond buying that was announced last meeting but the even bigger question is whether this extraordinary policy having any effects at all on the fed's

mandate bringing unemployment down and maintaining the value of the dollar. that is what it is in business to do. for answer, we turn to wayne angell, former fed governor. wonderful to see you. let's talk about growth. janet yellen thinks more likely we'll grow above 3% than below 3%. do you agree with her. >> i do. david: and is that because of current fed policy? does that have anything to do with it? >> no. it is really in spite of current fed policy. current fed policy is deterrent until now. as they adjust upward we're getting close to the point where the fed is not doing as much harm as it did last year. david: we're going to come right back to you, wayne but we do have the earnings on amd, advanced micro devices. jo, give us earnings and we'll come back to wayne. >> we have a beat on eps for amd coming in at six cents, beating

the five cents the street was expecting and revenue coming in $1.59, which is a beat of 1.54 we were expecting. looking at the report, quarter one amd expects revenue to decrease 16% plus or minus 3% a margin of error quarter to quarter or sequentially. they're expecting a 16% decrease in quarter to quarter in terms of revenue. david: as you can see it is trading down add hours. ending the day at 4.17. the bid at $3.86. wayne, this is sort of tied into what you were talking about with regard to growth and you really stimulated the conversation by saying that the fed, if they have done anything they have really kept growth back. in what way has the policy retarded growth in this country? >> basically comes from what i call fed arrogance. to have the arrogance to believe that they believe they could

manage interest rates better than the market just doesn't make any sense. the fed should tell the market what it wants to do. by the way, year-over-year rate of change, median or metal commodity price in the index that follow is very close to zero. so the fed has been doing well preventing deflation and preventing inflation but it should tell the market what it is doing he and let the market take interest rates what it should be, it would be much more beneficial for economic growth and employment if they were to do that. david: i'm wondering, wayne, if their arrogance is goes beyond the point you are suggesting? whether they think they are actually helping the stock market. there are reports by jon hilsenrath at the journal

that ben bernanke and others at the fed seem to think their policies are pushing the stock market to new highs. that is part of their new agenda, maintaining the stock market at new highs. what do you think of that? >> i think that is equally incorrect. i think the stock market knows knows how to price the future. as long as the bond market prices interest rates, then the stock market will price earnings price earnings ratio. and we'll get prices for stocks at optimum. market price occurs at free market environment, not in managed coon my. david: but hasn't the stock market been moving up as a result of the fed maintaining artificially low interest rates? >> no emphatically not. emphatically the stock market has been doing well because

because commodity prices do not show any hint of inflation. they do not show any hint of deflation. that is the best environment fo% the stock market. the fed can not to around manipulating short-term interest rates and benefit anything or anybody. david: fascinating stuff. december job number was very disappointing. we were expecting something around 200. it came in at 74,000. janet yellen as we know approves of sort of soft policies over the past year of bond buying. do you think if we have weak jobs report for january the fed will discontinue its tapering? >> no, no. i think the monthly jobs report numbers at close of calendar year and particularly with weather-related circumstances, we can have readings that the

fed should not worry about. david: rather r regardless what january's jobs number is we'll continue tapering of at least $10 billion? >> that's my, that's what i guess. that is what i believe. that is how i do my investments. david: your guess is informed by years of work on the fed. you have a track record to prove it. wayne, always a pleasure to see you. thank you so much for coming in. >> thank you for having me. david: absolutely. sandy, over to you. sandra: thanks, david, what do your coffee pot and your alarm system and your jewelry case have in common? they could all be part of the smart home of the future. we'll talk to a ceo of a company at the cutting-edge of this break through technology next. ♪

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the deal brings a lot of attention for the growing industry for connecting all devices in your home. sandra: smart things is a company that uses sensors to link gadgets in your home through the internet. which means you can control the gauge gets from your smartphone and tablet. joining us is alex hawkinson, ceo and founder of smart things. thanks for joining us, alex. make some sense for us, how could i use this in my own home today? >> yeah, well, thanks for having me. it's really simple. you know, users for us they buy a simple kit which the most popular one is about $300 and i3 lets you hook up things in your house like the front door or motion sensor in your common area, things like that. the most common use cases are home security. so you know if things are happening when you're not there. peace of mind, keeping track of common household problems like a flood or day like today, and something being too cold and pipes freezing and things like

that. david: we do not want pipes freezing. you don't want that to happen. i've been through it. google's purchase of nest labs of the we mentioned that. yours is a platform, i thought what nest labs is, maybe i'm wrong. is nest labs a competitor or somebody you can work with? >> hard to say. today we see them as somebody we can work with. they build beautiful thermostats. i'm sure other devices in the future. david: don't they also want to do a platform kind of thing? >> it is hard to know. i would say they will certainly broaden out the product platform. we're not a device-maker so we like to interact with lot of different devices with with people like nest. sandra: you've been around a lot of years. this appeals to lot of people. everybody has a smart phone or tablet these days. pretty much everybody has what they need to do this. are you seeing the interest? are you seeing the growth in your company? >> we are. we just.

we're just two years old and started shipping the middle of last year. it has been phenomenal growth in the early stages. >> are you going to take it public? >> we're a little ways from that we think there are great independent business that is will be built next couple years. david: always golden ring, getting to go public. >> yeah. david: there's a problem here and a lot of people are concerned about it. in relation to the nsa hearings and talk about privacy and so forth. if you have an open platform, doesn't it make it easy? there are instances where they tried to hack in and some people have been successful. doesn't it make it easier for hackers to get into your personal stuff? you. >> know, security of internet things, connected home, security is obviously a big concern, leading companies still take seriously. for us, similar to bringing encrypted at every level. we treat it very carefully. generally to have things connected it makes your life

much more secure than if you don't. sandra: alex, i am looking at stats, only a couple years in, your company has 10,000 households using your platform. double-digit growth per month. 300 million events flow through the platform per day now. give us obstacles your company has faced or continues to face. what has been the biggest problem with getting this off the ground? >> there was technology works for first couple years. it is so easy to use and biggest issue is consumer awareness. they don't realize they can solve security and peace of mind so simply. david: alex hawkinson, smart things is the name of the company. they're ging out for nex round of funding as well. we wish you the very best. let us know how it works out. >> thanks so much. sandra: it is a showdown that could reshape the future of digital music. next we'll tell you about a

courtroom battle that has internet radio giant pandora squaring off over the fees it pays for music. david: let's take a look at 6th avenue. oh, it is getting dark. >> how will we get home tonight, david? david: i have a theater broadway show i'm going to. we will see if it is still open. [ me announcer ] this is the story of the dusty basement at 06 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall f roble avenue. ♪ this magic it is the stf where every great idea begins. and of those o believed they had the power to do more. dell is honored to be part of some of the world'great stories. that began ch the sa w ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ so i deserve a small business credit card

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sandra: march madness on its way. this year could make you big bucks a bill bucks to be exact. warren buffett and berkshire hathaway and quicken loans are partnering to give away a billion dollars to anyone who fills out a perfect march madness bracket. david: wait a minute, a billion dollars? sandra: anyone thinks they can do it. the prize is paid out in 40 annual installments of $25 million. david: how am i supposed to live on that? sandra: or, david, take immediate 500 million-dollar lump sum payment. if there is more than one winner, share the winnings. david: forget that. sandra: odds of winning are not very good. 1.92 quinn till i don't know chance to be exact. contest starts march 1st. david: a billion dollars. sandra: there is a chance. david: there is a chance.

a copyright fight. the pandora music streams service is taking on the industry group known as ascap. sandra: dennis kneale is looking into the clash. he is joining us now. dennis. >> how are you doing, guys? the federal trial begins today for pandora's lawsuit against ascap, american society of composers, authors and publishers. the online streamer sued the copyright group over a year ago seeking to reduce fees it must pay and implications go beyond pandora to other services including potfy. pandora makes a good point. its copyright fees paid to ascap almost amount to 4.3% of the pandora revenue but traditional radio pays ascap 1.7% fee "the wall street journal" says. the split even worse in far costlier performance fees paid to artists in music labels. pandora pays fully half of revenues to artists and labels. traditional radio plays diddly,

zero. artists say pandora is ripping them off, billy joel, rihanna, 125 artists lobbied congress against a fee cut for pandora. they never rallied against zero payment from old line radio. pan dora pays $3 miilion a year to drake and little wayne. three million bucks to coldplay but to them it is not enough. they're artists. pan dora ould turn losses into profits, if the fee schedule merely matches of old radio. in the most recent quarter, pandora had a loss of less than 2 million bucks on revenue of $110 million. slash the fees, and that tiny bit of red ink suddenly moves well into the black. dave? sandra: of course the musicians say they're in it for love the music and they want to reach out to as many people as they can. david: right. >> pandora is helping them do that. david: exactly. they weren't paying on regular radio back in the old days. getting real money. sandra: thank you, dennis kneale. >> talk to the internet. david: see you later.

we mow movies are expensive to make but who knew music videos could cost money as well. which one of these stars made the most expensive i had video of all time? sandra: i'm going to guess michael jackson. we asked if you buy or sell netflix ahead of earnings. the answer next. ♪

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david: breaking news, this is important enough to repeat. you already heard it here. mohammed el-erian will leave pimco in march. he will still stay with the parent company alliance. he is leaving the job as ceo and co-cio of pimco much of course bill gross is the man in front, a lot of people say he was really running the show. they very often would disagree on policies. in fact what will be affecting the economy. perhaps that disagreement led to him stepping down. bill gross will stay on as chief investment officer. as far as we know, he will be the only one for pimco. again, mohammed el-erian leaving pimco in a directors position. >> david, let's go "off the desk." throughout the ages we've seen musicians try anything and everything in their videos in the name of innovation. some musicians even spend millions of dollars and weeks of production on their work. we have a list of the most expensively produced videos of all time. coming in at number three, you heard it as we went to break,

madonna's ""die another day"" video, cost $6.1 million. taking the second spot britney spears '"work [bleep]." costing $6.5 million f you're a fan you know the actual name of the song most expensive video ever, michael, jackson, janet jackson, scream. comes with a costly price tag of 7 million bucks. david: sandy knows the music. if you buy or sell netflix ahead of earnings, jim on facebook wrote in to say netflix's stock is overvalued. wouldn't touch it with a 10-foot internet cable. >> all right. david, i think the biggest and most influential political and business leaders are gathering in davos, switzerland, this week for the world economic forum. among all movers and shakers, our own liz claman. tomorrow on "after the bell" she will speak with aetna chairman around ceo mark bet toll lien any about the changing landscape

of health care and randy zuckerberg of zuckerberg media, former facebook executive and having a social strategy to succeed. david: "money" with melissa francis is coming next. melissa: antitheft credit cards. after the huge target hack, you could soon be carrying a card with a smart chip inside of it? are you willing to pony up for extra protection? what goes in it and what you will pay. even when they say it's not it is always about money. melissa: the massive data breach affecting 100 million people left the retail world reeling and calling for a change. target ground zero for the hack attack wants to move to chip-based credit cards to protect you. if target is so high on the technology,